The series of 10-year, non-recourse loans carry a weighted average fixed rate of 7.39% and are backed by undisclosed commercial and industrial properties developed by Flagler. Banc of America Securities was Flagler's financial advisor.

Flagler is owned by Florida East Coast Industries Inc., a New York Stock Exchange-traded company based in St. Augustine, the oldest city in Florida, 140 miles north of Downtown Orlando.

In a prepared statement, Robert W. Anestis, FECI chairman/president/CEO, says the company's financial restructuring included a $375 million syndicated bank credit facility which was closed in March. The plan also comprises $250 million of non-recourse mortgage financing on Flagler's developed realty holdings.

"We have closed the first of two planned mortgage finance tranches and expect to close the second tranche later this year," Anestis says in the statement.

Flagler owns, develops, leases and manages six million sf of commercial and owns 16,000 acres. Besides Flagler, FECI's three other subsidiaries are Orlando-based Epic, a carriers' carrier that provides bandwidth capacity, dark fiber leases and collocation services telecommunications providers; Florida East Coast Railway; and Florida Express Carriers Inc.