First Union Securities Inc. arranged the financing, with Wachovia Securities serving as co-adviser. Flagler pledged certain of its commercial and industrial rental properties as collateral on a non-recourse basis.

Flagler owned about 51 buildings and 5.3 million sf of commercial real estate on 431 acres primarily in Jacksonville, Orlando and South Florida as of Dec. 31, according to an annual report Florida East Coast filed with the Securities and Exchange Commission. It also owns another 14,000 acres of undeveloped land.

In South Florida, the company owns Beacon Station at Gran Park, a 960-acre mixed-use industrial park in the Medley/north airport submarket in Miami-Dade County. The site allows for the development of nine million sf of industrial-warehouse and flex-office properties. It also owns another 500 acres of undeveloped land adjacent to Beacon Station.