Koger LLC, a subsidiary of Koger Equity Inc., contributed about $13.9 million in the joint venture deal to pay off an existing mortgage on the two office buildings. Koger LLC also paid an additional undisclosed amount for closing costs and working capital funded from Koger's secured line of credit, Crocker says.

Under terms of the deal, the joint venture will assume an existing mortgage of about $979,000 on the undeveloped land. The joint venture plans to obtain a mortgage on the office buildings during the first quarter, with the net proceeds being distributed to Koger LLC. Koger will manage the properties for the joint venture.

Initially, Koger will receive a cumulative preferred return of 10% on the annual cash flow, Crocker says. Koger later will receive 75% and Triangle will receive 25% of the annual cash flow. When the properties are sold or refinanced, Koger will receive a cumulative preferred return of 15% and all of its capital before Triangle receives any net sales or refinancing proceeds.

"Triangle will subsequently receive all of its capital back with the next tier of capital proceeds (which) will be allocated 25% to Koger and 75% to Triangle until Triangle receives $3.4 million, after which all remaining proceeds will be shared equally," according to a prepared statement from Koger.