The Orlando office of Birmingham, AL-based Collateral Mortgage Capital LLC structured the deal and funded the new mortgage through New York-based JPMorgan Investment Management.

The financing was set up as a seven-year loan amortized over 25 years. With an interest rate of 4.766%; a loan-to-value of 73.9%; and a debt service coverage of 1.34x, the deal combines a future advance component, a forward commitment component and an earn-out component.

"In order to avoid the prepayment penalty, we structured the deal so that the existing loan was kept in place," says Randy Kilgore, a director in Collateral's Orlando office. "The lender advanced additional loan dollars under the existing loan by modifying the existing loan documents; committing to fund additional dollars when the existing loan opened to prepayment without penalty; and committing to fund still more dollars on the basis of an earn-out formula tied to final lease-up and stabilization of the community."