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CABO SAN LUCAS, MEXICO-A master-planned oceanfront community on Mexico's Baja peninsula is closer to reality after its developers received $130 million in construction financing to build the initial phase of 109 homes. Known as Hacienda, the venture calls for 239 units fronting Medano Beach on a 24-acre site that once featured the historic Hacienda Hotel.

A partnership of the Koll Co. and Starwood Capital is developing the project, which will also yield a beach club with full restaurant and a lounge, as well as a fitness facility, numerous pools and a spa. The construction loan was provided by Wachovia Bank's structured finance group, according to Barry McGowan, managing principal of the Koll Co.

"The Wachovia team members really took the time to understand and to structure the financing in a manner that reflects both the laws and business practices of Mexico," says McGowan, adding that the loan is the largest of its type ever recorded in the Los Cabos area and will be one of the heftiest for all of Mexico this year. The funds will construct both the 109 homes in the first phase and the amenities such as the beach club, he explains.