PLAYA DEL REY, CA-Palos Verdes Developers has secured a $25-million construction and permanent loan for its $28.5-million Del Rey Club apartment development in a move designed to restructure the financing to eliminate interest rate risk, a growing concern among developers in light of the prospect of continued interest rate hikes. Mike Guterman, an SVP with the Los Angeles office of Newport Beach-based Buchanan Capital Advisors, explains that the developer, a Buchanan client, had already financed the project with a traditional floating rate construction loan but wanted to switch to long-term, fixed rate financing for the property upon completion without incurring high forward commitment fees. Guterman and Kevin McKenzie, also of Buchanan’s Los Angeles office, arranged the financing in the form of a loan that was structured with an interest-only feature for the first year as construction is completed and then as the project is leased, the loan converts to a 30-year amortization. The new loan, Guterman explains, achieves the developer’s goal of securing permanent financing while interest rates remain near historic lows.The Del Rey Club is a 203-unit project under way at 8000 Manchester Ave., close to Marina del Rey, business centers, shopping and restaurants. The project will feature a mix of one-, two- and three-bedroom units with amenities including upgraded kitchens with granite counters and stainless steel appliances, laminate wood floors, 9-foot ceilings trimmed with crown molding, granite fireplaces, and individual security systems. The developer is targeting professionals and young families. Palos Verdes Developers is a development group that has built or remodeled more than 4,000 residential units throughout Central and Southern California.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.