Star News

For the third time this year, the Fed is preparing to lower interest rates in an ongoing effort to bolster the shaky economy. Continuing escalation of oil prices combined with inflation fears have forced the Fed’s hand to again step in and take action. The housing slump has worsened, credit problems have intensified, and the job market continues to deteriorate. With oil now over $100 per barrel, the average consumer is being forced to deal with the high cost of gasoline and other durable goods. The Fed is hopeful that the recently approved $168 billion stimulus package coupled with tax breaks for business will energize the economy in the second half of 2008. The short side of the lending curve is benefiting from the lowering of interest rates. Borrowers who are seeking construction, renovation, and bridge loans will find Libor and Prime based loans extremely attractive. We will keep you posted…

Penstar is working with a European based bank actively originating construction and bridge loans on pre-leased retail, office, and industrial properties located throughout the United States. The bank will advance 75% loan to value with cost constraints based on each individual project. 100% of cost financing will be available on a selective basis. Typical loan structure includes 24-month term, interest only and 250 over Libor. Loan sizes considered range from $20 million to $150 million, with their ideal advance from $35 million to $70 million. To discuss, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Penstar received a loan application for the refinance of a California retail center priced at 175 over Libor (today’s rate would be 4.87%), interest only, with the ability to ‘swap’ to a fixed rate of 5.9%. The loan is a 5-year term and the borrower has the ability to tranche his own loan; meaning the borrower can fix a percentage of the loan amount and float the remaining portion of the loan. Once the borrower swaps the loan to a fixed rate, the prepayment reverts from the expiration of the Libor contract to yield maintenance on the fixed component. This strategy is very attractive to those borrowers seeking to take advantage of the short side of the yield curve and have access to interest-only cash flow. To discuss, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Helpful Humor

We at Penstar understand the challenges of the commercial real estate business. The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work week. The anecdotes may not all be real estate themed but we hope you will enjoy them just the same.

The editors of StarNews have been commended as well as teased for the Helpful Humor column of our newsletter. We would like to invite you as our loyal readers to join us in our ongoing search for the most comical material. Please forward your humorous stories, jokes, or anecdotes to Steven Hamermesh at Hamer@PenstarAdvisors.com. Entries that are brief, and entertaining will be considered for publishing and viewing by our newsletter’s 15,000 readers throughout the real estate industry. We ask that appropriate judgment in content be exercised when submitting entries. Unless otherwise requested, the provider of the chosen entry will have their name and company printed along with their entry.

“Quotes from Comedian Steven Wright”

“A clear conscience is usually the sign of a bad memory.”
“You never really learn to swear until you learn to drive.”
“I’d kill for a Nobel Peace Prize.”
“I stayed up all night playing poker with Tarot Cards…I got a full house and four people died.”
“I use to work at a fire hydrant factory, you couldn’t park anywhere near the place.”
“If at first you don’t succeed, then sky diving is definitely not for you.”
“Many people quit looking for work when they find a job.”
“What happens if you get scared half to death twice?”