2009 Will Be a Very Interesting Years

Many experts are expecting the overall economy to improve as of the 3rd quarter of 2009. They base these expectations on the proposed stimulus bill, as well as the assumption that TARP funds will take hold to provide liquidity within the lending market. Commercial real estate will face continued challenges and opportunities. One U.S. analytical firm has identified more than one thousand large commercial properties nationwide, collectively valued at more than $25 billion, who are already bank-owned or whose owners are currently in default. There is an additional $80.9 billion of properties susceptible to this same troubling scenario later this year. Those investors stocked with cash will be positioned to take advantage of these opportunities.

Falling real estate prices will make refinancing more difficult as attaching values will be problematic in the volatile market. Lenders will be forced to take properties back, or accept discounts in order to have a percentage of their loan principal returned. The dismal housing market is working in favor of apartment owners as foreclosures are driving many homeowners back into rental units. Borrowers seeking traditional loans should find capital more accessible this year than was the case in 2008. We will keep you posted. We will keep you posted…

$8,200,000 Mixed Use Loan Closed

Penstar is pleased to announce that we have arranged the funding of an $8,200,000 mixed use loan on a property located in Southern California. The property consisted of ground floor retail, and seniors’ apartments on the upper floors. The retail was 70% occupied at close while the apartments were fully leased. The lender provided a bridge loan at 100% of cost, a loan to value of 63%, and a term of 30 years with 5 years fixed at 6.5%, and a 30-year amortization. To discuss, please contact Gerald Price at (818) 883-9629 or Price@PenstarAdvisors.com.

Penstar is currently working with an insurance company looking for office, industrial, anchored retail, and multi-family loans in amounts up to $30,000,000. The lender will lend a maximum of 60% loan to value, non-recourse for terms ranging from 5, 7, 10 and 20 years, and with interest rates ranging as follows: 6.5% for 5 years, 6.75% for 7 years, 7% for 10 years, and 7.25% for 20-year terms. The loans will carry yield maintenance for prepayment and are assumable for 1%. To discuss, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

The Penstar Team Welcomes a New Addition

The Penstar Team welcomed the birth of Ruby Isabella Price, born on December 9th, 2008. Gerald's daughter weighs 8 pounds 1 ounce, and is 21 inches long. Penstar Team Members offered many suggestions in the naming of Baby Ruby Isabella, including Mortgage Constant, Subordination, Bailout, and Credit Crunch. After about a billionth of a second, all suggested names by Penstar staff were rejected. Baby, mother Sandra, and father are all dong well.

30 Day Libor	10-Year Treasury	Prime
0.39%	2.45%	3.25%

Penstar Realty Advisors can be reached at (818) 883-8600 or at our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367