Star News

A key gauge of future economic activity fell for the third consecutive month in March, demonstrating that the recession may persist through the summer. The Conference Board Leading Economic Index declined 0.3% last month, steeper than the 0.2% analysts were expecting. It fell 0.2% in February, originally reported as a 0.4% drop. The index has not risen in the last nine months; in September and December it remained unchanged and experienced the largest drop during that period in October, when it fell 1%, respectively.

The real money supply and yield both showed strength in March, although not enough to counterbalance the collective drag of building permits, stock prices, and supplier deliveries. In the past six months, the index has fallen 2.5%; compared to the smaller 1.4% drop in the previous six months. We will keep you posted…

Penstar recently obtained a letter of intent for a portfolio of retail bank branches leased to an investment grade bank. The properties are located in California, Florida, New Jersey, and New York. The buyer is offering to acquire the properties at a mutually agreed upon capitalization rate with 3% annual increases over the 15-year lease term. The tenant will be granted four 5-year options to control the facilities for a minimum of 35 years. For more information, please contact Steven Hamermesh, CEO, Penstar Net Lease Advisors, Inc. at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Penstar is currently working with an investment fund actively originating first mortgage land loans on entitled and unentitled land. The fund is seeking loans ranging from $1 million to $5 million in major metropolitan regions within Arizona, California, Nevada, and Texas. The loans will be offered at a fixed rate of 12%, a one year term and at a maximum of 50% loan to value on today's real market value. The lender will provide one 1-year renewal option. To discuss,, please contact Steven Hamermesh, CEO, Penstar Net Lease Advisors, Inc. 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.

Three Boys

Three boys are playing in the schoolyard each boasting about how great their fathers are.

The first one declares, “My father runs the fastest. He can fire an arrow and reach the target before the arrow does.”

The second one exclaims “Ha! You think that's fast! My father is a hunter. He can shoot his gun and reach his prey before the bullet!”

As the third schoolboy listens to the others, he shakes his head, saying, “You two know nothing about fast. My father is a civil servant. He stops working at 4:30 and he is home by 3:45!”