Star News

The results of the long awaited stress tests for the country’s 19 largest banks were delayed until later this week. Stories have leaked out implying that Citigroup, Wells Fargo, Bank of America, and PNC will each need to raise as much as $35 billion of additional capital to fulfill their reserve requirements. Reports show that regulators have had confidential discussions with the banks regarding the need to shore up their capital base. The issues of where the capital is going to come from and how much more existing shareholders will be further diluted certainly calls into question the recent rally in the banking sector’s stock prices. We will keep you posted…

This week, Penstar received a loan commitment for the acquisition of a 21,000 square foot vacant retail box in Southern California. During the escrow process, the borrower indentified several national tenants who have expressed interest in leasing the property on a long-term lease. The lender provided a loan of $4,490,000 priced at Prime plus 2, floating with a floor of 5% and with interest-only payments. The loan reflects a term of 12 months with one 12-month extension. An interest reserve of $300,000 will be held back from loan proceeds, as well as $460,000 to pay for future tenant improvements once leases are executed. To discuss, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Penstar is currently working with an investment group actively acquiring industrial properties leased to investment grade tenants nationwide. They are seeking properties ranging from $10 million to $50 million with a minimum 15-year lease, plus options. Capitalization rates will be 9% or higher for their consideration. 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.

Dogs Need Sleep, Too

One afternoon, an older dog wandered into my backyard, looking visibly tired. Although he appeared to be well-cared for and fed, he calmly approached me then proceeded to follow me into my house. He curled up in the corner, falling fast asleep. An hour later, he arose and went to the door and I let him out.

The next day the dog returned, greeted me in my yard, walked inside, and resumed his spot in the hall, again sleeping for about an hour before leaving. This continued for several weeks.

I decided I could contain my curiosity no longer. I pinned a note to his collar: ‘Are you aware that almost every afternoon your dog comes to my house for a nap,’

The following day the dog returned with a note pinned to his collar that read: ‘He lives in a home with 5 children all under the age of 6 and is trying to catch up on his sleep. Can I come with him tomorrow?’