Star News

This week, the government identified several of the top U.S. banks that will be allowed to repay a collective $68 billion of federal money received under the Troubled Asset Relief Program, or TARP if they so choose. Banks including JP Morgan Chase, American Express, BB&T Corp, US Bank Corp, Capital One Financial Corp, and Bank of New York Mellon Corp had been raising capital in an effort to prove their ability to operate without government support.

Raising funds in the capital markets is one of many criteria the government imposed upon those banks wanting to return TARP funds doled out last year at the height of the credit crunch. The market is likely to view those banks approved to return the funds as being in a position of strength in direct comparison to their peers, the latter of whom have been required by the government to raise additional capital as a buffer against future losses.

Last month, the government performed stress tests on nineteen of the largest U.S. banks. Those banks were given a deadline of June 8th to implement a ‘capital-raising’ plan approved by regulators; and have an additional deadline of November, 2009 to raise such funds. We will keep you posted…

Penstar recently obtained an application for the purchase of a single tenant industrial property currently leased to an investment grade credit tenant for 15 years, before options. The 80,000 square foot property includes a 5% office buildout. The lender offered a $4 million loan to 62% of purchase at a fixed rate of 7.45% for 10 years, with a 30-year amortization, and non-recourse with the exception of standard carve outs. For more information, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com

Penstar identified a portfolio lender funding permanent refinance and acquisition loans for mini-storage, office, and industrial properties between $1 million and $3 million nationwide. The lender will provide 5, 7, 10, and 15-year fixed rate financing starting at a fixed rate of 7%. All loans will carry a 25-year amortization and are full recourse to the borrower. 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 Devil Made Me Do It”

The Devil appeared to a salesman who was facing tough economic times. “Look,” announced the Devil, “I can make you richer, more famous, and far more successful than any salesman alive.” “In fact,” he continued, “I can make you the greatest salesman that ever lived.”

“Well,” queried the salesman, “What must I do in return?”

The Devil grinned, saying, “Well, of course you have to give me your soul. You also have to give me the souls of your children, the souls of your children's children, and as a matter of fact, you have to give me the souls of all your future descendants.”

“Wait a minute,” the salesman replied, cautiously, “What's the catch?”