Star News

U.S. Government Support of Wall Street and National Banks Could Exceed $24 Trillion

The watchdog overseeing the U.S. financial bailout said that since 2007, the [U.S.] Government's maximum exposure to financial institutions totaled nearly $24 trillion, or approximately $80,000 for every American. This staggering amount, calculated by the Inspector General for the $700 billion Troubled Asset Relief Program, or TARP, accounts for 50 initiatives collectively set by both the Bush and Obama Administrations; and by the Federal Reserve.

Most of the programs are backed by collateral, and the $24 trillion represents the gross exposure, not the net liability that the government could potentially assume. No one is suggesting that the full exposed limit would ever be reached. That said, the government has thrown unprecedented amounts of capital at the banking industry as it attempts to cure the industry's ongoing woes. We will keep you posted…

Penstar recently obtained an acquisition loan quote for an 85,000 square foot Los Angeles County industrial property, currently leased to 7 regional tenants. The lender is offering a 60% loan to value, a term of 10 years at 7.25% fixed interest and a 25-year amortization. For more information, please contact David Stepanchak at(818) 883-9611, or via email at DStep@PenstarAdvisors.com.

Hot Money
Insurance Company Seeking Loans from $2 Million to $35 Million

Penstar is working with an insurance company actively funding loans on stabilized industrial and office properties nationwide. They are prepared to extend up to 60% loan to value [as calculated using a 9% capitalization rate], non-recourse, 10-year fixed rate of 7.0% and up-to 30-year amortization. To learn more, 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.

“Beware of Dog”

Upon entering a small country store, a stranger noticed a large sign saying ‘DANGER! Beware of Dog!’

Near the checkout was what appeared to be a harmless old hound dog lying on the floor, sound asleep.

The customer inquired of the store's clerk, “Is that the dog folks are supposed to beware of?”

“Yep, that's the one,” replied the clerk.

The amused stranger responded, “That certainly doesn't look like a dangerous dog to me.” “Is the sign really necessary?” he continued.

“It sure is,” confirmed the clerk. “Before I posted the sign, customers kept tripping over him.”