Star News

New U.S. home sales jumped in June by the largest percentage in 8 years as buyers took advantage of bargain prices, low interest rates, and federal tax credits for first-time homeowners. While median home prices continue their decline, the sales figures released Monday were another sign that the housing market is demonstrating a return towards recovery. Data released last week showed that home re-sales rose 3.6% in June, the third consecutive monthly increase.

As the commerce department figures reflect an increase of 11% in new home sales for the month of June, (seasonally adjusted to a rate of 384,000, up from a rate of 346,000 in May), median sale prices were less positive. June's median sale price of $206,200 was down 12% from $234,300 a year earlier; and down nearly 6% from %219,000 in May. We will keep you posted…

Hot Money
Hong Kong Investment Group Seeks to Acquire Condo Blocks or Entire Residential California Projects

Penstar is assisting in locating and identifying blocks of 30 to 100 residential condo and townhome style units in single real estate developments. New construction as well as older but recent conversions in the Los Angeles and Bay Area are sought for acquisition.

Desired Los Angeles areas include Burbank, Downtown, Glendale, Long Beach, Torrance, the San Gabriel Valley, or the Westside. Bay Area (San Francisco and Silicon Valley) units are also of interest. Developments where partial sales have occurred will be considered if blocks of 30 or more units can be acquired for up to $700,000 per unit. Larger blocks of units will be considered in the future although no concentrations over 100 units will be reviewed at this time.

Distressed projects will be underwritten in an effort to structure a transaction that will be beneficial to all parties. Closings are projected to occur within 120 days from the execution of an LOI.

For more information, please contact David Stepanchak at(818) 883-9611, or via email at DStep@PenstarAdvisors.com.

Helpful Humor

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

“Bankers Humor”

1. The financial crisis is so bad; ATM's now have slot machines.

2. I wrote a check for $100 to a friend but he was unable to cash it - the check was good but the bank bounced.

3. I loaned a friend $80 last week, and according to the market I qualify as the country's 4th largest lender.

4. The credit crunch is worst than a divorce. I lost half of my net worth but I still have my wife.

5. I went to buy a toaster and it came with a bank.

6. What do you call a 75% commercial property loan request? A dream.