For Real Estate Professionals Seeking a Market Edge
Too Big to Fail Reform
With the Healthcare Bill signed into law, the next significant debate facing Senate and Congressional lawmakers is the overhaul of federal financial regulations including language that addresses the ‘too big to fail’ doctrine. Financial reform legislation will receive top priority upon the lawmakers' return Monday following a 2-week recess.
In keeping with the partisan theme that has become characteristic of the current political landscape, the Senate Banking Committee approved Committee Chairman Christopher Dodd's (D-CT) bill last month in a party-line vote. Top Republicans including Richard Shelby (R-Ala) stated that the approved bill does not mitigate the exposure of large institutions, whose failure may eventually lead to additional bailouts similar to that of insurance giant AIG. In an editorial to the Wall Street Journal, Federal Deposit Insurance Corporation Chairman Sheila Bair disagrees as the bill affords the FDIC the necessary authority to dismantle large, failing firms in an orderly process.
Republicans at work on the bill have been trying to block the creation of a powerful, independent agency to police financial products. The full Senate debate will begin after Monday's recess. Democratic House member Paul Kanjorski (D-PA) commentated on Monday that the House bill will offer regulators the power to break up large financial firms before they get into trouble. He predicts the Senate will soon modify their bill to include similar authority. Kanjorski believes that unlike the Healthcare passage, a bipartisan bill will be passed by the end of May.
We will keep you posted…
Hot Money
All Cash Investment Group Seeking $500 Million of Single Tenant Bond Net Leased Properties Nationwide
Penstar is working with an investment group in their bid to acquire $500 million of single tenant NNN properties nationwide. They are an “All Cash” buyer with no financing requirements. Assets considered will range from $4 million to $50 million and include office, industrial, retail and special use with a minimum of 15 years remaining on the term. The purchaser will not accept asset management responsibility and therefore will only consider leases that exclude all landlord obligations including roof & structure as well as casualty exposure - the tenant must assume complete rebuilding responsibility with no abatement of rent. Profitable public and midsized to large private companies preferred. Pre-purchase commitments will be issued up to one year in advance. Purchase prices from 8.50% capitalization rates will be considered based on credit and rental increases. To inquire please, please contact Steven Hamermesh at (818) 883-9609 or Hamer@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
“He Asked Me…”
He asked me: Shall we try swapping positions tonight? |
30
Day Libor |
10-Year
Treasury |
Prime |
0.25% |
3.89% |
3.25% |
Penstar Realty Advisors can be reached at (818) 883-9600.
Our offices located at:
21700 Oxnard Street, Suite 1870, Woodland Hills, CA 91367