By Craig J. Carbrey

As you enjoy the warm weather, long days and relaxed pace of the summer months, we have provided you with a bevy of new topics in a slightly more interactive format for our Summer 2009 Newsletter.

In addition to the insightful articles by the EFG staff you have come to expect, we are also introducing a new guest column called "How I See It." The first contributed piece is by Benjamin Leslie-Bole of leading environmental consulting firm, Environmental Resource Management (ERM). Ben is the first of many guest contributors featured in our newsletter as we strive to give you a broad variety of insights from some of the leaders in our industry. His article will offer an environmental engineering perspective of the brownfield industry in the past, present and future.

One topic we have given special attention to in this issue is renewable energy, which is fast emerging as a global priority. We took a look at some renewable energy projects that are already changing the landscape of energy consumption and are likely to make an impact in how we approach real estate development. Look for renewable energy to become a much more commonly used phrase in this space as we explore ways to make it a component of our lending strategy as a natural extension of brownfield lending.

While our environmental future certainly looks promising, current economic realities continue to cause rampant speculation, with the threat of the commercial real estate market going the way of the notorious subprime meltdown now a growing concern. We’ll take a look at the economic ramifications of the wave of CMBS loans now coming due and how some savvy investors and developers can actually take advantage of these supply/demand issues.

Despite the uncertainty in the market, some projects are soldiering on. We have updated the progress on a project we have financed in Honolulu, Hawaii as it continues to undergo a successful remediation. When complete, this infill project will serve as an expansive retail center for an underserved market; certainly a sign of positive things to come.

While we continue to face a host of challenges surrounding the economy, there are a number of reasons for optimism: Both prices and sales volume on single family homes are stabilizing, loan requests are continuing at an acceptable rate (hampered only by a continued dearth of cash flow), and real estate transaction attorneys have indicated that there is movement toward a more balanced bid/ask leading toward a transaction that can be completed.

As we continue to look toward new and innovative ways of providing value to our clients, we hope that you also find a high level of value in this newsletter. We appreciate your readership and are always open to your feedback on how we can make this experience even more useful for you.

So settle in, enjoy the summer reading and we’ll check in with you again this fall.