| 1E - DSCR < 1.10, 1F DSCR <1.40 & <= 75% U/W, 4A - Occupancy < 80% U/W, 4B EGI< U/W EGI & < 1.10. The loan is secured by an 83,675 sf office property in La Mirada, CA built in 1982. The property was inspected on 10/21/2008 and rated in good condition. YE 2008 NCF DSCR was 0.48x with occupancy of 61%. The drop in occupancy is due to Pacific Pioneer Corp and Friendly Franchisees Corp being listed as \''Vacant'' on the RR. 3Q 9/30/2008 NCF DSCR is 0.66x with occupancy of 88%. 2Q 6/30/2008 DSCR was 0.71 with occupancy of 72%. 1Q 2008 DSCR was 0.98 with occupancy of 90%. YE 2007 NCF DSCR is 1.10 with occupancy of 93%. YE 2006 DSCR was 1.20 with 99% occupancy. The DSCR decline is due to a decrease in rental income combined with a slight increase in expenses. The largest tenant (Pacific Pioneer Corp.) which expired 4/30/2008 vacated the premises in 1Q 2008, which caused the decline in rental income. The borrower stated that portions of the space have been released, but they are still actively working to lease more of the vacant space. Per a 3/10 conversation with the Borrower, Friendly Franchisee will not be taking the 8,431 sf of space. Of this vacant space, the Bwr will lease 4,434 to EDP. Bank of America will continue to monitor the loan.
|
