| 1E - DSCR < 1.10; 1F - DSCR < 75% U/W. The loan is secured by a 314,983 sf office property located in Carle Place, NY built in 1970. The property was inspected on 7/23/2008 and rated in Good condition. 3Q 2008 NCF DSCR is 0.74x with occupancy of 88%. 1Q 08 NCF DSCR was 0.98x with occupancy of 87% while YE 2007 NCF DSCR was 0.82x with occupancy of 91%. YE 2006 NCF DSCR was 1.00x with occupancy of 94%. YE 2007 EGI was $8,324,834 a 4.7% decline from YE 2006. A portion of the decline is due to rental concessions in the amount of $103.9K given to new and renewing tenants. YE 2007 operating expenses are $4,943,478 a 5.3% increase from YE 2006. The previous borrower stated that approximately, $207,000 of the YE expenses were a result of legal expenses and Environmental reports due to the pending sale of the property and would be non-recurring. Bank of America will contact the borrower regarding the performance and will continue to monitor the loan.
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