| 1E - DSCR < 1.10; 1F - DSCR < 1.40 & < or = 75% U/W; 4A - Occ < 80% U/W; 4B - EGI < 80% U/W & < 1.10 DSCR; and 6A - Other (Inadequate Financial Reporting). Loan is secured by a 39,729 sf mixed use office and retail property in Cocoa Beach, FL, built in 1986. The 5/22/2008 inspection rated the Property in Excellent condition. YTD 9/30/2008 NCF DSCR is (0.03)x with 67% Occ (a 23% decline from U/W, qualifying the loan again for 4A); YE 12/31/2007 NCF DSCR was (0.83)x with 74.6% Occ. Loan was U/W at 1.21x with 87% Occ. Based on Annualized figures, the 3Q08 Base Rents and EGI have both declined 67.4% from U/W, while also 9.6% above YE07. Total OpExp are well below both U/W and PYE, however, R&M has notably increased by 55.6% in the last year. The resulting NCF is a 101.7% decline from U/W and 97% below YE07. The DSCR decline is attributed to Occupancy and Base Rents decline, which caused an EGI decline. It appears the Borrower may be including in their financial reporting certain additional income that is not from strictly property-level operations, and presumably certain expenses that are also not property-level only. Bank of America maintains efforts to encourage the Borrower to eliminate non-property-level figures in their reporting; Borrower has not yet acknowledged this request. Bank of America maintains efforts to obtain a leasing update and current marketing plan from the Borrower, and will continue to monitor the Loan.
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