| 1E - DSCR < 1.10; 1F - DSCR < 1.40 & < or = 75% U/W; 4B - EGI < U/W EGI & < 1.10 DSCR; and 4A - Occ < 80% of U/W. Loan is secured by a 27,942 sf medical office bldg in Dallas, TX, built in 2004. The 10/28/2008 inspection rated the Property in Excellent condition. YE 12/31/2008 NCF DSCR is 0.89x (28.8% decline from U/W), with 76.4% Occ. YE 12/31/2007 NCF DSCR was 1.14x with same Occ. Loan was U/W at 1.25x and 100% Occ. All tenants have NNN leases and continue to pay an avg annual rate of $19 psf, per the 1/29/2009 rent roll. DSCR remains below threshold at YE08 due to decreased Occ & Base Rents compared to U/W and YE07, combined with increased TOE over PYE. YE08 Occ is only 0.4% higher than YE07, but YE08 Base Rents and EGI are both 6.2% lower than PYE. YE08 EGI is 23.9% below U/W, when EGI was calculated solely by Base Rents, which appears to be consistent with most recent reporting. YE08 TOE are 32.7% higher than YE07; this is primarily attributed to a increased R&M of 290% over PYE, and Prof Fees by 305% from YE07. According to the Primary Svcr, the Bwr indicated that their 2nd largest tenant, Tenet Hospitals Limited (1434 sf; 5.1% NRA), vacated upon their 12/31/2008 lease exp, and the Bwr has not been able to secure a new tenant for the space; current asking rate is $19 psf/NNN. In 2009 lease rollover affects an additional 9463 sf or 33.9% NRA. As the Bwr has failed to report any 2009 financials or rent rolls to date, the current Occ is unconfirmed at this time. The Primary advised Bank of America on 7/30/2009 that the Bwr cited the Property\''s vacancy issue as the reason it is not cash flowing; Bwr also indicated to Primary that the Property was recently reappraised, with the value dropping from approx $6MM in 2006 to approx $2.5MM. Bwr also had a recent tax reassessment, resulting in lower RET. Primary has asked Bwr to explain their current situation in writing, and provide past-due financials. Bank of America will continue to monitor the Loan.1E - DSCR < 1.10; 1F - DSCR < 1.40 & < or = 75% U/W; 4B - EGI < U/W EGI & < 1.10 DSCR; and 4A - Occ < 80% of U/W. Loan is secured by a 27,942 sf medical office bldg in Dallas, TX, built in 2004. The 10/28/2008 inspection rated the Property in Excellent condition. YE 12/31/2008 NCF DSCR is 0.89x (28.8% decline from U/W), with 76.4% Occ. YE 12/31/2007 NCF DSCR was 1.14x with same Occ. Loan was U/W at 1.25x and 100% Occ. All tenants have NNN leases and continue to pay an avg annual rate of $19 psf, per the 1/29/2009 rent roll. DSCR remains below threshold at YE08 due to decreased Occ & Base Rents compared to U/W and YE07, combined with increased TOE over PYE. YE08 Occ is only 0.4% higher than YE07, but YE08 Base Rents and EGI are both 6.2% lower than PYE. YE08 EGI is 23.9% below U/W, when EGI was calculated solely by Base Rents, which appears to be consistent with most recent reporting. YE08 TOE are 32.7% higher than YE07; this is primarily attributed to a increased R&M of 290% over PYE, and Prof Fees by 305% from YE07. According to the Primary Svcr, the Bwr indicated that their 2nd largest tenant, Tenet Hospitals Limited (1434 sf; 5.1% NRA), vacated upon their 12/31/2008 lease exp, and the Bwr has not been able to secure a new tenant for the space; current asking rate is $19 psf/NNN. In 2009 lease rollover affects an additional 9463 sf or 33.9% NRA. As the Bwr has failed to report any 2009 financials or rent rolls to date, the current Occ is unconfirmed at this time. The Primary advised Bank of America on 7/30/2009 that the Bwr cited the Property''s vacancy issue as the reason it is not cash flowing; Bwr also indicated to Primary that the Property was recently reappraised, with the value dropping from approx $6MM in 2006 to approx $2.5MM. Bwr also had a recent tax reassessment, resulting in lower RET. Primary has asked Bwr to explain their current situation in writing, and provide past-due financials. Bank of America will continue to monitor the Loan.
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