| 1E - DSCR < 1.10. Loan is secured by a 687-unit self-storage facility in Hickory, NC, built in 2000 and expanded in 2002/2004. The collateral consists of 672 self-storage units plus 15 rentable vehicle parking spaces. The 3/26/2008 inspection rated the Property in Good condition. YE 12/31/2008 NCF DSCR is 1.08x with 67% Occupancy as of 12/31/2008. Loan was U/W at 1.21x with 76% Occ. YE08 DSCR decline appears to be attributed to decreased Occ and Rental Income, combined with certain increased Operating Expenses. YE08 Base Rents have decreased 21.3% from U/W and 4.5% from PYE. YE08 TOE increased 10.7% from U/W and 15.7% since YE07. An itemized detail of U/W expenses is not available for line item comparison. Year-over-year, however, the notable increases in YE08 expenses are in GA (29.7% over PYE), R&M (73.1% higher than PYE), and P&B (26.9% above YE07). The resulting NCF is 25.4% below U/W and 16.5% lower than YE07. The Property appears to be somewhat impacted by seasonality as it is located in a college town. It may also be impacted by the soft economy\''s affect on the retail and wholesale furniture industries, which have historically held a major presence in Hickory, NC. Bank of America has requested Borrower''s feedback regarding performance decline; awaiting a response.
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