| 1E - DSCR < 1.10, 1F - DSCR < 1.40 and <= 75% U/W DSCR. The loan is secured by a 57 unit multifamily property in Matawin, NJ built in 1958; renovated in 2006. The property was inspected on 06/09/09 rated in Fair condition. Q1-2009 NCF DSCR is .55 an occ of 84%; YE 2008 NCF DSCR was .41 with a Sept occ of 93%. The decline in NCF is a result of a slight EGI decline combined with higher than anticipated operating expenses from U/W. Ann 2009 EGI has declined 4% from YE 2008 due to an occ decline. Per Bwr, occ decline was due to the economic downfall which has caused layoffs in the subject property area resulting in more delinquencies. Subsequently, Bwr has had to evict many more tenants. Current asking rates range from $999-$1250 depending on unit size. Per Bwr, property\''s rents & occ are comparable to other competing prop. rents in the mkt area. Occ as of July 2009 is 95%. Bwr has changed mkt/leasing approach by adv in 2 newspapers, 2 apt magazines, and 4 different apt websites. In addition, a prof leasing co has been hired to increase occ and rents at the property. Bwr has also changed tenant screening criteria to include credit checks and background checks. Ann 2009 OPEXP show a 53% increase from U/W due to increased ADV/MKT, PROF, RM, PAY, & GA exp. Per Bwr, since acquiring the property in 04/07, they have made significant strides in upgrading the units & imp. the athestics of the property to include new signage, refreshed landscaping, new kitchens in vacant units, new ceramic tile in bathrooms, upgraded electrical panels in vacant units, upgraded all foyers, upgraded laundry rooms. Bwr stated that for 2009 operating expenses are anticipated to level off and decline from 2008. Ann. 2009 OPEXP show a drop of 11% from YE 2008. Q1-2009 OPEXP also show a 33% drop from Q1-2008. Bank of America will continue to monitor the loan.
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