| 1E - DSCR < 1.10; 1F - DSCR < 1.40 & < or = 75% U/W. Loan is secured by a 637,685 sf office bldg in New York, NY, built 1958/renov 1990; inspected 2/24/09 and rated in Fair condition. Debt consists of a $325MM whole loan split btwn a $162.5MM A-1 Note (BACM 2007-1) & a $162.5MM A-2 Note (BACM 2007-2), Pari Passu. Q1-2009 NCF DSSCR is .66 with 89% Occ; YE 12/31/2008 NCF DSCR was 0.63x with 89.9% Occ; YE 12/31/2007 NCF DSCR was 0.62x with 92% Occ. NCF decline is due to lack of loan stabilization as of Q1-2009 & YE08. Stabilized rents per U/W: Floors 2-9, $62.50 psf; Fls 10-20, $67.50 psf; Fls 21-28, $71 psf; Fls 29-35, $75 psf; Garage, $35 per space; Street Retail, $125 psf; and Ave Retail, $180 psf. Bwr rep\''s update on tenants whose leases expire in the next 12 months: Kodashana will vacate upon 4/30/09 lease expiration; Mid Town Parking''s lease expires 8/31/09; and 575 Lex Garage LLC has signed a 10-year renewal at a rate of $28.70 psf for the first 3 years. Regent''s lease will expire 12/31/09, however, Bwr does not yet have a renewal proposal out to this tenant. As per the 12/31/08 rent roll, there are 65,328 sf sitting vacant at the Property, with no prospects. Bwr rep further stated that these vacant spaces are being actively and aggressively marketed. Asking rates: $70-72 psf for years 1-5; $76-79 psf for years 6-10; per the Bwr rep, rates are comparable to market and most new leases or proposed renewals have rent steps every 5 years. Bwr''s $10MM Guarantee was required to cover future DS shortfalls/mitigate below-mkt rents. Bank of America will continue to monitor the Loan.
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