| 1E - DSCR < 1.10, 1F - DSCR < 1.40 and <= 75% U/W DSCR, 4B - EGI < 80% U/W DSCR. The loan is secured by a 145,765 sf industrial property in Houston, TX built in 1979. The property was inspected on 11/07/08; rated in Good condition. The Q1-2009 NCF DSCR is .52 with an occ of 77.65%; YE 2008 NCF DSCR was .89 with an occupancy of 65%. The decline in NCF is a result of an EGI and occupancy decline. Ann 2009 EGI has declined 12% from YE 2008 & 2008 EGI had declined 18% from YE 2007 and 20% from U/W due to occupancy dropping from 81.40% at U/W to 65.20% as of March 2009. As of 06/25/09, occ has increased 19%. The occupancy drop occurred during the first three quarters of 2008 when five tenants who collectively occupied 34,217 sf or 23.47% NRA vacated. As of the June 2009 rent roll, there is 32,580 vacant sf at the property. Per Bwr in 06/09, Accutest signed a lease extension and expanded into 4,876 sf, Players Club Amusement took occ of 2125 sf for a 3 yr term at $1.56 PSF eff 04/01/09, and Lazzoni Furniture took occ of 11,143 sf for a 6 yr term at $7.54 eff 04/01/09. Bwr further stated that they have recently shown a prospect 12,000 sf and prospect is currently working on a short list. Vacant space at the property has been shown to a 14,000 sf prospect as potential for a wine storage facility, a 7000 sf prospect has also toured the property, and a 2400 sf vacant space has been shown to a prospect twice. Current asking rates range from $.55 - $65 PSF/monthly with $.13/CAM. Mkt/adv includes mass email blast to the entire brokerage community of over 3,400 brokers and contact with retail users and traditional office warehouse users within a five mile radius of the subject property. Bank of America will continue to monitor the loan.
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