| 1E - DSCR < 1.10, and 1F - DSCR <= 75% U/W DSCR. The loan is secured by a 1,268,722 sf industrial property in Chicago, IL built in 1949 and renovated in 1998. The property was inspected on 09/16/08; rated in Good condition. The Q1-2009 NCF DSCR is .77 with an occupancy of 76.44%. The decline in NCF is a result of an EGI decline. Annualized 2009 EGI has declined 16% from YE 2008 due to an occupancy decline. Occupancy decline occurred during Q2-2008 when Rapid Display, Inc. vacated upon their lease expiration of 06/30/08. Rapid Display, Inc.occupied 189,685 sf or 15% NRA. As of the April 2009 rent roll, there is 303,841 vacant sf at the property. Per Bwr, Apex Logistics leased 30,000 sf at 2.15 PSF for a 5 year term with a (3) year option at 2.5% escalations. For remaining vacant space, there are no prospects. Current asking rates range from $2.5 - $3 PSF. Property is marketed with an outside broker, Epic Savage and an internal broker. Brokers list the property on Craigslist, company website, and MLS list. Per Bwr, the subject property has an advantage over competing industrial properties since property is in very close proximity to the airport and major expressways. Per Bwr, they do not foresee any problems with leasing the spaces - lease up may take a little longer due to the current market/economy. Annualized 2009 operating expenses show a 6% increase from YE 2008 due to higher than normal RM, UTIL, and PFEE. Additionally, The US Postal Service sent notice to the American Postal Workers Union this summer outlining plans for consolidation in every major metro market in the country. USPS has considered closing 3,243 of its 4,581 branches and postal centers. USPS has identified markets for closure but not specific locations. USPS occupies 2.14% NRA or 27,543 sf with a lease expiration of 04/30/2011Bank of America will continue to monitor the loan.
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