| 2C - Servicing Trigger & 4E - Tenant Bankruptcy. The loan is secured by a 249,215 sf industrial property in Chesapeake, VA built in 1991. The property was inspected on 11/02/08; rated in Good condition. The Q2-2009 NCF DSCR is 1.58 with an occ of 100%. The loan has been placed on the watchlist due to the 05/08/09 announcement that Stock Building Supply (\''Stock Building'') has filed Chapter 11 Bankruptcy. Stock Building occupies 100% of NRA at the property with a lease that expires on 05/30/2020. Bwr indicated in early June 09, that they received notification from the Bankruptcy court that the Stock Building lease at the subject property was rejected effective 07/31/2009. Bwr further stated that they believe that Stock Building will be vacating the property on or around 07/17/09. Per Borrower, ownership is willing and plans to support the debt until they are able to secure a tenant for the former Stock Building Supply space. A July 2009 update indicates that the Borrower has received an LOI for the former Stock Building space. Carter Lumber of Virginia would like to enter into a 5 year lease commencing 07/18/09 at an initial rate of $3.89 PSF/annual in year 1, $4.24 Year 2, $4.60 Year 3, and $4.85 year 4 & 5. An Aug 2009 updates indicates that the Carter Lumber of Virginia lease has been approved by the Master Servicer & Special Servicer. It is further noted that as a result of the Chapter 11 Bankruptcy filing, a servicing trigger has occurred on the loan. The loan has now become cash managed effective with the 06/01/09 payment. Bank of America will continue to monitor the loan.
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