| 1E- DSCR < 1.10.The loan is secured by a 100,454 sf off/ret prop in Las Vegas, NV built in 2007. Loan was placed on the watchlist due to a Q1-2009 NCF DSCR of .98 with an occ of 96.94%. The decline in NCF was a result of an EGI decline combined with increased OPEREXP. Ann 2009 EGI had declined 11% from YE 2008, & 20% from U/W due to a decline in base rents. Per the 05/09 RR, the decline in base rents appeared to be the result of rent deferments. 19,659 sf or 19.57% (8 tenants) had rent deferments throughout 2009 & 2010. NV The RR also indicated that the Bwr has replaced 4 tenants at four units (18407 sf) at slightly lower rents than the former tenants.. Bwr stated that these rent deferments were necessary due to current economy; and the lower rents for these 4 new tenants are comparable to current mkt rates. Ann. 2009 OperExp had increased 4% from YE 2008 & 28% from U/W due to higher than normal UTIL & GEN/ADMIN exp. The Q2-2009 financials have been received and analyzed. Q2-2009 NCF DSCR is 1.22 with an occupancy of 100%. Loan will be removed from the watchlist with October 2009 reporting.
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