| 1E - DSCR < 1.10. The loan is secured by a 37,190 sf office property in Hoover, AL built in 1985 and renovated in 2007. The property was inspected on 12/10/08; rated in Good condition. Q1-2009 NCF DSCR is .91 with an occ of 88%; YE 2008 NCF DSCR is 1.02 with an occupancy of 88%. The decline in NCF is a result of an EGI decline combined with an increase in operating expenses. Ann. 2009 EGI has 4% from YE 2008 and 12% from U/W due to the delinquency of the tenant MK CPA Group, P.C. (\''MK'') (occupies 3,857 sf or 10.37% NRA with a lease expiring on 03/31/2014) combined with the vacating of IT Business Solutions (occupied 2518 sf or 6.77% NRA) vacating prior to their lease exp of 03/31/2017. MK pays $5409.44 monthly or $64,913.28 annually. Per Bwr, MK is one month delinquent in rents. Bwr continues to aggressively collect the delinquent rents from the tenant. As of the March 2009 RR there is 4404 vacant sf at the property with no prospects. In late 05/09, Bwr stated that they received requests from Pinnacle Engineering, occupies 4188 sf or 11.26% NRA with lease exp on 02/28/2012 and Diamond Studios, occupies 8221sf or 22.11% NRA with lease exp 03/31/2011 for rent reductions. It is noted that ann 2009 operating expenses have increased 8% from U/W due to higher than normal utilities and repairs/maintenance. Borrower noted that utilities have risen due to higher than anticipated electricity costs. Per Borrower, the reported repairs/maintenance expenses are recurring in nature. Effective 08/13/2009, the loan has been transferred to the Special Servicer. Loan will be removed from the watchlist with October 2009 reporting.
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