| 1E - DSCR < 1.10 and 1F - DSCR < 1.40 and <= 75% U/W DSCR & 4A - Occ < 80% U/W Occ. The loan is secured by a 535 unit multifamily property and a 78,463 sf office property in Jenkintown, PA built in 1955 and renovated in 2004. The property was inspected on 09/25/08; rated in Good condition. Q1-2009 NCF DSCR is .55. Multifamily occupancy is 86.54% and office occ is 61.31%; YE 2008 NCF DSCR was .84. Multifamily occ was 91%, and office occ was 76.85% as of 12/31/08. The decline in NCF is a result of an EGI decline which was caused by an increase in vacancies, rental concessions, and a decline in parking income. Per Borrower, due to the downturn in the economy, occupancy levels at the property decreased. In order to increase occupancy at the property, rental concessions were increased. Current asking & market rates for multifamily units range from $685 - $2,042.00 depending on unit size. Multifamily concessions include discounted rents with ½ a month free on a 1 bedroom, 1 full month free on a 2 bedroom, and 1&1/2 month free on a 3 bedroom with a 13 month lease. Property is advertised in various apartment guides, Craigslist, various apartment internet listing sites, and local newspapers. Occupancy for multifamily units as of April 2009 is 90%. The 03/09 rent roll shows that there is 30,359 vacant sf of office space with no prospects as of 04/2009. Current asking rates range from $10-$14 PSF. Office spaces are marketed with Pintzuk Brown Realty Group who adv the property with direct mailings, newspaper ads, and signage. Ann. 2009 operating expenses show a 9% increase from YE 2008 due to higher than normal repairs/maintenance, and Gen/admin expenses. Per Borrower, these expenses increased as a result of increased turnover at the property combined with unexpected HVAC, plumbing, late fees, and penalties that were not budgeted. Bank of America will continue to monitor the loan.
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