| 1E - DSCR < 1.10 & 4A- Occ < 80% U/W Occ. The loan is secured by a 7,012 sf retail property in Gilbert, AZ built in 2003. The property was inspected on 09/18/07; rated in Good condition. Q1-2009 NCF DSCR is 1.07 with an occupancy of 57%; YE 2008 NCF DSCR was 1.05 with the occupancy of 78%. Decline in NCF and Occ is due to the vacating of Tropical Smoothie Cafe who occupied 1768 sf at the property & Kokomo Tan who occupied 1437 sf or 20.49% NRA filing bankruptcy and subsequentl vacated during Q4-2008. As of March 2009, there is 3205 vacant sf at the property. Prospects include Batteries Plus for +/-1,500 square feet . Per Bwr, lease terms have been discussed, but a lease has not been signed. The proposed lease is for a 5-year term at $16.00 PSF/NNN with concessions including five months free rent, an expense stop at $5.75 PSF for NNN expense reimbursements, & a $5.00 PSF/TI allowance. Per Bwr, the asking rate is believed to be at market; however, a market rate is difficult to pinpoint, as the market is changing. According to REIS.com, asking rental rates in the Gilbert, AZ sub-market have decreased 0.9% to $16.78 per square foot in Q1-2009. The market in the area is soft as per Borrower. Borrower stated the property is being marketed using Strategic Retail, broker mailings, signage, and email blasts. Bank of America will continue to monitor the loan.
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