| 1E - DSCR < 1.10. The loan is secured by a 88-unit multifamily in Union City, GA. The property was inspected on 08/28/08; rated in Good condition. YE 2008 NCF DSCR is .84 with an occupancy of 99%; YE 2007 NCF DSCR was .95 with occupancy at 99% . The decline in NCF is a result of increased operating expenses combined with a slight decline in EGI caused by property below market rents. 2008 EGI shows a 3% decline from YE 2007. Per primary servicer, the Reis 4Q 2008 report indicates the subject\''s submarket has a vacancy rate of 14.2%, and an effective rent of $656/unit. Rental concessions for 2009 are offered in the form of $99 security deposit. Rental rates are comparable to competitors in the area, and therefore, Borrower will not be raising rates due to the competition. Competitor''s rates range from $600-680 depending on unit size. Operating expenses began to rise at YE 2005 due to higher insurance, real estate taxes, utilties, and professional fees. The increase in operating expenses from U/W has continued through 2008. 2008 operating expenses show a 4% increase from YE 2007, and a 34% increase from U/W due to higher insurance, real estate taxes, and professional fees. Bwr did not indicate to primary servicer the reason for the higher expenses. Bank of America will continue to monitor the loan.
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