| 1E - DSCR < 1.10 and 1F - DSCR < 1.40 and <= 75% U/W DSCR. The loan is secured by a 18,892 office building in Santa Ana, CA. The property was inspected on 09/24/08; rated in Good condition. Q1-2009 NCF DSCR is .80 with an occ of 90%; YE 2008 NCF DSCR was .84 with an occupancy of 91% The decline in NCF is a result of an EGI decline combined with an increase in operating expenses. Ann 2009 EGI shows a 5% decline from YE 2008, and a 9% decline from prior years and U/W. U/W base rents were projected at $291,180.00 and were based on current leases in place plus rent increases & master lease rent for DTI Investments. DTI Investments occupies 31.70% NRA and is owned by the borrower principals. Ann 2009 base rents are $265,672. Per Borrower, property is 100% occupied as of 05/04/09. Current rate on all occ spaces is $1.21 as per Bwr. Ann 2009 2008 operating expenses show a 7% decline from YE 2008, but a 27% increase from U/W and prior years due to higher than normal repairs/maint, and gen/admin exp. Per Borrwer, RM increased due to exterior repairs that were completed at the property. Bwr stated that they always strive to keep operating expenses to a minimum. 2009 operating expenses will increase only due to inflation. Bank of America will continue to monitor the loan.
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