| 1E - DSCR < 1.10, 4D – Top 3 tenants Rollover > 30% NRA. The loan is secured by a 66,400 SF industrial warehouse in Orange, CA built in 1973. The property was inspected on 11/10/2008 and rated in good condition. 2Q 6/30/2009 NCF DSCR is 0.91 with occupancy of 86%. YE 2008 DSCR was 1.04 with occupancy of 82%. The decline in DSCR is attributed to lower EGI due to increased vacancy. Two tenants vacated the premises in 2008. The first occupied 9,600 sf and vacated upon their lease expiration in May 2008. The second occupied 2,350 sf and vacated in 4Q 2008 shortly before their Jan. 2009 expiration. The 2,350 sf space has already been released effective 3/1/2009 and the borrower is in negotiations with another tenant for the 9,600 sf space. Additionally, two tenants have lease expirations within the next 6 months. Signature Stone occupies 13,100 sf (19.73% NRA) with a lease expiration of 7/31/2009 and World Club Supply occupies 10,300 sf (15.51% NRA) with a lease expiration of 10/31/2009. Combined these tenants account for 35.24% of the NRA. Per the borrower they have an amendment out for signature with Signature Stone which will extend their lease through 12/31/2012 and they have just begun discussions with World Supply regarding their extension. Bank of America will continue to monitor the loan.
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