| 1E - DSCR < 1.10, 1F DSCR <1.40 & <= 75% U/W. The loan is secured by a 136,427sf Mixed use property in Indianapolis, IN built in 1983; renovated in 2007. The property was inspected on 07/30/08 and rated in good condition. 1Q 3/31/2009 NCF DSCR is 0.69 with occupancy of 77%. YE 2008 DSCR was 1.00 with occupancy of 80%. The DSCR remains low due to the higher than anticipated operating expenses. Per U/W, a master lease for 16,000 sf at $9.25/sf or $146,400 annually was required to mitigate the current vacancy at the property. The master lease can be released upon new tenants in occupancy and paying rent & when the DSCR is greater or equal to 1.20. The original borrower acquired the prop in June 2007 and has taken steps to rectify the low occupancy by hiring Colliers Turley Martin Tucker as leasing agents, implementing an aggressive marketing campaign, & offering an attractive TI package to prospects. The loan was assumed on 9/25/08. Borrower indicated that real estate taxes have increased due to a county wide tax reassessment which Borrower is currently appealing. R&M and G&A expenses remain high due to substantial snow removal costs and heating expenses from the harsh winter. Bank of America will continue to monitor the loan.
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