| 1E - DSCR < 1.10, 1F DSCR <1.40 & <= 75% U/W, 4B EGI< U/W EGI & < 1.10, 4A - Occ < 80% U/W occ. The loan is secured by a 231,512 sf office property in La Jolla, CA built in 1990. The property was inspected 8/10/2009 and rated in excellent condition. The fiscal QTR ending 3/2009 NCF DSCR is 0.80 with occupancy of 63%. FY 2008 ending 6/2008 DSCR was 0.70 with occupancy of 84%. The decline in DSCR is attributed to the property not being stabilized. U/W base rents were based on stabilized rents, not in place rents. U/W noted that although current rents were below market, the borrower projected $41.64/sf with 45% of the tenants rolling in the first 3 years, which allows for rent increases. Annualized 2009 EGI shows an 8% increase from FYE 6/30/2008, but still reflects a decline of 33% from U/W. Bank of America will continue to monitor the loan.
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