| 1E - DSCR < 1.10 & 4A - Occ < 80% U/W Occ. The loan is secured by five SS facilities in FL, IL, & NJ built from 1980 - 1999. Combined number of units is 2,896 . The properties were inspected in 08/08; rated in Good condition. The consolidated Q1-09 NCF DSCR is .96 with a combined occ of 62.53%; consolidated YE 2008 NCF DSCR was 1.04 with a combined occ of 64.30%. The decline in NCF is a result of an EGI decline combined with increased OE. Ann 2009 EGI has declined 4% from YE 2008 & YE 2008 EGI had declined 2% from YE 2007 & 11% from U/W due to lower base rents & occ. at all of the properties. Occ has fell between 1% - 4% from YE 2007, & 3% - 27% from U/W. Per Bwr, occ decline is due to following factors: limited adv from township at Cliffwood, poor property mgt at Millville(Bwr has since replaced), increased competition, & seasonal factors. Asking rates are as follows depending on unit size: Cliffwood - $49-$365, Millville - $40-$279, Williamstown - $49-$1400, & Glenview - $54-$399. Per Bwr, the subject properties rates are slightly higher than their competitors. Bwr is focusing on “Grass Roots” mkt at all locations. Bwr also places focus on partnering with local realtors, local businesses, & apt complexes for adv all of the properties. All properties are also advertised in yellow pages. Concessions include 1st month free, 10% discounts to senior citizens & military personnel, & a new referral program. Cliffwood is an older property & is need of refurbishment while, competing properties are newer with climate controlled units. Millville is older than competing properties, & is located in area with very little traffic. Titusville, Glenview, & Williamstown are comparable to competing properties in their mkt area, & offer the same type of “amenities”. Bank of America will continue to monitor the loan.
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