| Id | Name/ | Type/ | Bal | GLA/Units | LTV | WAC |
| | Address | Subtype | % Pool | Occ. % | DSCR | Originator |
| 7 |
1150 18th Street, NW |
OF |
$46,980,000 |
166,518 |
68.4 |
7.000000 % |
| 90+ | 1150 18th Street, NW, Washington DC 20036 | | 2.3% | 80% | 0.90x (UW) | GACC |
|  | | Tenant | % | Expires | | Reed Elsevier | 22.33 | 07/31/12 | | Stinson Morrison Hecker | 10.12 | 12/31/09 | | Miller & Chevalier | 9.66 | 02/29/08 |
|
| 17 |
Town Center East Building 3 |
OF |
$28,439,152 |
147,559 |
75.1 |
6.360000 % |
| | 243 Israel Road SE, Tumwater WA 98501 | | 1.4% | 97% | 0.97x (6 mths) | Artesia |
|  | | Tenant | % | Expires | | Vine Street Investors (Master Lease) | 35.01 | 08/31/12 | | State of Washington (Department of Health) | 33.11 | 06/30/16 | | State of Washington (Labor & Industries) | 24.43 | 03/31/12 |
|
| 08/11/09: In July 2008, one of the State of Washington leases increased the base rent. That increase is driving the improvement in Q1 2009 DSCR of 0.96X vs YE 2009 DSCR of 0.83X.06/10/09: The Town Center loan is secured by a 147,559 sf office building in Turnwater, WA which was built in 2006. The subject is one of four buildings that comprise Town Center East, an office complex which includes two additional office buildings and a four-story covered parking garage. As Town Center East was not fully leased at loan closing, Vine Street Investors, LLC, a Borrower-related entity, had provided a 5 year master lease ensuring a minimum economic occupancy of 97.5%, originally supported by a $1,123,415 Letter of Credit. It should also be noted that the principal of the borrower is the largest single landlord for the State of Washington, with over 25 years of experience in developing, owning, and managing properties leased to the government (all tenants are State of WA departments).FYE 2008 NCF DSCR of 0.83x is driven largely by the property being 13% vacant until mid-2008 (during which time there was a Master Lease secured by a LOC of $1.1MM held by Lender). On 7/1/08, the borrower leased an additional 15,175 sf to an existing tenant, bringing occupancy to 97% (with earliest lease expiration in 2012) and increasing rents for two tenants such that the conditions for releasing the LOC were met, which was subsequently released.2009 proforma DSCR would be 1.01x based on borrowers 2009 budget and use of underwritten 2% management fee. The variance from UW of 1.16x is due to the fact that UW EGI was based on $21.56/sf average rents over the lease term for 33% of GLA (vs then current rent of $20.24/sf) as well as $21.50/sf for the Master Lease. Based on the 3/31/09 rent roll, average rent for occupied space is currently $20.61/sf. Further, given the tax issue explained below, taxes have been higher than underwritten as well. Once these items are accounted forr, actual performance is generally in line with UW.Projected income for 2009 based on in-place tenants is almost $3MM, which matches borrower budget. Also, the borrower noted they currently pay taxes on the proportionate share (40%) of a garage shared with 2 other buildings under a reciprocal easement.
|
| 19 |
Versar Center Office Building |
OF |
$28,000,000 |
217,391 |
80.0 |
6.414000 % |
| | 6800 & 6850 Versar Center, Springfield VA 22151 | | 1.3% | 82% | 0.98x (6 mths) | GACC |
|  | | Tenant | % | Expires | | Cornet Technology, Inc. | 23.53 | 06/30/10 | | Versar, Inc. | 22.63 | 11/30/15 | | National Capital Preferred Provided Organization | 9.17 | 07/31/08 |
|
| 9/14/09: Subject property is a 462pad Mobile Home Park built in 1970. At 3/31/09, DSCR was 1.23X and occupancy at 100%. Increase in occupancy is due to higher rents collected in the first half of the year.08/11/09: Q1 2009 financial reporting reveals nvery minor change in operating results or occupancy to the down side with a 1% decline in occupancy.06/04/09: The Versar Center consists of 2 four-story, Class B office buildings totaling 217,396 sf located in Springfield, VA, about 12 miles SW of downtown Washington, DC, and also includes a 4-level freestanding parking garage. The property was built in 1982/1987 and renovated in 2002.FYE 2008 NCF DSCR is 0.98x vs 1.20x at UW. It should be noted that UW DSCR of 1.20x is the level at which the sponsor guaranty by Bresler & Reiner, Inc. of $4,050,000 may be released, and not the actual DSCR for the Property. DSCR based on the full $28,000,000 loan amount and including amortization would have been 1.05x. Additionally, the borrower executed a Master Lease for $19/sf for any vacant space at necessary to result in an economic occupancy of 91%. Actual occupancy was 87.1% at FYE 2007 and 81.4% as of FYE 2008, with the decrease largely due to National Capital PPO (19,925 sf, 9.2% of GLA) vacating at the end of their lease term at the end of July 2008. Per discussion with the borrower, there has not been a lot of leasing activity lately, but there is potential for some government leases in 2009. The borrower stated that the property was well located and that they have tried to target larger tenants vs filling space with many smaller tenants, which can result in more volatility in occupancy. Expenses were also up somewhat from underwriting, though a direct comparison of the key drivers was not readily possible given UW did not separately break out items such as Janitorial and Payroll which comprise over $400,000 of actual expenses in 2008.
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