| 1E - DSCR < 1.10, 1F - U/W DSCR drop, and 4B - EGI drop, and 4A - Occ < 80% U/W Occ. The loan is secured by a 76,308 sf office property in Morristown, NJ built in 1972 and renovated in 1998. The property was inspected on 12/10/2008; rated in Good condition. Q1-2009 NCF DSCR is .65 with an occ of 67.60%; YE 2008 NCF DSCR was 1.60 with an occupancy of 68%. The decline in NCF and occupancy is a result of C3i surrendering 24,116 sf of their leased spaced. C3i, Inc. occupied 36,919 sf or 48.48% NRA at the property with a lease that expired on 02/28/2012. C3i, Inc. informed the Borrower that they were relocating their call center and would be vacating by 04/01/2008 and therefore, wished to surrender 24,116 sf of their space. As a result, the Borrower and Tenant entered into a Leased Space Surrender Agreement whereby C3i, Inc. surrendered 24,116 sf and paid the Borrower a surrender fee in the amount of $958,453.00. The Lease Space Surrender agreement and transaction was reviewed and approved by the servicer and Special Servicer. The $958,453.00 is currently held by the servicer. Of the 24,116 sf of surrendered space, 4800 sf was sub-leased to Strategic Healthcom, LLC. The Borrower anticipated to have the remaining vacant space of 19,316 sf within eighteen months after 04/01/08. The Dec 2008 rent roll indicates there is 24,116 vacant sf at the property. Per Borrower, 2250 sf of vacant space has been leased to Pediatric Neurology group for a base rent of $22.00 per square foot on a five year term. An LOI has been sent to an Opthomolgist looking to rent 9000 square feet on the third floor at a base rent of $24.00 per foot with ten-year term. Bwr further stated that there has been a number of additional showings recently and have several prospects which may result in a lease similar in term and price. Property is marketed/adv with Newmark Associates. The projected NCF DSCR if the spaces remain vacant throughout 2009 is .99. Bank of America will continue to monitor the loan.
|
