| 4A - Occupancy Decline and 4C - Single tenant with a lease > 30% NRA expiring in next 6 months. The loan is secured by a 12,992 retail facility in San Clemente, CA. The property was last inspected on 10/17/08; rated in Good condition. Q1-2009 NCF DSCR is 2.33 with an occupancy of 73%. The occupancy decline is due to Click Ad Works (27% of NRA or 3500 sf) vacating when their lease expired on 09/30/2006. The borrower is actively marketing this space for lease. Parker Commercial is responsible for the marketing and advertising of the space, and their efforts include leasing signs on the building, company website, The Smith Guide, and CoStar. The asking rate is $2.50 per square foot and those rates are in line with the market, according to the Borrower. As of April 2009, there are no prospects for the vacant space. Additionally, the lease rollover applies to Kragen Auto Parts, who occupies 57.93% NRA or 7,486 sf, with a lease that expires on 11/30/2009. Per Borrower, Kragen Auto Parts has exercised their option to renew, and their new lease expiration date is 11/30/2014. Bank of America will continue to monitor the loan.
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