| 1E - DSCR < 1.10, 1F - DSCR < 75% UW, 4A - Occ Decline. The loan is secured by a self storage facility in Fort Myers, FL. The property was last inspected on 07/25/08;rated in excellent condition. YE 2008 NCF DSCR is .76 with an occ of 63%; YE 2007 NCF DSCR is .79 with an occupancy of 63%. Decline in NCF is a result of an EGI decline combined with increased operating expenses. Per primary servicer, the property is well located in the market and is well maintained with strong management. The subject\''s cash flow issues are a result of low occupancy arising from the declining housing market in the Fort Myers and Naples area. Management believes that the slowing housing market (move ins-move outs) is the main cause for the decreased occupancy that the market is experiencing. The subject hasn''t suffered as badly as some of its competition due in large part to its visibility and its professional management. Management has attempted to use various advertising programs to reduce vacancy loss, however little improvement has been seen. Plans for improving cash flow include the continuation of targeted advertising and focusing on customer retention while remaining competitive in pricing. While these measures will help mitigate loss, the subject will most likely show no improvement until its customer base returns once the housing market has stabilized. Current asking rates range from $19.95 to $160.00 depending on unit size. Concessions are currently being offered of 1 month free, truck rental credit, $25 Capital Cash, or prepay 12 and get 13th and 14th free. 2008 operating expenses have increased due to higher than normal repairs/maintenance, payroll, advertising, and gen/admin expenses. Per Bwr, plans for reduction of operating expenses during 2008 include the reduction of staffing by one Asst. Mgr. as well as cutting back spending on all nonessential items. Bank of America will continue to monitor the loan.
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