Morningstar Catalog 2010/2011 - (Page 27)

South Plains Mall + 1 866 374 – 8800 global.morningstar.com Property Summary Property Type Location Year Built/Renovated Net Rentable Sq. Ft. (Total) Analyst: Mike Magerman (267-960-60 Analytical Manager: Troy Doll (267-960-60 27 Retail / Regional Mall Lubbock, TX 1972 / 2009 1,166,392 1,022,692 84.0% Fee Morningstar Realpoint Timely structured finance ratings and analysis. 3 3 New issue and surveillance ratings for commercial mortgage-backed securities Transparent, investor-centric approach to ratings and analysis Acquired by Morningstar, Realpoint is a Nationally Recognized Statistical Rating Organization (NRSRO) that specializes in structured finance. It offers timely new issue and surveillance ratings and analysis for commercial mortgage-backed securities (CMBS) that leverage Realpoint’s collateral database of 100,000+ loans and 100,000+ properties. Realpoint rates new issue securities with a bottom-up approach that blends qualitative, quantitative, and legal analysis of the individual loan, loan portfolio, and issuing trust. Results are detailed in a comprehensive pre-sale report featuring a Realpoint letter rating for each class of the transaction, required subordination levels, detailed underwriting of 100% of the assets in the pool, and an in-depth asset summary for every property in the transaction. The Realpoint team also conducts property inspections on approximately 70% of the properties in the transaction based on loan value. On the surveillance side, Realpoint offers one of the industry’s largest databases of commercial mortgage-backed securities, including accurate data for 1,000+ CMBS transactions plus the loans and properties securing them. Its analysts maintain DealView® credit reports for 600+ CMBS transactions, updating them every month with quantitative and qualitative analysis of the loan, as well as property and tenant performance. They also forecast loan-level losses and their potential impact on both the bond cash flows and ratings for the transaction. These frequent updates help clients track a security’s performance consistently over time—avoiding sudden, unpredicted downgrades. Access current research and ratings reports global.morningstar.com/Realpoint Net Rentable Sq. Ft. (Collateral) Physical Occupancy Ownership Loan Summary Loan Amt Loan Term (mths) I/O Period (mths) Amortization Term (mths) Interest Rate $77,700,000 60 0 360 4.616% Realpoint Analysis DSCR Amortizing DSCR Beginning LTV Ending LTV Cap Rate Net Operating Income Net Cash Flow Value Debt Yield Property Score 2.28 2.28 69.9% 64.0% 9.80% $11,924,545 $10,900,362 $111,228,188 3 (Average) 14.0% Detailed Loan/Property Analysis Realpoint Summary Realpoint Underwriting Description of Property REALPOINT 2007 20 Income $ $ Gross Potential Texas, and the12,636,223 $ South Plains Mall is the only regional mall in the Lubbock metro area in northwest Rent only one within a -100-mile Base Rent $ $ 9,876,901 Lubbo radius of the area. Lubbock is roughly midway between Albuquerque and Dallas. The mall is on the southwest side of $ 9,85 $ 7,147,674 $ Expense Reimbursement and sits just inside, or to the northeast of the State Route 289 Loop that circles Lubbock. The nearest regional7,249,329 in Amar mall is $ 8,03 $ 698,679 $ 1,284,790 $ 1,08 Percentage Rent 120 miles to the north. The mall was completed in 1972 and renovated several times, most(1) $ 791,123 $ 1,060,682 $ 1,16 Temporary/Specialty Tenants recently in 2009. A $1.82 million Other Income $ 353,695 food 344,960 space 39 three-phase renovation is currently underway and scheduled for completion in 2013. This will create more $ court $ a add more seating by removing four suites and shortening seven others. Total retail space for South Plains $Mall is 1.16 $ million Less: Vacancy Loss $ (2,510,729) $ (44,446) vacant since 68,734 $ Less: occupied of which 1.02 million sf is the collateral. The 82,000-sf anchor space once Credit Loss by Mervyn's has been $ Wachovia Bank(7C November 2008. The Mervyn's space may be released from the collateral without Income Effective Gross prepayment, subject to certain conditions, a $ 19,072,219 $ 19,885,396 $ 20,45 (WBC06C28) produces no income and adds no incremental value to the property. Expenses Real Estate Taxes (2) $ 2,845,105 $ 2,551,673 $ Wachovia Bank Commercial Mortgag (WBC06C28) $ 140,010 13 Property entrance Only the Sears space of 143,700 sf is self-owned, and Sears has had its mallInsurance (3) closed since136,848 to Macerich's $ Re prior $ The top $ 1,648,974 1,834,973 acquisition of the property. The borrower has agreed to fund a reserveUtilities three tenants (Freeborn & Peters$ LLP, Duff & Phelps account at closing in the amount of $3,255,564 $ 1,99 for $ 931,927 $ 1,044,854 $ Repairs and Maintenance GLA and none have a lease expiration prior to June 2018. 1,03 In g required repairs. The bulk of the repairs are for the roof of the mall space, to be completed within two years of closing, $ and th $ $ Janitorial No more than 10% of the leases expire in any given year up to REALPOINT ANALYST ROLE COMPANY $ 572,167 $ 366,058 $ 37 Management Fees roof of the anchor space, to be completed within four years. The roof repairs are estimated to cost a total of $2.4 million, with Wachovia Ban $ Servicer $ -$81,000 fo $ Payroll & Benefits Primary | Edward Dittmer | million. Other required repairs include $110,451 for facades and Master 25% excess added to the reserve for a total of $3267-960-6043 $ $ $ Common Area Maintenance CWCapital Ass pavement and parking. Edward.Dittmer@realpoint.com Special Servicer $ $ 78,939 145,740 $ 15 Advertising & Marketing 3,05 Backup | Mark Williams | 267-960-6027 Mark.Williams@realpoint.com Line-Item Underwriting Professional Fees Other Expenses $ 733,115 $ 760,001 $ General & Administrative Specially Serviced / Watchlist / 80 H $ $ $ Non-Reimbursable Expenses $ 136,280 $ 127,127 $ Trustee $ 64,318 $ 58,794 Fargo Ba 7 Wells $ $ Ground Rent New issue ratings and th Plains Mall Pre-sale reports include Page 1 Summary Adjustment of a $ -RBS- CF $201-0-M$B1 a rating for each class $ Sou analysis. TYPE: Market Expense DEAL Fusion CUTOFF DATE: Total Operating Expenses $ 7,147,674 $ 7,029,230 CMBS transaction, plus a summary of and detailed underwriting forNet Operatingof the assets. 11,924,545 $ 12,856,166 CURRENT BALANCE: $3,541,533,589 100% Income CUTOFF BALANCE: $ % OF DEAL BALANCE 9 $ 10 $ CURRENT # OF LOANS: CURRENT DSCR: CURRENT LTV: 208 1.23 69.98 SNAPSHOT 25 24 92 40 55 41 0 32 62 54 93 Servicer Watchlist 18.45% CURRENT MONTH Total Delinquency Total Special Servicing DSCRs above 1.25 DSCRs above 1.50 DSCRs below 1.10 DSCRs below 1.00 Defeasance Partial Term I/O Loans Full Term I/O Loans Servicer Watchlist Realpoint Watchlist # OF LOANS $630,884,725 17.81 % PROPERTY NAME Montclair $623,235,726 Plaza(2) % 17.60 Net BALANCECash FlowDEAL % OF Specially ServicedRISK LOANS Wachovia Bank Loans HIGH $ 10,900,362 LOSS $39,507,001 $66,496,725 VALUE HRL-1 RP Capital Items Realpoint Watchlist 38.57% $1,366,120,743 Leasing Commissions $ 341,187 CUTOFF DSCR: High Risk Loans Tenant Improvements 30.01% $1,062,948,601380,140 $ Capital Reserves/Expenditures $ CUTOFF LTV: 302,857 Extra. Capital Expenditures $ Total Capital Items $ 1,024,183 CUTOFF # OF LOANS: $ $ $ $ $ $653,589,744 20 38.57 640,003 30.01 $ 1. 113,076 $ 916,321 $ 70 $ 1,669,400 $ $ $ 18.45 $3 (WBC06C28) $ 11,186,766 CUR BAL $1,826,232,855 TX 51.57 % Dallas, HRL-3 The top three tenants $29,700,000 $15,678,388 (Freeborn & Peters LLP, Duff & Phelps Carefree Alexander $412,242,958 and 11.64 % GLA none have Total a lease expiration prior to June 2018. In $14,1 135 Crossways Park Drive(5) $14,100,000 $14,890,160 No more 25.02 10% of the leases expire in any given year up than % $886,129,012 Carefree Pueblo $10,800,000 Four Seasons Resort and Club HRL-2 $157,000,000 $190,0 $127,000,000 $183,0 Valuation 0.00 %Commons(5)(7) and Loss Estimate $0 Inverness $13,8 T for Loans19.47 % Retailo&tal Forecasted Losses of Concern Office Marketplace $13,8 $689,585,936 Center(5) Forecasted Losses from SS Loans age 6 SouBlack lMountain all th P ains M Market Place(3) P $13,3 $1,771,939,480 50.03 % (5) Value Deficiency from non-SS Loans 69.000 Carefree Sandhill MF LAS VEGAS Nevada $11,4 $653,589,744 18.45 % Expected Losses fromVEGAS Nevada 72.000 Carefree Eastern MF LAS non-SS Loans $11,3 Summary % Inn - Norman, OK HT $1,366,120,743 38.57 79.000 Residence Oklahoma $9,9 Historical Losses NORMAN 84.000 92.000 Spring Valley Club Apartments % OF DEAL MF BALANCE PANAMA CITY Florida Nevada California Florida North Carolina Nevada Gateway Mountain Village RT Ontario Realpoint Watchlist C) 38.57% $1,366,120,743 (Building 94.000 Hampton Inn and Suites - Port HT PORT SAINT High Risk Loans Lucie, FL 30.01% $1,062,948,601 LUCIE Saint Grinnell Water Works Building OF CHARLOTTE 101.000 93.000 Desert Servicer Watchlist Inn Pecos Center 18.45% RT $653,589,744 LAS VEGAS $647,380,577 Center 18.28 % Gateway LOSS SUMMARY $5,600,000 $12,391,969 $14,644,534 $23,6 $16,0 Specially Serviced / Watchlist / H $8,9 $8,1 18. Opinion $8,1 38. $7,5 30. 108.000 Carefree Winterhaven LAS VEGAS $6,8 Realpoint's outlooks remain unchanged across all classes this month. MF Our outlook on classes 120.000 210 due to forecasted losses and interest shortfalls. of Concern Analysis total losses of $277.6 mil have Specially North Charter Apartments(5) MF MADISON Wisconsin $4,6 Serviced Loans Loans We Wadsworth forecasted OF LITTLETON Colorado $4,2 141.000 Medical Office of classes G through Q and significantly reduce credit support for AM through F. We also note Building(5) CU RP BA 171.000 WEST $3,0 PROPERTY NAME by interest shortfalls with questionable prospects for Sutherland Retail(5) VALUE RT LOSS JORDAN Utah recovery. 192.000 Plaza(2) Eastgate II Business Center $157,000,000 Montclair OF SAINT CLOUD Minnesota $39,507,001 New York Florida - $7,1 $190 $2,3 Dallas, We also maintain our outlook of ‘perform’ on198.000 TX Shoppesthrough APB.$15,678,388 classes A1 at Spring Valley CLERMONT $29,700,000 RT Carefree Alexander Although we are forecasting a decrease in credit support for these classes, Totals 135 Crossways Park Drive(5) $14,100,000 $14,890,160 we believe that they remain relatively insulated from losses and shortfalls . Carefree Pueblo $10,800,000 $14,644,534 Gateway Center $5,600,000 $12,391,969 201.000 225 Crossways $127,000,000 Four Seasons Resort and Club Park Drive WOODBURY IN $66,496,725 $183 $1,9 $1,8 $623,2 $14 $23 $16 Clear Performance Ratings Marketplace Retail & $13 Top 5 of the pool).Office Overall, there are 24 specially-serviced loans (18%Non Specially Serviced High Risk loss Realpoint has forecasted Loa Center(5) $13 PROSPECTUS Black Mountain Market Our largest loss is from the Four Seasons Resort and Club NAME Place(3) CITY was transferred PR t (5) LOAN - Dallas loan that ID TY STATE 69.000 Carefree Sandhill MF LAS VEGAS Nevada The borrower requested a loan but an agreement $11 RLJ Hotel Pool(1)(3) Various Ho Surveillance ratings and analysis. Updatedforeclosed onmodification,®72.000 the parties could not2010 andVEGAS Various and monthly, DealView 6.000 Carefree Easternin April reach LAS the servicer co reports include MF Nevada $11 mezzanine lender the sponsor's equity interest 79.000 Residence Inn - Norman, OK HT NORMAN Oklahoma $9 June 2010. all loans January 2010 appraisal, we are forecasting a property valuations and loss estimates for Based on a of concern in the CMBS transaction.loss of up to $70 million 84.000 Spring Valley Club Apartments MF PANAMA CITY Florida 92.000 Desert Inn Pecos Center RT LAS VEGAS Nevada Inverness Commons(5)(7) $13 $8 93.000 Gateway Mountain Adult RT Ontario California $8 We also have a significant loss forecasted on the five CarefreeVillage Living Portfolio loans. In (Building C) 94.000 Hampton Inn and Suites - Port $7 portfolio were transferred to the special servicer. The borrower agreedHT carry SAINT service on to PORT debt Florida Saint Lucie, FL LUCIE Grinnell transferred OF CHARLOTTE North $7 101.000 master servicer. In February 2010, these two loans wereWater Works Building back to the special servic Carolina 108.000 MF LAS VEGAS $6 the borrower might offer a proposal for a discounted Carefree Winterhaven five of these loans. Nevada rece payoff for all We 120.000 210 North Charter Apartments(5) MF MADISON Wisconsin $4 forecasting a cumulative loss of $49.7 million. 141.000 Wadsworth Medical Office OF LITTLETON Colorado $8 $4 http://global.morningstar.com http://global.morningstar.com/Realpoint

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Morningstar Catalog 2010/2011
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Morningstar Catalog 2010/2011

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