babcock & brown's troubles down under hit the u.s. b · babcock & brown's...

In this week's issue:

Babcock & Brown's Troubles Down Under Hit the U.S. () Debt Restructuring Complete, Thomas Properties Group Now Faces Other Challenges in Texas (Page 4) Large LA Developer/Owner Files for Bankruptcy Protection (Page 5) New York Landlord's Portfolio Goes Into Special Servicing (Page 7) CMBS Investments Taking a Toll on JER Investors Trust (Page 8) John Hancock Tower Auctions at Half Price for $660.6 Mil. (Page 8) Bad Bank Watch: Big Lodging Lender in Washington Taking Big Residential Hits (Page 9) Liquidators Win Bid for Gottschalks 58-Store Chain (Page 10) Navistar To Buy Monaco Coach's RV Business (Page 12) Avigen To Liquidate (Page 12) Lease Cancellations (Page 12) 7,500 Leaving GM through Buyouts (Page 13) National Layoffs (Page 14) Local Closures & Layoffs (Page 15) Loan Maturity Leads (Page 17) Watch List of Distressed Properties and Loans of Concern (Page 17)

Babcock & Brown's Troubles Down Under Hit the U.S. abcock and Brown Ltd., a Sydney, Australia-based investment firm that owns/controls at least 100 U.S. apartment complexes with more than 20,000 units, was placed in voluntary administration this month, an action

similar to U.S. bankruptcy protection. The investment giant is facing a number of challenges including high financial leverage, aggressive growth and a complex corporate structure and is now paying the consequence of declining investment values and fee income, constrained access to capital markets, heightened refinancing risk and greater risk of financial covenant breaches, according to Moody's Investors Services. The Babcock & Brown action has also resulted in Standard & Poor's Ratings Services placing the ratings of four commercial mortgage-backed securities on CreditWatch with negative implications. The CMBS deals that could be impacted are Credit Suisse Commercial Mortgage Trust's Series 2006-C2, 2006-C3, 2006-C4 and 2006-C5. Standard & Poor's preliminary analysis of the Babcock & Brown's loans indicates an average valuation decline in the properties of 32% since 2006. The Babcock & Brown loans consist of 64 multifamily properties totaling 18,812 units. The properties are located throughout the U.S. with concentrations in Texas (58.9% of all units), Virginia (10.1%), South Carolina (9.4%) and Georgia (6.1%). The remaining properties are located in Nevada, Florida, Alabama, Missouri, North Carolina and Maryland.

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Published by CoStar Group, Inc.

Mark Heschmeyer, Editor March 29 – April 4, 2009

mailto:[email protected]

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CoStar Group, Inc. (March 29 – April , 2009) Copyright © 2009 CoStar Realty Information, Inc. All rights reserved.

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According to the respective special servicers, the loans were transferred to special servicing due to imminent default

as a result of the borrower's current financial situation and indicated inability to address deferred maintenance issues

at subject properties.

Property condition reports have been received by the special servicer for properties securing the Babcock & Brown

FX2 portfolio, part of the CSMC 2006-C2 transaction and preliminary inspections have been performed for the

properties securing the other three portfolio loans. These reports and inspections indicate that deferred maintenance

issues exist at the collateral properties.

Details of each transaction and its Babcock & Brown-related loans are as follows.

Credit Suisse Commercial Mortgage Trust 2006-C2. The Babcock & Brown FX1 loan ($157.4 million) in this

transaction is secured by 13 multifamily properties containing 4,990 units.

The loan was transferred to the special servicer, Centerline Servicing Inc., on March 18. According to the master

servicer, most of the properties in Texas have deferred maintenance issues and unresolved damage caused by

Hurricane Ike. For the year ended Dec. 31, 2007, Standard & Poor's calculated debt service coverage of 1.03x.

Replacement reserves for the portfolio total approximately $104,000.


transaction is secured by 17 multifamily properties containing 5,145 units. The loan was transferred to the special

servicer, Midland Loan Services Inc. on Feb. 4. For the year ended Dec. 31, the debt service was 1.16x. According

to Midland, there is a reserve totaling approximately $922,000 that was established with the insurance proceeds

collected as a result of the flood damage that occurred at the Windsor Harbor property.



servicer, LNR Partners Inc. on Feb. 5. For the year ended Dec. 31, the debt service coverage was 1.14x.

Replacement reserves for the portfolio total approximately $155,000.



servicer, LNR on Feb. 9. For the year ended Dec. 31, the debt service coverage was 1.19x. Replacement reserves for

the portfolio total approximately $425,000.

Babcock & Brown has appointed David Lombe and Simon Cathro of Deloitte Touche Tohmatsu as voluntary

administrators. The two held their first meeting with creditors this week seeking input. Australian laws require a

second mandatory meeting be held within 20 days, but Deloitte is likely to seek an extension

Last fall, Babcock & Brown said its days of living on the high levels of liquidity in the capital markets left it with a

too high level of debt.

"Over the last few years in particular, Babcock & Brown has been very successful at achieving substantial growth

based on the high levels of liquidity in the capital markets. This has led to the group being too highly leveraged and

not sufficiently focused," said Michael Larkin, the new managing director and CEO of Babcock & Brown.

Larkin took on that role in September after the firm booted Phil Green, the former holder of the position, to a non-

executive board post.

Babcock & Brown intends to refocus on its origination and asset management businesses, including infrastructure,

real estate and operating leasing. But in reducing its "risk profile," the company said it could dispose of some assets

and reduce the level of its investment activities.

In December Babcock & Brown said it would manage its real estate assets until it was successful in selling them off.

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3 In addition to its U.S. apartments Babcock & Brown manages 22 shopping malls in 11 states totaling more than 15 million square feet, through Gregory Greenfield & Associates, a company it acquired in August 2007. Eight of the malls are owned in a joint venture with Oxford Properties, under which Babcock holds a 51% ownership interest. Babcock & Brown's U.S. multifamily portfolio includes the following properties. Alabama

Indian Hills Apartments Florida

Forest Creek Apartments Foxcroft Apartments San Marin Apartments Georgia

Brookhaven Townhomes Hidden Oaks Apartments Lake of the Woods Apartments Northcrest Apartments Oakdale Villas P innacle West Apartments Wellston Ridge Maryland

Holly Tree Missouri

Knollwood I and II North Carolina

Abbington Place Allerton Place Autumn Ridge Barrington Place Bridges at Chapel Hill Bridges at Mallard Creek Bridges at Quail Hollow Bridges at Southpoint Bridges at Wind River Brookford Place Carriage Club Chason Ridge Laurel Springs Madison Hall Marina Shores Waterfront Oakbrook At Park Meadow Oak Hollow Paces Commons

Paces Village Park at Clearwater Apartments Pepperstone Salem Ridge Savannah Place Summerlyn Place The Fairington The Hamptons At Southpark The Villages of Chapel Hill Waterford Place Windsor Harbor Woods Edge Nevada

Majestic Heights Apartments Sonterra Apartments Toscana Villas South Carolina

Bridges at Pelham Canterbury Apartments Country Walk Crossroads Apartments Hampton Forest Apartments Paces Watch Peachtree Place Ravenwood Hills Rutland Ridge St. Andrews Apartments The Park Apartments Waverly Place Apartments Texas

Ashton Park Audubon Park Apartments Braeburn Colony Cambridge Court Apartments Cambridge Place Cedarbrook Chesapeake Apartments

Commerce Park Copper Cove Apartments Crossings at Irving Crystal Bay Apartments Driscoll Place Apartments Falls On Clearwood Foxboro Apartment Homes Glen Arbor Hilltop Apartments Holly Ridge Apartments Hunters Chase Apartments Park on Rosemeade Pecan Crossing Apartments Preston Valley Apartments Remington Oaks Apartments Sandridge Apartments Savoy Manor Shadow Creek Somerset I & II Southpoint Apartments Sterling Point The Broadmoor Apartments The Pinnacle Apartments Westchase Ranch Resort Westwood Village Apartments Wolf Creek Apartments Virginia

Latitudes Marina Shores Apartments River Road Terrace Apartments Rollingwood Apartments Seven Gables The Timbers Timbercreek Apartments Twin Rivers

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4 Debt Restructuring Complete, Thomas Properties Group Now Faces

Other Challenges in Texas homas Properties Group reached an agreement with its other partners in its Austin office portfolio partnership, including Lehman Brothers and California State Teachers' Retirement System, that restructures and

recapitalizes the financing on the partnership's 3.5 million-square-foot, 10-property portfolio. Now it just faces the start of a recession in Texas. Under this arrangement, Los Angeles-based Thomas Properties Group and its partners agreed to restructure a $292.5 million credit facility by replacing the unfunded $100 million commitment with $60 million of new senior secured priority financing contributed by the partners. Proceeds from this new financing are being used to deleverage the portfolio by acquiring at a discount and immediately retiring third-party term loan debt with an $80 million face value and to provide an ongoing source of capital for leasing and capital improvements. The Austin debt restructure was approved by the Lehman Brothers Bankruptcy Court judge this week. The approval of this financing also resolved the motion filed in the Lehman bankruptcy proceedings by Thomas Properties Group in November 2008. Since early January, TPG-Austin has withheld the interest payments due on its term loan as a partial offset for damages caused by Lehman's failure to fund the credit facility as scheduled this year. Lehman Brothers continues to retain a 50% ownership interest in the Austin portfolio while Thomas Properties Group, indirectly through its joint venture with the California State Teachers' Retirement System, holds a 6.25% interest. While the restructuring involves outstanding funding issues, Moody's Investors Service still downgraded the ratings of TPG-Austin Portfolio Holdings LLC's senior secured credit facility to C, from Caa2. Moody's also downgraded TPG-Austin's corporate family rating to Caa3 from Caa2. Moody's downgrade reflects the default on term loan interest due since early January, even though this default was resolved as part of the new financing agreement and the repurchase and retirement of $80 million of debt for a deep discount, which Moody's views as tantamount to a distressed exchange offer. Moody's downgrade also reflects the substantial change in terms of the credit facility, including a suspension of covenants until 2012, stricter conditions on advances and accrual and capitalization of interest due. Even though TPG-Austin's debt doesn't begin maturing until 2012, Moody's said it expects the partnership to have difficulty meeting its obligations at this time. Moody's also expects that TPG-Austin's portfolio, which was 89% leased as of the fourth quarter, will face operating challenges in the upcoming year. Given that five of the 10 assets are located in the northwestern suburbs, which are experiencing an influx of new supply amidst deteriorating economic conditions, maintaining portfolio net operating income will be challenging, Moody's said.

The Recession Arrives in Texas

Through much of 2008, the Texas economy continued to expand while the nation fell into recession. Growth in the energy and high-tech sectors and rising home prices were key factors in making Texas' economy one of the nation's strongest. But in the last few months, Texas is getting a taste of what the rest of the country has been experiencing.

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5 The state's economic conditions have been deteriorating rapidly due to sharp declines in: energy prices, high-tech activity and exports, and expanding housing problems, according to a new report from the Federal Reserve Bank of Dallas. According to the Federal Reserve, Texas has been in a recession since the start of the year and "was probably on the brink weeks or months before then," according to report authors Keith R. Phillips and Jesus Cañas. Phillips is a senior research economist and advisor in the San Antonio Branch and Cañas is an associate economist based in the El Paso Branch. In the housing market, inventories, foreclosures and delinquencies all rose last year—but less in Texas than in the nation. Key to the divergence was home prices. They declined nationally but continued to rise in Texas on a year-over-year basis through the third quarter, according to the Federal Housing Finance Agency's measure of resold homes. However, these price gains narrowed throughout the year, fading to 0.45% from the second to third quarter. More broadly, the state's housing markets weakened, with new home construction falling sharply last year. The authors said housing prices are likely to dip slightly in 2009. Texas' job growth of 0.4% in 2008 was greater than the U.S. decline of 1.9% and ranked eighth in the nation. However, the employment picture worsened toward the end of the year and declined 0.7% in the second half of the year. As job growth weakened, the Texas unemployment rate rose sharply from 4.4% in June to 6% in December. This compares with the U.S. rate's increase from 5.6% to 6.8%. The bulk of Thomas Properties Group's assets are in Texas where it has ownership interest in and manages 15 office properties. And even though it only has 6.25% interest in 10 of its 11 Austin assets, the properties generate substantial fees and income for the company. Thomas Properties Group reported in its fourth quarter results last month that leasing activity in Texas slowed in the fourth quarter as tenants were "taking a wait-and-see attitude." The company said it was seeing an increase for shorter term renewals and more tenants "shopping," for space as their leases neared expiration. In the Northwest suburbs of Austin, Thomas Properties Group reported that overall occupancy was about 78% down from 82% in the third quarter. The increase was due primarily to new spec office space and sublease space coming onto the market. There was negative absorption of about 218,000 feet. Thomas Properties Group's portfolio in that submarket was 83% occupied. The worst performer in the group is Westech 360, which consists of four three-story buildings at 8911 Capital of Texas Highway in Austin. Thomas Properties Group reported Westech 360 is currently 55% occupied. It is quoting rents at $18 triple net with 50 cent annual increases.

Large LA Developer/Owner Files for Bankruptcy Protection eruelo Maddux Properties, one of Los Angeles' largest owners of commercial properties, and numerous of its subsidiaries filed for relief under Chapter 11 in an effort to restructure its debt.

The company has been experiencing significant, recurring cash shortfalls. "The company worked with diligence to avoid a reorganization filing," said Richard Meruelo, chairman and CEO of Meruelo Maddux. "Despite our best efforts and careful consideration of all other alternatives, the filing became necessary given the challenging economic climate. Now, our goal is to implement a comprehensive reorganization and continue to seek additional outside financing which we believe will allow us to move forward."

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6 Excluded from the filing is the company's 35-story 717 W. Ninth Street residential tower project currently under construction. Meruelo Maddux recorded a net loss in the fourth quarter of $85.8 million. This result was derived in large part from the decision to take $117.4 million of non-cash impairment charges in the fourth quarter. The company also stopped making interest and principal payments and therefore was in default on 26 of its 30 loans totaling $266 million. It has been seeking loan workout agreements with four lenders on loans that total approximately $177.8 million. In a report dated March 13, its independent auditors, Ernst & Young LLP, stated that there was substantial doubt about the company's ability to continue because of the recurring losses from operations and a working capital deficiency. Meruelo Maddux develops, redevelops and owns commercial and residential properties in downtown Los Angeles and other densely populated urban areas in California that are undergoing demographic or economic changes. It owns 28 properties totaling 3.7 million square feet. It also has a development pipeline underway that includes seven multifamily projects totaling 995,000 square feet. The company has suspended construction of an additional 12 projects totaling 774,000 square feet.

Meruelo Maddux Projects Square Feet % Leased

Annualized

Rent

Annual

Rent/SF

Commercial Projects 788 S Alameda 33,984 75.0 $1,017,195 $39.91 Washington Cold Storage 59,000 100.0 1,320,000 22.37 500 Mateo Street 12,938 100.0 122,400 9.46 Meruelo Wall Street 98,245 94.9 1,924,044 20.63 Washington at Central 5,479 78.1 52,284 12.22 Southern California Institute of Architects 81,741 100.0 1,212,000 14.83 Washington Produce Market 31,876 79.3 510,285 20.19 905 E 8th Street 28,200 40.4 129,600 11.37 3rd and Omar Street 23,297 29.1 117,360 17.31 1919 Vineburn Ave. 122,345 100.0 506,520 4.14 1500 Griffith Ave. 50,058 100.0 448,217 8.95 4th Street Center 14,472 53.2 98,400 12.79 Seventh Street Produce Market 122,120 60.1 3,307,974 45.07 Alameda Square 1,463,696 60.9 3,613,212 4.05 620 Gladys Ave. 57,354 55.9 332,182 10.37 1000 E. Cesar Chavez 50,373 16.8 58,200 6.86 306 North Avenue 21 80,712 56.9 164,400 3.58 Crown Commerce Center 301,491 93.9 1,877,955 6.64 420 Boyd St. 47,806 61.8 370,529 12.53 230 W. Ave. 26th 67,671 57.2 287,412 7.42 5707 S. Alameda 55,729 55.7 109,977 3.55 Santa Fe Plaza 16,000 0.0 - - Barstow Produce Center 261,750 1.9 24,000 4.80 1211 E. Washington Blvd. 108,000 84.5 447,072 4.90

Residential Projects American Apartments 13,550 97.8 314,377 23.73 Union Lofts 81,609 35.4 854,918 29.62 Southpark Tower - Phase 2 - J Restaurant 11,829 100.0 425,844 37.08 Center Village 176,628 100.0 343,200 4.32 Pomona West 242,042 0.0 Residential Development

Projects

Southpark Towers

Desmond Building Sky Arc Olive Street Towers

Transamerica Lofts 717 W 9th Street Chinatown Towers

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7 Suspended Construction

Projects

Ullman Tower One Ullman Tower Two 2131 Humboldt Street

Meruelo Baldwin Park Pomona East 1828 Oak Street Camfield Retail Center Ceres Street Produce Center

Vignes Village San Fernando Court Musica Latina Building Citrus Gardens Covina Gardens

New York Landlord's Portfolio Goes Into Special Servicing tandard & Poor's Ratings Services placed its ratings on commercial mortgage-backed securities (CMBS) GE Commercial Mortgage Corp. Series 2007-C1 Trust on CreditWatch with negative implications.

The action comes primarily from problems with loans tied to New York landlord Pinnacle Group and its owner Joel Weiner. The loan, called the Manhattan Apartment Portfolio loan ($192.1 million), is secured by 1,083-unit apartment units in 36 apartment buildings on the Upper West Side of Manhattan. Most of the units in the portfolio are subject to rent-stabilization laws and the borrowers had intended to convert rent-stabilized units into market-rent units. The loan was transferred to special servicer LNR Partners Inc. on Feb. 26. Standard & Poor's preliminary analysis of the MAP loan indicates a 48% valuation decline since issuance in 2007. At issuance, Standard & Poor's estimated the borrower would be able to convert 88 units per year to market rents; however, only 14 units have been converted since issuance. Since its October 2008 review the interest reserve has declined 34% to $11.8 million. The master servicer, KeyBank Real Estate Capital, reported debt service coverage of 0.36x for the year-ended ended Dec. 31, 2008, compared with 0.40x for the year ended Dec. 31, 2007. Wiener has ownership and management interests in an estimated 100 buildings totaling approximately 20,000 rental apartment units in the New York City metropolitan area. Currently, New York City landlords cannot increase rental rates on rent stabilized units more than approximately 4% annually until they reach $2,000 per month and the tenant income exceeds $175,000 for two consecutive years. New York state is proposing tenant-friendly changes that could increase the rent trigger to $2,700 and the income trigger to $250,000. This can extend a unit's participation in the rent regulation program up to eight additional years, according to recent analysis by Fitch Ratings. The Manhattan Apartment Portfolio properties in GE 2007-C1 consist of 36 multifamily buildings (1,083 apartment units and two office suites) situated between West 100th and West 161st streets. # of Bldgs # of Units Neighborhood Boundary

21 484 Upper West Side Between West 100th and West 108th streets 4 104 Morningside Heights Between West 113th and West 115th streets 6 311 West Harlem Between West 127th and West 139th streets 2 53 Hamilton Heights Between West 147th and West 148th streets 3 131 Washington Heights Between West 156th and West 161st streets

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8 CMBS Investments Taking a Toll on JER Investors Trust he New York Stock Exchange has permanently suspended JER Investors Trust Inc. from its trading boards for non compliance with the NYSE's continued listing standards requiring that it maintain a 30-day trailing average

global equity market capitalization of at least $15 million. As March 31, JER's common stock is now trading over-the-counter. In light of the suspension, The McLean, VA-based REIT withdrew its proposed public offering of more Class A common stock, from which it had hoped to raise $150 million. It was going to use some of that money to repurchase all of its outstanding trust preferred securities with a liquidation value of $60 million. That also can now no longer occur, which will leave the preferred securities still outstanding. In an effort to preserve cash, JER Investors Trust said it is discontinuing its regular quarterly dividend and will replace it with an annual dividend so that it can continue to satisfy its REIT distribution requirements. When it does make its required distribution, the company said it may elect to pay up to 90% of such dividends in stock instead of cash. As of Dec. 31, JER had total assets of approximately $435 million and a cash balance of $9.5 million. CMBS investments represented $223 million in fair value or 51% of the total assets. During the fourth quarter, it recorded unrealized losses of $118 million on its CDO-related CMBS and a $33 million impairment charge on its non-CDO-related CMBS. Delinquent loans within those CMBS deals have been escalating rapidly for JER. The company said they doubled in the fourth quarter and that it expects losses within its CMBS holdings to accelerate in 2009. Loans in special servicing in its portfolio have grown from $304 million at the end of September 2008 to $713 million at year end and $982 million at the end of February. The special servicing portfolio is most heavily weighted toward retail as 37%. Multifamily is second with 35%. And the company said it expects to see the percentage of hotel delinquencies increase.

John Hancock Tower Auctions at Half Price for $660.6 Mil.

he iconic John Hancock Tower, Boston’s tallest building, sold at auction for $660.6 million Tuesday -- about half the price paid by Broadway Partners in 2006 -- to a pair of its creditors, Normandy Real Estate Partners and

Five Mile Capital Partners. Normandy and Five Mile Capital Partners were reportedly the only bidders at the brief all-cash foreclosure auction in New York. The sale of the 62-story with 1.75 million of rentable building space reflects a cap rate of about 6.06%, according to CoStar COMPS data. The building at 200 Clarendon St. was reportedly 84.5% occupied. The tower was the centerpiece in a December 2006 transaction in which Broadway Partners purchased 10 buildings from Boston-based Beacon Capital Partners LLC for $3.3 billion. Broadway, which paid $1.3 billion for the tower, defaulted on a portion of the debt earlier this year. Since last June, the investment partnership of Morristown, NJ-based Normandy and Five Mile Capital Partners, based in Stamford, CN, has been acquiring, at discount prices, pieces of the mezzanine loan secured by the equity interests in the portfolio owned by Broadway. The 50% haircut on this transaction is a wakeup call to those who hoped the sale and workout of distressed assets might help commercial real estate prices find a reasonable floor. Making aggressive assumptions that rents and

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By: Randyll Drummer

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9 occupancies would continue to rise, investors paid hugely inflated prices for trophy office buildings and other assets over the few years, reasoning that they could flip or refinance the buildings at a higher price. But frozen capital markets and a foundering economy pummeled by rising unemployment have made it difficult to service debt. With billions in maturing mortgage debt coming due, many owners are falling into default and foreclosure. Normandy and Five Mile also acquired the 36-story 10 Universal City Plaza in Burbank, CA -- home to NBC Universal and Vivendi SA-owned Universal Music Group -- for $304.8 million at auction, including $10.1 million cash and the assumption of $294.75 million in mortgage debt. In a statement, Normandy and Five Mile described the buildings as "among the top properties in their respective markets." "Both companies are well capitalized with strong balance sheets and are committed to investing in these properties and owning them over the long-term." For more information on this transaction, please see CoStar COMPS #1677445.

Bad Bank Watch: Big Lodging Lender in Washington

Taking Big Residential Hits t's bad enough for a bank with a little more than $1 billion in assets to report a year-end 2008 loss of $35.8 million; it's worse when the loss turns out to be more than that because of deteriorating real estate markets.

That's the situation City Bank of Lynnwood, WA, found itself in this month. The bank had to up its total loss for 2008 to $60.8 million after new lower appraisals came in on its real estate portfolio as it prepared its annual report. What's worse, the annual report that came out this week, now calls into question City Bank's ability to continue as a going concern. "This has been a difficult process for us to go through, but we believe the new appraisals reflect the significant decline in the number of monthly home sales in King, Snohomish and Pierce counties since June 2008 levels," said Conrad Hanson, president and CEO. "As such, there has been a measurable decline in the value of comparable residential real estate sales in our local market the last few months. Our real estate collateral for impaired loans has been valued at distressed market levels, less estimated selling costs, and discounted to present value for the estimated holding period, based on these new appraisals and the selling prices we have been able to achieve and that we have seen in March 2009." The declining valuations of the housing market, including building lots, resulted in an increase in the annual loan loss provision to $119.1 million from the original reported amount of $91.1 million and reduction in the carrying value of foreclosed real estate to $100 million from the original reported amount of $114.9 million. City Bank is also a big lender in the hotel/motel arena in Washington. Loans in the hotel/motel industry totaled $174.1 million or 16.36% of its total portfolio. To date, though, it has not had to write off any of those loans. Still, the bank's nonperforming commercial real estate loan portfolio is growing from $1.9 million in 2007 to $6.9 million at the end of 2008. The biggest chunk of its nonperforming loans, however, was residential construction projects. That amount increased from $12.6 million in 2007 to $203.9 million last year. In the category of repossessed assets, the bank took back more than $110 million in residential development projects in 2008 and nonresidential properties totaling $4.2 million.

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10 The bank is aggressively pursuing efforts to dispose of its troubled properties and loans. Since the beginning of January, more than 245 properties representing more than $65 million have been sold and more than 175 sales totaling $54 million are pending for closing this month and next. City Bank said it expects that the Federal Deposit Insurance Corp. will take administrative action in the near future. The action is expected to include constraints on the payment of dividends, actions to improve asset quality and liquidity, and to address cited deficiencies in the bank's lending operations. In that regard, the bank has also been instructed that it may not renew or accept new brokered deposits without receiving preapproval from the FDIC, which is problematic since as of Dec. 31, more than half of the bank's deposits were in the form brokered deposits. City Bank has significantly curtailed its lending activities to situations that will facilitate prompt sales or other reductions of nonperforming assets, and modest amounts relating to commercial lending and individuals deemed to be of a low risk. City Bank owns its head office at 14807 Hwy 99. It has seven branches in addition to the head office and owns the buildings and land occupied by four of them: the N. Seattle office, another in Lynnwood Office and one in Mill Creek and Everett. The bank leases the premises occupied by the Shoreline Office in Shoreline and the North Creek Office in Bothell. Additionally, an office in Puyallup, Washington and an office in Vancouver, Washington are leased and occupied by its mortgage loan department. The bank owns the building housing the Mukilteo office at 11832 Mukilteo Speedway, Mukilteo. The land is leased from Conrad Hanson. The net book value of the bank's premises and equipment was $5.1 million.

Liquidators Win Bid for Gottschalks 58-Store Chain By: Sasha M Pardy

egional department store retailer, Gottschalks, announced the results of its completed court-supervised bankruptcy auction. Despite receiving a last-minute bid from Shandong Commercial Group General Corp, a

retail conglomerate of the Chinese government that proposed to keep the retailer's store open, Gottschalks agreed to fully liquidate the chain. The winning group, which includes SB Capital Group, LLC, Tiger Capital Group, LLC, Great American Group, LLC and Hudson Capital Partners, LLC, plan to sell off all merchandise, furniture, fixtures, and equipment, at all of the company's 58 retail stores and distribution center. Jim Famalette, Gottschalks chairman and CEO, stated, "Despite all our efforts, we were unable to reach an agreement with our creditors, lenders and bidders to structure a going concern bid by the Court-imposed deadline. Regrettably, liquidation is now the only path for our Company. We are deeply disappointed with this outcome and the impact it will have on our employees, customers, business partners and the communities we have served for 105-years." Gottschalk's stores are located in California (38), Washington (7), Alaska (5), Oregon (5), Nevada (1) and Idaho (2). According to CoStar Tenant, the Gottschalks stores being closed range from 25,600 to 198,343 square feet and average 82,274 square feet each, which means a liquidation could amount to approximately 4.8 million square feet of big box retail space going dark. In addition, the retailer occupies a 420,000-square-foot warehouse space in Madera, CA and an 89,000-square-foot office headquarters space in Fresno, CA.

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11 Gottschalks Locations

Building Name Address City State Sq Ft Occupied

Office / Warehouse Space 2900 Airport Dr Madera CA 420,000 Gottschalks Headquarters 7 River Park Pl E Fresno CA 89,000 Northway Mall 3101 Penland Pky Anchorage AK 60,700 Dimond Shopping Center 800 E Dimond Blvd Anchorage AK 59,572 Shopper's Forum 1255 Airport Way Fairbanks AK 80,000 Mendenhall Mall 9105 Mendenhall Loop Rd Juneau AK 70,000 44402 Sterling Highway Soldotna AK unknown Somersville Towne Center 2500-2638 Somersville Rd Antioch CA 80,000 Auburn Town Center 342-350 Elm Ave Auburn CA 70,000 Valley Plaza Mall 2801 Ming Ave Bakersfield CA 94,102 East Hills Marketplace 3200 Mall View Rd Bakersfield CA 79,026 Gottschalks 1825 41st Ave Capitola CA 96,000 Chico Mall 1962 E 20th St Chico CA 81,500 1200 E Shaw Ave Clovis CA 99,539 University Mall 875 Russell Blvd, #2 Davis CA 34,000 Laguna 99 Shopping Center 8455 Elk Grove Blvd Elk Grove CA 70,000 Bayshore Mall 3300 Broadway St Eureka CA 78,770

Manchester Center

3502-150 N. Blackstone Ave. / 1901 E Shields Ave Fresno CA 151,313

Fashion Fair 755 E Shaw Ave Fresno CA 163,500 7890 N Blackstone Ave Fresno CA 106,640 Hanford Mall 1673 W Lacey Blvd Hanford CA 83,500 Hemet Valley Mall 2200 W Florida Ave Hemet CA 50,000 Indio Fashion Mall 82225 Hwy 111 Indio CA 60,000 Merced Marketplace 1400 W Olive Ave Merced CA 70,000 Raley's / Gottschalks Bldg 2401 E Orangeburg Ave Modesto CA 87,848 Vintage Faire Mall 3401 Dale Rd, Ste 200 Modesto CA 51,506 Old Mill Village 40041 Highway 49 Oakhurst CA 25,600

Palm Springs Mall (Phase I)

155 S. Farrell Drive/ 2365 E Tahquitz Canyon Way Palm Springs CA 68,100

Gottschalks 1123 W. Avenue P. Palmdale CA 104,924 Hilltop Shopping Center 1643 Hilltop Dr Redding CA unknown Redlands Mall 200 W Redlands Blvd Redlands CA 109,628 Riverside Plaza 3635 Riverside Plaza Riverside CA unknown Country Club Plaza Mall 2300 Watt Ave Sacramento CA 198,343 300 Inland Center Dr San Bernardino CA 102,000 San Luis Obispo Promenade 313 Madonna Rd San Luis Obispo CA 108,000 100 Town Ctr E Santa Maria CA 95,000 Coddingtown Mall 900 Coddingtown Ctr Santa Rosa CA 154,915 The Junction 13777 Mono Way Sonora CA 55,552 Sherwood Mall 5354 Pacific Ave Stockton CA 79,026 West Valley Mall 3400 N Naglee Rd Tracy CA 99,611 Mall Of Victor Valley 14580 Bear Valley Rd Victorville CA 70,000 Visalia Mall 2211 S Mooney Blvd Visalia CA 150,000 407 Main St Watsonville CA 70,000 County Fair Mall 1268 E Gibson Rd Woodland CA 55,300 Yuba Sutter Mall 905 Colusa Ave Yuba City CA 73,084 Lewiston Center Mall 1720 19th Ave Lewiston ID 38,650 760 Yellowstone Ave. Pocatello ID unknown Carson Mall 1443 S Carson St Carson City NV 70,000 Heritage Mall 1875 14th Avenue SE Albany OR 47,330 Gottschalk 61284 S Highway 97 Bend OR 70,000 Valley River Center 600 Valley River Ctr Eugene OR 185,902 Grants Pass Shopping Center 1101 NE D St Grants Pass OR 45,000 1851 Avalon Way Klamath Falls OR unknown 5811 Main Street SW Lakewood WA unknown 205 Marysville Mall Marysville WA unknown Penn Plaza 813 N Stratford Rd Moses Lake WA 40,303 200 W 1st St Port Angeles WA 34,900

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12 E. 802 29th Avenue Spokane WA unknown Valley Mall 2533 Main St Union Gap WA 50,831 1631 W Rose St, #4 Walla Walla WA 34,203 Data in this spreadsheet was obtained from the list of locations provided on Gottschalks website as of 3/31/09, as well as CoStar Tenant

records.

Navistar To Buy Monaco Coach's RV Business onaco Coach Corp. in Coburg, OR, signed a non-binding letter of intent to sell most of its recreational vehicle manufacturing business to Navistar Inc. A definitive asset purchase agreement could be worked out early in

April. The deal would be contingent upon the completion of due diligence and bankruptcy court approval. Monaco has manufacturing facilities in Oregon and Indiana and offers a variety of RVs, from entry-level priced towables to custom-made luxury models under the Monaco, Holiday Rambler, Safari, Beaver, McKenzie and R-Vision brand names. "If we are able to reach agreement, the purchase of certain Monaco assets would fit our strategy of leveraging our assets to expand our diesel business, serve the end customer and would also complement our Workhorse custom chassis business," said Jack Allen, president of Navistar's North American truck group. "Any asset purchase would fall within our current capital expenditure program for fiscal 2009." Monaco continues to work with other interested parties regarding the acquisition of its Motorhome Resorts segment and other assets held for sale.

Avigen To Liquidate vigen Inc., a biopharmaceutical company based in Alameda, CA, has discontinued strategic merger discussions and intends to develop a plan of liquidation.

As such, the company has let go the majority of its employees including its CEO and president, and its chief business officer and general counsel. Taking over the liquidation is Andrew Sauter, the company's CFO, who now is acting CEO and president. Avigen leases its 67,000-square-foot laboratory and office space at 1301 Harbor Bay Parkway in Alameda under a 10-year lease that is scheduled to expire in November 2010. It has sublease agreements covering 31,100 square feet, or 46%, of the building to three separate corporate tenants not affiliated with Avigen. Each sublease agreement runs concurrent with the duration of the underlying master lease term.

Lease Cancellations Atlanta-based Charys Holding Co. and its affiliate Crochet & Borel Services Inc. filed for Chapter 11 on Feb. 14. Crochet & Borel has developed a niche within the disaster recovery industry of servicing governmental agencies, municipalities and school districts from Florida to Texas, and clients that depend on assistance through insurance and the Federal Emergency Management. Qimonda AG, a memory chip manufacturer based in Munich, Germany and with U.S. operations based in Raleigh, NC, filed for insolvency in Germany in late January and Chapter 11 protection in the U.S. in early February. The company employees about 2,800 people in Richmond, VA. Since its insolvency filing, it has drastically cut costs, by concentrating on its competitive Buried Wordline Technology and has also begun searching for a buyer. Insolvency hearings in Munich begin this week, which could likely lead to a restructuring of the company.

M

A

Watch List


13 Sportsman's Warehouse an outdoor sporting goods retailer based in Midvale, UT, filed for Chapter 11 this month and is seeking to cancel leases on a number of closed stores and distribution centers or unopened stores. In addition, the company is looking to liquidate 23 stores and has an agreement to sell 15 stores to UFA Co-op. In total, the company is letting go of 38 of its 67 store-fleet, which will leave it with 29 stores. Company Leased Address City State Landlord

Charys Holding Company

Inc.

1117 Perimeter Center West, Suite N415

Atlanta GA CRP Holding V, LP

Charys Holding Co.

(Crochet & Borel Services

Inc.)

346 Twin City Highway Port Neches TX B&C Enterprises Ltd.

Qimonda North America

Corp.

8203 Willow Place South, Suite 200

Houston TX Willow Chase Houston Ltd.

Sportsman's Warehouse Inc. 723 Hebron Parkway Lewisville TX Inland Southwest Management, LLC Sportsman's Warehouse Inc. 13277 W. McDowell Road Goodyear AZ Solano Corp. Sportsman's Warehouse Inc. 8203 State Highway 151 Suite

104 San Antonio TX DDR DB 151 Ventures LP

Sportsman's Warehouse Inc. 840 W. Paradise Drive West Bend WI Lokre Development West Bend Managing

Sportsman's Warehouse Inc. 3223 Fairlane Drive Allen Park MI DBSl Fairlane Green Leaseco LLC Sportsman's Warehouse Inc. 14601 Valley Center Drive Victorville CA GRH Kaysville LLC Sportsman's Warehouse Inc. Intersection: Canyon Road and

114th Avenue Beaverton OR Boise Spectrum, Gene & Doreen LLC,

MRH Venture Capitol LLC Sportsman's Warehouse Inc. 2180 Northwoods Blvd. North

Charleston SC GRH Glennwood LLC, MRH Venture

Capitol LLC Sportsman's Warehouse Inc. Intersection: East Park Avenue

& Martin Luther King Jr. Highway

Chico CA GRH Glennwood LLC, MRH Venture Capitol LLC

7,500 Leaving GM through Buyouts ost in the news this week that GM CEO Rick Wagoner stepped down at the request of the O'Bama administration, was that General Motors Corp. also announced that 7,500 of its UAW-represented employees

decided to take advantage of the company’s buyout program. Most of the employees participating in the program are leaving the company this week. Here is a breakdown by location.

Location of Buyouts

Total

Participating

GM Manufacturing

Assembly

Janesville 624 Orion 386 Fairfax 336 Springhill Manufacturing 308 Lansing Delta Township 241 Lansing Grand River 232 Wilmington 225 Flint Assembly 210 Shreveport Assembly 195 Lordstown Assembly 179 Pontiac Assembly 170 Arlington 162 Fort Wayne Assembly 158 Detroit/Hamtramck 142 Wentzville 128 Bowling Green 68 Doraville 55 Oklahoma City 10

Linden 5 Baltimore 4 Lansing Craft Center 2 GM Manufacturing

Stamping

Grand Rapids Metal Fabricating 596 Pontiac 213 Mansfield 191 Parma Pressed Metal 75 Lordstown Fabrication 68 Flint Metal Fabricating 63 Indianapolis 44 Marion 28 Pittsburgh 15 MFD - Flint Tool & Die 3 GM Powertrain

Willow Run 579 Flint North 258 Warren 155 Romulus 146 Tonawanda Engine 128

L

Saginaw - Metal Casting 110 Toledo 89 Bedford 77 Defiance 76 Flint South 55 Livonia 46 Bay City 43 Baltimore 26 Massena 20 Fredericksburg 17 Saginaw - Malleable Iron 13 Manual Trans. of Muncie LLC 4 Indianapolis 1 GM Technical Staffs

Warren 166 Milford 36 GM Service and Parts

Operations

Pontiac 64 Flint 45 Philadelphia (Ben Salem) 29 Chicago (Broadview) 26 Los Angeles 26 Drayton Plains 25 Fort Worth 19 Jacksonville 18

Willow Run 17 Martinsburg 15 Reno 15 SPO Columbus ACD 14 Denver 13 SPO ACD Memphis TN 10 Lansing 9 Boston (Westwood) 8 SPO Jackson MS 8 Hudson 7 Cincinnati 6 SPO Charlotte NC 6 SPO ACD Fontana 6 Wayne-Nat. Return Center 4 Portland (Beaverton) 1 Delphi Automotive Systems

Syracuse (closed) 1 Saginaw (closed) 1 Trenton (closed) 1 GM Manufacturing

Engineering

Grand Blanc 53 Tarrytown (closed) 1 Livonia (closed) 1 Danville (closed) 1

National Layoffs IBM Corp. plans to lay off about 5,000 U.S. employees. The cuts will come from the services division and workers were to be informed last week. 334 workers in Research Triangle Park, NC, were among those notified. The cuts will affect about 4% of IBM's U.S.-based work force, which totaled 115,000 at the end of 2008. Earlier this year, IBM cut thousands of U.S. jobs in sales, software and hardware. Johnson Controls Inc. plans to initiate a restructuring that will result in workforce reductions and closure of 10 manufacturing plants. The company would not identify the 10 plants slated for closure. However, it is likely to include plants in Europe and Japan, as well as the United States. Key Technology Inc. in Walla Walla, WA, plans to cut 7% of its global workforce. The initiatives also include cancellation of fiscal year cash and stock incentive awards, temporary reductions in pay for all U.S. personnel, suspension of 401(k) matching and mandatory leave. Summer Infant Inc. in Woonsocket, RI, has implemented debt reduction and cost saving initiatives. For starters, it has entered into a sale-leaseback transaction related to its corporate headquarters. Under the terms of the transaction, the Company sold its facility to Faith Realty, a company owned by Jason Macari, CEO and chairman of Summer Infant, for $4.05 million and subsequently entered into an agreement to lease the facility under a 7-year term. The company will be leasing back the building for approximately the same amount it currently pays in principal and interest payments each month on its real estate loan. Other activities include a workforce reduction of approximately 10%, which is being phased in over the next few months and plans to consolidate certain warehousing activities, which will be executed in the fourth quarter of this year.

Watch List


15 Local Closures & Layoffs

Company Address City State

Closure or

Layoff

Number

Affected

Impact

Date

Pilgrim's Pride 1902 S West Ave. El Dorado AR closure 1,000 4/27/2009

Stanford Financial Group

500 President Clinton Ave., 2nd Floor Little Rock AR potential closure 8 3/6/2009

The Hershey Co.

2300 W San Bernardino Ave. Redlands CA closure 90 immediately


580 California St., 13th Floor San Francisco CA potential closure 38 3/6/2009

Eastman Kodak Lithoplate Drive Windsor CO closure unknown 12/31/2009


1055 Thomas Jefferson St. N.W., 4th Floor Washington DC potential closure 36 3/6/2009

Nobility Homes 6432 SE 115th Lane Belleview FL shutdown unknown immediately


5200 Town Center Circle, 6th Floor Boca Raton FL potential closure 46 3/6/2009


1150 Lee Wagener Blvd., Suite 202 Fort Lauderdale FL potential closure 6 3/6/2009


444 Gulf of Mexico Drive, 1st Floor Longboat Key FL potential closure 14 3/6/2009


201 S. Biscayne Blvd., 21st & 26th Floors Miami FL potential closure 95 3/6/2009

Stanford Financial Group 11 S. Bumby Ave. Orlando FL potential closure 7 3/6/2009 Stanford Financial Group 582 Beachland Blvd. Vero Beach FL potential closure 6 3/6/2009


3424 Peachtree Road NE, 7th Floor Atlanta GA potential closure 30 3/6/2009

Pilgrim's Pride 113 Mcneil Drive Douglas GA closure 1,000 4/27/2009 Rheem Manufacturing

Corp.

138 Roberson Mill Road NE Milledgeville GA closure 1,200 5/3/2009

Micron Technology 8000 S. Federal Way Boise ID layoff 2,000 12/31/2009 Borders 830 N. Michigan Ave. Chicago IL closure unknown 1/1/2010 Northfield Laboratories

Inc

1200 N Business Center Drive, Suite 200 Mt. Prospect IL layoff 13 immediately

BorgWarner Inc. 5401 W. Kilgore Ave. Muncie IN closure unknown 4/24/2009 Century Aluminum of

Kentucky 1627 State Route 271 Hawesville KY layoff 120 immediately


18159 E. Petroleum Drive, 445 North Blvd. 8th Floor Baton Rouge LA potential closure 38 3/6/2009

Pilgrim's Pride 6648 Highway 15 Farmerville LA closure 1,000 4/27/2009 Stanford Financial Group 24 Federal St., 11th Floor Boston MA potential closure 13 3/6/2009


2800 Quarry Lake Drive, First Floor Baltimore MD potential closure 9 3/6/2009

Rowe International /

Merit Entertainment 1500 Union Ave. SE Grand Rapids MI closure unknown 12/31/2009 Sparton Corp. 2400 E Ganson St. Jackson MI closure 206 6/30/2009 Lloyd Belt Automotive

Group

2007 Business Hwy 54 South Eldon MO closure 75 immediately

Paul Mueller Co. 1600 W. Phelps St. Springfield MO layoff 172 immediately


1400 Meadowbrook Road, 1st Floor Jackson MS potential closure 15 3/6/2009

Stanford Financial Group 110 E. Main St., Suite A Tupelo MS potential closure 17 3/6/2009 Stanford Financial Group Asheville NC potential closure 11 3/6/2009 Caraustar Industries 2426 Chamberlain Ave. Charlotte NC closure 111 immediately


4725 Piedmont Row Drive, 8th Floor Charlotte NC potential closure 35 3/6/2009


800 Green Valley Road, 5th Floor Greensboro NC potential closure 20 3/6/2009

Coachmen Industries (All

American Homes) 2015 Highway 221 S Rutherfordton NC closure unknown 5/10/2009 Tekni-Plex Inc.

(Burlington Resins) Beverly Road Burlington NJ closure 53 5/6/2009

Watch List


16 Stanford Financial Group

330 Madison Ave., 36th Floor New York NY potential closure 75 3/6/2009

A. LoPresti & Sons

East 40th Street and Woodland Avenue Cleveland OH closure 72 immediately

People's Bank 103 Main St. Lower Salem OH closure unknown 6/30/2009 People's Bank 43 Salem St. Rutland OH closure unknown 6/30/2009 Momentive Performance

Materials 4901 Campbell Road Willoughby OH layoff 80 5/4/2009 Weyerhaeuser Co. Wright City OK closure 307 immediately

HiRel

2350 NE Griffin Oaks, Suite 1500 Hillsboro OR layoff 55 4/17/2009

Simon Candy Co. 31 N. Spruce St. Elizabethtown PA closure 24 4/26/2009 Stanford Financial Group 6075 Poplar Ave., 3rd Floor Memphis TN potential closure 50 3/6/2009 Windsor Forestry Tools 6004 Windsor Drive Milan TN closure 100 5/1/2009


3100 West End Ave., 11th Floor Nashville TN potential closure 10 3/6/2009

Owens-Corning 1701 Hollywood Road Amarillo TX layoff 245 5/3/2009

Applied Materials Inc.

9700 US Hwy 290 East, 8701 Dessau Road, 10000 Spectrum Drive, 4117 Commercial Center Drive Austin TX layoff 50 5/12/2009


5001 Plaza On The Lake, 1st Floor Austin TX potential closure 16 3/6/2009

STMicroelectronics Inc. 1310 Electronics Drive Carrollton TX layoff 55 5/10/2009


300 Crescent Court, 5th Floor Dallas TX potential closure 28 3/6/2009

Trussway, Ltd. 7001 Enterprise Ave. Fort Worth TX layoff 131 5/5/2009 East Texas Precast

Company 44855 Old Houston Hwy Hempstead TX layoff 70 4/30/2009 Stanford Financial Group 5050 and 5051 Westheimer Houston TX potential closure 297 3/6/2009 Watson & Chalin

Manufacturing 725 E University Drive Mckinney TX layoff 21 5/4/2009 Flint Hills Resources, LP 2505 S. Grandview Odessa TX closure 46 4/1/2009 Sportsman's Warehouse

Inc. 3202 S. I H 35, Suite 500 Round Rock TX closure 45 5/11/2009 Sportsman's Warehouse

Inc. - San Antonio 1911 N. Loop. 1604 E San Antonio TX closure 47 5/11/2009 MeadWestvaco Corp. Louisa VA closure 278 5/19/2009


1750 Tysons Blvd., Suite 1500 McLean VA potential closure 9 3/6/2009

Belden Midlothian VA closure 45 7/1/2009 Stanford Financial Group 901 E. Byrd St., 5th Floor Richmond VA potential closure 14 3/6/2009 Stanley Furniture Co. 1401 Fairystone Park Hwy Stanleytown VA layoff 100 4/25/2009 Commercial Vehicle

Group 6211 NE Campus Drive Vancouver WA closure 71 6/30/2009 APB Induction 21905 Gateway Road Brookfield WI layoff 31 immediately Plymouth Tube Co. 2056 Young St. East Troy WI layoff 17 5/15/2009 Bourns 3200 Palmer Drive Janesville WI closure 140 immediately Koenig & Vits Inc. 2015 Mirro Drive Manitowoc WI layoff 86 5/18/2009 Columbia Forest Products 606 Wilderness Drive Mellen WI layoff 75 5/11/2009 LDS Test and

Measurement 8551 Research Way Middleton WI layoff 51 5/20/2009

LaCausa 2745 S. 13th St. Milwaukee WI contract

cancelled 87 5/15/2009 Liberty Mutual 11800 West Park Place Milwaukee WI closure 40 5/5/2009 US Bank 777 E. Wisconsin Ave. Milwaukee WI closure 33 5/29/2009

Wausau Homes

10805 Hwy. Business 51 South Rothschild WI layoff 79 immediately

WH Transportation

10805 Hwy. Business 51 South Rothschild WI layoff 49 immediately

The Toro Co. 200 Sime Ave. Tomah WI layoff 235 4/20/2009 Engineering Industries 407 S. Nine Mound Road Verona WI layoff 40 3/25/2009 Central States Mortgage 10425 W. North Ave. Wauwatosa WI closure 107 immediately Chesapeake Energy Corp. 414 Summers St. Charleston WV layoff 215 6/30/2009

Watch List


17 Loan Maturities

Property Address

Property

Type

Current

Ending

Scheduled

Balance

Maturity

Date

Note

Rate

Clearlake Pines Apartments II

2600 Clearlake Road #15A, Cocoa, FL Multifamily $732,539 5/1/2009 7.37%

Deerwood Apartments 611 Mt. Homer Road, Eustis, FL Multifamily $717,282 5/1/2009 7.37%

Woodland Apartments I & II

2909 Burroughs Drive #7, Orlando, FL Multifamily $2,869,125 5/1/2009 7.37%

Sky Pines Apartments 4990 North Lane # 902, Orlando, FL Multifamily $1,892,401 5/1/2009 7.37%

Elmwood Apartments II

5111 Elmhurst Road #3, West Palm Beach, FL Multifamily $1,098,806 5/1/2009 7.37%

Brandywyne Apartments East

418 19th Street, SE, Winter Haven, FL Multifamily $488,361 5/1/2009 7.37%

Pine Knoll Apartments of Clayton

County 7393 Tara Road, Jonesboro, GA Multifamily $1,001,141 5/1/2009 7.37%

King's Colony Apartments

1425 King George Blvd., Savannah, GA Multifamily $1,709,265 5/1/2009 7.37%

Sunnyside Apartments 909 West 20th Street, Tifton, GA Multifamily $1,092,710 5/1/2009 7.37% Cedarwood Apartments I & II 1306 Cedarbrook Drive, Goshen, IN Multifamily $1,587,176 5/1/2009 7.37%

Cherry Glen Apartments I & II

2752 Cherry Glen Way, Indianapolis, IN Multifamily $2,604,596 5/1/2009 7.37%

Sherbrook Apartments

8026 McFarland Court, Indianapolis, IN Multifamily $1,372,500 5/1/2009 7.37%

Elmtree Park Apartments

11023 Elmtree Park Dr, Indianapolis, IN Multifamily $1,220,904 5/1/2009 7.37%

Fashion Bug/ Wonder Bread 2605 East Main Street, Plainfield, IN Retail $862,811 7/1/2009 8.40% Real Property Services Office

Building

818 W. Brooks Avenue, North Las Vegas, NV Office $2,118,960 5/1/2009 7.92%

Woodlands Apartments of

Columbus II

5354 Deerbrook Lane, Columbus, OH Multifamily $1,281,949 5/1/2009 7.37%

Laurel Court Apartments 125 St. Paul Drive, Fremont, OH Multifamily $915,679 5/1/2009 7.37%

Harvest Grove Apartments

5239 Harvestwood Lane, Gahanna, OH Multifamily $1,342,996 5/1/2009 7.37%

Seattle Mini Storage

1100 Poplar Place South, Seattle, WA Self Storage $1,605,295 10/1/2009 8.83%

BofA 2001-1; Master Servicer: Capmark Finance

Watch List of Distressed Properties and Loans of Concern

Property, Address

Property

Type, Size

CMBS: Special

Servicer Comment

LXP-The Dial Corp., 15501 N.

Dial Blvd., Scottsdale, AZ Office, 129,689 JPM 2005-CIBC12; J.E. Robert Co.

Dial Corp. lease expired 12/31/08 and tenant has vacated. The previously reported lease negotiations with Choice appear to have terminated.

Home Center Ontario, SWC

Miliken Avenue & Inland

Empire Blvd, Ontario, CA Retail, 127,992 GCC 2002-C1; LNR Partners

Default is imminent due to a drop in occupancy. The borrower is past due for the November 2008 payment. Counsel has been retained and the lender is moving forward with foreclosure and appointment of receiver. Negotiations with the borrower are ongoing.

Arapahoe Station III, 6860,

6864, 6880 & 6888 S. Clinton,

Greenwood Village, CO Mixed Use, 49,416 GCC 2002-C1; LNR Partners

As of January, the property was 76.32% occupied, in place rents were between $12.72- $18.96 per square foot.

6 Shaw's Cove, 6 Shaw's Cove,

New London, CT Mixed Use, 87,330 JPM 2005-CIBC12; J.E. Robert Co.

Judicial foreclosure is ongoing; depositions in March. Receiver is negotiating parking lease on adjoining parcel to increase available parking.

Sterling Court Townhouses,

112 Autumn Court, Frankfort,

IN Multifamily, 80 GCC 2002-C1; LNR Partners

Rent roll dated 9/30/08 shows a decline in occupancy to 88%, resulting in 11% lower debt service coverage over the same period last year. Repair and maintenance expenses are up due to the increased tenant turnover.

Watch List


18 Park Place Apartments, 1401

E. Bellows St., Mount Pleasant,

MI Multifamily, 169 GCC 2002-C1; LNR Partners

Although occupancy has remained high, rental income has steadily declined due to reductions in rental rates. The borrower has a long history of making timely debt service payments despite historically below breakeven debt service coverage.

Parkwood Plaza Shopping

Center, 13151 W. 10 Mile

Road, Oak Park, MI Retail, 147,178 JPM 2005-CIBC12; J.E. Robert Co. 30 to 60 days delinquent.

101 Kentile Road, 101 Kentile

Road, South Plainfield, NJ Industrial, 575,276 JPM 2005-CIBC12; J.E. Robert Co. 30 to 60 days delinquent.

Hope Hotel & Conference

Center, Building 823 Area A

WP AFB, Dayton, OH Hotel, 266 GCC 2002-C1; LNR Partners

The borrower continues to be in arrears but is making partial payments. It is expected that when a new contract with the Wright Patterson Air Force Base is signed occupancy will improve and payments will be current. The borrower was to send a draft of his new contract with the base and a budget for 2009.

Newmark Buildings IV, VIII,

IX, 3232 Newmark Drive, 8877-

8899 Gander Creek Drive &

8741-8775 Gander Creek Drive,

Miami, OH Office, 156,840 GCC 2002-C1; LNR Partners

The lease for tenant Reed Elsevier Inc. (48,547 square feet) expires this week and the tenant has said it will vacate. The borrower has stated that it does not anticipate issues meeting debt service payments even after the tenant vacates.

Troy Villa Mobile Home Park,

3561 Truman Road,

Perrysburg, OH Mobile Home, 330 GCC 2002-C1; LNR Partners

Completed bidding process for discounted sale of the property; high bidder completed initial due diligence and then withdrew bid offer. Broker is in the process of obtaining updated offers from the runner-up bidders.

Circuit City - Whitehall, 1055

Grape St., Whitehall, PA Retail, 37,766 JPM 2005-CIBC12; J.E. Robert Co.

The borrower has continued to make monthly payments, as Circuit City has not yet closed its doors.

Pipeline Plaza, 1101-1121

Pipeline Road, Hurst, TX Retail, 63,440 GCC 2002-C1; LNR Partners

2008 debt service coverage was 0.44x down slightly. Occupancy as of February 2009 was 53%.

Kings Crossing Town Center,

3-30 N. Main, 4429 Town

Center Place & 2845 W. Town

Center Circle, Kingwood, TX Mixed Use, 48,435 GCC 2002-C1; LNR Partners

Borrower is performing under forbearance agreement whereby P&I is kept current while catching up on escrows from excess cash flow. Borrower is also performing on an additional payment for capitalized legal fees and default interest is paid monthly.

First National Bank Building,

823 E. Main S., Richmond, VA Office, 163,207 GCC 2002-C1; LNR Partners

For nine months ended September 2008, the property reported negative cash flow after debt service of $116,404.

babcock & brown's troubles down under hit the u.s. b · babcock & brown's...

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