RealPoint CMBS methodology disclosure

!"#$%&'()*#(#$+,) -$#,,", &.)$&&/ !&$" -&0%#(+ Rob Warner, 267-960-6018 [email protected] Steve Jellinek, 267-960-6009 [email protected]

A1, A1A, A2, A3, A4, AJA, AJFL, AJFX, AMA, AMFL, AMFX, B, C, D, E, X1, X2

Perform

F, G, H, J, K, L, M, N, O, P, Q, S Underperform

Master Servicer Capmark Finance Inc Special Servicer Centerline Servicing (formerly ARCap) Trustee WELLS FARGO Tape Date 07/12/2009

&%'('&(In July 2009, we lowered our rating on class F to 'underperform' from 'perform' based on $32 million to $34 million in projected losses on the eight specially-serviced loans, up from $27 million in projected losses last month. We continue to rate classes G through S 'underperform' based on projected losses as well as value deficiencies associated with several underperforming watchlisted loans. Eight loans ($149.5 million, 5.8%) are specially serviced including three loans 90+ day delinquency ($11.1 million, 0.4%), one 60 day delinquency ($5.6 million, 0.2%), two 30 day delinquent loans ($40.4 million, 1.6%), and two loans ($90.6 million, 3.6%) that remain current.

The Realpoint watchlist has 35 loans ($470 million, 18%) including two master serviced 30 day delinquent loans ($7 million, 0.3%). Many of the larger balance watchlisted loans are secured by newer vintage properties and properties undergoing extensive renovations that have depressed the DSCR near or below breakeven. We continue to monitor the tenth largest loan ($40.3 million, 1.6% of pool) secured by the Ashtabula Mall (located 60 miles east of Cleveland). Default risk is moderate based on the low year end 2008 occupancy of 83% (below market average) and the bankruptcy filing in Nov. 2008 by Steve & Barry's (occupied 10% of GLA). Empty anchor space could depress mall traffic and lead to diminished cash flow. Some of the risk is mitigated by the strong sponsor and established reserves at issuance. For the three months ended March 31, 2009, the DSCR declined to 0.73 (NCF of $480,000). Based on the in-place cash flow, there is a potential value deficiency associated with this loan.

The pool contains characteristics consistent with recent issuances we find concerning. There is a large amount of full and partial-term interest-only loans, a large amount of loans with high initial LTVs and a large amount of loans with the ability to incur future debt. About 87% of loans have a term or partial-term IO structure, including 40% full-term. The large amount of interest-only loans is a major hindrance to credit support growth. There is 26% of the pool that had an initial LTV greater than 75% and one loan ($13.9 million, 0.5%) had a total debt LTV over 80%. The large amount of high LTV loans is a concern on its own, however, when it is in concert with a large amount (41%) that have the ability to incur future debt and another 17% of the pool with subordinate debt, the risk is further elevated.

We maintain our rating of ‘perform’ for classes A1 through F based on the stable performance of the underlying collateral and absence of any realized losses to date. Two loans (4.5%) are shadow-rated investment-grade. Overall the pool assets are of decent quality as 64% have DSCRs above 1.25, including 24% above a 1.50.

-123343 On July 21, 2009, S&P upgraded classes A2 and A3. On July 14, 2009, S&P downgraded 25 classes (A-2 through Q). In February 2009, Fitch downgraded classes L, M, and N and affirmed all other rated classes. In October 2008, Fitch affirmed its ratings. The super duper classes A1 to A4 have credit support of 30.10% up slightly from 30.00% at issuance. Subordination for the super senior class AM is 20.06% up slightly from 20.00% at issuance. Class AJ, the junior senior AAA class, has credit support of 12.54%. The remaining investment grade classes (B to K) have credit support ranging from 11.79% to 3.51%. Subordination for the below investment grade classes (L to Q) ranges from 3.14% to 1.13%. The first loss class S has a balance of $29.2 million (1.1% of pool) and is unchanged from issuance.

,56478593 9% of the pool is secured by multiple cross-collateralized and/or cross-defaulted properties. Call protection is strong as 84% of the pool is in lockout and 13% has yield maintenance provisions. No loans mature over the next 24 months.

-:7;4673 The servicers' watchlist has 33 loans totaling $277 million (11%). DSCR < 1.25 for 37% of the pool including 8% below breakeven.

Morgan Stanley Capital I Trust 2007-IQ16 (MSC07I16)

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Page 1 of 19

Retail (36%) is 26% anchored; retail faces increasing pressure due to the declining economy. Hotel concentration (12%) including 10% of pool having full-service amenities. 36 properties (10%) in hurricane prone areas; risk somewhat mitigated as 69% of the properties have windstorm

insurance. Single tenant exposure: 24% of the pool are secured by collateral leased to a tenant occupying more than 50% of

GLA, including 17% leased to tenants occupying 100% of GLA.

-&$$#)"!#$*,.00#!+ DEAL TYPE: Fusion CUTOFF LTV: 68.27 CURRENT DSCR: 1.34

CUTOFF BALANCE: $2,596,864,262 CUTOFF DATE: 11/29/2007 CURRENT LTV: 68.06

CUTOFF # OF LOANS: 234 CURRENT BALANCE: $2,587,357,375 CUTOFF DSCR: 1.30 CURRENT # OF LOANS: 234

Current 226 97.5330 Days 4 1.8360 Days 1 0.2290 Days 0 0.00Foreclosure 3 0.43REO 0 0.00S/S 8 5.78Defeased 0 0.00

< 1.0 23 8.451.00 To 1.10 12 3.641.11 To 1.25 51 24.121.26 To 1.50 90 39.851.51 To 2.00 44 17.39> 2.00 14 6.55unknown 0 0.00Defeased 0 0.00

Servicer 33 $277,521,622 11.00 Realpoint 35 $469,575,878 18.15

STATUS COUNT % OF DEAL DSCR COUNT % OF DEAL WATCHLIST COUNT UPB % OF DEAL

-<66475*%::1*,525<3 The pool includes 234 loans with a balance of $2.59 billion. The deal closed in November 2007. The trust has sustained no losses to date. Office (22%) is 8% suburban, 9% CBD, 5% medical Three master servicers: Capmark, Wells Fargo, NCB (National Consumer Cooperative Bank)

Shadow Rated Loans Fitch rated two loans (4.5%) investment grade at issuance. S&P rated seven loans (4.8%) investment grade at issuance. The low amount of investment grade loans in the pool is consistent with other recently issued transactions.

Additional Debt Six loans (17%) are encumbered by subordinate debt and 34 loans (41%) are permitted to incur future subordinate debt. The table below provides further details regarding large loans with additional debt in place.

Pari Passu Debt

Shadow Rating Loan ID # Type Pool Balance % of Pool Fitch

Easton Town Center 6 RT $110,000,000 4.2% BBB- Ferrell-Duncan Medical Clinic 79 OF $7,659,024 0.3% AAA

$117,659,024 4.5%

Trust Balance Whole Loans Property ID # Current %-Pool LTV Pari Passu B-note C-note UPB LTV

60 Wall Street 2 $125.0 4.8% 10% $800.0 $0.0 $0.0 $925.0 74% Easton Town Center 3 $110.0 4.2% 19% $170.0 $75.0 $50.0 $405.0 70%

USFS Industrial Portfolio 5 $89.8 3.5% 14% $382.6 $0.0 $0.0 $472.4 75% Wyvernwood Garden Apts 6 $86.0 3.3% 46% $0.0 $27.0 $28.0 $141.0 76%

Varsity Apts. 26 $21.8 0.8% 73% $0.0 $1.5 $0.0 $23.3 78% Kmart Portfolio 37 $13.9 0.5% 66% $0.0 $3.5 $0.0 $17.4 83%

Totals $446.4 17.2% $1,352.6 $1,984.0


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Three loans (12.5% of the pool) are part of a split loan, pari passu structure.

Large Tenant Exposure Single tenant exposure is about average for most recently issued fusion transactions. Eighty-four loans (24%) are secured by collateral leased to a tenant occupying more than 50% of GLA, including 94 loans (17%) leased to tenants occupying 100% of GLA.

61 properties (12.5%) leased to single tenants have lease terms that extend beyond the loan maturity date. 12 single tenants (10.4%) are rated 'BBB-' or higher by Standard & Poor's.

The following table shows the ten largest single asset loans with single/large tenant exposure.

Pari Passu Loans Whole Loan Pari Passu

Loan %-Pool Balance Notes Related Pari Passu Notes 60 Wall Street 4.8% $125,000,000 A-2

$285,000,000 A-1 COM07C09 $130,000,000 A-7 CSM07C05 $385,000,000 TBD (9 notes) $925,000,000 Loan Total

Easton Town Center 4.2% $110,000,000 A-2 $170,000,000 A-1 BSC07T28 $125,000,000 B note / C NOTE $405,000,000 Loan Total

USFS Industrial Portfolio 3.5% $89,750,000 A-5 $89,750,000 A-1 COM07C09 $89,750,000 A-2 GCC07G11 $67,710,000 A-4 JPC07C20 $67,710,000 A-3 TBD $67,710,000 A-6 TBD $472,380,000 Loan Total

Total 12.5%

Single / Large Tenant ExposureLoan Property Loan % of Loan % of Lease

ID Property Type Balance Pool Maturity Largest Tenants GLA Expiration 2 60 Wall Street Office $125,000,000 4.8% 7/1/2017 Deutsche Bank 100% 6/5/2022

27 8550 Higuera Street Office $20,170,000 0.8% 8/1/2012 Discus Dental 62% 3/31/2011 29 4645 East Cotton Blvd Office $20,000,000 0.8% 8/8/2017 Schaller Anderson 100% 7/31/2013 32 36 East 14th Street Retail $18,000,000 0.7% 5/1/2017 Bank of America 100% 2/28/2022 33 Northport Industrial Industrial $17,200,000 0.7% 12/1/2017 NorthPort Industrial 100% 8/31/2104 39 13501 Independence Industrial $13,211,942 0.5% 8/7/2017 UPS Worldwide Logistics 100% 7/14/2010 40 Prospect Square Retail $12,900,000 0.5% 11/1/2017 Kroger 59% 2/28/2018 41 Stassney Heights Shop Ctr Retail $12,700,000 0.5% 9/1/2017 Fiesta Mart-grocery (G Lease) 61% 4/30/2025 49 45 Gilpin Avenue Industrial $11,000,000 0.4% 10/1/2017 Samson Technologies 71% 8/31/2016 53 Rampart Village Center Retail $10,108,000 0.4% 9/1/2017 Gold's Gym 57% 7/31/2022 $260,289,942 10.0%


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Retail 85 36.17Office 50 22.26Multi-family 42 15.89Hotel 13 11.60Other 20 7.66Industrial 24 6.42Healthcare 0 0.00Defeased 0 0.00

California 21 11.85New York 27 10.43Tennessee 9 8.99Ohio 15 8.98Florida 18 6.93Various 6 6.46Texas 13 3.95Defeased 0 0.00

National 15 9.04Knoxville, TN 2 8.25Los Angeles, CA 7 6.92New York, NY 11 6.46Columbus, OH 5 5.35Deltona-Daytona Beach-Ormond B 1 3.66

Bangor, ME 1 3.09Defeased 0 0.00

PROPERTY TYPE COUNT % OF DEAL STATE COUNT % OF DEAL MSA COUNT % OF DEAL

)47*$268435*$:273 The top 10 loans account for 37% of the pool balance; the largest loan is 8.1% of the pool. Six large loans (ID #1, 2, 3, 5, 6, 7) totaling 27% of the pool are full term interest-only, which greatly hinders

subordination growth for the pool. Three large loans (6% of pool) have most recent NCF DSCRs < 1.20. Milford Crossing (3%) was underwritten with a 1.05 DSCR; however, we do not consider this loan a concern as it

was recently constructed (2007) and the low DSCR is attributed to lease up costs. Mitigating risk is the property's 97% occupancy. Walmart (37% of NRA) is the largest anchor tenant.

):=*)47*-9262;546>35>;3

1.000 West Town Mall $210,000,000 8.12 KNOXVILLE TN RT 759,943 1998 $2762.000 60 Wall Street $125,000,000 4.83 NEW YORK NY OF 1,625,483 1988 $773.000 Easton Town Center $110,000,000 4.25 Columbus OH RT 1,301,992 2004 $844.000 Hilton Daytona Beach $94,730,000 3.66 DAYTONA BEACH FL HT 744 2005 $127,325

5.000 USFS Industrial Distribution Portfolio Roll-Up $89,754,338 3.47 Various Various MX 9,042,097 Various $10

6.000 Wyvernwood Garden Apartments $86,000,000 3.32 LOS ANGELES CA MF 1,187 2006 $72,452

7.000 Bangor Mall $80,000,000 3.09 BANGOR ME RT 534,919 1997 $1508.000 Milford Crossing $75,500,000 2.92 MILFORD CT RT 379,685 2007 $1999.000 Marriott Columbia $41,300,000 1.60 COLUMBIA SC HT 300 2005 $137,66710.000 Ashtabula Mall $40,300,000 1.56 ASHTABULA OH RT 754,882 1992 $53

PROS ID ASSET NAME

CURRENT BALANCE

% OFPOOL CITY STATE

PROPERTY TYPE

SQ.FT./UNITS

YEARBUILT

LOAN($) /SQFT-UNITS

):=*)47*%46?:6 27;4*

1.000 West Town Mall - 1.40(NCF) 18,930,308(NCF) 12/31/2008 95.53 1.39(NCF) 18,848,246(NCF) 03/31/2009 95.09 1.35(NCF) 4,487,323(NCF)

2.000 60 Wall Street - 1.31(NCF) 71,169,064(NCF) - - - - - - - -

3.000 Easton Town Center - 1.65(NCF) 28,660,796(NCF) - - - - - - - -

4.000 Hilton Daytona Beach - 1.15(NCF) 8,278,467(NCF) 12/31/2008 67.00 1.21(NCF) 7,571,004(NCF) - - - -

5.000USFS Industrial Distribution Portfolio Roll-Up

- 1.60(NCF) 49,030,304(NCF) 12/31/2008 100.00 1.83(NCF) 55,261,226(NCF) - - - -

6.000 Wyvernwood Garden Apartments - 1.23(NCF) 6,471,994(NCF) - - - - - - - -

7.000 Bangor Mall - 1.62(NCF) 8,060,368(NCF) 12/31/2008 95.02 1.55(NCF) 7,748,744(NCF) 03/31/2009 95.03 1.49(NCF) 1,829,543(NCF)

8.000 Milford Crossing - 1.05(NCF) 5,746,706(NCF) 12/31/2008 99.00 1.11(NCF) 5,067,317(NCF) - - - -

9.000 Marriott Columbia - 1.15(NCF) 3,617,885(NCF) 12/31/2008 64.00 0.97(NCF) 2,652,538(NCF) - - - -

10.000 Ashtabula Mall - 1.41(NCF) 4,268,730(NCF) 12/31/2008 73.00 1.04(NCF) 2,731,192(NCF) 03/31/2009 73.00 0.73(NCF) 479,845(NCF)

PROS IDPROPERTY NAME

UWOCC %

UWDSCR

UWNCF/NOI

P1 FSDATE

P1OCC %

P1DSCR

P1NCF/NOI

MR FSDATE

MROCC %

MRDSCR

MRNCF/NOI

):=*)47*$4234*!:11:A46*'7?:6 25>:7

1.000 West Town Mall Belk 159,588 01/31/2013 21.001.000 West Town Mall Regal Cinemas 75,994 11/30/2013 10.003.000 Easton Town Center Gameworks 26,039 06/30/2014 2.007.000 Bangor Mall Sears 101,634 10/31/2008 19.007.000 Bangor Mall J C Penney 90,936 02/28/2009 17.00

PROS IDPROPERTY NAME TENANT NAME

TENANT AREALEASED (SQ.FT.)

TENANT LEASEEXP. DATE % GLA1


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10.000 Ashtabula Mall Steve & Barry's 75,488 01/31/2013 10.0010.000 Ashtabula Mall Dillard's 75,488 02/01/2014 10.00

PROS IDPROPERTY NAME TENANT NAME

TENANT AREALEASED (SQ.FT.)

TENANT LEASEEXP. DATE % GLA1

$4234*!:11:A46*-: 4753Lease rollover risk is low in the near-term for the the ten largest loans.

Lease Rollover Months TOTAL Property ID# Type Maturity Lease Review 1-12 13-24 25-36 37-48 %-NRA

West Town Mall 1 RT 12/1/2017 3/31/2009 3% 3% 2% 13% 20% 60 Wall Street 2 OF 7/1/2017 6/30/2008 0% 0% 0% 0% 0%

Easton Town Center 3 RT 8/8/2017 9/30/2008 4% 5% 2% 9% 20% USFS Industrial 5 MX 8/1/2017 6/30/2008 0% 0% 0% 0% 0%

Bangor Mall 7 RT 10/1/2017 3/31/2009 2% 2% 4% 4% 12% Milford Crossing 8 RT 11/8/2017 12/31/2008 0% 0% 0% 2% 2% Ashtabula Mall 10 RT 9/1/2017 9/30/2008 4% 1% 6% 20% 31%

):=*)47*$:27*-: 47526B* West Town Mall - 1.000

Borrower West Town Mall, LLC Appraised Value $335,000,000 U/W DSCR 1.40 U/W NCF $18,930,308

C/O Balance $210,000,000 Asset Type Retail MR DSCR 1.35 MR FY NCF $4,487,323

Current Balance $210,000,000 No. Prop. 1 MR Occupancy 95.09 U/W Occupancy

Mortgage Rate 6.34 Size 759,943 Prev FY DSCR 1.39 Prev FY NCF $18,848,246

Mortgage Type Fixed Loan/Unit $276.34 Payment Status Current Location Knoxville, TN

The loan is secured by 760,760 sf. of a 1,333,292 sf. regional mall in Knoxville, Tenn. The property was developed in 1972 and renovated in 1985 and 1998. In addition to the collateral for the loan, the property includes three noncollateral anchors, Sears ('BB+'), JC Penney ('BBB-'), and Dillards ('BB'), which total 572,532 sf.

The 10-year, fixed-rate, interest only loan bears interest at 6.338% and matures in December 2017. The property was appraised for $335 million at issuance (LTV of about 63%).

At issuance, the DSCR was 1.40 (NCF of $18.9 million). The in-line collateral was 90% occupied by more than 120 tenants paying a weighted average rent of $41.48/sf. For the trailing 12 months ended September 30, 2007, in-line shop sales averaged $471/sf.

The property benefits from strong sponsorship and experienced management. The sponsors are Simon Property Group Inc. (rated 'A-' by S&P) and Teachers Insurance and Annuity Association (TIAA, 'AAA'). Simon Property Group is structured as a REIT and owns 286 properties in the U.S. (including Puerto Rico), and interests in 59 properties in Europe, Japan, and Mexico. Founded in 1918 and headquartered in New York, TIAA serves approximately 3.2 million retirement participants and one of its core key investment vehicles is real estate investment. As of year-end 2006, TIAA's

Tenants S&P rating SF. % - NRA Base rent / sf. Lease expiration Belk Women NR 162,885 21.4% $8.81 1/31/2013

Belk Men, Home & Kids NR 144,000 18.9% 9/30/2014 Victoria Secret BBB- 15,181 2.0% $40.00 January 2018 Pottery Barn NR 11,135 1.5% $23.00 January 2013

The Gap BB+ 9,020 1.2% $35.00 January 2015 Abercrombie & Fitch NR 8,880 1.2% $23.00 January 2018

American Eagle NR 8,400 1.1% $40.00 January 2018 359,501 45.0%


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real estate account held $14.3 billion of assets under management. The property is managed by an affiliate of the Simon Property Group. The loan is structured with a hard lockbox for cash management.

This loan should be a solid performer based on the strong occupancy and very low initial LTV. Mitigating any future risk is the sophisticated sponsorship and the low lease rollover (no more than 4% of NRA expires in any one year over the next five years).

60 Wall Street - 2.000

Borrower PGREF II 60 Wall Street, LP Appraised Value $1,250,000,000 U/W DSCR 1.31 U/W NCF $71,169,064

C/O Balance $125,000,000 Asset Type Office MR DSCR MR FY NCF

Current Balance $125,000,000 No. Prop. 1 MR Occupancy U/W Occupancy

Mortgage Rate 5.77 Size 1,625,483 Prev FY DSCR Prev FY NCF

Mortgage Type Fixed Loan/Unit $76.90 Payment Status Current Location New York, NY

The second-largest loan is secured by a 47-story class A office building totaling 1,625,483 sf. The property is on the north side of Wall Street (Financial East office submarket of Downtown Manhattan, New York City). The area will be enhanced by the redevelopment of the World Trade Center and proximity to the planned $2 billion transportation hub.

The 10-year interest only loan bears interest at 5.8% and matures in July 2017.

The property was appraised for $1.25 billion at issuance (total debt LTV of about 74%). The whole loan consists of a $125 million pari passu A-2 note contributed to this transaction, a $285 million pari passu A-1 note contributed to the COMM 2007-C9, a $130 million A-7 note contributed to Credit Suisse 2007-C5, and nine other pari passu notes totaling $385 million that will likely be contributed to future transactions.

One concern with this loan is the very high leverage ($569/sf.). Additionally, the limited partners of the borrower are permitted to incur future subordinate mezzanine debt.

The property was built-to-suit in 1988 for J.P. Morgan Bank, which utilized the building as its headquarters until its merger with Chase Manhattan Bank in 2001. The building was sold in September 2001 to Deutsche Bank (rated ‘AA–’ by Fitch), which has occupied its North American headquarters since the date of purchase. As part of a current sale, the property was leased back to Deutsche under a lease agreement for a period of 15 years (expires June 2022) with five, five-year renewal options at fair market rent. The annual net rent payment over the lease term begins at $40/sf., increasing by 10% in year five and in year 10 of the lease term.

Realpoint rates the New York City office market 'very good' with a declining outlook in 2009. Fourth quarter 2008 market vacancy was 8% with average rent of $51/sf. At issuance, the South Ferry financial district submarket consisted of 23 buildings (20.7 million sf of class A office). The submarket had a vacancy rate of 7.3% and average asking rents of $49/sf.

The sponsors of the loan are Paramount Group Inc. (Paramount) and a subsidiary of Morgan Stanley Real Estate Special Situations Fund III L.P. Paramount is a privately owned real estate, acquisition, redevelopment, and management firm with a portfolio that is primarily focused on class A office space. Paramount's portfolio includes more than eight million sf. of office space in Manhattan's Midtown and Downtown Financial districts. The Morgan Stanley Real Estate Special Situations Fund III, L.P. is a global real estate fund dedicated with over $2.24 billion of equity managed. Morgan Stanley Real Estate commenced investing in real estate assets in 1991 and currently has $68 billion in assets under management.

We expect this loan to perform well in the near term. The collateral's strong location, 100% occupancy and sophisticated sponsorship from the Paramount Group should mitigate future risk.


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Easton Town Center - 3.000

Borrower Easton Town Center II, LLC Appraised Value $580,000,000 U/W DSCR 1.65 U/W NCF $28,660,796

C/O Balance $110,000,000 Asset Type Retail MR DSCR MR FY NCF

Current Balance $110,000,000 No. Prop. 1 MR Occupancy U/W Occupancy

Mortgage Rate 6.12 Size 1,301,992 Prev FY DSCR Prev FY NCF

Mortgage Type Fixed Loan/Unit $84.49 Payment Status Current Location Columbus, OH

The loan is secured by 1,301,992 sf. of a 1.7 million sf. lifestyle center (open air retail) in Easton, Ohio (northeastern portion of Columbus, Ohio). The collateral includes 223,506 sf. of office and 1,078,486 sf. of in-line retail space. The property was developed in two phases: the main shopping portion was developed in 1999, and the entertainment/dining component was completed in 2001.

The 10-year interest only loan bears interest at 6.115% and matures in August 2017.

The property was appraised for $580 million at issuance (whole loan LTV of about 70%). The trust balance of the loan is $110 million with a whole-loan balance of $405 million. The whole loan is divided into two pari passu senior pieces: a $110 million A-2 piece included in this transaction and a $170 million A-1 note that was included in Bear Stearns 2007-TOP28. There are also a $75 million subordinate B note and a $50 million subordinate C note that will be held outside of the trust.

The property is shadow anchored by Macy’s (Federated is rated ‘BBB-’ by S&P) and Nordstrom (rated ‘A-’ by S&P), which are not part of the collateral. The property is occupied by a strong mix of national and regional retail tenants, including Barnes & Noble and Crate & Barrel.

At issuance, the property was 93.4% occupied by 18 office tenants paying average rents of $13.67/sf. and more than 200 in-line retail tenants paying average rents of $31.73/sf. For the year ended 2006, in-line shop sales were $585/sf.

The sponsors of the bankruptcy-remote SPE borrower are Limited Brands (rated 'BBB-' by S&P), The Georgetown Co., and Steiner + Associates. Limited Brands is one of the top retailers in the U.S., and operates more than 3,700 stores under the Express, Victoria's Secret, Bath & Body Works, and La Senza (Canada) brand names. The Georgetown Co. is an experienced real estate developer that develops, owns, and manages more than 15 million sf. of office, retail, residential, and recreational space in the U.S. Steiner + Associates specializes in the development and management of malls similar to the Easton Town Center.

Realpoint rates the Columbus retail market 'weak' with a stable outlook in 2009. Fourth quarter 2008 market vacancy was 13% with average rent of $13/sf.

This loan should continue to be a solid performer. The major risk for the loan is the location in a weak market; however, the newer vintage should give this property an advantage over its competition. Mitigating risk is the sophisticated sponsorship and the low lease rollover in the near-term (no more than 7% of NRA expires in any one year over the next three).

Tenants SF. % - NRA Base rent / sf. Lease expires AMC-30 134,000 10.3% $31.00 12/31/2019

Gameworks 37,588 2.9% $22.40 6/30/2014 Crate & Barrel 33,780 2.6% $20.72 1/31/2021

Barnes & Noble 34,991 2.7% $18.77 8/31/2019 240,359 18.5%

$:27*-9262;546>35>;3

0 To 12 0 0.0013 To 24 0 0.0025 To 48 12 8.1649 To 60 0 0.0061 To 120 221 91.71

< 6.5 190 82.516.50 To 7.00 42 17.167.01 To 7.50 1 0.327.51 To 8.00 1 0.018.01 To 8.50 0 0.00

Lockout 219 83.79Defeasance 1 3.47Yield Maint 14 12.74Prepay Penalty 0 0.00Open 0 0.00

LOAN MATURITY COUNT % OF DEAL INTEREST RATE COUNT % OF DEAL CALL PROTECTION COUNT % OF DEAL


JULY 2009

Page 7 of 19

120 To 300 0 0.00> 300 1 0.13unknown 0 0.00

> 8.50 0 0.00unknown 0 0.00

LOAN MATURITY COUNT % OF DEAL INTEREST RATE COUNT % OF DEAL CALL PROTECTION COUNT % OF DEAL

84% of pool remains in lockout and 12.7% are subject to yield maintenance. The first scheduled maturity is June 2012 At issuance, lockboxes were in place for 47 loans (53%) including 40% hard lockbox. Monthly tax escrows were established for 46% of the pool; monthly insurance premium escrows for 35% of the

pool, and monthly capital reserves have been established for 32% of the pool. Three loans (1%) are structured as hyperamortizing loans.

C>35:6>;21*$:3343

The pool has not realized any losses to date.

,%"-'#$$+D,"!E'-"F*G*H#)-C$',)*#,,"),Eight loans ($149.5 million, 5.8%) are specially serviced including three loans 90+ day delinquency ($11.1 million, 0.4%), one 60 day delinquency ($5.6 million, 0.2%), two 30 day delinquent loans ($40.4 million, 1.6%), and two loans ($90.6 million, 3.6%) that remain current. We expect losses totaling $32 million to $34 million on the seven apecially serviced loans.

The servicer's watchlist has 33 loans totaling $277 million (11%). The Realpoint watchlist has 35 loans ($470 million, 18%) including two master serviced 30 day delinquent loans ($7 million, 0.3%).

%6:I4;54J*$:3343

6.000 Wyvernwood Garden Apartments MF LOS

ANGELES CA $86,000,000 3.32 06/08/2012 $86,100,426 $81,287,000 $4,813,426 $81,186,574 6 - 12

13.000 Amalfi Hotel HT CHICAGO IL $37,000,000 1.43 08/08/2012 $37,219,654 $19,000,000 $18,219,654 $18,780,346 6 - 12

A Ohio Port Atrium/Rockwood OF various OH $7,558,748 0.29 10/08/2017 $8,086,158 $5,700,000 $2,386,158 $5,172,590 6 - 12

93.000 Cedar Creek Apartments MF MONTGOMERYAL $6,450,000 0.25 07/01/2017 $6,483,218 $4,100,000 $2,383,218 $4,066,783 6 - 12

99.000 Hampton Inn - Seffner HT Seffner FL $5,627,473 0.22 08/08/2017 $5,708,353 $1,700,000 $4,008,353 $1,619,120 6 - 12

153.000 WAMU Building - Sutphin Boulevard RT JAMAICA NY $3,500,000 0.14 08/08/2017 $3,682,873 $3,400,000 $282,873 $3,217,127 6 - 12

161.000 Papermill Storage MX KNOXVILLE TN $3,360,000 0.13 07/01/2017 $3,378,546 $2,600,000 $778,546 $2,581,454 6 - 12

Totals - - - - - - - - - $32,872,228 $116,623,993 -

PROS ID

PROPERTY NAME

PROP TYPE CITY STATE

CURRENTBALANCE

% OFDEAL

MATURITYDATE

TOTALEXPOSURE VALUE LOSS

PRIN.PREPAY TIMING

,=4;>211B*,46A>;4J*$:273Wyvernwood Garden Apartments Pros ID: 6.000 UPB: $86,000,000 % of Pool: 3.32 $/Size: $72,452Prop. Type: Multi-family Size: 1,187 Total Exposure: $86,100,426 Status: Current Transfer Date: 10/16/2008

City: LOS ANGELES State: California MSA: Los Angeles, CA Value: $81,287,000 Loss: $4,813,426

Current - The loan is secured by a 1,187-unit garden-style multifamily complex in the Boyle Heights neighborhood of Los Angeles (three miles southeast of the central business district of Los Angeles). Built in 1939 and renovated in 1999-2000, 2004, and 2006, the complex contains 153 garden-style apartment buildings. Approximately 659 of the 1,187 units are considered “deeply stabilized” and 456 are “near market,” limiting the possible cash flow growth. However, the property is currently exhibiting 17% annual blended turnover on these below-market units, giving Wyvernwood Gardens significant upside potential for prevailing market rates or redevelopment.

In October 2008, the loan transferred to special servicing due to imminent default. The borrower requested a loan modification and/or forbearance. There is a $2.3 million dollar up-front debt service reserve to cover interest shortfalls for all notes.

January 2009 occupancy was 95%. For the six months ended June 30, 2008, the DSCR was 1.23 (NCF of $3.25 million) with 93% occupancy. For the 12 months ended Dec. 31, 2007, the DSCR was 1.18 (NCF of $6.2 million) with 93% occupancy and an average rental rate of $795/month.


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The five-year, fixed-rate, interest only loan bears interest at 6.05% and matures in June 2012.

The loan has a trust balance of $86 million and a whole-loan balance of $141 million. The whole loan consists of an $86 million A note that will be contributed to this transaction, and a $28 million senior subordinate B note and a $27 million junior subordinate B note, both of which will be held outside of the trust.

The loan sponsor Mark and Ian Sanders started Fifteen Group in 1992 as a full service real estate firm. As of year end 2007, they owned and operated approximately 6,600 apartment units throughout the U.S.

Realpoint rates the Los Angeles apartment 'very good' with a stable outlook for 2009. Fourth quarter 2008 market vacancy was 5% with average rent of $1,620/month.

Update: April 2009 occupancy was 95%. The borrower continues to discuss various workout possibilities.

Loss analysis: Total exposure is $86.1 million. The property was appraised for $185.7 million at issuance (total debt LTV of about 76%). We were unable to locate any recent (2008) sales comparables in the Los Angeles MSA of similar size/vintage therefore we could adjust our assessment of value once a recent appraisal is completed.

By applying an 8% cap rate to the annualized 2008 NCF ($6.5 million), the resulting property value is $81.2 million. We expect a loss of $4.5 million to $5.0 million if this loan were to go delinquent and liquidate.

Amalfi Hotel Pros ID: 13.000 UPB: $37,000,000 % of Pool: 1.43 $/Size: $172,093Prop. Type: Hotel Size: 215 Total Exposure: $37,219,654 Status: 30 Days Transfer Date: 03/27/2009

City: CHICAGO State: Illinois MSA: Chicago, IL Value: $19,000,000 Loss: $18,219,654

30 days delinquent - This loan is secured by a 215 room full service hotel in Chicago. The hotel was built in 2000 and renovated in 2004. The property was appraised for $53.5 million at issuance (LTV of about 69%).

The loan transferred to special servicing in March 2009. The borrower indicated that due to the decline in hotel operations, the cash flow of the property will not be sufficient to pay debt service going forward. The borrower requested that the loan be transferred to the speical servicer so that discussions may commence regarding the loan.

At year end 2008, the DSCR declined to 1.03 (NCF of $2.52 million) with 68% occupancy. At year end 2007, the DSCR was 2.11 with 76% occupancy. At issuance, the DSCR was 1.50.

Loan transferred 3/27/2009 to Special Servicer for imminent default due to significantly declining cash flows at the property level.

Update: March 2009 occupancy was down to 45%. Updated financial information is not yet available but based on the declining occupancy, the servicer expects the DSCR could decline to about 0.50.

The borrower has been placed in default, and the $2 million line of credit was cashed and placed in suspense. A new borrower restructure proposal is expected in July.

Loss analysis: Total exposure is $37 million. Applying a 10% cap rate to a discounted cash flow (discounted 2008 NCF by 25% to account for the increasing vacancy) results in a property value of $19 million. We project losses totaling $18 million upon liquidation. We will adjust our loss forecast once we receive an updated appraisal. The newer vintage of the property and moderate initial LTV could mitigate future risk. Ohio Port Atrium/Rockwood Pros ID: A UPB: $7,558,748 % of Pool: 0.29 $/Size: $83

Prop. Type: Office Size: 90,630 Total Exposure: $8,086,158 Status: Foreclosure Transfer Date: 11/14/2008City: Various State: Ohio MSA: Cleveland, OH Value: $5,700,000 Loss: $2,386,158

90+ days delinquent - The loans transferred to special servicing in November 2008 for imminent default. The borrower notified the master servicer that they were unable to make the November loan payment on a cross-collateralized and cross defaulted property (Rockwood Center Office Building) due to continued high vacancy rates. This property (Atrium of


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Westlake) was transferred to special servicing at the same time as the defaulted asset (Rockwood). The borrower is seeking a loan modification on Rockwood, and is also seeking slight modifications to the Atrium loan (cessation of reserve payments). The borrower did not make the December payment on Atrium, and planned on using the excess cash flow on that property to pay operating expenses on Rockwood.

A foreclosure complaint was filed in April 2009. A hearing for the placement of a receiver was scheduled for May 13, 2009. The borrower recently submitted numerous proposals for consideration (DPO and modification proposals), none of which have been acceptable. The borrower was instructed that the only way to avoid the receiver action is to turn over all of the reported cash flow on the Westlake Atrium property.

History: The borrower stated that the Rockwood property has experienced unforeseen vacancy issues due to the ongoing mortgage crisis. At the time that property was acquired by the borrower, 70% of the tenants were mortgage brokers. November 2008 occupancy dropped to 65% from 96% at issuance. The principal stated that he has recently infused $25,000 into the Rockwood property with a personal loan, and another $35,000 with a personally guaranteed bank loan in an attempt to keep up with the mortgage payments.

Ohio Portfolio - Atrium of Westlake (A) - This loan is secured by a 61,516 sf office complex in Westlake, Ohio. The property was built between 1979 and 1995. March 2009 occupancy was 84%. For the ten months ended Oct. 31, 2008, the DSCR was 0.84. At issuance, the DSCR was 1.24 with 92% occupancy.

Update: The borrower requested a loan modification which does not entail the write down of principal balance. The asset manager agreed to submit the modification proposal to the credit committee in July.

Loss analysis: Total exposure is $5.6 million. A February 2009 appraisal valued the property at $5.9 million. Discounting the appraisal by 20% to account for closing costs and declining property values results in a property value of $4.7 million. The property was appraised for $7.2 million at issuance (total debt LTV of about 76%). By applying an 10% cap rate to the annualized 2008 NCF ($362,000), the resulting property value is $3.6 million. We blended the two valuation approaches to arrive at a value of $4.2 million. We project a loss of $1.0 million to $1.5 million upon liquidation.

Ohio Portfolio - Rockwood Center Office Building (A) - This loan is secured by a 29,114 sf office complex in Independence, Ohio (10 miles south of Cleveland). The property was built between 1987. Year end 2008 occupancy was 63%. For the nine months ended Sept. 30, 2008, the DSCR was 0.16 (NCF of $20,000). At issuance, the DSCR was 1.24 (NCF of $214,000).

Update: The borrower's new DPO proposal for $1.1 million will be submitted in July.

Loss analysis: Total exposure is $2.2 million. A February 2009 appraisal valued the property at $1.65 million. Discounting the appraisal by 10% to account for disposition costs, results in a value of $1.5 million. We expect a loss of $500,000 to $1.0 million upon liquidation. Cedar Creek Apartments Pros ID: 93.000 UPB: $6,450,000 % of Pool: 0.25 $/Size: $50,787

Prop. Type: Multi-family Size: 127 Total Exposure: $6,483,218 Status: Current Transfer Date: 03/10/2009City: MONTGOMERY State: Alabama MSA: Montgomery, AL Value: $4,100,000 Loss: $2,383,218

Current / DSCR below 1.00 / Low Occupancy - The loan is secured by a 127-unit apartment complex in Montgomery, Alabama. The property was built in 1981 and renovated in 2006.

At year end 2008, the DSCR declined to 0.55 (NCF of $224,000) with 83% occupancy. At issuance, the DSCR was 1.15. Many new leases were signed in mid-2008. The borrower confirmed that the market has slowed but this property was performing better than the competition.

This loan transferred to special servicing in March 2009 due to the borrower's notice of imminent default. A court appointed receiver will be sought in the event the borrower does not provide an acceptable solution for correcting the default. Occupancy dropped to 83% in late 2008 and the borrower indicated he can no longer fund the operating shortfall.

Loss analysis: Total exposure is $6.5 million. An April 2009 appraisal valued the property at $4.6 million. Discounting the appraisal by 10% to account for disposition costs results in a property value of $4.1 million. Applying an 9% cap rate to the 2008 NCF results in a property value of $2.5 million. We expect a loss of $2.0 million to $2.5 million based on the recent


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appraisal.

Hampton Inn - Seffner Pros ID: 99.000 UPB: $5,627,473 % of Pool: 0.22 $/Size: $75,033

Prop. Type: Hotel Size: 75 Total Exposure: $5,708,353 Status: 60 Days Transfer Date: 02/13/2009City: Seffner State: Florida MSA: Tampa, FL Value: $1,700,000 Loss: $4,008,353

60 days delinquent - This loan is secured by a 75 room limited service hotel in Seffner, Florida (13 miles east of Tampa). The hotel was built in 2005. The property was appraised for $8.7 million at issuance (LTV of about 65%).

The loan transferred to special servicing in March 2009 due to monetary default (tax escrow shortage). The borrower maintains there are no performance issues with the property. Late payments have resulted from slow receivables.

June 2008 average occupancy was 74%. At year end 2007, the DSCR declined to 1.10 (NCF of $192,000) with 65% occupancy. At issuance, the DSCR was 1.39 with 68% occupancy.

Update: The special servicer notified the borrower of its intent to proceed with foreclosure unless the loan is reinstated. Florida is a judicial foreclosure state.

Loss analysis: Total exposure is $5.7 million. Mitigating future risk is the newer vintage of the property and moderate initial LTV. Applying a 10% cap rate to the discounted cash flow (discounted 2007 NCF by 20%) results in a property value of $1.5 million. A worst case scenario loss of $4.0 million to $4.5 million loss is possible upon liquidation. WAMU Building - Sutphin Boulevard Pros ID: 153.000 UPB: $3,500,000 % of Pool: 0.14 $/Size: $512

Prop. Type: Retail Size: 6,840 Total Exposure: $3,682,873 Status: Foreclosure Transfer Date: 01/14/2009City: JAMAICA State: New York MSA: New York, NY Value: $3,400,000 Loss: $282,873

90+ day delinquency - This loan is secured by a 6,840 sf free standing retail center in Jamaica, NY. The property was built in 1931 and renovated in 2007. Washington Mutual leases 100% of the space with a lease expiring on Oct. 31, 2012. The property was appraised for $5.3 million at issuance (LTV of about 66%).

At year end 2007, the DSCR was 1.27 (NCF of $140,000) with 100% occupancy. At issuance, the DSCR was 1.16 (NCF of $305,000) with 100% occupancy.

The loan transferred to special servicing in January 2009 due to delinquency. In September 2008, WaMu was seized by the FDIC, and subsequently sold to JP Morgan Chase. Shortly after the takeover, the tenant ceased making rent payments, although it continues to operate at the property. The principal stated that the FDIC gave JPM until the end of January 2009 to decide which leases it wanted to dissolve, and in the interim, JPM is not required to pay rent. The borrower is in active talks with JPM to retain this property as a JPM branch, and talks are progressing well. If JPM elects to remain at the property, they could renegotiate the lease to obtain more favorable terms.

There are 800 Washington mutual leases that are expected to be terminated. CMBS exposure is 52 properties totaling $733 million (51 loans in 50 CMBS transactions). This property is not included on the list of expected lease terminations.

The borrower confirmed that this loan utilizes a hard lockbox sweep account with Wells Fargo. Servicer records indicate that this is a soft lockbox account and the borrower is in control of the funds. The funds are swept from the restricted borrower's account by Wells Fargo until a trigger indicates otherwise. The borrower is responsible for submitting their debt service payments directly to the servicer.

Update: In March 2009, a judicial foreclosure complaint was filed with the court. A receiver was appointed in April 2009 but did not take possession of the property until June 2009 due to issues in obtaining liability insurance coverage. The foreclosure action is expected by October / November 2009.

Loss analysis: Total exposure is $3.6 million. A March 2009 appraisal valued the property at $3.8 million. Discounting the appraisal by 10% for disposition costs results in a property value of $3.4 million. We expect a loss of $200,000 to $500,000 based on the recent appraisal.


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We do note a potential reduction in future rental income (renegotiated lease terms). By applying a 9% cap rate to the discounted NCF ($112,000), the property value would be $1.2 million. We continue to monitor this loan and will adjust our assessment of value if a renogotiated leases results in a decline in NCF. Papermill Storage Pros ID: 161.000 UPB: $3,360,000 % of Pool: 0.13 $/Size: $61

Prop. Type: Other Size: 55,365 Total Exposure: $3,378,546 Status: 30 Days Transfer Date: 01/07/2009City: KNOXVILLE State: Tennessee MSA: Knoxville, TN Value: $2,600,000 Loss: $778,546

30 days delinquent - This loan is secured by a 55,365 sf. self storage property in Knoxville, Tenn. The self-storage facility was built in 2004.

For the nine months ended Sept. 30, 2008, the DSCR was 1.07 (NCF of $177,000). At year end 2007, the DSCR was 0.86 with 71% occupancy. At issuance, the DSCR was 1.25 with 90%.

The loan was transferred to special servicing in January 2009 for delinquency. Communication with the borrower indicated that the NSF checks were due to a bookkeeping error.

Update: Appointment of a receiver and a potential foreclosure will be considered if payment is not brought current. Year end 2008 occupancy was 70%.

Loss analysis: Total exposure is $3.4 million. The property was appraised for $4.2 million at issuance (LTV of about 80%). By applying an 9% cap rate to the annualized 2008 NCF ($236,000), we value the property at $2.6 million. A loss of $700,000 to $1.0 million is possible if there loan were to liquidate.

H25;91>35Milford Crossing Pros ID: 8.000 UPB: $75,500,000 % of Pool: 2.92 $/Size: $199Prop. Type: Retail Size: 379,685 City: MILFORD State: Connecticut MSA: New Haven-Milford, CT

Tenant Bankruptcy (Circuit City, 8% of NRA) / Low DSCR - The loan is secured by a 379,685 sf. anchored retail property in Milford, Conn. The property was built in 2006/2007. The property is on Route 1 (one-half mile north of I-95). Transportation by ground includes the metro north railway which runs through New Haven to New York City.

The property was appraised for $100 million at issuance (LTV of about 75.5%). The loan is interest only for six years (first P&I payment is due in December 2013).

For the 12 months ended Dec. 31, 2008, the DSCR was 1.11 (NCF of $5.1 million) with 99% occupancy. At year end 2007, the DSCR was 1.01 with 99% occupancy. At issuance, the DSCR was 1.05 (NCF of $5.7 million) with 99% occupancy.

The property is anchored by Wal-Mart, on a ground lease, and also shadow anchored by a Super Stop & Shop grocery store. Approximately 35% of the base rent is derived from investment-grade tenants. Wal-Mart has invested significant capital in the development of its store, demonstrating its commitment to the location.

The loan benefits from an experienced sponsor and manager. The sponsor, Louis L. Ceruzzi, Jr. who is principal of Ceruzzi Holdings and Starwood Ceruzzi LLC, is an experienced owner and operator who has developed more than eight million sf of commercial space since 1988. The property will be managed by Ceruzzi Properties, Inc., which for the past 20 years has been involved with the management of the majority of the sponsor’s real estate developments.

Update: In January 2009, the nation's second-largest consumer electronics retailer, Circuit City Stores Inc., announced they are going out of business and will liquidate its 567 stores. Circuit City occupies 30,247 sf. (8% of GLA) at this location. The borrower indicated that even without Circuit City, the center still remains cash flow positive. The borrower is

Largest Tenants SF. % - NRA Lease expiration Wal-Mart 142,002 37.4% 3/31/2027

Jo-Ann Stores, Inc. 34,931 9.2% 6/30/2017 Marshalls of MA, Inc. 31,514 8.3% 4/30/2017

208,447 54.9%


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focusing their efforts on leasing the remaining in-line store and have had several recent inquiries. They also have $2 million set aside in the operating budget to be used for costs associated with any development of the two outlying pad sites, if and when they become leased. The project is managed by Ceruzzi Holdings, an experienced management company which has many malls under ownership and management. Ceruzzi also has a 25% stake in the project.

We view this loan as a moderate default risk based on the expected decline in occupancy attributed to the Circuit City store closure. Risk of default mitigated by the newer vintage, strong anchor tenants and experienced sponsorship. Based on the in-place cash flow and limited sales comps, there is a potential value deficiency with this loan. Marriott Columbia Pros ID: 9.000 UPB: $41,300,000 % of Pool: 1.60 $/Size: $137,667Prop. Type: Hotel Size: 300 City: COLUMBIA State: South Carolina MSA: Columbia, SC

Low DSCR - This loan is secured by a 300 room hotel built in 1983 and renovated in 2005 in Columbia, SC. The property is in downtown Columbia (the state capital of South Carolina). The loan is interest only for the first five years.

At issuance, there were five other hotels in the submarket: Courtyard Columbia Downtown at USC (189 rooms), Radisson Columbia Conference Center (238 rooms), Columbia Conference Center (238 rooms), Embassy Suites Columbia Greystone (214 rooms), Clarion Hotel Columbia (163 rooms), and Hampton Inn Columbia Downtown (122 rooms).

For the 12 months ended Dec. 31, 2008, the DSCR was 0.97 (NCF of $2.65 million) with 64% occupancy. At issuance, the DSCR was 1.15.

The property benefits from the experienced sponsorship of General Electric Pension Trust, a wholly owned subsidiary of General Electric Company. GEAM has been investing in real estate since 1953, and has assets of $6 billion under management. Pyramid Advisors is a privately owned, full-service hotel company that provides hotel management services to owners, including project management, asset management, and acquisition services. The company manages 36 hotel properties across 17 states.

The loan is a moderate default risk based on the declining performance and older vintage. Based on the in-place cash flow, there is a potential value deficiency associated with this loan. Ashtabula Mall Pros ID: 10.000 UPB: $40,300,000 % of Pool: 1.56 $/Size: $53

Prop. Type: Retail Size: 754,882 City: ASHTABULA State: Ohio MSA: Ashtabula, OH

Low DSCR / Tenant bankruptcy / Low occupancy - The loan is secured by a 754,882 sf. anchored retail property in Ashtabula, Ohio (60 miles NE of Cleveland). The property was built in 1992. The retail center was appraised for $57.8 million at issuance (LTV of about 70%). The loan is interest only for three years (first P&I payment is due in October 2010).

There is a Wal-Mart Supercenter, Home Depot, and Lowe’s Home Improvement store in close proximity to the property. The nearest comparable mall is 45 miles away.

For the 12 months ended Dec. 31, 2008, the DSCR was 1.04 (NCF of $2.7 million) with 73% occupancy. At issuance, the DSCR was 1.75 (NOI of $4.57 million) with 78% occupancy. The higher vacancy is due largely to the vacating of DIY Home Warehouse (90,711 sf, 12% of NRA). The borrower escrowed upfront $6.0 million for capital improvements and leasing costs.

Realpoint rates the Cleveland retail market as ‘fair’ with a declining outlook for 2009. Fourth quarter 2008 Cleveland retail vacancy was 11.5% and asking rents remain weak at $14.30/sf.

The loan benefits from experienced sponsor and management. The sponsor has approximately $10 million (20% based on the purchase price) of cash equity invested into the property. Carlton P. Cabot has been involved with commercial real

Largest Tenants SF. % - NRA Lease expiration Super Kmart 160,035 21.2% 8/31/2017

Steve & Barry's 76,998 10.2% 1/31/2013 Dillard's 76,243 10.1% 2/1/2014

313,276 41.5%


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estate management for over 17 years. Additionally, the borrower has engaged Jones Lang LaSalle Management Company who is an experienced management company with with a portfolio of over 1.1 billion sf. worldwide (more than 2,000 leasing transactions per year). Jones Lang LaSalle is an industry leader in property and corporate facility management services.

June 2008: In its quarterly report filed with the U.S. Securities and Exchange Commission, Dillard's said its 75,000-sf. clearance center in Jonesboro closed during the quarter ending May 3, 2008. It also said it is closing stores in Kentucky, Virginia, Colorado, Alabama, Idaho, Ohio, Texas and North Carolina, while two stores will close in Tennessee. The company operates 324 locations and seven clearance centers in 29 states.

Dillard's has had a tough year; its stock has fallen nearly 40% in the past 52 weeks. While Fitch just reaffirmed its ‘BB’ rating on the Dillard's senior debt, it also warned of a negative outlook. Fitch did mention the real estate as a positive factor in determining the default rating, but declining same-store sales and deteriorating operations were negatives. Mall traffic continues to decline as consumers continue to cut spending and favor discounter retailers (namely TJX and Costco).

Update - For the three months ended March 31, 2009, the DSCR was 0.73 (NCF of $480,000). In January 2009, Steve & Barry stores and its parent company abandoned plans to keep stores open during bankruptcy protection and will liquidate them over the next few months, according to a bankruptcy court filing. In July 2008, Steve & Barry's LLC, once a growing force in low-priced fashion retailing, filed for Chapter 11 bankruptcy protection, the latest merchant to succumb to a harsh consumer spending climate.The Port Washington, N.Y.-based chain operates 276 locations in 39 states.

Default risk is moderate based on the low occupancy (below market average) and the recent bankruptcy filing by one of the anchor tenants (Steve & Barry's occupies 10% of GLA). While we don’t expect Dillard’s (10% of space) to vacate at this time, empty anchor space would almost certainly depress mall traffic and lead to diminished cash flow.

Our research indicates that this property was part of a three property portfolio sale (two retail centers in Ohio and one in Indiana) in August 2007 that generated a sales price of $57.50/sf. Based on these figures, the property value is approximately $43.4 million. However, based on the 2008 in-place cash flow, there is a potential value deficiency associated with this loan. Hilton Antlers Colorado Springs Pros ID: 14.000 UPB: $36,432,000 % of Pool: 1.41 $/Size: $124,767

Prop. Type: Hotel Size: 292 City: COLORADO SPRINGS State: Colorado MSA: Denver, CO

This loan is secured by a 292 room full service hotel in Colorado Springs, Co. The hotel was built in 1967 and renovated in 2005.

For the 12 months ended Dec. 31, 2008, the DSCR was 1.39 with 76% occupancy. At issuance, the DSCR was 1.57 with 75% occupancy. The property was appraised for $55.2 million at issuance (LTV of about 66%). As of July 2008, the national average for upscale hotels was 69% occupancy with ADR of $121 and RevPAR of $84.

Despite the declining performance and older vintage, we view this loan as a low risk based on the low initial LTV and RevPar performance well above the national average.

As of Date Revenue # of Days # of Rooms RevPAR 3/1/2008 $ 3,310,607 93 292 $122

Ridgewood Commons Pros ID: 52.000 UPB: $10,120,000 % of Pool: 0.39 $/Size: $153,333

Prop. Type: Multi-family Size: 66 City: SOUTH ORANGE State: New Jersey MSA: Northern New Jersey, NJ

DSCR below 1.00 - This loan is secured by a 66 unit apartment complex in South Orange, NJ (16 miles west of New York City). The property was built between 1937 and 1940 and renovated between 2002 and 2007. The apartment was appraised for $12.65 million at issuance (LTV of about 80%).

For the six months ended June 30, 2008, the DSCR was 0.83. At year end 2007, the DSCR was 0.74 with 89% occupancy. At issuance, the DSCR was 1.29 with 86% occupancy. Rental rates have increased at the property during the past year; this increase is attributed to upgraded units. Additionally, many units at below market rates were increased when their leases came due for renewal.


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The loan is a moderate risk based on the older vintage and high initial LTV. We do expect improved performance in 2008 based on the recent renovations and increased rental rates. Based on the in-place cash flow, there is a potential value deficiency with this loan.

Rampart Village Center Pros ID: 53.000 UPB: $10,108,000 % of Pool: 0.39 $/Size: $105

Prop. Type: Retail Size: 96,296 City: COLORADO SPRINGS State: Colorado MSA: Denver, CO

DSCR below 1.00 - This loan is secured by a 96,296 sf retail center in Colorodo Springs, CO (70 miles south of Denver). The property was built in 1986. The property was appraised for $17.1 million at issuance (LTV of about 59%).

For the 12 months ended Dec. 31, 2008, the DSCR was 0.67 (NCF of $460,000) with 84% occupancy. At year end 2007, the DSCR was 0.45 with 85% occupancy. At issuance, the DSCR was 1.20 with 87% occupancy.

The loan is a moderate risk based on the older vintage and performance below breakeven. Based on the in-place cash flow, there is a value deficiency associated with this loan.

Largest Tenants SF. % - NRA Lease expiration Golds Gym 55,142 57.3% 7/31/2022 Solar Wavz 3,600 3.7% 12/31/2008

Good Company 3,000 3.1% 3/19/2012 61,742 64.1%

Peninsula Corporate Center Pros ID: 62.000 UPB: $9,500,000 % of Pool: 0.37 $/Size: $207Prop. Type: Office Size: 45,803 City: BOCA RATON State: Florida MSA: West Palm Beach, FL

Low DSCR - This loan is secured by a 45,803 sf office complex in Boca Raton, Florida. The property was built in 2006. The property was appraised for $13 million at issuance (LTV of about 73%). The loan is interest only for five years (first P&I payment is due in September 2012).

Four new competing properties have entered the market. However, the new buildings are targeting larger tenants and are not considered immediate competition. This property targets smaller users from 354 sf to 2,612 sf. The tenants are entrepreneurs who have outgrown their home offices as well as cost-conscious established firms who need to downsize in order to weather the economic downturn.

For the 12 months ended Dec. 31, 2008, the DSCR was 1.06 (NCF of $623,000) with 99% occupancy. At year end 2007, the DSCR was 0.43 with 96% occupancy. At issuance, the DSCR was 1.14 (NCF of $790,000) with 93% occupancy.

The borrower reported that nearly all of the increases in operating expenses have been passed through and collected from the tenants. As a result, the borrower expects a significant increase in gross income for 2008. The borrower also noted that the upscale market demographics and the entrepreneurial nature of the local tenants has kept Boca Raton somewhat insulated from the declining economy.

According to the borrower, their rental rates are in-line with competitive properties and the occupancy rates at the property remain above the market average. The most recent lease at the property was done at $33/ sf. and asking rents have been increased from $31 at the end of 2007 to a $35/sf. to $37/sf. range currently.

The loan is a low risk as the year end 2008 performance improved in line with issuance now that the increased expenses which depressed the year end 2007 DSCR have been passed through to the tenants. Based on the in-place cash flow, there is not a value deficiency associated with this loan. Hampton Inn & Suites - Ft. Myers Pros ID: 67.000 UPB: $8,547,374 % of Pool: 0.33 $/Size: $71,228

Prop. Type: Hotel Size: 120 City: FORT MYERS BEACH State: Florida MSA: Cape Coral-Fort Myers, FL

DSCR below 1.00 (renovations) - The property is a 120 unit limited service hotel in Fort Myers, Florida (SW Florida). The property was constructed in 2001 and renovated in 2007. The 2008 inspection rated the property in good condition. Best Western and Tahitian Inn compete with this property. There is no new construction noted in the area. The property was appraised for $11.6 million at issuance (LTV of about 75%).


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The loan is not on the servicer's watchlist. For the 12 months ended Dec. 31, 2008, the DSCR was 0.95 (NCF of $590,000) with 63% occupancy, ADR of $97 and RevPAR at $61. The property is underperforming the national average for limited service hotels as of July 2008 RevPAR was $69. At year end 2007, the DSCR declined to negative 0.04 with occupancy of 49%. At issuance, the DSCR was 1.50.

Update: The borrower is pursuing government business, which is largely unaffected by the economic uncertainty. Due to the positive growth outlook on International travel, the borrower signed and renewed with several leading FIT producers. The January 2009 Hampton Quality Assurance Evaluation indicated a balanced scorecard summary of Cleanliness at 99%, Condition at 92%, Standards at 93% and a combined final score of 86%.

In the past few months, the regional airport had a 16% decrease in passenger traffic when compared to 2007. Area hotels have experienced an average supply increase of 15% with a demand decrease of nearly 15%. There are a large number of hotel projects under construction and a few hotels that are newly opened.

We have requested an update on the decline in performance (assume it is due to the recent renovations at the property). The loan is a moderate default risk based on the decline in occupancy and performance below breakeven. The risk of default is somewhat mitigated by the newer vintage of the property and we expect performance to improve once renovations are completed. Based on the in-place cash flow, there is a potential value deficiency associated with this loan.

Clermont Shopping Center Pros ID: 117.000 UPB: $4,893,229 % of Pool: 0.19 $/Size: $112Prop. Type: Retail Size: 43,885 City: CLERMONT State: Florida MSA: Orlando, FL

Low DSCR - This loan is secured by a 43,885 sf. retail property in Clemont, Fla. (25 miles west of Orlando). The property was built in 1973 and renovated in 1996. The property was appraised for $7.5 million at issuance (LTV of about 65%).

For the 12 months ended Dec. 31, 2008, the DSCR was 1.14 (NCF of $427,000) with 63% occupancy. At year end 2007, the DSCR was 1.27 with 95% occupancy. At issuance, the DSCR was 1.35.

Update: In February 2009, the borrower reiterated that they expect to close on the sale of properties that are unrelated to the subject and anticipate using the sales proceeds to bring this loan current.

Mitigating future risk is very moderate initial LTV and strong occupancy. The loan could be transferred to the special servicer by next month if the payment is not brought current. Based on the in-place cash flow, there is not a value deficiency with this loan. Med Centre Shopping Center Pros ID: 125.000 UPB: $4,800,000 % of Pool: 0.19 $/Size: $108

Prop. Type: Retail Size: 44,541 City: SAN ANTONIO State: Texas MSA: San Antonio, TX

30 day delinquency / Low DSCR - This loan is secured by a 44,541 sf. unanchored retail property in San Antonio, Texas. The property was built in 1986 and was appraised for $7.1 million at issuance (LTV of about 68%).

At year end 2008, the DSCR was 0.37 (NCF of $112,000) with 86% occupancy. At year end 2007, the DSCR was 0.87 (NCF of $263,000) with 76% occupancy. At issuance, the DSCR was 1.23. A major tenant (UT Pediatrics) occupying 6,367 sf. (14%) had its lease expire in November 2008. UT Pediatrics is in negotiations for the 4,785 sf. unit (11%) and has extended through August 2010 for the 1,582 sf. (3%) unit.

Realpoint rates the San Antonio retail market 'fair' with a stable outlook for 2009.

The loan is a high risk due to the delinquency, declining performance, low occupancy and older vintage. The loan could be transferred to the special servicer by next month if the payment is not brought current. Based on the in-place cash flow, there is a value deficiency associated with this loan.

Largest Tenants SF. % - NRA Lease expiration Three Marketeers 5,500 12.3% 12/31/2013

Ut Pedatrics 4,785 10.7% 12/31/2010 Dna Laboratories 4,500 10.1% 6/30/2017

14,785 33.2%


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1613 Blue Hill Ave. Pros ID: 193.000 UPB: $2,251,050 % of Pool: 0.09 $/Size: $134

Prop. Type: Other Size: 16,802 City: MATTAPAN State: Massachusetts MSA: Boston, MA

DSCR below 1.00 - This loan is secured by a 16,802 sf. mixed use (office / retail) property in Mattapan, Mass. (10 miles south of Boston). The property was built in 1900 and renovated in 2007. The property was appraised for $4.5 million at issuance (LTV of about 51%).

The loan is not on the servicer's watchlist. For the nine months ended Sept. 30, 2008, the DSCR was 0.93 with 78% occupancy. At year end 2007, the DSCR was 0.60 with 66% occupancy. At issuance, the DSCR was 1.77.

The loan is a moderate risk based on the delinquency, weak occupancy, and performance below breakeven. Mitigating future risk is very low initial LTV. Based on the in-place cash flow, there is a value deficiency with this loan. Shoppes at Vista Lakes Pros ID: 198.000 UPB: $2,175,000 % of Pool: 0.08 $/Size: $257Prop. Type: Retail Size: 8,470 City: Orlando State: Florida MSA: Orlando, FL

30 day delinquency / Low DSCR - This loan is secured by a 8,470 sf retail center in Orlando, Fla. The property was built in 2006.

For the 12 months ended Dec. 31, 2008, the DSCR was 0.79 (NCF of $113,000) with 83% occupancy. For the 12 months ended Dec. 31, 2007, the DSCR was 1.36 with 100% occupancy.

In June 2009, the borrower confirmed that the center has been experiencing severe financial difficulties since its acquisition in October of 2007. Per the borrower, the retail market in Orlando, Florida is extremely depressed and the property is not generating sufficient income to meet expenses and service the debt. Consequently, the borrower indicated that they will not be able to meet the debt service requirements for the foreseeable future. The borrower requests an abatement of the debt service until the vacant and under-performing spaces at the center are re-leased.

Realpoint rates the Orlando retail market 'good' with a declining outlook for 2009.

The loan is a high risk due to the delinquency, declining performance and low occupancy. The loan could be transferred to the special servicer by next month if the payment is not brought current. Based on the in-place cash flow, there is a value deficiency associated with this loan.

Largest Tenants SF. % - NRA Lease expiration Lee Vista Karate

Center 2,030 24.0% 5/31/2010 Little Ceasars 1,400 16.5% 4/15/2012

Exit Realty 1,400 16.5% 11/7/2014 4,830 57.0%

Conway Village Shopping Center Pros ID: 206.000 UPB: $1,951,755 % of Pool: 0.08 $/Size: $73

Prop. Type: Retail Size: 26,700 City: ORLANDO State: Florida MSA: Orlando, FL

Low DSCR / Poor condition - This loan is secured by a 26,700 sf. unanchored retail property in Orlando, Fla. The property was built in 1972 and renovated in 2005. The property was appraised for $3.55 million at issuance (LTV of about 55%).

At year end 2007, the DSCR was 1.10 (NCF of $129,000) with 87% occupancy. At issuance, the DSCR was 1.29. A July 2008 inspection noted deferred maintenance including cracks in the sidewalk, cement walkway and asphalt throughout the entire complex and overgrown landscaping. Another safety issue is an active roof leak near an electrical light in the Family Dollar (32% of NRA) unit (the leak is causing drywall damage to the wall).

The loan is a moderate risk due to the delinquency, declining performance and older vintage. The loan could be transferred to the special servicer by next month if the payment is not brought current. Based on the in-place cash flow, there is a small value deficiency associated with this loan.


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!#)'(K*#K"(-+The deal is rated by Fitch and S&P.

July 21, 2009: S&P upgraded two classes.

July 14, 2009: S&P downgraded 25 classes (A-2 through Q).

February 2009: Fitch downgraded classes L, M, and N and affirmed all other rated classes.

Class L downgraded to 'BB' from 'BB+' Class M downgraded to 'BB-' from 'BB' Class N downgraded to 'B+' from 'BB-'

October 2008: Fitch affirmed its ratings.

Class To From A-2 AAA A+ A-3 AAA A+

Class To From Credit A-2 A+ AAA/Watch Neg A-3 A+ AAA/Watch Neg A-4 A+ AAA/Watch Neg

A-1A A+ AAA/Watch Neg A-M BBB+ AAA/Watch Neg

A-MFL BBB+ AAA/Watch Neg A-MA BBB+ AAA/Watch Neg A-J BB+ AAA/Watch Neg

A-JFL BB+ AAA/Watch Neg A-JA BB+ AAA/Watch Neg

B BB+ AA+/Watch Neg C BB AA/Watch Neg D BB AA-/Watch Neg E BB- A+/Watch Neg F BB- A/Watch Neg G B+ A-/Watch Neg H B+ BBB+/Watch Neg J B BBB/Watch Neg K B BBB-/Watch Neg L B- BB+/Watch Neg M B- BB/Watch Neg N B- BB-/Watch Neg O CCC+ B+/Watch Neg P CCC B/Watch Neg Q CCC- B-/Watch Neg


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Copyright © 2009 by Realpoint LLC. The material contained herein (the “Material”) is being distributed in the United States by Realpoint LLC (“Realpoint”). Realpoint makes no representation as to its accuracy, timeliness or completeness and does not undertake to update any information or opinions contained in the Material. The Material is published solely for information purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security or derivative. The Material is not to be construed as providing investment services in any state, country or jurisdiction. From time to time, Realpoint, its affiliates and subsidiaries and/or their officers and employees may perform other services for companies mentioned in the Material. Opinions expressed herein may differ from the opinions expressed by other divisions of Realpoint, its affiliates and subsidiaries. The Material has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of the Material and investments discussed may not be suitable for all investors. Investors should seek financial advice regarding the suitability of investing in any securities or following any investment strategies discussed in the Material. Past performance is not indicative of future returns. Certain assumptions may have been made in preparing the Material that has resulted in certain returns detailed herein and any changes thereto may have a material impact on any returns detailed. No representation is made that any returns detailed herein will be achieved. If an investment is denominated in a currency other than the investor's currency, changes in the rates of exchange may have an adverse effect on value, price or income. Realpoint LLC, 410 Horsham Road Suite A, Horsham, PA 19044 (800) 299-1665


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Documents

RealPoint CMBS methodology disclosure