Montgomery Washington Tower One
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Montgomery Washington Tower
Commercial Mortgage Finance
$65MM First Mortgage Loan
Citigroup (“Citi”) is offering a $65MM first mortgage loan. This mortgage loan provided refinancing on Montgomery Washington Tower, a 263,515 SF Class A office property located at 65 Montgomery Street in San Francisco, CA. Transaction Overview
•
In June 2006, Citi provided fixed-rate refinancing in the amount of $65MM ($247/SF), to be secured by Montgomery Washington Tower (the “Loan”). Proceeds from the loan were used to retire existing debt in the amount of $45.6MM (plus pre-payment charges of approximately $4MM), to buy-out the limited partnership for an amount of $14.7 and to cover closing costs. • The borrower originally developed the subject property in 1984, and the balance sheet for Washington Montgomery LP showed a aggregate cost basis of approximately $43.8MM as of 12/31/07, which included the following assets: building and improvements ($28.1MM), tenant improvements ($7.3MM), furniture, fixtures, & equipment ($1.6MM), and land ($6.8MM). The sponsor, Warren Spieker, also invested an additional $20MM of equity in the property for a total cost basis of $63.8MM. Loan Terms • The loan exhibits a 1.19x DSCR and 58.9% LTV. • 10-year term expiring June, 2016 • First 60 payments of interest only, followed by 30-year amortization • Locked out through and including the earlier of (i) June 5, 2010, or (ii) two years after the issue date of the REMIC trust established in connection with the final securitization involving the loan, followed by defeasance, then open for the last 3 payments. • Tax, Insurance and Replacement reserves are springing upon an event of default. • The borrower deposited $3MM in a segregated account at closing to be used only for the payment of leasing costs at the property. Property Description • The subject property consists of the first 18 floors of a 25 story building located at 655 Montgomery Street in San Francisco, CA (the “Property”). • The Property includes 257,863 SF of Class A office space on the 4th through 19th floors and retail space on the 1st floor and an approximately 24,900 SF, 125-space parking garage portion on the 2nd and 3rd floors of the 403,063 SF building. The subject is a condominium ownership. The property was developed by the current sponsorship in 1984. Building amenities include exceptional views, on site parking availability and a health club facility. • The Property is subject to a ground lease on 19.1% of the land. The ground lease was effective 8/1/1981 and expires 7/31/2080. There are no renewal options. The current annual ground rent is $208,080 NNN (paid monthly). The rent increases every 5 years by CPI and the next increase will be 8/1/2012. • The building is a condominium ownership and is one of two associations owning 655 Montgomery Street. The Property is the commercial condominium. The second is a residential condominium that consists of 33 residential units (approx. 100,000 SF) and a
health club and pool (shared with the commercial condominium) on the 20th through 26th floors. • The Property is 79.0% leased to 39 tenants. The largest tenant is Bank of America Securities (“BofA”) occupying 19.6% of net rentable area. The BofA lease expires in August 2010. The second largest tenant is Expedia, Inc. (“Expedia”) occupying 16.8% of net rentable area. The Expedia lease expires in June 2013. The third largest tenant is SuccessFactors occupying 6.4% of net rentable area. The SuccessFactors lease expires in August 2010. Location / Market • The Property is located within the downtown Financial District in San Francisco, CA. The Property is located within the Financial Disctrict office submarket. • Per the Summer 2008 TWR Office Outlook, the Financial District submarket consisted of 28,800,000 square feet, with a reported vacancy of 7.8% and average asking rents at $41.10 psf gross. • The Property was underwritten to a weighted average base rent of $31.24 psf, with a 20.2% vacancy factor. Performance Time Period NOI
2007
2008
T-12 3/09
UW
4,213,702
5,092,633
5,540,851
5,938,476
Sponsorship & Management • The borrowing entity is Montgomery-Washington Tower, LLC, a special purpose entity structured to be bankruptcy remote (the “Borrower”). The sponsors of the borrower are Warren E. Spieker, Jr. and Patrick J. Gilligan. • Mr. Spieker formed Spieker Properties in 1993 with a $400+ million IPO, with Goldman Sachs and Merrill Lynch as the lead underwriters. From 1993-2001, the portfolio grew from 11 to 42 million SF, with respective values of $800 million to over $6 billion. In July 2001, Equity Office Properties acquired Spieker Properties in a transaction valued at over $7.2 billion. At the time, it was the largest real estate company in the world. Mr. Spieker continues today as Managing Partner of Spieker Partners, with a focus on large scale projects and independent living, assisted living and skilled nursing care centers.
Capital Structure First Mortgage Loan
Approximate Face Amount
Cumulative As-Is LTV %
UW Cumulative DSCR
$65,000,000
58.9%
1.19x
The information and data contained herein (this “Information”) is made available by Citigroup Global Markets Realty Corp. (“CGMRC”) and/or affiliates thereof solely for review and use by prospective investors or purchasers in connection with their evaluation of potential investments in or purchases of potential mortgage loans or subordinate interests therein that are secured by commercial real properties, potential mezzanine loans that are secured by direct or indirect ownership interests in the borrowers under such mortgage loans, potential participation interests in such mortgage loans, mezzanine loans or portions thereof and/or securities that would evidence direct or indirect ownership interests in or that are directly or indirectly secured by such mortgage loans, mezzanine loans and participation interests. The review or use of this Information for any other purpose is strictly prohibited. Neither CGMRC nor any of its affiliates has verified any of this Information. Neither CGMRC nor any of its affiliates will make any representation or warranty, express or implied, as to the accuracy or completeness of all or any portion of this Information or have any liability for any representations (express or implied) contained in, or for any omissions from, this Information. This Information does not purport to be all-inclusive or to contain all of the information that may be material to a prospective investor’s or purchaser’s decision to invest or purchase. Each prospective investor or purchaser must make its own decision regarding the extent to which such prospective investor or purchaser should rely on this Information in considering a potential investment or purchase and must perform its own independent investigation and analysis of the transactions. This Information may be based upon third party information which reflects assumptions by such party and may not be indicative of the present or future circumstances of the commercial real properties that are the subject of this Information. If and when the words “expects”, “intends”, “anticipates”, “estimates” and analogous expressions are used in statements contained in this Information, such statements are forward-looking statements the accuracy of which is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected (including, without limitation, the effects of general, regional and local economic conditions, real estate market conditions and governmental regulations and taxes and the risk of losses from terrorist activity, fires, floods and other natural disasters). Any forward-looking statements speak only as of their date. None of CGMRC, its affiliates or any other person or entity will have any liability for any change in events, conditions or circumstances on which any such forward-looking statement is based. This Information is strictly confidential and may not be disclosed to any person or entity without the express authorization of CGMRC.
MONTGOMERY WASHINGTON TOWER
Property Description: Property Name City/State Property Type Total SF / Adjusted SF (A) No. Parking Spaces Year Built Year Renovated Tot Phys Occ / Adj. Phys Occ a/o 4/09
Valuation: Acquisition Cost Appraised Value
FIXED-RATE LOAN UNDERWRITING
Underwriting Assumptions: Min. Econ. Vacancy/Credit Loss Management Fee Replacement Reserves PSF Sq. Ft. Override For RR NCF Scenario Generated
Montgomery Washington Tower San Francisco CA Office 263,678 125 1984 NAP 79.0% 0.0%
263,678 Ratio: 0.47
$0 $110,000,000
$0 PSF $417 PSF
CY Ended 12/05 Average Annual OccupancyB
NAP $ Amount
INCOME In-Place Base Rent a/o 4/09 Contractual Rent StepsC Potential Income from Vacant Space D ReimbursementsD Mark-to-Market Adjustment Other Income (Schedule A)E Total Gross Potential Income Economic Vacancy & Credit Loss Historical Total Rental Income (In lieu) F EGI Before Other Income Parking Other Income 2 Percentage Rent (Schedule B) Effective Gross Income
Sizing Parameters: Max LTV Max LTC Min In-Place DSCR Min pro forma DSCR 10 Year Treasury Spread (bps) Gross Coupon U/W Sizing Constant
79.0%
CY Ended 12/06 NAP
PSF / %
$ Amount
65.0% 65.0% 1.20 1.20 105 6.01% 7.20%
CY Ended 12/07 NAP
PSF / %
$ Amount
Loan Request: Requested Loan Loan Purpose Loan Type Loan Term (months) LTC LTV In-Place DSCR Pro Forma DSCR
20.2% <--Pro Forma 3.0% $0.20 0 Pro Forma
CY Ended 12/08 $ Amount
Fixed
120 0.0% 59.1% 1.19 1.22
$65,000,000 0.0% 59.1% 1.19 1.22
Trailing-12 3/09 NAP
PSF / %
Sustainable Valuation: NCF Haircut Adj. U/W NCF (Pro Forma) Cap Rate Prelim. Value Value Adj. Tot Sustainable Value LTV - Recommended Loan
$247 PSF
Refinance
Recommended Loan: Recommended Loan LTC LTV In-Place DSCR Pro Forma DSCR
NAP PSF / %
$65,000,000
$ Amount
$62,367,655 104.2%
$237 PSF $0 PSF $237 PSF
$247 PSF
Appraisal 12 mo. 5/08 NAP
PSF / %
2.0% $5,613,089 9.00% $62,367,655
$ Amount
Budget 12 mo. 12/09 NAP
PSF / %
$ Amount
In-Place Underwritten
Pro Forma U/W (Dec-10)
PSF / %
Economic: $ Amount
79.8% PSF / %
Economic: $ Amount
90.0% PSF / %
0.0%
$6,503,531 96,523 2,447,291 3,015,375 0 29,100 12,091,819 (2,447,291)
$31.24 $0.46 $44.11 $14.48 $0.00 $0.14 $45.86 20.2%
$6,503,531 177,675 2,447,291 3,022,338 (1,150,026) 29,100 11,029,908 (1,102,991)
$31.24 $0.85 $44.11 $14.52 ($5.52) $0.14 $41.83 10.0%
9,644,529 257,813 37,326 0 9,939,668
$45.86 171.92 $0.18 $0.00 $47.26
9,926,917 257,813 37,326 0 10,222,057
$41.83 171.92 $0.18 $0.00 $43.07
1
$8,285,084 0 0 3,422,559 0 0 11,707,643 0.0% 11,707,643 293,504 102,441 0 12,103,588
195.67
$6,602,341 0 0 2,927,717 0 0 9,530,058 0 0 9,530,058 273,840 67,000 0 9,870,898
0.0%
182.58
$4,994,121 0 0 2,654,331 0 0 7,648,452 0 0 7,648,452 276,922 75,304 0 8,000,678
0.0%
184.58
$5,810,669 0 0 2,748,543 0 0 8,559,212 0 0 8,559,212 272,392 71,060 0 8,902,664
$6,195,558 0 0 $2,866,083 0 0 9,061,641 0 0 9,061,641 $257,813 $66,426 0 9,385,881
0.0%
181.58
0.0%
171.92
$8,049,772 0 0 3,217,117 0 0 11,266,889 (1,647,323) 0 9,619,566 277,000 56,394 0 9,952,960
14.6%
184.67
$6,886,095 0 0 3,506,395 0 0 10,392,491 0 0 10,392,491 264,000 47,700
176.00
10,704,191
EXPENSES Management Fee Payroll & Benefits Cleaning Contract Services General Operating Expenses CAM Expenses Repairs & Maintenance Utilities Advertising & Marketing General & Administrative Legal & Professional Insurance Real Estate Taxes Ground Rent Other 1 Other 2 Total Operating Expenses
397,157 0 0 0 352,863 220,355 1,284,994 557,671 0 6,123 5,800 128,191 648,937 186,508 0 0 3,788,599
3.3% $0.00 $0.00 $0.00 $1.34 $0.84 $4.87 $2.11 $0.00 $0.02 $0.02 $0.49 $2.46 $0.71 $0.00 $0.00 $14.37
321,359 0 0 0 425,383 225,670 1,428,050 516,047 0 6,133 6,805 97,731 659,046 185,048 0 0 3,871,272
3.3% $0.00 $0.00 $0.00 $1.61 $0.86 $5.42 $1.96 $0.00 $0.02 $0.03 $0.37 $2.50 $0.70 $0.00 $0.00 $14.68
260,238 0 0 0 426,485 233,731 1,421,209 459,772 0 8,005 2,230 114,544 665,892 194,870 0 0 3,786,976
3.3% $0.00 $0.00 $0.00 $1.62 $0.89 $5.39 $1.74 $0.00 $0.03 $0.01 $0.43 $2.53 $0.74 $0.00 $0.00 $14.36
269,957 0 0 0 282,334 283,498 1,503,784 436,558 0 23,480 31,216 90,417 680,703 208,083 0 0 3,810,031
3.0% $0.00 $0.00 $0.00 $1.07 $1.08 $5.70 $1.66 $0.00 $0.09 $0.12 $0.34 $2.58 $0.79 $0.00 $0.00 $14.45
$284,874 $0 $0 $0 $244,228 $256,225 $1,515,578 $471,541 $0 $16,592 $67,627 $92,911 $687,371 $208,083 $0 $0 3,845,030
3.0% $0.00 $0.00 $0.00 $0.93 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.35 $2.61 $0.79 $0.00 $0.00 $14.58
298,589 0 0 0 0 188,539 1,213,879 490,717 0 439,063 0 108,474 1,259,383 208,080 0 222,400 4,429,124
3.0% $0.00 $0.00 $0.00 $0.00 $0.72 $4.60 $1.86 $0.00 $1.67 $0.00 $0.41 $4.78 $0.79 $0.00 $0.84 $16.80
276,430 0 0 0 351,070 252,592 1,494,076 590,864 0 3,000 0 112,494 701,033 208,080 0 0 3,989,638
2.6% $0.00 $0.00 $0.00 $1.33 $0.96 $5.67 $2.24 $0.00 $0.01 $0.00 $0.43 $2.66 $0.79 $0.00 $0.00 $15.13
298,190 0 0 0 351,070 256,225 1,515,578 471,541 0 16,592 67,627 114,910 694,038 215,422 0 0 4,001,193
3.0% $0.00 $0.00 $0.00 $1.33 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.44 $2.63 $0.82 $0.00 $0.00 $15.17
306,662 0 0 0 351,070 256,225 1,515,578 471,541 0 16,592 67,627 114,910 694,038 215,422 0 0 4,009,664
3.0% $0.00 $0.00 $0.00 $1.33 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.44 $2.63 $0.82 $0.00 $0.00 $15.21
NET OPERATING INCOME
8,314,989
$31.53
5,999,626
$22.75
4,213,702
$15.98
5,092,633
$19.31
5,540,851
$21.01
5,523,836
$20.95
6,714,553
$25.46
5,938,476
$22.52
6,212,393
$23.56
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
51,654 1,010,220
$0.20 $3.83
0 0
$0.00 $0.00
52,736 293,745 3.0%
$0.20 $1.11
52,736 432,015 4.3%
$0.20 $1.64
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 1,061,874
$0.00 $4.03
0 0
$0.00 $0.00
346,481
$1.31
484,751
$1.84
$8,314,989
$31.53
$5,999,626
$22.75
$4,213,702
$15.98
$5,092,633
$19.31
$5,540,851
$21.01
$4,461,962
$16.92
$6,714,553
$25.46
$5,591,995
$21.21
$5,727,642
$21.72
Replacement Reserves Normalized TI/LC TI/LC as a % of EGI (less excl rent and pkg)
Historical Capital Expenses Total Capital Items NET CASH FLOW Net Cash Flow After DS DSCR on Recommended LoanG
1.78
1.28
0.90
1.09
1.18
0.95
1.43
$910,485 1.19
$1,046,132 1.22
GENERAL NOTES:
A B C D E F G
Adj. SF is net of excl. space such as pad space. Loan PSF, Value PSF, and RR PSF are based on Adj. SF. Tot Physical Occup. % is based on Tot SF, while Adj. Phys. Occup. % is based on Adj. SF; both occupancy calcs are net of non-rentable vacant space. If toggled, re-measured SF overrides the Adj. SF. Underwritten income PSF is physical-occupancy-adjusted; historical income PSF is physical-occupancy-adjusted to the extent physical occupancies are available, otherwise historical income PSF calculations are not shown; Parking income is per space per month. Contractual Steps represent (1) for In-Place NCF: avg. steps for credit tenants over the loan term and/or ann'lzd steps occurring within 6 months from the date of underwriting, and (2) for Pro Forma NCF: ann'lzd steps occurring by the Pro Forma stabilization date. Potential income from vacant space includes reimbursements from vacant NNN lease space as well as marginal grossed-up "Other Income" subject to underwritten vacancy. Represents in-place other income items that are subject to underwritten vacancy (e.g., contractual antenna lease payments). To the extent historical statements do not provide sufficient details, "Historical Total Revenue" line item is used in lieu of individual income line items (including Percentage Rent, if necessary). Historical DSCR is based on Net Operating Income; Underwritten DSCR is based on U/W NCF.
Montgomery Washington WIP 04-21-09
Notes
Cash Flow
4/24/2009 1:49 PM
2 3 4 5 6 7 8
9 10
11
12 13 14 15 16 17 18 19 20
21
22 23
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO CASH FLOW STATEMENT
1
2 3 4 5 6
7 8 9
10 11 12 13 14 15 16 17
18 19 20
21
22
The subject property is a Class A, 25-story, mixed use development comprised of office, retail, residential, and storage space. The building totals 263,678 SF, including three retail suites (8,291 SF), office space (249,614 SF), and 13 basement storage spaces (5,773 SF). In addition, the building includes a parking garage (125 spaces), a health club, and 33 residential condominium units located on the top five floors. The residential condominiums are not part of the subject collateral. The subject operating statements are prepared net of the residential contribution, which is 25% of the common operating expenses, such as insurance, security, window washing, engineering, etc. In-Place Base Rent is underwritten based on the Rent Roll dated 4/1/09. Borrower's rent roll includes rent paid by Nextel for a rooftop antenna. Nextel executed a 10-year lease, which expires on 4/25/10. The rent from Nextel is underwritten as Other Income. The In-place Contractual Rent Steps are underwritten per the actual increases scheduled to occur through 12/1/09. The Pro-forma Contractual Rent Steps are underwritten per the actual increases scheduled to occur through 12/1/10. Potential Rent from Vacant Space is underwritten per the appraiser's concluded market base rent for each floor. Reimbursements are underwritten based on the reimbursement schedules. All leases are written as triple net. The decline in underwritten reimbursements from 2005 is a result of an increase in vacancy. No Mark to Market adjustment has been taken in the In-Place underwriting scenario. The vast majority of the leases that are above market is the Bank of America space (19.6% of NRA). This rent was underwritten as a tenant default is not likely (Moody's A2; S&P A; Fitch A+), the lease does not expire until 8/31/10 and 70% of this space has been subleased by Bank of America. In the proforma analysis, all space was marked down to market, respresenting a $1,150,026 ($5.52/SF) haircut. According to Reis, the average asking rent for the submarket, as of Q4-08, was $49.14/SF, a 2.4% increase from an asking rent of $47.99/SF as of Q4-07 and a 20.6% increase from an asking rent of $40.76 as of Q4-06. As such, the property's above average in-place rent, which is currently 5.9% above market, was reduced to 5.8% below market. Since 1/08, the landlord has executed eleven leases representing 59,099 SF (22.4% of NRA) at an average gross rent of $41.91/SF which is just below the appraiser's weighted average concluded market rent of $43.60/SF. Other Income is underwritten based on the actual rent paid by Nextel for the aforementioned rooftop antenna. Economic Vacancy & Credit Loss is underwritten at 20.2% based on the subject's current economic vacancy. In the proforma scenario, a 10% vacancy factor was utilized. According to Reis, the average vacancy rate for the submarket was 7.8% in Q4-08. Parking Income is underwritten based on the Trailing-12 actual income. The parking garage includes 125 spaces and is managed by the Borrower. A contract has been executed with AMPCO Auto Parks, which operates the parking lot for the Borrower. This income is net of expenses, which includes a monthly payment to the operator and reimbursement for expenses. Other Income2 is underwritten based upon the Trailing-12 actual income figure less Nextel antenna income, which is underwritten above in Schedule A Other Income. Other Income consists of Health Club dues and miscellaneous income. Management Fees are underwritten at 3.0% of EGI, based on the management contract between the Borrower and Spieker-Gilligan #100, LP, an affiliate of the Borrower. The appraiser concluded that management fees in the market range from 3% to 4% and projected a 3% management fee. General Operating Expenses are underwritten based on the greater of Trailing-12 actual expense or 2009 budget. General Operating Expenses are reimbursable expenses comprised of on-site salaries, telephone, data processing, office supplies, postage, etc. CAM expenses are underwritten based on the greater of Trailing-12 actual expense or 2009 budget. CAM expenses are non-reimbursable expenses comprised of health club expenses and garage maintenance and garage real estate taxes. Repairs & Maintenance is underwritten based on the greater of Trailing-12 actual expense or 2009 budget. Repairs & Maintenance are reimbursable expenses comprised of repairs & maintenance, contract services, security, etc. Utilities are underwritten based on the Trailing-12 actual expense. Utilities are reimbursable expenses comprised of electricity, natural gas, water & sewer, and garbage collection. General & Administrative are underwritten based on Trailing-12 actual expense. General & Administrative is comprised primarily of tenant promotions and marketing. Legal & Professional is underwritten based on Trailing-12 actual expense less a one time charge of $146,087.61. The charge was for a lawsuit to prevent City College of San Francisco from building a 20 story building, which will block a corner of the view from the subject property. The partners decided to withdraw from the suit and the bill was paid in the final quarter of 2008. Historical expenses for this category was nominal ($2,230-$6,805) over prior 3 years. Insurance expense is underwritten per the actual insurance premium for the policy that expires on 10/01/09. Real Estate Taxes are underwritten based on the actual invoices for 2008/2009. The appraiser's projected real estate taxes are based on the concluded market value of $110,000,000. The subject property is currently assessed at $58,486,995 and per California Proposition 13, taxes cannot increase by more than 2% per year. Ground Rent is underwritten based on the average expected ground rent expense during the loan term. Three of the four parcels that comprise the site are owned fee simple by the current building ownership and the condominium owners as tenants in common. An undivided approximately 3,320.5 square feet (19.1 percent) of the central portion of the site is a leasehold, by virtue of an unsubordinated ground lease with a remaining term of 75 years and 4 months. The ground lease grants the tenant a Right of First Refusal to purchase the ground lessor’s interest, as well as a Purchase Option after August 1, 2024. There is also a “Put” option whereby the ground lessor can force the tenant to purchase the lease fee interest in the ground leased parcel any time after August 1, 1990. The ground rent is currently $208,080 per year and adjusts every five years based on the CPI increase. The next increase occurs in August 2012. Historically, 25% of the ground lease was paid by the management company and the operating statements only reflect 75% of the payment. Total Operating Expenses are underwritten at $15.17/SF including parking garage expenses and health club expenses totaling $0.82/SF, which are above the median total costs of $13.09/SF for office buildings located in downtown San Francisco and built after 1977, per the 2006 IREM Survey. The operating expenses do not include the portion (25%) of common operating expenses paid by the home owners association. Please note that underwritten total expenses are just above the actual expenses the property has exhibited over the last four years, which have consistantly ranged within a narrow band from $14.36/SF to $14.68/SF. Replacement Reserves are underwritten at $0.20/SF, which is nearly twice the engineer's recommendation of $0.12/SF.
Montgomery Washington WIP 04-21-09
CF Notes
4/24/2009 1:49 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO CASH FLOW STATEMENT
23
TI/LCs are underwritten at $1.11/SF (3.0% of EGI) and $1.64 (4.3% of EGI) for in-place and pro-forma, respectively. Assumptions used were- Tenant Improvements are underwritten at $10/SF new & $5 renewal for office and retail tenants. Leasing commissions are underwritten at 4% (new) and 2% (renewal). Lease terms are underwritten at ten years for all tenants. Leases that were greater than 20% below market were excluded from TI/LC calculations. As of April 21st, 2008, the Borrower's TI/LC Reserve Fund had a balance of $1,585,000, which credit was given to in the In-Place TI/LC calculation. This effectively lowered In-place TI/LC's from $1.49/SF (4.0% of EGI) to $1.11/SF (3.0% of EGI).
24
Montgomery Washington WIP 04-21-09
CF Notes
4/24/2009 1:49 PM
MONTGOMERY WASHINGTON TOWER
IN-PLACE RENT ROLL
Summary Statistics General Info:
Expense Recovery Assumptions:
Property Number Date of Underwriting Rent Roll As of
7018815 4/21/08 4/1/09
Underwriting Scenario
Recovery Method Recover Mgmt. Fee?
Tenant Classes:
In-Place
Vacancy Assumptions: Total NRSF Current Total Physical Vacancy Current Economic Vacancy Minimum Underwritten Vacancy Underwritten Vacancy*
263,678 21.0% 20.2% 20.2% 20.2%
Mark-to-Market Assumptions: Mark-up Below-Market Rents? Pro Forma Stabilization Date Underwriter has Overriden any Mark-downs?
2: Recovery Pool Over Base Year Stops Yes
No 12/31/2025 Yes
Tenant Class
Total Sq. Ft. Sq. Ft. % of Tot
Adj. Sq. Ft. Sq. Ft. % of Total
Avg. In-Place Rent PSF Base Gross
Avg. Gross Market Rent
Avg. U/W Rent PSF Base Gross
Total U/W Rental Income $ Amount % of Total
Yes
1
7,732
2.9%
7,732
2.9%
$40.17
$51.57
$42.18
$40.17
$51.57
$398,735
3.3%
No.
Adj. NRA
Vac / Occup.
TST Code
2
199,030
75.5%
199,030
75.5%
$31.45
$46.12
$43.79
$31.45
$46.12
$9,178,947
76.1%
1
Include
Occupied
Retail
None
3
1,440
0.5%
1,440
0.5%
$20.79
$26.21
$27.56
$20.79
$26.21
$37,747
0.3%
2 3 4 5 6 7
Include Include Include Include Include Include
Occupied Occupied Vacant Vacant Vacant Vacant
Office Basement Vacant Space Vacant Basement Vacant Retail NAP
None
4 5 6 7 8 9
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$2,326,390 $99,659 $21,242 $0 $0 $0
19.3% 0.8% 0.2% 0.0% 0.0% 0.0%
8
Include
Vacant
NAP
None
9 10
Include Include
Vacant Vacant
NAP NAP
None
Description
None None None None None
None
10
0
0.0%
0
0.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0
0.0%
Tot/Avg.
263,678
100.0%
263,678
100.0%
$34.31
$45.75
$43.72
$34.31
$45.75
$12,062,719
100.0%
Note: Averages in summary statistics include vacant space.
Unit G-1 *
Tenant Harpo's Café
NRSF
Tenant Class
Lease Start
Lease Expire
% of Adj. SF
285
1
5/1/04
10/31/10
0.1%
* Tommy Toy's
7,447
1
400
Bank of America Securities
4,556
2
410
Bank of America Securities
5,703
2
450
Bank of America Securities
5,333
2
500
Yates Advertising
3,965
540
Raven Communications
12/1/84
Rent Bumps
Adjusted Base Rent
U/W Recovery
Gross Rent
Market Rent
Mark-to-Mkt Adj.
U/W Gross Rent
Excluded from TI/LC
$
PSF
$
Date
$
PSF
$
PSF
$
PSF
PSF
Convention
$
PSF
$
PSF
U/W Base Rent PSF
U/W to Mkt. Differential**
$17,109
$60.03
$599
11/1/09
$17,707
$62.13
$3,873
$13.59
$21,581
$75.72
$47.00
Gross
$0
$0.00
$21,581
$75.72
$62.13
61.1%
0
1
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
2
0.0%
G-3
*
Base Rent a/o Apr-09
SF
Reason
Notes
11/30/14
2.8%
$292,922
$39.33
$292,922
$39.33
$84,233
$11.31
$377,155
$50.65
$42.00
Gross
$0
$0.00
$377,155
$50.65
$39.33
20.6%
0
3
1/1/02
8/31/10
1.7%
$191,580
$42.05
$191,580
$42.05
$73,619
$16.16
$265,199
$58.21
$40.15
Gross
$0
$0.00
$265,199
$58.21
$42.05
45.0%
0
4
3/12/96
8/31/10
2.2%
$218,916
$38.39
$218,916
$38.39
$92,210
$16.17
$311,126
$54.55
$40.15
Gross
$0
$0.00
$311,126
$54.55
$38.39
35.9%
0
4
9/1/96
8/31/10
2.0%
$234,108
$43.90
$234,108
$43.90
$86,261
$16.17
$320,369
$60.07
$40.15
Gross
$0
$0.00
$320,369
$60.07
$43.90
49.6%
0
4
2
8/1/05
7/31/09
1.5%
$70,577
$17.80
$70,577
$17.80
$57,891
$14.60
$128,468
$32.40
$40.15
Gross
$0
$0.00
$128,468
$32.40
$17.80
-19.3%
0
5
13,199
2
9/1/07
8/31/09
5.0%
$319,812
$24.23
$319,812
$24.23
$178,471
$13.52
$498,283
$37.75
$40.15
Gross
$0
$0.00
$498,283
$37.75
$24.23
-6.0%
0
41
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
600
Expedia (Hotwire)
17,147
2
5/1/08
6/30/13
6.5%
$454,396
$26.50
$15,947
5/1/09
$470,342
$27.43
$250,402
$14.60
$720,744
$42.03
$40.15
Gross
$0
$0.00
$720,744
$42.03
$27.43
4.7%
0
44
700
Expedia (Hotwire)
17,147
2
5/1/08
6/30/13
6.5%
$454,396
$26.50
$15,947
5/1/09
$470,342
$27.43
$250,402
$14.60
$720,744
$42.03
$40.15
Gross
$0
$0.00
$720,744
$42.03
$27.43
4.7%
0
44
800
Expedia (Hotwire)
10,062
2
5/1/08
6/30/13
3.8%
$266,643
$26.50
$9,358
5/1/09
$276,001
$27.43
$146,896
$14.60
$422,897
$42.03
$40.15
Gross
$0
$0.00
$422,897
$42.03
$27.43
4.7%
0
44
830
Computershare Investor Serv.
2,107
2
12/1/04
11/30/10
0.8%
$48,292
$22.92
$48,292
$22.92
$31,604
$15.00
$79,897
$37.92
$40.15
Gross
$0
$0.00
$79,897
$37.92
$22.92
-5.6%
0
*
*
0.0%
*
$0.00
0.0%
$0.00
8
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
9
860
Integrent
1,727
2
12/1/07
12/30/10
0.7%
$57,198
$33.12
$2,003
12/1/09
$59,202
$34.28
$26,027
$15.07
$85,229
$49.35
$40.15
Gross
$0
$0.00
$85,229
$49.35
$34.28
22.9%
0
45
810
The Space Place, Inc.
1,123
2
10/1/03
9/30/10
0.4%
$25,604
$22.80
$1,123
10/1/09
$26,727
$23.80
$16,397
$14.60
$43,124
$38.40
$40.15
Gross
$0
$0.00
$43,124
$38.40
$23.80
-4.4%
0
7
940
Watchtower Capital Management
1,976
2
2/1/07
2/28/10
0.7%
$49,420
$25.01
$49,420
$25.01
$27,864
$14.10
$77,283
$39.11
$43.15
Gross
$0
$0.00
$77,283
$39.11
$25.01
-9.4%
0
46
950
Dartmouth College
1,509
2
10/1/07
9/30/10
0.6%
$38,480
$25.50
$39,989
$26.50
$21,279
$14.10
$61,267
$40.60
$43.15
Gross
$0.00
$61,267
$40.60
$26.50
-5.9%
0
47
$1,509
10/1/09
$0
*
*
0.0%
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
*
*
0.0%
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
1000
Wilderness Society
6,819
2
10/1/07
9/30/14
2.6%
$195,842
$28.72
$6,887
10/1/09
$202,729
$29.73
$92,954
$13.63
$295,682
$43.36
$43.15
Gross
$0
$0.00
$295,682
$43.36
$29.73
0.5%
0
42
1010
Shoreline Pacific Eq
2,137
2
9/1/06
8/31/10
0.8%
$57,699
$27.00
$2,030
9/1/09
$59,729
$27.95
$33,091
$15.49
$92,821
$43.44
$43.15
Gross
$0
$0.00
$92,821
$43.44
$27.95
0.7%
0
31
1020
Vietnam Post
1,057
2
10/1/06
9/30/11
0.4%
$25,157
$23.80
$1,057
10/1/09
$26,214
$24.80
$16,360
$15.48
$42,573
$40.28
$43.15
Gross
$0
$0.00
$42,573
$40.28
$24.80
-6.7%
0
1075
The Basic Fund
1,826
2
2/1/09
5/31/12
0.7%
$28,120
$15.40
$28,120
$15.40
$0
$0.00
$28,120
$15.40
$43.15
Gross
$0
$0.00
$28,120
$15.40
$15.40
-64.3%
1,826
1060
Laidlaw & Co. (UK), Ltd.
1,869
2
9/1/08
8/31/11
0.7%
$50,089
$26.80
$2,149
9/1/09
$52,239
$27.95
$27,299
$14.61
$79,537
$42.56
$43.15
Gross
$0
$0.00
$79,537
$42.56
$27.95
-1.4%
0
1100
Bank of America Securities
5,108
2
10/11/99
8/31/10
1.9%
$242,892
$47.55
$242,892
$47.55
$82,543
$16.16
$325,435
$63.71
$43.15
Gross
$0
$0.00
$325,435
$63.71
$47.55
47.6%
0
4 &35
1101
Bank of America Securities
3,930
2
7/1/98
8/31/10
1.5%
$182,940
$46.55
$182,940
$46.55
$63,952
$16.27
$246,892
$62.82
$43.15
Gross
$0
$0.00
$246,892
$62.82
$46.55
45.6%
0
4 &34
1150
Bank of America Securities
3,415
2
7/5/98
8/31/10
1.3%
$158,964
$46.55
$158,964
$46.55
$55,029
$16.11
$213,993
$62.66
$43.15
Gross
$0
$0.00
$213,993
$62.66
$46.55
45.2%
0
4 &39
1190
Bank of America Securities
3,648
2
12/28/02
8/31/10
1.4%
$173,472
$47.55
$173,472
$47.55
$59,118
$16.21
$232,590
$63.76
$43.15
Gross
$0
$0.00
$232,590
$63.76
$47.55
47.8%
0
4 &36
1200
Mannion & Lowe
5,451
2
2/1/02
2/1/12
2.1%
$135,677
$24.89
$135,677
$24.89
$88,120
$16.17
$223,797
$41.06
$43.15
Gross
$0
$0.00
$223,797
$41.06
$24.89
-4.9%
0
10
1210
Dugstad & Associates
772
2
5/1/94
1/31/11
0.3%
$18,374
$23.80
$18,374
$23.80
$11,266
$14.59
$29,640
$38.39
$43.15
Gross
$0
$0.00
$29,640
$38.39
$23.80
-11.0%
0
11
1220
Guardian Life Insurance
5,237
2
4/1/07
3/31/12
2.0%
$132,130
$25.23
$132,130
$25.23
$76,519
$14.61
$208,649
$39.84
$43.15
Gross
$0
$0.00
$208,649
$39.84
$25.23
-7.7%
0
12
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
13
*
*
0.0%
32
Below-Market
33
1400a
Michael Parish (MTM)
274
2
12/1/06
4/30/09
0.1%
$5,069
$18.50
$5,069
$18.50
$4,429
$16.17
$9,498
$34.67
$43.15
Gross
$0
$0.00
$9,498
$34.67
$18.50
-19.7%
0
1440
RLI Insurance
2,020
2
1/1/08
12/31/13
0.8%
$54,540
$27.00
$54,540
$27.00
$28,484
$14.10
$83,024
$41.10
$43.15
Gross
$0
$0.00
$83,024
$41.10
$27.00
-4.7%
0
49
1400
Spieker Partners (MTM)
2,881
2
1/1/84
4/30/09
1.1%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$43.15
Gross
$0
$0.00
$0
$0.00
$0.00
0.0%
0
14
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
$40,728
$8.60
$78,081
$16.49
$118,809
$25.09
$43.15
Gross
$0
$0.00
$118,809
$25.09
$8.60
-41.9%
4,736
$41,400
$22.34
$26,027
$14.05
$67,427
$36.39
$43.15
Gross
$0
$0.00
$67,427
$36.39
$22.34
-15.7%
0
15
$70,073
$25.80
$37,181
$13.69
$107,254
$39.49
$43.15
Gross
$0
$0.00
$107,254
$39.49
$25.80
-8.5%
0
51
$52,704
$26.34
$18,219
$9.10
$70,923
$35.44
$43.15
Gross
$0
$0.00
$70,923
$35.44
$26.34
-17.9%
0
50
$609,197
$35.89
$249,116
$14.68
$858,312
$50.57
$50.15
Gross
$0
$0.00
$858,312
$50.57
$35.89
0.8%
0
40
31.0%
0
4 and 37
*
*
0.0%
1410
Krohn & Croak
4,736
1430
Nan T. McEvoy
1,853
2
1438
Monarch
2,716
2
1480
Krohn & Croak/Kennedy
2,001
2
1500
Successfactors
16,974
1600
Bank of America Securities
11,603
1600
Bank of America Securities
1910
Albourne America
1710
Hanscomb Faithful & Gould, Inc
3,784
1720
Bank of America Securities
4,421
1740
BVR Company
1,103
1900
Hodge Niederer & Cariani, LLC
5,755
A
Meganews (BASEMENT, MTM)
242
3
B
Steven Gruel (BASEMENT,MTM)
99
F
Jon Rubinstein (BASEMENT,MTM
209
9/1/06
21
6/30/09
1.8%
$40,728
$8.60
9/1/06
8/31/09
0.7%
$41,400
$22.34
10/1/06
9/30/11
1.0%
$67,357
$24.80
10/1/06
6/30/12
0.8%
$52,704
$26.34
2
9/1/07
8/31/10
6.4%
$588,489
$34.67
2
2/1/99
8/31/10
4.4%
$574,964
$49.55
$574,964
$49.55
$187,394
$16.15
$762,358
$65.70
$50.15
Gross
$0
$0.00
$762,358
$65.70
$49.55
3,845
2
2/12/99
8/31/10
1.5%
$190,535
$49.55
$190,535
$49.55
$62,093
$16.15
$252,628
$65.70
$50.15
Gross
$0
$0.00
$252,628
$65.70
$49.55
5,759
2
9/8/08
12/31/15
2.2%
$201,565
$35.00
$201,565
$35.00
$84,112
$14.61
$285,677
$49.61
$50.15
Gross
$0
$0.00
$285,677
$49.61
$35.00
-1.1%
0
2
9/1/99
8/31/09
1.4%
$45,792
$12.10
$45,792
$12.10
$61,349
$16.21
$107,141
$28.31
$50.15
Gross
$0
$0.00
$107,141
$28.31
$12.10
-43.5%
3,784
2
2/12/99
8/31/10
1.7%
$219,072
$49.55
$219,072
$49.55
$71,388
$16.15
$290,460
$65.70
$50.15
Gross
$0
$0.00
$290,460
$65.70
$49.55
31.0%
0
2
12/1/04
11/30/09
0.4%
$12,387
$11.23
$12,387
$11.23
$16,732
$15.17
$29,118
$26.40
$50.15
Gross
$0
$0.00
$29,118
$26.40
$11.23
-47.4%
1,103
2
11/1/04
8/31/10
2.2%
$161,543
$28.07
$173,053
$30.07
$93,028
$16.16
$266,081
$46.23
$50.15
Gross
$0
$0.00
$266,081
$46.23
$30.07
-7.8%
0
9/1/89
4/30/09
0.1%
$3,630
$15.00
$3,630
$15.00
$2,709
$11.20
$6,339
$26.20
$50.15
Gross
$0
$0.00
$6,339
$26.20
$15.00
-47.8%
242
3
12/1/06
4/30/09
0.0%
$900
$9.09
$900
$9.09
$1,133
$11.45
$2,033
$20.54
$23.00
Gross
$0
$0.00
$2,033
$20.54
$9.09
-10.7%
0
38
3
10/15/04
4/30/09
0.1%
$4,907
$23.48
$4,907
$23.48
$2,833
$13.55
$7,740
$37.03
$23.00
Gross
$0
$0.00
$7,740
$37.03
$23.48
61.0%
0
22
Montgomery Washington WIP 04-21-09
2
$2,716
$20,708
$11,510
10/1/09
9/1/09
9/1/09
In-Place Rent Roll
31.0%
Below-Market
0
50
4 and 37 26
Below-Market
17 4 &43
Below-Market
18 19
Below-Market
4/24/2009 1:50 PM
20
MONTGOMERY WASHINGTON TOWER
IN-PLACE RENT ROLL
Summary Statistics General Info:
Expense Recovery Assumptions:
Property Number Date of Underwriting Rent Roll As of
7018815 4/21/08 4/1/09
Underwriting Scenario
Recovery Method Recover Mgmt. Fee?
Tenant Classes:
In-Place
Vacancy Assumptions: Total NRSF Current Total Physical Vacancy Current Economic Vacancy Minimum Underwritten Vacancy Underwritten Vacancy*
263,678 21.0% 20.2% 20.2% 20.2%
Mark-to-Market Assumptions: Mark-up Below-Market Rents? Pro Forma Stabilization Date Underwriter has Overriden any Mark-downs?
2: Recovery Pool Over Base Year Stops Yes
No 12/31/2025 Yes
Tenant Class
Total Sq. Ft. Sq. Ft. % of Tot
Adj. Sq. Ft. Sq. Ft. % of Total
Avg. In-Place Rent PSF Base Gross
Avg. Gross Market Rent
Avg. U/W Rent PSF Base Gross
Total U/W Rental Income $ Amount % of Total
Yes
1
7,732
2.9%
7,732
2.9%
$40.17
$51.57
$42.18
$40.17
$51.57
$398,735
3.3%
No.
Adj. NRA
Vac / Occup.
TST Code
2
199,030
75.5%
199,030
75.5%
$31.45
$46.12
$43.79
$31.45
$46.12
$9,178,947
76.1%
1
Include
Occupied
Retail
None
3
1,440
0.5%
1,440
0.5%
$20.79
$26.21
$27.56
$20.79
$26.21
$37,747
0.3%
2 3 4 5 6 7
Include Include Include Include Include Include
Occupied Occupied Vacant Vacant Vacant Vacant
Office Basement Vacant Space Vacant Basement Vacant Retail NAP
None
4 5 6 7 8 9
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$2,326,390 $99,659 $21,242 $0 $0 $0
19.3% 0.8% 0.2% 0.0% 0.0% 0.0%
8
Include
Vacant
NAP
None
9 10
Include Include
Vacant Vacant
NAP NAP
None
Description
None None None None None
None
10
0
0.0%
0
0.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0
0.0%
Tot/Avg.
263,678
100.0%
263,678
100.0%
$34.31
$45.75
$43.72
$34.31
$45.75
$12,062,719
100.0%
Note: Averages in summary statistics include vacant space.
Unit
Tenant
NRSF
Tenant Class
Lease Start
Lease Expire
% of Adj. SF
Base Rent a/o Apr-09 $
PSF
Rent Bumps $
Adjusted Base Rent
Date
U/W Recovery
Gross Rent
Market Rent
Mark-to-Mkt Adj.
U/W Gross Rent
$
PSF
$
PSF
$
PSF
PSF
Convention
$
PSF
$
PSF
U/W Base Rent PSF
U/W to Mkt. Differential**
Excluded from TI/LC SF
H
Andy Sills (BASEMENT, MTM)
103
3
9/18/03
4/30/09
0.0%
$1,800
$17.48
$1,800
$17.48
$1,133
$11.00
$2,933
$28.48
$23.00
Gross
$0
$0.00
$2,933
$28.48
$17.48
23.8%
0
C
Ed Winger
197
3
6/1/08
5/31/10
0.1%
$4,531
$23.00
$4,531
$23.00
$0
$0.00
$4,531
$23.00
$23.00
Gross
$0
$0.00
$4,531
$23.00
$23.00
0.0%
0
2,482
2
1230
9/1/08
8/31/13
0.9%
$76,942
$31.00
$2,681
9/1/09
K
Hotwire
300
3
12/1/08
11/30/10
0.1%
$7,200
$24.00
$300
12/1/09
E
Itocho International
Sheridan Forbes
290
3
11/1/08
11/1/11
0.1%
$6,670
$23.00
7.8 yrs
79.0%
$6,503,531
$31.24
Total Occupied (50)
208,202
Wtd Avg Term:
$96,523
$0.46
$79,623
$32.08
$36,252
$14.61
$115,874
$46.69
$43.15
Gross
$0
$0.00
$115,874
$46.69
$32.08
8.2%
0
25
$25.00
$0
$0.00
$7,500
$25.00
$23.00
Gross
$0
$0.00
$7,500
$25.00
$25.00
8.7%
0
27
$23.00
$0
$0.00
$6,670
$23.00
$23.00
Gross
$0
$0.00
$6,670
$23.00
$23.00
0.0%
0
28
$6,600,053
$31.70
$3,015,375
$14.48
$9,615,429
$46.18
$43.61
Gross
$0
$0.00
$9,615,429
$46.18
$31.70
5.9%
11,691
Vacant
1,304
4
0.5%
$52,356
$40.15
$52,356
$40.15
$0.00
$52,356
$40.15
$40.15
Gross
$52,356
$40.15
$40.15
Vacant
16,678
4
6.3%
$836,402
$50.15
$836,402
$50.15
$0
$0.00
$836,402
$50.15
$50.15
Gross
$836,402
$50.15
$50.15
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$50.15
Gross
$0
$0.00
$0.00
$0
$0.00
$221,061
$50.15
$50.15
Gross
$221,061
$50.15
$50.15
$126,645
$43.15
$43.15
$43.15
1950
Vacant
4,408
4
1.7%
$221,061
$50.15
$221,061
$50.15
960
Vacant
1.1%
$126,645
$43.15
$126,645
$0
2,935
4
$43.15
$0
$0.00
$43.15
Gross
$126,645
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
G
Vacant (BASEMENT)
319
5
0.1%
$7,337
$23.00
$7,337
$23.00
$0
$0.00
$7,337
$23.00
$23.00
Gross
$7,337
$23.00
$23.00
L
Vacant (BASEMENT)
987
5
0.4%
$22,701
$23.00
$22,701
$23.00
$0
$0.00
$22,701
$23.00
$23.00
Gross
$22,701
$23.00
$23.00
D
Vacant (BASEMENT)
842
5
0.3%
$19,366
$23.00
$19,366
$23.00
$0
$0.00
$19,366
$23.00
$23.00
Gross
$19,366
$23.00
$23.00
I
Vacant (BASEMENT)
431
5
0.2%
$9,913
$23.00
$9,913
$23.00
$0
$0.00
$9,913
$23.00
$23.00
Gross
$9,913
$23.00
J 840
$0.00
$23.00
Vacant (BASEMENT)
341
5
0.1%
$7,843
$23.00
$7,843
$23.00
$0
$0.00
$7,843
$23.00
$23.00
Gross
$7,843
$23.00
$23.00
Vacant (The Basic Fund)
801
4
0.3%
$34,563
$43.15
$34,563
$43.15
$0
$0.00
$34,563
$43.15
$43.15
Gross
$34,563
$43.15
$43.15
1,413
5
0.5%
$32,499
$23.00
$32,499
$23.00
$0
$0.00
$32,499
$23.00
$23.00
Gross
$32,499
$23.00
$23.00 $0.00
M
Vacant (BASEMENT)
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$43.15
Gross
$0
$0.00
$0.00
1240
Formerly Laidlaw
G-2
Formerly- Under The Sun
* 900
2,807
4
1.1%
$121,122
$43.15
$121,122
$43.15
$0
$0.00
$121,122
$43.15
$43.15
Gross
$121,122
$43.15
$43.15
559
6
0.2%
$21,242
$38.00
$21,242
$38.00
$0
$0.00
$21,242
$38.00
$38.00
Gross
$21,242
$38.00
$38.00
$0
$0.00
$0.00
10,640
4
$43.15
Gross
$459,116
$43.15
$43.15
* Formerly-Urchin Partners, LLC
23
$7,500
850
*
Notes
$6,670
1800 *
Reason
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
4.0%
$459,116
$43.15
$459,116
$43.15
$0
$0.00
$459,116
$43.15
1005
Formerly-CMT Corp
2,214
4
0.8%
$95,534
$43.15
$95,534
$43.15
$0
$0.00
$95,534
$43.15
$43.15
Gross
$95,534
$43.15
$43.15
30
1700
Formerly-GCA Strategies
7,211
4
2.7%
$311,155
$43.15
$311,155
$43.15
$0
$0.00
$311,155
$43.15
$43.15
Gross
$311,155
$43.15
$43.15
16
1050
Formerly-George Wolff
1,203
4
0.5%
$51,909
$43.15
$51,909
$43.15
$0
$0.00
$51,909
$43.15
$43.15
Gross
$51,909
$43.15
$43.15
1400b
Formerly-Hogland Bogart (MTM)
383
4
0.1%
$16,526
$43.15
$16,526
$43.15
$0
$0.00
$16,526
$43.15
$43.15
Gross
$16,526
$43.15
$43.15
Total Vacant (18)
55,476
18
21.0%
$2,447,291
$44.11
GROSS POTENTIAL INCOME
263,678
68
100.0%
$8,950,821
$33.95
$96,523
$0.37
$2,447,291
$44.11
$0
$0.00
$2,447,291
$44.11
$44.11
Gross
$9,047,344
$34.31
$3,015,375
$11.44
$12,062,719
$45.75
$43.72
Gross
$0
$0.00
$2,447,291
$44.11
$44.11
$12,062,719
$45.75
$34.31
11,691
* Represents the default u/w vacancy factor applied to non-excluded income (i.e., income not excluded from u/w vacancy). **U/W-to-market differential is calculated as follows: (1) for gross leases, [(Tot. u/w rent - market rent)/(market rent)]; for net leases, [(Base u/w rent - market rent)/(market rent)].
Montgomery Washington WIP 04-21-09
In-Place Rent Roll
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
1 2 3
4
5
6 7 8
9
10
11
12 13
14 15
16
Harpo's Cafe - Lease expired 10/31/2007. Tenant renewed for three years at $58/SF and 3.5% annual increase. There are no TI/LC. Tommy Toy's - Lease was assigned to Tai Ming Co. Inc. on 5/11/1984. Lease ends 11/30/2014. Rent increases 5%/year per original lease. Percentage rent is excess of 6% sales over AMR. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. Tenant must continuously operate and has no go-dark rights. There is no remaining free rent. Premises are leased in "As-is" condition. Lease is guaranteed by Tommy Toy per Amendment. Bank of America Securities - Tenant is NationsBanc Montgomery Securities LLC. NOTE: All Bank of America Units were added to the original lease dated 4/5/1995 by 28 amendments and are all subject to the same lease terms. There are no rent increases for the remainder of the terms. As of 1/24/08 the tenant uses suites 400, 410, and 450 as a fitness center. Tenant has four three-year options to extend all of the terms with 270 days notice. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Yates Advertising - Original Lease ended 7/31/2008. Tenant renewed for 1 year at $17.80 NNN. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premsies are leased in "As-is" condition. The Space Place, Inc. - Lease originally ended 9/30/2007. Signed 2 yr extension at $22.80 and $23.80. Computershare Investor Serv. - Lease expired 11/30/2007. Tenant exercised its one, three-year option through 11/20/2010 at $22.25/SF, up from an original rent of $10.10/SF. Annual increases to $22.92 and $23.61. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. The Basic Fund - Lease originally ended 5/31/2007. The tenant renewed for one year. The tenant renewed for another year through 5/09. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Mannion & Lowe - Lease originally ended 2/1/2007 and extended five years to 2/1/12. There are no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Dugstad & Associates - Lease originally ended 1/31/08 and was extended three years to 1/31/2011 atv $22.80, $23.80 and $24.80 There are no remaining options to extend the term. Tenant pays pro-rata share (increased to .303%) (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 180 days notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Ste 1220, Guardian Life Insurance. Suite 1220 (5,237sf). Tenant is Guardian Life Insurance from 4/1/07-3/31/2012 at $23.23psf and $1 annual increases. Tenant has one five-year option to extend term. TI/$25psf - LC/$11.25psf Laidlaw & Co. (UK), Ltd. - Lease ends 7/31/2008. Tenant has one two-year option to extend the term at $32,040/year and one three-year option at FMV with 180 days notice. Tenant pays prorata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. LANDLORD HAS INDICATED TENANT WILL EITHER EXTEND 3 YRS OR MOVE TO STE 1075. Suite 1400 is currently occupied by the management company, which is either the Borrower or an affiliate of the Borrower. The management company does not pay rent or reimbursables. Nan Tucker McEnvoy. Lease extended 25 months to 8/31/2009. There are no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate if physically unable to operate business (6/15/04 extension). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. GCA Strategies Inc. Original 5-year lease extended five years to 2/28/2007. Lease was extended again by six months to 8/31/08. Tenant has moved out.
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
17
18
19
20
21
22
23
24
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
Faithful & Gould Inc. Lease ends 8/31/2009. Tenant has one five-year option to extend the term with 120 days notice. Extension rent is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate after 8/31/07 with nine months notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. BVR Company - Lease originally ended 11/30/2007. There are no rent increases for the remainder of the term. Tenant exercised its one two-year option to extend the term with 180 days notice. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Lease may terminate upon Tenant's death with payment of three months rent (Addendum Sec. 3). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Hodge Niederer & Cariani, LLC - Lease ends 8/31/2010. Rent increases by CPI on 9/1/08 ($161,544 cap) and on 9/1/09 ($173,052 cap). Tenant has one five-year option to extend the term with 120 days notice. Extension rnt is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Security deposit is $25,000 letter of credit. Meganews - Month-to-month tenant. There were no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Hogland Bogart + Bertero - Tenant is HBB Management Co. Lease has been month-to-month since 4/1/2006. There are no rent increases. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 30 days notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Jon Rubinstein - Lease ends 10/14/2007. Rent increases by CPI on 10/15/06. Tenant has exercised one two-year option to extend the term with 90 days notice. Extension rent is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with six months notice (Addendum Sec. 3). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Andy Sills - Month-to-month tenant. There were no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 30 days notice (Addendum Sec. II). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Suites 900 and 920 and a portion of ste 970 are leased by Urchin Partners, LLC as tenant (they were a subtenant in ste 900 at $25/SF and in suite 920 at $22.50/SF). The lease commencement date is 9/1/06 and expiration date is 8/31/2011. For years 1 through 3 rent is $29.89 psf NNN. For years 4 and 5 rent is $32.89 psf NNN. T will have 1 - 5 yr renewal option at FMV with 120 day notice to exercise. Space will be as is with no TI and no commission Itocho Int. lease effective 9/1/08. 5 yrear term. Base rent 0 mths 1-2, $31PSF mths 3-12, $32.08 PSF mth 13-24, $33.20PSF mths 25-36, $34.36PSF mths 37-48, $35.57 PSF mths 49-60. NNN tenant pro-rata .975%. Minor TI work ($ not specified). No extension options. Abourne America. 7 yr term. Lease signed 9/8/08. commencement 1/1/09. $35 NNN, escalating at approx 3.5% per yr ($36.23, $37.50, $38.81, $40.17, $41.58 and $43.04). 1 five year renewal option at market. $20 TI work letter.
Ste 1005, CMT Corp -vacant Ste 1010 Shoreline Pacific. Original lease 9/1/06-8/31/08. Renewed 2 yrs. $27NNN and $27.95 Ste 1020 , Vietnam Post Original lease 10/1/06-9/30/08. renewed 3yrs $ 23.80 NNN, $24.80, $25.80 Ste 1050 , George Wolff Original lease 10/1/06-9/30/08. Renewed through 12/08, will be moving out. Ste. 1101 leased to BofA is DARK Ste 1100 (5,108 SF) is sublet to IBM from 10/1/01-8/31/10 at$38psf, 2001 base yr, rent increase 10/06 to $42psf Ste 1190 leased to BofA is DARK Ste 1600 and 1650 (1,548 SF) is sublet to Xythos Software, Inc from 9/1/05-8/31/2010 at $25psf, 2006 base yr Basement Ste B, Steven Gruel Ste 1150 is leased to BofA and subleased to Jones Lang LaSalle (the facility manager for the bank). Ste 1500. Tenant is SuccessFactors at 3.5% annual increases. Lease terms are three years. TI/$18psf - LC/$6.25psf. Ste 540 (13,199 SF) tenant is Raven Communications with $1 annual increase. Lease terms are two years. TI/$1.75psf - LC/$3.00psf. Ste. 1000 (6,819 SF) Wilderness Society has 3.0% annual rental increases. First month's rent free. Lease terms are 7 years. TI/$33PSF - LC/$15psf. Ste 1720 is leased to BofA and subleased gto Catalyst/Black Bag Advertising thru 8/31/10 St 600, 700 and 800 are leased to Hotwire (Expedia) 5/08-6/13. First yr $26.50 PSF, annual increases to $27.43,$28.39,$29.38,$30.41,$31.47. St 860 leased to Integrent. 3 yrs 12/1/07-12/31/2010. St 940, leased to Watchtower Capital Mgmt 2/07-2/28/2010. $24.01 increasing on 3/1/09 to $25.01 Ste 950 leased to Dartmouth College 10/1/07-9/30/2010. $24.50 increasing 10/1/08 to $25.50 and 10/1/09 to $26.50 Ste 1440, RLI Insurance Ste 1410 and 1480, Krohn & Croak Ste 1438, Monarch
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
52
Ste. 1400a, Michael Parish
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
Commercial Mortgage Finance
$65MM First Mortgage Loan
Citigroup (“Citi”) is offering a $65MM first mortgage loan. This mortgage loan provided refinancing on Montgomery Washington Tower, a 263,515 SF Class A office property located at 65 Montgomery Street in San Francisco, CA. Transaction Overview
•
In June 2006, Citi provided fixed-rate refinancing in the amount of $65MM ($247/SF), to be secured by Montgomery Washington Tower (the “Loan”). Proceeds from the loan were used to retire existing debt in the amount of $45.6MM (plus pre-payment charges of approximately $4MM), to buy-out the limited partnership for an amount of $14.7 and to cover closing costs. • The borrower originally developed the subject property in 1984, and the balance sheet for Washington Montgomery LP showed a aggregate cost basis of approximately $43.8MM as of 12/31/07, which included the following assets: building and improvements ($28.1MM), tenant improvements ($7.3MM), furniture, fixtures, & equipment ($1.6MM), and land ($6.8MM). The sponsor, Warren Spieker, also invested an additional $20MM of equity in the property for a total cost basis of $63.8MM. Loan Terms • The loan exhibits a 1.19x DSCR and 58.9% LTV. • 10-year term expiring June, 2016 • First 60 payments of interest only, followed by 30-year amortization • Locked out through and including the earlier of (i) June 5, 2010, or (ii) two years after the issue date of the REMIC trust established in connection with the final securitization involving the loan, followed by defeasance, then open for the last 3 payments. • Tax, Insurance and Replacement reserves are springing upon an event of default. • The borrower deposited $3MM in a segregated account at closing to be used only for the payment of leasing costs at the property. Property Description • The subject property consists of the first 18 floors of a 25 story building located at 655 Montgomery Street in San Francisco, CA (the “Property”). • The Property includes 257,863 SF of Class A office space on the 4th through 19th floors and retail space on the 1st floor and an approximately 24,900 SF, 125-space parking garage portion on the 2nd and 3rd floors of the 403,063 SF building. The subject is a condominium ownership. The property was developed by the current sponsorship in 1984. Building amenities include exceptional views, on site parking availability and a health club facility. • The Property is subject to a ground lease on 19.1% of the land. The ground lease was effective 8/1/1981 and expires 7/31/2080. There are no renewal options. The current annual ground rent is $208,080 NNN (paid monthly). The rent increases every 5 years by CPI and the next increase will be 8/1/2012. • The building is a condominium ownership and is one of two associations owning 655 Montgomery Street. The Property is the commercial condominium. The second is a residential condominium that consists of 33 residential units (approx. 100,000 SF) and a
health club and pool (shared with the commercial condominium) on the 20th through 26th floors. • The Property is 79.0% leased to 39 tenants. The largest tenant is Bank of America Securities (“BofA”) occupying 19.6% of net rentable area. The BofA lease expires in August 2010. The second largest tenant is Expedia, Inc. (“Expedia”) occupying 16.8% of net rentable area. The Expedia lease expires in June 2013. The third largest tenant is SuccessFactors occupying 6.4% of net rentable area. The SuccessFactors lease expires in August 2010. Location / Market • The Property is located within the downtown Financial District in San Francisco, CA. The Property is located within the Financial Disctrict office submarket. • Per the Summer 2008 TWR Office Outlook, the Financial District submarket consisted of 28,800,000 square feet, with a reported vacancy of 7.8% and average asking rents at $41.10 psf gross. • The Property was underwritten to a weighted average base rent of $31.24 psf, with a 20.2% vacancy factor. Performance Time Period NOI
2007
2008
T-12 3/09
UW
4,213,702
5,092,633
5,540,851
5,938,476
Sponsorship & Management • The borrowing entity is Montgomery-Washington Tower, LLC, a special purpose entity structured to be bankruptcy remote (the “Borrower”). The sponsors of the borrower are Warren E. Spieker, Jr. and Patrick J. Gilligan. • Mr. Spieker formed Spieker Properties in 1993 with a $400+ million IPO, with Goldman Sachs and Merrill Lynch as the lead underwriters. From 1993-2001, the portfolio grew from 11 to 42 million SF, with respective values of $800 million to over $6 billion. In July 2001, Equity Office Properties acquired Spieker Properties in a transaction valued at over $7.2 billion. At the time, it was the largest real estate company in the world. Mr. Spieker continues today as Managing Partner of Spieker Partners, with a focus on large scale projects and independent living, assisted living and skilled nursing care centers.
Capital Structure First Mortgage Loan
Approximate Face Amount
Cumulative As-Is LTV %
UW Cumulative DSCR
$65,000,000
58.9%
1.19x
The information and data contained herein (this “Information”) is made available by Citigroup Global Markets Realty Corp. (“CGMRC”) and/or affiliates thereof solely for review and use by prospective investors or purchasers in connection with their evaluation of potential investments in or purchases of potential mortgage loans or subordinate interests therein that are secured by commercial real properties, potential mezzanine loans that are secured by direct or indirect ownership interests in the borrowers under such mortgage loans, potential participation interests in such mortgage loans, mezzanine loans or portions thereof and/or securities that would evidence direct or indirect ownership interests in or that are directly or indirectly secured by such mortgage loans, mezzanine loans and participation interests. The review or use of this Information for any other purpose is strictly prohibited. Neither CGMRC nor any of its affiliates has verified any of this Information. Neither CGMRC nor any of its affiliates will make any representation or warranty, express or implied, as to the accuracy or completeness of all or any portion of this Information or have any liability for any representations (express or implied) contained in, or for any omissions from, this Information. This Information does not purport to be all-inclusive or to contain all of the information that may be material to a prospective investor’s or purchaser’s decision to invest or purchase. Each prospective investor or purchaser must make its own decision regarding the extent to which such prospective investor or purchaser should rely on this Information in considering a potential investment or purchase and must perform its own independent investigation and analysis of the transactions. This Information may be based upon third party information which reflects assumptions by such party and may not be indicative of the present or future circumstances of the commercial real properties that are the subject of this Information. If and when the words “expects”, “intends”, “anticipates”, “estimates” and analogous expressions are used in statements contained in this Information, such statements are forward-looking statements the accuracy of which is subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected (including, without limitation, the effects of general, regional and local economic conditions, real estate market conditions and governmental regulations and taxes and the risk of losses from terrorist activity, fires, floods and other natural disasters). Any forward-looking statements speak only as of their date. None of CGMRC, its affiliates or any other person or entity will have any liability for any change in events, conditions or circumstances on which any such forward-looking statement is based. This Information is strictly confidential and may not be disclosed to any person or entity without the express authorization of CGMRC.
MONTGOMERY WASHINGTON TOWER
Property Description: Property Name City/State Property Type Total SF / Adjusted SF (A) No. Parking Spaces Year Built Year Renovated Tot Phys Occ / Adj. Phys Occ a/o 4/09
Valuation: Acquisition Cost Appraised Value
FIXED-RATE LOAN UNDERWRITING
Underwriting Assumptions: Min. Econ. Vacancy/Credit Loss Management Fee Replacement Reserves PSF Sq. Ft. Override For RR NCF Scenario Generated
Montgomery Washington Tower San Francisco CA Office 263,678 125 1984 NAP 79.0% 0.0%
263,678 Ratio: 0.47
$0 $110,000,000
$0 PSF $417 PSF
CY Ended 12/05 Average Annual OccupancyB
NAP $ Amount
INCOME In-Place Base Rent a/o 4/09 Contractual Rent StepsC Potential Income from Vacant Space D ReimbursementsD Mark-to-Market Adjustment Other Income (Schedule A)E Total Gross Potential Income Economic Vacancy & Credit Loss Historical Total Rental Income (In lieu) F EGI Before Other Income Parking Other Income 2 Percentage Rent (Schedule B) Effective Gross Income
Sizing Parameters: Max LTV Max LTC Min In-Place DSCR Min pro forma DSCR 10 Year Treasury Spread (bps) Gross Coupon U/W Sizing Constant
79.0%
CY Ended 12/06 NAP
PSF / %
$ Amount
65.0% 65.0% 1.20 1.20 105 6.01% 7.20%
CY Ended 12/07 NAP
PSF / %
$ Amount
Loan Request: Requested Loan Loan Purpose Loan Type Loan Term (months) LTC LTV In-Place DSCR Pro Forma DSCR
20.2% <--Pro Forma 3.0% $0.20 0 Pro Forma
CY Ended 12/08 $ Amount
Fixed
120 0.0% 59.1% 1.19 1.22
$65,000,000 0.0% 59.1% 1.19 1.22
Trailing-12 3/09 NAP
PSF / %
Sustainable Valuation: NCF Haircut Adj. U/W NCF (Pro Forma) Cap Rate Prelim. Value Value Adj. Tot Sustainable Value LTV - Recommended Loan
$247 PSF
Refinance
Recommended Loan: Recommended Loan LTC LTV In-Place DSCR Pro Forma DSCR
NAP PSF / %
$65,000,000
$ Amount
$62,367,655 104.2%
$237 PSF $0 PSF $237 PSF
$247 PSF
Appraisal 12 mo. 5/08 NAP
PSF / %
2.0% $5,613,089 9.00% $62,367,655
$ Amount
Budget 12 mo. 12/09 NAP
PSF / %
$ Amount
In-Place Underwritten
Pro Forma U/W (Dec-10)
PSF / %
Economic: $ Amount
79.8% PSF / %
Economic: $ Amount
90.0% PSF / %
0.0%
$6,503,531 96,523 2,447,291 3,015,375 0 29,100 12,091,819 (2,447,291)
$31.24 $0.46 $44.11 $14.48 $0.00 $0.14 $45.86 20.2%
$6,503,531 177,675 2,447,291 3,022,338 (1,150,026) 29,100 11,029,908 (1,102,991)
$31.24 $0.85 $44.11 $14.52 ($5.52) $0.14 $41.83 10.0%
9,644,529 257,813 37,326 0 9,939,668
$45.86 171.92 $0.18 $0.00 $47.26
9,926,917 257,813 37,326 0 10,222,057
$41.83 171.92 $0.18 $0.00 $43.07
1
$8,285,084 0 0 3,422,559 0 0 11,707,643 0.0% 11,707,643 293,504 102,441 0 12,103,588
195.67
$6,602,341 0 0 2,927,717 0 0 9,530,058 0 0 9,530,058 273,840 67,000 0 9,870,898
0.0%
182.58
$4,994,121 0 0 2,654,331 0 0 7,648,452 0 0 7,648,452 276,922 75,304 0 8,000,678
0.0%
184.58
$5,810,669 0 0 2,748,543 0 0 8,559,212 0 0 8,559,212 272,392 71,060 0 8,902,664
$6,195,558 0 0 $2,866,083 0 0 9,061,641 0 0 9,061,641 $257,813 $66,426 0 9,385,881
0.0%
181.58
0.0%
171.92
$8,049,772 0 0 3,217,117 0 0 11,266,889 (1,647,323) 0 9,619,566 277,000 56,394 0 9,952,960
14.6%
184.67
$6,886,095 0 0 3,506,395 0 0 10,392,491 0 0 10,392,491 264,000 47,700
176.00
10,704,191
EXPENSES Management Fee Payroll & Benefits Cleaning Contract Services General Operating Expenses CAM Expenses Repairs & Maintenance Utilities Advertising & Marketing General & Administrative Legal & Professional Insurance Real Estate Taxes Ground Rent Other 1 Other 2 Total Operating Expenses
397,157 0 0 0 352,863 220,355 1,284,994 557,671 0 6,123 5,800 128,191 648,937 186,508 0 0 3,788,599
3.3% $0.00 $0.00 $0.00 $1.34 $0.84 $4.87 $2.11 $0.00 $0.02 $0.02 $0.49 $2.46 $0.71 $0.00 $0.00 $14.37
321,359 0 0 0 425,383 225,670 1,428,050 516,047 0 6,133 6,805 97,731 659,046 185,048 0 0 3,871,272
3.3% $0.00 $0.00 $0.00 $1.61 $0.86 $5.42 $1.96 $0.00 $0.02 $0.03 $0.37 $2.50 $0.70 $0.00 $0.00 $14.68
260,238 0 0 0 426,485 233,731 1,421,209 459,772 0 8,005 2,230 114,544 665,892 194,870 0 0 3,786,976
3.3% $0.00 $0.00 $0.00 $1.62 $0.89 $5.39 $1.74 $0.00 $0.03 $0.01 $0.43 $2.53 $0.74 $0.00 $0.00 $14.36
269,957 0 0 0 282,334 283,498 1,503,784 436,558 0 23,480 31,216 90,417 680,703 208,083 0 0 3,810,031
3.0% $0.00 $0.00 $0.00 $1.07 $1.08 $5.70 $1.66 $0.00 $0.09 $0.12 $0.34 $2.58 $0.79 $0.00 $0.00 $14.45
$284,874 $0 $0 $0 $244,228 $256,225 $1,515,578 $471,541 $0 $16,592 $67,627 $92,911 $687,371 $208,083 $0 $0 3,845,030
3.0% $0.00 $0.00 $0.00 $0.93 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.35 $2.61 $0.79 $0.00 $0.00 $14.58
298,589 0 0 0 0 188,539 1,213,879 490,717 0 439,063 0 108,474 1,259,383 208,080 0 222,400 4,429,124
3.0% $0.00 $0.00 $0.00 $0.00 $0.72 $4.60 $1.86 $0.00 $1.67 $0.00 $0.41 $4.78 $0.79 $0.00 $0.84 $16.80
276,430 0 0 0 351,070 252,592 1,494,076 590,864 0 3,000 0 112,494 701,033 208,080 0 0 3,989,638
2.6% $0.00 $0.00 $0.00 $1.33 $0.96 $5.67 $2.24 $0.00 $0.01 $0.00 $0.43 $2.66 $0.79 $0.00 $0.00 $15.13
298,190 0 0 0 351,070 256,225 1,515,578 471,541 0 16,592 67,627 114,910 694,038 215,422 0 0 4,001,193
3.0% $0.00 $0.00 $0.00 $1.33 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.44 $2.63 $0.82 $0.00 $0.00 $15.17
306,662 0 0 0 351,070 256,225 1,515,578 471,541 0 16,592 67,627 114,910 694,038 215,422 0 0 4,009,664
3.0% $0.00 $0.00 $0.00 $1.33 $0.97 $5.75 $1.79 $0.00 $0.06 $0.26 $0.44 $2.63 $0.82 $0.00 $0.00 $15.21
NET OPERATING INCOME
8,314,989
$31.53
5,999,626
$22.75
4,213,702
$15.98
5,092,633
$19.31
5,540,851
$21.01
5,523,836
$20.95
6,714,553
$25.46
5,938,476
$22.52
6,212,393
$23.56
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
51,654 1,010,220
$0.20 $3.83
0 0
$0.00 $0.00
52,736 293,745 3.0%
$0.20 $1.11
52,736 432,015 4.3%
$0.20 $1.64
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 0
$0.00 $0.00
0 1,061,874
$0.00 $4.03
0 0
$0.00 $0.00
346,481
$1.31
484,751
$1.84
$8,314,989
$31.53
$5,999,626
$22.75
$4,213,702
$15.98
$5,092,633
$19.31
$5,540,851
$21.01
$4,461,962
$16.92
$6,714,553
$25.46
$5,591,995
$21.21
$5,727,642
$21.72
Replacement Reserves Normalized TI/LC TI/LC as a % of EGI (less excl rent and pkg)
Historical Capital Expenses Total Capital Items NET CASH FLOW Net Cash Flow After DS DSCR on Recommended LoanG
1.78
1.28
0.90
1.09
1.18
0.95
1.43
$910,485 1.19
$1,046,132 1.22
GENERAL NOTES:
A B C D E F G
Adj. SF is net of excl. space such as pad space. Loan PSF, Value PSF, and RR PSF are based on Adj. SF. Tot Physical Occup. % is based on Tot SF, while Adj. Phys. Occup. % is based on Adj. SF; both occupancy calcs are net of non-rentable vacant space. If toggled, re-measured SF overrides the Adj. SF. Underwritten income PSF is physical-occupancy-adjusted; historical income PSF is physical-occupancy-adjusted to the extent physical occupancies are available, otherwise historical income PSF calculations are not shown; Parking income is per space per month. Contractual Steps represent (1) for In-Place NCF: avg. steps for credit tenants over the loan term and/or ann'lzd steps occurring within 6 months from the date of underwriting, and (2) for Pro Forma NCF: ann'lzd steps occurring by the Pro Forma stabilization date. Potential income from vacant space includes reimbursements from vacant NNN lease space as well as marginal grossed-up "Other Income" subject to underwritten vacancy. Represents in-place other income items that are subject to underwritten vacancy (e.g., contractual antenna lease payments). To the extent historical statements do not provide sufficient details, "Historical Total Revenue" line item is used in lieu of individual income line items (including Percentage Rent, if necessary). Historical DSCR is based on Net Operating Income; Underwritten DSCR is based on U/W NCF.
Montgomery Washington WIP 04-21-09
Notes
Cash Flow
4/24/2009 1:49 PM
2 3 4 5 6 7 8
9 10
11
12 13 14 15 16 17 18 19 20
21
22 23
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO CASH FLOW STATEMENT
1
2 3 4 5 6
7 8 9
10 11 12 13 14 15 16 17
18 19 20
21
22
The subject property is a Class A, 25-story, mixed use development comprised of office, retail, residential, and storage space. The building totals 263,678 SF, including three retail suites (8,291 SF), office space (249,614 SF), and 13 basement storage spaces (5,773 SF). In addition, the building includes a parking garage (125 spaces), a health club, and 33 residential condominium units located on the top five floors. The residential condominiums are not part of the subject collateral. The subject operating statements are prepared net of the residential contribution, which is 25% of the common operating expenses, such as insurance, security, window washing, engineering, etc. In-Place Base Rent is underwritten based on the Rent Roll dated 4/1/09. Borrower's rent roll includes rent paid by Nextel for a rooftop antenna. Nextel executed a 10-year lease, which expires on 4/25/10. The rent from Nextel is underwritten as Other Income. The In-place Contractual Rent Steps are underwritten per the actual increases scheduled to occur through 12/1/09. The Pro-forma Contractual Rent Steps are underwritten per the actual increases scheduled to occur through 12/1/10. Potential Rent from Vacant Space is underwritten per the appraiser's concluded market base rent for each floor. Reimbursements are underwritten based on the reimbursement schedules. All leases are written as triple net. The decline in underwritten reimbursements from 2005 is a result of an increase in vacancy. No Mark to Market adjustment has been taken in the In-Place underwriting scenario. The vast majority of the leases that are above market is the Bank of America space (19.6% of NRA). This rent was underwritten as a tenant default is not likely (Moody's A2; S&P A; Fitch A+), the lease does not expire until 8/31/10 and 70% of this space has been subleased by Bank of America. In the proforma analysis, all space was marked down to market, respresenting a $1,150,026 ($5.52/SF) haircut. According to Reis, the average asking rent for the submarket, as of Q4-08, was $49.14/SF, a 2.4% increase from an asking rent of $47.99/SF as of Q4-07 and a 20.6% increase from an asking rent of $40.76 as of Q4-06. As such, the property's above average in-place rent, which is currently 5.9% above market, was reduced to 5.8% below market. Since 1/08, the landlord has executed eleven leases representing 59,099 SF (22.4% of NRA) at an average gross rent of $41.91/SF which is just below the appraiser's weighted average concluded market rent of $43.60/SF. Other Income is underwritten based on the actual rent paid by Nextel for the aforementioned rooftop antenna. Economic Vacancy & Credit Loss is underwritten at 20.2% based on the subject's current economic vacancy. In the proforma scenario, a 10% vacancy factor was utilized. According to Reis, the average vacancy rate for the submarket was 7.8% in Q4-08. Parking Income is underwritten based on the Trailing-12 actual income. The parking garage includes 125 spaces and is managed by the Borrower. A contract has been executed with AMPCO Auto Parks, which operates the parking lot for the Borrower. This income is net of expenses, which includes a monthly payment to the operator and reimbursement for expenses. Other Income2 is underwritten based upon the Trailing-12 actual income figure less Nextel antenna income, which is underwritten above in Schedule A Other Income. Other Income consists of Health Club dues and miscellaneous income. Management Fees are underwritten at 3.0% of EGI, based on the management contract between the Borrower and Spieker-Gilligan #100, LP, an affiliate of the Borrower. The appraiser concluded that management fees in the market range from 3% to 4% and projected a 3% management fee. General Operating Expenses are underwritten based on the greater of Trailing-12 actual expense or 2009 budget. General Operating Expenses are reimbursable expenses comprised of on-site salaries, telephone, data processing, office supplies, postage, etc. CAM expenses are underwritten based on the greater of Trailing-12 actual expense or 2009 budget. CAM expenses are non-reimbursable expenses comprised of health club expenses and garage maintenance and garage real estate taxes. Repairs & Maintenance is underwritten based on the greater of Trailing-12 actual expense or 2009 budget. Repairs & Maintenance are reimbursable expenses comprised of repairs & maintenance, contract services, security, etc. Utilities are underwritten based on the Trailing-12 actual expense. Utilities are reimbursable expenses comprised of electricity, natural gas, water & sewer, and garbage collection. General & Administrative are underwritten based on Trailing-12 actual expense. General & Administrative is comprised primarily of tenant promotions and marketing. Legal & Professional is underwritten based on Trailing-12 actual expense less a one time charge of $146,087.61. The charge was for a lawsuit to prevent City College of San Francisco from building a 20 story building, which will block a corner of the view from the subject property. The partners decided to withdraw from the suit and the bill was paid in the final quarter of 2008. Historical expenses for this category was nominal ($2,230-$6,805) over prior 3 years. Insurance expense is underwritten per the actual insurance premium for the policy that expires on 10/01/09. Real Estate Taxes are underwritten based on the actual invoices for 2008/2009. The appraiser's projected real estate taxes are based on the concluded market value of $110,000,000. The subject property is currently assessed at $58,486,995 and per California Proposition 13, taxes cannot increase by more than 2% per year. Ground Rent is underwritten based on the average expected ground rent expense during the loan term. Three of the four parcels that comprise the site are owned fee simple by the current building ownership and the condominium owners as tenants in common. An undivided approximately 3,320.5 square feet (19.1 percent) of the central portion of the site is a leasehold, by virtue of an unsubordinated ground lease with a remaining term of 75 years and 4 months. The ground lease grants the tenant a Right of First Refusal to purchase the ground lessor’s interest, as well as a Purchase Option after August 1, 2024. There is also a “Put” option whereby the ground lessor can force the tenant to purchase the lease fee interest in the ground leased parcel any time after August 1, 1990. The ground rent is currently $208,080 per year and adjusts every five years based on the CPI increase. The next increase occurs in August 2012. Historically, 25% of the ground lease was paid by the management company and the operating statements only reflect 75% of the payment. Total Operating Expenses are underwritten at $15.17/SF including parking garage expenses and health club expenses totaling $0.82/SF, which are above the median total costs of $13.09/SF for office buildings located in downtown San Francisco and built after 1977, per the 2006 IREM Survey. The operating expenses do not include the portion (25%) of common operating expenses paid by the home owners association. Please note that underwritten total expenses are just above the actual expenses the property has exhibited over the last four years, which have consistantly ranged within a narrow band from $14.36/SF to $14.68/SF. Replacement Reserves are underwritten at $0.20/SF, which is nearly twice the engineer's recommendation of $0.12/SF.
Montgomery Washington WIP 04-21-09
CF Notes
4/24/2009 1:49 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO CASH FLOW STATEMENT
23
TI/LCs are underwritten at $1.11/SF (3.0% of EGI) and $1.64 (4.3% of EGI) for in-place and pro-forma, respectively. Assumptions used were- Tenant Improvements are underwritten at $10/SF new & $5 renewal for office and retail tenants. Leasing commissions are underwritten at 4% (new) and 2% (renewal). Lease terms are underwritten at ten years for all tenants. Leases that were greater than 20% below market were excluded from TI/LC calculations. As of April 21st, 2008, the Borrower's TI/LC Reserve Fund had a balance of $1,585,000, which credit was given to in the In-Place TI/LC calculation. This effectively lowered In-place TI/LC's from $1.49/SF (4.0% of EGI) to $1.11/SF (3.0% of EGI).
24
Montgomery Washington WIP 04-21-09
CF Notes
4/24/2009 1:49 PM
MONTGOMERY WASHINGTON TOWER
IN-PLACE RENT ROLL
Summary Statistics General Info:
Expense Recovery Assumptions:
Property Number Date of Underwriting Rent Roll As of
7018815 4/21/08 4/1/09
Underwriting Scenario
Recovery Method Recover Mgmt. Fee?
Tenant Classes:
In-Place
Vacancy Assumptions: Total NRSF Current Total Physical Vacancy Current Economic Vacancy Minimum Underwritten Vacancy Underwritten Vacancy*
263,678 21.0% 20.2% 20.2% 20.2%
Mark-to-Market Assumptions: Mark-up Below-Market Rents? Pro Forma Stabilization Date Underwriter has Overriden any Mark-downs?
2: Recovery Pool Over Base Year Stops Yes
No 12/31/2025 Yes
Tenant Class
Total Sq. Ft. Sq. Ft. % of Tot
Adj. Sq. Ft. Sq. Ft. % of Total
Avg. In-Place Rent PSF Base Gross
Avg. Gross Market Rent
Avg. U/W Rent PSF Base Gross
Total U/W Rental Income $ Amount % of Total
Yes
1
7,732
2.9%
7,732
2.9%
$40.17
$51.57
$42.18
$40.17
$51.57
$398,735
3.3%
No.
Adj. NRA
Vac / Occup.
TST Code
2
199,030
75.5%
199,030
75.5%
$31.45
$46.12
$43.79
$31.45
$46.12
$9,178,947
76.1%
1
Include
Occupied
Retail
None
3
1,440
0.5%
1,440
0.5%
$20.79
$26.21
$27.56
$20.79
$26.21
$37,747
0.3%
2 3 4 5 6 7
Include Include Include Include Include Include
Occupied Occupied Vacant Vacant Vacant Vacant
Office Basement Vacant Space Vacant Basement Vacant Retail NAP
None
4 5 6 7 8 9
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$2,326,390 $99,659 $21,242 $0 $0 $0
19.3% 0.8% 0.2% 0.0% 0.0% 0.0%
8
Include
Vacant
NAP
None
9 10
Include Include
Vacant Vacant
NAP NAP
None
Description
None None None None None
None
10
0
0.0%
0
0.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0
0.0%
Tot/Avg.
263,678
100.0%
263,678
100.0%
$34.31
$45.75
$43.72
$34.31
$45.75
$12,062,719
100.0%
Note: Averages in summary statistics include vacant space.
Unit G-1 *
Tenant Harpo's Café
NRSF
Tenant Class
Lease Start
Lease Expire
% of Adj. SF
285
1
5/1/04
10/31/10
0.1%
* Tommy Toy's
7,447
1
400
Bank of America Securities
4,556
2
410
Bank of America Securities
5,703
2
450
Bank of America Securities
5,333
2
500
Yates Advertising
3,965
540
Raven Communications
12/1/84
Rent Bumps
Adjusted Base Rent
U/W Recovery
Gross Rent
Market Rent
Mark-to-Mkt Adj.
U/W Gross Rent
Excluded from TI/LC
$
PSF
$
Date
$
PSF
$
PSF
$
PSF
PSF
Convention
$
PSF
$
PSF
U/W Base Rent PSF
U/W to Mkt. Differential**
$17,109
$60.03
$599
11/1/09
$17,707
$62.13
$3,873
$13.59
$21,581
$75.72
$47.00
Gross
$0
$0.00
$21,581
$75.72
$62.13
61.1%
0
1
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
2
0.0%
G-3
*
Base Rent a/o Apr-09
SF
Reason
Notes
11/30/14
2.8%
$292,922
$39.33
$292,922
$39.33
$84,233
$11.31
$377,155
$50.65
$42.00
Gross
$0
$0.00
$377,155
$50.65
$39.33
20.6%
0
3
1/1/02
8/31/10
1.7%
$191,580
$42.05
$191,580
$42.05
$73,619
$16.16
$265,199
$58.21
$40.15
Gross
$0
$0.00
$265,199
$58.21
$42.05
45.0%
0
4
3/12/96
8/31/10
2.2%
$218,916
$38.39
$218,916
$38.39
$92,210
$16.17
$311,126
$54.55
$40.15
Gross
$0
$0.00
$311,126
$54.55
$38.39
35.9%
0
4
9/1/96
8/31/10
2.0%
$234,108
$43.90
$234,108
$43.90
$86,261
$16.17
$320,369
$60.07
$40.15
Gross
$0
$0.00
$320,369
$60.07
$43.90
49.6%
0
4
2
8/1/05
7/31/09
1.5%
$70,577
$17.80
$70,577
$17.80
$57,891
$14.60
$128,468
$32.40
$40.15
Gross
$0
$0.00
$128,468
$32.40
$17.80
-19.3%
0
5
13,199
2
9/1/07
8/31/09
5.0%
$319,812
$24.23
$319,812
$24.23
$178,471
$13.52
$498,283
$37.75
$40.15
Gross
$0
$0.00
$498,283
$37.75
$24.23
-6.0%
0
41
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
600
Expedia (Hotwire)
17,147
2
5/1/08
6/30/13
6.5%
$454,396
$26.50
$15,947
5/1/09
$470,342
$27.43
$250,402
$14.60
$720,744
$42.03
$40.15
Gross
$0
$0.00
$720,744
$42.03
$27.43
4.7%
0
44
700
Expedia (Hotwire)
17,147
2
5/1/08
6/30/13
6.5%
$454,396
$26.50
$15,947
5/1/09
$470,342
$27.43
$250,402
$14.60
$720,744
$42.03
$40.15
Gross
$0
$0.00
$720,744
$42.03
$27.43
4.7%
0
44
800
Expedia (Hotwire)
10,062
2
5/1/08
6/30/13
3.8%
$266,643
$26.50
$9,358
5/1/09
$276,001
$27.43
$146,896
$14.60
$422,897
$42.03
$40.15
Gross
$0
$0.00
$422,897
$42.03
$27.43
4.7%
0
44
830
Computershare Investor Serv.
2,107
2
12/1/04
11/30/10
0.8%
$48,292
$22.92
$48,292
$22.92
$31,604
$15.00
$79,897
$37.92
$40.15
Gross
$0
$0.00
$79,897
$37.92
$22.92
-5.6%
0
*
*
0.0%
*
$0.00
0.0%
$0.00
8
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
9
860
Integrent
1,727
2
12/1/07
12/30/10
0.7%
$57,198
$33.12
$2,003
12/1/09
$59,202
$34.28
$26,027
$15.07
$85,229
$49.35
$40.15
Gross
$0
$0.00
$85,229
$49.35
$34.28
22.9%
0
45
810
The Space Place, Inc.
1,123
2
10/1/03
9/30/10
0.4%
$25,604
$22.80
$1,123
10/1/09
$26,727
$23.80
$16,397
$14.60
$43,124
$38.40
$40.15
Gross
$0
$0.00
$43,124
$38.40
$23.80
-4.4%
0
7
940
Watchtower Capital Management
1,976
2
2/1/07
2/28/10
0.7%
$49,420
$25.01
$49,420
$25.01
$27,864
$14.10
$77,283
$39.11
$43.15
Gross
$0
$0.00
$77,283
$39.11
$25.01
-9.4%
0
46
950
Dartmouth College
1,509
2
10/1/07
9/30/10
0.6%
$38,480
$25.50
$39,989
$26.50
$21,279
$14.10
$61,267
$40.60
$43.15
Gross
$0.00
$61,267
$40.60
$26.50
-5.9%
0
47
$1,509
10/1/09
$0
*
*
0.0%
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
*
*
0.0%
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
1000
Wilderness Society
6,819
2
10/1/07
9/30/14
2.6%
$195,842
$28.72
$6,887
10/1/09
$202,729
$29.73
$92,954
$13.63
$295,682
$43.36
$43.15
Gross
$0
$0.00
$295,682
$43.36
$29.73
0.5%
0
42
1010
Shoreline Pacific Eq
2,137
2
9/1/06
8/31/10
0.8%
$57,699
$27.00
$2,030
9/1/09
$59,729
$27.95
$33,091
$15.49
$92,821
$43.44
$43.15
Gross
$0
$0.00
$92,821
$43.44
$27.95
0.7%
0
31
1020
Vietnam Post
1,057
2
10/1/06
9/30/11
0.4%
$25,157
$23.80
$1,057
10/1/09
$26,214
$24.80
$16,360
$15.48
$42,573
$40.28
$43.15
Gross
$0
$0.00
$42,573
$40.28
$24.80
-6.7%
0
1075
The Basic Fund
1,826
2
2/1/09
5/31/12
0.7%
$28,120
$15.40
$28,120
$15.40
$0
$0.00
$28,120
$15.40
$43.15
Gross
$0
$0.00
$28,120
$15.40
$15.40
-64.3%
1,826
1060
Laidlaw & Co. (UK), Ltd.
1,869
2
9/1/08
8/31/11
0.7%
$50,089
$26.80
$2,149
9/1/09
$52,239
$27.95
$27,299
$14.61
$79,537
$42.56
$43.15
Gross
$0
$0.00
$79,537
$42.56
$27.95
-1.4%
0
1100
Bank of America Securities
5,108
2
10/11/99
8/31/10
1.9%
$242,892
$47.55
$242,892
$47.55
$82,543
$16.16
$325,435
$63.71
$43.15
Gross
$0
$0.00
$325,435
$63.71
$47.55
47.6%
0
4 &35
1101
Bank of America Securities
3,930
2
7/1/98
8/31/10
1.5%
$182,940
$46.55
$182,940
$46.55
$63,952
$16.27
$246,892
$62.82
$43.15
Gross
$0
$0.00
$246,892
$62.82
$46.55
45.6%
0
4 &34
1150
Bank of America Securities
3,415
2
7/5/98
8/31/10
1.3%
$158,964
$46.55
$158,964
$46.55
$55,029
$16.11
$213,993
$62.66
$43.15
Gross
$0
$0.00
$213,993
$62.66
$46.55
45.2%
0
4 &39
1190
Bank of America Securities
3,648
2
12/28/02
8/31/10
1.4%
$173,472
$47.55
$173,472
$47.55
$59,118
$16.21
$232,590
$63.76
$43.15
Gross
$0
$0.00
$232,590
$63.76
$47.55
47.8%
0
4 &36
1200
Mannion & Lowe
5,451
2
2/1/02
2/1/12
2.1%
$135,677
$24.89
$135,677
$24.89
$88,120
$16.17
$223,797
$41.06
$43.15
Gross
$0
$0.00
$223,797
$41.06
$24.89
-4.9%
0
10
1210
Dugstad & Associates
772
2
5/1/94
1/31/11
0.3%
$18,374
$23.80
$18,374
$23.80
$11,266
$14.59
$29,640
$38.39
$43.15
Gross
$0
$0.00
$29,640
$38.39
$23.80
-11.0%
0
11
1220
Guardian Life Insurance
5,237
2
4/1/07
3/31/12
2.0%
$132,130
$25.23
$132,130
$25.23
$76,519
$14.61
$208,649
$39.84
$43.15
Gross
$0
$0.00
$208,649
$39.84
$25.23
-7.7%
0
12
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
13
*
*
0.0%
32
Below-Market
33
1400a
Michael Parish (MTM)
274
2
12/1/06
4/30/09
0.1%
$5,069
$18.50
$5,069
$18.50
$4,429
$16.17
$9,498
$34.67
$43.15
Gross
$0
$0.00
$9,498
$34.67
$18.50
-19.7%
0
1440
RLI Insurance
2,020
2
1/1/08
12/31/13
0.8%
$54,540
$27.00
$54,540
$27.00
$28,484
$14.10
$83,024
$41.10
$43.15
Gross
$0
$0.00
$83,024
$41.10
$27.00
-4.7%
0
49
1400
Spieker Partners (MTM)
2,881
2
1/1/84
4/30/09
1.1%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$43.15
Gross
$0
$0.00
$0
$0.00
$0.00
0.0%
0
14
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0.00
0.0%
0
$40,728
$8.60
$78,081
$16.49
$118,809
$25.09
$43.15
Gross
$0
$0.00
$118,809
$25.09
$8.60
-41.9%
4,736
$41,400
$22.34
$26,027
$14.05
$67,427
$36.39
$43.15
Gross
$0
$0.00
$67,427
$36.39
$22.34
-15.7%
0
15
$70,073
$25.80
$37,181
$13.69
$107,254
$39.49
$43.15
Gross
$0
$0.00
$107,254
$39.49
$25.80
-8.5%
0
51
$52,704
$26.34
$18,219
$9.10
$70,923
$35.44
$43.15
Gross
$0
$0.00
$70,923
$35.44
$26.34
-17.9%
0
50
$609,197
$35.89
$249,116
$14.68
$858,312
$50.57
$50.15
Gross
$0
$0.00
$858,312
$50.57
$35.89
0.8%
0
40
31.0%
0
4 and 37
*
*
0.0%
1410
Krohn & Croak
4,736
1430
Nan T. McEvoy
1,853
2
1438
Monarch
2,716
2
1480
Krohn & Croak/Kennedy
2,001
2
1500
Successfactors
16,974
1600
Bank of America Securities
11,603
1600
Bank of America Securities
1910
Albourne America
1710
Hanscomb Faithful & Gould, Inc
3,784
1720
Bank of America Securities
4,421
1740
BVR Company
1,103
1900
Hodge Niederer & Cariani, LLC
5,755
A
Meganews (BASEMENT, MTM)
242
3
B
Steven Gruel (BASEMENT,MTM)
99
F
Jon Rubinstein (BASEMENT,MTM
209
9/1/06
21
6/30/09
1.8%
$40,728
$8.60
9/1/06
8/31/09
0.7%
$41,400
$22.34
10/1/06
9/30/11
1.0%
$67,357
$24.80
10/1/06
6/30/12
0.8%
$52,704
$26.34
2
9/1/07
8/31/10
6.4%
$588,489
$34.67
2
2/1/99
8/31/10
4.4%
$574,964
$49.55
$574,964
$49.55
$187,394
$16.15
$762,358
$65.70
$50.15
Gross
$0
$0.00
$762,358
$65.70
$49.55
3,845
2
2/12/99
8/31/10
1.5%
$190,535
$49.55
$190,535
$49.55
$62,093
$16.15
$252,628
$65.70
$50.15
Gross
$0
$0.00
$252,628
$65.70
$49.55
5,759
2
9/8/08
12/31/15
2.2%
$201,565
$35.00
$201,565
$35.00
$84,112
$14.61
$285,677
$49.61
$50.15
Gross
$0
$0.00
$285,677
$49.61
$35.00
-1.1%
0
2
9/1/99
8/31/09
1.4%
$45,792
$12.10
$45,792
$12.10
$61,349
$16.21
$107,141
$28.31
$50.15
Gross
$0
$0.00
$107,141
$28.31
$12.10
-43.5%
3,784
2
2/12/99
8/31/10
1.7%
$219,072
$49.55
$219,072
$49.55
$71,388
$16.15
$290,460
$65.70
$50.15
Gross
$0
$0.00
$290,460
$65.70
$49.55
31.0%
0
2
12/1/04
11/30/09
0.4%
$12,387
$11.23
$12,387
$11.23
$16,732
$15.17
$29,118
$26.40
$50.15
Gross
$0
$0.00
$29,118
$26.40
$11.23
-47.4%
1,103
2
11/1/04
8/31/10
2.2%
$161,543
$28.07
$173,053
$30.07
$93,028
$16.16
$266,081
$46.23
$50.15
Gross
$0
$0.00
$266,081
$46.23
$30.07
-7.8%
0
9/1/89
4/30/09
0.1%
$3,630
$15.00
$3,630
$15.00
$2,709
$11.20
$6,339
$26.20
$50.15
Gross
$0
$0.00
$6,339
$26.20
$15.00
-47.8%
242
3
12/1/06
4/30/09
0.0%
$900
$9.09
$900
$9.09
$1,133
$11.45
$2,033
$20.54
$23.00
Gross
$0
$0.00
$2,033
$20.54
$9.09
-10.7%
0
38
3
10/15/04
4/30/09
0.1%
$4,907
$23.48
$4,907
$23.48
$2,833
$13.55
$7,740
$37.03
$23.00
Gross
$0
$0.00
$7,740
$37.03
$23.48
61.0%
0
22
Montgomery Washington WIP 04-21-09
2
$2,716
$20,708
$11,510
10/1/09
9/1/09
9/1/09
In-Place Rent Roll
31.0%
Below-Market
0
50
4 and 37 26
Below-Market
17 4 &43
Below-Market
18 19
Below-Market
4/24/2009 1:50 PM
20
MONTGOMERY WASHINGTON TOWER
IN-PLACE RENT ROLL
Summary Statistics General Info:
Expense Recovery Assumptions:
Property Number Date of Underwriting Rent Roll As of
7018815 4/21/08 4/1/09
Underwriting Scenario
Recovery Method Recover Mgmt. Fee?
Tenant Classes:
In-Place
Vacancy Assumptions: Total NRSF Current Total Physical Vacancy Current Economic Vacancy Minimum Underwritten Vacancy Underwritten Vacancy*
263,678 21.0% 20.2% 20.2% 20.2%
Mark-to-Market Assumptions: Mark-up Below-Market Rents? Pro Forma Stabilization Date Underwriter has Overriden any Mark-downs?
2: Recovery Pool Over Base Year Stops Yes
No 12/31/2025 Yes
Tenant Class
Total Sq. Ft. Sq. Ft. % of Tot
Adj. Sq. Ft. Sq. Ft. % of Total
Avg. In-Place Rent PSF Base Gross
Avg. Gross Market Rent
Avg. U/W Rent PSF Base Gross
Total U/W Rental Income $ Amount % of Total
Yes
1
7,732
2.9%
7,732
2.9%
$40.17
$51.57
$42.18
$40.17
$51.57
$398,735
3.3%
No.
Adj. NRA
Vac / Occup.
TST Code
2
199,030
75.5%
199,030
75.5%
$31.45
$46.12
$43.79
$31.45
$46.12
$9,178,947
76.1%
1
Include
Occupied
Retail
None
3
1,440
0.5%
1,440
0.5%
$20.79
$26.21
$27.56
$20.79
$26.21
$37,747
0.3%
2 3 4 5 6 7
Include Include Include Include Include Include
Occupied Occupied Vacant Vacant Vacant Vacant
Office Basement Vacant Space Vacant Basement Vacant Retail NAP
None
4 5 6 7 8 9
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
50,584 4,333 559 0 0 0
19.2% 1.6% 0.2% 0.0% 0.0% 0.0%
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$45.99 $23.00 $38.00 $0.00 $0.00 $0.00
$2,326,390 $99,659 $21,242 $0 $0 $0
19.3% 0.8% 0.2% 0.0% 0.0% 0.0%
8
Include
Vacant
NAP
None
9 10
Include Include
Vacant Vacant
NAP NAP
None
Description
None None None None None
None
10
0
0.0%
0
0.0%
$0.00
$0.00
$0.00
$0.00
$0.00
$0
0.0%
Tot/Avg.
263,678
100.0%
263,678
100.0%
$34.31
$45.75
$43.72
$34.31
$45.75
$12,062,719
100.0%
Note: Averages in summary statistics include vacant space.
Unit
Tenant
NRSF
Tenant Class
Lease Start
Lease Expire
% of Adj. SF
Base Rent a/o Apr-09 $
PSF
Rent Bumps $
Adjusted Base Rent
Date
U/W Recovery
Gross Rent
Market Rent
Mark-to-Mkt Adj.
U/W Gross Rent
$
PSF
$
PSF
$
PSF
PSF
Convention
$
PSF
$
PSF
U/W Base Rent PSF
U/W to Mkt. Differential**
Excluded from TI/LC SF
H
Andy Sills (BASEMENT, MTM)
103
3
9/18/03
4/30/09
0.0%
$1,800
$17.48
$1,800
$17.48
$1,133
$11.00
$2,933
$28.48
$23.00
Gross
$0
$0.00
$2,933
$28.48
$17.48
23.8%
0
C
Ed Winger
197
3
6/1/08
5/31/10
0.1%
$4,531
$23.00
$4,531
$23.00
$0
$0.00
$4,531
$23.00
$23.00
Gross
$0
$0.00
$4,531
$23.00
$23.00
0.0%
0
2,482
2
1230
9/1/08
8/31/13
0.9%
$76,942
$31.00
$2,681
9/1/09
K
Hotwire
300
3
12/1/08
11/30/10
0.1%
$7,200
$24.00
$300
12/1/09
E
Itocho International
Sheridan Forbes
290
3
11/1/08
11/1/11
0.1%
$6,670
$23.00
7.8 yrs
79.0%
$6,503,531
$31.24
Total Occupied (50)
208,202
Wtd Avg Term:
$96,523
$0.46
$79,623
$32.08
$36,252
$14.61
$115,874
$46.69
$43.15
Gross
$0
$0.00
$115,874
$46.69
$32.08
8.2%
0
25
$25.00
$0
$0.00
$7,500
$25.00
$23.00
Gross
$0
$0.00
$7,500
$25.00
$25.00
8.7%
0
27
$23.00
$0
$0.00
$6,670
$23.00
$23.00
Gross
$0
$0.00
$6,670
$23.00
$23.00
0.0%
0
28
$6,600,053
$31.70
$3,015,375
$14.48
$9,615,429
$46.18
$43.61
Gross
$0
$0.00
$9,615,429
$46.18
$31.70
5.9%
11,691
Vacant
1,304
4
0.5%
$52,356
$40.15
$52,356
$40.15
$0.00
$52,356
$40.15
$40.15
Gross
$52,356
$40.15
$40.15
Vacant
16,678
4
6.3%
$836,402
$50.15
$836,402
$50.15
$0
$0.00
$836,402
$50.15
$50.15
Gross
$836,402
$50.15
$50.15
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$50.15
Gross
$0
$0.00
$0.00
$0
$0.00
$221,061
$50.15
$50.15
Gross
$221,061
$50.15
$50.15
$126,645
$43.15
$43.15
$43.15
1950
Vacant
4,408
4
1.7%
$221,061
$50.15
$221,061
$50.15
960
Vacant
1.1%
$126,645
$43.15
$126,645
$0
2,935
4
$43.15
$0
$0.00
$43.15
Gross
$126,645
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
G
Vacant (BASEMENT)
319
5
0.1%
$7,337
$23.00
$7,337
$23.00
$0
$0.00
$7,337
$23.00
$23.00
Gross
$7,337
$23.00
$23.00
L
Vacant (BASEMENT)
987
5
0.4%
$22,701
$23.00
$22,701
$23.00
$0
$0.00
$22,701
$23.00
$23.00
Gross
$22,701
$23.00
$23.00
D
Vacant (BASEMENT)
842
5
0.3%
$19,366
$23.00
$19,366
$23.00
$0
$0.00
$19,366
$23.00
$23.00
Gross
$19,366
$23.00
$23.00
I
Vacant (BASEMENT)
431
5
0.2%
$9,913
$23.00
$9,913
$23.00
$0
$0.00
$9,913
$23.00
$23.00
Gross
$9,913
$23.00
J 840
$0.00
$23.00
Vacant (BASEMENT)
341
5
0.1%
$7,843
$23.00
$7,843
$23.00
$0
$0.00
$7,843
$23.00
$23.00
Gross
$7,843
$23.00
$23.00
Vacant (The Basic Fund)
801
4
0.3%
$34,563
$43.15
$34,563
$43.15
$0
$0.00
$34,563
$43.15
$43.15
Gross
$34,563
$43.15
$43.15
1,413
5
0.5%
$32,499
$23.00
$32,499
$23.00
$0
$0.00
$32,499
$23.00
$23.00
Gross
$32,499
$23.00
$23.00 $0.00
M
Vacant (BASEMENT)
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
*
*
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
$43.15
Gross
$0
$0.00
$0.00
1240
Formerly Laidlaw
G-2
Formerly- Under The Sun
* 900
2,807
4
1.1%
$121,122
$43.15
$121,122
$43.15
$0
$0.00
$121,122
$43.15
$43.15
Gross
$121,122
$43.15
$43.15
559
6
0.2%
$21,242
$38.00
$21,242
$38.00
$0
$0.00
$21,242
$38.00
$38.00
Gross
$21,242
$38.00
$38.00
$0
$0.00
$0.00
10,640
4
$43.15
Gross
$459,116
$43.15
$43.15
* Formerly-Urchin Partners, LLC
23
$7,500
850
*
Notes
$6,670
1800 *
Reason
0.0%
$0
$0.00
$0
$0.00
$0
$0.00
$0
$0.00
4.0%
$459,116
$43.15
$459,116
$43.15
$0
$0.00
$459,116
$43.15
1005
Formerly-CMT Corp
2,214
4
0.8%
$95,534
$43.15
$95,534
$43.15
$0
$0.00
$95,534
$43.15
$43.15
Gross
$95,534
$43.15
$43.15
30
1700
Formerly-GCA Strategies
7,211
4
2.7%
$311,155
$43.15
$311,155
$43.15
$0
$0.00
$311,155
$43.15
$43.15
Gross
$311,155
$43.15
$43.15
16
1050
Formerly-George Wolff
1,203
4
0.5%
$51,909
$43.15
$51,909
$43.15
$0
$0.00
$51,909
$43.15
$43.15
Gross
$51,909
$43.15
$43.15
1400b
Formerly-Hogland Bogart (MTM)
383
4
0.1%
$16,526
$43.15
$16,526
$43.15
$0
$0.00
$16,526
$43.15
$43.15
Gross
$16,526
$43.15
$43.15
Total Vacant (18)
55,476
18
21.0%
$2,447,291
$44.11
GROSS POTENTIAL INCOME
263,678
68
100.0%
$8,950,821
$33.95
$96,523
$0.37
$2,447,291
$44.11
$0
$0.00
$2,447,291
$44.11
$44.11
Gross
$9,047,344
$34.31
$3,015,375
$11.44
$12,062,719
$45.75
$43.72
Gross
$0
$0.00
$2,447,291
$44.11
$44.11
$12,062,719
$45.75
$34.31
11,691
* Represents the default u/w vacancy factor applied to non-excluded income (i.e., income not excluded from u/w vacancy). **U/W-to-market differential is calculated as follows: (1) for gross leases, [(Tot. u/w rent - market rent)/(market rent)]; for net leases, [(Base u/w rent - market rent)/(market rent)].
Montgomery Washington WIP 04-21-09
In-Place Rent Roll
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
1 2 3
4
5
6 7 8
9
10
11
12 13
14 15
16
Harpo's Cafe - Lease expired 10/31/2007. Tenant renewed for three years at $58/SF and 3.5% annual increase. There are no TI/LC. Tommy Toy's - Lease was assigned to Tai Ming Co. Inc. on 5/11/1984. Lease ends 11/30/2014. Rent increases 5%/year per original lease. Percentage rent is excess of 6% sales over AMR. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. Tenant must continuously operate and has no go-dark rights. There is no remaining free rent. Premises are leased in "As-is" condition. Lease is guaranteed by Tommy Toy per Amendment. Bank of America Securities - Tenant is NationsBanc Montgomery Securities LLC. NOTE: All Bank of America Units were added to the original lease dated 4/5/1995 by 28 amendments and are all subject to the same lease terms. There are no rent increases for the remainder of the terms. As of 1/24/08 the tenant uses suites 400, 410, and 450 as a fitness center. Tenant has four three-year options to extend all of the terms with 270 days notice. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Yates Advertising - Original Lease ended 7/31/2008. Tenant renewed for 1 year at $17.80 NNN. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premsies are leased in "As-is" condition. The Space Place, Inc. - Lease originally ended 9/30/2007. Signed 2 yr extension at $22.80 and $23.80. Computershare Investor Serv. - Lease expired 11/30/2007. Tenant exercised its one, three-year option through 11/20/2010 at $22.25/SF, up from an original rent of $10.10/SF. Annual increases to $22.92 and $23.61. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. The Basic Fund - Lease originally ended 5/31/2007. The tenant renewed for one year. The tenant renewed for another year through 5/09. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Mannion & Lowe - Lease originally ended 2/1/2007 and extended five years to 2/1/12. There are no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Dugstad & Associates - Lease originally ended 1/31/08 and was extended three years to 1/31/2011 atv $22.80, $23.80 and $24.80 There are no remaining options to extend the term. Tenant pays pro-rata share (increased to .303%) (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 180 days notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Ste 1220, Guardian Life Insurance. Suite 1220 (5,237sf). Tenant is Guardian Life Insurance from 4/1/07-3/31/2012 at $23.23psf and $1 annual increases. Tenant has one five-year option to extend term. TI/$25psf - LC/$11.25psf Laidlaw & Co. (UK), Ltd. - Lease ends 7/31/2008. Tenant has one two-year option to extend the term at $32,040/year and one three-year option at FMV with 180 days notice. Tenant pays prorata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. LANDLORD HAS INDICATED TENANT WILL EITHER EXTEND 3 YRS OR MOVE TO STE 1075. Suite 1400 is currently occupied by the management company, which is either the Borrower or an affiliate of the Borrower. The management company does not pay rent or reimbursables. Nan Tucker McEnvoy. Lease extended 25 months to 8/31/2009. There are no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate if physically unable to operate business (6/15/04 extension). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. GCA Strategies Inc. Original 5-year lease extended five years to 2/28/2007. Lease was extended again by six months to 8/31/08. Tenant has moved out.
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
17
18
19
20
21
22
23
24
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51
Faithful & Gould Inc. Lease ends 8/31/2009. Tenant has one five-year option to extend the term with 120 days notice. Extension rent is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate after 8/31/07 with nine months notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. BVR Company - Lease originally ended 11/30/2007. There are no rent increases for the remainder of the term. Tenant exercised its one two-year option to extend the term with 180 days notice. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Lease may terminate upon Tenant's death with payment of three months rent (Addendum Sec. 3). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Hodge Niederer & Cariani, LLC - Lease ends 8/31/2010. Rent increases by CPI on 9/1/08 ($161,544 cap) and on 9/1/09 ($173,052 cap). Tenant has one five-year option to extend the term with 120 days notice. Extension rnt is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Security deposit is $25,000 letter of credit. Meganews - Month-to-month tenant. There were no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: None. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Hogland Bogart + Bertero - Tenant is HBB Management Co. Lease has been month-to-month since 4/1/2006. There are no rent increases. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 30 days notice. CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Jon Rubinstein - Lease ends 10/14/2007. Rent increases by CPI on 10/15/06. Tenant has exercised one two-year option to extend the term with 90 days notice. Extension rent is at FMV. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with six months notice (Addendum Sec. 3). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Premises are leased in "As-is" condition. Andy Sills - Month-to-month tenant. There were no rent increases for the remainder of the term. There are no remaining options to extend the term. Tenant pays pro-rata share (grossed to 100% occupancy) of operating expenses (includes RET, insurance, and 3% of building rent mgmt fee). TERMINATION: Tenant may terminate at-will with 30 days notice (Addendum Sec. II). CO-TENANCY: None. There is no continuous operation clause and Tenant has no go-dark rights. There is no percentage rent/reporting clauses or remaining free rent. Suites 900 and 920 and a portion of ste 970 are leased by Urchin Partners, LLC as tenant (they were a subtenant in ste 900 at $25/SF and in suite 920 at $22.50/SF). The lease commencement date is 9/1/06 and expiration date is 8/31/2011. For years 1 through 3 rent is $29.89 psf NNN. For years 4 and 5 rent is $32.89 psf NNN. T will have 1 - 5 yr renewal option at FMV with 120 day notice to exercise. Space will be as is with no TI and no commission Itocho Int. lease effective 9/1/08. 5 yrear term. Base rent 0 mths 1-2, $31PSF mths 3-12, $32.08 PSF mth 13-24, $33.20PSF mths 25-36, $34.36PSF mths 37-48, $35.57 PSF mths 49-60. NNN tenant pro-rata .975%. Minor TI work ($ not specified). No extension options. Abourne America. 7 yr term. Lease signed 9/8/08. commencement 1/1/09. $35 NNN, escalating at approx 3.5% per yr ($36.23, $37.50, $38.81, $40.17, $41.58 and $43.04). 1 five year renewal option at market. $20 TI work letter.
Ste 1005, CMT Corp -vacant Ste 1010 Shoreline Pacific. Original lease 9/1/06-8/31/08. Renewed 2 yrs. $27NNN and $27.95 Ste 1020 , Vietnam Post Original lease 10/1/06-9/30/08. renewed 3yrs $ 23.80 NNN, $24.80, $25.80 Ste 1050 , George Wolff Original lease 10/1/06-9/30/08. Renewed through 12/08, will be moving out. Ste. 1101 leased to BofA is DARK Ste 1100 (5,108 SF) is sublet to IBM from 10/1/01-8/31/10 at$38psf, 2001 base yr, rent increase 10/06 to $42psf Ste 1190 leased to BofA is DARK Ste 1600 and 1650 (1,548 SF) is sublet to Xythos Software, Inc from 9/1/05-8/31/2010 at $25psf, 2006 base yr Basement Ste B, Steven Gruel Ste 1150 is leased to BofA and subleased to Jones Lang LaSalle (the facility manager for the bank). Ste 1500. Tenant is SuccessFactors at 3.5% annual increases. Lease terms are three years. TI/$18psf - LC/$6.25psf. Ste 540 (13,199 SF) tenant is Raven Communications with $1 annual increase. Lease terms are two years. TI/$1.75psf - LC/$3.00psf. Ste. 1000 (6,819 SF) Wilderness Society has 3.0% annual rental increases. First month's rent free. Lease terms are 7 years. TI/$33PSF - LC/$15psf. Ste 1720 is leased to BofA and subleased gto Catalyst/Black Bag Advertising thru 8/31/10 St 600, 700 and 800 are leased to Hotwire (Expedia) 5/08-6/13. First yr $26.50 PSF, annual increases to $27.43,$28.39,$29.38,$30.41,$31.47. St 860 leased to Integrent. 3 yrs 12/1/07-12/31/2010. St 940, leased to Watchtower Capital Mgmt 2/07-2/28/2010. $24.01 increasing on 3/1/09 to $25.01 Ste 950 leased to Dartmouth College 10/1/07-9/30/2010. $24.50 increasing 10/1/08 to $25.50 and 10/1/09 to $26.50 Ste 1440, RLI Insurance Ste 1410 and 1480, Krohn & Croak Ste 1438, Monarch
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
MONTGOMERY WASHINGTON TOWER FOOTNOTES TO RENT ROLL
52
Ste. 1400a, Michael Parish
Montgomery Washington WIP 04-21-09
IP RR Notes
4/24/2009 1:50 PM
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