INDIVIDUAL MORTGAGE LOANS
(PRINCIPAL COMMERCIAL FUNDING, LLC - PWR13)
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REP. NO. 4 - LIEN: VALID ASSIGNMENT
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LOAN NO. - 754799 (K-MART PLAZA)
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EXPLANATION:
The survey for the Mortgage Loan shows that there are 883 parking spaces
with the ability to add an additional 63 parking spaces. The current
parking requirement is estimated to be 1,053. The zoning provisions provide
that if a casualty is greater than 60%, then the property would need to be
built in compliance with current code. The LTV for the Mortgage Loan is
63.3%.
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REP. NO. 12 - ENVIRONMENTAL CONDITIONS
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LOAN NO. - 754799 (K-MART PLAZA)
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EXPLANATION:
The Phase II was completed on September 26, 2005. The Mortgage Loan was
previously the site of a dry cleaning facility and contains dissolved PCE
contaminated soil and groundwater. The Mortgage Loan has been entered into
the Florida Department of Environmental Protection Drycleaning Solvent
Cleanup Program (the "Program") and will be investigated and cleaned up by
the state under the Program. The Florida Department of Environmental
Protection has given the Property a score of 92. At this time, only sites
with scores of 117 and higher are being tasked for assessment and
remediation. As of June 2006, the Mortgage Loan is ranked #365 out of 1,321
sites. The Phase II was completed on September 26, 2005.
LOAN NO. - 755098 (0000 XXXXX XXXXXXXXXXXX XXXXX)
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EXPLANATION:
The Mortgaged Property had two 12,000 gallon gasoline UST's that were moved
from the site in 2004. Ground water testing detected contamination of
benzene at 460 ppb and of MTBE at 3,200 ppb. The South Carolina Department
of Health & Environmental Control ("SCDHEC") identified Spinx Company, a
prior operator ("Spnix"), as the responsible party of the site. The site
entered the State Underground Petroleum Environmental Response Bank
("SUPERB Act") in August of 2004. The SUPERB Act requires responsible
parties to pay the first $25,000 of costs and the fund will pay up to $1
million in remediation costs. The SUPERB Fund is funded by proceeds from
gasoline sales. According to the SUPERB Act, "A person who acquires title
to any property on which an underground storage tank has been removed is
not responsible for site rehabilitation actions other than necessary
abatement
actions to eliminate any imminent threat to human health, safety or the
environment." The SCDHEC required Spinx to do a Tier I Assessment to detail
groundwater flow direction and rates and determine whether any sensitive
receptors would be impacted. This Tier I Assessment was due on February 28,
2006. This has not yet been received, because on January 13, 2006 Spinx
filed an appeal with the SCDHEC on the grounds that the former
owner/operator had installed four observation xxxxx around the site's tank
pad in 1998 during original construction. Spinx believes the storm water
runoff from the parking lot and an adjacent Pleasantburg Drive is the
source of the detected contamination. The LTV on the Mortgage Property is
58.3% and Inland American Real Estate Trust is on the hook for the
environmental carveouts.
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REP. NO. 17 - LOCAL LAW COMPLIANCE
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LOAN NO. - 754799 (K-MART PLAZA)
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EXPLANATION:
The Mortgage Loan has a legal non-conforming use because the property is
170 spaces short of the 1,053 required by the code. The survey for the Loan
shows that there is sufficient space to add the necessary spaces if
necessary. The zoning provisions provide that if a casualty is greater than
60%, then the property would need to be built in compliance with current
code. The LTV for the Mortgage Loan is 63.3%.
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REP. NO. 34- SINGLE PURPOSE ENTITY
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LOAN NO. - 754330 (BRANDYWINE & FOUNTAIN TERRACE APARTMENTS)
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EXPLANATION:
The Borrower is comprised of four entities and three are not single purpose
entities. Xxxxxx Xxx Xxxxxx and Xxxxxx Xxxxxx are husband and wife and hold
title to Fountain Terrace apartments as individuals. Brandywine Apartments
are owned by Sharma Estates LP (80%) and Brandywine Gardens, Inc. (20%).
Brandywine Apartments is a single purpose entity, but Brandywine Gardens,
Inc. is not. Brandywine Gardens, Inc. is controlled by Xxxxxx Xxx Xxxxxx.
The LTV is 47% and the loan is structured on a 15 year amortization.
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REP. NO.44- OPERATING STATEMENTS
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LOAN NO. - 754493 (ONE CITY CENTER)
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EXPLANATION:
The Mortgage Loan does not require quarterly operating statement and rent
rolls. The property is 48% leased to Georgian Bank until 8/13/2016 and a
tenant related to the borrowing entity takes another 26% of the space until
6/30/2013.
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