Docstoc

Destination

Document Sample
Destination Powered By Docstoc
					SUBMISSION FORMS
UnitTypes BorrowerType             PropertyType     SignatoryType       Yes/No

Select from list Select from list                                        Y
                                    Select from list Select signatory type es/No
                 Individual (s)
Bachelor (no kitchen)               Office           Borrower            Yes
                 LLC
Single (w/kitchen)                  Anchored Retail Guarantor            No
1 BR / 1 BA      Corporation        Unanchored Retail                    N/A
2 BR / 1.5 BA Gen Partnership Light Industrial
2 BR / 2 BA      Limited PartnershipWarehouse
2 BR+Den / 1 BA  Revocable Trust Medical Office
                  BA
2 BR+Den / 1.5Irrevocable Trust Self Storage
2 BR+Den / 2 BA  Other              Single Tenant Retail
2 BR+Loft / 1 BA                    Single Tenant Industrial
2 BR + Loft / 1.5 BA                Single Tenant Office
2 BR+ Loft / 2 BA                   Special Purpose
2 BR / 1.75 BA
3 BR / 1 BA
3 BR / 1.5 BA
3 BR / 1.75 BA
3 BR / 2 BA
4 BR / 2 BA
4 BR / 3 BA
COMMERCIAL
Single Wide
Double Wide
add'l configurations

INCOME-EXPENSES                                     RENT ROLL
Income Sources                                      Lease Type

Select from list                                    Select
RE Tax Reimbursements                               NNN
Insurance Reimbursement                             Mod. Gross
CAM / Insurance                                     Gross
CAM
Utility Reimbursement
Mgmt Reimbursements
Percentage Rents
Miscellaneous
Storage
Parking
Vending
Billboard Sign
Other Income - 1
Other Income - 2

UW SUMMARY
                                     PURPOSE OF
                                     LOAN
                                     REQUEST /
Loan                                 USE OF          Cash-Out
Officers       Underwriters          FUNDS:          Purpose:          IMPOUNDS

Select from list Select from list    Click Here      Click Here        Select from list
Ed Ho            Robert Farrington                   Other Investments Tax & Insurance
                                     Purchase - 1031 Exchange
Katrina Ames Susan Froboese                                            Taxes Only
                                     Purchase - Cash Purchase Real Estate
Emily Luna       Susan Johnson                       N/A
                                     Rate/Term Refinance               Insurance Only
Bill Ulloa       Mike Payne          Cash-Out Refinance                None
                 Daniel Shepatin
                 Craig Tanaka




               f
LoanPrograms       KFCU Fee      Recourse    Adj Frequency    Rate Builds Signers    Yes/No2

Select from List Select from List Full      Select from list                             List
                                                              Select from listSelect fromYes/No
3-Yr Fixed                 0.00% Partial    Ea 6 mo. Beg 37th                 Robert     Yes
                                                              Loan $500K - $1MM Farrington, Director-Underwriting Man
5-Yr Fixed                                  Ea 6                              Paul       No
                           1.00% NR w/ Carve-outs mo. Beg 61stProgram Exception Cleary, VP-Business Services
10-Yr Fixed                0.50%            Ea 6 mo. Beg 121st                           N/A
                                                              Single Tenant Ed Resendez, SVP/Chief Lending Officer
10-Yr Fixed (5+5)          0.25%                              Owner-Occupied  Simone Lagomarsino, President & CEO
9-Yr Fixed (3+3+3)                                            Location/Population
10-Yr Hybrid I/O                                              Interest Only Art Hickson, VP-Mortgage Lending
                                                                               II
                                                              Conduit BusterJohn Schooner, VP-Consumer & Collections
                                                              Other




RATE LOCK REQUEST                                             LOAN STATUS NOTIFY
PrePayment                       LoanPurpose                  KFCU_Fee_Select

3.2.1                                                         KFCU Fee
3.2.1.1.1                        Purchase
3.3.2.2.1.1.0                    Refinance R&T
3.3.3.2.2.2.1.1.1.0              Refinance Cash Out
2.00.1.50.1.000
5 Yr L/O, then 5,4,3,2,1
5.4.3.2.1
5.5.4.4.3.3.2.2.1.1
Neighborhood                          Property                                      UW
Occupancy          Loan Source        Condition    Yes/No TBD          Index Type   Signers

Select from list   Select from list                 Select from list
                                      Select from list                 6 mo. LIBOR
Stable             Direct             Good          Yes                Other 1     Robert Farrington, Director-Underwriting Man
Increasing         Wholesale                        No
                                      Good to Average                  Other 2     Paul Cleary, Vice President
Decreasing         Correspondent      Average       Unknown                        Ed Resendez, Sr. VP
                                                    TBD
                                      Average to Fair
                                      Fair
                                      N/A
            Mkt Status

            Not Available
            RED
            YELLOW
            GREEN
agomarsino, President & CEO

on, VP-Mortgage Lending
ooner, VP-Consumer & Collections
rrington, Director-Underwriting Manager
ry, Vice President
       States



AL     Alabama
AK     Alaska
AZ     Arizona
AR     Arkansas
CA     California
CO     Colorado
CT     Connecticut
DE     Delaware
FL     Florida
GA     Georgia
 HI    Hawaii
 ID    Idaho
  IL   Illinois
 IN    Indiana
 IA    Iowa
KS     Kansas
KY     Kentucky
LA     Louisiana
ME     Maine
MD     Maryland
MA     Massachusetts
 MI    Michigan
MN     Minnesota
MS     Mississippi
MO     Missouri
MT     Montana
NE     Nebraska
NV     Nevada
NH     New Hampshire
NJ     New Jersey
NM     New Mexico
NY     New York
NC     North Carolina
ND     North Dakota
OH     Ohio
OK     Oklahoma
OR     Oregon
PA     Pennsylvania
 RI    Rhode Island
SC     South Carolina
SD     South Dakota
TN     Tennessee
TX     Texas
UT      Utah
  VT    Vermont
  VA    Virginia
 WA     Washington
 WV     West Virginia
  WI    Wisconsin
 WY     Wyoming
  AS    American Samoa
 DC     District of Columbia
 FM     Federated States of Micronesia
 GU     Guam
 MH     Marshall Islands
 MP     Northern Mariana Islands
 PW     Palau
 PR     Puerto Rico
   VI   Virgin Islands
Comments



 Import New Loan Data for:

Shortcut: Control-Shift-I


             Street Address
                        City
                      State
                        Zip


               Loan Number
               Loan Amount

               Account Rep
                     Analyst
                 Processor
         Loan Adminstrator
                Underwriter
                LOI Signoff
      Final Approval Signoff


               Loan Number
                       etc.
                       etc.
                       etc.
User
                                     Commercial Submission Form
                                                                                                                                                                                      Production v 1.9

                                               L O A N               S U B M I S S I O N                                F O R M
                                                                        123 Main St., Anytown CA.xls


              Property Type                                                                     Date Prepared                         Broker ID#:
              Borrower                                                                              Broker Co
             Guarantor                                                                         Contact Person
             Guarantor                                                                                Address 0
             Guarantor                                                                        City / State / Zip 0                                        0               0
             Guarantor                                                                                  Phone                                                   ext.
             Guarantor
    Contact Street Address                                                                                FAX
           City / State / Zip                                                                  E-mail address



                                 Purchase                                                                         Refinance
                                                                         Ratios
                Sales Price                                              #DIV/0!                 Original Cost                            Date Acquired
                Cash Down $0                                             #DIV/0!                 Existing Debt
              Loan Amount $0                                             #DIV/0!                 Existing Rate
    Subordinate Financing                                                #DIV/0!                 Loan Amount
           Total Financing $0                                                                Est. Net Proceeds $0
    Source of Dn. Payment                                                                    Use of Proceeds
                                                                                                Est Mkt Value
                 Comments                                                                    Renovation Costs
                                                                                               Existing Lender


       Moody's Market Status: Not Available                                                    Property/Population Comments
                                                                    County
        Property Name
      Property Address
       City / State / Zip

              Year Built
  Last Year Renovated                                    Elevator                        Current Monthly Rents              $0                  % Occupancy              #DIV/0!
          # of Buildings                                      NRA       0               Monthly Rent per sq. ft.         #DIV/0!                               GBA
            # of Stories                      Total Vacant Space        0                Annual Rent per sq. ft.         #DIV/0!                              Zoning
       # of Units Suites                        % Vacant Space        #DIV/0!                       Rent Roll Date                                Lot Size (sf)




             Borrower Type              LLC                    If "Other", describe:
                                 Primary Borrower/Guarantor         Secondary Borrower/Guarantor
          Middle Credit Score                                                                                Current total Liquidity (incl. 1031 funds)                  $0
   Mtg Lates in Prev. 36 mo's                                                                                        Meets post closing requirements:
          Credit Report Date:                                                                                     Current total combined Net Worth:                      $0
            Social Security #:                                                                                         Meets net worth requirements:
             Current Liquidity                                                                               # of years Commercial RE experience:
           Current Net Worth                                                                              # of years exp. with subject property type:
                  Comments:


                                                          R e q u e s t e d              /       A p p r o v e d

                                 Borrower Requested           KFCU Approved                                       Borrower Requested                      KFCU Approved
              Loan Amount                                                                           Start DCR                                                    #DIV/0!
   Pur. Price/ Est Mkt Value                                                                        Qual DCR                                                     #DIV/0!
  Requested Loan Program                                                                                    LTV                                                  #DIV/0!
          Start / Floor Rate                                        0.000%                     Sized Cap Rate                                                    #DIV/0!
Interest Only Period (Years)                                                           Max First Adjustment
                 KFCU Fee                                                                    Max . Subsequent
                  Recourse                                                                     Adj . Frequency
           Pre-Pay Penalty                                                              Max Life Adjustment
       Index @ Adjustment                                                                     Life Ceiling Rate                                                   N/A
           Rate Sheet Date                                                                      Tax Impounds
      Margin @ Adjustment                                           0.000%                      Ins. Impounds
               Term (Years)                                                            Brkr Orig. Pts & Fees
              Amort (Years)                                                                  Est. Closing Date
                                                                                                                                                              Total Broker
         3rd Party Originator?                Company Name                         Individual Name                3rd Party Pts & Fees                         Pts & Fees
                Yes/No
    Broker Comments:




                                  Base Rate                Rate Mod 1                        Rate Mod 2                      Rate Mod 3                                 Start Rate
        Rate Builder:                              +                             +                                +                                       =              0.000%
     Margin Builder:                               +                             +                                +                                       =              0.000%
                                                          Select from list               Select from list                   Select from list                           Final Margin
    KFCU Comments:




             KFCU Loan Officer: Ed Ho                                        KFCU Analyst Ed Ho                                                                               TBD

    Conditionally approved by:                                                                       Date
                                                                                                                                                                                                                                                                                           Production v 1.9
                                                                                                                            M U L T I - T E N A N T                            A N A L Y S I S


                                                                                                                                                               RENT ROLL                                                                                                                       0
                                                     Total No. of Tenants                                                             Dated as of                                                                                                                                              0
                                                     If greater than 25, enter total number of tenants here.                                                                                                                                                                                   ,

                                                                                                   SIZE                CURRENT BASE RENT                        MARKET RENT                             U/W                                 LEASE TERMS                              Comments
                                                                                                                                                                                                                                                                                                   Execut
                                                                                                                                     Annual                   Annual           Annual                                                                                                                ed
                                                                                            Size       % of            Annual       Base Rent    % of         Market           Market            UW               UW        Lease   Original     Lease       Lease        Lease        See #       Estopp
                                           Suite #                 Tenant                   (SF)       Total            Rent            PSF      Total       Rent PSF           Rent             Rent             CAM       Type    Tenancy    Commence      Expire     Term (yrs)     Below         el
                                    1
                 Retail & Storage


                                                                                                                                                                           $             -
                                    2
                                                                                                                                                                           $             -
                                    3
                                                                                                                                                                           $             -
                                    4
                                                                                                                                                                           $             -
                                                                                                                                                                           $             -
                                    5
                                                                                                                                                                           $             -
                                    6
                                                                                                                                                                           $             -
                                    7
                                                                                                                                                                           $             -
                                    8
                                                                                                                                                                           $             -
                                    9
                                                                                                                                                                           $             -
                                    10
                                                                                                                                                                           $             -
                                    11
                                                                                                                                                                           $             -
                                    11
                                                                                                                                                                           $             -
                Office




                                                                                                                                                                           $             -
                                    12
                                                                                                                                                                           $             -
                                    13
                                                                                                                                                                           $             -
                                    14
                                                                                                                                                                           $             -
                                    15
                                                                                                                                                                           $             -
                                    16
                                                                                                                                                                           $             -
                                    17
                                                                                                                                                                           $             -
                                    18
                                                                                                                                                                           $             -


                                                          Total Vacant                        0        0.0%        $            -                0.0%                      $             -   $           -    $         -
                                                         Total Occupied                       0        0.0%        $            - #DIV/0!        0.0%       #DIV/0!        $             -   $           -    $         -
                                                         Total / Average:                     0           0%       $            - #DIV/0!         0%                       $             -   $           -    $         -                                                #DIV/0!


                                         See suite 600                                                                                                                     8/1/08 Rent Bump reflected
            C O M M E N T S




                                    1                                                                                                                                  6

                                         Lease extended from 12/31/08 to 12/31/13 per executed tenant estoppel received dated 8/1/08.                                      7/1/08 Rent Bump reflected
                                    2                                                                                                                                  7

                                         Negotiating LOI expansion with Alleman Hall of Suite 500, 525,550, 600.                                                           7/23/08 Rent Roll indicates rent is $11,820/mo. Estoppel indicates rent is $11,820/mo. ($11,819.80). Lease indicates
                                    3                                                                                                                                  8   $12,175.75/mo effective of 7/1/08. Rent Roll indicates CAM is $842/mo, Estoppel indicates $1,262/mo
                                       Per Borrower's representative, there is a 50/50 chance this tenant will renew after 12/31/09 (considering                           Rent Roll indicates CAM is $1187/mo, Estoppel indicates $1598/mo
                                    4 retirement). This tenant is still currently in place.                                                                            9

                                       9/1/08 Rent Bump reflected; verified in the lease agreement. Suite 400-Jackson Lewis: Rent Roll show 3355 SF,                       Rent Roll indicates CAM is $715/mo, Estoppel indicates $946/mo
                                    5 Appraisal indicates 5159 SF.                                                                                                    10

                                       Rent Roll indicates rent is $11,606/mo, Executed Estoppel dated 8/28/08 confirms rent is $11,606/mo. The first and                  General Note: The appraiser concludes all existing rents to be at market.
                                    11 second amendments to the lease indicate $11,606/mo. Lease indicates a combined total of 6752 SF, Appraisal                     13
                                       indicates 5159 SF.
                                    12                                                                                                                                14




                                         CURRENT OWNER SIGNATURE:_____________________________________________________DATE:____________

                                         BUYER(s) ACKNOWLEDGEMENT:____________________________________________________DATE:____________

Rent Roll                                                                                                                                                                                                                                                                                                     12 of 37
                                                                            0
                                                                            0
                                                         ,
                                                                                                    Current YTD
                                                             Prior Year 2       Prior Year 1       Enter MM / YY
             INCOME / EXPENSES                                   2009               2010              Feb-08
                       R     E   V   E   N   U   E   S
                         Base Lease Rents
                 Insurance Reimbursement
                                        CAM
                   RE Tax Reimbursements
                                     Parking
                                     Storage
                     Utility Reimbursement
                              Miscellaneous
                            Other Income - 1                                                   1
                   Gross Potential Income                               -                  -                  -
                    Less: Physical Vacancy
            Less: Underwriting Adjustments                                                     2
             Effective Gross Income (EGI)                               -                  -                  -

                        E    X   P   E   N   S   E   S
                                 Real Estate Taxes
                                         Insurance

                                     Utilities
                                      Trash
                                   Janitorial
                             Administration
                          Contract Services
           Building Maintenance & Repairs
             Cleaning & Supplies Expense
                                      HVAC
                     Elevator Maintenance
                  Gardening / Landscaping
                          Parking Attendant
          Parking Lot Maint/Snow Removal
                                    Salaries
                              Payroll Taxes
                                 Telephone
             Legal / Auditing / Professional
                                    Security
                     Property Management
                   Advertising & Marketing
                                      Other
                   Miscellaneous expenses

                      Total Operating Expenses                          -                  -                  -

                            Net Operating Income                        -                  -                  -

                        Fixtures & Equipment                            -                  -                  -
                  Heating & AC Units (HVAC)                             -                  -                  -
                                        Roof                            -                  -                  -
                         Other Replacements                             -                  -                  -

                  Total Capital Expenditures                            -                  -                  -


                             Tenant Improvements                        -                  -                  -
                             Leasing Commissions                        -                  -                  -


                                     Total TI & LC's                    -                  -                  -


                      Net Operating Cash Flow                           -                  -                  -




       CURRENT OWNER SIGNATURE:_____________________________________________________DATE:__________________

       BUYER(s) ACKNOWLEDGEMENT:___________________________________________________DATE:___________________




Initial Loan Sizing                                                                                                13 of 37
Initial Loan Sizing   14 of 37
                                                             Current YTD
                                                             Annualized     Broker Analysis                                          Production v 1.9
                                                                  2        (Pre-Qual Analysis)
                      R    E    V     E   N    U   E   S                                              $/SF NRA                Comments
                          Base Lease Rents                             -                               #DIV/0!
                   Insurance Reimbursement                             -   $                  -        #DIV/0!
                                       CAM                             -   $                  -        #DIV/0!
                     RE Tax Reimbursements                             -   $                  -        #DIV/0!
                                    Parking                            -   $                  -        #DIV/0!
                                    Storage

                           Miscellaneous                               -   $                  -        #DIV/0!
                        Other Income - 1                               -   $                  -        #DIV/0!      Other income. Prior year recovery
                Gross Potential Income                                 -                   0           #DIV/0!
                 Less: Physical Vacancy                                -                   0             0%
          Less: Underwriting Adjustments                               -               0.00%                       Rent abatement
              Effective Gross Income (EGI)                             -                  -

                      E    X    P     E   N    S   E   S
                                Real Estate Taxes                      -                               #DIV/0!
                                        Insurance                      -                               #DIV/0!

                                    Utilities                          -                               #DIV/0!
                                     Trash                             -                               #DIV/0!
                                  Janitorial                           -                               #DIV/0!
                            Administration                             -                               #DIV/0!
                         Contract Services                             -                               #DIV/0!
          Building Maintenance & Repairs                               -                               #DIV/0!
            Cleaning & Supplies Expense                                -                               #DIV/0!
                                     HVAC                              -                               #DIV/0!
                    Elevator Maintenance                               -                               #DIV/0!
                 Gardening / Landscaping                               -                               #DIV/0!
                         Parking Attendant                             -                               #DIV/0!
         Parking Lot Maint/Snow Removal                                -                               #DIV/0!
                                   Salaries                            -                               #DIV/0!
                             Payroll Taxes                             -                               #DIV/0!
                                Telephone                              -                               #DIV/0!
            Legal / Auditing / Professional                            -                               #DIV/0!
                                   Security                            -                               #DIV/0!
                    Property Management                                -                  -              0%
                  Advertising & Marketing                              -   $                  -        #DIV/0!
                                     Other                             -   $                  -        #DIV/0!
                  Miscellaneous expenses                               -   $                  -        #DIV/0!

                 Total Operating Expenses                              -                  -            #DIV/0!

                          Net Operating Income                         -                  -            #DIV/0!

                       Fixtures & Equipment                            -
                 Heating & AC Units (HVAC)                             -
                                       Roof                            -
                        Other Replacements                             -
                                                                                                      PSF GBA
                Total Capital Expenditures                             -                  -            $0.25
                                                                                                      Total Replacement Reserves
                           Tenant Improvements                         -
                           Leasing Commissions                         -
                                                                                                      PSF NRA

                                     Total TI & LC's                   -                  -            $1.00
                                                                                                      Total TI's & LC's
                   Net Operating Cash Flow                             -                  -           Net Underwritable Cash Flow (NUCF)



                                     Program Minimums (TI's & LC's):                      -           NUCF
                                                                                #DIV/0!               Debt Service 1st TD (annual)
                                              Industrial   $0.25 PSF                              0   Debt Service 2nd TD (annual)
___________                                                                     #DIV/0!               Total Debt Service
                                 Anchored Retail           $0.35 PSF
                               Unanchored Retail           $0.45 PSF               DCR
                                          Office           $1.00 PSF
                                                                               #DIV/0!                 DCR
                                                                           Based on Requested Loan amount
                                                                           on Submission Form tab
               Initial Loan Sizing                                                                                                        15 of 37
Initial Loan Sizing   16 of 37
                                                                                                                                                                                       Production v 1.9
                                                            M U L T I - T E N A N T                      A N A L Y S I S


                Total No. of Tenants
                                                                               ROLL-OVER SCHEDULE (SQUARE FEET)
                                                                                            Area Expiring (square feet)
      Suite #                Tenant              Vacant     MTM       2011        2012      2013       2014       2015      2016      2017      2018      2019      2020     2021 +
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

                     Total
                     Total             #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!     #DIV/0!   #DIV/0!    #DIV/0!    #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!




 Multi Tenant                                                                                                                                                                  Page 17 of 37
                                                                         ROLL-OVER SCHEDULE (DOLLARS)
                                                                                     Area Expiring (dollars)
      Suite #           Tenant             Vacant    MTM       2011      2012      2013      2014         2015    2016      2017      2018      2019      2020      2021 +
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

                Total
                Total            #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!    #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!   #DIV/0!




 Multi Tenant                                                                                                                                                         Page 18 of 37
                                                                                                             KINECTA Federal Credit Union

                                                                             Letter of Interest
           1440 Rosecrans Avenue
           Manhattan Beach, CA 90266                                                                                                                              Production v 1.9




                        Borrower      0                                                                             Loan #                      TBD
                       Guarantor      0
                       Guarantor      0
                                                                                                             Loan Purpose                     Purchase
                Property Address      0
                                      ,
                                                                                                             Property Type                      $0

         Broker          0                                 Contact      0                                           Phone        -                       ext 0
      Broker ID#         0                                  E-mail      0                                            Fax #       -

           We have received the preliminary information for the above referenced property. It appears to be an appropriate candidate for our commercial loan
           program. Based on the information you provided to us, we should be able to achieve the following loan terms:
                                                                         PROPOSED LOAN TERMS

                     Loan Amount                 $0                          Program                 0                  Start / Floor Rate               0.000%

       Sales Price/ Est Mkt Value                $0                   Rate Sheet Date              1/0/00                 Pre-Pay Penalty                  0
                    Estimated LTV             #DIV/0!              Index @ Adjustment              0.000                    Est. Cash Out                 $0
                             CLTV               N/A               Margin @ Adjustment             0.000%             Broker Points & Fees                  $0
                  Max 2nd Allowed               N/A                    Qualifying Rate            0.000%                      Kinecta Fee                0.00%
                      Term (Years)                0                Max Life Adjustment            0.000%                  Kinecta Ancillary               TBD
                     Amort (Years)                0                   Life Ceiling Rate             N/A                  3rd Party Deposit               $9,000
                         Recourse                $0                    Adj . Frequency               $0                 Rate Lock Deposit                 N/A
                     Tax Impounds                $0                Max 1st Adjustment             0.000%                   Rate Lock Fee                  N/A
                     Ins. Impounds               $0                  Max. Subsequent              0.000%              Interest Only (Years)                0



                  This PRELIMINARY underwriting notification is subject to receipt and approval in form and content the following items without material changes:

      1 Copies of all commercial leases to be provided prior to engaging third party reports
      2 Current Rent Roll, signed and dated as true and correct, prior to engaging third party reports
      3 2006, 2007 and 2008 YTD Operating Statements, signed and dated as true and correct, prior to engaging third party reports
      4 Executed copy of Purchase Agreement (if purchased less than 2 years ago), prior to engaging third party reports
      5 Executed estoppel certificates from all tenants to be provided prior to loan approval
      6 Complete original underwriting package in accordance with Kinecta underwriting guidelines and Submission Checklist

      7 All original third party reports completed, reviewed and accepted by Kinecta
      8 An ALTA Policy insuring Kinecta's new loan is in first position; ALTA 9 endorsement - Title may require borrower to provide a
        SURVEY for this endorsement.
       9 Maximum Debt to Net Worth ratio not to exceed 1.5:1 at time of loan closing; as is represented by Broker and/or Borrower at time
      10 of this Letter of Interest
         Minimum Liquidity to be greater than six months of the subject property's annual debt service at time of loan closing; as is
      11 represented by Broker and/or Borrower at time of thisHazard of Interest requirements.
         Certificate of Insurance in accordance with Kinecta's Letter Insurance
      12 Loan at final underwriting to meet Kinecta's minimum debt coverage ratio (DCR) of 1.25:1 and maximum loan to value (LTV) of
         65%.
      13 Loan will be non-recourse to the borrrowing entities with LaeRoc Partners Inc. signing recourse carveout guaranty.

      22is our desire to work with you in structuring a mutually acceptable financing arrangement. This letter serves as our expression of interest only and is
      It
      provided for the purpose described above. The letter and any information included within may not be disclosed to any other party without consent from
      23
      Kinecta Federal Credit Union.

      This is an expression of interest on our part and does not constitute a commitment or an approval of your loan request. We do not issue verbal
      approvals. All loan approvals must be in writing and are subject to Kinecta Federal Credit Union's due diligence including our underwriting requirements,
      acceptable appraisal report by our approved appraiser, satisfactory environmental report, our loan committee's approval and full execution of all
      necessary loan documentation.

      Please sign and return a copy of this Letter of Interest to: 1440 Rosecrans Avenue, Manhattan Beach, CA 90266, Attn: Business Services
      Department, indicating your borrower's acceptance of the terms contained herein as soon as possible. We should receive this acceptance within 5
      business days of the date of this letter. If this Letter of Interest is not properly executed and returned in the described timeframe, we will have to
      consider the application suspended.


               Kinecta Federal a copy of this
          Please sign and return Credit Union Conditional Approval indicating your borrower's acceptance of the terms contained herein as soon as possible.
                                                                                Borrower


          By:                                                                    By:                                                 Dated                        , 2008
                 Paul Cleary, VP-Business Services                             Title:

                 Tuesday, July 19, 2011

          THIS LETTER IS NOT A COMMITMENT TO LEND. NOT WITHSTANDING ANY COMMUNICATIONS, COURSE OF CONDUCT OR RELIANCE, LENDER SHALL NOT BE LEGALLY BOUND TO THE
          TRANSACTION OR TERMS DESCRIBED HEREIN OR TO ANY OTHER OBLIGATION TO LEND MONEY UNLESS AND UNTIL LENDER AND APPLICANT EXECUTE AND DELIVER A FORMAL
          WRITTEN COMMITMENT OR EXECUTE AND DELIVER FINAL LOAN DOCUMENTS.




LOI                                                                                                                                                                        Page 19 of 37
                                                                                                                KINECTA Federal Credit Union

                                                                                                                                                                                   Production v 1.9

                      COMMERCIAL                        UNDERWRITING                     SUMMARY                    &     RECOMMENDATION

                 Date:               7/19/2011                   Underwritten By    Robert Farrington                    Loan Officer                 Ed Ho


         Property Type    $0                                                                                Loan Number           TBD
        Property Name     0                                                                                  Broker Co./#          / ID#
      Property Address    0                                                                                   Phone / Fax         -                         -
         City/State/Zip                                                                                    Contact Person         0
                County    0
                                                                                                                Comments:
              Borrowers




   Carve-out Guarantor

                                                                                                                                                                         Loan Terms
Total KFCU Relationship    $            21,350,000 (Kim Benjamin related loans)
Approved Loan Amount       $                    -                                  Loan Purpose           Purchase                        Rate Locked?      N/A
         LOI Loan Amt.     $             7,500,000       LTV*               CLTV    Loan Source           Direct                        Rate Expiration     N/A
          "As Is Value     $                    -     #DIV/0!                N/A   Loan Program           0                             Start/Floor Rate    0.000%
                                                         LTC*               CLTC       KFCU Fee           0.00%                         Qualifying Rate     0.000%
  Adjusted Sales Price                 $13,450,000       0.0%                N/A      Index Date          N/A                          Life Ceiling Rate    6.080%
                                                                                      Index Type          N/A                             Max. Life Adj.    0.000%
       Start/Qual DCR          #DIV/0!                                              Index @ Adj.          0                           Amort/Term (Yrs)      0    /       0
                                                                                  Margin @ Adj.           0.000%                               Impounds     None
 Start/Qual Comb. DCR           N/A     Term (Yrs.) Amort Yrs. ("0" if I/O)      Pre-Pay Penalty          0.00%                         Adj. Frequency      0
           2nd TD Rate          N/A         N/A           N/A                           Recourse                              0     Interest Only Period    0

                                          KFCU FEES             Total:   Date:                             BROKER FEES                     Total:
                        Origination       $        -             TBD                     Origination      N/A                                   N/A
                           Ancillary      $        -                                    Processing        N/A
                         Robodocs         $        -                                           Other      N/A
                Third Party Reports       $        -                                   KFCU Rebate        N/A

                                                                                                                                                                      Borrower Analysis
                                              Borrower (1): 871 Figueroa Terrace, LLC, a California             City/State
                                              limited partnership (48% Tenant-in-Common)
        LLC                                                                                                 ,                                     Tax ID:         567-70-6546
                       % of Borrower:                  59.00%                          Date Formed:             12/19/2003           Middle Credit Score:       N/A          N/A
                       Borrower Type:                   LLC                              Reg. State:             California            Derogatory Credit:             N/A
                  Other KFCU Loans:                      No                          Good Standing?:               Yes                Credit Report Date:        LexisNexis-OK
              No. of Loans + Pending:                     1                               Recourse:                  0                          Liquidity         $2,814,995
              Relationship + Pending: $                             -                   Exper. (Yrs):              N/A                         Net Worth          $2,888,611
                  Property Manager:                     TBD                             Local Exp.?:               Yes               Mortgages Verified:              N/A

                          Property Mgr See attached
                           Experience:   Borrower (2): 2851 PCH Partners, LLC, a California                     City/State
        LLC                              limited liability company (52% Tenant-in-Common)                   ,                                     Tax ID:         20-5820573
                       % of Borrower:                  41.00%                                Liquidity:         $3,638,609           Middle Credit Score:       N/A
                  Other KFCU Loans:                      No                                Net Worth:           $5,788,067            Credit Report Date:        LexisNexis-OK
              No. of Loans + Pending:                     1                          Debt/Worth Ratio              0.02                Derogatory Credit:       N/A
              Relationship + Pending: $                             -                 Liq/Total Assets             0.63               Explan. Required?:        N/A
                    Property Manager:                   TBD                                Exp. (Yrs):              N/A              Mortgages Verified:        N/A

                              Comments: See attached
                                                                                                          City/State:
                                            Figueroa Terrace Partners LLC, a California limited
                                            partnership
                                                                                                            ,                                                     95-4250054
                                            (0% Managing Member of TIC Borrower, 871 Figueroa
        Limited Partnership                 Terrace, LLC)                                                                                         Tax ID:
                        % of Borrower:            100.00%                                  Liquidity:              $0                Middle Credit Score:       N/A
                   Other KFCU Loans:                 No                                   Net Worth:               $0                 Credit Report Date:        LexisNexis-OK
              No. of Loans + Pending:                 1                            Debt/Worth Ratio                N/A                 Derogatory Credit:       N/A
               Relationship + Pending:    $                      -                  Liq/Total Assets               N/A                Explan. Required?:        N/A
                    Property Manager:               TBD                                   Exp. (Yrs):              N/A               Mortgages Verified:        N/A

                              Comments: See attached
                                                                                                          City/State:
                                              2851 PCH Management Inc., a California corporation
                                              (1% Managing Member of TIC Borrower, 2851 PCH
                                                                                                            ,                                                     20-5816832
                                              Partners LLC)
        Corporation                                                                                                                               Tax ID:
                       % of Borrower:               100.00%                                  Liquidity:            $0                Middle Credit Score:       N/A
                  Other KFCU Loans:                   No                                   Net Worth:              $0                 Credit Report Date:        LexisNexis-OK
              No. of Loans + Pending:                  1                             Debt/Worth Ratio              N/A                 Derogatory Credit:       N/A
              Relationship + Pending: $                             -                 Liq/Total Assets             N/A                Explan. Required?:        N/A
                    Property Manager:                   TBD                                Exp. (Yrs):             N/A               Mortgages Verified:        N/A

                              Comments: See attached
                                                                                                          City/State:
                                            Carve-out Guarantor: Laeroc Partners, Inc.
                                            (Sole Manager of Guarantor, Figueroa Terrace Partners,          ,                                                     95-4250054
        Corporation                         LLC)                                                                                                  Tax ID:
                       % of Borrower:             100.00%                                  Liquidity:            $334,167            Middle Credit Score:       N/A
                  Other KFCU Loans:                 No                                   Net Worth:             $9,598,801            Credit Report Date:        LexisNexis-OK
              No. of Loans + Pending:                1                             Debt/Worth Ratio                0.25                Derogatory Credit:       N/A
              Relationship + Pending:     $                      -                  Liq/Total Assets               0.70               Explan. Required?:        N/A
                    Property Manager:               TBD                                  Exp. (Yrs):                N/A              Mortgages Verified:        N/A

                              Comments: See attached (two other entities)

              Combined Post-Closing Liquidity:            $7,037,184                       Combined Post-Closing Net Worth:                $19,669,994
               Post -close liquidity sufficient ?:             #DIV/0!




                                                                                    Page 20 of 37
                                                                                                                                                                        Property Information

             Total               %                                         Monthly                Monthly              Annual
           Vacant SF           Vacant           NRA                          Rents                Rent SF              Rent SF       # of Units / Suites                    0
              0                #DIV/0!           0                            $0                  #DIV/0!              #DIV/0!          % Occupancy                     #DIV/0!
                                                                         Market Rent:             #DIV/0!              #DIV/0!               Year Built                     0
                                                                                                                                      Year Renovated                        0
                                                                                                                                      Renovation Costs                    N/A
        Comments:                                                                                                                       Rent Roll Date                  1/0/1900
        The subject property is a 12-story, Class B office building with underground parking and a small portion                           # of Stories                     0
        of the property used as ground floor retail and storage. The building was built in 1912 and substantially                         # of Buildings                    0
                                                                                                                                                Elevator                   $0
        renovated in 1972. Currently there are sixteen (16) tenants plus one vacant unit. The appraiser reports                                 NRA (SF)                   0
        the property to compete well in the market due to good maintenance and noted no deferred                                                GBA (SF)                   0
        maintenance.                                                                                                                             Zoning                     0
                                                                                                                                                Lot Size                    0


       7 Largest Tenants                    % of NRA        % of Rents Business Type/Tenant Notes
     1 0                                                     #VALUE! Retail sales of 'better quality' women's apparel (dresses, skirts, jackets, coats, blouses)
     2 0                                                                   Retail sales of jewelry, art, gifts, silver, antiques, estate items and eyeware.
     3 5 Individuals                          #VALUE!        #VALUE! General office use
     4 0                                                                   General office use

     5 0                                                                   General office use; Note: This lease currently expires 12/31/08. Negotiations for a lease
                                                                           extension are reportedly in process.
     6 0                                                                   General office use

     7 0                                                                   General office use

                                                                                                                                                                         Market Information

    Adjacent Properties:
       Retail such as Meier and Frank, Nordstrom and Pioneer Place Mall and other mid-rise                          County Population:         681,454                 Increasing
                                                                                                                      City Population:         568,380                 Increasing
       office buildings.


    Neighborhood:
       The subject property is located in Portland's downtown CBD. The CBD is a viable area and the hub of the Portland metropolitan area. The subject is
       located on a prime corner along the retail center of the CBD, which includes Meier and Frank, Nordstrom and Pioneer Place which is a vertical retail
       mall.

    Market Conclusions
       Per the apprasier, the balance of supply and demand in the office market is good. The outlook for this area is for moderate growth, with real estate
       values anticipated to moderately appreciate in accordance with general trends in the area.

                                                                                                                                                                        Appraisal Information

             Appraiser:     PGP Valuation, Inc.               Rev. Appr:     First Real Estate Consulting                        Remain Economic Life:                    30
        Valuation Date:     7/7/2008                       Review Date:                 7/10/08                                  Legal Conforming Use:                    Yes
          "As-Is" Value:    $14,500,000                    Rev. Concurs:                  Yes                    N/A                 If "LNC" - Reason:                   N/A
            Net Income:     -$29,824                       Rev. Concurs:                  Yes                    N/A
 Deferred Maintenance:      No                             Rev. Concurs:                  Yes                    N/A

     Engaged by KFCU        Yes                                                                                                           NRA / Appraisal:                 0
Within KFCU Guidelines      Yes                                                                                                            Value / Sq. Ft.:             #DIV/0!
      Concluded $/Unit:     N/A                            Rev. Concurs:                    N/A                  N/A                        Loan / Sq. Ft.              #DIV/0!
       Concluded CAP:       7.25%                          Rev. Concurs:                    Yes                  N/A                          Value / Unit              #DIV/0!
            Comments:
       Include Appraiser's comments n
   Overall, the review appraisal company (reviewed by one certified general real estate appraiser and one Oregon State Certified General (MAI) Appraiser),
   concluded the appraisal fully meets industry and bank standards and can be relied upon for decision making purposes. Additionally, they added there is
   below average risk associated with the subject collateral (from at least a value and cash flow perspective). Underwriter agrees based on the supporting
   data and good location of the subject property.

                                                                                                                                                              Property Inspection Information

        Inspector:                               Chuck Hasz, Ent.                                           Deferred Maintenance:    No       Side Letter:                No
        Inspection Date:                            7/16/2008                                                     Health & Safety:   No        Hold Back:                 N/A
        Property Condition:                           Good                                                                                 Dollar Amount:                 $0

        Comments:
   Overall, the site inspector noted the property to be in good to excellent condition.


                                                                                                                                                                Environmental Information

        Completed By:                       PES Environmental, Inc.                                     Further Action Required:                  No
        Report Date:                             1/10/2008                                                O & M Plan Required:                    No
        Concerns:                                    No                                               Dated Reviewed By KFCU:                  8/7/2008

        Comments:
   Per Chris Froboese's Memorandum dated August 7, 2008, a Phase I was reviewed dated January 10, 2008. The most significant factor discussed is the
   past use of UST's on the subject site. The Phase I notes and documents the use of five (5) underground storage tanks. Additionally, evidence of a former
   hydraulic hoist system was observed in the lower level garage. Based on these potential environmental concerns, a limited Phase II was completed
   (earlier) in 2000 and the findings are discussed in the 2008 Phase I report. After borings were advanced to a depth of 14 feet and tested, no significant
   issues were noted. PES Environmental has recommended no additional investigation of the UST's or hydraulic hoist system. However, there are
   recommended housekeeping items recommended as follows:
   -Asbestos containing materials (ACM's) and lead paint are likely present. PES recommends an O&M plan be established and adhered to for future
   operation of the building.
   -Flammable paints and other materials should be stored in fireproof cabinets.
   -A 200 gallon above ground tank exists which stores hydraulic fluid (oil) for the elevator. Heavy surface staining was observed near the tank and transport
   lines. Spilled oil should be cleaned and housekeeping practices improved to prevent further spills.
   Subject to the above, it is Chris Froboese's opinion that the subject property represents a slightly elevated but acceptable environmental risk for the Credit
   Union.



                                                                                                                                                                     Insurance Information
     Insurance Carrier:                  TBO                                              Building Coverage:          TBO                Flood Ins. Req:      No
      Admitted Carrier:                  N/A                                       Liability Per Occurrence:          TBO                 Certificate By: Factual Data Flood
      AM BEST Rating:                    TBO                                          Liability In Aggregate:         TBO                         Dated: 6/30/2008
         Co-Insurance:                   N/A                                                        Umbrella:         TBO                   Flood Zone:        0
     Insurance Carrier:                  N/A                   0.00%                               Deductible:        TBO             Flood Zone Panel: 410183 0093 E
      Admitted Carrier:                  N/A                                                Earthquake Req:            No                Boiler Ins. Req:     No
      AM BEST Rating:                    N/A                                         Law & Ordinance Req:              No
       Co-Insurance %:                   N/A                                                 Insurable Value:      $12,867,236
        Comments:
   Evidence of insurance satisfactory to Kinecta is to be provided prior to loan closing.




                                                                                            Page 21 of 37
                                                                                                                                                               Real Estate Taxes

Cur. Assessed Value:               $2,757,810                                                 Amount Paid:            $43,940           Spec. Assessments:      No
   Current Tax Year:               2007-2008                                             Total Tax Amount:            $43,940                      Amount:      N/A
       Last Tax Paid               2007-2008                                              Any Delinquency:              No
      Comments:
 The subject property has a historic tax exemption that freezes its taxes at their current level until June 2011. Due to the near term change, the appraisal
 and underwritten taxes are based on the appraiser's projected (re)assessment with the value conclusion adjusted for the near term savings. The
 underwritten property taxes, therefore, are based on the appraiser's forecast of $116,602. The current actual taxes (paid in full) are $43,939.90. The
 Oregon property taxes are payable once a year on November 15th.


                                                                                                                                                                  Preliminary Title Report
      Title Company:          Ticor Title Ins. Co.                                             Report Date:         8/26/2008
     Encumbered By:            Wachovia Bank                                                          Date:         12/30/2002              Original Amount: $7,700,000
     Comments:
 Title (Sellers) currently vested with three tenants in common - all entities (none appear to be related to Kim Benjamin or any of the subject entities).



                                                                                                                                                                          Risk Analysis

     TRANSACTION STRENGTHS
   1 55.8% LTC; 51.7% LTV
   2 1.52:1 u/w DSCR
   3 Experienced underlying sponsorship (non-Guarantor, Kim Benjamin)

     TRANSACTION WEAKNESSES
   1 Non-recourse loan to multiple entities only (Kim Benjamin will not sign personally as a borrower or as guarantor)
   2 Slightly elevated but acceptable environmental risk due to former USTs, asbestos, lead paint and hydraulic elevator fluid.
   3 The subject entities combined to not have Kinecta's required twelve (12) months of the subject property debt service.

     MITIGATING FACTORS
   1 55.8% LTC; 51.7% LTV
   2 Loan closing conditions include an O&M plan for Asbestos containing materials (ACM's) and lead paint, all flammable paints and other materials to be
     stored in fireproof cabinets and evidence the hydraulic fluid (oil) for the elevator has been cleaned and housekeeping practices have been put in place to
     prevent further spills.
   3 1.52:1 u/w DSCR; the subject property as underwritten will yield in excess of $280K of annual net cash flow after debt service.

     MATERIAL CHANGES FROM GREENLIGHT
   1 None
   2
   3

     LOAN PROGRAM EXCEPTIONS AND RATIONALE
   1 Non-recourse loan to multiple entities only (Kim Benjamin will not sign personally as a borrower or as guarantor)
             Mitigant 55.8% LTC; 51.7% LTV
   2 Direct Loan with a 0.00% Kinecta Fee (and 6.08% rate)
                      Kim Benjamin related Kinecta deposits and loans (outside of the subject entities) as of 8/27/08 are as follows: Deposits $12,378,650.45;
             Mitigant Loans $13,850,000.00
   3 Post-Closing Liquidity of the combined entities does not exceed 12 months of the subject loan's debt service
             Mitigant 1.52:1 u/w DSCR; the subject property as underwritten will yield in excess of $280K of annual net cash flow after debt service.
             Mitigant

     LOAN POLICY EXCEPTIONS AND RATIONALE
   1 No individual (warm-body) Guarantee and no documentation of any warm body financial information.
            Mitigant Low Leverage: 55.8% LTC/51.7% LTV
            Mitigant Strong Cash Flow: 1.52:1 u/w DSCR
   2
            Mitigant
            Mitigant
   3
            Mitigant
            Mitigant

                                    RISK RATING                 2            Modest Risk

                               APPROVED                   APPROVED WITH CHANGES                    SUSPENDED                     DECLINED




                          R E C O M M E N D E D B Y:


                                                      Date:
                          Robert Farrington, Director-Underwriting Manager

                          A P P R O V E D B Y:                                                                  *Board Approval Required


                                                    Date:                                                                                    Date:
                          Simone Lagomarsino, President & CEO                                                   Ed Resendez, SVP/Chief Lending Officer


                                                     Date:                                                                                             Date:
                          Paul Cleary, VP-Business Services                                                     Karen Christensen, SVP/CFO


                                                      Date:                                                                                   Date:
                          Melinda Dorji, VP-Loan Servicing & Collections                                        Art Hickson, VP-Mortgage Lending




                                                                                          Page 22 of 37
                                                                                                                                                                     Conditions
                                                                      Loan
                                                                     Number               TBD



                                               THE ATTACHED LOAN APPROVAL IS SUBJECT TO THE FOLLOWING CONDITIONS:

                               *********************************                  PRIOR TO FUNDING         *******************************
    Certificate of Insurance in accordance with Kinecta Federal Credit Union's Hazard Insurance requirements with building coverage of at least $12,867,236 with an annual premium
    of no greater than $50,000, a deductible of no greater than $5,000, business interruption of $1,578,503 or actual loss sustained, $1,000,000 liability per occurrence and
1   $2,000,000 aggregate liability. Policy must be prepaid for 1 year or paid through the loan closing and must have a least 3 months remaining on the policy with policy premium
    paid. Kinecta Federal Credit Union must be named as mortgagee and additional loss payee. 438 BFU endorsement must be attached or equivalent thereof. No Co-insurance
    acceptable.
2   Borrower entities to be become a Kinecta Members

3   Copy of the executed LOI, acceptable to Kinecta

4   Current Balance Sheet and Profit & Loss Statement (through at least June 30, 2008) of KMJ Family Partnership, LP

5   O&M plan for Asbestos containing materials (ACM's) and lead paint.

6   Evidence, acceptable to Kinecta, all flammable paints and other materials have been stored in fireproof cabinets.
    Evidence, acceptable to Kinecta, the 200 gallon above ground tank which stores hydraulic fluid (oil) for the elevator has been cleaned and housekeeping practices have been put
7
    in place to prevent further spills.
8   All missing executed tenant estoppel certficates




                                                                                   Page 23 of 37
                                                              0                                                     Kinecta Federal Credit Union NOI Analysis
                                                              0
                                                ,                                                                                                                                                                                                                                                                                                 Production v 1.9

  Borrowing Entity Name:        0                                                            NRA             0                          Amortization (yrs)             0                   Qualifying Rate                    0.000%


        Property Address:       0                                                            GBA             0                                  Start Rate           0.000%                           Loan #                   TBD


           Property Name        0                                                                                                           Loan Amount                $0


                                                    2006                        2007                   2008 Annualized              Broker Analysis              KFCU Greenlight                    Appraisal                     KFCU Final
                                                                                                           6 mos                    N/A-Direct Loan                                                                                                                                                      Comments
                                    INCOME                        Per/SF                     Per/SF                       Per/SF                       Per/SF                         Per/SF                        Per/SF                        Per/SF
                       Base Lease Rents         $             -   #DIV/0!   $           -    #DIV/0!   $    1,307,674     #DIV/0!                      #DIV/0!   $    1,340,796       #DIV/0!   $    1,378,196      #DIV/0!   $              -    #DIV/0!   Actual Rent per current Rent Roll/Estoppels/Leases (includes gross up of the vacant unit).
 CAM, Insurance and Tax Reimbursements          $             -   #DIV/0!   $      82,518    #DIV/0!   $       36,500     #DIV/0!   $              -   #DIV/0!   $       77,937       #DIV/0!   $       80,000      #DIV/0!   $              -    #DIV/0!   Per Current Rent Roll & Estoppels supported by the appraisal ($80,000) and '06-'07 historicals.
                                  Parking       $             -   #DIV/0!   $     116,725    #DIV/0!   $      149,354     #DIV/0!   $              -   #DIV/0!   $      116,725       #DIV/0!   $      145,254      #DIV/0!   $        128,369    #DIV/0!   Per executed Etoppel Certificate from City Center Parking dated August 1, 2008
                       Rent Concessions         $             -   #DIV/0!   $     (12,302)   #DIV/0!   $            -     #DIV/0!   $              -   #DIV/0!   $            -       #DIV/0!   $            -      #DIV/0!   $              -    #DIV/0!
                            Other Income        $             -   #DIV/0!   $      31,032    #DIV/0!                      #DIV/0!   $              -   #DIV/0!   $            -       #DIV/0!   $            -      #DIV/0!   $              -    #DIV/0!
                Gross Potential Income          $             -   #DIV/0!   $     217,973    #DIV/0!   $    1,493,528     #DIV/0!   $              -   #DIV/0!   $    1,535,458       #DIV/0!   $    1,603,450      #DIV/0!   $        128,369    #DIV/0!
                  Less: Physical Vacancy        $             -             $           -              $            -               $              -    0%       $            -                                     0.0%      $          8,986    7.0%      Market (per Apprasial); Actual economic vacancy is $28,702 (1.2%).
          Less: Underwriting Adjustments        $             -             $           -              $            -               $              -             $            -                                               $              -
             EFFECTIVE GROSS INCOME             $             -   #DIV/0!   $     217,973    #DIV/0!   $    1,493,528     #DIV/0!   $              -   #DIV/0!   $    1,535,458       #DIV/0!                       #DIV/0!   $        119,383    #DIV/0!

            OPERATING EXPENSES:
                       Real Estate Taxes        $             -   #DIV/0!   $           -    #DIV/0!   $         48,604   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast (purchase loan)
                      Property Insurance        $             -   #DIV/0!   $           -    #DIV/0!   $         17,496   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast supported by the '06-'08 annualized average of $18,285
                                    Utilities   $             -   #DIV/0!   $           -    #DIV/0!   $         88,108   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast supported by the '06-'08 annualized average of $85,866
                      Janitorial / Salaries     $             -   #DIV/0!   $           -    #DIV/0!   $         57,934   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   06-'08 annualized average of $69,723 supported by the Appraiser's forecast of $60,098
           General Repairs & Maintenance        $             -   #DIV/0!   $           -    #DIV/0!   $         51,076   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast supported by the '06-'08 annualized average of $66,937
                                   Elevator     $             -   #DIV/0!   $           -    #DIV/0!   $         12,606   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Included in Repairs & Maintenance (R&M)
                                     HVAC       $             -   #DIV/0!   $           -    #DIV/0!   $          6,124   #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Included in Repairs & Maintenance (R&M)
                             Management         $             -   #DIV/0!   $           -     0.0%     $       36,000      2.4%     $              -             $               -              $       29,824      #DIV/0!   $          4,775     4.0%     Program Minimum (The proposed new property mgmt agreement is at 1.75% plus $11,400/yr)
                      Administrative (G&A)      $             -   #DIV/0!   $           -    #DIV/0!   $        2,976     #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast supported by the '06-'08 annualized average of $2,909
                                   Security     $             -   #DIV/0!   $           -    #DIV/0!   $        6,608     #DIV/0!   $              -   #DIV/0!                        #DIV/0!                       #DIV/0!                       #DIV/0!   Appraiser's forecast supported by the '06-'08 annualized average of $2,203
       TOTAL OPERATING EXPENSES                 $             -   #DIV/0!   $           -    #DIV/0!   $      327,532     #DIV/0!   $              -   #DIV/0! $                 -    #DIV/0!   $       29,824      #DIV/0!   $         4,775 #DIV/0!
    Capital Items / Replacement Reserves        $             -             $           -              $            -                                          $                 -                                  #DIV/0!   $             - $ 0.25 Program Minimum
  TOTAL EXPENSES & REP. RESERVES                $             -   #DIV/0!   $           -    #DIV/0!   $            -     #DIV/0!   $              -   #DIV/0! $                 -    #DIV/0!   $      29,824       #DIV/0!   $         4,775 #DIV/0!
                    Expenses / SQ of GBA            #DIV/0!                     #DIV/0!                    #DIV/0!                                                   #DIV/0!                        #DIV/0!                        #DIV/0!
                        Expenses / EGI %            #DIV/0!                          0.00%                      0.00%                                                     0.00%                     #DIV/0!                             4.00%


           NET OPERATING INCOME                 $             -   #DIV/0!   $     217,973    #DIV/0!   $    1,493,528     #DIV/0!   $              -   #DIV/0!   $    1,535,458       #DIV/0!   $       (29,824) #DIV/0!      $        114,608    #DIV/0!


                  Tenant Improvements (TI's)    $             -             $           -              $              -                                                                                                                      $0
                       Leasing Commissions      $             -             $           -              $              -                                                                                                            #DIV/0!                  Based on maximum program guidelines for Office as listed below (due to 100% of the leases
                                                                                                                                                                                                                                                            rolling during the loan term and the loan being non-recourse and to entities only)
                           Total TI's & LC's    $             -             $           -              $              -                                          $          49,258              $               -   #DIV/0!        #DIV/0!        #DIV/0!


NET UNDERWRITABLE CASH FLOW                     $             -             $     217,973              $    1,493,528                                            $    1,486,200       #DIV/0!   $       (29,824) #DIV/0!           #DIV/0!        #DIV/0!


                 Qualifying Debt Service                                                                                                                                    #DIV/0!                     #DIV/0!                       #DIV/0!                             TI/LC Calculator               Anchor/Major             In-line/Minor
                          Net Cash Flow                                                                                             $              -                        #DIV/0!                     #DIV/0!                    #DIV/0!                       SF Subject to TI/LC Calculation:                0                        0
            DSCR 1st TD (below the line)                                                                                                                                    #DIV/0!                     #DIV/0!                        #DIV/0!                          Underwritten Occupancy:              95.00%                   93.00%
                                                                                                                                                                                                                                                                   Tenant Improvements - New:                 $3.00                   $10.00
                     2nd TD Debt Service                                                                                            $              -                                                                          $              -                  Tenant Improvements - Renewal:                $1.00                    $5.00
                  Combined Debt Service                                                                                             $              -                        #DIV/0!                     #DIV/0!                         #DIV/0!                    Leasing Commissions - New:                 5.00%                    6.00%
         Net Cash Flow After Debt Service                                                                                           $              -                        #DIV/0!                     #DIV/0!                         #DIV/0!                 Leasing Commissions - Renewal:                3.00%                    3.00%
        Combined DSCR (below the line)                                                                                                                                      #DIV/0!                     #DIV/0!                         #DIV/0!                             Renewal Probability:             65.00%                   45.00%
                                                                                                                                                                                                                                                                   Average Lease Term (years):                 10.0                      5.0
                                                                                                                                                                                                                                                                 Avg. Annual Market Rent (PSF):               $0.00                   #DIV/0!
                                                                                                                                                                                                                                                                               Downtime (years):               0.00                     0.25




  KFCU Analysis                                                                                                                                                                                                                                                                                                                                   Page 24 of 37
                                               CONSOLIDATED
                                        FINANCIAL ANALYSIS SUMMARY
Borrower (1): 871 Figueroa Terrace, LLC, a California limited partnership (48% Tenant-in-
Common)
Borrower (2): 2851 PCH Partners, LLC, a California limited liability company (52% Tenant-in-
Common)
Figueroa Terrace Partners LLC, a California limited partnership
Carve-out Guarantor: Laeroc Partners, Inc.
2851 PCH Management Inc., a California corporation
 K.M.J. Family Partnership LP, a California limited partnership
Xiao Hui Corporation, a California corporation
Property Address: 806 SW Broadway, Portland, OR

                                               Borrower                     UW / Verified
                                               Statement
ANNUAL CASH FLOW
Salary                                                  $0                    $0                 $0
Business Income (Net)                          $15,151,237            $2,047,897         $2,448,373
Interest and/or Dividends                               $0                    $0                 $0
Net Rental Income                                       $0                #DIV/0!                $0
Social Security and/or Pensions                         $0                    $0                 $0
Net from Partnership K-1s                               N/A              ($6,451)       ($1,099,653)
“S” Corporation Pro Rata Distribution                   $0                    $0                 $0
Sale of Assets                                          $0                    $0                 $0
Other                                                   $0                    $0                 $0
Less Federal Income Tax Liability and                   $0
Itemized Deductions                                     $0                    $0                $0
Principal Reduction                                     $0                    $0                $0
TOTAL ANNUAL CASH FLOW:                       $15,151,237                #DIV/0!        $1,348,720
                 COMMENTS
  Please see attached




ASSETS                                         Borrower          UW / Verified
                                               Statement
Cash                                              $375,047              $414,056
Marketable Securities (Cash Equivalents)                $0              $350,000
Cash in 1031 exchange/escrow                            $0            $6,147,403
IRA/Keogh/SEP/Other Retirement accounts         $8,185,660            $8,121,892
Real Estate (100% Owned)                        $5,014,173            $2,162,257
Other and Personal Assets                          $26,096            $3,175,513
Notes Receivable (Trust Deeds)                    $433,224              $433,224
R. E. Partnership and Fractional Interests              $0                    $0
Business Owned                                          $0                    $0
Life Insurance (Cash Value)                             $0                    $0

TOTAL ASSETS:                                 $14,034,201           $20,804,345
                 COMMENTS




LIABILITIES                                    Borrower          UW / Verified
                                               Statement
Auto and/or Revolving Credit                    $2,043,761            $2,045,322
Mortgages Payable                                       $0                    $0
Other                                            ($962,692)             $483,545

TOTAL LIABILITIES:                             $1,081,069            $2,528,866
                 COMMENTS




Liquidity, Net Worth and Financial             Borrower          UW / Verified
Ratios                                         Statement
Liquidity                                       $8,560,707           $15,033,351
Net Worth                                      $12,953,131           $18,275,479
Debt / Worth Ratio                                     0.08 :1               0.14 :1
Cash+Equivalents / Total Assets                        0.61                  0.72
                                            BORROWER
                                     Financial Analysis Summary


Borrower (1): 871 Figueroa Terrace, LLC, a California limited partnership
(48% Tenant-in-Common)


                                                        Borrower         UW / Verified Tax Returns
                                                        Statement            2008               N/A
ANNUAL CASH FLOW                                            6/30/2008
Salary                                                          $0                    $0                    $0
Business Income (Jan-June 2008, Net)                    $8,664,503                    $0                    $0
Interest and/or Dividends                                       $0                    $0                    $0
Net Rental Income                                               $0                #DIV/0!                   $0
Social Security and/or Pensions                                 $0                    $0                    $0
Net from Partnership K-1s                                       N/A                   $0                    $0
“S” Corporation Pro Rata Distribution                           $0                    $0                    $0
Sale of Assets                                                  $0                    $0                    $0
Other                                                           $0                    $0                    $0
Less Federal Income Tax Liability and
Itemized Deductions                                              $0                    $0                   $0
Principal Reduction                                              $0                    $0                   $0
TOTAL ANNUAL CASH FLOW:                                $8,664,503            #DIV/0!                       $0
                  COMMENTS
 871 Figueroa Terrace, LLC was formed 12/19/93. It is primarily a shell/pass-through entity and will be used
 as a 59% tenant-in-common entity to acquire the subject property. Note, the business income noted above
 reflects primarily a non-recurring 'Gain on Sale of Asset' of $9,140,750. Adjusting this out, nets an adjusted
 annualized Net Loss. The only recurring cash flow for the purpose of underwriting this entity is the the
 underwritten Net Cash Flow of the subject property being acquired adjusted to 59% which is reflected
 above.



ASSETS                                                  Borrower
                                                        Statement        UW / Verified        Notes
Cash                                                          $942                 $940       A
Earnest Money Deposits                                          $0             $206,500       B
Cash in 1031 exchange/escrow                                    $0           $2,607,555       C
OTHER CURRENT ASSETS                                      $127,536              $63,768       E
Real Estate (100% Owned)                                $2,851,916                   $0       D
OTHER ASSETS                                               $19,696               $9,848       E
Notes Receivable (Trust Deeds)                                  $0                   $0
R. E. Partnership and Fractional Interests                      $0                   $0
Business Owned                                                  $0                   $0
Life Insurance (Cash Value)                                     $0                   $0
TOTAL ASSETS:                                          $3,000,090           $2,888,611
                  COMMENTS
 A) Per bank statements in file.
 B) 59% of the earnest money deposits
 C) Per 1031 letter statement in file dated 8/21/08. The 1031 deadline date is 9/24/08.
 D) 59% of the subject property appraised value
 E) Stated values discounted to 50%

LIABILITIES
CURRENT LIABILITIES/REQ'D CASH DOWN                         ($1,560)                   $0     A
Mortgages Payable                                                $0                    $0     B
LONG TERM LIABILITIES                                   ($1,446,237)                   $0
TOTAL LIABILITIES:                                    ($1,447,797)                     $0
                  COMMENTS
 A) required cash down to purchase the subject property adjusted to 59%
 B) Subject loan adjusted to 59%


Liquidity, Net Worth and Financial Ratios              BWR STMT           UW / Verified
Liquidity                                                 $128,478           $2,814,995
Net Worth                                               $4,447,887           $2,888,611
Debt / Worth Ratio                                            -0.33 :1              0.00 :1
Cash+Equivalents / Total Assets                                0.04                 1.00
                                                   PRINCIPAL 2
                                             Financial Analysis Summary
Figueroa Terrace Partners LLC, a California limited partnership
(0% Managing Member of TIC Borrower, 871 Figueroa Terrace, LLC)


                                                 Borrower         UW / Verified Tax Returns
                                                 Statement             2007               2006
ANNUAL CASH FLOW                                 Not Provided
Salary                                                   $0                       $0             $0
Business Income (Net)                                    $0                       $0             $0
Interest and/or Dividends                                $0                       $0             $0
Net Rental Income                                        $0                       $0             $0
Social Security and/or Pensions                          $0                       $0             $0
Net from Partnership K-1s                                N/A                      $0             $0
“S” Corporation Pro Rata Distribution                    $0                       $0             $0
Sale of Assets                                           $0                       $0             $0
Other                                                    $0                       $0             $0
Less Federal Income Tax Liability and
Itemized Deductions                                      $0                       $0             $0
Principal Reduction                                      $0                       $0             $0
TOTAL ANNUAL CASH FLOW:                                  $0                       $0             $0
                 COMMENTS
 Figueroa Terrace Partners LLC was formed 6/21/05. No financial statement, bank statements nor
 SREO was provided for this entity. Per the 2007 and 2006 tax returns provided, this appears to
 be only a shell/pass-through entity with Laeroc Partners, Inc. as its sole owner.




ASSETS                                           Borrower
                                                 Statement        UW / Verified         Notes
Cash                                                     $0                       $0
Marketable Securities (Cash Equivalents)                 $0                       $0
Cash in 1031 account/escrow                              $0                       $0
IRA/Keogh/SEP/Other Retirement accounts                  $0                       $0
Real Estate (100% Owned)                                 $0                       $0
Other and Personal Assets                                $0                       $0
Notes Receivable (Trust Deeds)                           $0                       $0
R. E. Partnership and Fractional Interests               $0                       $0
Business Owned                                           $0                       $0
Life Insurance (Cash Value)                              $0                       $0
TOTAL ASSETS:                                            $0                       $0
                 COMMENTS




LIABILITIES
Auto and/or Revolving Credit                             $0                       $0
Mortgages Payable                                        $0                       $0
Other                                                    $0                       $0
TOTAL LIABILITIES:                                       $0                       $0
                 COMMENTS




Liquidity, Net Worth and Financial Ratios       BWR STMT             UW / Verified
Liquidity                                                $0                    $0
Net Worth                                                $0                    $0
Debt / Worth Ratio                                   #DIV/0! :1            #DIV/0! :1
Cash+Equivalents / Total Assets                      #DIV/0!               #DIV/0!




                                                        Page 27
                                       PRINCIPAL 4
                                Financial
Carve-out Guarantor: Laeroc Partners, Inc. Analysis Summary
(Sole Manager of Guarantor, Figueroa Terrace Partners, LLC)


                                                     Borrower         UW / Verified Tax Returns
                                                     Statement             2006             2005
ANNUAL CASH FLOW                                        6/30/2008
Salary                                                       $0                   $0                   $0
Business Income (Net)                                $1,938,913           $2,047,897           $2,448,373
Interest and/or Dividends                                    $0                   $0                   $0
Net Rental Income                                            $0                   $0                   $0
Social Security and/or Pensions                              $0                   $0                   $0
Net from Partnership K-1s                                    N/A                  $0                   $0
“S” Corporation Pro Rata Distribution                        $0                   $0                   $0
Sale of Assets                                               $0                   $0                   $0
Other                                                        $0                   $0                   $0
Less Federal Income Tax Liability and
Itemized Deductions                                          $0                   $0                   $0
Principal Reduction                                          $0                   $0                   $0
TOTAL ANNUAL CASH FLOW:                             $1,938,913           $2,047,897            $2,448,373
                  COMMENTS
 Note: Kim Benjamin is the President of Laeroc Partners, Inc. but will not be signing individually
 (only on behalf of this entity). Laeroc Partners, Inc. was formed 9/12/89. Laeroc Partners, Inc. is
 primarily a holding company for several of Kim Benjamin's investments, loans, funds, etc. The
 company's primary business is real estate consulting, investments and the formation of
 partnerships and LLC real estate investments. The company also acts as GP and Manager for
 various real estate entities that coduct business in the western United States and Hawaii. Assets
 and liabilities below are reflected as of 6/30/08.

ASSETS                                               Borrower
                                                     Statement        UW / Verified        Notes
Cash                                                   $295,157             $334,167       A
Marketable Securities (Cash Equivalents)                     $0                   $0
Cash in 1031 exchange/escrow                                 $0                   $0
OTHER CURRENT ASSETS                                 $8,058,124           $8,058,124       B
Real Estate (100% Owned)                                     $0                   $0
OTHER ASSETS                                         $3,162,465           $3,162,465       B
FIXED ASSETS                                           $433,224             $433,224       B
R. E. Partnership and Fractional Interests                   $0                   $0
Business Owned                                               $0                   $0
Life Insurance (Cash Value)                                  $0                   $0
TOTAL ASSETS:                                      $11,948,970          $11,987,981
                  COMMENTS
 A) Per bank statements in file
 B) Stated values
 Note: A letter in the file indicates Kim Benjamin, personally, as of October 31, 2006, has a Net
 Worth of $13,660,000. Per Teresa Taylor, Kinecta Portfolio Manager, Kim Benjamin related
 Kinecta deposits and loans as of 8/27/08 are as follows: Deposits $12,378,650.45; Loans
 $13,850,000.00. Therefore, with the pending loan, total Kim Benjamin related loans with
 Kinecta will be $21,350,000.
LIABILITIES
CURRENT LIABILITIES                                  $1,921,635           $1,921,635
Mortgages Payable                                            $0                   $0
LONG TERM LIABILITIES                                  $467,545             $467,545
TOTAL LIABILITIES:                                  $2,389,180           $2,389,180
                  COMMENTS
 Stated values used


Liquidity, Net Worth and Financial Ratios           BWR STMT            UW / Verified
Liquidity                                            $8,353,281             $334,167
Net Worth                                            $9,559,791           $9,598,801
Debt / Worth Ratio                                          0.25 :1              0.25 :1
Cash+Equivalents / Total Assets                             0.70                 0.70




                                                         Page 28
                                                   PRINCIPAL 1
                                             Financial Analysis Summary
Borrower (2): 2851 PCH Partners, LLC, a California limited liability company
(52% Tenant-in-Common)


                                                  Borrower          UW / Verified Tax Returns
                                                  Statement          2007/Current         2006
ANNUAL CASH FLOW                                      6/30/2008
Salary                                                     $0                   $0                     $0
Business Income (Jan-June 2008, Net)               $4,547,822                   $0                     $0
Interest and/or Dividends                                  $0                   $0                     $0
Net Rental Income                                          $0               #DIV/0!                    $0
Social Security and/or Pensions                            $0                   $0                     $0
Net from Partnership K-1s                                  N/A             ($6,451)           ($1,099,653)
“S” Corporation Pro Rata Distribution                      $0                   $0                     $0
Sale of Assets                                             $0                   $0                     $0
Other                                                      $0                   $0                     $0
Less Federal Income Tax Liability and
Itemized Deductions                                        $0                    $0                   $0
Principal Reduction                                        $0                    $0                   $0
TOTAL ANNUAL CASH FLOW:                          $4,547,822            #DIV/0!               ($1,099,653)
                  COMMENTS
 2851 PCH Partners LLC was formed 10/24/06. It is primarily a shell/pass-through entity with the
 exception of one vacant lot owned in hermosa beach per the 2007 tax returns. An SREO was not
 provided. This entity will be used as a 41% tenant-in-common entity to acquire the subject property.
 Note, the business income noted above reflects primarily a non-recurring 'Gain on Sale of Asset' of
 $4,678,100. Adjusting this out, nets an adjusted annualized Net Loss. The only recurring cash flow
 for the purpose of underwriting this entity is the the underwritten Net Cash Flow of the subject
 property being acquired adjusted to 41% as reflected above.

ASSETS                                            Borrower
                                                  Statement         UW / Verified        Notes
Cash                                                  $78,948              $78,948       A
Earnest Money Deposits                                     $0             $143,500       B
Cash in 1031 exchange/escrow                               $0           $3,539,848       C
OTHER CURRENT ASSETS                                       $0                   $0
Real Estate (100% Owned)                           $2,162,257           $2,162,257       D
OTHER ASSETS                                           $6,401               $3,200
Notes Receivable (Trust Deeds)                             $0                   $0
R. E. Partnership and Fractional Interests                 $0                   $0
Business Owned                                             $0                   $0
Life Insurance (Cash Value)                                $0                   $0
TOTAL ASSETS:                                    $2,247,605            $5,927,753
                  COMMENTS
 A) Per Kinecta bank statement in file.
 B) 41% of the earnest money deposits
 C) Per 1031 letter statement in file dated 8/23/08. The 1031 deadline date is 10/08/08.
 D) 41% of the subject property appraised value plus the stated value of the land investment
 E) Stated values discounted to 50%

LIABILITIES
CURRENT LIABILITIES/REQ'D CASH DOWN                 $123,687             $123,687
Mortgages Payable                                         $0                   $0
LONG TERM LIABILITIES                                $16,000              $16,000
TOTAL LIABILITIES:                                 $139,687             $139,687
                  COMMENTS
 A) required cash down to purchase the subject property adjusted to 41%
 B) Subject loan adjusted to 41%


Liquidity, Net Worth and Financial Ratios        BWR STMT            UW / Verified
Liquidity                                             $78,948           $3,638,609
Net Worth                                          $2,107,919           $5,788,067
Debt / Worth Ratio                                        0.07 :1              0.02 :1
Cash+Equivalents / Total Assets                           0.04                 0.63




                                                        Page 29
                                                         PRINCIPAL 1
                                                   Financial Analysis Summary
          K-1 RECAP
          Borrower (2): 2851 PCH Partners, LLC, a California              YEAR: 0
          limited liability company (52% Tenant-in-Common)


             PARTNERSHIP NAME        WITHDRAWALS   GRANT'D PMTS     CONTRIBUTIONS   CASHFLOW
          K.M.J. Family Partnership, LP       $0               $0         $6,451        ($6,451)
          2851 PCH Management, Inc.           $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
operty.                                       $0               $0             $0             $0
                                              $0               $0             $0             $0

          TOTAL                               $0               $0         $6,451        ($6,451)



          K-1 RECAP
          Borrower (2): 2851 PCH Partners, LLC, a California              YEAR: 2006
          limited liability company (52% Tenant-in-Common)


             PARTNERSHIP NAME        WITHDRAWALS   GRANT'D PMTS     CONTRIBUTIONS   CASHFLOW
          K.M.J. Family Partnership, LP       $0               $0     $1,088,656    ($1,088,656)
          2851 PCH Management, Inc.           $0               $0        $10,997       ($10,997)
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0
                                              $0               $0             $0             $0

          TOTAL                               $0               $0     $1,099,653    ($1,099,653)




                                                               Page 30
                                                   PRINCIPAL 3
                                             Financial Analysis Summary
2851 PCH Management Inc., a California corporation
(1% Managing Member of TIC Borrower, 2851 PCH Partners LLC)


                                                  Borrower          UW / Verified Tax Returns
                                                  Statement               N/A                N/A
ANNUAL CASH FLOW                                   Not Provided
Salary                                                     $0                    $0                  $0
Business Income (Net)                                      $0                    $0                  $0
Interest and/or Dividends                                  $0                    $0                  $0
Net Rental Income                                          $0                    $0                  $0
Social Security and/or Pensions                            $0                    $0                  $0
Net from Partnership K-1s                                  N/A                   $0                  $0
“S” Corporation Pro Rata Distribution                      $0                    $0                  $0
Sale of Assets                                             $0                    $0                  $0
Other                                                      $0                    $0                  $0
Less Federal Income Tax Liability and
Itemized Deductions                                        $0                    $0                  $0
Principal Reduction                                        $0                    $0                  $0
TOTAL ANNUAL CASH FLOW:                                    $0                   $0                   $0
                 COMMENTS
 Note: Kim Benjamin is the President of 2851 PCH Management, Inc. but will not be signing
 individually (only on behalf of this entity). No financial statement, bank statements nor SREO
 was provided for this entity. Per the 2007 and 2006 tax returns provided, this appears to be only
 a shell/pass-through entity with Kim Benjamin as its sole owner.

 Note: Individual tax returns of Kim Benjamin are being asked to be waived.


ASSETS                                            Borrower
                                                  Statement         UW / Verified         Notes
Cash                                                       $0                    $0
Marketable Securities (Cash Equivalents)                   $0                    $0
Cash in 1031 account/escrow                                $0                    $0
IRA/Keogh/SEP/Other Retirement accounts                    $0                    $0
Real Estate (100% Owned)                                   $0                    $0
Other and Personal Assets                                  $0                    $0
Notes Receivable (Trust Deeds)                             $0                    $0
R. E. Partnership and Fractional Interests                 $0                    $0
Business Owned                                             $0                    $0
Life Insurance (Cash Value)                                $0                    $0
TOTAL ASSETS:                                              $0                   $0
                 COMMENTS




LIABILITIES
Auto and/or Revolving Credit                               $0                    $0
Mortgages Payable                                          $0                    $0
Other                                                      $0                    $0
TOTAL LIABILITIES:                                         $0                   $0
                 COMMENTS




Liquidity, Net Worth and Financial Ratios        BWR STMT             UW / Verified
Liquidity                                                  $0                    $0
Net Worth                                                  $0                    $0
Debt / Worth Ratio                                     #DIV/0! :1            #DIV/0! :1
Cash+Equivalents / Total Assets                        #DIV/0!               #DIV/0!




                                                        Page 31
 K.M.J. Family Partnership LP, a California limited partnership
(99% Member of TIC Borrower, 2851 PCH Partners LLC)


                                                      Borrower         UW / Verified Tax Returns
                                                      Statement             2006             2005
ANNUAL CASH FLOW                                        12/31/2005
Salary                                                        $0                   $0                     $0
Business Income (Net)                                   $132,921           $1,387,912               $834,593
Interest and/or Dividends                                     $0                   $0                     $0
Net Rental Income                                             $0                   $0                     $0
Social Security and/or Pensions                               $0                   $0                     $0
Net from Partnership K-1s                                     N/A         ($1,425,175)           ($1,981,122)
“S” Corporation Pro Rata Distribution                         $0                   $0                     $0
Sale of Assets                                                $0                   $0                     $0
Other                                                         $0                   $0                     $0
Less Federal Income Tax Liability and
Itemized Deductions                                           $0                   $0                    $0
Principal Reduction                                           $0                   $0                    $0
TOTAL ANNUAL CASH FLOW:                                $132,921             ($37,263)           ($1,146,529)
                  COMMENTS
 K.M.J. Family Partnership, L.P. was formed 6/16/04. It is primarily a shell entity/holding company
 for various cash investments. Bank statements were not provided. 2006 and 2005 net losses
 reflected above are due to cash outflows (contributions) to Kim Benjamin's family trust as noted
 on the K-1 Recap.




ASSETS                                                Borrower
                                                      Statement        UW / Verified        Notes
Cash                                                    $481,635             $248,162       A
Marketable Securities (Cash Equivalents)                      $0                   $0
Cash in 1031 exchange/escrow                                  $0                   $0
OTHER CURRENT ASSETS                                  $2,288,367           $1,144,184       B
Real Estate (100% Owned)                                      $0                   $0
OTHER ASSETS                                                  $0                   $0
Notes Receivable (Trust Deeds)                                $0                   $0
R. E. Partnership and Fractional Interests                    $0                   $0
Business Owned                                                $0                   $0
Life Insurance (Cash Value)                                   $0                   $0
TOTAL ASSETS:                                         $2,770,002          $1,392,345
                  COMMENTS
 Note: Balance Sheet and P&L provided of this entity is as of 12/31/05. A loan condition has been
 added for receipt of a current Balance Sheet and P&L.
 A) Per bank statement in file dated 8/5/08
 B) Stated value discounted to 50%


LIABILITIES
Auto and/or Revolving Credit                                  $0                   $0
Mortgages Payable                                             $0                   $0
Other                                                         $0                   $0
TOTAL LIABILITIES:                                            $0                  $0
                  COMMENTS
 No debt for this entity is reported as of 12/31/05



Liquidity, Net Worth and Financial Ratios             BWR STMT           UW / Verified
Liquidity                                             $2,770,002             $248,162
Net Worth                                             $2,770,002           $1,392,345
Debt / Worth Ratio                                           0.00 :1              0.00 :1
Cash+Equivalents / Total Assets                              1.00                 1.00
K-1 RECAP
 K.M.J. Family Partnership LP, a California limited partnership               YEAR: 2006
(99% Member of TIC Borrower, 2851 PCH Partners LLC)


        PARTNERSHIP NAME             WITHDRAWALS     GRANT'D PMTS      CONTRIBUTIONS   CASHFLOW
Xiao Hui Corporation                           $0                 $0              $0            $0
The Yang/Banjamin Family Trust            $63,398                 $0      $1,488,573   ($1,425,175)
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0

TOTAL                                     $63,398                 $0      $1,488,573   ($1,425,175)



K-1 RECAP
Borrower / Principal:                                                         YEAR: 2005



        PARTNERSHIP NAME             WITHDRAWALS     GRANT'D PMTS      CONTRIBUTIONS   CASHFLOW
Xiao Hui Corporation                           $0                 $0              $0            $0
The Yang/Banjamin Family Trust                 $0                 $0      $1,981,122   ($1,981,122)
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0
                                               $0                 $0              $0            $0

TOTAL                                          $0                 $0      $1,981,122   ($1,981,122)
Xiao Hui Corporation, a California corporation
(99% General Partner of Guarantor, K.M.J. Family Partnership LP)


                                                    Borrower          UW / Verified Tax Returns
                                                    Statement              2006             2005
ANNUAL CASH FLOW                                       12/31/2005
Salary                                                       $0                   $0                  $0
Business Income (Net)                                    $1,329              ($1,973)              ($246)
Interest and/or Dividends                                    $0                   $0                  $0
Net Rental Income                                            $0                   $0                  $0
Social Security and/or Pensions                              $0                   $0                  $0
Net from Partnership K-1s                                    N/A                  $0                  $0
“S” Corporation Pro Rata Distribution                        $0                   $0                  $0
Sale of Assets                                               $0                   $0                  $0
Other                                                        $0                   $0                  $0
Less Federal Income Tax Liability and
Itemized Deductions                                          $0                   $0                  $0
Principal Reduction                                          $0                   $0                  $0
TOTAL ANNUAL CASH FLOW:                                 $1,329              ($1,973)               ($246)
                  COMMENTS
 Note: Kim Benjamin is the President of Xiao Hui Corporation but will not be signing individually
 (only on behalf of this entity). Xiao Hui Corporation was formed 9/24/03.




ASSETS                                              Borrower
                                                    Statement         UW / Verified        Notes
Cash                                                     $2,500               $1,250
Marketable Securities (Cash Equivalents)                     $0                   $0
Cash in 1031 exchange/escrow                                 $0                   $0
OTHER CURRENT ASSETS                                         $0                   $0
Real Estate (100% Owned)                                     $0                   $0
OTHER ASSETS                                             $1,841                 $921
Notes Receivable (Trust Deeds)                               $0                   $0
R. E. Partnership and Fractional Interests                   $0                   $0
Business Owned                                               $0                   $0
Life Insurance (Cash Value)                                  $0                   $0
TOTAL ASSETS:                                           $4,341               $2,171
                  COMMENTS
 Note: A Trial Balance sheet was provided dated 12/31/07 and a regular Balance Sheet and P&L
 was provided dated 12/31/05 and no bank statements were provided. An exception to request
 updated information is recommended due to the apparent insignifcant holdings of this entity.
 A) Stated value discounted to 50% due to no bank statements provided.
 B) Stated value discounted to 50%

LIABILITIES
Auto and/or Revolving Credit                                 $0                   $0
Mortgages Payable                                            $0                   $0
Other                                                        $0                   $0
TOTAL LIABILITIES:                                           $0                  $0
                  COMMENTS
 No liablities are reported for this entity



Liquidity, Net Worth and Financial Ratios          BWR STMT             UW / Verified
Liquidity                                                $2,500               $1,250
Net Worth                                                $4,341               $2,171
Debt / Worth Ratio                                          0.00 :1              0.00 :1
Cash+Equivalents / Total Assets                             0.58                 0.58
Borrower:                                                                                                                       Property:                                                                   0
Loan Amount:             $                         -
                                                                                                                                                 Combined             Borrowers
                                                                                                                                  Average
                             Property                                                                                                             Liquidity          /Guarantors      Management / RE
     Risk Grade                             LTV                                 Property Attributes                                Credit
                              DSCR                                                                                                              (Borrowers /          combined      Investor Experience
                                                                                                                                  Scores
                                                                                                                                                Guarantors)        Debt/Worth Ratio
                                                        Good Quality and/or Condition. No deferred maintenance. Modern                          >2 years total
   1 - Minimal Risk           >1.40        <50%                                                                                     800+                                 <1:1                 +15 Yrs
                                                              in design and amenities. Competes strongly in market.                              debt service
                                                              Average to Good Quality and/or Condition. No deferred
                                                                                                                                                1-2 years total
   2 - Modest Risk           1.31-1.40    51-60%        maintenance. Consistent renovations and at least modest amenities         771-800                              1.0-1.5:1             10-<15Yrs
                                                                                                                                                 debt service
                                                                         evident. Competes well in market
                                                          Average Quality & Condition. If older property, renovations are
                                                                                                                                              7-11 months total
  3 - Average Risk           1.21-1.30    61-70%         evident. May have minimal amenities. May have minor deferred             720-770                              1.5-2.0:1             7-<10Yrs
                                                                                                                                                 debt service
                                                               maintenance. Property is consistent with competition.
4 - Acceptable Risk -
                                                         Average Quality & Condition. If older property, it may be basically
   May have some                                                                                                                               3-6 months total
                             1.11-1.20    71-75%        unrenovated. May have minor deferred maintenance. May not have            696-719                              2.0-2.5:1               3-<7Yr
     elements of                                                                                                                                 debt service
                                                        any amenities and would compete at low end of average in market.
   developing risk
 5 - Special Mention -                                   Some aspects of quality and/or condition may be rated only Fair.
 Currently protected,                                      Property may be unrenovated with no amenities. Deferred                             1-3 months total
                              1.0-1.1     76-80%                                                                                  660-695                              2.5-3.0:1               <3Yrs
 but potentially weak                                     maintenance evident and minor to moderate renovations are                              debt service
with considerable risk                                                  required to compete in market.
  6-Substandard -
                                                        Property has significant deferred maintenance and rates fair to poor
     Significant                                                                                                                               <1 months total
                               <1.0        >85%             in a number of quality and condition categories. Significant          621-659                                >3:1             No Experience
weaknesses and well-                                                                                                                            debt service
                                                                  renovations are required to compete in market.
    defined risk
                                                                                                                                                                                            Significant
                          Significant Collection in                                                                                                                   Nominal or           weaknesses.
  7 - Doubtful - High                                     Significant difficulties with property condition, tenancy, or other
                         negative cash full is highly                                                                               <620      Negative Liquidity     Negative Net           Adversarial
      risk of loss                                                              attributes affecting value.
                             flow.     improbable.                                                                                                                      Worth               fi/borrower
                                                                                                                                                                                           relationship.
                                         Principal
                           Principal                                                                                                               Principal           Principal             Principal
       8 - Loss                         uncollectibl                           Principal uncollectible.                             10%
                         uncollectible.                                                                                                          uncollectible.      uncollectible.        uncollectible.
                                             e.

      Weighting                20%          20%                                20%                                                  10%               10%                 10%                   10%
     Risk Grade                  1            2                                  2                                                   4.5                4                   1                     1
          2                     0.2          0.4                                0.4                                                 0.45               0.4                 0.1                   0.1
     Modest Risk                                            SUBJECTIVE ADJUSTMENTS                                                                Explanation of Subjective Adjustments
                                                                                                                                Adjusted to the middle (4.5) due to no warm bodies (no verifiable
                                                                Average Credit Scores
                                                                                                                                individual credit scores); loan is non-recourse and to entities only.
         2.0             Modest Risk
                                                                                                      KINECTA Federal Credit Union

                                                                           Final Approval
                                                                                                                    Final Approval Expiration Date:   9/2/2011


                  Borrower     0
                                                                                                               Loan #                        TBD




 Carve-out Guarantor

       Property Address        0                                                                       Loan Purpose                      Purchase
                               ,
                                                                                                       Property Type                          $0

   Broker         0                                  Contact         0                                         Phone         -                        ext 0
Broker ID#        0                                   E-mail         0                                          Fax #        -

                                                                            LOAN TERMS

               Loan Amount                $0                             Program               0                   Start / Floor Rate                 0.000%

             Purchase Price          $13,450,000              Rate Sheet Date               1/0/00                 Pre-Pay Penalty                     None
                       LTC               0.0%             Index @ Adjustment                 0.000                 Est. Cash Down                       $0
                       LTV             #DIV/0!           Margin @ Adjustment                0.000%           Broker Points & Fees                         0
           Max 2nd Allowed                N/A                   Qualifying Rate             0.000%                         KFCU Fee                   0.00%
              Term (Years)                 0              Max Life Adjustment               0.000%                  KFCU Ancillary                     TBD
              Amort (Years)                0                   Life Ceiling Rate              N/A                  3rd Party Costs                     TBD
                  Recourse                $0                   Adj . Frequency                $0              Interest Only (Years)                       0
              Tax Impounds               None              Max 1st Adjustment               0.000%                   Rate Lock Fee                      N/A
              Ins. Impounds              None                Max. Subsequent                0.000%                  Est. Closing Date                 1/0/00



                                                                            CONDITIONS
                This Final Approval notification is subject to receipt and approval in form and content the following items without material changes:

       1     Certificate of Insurance in accordance with Kinecta Federal Credit Union's Hazard Insurance requirements with building
             coverage of at least $12,867,236 with an annual premium of no greater than $50,000, a deductible of no greater than $5,000,
             business interruption of $1,578,503 or actual loss sustained, $1,000,000 liability per occurrence and $2,000,000 aggregate
             liability. Policy must be prepaid for 1 year or paid through the loan closing and must have a least 3 months remaining on the
             policy with policy premium paid. Kinecta Federal Credit Union must be named as mortgagee and additional loss payee. 438
             BFU endorsement must be attached or equivalent thereof. No Co-insurance acceptable.
       2     Borrower entities to be become a Kinecta Members
       3     Copy of the executed LOI, acceptable to Kinecta
       4     Current Balance Sheet and Profit & Loss Statement (through at least June 30, 2008) of KMJ Family Partnership, LP
       5     O&M plan for Asbestos containing materials (ACM's) and lead paint.
       6     Evidence, acceptable to Kinecta, all flammable paints and other materials have been stored in fireproof cabinets.
       7     Evidence, acceptable to Kinecta, the 200 gallon above ground tank which stores hydraulic fluid (oil) for the elevator has been
             cleaned and housekeeping practices have been put in place to prevent further spills.
       8     All missing executed tenant estoppel certficates

 Please sign and return a copy of this Final Approval indicating your borrower's acceptance of the terms contained herein as soon as possible. We
 should receive this acceptance within 5 business days of the date of this letter. If this Final Approval is not properly executed and returned in the
 described timeframe, we will have to consider the application suspended.

           Kinecta Federal Credit Union                              Borrower / Broker


 By:                                                         By:                                                   dated                                         ,2008
           Paul Cleary, VP-Business Services                Title:

           Tuesday, July 19, 2011
 THIS LETTER IS NOT A COMMITMENT TO LEND. NOT WITHSTANDING ANY COMMUNICATIONS, COURSE OF CONDUCT OR RELIANCE, LENDER SHALL NOT BE LEGALLY BOUND TO THE
 TRANSACTION OR TERMS DESCRIBED HEREIN OR TO ANY OTHER OBLIGATION TO LEND MONEY UNLESS AND UNTIL LENDER AND APPLICANT EXECUTE AND DELIVER A FORMAL
 WRITTEN COMMITMENT OR EXECUTE AND DELIVER FINAL LOAN DOCUMENTS AND CONDITIONS ABOVE.



  Final Approval Letter                                                                                                                                   Page 36 of 37
WRITTEN COMMITMENT OR EXECUTE AND DELIVER FINAL LOAN DOCUMENTS AND CONDITIONS ABOVE.




 Final Approval Letter                                                                 Page 37 of 37

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:24
posted:7/19/2011
language:English
pages:37