Wells Fargo Commercial Mortgage Securities FWP Free writing prospectus

		FREE WRITING PROSPECTUS
		FILED PURSUANT TO RULE 433
		REGISTRATION FILE NO.: 333-226486-04

Free Writing Prospectus

Structural and Collateral Term Sheet

$774,228,768

(Approximate Initial Pool Balance)

Wells Fargo Commercial Mortgage Trust 2019-C49

as Issuing Entity

Wells Fargo Commercial Mortgage Securities, Inc.

as Depositor

Wells Fargo Bank, National Association

Ladder Capital Finance LLC

Rialto Mortgage Finance, LLC

Barclays Capital Real Estate Inc.

C-III Commercial Mortgage LLC

as Sponsors and Mortgage Loan Sellers

Commercial Mortgage Pass-Through Certificates
Series 2019-C49

February 6, 2019

WELLS FARGO SECURITIES

Co-Lead Manager and

Joint Bookrunner

BARCLAYS

Co-Lead Manager and

Joint Bookrunner

Academy Securities

Co-Manager

Drexel Hamilton

Co-Manager

STATEMENT REGARDING THIS FREE WRITING PROSPECTUS

The depositor has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (‘‘SEC’’) (SEC File No. 333-226486) for the offering to which this communication relates. Before you invest, you should read the prospectus in the registration statement and other documents the depositor has filed with the SEC for more complete information about the depositor, the issuing entity and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the depositor, any underwriter, or any dealer participating in the offering will arrange to send you the prospectus after filing if you request it by calling toll free 1-800-745-2063 (8 a.m. – 5 p.m. EST) or by emailing wfs.cmbs@wellsfargo.com.

Nothing in this document constitutes an offer of securities for sale in any jurisdiction where the offer or sale is not permitted. The information contained herein is preliminary as of the date hereof, supersedes any such information previously delivered to you and will be superseded by any such information subsequently delivered and ultimately by the final prospectus relating to the securities. These materials are subject to change, completion, supplement or amendment from time to time.

This free writing prospectus has been prepared by the underwriters for information purposes only and does not constitute, in whole or in part, a prospectus for the purposes of Directive 2003/71/EC (as amended) and/or Part VI of the Financial Services and Markets Act 2000, as amended, or other offering document.

STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES AND OTHER INFORMATION

The attached information contains certain tables and other statistical analyses (the “Computational Materials”) which have been prepared in reliance upon information furnished by the Mortgage Loan Sellers. Numerous assumptions were used in preparing the Computational Materials, which may or may not be reflected herein. As such, no assurance can be given as to the Computational Materials’ accuracy, appropriateness or completeness in any particular context; or as to whether the Computational Materials and/or the assumptions upon which they are based reflect present market conditions or future market performance. The Computational Materials should not be construed as either projections or predictions or as legal, tax, financial or accounting advice. You should consult your own counsel, accountant and other advisors as to the legal, tax, business, financial and related aspects of a purchase of these securities. Any weighted average lives, yields and principal payment periods shown in the Computational Materials are based on prepayment and/or loss assumptions, and changes in such prepayment and/or loss assumptions may dramatically affect such weighted average lives, yields and principal payment periods. In addition, it is possible that prepayments or losses on the underlying assets will occur at rates higher or lower than the rates shown in the attached Computational Materials. The specific characteristics of the securities may differ from those shown in the Computational Materials due to differences between the final underlying assets and the preliminary underlying assets used in preparing the Computational Materials. The principal amount and designation of any security described in the Computational Materials are subject to change prior to issuance. None of Wells Fargo Securities, LLC, Barclays Capital Inc., Academy Securities, Inc., Drexel Hamilton, LLC, or any of their respective affiliates, make any representation or warranty as to the actual rate or timing of payments or losses on any of the underlying assets or the payments or yield on the securities. The information in this presentation is based upon management forecasts and reflects prevailing conditions and management’s views as of this date, all of which are subject to change. In preparing this presentation, we have relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources or which was provided to us by or on behalf of the Mortgage Loan Sellers or which was otherwise reviewed by us.

This free writing prospectus contains certain forward-looking statements. If and when included in this free writing prospectus, the words “expects”, “intends”, “anticipates”, “estimates” and analogous expressions and all statements that are not historical facts, including statements about our beliefs or expectations, are intended to identify forward-looking statements. Any forward-looking statements are made subject to risks and uncertainties which could cause actual results to differ materially from those stated. Those risks and uncertainties include, among other things, declines in general economic and business conditions, increased competition, changes in demographics, changes in political and social conditions, regulatory initiatives and changes in customer preferences, many of which are beyond our control and the control of any other person or entity related to this offering. The forward-looking statements made in this free writing prospectus are made as of the date stated on the cover. We have no obligation to update or revise any forward-looking statement.

Wells Fargo Securities is the trade name for the capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including but not limited to Wells Fargo Securities, LLC, a member of NYSE, FINRA, NFA and SIPC, Wells Fargo Prime Services, LLC, a member of FINRA, NFA and SIPC, and Wells Fargo Bank, N.A. Wells Fargo Securities, LLC and Wells Fargo Prime Services, LLC are distinct entities from affiliated banks and thrifts.

IMPORTANT NOTICE REGARDING THE OFFERED CERTIFICATES

The information herein is preliminary and may be supplemented or amended prior to the time of sale. In addition, the Offered Certificates referred to in these materials and the asset pool backing them are subject to modification or revision (including the possibility that one or more classes of certificates may be split, combined or eliminated at any time prior to issuance or availability of a final prospectus) and are offered on a “when, as and if issued” basis.

The underwriters described in these materials may from time to time perform investment banking services for, or solicit investment banking business from, any company named in these materials. The underwriters and/or their affiliates or respective employees may from time to time have a long or short position in any security or contract discussed in these materials.

The information contained herein supersedes any previous such information delivered to any prospective investor and will be superseded by information delivered to such prospective investor prior to the time of sale.

IMPORTANT NOTICE RELATING TO AUTOMATICALLY-GENERATED EMAIL DISCLAIMERS

Any legends, disclaimers or other notices that may appear at the bottom of any email communication to which this free writing prospectus is attached relating to (1) these materials not constituting an offer (or a solicitation of an offer), (2) any representation that these materials are accurate or complete and may not be updated or (3) these materials possibly being confidential, are not applicable to these materials and should be disregarded. Such legends, disclaimers or other notices have been automatically generated as a result of these materials having been sent via Bloomberg or another system.

THE INFORMATION IN THIS STRUCTURAL AND COLLATERAL TERM SHEET IS NOT COMPLETE AND MAY BE AMENDED PRIOR TO THE TIME OF SALE. THIS TERM SHEET IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT A SOLICITATION OF AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.

Wells Fargo Commercial Mortgage Trust 2019-C49

Transaction Highlights

A. Transaction Highlights

Mortgage Loan Sellers:

Mortgage Loan Seller	Number of Mortgage Loans	Number of Mortgaged Properties	Aggregate Cut-off Date Balance	% of Initial Pool Balance
Wells Fargo Bank, National Association	20	23	$291,272,404	37.6%
Ladder Capital Finance LLC	14	15	169,669,884	21.9
Rialto Mortgage Finance, LLC	13	13	150,175,367	19.4
Barclays Capital Real Estate Inc.	9	9	119,703,524	15.5
C-III Commercial Mortgage LLC	8	11	43,407,589	5.6
Total	64	71	$774,228,768	100.0%

Loan Pool:

Initial Pool Balance:	$774,228,768
Number of Mortgage Loans:	64
Average Cut-off Date Balance per Mortgage Loan:	$12,097,324
Number of Mortgaged Properties:	71
Average Cut-off Date Balance per Mortgaged Property⁽¹⁾:	$10,904,631
Weighted Average Mortgage Interest Rate:	5.158%
Ten Largest Mortgage Loans as % of Initial Pool Balance:	46.0%
Weighted Average Original Term to Maturity or ARD (months):	116
Weighted Average Remaining Term to Maturity or ARD (months):	115
Weighted Average Original Amortization Term (months)⁽²⁾:	354
Weighted Average Remaining Amortization Term (months)⁽²⁾:	353
Weighted Average Seasoning (months):	2

(1)

Information regarding mortgage loans secured by multiple properties is based on an allocation according to relative appraised values or the allocated loan amounts or property-specific release prices set forth in the related loan documents or such other allocation as the related mortgage loan seller deemed appropriate.

(2)

Excludes any mortgage loan that does not amortize.

Credit Statistics:

Weighted Average U/W Net Cash Flow DSCR⁽¹⁾:	1.76x
Weighted Average U/W Net Operating Income Debt Yield⁽¹⁾:	10.9%
Weighted Average Cut-off Date Loan-to-Value Ratio⁽¹⁾:	62.8%
Weighted Average Balloon or ARD Loan-to-Value Ratio⁽¹⁾:	58.3%
% of Mortgage Loans with Additional Subordinate Debt⁽²⁾:	0.0%
% of Mortgage Loans with Single Tenants⁽³⁾:	8.9%

(1)

With respect to any mortgage loan that is part of a whole loan, loan-to-value ratio, debt service coverage ratio and debt yield calculations include the relatedpari passucompanion loan(s) (unless otherwise stated). The debt service coverage ratio, debt yield and loan-to-value ratio information do not take into account any subordinate debt (whether or not secured by the related mortgaged property), that currently exists or is allowed under the terms of any mortgage loan. See “Description of the Mortgage Pool—Mortgage Pool Characteristics” in the Preliminary Prospectus and Annex A-1 to the Preliminary Prospectus.

(2)

The percentage figure expressed as “% of Mortgage Loans with Additional Subordinate Debt” is determined as a percentage of the initial pool balance and does not take into account any future subordinate debt (whether or not secured by the mortgaged property), if any, that may be permitted under the terms of any mortgage loan or the pooling and servicing agreement. See “Description of the Mortgage Pool—Additional Indebtedness—Other Unsecured Indebtedness” in the Preliminary Prospectus.

(3)

Excludes mortgage loans that are secured by multiple single tenant properties.

Wells Fargo Commercial Mortgage Trust 2019-C49

Characteristics of the Mortgage Pool

B. Summary of the Whole Loans

Loan Name	Mortgage Loan Seller in WFCM 2019-C49	Note(s)⁽¹⁾	Original Balance	Holder of Note	Lead Servicer for Whole Loan	Master Servicer Under Lead Securitization Servicing Agreement	Special Servicer Under Lead Securitization Servicing Agreement
Dominion Tower	LCF	A-1	$30,350,000	LCF	Yes	Wells Fargo Bank, National Association⁽²⁾	Midland Loan Services, a Division of PNC Bank, National Association⁽²⁾
		A-2A	$15,650,000	LCF	No
		A-3A	$15,350,000	WFCM 2019-C49	No
One River Place	Barclays	A-1	$15,000,000	BBCMS 2018-C2	Yes	Wells Fargo Bank, National Association	LNR Partners, LLC
One River Place	Barclays	A-2	$10,000,000	WFCM 2019-C49	No	Wells Fargo Bank, National Association	LNR Partners, LLC

(1)

Unless otherwise indicated, each note not currently held by a securitization trust is expected to be contributed to a future securitization. No assurance can be provided that any such note will not be split further.

(2)

The related whole loan is expected to initially be serviced under the WFCM 2019-C49 pooling and servicing agreement until the securitization of the related “lead” pari passu note (namely, the related pari passu note marked “Yes” in the column entitled “Lead Servicer for Whole Loan”), after which the related whole loan will be serviced under the pooling and servicing agreement governing such securitization of the related “lead” pari passu note. The master servicer and special servicer for such securitization will be identified in a notice, report or statement to holders of the WFCM 2019-C49 certificates after the closing of such securitization.

Wells Fargo Commercial Mortgage Trust 2019-C49

Characteristics of the Mortgage Pool

C. Property Type Distribution⁽¹⁾

(graphic)

Property Type	Number of Mortgaged Properties	Aggregate Cut-off Date Balance ($)	% of Initial Pool Balance (%)	Weighted Average Cut-off Date LTV Ratio (%)	Weighted Average Balloon LTV Ratio (%)	Weighted Average U/W NCF DSCR (x)	Weighted Average U/W NOI Debt Yield (%)	Weighted Average U/W NCF Debt Yield (%)	Weighted Average Mortgage Rate (%)
Retail	17	$230,671,236	29.8%	64.1%	60.5%	1.69x	10.0%	9.5%	5.055%
Anchored	7	158,929,896	20.5	64.6	62.3	1.68	9.6	9.1	5.035
Shadow Anchored	2	34,487,500	4.5	65.4	58.4	1.73	11.5	11.0	4.919
Single Tenant	6	26,629,277	3.4	57.8	52.8	1.78	10.6	10.5	5.245
Unanchored	2	10,624,564	1.4	69.0	59.5	1.44	9.4	9.1	5.330
Hospitality	9	169,452,609	21.9	62.6	54.4	1.97	13.9	12.5	5.361
Full Service	4	88,091,940	11.4	63.0	52.5	1.90	14.4	12.7	5.334
Extended Stay	3	65,784,928	8.5	62.0	57.7	2.15	13.6	12.4	5.316
Limited Service	2	15,575,741	2.0	62.7	51.0	1.57	12.8	11.3	5.697
Office	10	114,667,011	14.8	65.3	61.9	1.97	11.8	10.6	4.959
Suburban	7	87,767,011	11.3	66.4	63.3	1.96	11.7	10.4	4.927
CBD	2	25,350,000	3.3	62.6	57.9	1.91	11.8	10.9	5.071
R&D	1	1,550,000	0.2	43.1	43.1	3.26	16.9	16.5	4.985
Multifamily	10	108,372,091	14.0	62.7	59.8	1.38	8.4	8.1	5.290
Garden	7	65,672,091	8.5	64.4	61.0	1.42	8.7	8.4	5.258
Mid-Rise	1	17,700,000	2.3	56.4	56.4	1.39	7.6	7.5	5.320
Student Housing	1	14,100,000	1.8	61.6	54.9	1.29	8.9	8.6	5.350
Mid Rise	1	10,900,000	1.4	64.5	64.5	1.29	7.1	7.0	5.355
Self Storage	9	67,846,128	8.8	61.7	57.8	1.83	10.5	10.3	4.953
Self Storage	9	67,846,128	8.8	61.7	57.8	1.83	10.5	10.3	4.953
Industrial	3	31,900,000	4.1	56.4	56.4	1.83	9.8	9.6	5.180
Warehouse	2	17,500,000	2.3	51.2	51.2	1.95	10.3	10.1	5.131
Manufacturing/ Warehouse	1	14,400,000	1.9	62.6	62.6	1.69	9.2	9.0	5.239
Manufactured Housing Community	10	29,969,692	3.9	65.7	56.8	1.40	9.6	9.4	5.408
Manufactured Housing Community	10	29,969,692	3.9	65.7	56.8	1.40	9.6	9.4	5.408
Mixed Use	3	21,350,000	2.8	46.0	44.6	1.70	10.4	9.8	5.336
Retail/Office	2	15,800,000	2.0	45.1	45.1	1.64	9.5	9.0	5.401
Industrial/Office	1	5,550,000	0.7	48.3	42.9	1.85	13.1	12.1	5.150
Total/Weighted Average:	71	$774,228,768	100.0%	62.8%	58.3%	1.76x	10.9%	10.2%	5.158%

(1)

Because this table presents information relating to the mortgaged properties and not the mortgage loans, the information for mortgage loans secured by more than one mortgaged property is based on allocated amounts (allocating the principal balance of the mortgage loan to each of those properties according to the relative appraised values of the mortgaged properties or the allocated loan amounts or property-specific release prices set forth in the related mortgage loan documents or such other allocation as the related mortgage loan seller deemed appropriate). With respect to any mortgage loan that is part of a whole loan, the loan-to-value ratio, debt service coverage ratio and debt yield calculations include the relatedpari passu companion loan(s) (unless otherwise stated). With respect to each mortgage loan, debt service coverage ratio, debt yield and loan-to-value ratio information do not take into account any subordinate debt (whether or not secured by the related mortgaged property) that currently exists or is allowed under the terms of such mortgage loan. See Annex A-1 to the Preliminary Prospectus.

Wells Fargo Commercial Mortgage Trust 2019-C49

Certain Terms and Conditions

D. Large Loan Summaries

No. 1 – Innisfree Portfolio

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Ladder Capital Finance LLC			Single Asset/Portfolio:	Portfolio
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Hospitality – Full Service
Original Principal Balance:		$58,500,000			Location:	Fort Walton Beach, FL
Cut-off Date Balance:		$58,415,464			Size:	330 Rooms
% of Initial Pool Balance:		7.5%			Cut-off Date Balance Per Room	$177,017
Loan Purpose:		Refinance			Maturity Date Balance Per Room:	$146,725
					Year Built/Renovated:	Various/NAP
Borrower Sponsor:		Julian MacQueen			Title Vesting⁽²⁾:	Leasehold
Guarantor:		Julian MacQueen			Property Manager:	Self-managed
Mortgage Rate:		5.2100%			Current Occupancy (As of):	85.2% (11/30/2018)
Note Date:		January 29, 2019			YE 2017 Occupancy⁽³⁾:	80.9%
Seasoning:		1 month			YE 2016 Occupancy⁽³⁾:	NAV
Maturity Date:		February 6, 2029			YE 2015 Occupancy⁽³⁾:	NAV
IO Period:		0 months			YE 2014 Occupancy⁽³⁾:	NAV
Loan Term (Original):		120 months			Appraised Value:	$94,800,000
Amortization Term (Original):		360 months			Appraised Value Per Room:	$287,273
Loan Amortization Type:		Amortizing Balloon			Appraisal Valuation Date:	August 21, 2018
Call Protection:		L(25),D(91),O(4)
Lockbox Type:		Hard/Springing Cash Management
Additional Debt:		None			Underwriting and Financial Information
Additional Debt Type (Balance):		NAP			TTM NOI (11/30/2018)⁽³⁾:	$8,652,214
					YE 2017 NOI⁽³⁾:	$6,094,140
					YE 2016 NOI⁽³⁾:	$3,248,699
					YE 2015 NOI⁽³⁾:	NAV
					U/W Revenues:	$21,874,518
Escrows and Reserves⁽¹⁾					U/W Expenses:	$13,502,902
	Initial		Monthly	Cap	U/W NOI:	$8,371,616
Taxes	$131,683		$43,894	NAP	U/W NCF:	$7,496,635
Insurance	$213,199		$23,689	NAP	U/W DSCR based on NOI/NCF:	2.17x / 1.94x
FF&E Reserve	$0		⁽¹⁾	NAP	U/W Debt Yield based on NOI/NCF:	14.3% / 12.8%
PIP Reserve	$0		⁽¹⁾	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	17.3% / 15.5%
Seasonality Reserve	$0		⁽¹⁾	NAP	Cut-off Date LTV Ratio:	61.6%
Ground Lease Reserve	$0		⁽¹⁾	NAP	LTV Ratio at Maturity:	51.1%

Sources and Uses
Sources			Uses
Original loan amount	$58,500,000	100.0%	Loan payoff	$48,731,340	83.3	%
			Upfront reserves	344,882	0.6
			Closing costs	1,180,859	2.0
			Return of equity	8,242,919	14.1
Total Sources	$58,500,000	100.0%	Total Uses	$58,500,000	100.0	%

(1)

See “Escrows” section below.

(2)

See “Ground Lease” section below.

(3)

Occupancy information and historical operating statements for periods prior to 2017 are not available with respect to the entire portfolio because the Hilton Garden Inn Fort Walton Beach property was built and began operations in May 2017. The increase in NOI from YE 2017 to TTM (11/30/2018) can be attributed to the YE 2017 NOI only including income from the Hilton Garden Inn Fort Walton Beach property for the portion of 2017 since it began operations. See “Cash Flow Analysis” section below.

The Mortgage Loan. The mortgage loan (the “Innisfree Portfolio Mortgage Loan”) is evidenced by three promissory notes secured by a first mortgage encumbering the leasehold interest in two full service hotels, the Hilton Garden Inn Fort Walton Beach and the Holiday Inn Fort Walton Beach, located in Fort Walton Beach, Florida (each an “Innisfree Portfolio Property” and together, the “Innisfree Portfolio Properties”).

Hospitality – Full Service	Loan #1	Cut-off Date Balance:	$58,415,464
1299 & 1297 Miracle Strip Parkway Southeast	Innisfree Portfolio	Cut-off Date LTV:	61.6%
Fort Walton Beach, FL 32548		U/W NCF DSCR:	1.94x
		U/W NOI Debt Yield:	14.3%

The Borrower and Borrower Sponsor.The borrowers under the Innisfree Portfolio Mortgage Loan are Emerald Breeze Resort Group, LLC (the “Emerald I Borrower”) and Emerald Breeze Resort Group II LLC (the “Emerald II Borrower”), each a Florida limited liability company with an independent director. Legal counsel to the borrower delivered a non-consolidation opinion in connection with the origination of the Innisfree Portfolio Mortgage Loan. The nonrecourse carve-out guarantor of the Innisfree Portfolio Mortgage Loan is Julian MacQueen.

Mr. MacQueen is the chairman and founder of Innisfree Hotels and has over 30 years of real estate experience. Innisfree Hotels owns or manages over 3,300 hotel rooms and has over 1,500 employees. Since 2011, the company has developed 870 new beachfront rooms along the Gulf Coast.

The Properties.The Innisfree Portfolio Properties include two adjacent beachfront hotels, comprised of a total of 330-rooms located in Fort Walton Beach, Florida on an approximately 17.1 acre site. The Innisfree Portfolio Properties are located in southern Okaloosa County, along the south side of Choctawhatchee Bay and along the Gulf of Mexico, off U.S. Highway 98, which provides access across the Florida Panhandle. The Innisfree Portfolio Properties are 7.3 miles from Destin-Fort Walton Beach Airport, which had a passenger count of 915,650 in 2016, the highest passenger count in its 60-year history and an 18 percent increase over 2015. In 2017, the airport set a new record with 1,134,209 passengers, accounting for an approximately 24% increase over 2016.

The Hilton Garden Inn Fort Walton Beach is a 178-room, full service, five-story oceanfront hotel with a unit mix consisting of 139 double queen rooms, 36 king rooms and 3 king suites. Amenities at the property include an indoor and outdoor pool, a whirlpool, a rock climbing wall, a fitness room, outdoor fire pits, a business center and self-guest laundry facilities. The Holiday Inn Fort Walton Beach is a 152-room, full service, five-story oceanfront hotel with a unit mix consisting of 106 double queen rooms , 30 king rooms and 16 king suites. Amenities at the property include an indoor and outdoor pool, a whirlpool, a fitness room, a gaming room, a business center, and self-guest laundry facilities. Both hotels share the Riptides Grill, a Lobby Bar and the Gilligan’s Tiki Bar. The Innisfree Portfolio Properties are subject to a 50-year ground lease with approximately forty-four years remaining before expiration on October 30, 2062. The monthly ground lease base rent for each hotel is the greater of $12,500 (subject to future upward adjustment based on the Consumer Price Index for all Urban Consumers) and 3.25% of the respective hotel’s monthly revenue.

The surrounding area, referred to as the South Walton Beaches, has several major demand drivers including the area beaches, Wild Willy’s Adventure Zone (0.4 miles), the Air Force Armament Museum (7.0 miles), Big Kahuna’s Water and Adventure Park (7.6 miles), and the Indian Bayou Golf and Country Club (8.3 miles). In addition, the Innisfree Portfolio Properties are located approximately 5.2 miles from Destin Harbor Boardwalk. The Destin Harbor neighborhood features one of the largest commercial sport-fishing fleets on the Gulf Coast.

Property	Year Built/Renovated	Rooms	Allocated Cut-off Date Principal Balance	% of Portfolio Cut-off Date Principal Balance	Cut-off Date Principal Balance Per Room	Appraised Value	% of Appraised Value
Hilton Garden Inn Fort Walton Beach	2017/NAP	178	$34,500,000	59.0%	$193,820	$54,700,000	57.7%
Holiday Inn Fort Walton Beach	2014/NAP	152	$24,000,000	41.0%	$157,895	$40,100,000	42.3%
Total/Average		330	$58,500,000	100.0%	$177,273	$94,800,000	100.0%

The following table presents certain information relating to the 2017 demand analysis with respect to the Innisfree Portfolio Properties based on market segmentation, as provided in the appraisal:

2017 Market Segmentation

(Hilton Garden Inn Fort Walton Beach)

Corporate	Meeting/Group	Leisure
15.0%	20.0%	65.0%

Hospitality – Full Service	Loan #1	Cut-off Date Balance:	$58,415,464
1299 & 1297 Miracle Strip Parkway Southeast	Innisfree Portfolio	Cut-off Date LTV:	61.6%
Fort Walton Beach, FL 32548		U/W NCF DSCR:	1.94x
		U/W NOI Debt Yield:	14.3%

2017 Market Segmentation

(Holiday Inn Fort Walton Beach)

Corporate	Meeting/Group	Leisure
10.0%	10.0%	80.0%

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the historical operating performance and the underwritten net cash flow at the Innisfree Portfolio Properties:

Cash Flow Analysis

	2017⁽¹⁾	TTM 11/30/2018	U/W	% of U/W Total Revenue⁽²⁾	U/W $ per Room
Occupancy	80.9%	85.2%	85.2%
ADR	$172.96	$180.59	$180.59
RevPAR	$140.01	$153.84	$153.84

Room Revenue	$13,599,337	$18,529,991	$18,529,991	84.7%	$56,151
F&B Revenue	1,661,142	2,658,427	2,658,427	12.2	8,056
Other Revenue⁽³⁾	540,156	686,100	686,100	3.1	2,079
Total Revenue⁽¹⁾	$15,800,635	$21,874,518	$21,874,518	100.0%	$66,286

Room Expense	2,724,182	3,587,261	3,587,261	16.4	10,870
F&B Expense	1,603,394	2,210,506	2,210,506	10.1	6,699
Other Department Expense	124,237	122,771	122,771	0.6	372
Total Department Expenses	4,451,813	5,920,538	5,920,538	27.1	17,941
Gross Operating Income	$11,348,823	$15,953,980	$15,953,980	72.9%	$48,345

Total Undistributed Expenses	4,307,515	6,026,377	6,144,114	28.1	18,619
Gross Operating Profit	$7,041,308	$9,927,603	$9,809,866	44.8%	$29,727

Total Fixed Charges	947,168	1,275,388	1,438,250	6.6	4,358
Total Operating Expenses	$9,706,495	$13,222,304	$13,502,902	61.7%	$40,918

Net Operating Income⁽¹⁾	$6,094,140	$8,652,214	$8,371,616	38.3%	$25,369
FF&E	0	0	874,981	4.0	2,651
Net Cash Flow	$6,094,140	$8,652,214	$7,496,635	34.3%	$22,717

NOI DSCR	1.58x	2.24x	2.17x
NCF DSCR	1.58x	2.24x	1.94x
NOI DY	10.4%	14.8%	14.3%
NCF DY	10.4%	14.8%	12.8%

(1)

Historical operating statements for periods prior to 2017 are not available with respect to the entire portfolio because the Hilton Garden Inn Fort Walton Beach property was built and began operations in May 2017. The increase in Total Revenue and NOI from 2017 to TTM 11/30/2018 can be attributed to the 2017 Total Revenue and 2017 NOI only including income from the Hilton Garden Inn Fort Walton Beach property for the portion of 2017 since it began operations.

(2)	% of U/W Total Revenue for Room Expense, F&B Expense and Other Department Expenses are based on their corresponding revenue line items.

(3)

Other Revenue includes income generated from miscellaneous fees, telephone, and ground lease pass through. The ground lease pass through is collected from guests to offset ground rent charged under the Ground Lease (defined below) to the government. The majority but not all of the lease fee is passed through.

Appraisal.The appraiser for the Holiday Inn Fort Walton Beach property concluded to an “as-is” appraised value of $40,100,000 with an appraisal valuation date of August 21, 2018. The appraiser for the Hilton Garden Inn Fort Walton Beach property concluded to an “as-is” appraised value of $54,700,000 with an appraisal valuation date of August 21, 2018.

Environmental Matters. According to the Phase I environmental assessments dated August 30, 2018, there was no evidence of any recognized environmental conditions at the Holiday Inn Fort Walton Beach property or the Hilton Garden Inn Fort Walton Beach property.

Market Overview and Competition.The Innisfree Portfolio Properties are located in Fort Walton Beach, Florida along the Gulf of Mexico. In 2016, the Destin-Fort Walton Beach Airport had the highest passenger count in its 60 year history (915,650 people), accounting for an approximately 18% increase over 2015. In 2017, the airport set a new record with 1,134,209 passengers, accounting for an approximately 24% increase over 2016. South Walton, which encompasses a strand of 16 distinct beach neighborhoods, is known for its turquoise waters and sugar sand beaches. The Innisfree Portfolio Properties are located 5.2 miles from Destin Harbor,

Hospitality – Full Service	Loan #1	Cut-off Date Balance:	$58,415,464
1299 & 1297 Miracle Strip Parkway Southeast	Innisfree Portfolio	Cut-off Date LTV:	61.6%
Fort Walton Beach, FL 32548		U/W NCF DSCR:	1.94x
		U/W NOI Debt Yield:	14.3%

which, according to the appraisal, is known as “The World’s Luckiest Fishing Village” and features one of the largest commercial sport-fishing fleets on the Gulf Coast.

Estimated population in 2018 within a one-, three-, and five- mile radius of the Innisfree Portfolio Properties was 2,435, 19,187, and 64,233, respectively. Estimated average household income in 2018 within the same one-, three-, and five- mile radius was $75,275, $70,887, and $71,301, respectively.

The following table presents historical occupancy, ADR, RevPAR and penetration rates relating to the Hilton Garden Inn Fort Walton Beach’s competitive set:

Subject and Market Historical Occupancy, ADR and RevPAR⁽¹⁾

(Hilton Garden Inn Fort Walton Beach)

	Competitive Set			Hilton Garden Inn Fort Walton Beach			Penetration Factor
Year	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR
TTM 11/30/2018	74.1%	$164.68	$122.08	84.2%	$195.44	$164.47	113.5%	118.7%	134.7%
12/31/2017	73.7%	$161.28	$118.82	72.5%	$187.95	$136.32	98.4%	116.5%	114.7%
12/31/2016	NAP	NAP	NAP	NAP	NAP	NAP	NAP	NAP	NAP
12/31/2015	NAP	NAP	NAP	NAP	NAP	NAP	NAP	NAP	NAP

(1)

Information obtained from third party hospitality research reports dated December 19, 2018 and January 18, 2018. The competitive set includes the following hotels: Four Points by Sheraton Destin Fort Walton Beach, Hampton Inn Fort Walton Beach, Holiday Inn Resort Fort Walton Beach and Courtyard Fort Walton Beach West Destin.

The following table presents historical occupancy, ADR, RevPAR and penetration rates relating to the Holiday Inn Fort Walton Beach’s competitive set:

Subject and Market Historical Occupancy, ADR and RevPAR⁽¹⁾

(Holiday Inn Fort Walton Beach)

	Competitive Set			Holiday Inn Fort Walton Beach			Penetration Factor
Year	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR
TTM 11/30/2018	60.8%	$169.55	$103.02	85.9%	$171.12	$146.91	141.3%	100.9%	142.6%
12/31/2017	60.5%	$165.97	$100.35	86.9%	$164.96	$143.39	143.8%	99.4%	142.9%
12/31/2016	66.0%	$156.68	$103.36	82.7%	$172.33	$142.56	125.4%	110.0%	137.9%
12/31/2015	61.7%	$155.77	$96.07	82.2%	$169.46	$139.25	133.2%	108.8%	145.0%

(1)

Information obtained from third party hospitality research reports dated December 18, 2018 and January 18, 2018. The competitive set includes the following hotels: Four Points by Sheraton Destin Fort Walton Beach, Ramada Plaza Fort Walton Beach Resort Destin (12/31/2017, 12/31/2016, 12/31/2015 only), The Island by Hotel RL (TTM 11/30/2018 only), Wyndham Garden Hotel Fort Walton Beach, Best Western Fort Walton Beachfront and Hampton Inn Fort Walton Beach.

The appraiser for the Hilton Garden Inn Fort Walton Beach property identified four comparable hotel properties ranging from 85 rooms to 216 rooms that were constructed between 1961 and 2016. The competitive set reported a weighted average occupancy of approximately 72.1%, with average daily rates ranging from $145.00 to $175.00. The competitive set’s weighted average revenue per room was $116.79. The appraiser for the Holiday Inn Fort Walton Beach property identified five comparable hotel properties ranging from 100 rooms to 222 rooms that were constructed between 1961 and 2000. The competitive set reported a weighted average occupancy of approximately 57%, with average daily rates ranging from $145.00 to $180.00. The competitive set’s weighted average revenue per room was $97.

The following tables present TTM 7/31/2018 occupancy, estimated ADR and estimated RevPAR relating to each Innisfree Portfolio Property’s primary competitive set according to the appraisal:

Hospitality – Full Service	Loan #1	Cut-off Date Balance:	$58,415,464
1299 & 1297 Miracle Strip Parkway Southeast	Innisfree Portfolio	Cut-off Date LTV:	61.6%
Fort Walton Beach, FL 32548		U/W NCF DSCR:	1.94x
		U/W NOI Debt Yield:	14.3%

Primary Competitive Set⁽¹⁾

Property Name	Location	Rooms	Year Built/Renov.	TTM 7/31/2018 Occupancy	Estimated TTM 7/31/2018 ADR	Estimated TTM 7/31/2018 RevPAR
Hilton Garden Inn Fort Walton Beach – Subject⁽¹⁾	Fort Walton Beach, FL	178	2017/NAP	84.3%	$193.85	$163.43
Four Points by Sheraton Destin Fort Walton Beach	Destin, FL	216	1961/NAV	60.0% - 65.0%	$165.00 - $175.00	$105.00 – $110.00
Hampton Inn Fort Walton Beach	Fort Walton Beach, FL	100	2000/NAV	75.0% - 80.0%	$145.00 - $155.00	$115.00 – $120.00
Holiday Inn Fort Walton Beach	Fort Walton Beach, FL	152	2014/NAV	80.0% - 85.0%	$160.00 - $170.00	$135.00 - $140.00
Courtyard Fort Walton Beach – West Destin	Fort Walton Beach, FL	85	2016/NAV	65.0% - 70.0%	$145.00 - $155.00	$100.00 - $105.00

(1)

Information obtained from the appraisal, other than for the Hilton Garden Inn Fort Walton Beach – Subject, for which information was obtained from the TTM 11/30/2018 underwriting.

Primary Competitive Set⁽¹⁾

Property Name	Location	Rooms	Year Built/Renov.	TTM 7/31/2018 Occupancy	Estimated TTM 7/31/2018 ADR	Estimated TTM 7/31/2018 RevPAR
Holiday Inn Fort Walton Beach – Subject⁽¹⁾	Fort Walton Beach, FL	152	2014/NAP	86.2%	$165.40	$142.61
Four Points by Sheraton Destin Fort Walton Beach	Destin, FL	216	1961/NAV	60.0% - 65.0%	$165.00 - $175.00	$105.00 – $110.00
The Island by Hotel RL	Fort Walton Beach, FL	222	1971/NAV	35.0% - 40.0%	$165.00 - $175.00	$60.00 – $65.00
Wyndham Garden Fort Walton Beach Destin	Pensacola Beach, FL	195	1974/NAV	70.0% - 75.0%	$170.00 - $180.00	$120.00 - $125.00
Best Western Fort Walton Beachfront	Fort Walton Beach, FL	100	1998/NAV	65.0% - 70.0%	$170.00 - $180.00	$115.00 - $120.00
Hampton Inn Fort Walton Beach	Fort Walton Beach, FL	100	2000/NAV	75.0% - 80.0%	$145.00 - $155.00	$115.00 - $120.00

(1)

Information obtained from the appraisal, other than for Holiday Inn Fort Walton Beach – Subject, for which information was obtained from the TTM 11/30/2018 underwriting.

Escrows.

Real Estate Taxes – The Innisfree Portfolio Mortgage Loan documents require an upfront real estate tax reserve of $131,683 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $43,894).

Insurance – The Innisfree Portfolio Mortgage Loan documents require an upfront insurance premiums reserve of $213,199 and ongoing monthly insurance premiums in an amount equal to one-twelfth of the insurance premiums that the lender estimates will be payable during the next twelve months (initially $23,689).

FF&E Reserve – The Innisfree Portfolio Mortgage Loan documents require ongoing monthly FF&E Reserves of 4.0% of the total revenue from the Innisfree Portfolio Properties (the initial estimated FF&E monthly deposit is $72,915).

Seasonality Reserve – The Innisfree Portfolio Mortgage Loan documents require springing monthly deposits for seasonality. As to both Innisfree Portfolio Properties, on monthly payment dates from May to August, the borrowers will be required to deposit an aggregate of $1,121,917 (representing the sum of the four months of deposits) and then will disburse an aggregate of $1,121,917 in the months November through February to cover any shortfalls. Amounts are subject to change and adjusted on an annual basis based on lender discretion

Ground Lease Rent Reserve –The Innisfree Portfolio Mortgage Loan documents require that on each monthly payment date the borrowers will be required to deposit the amount payable under the Ground Lease for the month immediately following the month in which such monthly payment date occurs. This amount is expected to be, for each Innisfree Portfolio Property, the greater of $12,500 per month and 3.25% of such property’s gross revenues for the applicable month. The minimum deposit is $300,000 each year for both Innisfree Portfolio Properties in the aggregate under the Ground Lease and Sublease (as definted below), collectively.

PIP Reserve– The Innisfree Portfolio Mortgage Loan documents require that if at any time, any additional PIP work is required under the franchise agreements, the borrower shall deposit an amount equal to 125% of the estimated costs to complete such additional PIP work.

Hospitality – Full Service	Loan #1	Cut-off Date Balance:	$58,415,464
1299 & 1297 Miracle Strip Parkway Southeast	Innisfree Portfolio	Cut-off Date LTV:	61.6%
Fort Walton Beach, FL 32548		U/W NCF DSCR:	1.94x
		U/W NOI Debt Yield:	14.3%

Lockbox and Cash Management.A hard lockbox is in place with respect to the Innisfree Portfolio Mortgage Loan. The Innisfree Portfolio Mortgage Loan has springing cash management that will commence upon the occurrence of a Sweep Period (defined below). The borrowers are required to cause all rents including, without limitation, all credit card company payments, to be transmitted directly into the applicable lockbox account, provided, however, that any cash and other sums received at the hotels may be deposited by the borrowers or manager within one (1) business day of receipt. During the continuance of a Sweep Period (as defined below), all funds in the lockbox account are required to be swept daily to a cash management account under the control of the lender and disbursed during each interest period of the loan term in accordance with the Innisfree Portfolio Mortgage Loan documents.

A “Sweep Period” will commence upon the earliest of the following:

(i)

the occurrence and continuance of an event of default under the Innisfree Portfolio Mortgage Loan; or

(ii)

the debt service coverage ratio being less than 1.20x; or

(iii)

the date on which the property manager becomes insolvent or a debtor in a bankruptcy action; or

(iv)

the delivery of notice by the franchisor/manager of any breach or default by a borrower under the franchise/management agreement that, with the passage of time or delivery of notice, could result in the termination of such agreement.

A Sweep Period will end upon the occurrence of the following, in each case provided no other cash management period is continuing (and no event of default has occurred and is continuing):

●

with regard to clause (i), the lender’s acceptance of a cure or waiver of such event of default; or

●

with regard to clause (ii), the debt service coverage ratio being greater than 1.35x for two consecutive calendar quarters; or

●

with regard to clause (iii), the borrowers having entered into a replacement management agreement with a qualified manager; or

●

with regard to clause (iv), the lenders acceptance of a cure of such event of default under the franchise agreement or management agreement, the borrowers having delivered evidence reasonably satisfactory to the lender, which may include a “good standing” or similar letter from the franchisor, indicating that the franchise agreement is in full force and effect.

Property Management.The Innisfree Portfolio Properties are managed by an affiliate of the borrower.

Partial Release.Not permitted.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease.The Innisfree Portfolio Properties are subject to a ground lease (the “Ground Lease”) with the United States government through the Secretary of the Air Force, as lessor. The Emerald I Borrower owns a leasehold interest in the Innisfree Portfolio Properties by way of a 50-year ground lease, which expires in October 2062. In 2016, a sublease (the “Sublease”) was entered into for the Hilton Garden Inn Fort Walton Beach Property between the Emerald I Borrower, as sublandlord, and the Emerald II Borrower, as subtenant. The Innisfree Portfolio Properties are located adjacent to each other on the same parcel. The Sublease expires in September 2062 (one month prior to expiration of the Ground Lease). Monthly base rent under the Ground Lease is, as to each Innisfree Portfolio Property, the greater of $12,500 (subject to future upward adjustment based on the Consumer Price Index for all Urban Consumers) and 3.25% of such property’s monthly gross revenue. Base rent under the Sublease is equal to the base rent under the Ground Lease.

The Innisfree Portfolio Properties have a ground lease rent pass through, which consists of collected fees from the guests to offset ground rent charged under the Ground Lease by the United States government. The majority but not all the lease fee is passed through to the guests as a fee at checkout.

Terrorism Insurance.The Innisfree Portfolio Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provide coverage for terrorism in an amount equal to the full replacement cost of Innisfree Portfolio Properties, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a twelve-month extended period of indemnity (provided that if TRIPRA or a similar statute is not in effect, the borrower will not be obligated to pay terrorism insurance premiums in excess of two times the premium for the casualty and business interruption coverage on a stand-alone basis).

No. 2 – Bristow Center

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Wells Fargo Bank, National Association			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Retail – Anchored
Original Principal Balance:		$53,000,000			Location:	Bristow, VA
Cut-off Date Balance:		$53,000,000			Size:	158,082 SF
% of Initial Pool Balance:		6.8%			Cut-off Date Balance Per SF:	$335.27
Loan Purpose:		Refinance			Maturity Date Balance Per SF:	$335.27
Borrower Sponsor:		Gary D. Rappaport			Year Built/Renovated:	2007/NAP
Guarantors:		Gary D. Rappaport; Gary D. Rappaport Revocable Trust			Title Vesting:	Fee
Mortgage Rate:		5.1000%			Property Manager:	Self-managed
Note Date:		January 3, 2019			Current Occupancy (As of):	96.1% (11/1/2018)
Seasoning:		1 month			YE 2017 Occupancy:	98.6%
Maturity Date:		February 1, 2029			YE 2016 Occupancy:	100.0%
IO Period:		120 months			YE 2015 Occupancy:	99.7%
Loan Term (Original):		120 months			YE 2014 Occupancy:	95.8%
Amortization Term (Original):		NAP			Appraised Value:	$78,600,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per SF:	$497.21
Call Protection:		L(25),D(91),O(4)			Appraisal Valuation Date:	November 26, 2018
Lockbox Type:		Hard/Upfront Cash Management
Additional Debt:		None			Underwriting and Financial Information
Additional Debt Type (Balance):		NAP			TTM NOI (10/31/2018):	$4,319,793
					YE 2017 NOI:	$4,370,425
					YE 2016 NOI:	$4,299,886
					YE 2015 NOI:	NAV
					U/W Revenues:	$5,812,402
					U/W Expenses:	$1,521,164
Escrows and Reserves⁽¹⁾					U/W NOI:	$4,291,238
	Initial		Monthly	Cap	U/W NCF:	$4,142,011
Taxes	$112,298		$56,150	NAP	U/W DSCR based on NOI/NCF:	1.56x / 1.51x
Insurance	$0		Springing	NAP	U/W Debt Yield based on NOI/NCF:	8.1% / 7.8%
Replacement Reserve	$0		$1,581	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	8.1% / 7.8%
TI/LC Reserve	$250,000⁽²⁾		$13,174⁽²⁾	$500,000⁽²⁾	Cut-off Date LTV Ratio:	67.4%
Economic Holdback	⁽²⁾		$0	NAP	LTV Ratio at Maturity:	67.4%

Sources and Uses
Sources			Uses
Original loan amount	$53,000,000	98.2%	Loan payoff	$32,108,185	59.5%
Cash equity contribution	985,353	1.8	Partner buyout⁽³⁾	19,190,086	35.5
			Upfront reserves	1,862,298	3.4
			Closing costs	824,784	1.5
Total Sources	$53,985,353	100.0%	Total Uses	$53,985,353	100.0%

(1)

See “Escrows” section below.

(2)

At origination, the Bristow Center Mortgage Loan (as defined below) was structured with an economic holdback totaling $1,750,000, which was to be released to the Bristow Center Borrower (as defined below) upon the Bristow Center Property (as defined below) achieving a net operating income debt yield equal to or greater than 8.1%. As of the securitization cut-off date, $1,500,000 of the economic holdback funds were disbursed to the Bristow Center Borrower due to the Bristow Center Property achieving an 8.1% net operating income debt yield. Simultaneously with such disbursement, the remaining $250,000 of the economic holdback funds were deposited into the TI/LC Reserve account.

(3)

The borrower sponsor used a portion of the Bristow Center Mortgage Loan to buyout its institutional joint venture partner, Principal Real Estate Investors.

The Mortgage Loan. The mortgage loan (the “Bristow Center Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in an anchored retail shopping center located in Bristow, Virginia (the “Bristow Center Property”).

The Borrower and Borrower Sponsor.The borrower is BLJV, LLC (the “Bristow Center Borrower”), a Virginia limited liability company and single purpose entity with one independent director. Legal counsel to the Bristow Center Borrower delivered a non-consolidation opinion in connection with the origination of the Bristow Center Mortgage Loan. The borrower sponsor is Gary D. Rappaport, and the

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

nonrecourse carve-out guarantors of the Bristow Center Mortgage Loan are Gary D. Rappaport and the Gary D. Rappaport Revocable Trust.

Mr. Rappaport is the Chief Executive Officer of Rappaport, a real estate company he founded in 1984. Rappaport provides leasing, tenant representation, management, and development services for more than 14.5 million square feet of commercial real estate. Rappaport’s portfolio includes more than 60 shopping centers and ground floor retail in approximately 100 mixed-use properties located primarily throughout the mid-Atlantic region.

The Property.The Bristow Center Property is a grocery anchored retail center totaling 158,082 square feet and located in Bristow, Virginia, approximately 30.0 miles southwest of the Washington, D.C. central business district. The Bristow Center Property is anchored by a Harris Teeter grocery store, which is subject to a ground lease and owns its improvements. In addition to Harris Teeter, there are four ground lease tenants at the Bristow Center Property with unowned improvements, including PNC Bank, BB&T, Fauquier Bank and Minnieland Private Day School (“Minnieland”). The Bristow Center Property was constructed by the borrower sponsor in 2007 at a total cost of approximately $60.0 million. The Bristow Center Property is situated on a 25.4-acre site with 915 surface parking spaces resulting in a parking ratio of approximately 5.8 spaces per 1,000 square feet of rentable area. As of November 1, 2018, the Bristow Center Property was 96.1% leased to 33 tenants. The four largest tenants at the Bristow Center Property, totaling approximately 48.8% of the net rentable area and 44.2% of underwritten base rent, are investment grade rated.

Minnieland, which is subject to a ground lease and accounts for 2.7% of underwritten base rent, temporarily closed its facility at the Bristow Center Property in June 2018 following allegations of criminal activity involving an assistant teacher at the school. Minnieland remained current on rent payments and was back in physical occupancy of its space as of January 2019. See “Description of the Mortgage Pool—Litigation and Other Considerations” in the Preliminary Prospectus.

Major Tenants.

Largest Tenant: Harris Teeter (Baa1/BBB by Moody’s/S&P; 56,298 square feet; 35.6% of net rentable area; 19.5% of underwritten base rent; 5/31/2027 lease expiration) – According to a third party market report, Harris Teeter is a part of The Kroger Co. (NYSE: KR) family of stores, which collectively employs approximately 450,000 people in 2,782 supermarkets and multi-department stores in 35 states and the District of Columbia under local banner names including Kroger, City Market, Dillons, Food 4 Less, Fred Meyer, Fry’s, Harris Teeter, Jay C, King Soopers, QFC, Ralphs and Smith’s. Harris Teeter is an original tenant at the Bristow Center Property on a 20-year ground lease and has four, 5-year renewal options following its May 2027 lease expiration.

2^ndLargest Tenant: CVS (Baa2/BBB by Moody’s/S&P; 12,900 square feet; 8.2% of net rentable area; 11.0% of underwritten base rent; 1/31/2030 lease expiration) – CVS is a global pharmacy employing more than 290,000 people with more than 9,800 locations throughout the United States, Puerto Rico, and Brazil. CVS has been a tenant at the Bristow Center Property since 2009. CVS’s lease expires on January 31, 2030 with no renewal options.

3^rdLargest Tenant: PNC Bank (A+/A3/A- by Fitch/Moody’s/S&P; 3,999 square feet; 2.5% of net rentable area; 7.2% of underwritten base rent; 6/30/2027 lease expiration) – PNC Bank is a diversified financial services institution with assets of approximately $380 billion as of September 30, 2018. PNC Bank has more than 52,000 employees throughout 40 states across the country and international offices in Canada, China, Germany and the United Kingdom. PNC Bank is an original tenant at the Bristow Center Property on a 20-year ground lease and has three, 5-year renewal options following its June 2027 lease expiration.

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

The following table presents certain information relating to the tenancy at the Bristow Center Property:

Major Tenants

Tenant Name	Credit Rating (Fitch/Moody’s/ S&P)⁽¹⁾	Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽²⁾	Annual U/W Base Rent⁽²⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Major Tenants
Harris Teeter⁽³⁾	NR/Baa1/BBB	56,298	35.6%	$15.67	$882,000	19.5%	5/31/2027	4, 5-year⁽⁴⁾	N
CVS	NR/Baa2/BBB	12,900	8.2%	$38.50	$496,650	11.0%	1/31/2030	None	N
PNC Bank⁽³⁾	A+/A3/A-	3,999	2.5%	$81.39⁽⁵⁾	$325,459⁽⁵⁾	7.2%	6/30/2027	3, 5-year	N
BB&T⁽³⁾	A+/A2/A-	3,999	2.5%	$72.34⁽⁶⁾	$289,290⁽⁶⁾	6.4%	4/30/2027	2, 5-year	N
Fauquier Bank⁽³⁾	NR/NR/NR	3,000	1.9%	$67.19	$201,570	4.5%	7/31/2024	1, 5-year	N
Total Major Tenants		80,196	50.7%	$27.37	$2,194,969	48.6%

Non-Major Tenant		71,786	45.4%	$32.30	$2,318,478	51.4%

Occupied Collateral Total		151,982	96.1%	$29.70	$4,513,447	100.0%

Vacant Space		6,100	3.9%

Collateral Total		158,082	100.0%

(1)

Certain ratings are those of the parent company whether or not the parent company guarantees the lease.

(2)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through January 2020 totaling $38,909 and straight line rent averaging through June 2027 totaling $52,686 for investment grade rated tenants.

(3)

Harris Teeter, PNC Bank, BB&T and Fauquier Bank are subject to ground leases and own their improvements.

(4)

Harris Teeter’s first 5-year extension option is at a rental rate of $18.02 per square foot.

(5)

Represents the straight line average over the remaining lease term due to investment grade rating. PNC Bank’s current rental rate is $74.41 per square foot.

(6)

Represents the straight line average over the remaining lease term due to investment grade rating. BB&T’s current rental rate is $66.14 per square foot.

The following table presents certain information relating to major tenant sales at the Bristow Center Property:

Tenant Sales (PSF)

Major Tenant Name

% of Total
Annual U/W
Base Rent

2015

2016

2017

TTM⁽¹⁾

Major Tenant

Occupancy

Cost⁽¹⁾⁽²⁾

Harris Teeter

19.5%

$398

$402

$390

$388

6.0%

(1)	TTM Sales PSF and Occupancy Cost are for the trailing 12-month period ending February 28, 2018

(2)	Occupancy Cost is based on TTM sales, underwritten base rent and underwritten reimbursements.

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

The following table presents certain information relating to the lease rollover schedule at the Bristow Center Property:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent⁽³⁾	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF
MTM	1	4,963	3.1%	4,963	3.1%	$162,000	3.6%	$32.64
2019	0	0	0.0%	4,963	3.1%	$0	0.0%	$0.00
2020	4	6,192	3.9%	11,155	7.1%	$205,617	4.6%	$33.21
2021	4	10,800	6.8%	21,955	13.9%	$356,759	7.9%	$33.03
2022	10	22,525	14.2%	44,480	28.1%	$909,333	20.1%	$40.37
2023	3	5,200	3.3%	49,680	31.4%	$174,875	3.9%	$33.63
2024	4	8,024	5.1%	57,704	36.5%	$377,752	8.4%	$47.08
2025	0	0	0.0%	57,704	36.5%	$0	0.0%	$0.00
2026	0	0	0.0%	57,704	36.5%	$0	0.0%	$0.00
2027	4	67,016	42.4%	124,720	78.9%	$1,613,845	35.8%	$24.08
2028	1	2,862	1.8%	127,582	80.7%	$93,416	2.1%	$32.64
2029	0	0	0.0%	127,582	80.7%	$0	0.0%	$0.00
Thereafter	2	24,400	15.4%	151,982	96.1%	$619,850	13.7%	$25.40
Vacant	0	6,100	3.9%	158,082	100.0%	$0	0.0%	$0.00
Total/Weighted Average	33	158,082	100.0%			$4,513,447	100.0%	$29.70⁽³⁾

(1)

Information obtained from the underwritten rent roll.

(2)

Certain tenants may have lease termination options that are exercisable prior to the originally stated expiration date of the subject lease and that are not considered in the Lease Expiration Schedule.

(3)

Total/Weighted Average Annual U/W Base Rent and Annual U/W Base Rent PSF exclude vacant space.

The following table presents historical occupancy percentages at the Bristow Center Property:

Historical Occupancy

12/31/2014⁽¹⁾	12/31/2015⁽¹⁾	12/31/2016⁽¹⁾	12/31/2017⁽¹⁾	11/1/2018⁽²⁾
95.8%	99.7%	100.0%	98.6%	96.1%

(1)	Information obtained from a third-party market research provider.

(2)	Information obtained from the underwritten rent roll.

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the underwritten net cash flow at the Bristow Center Property:

Cash Flow Analysis

	2016	2017	TTM 10/31/2018	U/W	%⁽¹⁾	U/W $ per SF
Rents in Place	$4,508,380	$4,579,515	$4,536,386	$4,421,851	73.1%	$27.97
Contractual Rent Steps⁽²⁾	0	0	0	91,596	1.5	0.58
Grossed Up Vacant Space	0	0	0	218,042	3.6	1.38
Gross Potential Rent	$4,508,380	$4,579,515	$4,536,386	$4,731,489	78.2%	$29.93
Other Income	108,076	110,519	113,654	113,654	1.9	0.72
Total Recoveries	1,088,997	1,210,931	1,224,738	1,203,834	19.9	7.62
Net Rental Income	$5,705,453	$5,900,965	$5,874,778	$6,048,976	100.0%	$38.26
(Vacancy & Credit Loss)	0	0	0	(236,574)⁽³⁾	(5.0)	(1.50)
Effective Gross Income	$5,705,453	$5,900,965	$5,874,778	$5,812,402	96.1%	$36.77

Real Estate Taxes	594,372	683,319	655,141	673,798	11.6	4.26
Insurance	21,340	19,663	18,728	18,304	0.3	0.12
Management Fee	228,831	233,576	226,427	174,372	3.0	1.10
Other Operating Expenses	561,025	593,982	654,690	654,690	11.3	4.14
Total Operating Expenses	$1,405,568	$1,530,540	$1,554,985	$1,521,164	26.2%	$9.62

Net Operating Income	$4,299,886	$4,370,425	$4,319,793	$4,291,238	73.8%	$27.15
Replacement Reserves	0	0	0	18,970	0.3	0.12
TI/LC	0	0	0	130,257	2.2	0.82
Net Cash Flow	$4,299,886	$4,370,425	$4,319,793	$4,142,011	71.3%	$26.20

NOI DSCR⁽⁵⁾	1.56x	1.59x	1.57x	1.56x
NCF DSCR⁽⁵⁾	1.56x	1.59x	1.57x	1.51x
NOI Debt Yield⁽⁵⁾	8.1%	8.2%	8.2%	8.1%
NCF Debt Yield⁽⁵⁾	8.1%	8.2%	8.2%	7.8%

(1)	Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(2)	Represents contractual rent steps through January 2020 and straight line rent averaging for investment grade tenants (see “Major Tenants” table above).

(3)	The underwritten economic vacancy is 5.0%. The Bristow Center Property was 96.1% leased as of November 1, 2018.

Appraisal.The appraiser concluded to an “as-is” appraised value of $78,600,000 as of November 26, 2018.

Environmental Matters. According to a Phase I environmental site assessment dated November 20, 2018, there was no evidence of any recognized environmental conditions at the Bristow Center Property.

Market Overview and Competition.The Bristow Center Property is located in Bristow, Virginia, approximately 33.8 miles southwest of the Washington, D.C. central business district, 16.0 miles southwest of the Washington Dulles International Airport, and 28.7 miles southwest of the Ronald Reagan Washington National Airport. The Bristow Center Property is situated at 10250 – 10492 Bristow Center Drive, with two points of ingress and egress along Linton Hall Road and Fitzgerald Way, and with frontage along Nokesville Road. I-66 is approximately 5.2 miles north of the Bristow Center Property and access from I-66 is provided by Prince William Highway via Nokesville Road or Lee Highway/Linton Hall Road.

Major employers in the area include Lockheed Martin, Prince William Health System, Micron Technology, Bae Systems, Cogan Air, Aurora Flight Sciences, Didlake, and Comcast. These employers are located within 15 miles of the Bristow Center Property and represent concentrations in the defense, technology, medical, telecommunications, and aerospace industries. Regional employment nodes include Washington, D.C., Fairfax City, Vienna, Chantilly, and the Dulles Corridor.

According to the appraiser, the estimated 2018 population within a one-, three- and five-mile radius of the Bristow Center Property was 7,084, 36,117, and 126,146, respectively; and the estimated 2018 median household income within the same radii was $132,826, $127,211, and $98,880, respectively.

Submarket Information – According to the appraisal, the Bristow Center Property is situated within the Prince William County submarket of the Northern Virginia retail market. As of the second quarter of 2018, the submarket reported a total inventory of 9.8 million square feet with a 7.0% vacancy rate.

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

Appraiser’s Comp Set – The appraiser identified six primary competitive properties for the Bristow Center Property totaling approximately 2.0 million square feet, which reported an average occupancy rate of approximately 97.3%. The appraiser concluded to triple net market rents for the Bristow Center Property as described in the Market Rent Summary table below.

The following table presents certain information relating to the appraiser’s market rent conclusion for the Bristow Center Property:

Market Rent Summary⁽¹⁾

	In-Line	Large In-Line	Anchor⁽²⁾	Outparcel⁽²⁾	Drug Store⁽²⁾	Day Care⁽²⁾	Premium In-Line
Market Rent (PSF)	$35.00	$32.00	$15.00	$63.65	$38.00	$13.04	$40.00
Lease Term (Years)	7	7	10	15	15	15	7
Lease Type (Reimbursements)	NNN	NNN	NNN	NNN	NNN	NNN	NNN
Rent Increase Projection	3.0% per annum	3.0% per annum	10.0% every 5 years	10.0% every 5 years	10.0% every 5 years	10.0% every 5 years	3.0% per annum

(1)	Information obtained from the appraisal.

(2)	Represents ground lease market rents.

The table below presents certain information relating to six comparable retail properties to the Bristow Center Property identified by the appraiser:

Competitive Set⁽¹⁾

	Bristow Center (Subject)	Center at Innovation	Braemar Village Center	Promenade at Virginia Gateway	Virginia Gateway	The Shops at Stonewall	Heritage Marketplace
Location	Bristow, VA	Manassas, VA	Bristow, VA	Gainesville, VA	Gainesville, VA	Gainesville, VA	Gainesville, VA
Distance from Subject	--	1.3 miles	2.3 miles	5.2 miles	5.8 miles	8.1 miles	6.9 miles
Property Type	Anchored Retail	Anchored Retail	Anchored Retail	Anchored Retail	Power Center	Anchored Retail	Anchored Retail
Year Built/ Renovated	2007/NAP	2008/NAP	2003/NAP	2011/NAP	1999/2008	2005/NAP	2015/NAP
Anchors	Harris Teeter	Super Target, TJ Maxx, PetSmart	Safeway	BJ’s Wholesale Club, Regal Cinemas	Best Buy, Giant Food, HomeGoods, Lowe’s, PetSmart, Target, Walgreens	Wegman’s, Dick’s Sporting Goods, Michaels, Staples, Bed, Bath and Beyond, Ross Dress for Less	Harris Teeter
Total GLA	158,082 SF⁽²⁾	277,450 SF	111,535 SF	290,800 SF	904,472 SF	338,334 SF	74,695 SF
Total Occupancy	96.1%⁽²⁾	97.0%	100.0%	98.0%	100.0%	100.0%	89.0%

(1)

Information obtained from the appraisal.

(2)

Information obtained from the underwritten rent roll.

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

The table below presents certain information relating to comparable sales for the Bristow Center Property identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Sale Price	Sale Price (PSF)
Bristow Center (Subject)	Bristow, VA	158,082	Nov-18⁽²⁾	$78,600,000⁽²⁾	$497⁽²⁾
Maple Avenue Shopping Center	Vienna, VA	111,810	May-18	$63,600,000	$569
Shops at Town Center	Germantown, MD	124,970	Feb-17	$53,550,000	$429
South Lakes Village Shopping Center	Reston, VA	109,527	Sept-16	$62,000,000	$566
Virginia Gateway	Gainesville, VA	665,786	Jan-16	$255,000,000	$383
Hastings Marketplace	Manassas, VA	93,047	Jan-16	$32,250,000	$347

(1)	Information obtained from the appraisal.

(2)	Represents the appraised value of the Bristow Center Property.

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $112,298 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $56,150).

Insurance – The loan documents do not require ongoing monthly escrows for insurance premiums as long as (i) no event of default has occurred and is continuing, (ii) the borrower or borrower affiliate provides the lender with evidence that the Bristow Center Property’s insurance coverage is included in a blanket policy and such policy is in full force and effect and (iii) the borrower pays all applicable insurance premiums and provides the lender with evidence of timely payment of insurance premiums/renewals.

Replacement Reserves – The loan documents require ongoing monthly replacement reserves of $1,581.

Economic Holdback –At origination, the Bristow Center Mortgage Loan was structured with an economic holdback totaling $1,750,000, which was to be released to the Bristow Center Borrower upon the Bristow Center Property achieving a net operating income debt yield equal to or greater than 8.1%. As of the securitization cut-off date, $1,500,000 of the economic holdback funds were disbursed to the Bristow Center Borrower due to Bristow Center Property achieving an 8.1% net operating income debt yield. The remaining $250,000 of the economic holdback funds were deposited into the TI/LC Reserve account.

TI/LC Reserve – As outlined above, $250,000 of the economic holdback funds were deposited into the TI/LC Reserve account. In addition, the borrower is required to deposit ongoing monthly TI/LC reserves of $13,174 (subject to a cap of $500,000).

Lockbox and Cash Management.The Bristow Center Mortgage Loan requires a hard lockbox with in-place cash management, which is already in place, and that the Bristow Center Borrower direct all tenants to pay rent directly into such lockbox account. The loan documents also require that all rents received by the borrower or the property manager be deposited into the lockbox account within one business day of receipt. All funds in the lockbox account are required to be swept each business day into the cash management account controlled by the lender and disbursed on each payment date in accordance with the loan documents. Prior to the occurrence of a Cash Trap Event Period (as defined below), all excess funds are required to be distributed to the borrower. During a Cash Trap Event Period, all excess funds are required to be swept to an excess cash flow subaccount controlled by the lender.

A “Cash Trap Event Period” will commence upon the earliest to occur of the following:

(i)

an event of default under the Bristow Center Mortgage Loan;

(ii)

the net cash flow debt service coverage ratio falling below 1.05x at the end of any calendar quarter; or

(iii)

a Harris Teeter Cash Trap Event Period (as defined below).

A Cash Trap Event Period will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default;

●

with regard to clause (ii) above, the net cash flow debt service coverage ratio being equal to or greater than 1.10x for two consecutive calendar quarters; or

●

with regard to clause (iii) above, a Harris Teeter Cash Trap Event Period Cure (as defined below).

Retail - Anchored	Loan #2	Cut-off Date Balance:	$53,000,000
10250-10492 Bristow Center Drive	Bristow Center	Cut-off Date LTV:	67.4%
Bristow, VA 20136		U/W NCF DSCR:	1.51x
		U/W NOI Debt Yield:	8.1%

A “Harris Teeter Cash Trap Event Period” will commence upon the earliest to occur of the following:

(i)

Harris Teeter notifying the lender of its intent to terminate its lease and/or vacate its space;

(ii)

Harris Teeter failing to be in actual, physical possession of or going dark in its entire space;

(iii)

Harris Teeter becoming insolvent or filing for bankruptcy;

(iv)

12 months prior to Harris Teeter’s lease expiration (unless Harris Teeter extends its lease (i) at a base rental rate equal to or greater than its current base rental rate, or (ii) upon such other terms and conditions reasonably acceptable to the lender);

(v)

24 months prior to Harris Teeter’s lease expiration (unless Harris Teeter reports sales equal to or greater than $21,800,000 (approximately $387 per square foot) during the most recent trailing 12-month period).

A “Harris Teeter Cash Trap Event Period Cure” will occur upon:

●

with regard to clauses (i) and (iv) above, the entire Harris Teeter space being leased to a replacement tenant reasonably acceptable to the lender which has delivered an estoppel certificate confirming it has accepted its premises, taken possession thereof, is open for business, and is paying full unabated rent equal to or greater than Harris Teeter’s current base rental rate;

●

with regard to clause (ii) above, Harris Teeter being in actual, physical possession of its entire space and open for business;

●

with regard to clause (iii) above, Harris Teeter no longer being insolvent or subject to any bankruptcy or insolvency proceedings and its lease having been affirmed pursuant to a final and non-appealable order of a court of competent jurisdiction; and

●

with regard to clause (v) above, the Bristow Center Borrower having delivered written evidence reasonably acceptable to the lender that either (Y)(1) Harris Teeter has extended its lease at a base rental rate equal to or greater than its current base rental rate, (2) on or after nine months prior to the Harris Teeter lease expiration date, subject to conditions further outlined in the loan documents, Harris Teeter has extended its lease (or effectively extended its lease via not terminating it) in accordance with the terms therein, or (3) if not in accordance with clause (1) or (2), Harris Teeter has extended its lease upon such other terms and conditions reasonably acceptable to the lender; or (Z) the entire Harris Teeter space has been leased to a replacement tenant reasonably acceptable to the lender which has delivered an estoppel certificate confirming it has accepted its premises, taken possession thereof, is open for business, and is paying full unabated rent equal to or greater than the base rent currently paid by Harris Teeter.

Property Management. The Bristow Center Property is managed by an affiliate of the Bristow Center Borrower.

Partial Release. Not permitted.

Real Estate Substitution.Not permitted.

Ground Lease. None.

Terrorism Insurance.The Bristow Center Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Bristow Center Property, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a 6-month extended period of indemnity (provided that if TRIPRA or a similar statute is not in effect, the borrower will not be obligated to pay terrorism insurance premiums in excess of two times the premium for the casualty and business interruption coverage on a stand-alone basis).

No. 3 – Residence Inn Denver City Center

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Wells Fargo Bank, National Association			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Hospitality – Extended Stay
Original Principal Balance:		$47,500,000			Location:	Denver, CO
Cut-off Date Balance:		$47,500,000			Size:	228 Rooms
% of Initial Pool Balance:		6.1%			Cut-off Date Balance Per Room	$208,333
Loan Purpose:		Acquisition			Maturity Date Balance Per Room:	$208,333
Borrower Sponsor:		Noble Hospitality Fund IV - Income, L.P.			Year Built/Renovated:	2006/2018
Guarantor:		Noble Hospitality Fund IV - Income, L.P.			Title Vesting:	Fee
Mortgage Rate:		5.1400%			Property Manager:	Interstate Management Company, LLC
Note Date:		December 19, 2018			Current Occupancy (As of)⁽²⁾:	77.8% (10/31/2018)
Seasoning:		2 months			YE 2017 Occupancy⁽²⁾:	82.6%
Maturity Date:		January 11, 2026			YE 2016 Occupancy⁽²⁾:	80.5%
IO Period:		84 months			YE 2015 Occupancy⁽²⁾:	82.6%
Loan Term (Original):		84 months			YE 2014 Occupancy⁽²⁾:	83.5%
Amortization Term (Original):		NAP			Appraised Value⁽³⁾:	$79,400,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per Room⁽³⁾:	$348,246
Call Protection:		L(24),GRTR 1% or YM(53),O(7)			Appraisal Valuation Date⁽³⁾:	November 14, 2019
Lockbox Type:		Springing
Additional Debt:		None			Underwriting and Financial Information
Additional Debt Type (Balance):		NAP			TTM NOI (10/31/2018):	$6,070,595
					YE 2017 NOI:	$6,490,440
					YE 2016 NOI:	$6,380,783
					YE 2015 NOI:	$6,695,914
					U/W Revenues:	$12,717,411
					U/W Expenses:	$6,451,396
					U/W NOI:	$6,266,014
Escrows and Reserves⁽¹⁾					U/W NCF:	$5,757,318
	Initial		Monthly	Cap	U/W DSCR based on NOI/NCF:	2.52x / 2.32x
Taxes	$457,128		$65,304	NAP	U/W Debt Yield based on NOI/NCF:	13.2% / 12.1%
Insurance	$0		Springing	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	13.2% / 12.1%
FF&E Reserve	$0		$42,391	NAP	Cut-off Date LTV Ratio⁽³⁾:	59.8%
PIP Reserve	$1,825,000		Springing	NAP	LTV Ratio at Maturity⁽³⁾:	59.8%

Sources and Uses⁽⁴⁾
Sources			Uses
Original Mortgage Loan Amount	$47,500,000	49.8%	Purchase price (Hotel)⁽⁴⁾	$75,500,000	79.2%
Garage loan amount	10,000,000	10.5	Purchase price (Garage)⁽⁴⁾	16,500,000	17.3
Borrower’s equity⁽⁴⁾	37,808,248	39.7	Upfront reserves	2,282,128	2.4
			Closing costs⁽⁴⁾	1,026,120	1.1
Total Sources	$95,308,248	100.0%	Total Uses	$95,308,248	100.0%

(1)	See “Escrows” section.

(2)	The Current Occupancy, YE 2017 Occupancy, YE 2016 Occupancy, and YE 2015 Occupancy were obtained from the borrower. The YE 2014 Occupancy was obtained from a third party market research report.

(3)

The Appraised Value, Appraised Value Per Room, Cut-off Date LTV Ratio and LTV Ratio at Maturity are based on the appraiser’s prospective as-complete value as of November 14, 2019, which assumes completion of currently ongoing and planned renovation work (see “The Property” section). The borrower deposited upfront reserves totaling $1,825,000 for the estimated cost of the remaining renovation work (see “Escrows” section). The appraiser concluded to an “as-is” appraised value of $76,500,000 (as of November 14, 2018), which would result in a Cut-off Date LTV Ratio of 62.1%.

(4)

The borrower purchased the entire building comprising (i) the Residence Inn Denver City Center Property (as defined below) and (ii) a six-story parking garage, which is not part of the collateral for the Residence Inn Denver City Center Mortgage Loan (see “The Property” and “Condominium Regime” sections below). The closing costs and borrower’s equity shown above pertain to the purchase of both the Residence Inn Denver City Center Property and the parking garage.

Hospitality – Extended Stay	Loan #3	Cut-off Date Balance:	$47,500,000
1725 Champa Street	Residence Inn Denver City Center	Cut-off Date LTV:	59.8%
Denver, CO 80202		U/W NCF DSCR:	2.32x
		U/W NOI Debt Yield:	13.2%

The Mortgage Loan. The mortgage loan (the “Residence Inn Denver City Center Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in an extended stay hotel located in Denver, Colorado (the “Residence Inn Denver City Center Property”).

The Borrower and Borrower Sponsor.The borrower is NF IV – I Denver, LLC, a Delaware limited liability company and single purpose entity with one independent director (the “Residence Inn Denver City Center Borrower”). The Residence Inn Denver City Center Borrower is directly owned by a Real Estate Investment Trust (“REIT”), which requires the borrower entity to lease the related hotel via an operating lease to a taxable REIT subsidiary. Legal counsel to the borrower delivered a non-consolidation opinion in connection with the origination of the Residence Inn Denver City Center Mortgage Loan. The borrower sponsor and nonrecourse carve-out guarantor of the Residence Inn Denver City Center Mortgage Loan is Noble Hospitality Fund IV - Income, L.P.

Founded in 1993, Noble Investment Group (“Noble”) is a real estate investment firm specializing in upscale select service and extended-stay hotels affiliated with Marriott, Hyatt and Intercontinental. As of December 2018, Noble had invested over $3 billion in upscale hotels throughout the United States. As of January 29, 2019, Noble operated more than 7,000 hotel and resort guest rooms including over 800,000 square feet of meeting space, convention and conference centers, championship golf courses, spas, and fine dining operations.

The Property.The Residence Inn Denver City Center Property is a 228-key extended-stay hotel located in Denver, Colorado. The Residence Inn Denver City Center Property comprises the ground floor and floors 8-14 of a larger building that also comprises a 447-space six-story parking garage on floors 2-7, which is not part of the collateral for the Residence Inn Denver City Center Mortgage Loan (See “Condominium Regime” section below). The Residence Inn Denver City Center Property was constructed in 2006 and contains 118 queen studio rooms, 103 one-bedroom queen suites, and seven two-bedroom queen suites. All guestrooms feature full kitchens with cookware, flat panel HD televisions and sleeper sofas (in addition to standard beds). Amenities at the Residence Inn Denver City Center Property comprise four meeting rooms totaling 1,742 square feet, a 24-hour convenience market, a fitness center, guest laundry rooms and a roof top patio. Additionally, the Residence Inn Denver City Center Property contains two ground floor retail spaces totaling 2,029 square feet, which are occupied by a Subway restaurant and a dry cleaner drop-off facility.

The Residence Inn Denver City Center Property underwent renovations from December 2017 through March 2018 for a total cost of approximately $6.3 million ($27,632/key). This renovation included upgrades to guestroom furniture, wall vinyl and carpeting in the guestrooms and corridors, and cabinetry lighting in the kitchens and bathrooms. Additional planned renovations totaling approximately $1.825 million ($8,004/key) were reserved for at closing for upgrades to exterior and interior public space including flooring and wall vinyl in the lobby, meeting rooms and fitness center, enhanced patio signage and lighting, and furniture replacement as needed. Of the planned renovations, approximately $930,000 is related to brand-mandated PIP work, which is required to be completed by June 19, 2020; and the remaining approximately $895,000 is elective work. At closing, the Residence Inn Denver City Borrower executed a new 20-year franchise agreement with Marriott, which expires on December 19, 2038, approximately 13 years beyond loan maturity.

The following table presents certain information relating to the trailing twelve-month period ending September 2018 demand analysis with respect to the Residence Inn Denver City Center Property based on market segmentation, as provided in the appraisal:

Market Segmentation

Corporate

Meeting/Group

Leisure

55.0%

18.0%

27.0%

Condominium Regime.At closing, the Residence Inn Denver City Center Borrower created a two-unit condominium regime comprising (i) the Residence Inn Denver City Center Property (the ground floor and floors 8-14) and (ii) a 447-space six story parking garage on floors 2-7, which is currently owned by an affiliate of the Residence Inn Denver City Center Borrower (the “Garage Condominium”). The Garage Condominium does not serve as collateral for the Residence Inn Denver City Center Mortgage Loan. The guests of the Residence Inn Denver City Center Property have access to parking through the Garage Condominium. The loan documents provide for full recourse to the borrower and guarantors if the condominium bylaws, rules or regulations or the condominium regime are amended, modified, cancelled, terminated or withdrawn by the borrower or with the consent or acquiescence of the Residence Inn Denver City Center Borrower, or the Residence Inn Denver City Center Property is made subject to any partition, in each case without the lender’s prior written consent. The Residence Inn Denver City Center Borrower has 50% of the voting rights in the related owners’ associations. See “Description of the Mortgage Pool—Mortgage Pool Characteristics—Condominium Interests” in the Preliminary Prospectus.

Hospitality – Extended Stay	Loan #3	Cut-off Date Balance:	$47,500,000
1725 Champa Street	Residence Inn Denver City Center	Cut-off Date LTV:	59.8%
Denver, CO 80202		U/W NCF DSCR:	2.32x
		U/W NOI Debt Yield:	13.2%

Cash Flow Analysis

	2015	2016	2017	TTM 10/31/2018⁽¹⁾	U/W⁽¹⁾	% of U/W Total Revenue⁽²⁾	U/W $ per Room
Occupancy	82.6%	80.5%	82.6%	77.8%	80.6%
ADR	$176.89	$179.54	$181.14	$183.55	$183.55
RevPAR	$146.03	$144.44	$149.54	$142.75	$147.90

Room Revenue	$12,152,753	$12,053,322	$12,444,802	$11,879,407	12,308,496	96.8%	$53,985
Other Revenue⁽³⁾	310,898	315,823	368,001	408,915	408,915	3.2	1,793
Total Revenue	$12,463,651	$12,369,145	$12,812,803	$12,288,322	12,717,411	100.0%	$55,778

Room Expense	2,381,882	2,540,303	2,509,673	2,472,076	2,561,368	20.8	11,234
Other Department Expense	111,342	107,148	81,199	73,490	73,490	18.0	322
Total Department Expenses	2,493,224	2,647,451	2,590,872	2,545,566	2,634,858	20.7	11,556
Gross Operating Income	$9,970,427	$9,721,694	$10,221,931	$9,742,756	$10,082,553	79.3%	$44,222

Total Undistributed Expenses	2,770,145	2,811,394	3,019,351	2,952,699	3,050,101	24.0	13,378
Gross Operating Profit	$7,200,282	$6,910,300	$7,202,580	$6,790,057	$7,032,451	55.3%	$30,844

Total Fixed Charges	504,368	529,517	712,140	719,462	766,437	6.0	3,362
Total Operating Expenses	$5,767,737	$5,988,362	$6,322,363	$6,217,727	$6,451,396	50.7%	$28,296

Net Operating Income	$6,695,914	$6,380,783	$6,490,440	$6,070,595	$6,266,014	49.3%	$27,483
FF&E	0	0	0	0	508,696	4.0	2,231
Net Cash Flow	$6,695,914	$6,380,783	$6,490,440	$6,070,595	$5,757,318	45.3%	$25,251

NOI DSCR	2.70x	2.57x	2.61x	2.45x	2.52x
NCF DSCR	2.70x	2.57x	2.61x	2.45x	2.32x
NOI DY	14.1%	13.4%	13.7%	12.8%	13.2%
NCF DY	14.1%	13.4%	13.7%	12.8%	12.1%

(1)

Underwritten Occupancy and RevPAR are higher than TTM 10/31/2018, as the Residence Inn Denver City Center Property underwent an approximately $6.3 million ($27,632 per key) renovation from December 2017 through March 2018, which took rooms offline.

(2)

% of U/W Total Revenue for Room Expense, F&B Expense and Other Department Expenses are based on their corresponding revenue line items. All other line items represent percent of Total Revenue.

(3)

Other Revenue includes sundry shop income, meeting room rental, valet income, commercial tenant rent, and miscellaneous income.

Appraisal.The appraiser concluded to an “as-complete” appraised value of $79,400,000 with an appraisal valuation date of November 14, 2019, which assumes the completion of the ongoing and planned renovation work (see “The Property” and the “Escrows” sections). The appraiser also concluded to an “as-is” appraised value of $76,500,000 as of November 14, 2018.

Environmental Matters. According to a Phase I environmental assessment dated October 4, 2018, there was no evidence of any recognized environmental conditions at the Residence Inn Denver City Center Property.

Market Overview and Competition.The Residence Inn Denver City Center Property is located in the central business district of Denver, Colorado. The Residence Inn Denver City Center Property is located approximately 1.4 miles southeast of Interstate 25, 2.7 miles south of Interstate 70, 0.9 miles southeast of Union Station, and 24.2 miles southwest of Denver International Airport.

The Residence Inn Denver City Center Property is situated approximately 0.4 miles north of the Colorado Convention Center. According to the appraisal, the Colorado Convention Center hosted 231 events with just under 1 million attendees in 2017, and is expected to draw an estimated 910,000 room nights in 2018 (an approximately 26% increase over 2017). The Residence Inn Denver City Center Property is situated within 1 mile of various tourist attractions including Coors Field (home of the Major League Baseball Colorado Rockies), Pepsi Center (home of the NBA Denver Nuggets), Colorado State Capital, the Denver Theater District and the Denver Performing Arts Complex. The Residence Inn Denver City Center Property is also proximate to the entrance of the 16^th Street Mall, a mile-long pedestrian promenade of retailers, restaurants, breweries and the Denver Pavilions (an open-air mall). According to a third party market research report, in 2017, Denver experienced approximately 31.7 million total visitors who spent an estimated $6.5 billion, a 5.0% increase over 2016. According to the appraisal, Occupancy, ADR and RevPAR within the Downtown Denver submarket have increased by 13.1%, 18.4% and 33.9%, respectively, from 2008 to 2018.

According to the Appraisal, the Downtown Denver submarket has experienced annual population growth of approximately 4.5% since 2010, and is projected to increase by 2.0% annually through 2023. According to a third party market report, the estimated 2018 population within a one-, three- and five-mile radius of the Residence Inn Denver City Center Property was 40,683, 230,159 and 475,680, respectively; and the estimated 2018 average household income within the same radii was $100,370, $90,128 and $89,318,

Hospitality – Extended Stay	Loan #3	Cut-off Date Balance:	$47,500,000
1725 Champa Street	Residence Inn Denver City Center	Cut-off Date LTV:	59.8%
Denver, CO 80202		U/W NCF DSCR:	2.32x
		U/W NOI Debt Yield:	13.2%

respectively. According to the appraisal, there is a 157-room upscale extended-stay Element hotel that is anticipated to open in May 2019, which is expected to compete directly with the Residence Inn Denver City Center Property.

The following table presents historical occupancy, ADR, RevPAR and penetration rates relating to the Residence Inn Denver City Center Property’s competitive set:

Subject and Market Historical Occupancy, ADR and RevPAR⁽¹⁾

	Competitive Set			The Residence Inn Denver City Center			Penetration Factor
Year	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR	Occupancy	ADR	RevPAR
TTM 10/31/2018	76.4%	$169.24	$129.28	78.1%⁽²⁾	$182.71	$142.75⁽²⁾	102.3%⁽²⁾	108.0%	110.4%⁽²⁾
12/31/2017	75.6%	$171.36	$129.51	82.6%	$181.14	$149.54	109.2%	105.7%	115.5%
12/31/2016	73.5%	$173.55	$127.60	80.4%	$179.74	$144.44	109.3%	103.6%	113.2%
12/31/2015	74.8%	$170.03	$127.20	81.8%	$178.52	$146.03	109.3%	105.0%	114.8%

(1)

Information obtained from third party hospitality research reports dated November 19, 2018 and January 18, 2018. The competitive set includes the following hotels: Crowne Plaza Denver, Residence Inn Denver Downtown, Magnolia Hotel Denver, A Tribute Portfolio Hotel, Hampton Inn Suites Denver Downtown, and Embassy Suites Denver Downtown Convention Center

(2)

The Residence Inn Denver City Center Property underwent an approximately $6.3 million ($27,632 per key) renovation from December 2017 through March 2018, which took rooms offline.

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $457,128 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next 12 months (initially $65,304).

Insurance – The loan documents do not require ongoing monthly escrows for insurance premiums as long as (i) no event of default has occurred and is continuing, (ii) the borrower or borrower affiliate provides the lender with evidence that the Residence Inn Denver City Center Property’s insurance coverage is included in a blanket policy and such policy is in full force and effect and (iii) the borrower pays all applicable insurance premiums and provides the lender with evidence of payment of insurance premiums/renewals within ten business days.

FF&E Reserve – The loan documents require ongoing monthly FF&E Reserves of 4.0% of the total revenue (the initial estimated FF&E monthly deposit is $42,391).

PIP Reserve – The loan documents require an upfront reserve of $1,825,000 for estimated expenses related to remaining planned renovations, and an additional springing deposit of 100% of any additional PIP work required by the franchisor under the franchise agreement.

Lockbox and Cash Management.Upon the occurrence of a Cash Trap Event Period (as defined below), the Residence Inn Denver City Center Borrower is required to establish a lender-controlled lockbox account and deposits all rents and direct all credit card companies to pay all amounts due directly into such lockbox account. During the continuance of a Cash Trap Event Period, all funds in the lockbox account are required to be swept into the cash management account controlled by the lender and disbursed on each payment date in accordance with the Residence Inn Denver City Center Mortgage Loan documents and all excess funds are required to be swept to an excess cash flow subaccount controlled by the lender.

A “Cash Trap Event Period” will commence upon the earlier of the following:

(i)

the occurrence and continuance of an event of default; or

(ii)

the net cash flow debt yield falling below 8.5% at the end of any calendar quarter.

A Cash Trap Event Period will end upon the occurrence of the following:

●

with regard to clause (i), the cure of such event of default; or

●

with regard to clause (ii), (a) the net cash flow debt yield being at least 8.75% for two consecutive calendar quarters or (b) the Residence Inn Denver City Center Borrower making a prepayment to the Residence Inn Denver City Center Mortgage Loan in an amount sufficient for the net cash flow debt yield to be equal to or greater than 8.5%.

Property Management.The Residence Inn Denver City Center Property is managed by Interstate Management Company, LLC (“Interstate”). Founded in 1961, Interstate has over 35,000 employees and manages approximately 84,000 hotel rooms across 500 hotels, resorts and conference centers.

Partial Release.Not permitted.

Hospitality – Extended Stay	Loan #3	Cut-off Date Balance:	$47,500,000
1725 Champa Street	Residence Inn Denver City Center	Cut-off Date LTV:	59.8%
Denver, CO 80202		U/W NCF DSCR:	2.32x
		U/W NOI Debt Yield:	13.2%

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease.None.

Right of First Refusal. Marriott International, Inc. has a right of first refusal (“ROFR”) to acquire the Residence Inn Denver City Center Property if there is a transfer of the hotel or the controlling direct or indirect interest in the Residence Inn Denver City Center Borrower to a Competitor (as defined in the loan documents). The ROFR is not extinguished by a foreclosure or deed-in-lieu thereof, and if the transfer to a Competitor is by foreclosure, or if the franchisee or its affiliates become a Competitor, the franchisor has the right to purchase the Residence Inn Denver City Center Property upon notice to the franchisee.

Terrorism Insurance.The Residence Inn Denver City Center Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provide coverage for terrorism in an amount equal to the full replacement cost of The Residence Inn Denver City Center Property, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a six-month extended period of indemnity (provided that if TRIPRA or a similar statute is not in effect, the borrower will not be obligated to pay terrorism insurance premiums in excess of two times the premium for the casualty and business interruption coverage on a stand-alone basis).

No. 4 – Shops at Trace Fork

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Rialto Mortgage Finance, LLC			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Retail – Anchored
Original Principal Balance:		$40,350,000			Location:	Charleston, WV
Cut-off Date Balance:		$40,350,000			Size:	367,460 SF
% of Initial Pool Balance:		5.2%			Cut-off Date Balance Per SF:	$109.81
Loan Purpose:		Refinance			Maturity Date Balance Per SF:	$109.81
Borrower Sponsors:		E. Stanley Kroenke			Year Built/Renovated:	1999/NAP
Guarantors:		E. Stanley Kroenke			Title Vesting:	Fee
Mortgage Rate:		4.8800%			Property Manager:	Self-managed
Note Date:		January 24, 2019			Current Occupancy (As of):	98.3% (10/17/2018)
Seasoning:		1 month			YE 2017 Occupancy:	99.4%
Maturity Date:		February 6, 2029			YE 2016 Occupancy:	99.4%
IO Period:		120 months			YE 2015 Occupancy:	99.4%
Loan Term (Original):		120 months			YE 2014 Occupancy:	99.4%
Amortization Term (Original):		NAP			Appraised Value:	$67,550,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per SF:	$183.83
Call Protection:		L(23),GRTR 1% or YM(93),O(4)			Appraisal Valuation Date:	November 26, 2018
Lockbox Type:		Springing			Underwriting and Financial Information
Additional Debt:		None			TTM NOI (11/30/2018):	$4,570,886
Additional Debt Type (Balance):		NAP			YE 2017 NOI:	$4,647,574
					YE 2016 NOI:	$4,600,171
					YE 2015 NOI:	$4,443,678
					U/W Revenues:	$5,583,492
					U/W Expenses:	$1,100,913
					U/W NOI:	$4,482,579
Escrows and Reserves⁽¹⁾					U/W NCF:	$4,243,730
	Initial		Monthly	Cap	U/W DSCR based on NOI/NCF:	2.24x / 2.12x
Taxes	$0		Springing	NAP	U/W Debt Yield based on NOI/NCF:	11.1% / 10.5%
Insurance	$0		Springing	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	11.1% / 10.5%
Replacement Reserve	$0		Springing	NAP	Cut-off Date LTV Ratio:	59.7%
TI/LC Reserve	$0		Springing	$918,650	LTV Ratio at Maturity:	59.7%

Sources and Uses
Sources			Uses
Original loan amount	$40,350,000	100.0%	Loan payoff	$22,921,810	56.8%
			Closing costs	1,591,860	3.9
			Return of equity	15,836,330	39.2
Total Sources	$40,350,000	100.0%	Total Uses	$40,350,000	100.0%

(1)

See “Escrows” section below.

The Mortgage Loan. The mortgage loan (the “Shops at Trace Fork Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in a 367,460 square feet power center located in Charleston, West Virginia (the “Shops at Trace Fork Property”).

The Borrowers and Borrower Sponsors.The borrowers are THF Onc Development, L.L.C., THF Onc Two Development, L.L.C., THF Onc Three Development, L.L.C. (collectively, the “Shops at Trace Fork Borrower”) each a Delaware limited liability company and single purpose entity with two independent directors. Legal counsel to the Shops at Trace Fork Borrower delivered a non-consolidation opinion in connection with the origination of the Shops at Trace Fork Mortgage Loan. The nonrecourse carve-out guarantor of the Shops at Trace Fork Mortgage Loan is E. Stanley Kroenke.

The borrower sponsor, E. Stanley Kroenke, is the chairman, cofounder, and owner of THF Realty, a real estate development firm. Mr. Kroenke holds real estate interests in shopping centers, office buildings, industrial and warehouse properties, sports stadiums and storage facilities across the United States. Mr. Kroenke owns 308 properties totaling approximately 43.6 million square feet. Mr. Kroenke’s current and former board and trustee memberships include Wal-Mart Stores, Inc., Central Bancompany, Boone County National Bank and Community Investments Partnerships of St. Louis. Mr. Kroenke also owns the Denver Nuggets of the National Basketball Association, the Colorado Avalanche of the National Hockey League, the Los Angeles Rams of the National Football League, and is the largest shareholder in Arsenal of the English Premier League. The borrower sponsor is one of several defendants under

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

complaints filed in April 2016 by the City of St. Louis related to the decision to relocate the St. Louis Rams to Los Angeles. See“Description of the Mortgage Pool - Litigation and Other Considerations” in the Preliminary Prospectus.

The Property.The Shops at Trace Fork Property is a shopping center containing 367,460 square feet of net rentable area located in Charleston, West Virginia. Built in 1999, the Shops at Trace Fork Property consists of 13, one-story retail buildings located on a 63.0 acre parcel. The Shops at Trace Fork Property is anchored by Lowe’s, and junior-anchored by Dick’s Sporting Goods, Best Buy, Marshalls, PetSmart, and HomeGoods. There are eight pads that are ground leased to Hibachi Japanese, Kentucky Fried Chicken, Longhorn Steakhouse, Mountaineer Imaging, O’Charley’s, One Stop Gas, Rocas and Zippy Car Wash, which are not included in the overall square footage of the Shops at Trace Fork Property. Additionally, the Shops at Trace Fork Property is shadow anchored by Target (not part of the collateral). The Shops at Trace Fork Property contains 2,220 surface parking spaces, resulting in a parking ratio of 5.9 spaces per square feet of rentable area. As of October 17, 2018, the Shops at Trace Fork Property was 98.3% occupied by 29 national, regional and local tenants.

Major Tenants.

Largest Tenant: Lowe’s (22.6% of underwritten base rent; 7/31/2024 lease expiration) –Founded in 1946 and based in Mooresville, N.C., Lowe’s offers a complete line of products for maintenance, repair, remodeling, and decorating, and is the world’s second largest home improvement retailer. As of February 2, 2018, Lowe’s operated 2,152 home improvement and hardware stores, representing approximately 215 million square feet of retail selling space. Lowe’s has been a tenant at the Shops at Trace Fork Property since 1999 and has six, 5-year renewal options remaining.

2^ndLargest Tenant: Dick’s Sporting Goods (12.1% of underwritten base rent; 1/31/2020 lease expiration) –Dick’s Sporting Goods, Inc., a omni-channel corporation sporting goods retailer was founded in 1948 and is headquartered in Pittsburgh, Pennsylvania. Dick’s Sporting Goods, Inc., which also owns Golf Galaxy, Field & Stream, and Dick’s Team Sports HQ, offers a broad assortment of brand name sporting goods equipment, apparel, and footwear in specialty shops and through in-store service. For fiscal year ended January 2018, Dick’s reported net sales of approximately $8.6 billion, an increase of 8.4% from the previous year. Dick’s Sporting Goods has been a tenant at the Shops at Trace Fork Property since 1999, and has four, 5-year renewal options remaining.

3^rdLargest Tenant: Best Buy (5.9% of underwritten base rent; 1/31/2022 lease expiration) –Best Buy is a provider of technology products, services and solutions with retail operations located in the U.S., Canada and Mexico. Best Buy was founded in 1966 and is headquartered in Richfield, Minnesota. As of fiscal year 2018, Best Buy operated 1,293 domestic stores and 216 international stores. According to the 2018 annual report, net sales for fiscal 2018 were $42.1 billion, up 6.97% over the prior year’s total sales of $39.4 billion. Best Buy has been a tenant at the Shops at Trace Fork Property since 2010 and has four, 5-year renewal options remaining.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

The following table presents certain information relating to the tenancy at the Shops at Trace Fork Property:

Major Tenants

Tenant Name	Credit Rating (Fitch/Moody’s/ S&P)⁽¹⁾	Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽²⁾	Annual U/W Base Rent⁽²⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Anchor Tenants
Lowe’s	NR/A3/A-	135,197	36.8%	$8.08	$1,093,067	22.6%	7/31/2024	6, 5-year	N
Total Anchor Tenant		135,197	36.8%	$8.08	$1,093,067	22.6%

Major Tenants
Dick’s Sporting Goods	NR/NR/NR	48,000	13.1%	$12.25	$588,000	12.1%	1/31/2020	4, 5-year	N
Best Buy	BBB/Baa1/BBB	32,150	8.7%	$8.85	$284,620	5.9%	1/31/2022	4, 5-year	N
Marshall’s	NR/A2/A+	30,500	8.3%	$8.95	$272,975	5.6%	3/31/2025	2, 5-year	N
PetSmart	NR/B3/CCC	26,988	7.3%	$13.65	$368,386	7.6%	1/31/2020	4, 5-year	N
HomeGoods	NR/A2/A+	25,000	6.8%	$10.00	$250,000	5.2%	11/30/2025	2, 5-year	N
Total Major Tenants		162,638	44.3%	$10.85	$1,763,981	36.4%

Non-Major Tenant		63,325	17.2%	$31.42	$1,989,821	41.1%
Occupied Collateral Total		361,160	98.3%	$13.42	$4,846,869	100.0%

Vacant Space		6,300	1.7%

Collateral Total		367,460	100.0%

(1)

Certain ratings are those of the parent company whether or not the parent company guarantees the lease.

(2)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through August 2019 totaling $150,594.

The following table presents certain information relating to tenant sales at the Shops at Trace Fork Property for tenants required to report sales:

Tenant Sales (PSF)

Major Tenant Name	% of Total Annual U/W Base Rent	2016	2017	TTM⁽¹⁾	Major Tenant Occupancy Cost⁽²⁾
Marshall’s	5.6%	$285	$290	$290	4.3%
HomeGood’s	5.2%	$256	$265	$265	4.8%

In-Line Sales PSF		$228	$208	$225
In-Line Occupancy Cost		9.4%	10.3%	9.5%

(1)	TTM Sales PSF and Occupancy Cost are for the trailing 12-month period ending August 30, 2018.

(2)	Occupancy Cost is based on TTM sales, underwritten base rent and underwritten reimbursements.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

The following table presents certain information relating to the lease rollover schedule at the Shops at Trace Fork Property:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF
MTM	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2019	4	15,520	4.2%	15,520	4.2%	$278,660	5.7%	$17.95
2020	9	89,669	24.4%	105,189	28.6%	$1,553,738	32.1%	$17.33
2021	5	18,601	5.1%	123,790	33.7%	$422,159	8.7%	$22.70
2022	2	35,570	9.7%	159,360	43.4%	$388,075	8.0%	$10.91
2023⁽³⁾	2	2	0.0%	159,362	43.4%	$177,895	3.7%	$88,947.50
2024	2	139,197	37.9%	298,559	81.2%	$1,173,067	24.2%	$8.43
2025	2	55,500	15.1%	354,059	96.4%	$522,975	10.8%	$9.42
2026	0	0	0.0%	354,059	96.4%	$0	0.0%	$0.00
2027	0	0	0.0%	354,059	96.4%	$0	0.0%	$0.00
2028	2	3,601	1.0%	357,660	97.3%	$256,800	5.3%	$71.31
2029	1	3,500	1.0%	361,160	98.3%	$73,500	1.5%	$21.00
Thereafter	0	0	0.0%	361,160	98.3%	$0	0.0%	$0.00
Vacant	0	6,300	1.7%	367,460	100.0%	$0	0.0%	$0.00
Total/Weighted Average	29	367,460	100.0%			$4,846,869	100.0%	$13.42⁽⁴⁾

(1)

Information obtained from the underwritten rent roll.

(2)

(3)

The 2023 Annual U/W Base Rent PSF results from the 2023 expirations of two out of eight ground leases, whose rents were included in the underwriting analysis, but their square footages were not. 1 square foot was assigned to each ground lease to underwrite the rents.

(4)

The Total/Weighted Average and Annual U/W Base Rent PSF exclude vacant space.

The following table presents historical occupancy percentages at the Shops at Trace Fork Property:

Historical Occupancy

12/31/2014⁽¹⁾	12/31/2015⁽¹⁾	12/31/2016⁽¹⁾	12/31/2017⁽¹⁾	10/17/2018⁽²⁾
99.5%	99.5%	99.5%	99.5%	98.3%

(1)	Information obtained from the Shops at Trace Fork Borrower.

(2)	Information obtained from the underwritten rent roll.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the underwritten net cash flow at the Shops at Trace Fork Property:

Cash Flow Analysis

	2015	2016	2017	TTM 11/30/2018	U/W	%(1)	U/W $ per SF
Rents in Place	$4,595,699	$4,768,322	$4,782,466	$4,807,442	$4,696,275	79.9%	$12.78
Contractual Rent Steps⁽²⁾	0	0	0	0	150,594	2.6	0.41
Grossed Up Vacant Space	0	0	0	0	130,175	2.2	0.35
Gross Potential Rent	$4,595,699	$4,768,322	$4,782,466	$4,807,442	$4,977,044	84.7%	$13.54
Other Income	55,959	54,288	51,746	41,545	41,545	0.7	0.11
Total Recoveries	800,181	870,640	797,209	798,733	856,584	14.6	2.33
Net Rental Income	$5,451,839	$5,693,250	$5,631,421	$5,647,721	$5,875,173	100.0%	$15.99
(Vacancy & Credit Loss)	0	0	0	0	(291,681)⁽³⁾	(5.0)	(0.79)
Effective Gross Income	$5,451,839	$5,693,250	$5,631,421	$5,647,721	$5,583,492	95.0%	$15.19

Real Estate Taxes	385,023	395,595	395,120	388,217	398,135	7.1	1.08
Insurance	29,706	26,812	32,739	32,392	31,859	0.6	0.09
Management Fee	163,830	169,250	166,990	152,812	167,505	3.0	0.46
Other Operating Expenses	429,602	501,422	388,999	503,414	503,414	9.0	1.37
Total Operating Expenses	$1,008,160	$1,093,078	$983,847	$1,076,835	$1,100,913	19.7%	$3.00

Net Operating Income	$4,443,678	$4,600,171	$4,647,574	$4,570,886	$4,482,579	80.3%	$12.20
Replacement Reserves	0	0	0	0	55,119	1.0	0.15
TI/LC	0	0	0	0	183,730	3.3	0.50
Net Cash Flow	$4,443,678	$4,600,171	$4,647,574	$4,570,886	$4,243,730	76.0%	$11.55

NOI DSCR	2.22x	2.30x	2.32x	2.28x	2.24x
NCF DSCR	2.22x	2.30x	2.32x	2.28x	2.12x
NOI Debt Yield	11.0%	11.4%	11.5%	11.3%	11.1%
NCF Debt Yield	11.0%	11.4%	11.5%	11.3%	10.5%

(1)	Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(2)	Represents contractual rent steps through August 2019.

(3)	The underwritten economic vacancy is 5.0%.The Shops at Trace Fork Property was 98.3% leased as of October 17, 2018.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

Appraisal.As of the appraisal valuation date of November 26, 2018, the Shops at Trace Fork Property had an “as-is” appraised value of $67,550,000.

Environmental Matters. According to a Phase I environmental site assessment dated November 15, 2018, there was no evidence of any recognized environmental conditions at the Shops at Trace Fork Property.

Market Overview and Competition.The Shops at Trace Fork Property is located in Charleston, Kanawah County, West Virginia, within the Charleston metropolitan statistical area. Charleston is the state capital and largest city within West Virginia and is located in the Appalachian Mountain region. Charleston’s economy is driven by trade, utilities, government, healthcare and education. Major employers include state government, local government, Charleston Area Medical Center, Kanawha County Schools and the federal government.

The Shops at Trace Fork Property is located approximately five miles northeast of the downtown Charleston. Downtown Charleston includes numerous restaurants and amenities, including the Kanawha County Courthouse, Charleston City Hall and the Robert C. Byrd Federal Courthouse. Access to the Shops at Trace Fork Property’s neighborhood is provided via US Highway 119, Route 60, and Interstate 64. The Shops at Trace Fork Property’s neighborhood consists of a mixture of commercial and residential development. Major retail development located along US Highway 119 include Dudley Farms Plaza (owned by an affiliate of the borrower), Southridge Shopping Center, Olive Garden, Home Depot, Chuck E. Cheese, McDonald’s, and Dollar Tree. According to a third party market research report, the 2018 estimated population within a one, three, and five-mile radius is 1,652, 30,751 and 62,210. The average household income within the same radii is $80,901, $71,803, and $70,673.

Submarket Information – According to a third-party market research report, the Shops at Trace Fork Property is situated within the South Charleston retail submarket. As of the second quarter of 2018, the submarket reported a total inventory of 1.5 million square feet with a 2.6% vacancy rate and an average quoted rental rate of $16.00 per square feet. As of the second quarter of 2018, the South Charleston retail submarket reported positive absorption of 1,513 square feet, with no new construction or deliveries.

Appraiser’s Comp Set – The appraiser identified five primary competitive properties for the Shops at Trace Fork Property totaling approximately 1.3 million square feet, which reported an average occupancy rate of approximately 95.6%. The appraiser concluded to net market rents for the Shops at Trace Fork Property of $13.00 per square foot, for anchor tenants, $12.00 per square foot for junior anchor tenants, $19.00 per square foot for large in-line tenants, $22.00 per square foot for small in-line tenants and $50,000 to $130,000 per year for pad leases.

The following table presents certain information relating to the appraiser’s market rent conclusion for the Shops at Trace Fork Property:

Market Rent Summary⁽¹⁾

	Anchor	Jr. Anchor	Large In-Line	Small In-Line	Pad
Market Rent (PSF)	$10.00	$12.00	$19.00	$22.00	$50,000 - $130,000
Lease Term (Years)	10	10	10	10	20
Lease Type (Reimbursements)	Gross	NNN	NNN	NNN	Net, CAM
Rent Increase Projection	None	None	None	None	None

(1)	Information obtained from the appraisal.

The table below presents certain information relating to comparable sales for the Shops at Trace Fork Property identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Sale Price	Sale Price (PSF)
Hamilton Crossing	Alcoa, TN	175,742	Oct-18	$27,750,000	$157.90
Winchester Station	Winchester, VA	182,816	Sep-18	$30,550,000	$167.11
Shoppes at Legacy Park	Tuscaloosa, AL	216,497	Jan-18	$46,500,669	$214.79
Oxford Exchange	Oxford, AL	333,975	Dec-17	$53,500,000	$160.19
Verstavia Hills City Center	Vestavia Hills, AL	391,899	Nov-17	$68,475,000	$174.73

(1)	Information obtained from the appraisal.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

The table below presents certain information relating to four comparable retail properties to the Shops at Trace Fork Property identified by the appraiser:

Competitive Set⁽¹⁾

Property Name / Location	Year Built/ Renovated	Total GLA (SF)	Occupancy	Distance to Subject	Major / Anchor Tenants
Shops at Trace Fork (Subject) Charleston, WV	1999/NAP	367,460	98.3%	-	Lowe’s, Dick’s Sporting Goods, Best Buy, Marshalls, PetSmart, HomeGoods
Dudley Farms Plaza 222 RHL Blvd Charleston, WV	2000/NAP	198,769	100.0%	1.0 mile	Kohl’s
Nitro Marketplace 10-1000 Nitro Marketplace Roseville, WV	1998/NAP	440,949	99.0%	10.6 miles	Walmart, Lowes
Liberty Square Shopping Center 100 Liberty Square Hurricane, WV	1990/1994	280,000	90.0%	19.1 miles	Magic Mart, Elder-Beerman, Dollar Tree, Radio Shack, GNC, Factory Connection
The Crossings 103-223 Crossing Mall Road Elkview, WV	1989/NAP	216,092	91.0%	18.0 miles	AT&T, Brazilian Rest, Anytime Fitness, Rent-A-Center
Merritt Creek Shopping Center Thundering Herd Drive Barboursville, WV	2002/NAP	257,969	98.0%	39.5 miles	A.C. Moore Arts & Craft, Big Sandy Superstore, Dressbarn, Marshalls

(1)	Information obtained from the appraisal and the underwritten rent roll.

The following table presents certain information relating to five comparable leases to those at the Shops at Trace Fork Property:

Comparable Leases⁽¹⁾

Property Name/Location	Year Built/ Renovated	Total GLA (SF)	Distance from Subject	Occupancy	Lease Term	Tenant Size	Annual Base Rent PSF	Reimbursement Amount PSF	Lease Type
Dudley Farms Plaza 222 RHL Blvd. Charleston, WV	2000/NAP	198,769	1.0 mile	100.0%	6.0 – 10.0 Yrs	4,000 – 12,000 SF	$18.00 - $25.00	NAV	NNN
Nitro Marketplace 10-10000 Nitro Marketplace Cross Lanes, WV	1998/NAP	440,949	10.6 miles	99.0%	3.0 – 5.0 Yrs	1,500 – 24,000 SF	$10.50 - $19.00	NAV	NNN
Liberty Square Shopping Center 100 Liberty Square Hurricane, WV	1990/1994	280,000	19.1 miles	90.0%	5.0 Yrs	2,200 – 60,097 SF	$6.88 - $12.00	NAV	NNN
The Crossings 103 -223 Crossing Mall Road Elkview, WV	1989/NAP	216,092	18.0 miles	91.0%	2.7 - 6.1 Yrs	2,150 – 5,260 SF	$9.50 - $15.00	NAV	NNN
Merritt Creek Shopping Center Thundering Herd Drive Barboursville, WV	2002/NAP	257,969	39.5 miles	98.0%	3.0 – 10.0 Yrs	1,672 – 2,887 SF	$20.00 - $24.00	NAV	NNN

(1)

Information obtained from the appraisal.

Escrows.

Real Estate Taxes – The loan documents did not require an upfront real estate tax reserve. Ongoing monthly real estate tax reserves will not be required unless a Cash Management Trigger Event or Cash Sweep Event (see “Lockbox and Cash Management” section) has occurred and is continuing under the Shops at Trace Fork Mortgage Loan documents. In the event a Cash Management Trigger Event or Cash Sweep Event (as defined below) has occurred, the Shops at Trace Fork Borrower is required to deposit monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be necessary to pay taxes over the then succeeding twelve months.

Insurance – The loan documents did not require an upfront insurance reserve. Ongoing monthly insurance reserves will not be required unless a Cash Management Trigger Event or Cash Sweep Event has occurred and is continuing under the Shops at Trace Fork Mortgage Loan documents. In the event a Cash Management Trigger Event or Cash Sweep Event has occurred, the Shops at Trace Fork Borrower is required to deposit monthly insurance reserves in an amount equal to one-twelfth of the amount that the lender estimates will be necessary to pay insurance premiums over the then succeeding twelve months.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

Replacement Reserves – The loan documents did not require an upfront replacement reserve. Ongoing monthly replacement reserves will not be required unless as a Cash Management Trigger Event or Cash Sweep Event has occurred and is continuing under the Shops at Trace Fork Mortgage Loan documents. In the event a Cash Management Trigger Event or Cash Sweep Event has occurred, the Shops at Trace Fork Borrower is required to deposit monthly replacement reserves of $4,593.

TI/LC Reserve – The loan documents did not require an upfront tenant improvement and leasing commission reserve. Ongoing monthly tenant improvement and leasing commission reserves will not be required unless a Cash Management Trigger Event or Cash Sweep Event has occurred and is not continuing under the Shops at Trace Fork Mortgage Loan documents. In the event a Cash Management Trigger Event or Cash Sweep Event has occurred, the Shops at Trace Fork Borrower is required to deposit monthly tenant improvement and leasing commissions of $15,311, subject to a cap of $918,650. In addition, when a Cash Management Trigger Event and a Cash Sweep Event are in effect, the borrower is required to deposit in the TI/LC reserve any amounts paid to the borrower in connection with a termination, cancellation, sale or other disposition of any lease (or portion of the lease) other than any amount that relates to periods prior to such disposition date.

Lockbox and Cash Management.The Shops at Trace Fork Mortgage Loan documents require a springing lockbox and a springing cash management. Upon the occurrence and continuance of a Cash Management Trigger Event the borrower is required to establish a lender-controlled lockbox account and instruct tenants to deposit rents into such lockbox account. The Shops at Trace Fork Mortgage Loan documents also require that all revenues received by the Shops at Trace Fork Borrower or property manager be deposited into the lockbox account within one business day of receipt. Pursuant to the Shops at Trace Fork Mortgage Loan documents, all excess funds on deposit are required to be applied as follows (a) if a Cash Sweep Event (as defined below) is not in effect, to the Shops at Trace Fork Borrower; and (b) if a Cash Sweep Event is in effect due to the existence of a Critical Tenant Trigger Event (as defined below) to the Critical Tenant TI/LC account until the applicable Critical Tenant Trigger Event cure has occurred. If a Cash Sweep Event is in effect but a Critical Tenant Trigger Event is not in effect, then funds will be applied to the excess cash flow account.

A “Cash Management Trigger Event” will commence upon the occurrence of any of the following:

(i)

an event of default;

(ii)

the Shops at Trace Fork Borrower’s second late debt service payment within a 12-month period;

(iii)

a bankruptcy action of the Shops at Trace Fork Borrower, guarantor or property manager;

(iv)

a Cash Management DSCR Trigger Event; or

(v)

a Critical Tenant Trigger Event.

A Cash Management Trigger Event will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default having been accepted or waived by lender;

●

with regard to clause (ii) above, the debt service payments having been paid on time for 12 consecutive months;

●

with regard to clause (iii) above, such bankruptcy action petition having been discharged, stayed, or dismissed within 60 days of such filing among other conditions for the Shops at Trace Fork Borrower or guarantor and within 120 days for the property manager, or with respect to the property manager, the Shops at Trace Fork Borrower has replaced the property manager with a qualified property manager acceptable to the lender;

●

with regard to clause (iv) above, the date the amortizing debt service coverage ratio based on the trailing 12-month period immediately preceding the date of such determination is greater than 1.15x for two consecutive quarters; and

●

with regard to clause (v) above, a Critical Tenant Trigger Event Period Cure (as defined below).

A “Cash Management DSCR Trigger Event” will occur on any day the debt service coverage ratio, based on the trailing 12-month period immediately preceding the date of determination, is less than 1.15x, unless within five days of such date, the Shops at Trace Fork Borrower delivers one or more Master Leases (as defined below) that result in a minimum debt service coverage ratio of 1.25x for the Shops at Trace Fork Mortgage Loan.

A “Cash Sweep Event” will commence upon the occurrence of any of the following:

(i)

an event of default;

(ii)

a bankruptcy action of the Shops at Trace Fork Borrower, guarantor or property manager;

(iii)

a Cash Management DSCR Trigger Event; or

(iv)

a Critical Tenant Trigger Event.

A Cash Sweep Event will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default having been accepted or waived by lender;

●

with regard to clause (ii) above, such bankruptcy action petition having been discharged, stayed, or dismissed within 30 days of such filing among other conditions for the Shops at Trace Fork Borrower or guarantor and within 120 days for the property manager, or with respect to the property manager, the Shops at Trace Fork Borrower has replaced the property manager with a qualified property manager acceptable to the lender;

●

with regard to clause (iii) above, the date the amortizing debt service coverage ratio based on the trailing 12-month period immediately preceding the date of such determination is greater than 1.10x for two consecutive quarters; and

●

with regard to clause (iv) above, a Critical Tenant Trigger Event Period Cure.

Retail - Anchored	Loan #4	Cut-off Date Balance:	$40,350,000
50 RHL Boulevard	Shops at Trace Fork	Cut-off Date LTV:	59.7%
Charleston, WV 25309		U/W NCF DSCR:	2.12x
		U/W NOI Debt Yield:	11.1%

A “Cash Sweep DSCR Trigger Event” will occur on any day the debt service coverage ratio, based on the trailing 12-month period immediately preceding the date of determination, is less than 1.10x, unless within five days of such date, the Shops at Trace Fork Borrower delivers one or more Master Leases that result in a minimum debt service coverage ratio of 1.25x for the Shops at Trace Fork Mortgage Loan.

A “Critical Tenant Trigger Event” will occur if E. Stanley Kroenke is not the guarantor of the Shops at Trace Fork Mortgage Loan and one of the following occurs:

(i)

if Lowe’s Home Center, Inc., Dick’s Sporting Goods Inc. or any or any other tenant occupying the space currently occupied by such tenant or tenants (each, a “Critical Tenant” and each related lease, a “Critical Tenant Lease”) gives notice of its intention to not extend or renew its lease;

(ii)

the date that is twelve months prior to the related lease expiration date if the Critical Tenant has failed to give notice of its election to renew its lease;

(iii)

on or prior to the date on which the Critical Tenant is required under its lease to notify the Shops at Trace Fork Borrower of its election to renew its lease, the Critical Tenant fails to give such notice;

(iv)

an event of default under the Critical Tenant Lease;

(v)

a bankruptcy action with respect to the Critical Tenant;

(vi)

the Critical Tenant discontinues its normal business operations; or

(vii)

the Critical Tenant is downgraded below “BBB-” or the equivalent by an credit reporting agency.

A “Critical Tenant Trigger Event Cure” will occur upon:

●

with regard to clause (i), (ii) or (iii) above, (x) the date that (1) the Critical Tenant Lease extension is executed and delivered to the lender by the Shops at Trace Borrower and the related tenant improvement costs, leasing commissions and other material costs and expenses have been deposited into the Critical Tenant TI/LC account; or (2) a Critical Tenant Space Re-Tenanting Event (as defined below) has occurred;

●

with regard to clause (iv) above, a cure of the applicable default;

●

with regard to clause (v) above, an affirmation that the Critical Tenant is actually paying all rents and other amounts under the lease; or

●

with regard to clause (vi) above, the Critical Tenant re-commencing its normal business operations or a Critical Tenant Space Re-Tenanting Event (as defined below) having occurred; or

●

with regard to clause (vii) above, the date the credit rating of the related Critical Tenant is no longer less than a “BBB-” or the equivalent by any credit reporting agency.

A “Critical Tenant Space Re-tenant Event” will occur on the date each of the following conditions has been satisfied: (i) the Critical Tenant space is at least 75% leased to one or more replacement tenants for a term of at least five years and on terms that are acceptable to the lender; (ii) all tenant improvement costs, leasing commissions and other material costs and expenses relating to the re-letting of the space have been paid in full; and (iii) the replacement tenant(s) are conducting normal business operations at the related Critical Tenant space.

A “Master Lease” is a lease agreement between the Shops at Trace Fork Borrower, as landlord, and the guarantor, as tenant, that (i) is for a term of 10 or more years; (ii) is subordinate to the loan documents, and (iii) contains terms and conditions reasonably acceptable to the lender. The Master Lease may not be amended without the prior consent of the lender and can be terminated only if (x) no event of default exists and (y) as of the Master Lease termination date, (a) the debt service coverage ratio is not less than 1.25x for two consecutive quarters without including rent from the Master Lease, or (b) the Shops at Trace Fork Borrower has deposited with the lender an amount equal to cash flow that would have been swept into the excess cash flow account, among other conditions. There are no Master Leases currently in effect.

Property Management. The Shops at Trace Fork Property is managed by an affiliate of the Shops at Trace Fork Borrower.

Partial Release. Not permitted.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease. None.

Terrorism Insurance.The Shops at Trace Fork Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the Shops at Trace Fork Borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Shops at Trace Fork Property, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a 12-month extended period of indemnity.

No. 5 – 575 Maryville

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Barclays Capital Real Estate Inc.			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Office - Suburban
Original Principal Balance:		$35,000,000			Location:	Town & Country, MO
Cut-off Date Balance:		$35,000,000			Size:	253,492 SF
% of Initial Pool Balance:		4.5%			Cut-off Date Balance Per SF:	$138.07
Loan Purpose:		Acquisition			Maturity Date Balance Per SF:	$138.07
Borrower Sponsors:		Ten Capital Management; Pembroke IV LLC			Year Built/Renovated:	1999/NAP
Guarantors⁽¹⁾:		Various			Title Vesting:	Fee
Mortgage Rate:		4.8220%			Property Manager:	Cushman & Wakefield U.S., Inc.
Note Date:		December 12, 2018			Current Occupancy (As of):	97.0% (11/30/2018)
Seasoning:		2 months			YE 2017 Occupancy:	88.5%
Maturity Date:		January 6, 2029			YE 2016 Occupancy⁽³⁾:	54.4%
IO Period:		120 months			YE 2015 Occupancy⁽³⁾:	81.8%
Loan Term (Original):		120 months			YE 2014 Occupancy⁽³⁾:	100.0%
Amortization Term (Original):		NAP			Appraised Value:	$50,280,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per SF:	$198.35
Call Protection:		L(26),D(89),O(5)			Appraisal Valuation Date:	September 6, 2018
Lockbox Type:		Hard/Springing Cash Management
Additional Debt:		None
Additional Debt Type (Balance):		NAP
					Underwriting and Financial Information
					TTM NOI (9/30/2018)⁽⁴⁾⁽⁵⁾:	$2,872,447
					YE 2017 NOI⁽⁴⁾:	$3,443,544
					YE 2016 NOI⁽⁴⁾:	$4,250,624
Escrows and Reserves⁽²⁾					YE 2015 NOI⁽⁴⁾:	$4,305,153
	Initial		Monthly	Cap	U/W Revenues:	$6,561,178
Taxes	$69,633		$69,633	NAP	U/W Expenses:	$2,591,920
Insurance	$0		Springing	NAP	U/W NOI⁽⁴⁾⁽⁵⁾:	$3,969,258
Replacement Reserve	$200,000		$4,301	NAP	U/W NCF:	$3,424,957
TI/LC Reserve	$0		$32,256	NAP	U/W DSCR based on NOI/NCF:	2.31x / 2.00x
Cushman Gap Rent Reserve	$344,312		$0	NAP	U/W Debt Yield based on NOI/NCF:	11.3% / 9.8%
Cushman TI/LC Reserve	$1,560,919		$0	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	11.3% / 9.8%
Eastman TI/LC Reserve	$150,000		$0	NAP	Cut-off Date LTV Ratio:	69.6%
Common Charges Reserve	$45,730		$3,518	NAP	LTV Ratio at Maturity:	69.6%

Sources and Uses
Sources			Uses
Original mortgage loan amount	$35,000,000	67.8%	Purchase price	$50,000,000	96.8%
Borrower equity	16,640,164	32.2	Purchase Credits⁽⁶⁾	(2,084,393)	(4.0)
			Upfront reserves	2,370,594	4.6
			Closing costs	1,353,963	2.6
Total Sources	$51,640,164	100.0%	Total Uses	$51,640,164	100.0%

(1)

The guarantors of the 575 Maryville Mortgage Loan (as defined below) are John B. Vander Zwaag, Richard C. Hamlin, Jeffrey J. Irmer, Benjamin Adams, Pembroke IV LLC, TCM Maryville GP LLC, and TCM Maryville LLC.

(2)

See “Escrows” section below.

(3)

See “Historical Occupancy” section below.

(4)

See “Cash Flow Analysis” section below.

(5)

The increase in Net Operating Income from TTM 9/30/2018 to U/W is primarily driven by (i) the expiration of free rent periods, (ii) Cushman & Wakefield’s expansion into an additional 21,605 square feet with a commencement date of 8/1/2019 (all gap rent reserved) and (iii) increased rent driven by contractual rent steps and straight line rent for Eastman.

(6)

Purchase Credits include (i) outstanding tenant improvement obligations for Cushman & Wakefield and Eastman and (ii) outstanding gap rent for Cushman & Wakefield. Such Purchase Credits were reserved for by the lender. See “Escrows” section for a full description of Escrows and Reserves.

The Mortgage Loan. The mortgage loan (the “575 Maryville Mortgage Loan”) is evidenced by a single promissory note with an original principal balance of $35,000,000 and outstanding principal balance as of the Cut-off Date of $35,000,000 secured by a first mortgage encumbering the fee interest in a Class A office building located in Town & Country, Missouri (the “575 Maryville Property”).

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

The Borrower and Borrower Sponsors.The borrower is Pembroke TCM Maryville LLC (the “575 Maryville Borrower”), a Delaware limited liability company and single purpose entity with one independent director. Legal counsel to the 575 Maryville Borrower delivered a non-consolidation opinion in connection with the origination of the 575 Maryville Mortgage Loan. The nonrecourse carve-out guarantors of the 575 Maryville Mortgage Loan are John B. Vander Zwaag, Richard C. Hamlin, Jeffrey J. Irmer, Benjamin Adams, Pembroke IV LLC, TCM Maryville GP LLC, and TCM Maryville LLC.

The borrower sponsors of the 575 Maryville Mortgage Loan are Pembroke IV LLC and Ten Capital Management. Pembroke IV LLC was founded in 2007 and invests in commercial real estate, specifically where short to intermediate capital market inefficiencies create opportunities. John B. Vander Zwaag, the founder and chief executive officer of Pembroke IV LLC, has completed over $3.0 billion of transactions in the United States and Canada over his 30 year career in real estate finance and investment. John B. Vander Zwaag has assembled and managed nationally focused acquisitions, asset management and investment banking teams for four separate organizations. Jeffrey J. Irmer joined Pembroke IV LLC as a principal and chief operating officer in 2016. Richard C. Hamlin is a principal of Pembroke IV LLC and has been a practicing real estate attorney for over 35 years. Ten Capital Management is a privately held real estate investment company with Benjamin Adams as its founder and chief executive officer. TCM Maryville GP LLC and TCM Maryville LLC are affiliates of the 575 Maryville Borrower.

The Property.The 575 Maryville Property is a 253,492 square foot, Class A office building located in Town & Country, Missouri situated on 8.7 acres of land. The 575 Maryville Property is comprised of a six-story office building located approximately fifteen miles from the St. Louis Central Business District. The 575 Maryville Property is part of the larger Maryville Centre, a corporate campus featuring lakes, fountains, patios, three miles of nature and fitness trails, and the Marriott St. Louis West hotel (which has its own restaurant). The Maryville Centre has averaged 95.0% occupancy over the past five years, and rental rates in the office park have increased by approximately 15.0% since the beginning of 2014. Built in 1999, the building amenities include on-site dining, two shared conference rooms that can seat up to 100 people, and a 1,400 square foot fitness center. Over the past three years, the 575 Maryville Property has undergone $652,917 of property improvements, including upgrades to the fitness center, improvements to the café, garage, HVAC, security, and EMS system. Additionally, the 575 Maryville Property contains 1,077 parking spaces, including a three-level, 645 space parking garage, providing a ratio of 4.2 parking spaces per 1,000 square feet. As of November 30, 2018, the 575 Maryville Property was 97.0% leased to four tenants.

Major Tenants.

Largest Tenant: Cushman & Wakefield (55.3% of underwritten base rent; 7/31/2027 lease expiration) –Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm with approximately 48,000 employees in 400 offices and 70 countries. In the third quarter of 2018, the firm had revenue of approximately $1.5 billion across core services of property, facilities and project management, leasing, capital markets, valuation, and other services, up 16.8% from the third quarter of 2017. Cushman & Wakefield’s state-of-the-art Portfolio Services Center, which is located at the 575 Maryville Property, is the showpiece of Cushman & Wakefield’s Global Occupier Services. Cushman & Wakefield has invested approximately $7.6 million of their own money building out their space at the 575 Maryville Property. Cushman & Wakefield currently occupies the fifth and sixth floors at the 575 Maryville Property and has signed an expansion lease to occupy the third floor, taking an additional 45,688 square feet. Cushman & Wakefield took occupancy of 24,083 square feet of the third floor space in November 2018 and is expected to occupy the remaining 21,605 square feet of third floor space in August 2019, with all gap rent for this space escrowed at closing ($344,312).

2^ndLargest Tenant: Eastman (19.4% of underwritten base rent; 9/30/2023 lease expiration) –Eastman (NYSE: EMN) is a Fortune 500 company that produces advanced materials, additives and functional products, specialty chemicals, and fibers found in products people use every day. In 1994, Eastman was spun off from its parent, Eastman Kodak. Eastman serves customers in more than 100 countries and had sales revenue of approximately $2.5 billion in the third quarter of 2018, up 3.3% from the third quarter of 2017. Solutia Inc., who Eastman acquired in 2012, was the original tenant at the 575 Maryville Property dating back to June 1999.

3^rdLargest Tenant: Century Link (18.6% of underwritten base rent; 6/30/2022 lease expiration) –Century Link (NYSE: CTL) is a communications provider that offers television and cable, broadband services, and telecommunication services. As of December 31, 2017, Century Link operated approximately 10.3 million total access lines and served approximately 5.7 million broadband subscribers. Century Link is the second largest U.S. communications provider to global enterprise customers, with customers in more than 60 countries. Century Link’s revenue for the third quarter of 2018 was approximately $5.8 billion, up 3.6% from the third quarter of 2017. Century Link has been located at the 575 Maryville Property since 2008 and renewed their lease for an additional five years in 2017.

4^thLargest Tenant: Maryville University (6.7% of underwritten base rent; 10/31/2025 lease expiration) –Founded in 1872, Maryville University is a private, coeducational university, with its 130-acre campus located directly west of the 575 Maryville Property. Maryville University has a current enrollment of approximately 3,700 undergraduate students and approximately 5,500 graduate students with a 14:1 student-to-faculty ratio. Maryville University offers over 90 degree programs, 25 online degrees, 19 master’s programs, and five doctoral programs. Maryville University utilizes their space at the 575 Maryville Property for administrative purposes and does not consist of classroom space.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

The following table presents certain information relating to the tenancy at the 575 Maryville Property:

Major Tenants

Tenant Name	Credit Rating (Fitch/Moody’s/ S&P)⁽¹⁾		Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽²⁾	Annual U/W Base Rent⁽²⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Major Tenants
Cushman & Wakefield⁽³⁾		NR/NR/NR	137,682	54.3%	$27.32	$3,761,472	55.3%	7/31/2027	2, 5-year	N⁽⁴⁾
Eastman	BBB/Baa2/BBB		46,086	18.2%	$28.55	$1,315,940	19.4%	9/30/2023	NAP	N
Century Link	BB/Ba3/BB		45,807	18.1%	$27.58	$1,263,357	18.6%	6/30/2022	NAP	N
Maryville University	NR/NR/NR		16,417	6.5%	$27.80	$456,311	6.7%	10/31/2025	NAP	N
Total Major Tenants			245,992	97.0%	$27.63	$6,797,079	100.0%

Occupied Collateral Total			245,992	97.0%	$27.63	$6,797,079	100.0%

Vacant Space			7,500	3.0%

Collateral Total			253,492	100.0%

(1)

Certain ratings are those of the parent company whether or not the parent company guarantees the lease.

(2)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through November 2019 totaling $102,320. Additionally, Eastman’s underwritten rent has been straight-line averaged over its lease term resulting in a $67,009 increase over in-place rent.

(3)

Cushman & Wakefield currently occupies the fifth and sixth floors at the 575 Maryville Property and has signed an expansion lease to occupy the third floor, taking an additional 45,688 square feet. Cushman & Wakefield occupied 24,083 square feet of the space in November 2018 and is expected to occupy the remaining 21,605 square feet in August 2019, with all gap rent for this space escrowed at closing ($344,312). Additionally, Cushman & Wakefield has the right to expand into (i) a portion of the first floor, (ii) the entire second floor (currently occupied by Eastman) and (iii) the entire fourth floor (currently occupied by Century Link).

(4)

While not currently exercisable, Cushman & Wakefield has the option to terminate its lease if the tenant is not retained as the exclusive property manager for the 575 Maryville Property, provided that the tenant (or its affiliate) leases a minimum of 90,000 rentable square feet at the 575 Maryville Property. The 575 Maryville Mortgage Loan documents provide that for so long as Cushman & Wakefield’s termination option is in effect the 575 Maryville Borrower may not terminate the management agreement with the tenant unless and until (A)(i) the tenant has waived its rights under the its termination option or (ii) the tenant has confirmed in writing that it will not exercise its right to terminate its lease and lender has approved a qualified replacement property manager in accordance with the 575 Maryville Mortgage Loan documents. The 575 Maryville Mortgage Loan documents provide for an event of default if the 575 Maryville Borrower terminates the management agreement with the tenant without the lender’s consent. Further, the 575 Maryville Mortgage Loan is fully recourse to the 575 Maryville Borrower and the guarantors in the event that the 575 Maryville Borrower terminates the exclusive management and leasing agreement with the tenant and the tenant terminates its lease as a result thereof.

The following table presents certain information relating to the lease rollover schedule at the 575 Maryville Property:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF
MTM	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2018	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2019	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2020	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2021	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2022	1	45,807	18.1%	45,807	18.1%	$1,263,357	18.6%	$27.58
2023	1	46,086	18.2%	91,893	36.3%	$1,315,940	19.4%	$28.55
2024	0	0	0.0%	91,893	36.3%	$0	0.0%	$0.00
2025	1	16,417	6.5%	108,310	42.7%	$456,311	6.7%	$27.80
2026	0	0	0.0%	108,310	42.7%	$0	0.0%	$0.00
2027	1	137,682	54.3%	245,992	97.0%	$3,761,472	55.3%	$27.32
2028	0	0	0.0%	245,992	97.0%	$0	0.0%	$0.00
Thereafter	0	0	0.0%	245,992	97.0%	$0	0.0%	$0.00
Vacant	0	7,500	3.0%	253,492	100.0%	$0	0.0%	$0.00
Total/Weighted Average	4	253,492	100.0%			$6,797,079	100.0%	$27.63⁽³⁾

(1)

Information obtained from the underwritten rent roll.

(2)

(3)

Weighted Average Annual U/W Base Rent PSF excludes vacant space.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

The following table presents historical occupancy percentages at the 575 Maryville Property:

Historical Occupancy

12/31/2014⁽¹⁾	12/31/2015⁽¹⁾⁽²⁾	12/31/2016⁽¹⁾⁽²⁾	12/31/2017⁽¹⁾⁽²⁾	11/30/2018⁽³⁾
100.0%	81.8%	54.4%	88.5%	97.0%

(1)	Information obtained from the 575 Maryville Borrower.

(2)

The decrease in historical occupancy from 2014 to 2015 is a result of Century Link downsizing by 46,125 square feet in November 2015. This space was backfilled by Cushman & Wakefield in February 2016. The decrease in historical occupancy from 2015 to 2016 is a result of a former tenant, State Farm, vacating their 45,869 square feet of space in June 2016 and Eastman downsizing by 69,605 square feet in 2016. The State Farm space was backfilled by Cushman & Wakefield in February 2017, and Cushman & Wakefield exercised their option to take a 45,688 square foot portion of the Eastman space in November 2016. Additionally, Maryville University, backfilled a different 16,417 square foot portion of the former Eastman space in August 2017.

(3)	Information obtained from the underwritten rent roll.

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the underwritten net cash flow at the 575 Maryville Property:

Cash Flow Analysis

	2015	2016	2017	TTM 9/30/2018⁽¹⁾	U/W⁽¹⁾	%⁽²⁾	U/W $ per SF
Rents in Place	$6,479,856	$6,462,355	$6,020,095	$5,762,487	$6,627,749	94.0%	$26.15
Contractual Rent Steps⁽³⁾	0	0	0	0	169,329	2.4	0.67
Grossed Up Vacant Space	0	0	0	0	206,250	2.9	0.81
Gross Potential Rent	$6,479,856	$6,462,355	$6,020,095	$5,762,487	$7,003,328	99.3%	$27.63
Other Income	0	0	29,970	37,666	37,666	0.5	0.15
Total Recoveries	339,367	294,705	364,157	229,652	10,417	0.1	0.04
Net Rental Income	$6,819,223	$6,757,060	$6,414,222	$6,029,804	$7,051,411	100.0%	$27.82
(Vacancy & Credit Loss)⁽⁴⁾	0	0	(504,492)	(586,371)	(490,233)⁽⁴⁾	(7.0)⁽⁵⁾	(1.93)
Effective Gross Income	$6,819,223	$6,757,060	$5,909,730	$5,443,434	$6,561,178	100.0%	$25.88

Real Estate Taxes	737,560	752,050	781,723	801,714	811,261	12.4	3.20
Insurance	86,999	79,521	78,460	75,114	52,450	0.8	0.21
Management Fee	204,883	199,729	177,460	162,786	196,835	3.0	0.78
Other Operating Expenses	1,484,628	1,475,136	1,428,543	1,531,373	1,531,373	23.3	6.04
Total Operating Expenses	$2,514,070	$2,506,436	$2,466,186	$2,570,987	$2,591,920	39.5%	$10.22

Net Operating Income	$4,305,153	$4,250,624	$3,443,544	$2,872,447	$3,969,258	60.5%	$15.66
Replacement Reserves	0	0	0	0	50,698	0.8	0.20
TI/LC	0	0	0	0	493,602	7.5	1.95
Net Cash Flow	$4,305,153	$4,250,624	$3,443,544	$2,872,447	$3,424,957	52.2%	$13.51

NOI DSCR	2.51x	2.48x	2.01x	1.67x	2.31x
NCF DSCR	2.51x	2.48x	2.01x	1.67x	2.00x
NOI Debt Yield	12.3%	12.1%	9.8%	8.2%	11.3%
NCF Debt Yield	12.3%	12.1%	9.8%	8.2%	9.8%

(1)

(2)

Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(3)

Represents contractual rent steps through November 2019 and straight line rent averaging for Eastman (see “Major Tenants” table above).

(4)

Vacancy & Credit Loss represents (i) free rent adjustments for 2017 and TTM 9/30/2018 and (ii) vacancy gross up and an additional vacancy adjustment for U/W.

(5)

The underwritten economic vacancy is 7.0%. The 575 Maryville Property was 97.0% leased as of November 30, 2018.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

Appraisal.The appraiser concluded to an “as-is” appraised value of $50,280,000 as of September 6, 2018.

Environmental Matters. According to a Phase I environmental site assessment dated September 18, 2018, there was no evidence of any recognized environmental conditions at the 575 Maryville Property.

Market Overview and Competition.The 575 Maryville Property is located in Town & Country, Missouri, about fifteen miles from the St. Louis central business district and located within West St. Louis County. The 575 Maryville Property is located directly off Interstate 64, a major east/west interstate spanning from Missouri to Virginia. Interstate 64 also provides access to Interstate 170 (approximately nine miles east of the 575 Maryville Property) and Interstate 70 (approximately 20 miles west of the property). According to the appraisal, several Fortune 500 companies are located in West St. Louis County, including Energizer, RGA, and Monsanto Company, as well as one of the largest private employers in the world, Edward Jones. West St. Louis County also contains the strongest retail corridor in the St. Louis MSA, with two new outlet malls – the 310,000 square-foot Taubman Prestige Outlets and the 420,000 square-foot St. Louis Premium Outlets – located 6.7 miles and 9.8 miles to the west of the 575 Maryville Property, respectively. Nearby Chesterfield also boasts one of the longest outdoor strip malls in the country, anchored by Walmart, Home Depot, Lowe’s, Target, Best Buy, and several others.

Geographically, St. Louis is the most centralized major metropolitan area in the United States. The greater St. Louis region has a highly diversified industry structure, with net job growth in the public sector, private industries, transportation/warehousing, and retail trade. St. Louis is the ninth most affordable metro area in the United States and is also ranked in the top 6% for the highest standard of living out of the largest 53 metro areas in the United States.

The 575 Maryville Property is located in the affluent suburb of Town & Country. The 2018 median household income within a 1-mile, 3-mile and 5-mile radius was $149,609, $111,359 and $99,232, respectively.

Submarket Information – According to a third-party market research report, the 575 Maryville Property is situated within the Chesterfield/Highway 40 submarket. As of year-end 2017, the submarket reported a total inventory of 5.7 million square feet with a 4.8% vacancy rate. According to the appraisal, the subject submarket is considered an upper-tier submarket in comparison to the overall market area.

Appraiser’s Comp Set – The appraiser identified five primary competitive properties for the 575 Maryville Property totaling approximately 538,035 square feet, which reported a weighted average occupancy rate of approximately 93.9%. The appraiser concluded to net market rents for the 575 Maryville Property of $27.50 per square foot for both office and small office tenants.

The following table presents certain information relating to the appraiser’s market rent conclusion for the 575 Maryville Property:

Market Rent Summary⁽¹⁾

	Office	Office Small
Market Rent (PSF)	$27.50	$27.50
Average Lease Term (Years)	10	7
Lease Type (Reimbursements)	Future Base Year	Future Base Year
Rent Increase Projection	2.5% per annum	2.5% per annum

(1)

Information obtained from the appraisal.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

The table below presents certain information relating to comparable sales for the 575 Maryville Property identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Sale Price	Sale Price (PSF)
Maryville Center Buildings	St. Louis, MO	252,378	Apr-18	$48,456,576	$192.00
Westview Place	Creve Coeur, MO	125,645	Dec-17	$17,850,000	$142.07
One Chesterfield Place	Chesterfield, MO	143,473	Dec-16	$27,500,000	$191.67
Woods Mill Pointe	Town & Country, MO	79,131	Apr-16	$12,763,000	$161.29
Maryville Office Building	Town & Country, MO	75,397	Sep-14	$14,200,000	$188.34

(1)	Information obtained from the appraisal.

The table below presents certain information relating to five comparable office properties to the 575 Maryville Property identified by the appraiser:

Competitive Set⁽¹⁾

	575 Maryville (Subject)	The Fives @ Maryville	530 Building	520 Building	540 Building	Woods Mill Pointe
Location	Town & Country, MO	St. Louis, MO	Town & County, MO	St. Louis, MO	Town & Country, MO	Town & Country, MO
Distance from Subject	--	0.1 miles	0.2 miles	0.2 miles	0.1 miles	0.8 miles
Property Type	Office/Suburban	Office/Suburban	Office/Suburban	Office/Suburban	Office/Suburban	Office/Suburban
Year Built/Renovated	1999/NAP	2001/NAP	1990/NAP	1999/NAP	1990/2001	1989/NAP
Total GLA	253,492 SF	127,082 SF	107,962 SF	115,453 SF	107,972 SF	79,566 SF
Total Occupancy	97.0%	92.0%	98.0%	100.0%	81.0%	100.0%

(1)

Information obtained from the appraisal and the underwritten rent roll.

The following table presents certain information relating to five comparable leases to those at the 575 Maryville Property:

Comparable Leases⁽¹⁾

Property Name/Location	Year Built/ Renovated	Total GLA (SF)	Distance from Subject	Occupancy	Lease Term	Tenant Size	Annual Base Rent PSF
The Fives @ Maryville 555 Maryville Centre Drive St. Louis, MO	2001/NAP	127,082	0.1 miles	92.0%	4.3 Yrs 7.7 Yrs 8.1 Yrs	19,292 SF 9,773 SF 24,546 SF	$30.00 $29.50 $29.50
540 Building 540 Maryville Centre Drive, Town & Country, MO	1990/2001	107,972	0.1 miles	81.0%	3.0 Yrs	7,456 SF	$26.00
530 Building 530 Maryville Centre Drive, Town & Country, MO	1990/NAP	107,962	0.2 miles	98.0%	6.0 Yrs	7,233 SF	$27.67
520 Building 520 Maryville Centre Drive, St. Louis, MO	1999/NAP	115,453	0.2 miles	100.0%	6.4 Yrs 10.3 Yrs 5.0 Yrs	22,559 SF 11,673 SF 5,143 SF	$27.50 $28.75 $20.00
Woods Mill Pointe 425 S. Woods Mill Road, Town & Country, MO	1989/NAP	79,566	0.8 miles	100.0%	8.2 Yrs	57,025 SF	$24.60

(1)	Information obtained from the appraisal.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $69,633 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $69,633).

Insurance – Ongoing monthly insurance reserves, equaling one-twelfth of the insurance premiums that the lender estimates will be payable during the next twelve months, are not currently required and will not be required so long as the 575 Maryville Borrower maintains a blanket policy acceptable to the lender.

Replacement Reserves – The loan documents require an upfront replacement reserve of $200,000 to cover the landlord’s share of any common area and lobby improvements pursuant to an agreement with Cushman & Wakefield. The loan documents require ongoing monthly replacement reserves of $4,301 for replacements and repairs required to be made to the property during the calendar year.

TI/LC Reserve –The loan documents require an ongoing monthly TI/LC reserve of $32,256.

Existing TI/LC Reserves – The loan documents require an upfront reserve of $1,710,919 for existing TI/LCs related to Cushman & Wakefield ($1,560,919) and Eastman ($150,000).

Gap Rent Reserve – The loan documents require an upfront reserve of $344,312 for gap rent related to Cushman & Wakefield.

Common Charges Reserve –The loan documents require an upfront common charges reserve of $45,730 and ongoing monthly common charges reserves in an amount equal to one-twelfth of the common charges that the lender estimates will be payable during the next twelve months (initially $3,518).

Lockbox and Cash Management.The 575 Maryville Mortgage Loan documents require a hard lockbox with springing cash management. The borrower was required at origination of the 575 Maryville Mortgage Loan to deliver written instructions to tenants directing them to deposit all rents payable under such leases directly into a lender-controlled lockbox account. The 575 Maryville Mortgage Loan documents require that all rents received by the 575 Maryville Borrower or the property manager be deposited into the lockbox account within one business day of receipt. Funds in the lockbox account, absent the occurrence and continuance of a Triggering Event (as defined below), are required to be transferred daily to a borrower operating account. Upon the first occurrence of a Triggering Event, the 575 Maryville Borrower is required to establish a cash management account under sole control of the lender, to which during a Triggering Event, all amounts in the lockbox account are required to be automatically transferred daily for the payment, among other things, of the debt service, monthly escrows, default interest and late payment charges. During a Cushman Trigger Event (as defined below), any remaining funds after such disbursements are required to be deposited to the Cushman & Wakefield rollover reserve account until such account equals or exceeds $5,507,280. Any remaining funds after such disbursements are required to be, (i) during a Low DSCR Period (defined below), distributed to an excess cash reserve account, and otherwise, (ii) to the 575 Maryville Borrower if no event of default has occurred and is continuing.

A “Triggering Event” will commence upon the earliest to occur of the following:

(i)

an event of default under the 575 Maryville Mortgage Loan documents;

(ii)

the net cash flow debt service coverage ratio for the 575 Maryville debt falling below 1.20x based on a thirty-year amortization schedule (approximately 1.55x based on the interest only debt service) ( a “Low DSCR Period”); or

(iii)

a Cushman Trigger Event.

A Triggering Event will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default;

●

with regard to clause (ii) above, the net cash flow debt service coverage ratio for the 575 Maryville debt being equal to or greater than 1.25x based on a 30-year amortization schedule (approximately 1.61x based on the interest only debt service payment) for two consecutive calendar quarters; or

●

with regard to clause (iii) above, a Cushman Re-Tenanting Event (as defined below).

A “Cushman Trigger Event” will commence upon the occurrence of:

(i)

the earliest to occur of (a) January 31, 2026 (18 months prior to Cushman & Wakefield’s lease expiration date), (b) Cushman & Wakefield giving notice that it intends to terminate its lease pursuant to the terms of the Cushman & Wakefield lease, or (c) Cushman & Wakefield giving notice to the 575 Maryville Borrower in writing of its intent not to renew its lease pursuant to the terms of its lease, provided that in each case of (a), (b), and (c) a Cushman Re-Tenanting Event (as defined below) has not occurred;

(ii)

Cushman & Wakefield abandoning its leased space of 137,682 square feet;

(iii)

Cushman & Wakefield filing for bankruptcy, insolvency, or reorganization;

(iv)

the Cushman & Wakefield lease has in fact been terminated provided that a Cushman Re-Tenanting Event has not then occurred; or

(v)

Cushman & Wakefield becomes delinquent under the payment obligations of its lease.

Office - Suburban	Loan #5	Cut-off Date Balance:	$35,000,000
575 Maryville Centre Drive	575 Maryville	Cut-off Date LTV:	69.6%
Town & Country, MO 63141		U/W NCF DSCR:	2.00x
		U/W NOI Debt Yield:	11.3%

A “Cushman Re-Tenanting Event” shall occur when the 575 Maryville Borrower has delivered to the lender:

(i)

evidence reasonably satisfactory to the lender that (w) Cushman & Wakefield has given notice of renewal under the terms of its lease; (x) pursuant to a lease amendment or new lease, Cushman & Wakefield has agreed to remain in possession of its leased space at a rental rate of not less than $27.50 per square foot and otherwise constitutes a Qualified Replacement Lease (as defined below); (y) the entire Cushman & Wakefield space has been re-tenanted under one or more Qualified Replacement Leases; or (z) the Cushman & Wakefield lease has been affirmed by Cushman & Wakefield in a bankruptcy proceeding; and

(ii)

tenant estoppel(s) reasonably satisfactory to the lender.

A “Qualified Replacement Lease” shall mean a lease (i) with a term no less than five years; (ii) with a tenant reasonably acceptable to the lender; (iii) containing rental rates of at least $27.50 per square foot; (iv) that does not have a material adverse effect on the use, value, or operation of the 575 Maryville Property; (v) that is an arms-length transaction with an independent third party tenant; (vi) is in compliance with the 575 Maryville Mortgage Loan documents; (vii) that is subject to and subordinate to the lien of the security instrument securing the 575 Maryville Mortgage Loan and the tenant agrees to attorn to lender; and (viii) that is otherwise on market terms and is reasonably acceptable to lender.

Property Management. The 575 Maryville Property is managed Cushman & Wakefield U.S., Inc., a subsidiary of Cushman & Wakefield.

Partial Release. Not permitted.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.None.

Ground Lease. None.

Terrorism Insurance.The 575 Maryville Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the 575 Maryville Borrower provides coverage for terrorism in an amount equal to the full replacement cost of the 575 Maryville Property, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a 365-day extended period of indemnity that covers acts of terrorism. Provided that the TRIPRA is no longer in effect and such policies contain an exclusion for acts of terrorism, the 575 Maryville Borrower will obtain, to the extent available, a stand-alone policy that provides the same coverage as the policies would have if such exclusion did not exist.

No. 6 – Grapevine Station

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Wells Fargo Bank, National Association			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Multifamily – Garden
Original Principal Balance:		$34,000,000			Location:	Grapevine, TX
Cut-off Date Balance:		$34,000,000			Size:	273 Units
% of Initial Pool Balance:		4.4%			Cut-off Date Balance Per Unit:	$124,542
Loan Purpose:		Acquisition			Maturity Date Balance Per Unit:	$124,542
					Year Built/Renovated:	2013/NAP
Borrower Sponsor:		Myron a/k/a Michael Blackman; Michel D. Hibbert			Title Vesting:	Fee
Guarantors:		⁽¹⁾			Property Manager:	SunRidge Management Group, Inc.
Mortgage Rate:		5.1500%			Current Occupancy (As of):	93.8% (11/15/2018)
Note Date:		January 7, 2019			YE 2017 Occupancy:	95.0%
Seasoning:		2 months			YE 2016 Occupancy:	97.0%
Maturity Date:		January 11, 2029			YE 2015 Occupancy⁽³⁾:	98.0%
IO Period:		120 months			YE 2014 Occupancy⁽³⁾:	83.0%
Loan Term (Original):		120 months			Appraised Value:	$53,000,000
Amortization Term (Original):		NAP			Appraised Value Per Unit:	$194,139
Loan Amortization Type:		Interest-only, Balloon			Appraisal Valuation Date:	November 8, 2018
Call Protection:		L(26),D(90),O(4)
Lockbox Type:		Soft/Springing Cash Management			Underwriting and Financial Information
Additional Debt:		None			TTM NOI (10/31/2018):	$2,577,089
Additional Debt Type (Balance):		NAP			YE 2017 NOI:	$2,601,886
					YE 2016 NOI:	$2,534,347
					YE 2015 NOI⁽⁴⁾:	NAV
					U/W Revenues:	$4,763,775
					U/W Expenses:	$2,116,301
					U/W NOI:	$2,647,474
					U/W NCF:	$2,579,224
Escrows and Reserves⁽²⁾					U/W DSCR based on NOI/NCF:	1.49x / 1.45x
	Initial		Monthly	Cap	U/W Debt Yield based on NOI/NCF:	7.8% / 7.6%
Taxes	$92,787		$92,787	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	7.8% / 7.6%
Insurance	$0		Springing	NAP	Cut-off Date LTV Ratio:	64.2%
Replacement Reserve	$0		$5,688	NAP	LTV Ratio at Maturity:	64.2%

Sources and Uses
Sources			Uses
Original loan amount	$34,000,000	63.5%	Purchase price	$52,000,000	97.2%
Borrower’s equity	19,523,581	36.5	Upfront reserves	92,787	0.2
			Closing costs	1,430,794	2.7
Total Sources	$53,523,581	100.0%	Total Uses	$53,523,581	100.0%

(1)

The Guarantors of the Grapevine Station Mortgage Loan (as defined below) are Myron a/k/a Michael Blackman, individually and as trustee of the Survivor’s Trust under the Myron and Roslyn Blackman Family Trust, Michel Daniel Hibbert as trustee of the Hibbert Living Trust and Michel D. Hibbert.

(2)

See “Escrows” section below.

(3)

The increase in Occupancy from YE 2014 to YE 2015 is a result of leasing commencing in early 2014 and subsequent occupancy stabilization.

(4)

Historical operating statements prior to 2016 are not available, as the Grapevine Station Property was recently acquired and such information was not made available by the prior owner.

The Mortgage Loan. The mortgage loan (“Grapevine Station Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in a 273-unit multifamily garden style property located in Grapevine, Texas (the “Grapevine Station Property”).

Multifamily – Garden	Loan #6	Cut-off Date Balance:	$34,000,000
1022 Texan Trail	Grapevine Station	Cut-off Date LTV:	64.2%
Grapevine, TX 76051		U/W NCF DSCR:	1.45x
		U/W NOI Debt Yield:	7.8%

The Borrower and Borrower Sponsor.The borrower is BH Grapevine Station, LLC, a Delaware limited liability company and single purpose entity with one independent director. Legal counsel to the borrower delivered a non-consolidation opinion in connection with the origination of the Grapevine Station Mortgage Loan. The borrower sponsors are Myron a/k/a Michael Blackman and Michel D. Hibbert. The nonrecourse carve-out guarantors of the Grapevine Station Mortgage Loan are Myron a/k/a Michael Blackman, individually and as trustee of the Survivor’s Trust under the Myron and Roslyn Blackman Family Trust, Michel Daniel Hibbert as trustee of the Hibbert Living Trust and Michel D. Hibbert.

Mr. Blackman has been investing in multifamily real estate since 1986 and has been investing in apartment buildings in the Dallas, Texas area since 2005. Mr. Blackman currently owns approximately 512 apartment units plus an approximately 12,000 square foot office building, a 14,700 square foot Walgreens, an approximately 60,000 square foot office and retail complex and 2 apartment buildings under construction totaling approximately 92 units. Mr. Hibbert has been involved in real estate since 1985 as a broker specializing in the sale of apartment properties, development land and commercial-investment properties. Mr. Hibbert currently owns 13 multifamily properties in California and Texas, totaling approximately 668 units.

The Property. The Grapevine Station Property is a 273-unit, class A multifamily property comprising nine, three-story buildings located in Grapevine, Texas. Constructed in 2013, the Grapevine Station Property comprises 42 studio units, 164 one-bedroom units, 55 two-bedroom units, and 12 two-bedroom townhouse units. Common area amenities at the Grapevine Station Property include an outdoor swimming pool with a sundeck, a community courtyard, a fitness center, picnic areas with BBQ grills, a dog park and a club room. Unit amenities include nine-foot ceiling heights, stainless steel appliances, built-in microwaves, walk-in closets, private patio or balcony, granite countertops and garden tubs. As of November 15, 2018, the Grapevine Station Property was 93.8% occupied and has averaged 94.8% occupancy since 2015.

The Grapevine Station Property is situated on a 10.2-acre site with 472 total parking spaces (surface, covered and garage) resulting in a parking ratio of 1.7 spaces per unit. The garage and carport parking is rented to residents on a monthly basis with rental rates ranging from $135-250 per month for various one- and two-car garage spaces and $35-55 per month for carport spaces.

The following table presents certain information relating to the unit mix and the appraiser’s market rent conclusion of the Grapevine Station Property:

Unit Mix Summary⁽¹⁾

Unit Type	Total No. of Units	% of Total Units	Average Unit Size (SF)	Average Contract Monthly Rent per Unit	Market Monthly Rent per Unit
Studio / 1 Bathroom	42	15.4%	608	$1,227	$1,250
1 Bedroom / 1 Bathroom	146	53.5%	756	$1,339	$1,354
1 Bedroom / 1 Bathroom Flex	18	6.6%	829	$1,530	$1,551
2 Bedroom / 2 Bathroom	55	20.1%	1,100	$1,766	$1,802
2 Bedroom / 2.5 Bathroom Town House	12	4.4%	1,188	$2,082	$2,199
Total/Weighted Average	273	100.0%	826	$1,453	$1,478

(1)	Information obtained from the appraisal.

The following table presents historical occupancy percentages at the Grapevine Station Property:

Historical Occupancy

12/31/2014⁽¹⁾⁽²⁾	12/31/2015⁽¹⁾⁽²⁾	12/31/2016⁽¹⁾	12/31/2017⁽¹⁾	11/15/2018⁽³⁾
83.0%	98.0%	97.0%	95.0%	93.8%

(1)	Information obtained from the borrower.

(2)	The Grapevine Station Property was built in 2013. The increase in Occupancy from 12/31/2014 to 12/31/2015 is a result of leasing commencing in early 2014 and subsequent occupancy stabilization.

(3)	Information obtained from the underwritten rent roll.

Multifamily – Garden	Loan #6	Cut-off Date Balance:	$34,000,000
1022 Texan Trail	Grapevine Station	Cut-off Date LTV:	64.2%
Grapevine, TX 76051		U/W NCF DSCR:	1.45x
		U/W NOI Debt Yield:	7.8%

Cash Flow Analysis⁽¹⁾

	2016	2017	TTM 10/31/2018	U/W	%⁽²⁾	U/W $ per Unit
Base Rent	$4,225,047	$4,381,047	$4,352,878	$4,512,432	85.9%	$16,529
Grossed Up Vacant Space	0	0	0	330,444	6.3	1,210
Gross Potential Rent	$4,225,047	$4,381,047	$4,352,878	$4,842,876	92.2%	$17,739
Parking Income	45,305	42,768	42,462	42,462	0.8	156
Other Income⁽³⁾	334,468	324,296	368,435	368,435	7.0	1,350
Net Rental Income	$4,604,820	$4,748,111	$4,763,775	$5,253,773	100.0%	$19,245
Less Vacancy & Credit Loss	0	0	0	(489,998)⁽⁴⁾	(10.1)	(1,795)
Effective Gross Income	$4,604,820	$4,748,111	$4,763,775	$4,763,775	90.7%	$17,450

Real Estate Taxes	898,907	961,068	970,075	1,003,407	21.1	3,675
Insurance	147,984	106,243	87,696	135,956	2.9	498
Management Fee	252,009	256,984	301,598	190,551	4.0	698
Other Operating Expenses	771,573	821,930	827,318	786,388	16.5	2,881
Total Operating Expenses	$2,070,473	$2,146,225	$2,186,686	$2,116,301	44.4%	$7,752

Net Operating Income	$2,534,347	$2,601,886	$2,577,089	$2,647,474	55.6%	$9,698
Capital Expenditures	0	0	0	68,250	1.4	250
Net Cash Flow	$2,534,347	$2,601,886	$2,577,089	$2,579,224	54.1%	$9,448

NOI DSCR	1.42x	1.46x	1.45x	1.49x
NCF DSCR	1.42x	1.46x	1.45x	1.45x
NOI DY	7.5%	7.7%	7.6%	7.8%
NCF DY	7.5%	7.7%	7.6%	7.6%

(1)	Historical operating statements prior to 2016 are not available, as the Grapevine Station Property was recently acquired and such information was not made available by the prior owner.

(2)	Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(3)	Other Income includes storage income, ratio utility billing system and other miscellaneous items such as pet fees and leases less than 12 months.

(4)	The underwritten economic vacancy is 10.1%. The Grapevine Station Property was 93.8% physically occupied and 93.1% economically occupied as of November 15, 2018.

Appraisal.The appraiser concluded to an “as-is” appraised value of $53,000,000 as of November 8, 2018.

Environmental Matters. According to a Phase I environmental assessment dated November 15, 2018, there was no evidence of any recognized environmental conditions at the Grapevine Station Property.

Market Overview and Competition.The Grapevine Station Property is located in Grapevine, Texas, approximately 22.5 miles northwest of the Dallas central business district and 24.1 miles northeast of the Fort Worth central business district. The Grapevine Station Property is situated immediately adjacent to State Route 26 and State Route 114, approximately 2.9 miles southwest of Interstate 635 and 7.9 miles southwest of Interstate 35E. The intersection of State Route 26 and Ruth Wall Road is approximately 0.3 miles north of the Grapevine Station Property and, according to a third party market research provider, had a daily traffic count of approximately 31,810 vehicles as of 2017. According to a third party market research provider, the area within a 1-mile radius of the Grapevine Station Property grew by approximately 29.0% between 2010 and 2018. A population growth of approximately 9.7% is projected in the same area between 2018 and 2023.

The Grapevine Station Property is located approximately 6.7 miles northwest of Cypress Waters, a 1,000-acre master-planned development centered around a 362-acre lake. The Grapevine Station Property is also located approximately 4.1 miles northwest of Dallas Fort Worth International Airport, the 4th busiest airport in the world by total take-off and landing in 2017, per third-party news and market research providers. Grapevine Mills, a 1.5 million square foot Simon-owned regional mall is located approximately 2.4 miles northeast of the Grapevine Station Property. Grapevine Mills features approximately 180 stores including Neiman Marcus Last Call, Saks Fifth Avenue OFF 5TH, H&M, Forever 21, Nike Factory Store, Coach Factory, Under Armour, Disney Outlet and J Crew. Grapevine Mills also contains a 30-screen AMC Dine-In Theatre, LEGOLAND Discovery Center, Sea Life Aquarium, an escape room venue, bowling lanes and Rainforest Café.

According to a third party market report, the estimated 2018 population within a three- and five-mile radius of the Grapevine Station Property was 27,939 and 108,655, respectively; and the estimated 2018 average household income within the same radii was $93,068 and $135,854, respectively.

Submarket Information – According to a third-party market research report, the Grapevine Station Property is situated within the Grapevine submarket. As of the third quarter of 2018, the submarket reported a total inventory of 8,699 units with a 4.0% vacancy rate.

Multifamily – Garden	Loan #6	Cut-off Date Balance:	$34,000,000
1022 Texan Trail	Grapevine Station	Cut-off Date LTV:	64.2%
Grapevine, TX 76051		U/W NCF DSCR:	1.45x
		U/W NOI Debt Yield:	7.8%

Appraiser’s Comp Set – The appraiser identified five primary competitive properties for the Grapevine Station Property totaling 1,406 units, which reported an average occupancy rate of approximately 96.2%. The appraiser concluded to monthly market rents per unit ranging from $1,250 to $2,199 (see “Unit Mix Summary” table in “The Property” section above).

The following table presents certain information relating to comparable multifamily properties for the Grapevine Station Property:

Competitive Set⁽¹⁾

	Grapevine Station (Subject)	Enclave at Grapevine	Montelena	Resort at 925 Main	Stoneledge	Wildwood Creek
Location	Grapevine, TX	Grapevine, TX	Grapevine, TX	Grapevine, TX	Grapevine, TX	Grapevine, TX
Distance to Subject	--	2.2 miles	0.7 miles	0.8 miles	0.5 miles	0.6 miles
Property Type	Garden	Garden	Garden	Mid-Rise	Garden	Garden
Year Built/Renovated	2013/NAP	2013/NAP	1997/NAP	2008/NAP	2012/NAP	2001/NAP
Number of Units	273	243	256	251	312	344
Average Monthly Rent (per unit)
Studio	$1,227⁽²⁾	NAP	NAP	NAP	NAP	NAP
1 Bedroom / 1 Bathroom	$1,360⁽²⁾	$1,305	$1,165	$1,525	$1,260	$1,152
2 Bedroom / 2 Bathroom	$1,766⁽²⁾	$1,365	$1,487	$2,150	$1,640	$1,634
2 Bedroom / 2.5 Bathroom TH	$2,082⁽²⁾	$2,325	NAP	NAP	NAP	NAP
Occupancy	93.8%	98.0%	96.0%	94.0%	97.0%	96.0%

(1)	Information obtained from the appraisal and underwritten rent roll.

(2)	See “Unit Mix Summary” above for information related to the Grapevine Station Property.

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $92,787 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $92,787).

Insurance – The loan documents do not require ongoing monthly escrows for insurance premiums as long as (i) no event of default has occurred and is continuing, (ii) the borrower or borrower affiliate provides the lender with evidence that the Grapevine Station Property’s insurance coverage is included in a blanket policy and such policy is in full force and effect and (iii) the borrower pays all applicable insurance premiums and provides the lender with paid receipts no later than ten business days prior to the expiration of the policies.

Replacement Reserve – The loan documents require ongoing monthly replacement reserves of $5,688, which the lender may require the borrower to increase (not more than once per year) if the lender reasonably determines such increase is necessary to maintain the proper operation of the Grapevine Station Property.

Lockbox and Cash Management.The Grapevine Station Mortgage Loan is structured with a soft lockbox, which is already in-place, and springing cash management. Prior to the occurrence of a Cash Trap Event Period (as defined below), the loan documents require that the borrower or the property manager deposit all rents into the lockbox account within one business day of receipt and all funds in the lockbox account are required to be distributed to the borrower. During a Cash Trap Event Period, funds in the lockbox account are required to be swept to a lender-controlled cash management account and all excess funds are required to be swept to an excess cash flow subaccount controlled by the lender.

A “Cash Trap Event Period” will commence upon the earlier of the following:

(i)

the occurrence and continuance of an event of default; or

(ii)

the net cash flow debt service coverage ratio falling below 1.20x at the end of any calendar quarter.

A Cash Trap Event Period will end upon the occurrence of the following:

●

with regard to clause (i), the cure of such event of default; or

●

with regard to clause (ii), the net cash flow debt service coverage ratio being equal to or greater than 1.25x for three consecutive calendar months.

Property Management.The Grapevine Station Property is managed by SunRidge Management Group, Inc. (“SunRidge”), a full-service real estate management company. The company was formed in 1990 and has grown to a corporate staff of 24 and approximately 350 on-site associates. SunRidge currently manages approximately 100 properties across 12 states throughout the Southern and Western United States.

Partial Release.Not permitted

Multifamily – Garden	Loan #6	Cut-off Date Balance:	$34,000,000
1022 Texan Trail	Grapevine Station	Cut-off Date LTV:	64.2%
Grapevine, TX 76051		U/W NCF DSCR:	1.45x
		U/W NOI Debt Yield:	7.8%

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease.None.

Terrorism Insurance.Grapevine Station Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provide coverage for terrorism in an amount equal to the full replacement cost of Grapevine Station Property, as well as business interruption insurance covering no less than the 12-month period following the occurrence of a casualty event, together with a six-month extended period of indemnity.

No. 7 – Nostrand Avenue Shopping Center

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Barclays Capital Real Estate Inc.			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Retail – Anchored
Original Principal Balance:		$26,775,000			Location:	Brooklyn, NY
Cut-off Date Balance:		$26,775,000			Size:	80,991 SF
% of Initial Pool Balance:		3.5%			Cut-off Date Balance Per SF:	$330.59
Loan Purpose:		Acquisition			Maturity Date Balance Per SF:	$330.59
Borrower Sponsors:		Ben Ashkenazy; Ashkenazy Acquisition Corporation			Year Built/Renovated:	1960/NAP
Guarantor:		Ben Ashkenazy			Title Vesting:	Fee
Mortgage Rate:		5.1300%			Property Manager:	Self-managed
Note Date:		December 21, 2018			Current Occupancy (As of):	92.7% (12/12/2018)
Seasoning:		2 months			YE 2017 Occupancy:	90.0%
Maturity Date:		January 6, 2029			YE 2016 Occupancy:	91.0%
IO Period:		120 months			YE 2015 Occupancy⁽²⁾:	NAV
Loan Term (Original):		120 months			YE 2014 Occupancy⁽²⁾:	NAV
Amortization Term (Original):		NAP			Appraised Value:	$40,000,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per SF:	$493.88
Call Protection:		L(26),D(90),O(4)			Appraisal Valuation Date:	November 16, 2018
Lockbox Type:		Hard/Springing Cash Management
Additional Debt:		None
Additional Debt Type (Balance):		NAP
					Underwriting and Financial Information
					TTM NOI⁽³⁾:	NAV
					YE 2017 NOI⁽³⁾:	NAV
					YE 2016 NOI⁽³⁾:	NAV
Escrows and Reserves⁽¹⁾					YE 2015 NOI⁽³⁾:	NAV
	Initial		Monthly	Cap	U/W Revenues:	$3,341,704
Taxes	$62,569		$62,569	NAP	U/W Expenses:	$1,162,759
Insurance	$0		Springing	NAP	U/W NOI:	$2,178,945
Replacement Reserves	$0		$1,012	$60,743	U/W NCF:	$2,035,314
TI/LC Reserve	$0		$6,749	$242,973	U/W DSCR based on NOI/NCF:	1.56x / 1.46x
Free Rent Reserve	$149,208		$0	NAP	U/W Debt Yield based on NOI/NCF:	8.1% / 7.6%
Existing TI Reserve	$83,165		$0	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	8.1% / 7.6%
Tenant Repair Reserve	$12,800		$0	NAP	Cut-off Date LTV Ratio:	66.9%
Immediate Repairs Reserve	$4,688		$0	NAP	LTV Ratio at Maturity:	66.9%

Sources and Uses
Sources			Uses
Original loan amount	$26,775,000	67.2%	Purchase price	$38,250,000	96.0%
Borrower equity	13,074,769	32.8	Purchase Credits⁽⁴⁾	(245,173)	(0.6)
			Upfront reserves	312,430	0.8
			Closing costs	1,532,512	3.8
Total Sources	$39,849,769	100.0%	Total Uses	$39,849,769	100.0%

(1)

See “Escrows” section below.

(2)

The Nostrand Avenue Shopping Center Property (as defined below) was acquired in 2018, and the prior owner did not provide historical occupancy figures earlier than 2016. Aldi and Blink Fitness backfilled the prior Pathmark tenant’s space in 2013. With the exception of Lucky Enterprises, all remaining tenants have been in occupancy since 2007 or earlier.

(3)

The prior owner did not provide complete historical financial information to the Nostrand Avenue Shopping Center Borrower (as defined below). However, the 2017 expense figures were provided, totaling $1,029,778.

(4)

Purchase Credits include (i) outstanding tenant improvement obligations for Blink Fitness ($83,165), (ii) outstanding gap rent for Rite Aid ($149,208), and (iii) a roof credit for Rite Aid ($12,800). Such Purchase Credits were reserved for by the lender. See “Escrows” section below.

The Mortgage Loan. The mortgage loan (the “Nostrand Avenue Shopping Center Mortgage Loan”) is evidenced by a single promissory note with an original principal balance of $26,775,000 and outstanding balance as of the Cut-off Date of $26,775,000 secured by a first mortgage encumbering the fee interest in an anchored retail shopping center located in Brooklyn, New York (the “Nostrand Avenue Shopping Center Property”).

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

The Borrowers and Borrower Sponsors.The borrowers comprise two tenants-in-common: Nostrand Property Owner LLC and Leonard Replacement Owner LLC (collectively, the “Nostrand Avenue Shopping Center Borrower”), each a Delaware limited liability company and single purpose entity with one independent director. Each tenant-in-common entity is majority-owned (either individually or as the beneficial interest holder of a trust) and controlled by Ben Ashkenazy, one of the borrower sponsors. Legal counsel to the Nostrand Avenue Shopping Center Borrower delivered a non-consolidation opinion in connection with the origination of the Nostrand Avenue Shopping Center Mortgage Loan. The nonrecourse carve-out guarantor of the Nostrand Avenue Shopping Center Mortgage Loan is Ben Ashkenazy.

The borrower sponsors are Ben Ashkenazy and Ashkenazy Acquisition Corporation. Ben Ashkenazy is the chief executive officer and chairman of Ashkenazy Acquisition Corporation. Founded in 1987, Ashkenazy Acquisition Corporation is a private investment firm focusing on retail, hotel and office assets. Ashkenazy Acquisition Corporation has acquired over 15 million square feet in retail, hospitality, office, and residential properties throughout the United States, Canada and England. Ashkenazy Acquisition Corporation’s portfolio contains more than 100 buildings valued at approximately $12.0 billion. Ashkenazy Acquisition Corporation has had five previous loans secured by unrelated properties that have been part of a workout. For more details, please see “Description of the Mortgage Pool – Loan Purpose; Default History, Bankruptcy Issues and Other Proceedings”in the Preliminary Prospectus.

The Property.The Nostrand Avenue Shopping Center Property consists of 80,991 square feet of grocery-anchored retail space situated on 3.1 acres of land in Brooklyn, New York. The Nostrand Avenue Shopping Center Property is comprised of three single-story retail buildings located on an entire city block bound by Nostrand Avenue, Avenues Y and Z, and Haring Place in the densely-populated Sheepshead Bay neighborhood of Brooklyn. The Nostrand Avenue Shopping Center Property features 700 feet of frontage along Nostrand Avenue, one of Sheepshead Bay’s most highly trafficked retail corridors. There are 200 parking spaces (resulting in a ratio of 2.5 spaces per 1,000 square feet) at the Nostrand Avenue Shopping Center Property, including rooftop parking above Aldi accessible via a ramp in the parking lot. As of December 12, 2018, the Nostrand Avenue Shopping Center Property was 92.7% leased to ten tenants. Seven of the ten tenants (49.1% of underwritten base rent) have been at the Nostrand Avenue Shopping Center Property for over ten years.

Major Tenants.

Largest Tenant: Aldi (16.7% of underwritten base rent; 7/31/2023 lease expiration) –AI Fund II, LLC (“Aldi”) is a grocery chain that operates more than 1,600 grocery stores in 35 states. Aldi’s inventory includes items that are more than 90.0% Aldi-exclusive brands, allowing the chain to provide customers with high quality products without the hidden costs of national brands. According to the tenant, more than 40 million customers each month benefit from Aldi’s streamlined inventory approach, bringing shoppers the highest quality products at the lowest possible prices. In 2017, Aldi grew its sales by $1.1 billion to $7.9 billion, a 16.2% increase. Aldi is currently undertaking a five-year, $5.3 billion growth plan, aiming to open 800 new stores and become the third largest grocer in the United States behind Kroger and Walmart. The Nostrand Avenue Shopping Center Property serves as one of only two Aldi locations in Brooklyn.

2^ndLargest Tenant: Blink Fitness (21.9% of underwritten base rent; 6/30/2029 lease expiration) –Founded in 2011, Blink Fitness operates fitness clubs as a subsidiary of Equinox Holdings, Inc. Blink Fitness is a premium quality, value-based fitness brand with more than 90 locations open or in development throughout New York, New Jersey, Pennsylvania and California. Each Blink Fitness gym offers memberships priced between $15 and $26 per month based on location and access to other locations. The location at the Nostrand Avenue Shopping Center Property offers one-on-one personal training and provides over 80 pieces of cardio equipment, over 50 pieces of strength equipment, a weight training and functional area..

3^rdLargest Tenant: Rite-Aid (21.2% of underwritten base rent; 6/30/2024 lease expiration) –Rite Aid of NY, Inc. (“Rite Aid”) (NYSE: RAD) operates drug stores that sell prescription drugs, as well as over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, convenience foods, greeting cards, and seasonal merchandise. It is the largest drug store chain on the east coast and the third largest in the United States. As of March 3, 2018, Rite Aid operated 2,550 stores in 19 states and the District of Columbia. Of the largest three tenants at the Nostrand Avenue Shopping Center Property, Rite-Aid is the only tenant required to report sales. In 2017, Rite-Aid had sales of $764 per square foot, 38.4% above the 2017 national sales average of all Rite-Aid locations. Rite-Aid has been located at the Nostrand Avenue Shopping Center Property since 1999 after it took over a local pharmacy’s lease that had been located at the property since 1959.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

The following table presents certain information relating to the tenancy at the Nostrand Avenue Shopping Center Property:

Major Tenants

Tenant Name	Credit Rating (Fitch/Moody’s/ S&P)⁽¹⁾	Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽²⁾	Annual U/W Base Rent⁽²⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Major Tenants
Aldi	NR/NR/NR	18,481	22.8%	$25.50	$471,266	16.7%	7/31/2023	4, 5-year	N
Blink Fitness	NR/B2/B	16,633	20.5%	$37.03	$615,920	21.9%	6/30/2029	1, 5-year	N
Rite Aid⁽³⁾	B/B2/B	12,434	15.4%	$48.00	$596,832	21.2%	6/30/2024	1, 5-year	N
Party City	NR/Ba3/B+	10,000	12.3%	$35.00	$350,000	12.4%	6/30/2022	N	N
Lucky Enterprises	NR/NR/NR	9,088	11.2%	$38.11	$346,344	12.3%	7/31/2028	1, 5-year	N
Total Major Tenants		66,636	82.3%	$35.72	$2,380,361	84.6%

Non-Major Tenant		8,476	10.5%	$51.31	$434,920	15.4%

Occupied Collateral Total		75,112	92.7%	$37.48	$2,815,281	100.0%

Vacant Space		5,879	7.3%

Collateral Total		80,991	100.0%

(1)

Certain ratings are those of the parent company whether or not the parent company guarantees the lease.

(2)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through December 2019 of $166,655.

(3)

Rite Aid has a three-month free rent period starting July 1, 2019. All free rent was reserved at closing ($149,208).

The following table presents certain information relating to the lease rollover schedule at the Nostrand Avenue Shopping Center Property:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF
MTM	0	0	0.0%	0	0.0%	$0	0.0%	$0.00
2019	1	871	1.1%	871	1.1%	$43,506	1.5%	$49.95
2020	1	1,875	2.3%	2,746	3.4%	$51,000	1.8%	$27.20
2021	1	1,125	1.4%	3,871	4.8%	$64,159	2.3%	$57.03
2022	2	13,600	16.8%	17,471	21.6%	$578,015	20.5%	$42.50
2023	2	19,486	24.1%	36,957	45.6%	$519,506	18.5%	$26.66
2024	1	12,434	15.4%	49,391	61.0%	$596,832	21.2%	$48.00
2025	0	0	0.0%	49,391	61.0%	$0	0.0%	$0.00
2026	0	0	0.0%	49,391	61.0%	$0	0.0%	$0.00
2027	0	0	0.0%	49,391	61.0%	$0	0.0%	$0.00
2028	1	9,088	11.2%	58,479	72.2%	$346,344	12.3%	$38.11
Thereafter	1	16,633	20.5%	75,112	92.7%	$615,920	21.9%	$37.03
Vacant	0	5,879	7.3%	80,991	100.0%	$0	0.0%	$0.00
Total/Weighted Average	10	80,991	100.0%			$2,815,281	100.0%	$37.48⁽³⁾

(1)

Information obtained from the underwritten rent roll.

(2)

(3)

Weighted Average Annual U/W Base Rent PSF excludes vacant space.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

The following table presents historical occupancy percentages at the Nostrand Avenue Shopping Center Property:

Historical Occupancy

12/31/2014⁽¹⁾⁽²⁾	12/31/2015⁽¹⁾⁽²⁾	12/31/2016⁽¹⁾	12/31/2017⁽²⁾	12/12/2018⁽³⁾
NAV	NAV	91.0%	90.0%	92.7%

(1)	Information obtained from the borrower.

(2)

The Nostrand Avenue Shopping Center Property was acquired in 2018, and the prior owner did not provide historical occupancy figures earlier than 2016. Aldi and Blink Fitness backfilled the prior Pathmark tenant’s space in 2013. With the exception of Lucky Enterprises, all of the remaining tenants have been in occupancy since 2007 or earlier.

(3)	Information obtained from the underwritten rent roll.

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the underwritten net cash flow at the Nostrand Avenue Shopping Center Property:

Cash Flow Analysis⁽¹⁾

	U/W	%⁽²⁾	U/W $ per SF
Rents in Place	$2,648,626	73.8%	$32.70
Contractual Rent Steps⁽³⁾	166,655	4.6	2.06
Grossed Up Vacant Space	247,100	6.9	3.05
Gross Potential Rent	$3,062,381	85.3%	$37.81
Other Income	0	0.0	0.00
Total Recoveries	526,423	14.7	6.50
Net Rental Income	$3,588,804	100.0%	$44.31
(Vacancy & Credit Loss)⁽⁴⁾	(247,100)	(8.1)	(3.05)
Effective Gross Income	$3,341,704	93.1%	$41.26

Real Estate Taxes	$728,000	21.8%	$8.99
Insurance	31,500	0.9	0.39
Management Fee	100,251	3.0	1.24
Other Operating Expenses	303,008	9.1	3.74
Total Operating Expenses	$1,162,759	34.8%	$14.36

Net Operating Income	$2,178,945	65.2%	$26.90
Replacement Reserves	12,149	0.4	0.15
TI/LC	131,482	3.9	1.62
Net Cash Flow	$2,035,314	60.9%	$25.13

NOI DSCR	1.56x
NCF DSCR	1.46x
NOI Debt Yield	8.1%
NCF Debt Yield	7.6%

(1)	Historical information is not available because the Nostrand Avenue Shopping Center Property was acquired in 2018, and the prior owner did not provide complete historical financial information to the borrower. 2017 expense figures were provided, totaling $1,029,778.

(2)	Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(3)	Represents contractual rent steps through December 2019.

(4)	The underwritten economic vacancy is 8.1%. The Nostrand Avenue Shopping Center Property was 92.7% leased as of December 12, 2018.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

Appraisal.The appraiser concluded to an “as-is” appraised value of $40,000,000 as of November 16, 2018.

Environmental Matters. According to a Phase I environmental site assessment dated November 14, 2018, there was evidence of two recognized environmental conditions at the Nostrand Avenue Shopping Center Property. The first recognized environmental condition is regarding the former presence of a dry cleaning tenant at the Nostrand Avenue Shopping Center Property, and the second recognized environmental condition is regarding the former presence of a dry cleaner adjacent to the Nostrand Avenue Shopping Center Property. A Phase II environmental site assessment was recommended for a limited subsurface investigation and was completed in December 2018. The report concluded that soil vapor intrusion is not occurring at the Nostrand Avenue Shopping Center Property and that the potential for adverse impact is minimal. The lender has obtained an environmental insurance policy from Great American Insurance Group for a 13-year term expiring on December 21, 2031. For more details, please see “Description of the Mortgage Pool – Environmental Conditions”in the Preliminary Prospectus.

Market Overview and Competition.The Nostrand Avenue Shopping Center Property is located in Brooklyn, Kings County, New York. Brooklyn is the second largest of the five boroughs by land area and is the most populous borough with one-third of New York City’s population. Over the past decade, Brooklyn has expanded at a rapid pace, attracting both businesses and residents. Since 2003, the number of businesses in Brooklyn has increased by 21.0% and job growth has grown by 19.8%, a rate twice as fast as the rest of New York City. With many restaurants, a growing nightlife, diverse neighborhoods, and accessibility to Manhattan, Brooklyn is attracting young professionals in large numbers. The Nostrand Avenue Shopping Center Property is located in the densely-populated Sheesphead Bay neighborhood bound by Nostrand Avenue, Avenues Y and Z, and Haring Place, and primarily serves the surrounding residential area. The Sheepshead Bay neighborhood is leading the growth of condominiums in Brooklyn, with over 515 units in the pipeline. According to the appraisal, as of 2017, the population within a 1-mile, 2-mile, and 3-mile radius totaled 86,886, 271,792, and 550,894 people, respectively. The intersection of Nostrand Avenue and Avenue Y has an annual average daily traffic count of approximately 15,000 vehicles. The Nostrand Avenue Shopping Center Property is serviced by the B and Q trains, providing access to New York City, with a local stop at Avenue U and Neck Road (0.7 miles from the Nostrand Avenue Shopping Center Property).

Submarket Information – According to a third-party market research report, the Nostrand Avenue Shopping Center Property is situated within the South Brooklyn retail submarket. As of the third quarter of 2018, the submarket reported a total inventory of 41.1 million square feet with a 2.8% vacancy rate and average rental rates of $45.64 per square foot.

Appraiser’s Comp Set – The appraiser did not identify a specific competitive set, but identified eight comparable sales, nine comparable grocery leases, seven comparable large inline leases (greater than 8,500 square feet), and thirteen small inline leases (less than 8,500 square feet).

The following table presents certain information relating to the appraiser’s market rent conclusion for the Nostrand Avenue Shopping Center Property:

Market Rent Summary⁽¹⁾

	Supermarket	Large Retail⁽²⁾	Small Retail	Retail – Corner	Retail-Side Street
Market Rent (PSF)	$30.00	$40.00-$45.00	$50.00	$65.00	$25.00
Lease Term (Years)	15	10	10	10	10
Lease Type (Reimbursements)	Gross	Gross	Gross	Gross	Gross
Rent Increase Projection	10.0% every 5 years	10% every 5 years	3.0% per annum	3.0% per annum	3.0% per annum

(1)	Information obtained from the appraisal.

(2)	Large Retail pertains to leases greater than 8,500 square feet. Inline Small, Inline Corner, and Inline-Side Street pertain to leases less than 8,500 square feet.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

The table below presents certain information relating to comparable sales for the Nostrand Avenue Shopping Center Property identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Sale Price	Sale Price (PSF)
Caesar’s Bay Bazaar	Brooklyn, NY	300,000	Jun-18	$118,000,000	$393.33
1100 King’s Highway & 2067 Coney Island Avenue	Brooklyn, NY	43,318	May-18	$30,500,000	$704.10
2857 West 8^th Street	Brooklyn, NY	52,302	Apr-18	$23,000,000	$439.75
Harlem Center	Upper Manhattan, NY	126,234	Sep-17	$103,000,000	$815.94
Atlantic Center	Brooklyn, NY	396,224	Sep-17	$195,000,000	$492.15
Shops at Bruckner Plaza	Parkchester, Bronx, NY	115,545	Jan-17	$32,000,000	$276.95
Riverdale Crossings	Riverdale, Bronx, NY	159,137	Oct-15	$133,000,000	$835.76
Shops at Grand Avenue	Maspeth, NY	99,986	Oct-14	$56,000,000	$560.08

(1)	Information obtained from the appraisal.

The following table presents certain information relating to nine comparable leases to those at the Nostrand Avenue Shopping Center Property:

Comparable Leases⁽¹⁾⁽²⁾

Property Name/Location	Year Built	Total GLA (SF)	Distance from Subject	Occupancy	Lease Term	Tenant Size (SF)	Annual Base Rent PSF	Reimbursement Amount PSF	Lease Type
Supermarket
Georgetowne Shopping Center 2101-2181 Ralph Avenue Brooklyn, NY	2018	700,000	3.2 miles	100.0%	20.0 Yrs	36,868	$27.00	NAV	Net
Gateway Center II 339-579 Gateway Drive Brooklyn, NY	2014	600,646	6.6 miles	98.0%	15.0 Yrs	16,839	$50.00	NAV	Net
300 Ashland Place Brooklyn, NY	2018	700,000	7.0 miles	NAV	20.0 Yrs	37,000	$56.75	NAV	Gross
Large Inline
2845 Coney Island Avenue Sheepshead Bay, NY	1950	62,000	1.6 miles	NAV	15.0 Yrs	10,000	$71.00	NAV	Net
1601 Kings Highway Sheepshead Bay, NY	2018	68,383	2.1 miles	87.0%	10.0 Yrs	20,000	$42.00	NAV	Gross
12442 Flatlands Avenue Spring Creek, NY	2017	360,000	6.3 miles	NAV	10.0 Yrs	11,035	$35.00	NAV	Gross
Small Inline
3860 Nostrand Avenue Sheepshead Bay, NY	1959	70,293	0.5 miles	95.0%	10.0 Yrs	2,108	$40.00	NAV	Net
2602 East 16^th Street Sheepshead Bay, NY	1960	5,000	0.9 miles	100.0%	10.0 Yrs	700	$50.00	NAV	Net
902 Kings Highway Sheepshead Bay, NY	1931	3,300	2.3 miles	100.0%	10.0 Yrs	1,100	$65.45	NAV	Net

(1)

Information obtained from the appraisal.

(2)

This table contains a sample of the nine comparable grocery leases, seven comparable large inline leases (greater than 8,500 square feet), and the thirteen small inline leases (less than 8,500 square feet) identified by the appraiser. The leases were chosen based on proximity to and similarities between tenants with the Nostrand Avenue Shopping Center Property.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $62,569 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $62,569).

Insurance – Ongoing monthly insurance reserves, equaling one-twelfth of the insurance premiums that the lender estimates will be payable during the next twelve months, are not currently required and will not be required so long as the borrower maintains a blanket policy acceptable to the lender.

Replacement Reserves – The loan documents require ongoing monthly replacement reserves of $1,012 up to a cap of $60,743.

TI/LC Reserve –The loan documents require ongoing monthly TI/LC reserves of $6,749 up to a cap of $242,973.

Free Rent Reserve – The loan documents require an upfront reserve of $149,208 for gap rent related to Rite-Aid.

Existing TI Reserve – The loan documents require an upfront reserve of $83,165 for existing TI/LCs related to Blink Fitness.

Tenant Repair Reserve –The loan documents require an upfront reserve of $12,800 for tenant repairs related to Rite-Aid.

Immediate Repairs Reserve –The loan documents require an upfront reserve of $4,688 for immediate repairs.

Lockbox and Cash Management.The Nostrand Avenue Shopping Center Mortgage Loan documents require a hard lockbox with springing cash management. The Nostrand Avenue Shopping Center Mortgage Loan documents require the Nostrand Avenue Shopping Center Borrower to deliver written instructions to tenants to deposit all rents payable under such leases directly into a clearing account. The Nostrand Avenue Shopping Center Mortgage Loan documents require that all rents received by the Nostrand Avenue Shopping Center Borrower or the property manager be deposited into the lockbox account within two business days of receipt. Funds in the lockbox account, absent the continuance of a Trigger Period (as defined below), are required to be transferred daily to a borrower operating account. Upon the first occurrence of a Trigger Period, the Nostrand Avenue Shopping Center Borrower is required to establish a cash management account under the sole control of the lender, to which during a Trigger Period, all amounts in the lockbox account are required to be automatically transferred daily for the payment, among other things, of the debt service, monthly escrows, default interest and late payment charges. Absent the continuance of a Cash Sweep Period (as defined below), any remaining funds after such disbursements are required to be distributed to the borrower. Upon a Cash Sweep Period, all remain excess cash flow will be escrowed in an excess cash flow reserve account.

A “Trigger Period” will commence upon the earliest to occur of the following:

(i)

an event of default under the Nostrand Avenue Shopping Center Mortgage Loan; or

(ii)

the debt service coverage ratio (as calculated in the loan documents) for the Nostrand Avenue Shopping Center debt falling below 1.05x based on a 30-year amortization schedule (approximately 1.32x based on the interest only debt service payment).

A Trigger Period will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default; or

●

with regard to clause (ii) above, the debt service coverage ratio for the Nostrand Avenue Shopping Center debt being equal to or greater than 1.10x based on a 30-year amortization schedule (approximately 1.38x based on the interest only debt service payment) for two consecutive calendar quarters.

A “Cash Sweep Period” will commence upon the earliest to occur of the following:

(i)

an event of default under the Nostrand Avenue Shopping Center Mortgage Loan; or

(ii)

the debt service coverage ratio for the Nostrand Avenue Shopping Center debt falling below 1.05x based on a 30-year amortization schedule (approximately 1.32x based on the interest only debt service payment) for two consecutive calendar quarters.

A “Cash Sweep Period” will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default; or

●

with regard to clause (ii) above, the debt service coverage ratio for the Nostrand Avenue Shopping Center debt being equal to or greater than 1.10x based on a 30-year amortization schedule (approximately 1.51x based on the interest only debt service payment ) for two consecutive calendar quarters.

Property Management. The Nostrand Avenue Shopping Center Property is managed by an affiliate of the Nostrand Avenue Shopping Center Borrower.

Partial Release. Not permitted.

Retail - Anchored	Loan #7	Cut-off Date Balance:	$26,775,000
3779-3861 Nostrand Avenue	Nostrand Avenue Shopping Center	Cut-off Date LTV:	66.9%
Brooklyn, NY 11235		U/W NCF DSCR:	1.46x
		U/W NOI Debt Yield:	8.1%

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.None.

Ground Lease. None.

Terrorism Insurance.The Nostrand Avenue Shopping Center Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Nostrand Avenue Shopping Center Property, as well as business interruption insurance covering no less than the 12-month period following the occurrence of a casualty event, together with a 6-month extended period of indemnity that covers acts of terrorism. Provided that the TRIPRA is no longer in effect and such policies contain an exclusion for acts of terrorism, the Nostrand Avenue Shopping Center Borrower will obtain, to the extent available, a stand-alone policy that provides the same coverage as the policies would have if such exclusion did not exist.

No. 8 – Roseville Shopping Center

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Rialto Mortgage Finance, LLC			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Retail – Shadow Anchored
Original Principal Balance:		$23,887,500			Location:	Roseville, CA
Cut-off Date Balance:		$23,887,500			Size:	96,791 SF
% of Initial Pool Balance:		3.1%			Cut-off Date Balance Per SF:	$246.79
Loan Purpose:		Acquisition			Maturity Date Balance Per SF:	$217.26
Borrower Sponsors:		Joshua Volen; Trevor Smith			Year Built/Renovated:	1991/NAP
Guarantors:		Joshua Volen; Trevor Smith			Title Vesting:	Fee
Mortgage Rate:		4.7500%			Property Manager:	Self-managed
Note Date:		December 14, 2018			Current Occupancy (As of):	94.3% (11/20/2018)
Seasoning:		2 months			YE 2017 Occupancy:⁽²⁾	80.4%
Maturity Date:		January 6, 2029			YE 2016 Occupancy:	92.0%
IO Period:		36 months			YE 2015 Occupancy:	93.0%
Loan Term (Original):		120 months			YE 2014 Occupancy:	95.1%
Amortization Term (Original):		360 months			Appraised Value:	$34,500,000
Loan Amortization Type:		Interest-only, Amortizing Balloon			Appraised Value Per SF:	$356.44
Call Protection:		L(26),D(90),O(4)			Appraisal Valuation Date:	November 20, 2018
Lockbox Type:		Springing
Additional Debt:		None
Additional Debt Type (Balance):		NAP			Underwriting and Financial Information
					TTM NOI (9/30/2018)⁽³⁾:	$2,245,979
					YE 2017 NOI:	$2,460,384
					YE 2016 NOI:	$2,405,155
Escrows and Reserves⁽¹⁾					U/W Revenues:	$3,505,675
	Initial		Monthly	Cap	U/W Expenses:	$831,546
Taxes	$89,325		$28,357	NAP	U/W NOI⁽²⁾:	$2,674,128
Insurance	$15,001		$2,857	NAP	U/W NCF:	$2,601,535
Replacement Reserve	$0		$1,210	$43,556	U/W DSCR based on NOI/NCF:	1.79x / 1.74x
TI/LC Reserve	$0		$4,840	$174,224	U/W Debt Yield based on NOI/NCF:	11.2% / 10.9%
Deferred Maintenance	$9,275		$0	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	12.7% / 12.4%
Free Rent Reserve	$93,913		$0	NAP	Cut-off Date LTV Ratio:	69.2%
Unfunded TI/LC Reserve	$1,026,607		$0	NAP	LTV Ratio at Maturity:	61.0%

Sources and Uses
Sources			Uses
Original loan amount	$23,887,500	71.5%	Purchase Price	$31,850,000	95.3%
Sponsor’s new equity contribution	9,518,050	28.5	Upfront reserves	1,234,121	3.7
			Closing costs	321,429	1.0
Total Sources	$33,405,550	100.0%	Total Uses	$33,405,550	100.0%

(1)

See “Escrows” section below.

(2)

Occupancy dropped in 2017 as Party City, which formerly occupied the W Salon Suites space, vacated in September 2017.

(3)

The U/W NOI increased more than 5% compared to the TTM NOI due to the second largest tenant, W Salon Suites, commencing its lease in January 2019.

The Mortgage Loan.The mortgage loan (the “Roseville Shopping Center Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the borrower’s fee interest in a 96,791 square foot shadow anchored retail center located in Roseville, California (the “Roseville Shopping Center Property”).

The Borrowers and Borrower Sponsors.The borrowers, Roseville PH, LLC (74.06%) and Convoy Roseville, LLC (25.94%) (collectively, the “Roseville Shopping Center Borrower”), are tenants-in-common, each a single purpose Delaware limited liability company with one independent director. The Roseville Shopping Center Property is managed by CIRE Investment Services, Inc., an affiliate of the Roseville Shopping Center Borrower. Roseville PH, LLC is managed by CIRE Management, LLC and is owned 100% by Roseville Retail I, LLC, which is owned by class A Investor Members (93.88%) and class B CIRE Sponsorship LLC (6.12%). Convoy Roseville, LLC is managed by CIRE Management, LLC and is owned 100% by 6601 Convoy Ct, LLC, which is owned by Joshua Volen

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

(40.0%), Trevor Smith (40.0%), Jeff Robertson (15.0%), Alexis Volen (2.5%), and Jason Tamashiro (2.5%). CIRE Management, LLC is owned by Trevor Smith (50%) and Joshua Volen (50%). Legal counsel to the Roseville Shopping Center Borrower delivered a non-consolidation opinion in connection with the origination of the Roseville Shopping Center Mortgage Loan. The nonrecourse carve-out guarantors of the Roseville Shopping Center Mortgage Loan are Joshua Volen and Trevor Smith on a joint and several basis.

The borrower sponsors, Joshua Volen and Trevor Smith are co-founders and principals of CIRE Equity. Founded in 2010, CIRE Equity is based in Beverly Hills, California and San Diego, California and serves as a vertically integrated sponsor/operator that specializes in value-add acquisitions in the Southwestern United States. Joshua Volen has held roles at Marcus & Millichap, a commercial real estate brokerage firm. Mr. Volen has also played a role in the growth of his family office to over 500,000 square feet of office, industrial and retail properties in Northern California along with other key markets. Trevor Smith worked at Silverberg Development Corp, a boutique real estate investment and development firm in Los Angeles. Mr. Smith has experience in real estate acquisitions, valuation, financial analysis, market analysis, project management, asset management, and dispositions. Mr. Volen was a guarantor of a loan that went into maturity default in December 2009. The matter has been settled and paid in full. See“Description of the Mortgage Pool—Litigation and Other Considerations” in the Preliminary Prospectus.

The Property. The Roseville Shopping Center Property is a shadow anchored retail center located in Roseville, California, approximately 15 miles northeast of downtown Sacramento. The Roseville Shopping Center Property consists of eight retail buildings developed in 1991. The Roseville Shopping Center Property is situated on a 9.0 acre site, with 465 surface parking spaces, resulting in a parking ratio of 4.8 per 1,000 square feet of rentable area. The Roseville Shopping Center Property is part of a larger retail center, which is anchored by Target and Raley’s and includes a Jack in the Box outparcel (all of which are not part of the collateral). Target has been in occupancy since 1998 and reimburses the Roseville Shopping Center Borrower for its share of utilities expenses pursuant to an operation and easement agreement that covers the larger shopping center (including the Roseville Shopping Center Property, the “OEA”). Raley’s has been in occupancy since 1998 and recently renewed its lease through 2022. Jack in the Box has been in occupancy since 1998. Raley’s and Jack in the Box reimburse the Roseville Shopping Center Borrower for their respective share of common area maintenance expenses pursuant to the OEA. The Roseville Shopping Center Property’s major tenants include PetCo Animal Supplies, Inc., W Salon Suites and Big 5 Sporting Goods. As of November 20, 2018, the Roseville Shopping Center Property was 94.3% occupied by 24 tenants, and the Roseville Shopping Center Property also receives rent under a cell-tower agreement with T-Mobile.

Major Tenants.

Largest Tenant: PetCo Animal Supplies, Inc. (15,486 square feet; 16.0% of net rentable area; 13.9% of underwritten base rent; 6/30/2027 lease expiration) – PetCo Animal Supplies, Inc., (“PetCo”) is a privately held pet retailer in the United States, with corporate offices in San Diego and San Antonio. PetCo sells pet products and services, as well as certain types of live animals with more than 1,500 locations across the United States, Mexico, and Puerto Rico. According to the most recent lease extension, PetCo remodeled its premises in accordance with plans approved by the Roseville Shopping Center Borrower, for which it was reimbursed $250,000 in tenant allowance. PetCo has been a tenant at the Roseville Shopping Center Property since 1997 and has two, 5-year renewal options remaining after its June 2027 lease expiration.

2^ndLargest Tenant: W Salon Suites (13,114 square feet; 13.5% of net rentable area; 11.8% of underwritten base rent; 3/31/2029 lease expiration) – W Salon Suites is a provider of private rental space for independent beauty professionals within the salon suite concept. They offer salon professionals the opportunity to own and operate their own business without the expense of facility management and maintenance. The locations are staffed with full-time salon managers who provide service to salon owners and their clients. W Salon Suites started its lease in January 2019 with a rent commencement date of April 2019. The Roseville Shopping Center Borrower escrowed $93,913 in a free rent reserve at origination. W Salon Suites has two, 5-year renewal options remaining after its March 2029 lease expiration.

3^rdLargest Tenant: Big 5 Sporting Goods (10,000 square feet; 10.3% of net rentable area; 9.5% of underwritten base rent; 1/31/2021 lease expiration) – Big 5 Sporting Goods is a sporting goods retailer headquartered in El Segundo, California with 435 stores in Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming. In 2014, Big 5 Sporting Goods launched its e-commerce platform to offer selected products online. Big 5 Sporting Goods product mix includes athletic shoes, apparel and accessories, as well as a broad selection of outdoor and athletic equipment for team sports. Big 5 Sporting Goods has been a tenant at the Roseville Shopping Center Property since 1991 and has one, 5-year renewal option remaining after its January 2021 lease expiration.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

The following table presents certain information relating to the tenancy at the Roseville Shopping Center Property:

Major Tenants

Tenant Name	Credit Rating (Fitch/Moody’s/ S&P)⁽¹⁾	Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽²⁾	Annual U/W Base Rent⁽²⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Major Tenants
PetCo Animal Supplies, Inc.	NR/B3/CCC+	15,486	16.0%	$24.00	$371,664	13.9%	6/30/2027	2, 5-year	N
W Salon Suites⁽³⁾	NR/NR/NR	13,114	13.5%	$24.00	$314,736	11.8%	3/31/2029	2, 5-year	N
Big 5 Sporting Goods	NR/NR/NR	10,000	10.3%	$25.28	$252,768	9.5%	1/31/2021	1, 5-year	N
Chevy’s Mexican Restaurant	NR/NR/NR	6,500	6.7%	$45.90	$298,350	11.2%	2/28/2021	None	N
Fed Ex Office	NR/Baa2/BBB	6,400	6.6%	$40.17	$257,088	9.6%	1/31/2022	None	N
Total Major Tenants		51,500	53.2%	$29.02	$1,494,606	56.1%

Non-Major Tenants		39,726⁽⁴⁾	41.0%	$32.00⁽⁵⁾	$1,171,904⁽⁶⁾	43.9%

Occupied Collateral Total		91,226⁽⁴⁾	94.3%	$30.26⁽⁵⁾	2,666,510⁽⁶⁾	100.0%

Vacant Space		5,565	5.7%

Collateral Total		96,791	100.0%

(1)

Certain ratings are those of the parent company whether or not the parent company guarantees the lease.

(2)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through November 2019 totaling $30,084.

(3)

W Salon Suites has taken the possession of its space and is required to begin paying rent on April 2019.

(4)

Include 3,100 square feet of storage space.

(5)

Annual U/W Base Rent PSF excludes vacant space and a 3,100 square feet of storage space with no attributable U/W Base Rent.

(6)

Cell tower rent is excluded.

The following table presents certain information relating to tenant sales at the Roseville Shopping Center Property for tenants required to report sales:

Tenant Sales (PSF)

Major Tenant Name	% of Total Annual U/W Base Rent	2016⁽¹⁾	2017⁽¹⁾	2018⁽¹⁾	Major Tenant Occupancy Cost⁽²⁾
PetCo Animal Supplies, Inc.	13.9%	$214	$207	$184	17.9%
Big 5 Sporting Goods	9.5%	$312	$357	$301	9.9%
Chevy’s Mexican Restaurant	11.2%	$365	$383	$411	12.4%

In-Line Sales PSF		$286	$296	$303
In-Line Occupancy Cost		15.9%	15.0%	14.6%

(1)	TTM Sales PSF and Occupancy Cost are for the trailing 12-month period ending September 30 of each year.

(2)	Occupancy Cost is based on TTM 9/30/2018 sales, underwritten base rent and underwritten reimbursements.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

The following table presents certain information relating to the lease rollover schedule at the Roseville Shopping Center Property:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF
MTM	1	1,000	1.0%	1,000	1.0%	$18,000	0.7%	$18.00
2019	5	11,611	12.0%	12,611	13.0%	$335,052	12.6%	$28.86
2020	4	5,500	5.7%	18,111	18.7%	$212,604	8.0%	$38.66
2021	8	31,100⁽³⁾	32.1%	49,211	50.8%	$977,078	36.6%	$31.42
2022	2	7,500	7.7%	56,711	58.6%	$289,296	10.8%	$38.57
2023	1	2,400	2.5%	59,111	61.1%	$63,360	2.4%	$26.40
2024	0	0	0.0%	59,111	61.1%	$0	0.0%	$0.00
2025	0	0	0.0%	59,111	61.1%	$0	0.0%	$0.00
2026	2	3,515	3.6%	62,626	64.7%	$84,720	3.2%	$24.10
2027	1	15,486	16.0%	78,112	80.7%	$371,664	13.9%	$24.00
2028	0	0	0.0%	78,112	80.7%	$0	0.0%	$0.00
2029	1	13,114	13.5%	91,226	94.3%	$314,736	11.8%	$24.00
Thereafter	0	0	0.0%	91,226	94.3%	$0	0.0%	$0.00
Vacant	0	5,565	5.7%	96,791	100.0%	$0	0.0%	$0.00
Total/Weighted Average	25	96,791	100.0%			$2,666,510⁽⁴⁾	100.0%	$30.26⁽⁵⁾

(1)

Information obtained from the underwritten rent roll.

(2)

(3)

Includes 3,100 square feet of storage space.

(4)

Cell tower rent is excluded.

(5)

Total/Weighted Average Annual U/W Base Rent and Annual U/W Base Rent PSF exclude vacant space and a 3,100 square feet of storage space with no attributable U/W Base Rent.

The following table presents historical occupancy percentages at the Roseville Shopping Center Property:

Historical Occupancy

12/31/2014⁽¹⁾		12/31/2015⁽¹⁾		12/31/2016⁽¹⁾		12/31/2017⁽¹⁾⁽²⁾		11/20/2018⁽³⁾
95.1%		93.0%		92.0%		80.4%		94.3%

(1)

Information obtained from the Roseville Shopping Center Borrower.

(2)

Occupancy dropped in 2017 as Party City, which formerly occupied the W Salon Suites space, vacated in September 2017.

(3)

Information obtained from the underwritten rent roll.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the underwritten net cash flow at the Roseville Shopping Center Property:

Cash Flow Analysis

	2016	2017	TTM 9/30/2018	U/W	%⁽¹⁾		U/W $ per SF
Rents in Place	$2,366,863	$2,424,890	$2,233,068	$2,636,426	70.8	%	$27.24
Contractual Rent Steps	0	0	0	30,084⁽²⁾	0.8		0.31
Grossed Up Vacant Space	0	0	0	139,515	3.7		1.44
Gross Potential Rent	$2,366,863	$2,424,890	$2,233,068	$2,806,025	75.3	%	$28.99
Other Income⁽³⁾	60,758	60,176	69,111	63,249	1.7		0.65
Total Recoveries	682,311	694,343	639,340	855,268	23.0		8.84
Net Rental Income	$3,109,932	$3,179,409	$2,941,519	$3,724,541	100.0	%	$38.48
(Vacancy & Credit Loss)	0	0	0	(218,866)⁽⁴⁾	(7.8)		(2.26)
Effective Gross Income	$3,109,932	$3,179,409	$2,941,519	$3,505,675	92.2	%	$36.22

Real Estate Taxes	258,876	269,106	267,990	366,643	10.5		3.79
Insurance	14,878	15,334	14,618	34,287	1.0		0.35
Management Fee	91,930	94,105	87,486	105,170	3.0		1.09
Other Operating Expenses	339,093	340,480	325,446	325,446	9.3		3.36
Total Operating Expenses	$704,777	$719,025	$695,540	$831,546	23.7	%	$8.59

Net Operating Income⁽⁵⁾	$2,405,155	$2,460,384	$2,245,979	$2,674,128	76.3	%	$27.63
Replacement Reserves	0	0	0	14,519	0.4		0.15
TI/LC	0	0	0	58,075	1.7		0.60
Net Cash Flow	$2,405,155	$2,460,384	$2,245,979	$2,601,535	74.2	%	$26.88

NOI DSCR	1.61x	1.65x	1.50x	1.79x
NCF DSCR	1.61x	1.65x	1.50x	1.74x
NOI Debt Yield	10.1%	10.3%	9.4%	11.2%
NCF Debt Yield	10.1%	10.3%	9.4%	10.9%

(1)

Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(2)

Represents contractual rent steps through November 2019.

(3)

Other Income includes income from fireworks sales in the parking area and T-Mobile rent for the cell tower.

(4)

The underwritten economic vacancy is 6.0%. The Roseville Shopping Center Property was 94.3% leased as of November 20, 2018.

(5)

The U/W NOI increased more than 5% compared to the TTM NOI due to the second largest tenant, W Salon Suites, starting its lease in January 2019.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

Appraisal.As of the appraisal valuation date of November 20, 2018, the Roseville Shopping Center Property had an “as-is” appraised value of $34,500,000.

Environmental Matters. According to a Phase I environmental site assessment dated November 14, 2018, there was no evidence of any recognized environmental conditions at the Roseville Shopping Center Property.

There was a Phase II environmental report on sub-slab soil gas dated June 11, 2018 to evaluate the potential impact of chlorinated solvents to sub-slab soil gas as a consequence of a release or releases from the historical on-site dry cleaning operations. None of the analyzed soil gas samples contained detectable concentrations of chlorinated solvents above commercial environmental screening levels, and no further action was recommended.

Market Overview and Competition.The Roseville Shopping Center Property is located in Roseville, Placer County, California, approximately 15 miles northeast of Downtown Sacramento. The Roseville Shopping Center Property is located approximately 1.25 miles east of the intersection of Douglas Boulevard and Interstate 80. Douglas Boulevard, East Roseville Parkway, Eureka Road, and Sierra College Boulevard have a large concentration of office and retail development. Roseville Galleria is located along Roseville Parkway in the northwest section of the Roseville Shopping Center Property’s neighborhood and is considered a regional mall containing over 1.0 million square feet. The Fountains at Roseville is also located northwest of the Roseville Shopping Center Property’s neighborhood, just across the street from the Roseville Galleria. Residential properties are located along secondary streets within Roseville Shopping Center Property’s neighborhood. According to the appraisal report, the estimated 2018 population within a one, three, and five-mile radius of the Roseville Shopping Center Property is 7,439, 103,338 and 263,307. The estimated 2018 average household income within the same radii is $92,257, $98,689, and $101,752.

Submarket Information – According to the appraisal, the Roseville Shopping Center Property is situated within the Roseville Retail submarket. As of third quarter 2018, the submarket reported a total inventory of 6.6 million square feet with a 3.5% vacancy rate and an average quoted rental rate of $18.60 per square foot.

Appraiser’s Comp Set – The appraiser identified eight competitive properties for the Roseville Shopping Center Property totaling approximately 2.2 million square feet, which reported an average occupancy rate of approximately 91.0%.

The following table presents certain information relating to the appraiser’s market rent conclusion for the Roseville Shopping Center Property:

Market Rent Summary⁽¹⁾

	$2.00 Shop >3,000 SF	$2.25 Shop	$2.50 Shop	$3.25 Shop	$3.50 Shop	$2.00 Shop	$2.75 Pad	$4.25 Pad	$3.00 Shop	$3.75 Pad
Market Rent (PSF)	$2.00	$2.25	$2.50	$3.25	$3.50	$2.00	$2.75	$4.25	$3.00	$3.75

Lease Term (Years)	10	5	5	5	5	5	10	10	5	10
Lease Type (Reimbursements)	NNN	NNN	NNN	NNN	NNN	NNN	NNN	NNN	NNN	NNN
Rent Increase Projection	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum	3.0% per annum

(1)

Information obtained from the appraisal.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

The table below presents certain information relating to comparable sales for the Roseville Shopping Center Property identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Adjusted Sale Price	Sale Price (PSF)
Walmart Central	Folsom, CA	139,377	Aug-17	$39,933,500	$286.51
Rocky Ridge Town Center	Roseville, CA	93,338	Apr-17	$36,000,000	$385.70
Raley’s Center Elk Grove	Elk Grove, CA	103,853	Apr-17	$38,100,000	$366.86
Laguna Village	Sacramento, CA	120,893	Dec-16	$34,000,000	$281.24
TJ Maxx Plaza	Roseville, CA	126,498	Mar-16	$38,595,000	$305.10

^{(1) Information obtained from the appraisal.}

The table below presents certain information relating to eight comparable retail properties to the Roseville Shopping Center Property identified by the appraiser:

Competitive Set⁽¹⁾

Property Name / Location	Year Built/ Renovated	Total GLA (SF)	Occupancy	Distance to Subject	Major / Anchor Tenants
Roseville Shopping Center (Subject) Roseville, CA	1991/NAP	96,791	94.3%	-	PetCo Animal Supplies, W Salon Suites, Big 5 Sporting Goods
1950 Douglas Blvd Roseville, CA	1989/NAP	18,585	88.0%	0.4 miles	Paul & Dan Chao

Eureka Ridge Retail Center Roseville, CA	2005/NAP	37,296	100.0%	0.6 miles	Instaphysique

Renaissance Creek Roseville, CA	2002/NAP	188,000	99.0%	1.7 miles	Ahi Poke

Highland Reserve Marketplace Roseville, CA	2004/NAP	191,415	97.0%	5.9 miles	The Posh Bagel, Freebirds World Burrito

Nugget Plaza Roseville, CA	2006/NAP	140,274	96.0%	5.9 miles	Aura Salon Company, Cycle Bare

Fountains at Roseville Roseville, CA	2007/NAP	330,000	97.0%	2.7 miles	Comcast (Xfinity)

Palladio at Broadstone Folsom, CA	2010/2018	623,777	81.0%	14.4 miles	Brisas Do Sul, Pretty Sweet, Barnes & Noble

Promenade at Sacramento Gateway Sacramento, CA	2006/NAP	665,593	86.0%	17.9 miles	Burlington Coat Factory, Cost Plus, Ulta, Old Navy, Off Broadway Shoes, Barnes & Noble, Target

(1)	Information obtained from the appraisal and the underwritten rent roll.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

The following table presents certain information relating to eight comparable leases to those at the Roseville Shopping Center Property:

Comparable Leases⁽¹⁾

Property Name/ Location	Year Built/ Renovated	Total GLA (SF)	Distance from Subject	Occupancy	Lease Term	Tenant Size	Annual Base Rent PSF	Lease Type
1950 Douglas Blvd. 1950 Douglas Blvd. Roseville, CA	1989/NAP	18,585	0.4 miles	88.0%	5.5 Yrs	1,204	$2.00	NNN
Eureka Ridge Retail Center 1470-1490 Eureka Road Roseville, CA	2005/NAP	37,296	0.6 miles	100.0%	5.3 Yrs	2,125	$2.19	NNN
Renaissance Creek 8620-8690 Sierra College Blvd. Roseville, CA	2002/NAP	188,000	1.7 miles	99.0%	7.0 Yrs	2,870	$3.25	NNN
Highland Reserve Marketplace 10301-10375 Fairway Drive Roseville, CA	2004/NAP	191,415	5.9 miles	97.0%	5.3 Yrs 4.0 Yrs	1,500 2,116	$3.00 $3.48	NNN NNN
Nugget Plaza NEC Fairway Dr. & Pleasant Grove Blvd., Roseville, CA	2006/NAP	140,274	5.9 miles	96.0%	5.5 Yrs 5.7 Yrs	976 2,598	$2.50 $2.25	NNN NNN
Fountains at Roseville 1162 Roseville Parkway Roseville, CA	2007/NAP	330,000	2.7 miles	97.0%	7.3 Yrs	4,254	$4.25	NNN
Palladio at Broadstone 200-460 Palladio Parkway Folsom, CA	2010/2018	623,777	14.4 miles	81.0%	6.0 Yrs 6.1 Yrs 10.1 Yrs	7,634 1,120 18,997	$2.00 $2.20 $1.70	NNN NNN Gross
Promenade at Sacramento Gateway 3610 North Freeway Blvd. Sacramento, CA	2006/NAP	665,593	17.9 miles	86.0%	10.0 Yrs	10,760	$2.17	NNN

(1)	Information obtained from the appraisal.

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $89,325 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $28,357).

Insurance – The loan documents require an upfront insurance reserve of $15,001 and ongoing monthly insurance reserves in an amount equal to one-twelfth of the insurance premiums that the lender estimates will be payable during the next twelve months (initially $2,857).

Replacement Reserves – The loan documents require ongoing monthly replacement reserves of $1,210, capped at $43,556.

TI/LC Reserve –The loan documents require ongoing monthly tenant improvement and leasing commissions reserves of $4,840, capped at $174,224.

Deferred Maintenance –The loan documents require an upfront deferred maintenance reserve of $9,275.

Free Rent Reserve – The loan documents require an upfront reserve of $93,913 for free rent related to W Salon Suites.

Unfunded TI/LC Reserve – The loan documents require an upfront reserve of $1,026,607 for unfunded TI/LCs related to W Salon Studios ($972,929), Bloom Hearing Aid ($45,936), and Seven Salon ($7,742).

Lockbox and Cash Management.Upon the occurrence of a Cash Management Trigger Event (as defined below) the Roseville Shopping Center Borrower will be required to establish a lender-controlled lockbox account and instruct each tenant to deposit rent into such lockbox account. Additionally, upon the occurrence of a Cash Management Trigger Event, all revenues received by the Roseville Shopping Center Borrower or the property manager relating to Roseville Shopping Center Property are required to be deposited into the lockbox within one business day of receipt. Other than during a Cash Sweep Event (as defined below), all excess funds on deposit are disbursed to the Roseville Shopping Center Borrower.

Retail – Shadow Anchored	Loan #8	Cut-off Date Balance:	$23,887,500
1901-1913, 1919-1925, 1927	Roseville Shopping Center	Cut-off Date LTV:	69.2%
Douglas Boulevard		U/W NCF DSCR:	1.74x
Roseville, CA 95661		U/W NOI Debt Yield:	11.2%

A “Cash Management Trigger Event” will commence upon the occurrence of the following:

(i)

an event of default;

(ii)

any bankruptcy action of the Roseville Shopping Center Borrower, either guarantor or the property manager, or

(iii)

a Cash Management DSCR Trigger Event (as defined below).

A “Cash Management DSCR Trigger Event” will occur on any day that the amortizing debt service coverage ratio, based on the trailing 12-month period immediately preceding the date of such determination, is less than 1.20x.

A Cash Management Trigger Event will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default being accepted or waived by lender;

●

with regard to clause (ii) above, such bankruptcy petition being discharged, stayed, or dismissed within 120 days of such filing, among other conditions, for the Roseville Shopping Center Borrower, the related guarantor and the property manager; or, with respect to a bankruptcy action of the property manager, the Roseville Shopping Center Borrower replacing the property manager with a qualified manager acceptable to the lender; and

●

with regard to clause (iii) above, the date that the amortizing debt service coverage ratio based upon the trailing 12-month period immediately preceding the date of such determination is greater than 1.20x for two consecutive calendar quarters.

A “Cash Sweep Event” will commence upon the occurrence of the following:

(i)

an event of default;

(ii)

any bankruptcy action of the Roseville Shopping Center Borrower, either guarantor or the property manager; or

(iii)

a Cash Sweep DSCR Trigger Event (as defined below);

A “Cash Sweep DSCR Trigger Event” will occur on any day the amortizing debt service coverage ratio, based on the trailing 12-month period immediately preceding the date of such determination, is less than 1.10x.

A “Cash Sweep Event” will end upon the occurrence of:

●

with regard to clause (i) above, the cure of such event of default being accepted or waived by lender;

●

with regard to clause (ii) above, such bankruptcy petition being discharged, stayed, or dismissed within 120 days of such filing among other conditions for the Roseville Shopping Center Borrower, the related guarantor or the property manager; or, with respect to a bankruptcy action of the property manager, the Roseville Shopping Center Borrower replacing the property manager with a qualified manger acceptable to the lender; and

●

Property Management. The Roseville Shopping Center Property is managed by CIRE Investment Services, Inc., an affiliate of the Roseville Shopping Center Borrower.

Partial Release. Not permitted.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease. None.

Terrorism Insurance.The Roseville Shopping Center Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the Roseville Shopping Center Borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Roseville Shopping Center Property, as well as business interruption insurance covering no less than the 18-month period following the occurrence of a casualty event, together with a 12-month extended period of indemnity.

No. 9 – Northchase Office Portfolio

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Wells Fargo Bank, National Association			Single Asset/Portfolio:	Portfolio
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Office – Suburban
Original Principal Balance:		$19,500,000			Location:	Various
Cut-off Date Balance:		$19,500,000			Size:	255,726 SF
% of Initial Pool Balance:		2.5%			Cut-off Date Balance Per SF:	$76.25
Loan Purpose:		Refinance			Maturity Date Balance Per SF:	$76.25
Borrower Sponsor:		Rose Jarboe			Year Built/Renovated:	Various/2018
Guarantor:		Rose Jarboe			Title Vesting:	Fee
Mortgage Rate:		5.0000%			Property Manager:	Self-managed
Note Date:		January 31, 2019			Current Occupancy (As of):	94.1% (12/1/2018)
Seasoning:		1 month			YE 2017 Occupancy:	91.6%
Maturity Date:		February 11, 2029			YE 2016 Occupancy:	94.1%
IO Period:		120 months			YE 2015 Occupancy:	91.2%
Loan Term (Original):		120 months			YE 2014 Occupancy:	84.2%
Amortization Term (Original):		NAP			Appraised Value:	$30,450,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per SF:	$119.07
Call Protection:		L(25), D(91),O(4)			Appraisal Valuation Date: Various
Lockbox Type:		Springing
Additional Debt:		None
Additional Debt Type (Balance):		NAP			Underwriting and Financial Information
					TTM NOI (10/31/2018):	$2,412,716
					YE 2017 NOI⁽²⁾:	$2,428,917
					YE 2016 NOI⁽³⁾:	NAV
Escrows and Reserves⁽¹⁾					YE 2015 NOI⁽³⁾:	NAV
	Initial		Monthly	Cap	U/W Revenues:	$4,471,635
Taxes	$163,808		$30,676	NAP	U/W NCF:	$2,260,404
Insurance	$0		Springing	NAP	U/W DSCR based on NOI/NCF:	2.53x / 2.28x
Immediate Repair Reserve	$44,750		$0	NAP	U/W Debt Yield based on NOI/NCF:	12.9% / 11.6%
Replacement Reserve	$0		$5,405	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	12.9% / 11.6%
Leasing Reserve	$271,000		$20,833	$750,000	Cut-off Date LTV Ratio:	64.0%
Gap Rent Reserve	$66,819		$0	NAP	LTV Ratio at Maturity:	64.0%

Sources and Uses
Sources			Uses
Original loan amount	$19,500,000	100.0%	Loan payoff	$17,205,770	88.2%
			Upfront reserves	546,377	2.8
			Closing costs	368,818	1.9
			Return of equity	1,379,035	7.1
Total Sources	$19,500,000	100.0%	Total Uses	$19,500,000	100.0%

(1)

See “Escrows” section below.

(2)

YE 2017 NOI includes full-year 2017 values for the Crestwood and Northchase properties and the 11-month period ending December 31, 2017, annualized, values for the Mansell property.

(3)

The sponsor acquired two of the three Northchase Office Portfolio Properties (as defined in “The Mortgage Loan” section below) in 2016.

The Mortgage Loan. The mortgage loan (the “Northchase Office Portfolio Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in three suburban office properties located in Marietta, Duluth and Roswell, Georgia (the “Northchase Office Portfolio Properties”).

The Borrowers and Borrower Sponsors.The borrowers comprise three single purpose entities: Northchase Partners, LLC; Crestwood Partners, LLC; and Mansell Partners, LLC (collectively, the “Northchase Office Portfolio Borrower”), each a Georgia limited liability company. The borrower sponsor and nonrecourse carve-out guarantor of the Northchase Office Portfolio Mortgage Loan is Rose Jarboe.

Ms. Jarboe is the Chief Executive Officer of WePartner Management (“WePartner”), an Atlanta-based, fully integrated real estate investment and management firm specializing in acquisition, development and management of commercial office, industrial, retail and residential properties. WePartner’s entire 14-property portfolio is located in Georgia. Ms. Jarboe has over 20 years of experience in

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

accounting, finance and real estate investments. At WePartner, Ms. Jarboe oversees all business activities including investment analysis, finance, property management and construction management.

The Properties.The Northchase Office Portfolio Properties comprise three, class B suburban office properties located in the northern suburbs of the greater Atlanta market. Constructed from 1986 to 1999 and renovated in 2018, the Northchase Office Portfolio Properties total 255,726 square feet and as of December 1, 2018 were 94.1% leased to 58 tenants across various industries, including financial, construction, insurance, legal and medical, with no single tenant representing more than 8.1% of net rentable area or 8.2% of underwritten base rent. Renovations were completed at all three Northchase Office Portfolio Properties from 2016 to 2018 for a total cost of approximately $528,000. The borrower sponsor acquired the Northchase and Crestwood properties in 2016 and acquired the Mansell property in 2017.

The Northchase Office Portfolio Properties range in size from 77,003 square feet to 93,681 square feet and comprise four, 2- to 5-story buildings. The Northchase Office Portfolio Properties have a weighted average parking ratio of 3.7 spaces per 1,000 square feet of rentable area with individual properties ranging from 2.8 to 4.5 spaces per 1,000 square feet of rentable area (see table below).

The following table presents certain information relating to the Northchase Office Portfolio Properties:

Property Name – Location	Allocated Cut-off Date Balance	% of Portfolio Cut-off Date Balance	Occupancy	Year Built/ Renovated	Net Rentable Area (SF)	Appraised Value	Allocated Cut-off Date LTV	% of UW NOI	Parking Ratio (per 1,000 SF)
Northchase - 1165 Northchase Parkway Southeast Marietta, GA	$6,550,000	33.6%	94.3%	1986/2018	85,042	$10,000,000	65.5%	35.6%	4.5
Crestwood - 3675 Crestwood Parkway Northwest Duluth, GA	$6,480,000	33.2%	93.1%	1987/2018	93,681	$10,650,000	60.8%	34.9%	2.8
Mansell - 675 and 695 Mansell Road Roswell, GA	$6,470,000	33.2%	95.0%	1999/2018	77,003	$9,800,000	66.0%	29.5%	4.0
Total/Weighted Average	$19,500,000	100.0%	94.1%		255,726	$30,450,000	64.0%	100.0%	3.7

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

The following table presents certain information relating to the tenancy at the Northchase Office Portfolio Properties:

Major Tenants

Tenant Name (Property)	Credit Rating (Fitch/ Moody’s/ S&P)	Tenant NRSF	% of NRSF	Annual U/W Base Rent PSF⁽¹⁾	Annual U/W Base Rent⁽¹⁾	% of Total Annual U/W Base Rent	Lease Expiration Date	Extension Options	Termination Option (Y/N)
Major Tenants
Oversight Systems, Inc (Northchase)	NR/NR/NR	19,211	7.5%	$19.13	$367,412	8.2%	7/31/2020⁽²⁾	1, 5-year⁽²⁾	N
NorthPoint Executives Suites Duluth, LLC (Crestwood)	NR/NR/NR	20,835	8.1%	$17.05	$355,301	7.9%	8/31/2023	None	N
CMI Limited Co. (Northchase)	NR/NR/NR	14,484	5.7%	$20.00	$289,680	6.4%	4/30/2020	None	N
Paperhost.com, Inc. (Mansell)	NR/NR/NR	13,253	5.2%	$19.50	$258,434	5.7%	9/30/2020	None	N
Medlytix, Inc. (Mansell)	NR/NR/NR	12,149	4.8%	$19.15	$232,653	5.2%	6/30/2021	None	N
Total Major Tenants		79,932	31.3%	$18.81	$1,503,480	33.4%

Non-Major Tenant		160,567	62.8%	$18.67	$2,998,298	66.6%

Occupied Collateral Total		240,499	94.1%	$18.72	$4,501,778	100.0%

Vacant Space		15,227	6.0%

Collateral Total		255,726	100.0%

(1)

Annual U/W Base Rent PSF and Annual U/W Base Rent include contractual rent steps through February 2020 totaling $110,475.

(2)

Oversight Systems, Inc leases two suites at the Northchase Office Portfolio Properties. The lease for the 16,053 square foot suite expires on 7/31/2020 and has one, 5-year option to renew. The lease for the 3,158 square foot expansion space expires on 12/31/2022 and has no extension options.

The following table presents certain information relating to the lease rollover schedule at the Northchase Office Portfolio Properties:

Lease Expiration Schedule⁽¹⁾⁽²⁾

Year Ending December 31,	No. of Leases Expiring	Expiring NRSF	% of Total NRSF	Cumulative Expiring NRSF	Cumulative % of Total NRSF	Annual U/W Base Rent⁽³⁾	% of Total Annual U/W Base Rent	Annual U/W Base Rent PSF⁽³⁾
MTM	2	560	0.2%	560	0.2%	$4,499	0.1%	$8.03
2019	11	26,239	10.3%	26,799	10.5%	$513,128	11.4%	$19.56
2020	16	92,247	36.1%	119,046	46.6%	$1,777,364	39.5%	$19.27
2021	13	48,958	19.1%	168,004	65.7%	$913,361	20.3%	$18.66
2022	9	29,099	11.4%	197,103	77.1%	$552,302	12.3%	$18.98
2023	3	23,771	9.3%	220,874	86.4%	$412,897	9.2%	$17.37
2024	4	12,708	5.0%	233,582	91.3%	$241,318	5.4%	$18.99
2025	0	0	0.0%	233,582	91.3%	$0	0.0%	$0.00
2026	1	4,485	1.8%	238,067	93.1%	$86,909	1.9%	$19.38
2027	0	0	0.0%	238,067	93.1%	$0	0.0%	$0.00
2028	0	0	0.0%	238,067	93.1%	$0	0.0%	$0.00
2029	0	0	0.0%	238,067	93.1%	$0	0.0%	$0.00
Thereafter⁽⁴⁾	5	2,432	1.0%	240,499	94.1%	$0	0.0%	$0.00
Vacant	0	15,227	6.0%	255,726	100.0%	$0	0.0%	$0.00
Total/Weighted Average	64	255,726	100.0%			$4,501,778	100.0%	$18.72

(1)

Information obtained from the underwritten rent roll.

(2)

(3) Total/Weighted Average Annual U/W Base Rent and Total/Weighted Average Annual U/W Base Rent PSF exclude vacant space.

(4)

Thereafter includes three storage units leased to property management and office tenants, one engineering office and one roof space that have no Annual U/W Base Rent or lease expiration date.

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

The following table presents historical occupancy percentages at the Northchase Office Portfolio Properties:

Historical Occupancy

12/31/2014⁽¹⁾⁽²⁾		12/31/2015⁽¹⁾⁽²⁾		12/31/2016⁽¹⁾		12/31/2017⁽¹⁾		12/1/2018⁽³⁾
84.2%		91.2%		94.1%		91.6%		94.1%

(1)	Information obtained from a third-party market research provider.

(2)	The increase in occupancy from 2014 to 2015 is attributed to six new leases signed at the Northchase Office Portfolio Properties between April 2014 and November 2014 totaling approximately 17.8% of net rentable area.

(3)	Information obtained from the underwritten rent roll.

Operating History and Underwritten Net Cash Flow. The following table presents certain information relating to the historical operating performance and underwritten net cash flow at the Northchase Office Portfolio Properties:

Cash Flow Analysis⁽¹⁾

	2017⁽²⁾	TTM 10/31/18	U/W	%⁽³⁾	U/W $ per SF
Base Rent	$4,027,954	$4,253,817	$4,391,303	90.0%	$17.17
Contractual Rent Steps⁽⁴⁾	0	0	110,475	2.3	0.43
Grossed Up Vacant Space	0	0	279,364	5.7	1.09
Gross Potential Rent	$4,027,954	$4,253,817	$4,781,142	98.0%	$18.70
Other Income⁽⁵⁾	11,636	12,195	10,334	0.2	0.04
Total Recoveries	92,449	86,972	86,972	1.8	0.34
Net Rental Income	$4,132,039	$4,352,985	$4,878,448	100.0%	$19.08
(Vacancy & Credit Loss)	0	0	(406,813)⁽⁶⁾	(8.5)	(1.59)
Effective Gross Income	$4,132,039	$4,352,985	$4,471,635	91.7%	$17.49

Real Estate Taxes	290,380	292,389	350,674	7.8	1.37
Insurance	43,225	45,620	42,504	1.0	0.17
Management Fee	165,100	169,900	134,149	3.0	0.52
Other Operating Expenses	1,204,416	1,432,358	1,432,358	32.0	5.60
Total Operating Expenses	$1,703,121	$1,940,268	$1,959,685	43.8%	$7.66

Net Operating Income	$2,428,917	$2,412,716	$2,511,950	56.2%	$9.82
Replacement Reserves	0	0	64,854	1.5	0.25
TI/LC	0	0	186,692	4.2	0.73
Net Cash Flow	$2,428,917	$2,412,716	$2,260,404	50.5%	$8.84

NOI DSCR	2.45x	2.43x	2.53x
NCF DSCR	2.45x	2.43x	2.28x
NOI Debt Yield	12.5%	12.4%	12.9%
NCF Debt Yield	12.5%	12.4%	11.6%

(1)	The borrower sponsor acquired the Northchase Office Portfolio Properties in 2016 and 2017. 2016 financials were not made available by the prior owner.

(2)	2017 includes full-year 2017 values for the Crestwood and Northchase properties and the trailing 11-month period ending December 31, 2017, annualized, values for the Mansell property.

(3)	Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(4)	Represents contractual rent steps through February 2020 (see “Major Tenants” table above).

(5)	Other Income includes application fees, late fees, deposit forfeit, and other miscellaneous income.

(6)	The underwritten economic vacancy is 8.5%. The Northchase Office Portfolio Properties were 94.1% occupied as of December 1, 2018.

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

Appraisal.The appraiser concluded to an aggregate “as-is” appraised value for the Northchase Office Portfolio Properties of $30,450,000 as of valuation dates from November 5, 2018 to November 9, 2018.

Environmental Matters. According to Phase I environmental site assessments dated from November 8, 2018 to November 9, 2018, there was no evidence of any recognized environmental conditions at any of the Northchase Office Portfolio Properties.

Market Overview and Competition.The Northchase Office Portfolio Properties are located in the northern suburbs of the greater Atlanta market.

Northchase– The Northchase property is located in Marietta, Georgia, approximately 16.3 miles northwest of the Atlanta central business district (“CBD”) and 23.2 miles northwest of the Hartsfield-Jackson Atlanta International Airport (“ATL Airport”), the busiest airport in the world by total take-off and landing in 2017 and by total passenger traffic in 2017, per third-party news and market research providers. The Northchase property is located 0.9 miles southeast of Interstate 75, 3.3 miles northwest of SunTrust Park (home of the Major League Baseball Atlanta Braves) and 9.3 miles southeast of Town Center at Cobb, a Simon-owned regional mall anchored by Macy’s and Belk.

According to a third-party market research report, the Northchase property is situated within the Cumberland/Galleria submarket of the Atlanta Office Market. As of February 2019, the Cumberland/Galleria Office submarket reported a total inventory of approximately 30.6 million square feet with a 14.4% vacancy rate, which has decreased from 17.6% in 2011. The submarket reported a $24.52 per square foot gross market rent.

Crestwood– The Crestwood property is situated in Duluth, Georgia, approximately 1.0 mile east of Interstate 85, 23.2 miles northeast of the Atlanta CBD and 31.4 miles northeast of the ATL Airport. The Crestwood property is located approximately 1.1 miles south of Mall Corners Shopping Center (a 190,000 square foot center that features Furniture Mall and Men’s Warehouse) and 4.1 miles southwest of Sugarloaf Mills, which includes Bass Pro Shops Outdoor World, OFF 5th Saks Avenue Outlet, Off Broadway Shoes, Adidas, Nike Factory Store, and Burlington Coat Factory.

According to a third-party market research report, the Crestwood property is situated within the Duluth/Suwanee/Buford submarket of the Atlanta Office Market. As of February 2019, the Duluth/Suwanee/Buford Office submarket reported a total inventory of 16.9 million square feet with a 14.1% vacancy rate, which has decreased from 17.9% in 2012. The submarket reported a $21.00 per square foot gross market rent.

Mansell– The Mansell property is situated in Roswell, Georgia, approximately 23.9 miles north of the Atlanta CBD and 31.2 miles north of the ATL Airport. The Mansell property is located 3.1 miles west of North Point Mall, a 1.1 million square foot Brookfield-owned super regional mall that features Macy’s, Dillard’s, Von Maur and a 12-screen AMC Theatres.

According to a third-party market research report, the Mansell property is situated within the N Fulton/Forsyth County submarket of the Atlanta Office Market. As of February 2019, the N Fulton/Forsyth County Office submarket reported a total inventory of 37.3 million square feet with an 11.8% vacancy rate, which has decreased from 16.7% in 2010. Within a one-mile radius of the Mansell property, as of year-end 2018, there were 223 office properties totaling approximately 1.8 million square feet with a 5.4% vacancy rate, per a third-party market research provider. The submarket reported a $22.53 per square foot gross market rent.

The following table presents certain information relating to the appraiser’s market rent conclusion for the Northchase Office Portfolio Properties:

Market Rent Summary⁽¹⁾

	Northchase	Crestwood	Mansell
Market Rent (PSF)	$18.50	$18.50	$18.00
Lease Term (Years)	5	5	5
Concessions	3 mos.	3 mos.	3 mos.
Lease Type (Reimbursements)	Full Service	Full Service	Full Service
Rent Increase Projection	3.0% per annum	3.0% per annum	3.0% per annum
Tenant Improvements (New Tenants) (PSF)	$10.00	$10.00	$10.00
Tenant Improvements (Renewals) (PSF)	$2.00	$2.00	$2.00

(1)	Information obtained from the appraisals.

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

The table below presents certain information relating to comparable sales, which pertain to all of the Northchase Office Portfolio Properties identified by the appraiser:

Comparable Sales⁽¹⁾

Property Name	Location	Rentable Area (SF)	Sale Date	Sale Price	Sale Price (PSF)
Founders Park at Northmeadow	Alpharetta, GA	202,341	Jul-18	$23,011,375	$113.73
Huntcrest A+B	Lawrenceville, GA	162,430	Jul-18	$19,500,000	$120.05
Pavillion Center	Roswell, GA	44,714	Feb-18	$4,850,000	$108.47
Barrett Court	Kennesaw, GA	32,378	Jan-18	$3,750,000	$115.82
Royal 400 Court	Alpharetta, GA	27,272	Jan-18	$3,000,000	$110.00
Kings Landing	Roswell, GA	77,967	May-17	$7,900,000	$101.32

(1)	Information obtained from the appraisals.

Escrows.

Real Estate Taxes – The loan documents require an upfront real estate tax reserve of $163,808 and ongoing monthly real estate tax reserves in an amount equal to one-twelfth of the real estate taxes that the lender estimates will be payable during the next twelve months (initially $30,676).

Insurance – The loan documents do not require ongoing monthly escrows for insurance premiums as long as (i) no event of default has occurred and is continuing, (ii) the borrower or borrower affiliate provides the lender with evidence that the Northchase Office Portfolio Properties’ insurance coverage is included in a blanket policy and such policy is in full force and effect and (iii) the borrower pays all applicable insurance premiums and provides the lender with evidence of timely payment of insurance premiums/renewals.

Immediate Repair Reserve –The loan documents require an upfront reserve of $44,750 for various specified repairs required to be completed between 90 days and six months from loan origination.

Replacement Reserve – The loan documents require ongoing monthly Replacement Reserves of $5,405, which the lender may require the borrower to increase (not more than once per year) if the lender reasonably determines such increase is necessary to maintain the proper operation of the Northchase Office Portfolio Properties.

Leasing Reserve –The loan documents require an upfront general tenant improvements and leasing commissions (“TI/LC”) reserve of $271,000 and ongoing monthly TI/LC reserves of $20,833, subject to a cap of $750,000.

Gap Rent Reserve – The loan documents require an upfront reserve of $66,819 for gap rent related to So He Moon, Clickagy, Ameriprise, Brown & Brown and Virguez & Associates.

Lockbox and Cash Management.Upon the occurrence and continuance of a Cash Trap Event Period (as defined below), the borrower is required to establish a lender-controlled lockbox account and direct all rent directly into such lockbox account. During a Cash Trap Event Period, funds in the lockbox account are required to be swept to a lender-controlled cash management account and all excess funds are required to be swept to an excess cash flow subaccount controlled by the lender.

A “Cash Trap Event Period” will commence upon the earlier of the following:

(i)

the occurrence and continuance of an event of default; or

(ii)

the net cash flow debt service coverage ratio (“NCF DSCR”) falling below 1.45x at the end of any calendar quarter.

A Cash Trap Event Period will end upon the occurrence of the following:

●

with regard to clause (i), the cure of such event of default; or

●

with regard to clause (ii), the NCF DSCR being greater than or equal to 1.55x for two consecutive calendar quarters.

Property Management. The Northchase Office Portfolio Properties are managed by an affiliate of the Northchase Office Portfolio Borrower.

Partial Release. Following the defeasance lockout date and prior to the open period start date, the borrower may obtain the release of any of the Northchase Office Portfolio Properties,provided that, among other things, and in accordance with the loan documents, (a) no event of default has occurred and is continuing; (b) the Northchase Office Portfolio Mortgage Loan is partially defeased in an amount equal to the greater of (i) 125% of the allocated loan amount of the Northchase Office Portfolio property being released and (ii) the net sale proceeds applicable to such Northchase Office Portfolio property being released; (c) the net cash flow debt yield for the remaining Northchase Office Portfolio Properties immediately following the release is greater than 11.5%; (d) the loan-to-value

Office – Suburban	Loan #9	Cut-off Date Balance:	$19,500,000
Property Addresses – Various	Northchase Office Portfolio	Cut-off Date LTV:	64.0%
		U/W NCF DSCR:	2.28x
		U/W NOI Debt Yield:	12.9%

ratio of the remaining Northchase Office Portfolio Properties, after giving effect to the release of such property is not greater than 60.0%; (e) a legal opinion covering compliance in all respects with all laws, rules and regulations governing REMICs has been delivered; and (f) rating agency confirmation is received.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.Not permitted.

Ground Lease. None.

Terrorism Insurance.The Northchase Office Portfolio Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Northchase Office Portfolio Properties, as well as business interruption insurance covering no less than the 12-month period following the occurrence of a casualty event, together with a 6-month extended period of indemnity.

No. 10 – Catania Pasadena

Mortgage Loan Information					Mortgaged Property Information
Mortgage Loan Seller:		Barclays Capital Real Estate Inc.			Single Asset/Portfolio:	Single Asset
Credit Assessment (DBRS/Fitch/Moody’s):		NR/NR/NR			Property Type – Subtype:	Multifamily – Mid-Rise
Original Principal Balance:		$17,700,000			Location:	Pasadena, CA
Cut-off Date Balance:		$17,700,000			Size:	33 Units
% of Initial Pool Balance:		2.3%			Cut-off Date Balance Per Room	$536,364
Loan Purpose:		Refinance			Maturity Date Balance Per Room:	$536,364
Borrower Sponsor:		SKR Holdings, LLC (f/k/a CIM Group (CA), LLC)			Year Built/Renovated:	2012/NAP
Guarantor:		SKR Holdings, LLC (f/k/a CIM Group (CA), LLC)			Title Vesting:	Fee
Mortgage Rate:		5.3200%			Property Manager:	Self-managed
Note Date:		December 21, 2018			Current Occupancy (As of):	93.9% (11/14/2018)
Seasoning:		2 months			2017 Occupancy⁽³⁾:	94.6%
Maturity Date:		January 1, 2029			2016 Occupancy⁽³⁾:	92.3%
IO Period:		120 months			2015 Occupancy⁽³⁾:	90.3%
Loan Term (Original):		120 months			2014 Occupancy⁽³⁾:	95.5%
Amortization Term (Original):		NAP			Appraised Value:	$31,400,000
Loan Amortization Type:		Interest-only, Balloon			Appraised Value Per Unit:	$951,515
Call Protection:		L(26),D(88),O(6)			Appraisal Valuation Date:	October 31, 2018
Lockbox Type:		Springing			Underwriting and Financial Information
Additional Debt⁽¹⁾:		Yes			TTM NOI (10/31/2018):	$1,334,463
Additional Debt Type (Balance)⁽¹⁾:		Future Mezzanine			YE 2017 NOI:	$1,374,060
					YE 2016 NOI:	$1,499,896
					YE 2015 NOI:	$1,240,072
					U/W Revenues:	$2,453,820
					U/W Expenses:	$1,108,784
					U/W NOI:	$1,345,035
					U/W NCF:	$1,333,485
Escrows and Reserves⁽²⁾					U/W DSCR based on NOI/NCF:	1.40x / 1.39x
	Initial		Monthly	Cap	U/W Debt Yield based on NOI/NCF:	7.6% / 7.5%
Taxes	$0		Springing	NAP	U/W Debt Yield at Maturity based on NOI/NCF:	7.6% / 7.5%
Insurance	$0		Springing	NAP	Cut-off Date LTV Ratio:	56.4%
Replacement Reserve	$0		Springing	NAP	LTV Ratio at Maturity:	56.4%

Sources and Uses
Sources			Uses
Original loan amount	$17,700,000	100.0%	Loan payoff	$13,750,583	77.7%
			Closing costs	341,671	1.9
			Return of equity	3,607,745	20.4
Total Sources	$17,700,000	100.0%	Total Uses	$17,700,000	100.0%

(1) See “Subordinate and Mezzanine Indebtedness” section below.

(2) See “Escrows” section below.

(3) Historical Occupancy figures represent a monthly average for the respective year.

The Mortgage Loan. The mortgage loan (“Catania Pasadena Mortgage Loan”) is evidenced by a single promissory note secured by a first mortgage encumbering the fee interest in a mid-rise multifamily property located in Pasadena, California (the “Catania Pasadena Property”).

The Borrowers and Borrower Sponsors. The borrower is 277 West Green Street (Pasadena) Fee Owner, LLC, a Delaware limited liability company and single purpose entity with one independent director (the “Catania Pasadena Borrower”). The nonrecourse carve-out guarantor and sponsor of the Catania Pasadena Mortgage Loan is SKR Holdings, LLC (f/k/a CIM Group (CA), LLC).

SKR Holdings, LLC is a California limited liability company with ownership interest in over 60 commercial real estate properties in New York and California. SKR Holdings, LLC is comprised of three individuals, Shaul Kuba, Richard Ressler, and Avraham Shemesh, all co-founders and principals of CIM Group. Established in 1994, CIM Group is a real estate investment firm focused on infrastructure development, property management, leasing, asset management, development, acquisition and investment advisory services in major United States metropolitan areas. CIM Group currently owns $29.4 billion of total assets in North America. One of the indirect owners of the Catania Pasadena Borrower is subject to a pending misdemeanor charge for a municipal violation in Los Angeles on a commercial

Multifamily – Mid-Rise	Loan #10	Cut-off Date Balance:	$17,700,000
277 West Green Street	Catania Pasadena	Cut-off Date LTV:	56.4%
Pasadena, CA 91101		U/W NCF DSCR:	1.39x
		U/W NOI Debt Yield:	7.6%

real estate property unrelated to the Catania Pasadena Property. SeeDescription of the Mortgage Pool – Loan Purpose; Default History, Bankruptcy Issues and Other Proceedings”in the Preliminary Prospectus.

The Property.The Catania Pasadena Property is a 33-unit, six-story multifamily property located in Pasadena, California. The Catania Pasadena Property was built in 2012 and is situated on a 0.7 acre parcel. The building includes 23 two-bedroom units and 10 three-bedroom units on floors two through six, with 4,510 square feet of retail space located on the ground floor. All units have 2.5 bathrooms. On-site amenities include 24-hour security, gated parking, a pool and spa, a fitness room and a clubhouse deck located on the sixth floor. Unit amenities include Wolf gas ranges, SubZero refrigerators, Bosch dishwashers and washers and dryers. The Catania Pasadena Property contains 83 parking spaces, resulting in a parking ratio of 2.5 spaces per unit. Regarding the retail space, 3,500 square feet is leased to Yoga Works with a lease expiration date of July 31, 2022.

The following table presents the apartment unit mix of the Catania Pasadena Property:

Apartment Unit Mix Summary⁽¹⁾

Unit Type	No. of Units	% of Total Units	Average Unit Size (SF)	Average Monthly Rent per Unit
Two Bedroom	23	69.7%	2,319	$5,843
Three Bedroom	10	30.3%	2,627	$6,632
Total/Weighted Average	33	100.0%	2,412	$6,082

(1)

Information obtained from underwritten rent roll dated November 14, 2018. There are an additional two commercial units totaling 4,510 square feet.

The following table presents historical occupancy percentages at the Catania Pasadena Property:

Historical Occupancy

12/31/2014⁽¹⁾⁽²⁾	12/31/2015⁽¹⁾⁽²⁾	12/31/2016⁽¹⁾⁽²⁾	12/31/2017⁽¹⁾⁽²⁾	11/14/2018⁽³⁾
95.5%	90.3%	92.3%	94.6%	93.9%

(1)

Information obtained from the Catania Pasadena Borrower.

(2)

Historical Occupancy figures represent a monthly average for the respective year.

(3)

Information obtained from the underwritten rent roll.

Multifamily – Mid-Rise	Loan #10	Cut-off Date Balance:	$17,700,000
277 West Green Street	Catania Pasadena	Cut-off Date LTV:	56.4%
Pasadena, CA 91101		U/W NCF DSCR:	1.39x
		U/W NOI Debt Yield:	7.6%

Cash Flow Analysis

	2015	2016	2017	TTM 10/31/2018	U/W	%⁽¹⁾	U/W $ per Unit
Base Rent	$2,211,395	$2,230,590	$2,307,225	$2,391,677	$2,408,652	91.5%	$72,989
Retail Rent	114,582	118,338	122,533	116,932	127,549	4.8	3,865
Gross Potential Rent	$2,325,977	$2,348,928	$2,429,758	$2,508,609	$2,536,201	96.3%	$76,855
Other Income	70,169	69,866	58,347	44,574	44,574	1.7	1,351
Retail Recoveries	22,662	48,614	56,103	51,652	51,652	2.0	1,565
Net Rental Income	$2,418,808	$2,467,408	$2,544,208	$2,604,835	$2,632,427	100.0%	$79,771
(Vacancy)	(212,017)	(145,377)	(116,562)	(162,462)	(178,607)⁽²⁾	(7.0)	(5,412)
Effective Gross Income	$2,206,791	$2,322,031	$2,427,646	$2,442,372	$2,453,820	93.2%	$74,358

Real Estate Taxes	290,184	121,245	289,133	270,299	276,426	11.3	8,377
Insurance	18,053	19,111	16,948	16,124	15,992	0.7	485
Management Fee	66,092	69,020	70,539	78,736	73,615	3.0	2,231
Other Operating Expenses	592,390	612,759	676,966	742,751	742,751	30.3	22,508
Total Operating Expenses	$966,719	$822,135	$1,053,586	$1,107,909	$1,108,784	45.2%	$33,600

Net Operating Income	$1,240,072	$1,499,896	$1,374,060	$1,334,463	$1,345,035	54.8%	$40,759
Replacement Reserves	0	0	0	0	11,550	0.5	350
TI/LC	0	0	0	0	0	0.0	0
Net Cash Flow	$1,240,072	$1,499,896	$1,374,060	$1,334,463	$1,333,485	54.3%	$40,409

NOI DSCR	1.30x	1.57x	1.44x	1.39x	1.40x
NCF DSCR	1.30x	1.57x	1.44x	1.39x	1.39x
NOI Debt Yield	7.0%	8.5%	7.8%	7.5%	7.6%
NCF Debt Yield	7.0%	8.5%	7.8%	7.5%	7.5%

(1)

Represents (i) percent of Net Rental Income for all revenue fields, (ii) percent of Gross Potential Rent for Vacancy & Credit Loss and (iii) percent of Effective Gross Income for all other fields.

(2)

The underwritten economic vacancy is 6.8%. The Catania Pasadena Property was 93.9% leased as of November 14, 2018.

Appraisal.The appraiser concluded an “as-is” appraised value of $31,400,000 as of October 31, 2018.

Environmental Matters.According to a Phase I environmental site assessment dated November 19, 2018, there was no evidence of any recognized environmental conditions at the Catania Pasadena Property.

Market Overview and Competition.According to the appraisal, the Catania Pasadena Property is located within a prestigious residential neighborhood in West Pasadena. The Catania Pasadena Property is bordered by the original Ambassador College Campus to the south, which has been undergoing redevelopment since 1997. The area of the campus located to the west of Interstate 210 has been fully built out with new apartment buildings with an average sales price of approximately $2.2 million. Upon completion of the construction associated with this project along Green Street, the Catania Pasadena Property will have access to the gardens and grounds of the former campus. Additionally, the Catania Pasadena Property is less than a quarter of a mile away from Old Town Pasadena, a major outdoor shopping area with a strong mix of restaurants, bars, hotels and retail tenants. The Catania Pasadena Property is approximately 0.5 miles from the Del Mar Gold Line stop, with stops from Azusa to East Los Angeles with transfers to lines providing access throughout the Los Angeles metro area. Access to the Catania Pasadena Property is provided by Interstate 210, located directly east of the Catania Pasadena Property and by CA-134, located approximately 0.5 miles north of the Catania Pasadena Property. According to the appraisal, the estimated 2018 population within a one-, three-, and five-mile radius is 21,052, 201,561, and 549,666, respectively, and the 2018 estimated median household income within the same radius is $80,692, $77,175, and $74,443, respectively.

Submarket Information –According to a third party research report, the Catania Pasadena Property is located within the Pasadena multifamily submarket. Pasadena is known as one of San Fernando Valley’s premier employment and entertainment hubs, driving multifamily demand. As of the third quarter of 2018, the Pasadena submarket reported a vacancy rate of 4.0% and average effective rent of $2,028 per month. This average effective rent results in a ratio of $2.47 per square foot compared to $2.55 per square foot at the Catania Pasadena Property. Additionally, the Pasadena submarket has experienced a 1.6% increase in asking rent growth year-over-year. As of November 14, 2018, the Catania Pasadena Property was 93.9% occupied.

Multifamily – Mid-Rise	Loan #10	Cut-off Date Balance:	$17,700,000
277 West Green Street	Catania Pasadena	Cut-off Date LTV:	56.4%
Pasadena, CA 91101		U/W NCF DSCR:	1.39x
		U/W NOI Debt Yield:	7.6%

Appraiser’s Comp Set –The appraisal identified five primary comparable rentals for the Catania Pasadena Property totaling 808 units, which reported a weighted average occupancy of 98.9% (excluding Monaco Terrace). The appraisal concluded that the net market rents for the Catania Pasadena Property are $5,600 per month for the two-bedroom units and $6,300 per month for the three-bedroom units. The three two-bedroom units and the two three-bedroom units on the sixth floor achieve a $2,000 and $2,200 premium per month, respectively.

The following table presents certain information relating to comparable sales for the Catania Pasadena Property identified by the appraisal:

Comparable Sales⁽¹⁾

Property Name	Location	Units	Avg. Square Feet per Unit	Sale Date	Sale Price	Sale Price per Unit⁽²⁾
The Highland	Hollywood, CA	76	897	Jul-18	$52,000,000	$684,211
Chelsea Santa Monica	Santa Monica, CA	53	792	Sep-17	$56,784,000	$1,071,396
147 South Doheny Drive	Los Angeles, CA	21	1,119	Jul-17	$16,909,500	$805,214
Larchmont Lofts	Los Angeles, CA	21	1,419	Jun-17	$15,600,000	$742,857

(1)

Information obtained from the appraisal.

(2)

Each of the comparable properties average unit square footage is significantly less than that of the Catania Pasadena Property. After making qualitative adjustment, including for unit size, the appraiser concluded to an adjusted price per unit that ranged from $923,684 to $1,046,779.

The table below presents certain information relating to five comparable multifamily rentals to the Catania Pasadena Property identified by the appraisal:

Comparable Rentals⁽¹⁾⁽²⁾

Property Name	Location	Units	Year Built/Renov.	Distance?	Average Monthly Rent	Property Type	Occupancy
Catania Pasadena – Subject⁽¹⁾	Pasadena, CA	33	2012/NAP	NAP	$6,082	Mid-Rise	93.9%
Residences at Westgate	Pasadena, CA	674	2015/NAP	0.4 miles	$4,053	Low-Rise	99.0%
The Grove at Ambassador Gardens	Pasadena, CA	21	2015/NAP	0.4 miles	$8,850	Low-Rise	100.0%
Terra Bella	Pasadena, CA	28	2010/NAP	0.7 miles	$5,100	Mid-Rise	100.0%
Monaco Terrace⁽³⁾	Pasadena, CA	21	2017/NAP	0.8 miles	$5,300	Low-Rise	NAV
Orange Grove Circle Apartments	Pasadena, CA	64	1956/NAV	1.3 miles	$4,688	Low-Rise	97.0%

(1)

Information obtained from the appraisal and the underwritten rent roll dated November 14, 2018.

(2)

According to the appraisal, except for The Grove at Ambassador Gardens (superior) and Terra Bella (similar), each of the comparable rental properties are considered to be inferior to the Catania Pasadena Property.

(3)

The appraiser did not provide units or occupancy figures for the Monaco Terrace comparable rental. Units field is from a third party source.

Escrows.

Taxes -The Catania Pasadena Borrower is required to make monthly payments of one-twelfth of the taxes payable during the next twelve months upon the occurrence of a Triggering Event (as defined below).

Insurance -The Catania Pasadena Borrower is required to make monthly payments equal to one-twelfth of the insurance premiums estimated to be payable for the renewal of coverage upon a Triggering Event or if the borrower does not maintain a blanket policy satisfactory to the lender.

Replacement Reserve -The Catania Pasadena Borrower shall make monthly replacement reserve deposits of $962.50 upon the occurrence of a Triggering Event.

Lockbox and Cash Management.A springing lockbox is required with respect to the Catania Pasadena Mortgage Loan. The springing lockbox will be established upon the first occurrence of a Triggering Event. During the continuance of a Triggering Event, the Catania Pasadena Borrower is required to deposit, or cause to be deposited, all rents into the lockbox account within three business days of receipt. Additionally, upon the occurrence of a Triggering Event, all funds deposited in the lockbox account will be transferred to a cash management account and those funds will be disbursed in accordance with the Catania Pasadena Mortgage Loan documents, with all excess cash flow to be deposited into an excess cash flow reserve to be held as additional security for the Catania Pasadena Mortgage Loan.

Multifamily – Mid-Rise	Loan #10	Cut-off Date Balance:	$17,700,000
277 West Green Street	Catania Pasadena	Cut-off Date LTV:	56.4%
Pasadena, CA 91101		U/W NCF DSCR:	1.39x
		U/W NOI Debt Yield:	7.6%

A “Triggering Event” will commence upon the earliest of:

(i)

an event of default; or

(ii)

the debt service coverage ratio being less than 1.15x on an interest-only basis.

A “Triggering Event” shall be cured (i) upon the end of such event of default or (ii) the debt service coverage ratio being greater than or equal to 1.15x on an interest-only basis.

Property Management.The Catania Pasadena Property is managed by CIM Management, Inc., an affiliate of the Catania Pasadena Borrower.

Partial Release.Not permitted.

Real Estate Substitution.Not permitted.

Subordinate and Mezzanine Indebtedness.At any time after the payment date in March 2021, one or more of the ownership interests in the Catania Pasadena Borrower may obtain at least one permitted mezzanine loan, subject to, the satisfaction of the requirements as set forth in the Catania Pasadena Mortgage Loan documents including: (i) no event of default shall be continuing; (ii) aggregate debt yield must not be less than 7.53%; (iii) aggregate loan-to-value ratio must not be greater than 56.4%; (iv) aggregate debt service coverage ratio must not be less than 1.40x; (v) term must be coterminous with senior mortgage or longer;(vi) rating agency confirmation; (vii) the execution of a customary intercreditor agreement acceptable to the lender in its reasonable discretion, (viii) the Catania Pasadena Borrower pays all lender’s and rating agency expenses, and (ix) the Catania Pasadena Borrower’s rights are subject and subordinate to the lender’s rights to amend the loan.

Ground Lease.None.

Terrorism Insurance.The Catania Pasadena Mortgage Loan documents require that the “all risk” insurance policy required to be maintained by the Catania Pasadena Borrower provides coverage for terrorism in an amount equal to the full replacement cost of the Catania Pasadena Property, as well as business interruption insurance covering no less than the 12-month period following the occurrence of a casualty event, together with a six-month extended period of indemnity (provided that if TRIPRA or a similar statute is not in effect, the Catania Pasadena Borrower will not be obligated to pay terrorism insurance premiums in excess of two times the premium for the casualty and business interruption coverage on a stand-alone basis).

Wells Fargo Commercial Mortgage Trust 2019-C49

Transaction Contact Information

VI. Transaction Contact Information

Questions regarding this Structural and Collateral Term Sheet may be directed to any of the following individuals:

Wells Fargo Securities, LLC

Brigid Mattingly	Tel. (312) 269-3062

A.J. Sfarra	Tel. (212) 214-5613

Alex Wong	Tel. (212) 214-5615

Barclays Capital Inc.

Daniel Vinson	Tel. (212) 528-8224

Brian Wiele	Tel. (212) 412-5780

Wells Fargo Commercial Mortgage Securities FWPFree writing prospectus