SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report: November 19, 1996
(Date of earliest event reported)
Asset Securitization Corporation
(Exact name of registrant as specified in its charter)
Delaware 33-49370 13-3672337
- ----------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
Two World Financial Center, Building B, New York, New York 10281
- -------------------------------------------------------------
Address of Principal Executive Office
Registrant's telephone number, including area code: (212) 667-9300
<PAGE>
Item 5. Other Events.
Attached as Exhibit 1 to this Current Report are certain structural
and collateral term sheets (the "Term Sheets") furnished to Asset
Securitization Corporation (the "Registrant") by Nomura Securities
International, Inc. (the "Underwriter"), the underwriter in respect of the
Registrant's Commercial Mortgage Pass-Through Certificates, Series 1996-MDVI
(the "Certificates"). The Certificates are being Offered pursuant to a
Prospectus and related Prospectus Supplement (together, the "Prospectus"),
which will be filed with the Commission pursuant to Rule 424(b)(5) under the
Securities Act of 1933, as amended (the "Act"). The Certificates have been
registered pursuant to the Act under a Registration Statement on Form S-3
(No. 33-99502) (the "Registration Statement"). The Registrant hereby
incorporates the Term Sheets by reference in the Registration Statement.
The Term Sheets were prepared solely by the Underwriter, and the
Registrant did not prepare or participate in the preparation of the Term Sheets.
Any statement or information contained in the Term Sheets shall be
deemed to be modified or superseded for purposes of the Prospectus and the
Registration Statement by statements or information contained in the Prospectus.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(c) Exhibits
Exhibit 1. Term Sheets.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of the Registrant
by the undersigned thereunto duly authorized.
ASSET SECURITIZATION CORPORATION
By: /s/Perry Gershon
-----------------------------
Perry Gershon
Vice President
Date: November 19, 1996
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
- ----------- ----------- -----------
1 99 Term Sheets
<PAGE>
EXHIBIT 1
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
Public Securities:
- -----------------
Ratings Initial
S&P, Balance <F*>
Moody's, In Initial Avg. Mod. Principal PrinWin. DSCR LTV
Class Fitch Millions Coupon Life Dur. Window Graph Implied Implied Sub.
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1A AAA $100 7.xx% 3.8 3.2 12/1996- <F1> 2.59 39% 30%
fixed 11/2003
A-1B AAA $330 7.xx% 7.0 5.4 Bullet <F2> 2.59 39% 30%
fixed 11/2003
A-1C AAA $200 7.xx% 9.8 6.8 11/2003- <F3> 2.59 39% 30%
fixed 10/2007
A-2 AA $45 7.xx% 10.9 7.3 Bullet <F4> 2.32 44% 22%
wac 10/2007
A-3 A $55 7.xx% 10.9 7.3 Bullet <F5> 2.15 47% 16%
wac 10/2007
A-4 BBB $80 7.xx% 10.9 7.2 Bullet <F6> 2.01 50% 10%
wac 10/2007
A-5 BBB- $55 8.xx% 13.9 7.2 11/2007- <F7> 1.92 53% 5.5%
wac 8/2011
CS-1 AAA $100 1.xx% 2.5c 2.2 12/1996-
Moody's, Notional wac 10/2003
Fitch
- ------------------
Private Securities:
- ------------------
CS-2 AAA $762 1.xx% 4.7c 3.9 12/1996-
Moody's, Notional wac 8/2001
Fitch
- --------------------
Sub-Investment Grade:
- --------------------
B-1 BB+ $30 8.xx% 12.2 6.64 1.81 56%
Fitch wac
- -------------------------------------------------------
<FN>
<F*> Coupon will be adjusted monthly for actual day count.
<F1> Prin. Win Graph depicted in hard copy (see p. 4)
<F2> Prin. Win Graph depicted in hard copy (see p. 4)
<F3> Prin. Win Graph depicted in hard copy (see p. 4)
<F4> Prin. Win Graph depicted in hard copy (see p. 4)
<F5> Prin. Win Graph depicted in hard copy (see p. 4)
<F6> Prin. Win Graph depicted in hard copy (see p. 4)
<F7> Prin. Win Graph depicted in hard copy (see p. 4)
</FN>
</TABLE>
Issue:
Asset Securitization Corporation Commercial Mortgage
Pass-Through Certificates, Series 1996-MD VI
The Certificates: $896,300,000 fixed rate CMBS
Rating Agencies: Fitch Investors Service,
Moody's Investors Service,
Standard & Poor's
Lock Out: 100% of the cash flows are locked
out through the term.
Cut-Off Date: December , 1996
Closing Date: December , 1996
First Payment Date: January , 1996
Rated Final
Distribution Date: December , 2026
Servicer: TBD
Trustee: LaSalle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Advancing: Yes-Through liquidation
Minimum
Denomination: $100,000
Delivery: DTC,CEDEL,Euroclear
Web Site: http://www.nomurany.com
Account Name: cmbs
A hard copy is available upon request.
____________________________________________________________________
THE FOLLOWING INFORMATION APPEARS ON EACH PAGE OF THE PAPER
VERSION OF THIS DOCUMENT. HOWEVER, THIS INFORMATION SHALL
APPEAR ON THIS FIRST PAGE ONLY OF THIS EDGAR VERSION.
____________________________________________________________________
[LOGO] NOMURA
11/15/96 DIRECT.DOC
/s/ BMF S-24
/s/ RP S-8
Prospective investors are advised to carefully read, and should rely
solely on, the final prospectus and prospectus supplement (the "Final
Prospectus") relating to the securities referred to herein in making their
investment decision. This Structural and Collateral Term Sheet does not
include all relevant information relating to the securities and collateral
described herein, particularly with respect to the risks and special
considerations associated with an investment in such securities. All
structure and collateral information contained herein is preliminary and
it is anticipated that such information will change. Any information
contained herein will be more fully described in, and will be fully
superseded by, the description of the collateral and structure in the
prospectus supplement and Final Prospectus. Although the information
contained in this Structural and Collateral Term Sheet is based on sources
which Nomura Securities International, Inc. ("Nomura") believes to be
reliable, Nomura makes no representation or warranty that such information
is accurate or complete. Such information should not be viewed as
projections, forecasts, predictions or opinions with respect to value, the
actual rate or timing of principal payments or prepayments on the
underlying assets or the performance characteristics of the securities.
Nomura and its affiliates may in the future have a position in the
securities discussed herein and may purchase or sell the same on a
principal basis or as agent for another person. In addition, Nomura may
act as an underwriter of such securities, and Nomura and certain of its
affiliates may currently be providing investment banking and other
services to the issuer of such securities and the borrowers described
herein and their affiliates. Prior to making any investment decision, a
prospective investor shall receive and fully review the Final Prospectus.
NOTHING HEREIN SHOULD BE CONSIDERED AN OFFER TO SELL OR SOLICITATION OF AN
OFFER TO BUY ANY SECURITIES. All appraised values were obtained from
appraisals conducted within the past year.
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
<TABLE>
<CAPTION>
The Loans:
- ---------
Debt/ Eff.
Property Amount Type Props NCF Rate Amort DSCR LTV Units Unit Term
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prime Factory
Retail 359,000,000 Outlet 16 55,182,804 <F*> 360 1.71 61% 4,370,217 $72.38 84
Factory
HGI 99,300,000 Outlet 5 17,038,106 9.06% 360 1.77 55% 1,247,907 $79.56 120
Office/
Palmer Retail/
Square 36,000,000 Hotel 1 6,862,075 8.09% 300 2.04 51% N/A N/A 132
Full
Service
Marriott 266,000,000 Hotels 4 55,876,956 8.22% 240 2.06 49% 3,411 $77,983 132
Full
Columbia Service
Sussex 136,000,000 Hotels 12 24,808,887 8.87% 240 1.71 57% 3,588 $37,904 180
----------- -- ----------- ---- --- ---- -- --------- ------- ---
Total: 896,300,000 38 159,768,828 304 1.83 56% 119
=========== == =========== === === ==== == ===
<FN>
<F*> Prime rate for years 1-2 is 1 month LIBOR + 151, the rate for years 3 - 7 is 7.78%
</FN>
</TABLE>
<TABLE>
<CAPTION>
The Collateral
- --------------
# of Cut-off % of
Property Type Props Loan Amount Pool
- -----------------------------------------------
<S> <C> <C> <C>
Factory Outlet 21 458,300,000 45%
Hotel 16 402,000,000 41%
Office/Retail/Hotel 1 36,000,000 4%
-- ----------- ----
38 896,300,000 100%
== =========== ====
</TABLE>
GEOGRAPHIC DIVERSIFICATION
- --------------------------
(38 PROPERTIES)
(21 STATES)
ALABAMA------------------1%
CALIFORNIA---------------13%
COLORADO-----------------6%
FLORIDA------------------9%
GEORGIA------------------3%
ILLINOIS-----------------3%
INDIANA------------------2%
KENTUCKY-----------------5%
LOUISIANA----------------12%
MARYLAND-----------------2%
MICHIGAN-----------------1%
MISSOURI-----------------2%
MISSISSIPPI--------------2%
NORTH CAROLINA-----------2%
NEBRASKA-----------------2%
NEW JERSEY---------------7%
NEW MEXICO---------------7%
NEW YORK-----------------3%
OHIO---------------------3%
PENNSYLVANIA-------------4%
TEXAS--------------------21%
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
Call Protection:
- ---------------
Number of Years
---------------------------------------------------------------
12/96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prime Retail * * * * * * *
HGI * * * * * * * * * *
Palmer Square * * * * * * * * * *
Marriott * * * * * * * * * * *
Columbia
Sussex * * * * * * * * * * * * * * *
- ------------------
Note: Chart shows lock-out to the effective term of each loan.
</TABLE>
<TABLE>
<CAPTION>
Underwriting:
- ------------
Loan Principal Manager Lock Cross
Pool Repayment Removal Box Collateralization Reporting
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Prime Retail Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
HGI Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
Palmer Square Effective Balloon YES Hard N/A Monthly, Quarterly & Yearly
Marriott Effective Balloon NO NA<F*> YES Monthly, Quarterly & Yearly
Columbia Sussex Effective Balloon YES Hard YES Monthly & Yearly
- ---------------------
<FN>
<F*> There is no lockbox required as long as Marriott's
credit rating remains "A" or better.
</FN>
</TABLE>
Definitions:
Effective Balloon: At the anticipated repayment date, if the
Borrower fails to repay the loan, while
not an event of default, 100% of the cash
flows from the properties are trapped
to pay down the remaining principal balance.
In addition, the interest rate steps up and
additional interest in excess of the initial
interest rate accrues and is deferred until
the principal has been reduced to zero.
Thereafter, all such cash flows will be applied
to the reduction of deferred additional interest.
Manager Removal: In general, upon default by Borrower under the
Mortgage Loan or dropping below some preset
DSCR standard.
Lock Box: HARD LOCK BOX requires revenues to be payable
by the tenants directly to a cleaning
account which is swept into a collection
account maintained by the servicer. In the
case of Hotel Loans, all credit card receipts
go directly to a cleaning account while the
manager is required to deposit all other revenues
into a cleaning account which is swept into the
collection account.
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
The hard copy version of this document displays a graph depicting
Principal Bonds' Cash Flows (Principal Only) and has been
modified for this EDGAR filing as a table of the same information
as follows:
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
- -----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
B1 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $35.83
A6 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $4.85 $7.22 $7.90 $33.77
A5 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $11.70$1.73 _____ _____ _____
A4 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $67.18 _____ _____ _____ _____
A3 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $53.74 _____ _____ _____ _____
A2 = ____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____ $44.79 _____ _____ _____ _____
A1C= ____ _____ _____ _____ _____ _____ _____ $0.00$14.83$16.28$108.57$57.40 _____ _____ _____ _____
A1B= ____ _____ _____ _____ _____ _____ _____ $331.79_____ _____ _____ _____ _____ _____ _____ _____
A1A= $0.00 $8.03$13.50$13.15$14.10$15.54$16.90 $16.90 _____ _____ _____ _____ _____ _____ _____ _____
</TABLE>
The hard copy version of this document displays a graph depicting
Loan Principal Cash Flows and has been modified for this EDGAR
filing as a table of the same information as follows:
<TABLE>
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
- -----------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Prime
Retail ____ $4.22 $4.55 $3.39 $3.60 $3.97 $4.30 $334.97_____ _____ _____ _____ _____ _____ _____ _____
Palmer
Square ____ $0.42 $0.46 $0.50 $0.53 $0.59 $0.64 $0.69 $0.74 $0.81 $0.88 $29.74 _____ _____ _____ _____
HGI ____ $0.54 $0.60 $0.65 $0.69 $0.78 $0.86 $0.94 $1.00 $1.13 $92.07 _____ _____ _____ _____ _____
MHP2 ____ $0.38 $5.20 $5.65 $6.08 $6.67 $7.24 $7.87 $8.50 $9.29 $10.09$199.03 _____ _____ _____ _____
Columbia
Sussex ____ $2.47 $2.70 $2.95 $3.20 $3.53 $3.86 $4.22 $4.59 $5.05 $5.52 $6.04 $6.58 $7.22 $7.90 $69.60
</TABLE>
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
Prime Retail
- ------------
Principal Amount: $359,000,000
Origination Date: November 1, 1996
Interest Rate: 1mo LIBOR+151 Yrs 1-2
7.782% Yrs 3-7
Amortization: 360 mos.
Effective Maturity: 84 mos.
Call Protection: Locked out for Eff. Term
Release of Collateral:
- - Defeasance of 125% of the allocated loan balance
- - DSCR greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $55,182,804
Adjusted as of 10/96
Debt Service Coverage Ratio: 1.71X
Appraised Value: $622,400,000
Loan to Value: 51%
Loan Per Square Foot: $72.38
Cross-Collateralization/
Default: Fully Crossed
The Borrower:
- ------------
- - The borrower is a special purpose limited partnership substantially
controlled by Prime Retail, Inc., a publicly traded REIT ("PRME").
The Properties:
- --------------
- - 16 factory outlet centers located in 12 different states and
comprising over 4.4 million square feet.
- - The Collateral represents substantially all of Prime's wholly
owned assets.
- - The weighted average occupancy of the pool is 93% and includes
such national tenants as Polo, Nike, Ann Taylor, J. Crew, Reebok,
Brooks Brothers, Levi's and Coach.
<TABLE>
<CAPTION>
Square Occ. 1995
Property Location Feet 11/96 Occ.
- -------------------------------------------------------------
<S> <C> <C> <C> <C>
Coral Isle Naples, FL 126,595 98% 99%
Gulf Coast Ellenton, FL 340,226 99% 99%
Ohio Jeffersonville, OH 300,536 98% 98%
San Marcos San Marcos, TX 419,126 98% 93%
Triangle Morrisville, NC 188,789 87% 96%
Nebraska Gretna, NE 191,544 96% 97%
Castle Rock Castle Rock, CO 369,220 99% 98%
Gainesville Gainesville, TX 315,627 94% 92%
Huntley Huntley, IL 280,439 80% 92%
Florida Keys Florida City, FL 207,131 93% 91%
Indiana Daleville, IN 209,090 84% 82%
Magnolia Bluff Darien, GA 298,433 86% 88%
Gulfport Gulfport, MS 225,916 94% 74%
Loveland Loveland, CO 328,358 98% 100%
Kansas City Kansas City, KS 190,589 96% 100%
Grove City Grove City, PA 415,670 99% 95%
--------- -- --
Totals: 4,407,289 93% 94%
========= == ==
</TABLE>
Management:
- ----------
- - The properties are managed by Prime Retail.
Up Front Reserves: $174,606
On-Going Cap. Ex. Reserve: $0.20/sf
Expansion Escrow: $40,000,000
An up-front reserve was put in place to fund expansion
to existing centers. The funds will be released provided
there is a minimum NOI based on leases in place with
national tenants who have been in place for at least 3
months. In addition, the borrower must provide a "no
downgrade" letter from the rating agencies.
Collection Account: Hard Lock Box
Removal of Manager:
- - Event of a default
- - DCSR drops below 1.15X.
Reporting Requirements:
- - Certified monthly and quarterly property
operating statements
- - Annual audited financial statements
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
STRUCTURAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
1995
Year Allocated Appraised U/W Cash TTM NOI as Sales Occ
Property Built Loan Amount Value flow of 9/96 1995 NOI PSF Cost
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Coral Isle 1991 9,179,045 16,373,394 6,315,022 7,012,071 5,138,799 $183 13%
Gulf Coast 1991 22,583,364 39,759,993 5,937,324 6,700,253 6,457,605 $257 9%
Ohio 1993 21,782,019 38,936,960 5,488,196 6,951,159 6,745,118 $205 10%
San Marcos 1990 30,305,418 56,694,700 4,600,710 4,705,420 4,590,387 $268 8%
Triangle 1991 13,768,567 16,186,471 4,034,904 4,488,735 4,402,280 $362 5%
Nebraska 1993 13,987,116 18,668,297 4,072,208 4,387,100 3,661,941 $151 11%
Castle Rock 1992 26,954,338 51,146,895 3,890,063 3,610,613 1,816,721 $281 8%
Gainesville 1993 23,020,462 36,962,958 3,734,676 4,753,672 4,677,293 $180 12%
Huntley 1994 20,543,576 29,045,870 3,274,830 2,764,821 484,312 $173 13%
Florida
Keys 1994 15,152,709 23,029,350 2,706,209 3,011,931 2,676,251 $159 15%
Indiana 1994 15,152,709 21,929,733 2,369,767 2,579,221 2,731,432 $151 14%
Magnolia
Bluff 1995 21,854,869 38,332,710 2,335,213 2,831,484 1,154,062 N/A 9%
Gulfport 1995 16,609,700 29,422,107 2,159,869 2,436,238 2,189,745 N/A 6%
Loveland 1994 23,920,736 35,310,800 1,842,044 2,219,757 2,245,991 N/A N/A
Kansas City 1995 13,903,995 20,358,276 1,674,634 1,831,318 1,851,199 N/A N/A
Grove City 1994 30,281,377 53,392,000 1,813,056 1,794,860 1,594,547 $323 8%
----------- ----------- ---------- ---------- ----------
Totals: 319,000,000 525,550,514 56,248,725 62,078,653 52,417,683
=========== =========== ========== ========== ==========
* Sales figures are based on annualized numbers
</TABLE>
<TABLE>
<CAPTION>
Lease Expiration Analysis:
- -------------------------
# of Occupied % of Annualized % of
Year Leases SF Occ SF Base Rent ABR
- -------------------------------------------------
<C> <C> <C> <C> <C> <C>
1996 15 33,262 0.7% $474,402 0.8%
1997 93 283,116 6.4% $3,808,214 6.5%
1998 142 447,809 10.1% $6,692,747 11.4%
1999 213 698,611 15.7% $10,130,995 17.2%
2000 291 929,270 20.9% $14,006,454 23.8%
2001 211 693,765 15.6% $10,561,929 17.9%
2002 77 255,195 5.7% $3,701,651 6.3%
2003 24 153,718 3.5% $2,013,236 3.4%
2004 37 224,123 5.0% $2,716,648 4.6%
2005 38 215,402 4.8% $2,779,014 4.7%
2006 10 162,503 3.7% $1,510,651 2.7%
MTM 13 45,098 1.0% $459,699 0.8%
--------- -----------
Total: 4,141,872 58,855,640
========= ===========
</TABLE>
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
HGI
- ---
Principal Amount: $99,300,000
Origination Date: September 12, 1996
Interest Rate: 9.06%
Amortization: 360 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
- ---------------------
- - Defeasance of 125% of the allocated loan balance
- - DSCR greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $17,038,106
Adjusted as of 7/31/96
Debt Service Coverage
Ratio: 1.77X
Appraised Value: $179,000,000
Loan to Value: 55%
Loan Per Square Foot: $79.56
Cross-Collateralization/
Default: Fully Crossed
The Borrower:
- ------------
- - The borrower is a special purpose, bankruptcy remote
entity controlled by Horizon Group, Inc., a publicly
traded REIT ("HGI").
- - HGI is engaged primarily in the ownership, development,
construction, acquisition, leasing, marketing and
management of factory outlet centers throughout the U.S.
- - As of 9/96, HGI had a total market cap. of $945.6 mm.
- - HGI owned and operated 35 factory outlet centers
containing approximately 8.5 mm SF, as of 3/96.
The Properties:
- --------------
- - The collateral consists of 5 factory outlet centers
located in 3 states.
<TABLE>
<CAPTION>
Square Occ. 1995 1994
Property Location Feet 9/96 Occ Occ
- ---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lake Elsinore Lake Elsinore, CA 368,785 92% 90% 96%
Southwest Hillsboro, TX 359,455 98% 97% 99%
Chesapeake Queenstown, MD 219,307 100% 97% 97%
Tracy Tracy, CA 153,000 98% 92% 92%
Pismo Beach Pismo Beach, CA 147,560 96% 92% 55%
------- -- -- --
Total: 1,248,107 96% 94% 92%
========= == == ==
</TABLE>
<TABLE>
<CAPTION>
Property Built Loan Amt Value PSF Cost
- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lake Elsinore 91-96 $29,500,000 $58,300,000 $232 10%
Southwest 89-95 $28,500,000 $46,500,000 $220 8%
Chesapeake 89-93 $17,400,000 $30,000,000 $269 6%
Tracy 1994 $12,100,000 $21,400,000 $174 12%
Pismo Beach 1994 $11,800,000 $22,800,000 $190 12%
y ----------- -----------
Total: $99,300,000 $179,000,000
=========== ===========
</TABLE>
<TABLE>
<CAPTION>
U/W Net TTM NOI
Property Cash Flow as of 7/96 1995 NOI 1994 NOI
- ---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lk Elsinore $5,599,754 $5,766,338 $5,401,648 $5,047,250
Southwest $4,531,249 $4,794,879 $3,806,803 $2,868,991
Chesapeake $2,851,296 $3,149,524 $3,214,676 $3,070,607
Tracy $1,879,112 $2,257,289 $2,370,544 $421,369
Pismo Bch $2,176,694 $2,231,629 $1,763,734 $73,518
----------- ----------- ----------- -----------
Total: $17,038,106 $18,199,659 $16,557,405 $11,481,735
=========== =========== =========== ===========
</TABLE>
Management:
- ----------
- - The properties are managed by Horizon/Glen Outlet
Centers LP, the sole limited partner of the borrower.
Up Front Reserves: $61,000
On-Going Cap.
Ex. Reserve: $0.50 psf
Collection Account: Hard Lock Box
Removal of Manager:
- - Event of a default
- - DCSR drops below 1.15X
If a tenant is moved from a collateral center to
an adjacent center owned by an affiliate of the
borrower
Reporting Requirements:
- ----------------------
- - Certified monthly and quarterly property operating statements
- - Annual audited financial statements
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
Lease Expiration Analysis:
- --------------------------
% of Annualized
Year Occupied SF Occ SF Base Rent % of ABR
- ------------------------------------------------------
<C> <C> <C> <C> <C>
1996 39,980 3.2% $691,835 3.7%
1997 101,355 8.1% $1,723,385 9.2%
1998 109,694 8.8% $1,873,774 10.0%
1999 208,005 16.7% $3,627,662 19.4%
2000 232,271 18.6% $3,911,878 20.9%
2001 226,273 18.1% $3,357,369 17.9%
2002 66,845 5.4% $978,710 5.2%
2003 60,272 4.8% $760,115 4.1%
2004 29,032 2.3% $413,498 2.2%
2005 53,200 4.3% $565,280 3.0%
2006 47,500 3.8% $593,500 3.2%
2009 12,000 1.0% $120,000 0.6%
2010 15,000 1.2% $120,000 0.6%
--------- ---- ------------ ----
Total/WA 1,248,107 100% $18,737,006 100%
========= ==== ============ ====
</TABLE>
<TABLE>
<CAPTION>
Largest Tenants Analysis:
- ------------------------
Annualized
Tenant # of Stores SF % of SF Base Rent % of ABR
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VF Factory Outlet 2 49,572 4.0% $ 495,720 2.6%
Liz Claiborne 4 41,000 3.3% $ 460,000 2.5%
Levi's 4 35,600 2.9% $ 519,700 2.8%
Nike 4 30,200 2.4% $ 369,480 2.0%
Mikasa 4 30,000 2.4% $ 390,000 2.1%
Bass Company Store 3 24,500 2.0% $ 236,000 1.3%
Corning / Revere
Factory Store 5 22,840 1.8% $ 362,570 1.9%
Reebok Factory Store 2 19,695 1.6% $ 246,645 1.3%
Geoffrey Beene 4 19,650 1.6% $ 331,000 1.8%
Bugle Boy Outlet 3 18,950 1.5% $ 170,825 0.9%
Others 281 909,420 72.9% $15,155,066 80.9%
Vacant 14 46,680 3.7% - 0.0%
--- --------- ------ ----------- ------
Total 330 1,248,107 100.0% $18,737,006 100.0%
=== ========= ====== =========== ======
</TABLE>
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
Palmer Square
- -------------
Principal Amount: $36,000,000
Origination Date: TBD
Interest Rate: 8.09%
Amortization: 300 months
Effective Maturity: 132 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
- - Defeasance of a minimum of 125% of the allocated
loan balance
- - DSCR greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $6,862,075
Adjusted as of 5/96
Debt Service Coverage
Ratio: 2.04X
Appraised Value: $70,800,000
Loan to Value: 51%
Cross-Collateralization/
Default: Fully Crossed
The Borrower:
- - The borrower is comprised of three special purpose
limited partnerships substantially controlled by Ed
Aboodi.
The Collateral:
- - The collateral consists of a 7 building complex
comprised of a hotel, an office building, a retail
center and parking facilities located in Princeton, NJ.
- - The retail comprises 38% of Net Cash Flow, the office
comprises 19%, the hotel comprises 31% and parking
comprises 12%.
Retail Component:
- - The property contains 102,485 SF of in-line retail
space with tenants including Ann Taylor, The Gap, JB
Winberies, Talbots, Banana Republic and Nine West.
- - The valuation of the retail component is $32,100,000.
- - 1995 Sales were $32,347,758 with Sales psf of $466.
1994 Sales were $32,161,894 with Sales psf of $464.
<TABLE>
<CAPTION>
U/W TTM 5/96 1995 1994
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
NOI 2,613,278 2,507,807 2,318,317 2,326,259
Occ 93% 93% 94% 97%
</TABLE>
Office Component:
- - The property contains 130,502 SF of office space that
generates $24.10 rent psf.
- - The valuation of the office component is $19,800,000.
<TABLE>
<CAPTION>
U/W TTM 5/96 1995 1994
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
NOI 1,313,375 1,897,549 1,786,108 1,611,120
Occ 89% 97% 97% 90%
</TABLE>
Hotel Component:
- - The property contains 216 hotel rooms.
- - The valuation of the hotel component is $18,900,000.
<TABLE>
<CAPTION>
U/W TTM 5/96 1995 1994
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
NOI 2,126,667 2,862,898 2,552,344 2,337,652
Occ 66% 67% 66% 66%
ADR $122.25 $122.25 $117.72 $109.35
</TABLE>
Parking Component:
- - The property contains 994 parking spaces.
- - The valuation of the parking is included in the
appraised values of the retail and office components.
<TABLE>
<CAPTION>
U/W TTM 5/96 1995 1994
- ----------------------------------------------------------
<S> <C> <C> <C> <C>
NOI 808,754 853,302 736,157 673,467
</TABLE>
Management:
- - The property manager is an affiliate of the borrower.
Up Front Reserves: TBD
On-Going Cap. Ex. Reserve: $0.25 psf for retail
$0.50 psf for office
4% of hotel revenues
Collection Account: Hard Lockbox
If DSCR is greater than 1.80X, then a two month debt
service reserve is maintained instead of a lockbox.
Removal of Manager:
- - Event of a default
- - DCSR drops below 1.05X.
Reporting Requirements:
- - Certified monthly and quarterly property operating statements
- - Annual audited financial statements
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
Marriott
- --------
Principal Amount: $266,000,000
Origination Date: September 23, 1996
Interest Rate: 8.22%
Amortization: 12 Mos. IO then
240 Mos. Amort Schedule
Effective Maturity: 132 Months
Call Protection: Locked out for Eff. Term
Release of Collateral:
- - Defeasance of 125% of the allocated loan balance except
that with respect to a sale of Santa Clara the excess
over the allocated loan balance will not exceed the sale
proceeds.
- - DSCR must be greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $55,876,956
Adjusted as of 9/6/96
Debt Service
Coverage Ratio: 2.06X
Appraised Value: $540,400,000
Loan to Value: 49%
Loan Per Room: $77,983
The Borrower:
- - The borrowers are two special purpose limited
partnerships substantially controlled by Host Marriott.
- - Host Marriott owns 45 "Marriott" hotels, 54 "Courtyard"
hotels, 18 "Residence Inns" and 4 "Fairfield Inns". They
are also the general partner in over 265 other hotels.
- - Marriott Hotel Properties II LP ("MHPII") is the borrower
of $222,500,000 and Santa Clara Marriott Hotel LP ("Santa
Clara LP") is the borrower of $43,500,000.
- - Santa Clara LP owns the Santa Clara hotel and MHPII owns
the other three hotels.
Cross-Collateralization/Default:
Both loans are fully cross-defaulted. The Santa Clara LP
loan is fully cross collateralized by the liens on all four
properties. The MHPII loan is secured by liens on the three
hotels owned by MHPII and by a pledge of MHP II s 50%
interest in Santa Clara LP.
<TABLE>
<CAPTION>
The Properties:
- --------------
Property State Rooms Year Built Allocated Loan Amount
- -------------------------------------------------------------------
<S> <C> <C> <C>
New Orleans LA 1,290 1972/78 $106,000,000
San Antonio TX 999 1988 $102,000,000
Santa Clara CA 754 1976/78/91 $43,500,000
San Ramon CA 368 1989 $14,500,000
----- ------------
Totals: 3,411 $266,000,000
===== ============
</TABLE>
<TABLE>
<CAPTION>
Occ. Occ. Occ. ADR ADR ADR
Property 1994 1995 1996 1994 1995 1996
- ----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
New Orleans 81% 85% 85% 123.44 127.66 131.21
San Antonio 79% 78% 77% 117.38 120.30 125.08
Santa Clara 77% 79% 81% 92.08 103.63 113.48
San Ramon 72% 82% 84% 89.99 89.03 94.47
--- --- --- ------ ------ ------
Totals: 78% 81% 81% 111.00 115.55 121.00
=== === === ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
TTM NOI UW Cash
Property 1994 NOI 1995 NOI as of 9/96 flow
- ------------------------------------------------------------------------
<S> <C> <C> <C> <C>
New Orleans 20,633,387 21,320,119 22,295,926 $22,222,690
San Antonio 17,380,857 20,668,037 20,678,212 $18,892,228
Santa Clara 8,695,048 10,806,662 12,022,991 $11,415,114
San Ramon 2,880,384 3,174,765 3,859,668 $3,346,924
----------- ---------- ---------- -----------
49,589,676 55,969,583 58,856,797 $55,876,956
</TABLE>
Management:
- - The hotels are managed by Marriott Hotel
Services, Inc., a subsidiary of Marriott
International.
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
Up Front Reserves: $17,769,865
$1,099,850 in deferred maintenance and environmental
reserves was funded at closing. The remaining funds
are to be used for ongoing capital expenditures,
replacement reserves and for renovations on the New
Orleans property.
On-Going Cap. Ex. Reserve: 5% of annual revenues
The San Antonio and San Ramon hotels require 4% of
annual reserves for the next two years and 5%
thereafter.
Collection Account: Two month Debt Service reserve
required as long as Marriott rating remains "A".
If rating drops to "A-", three month Debt Service
reserve required. If rating drops to "BBB", hard
lockbox put in place.
Reporting Requirements:
- - Certified monthly and quarterly operating statements
- - Annual audited financial statements
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
Columbia Sussex
- ---------------
Principal Amount: $136,000,000
Origination Date: August 8, 1996
Interest Rate: 8.87%
Amortization: 240 months
Effective Maturity: 180 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
- - Defeasance of 125% of the allocated loan balance
- - DSCR greater than the initial DSCR and the DSCR
immediately preceding the release.
Net Cash Flow: $24,808,887
Adjusted as of 8/96
Debt Service
Coverage Ratio: 1.71X
Appraised Value: $239,000,000
Loan to Value: 57%
Cross-Collateralization/
Default: Fully Crossed
The Borrower:
- - The borrower, Grandview Hotel Limited Partnership, is a newly
formed, bankruptcy remote, special purpose limited partnership
indirectly controlled by Columbia Sussex Corporation.
The Collateral:
- - The collateral consists 12 full service hotels containing 3,588
rooms geographically diversified in 8 states.
- - The franchises are strong national franchises including Marriott,
Radisson, Holiday Inn and Best Western.
Management:
- - Columbia Sussex Corp., an experienced hotel operator founded in
1972. As of 9/96, the manager and its affiliates own and operate
43 hotels containing over 10,800 rooms.
- - William Yung is the President, CEO and sole voting shareholder
of the manager.
Up Front Reserves: $8,000,000
On-Going Cap. Ex. Reserve: 4% of total revenues
Collection Account: Hard Lockbox
Removal of Manager:
- - Event of a default
- - DCSR drops below 1.10X
- - Management fee suspended if DSCR drops below 1.40X
Reporting Requirements:
- - Certified monthly property operating statements
- - Annual audited financial statements
<TABLE>
<CAPTION>
Allocated Loan Year Built/ Appraised
Property Location Amounts Renovated Value Rooms
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Holiday Inn Springfield Springfield, Ohio 3,200,000 1973/85 5,400,000 150
Holiday Inn Southfield
(Detroit) Southfield, Michigan 11,360,000 1965/83 22,000,000 417
Holiday Inn Louisville
South Airport Louisville, Kentucky 11,520,000 1960/85 16,600,000 405
Holiday Inn Glen Ellyn Glen Ellyn, Illinois 1,600,000 1967/86 3,700,000 121
Holiday Inn Itasca Itasca, Illinois 5,120,000 1968/86 8,800,000 161
Best Western Eastgate Kissimmee, Florida 9,120,000 1982 12,400,000 403
Radisson Hotel Central
Birmingham Birmingham, Alabama 6,160,000 1972 11,000,000 298
Radisson Lake Buena
Vista Vista Center, Florida 7,280,000 1989 14,600,000 200
Radisson Hotel Orlando
Airport Orlando, Florida 15,520,000 1990 30,300,000 347
Radisson Hotel
Cincinnati Airport Boone County, Kentucky 11,920,000 1960/86 19,300,000 214
Radisson Hotel Newark
Airport Newark, New Jersey 25,840,000 1989 42,600,000 501
Melville Marriott Melville, New York 27,360,000 1990 52,300,000 371
------------- ------------- -----
$ 136,000,000 $ 239,000,000 3,588
============= ============= =====
</TABLE>
<PAGE>
=============================================================
Nomura Securities International, Inc. (212) 667-1545
Commercial Mortgage-Backed Securities
- -------------------------------------------------------------
MEGADEAL(SM) VI - $896,300,000
COLLATERAL TERM SHEET
- --------------------------------------------------------------
All information as of 11/15/96 10:25 am unless otherwise noted
==============================================================
<TABLE>
<CAPTION>
Net Cash Flow
- -------------
Property U/W TTM (8/96) 1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Holiday Inn Springfield $600,371 $891,994 $960,015 $790,969
Holiday Inn Southfield
(Detroit) 1,796,110 2,295,303 2,058,541 1,607,696
Holiday Inn Louisville
South Airport 2,140,369 2,714,086 2,132,848 2,642,197
Holiday Inn Glen Ellyn 267,642 441,891 324,122 436,112
Holiday Inn Itasca 889,110 1,179,821 884,192 891,048
Best Western Eastgate 1,753,706 2,226,389 1,802,021 1,224,499
Radisson Hotel Central
Birmingham 1,283,036 1,702,904 1,143,995 1,024,465
Radisson Lake Buena Vista 1,467,580 1,826,273 1,401,094 1,115,955
Radisson Hotel Orlando
Airport 3,013,682 3,677,240 2,879,846 2,123,118
Radisson Hotel Cincinnati
Airport 2,172,494 2,628,730 2,134,525 1,875,440
Radisson Hotel Newark
Airport 4,404,544 6,355,777 5,314,733 5,402,442
Melville Marriott 5,020,244 6,652,104 5,617,785 4,301,880
----------- ---------- ----------- -----------
$24,808,887 $32,592,512 $26,653,717 $23,435,821
=========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Occupancy ADR
- --------------------------------------------------------------------------------------------
TTM TTM
Property U/W (8/96) 1995 1994 U/W (8/96) 1995 1994
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Holiday Inn Springfield 53% 57% 64% 71% $61.66 $61.66 $57.81 $ 54.15
Holiday Inn Southfield
(Detroit) 44% 44% 48% 42% $65.75 $65.75 $61.06 $ 57.53
Holiday Inn Louisville
South Airport 58% 58% 55% 61% $60.75 $60.75 $59.25 $ 55.69
Holiday Inn Glen Ellyn 56% 56% 57% 56% $58.15 $58.15 $53.62 $ 46.21
Holiday Inn Itasca 58% 58% 58% 55% $66.99 $66.99 $61.97 $ 58.24
Best Western Eastgate 70% 71% 70% 54% $41.04 $41.04 $37.18 $ 38.99
Radisson Hotel Central
Birmingham 61% 61% 57% 49% $56.67 $56.67 $55.06 $ 51.50
Radisson Lake Buena
Vista 75% 75% 74% 65% $70.19 $70.19 $61.12 $ 62.83
Radisson Hotel Orlando
Airport 80% 80% 75% 67% $58.13 $58.13 $53.03 $ 51.16
Radisson Hotel Cincinnati
Airport 73% 73% 66% 70% $66.40 $66.40 $66.21 $ 62.28
Radisson Hotel Newark
Airport 75% 83% 70% 77% $69.26 $69.26 $72.44 $ 65.91
Melville Marriott 72% 72% 70% 62% $107.60 $107.60 $102.08 $ 92.62
--- --- --- --- ------- ------- ------- -------
Weighted Average: 68% 70% 66% 63% $71.63 $ 71.63 $68.86 $ 64.30
=== === === === ======= ======= ======= =======
</TABLE>
