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: February 26, 1997
(Date of earliest event reported)
Asset Securitization Corporation,
Commercial Mortgage Pass-Through Certificates, Series 1997-MDVII
(Exact name of registrant as specified in its charter)
Delaware 33-49370-03 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 1997-MDVII
(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deemed to be modified or superseded for purposes of the Prospectus and the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/ Marlyn Marincas
-----------------------------
Marlyn Marincas
Vice President
Date: February 26, 1997
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
- ----------- ----------- -----------
1 99 Term Sheets
<PAGE>
EXHIBIT 1
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Public Securities:
- ------------------
Ratings Initial Initial Price/ Avg. Mod. Principal Prin. Win DSCR LTV
Class S&P/Moody's/Fitch/Duff Balance Coupon* Spread Life Dur. Window Graph Implied Implied Sub.
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1A AAA $119,615,861 6.94% 101-16 5.35 4.19 4/1997- [GRAPHIC 2.52 40% 31%
fixed 9/2006 OMITTED] **
- ------------------------------------------------------------------------------------------------------------------------------------
A-1B AAA $35,092,135 7.07% 101-16 9.48 6.73 9/2006 [GRAPHIC 2.52 40% 31%
fixed 1/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-1C AAA $190,023,772 7.13% 101-16 9.78 6.76 Bullet [GRAPHIC 2.52 40% 31%
fixed 1/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-2 AA $29,976,675 7.14% 101-16 9.78 6.81 Bullet [GRAPHIC 2.32 44% 25%
wac 1/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-3 A $44,965,013 7.24% 101-16 9.78 6.78 Bullet [GRAPHIC 2.07 49% 16%
wac 1/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-4 BBB $39,968,900 7.41% 101-16 9.81 6.74 1/2007 [GRAPHIC 1.89 53% 8%
wac 3/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
A-5 BBB- $24,980,562 7.71% 101-16 9.95 6.71 Bullet [GRAPHIC 1.79 56% 3%
wac 3/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
CS-1 AAA/AAAr $119,615,861 1.04% 4-28 3.39c 2.92 4/1997 -
Moody's, S&P $5.8 mm wac 9/2006
Proceeds
- ---------------------------------------------------------------------------------------------
CS-2 AAA/AAAr $365,007,057 0.77% 5-24 4.91c 4.14 9/2006 -
Moody's, S&P $21.1 mm wac 3/2007
Proceeds
- ---------------------------------------------------------------------------------------------
Private Securities:
- -------------------
- ------------------------------------------------------------------------------------------------------------------------------------
B-1 BB $14,987,341 7.99% Bullet [GRAPHIC 1.74 58%
Fitch wac 3/2007 OMITTED]**
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Coupon will be adjusted monthly for actual day count.
** Graphic Omitted
Issue:
Asset Securitization Corporation Commercial Mortgage
Pass-Through Certificates, Series 1997-MD VII
The Certificates: $501,000,000 fixed rate CMBS
Rating Agencies: Fitch Investors Service, Moody's Investor Services,
Duff & Phelps Credit Rating Co, Standard & Poor's
Lock Out: 100% locked out through term.
Cut-Off Date: March __, 1997
Closing Date: March __, 1997
First Payment Date: April 13, 1997
Scheduled Final Distribution Date:
Servicer: TBD
Trustee: LaSalle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Advancing: Yes-Through liquidation
Minimum Denomination: $50,000
Delivery: DTC,CEDEL,Euroclear
Web Site: http://www.nomurany.com
Account Name: cmbs
A hard copy is available upon request.
- -------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Loans:
- ----------
<TABLE>
<CAPTION>
Cut-off Balloon Lockout Eff.
Property Loan Amount Type Props NCF Rate Amort DSCR LTV LTV* Term Term
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
G & L Pool 35,000,000 Medical Office 4 5,056,283 8.492% 300 1.50 68% 57% 120 120
- -----------------------------------------------------------------------------------------------------------------------------------
Design Center of 40,000,000 Retail 1 7,841,617 7.470% 300 2.22 41% 33% 120 120
the Americas
- -----------------------------------------------------------------------------------------------------------------------------------
Ins. Co of the 25,200,000 Office/Net Lease 1 2,295,000 7.506% 240 N/A N/A N/A 120 120
West Office Ctr
- -----------------------------------------------------------------------------------------------------------------------------------
M & H Pool 58,400,000 Retail 6 9,001,617 7.500% 360 1.84 49% 43% 120 120
- -----------------------------------------------------------------------------------------------------------------------------------
Innkeepers Pool 42,000,000 Ltd/Ext Stay Hotels 8 9,320,904 8.150% 240 2.19 47% 34% 120 120
- -----------------------------------------------------------------------------------------------------------------------------------
101 Hudson 135,000,000 Office 1 20,495,199 7.916% 240** 1.65 57% 40% 120 120
- -----------------------------------------------------------------------------------------------------------------------------------
Fairfield Inns 165,400,000 Ltd Service Hotels 50 27,624,104 8.400% 240 1.62 61% 44% 120 120
- -----------------------------------------------------------------------------------------------------------------------------------
Total: 501,000,000 71 81,634,724 8.031% 263 1.74 58% 120 120
</TABLE>
* Balloon LTV assumes scheduled amortization through Effective Maturity Date
and constant property value.
** 101 Hudson will amortize on a 240 month schedule as long as there is excess
cash flow, otherwise amortization will be 300 mos.
The Collateral
- --------------
Property Type # of Cut-off Loan % of Pool
Props Amount
- -----------------------------------------------------------
Hotel 58 207,400,000 41%
Office 1 135,000,000 27%
Retail 7 98,400,000 20%
Medical Office 4 35,000,000 7%
Credit Lease 1 25,200,000 5%
- -----------------------------------------------------------
71 501,000,000 100%
Call Protection:
- ----------------
4/97
[THE FOLLOWING INFORMATION IS REPRESENTED AS A CHART IN THE PRINTED DOCUMENT]
Locked Out
G&L Pool 10
Design Center of the Americas 10
Insurance Co. of the West Office Ctr. 10
M&H Pool 10
Innkeepers Pool 10
101 Hudson 10
Fairfield Inns 10
Note: Chart shows lock-out to the effective term of each loan.
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Underwriting:
- -------------
<TABLE>
<CAPTION>
Principal Manager Cross
Loan Pool Repayment Removal Lock Box Collateralization Reporting
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
G & L Pool Effective Balloon YES Hard YES Monthly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Design Center of the Effective Balloon YES Hard N/A Monthly, Quarterly & Yearly
Americas
- ------------------------------------------------------------------------------------------------------------------------------------
Ins. Co of the West Effective Balloon YES Hard N/A Monthly, Quarterly & Yearly
Office Ctr
- ------------------------------------------------------------------------------------------------------------------------------------
M & H Pool Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Innkeepers Pool Effective Balloon YES Hard YES Monthly, Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
101 Hudson Effective Balloon YES NA* N/A Quarterly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
Fairfield Inns Effective Balloon ** NA*** YES Monthly & Yearly
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* One month Debt Service reserve currently, if drawn upon, 2 month DS reserve
required, otherwise hard lock box implemented.
** The Fairfield manager can be terminated for failure to meet certain
performance standards.
*** There is no lockbox required as long as Marriott's credit rating remains
"BBB+" or better.
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, except with regard to the 101 Hudson Loan, 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 clearing 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
clearing account while the manager is required to deposit
all other revenues into a cleaning account which is swept
into the collection account.
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Principal Bonds' Cash Flows (Principal Only)
[THE FOLLOWING INFORMATION IS REPRESENTED AS A CHART IN THE PRINTED DOCUMENT]
<TABLE>
<CAPTION>
Date AAA1 AAA2 AAA3 AA A BBB1 BBB2 BB
- ---- ---- ---- ---- -- - ---- ---- --
<S> <C> <C> <C> <C> <C> <C> <C> <C>
4/2/97 -- -- -- -- -- -- -- --
3/13/98 8.72 -- -- -- -- -- -- --
3/13/99 9.46 -- -- -- -- -- -- --
3/13/00 10.16 -- -- -- -- -- -- --
3/13/01 11.13 -- -- -- -- -- -- --
3/13/02 12.07 -- -- -- -- -- -- --
3/13/03 13.1 -- -- -- -- -- -- --
3/13/04 14.12 -- -- -- -- -- -- --
3/13/05 15.41 -- -- -- -- -- -- --
3/13/06 16.72 -- -- -- -- -- -- --
3/13/07 8.71 35.09 190.02 29.98 44.97 39.97 24.98 14.99
</TABLE>
Loan Principal Cash Flows:
[THE FOLLOWING INFORMATION IS REPRESENTED AS A CHART IN THE PRINTED DOCUMENT]
<TABLE>
<CAPTION>
Date Fairfield Hudson M&H Realty Design Center G&L II Innkeepers Insurance Co
<S> <C> <C> <C> <C> <C> <C> <C>
3/11/97 3.18 2.77 0.48 0.53 0.4 0.82 0.54
3/11/99 3.46 3 0.52 0.58 0.43 0.89 0.58
3/11/00 3.73 3.22 0.55 0.61 0.46 0.96 0.62
3/11/01 4.1 3.52 0.6 0.67 0.51 1.05 0.68
3/11/02 4.46 3.81 0.65 0.72 0.56 1.14 0.73
3/11/03 4.86 4.13 0.7 0.78 0.61 1.24 0.79
3/11/04 5.25 4.45 0.75 0.83 0.66 1.34 0.85
3/11/05 5.75 4.84 0.82 0.9 0.72 1.46 0.92
3/11/06 6.26 5.24 0.88 0.97 0.79 1.59 0.99
3/11/07 123.77 99.54 52.34 33.3 29.65 31.51 18.59
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
G & L Pool
================================================================================
Original Current
-------- -------
Principal Balance: $35,000,000
Origination Date: August ___, 1996
Interest Rate: 8.492%
Effective Term: 10 yrs. (3/11/2007)
Amortization: 25 years
Call Protection: 100% locked out
Release Provisions:
o Defeasance of 125% of the allocated loan balance
o DSCR not lower than pre-release DSCR
Net Cash Flow: $5,056,283
Adjusted as of 11/31/96
Debt Service Coverage Ratio: 1.50X
Appraised Value: $51,170,000
Loan to Value: 68%
Borrower:
o The borrower is a special purpose limited partnership substantially
owned by G & L Realty Corp.
o G & L is a publicly traded REIT (ticker "GLR") specializing solely in
Medical Office properties.
The Properties:
o Four medical office buildings located in southern california.
o One of the office buildings is located in Beverly Hills in the
submarket known as the "Golden Triangle", located two blocks from
Rodeo Drive. This sub-market has experienced occupancies in excess of
90% for the past five years and is located in close proximity to
Cedars Sinai Hospital and UCLA Medical Center.
o One of the buildings, located in San Gabriella Valley, is completely
leased to Cigna Healthcare of California.
o The other two properties are located adjacent to, or nearby, hospital
facilities Three of the properties have been built in the past eight
years and the fourth property had its renovation completed in 1996.
o The properties have an average occupancy of 96%.
Occ as Built/
Property Location Sq.Ft. of 7/1/96 Renov
- ----------------------------------------------------------------
Sherman Oaks, 69,990 90% 1969/
Sherman Oaks CA 1996
- ----------------------------------------------------------------
Regents Medical La Jolla, 66,163 95% 1989
Centre CA
- ----------------------------------------------------------------
12701 Schabarum Irwindale, 47,604 100% 1992
Ave CA
- ----------------------------------------------------------------
436 North Beverly Hills, 78,002 97% 1990
Bedford Drive CA
- ----------------------------------------------------------------
Total: 4 Properties 261,759 96%
Management:
o The manager is G & L Realty Partnership, an affiliate of G & L Realty
Corp.
o Dan Gottleib and Steve Lebowitz, the two principals and founders of G
& L have owned and managed office buildings since 1978.
o The company manages over 600,000 square feet of medical office
properties in California.
Deferred Maintenance Reserve: None required
Ongoing Reserves: $.30 per square foot
Re-leasing Reserve:
$525,000 up-front reserve for all lease rollover. Commencing 11/98, $6,500 per
month through the earlier of 11/2004 or until all releasing expenses associated
with the Cigna lease rollover are paid.
Collection Account: Hard Lock Box
Cross-Collateralization/Default: Fully Crossed
o Removal of Management: o Event of default
o DSCR drops below 1.15X for 6 consecutive months
Reporting Requirements:
o Certified monthly operating statements
o Certified quarterly rent rolls, occupancy reports and operating
statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Design Center of the Americas
================================================================================
Original Current
-------- -------
Principal Balance: $40,000,000
Origination Date:
Interest Rate: 7.47%
Amortization: 300 mos.
Effective Maturity: 120 mos.
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 100% of the remaining loan balance permissible two years
post-securitization date.
Net Cash Flow: $7,841,617
Adjusted as of 12/96
Debt Service Coverage Ratio: 2.22X
Appraised Value: $97,000,000
Loan to Value: 41%
Loan Per Square Foot: $72.69
The Borrower:
o The borrower is Design Centers of the Americas L.P. a special purpose,
bankruptcy remote limited partnership.
o The principals of the borrower are members of the Danto family of
Troy, MI who combine 40 years of experience in the furniture business
with an extensive history of property development and management.
The Collateral:
o Design Center of the Americas is the second largest design center in
the U.S. and draws customers from throughout the U.S., Latin America,
South America and Europe.
o The collateral consists of a 550,273 square foot design center located
in Dania, FL. built in 2 phases in 1985 and 1988.
o The property contains 2 buildings that are approximately 98% leased to
approximately 125 tenants. There is currently a waiting list of 40
additional companies.
o The facility's tenants represent over 3,500 manufacturers of fine
furnishings, fabrics, floor and wall coverings, art and accesories.
Net Cash Occ.
Year Flow
- ------------------------------
U/W 7,841,617 95%
- ------------------------------
1996 8,750,376 98%
- ------------------------------
1995 8,793,895 99%
- ------------------------------
1994 8,614,096 99%
- ------------------------------
1993 7,335,581 99%
- ------------------------------
Management:
o The property is managed by Danto Investment Company ("DIC"), an
affiliate of the borrower.
o DIC manages 3 industrial/warehouse properties, an office building and
2 design centers totaling over 1.2 million sf.
Up Front Reserves: None
On-Going Cap. Ex. Reserve: $0.31/sf
Collection Account: Hard Lock Box
There is also a 2 month Debt Service Reserve.
Removal of Manager:
o Event of a default
o DCSR drops below 1.15X.
Reporting Requirements:
o Certified monthly and quarterly property operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Insurance Co. of the West Net Lease
================================================================================
Original Current
-------- -------
Principal Balance: $25,277,611 $
Origination Date:
Interest Rate: 7.506%
Amortization: 240 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 100% of the remaining loan balance permissible two years
post-securitization date.
Net Cash Flow: $2,295,000
Based on 1997 triple net lease payment
Debt Service Coverage Ratio: N/A
Appraised Value: $25,000,000
Loan to Value: N/A
Loan Per Square Foot: $156.61
The Borrower:
o The borrower is a special purpose, bankruptcy remote entity sponsored
by ICW Plaza, L.P.
The Collateral:
o A bondable lease based upon ICW's corporate credit.
o The ICW Plaza is a new national headquarters for Insurance Company of
the West, located in San Diego, CA. The property consists of 145,750
sf of office space, 15,650 sf of storage space and 30,690 sf of
subterranean parking.
o The building was completed in 1996 and has the following amenities:
dock high loading and shipping, 100-person cafeteria with outdoor
seating, dedicated freight elevator and oceanview offices with decks.
o The building is triple-net leased to ICW as the company's national
corporate headquarters.
The Lease:
o 100% of the center's net rentable area is leased to ICW under a master
lease. The lease has a term contemporaneous with the loan.
o ICW is the credit on the lease and has a corporate rating from S&P of
"A".
o ICW is a wholly owned subsidiary of Western Insurance Holding. The ICW
Group, which consists of ICW and its two subsidiaries, Explorer and
Independence Casualty, makes up more than 98% of the consolidated
revenues and expenses of Western Insurance Holdings.
Net Written GAAP Net Combined
Year Premiums Income Ratio
- ---------------------------------------------------------
1996* 82,991,000 5,877,000 102.7%
- ---------------------------------------------------------
1995 163,403,000 9,309,000 104.7%
- ---------------------------------------------------------
1994 173,369,000 5,489,000 106.8%
- ---------------------------------------------------------
1993 151,006,000 7,207,000 109.7%
- ---------------------------------------------------------
1992 106,979,000 9,823,000 120.0%
- ---------------------------------------------------------
1991 109,003,000 16,671,000 99.8%
- ---------------------------------------------------------
* 1996 results are 6 mos .ending June, all other results are for year end.
Management:
o The property is managed by ICW.
Up Front Reserves: N/A
On-Going Cap. Ex. Reserve: N/A
Collection Account: Hard Lock Box
Removal of Manager:
o Event of a default
Reporting Requirements:
o Certified monthly and quarterly property operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
M & H Pool
================================================================================
Principal Amount: $58,400,000
Origination Date: January 2, 1997
Interest Rate: 7.50%
Amortization: 360 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR immediately preceding
the release.
Net Cash Flow: $9,001,617
Adjusted as of 12/96
Debt Service Coverage Ratio: 1.84X
Appraised Value: $123,200,000
Loan to Value: 47%
Loan Per Square Foot: $41.76
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o The borrower is M&H Realty Partners II, L.P., a single purpose,
bankruptcy remote entity.
o Peter Merlone and John Hagenbuch founded M&H in October, 1994. They
have managed, recapitalized, renovated and retenanted over $500
million of shopping center properties throughout CA.
o As of year end 1996, the M&H companies owned and managed over 20 CA
retail centers in conjunction with institutional equity partners.
o The institutional limited partners include Yale University, Church
Pension Fund and Gothic Corp., an affiliate of Duke University.
The Collateral:
o The collateral consists of 5 anchored neighborhood retail centers and
one anchored community retail center.
Property Location SF Occ. Anchors
- --------------------------------------------------------------------
Westgate Mall San Jose, CA 665,461 87% Montgomery Ward,
Burlington Coat,
Home Express (BK),
Ross, Lil Things,
Safeway, Barnes &
Noble
- --------------------------------------------------------------------
The Promenade Modesto, CA 119,175 98% Circuit City,
Barnes & Noble,
Copelands Sporting
Goods
- --------------------------------------------------------------------
County Hills Diamond 164,338 85% Ralph's, Thrifty,
Town Center Bar, CA Regal Cinemas
- --------------------------------------------------------------------
Lincoln Park Buena Park, 144,076 72% Thrifty Drug
Center CA
- --------------------------------------------------------------------
Mission Oceanside, 191,673 75% Thrifty Drug,
Square CA Office Depot,
Canned Foods
Grocery Outlet
- --------------------------------------------------------------------
Plaza La La Quinta, 114,483 79% Vons
Quinta CA
- --------------------------------------------------------------------
1,399,206
NetCash NOI Year Year
------- --- ---- ----
Property Flow 1996 Built Renov
- ------------------------------------------------------------
Westgate Mall $4,292,823 $3,480,852 1960 1988/96
- ------------------------------------------------------------
The Promenade 1,253,078 701,479 1988 NA
- ------------------------------------------------------------
County Hills 1,054,874 1,269,607 1965 1990
Town Center
- ------------------------------------------------------------
Lincoln Park 929,266 1,104,989 1958 1987
Center
- ------------------------------------------------------------
Mission Square 825,485 871,055 1963 1988
- ------------------------------------------------------------
Plaza La Quinta 646,091 712,113 1982 NA
- ------------------------------------------------------------
$9,001,617 $8,140,095
- ------------------------------------------------------------
Note: Properties were acquired during 1995.
Management:
o The properties are managed by M&H Property Management Inc., an
affiliate of the borrower.
o The manager oversees the management and leasing of nearly 3.5 mm sf of
neighborhood and community center space in CA.
Up Front Reserves: $1,303,985
On-Going Cap. Ex. Reserve: $0.15 psf
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Collection Account: Hard Lock box
Removal of Manager:
o Event of a default
o DCSR drops below 1.40X for prior quarter
o DSCR for prior quarter less than 70% of initial DSCR
Reporting Requirements:
o Certified monthly and quarterly property operating statements and rent
o rolls Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Innkeepers
================================================================================
Principal Balance: $42,000,000
Origination Date: TBD
Interest Rate: 8.15%
Amortization: 240 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR immediately preceding
the release.
Net Cash Flow: $9,320,904
Adjusted as of 12/96
Debt Service Coverage Ratio: 2.19X
Appraised Value: $88,770,510 (approx.)
Loan to Value: 47%
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o A newly formed single purpose, bankruptcy remote partnership,
controlled by Inkeepers USA Trust, a publicly traded REIT.
o Innkeepers USA Trust currently owns 31 hotels with an aggregate of
4,500 rooms in 12 states.
o Innkeeper USA had a market cap as of 12/96 $150 mm
The Collateral:
o The collateral consists of 5 extended stay Residence Inn hotels and 3
limited service Hampton Inn hotels containing 940 rooms geographically
diversified in 6 states.
Management:
o Marriott manages 3 of the Residence Inns (Wichita, Denver and
Sunnyvale). JF Hotels manages the remaining 5 hotels.
o JF Hotels is the operator of all of the hotels.
Up Front Reserves: $
On-Going Cap. Ex. Reserve: 5% of total revenues
Removal of Operator:
o Event of a default
o DCSR drops below 1.40X
Collection Account: Hard Lock Box
Reporting Requirements:
o Certified monthly property operating statements
o Annual audited financial statements
<TABLE>
<CAPTION>
Year U/W 1996 1995 1994 1993
----- ----- ----- ----- ----- ----
Property City St Rms Built Cashflow Cashflow Cashflow Cashflow Cashflow
-------- ---- -- --- ----- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Hampton Inn - Naples Naples FL 107 1990 724,884 865,333 787,336 702,421 665,948
Residence Inn - Sunnyvale Sunnyvale CA 231 1983 3,395,183 4,014,185 2,970,357 2,378,131 2,086,464
Residence Inn - Binghampton Binghampton NY 72 1987 602,825 754,739 726,327 737,068 752,743
Hampton Inn - Islandia Islandia NY 121 1988 1,072,835 1,257,882 1,204,276 1,029,247 779,496
Residence Inn - Cherry Hill Cherry Hill NJ 96 1989 1,003,088 1,281,810 1,131,303 1,132,993 1,023,390
Residence Inn - Denver Denver CO 156 1982 1,367,549 1,672,660 1,296,263 1,241,304 1,193,426
Residence Inn - Wichita Wichita KS 64 1981 484,930 559,914 555,465 552,367 537,746
Hamton Inn - Tallahassee Tallahassee FL 93 1993 669,610 819,175 815,922 674,661 NA
================================================================================================================================
Total: 940 9,320,904 11,225,698 9,487,249 8,448,192 7,039,213
==================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
U/W 1996 1995 1994 1993 U/W 1996 1995 1994 1993
--- ---- ---- ---- ---- --- ---- ---- ---- ----
Property Occ Occ Occ Occ Occ ADR ADR ADR ADR ADR
-------- --- --- --- --- --- --- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Hampton Inn - Naples 70% 72% 70% 74% 78% 66.47 66.47 65.58 59.79 55.92
Residence Inn - Sunnyvale 80% 91% 86% 80% 78% 99.41 99.41 88.28 83.29 79.21
Residence Inn - Binghampton 80% 83% 82% 81% 82% 84.40 84.40 84.76 83.87 82.29
Hampton Inn - Islandia 75% 76% 75% 75% 70% 76.45 76.45 74.60 69.91 65.71
Residence Inn - Cherry Hill 80% 89% 91% 92% 92% 93.56 93.56 88.54 84.12 81.37
Residence Inn - Denver 80% 86% 86% 90% 87% 81.73 81.73 74.55 68.11 68.10
Residence Inn - Wichita 80% 81% 82% 83% 83% 77.79 79.32 76.25 75.10 73.42
Hamton Inn - Tallahassee 78% 82% 86% 85% NA 60.11 60.11 56.10 49.94 NA
- ---------------------------------------------------------------------------------------------------------------------
Total: 78% 84% 83% 82% 81% 83.03 84.00 77.44 72.67 72.47
=====================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
101 Hudson Street
================================================================================
Original Current
Principal Balance: $135,000,000 $
Origination Date: January 13, 1997
Interest Rate: 7.916%
Amortization: 300 Mos.(additional
amortization applied to amortize the loan over 20 yrs to the
extent excess cash flow available)
Effective Maturity: 120 Months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 100% of the remaining loan balance permissible two years
post-securitization date.
Net Cash Flow: $20,495,199
Adjusted as of 12/96
Debt Service Coverage Ratio: 1.65X
Appraised Value: $236,000,000
Loan to Value: 57%
Loan Per Rentable Square Foot: $109.76
The Borrower:
o The borrowers are three New Jersey single purpose, bankruptcy remote
general partnerships.
o The equity owners of the Borrower are affiliates of the Ohio State
Teachers Retirement Board, LCOR and Merrill Lynch.
The Property:
o The property is a Class A office building located in Jersey City, NJ
accessable to and from NYC and the NJ suburbs. The property was built
in 1992, contains 1.23 mm sf of net rentable area and is 98% occupied
(100% of the office space is occupied).
o Merrill Lynch and Lehman Brothers are the major tenants and spent $100
mm and $50 mm, respectively, fitting out their space.
o The property consists of 1,210,630 sf of office space, 19,457 sf of
retail space and 276,233 sf of garage and mechanical space including
744 parking spaces.
o Since the lease up of the property and the Merrill and Lehman fit outs
were completed in 1996, there are no meaningful historical operating
results.
Management:
o The property is managed by LCOR Asset Mgt L.P., a subsidiary of LCOR.
o LCOR is a provider of consulting, development, financing, marketing,
property management and asset management services for several decades.
Up Front Reserves: $120,329
On-Going Cap. Ex. Reserve: $0.15 psf on office
$0.10 psf on parking
Collection Account: One month Debt Service reserve required.
If drawn upon, two month DS reserve required in order to avoid hard lock box.
Reporting Requirements:
o Certified quarterly operating statements
o Annual audited financial statements
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
================================================================================
Fairfield Inns
================================================================================
Original Current
Principal Balance: $165,400,000 $
Origination Date: January 13, 1997
Interest Rate: 8.40%
Amortization: 240 months
Effective Maturity: 120 months
Call Protection: Locked out for Eff. Term
Release of Collateral:
o Defeasance of 125% of the allocated loan balance
o DSCR greater than the initial DSCR and the DSCR immediately preceding
the release.
Net Cash Flow: $27,624,104
Adjusted as of 12/96
Debt Service Coverage Ratio: 1.62X
Appraised Value: $271,000,000
Loan to Value: 61%
Cross-Collateralization/Default: Fully Crossed
The Borrower:
o The borrower, Fairfield Inn by Marriott Limited Partnership, is a
bankruptcy remote, single purpose limited partnership.
o The general partner of the Borrower is Marriott FIBM One Corp., a
wholly owned subsidiary of Host Marriott Corp. There are over 3,000
limited partners.
The Collateral:
o The collateral consists 50 limited service hotels flagged as Fairfield
Inns, containing 6,672 rooms geographically diversified in 16 states.
Management:
o The manager is Fairfield FMC Corp, a wholly owned subsidiary of
Marriott International, Inc. ("MII").
Up Front Reserves: $
On-Going Cap. Ex. Reserve: 7% of total revenues
Collection Account: A two month Debt Service reserve is
required. If rating drops to "BBB+", three month Debt Service reserve
required. If rating drops to "BBB", hard lockbox put in place.
Reporting Requirements:
o Certified monthly property operating statements
o Annual audited financial statements
<TABLE>
<CAPTION>
Year Allocated U/W U/W U/W U/W
Property City State Rooms Built Loan Amt Occ ADR Rev Par Cashflow
-------- ---- ----- ----- ----- -------- --- --- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Birmingham Homewood AL 132 1988 $3,959,691 75% $51.43 $38.57 $618,591
Montgomery Montgomery AL 133 1988 $4,159,583 77% $49.83 $38.26 $755,606
Buena Park Buena Park CA 135 1990 $1,824,147 69% $39.85 $27.51 $257,937
Placentia Placentia CA 135 1990 $2,529,265 79% $41.39 $32.86 $377,417
Miami-West Miami FL 135 1990 $5,049,158 82% $55.89 $45.83 $616,337
Gainesville Gainesville FL 135 1990 $4,019,213 80% $47.90 $38.32 $623,091
Orlando-Int'l Orlando FL 135 1989 $2,511,769 82% $46.65 $38.25 $495,639
Orlando-South Orlando FL 132 1988 $2,073,689 82% $40.52 $33.23 $372,361
Atlanta-Airport College Park GA 132 1987 $1,658,037 80% $47.00 $37.60 $261,438
Atlanta-Gwinnett Duluth GA 135 1988 $4,306,741 80% $56.00 $44.80 $659,862
Atlanta-Northlake Atlanta GA 133 1988 $3,408,842 80% $50.00 $40.00 $584,913
Atlanta-Northwest Marietta GA 130 1987 $3,677,723 80% $53.00 $42.40 $532,373
Atlanta-Peachtree Norcross GA 135 1989 $3,934,191 80% $53.00 $42.40 $690,120
Atlanta-Southlake Morrow GA 134 1989 $3,828,511 72% $46.00 $33.12 $448,857
Savannah Savannah GA 135 1990 $2,469,719 75% $48.36 $36.25 $509,093
Bloomington Normal IL 128 1988 $3,666,963 69% $48.27 $33.28 $526,931
Chicago Lansing IL 135 1989 $3,086,924 81% $54.95 $44.51 $474,065
Peoria Peoria IL 135 1989 $3,686,998 72% $47.46 $34.31 $613,024
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Year Allocated U/W U/W U/W U/W
Property City State Rooms Built Loan Amt Occ ADR Rev Par Cashflow
-------- ---- ----- ----- ----- -------- --- --- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Rockford Rockford IL 135 1989 $3,466,161 72% $48.25 $34.74 $501,339
Indianapolis-Castle Indianapolis IN 131 1988 $3,451,819 74% $51.33 $37.93 $561,322
Indianapolis-Coll. Indianapolis IN 131 1988 $4,356,341 74% $50.58 $37.43 $689,025
Des Moines Clive IA 135 1990 $3,664,898 80% $51.23 $40.78 $675,886
KC-Overland Pk Overland Park KS 134 1989 $4,007,888 79% $51.49 $40.46 $746,188
KC-West Merriam KS 135 1989 $4,690,748 80% $52.74 $42.19 $817,465
Auburn Hills Auburn Hills MI 134 1989 $3,107,787 78% $52.06 $40.45 $572,785
Detroit-Airport Romulus MI 132 1988 $2,553,222 82% $47.97 $39.34 $529,750
Detroit-Madison Madison Heights MI 134 1989 $2,831,179 79% $49.51 $39.11 $475,348
Detroit-Warren Warren MI 132 1988 $2,050,595 73% $46.63 $34.22 $353,119
Detroit-West Canton MI 133 1988 $2,589,539 79% $49.87 $39.54 $504,491
Kalamazoo Kalamazoo MI 133 1988 $2,787,906 73% $45.61 $33.10 $492,123
St. Louis Hazelwood MO 135 1989 $2,756,901 72% $45.38 $32.67 $474,985
Charlotte-Airport Charlotte NC 135 1989 $2,685,614 78% $43.00 $33.64 $456,840
Charlotte-North Charlotte NC 133 1988 $2,640,697 80% $40.69 $32.55 $457,293
Durham Durham NC 135 1990 $4,028,318 80% $48.65 $38.92 $674,238
Fayetteville Fayetteville NC 135 1989 $4,220,548 82% $47.29 $38.78 $616,910
Raleigh Raleigh NC 132 1988 $3,838,219 80% $49.73 $39.78 $718,854
Greensboro Greensboro NC 135 1989 $2,856,074 76% $47.62 $36.27 $518,363
Wilmington Wilmington NC 134 1989 $5,218,731 80% $50.00 $40.00 $806,987
Cleveland Brook Park OH 135 1989 $3,715,256 84% $47.93 $40.26 $572,665
Columbus Columbus OH 135 1989 $2,345,482 76% $45.28 $34.42 $419,898
Dayton Dayton OH 135 1989 $2,536,275 75% $44.11 $33.06 $438,059
Toledo-Airport Holland OH 135 1989 $4,492,557 78% $48.90 $37.95 $712,940
Florence Florence SC 134 1989 $3,713,393 80% $47.99 $38.28 $739,646
Greenville Greenville SC 132 1989 $3,697,228 80% $47.80 $38.24 $654,970
Hilton Head Hilton Head SC 120 1989 $2,702,362 71% $54.54 $38.73 $433,973
Johnson City Johnson City TN 132 1988 $3,121,297 76% $43.11 $32.62 $534,781
Hampton Hampton VA 134 1989 $2,763,671 73% $41.43 $30.33 $469,570
Virginia Beach Virginia Beach VA 134 1990 $2,166,621 62% $44.59 $27.85 $380,626
Madison Madison WI 134 1988 $2,825,957 68% $48.17 $32.54 $461,593
Milwaukee Waukesha WI 135 1989 $3,665,554 70% $50.50 $35.35 $636,098
- --------------------------------------------------------------------------------------------------------------------------
Total: 6,673 $165,400,000 77% $48.27 $37.04 $ 6,454,819
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
1996 1996 1996 1996 1995 1995 1995
Property Occ ADR Rev Par Cashflow Occ ADR Rev Par 1995 Cashflow
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Birmingham 76% $51.43 $39.13 $636,763 78% $49.93 $39.19 $681,183
Montgomery 77% $49.83 $38.26 $755,606 76% $46.86 $35.84 $715,570
Buena Park 69% $39.85 $27.51 $257,937 73% $38.71 $28.36 $313,807
Placentia 79% $41.39 $32.86 $402,375 82% $37.77 $30.79 $435,107
Miami-West 85% $55.89 $47.37 $668,482 90% $56.30 $50.48 $868,603
Gainesville 83% $47.90 $39.94 $676,606 86% $45.81 $39.18 $691,422
Orlando-Int'l 83% $46.65 $38.89 $515,863 85% $40.92 $34.79 $432,098
Orlando-South 84% $40.52 $33.89 $392,861 83% $37.91 $31.34 $356,735
Atlanta-Airport 80% $51.30 $41.11 $399,020 83% $44.50 $37.10 $285,231
Atlanta-Gwinnett 84% $58.18 $48.91 $814,572 89% $50.91 $45.24 $740,885
Atlanta-Northlake 81% $54.66 $44.19 $748,420 85% $46.45 $39.38 $586,420
Atlanta-Northwest 80% $56.37 $45.21 $640,403 84% $50.31 $42.33 $632,676
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<S> <C> <C>
====================================================================================================================================
Nomura Securities International, Inc. (212) 667-1545 Commercial Backed Mortgage Securities
====================================================================================================================================
Preliminary as of 02/25/97
MegaDeal(R) VII - $501,000,000 4:41 PM. Subject to
Collateral Term Sheet change
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
1996 1996 1996 1996 1995 1995 1995
Property Occ ADR Rev Par Cashflow Occ ADR Rev Par 1995 Cashflow
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Atlanta-Peachtree 80% $55.23 $44.30 $768,565 83% $48.24 $40.15 $676,796
Atlanta-Southlake 76% $50.44 $38.32 $650,600 80% $44.99 $36.18 $658,616
Savannah 75% $48.36 $36.25 $509,093 77% $43.83 $33.59 $424,864
Bloomington 69% $48.27 $33.28 $526,931 80% $45.41 $36.39 $630,825
Chicago 85% $54.95 $46.67 $550,119 89% $50.74 $45.16 $531,041
Peoria 72% $47.46 $34.31 $613,024 74% $46.64 $34.30 $634,271
Rockford 77% $48.25 $37.16 $585,562 80% $45.03 $35.97 $596,281
Indianapolis-Castle 77% $51.33 $39.49 $611,513 79% $47.70 $37.89 $593,814
Indianapolis-Coll. 75% $50.58 $38.06 $710,871 79% $49.39 $38.97 $749,418
Des Moines 80% $51.23 $40.78 $690,016 80% $47.20 $37.90 $630,470
KC-Overland Pk 79% $51.49 $40.46 $746,188 82% $46.63 $38.17 $689,474
KC-West 82% $52.74 $43.00 $846,249 85% $48.43 $41.16 $806,946
Auburn Hills 79% $52.06 $40.98 $590,587 78% $48.32 $37.60 $534,630
Detroit-Airport 83% $47.97 $39.87 $546,897 90% $40.41 $36.44 $439,229
Detroit-Madison 80% $49.51 $39.79 $497,399 82% $45.89 $37.73 $487,046
Detroit-Warren 73% $46.63 $34.22 $353,119 76% $42.86 $32.37 $352,762
Detroit-West 79% $49.87 $39.54 $504,491 81% $45.85 $36.97 $445,476
Kalamazoo 73% $45.61 $33.10 $492,123 74% $43.33 $32.09 $479,601
St. Louis 73% $45.38 $33.34 $498,116 77% $42.47 $32.80 $474,268
Charlotte-Airport 78% $43.00 $33.64 $456,840 82% $40.52 $33.21 $462,004
Charlotte-North 81% $40.69 $32.95 $469,855 87% $37.46 $32.44 $454,277
Durham 82% $48.65 $39.99 $710,260 83% $45.37 $37.86 $692,989
Fayetteville 85% $47.29 $40.12 $668,086 87% $46.35 $40.32 $726,058
Raleigh 81% $49.73 $40.42 $740,024 82% $46.33 $38.15 $660,286
Greensboro 76% $47.62 $36.27 $518,363 81% $45.02 $36.28 $491,328
Wilmington 82% $52.19 $43.04 $925,608 86% $48.73 $41.74 $897,774
Cleveland 87% $47.93 $41.84 $626,714 87% $45.76 $39.83 $639,133
Columbus 76% $45.28 $34.39 $419,898 77% $41.85 $32.07 $403,492
Dayton 75% $44.11 $33.06 $438,059 73% $42.84 $31.46 $436,313
Toledo-Airport 81% $48.90 $39.43 $766,478 81% $46.13 $37.50 $772,851
Florence 80% $47.99 $38.28 $777,138 81% $44.29 $36.00 $638,812
Greenville 81% $47.80 $38.87 $676,324 82% $44.72 $36.81 $636,031
Hilton Head 69% $54.54 $37.42 $437,545 72% $52.03 $37.63 $464,885
Johnson City 76% $43.11 $32.62 $534,781 79% $40.74 $32.32 $536,954
Hampton 73% $41.43 $30.33 $469,570 74% $40.08 $29.83 $475,432
Virginia Beach 62% $44.59 $27.85 $380,626 64% $42.77 $27.28 $372,722
Madison 68% $48.17 $32.54 $462,314 74% $44.66 $32.94 $486,147
Milwaukee 73% $50.50 $36.85 $689,467 75% $45.33 $33.91 $630,582
- --------------------------------------------------------------------------------------------------------------------------
Totals 78% $48.77 $38.01 $29,368,318 81% $45.26 $36.47 $ 28,453,635
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
[LOGO] Nomura Prospective investors are advised to carefully read,
and should rely solely on, the final prospectus and
2/25/97 MD VII.DOC prospectus supplement (the "Final Prospectus") relating
_______ S-24 to the securities referred to herein in making their
_______ S-8 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.
- --------------------------------------------------------------------------------
