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: April 28, 1998
- ------------------------------
(Date of earliest event reported)
GS Mortgage Securities Corporation II
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-99774-02 22-3442024
- --------------------------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
85 Broad Street, New York, N.Y. 10004
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 902-1000
<PAGE>
Item 5. Other Events.
Attached as Exhibit 1 to this Current Report are certain materials (the
"Collateral Term Sheets") furnished to the Registrant by Goldman, Sachs & Co.
(the "Underwriter"), the underwriter in respect of the Registrant's proposed
offering of Commercial Mortgage Pass-Through Certificates, Series 1998-GL II
(the "Certificates"). The Certificates will be offered pursuant to a Prospectus
and related Prospectus Supplement (together, the "Prospectus"), which will be
filed with the Commission pursuant to Rule 424 under the Securities Act of 1933,
as amended (the "Act"). The Certificates will be registered pursuant to the Act
under the Registrant's Registration Statement on Form S-3 (No. 333-27083) (the
"Registration Statement"). The Registrant hereby incorporates the Collateral
Term Sheets by reference in the Registration Statement.
The Collateral Term Sheets were prepared solely by the Underwriter, and the
Registrant did not prepare or participate in the preparation of the Collateral
Term Sheets.
Any statement or information contained in the Collateral Term Sheets shall
be modified and superseded for purposes of the Prospectus and the Registration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. Collateral 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.
GS MORTGAGE SECURITIES CORPORATION II
By: GS Mortgage Securities Corporation II
Name: /s/ Sheridan Schechner
----------------------
Title: Managing Director
Date: April 28, 1998
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Exhibit No. Description
1 99 Collateral Term Sheets
GS Mortgage Securities Corporation II
Commercial Mortgage Pass-Through Certificates
Series 1998-GLII
[GRAPHIC OMITTED]
<TABLE>
<CAPTION>
Number of Cut-Off Date Principal Balance Cut-Off
Loan Name Properties Property Type ($000's) % by Balance Date LTV DSCR
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
URS Pool 29 Refrigerated $ 253,000 18.0% 59.7% 1.88x
Distribution/Warehouse
Tharaldson Pool B 93 Hotel 183,352 13.0 55.4 2.35
Tharaldson Pool A 90 Hotel 178,671 12.7 53.7 2.35
Green Acres 1 Retail 159,524 11.3 63.0 1.54
Americold Pool (1) 29 Refrigerated Distribution/Warehouse 148,500 10.5 57.0 1.94
Pier 39 1 Retail 116,670 8.3 73.8 1.38
One Commerce Square 1 Office 111,411 7.9 82.5 1.34 (2)
Marriott Desert Springs 1 Hotel 102,419 7.3 50.0 2.27
Showcase 1 Retail 78,998 5.6 67.2 1.44
Crystal City Pool 3 Office 76,608 5.4 66.6 1.61
Total/Weighted Average 249 $1,409,153 (3) 100% (3) 60.4% 1.86x
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A note representing 50% of the total loan amount is being contributed
to the Trust.
(2) The Tranche A DSCR is 1.34x, the Tranche B DSCR is
1.07x.
(3) Balances may not sum to total due to rounding.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do no represent that it is
accurate or complete and it should not be relied upon as such. By accepting this
material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may not
pertain to any securities that will actually be sold. The information contained
in this material may be based on assumptions regarding market conditions and
other matters as reflected therein. We make no representations regarding the
reasonableness of such assumptions or the likelihood that any of such
assumptions will coincide with actual market conditions or events, and this
material should not be relied upon for such purposes. We and our affiliates,
officers, directors, partners and employees, including persons involved in the
preparation or issuance of this material may, from time to time, have long or
short positions in, and buy or sell, the securities mentioned herein or
derivatives thereof (including options). This material may be filed with the
Securities and Exchange Commission (the "SEC") and incorporated by reference
into an effective registration statement previously filed with the SEC under
Rule 415 of the Securities Act of 1933, including in cases where the material
does not pertain to securities that are ultimately offered for sale pursuant to
such registration statement. Information contained in this material is current
as of the date appearing on this material only. Information in this material
regarding the securities and the assets backing any securities discussed herein
supersedes all prior information regarding such securities and assets. Any
information in the material, whether regarding the assets backing any securities
discussed herein or otherwise, will be superseded by the information included in
the final prospectus for any securities actually sold to you.
This material is furnished to you solely by Goldman, Sachs & Co. and not by the
issuer of the securities or any of its affiliates. Goldman, Sachs & Co. is
acting as underwriter and not acting as agent for the issuer or its affiliates
in connection with the proposed transaction. The issuer has not prepared or
taken part in the preparation of these materials.
<PAGE>
- --------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Structural Term Sheet
- --------------------------------------------------------------------------------
GS Mortgage Securities Corporation II
Commercial Mortgage Pass-Through Certificates
Series 1998-GL II
Key Features:
Mortgage Loan Seller: GS Mortgage Securities Corporation II
Underwriter: Goldman, Sachs & Co.
Master Servicer: GMAC Commercial Mortgage Corporation ("GMACCM")
Special Servicer: GMACCM
Trustee: LaSalle National Bank
Fiscal Agent: ABN AMRO Bank N.V.
Expected Pricing: On or about May 12, 1998
Expected Settlement: On or about May 19, 1998
Cut-Off Date: May 11, 1998
First Payment Date: June 15, 1998
Distribution Date: The second Business Day following the 11th day
of each month
Interest Accrual Period: Prior calendar month
Day Count: 30/360
Rated Final Distribution
Date: February 13, 2031
Clean Up Call: 1% of the Cut-Off date principal balance
ERISA Eligible: The Underwriter believes that the conditions to
conditions to the applicability of the
applicability of the Underwriter's exemption
will generally be met with respect to Classes
A-1, A-2 and X-1
Structure: Sequential Pay
Tax Treatment: REMIC
Rating Agencies: Moody's, Fitch
Servicer Advancing: Yes
Minimum Denomination: $10,000
Delivery: DTC/CEDEL/Euroclear
Selected Loan Data:
Cut-off Date Balance: (as of May 11, 1998) $1,409,153,000
Number of Mortgage Loans: 10
Number of Properties: 249
Weighted Average Coupon: 7.00%
Weighted Average DSCR: 1.86x
Weighted Average Cut-Off Date LTV: 60.4%
Weighted Average LTV at ARD(1): 47.9%
Weighted Average Remaining Term to ARD: 120 months
Weighted Average Seasoning: 3 months
(1) "ARD" is the Anticipated Repayment Date.
Overview of the Loans
Cut-Off Date Principal Balance
------------------------------
Number of % by
Loan Name Properties Property Type ($000's) Balance LTV DSCR
- --------------------------------------------------------------------
URS Pool 29 Refrigerated $253,000 18.0% 59.7% 1.88x
Dist. Warehouse
Tharaldson B 93 Hotel 183,352 13.0 55.4 2.35
Pool
Tharaldson A 90 Hotel 178,671 12.7 53.7 2.35
Pool
Green Acres 1 Retail 159,524 11.3 63.0 1.54
Americold 29 Refrigerated 148,500 10.5 57.0 1.94
Pool(1) Dist. Warehouse
Pier 39 1 Retail 116,670 8.3 73.8 1.38
One Commerce 1 Office 111,410 7.9 82.5 1.34(2)
Square
Marriott 1 Hotel 102,419 7.3 50.0 2.27
Desert Springs
Showcase 1 Retail 78,998 5.6 67.2 1.44
Crystal City 3 Office 76,608 5.4 66.6 1.61
Pool
Total 249 $1,409,153(3)100%(3) 60.4% 1.86x
- ------------------------------------------------------------------------
(1) A note representing 50% of the total loan amount is being contributed to the
Trust.
(2) The Tranche A DSCR is 1.34x, the Tranche B DSCR is 1.07x.
(3) Balances may not sum to total due to rounding.
Geographic Diversification
Cut-Off Date Principal Balance
------------------------------
Geographic Number of % by
Distribution Properties ($000's) Balance LTV
- ----------------- ----------- ------------ -------- -----------
California 6 $235,948 16.7% 60.2%
New York 2 182,524 13.0 63.0
Pennsylvania 3 145,346 10.3 75.3
Illinois 38 83,228 5.9 56.3
Virginia 4 81,448 5.8 66.1
Nevada 1 78,998 5.6 67.2
Georgia 6 69,151 4.9 62.0
Ohio 25 56,029 4.0 58.8
Texas 25 55,671 4.0 54.2
Other 139 420,810 29.9 55.5
Total 249 $1,409,153 100% 60.4%
- ----------------- ----------- ------------ -------- -----------
Diversification by Property Type
Cut-Off Date Principal Balance
------------------------------
Number of % by
Property Type Properties ($000's) Balance DSCR LTV
------------------------------------------------------------------
Hotel 184 $464,442 33.0% 2.33x 53.4%
Refrigerated
Distribution/Warehouse 58 401,500 28.5 1.90 58.7
Retail 3 355,192 25.2 1.47 67.2
Office 4 188,018 13.3 1.40 75.2
Total 249 $1,409,153 100% 1.86x 60.4%
------------------------------------------------------------------
(1) Balances may not sum to total due to rounding.
<PAGE>
Grande LoanTM/SM II: Preliminary Structural Term Sheet
GS Mortgage Securities Corporation II
Commercial Mortgage Pass-Through Certificates
Series 1998-GL II
Overview of the Loans
<TABLE>
<CAPTION>
Cut-Off Under- Cut-Off
Date Property Number of written Interest Amort Date ARD Lockout
Property Balance Type of NCF Rate (yrs) DSCR(1) LTV ARD Balance LTV Term (2) ARD
($000's) Properties (000's)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
URS Pool $253,000 Refrigerated 29 $ 40,350 6.894% 25 1.88x 59.7 $199,755 47.0% 2 yrs 5/11/08
Dist. Warehouse %
Tharaldson Pool B 183,352 Hotel 93 36,701 6.876 25 2.35 55.4 144,503 43.7 2 yrs 2/11/08
Tharaldson Pool A 178,671 Hotel 90 35,628 6.876 25 2.35 53.7 140,908 42.3 2 yrs 2/11/08
Green Acres 159,524 Retail 1 19,422 6.750 30 1.54 63.0 136,831 54.0 2 yrs 2/11/08
Americold Pool 148,500(3)Refrigerated 29 24,445(4) 6.894 25 1.94 57.0 117,248 44.9 2 yrs 5/11/08
Dist. Warehouse
Pier 39 116,670 Retail 1 13,154 7.107 30 1.38 73.8 100,516 64.0 2 yrs 4/11/08
One Commerce Square 111,411 Office 1 17,574(5) 6.995 30(6) 1.34(7)82.5 68,866 51.0 2 yrs 4/11/08
Marriott Desert 102,419 Hotel 1 21,500 7.800 25 2.27 50.0 75,085 36.6 2 yrs 6/11/10
Springs
Showcase 78,998 Retail 1 9,902 7.523 28 1.44 67.2 67,184 57.2 2 yrs 11/11/07
Crystal City Pool 76,608 Office 3 9,774 6.904 30 1.61 66.6 65,926 57.3 2 yrs 11/11/07
Total/Weighted $1,409,153(8) 249 $228,450 7.000% 1.86x 60.4% $1,116,377 48.9%
Avg.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Based on Underwritten Net Cash Flow.
(2) Lockout is from the date of the securitization.
(3) A note representing 50% of the total loan amount is being contributed to
the trust.
(4) The Underwritten Net Cash Flow shown is 50% of the total.
(5) The Underwritten Net Cash Flow includes that associated with the above
market IBM rent component.
(6) Tranche A amortizes over a 30-year term, whereas Tranche B amortizes over a
53-month term (sized to be amortized by the above market IBM rent
component).
(7) DSCR for Tranche A of the One Commerce Square Loan.
(8) Balances may not sum to total due to rounding.
<PAGE>
Grande LoanTM/SM II: Preliminary Structural Term Sheet
GS Mortgage Securities Corporation II
Commercial Mortgage Pass-Through Certificates
Series 1998-GL II
<TABLE>
<CAPTION>
Credit-Enhancing Loan Features
Principal Low DSCR Reserve Lock Box/ Cross
Loan Repayment Reserve Accounts (1) Sweep Account Collateralization Reporting
- ------------------------- ------------------- --------------------- ---------------- --------------- ---------------- -----------
<S> <C> <C> <C> <C> <C> <C>
URS Pool ARD (2) Yes DM/Cap Ex Sweep Account Yes M/Q/Y
Tharaldson Pool B ARD (2) No DM/Cap Ex Sweep Account Yes M/Q/Y
Tharaldson Pool A ARD (2) No DM/Cap Ex Sweep Account Yes M/Q/Y
Green Acres ARD (2) Yes DM/Cap Ex Hard Lockbox N.A. M/Q/Y
Americold Pool ARD (2) Yes DM/Cap Ex Hard Lockbox Yes M/Q/Y
Pier 39 ARD (2) Yes DM/Cap Ex Hard Lockbox N.A. M/Q/Y
One Commerce Square ARD (2) Yes TI/LC/DM/Cap Ex Hard Lockbox N.A. M/Q/Y
Marriott Desert Springs ARD (2) Yes DS/Cap Ex Springing N.A. M/Q/Y
Lockbox
Showcase ARD (2) Yes Cap Ex Hard Lockbox N.A. M/Q/Y
Crystal City Pool ARD (2) Yes TI/LC/DS/Cap Ex Springing Yes M/Q/Y
Lockbox
- ------------------------- ------------------- --------------------- ---------------- --------------- ---------------- -----------
</TABLE>
(1) Reserve accounts include up front and ongoing reserves. DM = Deferred
Maintenance, TI = Tenant Improvements, LC = Leasing Commissions, DS = Debt
Service, Cap Ex = Capital Expenditures.
(2) At the Anticipated Repayment Date, if the loan has not been repaid in full,
hyperamortization commences. Specifically, the interest rate increases by
2% and all excess cash flow is used to reduce the outstanding principal
balance; the additional 2% interest is accrued until the principal balance
is zero.
<PAGE>
Grande LoanTM/SM II: Preliminary Structural Term Sheet
GS Mortgage Securities Corporation II
Commercial Mortgage Pass-Through Certificates
Series 1998-GL II
Overview of the Collateral
Geographic Diversification by
Cut-Off Date Loan Amounts
[GRAPHIC OMITTED]
Property-Type Distribution by
Cut-Off Date Loan Amounts
[GRAPHIC OMITTED]
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
URS Pool Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date(1)
$ 253,000,000 $ 253,000,000
Origination Date: April 22, 1998
Interest Rate: 6.894%
Amortization: 25 years
Hyperamortization: After the ARD, interest rate increases to 8.894% and all
excess cash flow is used to reduce outstanding principal
balance; the additional 2% interest is accrued until
principal balance is zero.
Anticipated Repayment
Date ("ARD"): May 11, 2008
Maturity Date: May 11, 2023
The Borrower/Sponsor: URS Real Estate, L.P., a special-purpose entity
controlled by Vornado Realty L.P. and Crescent Real
Estate Equities Company.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance thereafter
until one payment date prior to the ARD.
Cut-Off Date Loan/NRSF: $57
Up-Front Reserves: Deferred Maintenance: $1,188,894
Ongoing Reserves: CapEx: $5,722,543/year
Low Debt Service: cash flow in excess of
debt service is escrowed if the DSCR
falls below 1.25x.
Collection Account: Sweep Lockbox
Cross-Collateralization/
Default: Yes
Partner Loans: None
Property Information
Single Asset/Portfolio: Portfolio of 29 assets
Property Type: Refrigerated
Distribution/Warehouse
Property Location by
Allocated Loan Amount:
[GRAPHIC OMITTED]
The Collateral: 29 cold storage warehouses
SF: 4,463,095
Cubic SF: 113,554,129
Property Management: URS Logistics, Inc.
(dba Americold Logistics)
1997 Net Operating Income: $54,216,403
Underwritten Net Cash Flow: $40,349,956
Appraised Value: $423,450,000
Appraised By: Landauer Associates
Appraisal Date: March 1, 1998
Cut-Off Date LTV: 59.7%
DSCR (2): 1.88x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
URS Pool Loan
-------------------------------------------------------------------------------
Property Description
<TABLE>
<CAPTION>
Year Built / Square Cubic
Property Location Property Type Renovated Footage Footage
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Albertville Albertville, AL Regional Production 1993 64,490 2,192,660
2. Augusta Augusta, GA Regional Distribution 1971/1984 48,284 1,111,663
3. Birmingham Birmingham, AL Regional Distribution 1962/1992 85,893 2,015,990
4. Charlotte Central Charlotte, NC Regional Distribution 1928/1969 58,912 1,028,492
5. Charlotte North Charlotte, NC Regional Distribution 1964/1992 164,820 4,135,790
6. Chelsea Memphis Memphis, TN Captive Production N/A 36,750 585,687
7. Columbia Columbia, SC Regional Distribution 1971/1992 83,742 1,609,950
8. Ft. Smith Fort Smith, AR Regional Production 1960/1989 78,249 1,403,467
9. Gadsden Gadsden, AL Regional Production 1991/1994 118,953 3,970,232
10. Gateway Atlanta, GA National Distribution 1972/1986 476,682 11,120,249
11. Indianapolis Indianapolis, IN National Distribution 1979/1990 311,671 9,110,009
12. Lakewood Atlanta, GA National Distribution 1962/1968 157,092 2,852,540
13. Leesport Leesport, PA National Distribution 1993/1994 168,872 5,753,042
14. Marshall Marshall, MO Captive Production 1985/1992 160,818 4,828,460
15. Memphis Parkway Memphis, TN Regional Distribution 1962/1967 246,169 5,603,013
16. Montezuma Montezuma, GA Captive Production 1965/1990 175,844 4,236,747
17. Montgomery [New] Montgomery, AL Regional Distribution 1989/1991 68,074 1,247,856
18. Murfreesboro Murfreesboro, TN Captive Production 1982/1988 106,400 2,934,400
19. Norfolk Norfolk, VA Regional Distribution 1971/1975 82,984 1,924,376
20. Oklahoma [1] Oklahoma City, OK Regional Production 1928/1961 64,116 721,281
21. Oklahoma [2] Oklahoma City, OK Regional Production 1968/1971 74,128 1,374,293
22. Portland Portland, ME Regional Production 1952/1963 151,649 1,834,971
23. Syracuse Syracuse, NY National Distribution 1960/1987 447,204 11,832,633
24. Tarboro Tarboro, NC Captive Production 1987 104,047 3,433,536
25. Tomah Tomah, WI Captive Production 1989/1994 161,000 4,589,800
26. Turlock 1 Turlock, CA Regional Production 1953/1968 138,902 2,500,236
27. Westgate Atlanta, GA National Distribution 1990/1993 334,662 11,454,919
28. West Memphis West Memphis, AR Regional Distribution 1985/1995 166,376 5,339,012
29. Wichita Witchita, KS Regional Production 1974/1979 126,312 2,808,825
Total 4,463,095 113,554,129
====================================================================================================================================
</TABLE>
<PAGE>
- -------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
URS Pool Loan
-------------------------------------------------------------------------------
Property Description
<TABLE>
<CAPTION>
Cut-Off Date
Allocated Loan Amount Appraised Underwritten
Property Value Cut-Off Date LTV Net Cash Flow DSCR
====================================================================================================================================
<S> <C> <C> <C> <C> <C>
1. Albertville $ 5,854,960 $ 9,800,000 59.7% $ 1,234,730 2.49 x
2. Augusta 2,688,502 4,500,000 59.7 390,388 1.71
3. Birmingham 3,076,841 5,150,000 59.7 509,776 1.96
4. Charlotte 1,792,335 3,000,000 59.7 325,639 2.15
Central
5. Charlotte North 9,977,330 16,700,000 59.7 1,808,272 2.14
6. Chelsea Memphis 2,569,013 4,300,000 59.7 465,972 2.14
7. Columbia 3,345,692 5,600,000 59.7 469,088 1.66
8. Ft. Smith 2,031,313 3,400,000 59.7 419,964 2.44
9. Gadsden 11,650,176 19,500,000 59.7 1,248,273 1.27
10. Gateway 33,000,000 50,700,000 65.1 6,229,915 2.23
11. Indianapolis 23,000,000 35,400,000 65.0 3,328,027 1.71
12. Lakewood 3,704,159 6,200,000 59.7 466,188 1.49
13. Leesport 17,505,136 29,300,000 59.7 2,540,676 1.71
14. Marshall 9,081,163 15,200,000 59.7 1,544,491 2.01
15. Memphis Parkway 8,543,462 14,300,000 59.7 1,178,457 1.63
16. Montezuma 6,392,661 10,700,000 59.7 1,206,608 2.23
17. Montgomery [New] 3,883,392 6,500,000 59.7 193,891 0.59
18. Murfreesboro 9,200,652 15,400,000 59.7 1,319,704 1.69
19. Norfolk 4,839,304 8,100,000 59.7 775,282 1.89
20. Oklahoma [1] 1,684,795 2,800,000 60.2 327,958 2.30
21. Oklahoma [2] 2,210,546 3,700,000 59.7 345,495 1.85
22. Portland 3,345,692 5,600,000 59.7 487,851 1.72
23. Syracuse 23,000,000 36,500,000 63.0 3,300,227 1.69
24. Tarboro 5,777,434 19,300,000 29.9 980,566 2.00
25. Tomah 11,172,220 18,700,000 59.7 2,327,549 2.46
26. Turlock 1 6,990,106 11,700,000 59.7 1,392,268 2.35
27. Westgate 20,313,127 34,000,000 59.7 3,011,833 1.75
28. West Memphis 11,411,198 19,100,000 59.7 1,817,016 1.88
29. Wichita 4,958,793 8,300,000 59.7 703,853 1.68
Total $253,000,000 $423,450,000 59.7% $40,349,956 1.88 x
====================================================================================================================================
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Tharaldson Pool B Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date(1)
$184,293,000 $183,352,232
Origination Date: January 20, 1998
Interest Rate: 6.876%
Amortization: 25 years
Hyperamortization: After the ARD, interest rate increases to 8.876% and
all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): February 11, 2008
Maturity Date: February 11, 2023
The Borrower/Sponsor: 94 separate special-purpose entities controlled by
Tharaldson Motels, Inc.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until the ARD.
Cut-Off Date Loan/Room: $31,299
Up-Front Reserves: Deferred Maintenance: $ 221,009
Environmental: $ 50,938
Seasonality: $1,299,196
Tax Liability: $1,243,143
Ongoing Reserves: FF&E: 5% of gross revenue
Seasonality: maintain at least one month's debt
service ($1,299,196) at all times
Collection Account: Sweep Lockbox
Cross-Collateralization/
Default: Yes
Partner Loans: None
Property Information
Single Asset/Portfolio: Portfolio of 93 assets
Property Type: Limited-Service Hotels
Property Location by [GRAPHIC OMITTED]
Allocated Loan Amount:
Years Built: 1988 - 1996
1997 Occupancy: 76%
1997 Average Daily Rate: $56.07
1997 REVPAR: $42.67
The Collateral: 93 limited-service hotels with approximately 5,858
rooms
Franchises: Comfort Inn
Comfort Suites
Country Inn & Suites
Courtyard
Days Inn
Fairfield Inn
Hampton Inn
Holiday Inn Express
Residence Inn
Super 8
Property Management: Tharaldson Property Management, Inc.
1997 Net Operating Income: $34,696,365
Underwritten Net Cash Flow: $36,701,015
Appraised Value: $331,000,000
Appraised By: Hospitality Valuation Services
Appraisal Date: January 1, 1998
Cut-Off Date LTV: 55.4%
DSCR (2): 2.35x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
- --------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Tharaldson Pool B Loan
- --------------------------------------------------------------------------------
Property Description
<TABLE>
<CAPTION>
Cut-Off Date
Number of Number of Allocated Loan Cut-Off Date Underwritten Net
Franchise Hotels Rooms Amount Appraised Value LTV Cash Flow DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Comfort Inn 19 1,097 $ 29,579,231 $ 53,900,000 54.9% $ 5,819,260 2.31x
Comfort Suites 5 306 10,271,299 18,400,000 55.8 1,912,947 2.19
Country Inn & Suites 2 126 4,083,050 8,000,000 51.0 996,749 2.87
Courtyard 3 234 8,800,843 15,600,000 56.4 1,796,479 2.40
Days Inn 1 62 1,480,404 2,200,000 67.3 227,774 1.81
Fairfield Inn 39 2,427 76,423,874 135,200,000 56.5 15,320,481 2.36
Hampton Inn 10 682 17,987,706 35,700,000 50.4 3,930,139 2.57
Holiday Inn Express 4 256 9,265,460 16,300,000 56.8 1,775,518 2.25
Residence Inn 6 442 20,821,168 36,400,000 57.2 3,974,502 2.24
Super 8 4 226 4,639,197 9,300,000 49.9 947,166 2.40
Total 93 5,858 $183,352,232 $331,000,000 55.4% $36,701,015 2.35x
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Cut-Off Date
Number of Number of Allocated Loan Cut-Off Date Underwritten Net
State Hotels Rooms Amount Appraised Value LTV Cash Flow DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CO 3 193 $ 6,123,580 $ 11,500,000 53.2% $ 1,180,537 2.27x
IA 8 453 11,521,882 23,300,000 49.5 2,357,253 2.41
IL 14 909 31,569,021 55,500,000 56.9 5,807,846 2.16
IN 5 308 8,863,522 15,200,000 58.3 1,609,658 2.14
KS 6 396 10,561,808 17,100,000 61.8 2,338,664 2.60
KY 3 178 5,861,923 9,900,000 59.2 1,172,558 2.35
MI 3 192 5,042,129 10,000,000 50.4 1,197,666 2.79
MN 5 299 8,516,303 14,800,000 57.5 1,841,923 2.54
MO 2 109 3,667,184 6,900,000 53.1 754,583 2.42
MT 3 179 5,423,174 9,500,000 57.1 1,085,999 2.36
ND 7 443 10,364,819 20,500,000 50.6 2,160,030 2.45
NE 2 123 4,592,437 8,400,000 54.7 957,467 2.45
OH 10 627 24,654,499 40,500,000 60.9 4,499,531 2.15
OK 4 267 9,625,612 18,100,000 53.2 2,109,717 2.58
TX 14 960 31,743,128 59,800,000 53.1 6,564,814 2.43
WI 3 166 3,672,158 6,800,000 54.0 727,795 2.33
WY 1 56 1,549,052 3,200,000 48.4 334,974 2.54
Total 93 5,858 $183,352,232 $331,000,000 55.4% $36,701,015 2.35x
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Tharaldson Pool A Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date (1)
$179,508,000 $178,671,275
Origination Date: January 20, 1998
Interest Rate: 6.876%
Amortization: 25 years
Hyperamortization: After the ARD, interest rate increases to 8.876% and
all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): February 11, 2008
Maturity Date: February 11, 2023
The Borrower/Sponsor: 92 separate special-purpose entities controlled by
Tharaldson Motels, Inc.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until the ARD.
Cut-Off Date Loan/Room: $30,553
Up-Front Reserves: Deferred Maintenance: $ 267,469
Environmental: $ 61,250
Seasonality: $1,265,463
Tax Liability: $1,276,281
Ongoing Reserves: FF&E: 5% of gross revenue
Seasonality: maintain at least one month's debt
service ($1,265,463) at all times
Collection Account: Sweep Lockbox
Cross-Collateralization/
Default: Yes
Partner Loans: None
Property Information
Single Asset/Portfolio: Portfolio of 90 assets
Property Type: Limited-Service Hotels
Property Location by [GRAPHIC OMITTED]
Allocated Loan Amount:
Years Built: 1988 - 1997
1997 Occupancy: 76%
1997 Average Daily Rate: $55.76
1997 REVPAR: $42.41
The Collateral: 90 limited-service hotels with approximately 5,848
rooms
Franchises: Comfort Inn
Comfort Suites
Country Inn & Suites
Courtyard
Fairfield Inn
Hampton Inn
Homewood Suites
Residence Inn
Sleep Inn
Super 8
Tharaldson Inn & Suites
Property Management: Tharaldson Property Management,
Inc.
1997 Net Operating Income: $33,817,012
Underwritten Net Cash Flow: $35,628,415
Appraised Value: $333,000,000
Appraised By: Hospitality Valuation Services
Appraisal Date: January 1, 1998
Cut-Off Date LTV: 53.7%
DSCR (2): 2.35x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
- --------------------------------------------------------------------------------
Grande LoanTM/SMII: Preliminary Collateral Term Sheet
Tharaldson Pool A Loan
-------------------------------------------------------------------------------
Property Description
<TABLE>
<CAPTION>
Cut-Off Date
Number of Number of Allocated Loan Cut-Off Underwritten Net
Franchise Hotels Rooms Amount Appraised Value Date LTV Cash Flow DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Comfort Inn 22 1,311 $ 35,315,615 $ 64,300,000 54.9% $ 6,606,045 2.20x
Comfort Suites 4 247 8,880,413 17,000,000 52.2 1,739,979 2.31
Country Inn & Suites 3 178 4,246,115 8,500,000 50.0 901,401 2.50
Courtyard 3 232 8,760,972 15,400,000 56.9 1,637,061 2.20
Fairfield Inn 35 2,302 72,911,552 132,000,000 55.2 15,272,264 2.46
Hampton Inn 12 789 24,071,273 43,500,000 55.3 4,457,368 2.18
Homewood Suites 1 66 2,660,541 4,900,000 54.3 530,757 2.35
Independent 1 121 2,986,016 9,700,000 30.8 596,736 2.35
Residence Inn 5 354 13,262,889 26,900,000 49.3 2,845,856 2.52
Sleep Inn 2 123 3,071,616 5,500,000 55.8 619,281 2.37
Super 8 1 61 1,075,961 2,000,000 53.8 185,907 2.03
Tharaldson Inn & Suites 1 64 1,428,311 3,300,000 43.3 235,760 1.94
Total 90 5,848 $178,671,275 $333,000,000 53.7% $35,628,415 2.35x
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Cut-Off Date
Number of Number of Allocated Loan Underwritten Net
State Hotels Rooms Amount Appraised Value Cut-Off Date LTV Cash Flow DSCR
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
AR 2 122 $ 3,314,478 $ 5,700,000 58.1% $ 728,330 2.59x
IA 7 446 10,929,815 22,800,000 47.9 2,393,825 2.58
IL 23 1,445 44,746,450 79,900,000 56.0 8,619,687 2.27
IN 8 511 13,921,804 27,300,000 51.0 2,657,275 2.25
KY 1 68 2,744,149 4,900,000 56.0 577,626 2.48
MI 1 57 2,188,750 4,000,000 54.7 498,473 2.68
MN 5 458 15,078,387 32,500,000 46.4 3,273,690 2.55
MT 3 184 5,376,820 9,900,000 54.3 1,130,862 2.47
ND 3 176 3,274,665 7,400,000 44.3 798,828 2.87
OH 15 950 32,727,735 57,200,000 57.2 5,924,268 2.13
OK 2 128 3,870,873 7,400,000 52.3 855,355 2.60
SD 2 128 3,440,886 7,200,000 47.8 694,620 2.38
TX 11 726 23,745,797 43,200,000 55.0 4,821,418 2.39
WI 7 449 13,310,666 23,600,000 56.4 2,654,158 2.35
Total 90 5,848 $178,671,275 $333,000,000 53.7% $35,628,415 2.35x
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SMII: Preliminary Collateral Term Sheet
Green Acres Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date(1)
$160,000,000 $159,523,713
Origination Date: February 11, 1998
Interest Rate: 6.750%
Amortization: 30 years
Hyperamortization: After the ARD, the interest rate increases to 8.750%
and all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): February 11, 2008
Maturity Date: March 11, 2028
The Borrower/Sponsor: Green Acres Mall, L.L.C., a special-purpose entity
controlled by Vornado Realty L.P.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until one payment date prior to the ARD.
Cut-Off Date Loan/NRSF: $87
Up-Front Reserves: Deferred Maintenance:
$69,375
Ongoing Reserves: CapEx: $0.15/SF/year
Low Debt Service: Cash flow in excess of debt service
is escrowed if the DSCR falls below 1.25x.
Collection Account: Hard Lockbox
Cross-Collateralization/
Default: Not Applicable
Partner Loans: None
Property Information
Single Asset/Portfolio: Single Asset
Property Type: Retail
Location: Valley Stream, NY
Year Built/Renovated: 1958/1991
Occupancy(2): 91% (as of March 25, 1998)
The Collateral: An enclosed two-story regional shopping center and
13 free-standing out-parcel buildings encompassing
approximately 1,828,882 rentable square feet.
Covenant Lease
Major Tenants NRSF Expiration Expiration
Macy's 266,676 N/A 08/18/06
Sterns 186,922 N/A 01/31/07
Sears (ground lease) 144,537 10/31/98 10/31/23
K-Mart 131,433 N/A 08/12/10
Dime Bank 62,200 N/A 08/31/00
Waldbaums 54,225 N/A 09/26/11
Property Management: Vornado Realty L.P.
1997 Net Operating Income: $20,750,067
Underwritten Net Cash Flow: $19,421,844
Appraised Value: $253,200,000
Appraised By: Landauer Associates, Inc.
Appraisal Date: March 1, 1998
Cut-Off Date LTV: 63.0%
DSCR(2): 1.54x
(1) May 11, 1998.
(2) Excluding basement storage space.
(3) Based on Underwritten Net Cash Flow.
<PAGE>
- --------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Green Acres Loan
- --------------------------------------------------------------------------------
Lease Expiration Schedule
<TABLE>
<CAPTION>
Year Ending Dec. 31 Expiring SF(1) % of Total SF Annualized Base Rent % of Total Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C>
MO/MO 29,710 1.6% $ 322,652 1.8%
1998 12,461 0.7 346,490 1.9
1999 62,766 3.4 943,505 5.2
2000 92,357 5.0 1,445,567 7.9
2001 61,451 3.4 1,324,849 7.3
2002 56,005 3.1 1,390,870 7.6
2003 54,043 3.0 1,238,612 6.8
2004 41,088 2.2 1,290,814 7.1
2005 71,254 3.9 1,850,135 10.2
2006 323,016 17.7 2,131,356 11.7
2007 249,978 13.7 1,949,589 10.7
Thereafter 526,627 28.8 3,993,398 21.9
Vacant 248,226 13.6 -- 0.0
Total 1,828,882 100.0% $18,227,837 100.0%
====================================================================================================================================
</TABLE>
(1) Including Storage Space.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Americold Pool Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance(1): Original Cut-Off Date(2)
$ 148,500,000 $ 148,500,000
Origination Date: April 22, 1998
Interest Rate: 6.894%
Amortization: 25 years
Hyperamortization: After the ARD, interest rate increases to 8.894% and
all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): May 11, 2008
Maturity Date: May 11, 2023
The Borrower/Sponsor: Americold Real Estate, L.P., a special-purpose entity
controlled by Vornado Realty L.P. and Crescent Real
Estate Equities Company.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until one payment date prior to the ARD.
Cut-Off Date
Loan/NRSF(3): $47
Up-Front Reserves (3): Deferred Maintenance: $1,948,178
Ongoing Reserves (3): CapEx: $6,534,838/year
Low Debt Service: cash flow in excess of debt service
is escrowed if the DSCR falls below 1.25x.
Collection Account: Hard Lockbox
Cross-Collateralization/
Default: Yes
Partner Loans: None
Property Information
Single Asset/Portfolio: Portfolio of 29 assets
Property Type: Refrigerated
Distribution/Warehouse
Property Location by Allocated
Loan Amount:
[GRAPHIC OMITTED]
The Collateral: 29 cold storage warehouses
SF: 6,265,643
Cubic SF: 155,355,702
Property Management: Americold Corporation
(dba Americold Logistics)
1997 Net Operating Income (3): $56,460,577
Underwritten Net Cash Flow (3): $48,889,851
Appraised Value (3): $520,600,000
Appraised By: Landauer Associates
Appraisal Date: March 1, 1998
Cut-Off Date LTV (3): 57.0%
DSCR (4): 1.94x
(1) A single note, representing 50% of the $297,000,000 loan is being
contributed to the trust, the other 50% note is currently held by GSMC.
(2) May 11, 1998.
(3) Assuming a $297,000,000 loan amount.
(4) Based on Underwritten Net Cash Flow and total loan debt service.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Americold Pool Loan
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Property Description
- ------------------------------------------------------------------------------------------------------------------------------------
Year Built /
Property Location Property Type Renovated Square Footage Cubic Footage
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1. Ash Street Denver, CO Regional 1976/1980 116,250 2,800,000
Distribution
2. Bettendorf Bettendorf, IA Regional 1973/1977 336,000 8,848,000
Distribution
3. Boston Boston, MA Regional 1969 218,316 3,067,994
Distribution
4. Burley Burley, ID Captive Production 1965/1968 407,217 10,722,101
5. Burlington Burlington, WA Captive Production 1959/1996 194,000 4,655,000
6. Clearfield Clearfield, UT National 1973/1978 358,400 8,601,600
Distribution
7. Connell Connell, WA Captive Production 1969/1971 235,200 5,644,800
8. Main Street Gloucester, MA Regional Production 1961/1973 95,487 1,862,768
9. Fogelsville Fogelsville, PA National 1976/1997 683,914 21,623,336
Distribution
10. Ft. Dodge Fort Dodge, IA Regional 1979/1980 155,811 3,739,464
Distribution
11. Hermiston Hermiston, OR Captive Production 1975 283,200 4,032,000
12. Jesse St. Los Angeles, CA National 1954/1980 141,600 2,682,400
Distribution
13. Lois Avenue Tampa, FL Regional 1953 22,220 400,000
Distribution
14. Milwaukie Portland, OR Regional 1958/1988 196,626 4,688,424
Distribution
15. Moses Lake Moses Lake, WA Captive Production 1967/1979 302,400 7,257,600
16. Nampa Nampa, ID Regional Production 1946/1974 364,000 7,981,000
17. Plant City Plant City, FL Regional Production 1956 30,777 750,000
18. Plover Plover, WI Captive Production 1978/1981 358,400 9,363,200
19. Rail Road Ave. Gloucester, MA Regional Production 1964 13,602 270,480
20. Rochelle Rochelle, IL National 1967 179,712 6,020,352
Distribution
21. Rogers St. Gloucester, MA Regional Production 1955/1969 95,151 2,823,256
22. Rowe Square Gloucester, MA Regional Production 1963/1981 126,406 2,387,465
23. Salem Salem, OR Regional Production 1996 498,400 12,487,600
24. Southgate Atlanta, GA National 1985 100,714 3,524,990
Distribution
25. Turlock 2 Turlock, CA Regional Production 1960/1968 108,400 3,024,000
26. Walla Walla Walla Walla, WA Regional Production 1981 140,000 3,136,000
27. Wallula Wallula, WA Captive Production 1985 40,000 1,200,000
28. Watsonville Watsonville, CA Captive Production 1995 186,000 5,448,500
29. Woodburn Woodburn, OR Regional Production 1952/1979 277,440 6,313,372
Total 6,265,643 155,355,702
====================================================================================================================================
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Americold Pool Loan
- --------------------------------------------------------------------------------
Property Description
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cut-Off Date Allocated Underwritten
Property Loan Amount Appraised Value Cut-Off Date LTV (1) Net Cash Flow DSCR
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
1. Ash Street 1,768,536 6,200,000 57.0% 462,849 1.54x
2. Bettendorf 4,107,568 14,400,000 57.0 1,088,267 1.56
3. Boston 2,110,834 7,400,000 57.0 606,267 1.69
4. Burley 10,012,197 35,100,000 57.0 4,653,746 2.74
5. Burlington 4,506,915 15,800,000 57.0 1,783,553 2.33
6. Clearfield 7,929,889 27,800,000 57.0 3,016,924 2.24
7. Connell 6,532,174 22,900,000 57.0 2,368,940 2.14
8. Main Street 2,367,557 8,300,000 57.0 714,605 1.78
9. Fogelsville 16,430,273 57,600,000 57.0 2,139,954 0.77
10. Ft. Dodge 1,354,927 4,750,000 57.0 346,861 1.51
11. Hermiston 6,703,323 23,500,000 57.0 2,739,870 2.41
12. Jesse St. 2,082,309 7,300,000 57.0 685,951 1.94
13. Lois Avenue 128,362 450,000 57.0 67,936 3.12
14. Milwaukie 5,391,183 18,900,000 57.0 2,131,188 2.33
15. Moses Lake 9,755,474 34,200,000 57.0 3,561,526 2.15
16. Nampa 5,819,055 20,400,000 57.0 680,270 0.69
17. Plant City 684,595 2,400,000 57.0 186,202 1.60
18. Plover 13,634,844 47,800,000 57.0 5,024,753 2.17
19. Rail Road Ave. 656,070 2,300,000 57.0 164,781 1.48
20. Rochelle 7,017,096 24,600,000 57.0 2,872,681 2.41
21. Rogers St. 3,480,023 12,200,000 57.0 1,064,918 1.80
22. Rowe Square 4,079,043 14,300,000 57.0 1,321,472 1.91
23. Salem 9,299,078 32,600,000 57.0 3,364,696 2.13
24. Southgate 3,052,151 10,700,000 57.0 352,282 0.68
25. Turlock 2 2,595,755 9,100,000 57.0 942,005 2.14
26. Walla Walla 2,852,478 10,000,000 57.0 973,992 2.01
27. Wallula 1,939,685 6,800,000 57.0 833,766 2.53
28. Watsonville 5,191,510 18,200,000 57.0 2,001,777 2.27
29. Woodburn 7,017,096 24,600,000 57.0 2,737,821 2.30
Total 148,500,000 520,600,000 57.0% 48,889,852 1.94x
====================================================================================================================================
</TABLE>
(1) Assuming a $297,000,000 Cut-Off Date Loan Amount.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Pier 39 Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date (1)
$117,000,000 $116,669,545
Origination Date: January 27, 1998
Interest Rate: 7.107%
Amortization: 30 years
Hyperamortization: After the ARD, the interest rate increases to 9.107%
and all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): April 11, 2008
Maturity Date: February 11, 2028
The Borrower/Sponsor: Pier 39 Limited Partnership, a special-purpose entity
owned by a group of wealthy individuals.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until three payment dates prior to the ARD.
Cut-Off Date Loan/NRSF: $488
Up-Front Reserves: Deferred Maintenance: $1,092,899
Unfunded Obligations: $ 400,000
Escalator Installation: $ 500,000
Ongoing Reserves: CapEx: $126,768/year
Low Debt Service: cash flow in excess of debt service
is escrowed if the DSCR falls below 1.20x.
Collection Account: Hard Lockbox
Earthquake Insurance: Full Amount of the PML with 10%
deductible
Partner Loans: None
Property Information
Single Asset/Portfolio: Single Asset
Property Type: Retail/Entertainment
Location: San Francisco, CA
Year Built: 1978
Occupancy: 98% (as of April 1, 1998)
The Collateral: 239,011 square foot retail/entertainment center
with a 980 space parking garage, located in the
Fisherman's Wharf area of San Francisco, CA.
Property Management: Moor + South
1997 Net Operating Income: $13,737,244
Underwritten Net Cash Flow: $13,153,909
Appraised Value: $158,000,000
Appraisal By: Koeppel Tener Real Estate
Services, Inc.
Appraisal Date: December 29, 1997
Cut-Off Date LTV: 73.8%
DSCR (2): 1.38x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Pier 39 Loan
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Lease Expiration Schedule
Year Ending Dec. 31 Expiring SF % of Total SF Annualized Base Rent % of Total Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C>
MO/MO 9,862 4.1% 333,570 3.5%
1998 7,889 3.3 884,358 9.3
1999 10,668 4.5 273,066 2.9
2000 25,055 10.5 1,540,624 16.2
2001 12,848 5.4 876,507 9.2
2002 18,804 7.9 1,113,539 11.7
2003 6,228 2.6 560,868 5.9
2004 15,401 6.4 911,172 9.6
2005 11,350 4.7 444,885 4.7
2006 15,578 6.5 815,845 8.6
2007 5,890 2.5 281,538 3.0
Thereafter 95,339 39.9 1,464,291 15.4
Vacant 4,099 1.7 -- 0.0
Total 239,011 100.0% 9,500,262 100.0%
====================================================================================================================================
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
One Commerce Square Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date (1)
Tranche A: $ 80,000,000 $ 79,929,131
Tranche B: 32,000,000 31,481,501
Total $112,000,000 $111,410,632
Origination Date: March 16, 1998
Interest Rate: 6.995%
Amortization: Tranche A: $80,000,000 amortized over a 30-year term
Tranche B: $32,000,000 fully amortized over 53-month
term (sized to be amortized by the above market IBM
rent component)
Hyperamortization: Tranche A: After the ARD, interest rate increases to
8.995% and all excess cash flow is used to reduce
outstanding principal balance; the additional 2%
interest is accrued until principal balance is zero.
Tranche B: Not Applicable
Anticipated Repayment Tranche A: April 11, 2008
Date ("ARD"): Tranche B: September 11, 2002
Maturity Date: April 11, 2028
The Borrower/Sponsor: Commerce Square Partners-Philadelphia Plaza, L.P., a
special-purpose entity controlled by Lazard Freres
Real Estate Investors, L.L.C.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until one payment date prior to the ARD.
Cut-Off Date Loan/NRSF: $118
Up-Front Reserves: Unfunded Obligations: $2,978,272
TI/Leasing Commissions: $4,497,025
Deferred Maintenance: $ 352,000
Ongoing Reserves: Cap Ex: $0.20/SF/year
TI/Leasing Commissions: Must maintain minimum balance
of $2,078,164
Low Debt Service: cash flow in excess of debt service
is escrowed if the net operating income falls below
$8,000,000, excluding the above market IBM rent
component.
Collection Account: Hard Lockbox
Partner Loans: $9,250,000 provided by an affiliate of Lazard Freres;
issued to an affiliate of Commerce Square
Partners-Philadelphia Plaza, L.P. and secured by a
pledge of partnership interests.
Property Information
Single Asset/Portfolio: Single Asset
Property Type: Office
Location: Philadelphia, PA
Year Built: 1987
Occupancy: 91% (as of March 1998)
The Collateral: 942,866 rentable square feet of office and retail
space in a 41-story tower with two levels of
subterranean parking
Major Tenants NRSF Expiration
IBM 504,112 SF 09/30/02
Stradley Ronon 77,778 SF 12/31/10
Delaware Management 58,532 SF 04/30/02
Kvaerner, Inc. 29,278 SF 10/31/13
Panitch, Schwarze 26,229 SF 10/31/08
Property Management: Thomas Development Partners, LLC
1997 Net Operating Income: $20,974,917
Underwritten Net Tranche A: $8,552,522
Cash Flow (2): Tranche B: $9,021,744
Appraised Value: $135,000,000
Appraised By: Landauer Associates, Inc.
Appraisal Date: February 1, 1998
Cut-Off Date LTV: 82.5%
DSCR (3): Tranche A: 1.34x
Tranche B: 1.07x
(1) May 11, 1998.
(2) Tranche B Underwritten Net Cash Flow is attributable to the above market
IBM rent component.
(3) Based on Underwritten Net Cash Flow for each Tranche.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
One Commerce Square Loan
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Lease Expiration Schedule
Year Ending Dec. 31 Expiring SF % of Total SF Annualized Tenant Base Rent % of Total Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C>
MO/MO 200 0.0% $ 4,000 0.0%
1998 -- 0.0 500 0.0
1999 34,611 3.7 853,597 3.7
2000 8,319 0.9 70,712 0.3
2001 10,280 1.1 149,112 0.6
2002 591,881 62.8 18,205,240 78.6
2003 6,475 0.7 67,988 0.3
2004 -- 0.0 -- 0.0
2005 14,293 1.5 92,905 0.4
2006 34,190 3.6 348,195 1.5
2007 4,466 0.5 58,058 0.3
Thereafter 157,289 16.7 3,325,929 14.4
Vacant 80,862 8.6 -- 0.0
Total 942,866 100.0% $23,176,233 100.0%
====================================================================================================================================
</TABLE>
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Marriott Desert Springs Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date (1)
$103,000,000 $102,418,958
Origination Date: November 25, 1997
Interest Rate: 7.800%
Amortization: 25 years
Hyperamortization: After the ARD, interest rate increases to 9.800% and
all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): June 11, 2010
Maturity Date: December 11, 2022
The Borrower/Sponsor: DS Hotel LLC, a special-purpose entity controlled by
Host Marriott Corporation.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until the ARD.
Cut-Off Date Loan/Room: $115,859
Up-Front Reserves: Incentive Management Fee: $1,940,000
Water Chiller: $1,500,000
FF&E: $1,489,163
Debt Service: $4,732,357
Ongoing Reserves: Incentive Management Fee: To be maintained only after
ARD; up to $1,800,000
FF&E: 5.5% of gross revenue Debt service: Monthly
deposit required up to 600% of required debt service
payment
Collection Account: Springing Lockbox
Earthquake Insurance: Full Amount of PML with 5% deductible
Partner Loans: $19,733,165 mezzanine financing provided by GSMC
secured by a pledge of all of the membership interests
in DS Hotel LLC, and $59,727,272 junior financing
provided by an affiliate of Host Marriott Corporation
secured by a pledge of all of the membership interests
in the sole beneficial owner of DS Hotel LLC.
Property Information
Single Asset/Portfolio: Single Asset
Property Type: Full-Service Hotel
Location: Palm Desert, CA
Year Built: 1987
1997 Occupancy: 73%
1997 Average Daily Rate: $169.07
1997 REVPAR: $123.42
The Collateral: 884-room hotel with two golf courses, a 30,000 square
foot spa and over 49,000 square feet of meeting space.
Property Management: Marriott Hotel Services, Inc., a wholly owned
subsidiary of Marriott International, Inc.
1997 Net Operating
Income: $21,698,185
Underwritten Net
Cash Flow: $21,500,000
Appraised Value (2): $205,000,000
Appraised By: Hospitality Valuation Services
Appraisal Date: November 14, 1997
Cut-Off Date LTV (2): 50.0%
DSCR (3): 2.27x
(1) May 11, 1998
(2) This value assumes an operating lease agreement between Desert Springs
Marriott, L.P. and Desert Springs Hotel Services; the appraised value
assuming operation by Marriott International under a long-term market-level
management agreement is $237,000,000.
(3) Based on Underwritten net Cash Flow.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Showcase Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-
Off Date (1)
$79,500,000 $78,998,166
Origination Date: September 12, 1997
Interest Rate: 7.523%
Amortization: 28 Years
Hyperamortization: After the ARD, the interest rate increases to 9.523%
and all excess cash flow is used to reduce outstanding
principal balance; the additional 2% interest is
accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): November 11, 2007
Maturity Date: November 11, 2025
The Borrower/Sponsor: Showcase Mall Joint Venture, a special-purpose entity
controlled by Forest City Enterprises.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until one payment date prior to the ARD.
Cut-Off Date Loan/NRSF: $424
Up-Front Reserves: Unfunded Obligations: $2,296,899
Ongoing Reserves: CapEx: $0.15/SF/year
Low Debt Service: Cash flow in excess of debt service
is escrowed if net operating income falls below
$8,500,000.
Collection Account: Hard Lockbox
Cross-Collateralization/
Default: Not Applicable
Partner Loans: None
Property Information
Single Asset/Portfolio: Single Asset
Property Type: Retail/Entertainment
Location: Las Vegas, NV
Year Built: 1997
Occupancy: 99% (as of December 31, 1997)
The Collateral: 186,400 square foot retail/entertainment center
with a 1,500 parking space garage, located along
"The Strip" in Las Vegas, NV.
Major Tenants NRSF Expiration
The World of Coke 34,641 SF 07/31/17
Ethel M Chocolates 28,601 SF 08/31/12
SEGA Gameworks 47,161 SF 03/31/12
All-Star Cafe 36,172 SF 12/31/16
U.A. Theaters 41,108 SF 12/31/17
Property Management: Forest City Commercial Management,
Inc.
1997 Net Operating Income: N/A (Opened in July, 1997)
Underwritten Net Cash Flow: $9,902,261
Appraised Value: $117,500,000
Appraised By: Cushman & Wakefield
Appraisal Date: September 1, 1997
Cut-Off Date LTV: 67.2%
DSCR (2): 1.44x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
-------------------------------------------------------------------------------
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Crystal City Pool Loan
-------------------------------------------------------------------------------
Loan Information
Principal Balance: Original Cut-Off Date (1)
$77,000,000 $76,608,478
Origination Date: October 31, 1997
Interest Rate: 6.904%
Amortization: 30 years
Hyperamortization: After the ARD, the interest rate increases to 8.904%
and all excess cash flow is used to reduce
outstanding principal balance; the additional 2%
interest is accrued until principal balance is zero.
Anticipated Repayment
Date ("ARD"): November 11, 2007
Maturity Date: October 31, 2027
The Borrower/Sponsor: CESC/Rosslyn L.LC., a special-purpose entity
controlled by Charles E. Smith Commercial Realty L.P.
Call Protection: Two-year prepayment lockout from the date of
securitization with U.S. Treasury defeasance
thereafter until the ARD.
Cut-Off Date Loan/NRSF: $132
Up-Front Reserves: TI/Leasing Commissions: $1,000,000
CapEx: $ 116,000
Debt Service: $ 507,328
Ongoing Reserves: TI/Leasing Commisions: $83,333 per month until
September 1998.
Low Debt Service: Cash flow in excess of debt service
is escrowed if net operating income falls below
$9,500,000.
Collection Account: Springing Lockbox
Cross-Collateralization/
Default: Yes
Partner Loans: None
Property Information
Single Asset/Portfolio: Portfolio of three assets
Property Type: Office
Location: Arlington County, Virginia
Years Built: 1985, 1987 & 1990
Occupancy: 97% (as of February 1998)
The Collateral: Three Class A office buildings, comprising
approximately 579,416 SF, located in the Crystal
City area of Northern Virginia
Office: 572,329 NRSF
Retail: 2,800 NRSF
Storage: 4,287 NRSF
Total Space: 579,416 NRSF
Garage Space: 1,602 spaces
Major Tenants NRSF Expiration
U.S. Government 214,764 SF 1/99 - 3/02
Systems Research 109,127 SF 9/98 - 6/01
Property Management: Charles E. Smith Real Estate
Services, L.P.
1997 Net Operating Income: $10,851,545
Underwritten Net Cash Flow: $9,774,441
Appraised Value: $115,100,000
Appraised By: Cushman & Wakefield
Appraisal Date: October 1997
Cut-Off Date LTV: 66.6%
DSCR (2): 1.61x
(1) May 11, 1998.
(2) Based on Underwritten Net Cash Flow.
<PAGE>
Grande LoanTM/SM II: Preliminary Collateral Term Sheet
Crystal City Pool Loan
<TABLE>
<CAPTION>
Lease Expiration Schedule
Year Ending Dec. 31 Expiring SF % of Total SF Annualized Tenant Base Rent % of Total Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C>
MO/MO -- 0.0% $ -- 0.0%
1998 53,742 9.3 1,433,436 9.7
1999 244,607 42.2 6,188,340 42.1
2000 50,087 8.6 1,357,320 9.2
2001 168,707 29.1 4,620,492 31.4
2002 32,434 5.6 812,610 5.5
2003 -- 0.0 -- 0.0
2004 12,378 2.1 301,596 2.0
2005 -- 0.0 -- 0.0
2006 -- 0.0 -- 0.0
2007 -- 0.0 -- 0.0
Thereafter -- 0.0 -- 0.0
Vacant 17,461 3.0 -- 0.0
Total 579,416 100.0% $14,713,344 100.0%
====================================================================================================================================
</TABLE>
