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: October 6, 1998
- -------------------------------
(Date of earliest event reported)
Morgan Stanley Capital I Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-45467- 13-3291626
- --------------------------------------------------------------------------------
(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
1585 Broadway, New York, N.Y. 10036
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 761-4000
<PAGE>
Item 5. Other Events.
Attached are certain structural and collateral term sheets (the "Term
Sheets") furnished to the Registrant by Morgan Stanley & Co. Incorporated (the
"Underwriter"), the underwriter in respect of the Registrant's proposed offering
of Commercial Mortgage Pass-Through Certificates, Series 1998-XL2 (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. 333-45467) (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 Collateral Term Sheets
and Structural Term Sheets.
Any statement or information contained in the 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and superseded for purposes of the Prospectus and the Registration Statement by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 99 Term Sheets.
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.
MORGAN STANLEY CAPITAL I INC.
By: /s/ Shirish Godbole
-------------------
Name: Shirish Godbole
---------------
Title: Vice President
--------------
Date: October 6, 1998
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Description Page
- ----------- ----------- ----
99 Term Sheets
EXHIBIT 99
This information has been prepared in connection with the issuance of the
securities referenced above and is based in part on information provided by the
Mortgage Loan Seller with respect to the expected characteristics of the
Mortgage Loans in which these securities will represent undivided beneficial
interests. The actual characteristics and performance of the Mortgage Loans will
differ from the assumptions used in preparing these materials, which are
hypothetical in nature. Changes in the assumptions may have a material impact on
the information set forth in these materials. No representation is made that any
performance or return hypothesized herein will be achieved. For example, it is
very unlikely that the Mortgage Loans will prepay at a constant rate or follow a
predictable pattern. NO REPRESENTATION IS MADE AS TO THE APPROPRIATENESS,
USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS OR THE ASSUMPTIONS ON
WHICH THEY ARE BASED. Additional information is available upon request. These
materials do not constitute an offer to buy or sell or a solicitation of an
offer to buy or sell any security or instrument in any jurisdiction or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE ONLY PURSUANT TO A DEFINITIVE PROSPECTUS AND
PROSPECTUS SUPPLEMENT OR PRIVATE PLACEMENT MEMORANDUM PREPARED BY THE ISSUER
WHICH WOULD CONTAIN MATERIAL INFORMATION NOT CONTAINED IN THESE MATERIALS. SUCH
PROSPECTUS AND PROSPECTUS SUPPLEMENT OR PRIVATE PLACEMENT MEMORANDUM WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY IN RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT OR PRIVATE PLACEMENT MEMORANDUM.
ANY CAPITALIZED TERMS USED BUT NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION
WITH SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT OR PRIVATE PLACEMENT MEMORANDUM.
In the event of any such offering, these materials, including any description of
the Mortgage Loans contained herein, shall be deemed superseded in their
entirety by such Prospectus and Prospectus Supplement or Private Placement
Memorandum. To our Readers Worldwide: In addition, please note that this
information has been provided by Morgan Stanley & Co. Incorporated and approved
by Morgan Stanley & Co. International Limited, a member of the Securities and
Future Authority, and Morgan Stanley Japan Ltd. We recommend that investors
obtain the advice of their Morgan Stanley & Co. International Limited or Morgan
Stanley Japan Ltd. representative about the investment concerned.
NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U.K. SECURITIES AND
FUTURES AUTHORITY.
Term Sheets
- --------------------------------------------------------------------------------
MORGAN STANLEY
Real Estate Debt Capital Markets [GRAPHIC OMITTED]
Mortgage/Asset Backed Capital Markets MORGAN STANLEY DEAN WITTER
- --------------------------------------------------------------------------------
CMBS New Issue
Preliminary Term Sheet
- --------------------------------------------------------------------------------
$706.6 MM
(Approximate)
Morgan Stanley Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
-------------------
[GRAPHIC OMITTED]
-------------------
MORGAN STANLEY DEAN WITTER
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Structural Term Sheet
- --------------------------------------------------------------------------------
Preliminary Structural Term Sheet
$706.5 MM (Approximate)
Morgan Stanley Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Overview of the Certificates
- ---------- ----------- --------------------- --------------- ----------------- ------------------ ------------------ ---------------
Expected Final Anticipated
Amount(1)(2) Ratings Subordination Average Life Principal Distribution Pass-Through
Class ($MM) (DCR/S&P) % (yrs)(3) Window(3) (4) Date(3) Rate(5) (6)
- ---------- ----------- --------------------- --------------- ----------------- ------------------ ------------------ ---------------
Public Certificates:
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 $43.3 AAA/AAA 27.75% 5.44 1-106 8/03/07 Fixed
A-2 467.1 AAA/AAA 27.75 9.88 106-120 10/03/08 Fixed
X 706.5 AAA/AAA - - 1-120 10/03/08 Variable
B 75.9 AA/AA 17.0 9.96 120 10/03/08 WAC - Fixed Strip
C 42.4 A/A 11.0 9.96 120 10/03/08 WAC - Fixed Strip
D 45.9 BBB/BBB 4.5 9.96 120 10/03/08 WAC - Fixed Strip
E 21.2 BBB-/BBB- 1.5 9.96 120 10/03/08 WAC - Fixed Strip
Private Certificates:
- ---------------------
F 10.6 BB/BB- - 9.96 120 10/03/08 Fixed
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Approximate, in the case of each such Class, subject to a
permitted variance of plus or minus 5%.
(2) Class X Notional Amount is equal to the sum of all Certificate
Principal Amounts outstanding from time to time.
(3) Based on Modeling Assumptions and Scenario 1, each as defined
in the Prospectus Supplement.
(4) Principal Window is the period (expressed in terms of months
and commencing with the month of the first Distribution Date)
during which distributions of principal are expected to be
made to the holders of each designed Class in accordance with
the Modeling Assumptions.
(5) In the case of A-1, A-2, and F classes, interest will accrue
at a fixed rate, in the case of B, C, D and E classes,
interest will accrue at the Weighted Average Net Mortgage Rate
for such Distribution Date less a fixed interest strip. The
Pass Through rate for class X is described on page 4 of this
term sheet. (6)Subject to change at pricing.
- --------------------------------------------------------------------------------
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
I. Issue Characteristics
---------------------
Issue Type: The Class A-1, A-2, X, B, C, D and E Certificates will be
offered publicly through a Prospectus Supplement (and
accompanying Prospectus) to be dated October [___], 1998,
and the class F will be privately placed (pursuant to Rule
144A under the Securities Act of 1933, as amended) pursuant
to a Private Placement Memorandum to be dated October [___],
1998.
Collateral: The collateral consists of approximately $706.5 million pool
of 7 fixed rate commercial mortgage loans.
Securities
Issued: $706,465,702 monthly pay, multi-class sequential pay,
commercial mortgage REMIC pass-through certificates,
including seven principal and interest Classes (Classes A-1,
A-2, B, C, D, E and F) and an interest-only Class (Class X)
whose Notional Amount consists of seven separate strip
components, each corresponding to the Class A-1, A-2, B, C,
D, E and F Certificates.
Depositor: Morgan Stanley Capital I Inc.
Lead Manager: Morgan Stanley & Co. Incorporated
Master
Servicer: Midland Loan Services, Inc.
Special
Servicer: Midland Loan Services, Inc.
Trustee/Fiscal
Agent: Norwest Bank Minnesota, National Association
Pricing Date: On or about October [___], 1998
Expected
Closing Date: On or about October [___], 1998
Distribution
Dates: The 3rd business day of each month, commencing November,
1998
Minimum
Denominations: $10,000 for Public Certificates (other than the Class X
Certificates); $100,000 for all other Certificates. DTC,
Euroclear and Cedel, same day funds, with accrued interest
Settlement
Terms: DTC, Euroclear and Cedel, same day funds, with accrued
interest
Legal/Regulatory
Status: Class A-1, A-2 and X Certificates are expected to be
eligible for exemptive relief under ERISA. The remaining
Principal Balance Certificates can be purchased by an
insurance company general account under PTE 95-60. Class
A-1, A-2, X and B Certificates are expected to be SMMEA
eligible so long as they are rated in the two highest rat-
ing categories and the loans are secured by real estate.
Risk Factors: THE CERTIFICATES INVOLVE A DEGREE OF RISK AND MAY NOT BE
SUITABLE FOR ALL INVESTORS. SEE THE "RISK FACTORS" SECTION
OF THE PROSPECTUS SUPPLEMENT, PROSPECTUS AND PRIVATE
PLACEMENT MEMORANDUM
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
II. Structure Characteristics
-------------------------
Anticipated
Pass-Through
Rates: Class A-1: Fixed
Class A-2: Fixed
Class B: WAC - Fixed Strip
Class C: WAC - Fixed Strip
Class D: WAC - Fixed Strip
Class E: WAC - Fixed Strip
Class F Fixed
Class X: The Pass-Through Rate on the Class X
Certificates on each Distribution Date will
equal, in general, the weighted average of the
Class X Component Rates for the respective
Principal Balance Certificates for such
Distribution Date. The Class X Component Rate
in respect of the Class A-1, A-2, B, C, D, E
and F Certificates will, in general, equal the
excess, if any, of the Weighted Average Net
Mortgage Rate over the Pass-Through rates
applicable to the Class A-1, A-2, B, C, D, E
and F Certificates.
The Pass-Through Rate for each class of
Principal Balance Certificates for any
Distribution Date will not exceed the
Weighted Average Net Mortgage Rate for such
Distribution Date.
Interest
Distributions: Each Class of Certificates will be entitled on each
Distribution Date to interest accrued at its Pass-Through
Rate on the outstanding Certificate Principal Amount or
Notional Amount of such Class, as applicable.
Principal
Distributions: Principal will be distributed on each Distribution Date to
the most senior Class (i.e., the Class with the earliest
alphabetical/numerical Class designation) of the Principal
Balance Certificates outstanding, until its Certificate
Principal Amount is reduced to zero (sequential order). If,
due to losses, the Certificate Principal Amounts of the
Class B through Class F Certificates are reduced to zero,
payments of principal to the Class A-1 and A-2 Certificates
will be made on a pro rata basis.
Credit
Enhancement: Each class of Certificates (other than Classes A-1, A-2 and
X) will be subordinated to all other Classes with an earlier
alphabetical Class designation.
Advancing: The Master Servicer, the Trustee and the Fiscal Agent (in
that order) will each be obligated to make P&I Advances and
Servicing Advances, including delinquent property taxes and
insurance, but only to the extent that such Advances are
deemed recoverable.
Realized Losses
and Expense
Losses: Realized Losses and trust fund expenses, if any, will be
allocated to the Class F, Class E, Class D, Class C and
Class B Certificates, in that order, and then to Classes A-1
and A-2 pro rata, in each case reducing amounts payable
thereto. Any interest shortfall of any Class of Certificates
will result in unpaid interest for such Class which,
together with interest thereon compounded monthly at
one-twelfth the applicable Class Pass-Through Rate, will be
payable in subsequent periods, subject to available funds.
Prepayment
Interest
Shortfalls: For any Distribution Date, any Net Aggregate Prepayment
Interest Shortfall not offset, as applicable, by the
Servicing Fee for such Distribution Date, will generally be
allocated to the Class F, Class E, Class D, Class C and
Class B Certificates, in that order, and then to Classes A-1
and A-2 pro rata, in each case reducing amounts payable
thereto.
Appraisal
Reductions: Any appraisal reduction generally will be created in the
amount, if any, by which the Principal Balance of a
Specially Serviced Mortgage Loan (plus other amounts overdue
in connection with such loan) exceeds 90% of the appraised
value of the related Mortgaged Property. The Appraisal
Reduction Amount will reduce proportionately the amount of
P&I Advanced for such loan, which reduction will be borne,
in general, by a reduction of interest distributable to the
most subordinate Class of Principal Balance Certificate
outstanding.
Directing
Class: The Directing Class will generally be the most subordinate
Class of Certificates outstanding at any time. The Pooling
Agreement provides that holders of Certificates evidencing
greater than 50% of the Percentage Interests of the
Directing Class may replace the Special Servicer provided
that each Rating Agency confirms that such replacement will
not cause a qualification, withdrawal or downgrading of the
then-current ratings assigned to any Class of Certificates.
Special
Servicer: In general, the Special Servicer has the right to modify the
terms of a Specially Serviced Mortgage Loan if it determines
that such modification would be in the best interests of the
Certificateholders, provided that the Special Servicer
generally may not extend the maturity date of a Mortgage
Loan beyond two years prior to the Final Rated Distribution
Date.
Optional
Termination: The Depositor, then the Master Servicer, then the holder of
a majority of the LR Certificates will have the option to
purchase, in whole but not in part, the remaining assets of
the Trust on or after the Distribution Date on which the
aggregate Certificate Principal Amount of all Classes of
Certificates then outstanding is less than or equal to 1% of
the initial Pool Balance. Such purchase price will generally
be at a price equal to the unpaid aggregate Scheduled
Principal Balances of the Mortgage Loans, plus accrued and
unpaid interest and unreimbursed Servicing Advances.
Reports to
Certificate-
holders: The Trustee will prepare and deliver monthly
Certificateholder Reports. The Special Servicer will prepare
and deliver to the Trustee monthly reports summarizing the
status of each Specially Serviced Mortgage Loan. The Master
Servicer and Special Servicer will prepare and deliver to
the Trustee an annual report setting forth certain
information with respect to each Mortgage Loan, as
available. Each of the reports will be available to the
Certificateholders upon request. A Report containing
information regarding the Mortgage Loans will be available
electronically.
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
[GRAPHIC OMITTED]
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
The Class A-1, A-2 B, C, D, E and F Certificates are monthly pay, multi-class,
sequential pay REMIC commercial mortgage pass-through certificates. All Classes
of Certificates derive their cash flows from the entire pool of Mortgage Loans.
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
Remaining Term to Effective Maturity Date
Grapevine Mills 120
Edens & Avant Pool I 120
Mall of New Hampshire 120
Westside Pavillion 117
North Town Mall 119
Edens & Avant Pool II 120
Crystal Park IV 119
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Collateral Characteristics
--------------------------
Cut-Off Date Principal Balance: (as of October 1, 1998) $706,465,702
Number of Mortgage Loans: 7
Number of Mortgaged Properties: 41
Weighted Average Coupon: 6.49%
Weighted Average Cut-Off Date LTV: 58.2%
Weighted Average LTV at Effective Maturity Date: 53.2%
Weighted Average DSCR: 2.16x
Weighted Average Original Amortization Term (Months): 360
Weighted Average Original Term to Effective Maturity Date
(Months): 121
Weighted Average Remaining Term to Effective Maturity Date
(Months): 119
Weighted Average Seasoning (Months): 2
<TABLE>
<CAPTION>
- ------------------- ----------- ---------- -------- ------------ ------- --------- ---------- ------------ --------- ----------
Percentage Principal Original Remaining
Cut-Off of Balance at Cut-Off Effective Term to Term to
Date Cut-Off Effective Date Maturity Original Effective Effective
Principal Date Maturity LTV(2) Date Amortization Maturity Maturity
Loan Name Balance Principal Coupon Date LTV(2) DSCR(2) Term(4) Date Date
Balance (3)
- ------------------- ----------- ---------- -------- ------------ ------- --------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Grapevine Mills $155,000,000 21.9% 6.470% $143,481,582 61.7% 56.8% 2.17x 360 121 120
Edens & Avant
Pool I 125,000,000 17.7 6.200 125,000,000 47.1 47.1 2.72 IO 120 120
Mall of New
Hampshire 105,000,000 14.9 6.955 93,305,773 65.2 57.2 1.67 360 126 120
Westside Pavilion 100,000,000 14.2 6.440 91,132,625 62.5 57.0 1.93 360 120 117
NorthTown Mall 84,426,244 12.0 6.680 73,062,731 58.5 49.7 1.73 360 120 119
Edens & Avant
Pool II 70,000,000 9.9 6.200 70,000,000 48.8 48.8 2.90 1O 120 120
Crystal Park IV 67,039,458 9.5 6.510 57,745,712 62.7 54.0 1.93 360 120 119
------------ ----- ----- ------------ ---- ---- ---- --- --- ---
$706,465,702 100.0% 6.492% $653,728,424 58.2% 53.2% 2.16x 360 121 119
============ ===== ===== ============ ==== ==== ==== === === ===
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Numbers may not total 100% due to rounding.
(2) Grapevine Mills, Mall of New Hampshire and NorthTown Mall Loan
Balances have been reduced by credit enhancements of $10,000,000
(Guarantee), $10,000,000 (Letter of Credit) and $9,500,000
(Letter of Credit) respectively for credit statistic
calculations. Values for Edens & Avant Pools I and II and
NorthTown Mall are based on recent acquisitions prices.
(3) Based on Underwritable Net Cash Flow and actual debt service
adjusted for credit enhancements.
(4) Weighted Average Original Amortization Term excludes Edens &
Avant Pools I and II. Edens and Avant Pools I and II begin a 240
month amortization term at their Effective Maturity Dates.
Grapevine Mills, Mall of New Hampshire and Westside Pavilion have
initial interest only periods of 48, 18 and 36 months
respectively.
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Loan Features
<TABLE>
<CAPTION>
- ---------------------- ----------------------- --------------- ---------- ----------- ---------- ------------ ----------- ----------
Removal Cross Bankruptcy- Funded
of Capital Lock Box Collaterali- Remote Tax and
Principal Property Reserve Sweep zation Borrowing Insurance
Loan Name Call Protection(1) Repayment Manager Accounts Account (Pools Only) Entity Escrow
- ---------------------- ----------------------- --------------- ---------- ----------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Edens & Avant Pool I Defeasance(2) Effective Yes Yes Yes(5) Yes Yes Yes
Maturity
Edens & Avant Pool II Defeasance(2) Effective Yes Yes Yes(5) Yes Yes Yes
Maturity
Grapevine Mills Defeasance(3) Effective Yes Yes Yes N/A Yes(8) Yes(9)
Maturity
Mall of New Hampshire Defeasance Effective Yes Yes Yes(7) N/A Yes Yes(10)
Maturity
Westside Pavilion Defeasance Effective Yes Yes Yes(6) N/A Yes Yes(10)
Maturity
NorthTown Mall Defeasance Effective Yes Yes Yes(5) N/A Yes Yes(10)
Maturity
Crystal Park IV Defeasance(4) Effective Yes Yes Yes N/A Yes Yes
Maturity
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Locked out for 24 months after securitization with defeasance
until the Effective Maturity Date except as noted below.
(2) Prepayable 60 days prior to the Effective Maturity Date.
(3) Prepayable 90 days prior to the Effective Maturity Date. Locked
out for 36 months after securitization with defeasance until the
Effective Maturity Date.
(4) Prepayable one month prior to the Effective Maturity Date.
(5) Soft Lock-Box, Borrower to deposit all amounts received in
connection with the properties within 1 business day of its
receipt thereof.
(6) Springing Lock-Box, based upon a DSCR test, an Event of Default,
or on the Effective Maturity Date.
(7) Hard Lock-Box, but Borrower has access to the account unless
certain trigger events occur.
(8) Borrowing entity does not have an independent director.
(9) Tax escrow only.
(10) Springing funding of taxes and/or insurance based upon a DSCR
test, an Event of Default, or on the Effective Maturity Date.
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Property Overview
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Borrowing Entity/ Property Year Built/
Loan Name Location Sponsor Type Renovated
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Edens & Avant Pool I Eastern U.S. State of Michigan Retirement System/Edens & Anchored Retail Various
Avant
Edens & Avant Pool II Southeastern U.S. State of Michigan Retirement System/Edens & Anchored Retail Various
Avant
Grapevine Mills Grapevine, TX Simon DeBartolo Group/Mills Corporation Regional "Mills" Mall 1997
(Dallas/Ft. Worth)
Mall of New Hampshire Manchester, NH New England Development Regional Mall 1977/1996-1998
Westside Pavilion Los Angeles, CA The Macerich Company Regional Mall 1985
NorthTown Mall Spokane, WA JP Realty, Inc. Regional Mall 1955/1985/1992-1993
Crystal Park IV Arlington, VA Charles E. Smith Office 1988
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Cut-Off Date
Loan Loan PSF/ Appraised
Loan Name Amount Square Feet Per Unit(2) Value
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Grapevine Mills $155,000,000 1,241,769 $ 117 $235,000,000
Edens & Avant Pool I 125,000,000 2,100,452 60 265,582,293(3)
Mall of New Hampshire 105,000,000 329,913 288 145,600,000
Westside Pavilion 100,000,000 443,723 225 160,000,000
NorthTown Mall 84,426,244 709,870 105 128,000,000(3)
Edens & Avant Pool II 70,000,000 2,175,884 32 143,567,822(3)
Crystal Park IV 67,039,458 466,369 144 107,000,000
------------ --------- ------ --------------
Total/Weighted Average $706,465,702 7,467,980 $ 95 $1,184,750,115
============ ========= ====== ==============
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Square feet represents collateral square feet only.
(2) Grapevine Mills, Mall of New Hampshire and NorthTown Mall Loan
Balances have been reduced by credit enhancements of $10,000,000
(Guarantee), $10,000,000 (Letter of Credit) and $9,500,000
(Letter of Credit) respectively.
(3) Based on recent acquisition prices.
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Geographic Diversification
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage of Percentage of Percentage of Weighted
Cut-Off Date Total Cut-Off Total Weighted Total Average
Number of Allocated Loan Date Allocated Underwritable Underwritable Average Appraised Appraised Cut-Off
State Properties Amount Loan Amount Cash Flow Cash Flow(1) DSCR(2) Value(3) Value(3) Date LTV
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TX 1 $ 155,000,000 21.9% $20,619,033 20.9% 2.17x $235,000,000 19.8% 61.7%
NH 1 105,000,000 14.9 11,199,597 11.4 1.67 145,600,000 12.3 65.2
CA 1 100,000,000 14.2 12,632,326 12.8 1.93 160,000,000 13.5 62.5
VA 3 83,077,358 11.8 12,924,404 13.1 2.12 143,150,000 12.1 60.0
WA 1 84,426,244 12.0 10,028,711 10.2 1.73 128,000,000 10.8 58.5
MA 5 46,644,000 6.6 7,787,518 7.9 2.72 99,565,306 8.4 47.1
OH 4 35,887,000 5.1 5,991,384 6.1 2.72 78,448,496 6.6 47.1
CT 2 28,761,000 4.1 4,801,924 4.9 2.72 60,048,312 5.1 47.1
MS 8 15,440,700 2.2 2,750,702 2.8 2.90 29,572,853 2.5 48.8
GA 2 14,112,000 2.0 2,452,254 2.5 2.90 27,579,806 2.3 48.8
TN 1 8,651,000 1.2 1,912,644 1.9 2.72 18,100,000 1.5 47.1
SC 4 8,279,150 1.2 1,466,262 1.5 2.90 16,744,909 1.4 48.8
AL 2 6,432,150 0.9 1,235,530 1.3 2.90 12,673,000 1.1 48.8
NC 2 6,176,100 0.9 1,073,229 1.1 2.90 12,032,254 1.0 48.8
FL 1 3,521,700 0.5 714,054 0.7 2.90 8,815,000 0.7 48.8
NY 2 3,233,000 0.5 539,766 0.5 2.72 6,532,097 0.6 47.1
IN 1 1,824,000 0.3 304,605 0.3 2.72 2,888,082 0.2 47.1
-- ------------ ----- ----------- ----- ---- -------------- ----- ----
Total 41 $706,465,702 100.0% $98,433,943 100.0% 2.16x $1,184,750,115 100.0% 58.2%
== ============ ===== =========== ===== ==== ============== ===== ====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Numbers may not total 100% due to rounding.
(2) Based on Underwritable Net Cash Flow and actual debt service
adjusted for credit enhancements.
(3) Grapevine Mills, Mall of New Hampshire and NorthTown Mall Loan
Balances have been reduced by credit enhancements of $10,000,000
(Guarantee), $10,000,000 (Letter of Credit) and $9,500,000
(Letter of Credit) respectively for credit statistic
calculations. Values for Edens & Avant Pools I and 11 and
NorthTown Mall are based recent acquisitions prices.
<PAGE>
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Properity Type Diversification
------------------------------
[GRAPHIC OMITTED]
Achored Retail 27.6%
Office 9.5%
Regional Mall 41.0%
Regional "Mills" Mall 21.9%
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage of
Total Cut-Off Percentage of Percentage Weighted
Cut-Off Date Date Total Weighted of Total Average
Number of Allocated Allocated Underwritten Underwritten Average Appraised Appraised Cut-Off
Property Type Properties Loan Amount Loan Amount Cash Flow Cash Flow(l) DSCR(2) Value(3) Value(3) Date LTV
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Regional Mall 3 $289,426,244 41.0% $33,860,634 34.4% 1.78x $433,600,000 36.6% 62.3%
Anchored Retail 36 195,000,000 27.6 34,110,063 34.7 2.78 409,150,115 34.5 47.7
Regional
"Mills" Mall 1 155,000,000 21.9 20,619,033 20.9 2.17 235,000,000 19.8 61.7
Office 1 67,039,458 9.5 9,844,213 10.0 1.93 107,000,000 9.0 62.7
-- -- --------- - -- ----------- ----- ---- -------------- ----- ----
Tatal 41 $706,465,702 l0O.0 $98,433,943 100.0% 2.16x $1,184,750,115 100.0% 58.2%
== ============ ===== =========== ===== ==== ============== ===== ====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Numbers may not total 100% due to rounding.
(2) Based on Underwritable Net Cash Flow and actual debt service
adjusted for credit enhancements.
(3) Grapevine Mills, Mall of New Hampshire and NorthTown Mall Loan
Balances have been reduced by credit enhancements of $10,000,000
(Guarantee), $10,000,000 (Letter of Credit) and S9,500,000
(Letter of Credit) respectively for credit statistic
calculations. Values for Edens & Avant Pools I and II and
NorthTown Mall are based on recent acquisitions prices.
<PAGE>
- --------------------------------------------------------------------------------
[LOGO OMITTED] Preliminary Collateral Term Sheet:
Grapevine Mills
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $155,000,000 $155,000,000
Origination Date: August 12, 1998
Interest Rate: 6.47%
Amortization: Interest only until September 1, 2002; 360 months thereafter
(beginning October 1, 2002).
Hyperamortization: Alter the Effective Maturity Date, the interest rate
increases to the greater of 8.47% or the then current U.S.
Treasury rate plus 2.0%. All excess cash flow is used to
reduce the outstanding principal balance; the additional 2%
interest accrues interest at the increased rate and is
deferred until the principal balance is zero.
Effective Maturity
Date: October 1, 2008
Maturity Date: September 1, 2032
Borrower/Sponsor: A single-purpose entity controlled by the Mills Corporation
(37.5%) and the Simon DeBartolo Group (37.5%). Borrowing
entity does not have an independent director on its board.
Call Protection: 3-year lockout from the closing date with U.S. Treasury
defeasance thereafter. Loan prepayable at par beginning 90
days prior to the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) if the DSCR for the loan
falls below 1.15x, (ii) for cause, (iii) upon an Event of
Default, or (iv) after the Effective Maturity Date.
Up Front Reserves: Simon DeBartolo Group L.P. and The Mills Limited Partnership
have guaranteed $10,000,000 of the loan amount ($5 MM each)
until the time the property NOI provides a 1.50x DSCR using
a 9.0% constant on a trailing 12 month basis.
General Monthly
Reserves: 1/12 of annual Property Taxes, Tenant Rollover Reserve of
$16,667 ($200,000 annually), Capital Reserves of $0.l5 psf
per annum beginning, in year 6.
Collection Account: Hard Lock-Box
Cross-
Collateralization/
Default: N/A
Mezzanine Loans: N/A
<PAGE>
- --------------------------------------------------------------------------------
[LOGO OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Property Information
Single
Asset/Portfolio: Single Asset
Property Type: Regional "Mills" Mall
Location: Grapevine, Texas (Dallas/Ft. Worth)
Year
Built/Renovated: 1997
The Collateral: Single-level, four-anchor regional "Mills" mall with a total
GLA of 1,241,769 s.f., anchor space of 315,702 s.f., major
space (mini-anchor) of 382,968 s.f., and mall store space of
543,099 s.f. Collateral consists of anchor, major and mall
store space for a total of 1,241,769 s.f.
Anchors include JC Penney (106,207 s.f.), Burlington Coat
Factory (100,102 s.f.), and AMC Theatres (109,393 s.f.).
Property
Management: The Mills Corporation
Percent of Mall
Store Space Leased
as of June 1, 1998: 91%
Comparable Store
Average Occupancy
Cost as of June 1,
1998: 11.7%
1998 Budgeted Net
Operating
Income(1): $21,426,109
Underwritable Net
Cash Flow: $20,619,033
Appraised Value: $235,000,000
Appraised By: Cushman & Wakefield, Inc.
Appraisal Date: July 17, 1998
Cut-Off Date EMD(2)
Loan/SF(3): $117 $107
LTV(3): 61.7% 56.8%
DSCR(3) (4): 2.17x 2.35x
Notes: (1) Grapevine Mills opened in October, 1997.
(2) Effective Maturity Date
(3) Loan Amount used for calculations is net of the
$10,000,000 guarantee
(4) Based on Underwritable Net Cash Flow and Actual
Debt Service
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Grapevine Mills
- --------------------------------------------------------------------------------
Ten Largest Mall Store Tenants and Anchor Leases Based on
Annualized Base Rent By Parent Company(1)
<TABLE>
<CAPTION>
- --------------------------- ---------------------------- ---------- --------- ------------- ------------ -----------
% of % of Total Annualized
Tenant or Tenant Tenant Total Annualized Annualized Base Rent
Parent Company Store Name GLA GLA Base Rent Base Rent per SF
- --------------------------- ---------------------------- ---------- --------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
Host Marriott Services Host Marriott-Food Court 33,903 2.7% $1,158,890 5.8% $34.18
Master Lease
Subleased to:
-------------
Chili's Too
Dick Clark's American
Bandstand Grill
Cold Stone Creamery
Starbucks Coffee
Corner Bakery
Juice Works
Sega Inc. Sega Gameworks 32,223 2.6 594,244 3.0 18.44
Sports Authority, Inc. Sports Authority 48,763 3.9 582,000 2.9 11.94
Rainforest Cafe Rainforest Cafe 22,602 1.8 565,050 2.8 25.00
Just For Feet Just For Feet 19,920 1.6 517,290 2.6 25.97
Off Rodeo Drive, Beverly Off Rodeo Drive, Beverly 24,203 1.9 508,473 2.5 21.01
Hills Hills
Virgin, Inc. Virgin Megastores 27,490 2.2 453,585 2.3 16.50
The Gap, Inc. Gap Outlet 33,098 2.7 397,176 2.0 12.00
Old Navy
Bed Bath & Beyond, Inc. Bed Bath & Beyond 40,340 3.2 373,145 1.9 9.25
Group USA Group USA 23,257 1.9 325,598 1.6 14.00
--------- ----- ----------- ----- --------
Total/Weighted Average (10 Largest) 305,799 24.6% $5,475,451 27.2% $17.91
Remaining Mall Stores 570,458 45.9 10,984,740 54.6 19.26
Vacant Space 48,910 3.9 -- 0.0 0.0
--------- ----- ----------- ----- --------
Total (excluding anchors) 926,067 74.6% $16,460,191 81.8% $18.78(2)
========= ===== =========== ===== ========
Burlington Coat Factory, Burlington Coat Factory 100,102 8.1 500,510 2.5 5.00
Inc.
AMC Inc. American Multi-Cinema 109,393 8.8 2,625,432 13.1 24.00
J.C. Penney, Co., Inc. JCPenney 106,207 8.6 528,410 2.6 4.98
--------- ----- ----------- ----- --------
Total (including anchors) 1,241,769 100.0% $20,114,543 100.0% $16.88(2)
========= ===== =========== ===== ========
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Based on the June 1, 1998 rent roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Grapevine Mills
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating
of Parent Operating
Company(1) Anchor-Owned/ Lease Covenant REA
Anchors Parent Company (S&P/Moody's) GLA Collateral Expiration Expiration Termination
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Burlington Coat Burlington Coat - / - 100,102 Anchor-owned 1/31/13 10/29/00 N/A
Factory Factory, Inc.
JCPenney J.C. Penney Co., A/A2 106,207 Anchor-owned 10/31/12 N/A N/A
Inc.
American Multi-Cinema AMC Inc. BB-/ - 109,393 Anchor-owned 12/31/17 12/18/07 N/A
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: (1) Ratings as of August 1, 1998
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Cumulative
Percent of Percent of
Number of Annualized Total Total
Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Year Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 27 49,810 4.0% 4.0% $ - $ - 0.0% 0.0%
1998 2 2,836 0.2 4.2% 82,426 29.06 0.4 0.4%
1999 2 7,979 0.6 4.9% 135,901 17.03 0.7 1.1%
2000 9 17,277 1.4 6.3% 473,076 27.38 2.4 3.4%
2001 9 23,213 1.9 8.1% 526,817 22.69 2.6 6.1%
2002 59 213,097 17.2 25.3% 4,504,632 21.14 22.4 28.5%
2003 14 40,189 3.2 28.5% 932,736 23.21 4.6 33.1%
2004 4 10,802 0.9 29.4% 288,178 26.68 1.4 34.5%
2005 4 25,336 2.0 31.5% 498,203 19.66 2.5 37.0%
2006 1 7,514 0.6 32.1% 127,738 17.00 0.6 37.6%
2007 32 238,482 19.2 51.3% 4,637,730 19.45 23.1 60.7%
2008 16 155,213 12.5 63.8% 2,439,501 15.72 12.1 72.8%
Thereafter 12 450,021 36.2 100.0% 5,467,605 12.15 27.2 100.0%
--- --------- ----- ----------- -------- -----
Total 191 1,241,769 100.0% $20,114,543 $16.88(2) 100.0%
=== ========= ===== =========== ======== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the June 1, 1998 Rent Roll.
(2) Total annual rent per square foot excludes vacant square feet.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Grapevine Mills
- --------------------------------------------------------------------------------
Sales Analysis(1)
- --------------------------------------------------------------------------------
Projected 1998 Sales
--------------------
Square Total
Footage (000s) Per SF
------- ------ ------
Anchor Stores
- -------------
American Multi-Cinema 109,393 $13,750 $125.69
Burlington Coat Factory 100,102 12,658 126.45
JCPenney 106,207 25,638 241.40
------- ------- -------
Total Anchor Stores 315,702 $52,046 $164.86
Major Store
- -----------
American Wilderness 32,285 $399 $70.95(2)
Bed Bath & Beyond 40,340 7,060 175.00
Books-A-Million 23,967 3,448 143.85
Group USA 23,257 2,517 108.23
Marshalls 29,397 4,410 150.02
Off Rodeo Drive, Beverly
Hills 24,203 3,002 124.03
Old Navy 23,329 8,541 366.11
Rainforest Cafe 22,602 14,919 660.07
Saks Fifth Avenue 34,982 7,784 222.51
Sega Gameworks 32,223 5,122 158.95
Sports Authority 48,763 6,062 124.32
Virgin Megastores 27,490 6,957 253.07
Western Warehouse 20,130 3,083 153.15
------- ------- -------
Total Major Store Sales 382,968 $73,304 $205.73(2)
Mall Stores
- -----------
Mall Stores 493,289 $158,654 $321.64
Vacant 49,810 N/A N/A
------- ------- -------
Total Mall Store 543,099 $158,654 $321.64(3)
Total Sales - Anchors, Majors
and Mall Stores 1,241,769 $284,004 $243.72(2)(3)
========= ======== =======
- --------------------------------------------------------------------------------
Notes: (1) Projected sales provided by the Mills Corporation. Square footage
is based on the June 1, 1998 rent roll.
(2) Sales per square foot for American Wilderness, Total Majors and
Total Mall & Anchors reflect that American Wilderness has only
been operating on 5,624 of square feet.
(3) Sales per square foot exclude vacant space.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Edens & Avant Pool I
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $125,000,000 $125,000,000
Origination Date: September 18, 1998
Interest Rate: 6.20%
Amortization: Interest only until Effective Maturity Date
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 8.20% or the then current U.S.
Treasury rate plus 2.0%. All excess cash flow is used to
reduce the outstanding principal balance; the additional
2% interest accrues interest at the increased rate and is
deferred until the principal balance is zero.
Effective Maturity
Date: October 1, 2008
Maturity Date: October 1, 2028
Borrower/Sponsor: A single purpose, bankruptcy-remote entity wholly owned by
the State of Michigan Retirement System and Edens & Avant,
Inc. principals and family members.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning 60 days prior to the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) if the DSCR for the loan
falls below 1.25x, (ii) for cause, (iii) upon an event of
default or (iv) six months after the Effective Maturity
Date.
Up Front Reserves: 2 months of all required escrows to be funded at closing
for the term of the loan. Immediate deferred maintenance
escrow TBD.
General Monthly
Reserves: 1/12 of annual Property Taxes and Insurance, Capital
Reserves of $.20 psf per annum.
Collection Account: Soft Lock-Box- Borrower to deposit all amounts received in
connection with the properties within 1 business day of
its receipt thereof. Springs to Hard Lock-Box if DSCR
drops to 1.25x.
Cross-
Collateralization/
Default: Cross-collateralized and cross-defaulted.
Mezzanine Loans: N/A
Property Information
Single
Asset/Portfolio: Portfolio
Property Type: Anchored Retail
Location: State Percent
----- -------
Massachusetts 37.3%
Ohio 28.7
Connecticut 23.0
Other States 11.0
Year
Built/Renovated: Between 1956 and 1997
The Collateral: 15 anchored-retail shopping centers with a total GLA of
2,100,452 s.f.
Property
Management: Edens & Avant, Inc./Samuels
Percent of Pool
Leased as of
April-June 1998: 97%
1997 Net Operating
Income: $21,358,498
Underwritable Net
Cash Flow: $21,337,841
Recent Purchase
Price: $265,582,293
Market Study
Performed By(1): Cushman & Wakefield
Market Study Date: August, 1998
Cut-Off Date EMD(2)
Loan/SF: $60 $60
LTV(3): 47.1% 47.1%
DSCR(4): 2.72x 2.72x
1996 1997
Sales PSF(5): $357 $363
Notes: (1) One property had an appraisal performed by O. Marshall Dodds in
June, 1998.
(2) Effective Maturity Date
(3) Value based on recent purchase price
(4) Based on Underwritable Net Cash Flow and Actual Debt Service
(5) Available Comparable Store Sales
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Edens & Avant Pool I
- --------------------------------------------------------------------------------
Property Summary Table
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Annualized
Occupancy Annualized Base Rent
Allocated Year as of Base Rent PSF as of
Loan Built/ April- as of April- April-June,
Property Name Location Amount SF Renovated June, 1998 UCF June, 1998 1998(6)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fairlawn Town Fairlawn, OH $18,512,000 353,191 1958/70/96 91.3% $3,090,396 $3,481,781 $10.79
Centre
Shopping
Center
Bishops Corner West 16,570,000 123,796 1970 100.0 2,766,516 2,817,788 22.76
Hartford, CT
South Bay Boston, MA 14,180,000 121,540 1994 100.0 2,367,435 2,376,885 19.56
Center
Brookside/
Brookway Bridgeport, CT 12,191,000 158,990 1957 94.8 2,035,408 2,235,660 14.83
Shopping
Center
Winchester Memphis, TN 8,651,000 244,992 1987 97.4 1,912,644 2,029,331 8.50
Court
Shopping
Center
Middlesex Mall Burlington, MA 9,808,000 222,218 1974/1991 97.7 1,637,585 1,826,937 8.41
Westown Cleveland, OH 9,806,000 169,059 1987 99.4 1,637,208 1,813,573 10.79
Square
Shopping
Center
Burlington Burlington, MA 9,043,000 190,300 1974/1997 100.0 1,509,724 1,758,979 9.24
Crossroads
Shrewsbury Shrewsbury, MA 7,828,000 74,215 1993 100.0 1,306,974 1,304,816 17.58
Crossing
Shopping
Center
Buckeye Plaza Cleveland, OH 6,247,000 117,281 1989 96.7 1,043,009 1,083,657 9.56
Acton Plaza Acton, MA 5,785,000 136,233 1972/1994 99.2 965,800 1,118,700 8.28
Eastchester Eastchester, 2,281,000 23,375 1956/1988 92.3 380,790 382,579 17.73
Plaza NY
Elkhart Plaza Elkhart, IN 1,824,000 97,560 1972/1992 100.0 304,605 279,513 2.87
Columbia-
Detroit Westlake, OH 1,322,000 49,602 1979/1995 100.0 220,771 240,916 4.86
Center at Patchogue, NY 952,000 18,100 1991 100.0 158,976 205,000 11.33
------------ --------- ---- ----------- ----------- ------
Patchogue
Totals $125,000,000 2,100,452 97.2% $21,337,841 $22,956,115 $11.24(6)
============ ========= ==== =========== =========== ======
</TABLE>
- ----------------------------------------
Primary Tenants with
15,000 SF or greater
Property Name as of April-June 1998
- ---------------------------------------
Fairlawn Town (1)
Centre
Shopping
Center
Bishops Corner Adams/Bozzuto's (2011) and
Marshalls (2006)
South Bay (2)
Center
Brookside/
Brookway Stop & Shop (2013), Staples
Shopping (2003) and Marshalls (2008)
Center
Winchester (3)
Court
Shopping
Center
Middlesex Mall (4)
Westown Finast (2012)
Square
Shopping
Center
Burlington Marshalls (2008), Michael's
Crossroads (2008) and Service
Merchandise (2004)
Shrewsbury Stop & Shop (2012)
Crossing
Shopping
Center
Buckeye Plaza Finast (2010)
Acton Plaza Ames (2003) and Roche Bros.
(2015)
Eastchester Thriftway (2001)
Plaza
Elkhart Plaza Fleet Supply of Elkhart
(2000) and Martin's
Supermarkets (2000)
Columbia-
Detroit Finast (2003)
Center at (5)
Patchogue
Totals
- --------------------------------------------------------------------------------
Notes: Major tenants and lease expirations:
(1) US Post Office (1999), Courtyard (2003), Marc's (2006), Giant
Eagle (2022) and Circuit City (2017)
(2) Marshalls (2014), Office Max (2010), Stop & Shop (2018), Toys R
Us, K-Mart and Home Depot are shadow anchors.
(3) Seessel's, Inc. (2002), K & B Store (2007), Samuel's Furniture
(2002), Decor 8 (2002) Stein Mart (2002) and Malco 8 Theatres
(2009)
(4) Demoulas Market Basket (2000), Caldor (2000), Linens n' Things
(2017), Loehmann's (2001) and Joann Fabric Shop (2003)
(5) Blockbuster (6,000 s.f. expires 2001)
(6) Annualized base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet
[GRAPHIC OMITTED] Edens & Avant Pool I
- --------------------------------------------------------------------------------
Ten Largest Tenants Based on Annualized Base Rent(1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
% of % of Total Annualized
Tenant or Tenant No. of Tenant Total Annualized Annualized Base Rent
Parent Company Store Name Stores GLA GLA(1) Base Rent Base Rent per SF
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Royal Ahold NV Stop & Shop 6 349,144 16.6% $4,446,285 19.4% $12.73
Bi-Lo
Finast
The TJX Companies Marshalls 4 128,224 6.1 2,162,468 9.4 16.86
Intercontinental Holding Adams/Bozzuto's 1 59,016 2.8 1,386,876 6.0 23.50
Company
Giant Eagle Inc. Giant Eagle 1 78,181 3.7 840,446 3.7 10.75
Linens n' Things Inc. Linens n' Things 1 38,100 1.8 762,000 3.3 20.00
Circuit City Stores, Inc. Circuit City 1 39,840 1.9 496,431 2.2 12.46
Blockbuster Entertainment Blockbuster Video 4 24,614 1.2 456,391 2.0 18.54
Group
Office Max Inc. Office Max 1 23,400 1.1 427,050 1.9 18.25
Staples, Inc. Staples 1 25,200 1.2 403,200 1.8 16.00
CVS Corporation CVS/Revco 5 43,408 2.1 395,591 1.7 9.11
--- --------- ----- ----------- ----- ------
Total/Weighted Average (10 Largest) 25 809,127 38.5% $11,776,738 51.3% $14.55
Other Major Tenants 57 976,107 46.5 7,305,796 31.3 7.48
(greater than 5,000 square
feet)
Remaining Tenants 126 257,161 12.2 3,873,581 16.9 15.06
Vacant Space 47 58,057 2.8 0 0.0 0.00
--- --------- ----- ----------- ----- ------
Total/Weighted Average 255 2,100,452 100.0% $22,956,115 100.0% $11.24(2)
=== ========= ===== =========== ===== ======
</TABLE>
- --------------------------------------------------------------------------------
Note: (1) Data based on the most recent available Rent Roll (April-June, 1998).
(2) Total annual base rent per square foot excludes vacant square footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet
[GRAPHIC OMITTED] Edens & Avant Pool I
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Cumulative
Percent of Percent of
Number of Annual Total Total
Year Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 47 58,057 2.8% 2.8% $ - - 0.0% 0.0%
M-T-M 10 18,485 0.9 3.6% 319,610 $ 17.29 1.4 1.4%
1998 10 19,471 0.9 4.6% 264,127 13.57 1.2 2.5%
1999 23 86,565 4.1 8.7% 675,409 7.80 2.9 5.5%
2000 30 260,324 12.4 21.1% 1,541,404 5.92 6.7 12.2%
2001 24 91,993 4.4 25.5% 1,250,259 13.59 5.4 17.6%
2002 27 220,737 10.5 36.0% 1,867,044 8.46 8.1 25.8%
2003 30 281,915 13.4 49.4% 2,514,765 8.92 11.0 36.7%
2004 8 112,192 5.3 54.7% 697,104 6.21 3.0 39.8%
2005 6 32,420 1.5 56.3% 465,480 14.36 2.0 41.8%
2006 10 124,952 5.9 62.2% 1,926,121 15.41 8.4 50.2%
2007 8 65,906 3.1 65.4% 721,176 10.94 3.1 53.2%
2008 6 90,247 4.3 69.7% 1,187,361 13.16 5.2 58.5%
Thereafter 16 637,188 30.3 100.0% 9,526,255 14.95 41.5 100.0%
--- --------- ----- ----------- -------- -----
Total 255 2,100,452 100.0% $22,956,115 $ 11.24(2) 100.0%
=== ========= ===== =========== ======== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the most recent available Rent Roll (April-June,
1998).
(2) Total annual base rent per square foot excludes vacant square
footage.
Largest Tenants (Over $12MM in 1997 Sales) Based on
Available Comparable Store 1996 and 1997 Sales History
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Annual 1996 Sales Annual 1997 Sales
No. of Square
Store Name Stores Feet Total (000s) Per SF Total (000s) Per SF
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Stop and Shop 3 183,444 $111,198 $606 $106,217 $579
Finast 2 95,500 38,725 405 35,282 369
Marshalls 4 128,224 29,385 229 34,891 272
Roche Bros. 1 26,943 28,709 1,066 33,315 1,236
Marc's 1 36,396 14,243 391 16,865 463
CVS/Revco 4 36,820 16,858 458 16,181 439
-- ------- -------- ---- -------- ----
Total Largest Tenants 15 507,327 239,118 $471 $242,751 $478
Other Comparable Stores 50 313,662 53,580 171 55,654 177
-- ------- -------- ---- -------- ----
Grand Total 65 820,989 $292,698 $357 $298,405 $363
== ======= ======== ==== ======== ====
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Mall of New Hampshire
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $105,000,000 $105,000,000
Origination Date: March 24, 1998
Interest Rate: 6.955%
Amortization: Interest only until October 1, 1999; 360 months thereafter
(beginning November 1, 1999).
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 11.955% or the then current
U.S. Treasury rate plus 5.0%. All excess cash flow is used
to reduce the outstanding principal balance; the
additional 5% interest accrues interest at the increased
rate and is deferred until the principal balance is zero.
Effective Maturity
Date: October 1, 2008
Maturity Date: April 1, 2028
Borrower/Sponsor: A special purpose bankruptcy-remote entity wholly owned by
the principals of New England Development, Inc.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning on the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated upon (i) an Event of Default
or (ii) bankruptcy or insolvency of the property manager.
Up Front Reserves: $10,000,000 Letter of Credit, reduced upon achieving a
1.25x DSCR at a 9% loan constant based on annualized
trailing six month operating history (adjusted for
seasonal items).
General Monthly
Reserves: Capital Expenditures and Tenant Rollover Reserve of $1.20
psf per annum or to a maximum of $1,000,000 at any one
time. Springing reserves for Ground Rent, Property Taxes,
and Insurance, if DSCR falls below 1.25x, or upon an Event
of Default.
Collection Account: Hard Lock-Box
Cross-
Collateralization/
Default: N/A
Mezzanine Loans: N/A
Property Information
Single
Asset/Portfolio: Single Asset
Property Type: Regional Mall
Location: Manchester, New Hampshire
Year Built/Expanded: 1977/1996-1998
The Collateral: Single-level, four-anchor regional mall with a total GLA
of 793,533 s.f., anchor space of 463,620 s.f., and mall
store space of 329,913 s.f. Collateral consists of mall
store space for a total of 329,913 s.f.
Anchors include: JC Penney (101,388 s.f.), Filene's
(165,000 s.f.), Sears (136,464 s.f.) and a space to be
occupied by Best Buy (41,243 s.f.) and Kitchens, Etc
(19,525 s.f.).
Property
Management: WellsPark Group
Percent of Mall
Store Space Leased
as of July 15, 1998: 91%
Comparable Store
Average Occupancy
Cost as of July 15,
1998: 14.9%
LTM June, 1998 Net
Operating Income: $9,950,487
Underwritable Net
Cash Flow: $11,199,597
Appraised Value: $145,600,000
Appraised By: Cushman & Wakefield, Inc.
Appraisal Date: September 24, 1998
Cut-Off Date EMD(1)
Loan/SF(2): $288 $253
LTV(2): 65.2% 57.2%
DSCR(2) (3): 1.67x 1.91x
1996 1997
Mall Store Sales
PSF(4): $349 $371
Notes: (1) Effective Maturity Date
(2) Loan Amount used for calculations net of the $10,000,0000 Letter
of Credit
(3) Based on Underwritable Net Cash Flow and Actual Debt Service
(4) Comparable Mall Store Sales
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Mall of New Hampshire
- --------------------------------------------------------------------------------
Ten Largest Mall Store Tenants and Anchor Leases Based on
Annualized Base Rent By Parent Company(1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
% % of Total Annualized
Tenant or Tenant Tenant of Total Annualized Annualized Base Rent
Parent Company Store Name GLA GLA Base Rent Base Rent per SF
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
B. Dalton BookSellers B. Dalton 10,038 3.0% $443,482 4.1% $44.18
B. Dalton Software
The Limited Inc Bath & Body Works 14,270 4.3 428,100 3.9 30.00
Limited Express
Victoria's Secret
Casual Corner Group Inc. Casual Corner 12,232 3.7 413,001 3.8 33.76
Petite Sophisticate
Contempo Casuals
The Gap, Inc The Gap 9,913 3.0 327,129 3.0 33.00
Gap Kids
Venator Group, Inc. FootLocker 7,477 2.3 286,625 2.6 38.33
Kids FootLocker
Afterthoughts Boutique
Lady FootLocker
Levi Strauss & Co. Design By Levis 8,741 2.6 262,230 2.4 30.00
Olympia Sport Center Olympia Sport Center 15,000 4.5 225,000 2.1 15.00
Record Town Record Town 6,926 2.1 213,000 1.9 30.75
Eastern Mountain Sports Eastern Mountain 6,945 2.1 208,350 1.9 30.00
Sports
Northern Experience Northern Experience
(Reflection) (Reflection) 8,000 2.4 200,000 1.8 25.00
------- ----- ----------- ----- --------
Total/Weighted Average (10 99,542 30.2% $3,006,917 27.5% $30.21
Largest)
Remaining Mall Stores 200,532 60.8 7,941,419 72.5 39.60
Vacant Space 29,839 9.0 0.0 0.00
------- ----- ----------- ----- --------
0
Total (excluding anchors) 329,913 100.0% $10,948,336 100.0% $36.49(2)
======= ===== =========== ===== ========
Filene's Filene's 165,000
JC Penney Co., Inc. JCPenney 101,388
Sears Roebuck & Co. Sears 136,464
Best Buy Co., Inc. Best Buy 41,243
Kitchens Etc.. Kitchens Etc. 19,525
-------
Total (including anchors) 793,533
=======
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Based on the July 15, 1998 rent roll.
(2) Total annualized base rent per square foot excludes vacant square
footage and rent.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Mall of New Hampshire
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating
of Parent Operating
Company(1) Anchor-Owned/ Lease Covenant REA
Anchors Parent Company (S&P/Moody's) GLA Collateral Expiration Expiration Termination
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Filene's Filene's - / - 165,000 Anchor-owned N/A N/A N/A
JCPenney JC Penney Co., A/A2 101,388 Anchor-owned N/A 4/30/13 N/A
Inc.
Sears Sears Roebuck & Co. A/A2 136,464 Anchor-owned N/A 11/15/11 N/A
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: (1) Ratings as of August 1, 1998
Mall Store Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Cumulative
Percent of Percent of
Number of Annualized Total Total
Year Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 19 29,839 9.0% 9.0% $ - $ - 0.0% 0.0%
1999 10 22,816 6.9 16.0% 1,035,301 45.38 9.5 9.5%
2000 4 8,564 2.6 18.6% 386,010 45.07 3.5 13.0%
2001 3 3,465 1.1 19.6% 263,817 76.14 2.4 15.4%
2002 2 5,124 1.6 21.2% 209,388 40.86 1.9 17.3%
2003 5 18,611 5.6 26.8% 760,803 40.88 6.9 24.3%
2004 4 8,555 2.6 29.4% 317,705 37.14 2.9 27.2%
2005 7 17,191 5.2 34.6% 703,512 40.92 6.4 33.6%
2006 4 6,836 2.1 36.7% 413,500 60.49 3.8 37.4%
2007 23 60,628 18.4 55.1% 1,946,695 32.11 17.8 55.1%
2008 43 118,186 35.8 90.9% 3,726,345 31.53 34.0 89.2%
Thereafter 9 30,098 9.1 100.0% 1,185,260 39.38 10.8 100.0%
--- ------- ----- ----------- -------- -----
Total 133 329,913 100.0% $10,948,336 $36.49(2) 100.0%
=== ======= ===== =========== ======== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the July 15, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
Sales Analysis(1)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Annual 1996 Sales Annual 1997 Sales
---------------------- ----------------------------
Square
Footage Total (000s) Per SF Total (000s) Per SF
------- ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C>
Anchor Stores
- -------------
Filene's(2) 165,000 $17,000 $283 $33,000 $200(4)
Sears(2) 136,464 26,000 $249 30,000 $288(5)
JCPenney(3) 101,388 N/A N/A N/A N/A
Best Buy/Kitchens Etc.(3) 60,768 N/A N/A N/A N/A
------- ------- ------- ------- -------
Total Anchor Store 463,620 $43,000 N/A $63,000 N/A
Mall Stores
- -----------
Comparable Store 119,088 $42,625 $349 $44,181 $371
Non-Comparable Store 180,986 5,695 N/A 29,198 N/A
Vacant 29,839 N/A N/A N/A N/A
------- ------- ------- ------- -------
Total Mall Store 329,913 $48,320 N/A $73,379 N/A
Total Sales - Anchor and Mall Stores 793,533 $91,320 $136,379
======= ======= ========
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the December 31, 1996 and December 31, 1997 sales
report and summarized only for tenants on the July 15, 1998 rent
roll. Information is based solely on figures provided by The Mall
of New Hampshire Borrower from data provided by tenants. Square
footage is based on the July 15, 1998 rent roll.
(2) During 1997, Filene's and Sears significantly increased available
GLA. Filene's and Sears' available GLA for 1996 was 60,000 sf and
104,262 sf respectively.
(3) JCPenney opened in April, 1998. Best Buy and Kitchens Etc. are
both expected to open in October 1998.
(4) Sales per square foot for Filene's decreased because of the new
construction during 1997.
(5) Expansion of the Sears space was not complete until the end of
1997.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $100,000,000 $100,000,000
Origination Date: July 1, 1998
Interest Rate: 6.44%
Amortization: Interest only until July 1, 2001; 360 months thereafter
(beginning August 1, 2001).
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 8.44% or the then current U.S.
Treasury rate plus 2.0%. All excess cash flow is used to
reduce the outstanding principal balance; the additional
2% interest accrues interest at the increased rate and is
deferred until the principal balance is zero.
Effective Maturity
Date: July 1, 2008
Maturity Date: July 1, 2031
Borrower/Sponsor: A single purpose, bankruptcy-remote entity wholly owned by
The Macerich Company and its operating partnership.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning on the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) for cause or (ii) upon an
Event of Default.
Up Front Reserves: None
General Monthly
Reserves: Capital Expenditure Reserve equal to $.15 p.s.f. per annum
of shop space per year. Springing reserves for Property
Taxes, Insurance and Tenant Rollover, if DSCR falls below
1.35x, upon a monetary Event of Default, or at the
Effective Maturity Date.
Collection Account: Springing Hard Lock-Box if DSCR falls below 1.35x, upon
Event of Default; or on the Estimated Maturity Date
Cross-
Collateralization/
Default: N/A
Mezzanine Loans: N/A
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
Property Information
Single
Asset/Portfolio: Single Asset
Property Type: Regional Mall
Location: Los Angeles, California
Year
Built/Renovated: 1985
The Collateral: Phase I of a three-level, two-anchor, two-phase regional
mall with a total GLA of 755,701 s.f., anchor space of
401,563 s.f. and mall store space of 354,138 s.f.
Collateral consists of 262,160 s.f. of Phase I in-line
space plus the Nordstrom and Pavilions anchor spaces for a
total of 443,723 s.f.
Anchors include: Robinson-May (220,000 s.f.), Nordstrom
(138,128 s.f.) and Pavilions (43,435 s.f.) Property
Management: The Macerich Property Management Company
Percent of Mall
Store Space Leased
as of May 29, 1998: 98.8%
Comparable Store
Average Occupancy
Cost as of May 29,
1998(1): 16.7%
LTM April, 1998 Net
Operating Income: NAV
Underwritable Net
Cash Flow: $12,632,326
Appraised Value: $160,000,000 (Collateral only)
Appraised By: Cushman & Wakefield, Inc.
Appraisal Date: July 13, 1998
Cut-Off Date EMD(2)
Loan/SF: $225 $205
LTV: 62.5% 57.0%
DSCR(3): 1.93x 2.12x
1996 1997
Mall Store Sales
PSF(4): $376 $376
Notes: (1) Excludes Phase II taxes being paid by Phase I tenants.
(2) Effective Maturity Date
(3) Based on Underwritable Net Cash Flow and Actual Debt Service
(4) Comparable Mall Store Sales
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
Ten Largest Mall Store Tenants and Anchor Leases Based on
Annualized Base Rent By Parent Company(1)(2)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
% of % of Total Annualized
Tenant or Tenant Tenant Total Annualized Annualized Base Rent
Parent Company Store Name GLA GLA Base Rent Base Rent per SF
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
The Limited, Inc. Bath & Body Works 42,021 9.5% $1,366,828 11.3% $32.53
Express
Lane Bryant
Limited
Limited Too
Structure
Victoria's Secret
The Gap, Inc. Banana Republic 25,848 5.8 1,073,227 8.9 41.52
Banana Republic (Men)
Gap Kids
The Gap
Venator Group, Inc. Champs 8,808 2.0 355,474 2.9 40.36
Foot Locker
Lady FootLocker
Nine West Group, Inc. Easy Spirit 6,045 1.4 247,761 2.1 40.99
NineWest
Guess Guess 5,380 1.2 242,100 2.0 45.00
Rampage Rampage 6,422 1.5 224,770 1.9 35.00
Goldwyn Pavilion Cinemas Goldwyn Pavilion 8,321 1.9 208,025 1.7 25.00
Cinemas
Lechters Lechters 6,119 1.4 204,655 1.7 33.45
Consolidated Stores, Inc. Kay Bee Toy 3,843 0.9 172,935 1.4 45.00
Waldenbooks Waldenbooks 6,557 1.5 163,925 1.4 25.00
------- ----- ----------- ----- ------
Total/Weighted Average (10 119,364 26.9% $4,259,700 35.3% $35.69
Largest)
Remaining Mall Stores 139,683 31.5 6,943,743 57.5 49.71
Vacant Space 3,113 0.7 0 0.0 0.00
------- ----- ----------- ----- ------
Total (excluding anchors) 262,160 59.1% $11,203,443 92.8% $43.25(3)
Nordstrom Nordstrom 138,128 31.1 221,000 1.8 1.60
Safeway Inc. Pavilions 43,435 9.8 650,004 5.4 14.96
------- ----- ----------- ----- ------
Total (excluding non-owned 443,723 100.0% $12,074,447 100.0% $27.40(3)
======= ===== =========== ===== ======
anchors)
The May Department Stores Robinsons-May 220,000
Company
Phase II Mall Store
Space 91,978
-------
Total (including
non-owned-anchors) 755,701
=======
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Based on the May 29, 1998 lease status report and applicable
lease modifications.
(2) Reflects Phase I only.
(3) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating
of Parent Operating
Company Anchor-Owned/ Lease Covenant REA
Anchors Parent Company (S&P/Moody's)(1) GLA Collateral Expiration Expiration Termination
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Nordstrom Nordstrom A-/A2 138,128 Collateral 12/31/33 4/30/05 N/A
Robinsons-May The May A+/A2 220,000 Anchor-owned N/A 4/30/05
Department Stores 1/01/50(2)
Company
Safeway, Inc. Pavilions A-/A2 43,435 Collateral 12/01/01 N/A N/A
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Notes: (1) Ratings as of August 1, 1998
(2) Based on the borrower identified opening date of store.
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Cumulative
Percent of Percent of
Number of Annualized Total Total
Year Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 4 3,113 0.7% 0.7% $ - $ - 0.0% 0.0%
1998 1 581 0.1 0.8% 43,575 75.00 0.4 0.4%
1999 6 4,640 1.0 1.9% 307,824 66.34 2.5 2.9%
2000 13 18,600 4.2 6.1% 792,418 42.60 6.6 9.5%
2001 12 63,258 14.3 20.3% 1,685,853 26.65 14.0 23.4%
2002 9 14,975 3.4 23.7% 645,437 43.10 5.3 28.8%
2003 9 10,763 2.4 26.1% 518,362 48.16 4.3 33.1%
2004 11 25,627 5.8 31.9% 1,063,094 41.48 8.8 41.9%
2005 18 38,847 8.8 40.7% 1,701,477 43.80 14.1 56.0%
2006 19 47,038 10.6 51.3% 2,166,780 46.06 17.9 73.9%
2007 12 37,960 8.6 59.8% 1,491,943 39.30 12.4 86.3%
2008 12 35,082 7.9 67.7% 1,245,128 35.49 10.3 96.6%
Thereafter 3 143,239 32.3 100.0% 412,556 $2.88 3.4 100.0%
--- ------- ----- ------------ ---------- -----
Total 129 443,723 100.0% $ 12,074,447 $ 27.40(2) 100.0%
=== ======= ===== ============ ========== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the May 29, 1998 Rent Roll, excludes Phase II
tenants.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
Phase I Sales Analysis(1)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Annual 1996 Sales Annual 1997 Sales
------------------------ -------------------------
Square
Footage Total (000s) Per SF Total (000s) Per SF
------- ------------ ------ ------------ ------
Anchor Stores
- -------------
<S> <C> <C> <C> <C> <C>
Nordstrom 138,128 $76,857 $556 $73,857 $535
Pavilions 43,435 14,866 342 15,463 356
Robinsons-May 220,000 47,127 214 49,782 226
------- ------- ---- ------- ----
Total Anchor Store 401,563 $138,850 $346 $139,102 $346
Mall Stores
- -----------
Comparables 186,264 $70,092 $376 $70,059 $376
Non-Comparable Stores 72,783 20,924 N/A 22,297 N/A
Vacant 3,113 N/A N/A N/A N/A
Total Mall Stores 262,160 $91,016 N/A $92,356 N/A
------- ------- ---- ------- ----
Total Sales - Anchors and Mall 663,723 $229,866 $231,458
======= ======== ========
Stores
</TABLE>
- --------------------------------------------------------------------------------
Note: (1) Data based on the December 31, 1996 and December 31, 1997 sales
report and summarized only for tenants on the May 29, 1998 rent
roll. Information is based solely upon the figures provided by
the Westside Pavilion Borrower from data provided by the tenants.
Square footage is based on the May 29, 1998 rent roll.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] NorthTown Mall
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $84,500,000 $84,426,244
Origination Date: August 4, 1998
Interest Rate: 6.68%
Amortization: 360 Months
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 8.68% or the then current U.S.
Treasury rate plus 2.0%. All excess cash flow is used to
reduce the outstanding principal balance; the additional
2% interest accrues interest at the increased rate and is
deferred until the principal balance is zero.
Effective Maturity
Date: September 1, 2008
Maturity Date: September 1, 2028
Borrower/Sponsor: A single purpose, bankruptcy-remote entity wholly owned by
Price Development Company and JP Realty, Inc.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning on the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) if DSCR falls below
1.15x, (ii) for cause, or (iii) upon an Event of Default.
Up Front Reserves: (a) $9,500,000 Letter of Credit which will be released
upon completion of an expansion parcel containing at least
93,00 s.f. and Borrower's obtaining $1.475 MM in net
annual rents from tenants acceptable to Lender. (b)
Required Repair Fund: $170,375.00. (c) Tax Account:
$620,526.00.
General Monthly
Reserves: 1/12 of annual Property Taxes and Insurance, Capital
Reserves of $8,873 and Tenant Rollover Reserve of $20,833
($250,00 per annum) up to a maximum of $750,000 at any one
time.
Collection Account: Soft Lock-Box Springs to a Hard Lock-Box if coverage drops
to 1.10x, upon an Event of Default, or at the Effective
Maturity Date.
Cross-
Collateralization
Default: N/A
Mezzanine Loans: N/A
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Westside Pavilion
- --------------------------------------------------------------------------------
Property Information
Single
Asset/Portfolio: Single Asset
Property Type: Regional Mall
Location: Spokane, Washington
Year
Built/Renovated: 1955/1985/1992-1993
The Collateral: Two-level, five-anchor regional mall with a total GLA of
952,262 s.f., anchor space of 541,209 s.f. and mall store
space of 411,053 s.f. Collateral consists of mall store
space plus the JCPenney, Emporium, and Bon Marche space
for a total of 709,870 s.f.
Anchors include: Sears (160,480 s.f.), JCPenney (140,868
s.f.), Mervyn's (81,912 s.f.), The Bon Marche (89,207
s.f.) and Emporium (68,742 s.f.).
Property
Management: Price Development Company
Percent of Mall
Store Space Leased
as of July, 1998: 77.2%
Comparable Store
Average Occupancy
Cost as of July,
1998: 12.5%
LTM June, 1998 Net
Operating Income: $10,628,747
Underwritable Net
Cash Flow: $10,028,711
Recent Property
Purchase Price: $128,000,000
Market Study
Performed By: Cushman & Wakefield
Market Study Date: August 20, 1998
Cut-Off Date EMD(1)
Loan/SF(2): $106 $90
LTV(2): 58.5% 49.7%
DSCR(2) (3): 1.73x 2.04x
1996 1997
Mall Store Sales
PSF(4): $289 $283
- --------------------------------------------------------------------------------
Notes: (1) Effective Maturity Date
(2) Loan Amount used for calculations is net of the $9,500,000 Letter
of Credit
(3) Based on Underwritable Net Cash Flow and Actual Debt Service
(4) Comparable Mall Store Sales
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] NorthTown Mall
- --------------------------------------------------------------------------------
Ten Largest Mall Store Tenants and Anchor Leases Based on
Annualized Base Rent By Parent Company(1)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Tenant or % of % of Total Annualized
Tenant Parent Tenant Total Annualized Annualized Base Rent
Company Store Name GLA GLA Base Rent Base Rent per SF
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
The Lane Bryant 43,758 6.2% $801,411 8.9% $18.31
Limited, Lerners
Inc. Bath & Body Works
Limited Express
Structure
Victoria's Secret
Venator Kinney Shoes 18,274 2.6 436,172 4.8 23.87
Group, Inc. Champs Sports
FootLocker
Kids Footlocker
Afterthoughts Boutique
Lady FootLocker
Bumpers Fun Bumpers Fun Center 30,000 4.2 275,000 3.0 9.17
Center
The Gap, The Gap 10,695 1.5 267,375 3.0 25.00
Inc. Gap Kids
Maurices/Just Maurices/Just Petites 8,881 1.3 159,858 1.8 18.00
Petites
B. Dalton B. Dalton 4,465 0.6 133,950 1.5 30.00
Book Sellers
Pizzeria Uno Pizzeria Uno 6,152 0.9 132,000 1.5 21.46
Mariposa Mariposa 5,155 0.7 105,910 1.2 20.55
Spiegel, Eddie Bauer 6,208 0.9 117,952 1.3 19.00
Inc.
Jay Jacobs Jay Jacobs 4,996 0.7 109,912 1.2 22.00
------- ----- ---------- ------ ------
Total/Weighted 138,584 19.5% $2,539,540 28.0% $18.32
Average (10
Largest)
Remaining 178,679 25.2 4,924,123 54.4 27.56
Mall Stores
Vacant Space 93,790 13.2 0 0.0 0.00
------- ----- ---------- ------ ------
Total 411,053 57.9% $7,463,663 82.4% $23.53(2)
(excluding
anchors)
Federated Bon Marche 89,207 12.6 400,000 4.4 4.48
Department
Stores, Inc.
Emporium Emporium 68,742 9.7 516,940 5.7 7.52
J.C. Penney JCPenney 140,868 19.8 673,952 7.4 4.78
------- ----- ---------- ------ ------
Co., Inc.
Total 709,870 100.0% $9,054,555 100.0% $14.70(2)
======= ===== ========== ===== ======
(excluding
non-owned
anchors)
Sears Sears 160,480
Roebuck &
Co.
Dayton Mervyn's
Hudson Corp. 81,912
-------
Total
(including
leased
anchors) 952,262
=======
</TABLE>
- --------------------------------------------------------------------------------
Note: (1) Based on the July 31, 1998 Rent Roll
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] NorthTown Mall
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating
of Parent Operating
Company(1) Anchor-Owned/ Lease Covenant REA
Anchors Parent Company (S&P/Moody's) GLA Collateral Expiration Expiration Termination
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Bon Marche Federated BBB-/ - 89,207 Collateral 1/31/14 12/31/06 N/A
Department Stores,
Inc.
JCPenney J.C. Penney Co., A/A2 140,868 Collateral 8/31/11 12/31/06 N/A
Inc.
Sears Sears Roebuck & Co. A-/A2 160,480 Anchor-owned 10/03/04 10/04/04 9/27/40
Mervyn's Dayton Hudson Corp. BBB+/A3 81,912 Anchor-owned 10/16/06 10/18/06 9/27/40
Emporium Emporium - / - 68,742 Collateral 10/31/11 10/31/11 N/A
</TABLE>
- --------------------------------------------------------------------------------
Note: (1) Ratings as of July 1998.
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Cumulative
Percent of Percent of
Number of Annualized Total Total
Year Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 45 93,790 13.2% 13.2% $ - $ - 0.0% 0.0%
MTM 3 4,828 0.7 13.9% 115,662 23.96 1.3 1.3%
1998 3 3,135 0.4 14.3% 73,284 23.38 0.8 2.1%
1999 8 10,072 1.4 15.8% 259,200 25.73 2.9 4.9%
2000 8 12,883 1.8 17.6% 323,058 25.08 3.6 8.5%
2001 24 33,341 4.7 22.3% 987,515 29.62 10.9 19.4%
2002 31 111,164 15.7 37.9% 2,211,945 19.90 24.4 43.9%
2003 13 19,546 2.8 40.7% 459,803 23.52 5.1 48.9%
2004 14 38,134 5.4 46.0% 840,280 22.03 9.3 58.2%
2005 11 17,214 2.4 48.5% 514,237 29.87 5.7 63.9%
2006 10 21,366 3.0 51.5% 575,366 26.93 6.4 70.2%
2007 12 34,880 4.9 56.4% 829,487 23.78 9.2 79.4%
2008 3 10,109 1.4 57.8% 229,500 22.70 2.5 81.7%
Thereafter 4 299,408 42.2 100.0% 1,663,218 5.46 18.1 100.0%
--- ------- ----- ---------- ------ -----
Total 189 709,870 100.0% $9,054,555 $14.70(2) 100.0%
=== ======= ===== ========== ====== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the July 31, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage and rent.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] NorthTown Mall
- --------------------------------------------------------------------------------
Sales Analysis(1)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
Annual 1996 Sales Annual 1997 Sales
----------------------- ----------------------
Square
Footage Total (000s) Per SF Total (000s) Per SF
------- ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C>
Anchor Stores
- -------------
Bon Marche 89,207 $22,636 $254 $21,958 $246
Emporium 68,742 6,148 89 6,022 88
JCPenney (2)(3) 140,868 24,292 172 23,904 170
------- ------- ---- ------- ----
Total Anchor Store 298,817 $53,076 $178 $51,884 $174
Mall Stores
- -----------
Comparable Store 288,260 $83,260 $289 $81,628 $283
Non-Comparable Store 29,003 3,145 N/A 5,962 N/A
Vacant 93,790 N/A N/A N/A N/A
------- ------- ---- ------- ----
Total Mall Stores 411,053 $86,405 N/A $87,590 N/A
Total Sales - Anchor and Mall 709,870 $139,481 $139,474
======= ======== ========
Stores
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the December 31, 1996 and December 31, 1997 sales
report and summarized only for tenants on July 31, 1998 rent
roll. Information is based solely on figures provided by the
seller of The NorthTown Property from data provided by tenants.
Square footage is based on the July 31, 1998 rent roll.
(2) JCPenney 1996 sales are based on the sales reporting of September
1, 1995 to August 31, 1996.
(3) JCPenney 1997 sales are based on the sales reporting periods of
September 1, 1996 to August 31, 1997.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Edens & Avant Pool II
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $70,000,000 $70,000,000
Origination Date: September 18, 1998
Interest Rate: 6.20%
Amortization: Interest only until Effective Maturity Date
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 8.20% or the then current U.S.
Treasury rate plus 2.0%. All excess cash flow is used to
reduce the outstanding principal balance; the additional
2% interest accrues interest at the increased rate and is
deferred until the principal balance is zero.
Effective Maturity October 1, 2008
Date:
Maturity Date: October 1, 2028
Borrower/Sponsor: A single purpose, bankruptcy-remote entity wholly owned by
the State of Michigan Retirement System and Edens & Avant,
Inc. principals and family members.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning 60 days prior to the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) if the DSCR falls below
1.25x, (ii) for cause, (iii) upon Event of Default or (iv)
six months after the Effective Maturity Date.
Up Front Reserves: 2 months of all required escrows to be funded at closing
for the term of the loan. Immediate deferred maintenance
escrow TBD.
General Monthly
Reserves: 1/12 of annual Property Taxes and Insurance, Capital
Reserves of $.20 psf per annum.
Collection Account: Soft Lock-Box- Borrower to deposit all amounts received in
connection with the properties within 1 business day of
its receipt thereof. Springs to Hard Lock-Box if DSCR
drops to 1.25x.
Cross-
Collateralization/
Default: Cross-collateralized and cross-defaulted.
Mezzanine Loans: N/A
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] NorthTown Mall
- --------------------------------------------------------------------------------
Property Information
Single Portfolio
Asset/Portfolio:
Property Type: Anchored Retail
Location: State Percent
----- -------
Virginia 22.9%
Mississippi 22.1
Georgia 20.2
South Carolina 11.8
Other States 23.0
Year
Built/Renovated: Between 1934 and 1997
The Collateral: 21 anchored-retail shopping centers with a total GLA of
2,175,884 s.f.
Property Management: Edens & Avant, Inc.
Percent of Pool
Leased as of
May-July, 1998: 96%
1997 Net Operating
Income: $11,674,117
Underwritable Net
Cash Flow: $12,772,222
Recent Purchase
Price: $143,567,822
Market Study
Performed By(1): Cushman & Wakefield
Market Study Date: August, 1998
Cut-Off Date EMD(2)
Loan/SF: $32 $32
LTV(3): 48.8% 48.8%
DSCR(4): 2.90x 2.90x
1996 1997
Sales PSF(5): $293 $290
Notes: (1) Four properties had appraisals performed by O. Marshall Dodds
from March through June, 1998.
(2) Effective Maturity Date
(3) Value based on recent purchase price
(4) Based on Underwritable Net Cash Flow and Actual Debt Service
(5) Available Comparable Store Sales
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Edens & Avant Pool II
- --------------------------------------------------------------------------------
Property Summary Table(1)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Annualized Annualized
Allocated Occupancy Base Rent Base Rent
Loan Year Built/ as of May- as of PSF as of
Property Name Location Amount SF Renovated July, 1998 UCF July, 1998 July, 1998(2)
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Promenade at Manassas, VA $11,791,400 303,643 1993 97.5% $2,264,551 $2,585,897 $ 8.73
Manassas
Marrietta Trade Marrietta, 11,261,250 305,555 1988 100.0 1,956,808 2,529,669 8.28
Center GA
Fulton Crossing Corinth, MS 5,106,150 179,905 1992/95 100.0 887,331 1,023,989 5.69
Shopping Center
Cypress Point Virginia 4,246,500 118,002 1990 89.9 815,640 934,757 8.81
Shopping Center Beach, VA
Rio Pinar Plaza Orlando, FL 3,521,700 113,620 1984/86 92.8 714,054 900,036 8.54
Baldwin Square Fairhope, AL 3,667,950 139,144 1979/1997 67.3 704,503 761,430 8.13
Shopping Center
Mountain Island Charlotte, 3,546,900 73,230 1995 100.0 616,357 670,050 9.15
Market Place NC
Butler Square Mauldin, SC 3,265,500 80,285 1987 100.0 567,447 674,844 8.41
Shields Plaza Huntsville, 2,764,500 79,240 1996/97 100.0 531,027 599,439 7.56
AL
Plantation Smyrna, GA 2,850,750 63,200 1988 96.3 495,446 554,244 9.10
Pointe Shopping
Center
Kenilworth Charlotte, 2,629,200 38,117 1988 100.0 456,872 489,798 12.85
Commons NC
Ellis Isle Jackson, MS 2,552,550 238,091 1973 100.0 443,601 664,462 2.79
Shopping Center
Landing Station Lake Wylie, 2,479,650 58,400 1997 95.9 436,482 470,700 8.41
Shopping Center SC
Old Canton Road Jackson, MS 1,762,000 57,276 1984/1992 100.0 321,480 348,967 6.09
Shopping Center
Reservoir Brandon, MS 1,641,000 57,238 1979/1987/92 100.0 299,377 400,794 7.00
Square Shopping
Center
Magee Shopping Magee, MS 1,451,000 93,456 1979/1987 91.4 264,674 398,982 4.67
Center
English Village Jackson, MS 1,443,000 33,472 1973/1989 100.0 263,218 289,000 8.63
Shopping Center
Gateway Plaza Conway, SC 1,405,000 28,150 1997 100.0 256,285 313,875 11.15
Midway Plaza Winnsboro, 1,129,000 25,860 1997 100.0 206,048 258,240 9.99
Shopping Center SC
Daniel Lake Jackson, MS 752,000 45,000 1978 100.0 137,253 184,500 4.10
Shopping Center
Village Square
Shopping Center Brookhaven, 733,000 45,000 1977 100.0 133,768 150,000 3.33
----------- --------- ----- ----------- ----------- ------
MS
Totals $70,000,000 2,175,884 96.1% $12,772,222 $15,203,673 $ 7.27
=========== ========= ===== =========== =========== ======
</TABLE>
- ----------------------------------------------------------
Primary Tenants with
15,000 SF or greater
Property Name Location as of July, 1998
- ----------------------------------------------------------
Promenade at Manassas, VA WalMart (2012) and Home
Manassas Depot (2015)
Marrietta Trade Marrietta, Cub Foods (2008) and
Center GA WalMart (2008) (dark)
Fulton Crossing Corinth, MS K-Mart (2017) and Kroger
Shopping Center (2012)
Cypress Point Virginia Farm Fresh Store (2015)
Shopping Center Beach, VA
Rio Pinar Plaza Orlando, FL Publix Supermarkets (2004)
Baldwin Square Fairhope, AL Winn-Dixie (2016)
Shopping Center
Mountain Island Charlotte, Harris Teeter (2015)
Market Place NC
Butler Square Mauldin, SC Bi-Lo (2007)
Shields Plaza Huntsville, Winn-Dixie (2016)
AL
Plantation Smyrna, GA Winn-Dixie (2008)
Pointe Shopping
Center
Kenilworth Charlotte, Harris Teeter (2008)
Commons NC
Ellis Isle Jackson, MS Sack `N Save (2005) and
Shopping Center WalMart (2004) (dark)
Landing Station Lake Wylie, Winn-Dixie (2017)
Shopping Center SC
Old Canton Road Jackson, MS Jitney Jungle (2009)
Shopping Center
Reservoir Brandon, MS Jitney Jungle (2007)
Square Shopping
Center
Magee Shopping Magee, MS Jitney Jungle (2007)
Center
English Village Jackson, MS Jitney Jungle (2013)
Shopping Center
Gateway Plaza Conway, SC (3)
Midway Plaza Winnsboro, (3)
Shopping Center SC
Daniel Lake Jackson, MS Jitney Jungle (2003)
Shopping Center
Village Square
Shopping Center Brookhaven, Sack `N Save (2002)
MS
- --------------------------------------------------------------------------------
Notes: (1) Data based on the most recent available Rent Roll (May-July,
1998).
(2) Annualized base rent per square foot excludes vacant square
footage.
(3) Anchored by Wal-Mart which is not part of collateral.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet
[GRAPHIC OMITTED] Edens & Avant Pool II
- --------------------------------------------------------------------------------
Ten Largest Tenants Based on Annualized Base Rent(1)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
% of % of Total
Tenant or Tenant Tenant Total Annualized Annualized Annualized
Parent Company Store Name No. of Stores GLA (SF) GLA Base Rent Base Rent Base Rent Per SF
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Jitney-Jungle Stores of Jitney 9 355,438 16.3% $1,636,235 10.8% $4.60
America, Inc. Jungle
Sack `N Save
Wal-Mart Stores, Inc. WalMart 3 303,598 14.0 1,478,795 9.7 4.87
Winn-Dixie Stores, Inc. Winn-Dixie 4 183,282 8.4 1,452,749 9.6 7.93
The Home Depot, Inc. Home Depot 1 107,400 4.9 843,090 5.5 7.85
Ruddick Corporation Harris 2 76,627 3.5 695,212 4.6 9.07
Teeter
Supervalu, Inc. Cub Foods 1 76,564 3.5 556,921 3.7 7.27
K-Mart Corporation K-Mart 1 107,806 5.0 545,498 3.6 5.06
Farm Fresh, Inc. Farm Fresh 1 53,231 2.4 371,020 2.4 6.97
Royal Ahold NV Bi-Lo 1 38,654 1.8 302,661 2.0 7.83
The Kroger Co. Kroger 1 45,674 2.1 240,000 1.6 5.25
--- --------- ----- ----------- ----- -----
Total/Weighted Average (10 Largest) 24 1,348,274 62.0% $8,122,182 53.4% $6.02
Other Major Tenants 35 338,378 15.6 2,386,423 15.7 7.05
(greater than 5,000
square feet)
Remaining Tenants 207 403,334 18.5 4,695,069 30.9 11.64
Vacant Space 31 85,898 3.9 0 0.0 0.00
--- --------- ----- ----------- ----- -----
Total/Weighted Average 297 2,175,884 100.0% $15,203,673 100.0% $7.27(2)
=== ========= ===== =========== ===== =====
</TABLE>
- --------------------------------------------------------------------------------
Note:(1) Data based on the most recent available Rent Roll (May-July, 1998).
(2) Total annual base rent per square foot excludes vacant square footage.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet
[GRAPHIC OMITTED] Edens & Avant Pool II
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Cumulative
Number of Annual Percent of Percent of
Year Leases Expiring Percent of Cumulative Annualized Base Rent Annualized Annualized
Expiration Expiring SF Total SF % of SF Base Rent Per SF Base Rent Base Rent
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 31 85,898 3.9% 3.9% $ - $ - 0.0% 0.0%
M-T-M 7 10,371 0.5 4.4% 117,369 11.34 0.8 0.8%
1998 15 23,819 1.1 5.5% 338,592 14.22 2.2 3.0%
1999 50 146,163 6.7 12.2% 1,317,075 9.01 8.7 11.7%
2000 46 134,853 6.2 18.4% 1,246,098 9.24 8.2 19.9%
2001 49 126,293 5.8 24.2% 1,244,904 9.86 8.2 28.0%
2002 25 94,461 4.3 28.6% 702,153 7.43 4.6 32.7%
2003 33 132,716 6.1 34.7% 1,146,576 8.64 7.5 40.2%
2004 6 172,451 7.9 42.6% 688,756 3.99 4.5 44.7%
2005 4 134,500 6.2 48.8% 436,660 3.25 2.9 47.6%
2006 1 5,000 0.2 49.0% 55,000 11.00 0.4 48.0%
2007 8 120,273 5.5 54.5% 833,374 6.93 5.5 53.5%
2008 8 252,708 11.6 66.2% 1,867,919 7.39 12.3 65.7%
Thereafter 14 736,378 33.8 100.0% 5,208,927 7.07 34.3 100.0%
--- --------- ----- ----------- ------- -----
Total 297 2,175,884 100.0% $15,203,673 $ 7.27(2) 100.0%
=== ========= ===== =========== ======= =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Data based on the most recent available Rent Roll (May-July,
1998).
(2) Total annual base rent per square foot excludes vacant square
footage and rent.
Largest Tenants (Over $11 MM in 1997 Sales) Based on
Available Comparable Store 1996 and 1997 Sales History
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Annual 1996 Sales Annual 1997 Sales
--------------------------------- ------------------------------
No. of Square
Store Name Stores Feet Total (000s) Per SF Total (000s) Per SF
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Jitney Jungle 5 177,938 $65,232 $367 $59,919 $337
Sack `N Save 2 165,000 51,907 315 50,972 309
WalMart 1 116,085 45,244 390 47,004 405
Home Depot 1 107,400 31,297 291 30,621 285
Bi Lo 1 38,654 14,335 371 16,358 423
Harris Teeter 1 26,000 14,956 575 15,113 581
-- ------- -------- ---- -------- ----
Total Largest Tenants 11 631,077 222,970 $353 $219,986 $349
Other Comparable Stores 28 292,894 48,119 164 47,924 164
-- ------- -------- ---- -------- ----
Grand Total 39 923,971 $271,089 $293 $267,911 $290
== ======= ======== ==== ======== ====
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Crystal Park IV
- --------------------------------------------------------------------------------
Loan Information
Original Cut-Off Date
Principal Balance: $67,100,000 $67,039,458
Origination Date: August 26, 1998
Interest Rate: 6.51%
Amortization: 360 Months
Hyperamortization: After the Effective Maturity Date, the interest rate
increases to the greater of 10.51% or the then current
U.S. Treasury rate plus 4.0%. All excess cash flow is
used to reduce the outstanding principal balance; the
additional 4% interest accrues interest at the increased
rate and is deferred until the principal balance is zero.
Effective Maturity
Date: September 1, 2008
Maturity Date: September 1, 2028
Borrower/Sponsor: The borrowing entity is a special purpose bankruptcy-
remote entity controlled by the principals of Charles E.
Smith Commercial Realty.
Call Protection: 2-year lockout from the date of securitization with U.S.
Treasury defeasance thereafter. Loan prepayable at par
beginning one month prior to the Effective Maturity Date.
Removal of
Property Manager: Management may be terminated (i) if the DSCR for the Loan
falls below 1.10x, (ii) for cause, (iii) upon an Event of
Default or (iv) after the Effective Maturity Date.
Up Front Reserves: Tenant Rollover Reserve Fund: $1 MM Letter of Credit
required for as long as S&P's and Moody's ratings of U.S.
Airways, Inc.'s unsecured debt are less than "BB" and
"Ba2," respectively.
USAir Escrow: All property cash flow (capped at $6 MM) will be escrowed
starting upon the earlier occur of 3/1/07 and a USAir
bankruptcy reserved for potential tenant improvements and
leasing commission costs for the USAir lease rollover.
General Monthly
Reserves: 1/12 of annual Property Taxes, Capital Reserves of
$15,545.63.
Collection Account: Hard Lock-Box
Cross-
Collateralization/
Default: N/A
Mezzanine Loans: N/A
Property Information
Single Single Asset
Asset/Portfolio:
Property Type: Class A Office Building
Location: Arlington, Virginia
Year
Built/Renovated: 1988
The Collateral: 11 office floors, 4 below grade parking garage levels and
1 penthouse mechanical level with 466,369 s.f. of Net
Rentable Area, which includes 3,000 s.f. of restaurant
space and 815 s.f. of retail space.
Major Tenants: US Airways, Inc.; Charles E. Smith Mgmt;
Booz Allen Hamilton Inc. and ADI Technology
Property Management: Charles E. Smith Commercial Realty, LP
Percent of Space
Leased as of
July, 1998: 100%
LTM June, 1998 Net
Operating Income: $10,670,180
Underwritable Net
Cash Flow: $9,844,213
Appraised Value: $107,000,000
Appraised By: Cushman & Wakefield
Appraisal Date: July 7, 1998
Cut-Off Date EMD(1)
Loan/SF: $144 $124
LTV: 62.7% 54.0%
DSCR(2): 1.93x 2.25x
Notes: (1) Effective Maturity Date
(2) Based on Underwritable Net Cash Flow and Actual Debt Service.
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Crystal Park IV
- --------------------------------------------------------------------------------
Five Largest Tenants Based on Annualized Base Rents By Parent Company(1)
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------
Tenant
Net Percent % of Total Annualized
Tenant or Tenant Leasable of Total Annualized Annualized Base
Parent Company Area GLA Base Rent Base Rent Rent per SF
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
US Airways, Inc.. 327,016 70.1% $8,950,238(2) 70.6% $27.37
Charles E. Smith Mgmt Inc. 115,475 24.8 3,014,036 23.8 26.10
ADI Technology, Inc. 9,198 2.0 269,248 2.1 29.27
Booz-Allen & Hamilton, Inc. 3,553 0.8 99,484 0.8 28.00
Via Cucina Restaurant 3,000 0.6 97,500 0.8 32.50
------- ----- ----------- ----- ------
Total Major Tenants 458,242 98.3% $12,430,506 98.1% $27.13
Other Tenants 8,127 1.7 246,676 1.9 30.35(2)
Vacant Space - - - - -
------- ----- ----------- ----- ------
Total Net Rentable Area 466,369 100.0% $12,677,182 100.0% $27.18(3)
======= ===== =========== ===== ======
</TABLE>
-------------------------------------------------------------------------------
Notes: (1) Based on the August 1, 1998 Rent Roll and does not include
annualized CPI escalations of $964,271.
(2) Includes $400,140 from a signed lease which begins on October 1,
1998.
(3) Includes Environmental Center Parking which occupies 1 square
foot and pays an annual rent of $8,400. If this tenant were
eliminated, the Annualized Base Rent per SF for the Other Tenants
would be $29.32, not $30.35, resulting in a Total Annualized Base
Rent per SF of $27.16, not $27.18.
- --------------------------------------------------------------------------------
Historical Occupancy
- --------------------------------------------------------------------------------
Occupancy Period/Date: Percent Leased
- --------------------------------------------------------------------------------
August 1, 1998 100%
December 31, 1997 100%
December 31, 1996 100%
December 31, 1995 100%
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Structural Term Sheet
[GRAPHIC OMITTED] Crystal Park IV
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Percent Cumulative
Number Percent Cumulative Annualized of Total Percent of
Year of of Leases Expiring of Percent Annualized Base Rent Annualized Total Annualized
Expiration Expiring SF Total SF of Total SF Base Rent Per SF Base Rent Base Rent
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 0 - 0.0% 0.0% $ - $ - 0.0% 0.00%
1998(2) 2 - 0.0 0.0% 50 - 0.0 0.0%
1999 8 23,568 5.1 5.1% 491,799 20.87 3.9 3.9%
2000 2 2,263 0.5 5.5% 68,246 30.16 0.5 4.4%
2001 1 2,901 0.6 6.2% 81,228 28.00 0.6 5.1%
2002 6 40,617 8.7 14.9% 1,146,148 28.22 9.0 14.1%
2003 0 - 0.0 14.9% - - 0.0 14.1%
2004 1 101,246 21.7 36.6% 2,809,549 27.75 22.2 36.3%
2005 0 - 0.0 36.6% - - 0.0 36.3%
2006 0 - 0.0 36.6% - - 0.0 36.3%
2007 0 - 0.0 36.6% - - 0.0 36.3%
2008 1 295,774 63.4 100.0% 8,080,162 27.32 63.7 100.0%
Thereafter 0 - 0.0 100.0% - - 0.0 100.0%
-- ------- ----- ----------- ------ -----
Total 21 466,369 100.0% $12,677,182 $27.18(3) 100.0%
== ======= ===== =========== ====== =====
</TABLE>
- --------------------------------------------------------------------------------
Notes: (1) Based on the August 1, 1998 Rent Roll and does not include
annualized CPI escalations of $964,271.
(2) $50 Base Rent reflects antenna on roof of building.
(3) Total annual base rent per square foot excludes vacant square
footage.
