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: September 17, 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
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(State or Other (Commission (I.R.S. Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
1585 Broadway, New York, N.Y. 10036
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(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and superseded for purposes of the Prospectus and the Registration Statement by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.
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of the Registrant
by the undersigned thereunto duly authorized.
MORGAN STANLEY CAPITAL I INC.
By: /s/ Shirish Godbole
-------------------
Name: Shirish Godbole
Title: Vice President
Date: September 18, 1998
<PAGE>
Exhibit Index
Item 601(a) of
Regulation S-K
Exhibit No. Description Page
- ----------- ----------- ----
99 Term Sheets
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MORGAN STANLEY
Real Estate Debt Capital Markets [GRAPHIC OMITTED]
Mortgage/Asset Backed Capital Markets
- --------------------------------------------------------------------------------
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.
CMBS New Issue
Preliminary Collateral Term Sheet
---------------------------------------------
$706.5 MM
(Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
---------------------------------------------
[GRAPHIC OMITTED]
MORGAN STANLEY DEAN WITTER
<PAGE>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Collateral Characteristics
<TABLE>
<S> <C>
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: 58.5%
Weighted Average LTV at Effective Maturity Date: 53.6%
Weighted Average DSCR: 2.14x
Weighted Average Original Amortization Term (Months): 385
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>
================================================================================
Percentage Principal
Cut-Off of Cut-Off Balance at Cut-Off
Date Date Effective Date
Principal Principal Maturity LTV(2)
Loan Name Balance Balance Coupon Date
================================================================================
Edens & Avant Pool I $121,983,000 17.3% 6.20% $121,983,000 45.9%
Edens & Avant Pool II 73,017,000 10.3 6.20 73,017,000 50.9
Grapevine Mills 155,000,000 21.9 6.47 143,683,538 61.7
Mall of New Hampshire 105,000,000 14.9 6.96 93,305,773 67.4
Westside Pavilion 100,000,000 14.2 6.44 91,132,625 62.5
NorthTown Mall 84,426,244 12.0 6.68 73,062,731 58.5
Crystal Park IV 67,039,458 9.5 6.51 57,745,712 62.7
------------ ----- ---- ------------ ----
$706,465,702 100.0% 6.49% $653,930,379 58.5%
============ ===== ==== ============ ====
================================================================================
Original Remaining
Effective Term to Term to
Maturity Original Effective Effective
Date Amortization Maturity Maturity
Loan Name LTV(2) DSCR(2) (3) Term(4) Date Date
================================================================================
Edens & Avant Pool I 45.9% 2.78x IO 120 120
Edens & Avant Pool II 50.9 2.78 IO 120 120
Grapevine Mills 56.9 2.17 408 120 119
Mall of New Hampshire 59.1 1.65 378 126 120
Westside Pavilion 57.0 1.95 396 120 117
NorthTown Mall 49.7 1.73 360 120 119
Crystal Park IV 54.0 1.92 360 120 119
---- ---- --- --- ---
53.6% 2.15x 385 121 119
==== ==== === === ===
================================================================================
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 calculated annual debt
service adjusted for credit enhancements.
(4) Weighted Average Original Amortization Term excludes Edens &
Avant Pools I and II. Grapevine Mills, Mall of New Hampshire and
Westside Pavilion have initial interest only periods of 48, 18
and 36 months respectively.
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<PAGE>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
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$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Loan Features
<TABLE>
<CAPTION>
======================================================================================
Removal of Capital
Principal Property Reserve
Loan Name Call Protection(1) Repayment Manager Accounts
======================================================================================
<S> <C> <C> <C> <C>
Edens & Avant Pool I Defeasance(2) Effective Maturity Yes Yes
Edens & Avant Pool II Defeasance(2) Effective Maturity Yes Yes
Grapevine Mills Defeasance(3) Effective Maturity Yes Yes
Mall of New Hampshire Defeasance Effective Maturity Yes Yes
Westside Pavilion Defeasance Effective Maturity Yes Yes
NorthTown Mall Defeasance Effective Maturity Yes Yes
Crystal Park IV Defeasance(4) Effective Maturity Yes Yes
</TABLE>
<TABLE>
<CAPTION>
======================================================================================
Cross Bankruptcy-Remote Funded
Lock Box/ Collaterali- Borrowing Tax and
Sweep zation (Pools Only) Entity Insurance
Loan Name Account Escrow
======================================================================================
<S> <C> <C> <C> <C>
Edens & Avant Pool I Yes (5) Yes Yes Yes
Edens & Avant Pool II Yes (5) Yes Yes Yes
Grapevine Mills Yes N/A Yes(8) Yes(9)
Mall of New Hampshire Yes(7) N/A Yes Yes(10)
Westside Pavilion Yes (6) N/A Yes Yes(10)
NorthTown Mall Yes (5) N/A Yes Yes(10)
Crystal Park IV Yes N/A Yes Yes
</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>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
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$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 & Avant Anchored Retail Various
Edens & Avant Pool II Southeastern U.S. State of Michigan Retirement System/Edens & Avant Anchored Retail Various
Grapevine Mills Dallas/Ft. Worth, TX Simon DeBartolo Group/Mills Corporation Regional "Mills" Mall 1997
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 1955/1961/1983-
1984/1993
Crystal Park IV Arlington, VA Charles E. Smith Office 1988
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Cut-Off Date
Loan Loan PSF/ Appraised
Loan Name Amount Square Feet Per Unit(2) Value
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Edens & Avant Pool I $121,983,000 2,100,452 $ 58 $ 265,582,293(3)
Edens & Avant Pool II 73,017,000 2,175,884 34 143,567,822(3)
Grapevine Mills 155,000,000 1,241,769 117 235,000,000
Mall of New Hampshire 105,000,000 329,913 288 141,000,000
Westside Pavilion 100,000,000 443,723 225 160,000,000
NorthTown Mall 84,426,244 704,949 106 128,000,000(3)
Crystal Park IV 67,039,458 466,369 144 107,000,000
------------ --------- ------- --------------
Total/Weighted Average $706,465,702 7,463,059 $ 95 $1,180,150,115
============ ========= ======= ==============
</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>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Geographic Diversification
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
State Number of Cut-Off Date Percentage of Underwritable Percentage of Weighted Percentage of Weighted
Properties Allocated Loan Total Cut-Off Cash Flow Total Average Appraised Total Average
Amount Date Allocated Underwritable DSCR(2) Value(3) Appraised Cut-Off
Loan Amount Cash Flow(1) Value(3) Date LTV
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TX 1 $155,000,000 21.9% $20,619,033 21.0% 2.17x $235,000,000 19.9% 61.7%
NH 1 105,000,000 14.9 11,059,670 11.2 1.65 141,000,000 11.9 67.4
CA 1 100,000,000 14.2 12,755,373 13.0 1.95 160,000,000 13.6 62.5
VA 3 84,648,458 12.0 12,871,071 13.1 2.10 143,150,000 12.1 60.2
WA 1 84,426,244 12.0 10,029,449 10.2 1.73 128,000,000 10.8 58.5
MA 5 44,520,000 6.3 7,787,518 7.9 2.78 99,565,306 8.4 45.9
OH 4 34,250,000 4.8 5,991,384 6.1 2.78 78,448,496 6.6 45.9
CT 2 27,452,000 3.9 4,801,924 4.9 2.78 60,048,312 5.1 45.9
MS 8 15,726,000 2.2 2,750,702 2.8 2.78 29,572,853 2.5 50.9
GA 2 14,019,000 2.0 2,452,254 2.5 2.78 27,579,806 2.3 50.9
TN 1 10,934,000 1.5 1,912,644 1.9 2.78 18,100,000 1.5 45.9
SC 4 8,382,000 1.2 1,466,262 1.5 2.78 16,744,909 1.4 50.9
AL 2 7,063,000 1.0 1,235,530 1.3 2.78 12,673,000 1.1 50.9
NC 2 6,136,000 0.9 1,073,229 1.1 2.78 12,032,254 1.0 50.9
FL 1 4,082,000 0.6 714,054 0.7 2.78 8,815,000 0.7 50.9
NY 2 3,086,000 0.4 539,766 0.5 2.78 6,532,097 0.6 45.9
IN 1 1,741,000 0.2 304,605 0.3 2.78 2,888,082 0.2 45.9
-- ------------ ----- ----------- ----- ---- -------------- ----- ----
Total 41 $706,465,702 100.0% $98,364,468 100.0% 2.15x $1,180,150,115 100.0% 58.5%
== ============ ===== =========== ===== ==== ============== ===== ====
</TABLE>
================================================================================
Notes: (1) Numbers may not total 100% due to rounding.
(2) Based on Underwritable Net Cash Flow and calculated annual 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 II and
NorthTown Mall are based on recent acquisitions prices.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
Property Type Diversification
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
================================================================================
Property Type Number of Cut-Off Date Percentage of Underwritten
Properties Allocated Total Cut-Off Cash Flow
Loan Amount Date Allocated
Loan Amount
================================================================================
Regional Mall 3 $289,426,244 41.0% $33,844,492
Anchored Retail 36 195,000,000 27.6 34,110,063
Regional "Mills" Mall 1 155,000,000 21.9 20,619,033
Office 1 67,039,458 9.5 9,790,880
-- ------------ ----- -----------
Total 41 $706,465,702 100.0% $97,924,322
== ============ ===== ===========
====================================================================
Percentage of Weighted Weighted
Total Average Percentage Average
Underwritten DSCR(2) of Total Cut-Off Date
Cash Flow(1) Appraised Appraised LTV
Value(3) Value(3)
====================================================================
34.4% 1.78x $429,000,000 36.4% 63.1%
34.7 2.78 409,150,115 34.7 47.8
21.0 2.17 235,000,000 19.9 61.7
10.0 1.92 107,000,000 9.1 62.7
----- ---- -------------- ----- ----
100.0% 2.15x $1,180,150,115 100.0% 58.5%
===== ==== ============== ===== ====
================================================================================
Notes: (1) Numbers may not total 100% due to rounding.
(2) Based on Underwritable Net Cash Flow and calculated annual 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 II and
NorthTown Mall are based on recent acquisitions prices.
<PAGE>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Edens & Avant Pool I
- --------------------------------------------------------------------------------
================================================================================
Loan Information
================================================================================
Original Cut-Off Date
Principal Balance: $121,983,000 $121,983,000
Origination Date: Estimated to be 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 36.5%
Ohio 28.1
Connecticut 22.5
Other States 13.2
Year Built/Renovated: Between 1955 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 July, 1998: 97%
1997 Net Operating Income: $21,363,296
Underwritable Net Cash
Flow: $21,337,843
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: $58 $58
LTV(3): 45.9% 45.9%
DSCR(4): 2.78x 2.78x
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>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Edens & Avant Pool I
- --------------------------------------------------------------------------------
Property Summary Table
================================================================================
Allocated
Loan Year Built/
Property Name Location Amount SF Renovated
================================================================================
Fairlawn Town Fairlawn, OH $17,665,000 353,191 1970/94/96
Center
Bishops Corner West Hartford, CT 15,816,000 123,796 1990
South Bay Center Boston, MA 13,534,000 121,540 1994
Brookside/Brookway Bridgeport, CT 11,636,000 158,990 1957
Shopping Center
Winchester Court Memphis, TN 10,934,000 244,992 1987
Shopping Center
Middlesex Mall Burlington, MA 9,362,000 222,218 1974/1991
Westown Square Cleveland, OH 9,360,000 169,059 1987
Burlington Burlington, MA 8,631,000 190,300 1974/1997
Crossroads
Shrewsbury Shrewsbury, MA 7,472,000 74,215 1993
Crossing Shopping
Center
Buckeye Plaza Cleveland, OH 5,963,000 117,281 1989
Acton Plaza Acton, MA 5,521,000 136,233 1972/1994
Eastchester Plaza Eastchester, NY 2,177,000 23,375 1955/1987
Elkhart Plaza Elkhart, IN 1,741,000 97,560 1972/1992
Columbia-Detroit West Lake, OH 1,262,000 49,602 1979/1995
Center at Patchogue Patchogue, NY 909,000 18,100 1991
------------ ---------
Totals $121,983,000 2,100,452
============ =========
<TABLE>
<CAPTION>
=======================================================================================================================
Annualized Annualized
Occupancy Base Rent Base Rent Primary Tenants with
as of July, as of July, PSF as of 15,000 SF or greater
Property Name 1998 UCF 1998 July, as of July, 1998
1998(6)
=======================================================================================================================
<S> <C> <C> <C> <C> <C>
Fairlawn Town 91.2% $3,090,396 $3,481,781 $ 10.81 (1)
Center
Bishops Corner 100.0 2,766,516 2,817,788 22.76 Adams/Bozzuto's (2011) and Marshalls
(2006)
South Bay Center 100.0 2,367,435 2,376,885 19.56 (2)
Brookside/Brookway 94.8 2,035,408 2,235,660 14.83 Stop & Shop (2013), Staples (2003)
Shopping Center and Marshalls (2008)
Winchester Court 97.4 1,912,644 2,029,331 8.50 (3)
Shopping Center
Middlesex Mall 97.7 1,637,585 1,826,937 8.41 (4)
Westown Square 99.4 1,637,208 1,813,573 10.79 Finast (2012)
Burlington 100.0 1,509,724 1,758,979 9.24 Marshalls (2008), Michael's (2008)
Crossroads and Service Merchandise (2004)
Shrewsbury 100.0 1,306,974 1,304,816 17.58 Stop & Shop (2012)
Crossing Shopping
Center
Buckeye Plaza 96.7 1,043,009 1,083,658 9.56 Finast (2010)
Acton Plaza 99.2 965,800 1,118,700 8.28 Ames (2003) and Roche Bros. (2015)
Eastchester Plaza 92.3 380,790 382,579 17.73 Thriftway (2001)
Elkhart Plaza 100.0 304,605 279,513 2.87 Fleet Supply of Elkhart (2000) and
Martin's Supermarkets (2000)
Columbia-Detroit 100.0 220,771 240,916 4.86 Finast (2003)
Center at Patchogue 100.0 158,976 205,000 11.33 (5)
Totals 97.2% $21,337,843 $22,956,115 $ 11.24(6)
====== =========== =========== ==========
</TABLE>
================================================================================
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), Rite Aid (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>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Edens & Avant Pool I
- --------------------------------------------------------------------------------
Ten Largest Tenants Based on Annualized Base Rent(1)
<TABLE>
<CAPTION>
====================================================================================================================================
% of % of Total Annualized Base
Tenant or Tenant No. of Tenant Total Annualized Annualized 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 Company Adams Super Foods Store 1 59,016 2.8 1,386,876 6.0 23.50
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 Group Blockbuster Video 4 24,614 1.2 456,391 2.0 18.54
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 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 (greater than 57 976,107 46.5 7,305,796 31.3 7.48
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 July, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
Edens & Avant Pool I
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
====================================================================================================================================
Percent of Cumulative
Number of Annual Total Percent of
Leases Expiring Percent of Cumulative Annualized Base Rent Per SF Annualized Base Total Annualized
Year Expiration Expiring SF Total SF % of SF Base Rent 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% 317,610 $ 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% 1,250,258 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 July, 1998 Rent Roll.
(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
Stores Feet
Store Name 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 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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Edens & Avant Pool II
- --------------------------------------------------------------------------------
================================================================================
Loan Information
================================================================================
Original Cut-Off Date
Principal Balance: $73,017,000 $73,017,000
Origination Date: Estimated to be 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 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
================================================================================
Property Information
================================================================================
Single Asset/Portfolio: Portfolio
Property Type: Anchored Retail
Location: State Percent
----- -------
Virginia 24.1%
Mississippi 21.5
Georgia 19.2
South Carolina 11.5
Other States 23.7
Year Built/Renovated: Between 1973 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 July, 1998: 96%
1997 Net Operating Income: $13,126,427
Underwritable Net Cash
Flow: $12,772,219
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: $34 $34
LTV(3): 50.9% 50.9%
DSCR(4): 2.78x 2.78x
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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Edens & Avant Pool II
- --------------------------------------------------------------------------------
Property Summary Table(1)
<TABLE>
<CAPTION>
======================================================================================
Allocated
Loan Year Built/
Property Name Location Amount SF Renovated
======================================================================================
<S> <C> <C> <C> <C>
Promenade at Manassas Manassas, VA $12,946,000 303,643 1993
Marrietta Trade Center Marrietta, GA 11,187,000 305,555 1988
Fulton Crossing Corinth, MS 5,073,000 179,905 1992/95
Shopping Center
Cypress Point Virginia Beach, 4,663,000 118,002 1990
Shopping Center VA
Rio Pinar Plaza Orlando, FL 4,082,000 113,620 1984/86
Baldwin Square Fairhope, AL 4,027,000 139,144 1979/1997
Shopping Center
Mountain Island Charlotte, NC 3,524,000 73,230 1995
Market Place
Butler Square Mauldin, SC 3,244,000 80,285 1987
Shields Plaza Huntsville, AL 3,036,000 79,240 1996/97
Plantation Pointe Smyrna, GA 2,832,000 63,200 1988
Shopping Center
Kenilworth Commons Charlotte, NC 2,612,000 38,117 1988
Ellis Isle Shopping Jackson, MS 2,536,000 238,091 1973
Center
Landing Station Lake Wylie, SC 2,495,000 58,400 1997
Shopping Center
Old Canton Road Jackson, MS 1,838,000 57,276 1984/1992
Shopping Center
Reservoir Square Brandon, MS 1,711,000 57,238 1979/1987/92
Shopping Center
Magee Shopping Center Magee, MS 1,513,000 93,456 1979/1987
English Village Jackson, MS 1,505,000 33,472 1973/1989
Shopping Center
Gateway Plaza Conway, SC 1,465,000 28,150 1997
Midway Plaza Shopping Winnsboro, SC 1,178,000 25,860 1997
Center
Daniel Lake Shopping Jackson, MS 785,000 45,000 1978
Center
Village Square
Shopping Center Brookhaven, MS 765,000 45,000 1977
----------- ---------
Totals $73,017,000 2,175,884
=========== =========
</TABLE>
<TABLE>
<CAPTION>
==========================================================================================================================
Annualized Annualized
Occupancy Base Rent Base Rent Primary Tenants with
as of July, as of July, PSF as of 15,000 SF or greater
Property Name 1998 UCF 1998 July, 1998(2) as of July, 1998
==========================================================================================================================
<S> <C> <C> <C> <C> <C>
Promenade at Manassas 97.5% $2,264,551 $2,585,897 $ 8.73 WalMart (2012) and Home Depot (2015)
Marrietta Trade Center 100.0 1,956,808 2,529,669 8.28 Cub Foods (2008) and WalMart (2008)
(dark)
Fulton Crossing 100.0 887,331 1,023,989 5.69 K-Mart (2017) and Kroger (2012)
Shopping Center
Cypress Point 89.9 815,640 934,757 8.81 Farm Fresh Store (2015)
Shopping Center
Rio Pinar Plaza 92.8 714,054 900,036 8.54 Publix Supermarkets (2004)
Baldwin Square 67.3 704,503 761,430 8.13 Winn-Dixie (2016)
Shopping Center
Mountain Island 100.0 616,357 670,050 9.15 Harris Teeter (2015)
Market Place
Butler Square 100.0 567,447 674,844 8.41 Bi-Lo (2007)
Shields Plaza 100.0 531,027 599,439 7.56 Winn-Dixie (2016)
Plantation Pointe 96.3 495,446 554,244 9.10 Winn-Dixie (2008)
Shopping Center
Kenilworth Commons 100.0 456,872 489,798 12.85 Harris Teeter (2008)
Ellis Isle Shopping 100.0 443,601 664,462 2.79 Sack `N Save (2005) and WalMart
Center (2004) (dark)
Landing Station 95.9 436,482 470,700 8.41 Winn-Dixie (2017)
Shopping Center
Old Canton Road 100.0 321,480 348,967 6.09 Jitney Jungle (2009)
Shopping Center
Reservoir Square 100.0 299,377 400,794 7.00 Jitney Jungle (2007)
Shopping Center
Magee Shopping Center 91.4 264,674 398,981 4.67 Jitney Jungle (2007)
English Village 100.0 263,218 289,000 8.63 Jitney Jungle (2013)
Shopping Center
Gateway Plaza 100.0 256,285 313,875 11.15 (3)
Midway Plaza Shopping 100.0 206,048 258,240 9.99 (3)
Center
Daniel Lake Shopping 100.0 137,253 184,500 4.10 Jitney Jungle (2003)
Center
Village Square
Shopping Center 100.0 133,768 150,000 3.33 Sack `N Save (2002)
----- ----------- ----------- --------
Totals 96.1% $12,772,219 $15,203,673 $ 7.27
===== =========== =========== ========
</TABLE>
================================================================================
Notes: (1) Based on the July, 1998 Rent Roll.
(2) Annualized base rent per square foot excludes vacant square
footage.
(3) Anchored by Wal-Mart which is not part of collateral.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
Edens & Avant Pool II
- --------------------------------------------------------------------------------
Ten Largest Tenants Based on Annualized Base Rent(1)
<TABLE>
<CAPTION>
====================================================================================================================================
% of % of Total
Tenant or Tenant No. of Tenant Total Annualized Annualized Annualized Base
Parent Company Store Name Stores GLA (SF) GLA Base Rent Base Rent Rent Per SF
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Jitney-Jungle Stores of America, Jitney Jungle 9 355,438 16.3% $1,636,235 10.8% $4.60
Inc. 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 Teeter 2 76,627 3.5 695,212 4.6 9.07
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 (greater than 35 338,378 15.6 2,386,423 15.7 7.05
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 July, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
Edens & Avant Pool II
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
====================================================================================================================================
Cumulative
Number of Annual Percent of Percent of
Leases Expiring Percent of Cumulative Annualized Base Rent Per SF Annualized Base Annualized
Year Expiration Expiring SF Total SF % of SF Base Rent Rent Base Rent
====================================================================================================================================
<S> <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% 5,208,929 7.07 34.3 100.0%
--- --------- ----- ----------- ---------- -----
Total 297 2,175,884 100.0% $15,203,673 $ 7.27(2) 100.0%
=== ========= ===== =========== ========== =====
================================================================================
Notes: (1) Data based on the July, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage and rent.
</TABLE>
Largest Tenants (Over $11 MM in 1997 Sales) Based on
Available Comparable Store 1996 and 1997 Sales History
<TABLE>
<CAPTION>
=============================================================================================================
Store Name No. of Square Annual 1996 Sales Annual 1997 Sales
------------------------- ------------------------
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 47,924 163
-- ------- -------- ---- -------- ----
Grand Total 39 923,971 $271,089 $293 $267,911 $290
== ======= ======== ==== ======== ====
</TABLE>
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
Preliminary Collateral Term Sheet:
[GRAPHIC OMITTED] Grapevine Mills
- --------------------------------------------------------------------------------
================================================================================
Loan Information
================================================================================
Original Cut-Off Date
Principal Balance: $155,000,000 $155,000,000
Origination Date: August 13, 1998
Interest Rate: 6.47%
Amortization: Interest only until September 1, 2002; 360 months
thereafter (beginning October 1, 2002).
Hyperamortization: After 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, or
(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 $0.15 psf per annum beginning in year
6.
Collection Account: Hard Lock-Box
Cross-Collateralization/
Default: N/A
Mezzanine Loans: N/A
================================================================================
Property Information
================================================================================
Single Asset/Portfolio: Single Asset
Property Type: Regional "Mills" Mall
Location: Dallas/Ft. Worth, Texas
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
Cinemas (109,393 s.f.).
Property
Management: The Mills Corporation
Percent of Mall Store Space
Leased as of June 30, 1998: 91%
Comparable Store Average
Occupancy Cost as of June
30, 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
Appraisal Date: July 18, 1998
Cut-Off Date EMD(2)
Loan/SF(3): $117 $108
LTV(3): 61.7% 56.9%
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 Total % of Total Annualized
Tenant or Tenant Tenant GLA Annualized Annualized Base Rent per
Parent Company Store Name GLA Base Rent Base Rent SF
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Host Marriott Services Host Marriott-Food Court Master Lease 33,903 2.7% $1,158,890 5.8% $34.18
Subleased to:
-------------
Chili's Too
Dick Clark's American
Bandstand Grill
Cold Stone Creamery
Starbucks Coffee
Corner Bakery
Sega Inc. Sega Gameworks 32,223 2.6 594,244 3.0 18.44
Sports Authority, Inc. Sports Authority 48,723 3.9 582,000 2.9 11.95
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 Hills Off Rodeo Drive, Beverly Hills 24,203 1.9 508,473 2.5 21.01
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) 305,759 24.6% $5,475,451 27.2% $17.91
Remaining Mall Stores 571,398 46.0 10,984,740 54.6 19.22
Vacant Space 48,910 3.9 -- 0.0 0.0
--------- ----- ----------- ----- ------
Total (excluding anchors) 926,067 74.6% $16,460,191 81.8% $18.77(2)
========= ===== =========== ===== ======
Burlington Coat Factory, Inc. Burlington Coat Factory 100,102 8.1 500,510 2.5 5.00
AMC Inc. American Multi-Cinema 109,393 8.8 2,625,432 13.1 24.00
J.C. Penney, Co., Inc. JCPenney 106,207 8.0 528,410 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 30, 1998 rent roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Grapevine Mills
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating of Operating
Parent 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 Factory Burlington Coat Factory, - / - 100,102 Anchor-owned 1/31/13 10/29/00 N/A
Inc.
JCPenney J.C. Penney Co., Inc. A/A2 106,207 Anchor-owned 10/31/02 N/A N/A
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
Mall Store Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
====================================================================================================================================
Percent of Cumulative Percent
Number of Annualized Total of
Leases Expiring Percent of Cumulative Annualized Base Rent Per Annualized Total Annualized
Year Expiration Expiring SF Total SF % of SF Base Rent 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 30, 1998 Rent Roll.
(2) Total annual rent per square foot excludes vacant square feet.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 $52,047 $164.86
Major Store
- -----------
American Wilderness 32,285 $399 $70.88(2)
Bed Bath & Beyond 40,340 7,059 175.00
Books-A-Million 23,967 3,448 143.85
Group USA 23,257 2,517 108.21
Marshalls 29,397 4,410 150.00
Off Rodeo Drive, Beverly Hills 24,203 3,002 124.02
Old Navy 23,329 8,541 366.10
Rainforest Cafe 22,602 14,919 660.09
Saks Fifth Avenue 34,982 7,784 222.52
Sega Gameworks 32,223 5,122 158.95
Sports Authority 48,763 6,062 124.31
Virgin Megastores 27,490 6,954 252.95
Western Warehouse 20,130 3,083 153.18
------- ------- -------
Total Major Store Sales 382,968 $73,298 $205.72(2)
Mall Stores
- -----------
Mall Stores 493,289 $158,659 $321.64
Vacant 49,810 N/A N/A
------- ------- -------
Total Mall Store 543,099 $158,659 $321.64(3)
Total Sales - Anchors, Majors and Mall 1,241,769 $284,004 $243.72(2)(3)
Stores ========= ======== =======
================================================================================
Notes: (1) Projected sales provided by the Mills Corporation. Square footage
is based on the June 30, 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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 September 1, 1999; 360 months
thereafter (beginning October 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 maximium 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 and Kitchens, Etc (60,768
s.f.).
Property
Management: WellsPark Group
Percent of Mall Store Space
Leased as of July 15, 1998: 89%
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: $11,059,670
Appraised Value: $141,000,000
Appraised By: Cushman & Wakefield
Appraisal Date: February 16, 1998
Cut-Off Date EMD(1)
Loan/SF(2): $288 $253
LTV(2): 67.4 % 59.1%
DSCR(2) (3): 1.65x 1.88x
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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 Base
Tenant or Tenant Tenant of Total Annualiz Annualized 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% $443,481 4.1% $44.18
B. Dalton Software
The Limited Inc Bath & Body Works 14,270 4.3 428,100 4.0 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 2.0 30.75
Eastern Mountain Sports Eastern Mountain Sports 6,945 2.1 208,350 1.9 30.00
Northern Experience (Reflection) Northern Experience
(Reflection) 8,000 2.4 200,000 1.8 25.00
------- ----- ----------- ----- ------
Total/Weighted Average (10 Largest) 99,542 30.2% $3,042,861 28.2% $30.57
Remaining Mall Stores 195,094 59.1 7,759,919 71.8 39.78
Vacant Space 35,277 10.7 0 0.0 0.00
------- ----- ----------- ----- ------
Total (excluding anchors) 329,913 100.0% $10,802,780 100.0% $36.66(2)
======= ===== =========== ===== ======
Filene's Filene's 165,000
JC Penney Co., Inc. JCPenney 101,388
Sears Roebuck & Co. Sears 136,464
Best Buy Co., Inc./ Kitchens Etc.. Best Buy/Kitchens Etc. 60,768
-------
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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Mall of New Hampshire
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating of Operating
Parent Company(1) Anchor-Owned/ Lease Covenant REA
Parent Company (S&P/Moody's) GLA Collateral Expiration Expiration Termination
Anchors
============================================================================================================================
<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., Inc. A/A2 101,388 Anchor-owned N/A 4/30/13 N/A
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>
- ------------------------------------------------------------------------------------------------------------------------------------
Percent of Cumulative Percent
Number of Annualized Total of
Year Expiration Leases Expiring Percent of Cumulative Annualized Base Rent Per Annualized Total Annualized
Expiring SF Total SF % of SF Base Rent SF Base Rent Base Rent
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 22 35,277 10.7% 10.7% $ - $ - 0.0% 0.0%
1999 10 22,816 6.9 17.6% 1,035,301 45.38 9.6 9.6%
2000 4 8,564 2.6 20.2% 386,010 45.07 3.6 13.2%
2001 3 3,465 1.1 21.3% 263,817 76.14 2.4 15.6%
2202 2 5,124 1.6 22.8% 209,388 40.86 1.9 17.5%
2003 5 18,611 5.6 28.4% 760,803 40.88 7.0 24.6%
2004 4 8,555 2.6 31.0% 317,705 37.14 2.9 27.5%
2005 7 17,191 5.2 36.3% 703,512 40.92 6.5 34.0%
2006 4 6,836 2.1 38.3% 413,500 60.49 3.8 37.9%
2007 23 60,628 18.4 56.7% 1,946,695 32.11 18.0 55.9%
2008 41 113,798 34.5 91.2% 3,625,789 31.86 33.6 89.4%
Thereafter 8 29,048 8.8 100.0% 1,140,260 39.25 10.6 100.0%
--- ------- ----- ----------- ------ -----
Total 133 329,913 100.0% $10,802,780 $36.66(2) 100.0%
=== ======= ===== =========== ====== =====
- ------------------------------------------------------------------------------------------------------------------------------------
Notes: (1) Data based on the July 15, 1998 Rent Roll.
(2) Total annual base rent per square foot excludes vacant square
footage.
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Mall of New Hampshire
- --------------------------------------------------------------------------------
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 175,548 5,695 N/A 29,198 N/A
Vacant 35,277 N/A N/A N/A N/A
------- ------- ---- -------- ----
Total Mall Store 329,913 $48,321 N/A $73,380 N/A
Total Sales - Anchor and Mall Stores 793,533 $91,321 $136,380
======= ======= ========
</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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 August 1, 2001; 360 months
thereafter (beginning September 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, 2028
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 Management may be terminated (i) for cause or
Property Manager: (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
================================================================================
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): 17.2%
LTM April, 1998 Net
Operating Income: NAV
Underwritable Net Cash Flow: $12,755,373
Appraised Value: $160,000,000 (Collateral only)
Appraised By: Cushman & Wakefield
Appraisal Date: July 13, 1998
Cut-Off Date EMD(2)
Loan/SF: $225 $205
LTV: 62.5% 57.0%
DSCR(3): 1.95x 2.14x
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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 Base
Tenant or Tenant Tenant Total Annualized Annualized Rent per SF
Parent Company Store Name GLA GLA Base Rent Base Rent
====================================================================================================================================
<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 1.4 224,770 1.9 35.00
Golden Pavillion Theaters Golden Pavilion Theaters 8,321 1.9 208,025 1.7 25.00
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 Largest) 119,364 26.9% $4,259,700 35.3% $35.69
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 anchors) 443,723 100.0% $12,074,447 100.0% $27.40(3)
======= ===== =========== ===== ======
The May Department Stores Company Robinsons-May 220,000
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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Westside Pavilion
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating of Anchor-Owned/ Operating
Parent Company Parent Company Collateral Lease Covenant REA
Anchors (S&P/Moody's)(1) GLA 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 Department Stores A+/A2 220,000 Anchor-owned N/A 4/30/05 1/01/50(2)
Company
</TABLE>
================================================================================
Notes: (1) Ratings as of August 1, 1998
(2) Based on the borrower identified opening date of store.
Mall Store Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Percent of Cumulative Percent
Number of Annualized Total of
Year Expiration Leases Expiring Percent of Cumulative Annualized Base Rent Per Annualized Total Annualized
Expiring SF Total SF % of SF Base Rent 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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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
------- ------------ ------ ------------ ------
<S> <C> <C> <C> <C> <C>
Anchor Stores
- -------------
Nordstrom 138,128 $76,857 $556 $73,857 $535
Pavilions 43,435 14,865 342 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 Stores 663,723 $229,866 $231,458
======= ======== ========
</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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
NorthTown Mall
- --------------------------------------------------------------------------------
================================================================================
Loan Information
================================================================================
Original Cut-Off Date
Principal Balance: $84,500,000 $84,426,244
Origination Date: August 6, 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/ N/A
Default:
Mezzanine Loans: N/A
================================================================================
Property Information
================================================================================
Single Asset/Portfolio: Single Asset
Property Type: Regional Mall
Location: Spokane, Washington
Year Built/Renovated: 1955/1961/1983-1984/1993
The Collateral: Two-level, five-anchor regional mall with a total
GLA of 947,341 s.f., anchor space of 541,209 s.f.
and mall store space of 406,132 s.f. Collateral
consists of mall store space plus the JCPenney,
Emporium, and Bon Marche space for a total of
704,949 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: 78.1%
Comparable Store Average
Occupancy Cost as of July,
1998: 12.5%
LTM June, 1998 Net
Operating Income: $10,530,360
Underwritable Net Cash Flow: $10,029,449
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): 58.6% 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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED]
Preliminary Collateral Term Sheet:
NorthTown Mall
- --------------------------------------------------------------------------------
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>
The Limited, Bath & Body Works 43,758 6.2% $801,411 8.9% $18.31
Inc. Limited Express
Limited
Victoria's Secret
Venator Group, FootLocker 18,274 2.6 436,172 4.8 23.87
Inc. Kids Footlocker
Afterthoughts Boutique
Lady FootLocker
Bumpers Fun Bumpers Fun Center 30,000 4.3 275,000 3.0 9.17
Center
The Gap, Inc. The Gap 10,695 1.5 267,375 3.0 25.00
Gap Kids
Maurices/Just Maurices/Just Petites 8,881 1.3 159,858 1.8 18.00
Petites
B. Dalton Book B. Dalton 4,465 0.6 133,950 1.5 30.00
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, Inc. Eddie Bauer 6,208 0.9 117,952 1.3 19.00
Jay Jacobs Jay Jacobs 4,996 0.7 109,912 1.2 22.00
------- ----- ---------- ----- ------
Total/Weighted 138,584 19.7% $2,539,540 28.0% $18.32
Average (10 Largest)
Remaining Mall 178,679 25.3 4,924,123 54.4 27.56
Stores
Vacant Space 88,869 12.6 0 0.0 0.00
------- ----- ---------- ----- ------
Total 406,132 57.6% $7,463,663 82.4% $23.53(2)
(excluding anchors)
Federated Bon Marche 89,207 12.7 400,000 4.4 4.48
Department
Stores, Inc.
Emporium Emporium 68,742 9.8 516,940 5.7 7.52
J.C. Penney JCPenney 140,868 20.0 673,952 7.4 4.78
------- ----- ---------- ----- ------
Co., Inc.
Total 704,949 100.0% $9,054,555 100.0% $14.70(2)
======= ===== ========== ===== ======
(excluding non-owned anchors)
Sears Roebuck Sears 160,480
& Co.
Dayton Hudson Mervyn's 81,912
Corp. -------
Total (including leased anchors) 947,341
=======
</TABLE>
================================================================================
Note: (1) Based on the July 31, 1998 Rent Roll
(2) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
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[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
NorthTown Mall
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Credit Rating
of Parent Company(1) Operating
(S&P/Moody's) Anchor-Owned/ Lease Covenant REA
Anchors Parent Company GLA Collateral Expiration Expiration Termination
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
Bon Marche Federated Department BBB-/ - 89,207 Collateral 1/31/14 12/31/06 N/A
Stores, Inc.
JCPenney J.C. Penney Co., Inc. A/A2 140,868 Collateral 8/31/01 12/31/06 N/A
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.
Mall Store Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
====================================================================================================================================
Percent of Cumulative Percent
Number of Annualized Total of
Year Expiration Leases Expiring Percent of Cumulative Annualized Base Rent Per Annualized Total Annualized
Expiring SF Total SF % of SF Base Rent SF Base Rent Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 45 88,869 12.6% 12.6% $ - $ - 0.0% 0.0%
MTM 3 4,828 0.7 13.3% 115,662 23.96 1.3 1.3%
1998 3 3,135 0.4 13.7% 73,284 23.38 0.8 2.1%
1999 8 10,072 1.4 15.2% 259,200 25.73 2.9 4.9%
2000 8 12,883 1.8 17.0% 323,058 25.08 3.6 8.5%
2001 24 33,341 4.7 21.7% 987,515 29.62 10.9 19.4%
2002 31 111,164 15.8 37.5% 2,211,945 19.90 24.3 43.9%
2003 13 19,546 2.8 40.3% 459,803 23.52 5.1 48.9%
2004 14 38,134 5.4 45.7% 840,280 22.03 9.3 58.2%
2005 11 17,214 2.4 48.1% 514,237 29.87 5.7 63.9%
2006 10 21,366 3.0 51.1% 575,366 26.93 6.4 70.2%
2007 12 34,880 4.9 56.1% 829,487 23.78 9.2 79.4%
2008 3 10,109 1.4 57.5% 229,500 22.70 2.5 81.7%
Thereafter 4 299,408 42.5 100.0% 1,663,217 5.46 18.1 100.0%
--- ------- ----- ---------- -------- -----
Total 189 704,949 100.0% $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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 $247
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 $53,077 $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 88,869 N/A N/A N/A N/A
------- -------- ---- -------- ----
Total Mall Stores 406,132 $86,405 N/A $87,590 N/A
Total Sales - Anchor and Mall Stores 704,949 $139,482 $139,475
======= ======== ========
</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>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
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 Asset/Portfolio: Single Asset
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: USAir, Inc.; Charles E. Smith Mgmt;
Booz Allen Hamilton Inc.; ADI Technology and Arthur
Anderson & Co.
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: $9,790,880
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): 1.92x 2.23x
Notes: (1) Effective Maturity Date
(2) Based on Underwritable Net Cash Flow and Actual Debt Service.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Crystal Park IV
- --------------------------------------------------------------------------------
Five Largest Tenants Based on Annualized Base Rents By Parent Company(1)
<TABLE>
<CAPTION>
==========================================================================================================================
% of Total Annualized
Tenant or Tenant Tenant % of Total Annualized Annualized Base
Parent Company GLA GLA Base Rent Base Rent Rent per SF
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
US Airways Group, Inc. 327,016 70.12% $8,950,238 70.63% $27.37
Charles E. Smith 115,475 24.76 3,011,635 23.77 26.08
ADI Technology, Inc. 9,198 1.97 269,248 2.12 29.27
Booz-Allen & Hamilton, Inc. 3,553 0.76 99,484 0.79 28.00
Via Cucina Restaurant 3,000 0.64 97,500 0.77 32.50
------- ----- ----------- ----- ------
Total Major Tenants 458,242 98.26% $12,428,106 98.08% $27.12
Other Tenants 8,127 1.74 243,838 1.92 30.00 (2)
Vacant Space - - - - -
------- ----- ----------- ----- ------
Total Net Rentable Area 466,369 100.0% $12,671,944 100.0% $27.17 (2)
======= ===== =========== ===== ======
</TABLE>
================================================================================
Notes: (1) Based on the August 1, 1998 Rent Roll and does not include
annualized CPI escalations of $941,569.
(2) 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 $28.97, not $30.00, resulting in a Total Annualized Base
Rent per SF of $27.15, not $27.17.
Historical Occupancy
================================================================================
Occupancy Period/Date: Percent Leased
================================================================================
July 7, 1998 100%
December 31, 1997 100%
December 31, 1996 100%
December 31, 1995 100%
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Crystal Park IV
- --------------------------------------------------------------------------------
Lease Expiration Schedule(1)
<TABLE>
<CAPTION>
====================================================================================================================================
Percent Cumulative
Number of Percent Cumulative Annualized of Total Percent of Total
Year of Leases Expiring of Percent Annualized Base Rent Annualized Base Annualized
Expiration Expiring SF Total SF of Total SF Base Rent Per SF Rent Base Rent
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Vacant 0 - 0.0% 0.0% $ - $ - 0.00% 0.0%
1998(2) 2 - 0.0 0.0% 50 - 0.0 0.0%
1999 8 23,568 5.1 5.1% 486,975 20.66 3.8 3.8%
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 5.0%
2002 6 40,167 8.7 14.9% 1,145,734 28.21 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 36.2%
2005 0 - 0.0 36.6% - - 0.0 36.2%
2006 0 - 0.0 36.6% - - 0.0 36.2%
2007 0 - 0.0 36.6% - - 0.0 36.2%
2008 1 295,724 63.4 100.0% 8,080,162 27.32 63.8 100.0%
Thereafter 0 - 0.0 100.0% - - 0.0 100.0%
-- ------- ----- ------ ----------- ------ ------ ------
Total 21 466,369 100.0% $12,671,944 $27.17(3) 100.0%
</TABLE>
================================================================================
Notes: (1) Based on the August 1, 1998 Rent Roll and does not include
annualized CPI escalations of $941,569.
(2) $50 Base Rent reflects antenna on roof of building.
(3) Total annual base rent per square foot excludes vacant square
footage.
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
9
Overview of the Certificates
<TABLE>
<CAPTION>
=================================================================================================================================
Expected Final Anticipated
Amount Ratings Subordination Average Life Principal Distribution Pass-Through
Class ($MM) (Fitch/S&P) % (yrs) Window Date Rate
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Public Certificates:
- -------------------
</TABLE>
Private Certificates:
- --------------------
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
I. Issue Characteristics
- -------------------------
Issue Type:
Collateral:
Securities Issued:
Depositor:
Lead Manager:
Master Servicer:
Special Servicer:
Trustee/Fiscal Agent:
Pricing Date:
Expected Closing Date:
Distribution Dates:
Minimum Denominations:
Settlement Terms:
Legal/Regulatory Status:
Risk Factors:
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
II. Structure Characteristics
- ------------------------------
Anticipated Pass-Through Rates:
Interest Distributions:
Principal Distributions:
Prepayment Premium Allocation:
Credit Enhancement:
Advancing:
Realized Losses and Expense Losses:
Prepayment Interest Shortfalls:
Appraisal Reductions:
Directing Class:
Special Servicer:
Optional Termination:
Reports to Certificateholders:
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet
- --------------------------------------------------------------------------------
$706.5 MM (Approximate)
Morgan Stanley Mortgage Capital I Inc.
Commercial Mortgage Pass-Through Certificates
Series 1998-XL2
<PAGE>
- --------------------------------------------------------------------------------
[GRAPHIC OMITTED] Preliminary Collateral Term Sheet:
Crystal Park IV
- --------------------------------------------------------------------------------
