================================================================================
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 (Date of earliest event reported): May 6, 1998
FIRST UNION COMMERCIAL MORTGAGE SECURITIES, INC.
------------------------------------------------
(Exact name of registrant as specified in its governing instruments)
Delaware 333-7854 56-1643598
- ---------------------------- ------------------------- ----------------
(State or other jurisdiction (Commission File Numbers) (I.R.S. Employer
of Incorporation) Identification No.)
One First Union Center
Charlotte, North Carolina 28228-0600
------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (704) 374-6828
Exhibit Index appears on
page 4
================================================================================
<PAGE>
Item 5. Other Events
On or about May 28, 1998, the Registrant will cause the issuance and
sale of approximately $3,474,000,000 initial principal amount of Mortgage
Pass-Through Certificates, Series 1998-C2, in several classes (collectively, the
"Certificates") pursuant to a Pooling and Servicing Agreement to be dated as of
May 1, 1998, among the Registrant, First Union National Bank as master servicer,
Criimi Mae Services Limited Partnership as special servicer and Norwest Bank
Minnesota, National Association as trustee (the "Pooling and Servicing
Agreement").
In connection with the sale of certain classes of the Certificates
(collectively, the "Underwritten Certificates") pursuant to a Prospectus
Supplement relating to certain classes of the Certificates, the Registrant has
been advised by Lehman Brothers Inc., BancAmerica Robertson Stephens and First
Union Capital Markets (the "Underwriters") that the Underwriters have, following
the effective date of Registration Statement No. 333-7854, furnished to one or
more prospective investors on May 6, 1998 a Term Sheet setting forth certain
information about certain of the mortgage loans expected to be deposited in
trust under the Pooling and Servicing Agreement and the size and structure of
the potential offering (the "Term Sheet"). This Term Sheet is being filed as an
exhibit to this report.
The Term Sheet has been provided by the Underwriters. The
information in the Term Sheet is preliminary and will be superseded by the
Prospectus Supplement relating to the Underwritten Certificates and by any other
information subsequently filed with the Securities and Exchange Commission.
<PAGE>
Item 7. Financial Statements and Exhibits
(a) Financial Statements.
Not applicable.
(b) Pro Forma Financial Information
Not applicable.
(c) Exhibits
Item 601(a) of Regulation
Exhibit Number S-K Exhibit No. Description
-------------- --------------- -----------
1 99 Term Sheet
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST UNION COMMERCIAL
MORTGAGE SECURITIES, INC.
By: /s/ Brian E. Simpson
-----------------------------
Name: Brian E. Simpson
Title: President
Dated: May 8, 1998
<PAGE>
EXHIBIT INDEX
Item 601(a) of
Regulation
Exhibit Number S-K Exhibit No. Description
- -------------- --------------- -----------
1 99 Term Sheet
[FIRST UNION LOGO OMITTED]
[LEHMAN BROTHERS LOGO OMITTED]
[BANK AMERICA LOGO OMITTED]
FU-LB-BA 1998-C2
Preliminary Timeline of Events
================================================================================
Date Event
================================================================================
Week of May 4th Structural & Collateral Term Sheets available
- --------------------------------------------------------------------------------
Week of May 11th Red Herrings available
- --------------------------------------------------------------------------------
Week of May 11th Rating Agency and Underwriter Investor Calls
================================================================================
Early the week of May 18th Pricing
- --------------------------------------------------------------------------------
Thursday, May 28th Settlement Date
================================================================================
Rating Agency Call
E.S.T.
Investor Call Replay until June 5th, 1998, 5PM EST
============================ ====================================
Dial in Number Passcode Dial in Number Passcode
============================ ====================================
Domestic
---------------------------- ------------------------------------
International
============================ ====================================
Rating Agency Call
E.S.T.
Investor Call Replay until June 5th, 1998, 5PM EST
============================ ====================================
Dial in Number Passcode Dial in Number Passcode
============================ ====================================
Domestic
---------------------------- ------------------------------------
International
============================ ====================================
Underwriter Investor Call
E.S.T.
Investor Call Replay until June 5th, 1998, 5PM EST
============================ ====================================
Dial in Number Passcode Dial in Number Passcode
============================ ====================================
Domestic
---------------------------- ------------------------------------
International
============================ ====================================
Page 1/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
Structural and Collateral Term Sheet
First Union - Lehman Brothers - Bank of America
Commercial Mortgage Pass-Through Certificates
Series 1998-C2
$3.1 Billion
(Approximate)
Offered Certificates
[GRAPHIC OMITTED]
% of Mortgage Pool by Cut-off Date Balance
LEHMAN BROTHERS FIRST UNION CAPITAL MARKETS
BANCAMERICA ROBERTSON STEPHENS
Page 2/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
First Union - Lehman Brothers - Bank of America
Commercial Mortgage Pass-Through Certificates, Series 1998-C2
(FULBBA 1998-C2)
================================================================================
%
-------------------------------------------------------
Class A-1
-------------------------------------
Class A-2 Class IO
-------------------------------------
Class B
-------------------------------------
Class C
-------------------------------------
Class D
-------------------------------------
Class E
-------------------------------------
Class F
-------------------------------------
Class G
-------------------------------------
Class H
-------------------------------------
Class J
-------------------------------------
Class K
-------------------------------------
Class L
-------------------------------------
Class M
-------------------------------------
Class N
-------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
=================================================================================================================
Original Avg Principal Legal
Class Face Rating(1) Description Coupon Life(2) Window(2) Status
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
A-1 AAA Public
- -----------------------------------------------------------------------------------------------------------------
A-2 AAA Public
- -----------------------------------------------------------------------------------------------------------------
IO (3) AAA WAC IO (4) Public
- -----------------------------------------------------------------------------------------------------------------
B AA Public
- -----------------------------------------------------------------------------------------------------------------
C A Public
- -----------------------------------------------------------------------------------------------------------------
D BBB Public
- -----------------------------------------------------------------------------------------------------------------
E BBB- Public
- -----------------------------------------------------------------------------------------------------------------
F Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
G Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
H Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
J Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
K Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
L Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
M Not Offered Private, 144A
- -----------------------------------------------------------------------------------------------------------------
N Not Offered Private, 144A
=================================================================================================================
Total
=================================================================================================================
</TABLE>
(2) Anticipated rating.
(2) Assuming among other things, 0% CPR, no losses and that ARD loans pay off
on their Anticipated Repayment Date. Expressed in years.
(3) Represents notional amount on Class IO.
(4) Represents average life of related principal notional amounts on Class IO.
Page 3/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Certain Offering Points
o Newly Originated Collateral. The collateral consists of 676 Mortgage Loans
with a principal balance (as of May 1, 1998) of approximately $3.474
billion. The Mortgage Loans were originated by an affiliate of Lehman
Brothers, or its approved conduit originators (50%, by balance), First
Union, or its approved conduit originators (40%, by balance), or Bank of
America (10%, by balance).
o Call Protection. 100% of the Mortgage Loans contain call protection
provisions. 99.1% of the Mortgage Loans provide for initial lockout period
followed by i) defeasance; or ii) yield maintenance; or/and iii)
percentage penalty. The weighted average lockout and defeasance period for
all loans is 9.9 years. The Mortgage Loans are generally prepayable
without penalty between zero to six months from Mortgage Loan maturity or
Anticipated Repayment Date ("ARD").
================================================================================
Type of Call Protection # of Loans % of Balance
- --------------------------------------------------------------------------------
Lockout and/or Defeasance 494 72.5
- --------------------------------------------------------------------------------
Lockout and/or Yield Maintenance* 173 25.4
- --------------------------------------------------------------------------------
Lockout and/or Declining Penalties 9 2.1
================================================================================
* 24 loans(5.9%) also have declining penalties after yield maintenance.
o Weighted average lock-out and treasury defeasance of 9.9 years.
o No loan delinquent 30 days or more as of the Cut-off Date.
o $5.1 million average loan balance as of the Cut-off Date.
o 1.41x Weighted Average Debt Service Coverage Ratio ("DSCR") as of the
Cut-off Date.
o 71.6% Weighted Average Loan to Value ("LTV") as of the Cut-off Date.
o Property Type Diversification. 31.1% Multifamily, 27.2% Retail (72.5%
Anchored and 27.5% Unanchored), 20.4% Office, 7.3% Credit Tenant Lease
("CTL"), 6.7% Hotel, 3.8% Industrial/Warehouse, 1.9% Health Care and 1.7%
Other.
o Geographic Diversification. California (11.8%), Texas (10.3%), New York
(9.1%), Illinois (7.8%), Florida (7.1%), Georgia (6.2%), Maryland (5.9%);
all other states less than 5% each.
o Monthly Investor Reporting. Updated collateral summary information will be
part of the monthly remittance report in addition to detailed P&I payment
and delinquency information. Quarterly NOI and Occupancy information to
the extent delivered by borrowers, will be available to
Certificateholders.
o Cash Flows will be Modeled on BLOOMBERG.
(Except as otherwise indicated, percentages (%) represent the principal
amount of loan or loans compared to aggregate pool balance, as of the
Cut-off Date (the "Initial Pool Balance."))
Page 4/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Priority and Timing of Cash Flows *
o Assuming 0% CPR, no losses. Otherwise based on Table Assumptions.
Rating Agencies: To be determined.
Trustee: Norwest Bank Minnesota, National Association.
Master Servicer: First Union National Bank.
Special Servicer: CRIIMI MAE Services Limited Partnership.
Closing Date: On or about May 28, 1998.
Cut-off Date: May 1, 1998.
ERISA: Classes A-1, A-2 and IO are expected to be eligible
for Lehman's individual prohibited transaction
exemption with respect to ERISA.
SMMEA: Classes A-1, A-2, B and IO are "mortgage related
securities" for purposes of SMMEA.
Payment: Pays on 18th of each month or, if such date is not
a business day, then the following business day,
commencing June 18, 1998.
The Class IO: The Class IO is comprised of fourteen components,
one relating to each class of Sequential Pay
Certificates.
Optional Call: 1% Clean-up Call.
Page 5/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
MORTGAGE LOANS: The collateral consists of an approximately $3.474
billion pool of 676 fixed rate mortgage loans
secured by first liens on commercial and
multifamily properties in 43 different states and
the District of Columbia. The mortgage loans were
originated by an affiliate of Lehman Brothers, or
its approved conduit originators, First Union, or
its approved conduit originators, or Bank of
America. As of the Cut-off Date, the Mortgage Loans
have a weighted average coupon ("WAC") of 7.257%
and a weighted average maturity ("WAM") of 152
months (based upon the anticipated repayment date
of ARD loans). See the Collateral Summary tables at
the end of this memo for more Mortgage Loan
details.
CREDIT ENHANCEMENT: Credit enhancement for each class of Certificates
will be provided by the classes of Certificates
which are subordinate in priority with respect to
payments of interest and principal.
DISTRIBUTIONS: Principal and interest payments will generally be
made to Certificateholders in the following order:
1) Interest to the Senior Classes: Class A-1, Class
A-2 and Class IO, pro rata,
2) Principal to Class A-1 until such Class is
retired,*
3) Principal to Class A-2 until such Class is
retired,*
4) Interest to Class B, then Principal to Class B
until such Class is retired,
5) Interest to Class C, then Principal to Class C
until such Class is retired,
6) Interest to Class D, then Principal to Class D
until such Class is retired,
7) Interest to Class E, then Principal to Class E
until such Class is retired,
8) Interest and Principal to the Private Classes,
sequentially.
* Pro rata if Classes B through N are retired.
REALIZED LOSSES: Realized Losses from any Mortgage Loan will be
allocated in reverse sequential order (i.e. Classes
N, M, L, K, J, H, G, F, E, D, C and B, in that
order, and then pro-rata to Classes A-1 and A-2).
APPRAISAL REDUCTIONS: With respect to certain specially serviced Mortgage
Loans as to which an appraisal is required
(including any Mortgage Loan that becomes 60 days
delinquent), an Appraisal Reduction Amount may be
created, in the amount, if any, by which the Stated
Principal Balance of such Mortgage Loan, together
with unadvanced interest, unreimbursed P&I advances
and certain other items, exceeds 90% of the
appraised value of the related Mortgaged Property.
The Appraisal Reduction Amount will reduce
proportionately the amount of any P&I Advance for
such loan, which reduction may result in a
shortfall of interest to the most subordinate class
of Principal Balance Certificates outstanding. The
Appraisal Reduction Amount will be reduced to zero
as of the date the related Mortgage Loan has been
brought current for three months, paid in full,
repurchased or otherwise liquidated, and any
shortfalls borne by the subordinate classes may be
made up.
MINIMUM DENOMINATIONS:
Minimum Increments
Classes Denomination Thereafter Delivery
- ------------------------------------------------------------------------------
A-1, A-2, B, C, D, and E $10,000 $1 DTC
- ------------------------------------------------------------------------------
IO $100,000 $1 DTC
Page 6/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUMS
<TABLE>
<CAPTION>
====================================================================================================================================
Prepayment 5/98 5/99 5/00 5/01 5/02 5/03 5/04 5/05 5/06 5/07 5/08
Premium
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out 99.1% 98.5% 90.2% 68.6% 23.1% 15.3% 12.5% 10.0% 3.7% 3.5% 1.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Defeasance 0.2% 0.2% 6.0% 24.5% 57.3% 62.6% 64.0% 65.9% 69.9% 68.9% 70.6%
- ------------------------------------------------------------------------------------------------------------------------------------
YM 0.3% 0.9% 3.4% 6.2% 18.6% 18.0% 19.4% 20.0% 21.3% 20.5% 18.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Sub Total 99.6% 99.6% 99.6% 99.3% 99.0% 95.9% 95.90% 95.9% 94.9% 92.9% 90.6%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
5% 0.2% 1.9% 0.1%
- ------------------------------------------------------------------------------------------------------------------------------------
4% 0.3% 0.3% 0.4% 1.8% 0.1% 0.3%
- ------------------------------------------------------------------------------------------------------------------------------------
3% 0.4% 0.4% 0.4% 0.8% 1.0% 1.9% 0.4% 0.8%
- ------------------------------------------------------------------------------------------------------------------------------------
2% 0.4% 0.5% 0.5% 0.2% 1.1% 2.5% 0.6%
- ------------------------------------------------------------------------------------------------------------------------------------
1% 0.4% 0.9% 1.1% 1.4% 1.9% 6.5%
- ------------------------------------------------------------------------------------------------------------------------------------
Open 0.1% 0.1% 0.8% 4.9% 1.5%
====================================================================================================================================
Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
====================================================================================================================================
</TABLE>
* % represents % of then outstanding balance as of the date shown utilizing
cut-off date balances.
OPEN PREPAYMENT PERIOD AT END OF LOAN:
==================================================
Open Period # % of Balance
at End Loans
==================================================
None 101 16.5
- --------------------------------------------------
2 to 3 months 364 49.8
- --------------------------------------------------
4 to 6 months 167 26.7
- --------------------------------------------------
12 months 16 3.9
- --------------------------------------------------
12+ months 28 3.0
==================================================
* Weighted average open period at end of loan is 5 months.
ALLOCATION OF PREPAYMENT PREMIUMS:
All Prepayment Premiums are distributed to Certificateholders on the
Distribution Date following the one-month collection period in which the
prepayment occurred. All Prepayment Premiums will be allocated to the Classes A
through G, in each case, up to the product of (i) the Prepayment Premium, (ii)
the "Discount Rate Fraction" and (iii) the percentage of the total principal
distribution to Certificateholders to which such Class is entitled. Any excess
amounts will be distributed to Class IO. The Discount Rate Fraction for Classes
A through G is defined as:
(Coupon on Class - Reinvestment Yield) / (Coupon on Mortgage Loan - Reinvestment
Yield)
Page 7/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
PREPAYMENT PREMIUM ALLOCATION EXAMPLE:
The Yield Maintenance prepayment premium will generally be equal to the present
value of the reduction in interest payments as a result of the prepayment
through the maturity of the Mortgage Loan, discounted at the yield of a Treasury
security of similar maturity in most cases (converted from semi-annual to
monthly pay). The following example reflects that method.
General Yield Maintenance Example:
Assuming the structure presented on pages 3 and 4 of this memo and the following
assumptions:
Mortgage Loan Characteristics of loan being prepaid*:
Balance $10,000,000
Coupon 8.0%
Maturity 10 yrs (April 1, 2008)
Treasury Rate (monthly) 5.75%
Certificate Characteristics
Class A-1 Coupon 7.00%
Discount Rate Fraction Example:
================================================================================
Class A-1 Class IO
Certificates Certificates
================================================================================
Discount Rate Fraction Calculation (7.00% - 5.75%)/
(Class A-1 Coupon - Reinvestment Yield) / (8.00% - 5.75%)= (100% - 55.56%)=
(Gross Mortgage Rate - Reinvestment Yield) = 1.25% / 2.25%=
% of Premium allocated to Classes
(Discount Rate Fraction) 55.56% 44.44%
================================================================================
CREDIT TENANT LEASE LOANS:
Credit Tenant Lease Loans are secured by mortgages on properties which are
leased (each a "Credit Tenant Lease"), to a tenant which possesses (or whose
parent or other affiliate which guarantees the lease obligation possesses) the
rating indicated in the following table. Scheduled monthly rent payments under
the Credit Tenant Leases are generally sufficient to pay in full and on a timely
basis all interest and principal scheduled to be paid with respect to the
related Credit Tenant Lease Loans.
The Credit Lease Loans generally provide that the Tenant is responsible for all
costs and expenses incurred in connection with the maintenance and operation of
the related Credit Tenant Lease property and that, in the event of a casualty or
condemnation of a material portion of the related Mortgaged Property:
(i) the Tenant is obligated to continue making payments;
(ii) the Tenant must make an offer to purchase the applicable property subject
to the Credit Tenant Lease for an amount not less than the unpaid
principal balance plus accrued interest on the related Credit Tenant Lease
Loan; or
(iii) the Trustee on behalf of the Certificateholders will have the benefit of
certain non-cancelable credit lease enhancement policies obtained to cover
certain casualty and/or condemnation risks.
Approximately 7.3% of the Mortgage Loans are Credit Tenant Lease Loans.
Page 8/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
<TABLE>
<CAPTION>
=======================================================================================================================
# Cut-off Date Property Lease Credit
Tenant / Guarantor Loans Balance ($) Type Type (1) Rating
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Brinker International 5 62,536,008 Restaurant B (4)
- -----------------------------------------------------------------------------------------------------------------------
Walgreen Company 12 31,221,461 Drug Store NN Aa3/A+
- -----------------------------------------------------------------------------------------------------------------------
Eckerd Corporation 4 6,814,400 Retail NNN A2/A(2)
- -----------------------------------------------------------------------------------------------------------------------
Eckerd Corporation 10 17,935,600 Retail NN A2/A(2)
- -----------------------------------------------------------------------------------------------------------------------
Q Club 4 20,858,360 Health Club B (4)
- -----------------------------------------------------------------------------------------------------------------------
Rite Aid Corp. 8 15,363,721 Drug Store NN Baa1/BBB+
- -----------------------------------------------------------------------------------------------------------------------
J. Sainsbury PLC 1 13,760,326 Grocery NN Aa3/A+
- -----------------------------------------------------------------------------------------------------------------------
CVS Corporation 8 13,255,513 Drug Store NN A3/A-
- -----------------------------------------------------------------------------------------------------------------------
Revco D.S. Inc. 7 12,065,289 Drug Store NN Baa1/A-
- -----------------------------------------------------------------------------------------------------------------------
K-Mart 1 11,283,801 Retail NNN Ba3/B+
- -----------------------------------------------------------------------------------------------------------------------
Kroger Company 2 10,761,648 Grocery NNN Baa3/BBB-
- -----------------------------------------------------------------------------------------------------------------------
Winn-Dixie Stores, Inc. 3 10,550,292 Grocery NN P1/A1(3)
- -----------------------------------------------------------------------------------------------------------------------
A & P 1 6,163,227 Grocery NNN Baa3/BBB-
- -----------------------------------------------------------------------------------------------------------------------
IHOP Corp 3 4,084,310 Restaurant NNN (4)
- -----------------------------------------------------------------------------------------------------------------------
Staples 1 3,361,991 Office Supplies NN Baa3/BB+
- -----------------------------------------------------------------------------------------------------------------------
Pep Boys 1 3,124,249 Auto Parts NNN Baa2/BBB+
- -----------------------------------------------------------------------------------------------------------------------
Safeway 1 3,022,231 Grocery NN Baa2/BBB
- -----------------------------------------------------------------------------------------------------------------------
Office Depot 1 2,194,462 Office Supplies NNN Baa2/BB+(5)
- -----------------------------------------------------------------------------------------------------------------------
State Farm 1 1,666,979 Operations Center NN Aaa/AAA(6)
- -----------------------------------------------------------------------------------------------------------------------
Sears Roebuck & Co. 1 918,191 Retail NNN A2/A-
- -----------------------------------------------------------------------------------------------------------------------
Ashtead Group PLC 1 890,911 Equipment Rental NN (4)
- -----------------------------------------------------------------------------------------------------------------------
United States Postal Service 1 828,686 Post Office NN (4)
- -----------------------------------------------------------------------------------------------------------------------
Total CTLs: 77 $252,661,659 - - BBB (approx.)
=======================================================================================================================
</TABLE>
Unless otherwise indicated, such ratings were the highest rating assigned to the
applicable tenant or guarantor, as applicable, by Moody's and Standard & Poor's,
respectively. See "Description of the Mortgage Pool--Credit Lease Loans" in the
Prospectus Supplement.
(1) "NNN" means triple net lease; "NN" means double net lease; "B" means
bond-type lease.
(2) Based upon the rating of Eckerd's parent, J.C. Penney Corporation,
although it has made no explicit guaranty of Eckerd's obligations.
(3) Commercial Paper Rating.
(4) Private rating; disclosure not available.
(5) Unsecured bank facility rating.
(6) Claims paying ability rating.
Page 9/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Large Loans: There are 6 loans over $60mm in balance totaling
$623.5mm. The following table provides a summary of
the 6 largest loans (the "Large Loans").
Mortgage Loan Summary:
<TABLE>
<CAPTION>
================================================================================================================================
Maturity
Mortgage Property # of Cut-off Date Date/ Amort
Loan Type Properties Balance Coupon ARD Term DSCR LTV
================================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
IBM Somers Office 1 $178,378,814 6.83% 10/1/2013 188 mos. 1.32x 63.7%
- --------------------------------------------------------------------------------------------------------------------------------
IBM Office 1 $154,000,000 7.04% 4/10/2011 IO 36 mos then 190 mos. 1.50x 76.2%
Broadmoor
- --------------------------------------------------------------------------------------------------------------------------------
Fox Retail 1 $ 85,527,649 6.75% 11/10/2006 Interest Only 1.91x 61.5%
Valley
Mall
- --------------------------------------------------------------------------------------------------------------------------------
Hawthorn Retail 1 $ 77,863,877 6.75% 11/10/2008 Interest Only 2.00x 58.8%
Center
- --------------------------------------------------------------------------------------------------------------------------------
First Office 1 $ 64,000,000 6.75% 5/1/2013 IO 60 mos. then 360 mos. 1.40x(1) 61.0%
Union
Plaza
- --------------------------------------------------------------------------------------------------------------------------------
Oakwood Multifamily 1 $ 63,766,163 7.36% 12/1/2027 360 mos. 1.30x 79.7%
Village
================================================================================================================================
Total / - 6 $623,536,504 6.907% - - 1.54x 67.2%
Weighted
Average
================================================================================================================================
</TABLE>
(1) DSCR shown is based upon the required debt service payments during the
loan's amortization period. DSCR based upon required debt service payments
during the loan's interest only period is 1.61x.
IBM Somers:
================================================================================
Cut-Off Date Balance: $178,378,814
- --------------------------------------------------------------------------------
Coupon/Term: 6.83% / 16 year self amortizing
- --------------------------------------------------------------------------------
Sponsor: IBM (50%), Shorenstein Company (25%), Fremont
Investors (25%)
- --------------------------------------------------------------------------------
Lease: 100% triple-net leased to IBM (A+/A1) through
October 31, 2013
- --------------------------------------------------------------------------------
Property: Class A office complex designed by I.M. Pei and
built in 1987. The property includes four
four-story office buildings and one four-story
corporate services building located on a
747-acre property.
- --------------------------------------------------------------------------------
Size: 1,078,060 net rentable square feet
- --------------------------------------------------------------------------------
Location: Somers (Westchester County), New York
- --------------------------------------------------------------------------------
Appraised Value: $280,000,000 (as of December 1, 1997)
- --------------------------------------------------------------------------------
LTV: 63.7%
- --------------------------------------------------------------------------------
DSCR: 1.32x
- --------------------------------------------------------------------------------
Lockbox: All base rent will be deposited directly into a
lockbox account
- --------------------------------------------------------------------------------
Reserves: NA
================================================================================
Page 10/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
IBM Broadmoor:
================================================================================
Cut-Off Date Balance: $154,000,000
- --------------------------------------------------------------------------------
Coupon/Term: 7.04% / 13 years; 3 years interest-only then
amortization on a 190 month amortization schedule.
- --------------------------------------------------------------------------------
Sponsor: IBM (50%), Prentiss Properties (50%)
- --------------------------------------------------------------------------------
Lease: 100% triple-net leased to IBM (A+/A1) through March
2006 and 70% triple-net leased through 2011.
- --------------------------------------------------------------------------------
Property: Leasehold interest in Class A office complex built in
1991. The Property includes seven buildings: one
single-story, three six-story, and three eight-story.
The fee simple interest is owned 100% by IBM.
- --------------------------------------------------------------------------------
Size: 1,112,236 net rentable square feet
- --------------------------------------------------------------------------------
Location: Austin, Texas
- --------------------------------------------------------------------------------
Appraised Value: $202,000,000 (as of February 1, 1998)
- --------------------------------------------------------------------------------
LTV: 76.2%
- --------------------------------------------------------------------------------
DSCR: 1.50x
- --------------------------------------------------------------------------------
Lockbox: All base rents will be deposited directly into a
lockbox account.
- --------------------------------------------------------------------------------
Reserves: If the occupancy of IBM falls below 100%, the Borrower
must establish reserves for capital expenditures,
leasing commissions, and tenant improvements in the
amount of $20 multiplied by the number of square feet
not occupied by IBM. The reserves must always equal $20
multiplied by the number of square feet not occupied by
IBM.
================================================================================
Fox Valley Mall:
================================================================================
Cut-Off Date Balance: $85,527,649
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 9 year interest-only
- --------------------------------------------------------------------------------
Sponsor: Urban Shopping Centers, Inc.
- --------------------------------------------------------------------------------
Anchors: Marshall Field, Sears, Carson Pirie Scott and JC Penney
- --------------------------------------------------------------------------------
Size: Two level, 1.4 million square foot regional mall with
566,001 square foot of In-Line Mall Space as well as
two pads leased to a health club and theatre with 1997
mall store sales of $277 per square foot.
- --------------------------------------------------------------------------------
Location: Aurora (outside Chicago), Illinois
- --------------------------------------------------------------------------------
Value: $138,994,118 assuming a 8.5% cap rate on underwritten
NOI
- --------------------------------------------------------------------------------
LTV: 61.5%
- --------------------------------------------------------------------------------
DSCR: 1.91x
- --------------------------------------------------------------------------------
Lockbox: Springing lockbox if the DSCR falls below 1.25x DSCR
and other standard criteria related to the ARD and the
refinancing of the loan.
- --------------------------------------------------------------------------------
Reserves: None. Borrower has covenanted that it will spend a
minimum of $7.0 million prior to April 1, 1999 on the
continued repositioning of the mall.
================================================================================
Page 11/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Hawthorn Center:
================================================================================
Cut-Off Date Balance: $77,863,877
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 11 year interest-only
- --------------------------------------------------------------------------------
Sponsor: Urban Shopping Centers, Inc.
- --------------------------------------------------------------------------------
Anchors: Marshall Field, Sears, Carson Pirie Scott and JC Penney
- --------------------------------------------------------------------------------
Size: Two level, 1.2 million square foot regional mall with
499,282 square feet of In-Line Mall Space as well as
one pad leased to a health club with 1997 mall store
sales of $295 per square foot.
- --------------------------------------------------------------------------------
Location: Vernon Hills (outside Chicago), Illinois
- --------------------------------------------------------------------------------
Value: $132,421,624 assuming a 8.5% cap rate on underwritten
NOI
- --------------------------------------------------------------------------------
LTV: 58.8%
- --------------------------------------------------------------------------------
DSCR: 2.00x
- --------------------------------------------------------------------------------
Lockbox: Springing lockbox if the DSCR falls below 1.25x DSCR
and other standard criteria related to the ARD and the
refinancing of the loan.
- --------------------------------------------------------------------------------
Reserves: None
================================================================================
First Union Plaza:
================================================================================
Cut-Off Date Balance: $64,000,000
- --------------------------------------------------------------------------------
Coupon/Term: 6.75% / 15 year; 5 years interest-only then 10 years on
a 30 year amortization schedule
- --------------------------------------------------------------------------------
Sponsor: Childress Klein (25%) and BBV Real Estate Services,
Inc. (75%)
- --------------------------------------------------------------------------------
Largest Tenants: First Union National Bank 19%; Sutherland, Asbill &
Brennan 17%.
- --------------------------------------------------------------------------------
Property: 28 story Class A office building built in 1987.
- --------------------------------------------------------------------------------
Size: 615,726 square feet
- --------------------------------------------------------------------------------
Location: Atlanta, Georgia
- --------------------------------------------------------------------------------
Appraised Value: $105,000,000 (as of March 28, 1998)
- --------------------------------------------------------------------------------
LTV: 61.0%
- --------------------------------------------------------------------------------
DSCR: 1.40x (1.61x based on required payments during the
interest only period)
- --------------------------------------------------------------------------------
Reserves: A $2 million TI/LC reserve was funded at closing for a
possible one time lease rollover in year 2000.
================================================================================
Page 12/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
Oakwood Village:
================================================================================
Cut-Off Date Balance: $63,766,163
- --------------------------------------------------------------------------------
Coupon/Term: 7.36% / 30 year
- --------------------------------------------------------------------------------
Sponsor: The Kushner Companies
- --------------------------------------------------------------------------------
Occupancy: 98%
- --------------------------------------------------------------------------------
Property: Apartment complex built in phases between 1973 and
1985. The improvements consist of 107 2-story brick
residential buildings plus ancillary buildings on 174.4
acre site.
- --------------------------------------------------------------------------------
Size: 1,224 units
- --------------------------------------------------------------------------------
Location: Mount Olive, NJ (approximately 30 miles NW of New York
City)
- --------------------------------------------------------------------------------
Appraised Value: $80,000,000 (as of October 6, 1997)
- --------------------------------------------------------------------------------
LTV: 79.7%
- --------------------------------------------------------------------------------
DSCR: 1.30x
- --------------------------------------------------------------------------------
Lockbox: None
- --------------------------------------------------------------------------------
Reserves: Replacement reserves in the amount of $20,400 ($200 per
unit per year) will be escrowed monthly for property
upkeep.
================================================================================
AFFILIATED BORROWER CONCENTRATIONS:
- --------------------------------------------------------------------------------
Sponsor Name Number of Loans % by Cut-off Balance
- --------------------------------------------------------------------------------
IBM/Shorenstein Company/
Fremont Investors 1 5.1
- --------------------------------------------------------------------------------
Urban Shopping Centers, Inc. 2 4.7
- --------------------------------------------------------------------------------
IBM/Prentiss Properties 1 4.4
- --------------------------------------------------------------------------------
The Kushner Companies 6 2.5
- --------------------------------------------------------------------------------
Oxford Realty Services 7 2.1
- --------------------------------------------------------------------------------
* No other borrower concentration equals or exceeds 2.0%.
UNDERWRITING:
The below table relates only to "conduit" loans and excludes all CTL loans as
well as the Large Loans.
================================================================================
% of Pool
w/Funded Escrow Current Balance Annual Deposit
- --------------------------------------------------------------------------------
Replacement Reserves 91.6% $3.8 mm $16.2 mm
- --------------------------------------------------------------------------------
Taxes 94.1% NA $40.8 mm
- --------------------------------------------------------------------------------
Insurance 84.6% NA $7.2 mm
- --------------------------------------------------------------------------------
TI & LC (Retail) 66.2% $6.3 mm $3.8 mm*
- --------------------------------------------------------------------------------
TI & LC (Office) 87.2% $5.3 mm $2.7 mm*
- --------------------------------------------------------------------------------
TI & LC (Industrial/W'hse) 48.9% $0.6 mm $0.5 mm*
- --------------------------------------------------------------------------------
* In addition, ten loans reserve periodically for lease specific events.
The below table table relates to all Mortgage Loans.
- --------------------------------------------------------------------------------
Non-Consolidation Delivered for substantially for all loans with
principal balances Opinions greater than $15 million
and the majority of Credit Tenant Lease Loans.
- --------------------------------------------------------------------------------
Lockboxes 17.2% of all loans, by balance, have hard lockboxes
29.4% of all loans, by balance, have springing
lockboxes
================================================================================
Page 13/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
ANTICIPATED REPAYMENT DATE LOANS:
Mortgage Loans representing 24.5% of the Initial Pool Balance provide that if
the unamortized principal amount thereof is not repaid on a date (the
"Anticipated Repayment Date") set forth in the related Mortgage Note, the
Mortgage Loan will accrue additional interest at the rate set forth therein and
the borrower will be required to apply excess monthly cash flow generated by the
Mortgaged Property (as determined in the related Mortgage) to the repayment of
principal outstanding on the Mortgage Loan. With respect to such Mortgage Loans,
no Prepayment Premiums or Yield Maintenance Charges will be due in connection
with any principal prepayment after the Anticipated Repayment Date. For purposes
of analysis, such loans are assumed to pay off at the ARD.
DETAILED MONTHLY INVESTOR REPORTING:
Updated collateral summary information will be a part of the monthly remittance
report in addition to detailed P&I payment and delinquency information.
Quarterly NOI and Occupancy data, to the extent delivered by the borrowers, will
be available to Certificateholders through the Trustee. The following is a list
of all the reports that will be available to Certificateholders:
<TABLE>
<CAPTION>
Name of Report Description (information provided)
- -----------------------------------------------------------------------------------------------------------------
<C> <S> <C>
1 Remittance Report principal and interest distributions, principal balances
- -----------------------------------------------------------------------------------------------------------------
2 Mortgage Loan Status Report portfolio stratifications
- -----------------------------------------------------------------------------------------------------------------
3 Comparative Financial Status Report revenue, NOI, DSCR to the extent available
- -----------------------------------------------------------------------------------------------------------------
4 Delinquent Loan Status Report listing of delinquent mortgage loans
- -----------------------------------------------------------------------------------------------------------------
5 Historical Loan Modification Report information on modified mortgage loans
- -----------------------------------------------------------------------------------------------------------------
6 Historical Loss Estimate Report liquidation proceeds, expenses, and realized losses
- -----------------------------------------------------------------------------------------------------------------
7 REO Status Report NOI and value of REO
- -----------------------------------------------------------------------------------------------------------------
8 Watch List listing of loans in jeopardy of becoming Specially Serviced
- -----------------------------------------------------------------------------------------------------------------
9 Loan Payoff Notification Report listing of loans that have given notice of intent to payoff
</TABLE>
ADVANCING: The Master Servicer will be obligated to make advances
of scheduled principal and interest payments (excluding
balloon payments and subject to reduction for Appraisal
Reduction Amounts) and certain servicing expenses
("Advances"), to the extent that such Advances are
deemed to be recoverable out of the related loan. If the
Master Servicer fails to make a required Advance, the
Trustee will be obligated to make such advances.
CONTROLLING CLASS A Controlling Class Representative will be appointed by
REPRESENTATIVE: a majority of Certificateholders of the Controlling
Class, which will generally be the most subordinate
class with a Certificate Balance outstanding that is at
least 25% of the initial Certificate Balance of such
Class. The Controlling Class Representative will,
subject to certain limitations, be entitled to direct
the Special Servicer on how to resolve delinquent or
defaulted loans.
Page 14/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Structural and Collateral Term Sheet (continued):
SPECIAL SERVICER The Pooling and Servicing Agreement will generally
FLEXIBILITY: permit the Special Servicer to modify, waive or amend
any term of any Mortgage Loan if (a) it determines, in
accordance with the servicing standard, that it is
appropriate to do so and (b) among other things, such
modification, waiver or amendment will not, subject to
certain exceptions:
(i) affect the amount or timing of any scheduled
payments of principal, interest or other amount
(including Prepayment Premiums and Yield
Maintenance Charges) payable under the Mortgage
Loan;
(ii) affect the obligation of the related borrower to
pay a Prepayment Premium or Yield Maintenance
Charge or permit a principal prepayment during the
applicable Lockout Period;
(iii) except as expressly provided by the related
Mortgage or in connection with a material adverse
environmental condition at the related Mortgaged
Property, result in a release of the lien of the
related Mortgage on any material portion of such
Mortgaged Property without a corresponding
principal prepayment, or;
(iv) in the judgment of the Special Servicer,
materially impair the security for the Mortgage
Loan or reduce the likelihood of timely payment of
amounts due thereon.
SPECIAL SERVICER: CRIIMI MAE Services Limited Partnership ("CRIIMI"), a
Maryland limited partnership, the general partner of
which is CRIIMI MAE Management, Inc.
As of December 31, 1997, CRIIMI had a total commercial
and multifamily mortgage loan servicing portfolio
(including loans serviced for its own account and for
others) of approximately $16.3 billion.
MASTER SERVICER: First Union. As of December 31, 1997, First Union had a
total commercial and multifamily mortgage loan servicing
portfolio (including loans serviced for its own account
and for others) of approximately $16.5 billion.
Page 15/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
GENERAL CHARACTERISTICS
===============================================
Characteristics
-----------------------------------------------
Initial Pool Balance $3,473,740,022
-----------------------------------------------
# of Loans 676
-----------------------------------------------
Gross WAC 7.257%
-----------------------------------------------
Original WAM 155 months
-----------------------------------------------
Remaining WAM 152 months
-----------------------------------------------
Avg. Loan Balance $5,138,669
-----------------------------------------------
WA DSCR* 1.41x
-----------------------------------------------
WA Cut-off Date LTV Ratio* 71.6%
-----------------------------------------------
Balloon or ARD Loans 81.1%
===============================================
*Excluding CTL loans
PROPERTY TYPES
===============================================
Property % of Initial Pool
Types Balance
-----------------------------------------------
Multifamily 31.1%
-----------------------------------------------
Retail 27.2%
-----------------------------------------------
Office 20.4%
-----------------------------------------------
CTL 7.3%
-----------------------------------------------
Hotel 6.7%
-----------------------------------------------
Industrial/Warehouse 3.8%
-----------------------------------------------
Health Care 1.9%
-----------------------------------------------
Self Storage 0.7%
-----------------------------------------------
Mobile Home Park 0.4%
-----------------------------------------------
Mixed Use 0.6%
===============================================
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE
- ------------------------------------------------------------------------------------------------------------------------------------
Aggregate Average Gross Rem. WA WA
# of Cut-off Date % of Cut-off Date WAC WAM LTV WA Occup. CA Balloon
Property Type Loans Balance ($) Pool Balance ($) (%) (mos) Ratio DSCR(x) Rate(%) % %
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 228 1,078,854,081 31.1 4,731,816 7.24 153 76.7 1.32 95.3 5.9 27.1
- ------------------------------------------------------------------------------------------------------------------------------------
Conventional 218 1,046,526,887 30.1 4,800,582 7.23 147 76.5 1.33 95.2 5.9 26.9
- ------------------------------------------------------------------------------------------------------------------------------------
Sec. 42 10 32,327,194 0.9 3,232,719 7.78 337 81.6 1.25 96.3 N/A 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Retail 172 945,473,518 27.2 5,496,939 7.20 136 70.7 1.46 93.6 3.0 25.2
- ------------------------------------------------------------------------------------------------------------------------------------
Anchored 104 701,075,815 20.2 6,741,114 7.16 138 70.0 1.50 92.8 1.7 18.4
- ------------------------------------------------------------------------------------------------------------------------------------
Unanchored 68 244,397,703 7.0 3,594,084 7.33 130 72.6 1.36 95.7 1.3 6.8
- ------------------------------------------------------------------------------------------------------------------------------------
Office 74 709,292,994 20.4 9,585,040 7.08 150 69.6 1.39 98.2 1.0 15.2
- ------------------------------------------------------------------------------------------------------------------------------------
CTL 77 252,661,659 7.3 3,281,320 7.45 240 N/A N/A 100.0 N/A 2.7
- ------------------------------------------------------------------------------------------------------------------------------------
Hotel 45 231,622,284 6.7 5,147,162 7.61 136 65.3 1.52 N/A 0.4 5.7
- ------------------------------------------------------------------------------------------------------------------------------------
Full Service 7 74,057,972 2.1 10,579,710 7.52 97 60.1 1.48 N/A 0.4 2.1
- ------------------------------------------------------------------------------------------------------------------------------------
Limited Service 38 157,564,312 4.5 4,146,429 7.65 155 67.8 1.54 N/A 0.1 3.6
- ------------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 44 130,726,130 3.8 2,971,048 7.36 133 67.1 1.40 98.2 1.0 2.6
- ------------------------------------------------------------------------------------------------------------------------------------
Health Care 12 65,451,082 1.9 5,454,257 7.80 170 56.7 1.86 93.5 0.1 1.1
- ------------------------------------------------------------------------------------------------------------------------------------
Assisted Living 2 4,480,828 0.1 2,240,414 7.98 116 57.6 1.39 93.2 0.1 0.1
- ------------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,589,517 0.2 7,589,517 7.20 118 69.0 1.64 87.0 N/A 0.2
- ------------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 9 53,380,737 1.5 5,931,193 7.87 182 54.8 1.93 94.4 N/A 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Self Storage 11 24,022,863 0.7 2,183,897 7.53 157 67.9 1.45 91.1 0.2 0.7
- ------------------------------------------------------------------------------------------------------------------------------------
Mixed Use 8 22,086,672 0.6 2,760,834 7.63 143 67.8 1.41 94.1 0.1 0.6
- ------------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 5 13,548,740 0.4 2,709,748 7.11 125 65.5 1.55 97.2 N/A 0.3
====================================================================================================================================
Total/Avg/Min/Max 676 3,473,740,022 100 5,138,669 7.26 152 71.6(2) 1.41(2) 95.6 (1) 11.8 81.1
Wtd.Avg:
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Excluding Hotels.
(2) Excludes credit tenant lease properties but includes Section 42
multifamily properties.
Page 16/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------------
Aggregate % of Average Minimum Maximum
Cut-off Date Initial Cut-off Date Cut-off Cut-off Date Gross Min Max Min
Property # of Balance Pool Balance Date Balance WAC WAC WAC WAM
Type Loans ($) (%) ($) Balance ($) ($) (%) (%) (%)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Multifamily 228 1,078,854,081 31.1 4,731,816 408,723 63,766,163 7.24 6.76 9.11 51
- ---------------------------------------------------------------------------------------------------------------------------------
Conventional 218 1,046,526,887 30.1 4,800,582 408,723 63,766,163 7.23 6.76 8.25 51
- ---------------------------------------------------------------------------------------------------------------------------------
Sec. 42 10 32,327,194 0.9 3,232,719 489,485 9,932,082 7.78 6.96 9.11 296
- ---------------------------------------------------------------------------------------------------------------------------------
Retail 172 945,473,518 27.2 5,496,939 448,385 85,527,649 7.20 6.71 9.01 57
- ---------------------------------------------------------------------------------------------------------------------------------
Anchored 104 701,075,815 20.2 6,741,114 448,385 85,527,649 7.16 6.71 8.61 70
- ---------------------------------------------------------------------------------------------------------------------------------
Unanchored 68 244,397,703 7.0 3,594,084 758,403 25,328,345 7.33 6.79 9.01 57
- ---------------------------------------------------------------------------------------------------------------------------------
Office 74 709,292,994 20.4 9,585,040 767,358 178,378,814 7.08 6.75 8.00 81
- ---------------------------------------------------------------------------------------------------------------------------------
CTL 77 252,661,659 7.3 3,281,320 494,859 15,391,931 7.45 6.79 9.20 115
- ---------------------------------------------------------------------------------------------------------------------------------
Hotel 45 231,622,284 6.7 5,147,162 1,790,698 23,892,525 7.61 7.06 8.88 56
- ---------------------------------------------------------------------------------------------------------------------------------
Limited Service 38 157,564,312 4.5 4,146,429 1,790,698 23,892,525 7.65 7.06 8.88 114
- ---------------------------------------------------------------------------------------------------------------------------------
Full Service 7 74,057,972 2.1 10,579,710 5,394,206 21,840,552 7.52 7.23 7.90 56
- ---------------------------------------------------------------------------------------------------------------------------------
Industrial/W'hse 44 130,726,130 3.8 2,971,048 747,776 12,218,750 7.36 7.00 7.71 80
- ---------------------------------------------------------------------------------------------------------------------------------
Health Care 12 65,451,082 1.9 5,454,257 1,941,881 13,404,516 7.80 7.20 8.13 115
- ---------------------------------------------------------------------------------------------------------------------------------
Skilled Nursing 9 53,380,737 1.5 5,931,193 2,464,054 13,404,516 7.87 7.75 8.00 115
- ---------------------------------------------------------------------------------------------------------------------------------
Congregate Care 1 7,589,517 0.2 7,589,517 7,589,517 7,589,517 7.20 7.20 7.20 118
- ---------------------------------------------------------------------------------------------------------------------------------
Assisted Living 2 4,480,828 0.1 2,240,414 1,941,881 2,538,946 7.98 7.88 8.13 116
- ---------------------------------------------------------------------------------------------------------------------------------
Self Storage 11 24,022,863 0.7 2,183,897 992,950 3,295,516 7.53 7.13 8.00 113
- ---------------------------------------------------------------------------------------------------------------------------------
Mixed Use 8 22,086,672 0.6 2,760,834 958,970 4,850,614 7.63 7.23 8.13 81
- ---------------------------------------------------------------------------------------------------------------------------------
Mobile Home Park 5 13,548,740 0.4 2,709,748 1,346,821 4,600,000 7.11 6.80 7.32 116
=================================================================================================================================
Total/Avg/Min/Max/ 676 3,473,740,022 100.0 5,138,669 408,723 178,378,814 7.26 6.71 9.20 51
Wtd.Avg.:
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DEAL SUMMARY BY PROPERTY TYPE (CONTINUED)
- ----------------------------------------------------------------------------------------------
WA Min Max
Max WA Min Max LTV LTV LTV
Property WAM DSCR DSCR DSCR Ratio Ratio Ratio
Type (x) (x) (x) (%) (%) (%)
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Multifamily 360 1.32 1.18 2.55 76.7 29.8 85.0
- ----------------------------------------------------------------------------------------------
Conventional 360 1.33 1.19 2.05 76.5 29.8 81.5
- ----------------------------------------------------------------------------------------------
Sec. 42 360 1.25 1.18 2.55 81.6 30.1 85.0
- ----------------------------------------------------------------------------------------------
Retail 298 1.46 1.11(2) 2.00 70.7 30.9 83.1
- ----------------------------------------------------------------------------------------------
Anchored 298 1.50 1.19 2.00 70.0 30.9 83.1
- ----------------------------------------------------------------------------------------------
Unanchored 238 1.36 1.11(2) 1.79 72.6 53.5 79.9
- ----------------------------------------------------------------------------------------------
Office 239 1.39 1.06(3) 1.74 69.6 50.0 79.9
- ----------------------------------------------------------------------------------------------
CTL 297 N/A N/A N/A N/A N/A N/A
- ----------------------------------------------------------------------------------------------
Hotel 239 1.52 1.38 3.53 65.3 39.8 75.9
- ----------------------------------------------------------------------------------------------
Limited Service 239 1.54 1.38 3.53 67.8 39.8 75.9
- ----------------------------------------------------------------------------------------------
Full Service 119 1.48 1.40 1.64 60.1 47.1 74.4
- ----------------------------------------------------------------------------------------------
Industrial/W'hse 240 1.40 1.23 2.23 67.1 38.7 77.7
- ----------------------------------------------------------------------------------------------
Health Care 237 1.86 1.37 2.33 56.7 20.8 78.7
- ----------------------------------------------------------------------------------------------
Skilled Nursing 237 1.93 1.37 2.33 54.8 20.8 78.7
- ----------------------------------------------------------------------------------------------
Congregate Care 118 1.64 1.64 1.64 69.0 69.0 69.0
- ----------------------------------------------------------------------------------------------
Assisted Living 116 1.39 1.37 1.42 57.6 35.3 74.7
- ----------------------------------------------------------------------------------------------
Self Storage 238 1.45 1.30 1.82 67.9 59.5 74.3
- ----------------------------------------------------------------------------------------------
Mixed Use 357 1.41 1.30 1.57 67.8 47.6 76.7
- ----------------------------------------------------------------------------------------------
Mobile Home Park 177 1.55 1.14(4) 2.06 65.5 46.8 78.6
- ----------------------------------------------------------------------------------------------
Total/Avg/Min/Max/ 360 1.41(1) 1.06(1) 3.53(1) 71.6(1) 20.8(1) 85.0(1)
Wtd.Avg.:
- ----------------------------------------------------------------------------------------------
</TABLE>
(1) Excludes Credit Tenant Lease Loan but includes Section 42 multifamily
properties.
(2) $2.065mm 75% LTV retail loan, part of an $8.8mm crossed portfolio with
1.26x DSCR.
(3) $1.292mm 15-year self-liquidating loan, at 69.99% LTV.
(4) $1.495mm 15-year self-liquidating loan at 55.4% LTV.
Page 17/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
LOAN SIZE DISTRIBUTION
=======================================================================
# of % of Initial
Balance Ranges ($) Loans Pool Balance
- -----------------------------------------------------------------------
613,738 - 2,000,000 204 8.3
- -----------------------------------------------------------------------
2,000,001 - 4,000,000 234 19.0
- -----------------------------------------------------------------------
4,000,001 - 6,000,000 90 12.7
- -----------------------------------------------------------------------
6,000,001 - 8,000,000 64 12.6
- -----------------------------------------------------------------------
8,000,001 - 10,000,000 24 6.3
- -----------------------------------------------------------------------
10,000,001 - 12,000,000 14 4.5
- -----------------------------------------------------------------------
12,000,001 - 14,000,000 17 6.3
- -----------------------------------------------------------------------
14,000,001 - 16,000,000 7 3.0
- -----------------------------------------------------------------------
16,000,001 - 18,000,000 6 3.0
- -----------------------------------------------------------------------
18,000,001 - 20,000,000 1 0.6
- -----------------------------------------------------------------------
20,000,001 - 22,000,000 4 2.4
- -----------------------------------------------------------------------
22,000,001 - 24,000,000 3 2.0
- -----------------------------------------------------------------------
62,000,001 - 64,000,000 2 3.7
- -----------------------------------------------------------------------
76,000,001 - 78,000,000 1 2.2
- -----------------------------------------------------------------------
84,000,001 - 86,000,000 1 2.5
- -----------------------------------------------------------------------
152,000,001 - 154,000,000 1 4.4
- -----------------------------------------------------------------------
178,000,001 - 180,000,000 1 5.1
=======================================================================
Minimum Balance: $408,723
Maximum Balance: $178,378,814
Average Balance: $5,138,669
GROSS RATE DISTRIBUTION
================================================
Gross Rate % of Initial
(%) Pool Balance
------------------------------------------------
6.500 - 6.749% 0.1
------------------------------------------------
6.750 - 6.999% 20.5
------------------------------------------------
7.000 - 7.249% 34.1
------------------------------------------------
7.250 - 7.499% 24.9
------------------------------------------------
7.500 - 7.749% 11.1
------------------------------------------------
7.750 - 7.999% 5.3
------------------------------------------------
8.000 - 8.249% 2.3
------------------------------------------------
8.250 - 8.499% 0.4
------------------------------------------------
8.500 - 8.749% 0.4
------------------------------------------------
8.750 - 8.999% 0.1
------------------------------------------------
9.000 - 9.249% 0.8
================================================
Minimum Rate: 6.710%
Maximum Rate: 9.200%
WAC: 7.257%
REMAINING TERMS TO MATURITY*
=================================================
% of Initial
Months Pool Balance
-------------------------------------------------
49 - 60 1.0
-------------------------------------------------
61 - 84 3.8
-------------------------------------------------
97 - 120 53.9
-------------------------------------------------
121 - 144 3.5
-------------------------------------------------
145 - 156 5.1
-------------------------------------------------
157 - 180 11.1
-------------------------------------------------
181 - 204 5.4
-------------------------------------------------
205 - 228 0.6
-------------------------------------------------
229 - 240 8.8
-------------------------------------------------
241 - 264 1.0
-------------------------------------------------
277 - 300 2.5
-------------------------------------------------
349 - 360 3.4
=================================================
Minimum Remaining
Term to Maturity*: 51 months
Maximum Remaining
Term to Maturity*: 360 months
Weighted Average
Remaining Term to Maturity*: 152 months
REMAINING AMORTIZATION TERM
================================================
% of Initial
Months Pool Balance
------------------------------------------------
115 - 144 0.2
------------------------------------------------
157 - 180 1.2
------------------------------------------------
181 - 204 5.5
------------------------------------------------
205 - 228 0.6
------------------------------------------------
229 - 252 12.4
------------------------------------------------
253 - 276 0.9
------------------------------------------------
277 - 300 15.0
------------------------------------------------
301 - 324 3.0
------------------------------------------------
325 - 360 61.2
================================================
Minimum Remaining
Amortization Term: 115 months
Maximum Remaining
Amortization Term: 360 months
Weighted Average
Amortization Term: 318 months
*Assumes ARD Loans payoff on their Anticipated Repayment Date.
Page 18/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
<PAGE>
FULBBA 98-C2 Collateral Overview (as of the cut-off date - May 1, 1998):
DEBT SERVICE COVERAGE RATIOS*
================================================
% of Initial
DSCR Ranges (x) Pool Balance
------------------------------------------------
1.06 - 1.14 0.2
------------------------------------------------
1.15 - 1.19 0.4
------------------------------------------------
1.20 - 1.24 6.6
------------------------------------------------
1.25 - 1.29 20.6
------------------------------------------------
1.30 - 1.34 23.1
------------------------------------------------
1.35 - 1.39 8.1
------------------------------------------------
1.40 - 1.44 14.1
------------------------------------------------
1.45 - 1.49 4.3
------------------------------------------------
1.50 - 1.54 10.1
------------------------------------------------
1.55 - 1.64 3.1
------------------------------------------------
1.65 - 1.84 2.3
------------------------------------------------
1.85 - 1.99 2.9
------------------------------------------------
2.00 - 2.30 3.7
------------------------------------------------
2.30+ 0.4
================================================
Minimum DSCR*: 1.06x
Maximum DSCR*: 3.53x
Weighted Average DSCR*: 1.41x
LOAN TO VALUE % (LTV)*
====================================================
% of Initial
LTV Ranges Pool Balance
----------------------------------------------------
20.01 - 30.00 0.3
----------------------------------------------------
30.01 - 35.00 0.1
----------------------------------------------------
35.01 - 40.00 0.3
----------------------------------------------------
40.01 - 50.00 1.2
----------------------------------------------------
50.01 - 55.00 0.6
----------------------------------------------------
55.01 - 60.00 6.2
----------------------------------------------------
60.01 - 65.00 14.8
----------------------------------------------------
65.01 - 70.00 8.4
----------------------------------------------------
70.01 - 75.00 31.5
----------------------------------------------------
75.01 - 80.00 34.6
----------------------------------------------------
80.01 - 85.00 2.1
====================================================
Minimum LTV*: 20.8%
Maximum LTV*: 85.0%
Weighted Average LTV*: 71.6%
*EXCLUDES CTL LOANS.
STATE DISTRIBUTION
==============================================
% of Initial
State Pool Balance
----------------------------------------------
California 11.8
----------------------------------------------
Texas 10.3
----------------------------------------------
New York 9.1
----------------------------------------------
Illinois 7.8
----------------------------------------------
Florida 7.1
----------------------------------------------
Georgia 6.2
----------------------------------------------
Maryland 5.9
----------------------------------------------
New Jersey 4.7
----------------------------------------------
Virginia 3.9
----------------------------------------------
North Carolina 3.7
----------------------------------------------
Arizona 2.7
----------------------------------------------
Pennsylvania 2.5
----------------------------------------------
Nevada 2.3
----------------------------------------------
Ohio 2.1
----------------------------------------------
Tennessee 1.9
----------------------------------------------
Kentucky 1.8
----------------------------------------------
Michigan 1.6
----------------------------------------------
Connecticut 1.4
----------------------------------------------
Louisiana 1.4
----------------------------------------------
Indiana 1.3
----------------------------------------------
Missouri 1.2
----------------------------------------------
Other 9.2
==============================================
No other state greater than 1.1%.
=============================================
Loan Type % of Pool
---------------------------------------------
Balloon 56.7
---------------------------------------------
Fully Amortizing 18.9
---------------------------------------------
ARD Loan 24.5
=============================================
Page 19/19
================================================================================
THIS INFORMATION DOES NOT CONSTITUTE EITHER AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY OF THE SECURITIES REFERRED TO HEREIN. OFFERS TO SELL AND
SOLICITATIONS OF OFFERS TO BUY SECURITIES ARE MADE ONLY BY, AND THIS INFORMATION
MUST BE READ IN CONJUNCTION WITH THE FINAL PROSPECTUS SUPPLEMENT AND THE
RELATED PROSPECTUS OR, IF NOT REGISTERED UNDER THE SECURITIES LAW, THE FINAL
OFFERING MEMORANDUM (THE "OFFERING DOCUMENT"). INFORMATION CONTAINED HEREIN DOES
NOT PURPORT TO BE COMPLETE AND IS SUBJECT TO THE SAME QUALIFICATIONS AND
ASSUMPTIONS, AND SHOULD BE CONSIDERED BY INVESTORS ONLY IN THE LIGHT OF THE SAME
WARNINGS, LACK OF ASSURANCES AND REPRESENTATIONS AND OTHER PRECAUTIONARY
MATTERS, AS DISCLOSED IN THE OFFERING DOCUMENT. INFORMATION REGARDING THE
UNDERLYING ASSETS HAS BEEN PROVIDED BY THE ISSUER OF THE SECURITIES OR AN
AFFILIATE THEREOF AND HAS NOT BEEN INDEPENDENTLY VERIFIED BY THE UNDERWRITERS OR
THEIR RESPECTIVE AFFILIATES. THE ANALYSES CONTAINED HEREIN HAVE BEEN PREPAID
AND DISSEMINATED BY THE UNDERWRITERS AND THE CONTENTS AND ACCURACY THEREOF HAVE
NOT BEEN REVIEWED BY THE ISSUER. THIS INFORMATION WAS PREPARED ON THE BASIS OF
CERTAIN ASSUMPTIONS (INCLUDING, IN CERTAIN CASE ASSUMPTIONS SPECIFIED BY THE
RECIPIENT HEREOF) REGARDING PAYMENTS, INTEREST RATES, WEIGHTED AVERAGE LIVES AND
WEIGHTED AVERAGE LOAN AGE, LOSS AND OTHER MATTERS, INCLUDING, BUT NOT LIMITED
TO, THE ASSUMPTIONS DESCRIBED IN THE OFFERING DOCUMENT. THE UNDERWRITERS, AND
ANY OF THEIR AFFILIATES, MAKE NO REPRESENTATION OR WARRANTY AS TO THE ACTUAL
RATE OR TIMING OF PAYMENTS ON ANY OF THE UNDERLYING ASSETS OR THE PAYMENTS OR
YIELD ON THE SECURITIES. THIS INFORMATION SUPERSEDES ANY PRIOR VERSIONS HEREOF
AND WILL BE DEEMED TO BE SUPERSEDED BY ANY SUBSEQUENT VERSIONS (INCLUDING, WITH
RESPECT TO ANY DESCRIPTION OF THE SECURITIES OR THE UNDERLYING ASSETS, THE
INFORMATION CONTAINED IN THE OFFERING DOCUMENT).
