<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: June 4, 1998
(Date of earliest event reported)
MORTGAGE CAPITAL FUNDING, INC.
(SPONSOR)
(Issuer in Respect of Multifamily/Commercial Mortgage Pass-Through Certificates,
Series 1998-MC2)
--------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
Delaware 333-24489 13-3408716
----------------------------------------------------------------
(STATE OR OTHER JURIS- (COMMISSION (I.R.S. EMPLOYER
DICTION OF ORGANIZATION) FILE NO.) IDENTIFICATION NO.)
399 Park Avenue, New York, New York 10043
----------------------------------- -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's Telephone Number, including area code (212) 559-6899
---------------------------------------------------------------
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
1
<PAGE>
Item 5. Other Events.
MORTGAGE CAPTIAL FUNDING, INC.
Multifamily/Commercial Mortgage Pass-Through Certificates,
Series 1998-MC2
----------------------------------------------
Attached as Exhibit I are the Computational Materials (as defined in the
no-action letter dated May 20, 1994 issued by the Securities and Exchange
Commission to Kidder, Peabody Acceptance Corporation-I, Kidder, Peabody & Co.
Incorporated and Kidder Structured Asset Corporation) and/or Structural Term
Sheets and Collateral Term Sheets (each as defined in the no-action letter
dated February 17, 1995 issued by the Securities and Exchange Commission to the
Public Securities Association) prepared by Citibank, N.A. and J.P.Morgan
Securities Inc. that are required to be filed pursuant to such letters.
2
<PAGE>
EXHIBIT INDEX
Exhibit No. Page No.
- ----------- --------
I Computational Materials/Structural and Collateral
Term Sheets prepared by Citibank, N.A. and
J.P. Morgan Securities Inc.
3
<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 thereunto duly authorized.
MORTGAGE CAPITAL FUNDING, INC.
(Registrant)
By: /s/ Richard L. Jarocki, Jr.
------------------------------
Richard L. Jarocki, Jr.
President
Dated: June 4, 1998
4
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
MORTGAGE CAPITAL FUNDING, INC.
MULTIFAMILY/COMMERCIAL MORTGAGE PASS-THROUGH
CERTIFICATES, SERIES 1998-MC2
CLASSES A-1, A-2, B, C, D, E, & X
$1,100,000,000 (APPROXIMATE)
-------------------
CMBS NEW ISSUE TERM SHEET
-------------------
JUNE 3, 1998
[CITIBANK LOGO] [J.P. MORGAN & CO. LOGO]
- -------------------------------------------------------------------------------
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STRUCTURAL AND COLLATERAL TERM SHEET
CITIBANK, N.A. J.P. MORGAN & CO.
- -------------- -----------------
399 PARK AVENUE, 7TH FLOOR 60 WALL STREET, 3RD FLOOR
NEW YORK, NY 10043 NEW YORK, NY 10260
MORTGAGE TRADING & ANALYTICS, AND MORTGAGE SALES & TRADING AND STRUCTURING
STRUCTURED FINANCE
<S> <C> <C> <C>
Frank Forelle Phone: (212) 291-3320 Brian Baker Phone: (212) 648-1413
Vice President Fax: (212) 291-3687 Vice President Fax: (212) 648-5907
Jeff Sturdevant Phone: (212) 291-3320 Andy Taylor Phone: (212) 648-1413
Vice President Fax: (212) 291-3687 Vice President Fax: (212) 648-5907
Richard Cohen Phone: (212) 291-3320 Tom Doherty Phone: (212) 648-1413
Vice President Fax: (212) 291-3687 Vice President Fax: (212) 648-5907
Nancy Wilt Phone: (212) 291-3320
Vice President Fax: (212) 291-3687
REAL ESTATE FINANCE AND REAL ESTATE FINANCE
STRUCTURING
Richard L. Jarocki Jr. Phone: (212) 559-0217 Larry Blume Phone: (212) 648-3238
Managing Director Fax: (212) 793-5602 Vice President Fax: (212) 648-5138
Darrell Wheeler Phone: (212) 559-0206 Chris Taylor Phone: (212) 648-6267
Vice President Fax: (212) 793-5602 Associate Fax: (212) 648-5138
Mark Horinbein Phone: (212) 559-0216
Vice President Fax: (212) 793-5602
Matt Aaronson Phone: (212) 559-0266 SYNDICATE/PRODUCT MANAGEMENT
Associate Fax: (212) 793-5602
Bret Costain Phone (212) 648-0660
Vice President Fax: (212) 648-5909
Brad Craighead Phone (212) 648-0112
Vice President Fax (212) 648-5909
Michael Glover Phone (212) 648-0258
Vice President Fax (212) 648-5379
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
COLLATERAL FACTS
- -------------------------------------------------------------------------------
INITIAL POOL BALANCE: $1,214,639,935
NUMBER OF MORTGAGE LOANS: 160
NUMBER OF PROPERTIES 163
AVERAGE LOAN CUT-OFF DATE BALANCE: $7,591,500
AVERAGE PROPERTY CUT-OFF DATE BALANCE: $7,451,779
WEIGHTED AVERAGE CURRENT MORTGAGE RATE(a): 7.215%
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM: 273.8 mos.
WEIGHTED AVERAGE U/W DSCR (b): 1.44x
WEIGHTED AVERAGE CUT-OFF DATE LTV RATIO: 70.7%
WEIGHTED AVERAGE REMAINING TERM TO MATURITY(c): 130 mos.
WEIGHTED AVERAGE SEASONING: 3 mos.
- -------------------------------------------------------------------------------
(a) Gross Coupon.
(b) U/W DSCR is the ratio of Underwritten Net Operating Income over the
annualized debt service payments.
(c) Anticipated Repayment Date for loans with Hyper-Amortization. All
information presented herein with respect to Hyper-Amortization Loans
assumes that they mature on their respective Anticipated Repayment Dates.
KEY FEATURES
- -------------------------------------------------------------------------------
Lead Manager: Citibank, N.A.
Co-Manager JP Morgan Securities, Inc.
Mortgage Loan Sellers: Citicorp Real Estate, Inc. (89% of Pool
Balance) and Morgan Guaranty Trust Company of
New York (11%)
Master Servicer: CRIIMI MAE Services, L.P..
Special Servicer: CRIIMI MAE Services, L.P.
Purchaser of Classes
F, G, H, J, K CRIIMI MAE Inc.
Trustee: State Street Bank and Trust Company
Pricing: On or about June 22,1998
Closing: On or about June 26, 1998
Settlement: On or about June 26, 1998
Cut-Off Date: June 1,1998
Distribution Date: 18th of each month, or following business day
(commencing July 1998)
ERISA Eligible: Classes A1, A2 and X are ERISA eligible under
the individual underwriter's prohibited
transaction exemption, subject to certain
conditions for eligibility
Representations & Warranties: Provided by applicable Mortgage Loan Sellers
Structure: Sequential pay
Interest Accrual Period: With respect to any Distribution Date, the
calendar month preceding the month in which
such Distribution Date occurs.
Day Count: 30/360
Tax Treatment: REMIC
Rated Final Distribution Date: May 18, 2030
Clean up Call: 1.0%
Minimum Denominations: Publicly Offered Classes except Class X:
$10,000 & $1 Class X: $1,000,000 Notional
Amount & $1
- -------------------------------------------------------------------------------
LOAN PREPAYMENT TABLE
- -------------------------------------------------------------------------------
AGGREGATE
CUT-OFF % OF WTD. WTD. AVG. WTD.
# OF DATE INITIAL AVG. CUT-OFF AVG.
RESTRICTION AT MORTGAGE BALANCE POOL U/W DATE LTV MORTGAGE
ORIGINATION LOANS (MM) BALANCE DSCR RATIO RATE
- -------------------------------------------------------------------------------
Lockout/YM 122 698.57 57.51% 1.42x 71.0% 7.234%
Lockout/> of YM or 1% 23 131.35 10.81 1.41 70.6 7.417
Lockout/YM/Declining Fee 6 25.60 2.11 1.20 72.8 7.487
Lockout/Declining Fee 4 10.06 0.83 1.37 75.5 7.453
Lockout/Defeasance 1 182.10 14.99 1.35 76.8 7.030
Lockout/Defeasance/YM 1 51.20 4.22 1.05 76.4 7.860
> of YM or 5%/> of
YM or 2% 1 108.00 8.89 1.95 54.0 6.720
> of YM or 1% 1 4.17 0.34 1.25 79.5 8.400
Lockout/> of YM or
1%/Declining 1 3.60 0.30 1.38 73.4 7.210
- -------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 $1,214.64 100.00% 1.44x 70.7% 7.215%
- -------------------------------------------------------------------------------
<PAGE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
APPROXIMATE SECURITIES STRUCTURE
- ----------------------------------------------------------------------------------------------------------------
EXPECTED
EXPECTED EXPECTED WTD PRINCIPAL
EXPECTED RATING APPROX. SIZE CREDIT COUPON AVERAGE LIFE PAYMENT
CLASS (FITCH/MOODY'S) ($MM) (a) SUPPORT (a) DESCRIPTION DELIVERY (YRS.)(a)(b) WINDOW(a)(b)
- ----------------------------------------------------------------------------------------------------------------
PUBLICLY OFFERED CLASSES:
<S> <C> <C> <C> <C> <C> <C> <C>
X AAA/Aaa 1,214.6(c) (d) DTC 9.4 7/98 - 4/18
A1 AAA/Aaa [245.7] [27.0%] TBD DTC 5.5 7/98 - 11/07
A2 AAA/Aaa [641.0] [27.0] TBD DTC 9.7 11/7 - 5/08
B AA/Aa2 [60.7] [22.0] TBD DTC 9.9 5/08 - 5/08
C A/A2 [60.7] [17.0] TBD DTC 9.4 5/08 - 6/08
D BBB/Baa2 [54.7] [12.5] TBD DTC 10.0 6/08 - 6/08
E BBB-/Baa3 [48.6] [8.5] TBD DTC 10.5 6/08 - 9/10
PRIVATELY PLACED CLASSES (144A):
- ----------------------------------------------------------------------------------------------------------------
F NOT OFFERED HEREBY
G NOT OFFERED HEREBY
H NOT OFFERED HEREBY
J NOT OFFERED HEREBY
K NOT OFFERED HEREBY
TOTAL SECURITIES: $1,214.6
- ----------------------------------------------------------------------------------------------------------------
(a) All information presented herein regarding Class size and anyinformation derived therefrom is estimated.
Class sizes and accordingly, such derivative information, may vary (and may vary substantially). Investors
should review the final prospectus to confirm the actual class sizes.
(b) Calculated at 0% CPR, no balloon extension and Hyper-Amortization Loans pay in full on Anticipated
Repayment Dates.
(c) Notional amount.
(d) The Class X coupon is calculated, in general, as the excess of (i) the weighted average Net Mortgage Rate,
determined without regard to any modifications of the mortgage loans, in effect from time to time on the
mortgage loans over (ii) the weighted average of the Pass-Through Rates in effect from time to time on the
Class A1 through Class K Certificates.
</TABLE>
<TABLE>
<CAPTION>
STRUCTURAL OVERVIEW
<S> <C>
[ ] Offered Certificates [//] Certificates Not Offered
------------------------------------------------------------------------------------------------------------------ <--- Initial
| | Net WAC
| X-IO ----------- ----- |
| AAA/Aaa om | |/////| |
| 1,214 ($mm) Notional Amount om ----------| E |/ F /| |
| | | BBB-/Baa3 |/////| |
| ----------| D | |/////| |
| | | BBB/Baa2 | |/////| |
| ----------| C | | |/////| |
| | | A/A2 | | |/////|----- ----- ----- ----- |
| ---------------------| B | | | |/////|/////|/////|/////|/////| |
| | | AA/Aa2 | | | |/////|/ G /|/ H /|/ I /|/ K /| |
| -----------| A2 | | | | |/////|/////|/////|/////|/////| |
| | | AAA/Aaa | | | | |/////|/////|/////|/////|/////| |
| | A1 | | | | | |/////|/////|/////|/////|/////| |
| | AAA/Aaa | | | | | |/////|/////|/////|/////|/////| |
| | | | | | | |/////|/////|/////|/////|/////| |
| | | | | | | |/////|/////|/////|/////|/////| |
| | | | | | | |/////|/////|/////|/////|/////| |
| | | | | | | |/////|/////|/////|/////|/////| |
| | | | | | | |/////|/////|/////|/////|/////| |
------------------------------------------------------------------------------------------------------------------
</TABLE>
Note: Bars are not drawn to proportion
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
STRUCTURAL OVERVIEW - CONT.
- -------------------------------------------------------------------------------
O The Mortgage Pool will be comprised of one Loan Group
-- Principal will be paid sequentially to Class A1, A2, B, C, D, E, F,
G, H, J, and K Certificates (If principal balances of all such
Classes other than Classes A1 and A2 have reduced to zero, principal
will be allocated to Class A1 and A2 pro-rata)
O Class X will receive interest payments pro-rata (based on interest
entitlements) with the Class A1 and Class A2 Certificates each month
O Each of the Classes (except Class X) will be subordinate to earlier
alphabetically lettered classes (Losses will be allocated in reverse
alphabetical order to Classes with certificate balances and pro-rata to
Classes A1 and A2)
O The Master Servicer will cover net prepayment interest shortfalls, up to
the portion of the Master Servicing Fee equal to 0.04% per annum. Net
shortfalls (after application of prepayment interest excesses and other
Servicer coverage from the Master Servicing Fee) will be allocated in
reverse alphabetical order to the Subordinate Certificates and then
pro-rata (based on interest entitlements) to the Class A1, Class A2 and
Class X Certificates
O All Classes will pay interest on a 30/360 basis
O Shortfalls resulting from Master Servicer and Special Servicer
modifications, Special Servicer compensation or other extraordinary trust
fund expenses will be allocated in reverse alphabetical order to Classes
with certificate balances (in the case of the Class A1 and Class A2
Certificates, pro rata based on certificate balances)
O IO protected with regard to loan modifications and waivers that reduce
Mortgage Rate
MORTGAGE POOL OVERVIEW
- -------------------------------------------------------------------------------
O The Mortgage Pool is comprised of 160 multifamily and commercial loans
with an aggregate Cut-Off Date Balance of approximately $1,214,639,935
O All of the Mortgage Loans are secured by first mortgage liens on
multifamily and commercial properties
O The Mortgage Pool's average Cut-Off Date Balance is approximately
$7,591,500
O The Mortgage Pool's weighted average current Underwritten Debt Service
Coverage Ratio is 1.44x (a)
O The Mortgage Pool's Cut-Off Date LTV is 70.7%
O The Mortgage Pool's weighted average Mortgage Rate is approximately 7.215%
per annum
(a) Underwritten Debt Service Coverage Ratio is the ratio of Underwritten NOI
over the annualized debt service payments.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
ALLOCATION OF PREPAYMENT PENALTIES
- -------------------------------------------------------------------------------
ALLOCATION OF PREPAYMENT PREMIUMS
Prepayment premiums will be allocated between the Publicly Offered Certificates
then entitled to principal distributions and the Class X Certificates as
follows:
O A percentage of all prepayment premiums (either fixed prepayment
premiums or yield maintenance amount) will be allocated to each class
of the Publicly Offered Certificates then entitled to principal
distributions, which percentage will be equal to the product of (a)
the percentage of the total principal distribution that such Class
receives, and (b) a fraction (expressed as a percentage which can be
no greater than 100%), the numerator of which is the excess of the
Pass-Through Rate of such Class of the Publicly Offered Certificates
currently receiving principal over the relevant Discount Rate, and
the denominator of which is the excess of the Mortgage Rate of the
related Mortgage Loan over the Discount Rate.
---------------------------------------------------------------
Prepayment (Pass-Through Rate - Discount Rate)
Premium Allocation = -----------------------------------
Percentage (Mortgage Rate - Discount Rate)
---------------------------------------------------------------
O The remaining percentage of the Prepayment Premiums will be allocated
to the Class X Certificates
O In general, this formula provides for an increase in the allocation
of Prepayment Premiums to the Publicly Offered Certificates then
entitled to principal distributions relative to the Class X
Certificates as Discount Rates decrease and a decrease in the
allocation to such Classes as Discount Rates rise
Allocation of Prepayment Premiums Example
Discount Rate Fraction Methodology:
Mortgage Rate = 9%
Bond Class Rate = 7%
Treasury Rate = 6%
BOND CLASS ALLOCATION | CLASS X ALLOCATION
-----------------------------|--------------------------------------------
|
7% - 6% |
------- = 33 1/3% | Receives excess premiums = 66 2/3% thereof
9% - 6% |
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PREPAYMENT RESTRICTION ANALYSIS (a) (b)
- ------------------------------------------------------------------------------------------------------------------------------
PREPAYMENT RESTRICTION CURRENT JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE JUNE
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out (c) 90.80% 89.90% 87.00% 86.40% 38.90% 31.10% 28.10% 21.70% 17.80% 17.30% 0.00%
Yield Maintenance 9.20% 10.10% 12.70% 13.20% 60.20% 67.70% 69.40% 74.60% 78.50% 69.20% 100.00%
5.00 - 5.99% 0.00% 0.00% 0.20% 0.20% 0.60% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
4.00 - 4.99% 0.00% 0.00% 0.00% 0.10% 0.20% 0.80% 0.00% 0.00% 0.00% 0.00% 0.00%
3.00 - 3.99% 0.00% 0.00% 0.00% 0.00% 0.10% 0.00% 2.10% 1.40% 0.00% 0.00% 0.00%
2.00 - 2.99% 0.00% 0.00% 0.00% 0.00% 0.00% 0.10% 0.00% 2.10% 1.40% 0.00% 0.00%
1.00 - 1.99% 0.00% 0.00% 0.00% 0.00% 0.00% 0.30% 0.00% 0.00% 1.80% 1.80% 0.00%
0.01 - 0.99% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
No Prepay Penalties 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.40% 0.20% 0.50% 11.80% 0.00%
- ------------------------------------------------------------------------------------------------------------------------------
TOTAL 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
- ------------------------------------------------------------------------------------------------------------------------------
AGGREGATE MTG BALANCE 1,214.6 1,199.0 1,182.4 1,164.4 1,145.0 1,123.2 1,097.8 1,055.8 1,026.6 995.3 141.1
% OF CUT-OFF BALANCE 100.00% 97.70% 97.30% 95.90% 94.30% 92.50% 90.40% 86.90% 84.50% 81.90% 11.60%
- ------------------------------------------------------------------------------------------------------------------------------
(a) Table calculated using modeling assumptions and assuming no prepayments of principal.
(b) Totals may not equal due to rounding.
(c) Includes defeasance.
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DISTRIBUTION OF CUT-OFF DATE BALANCE
- ----------------------------------------------------------------------------------------------------------------
WEIGHTED
% OF AVERAGE WEIGHTED
NUMBER OF AGGREGATE INITIAL WEIGHTED CUT-OFF AVERAGE
RANGE OF CUT-OFF DATE MORTGAGE NUMBER OF CUT-OFF DATE POOL AVERAGE DATE MORTGAGE
BALANCE ($) LOANS PROPERTIES BALANCE (a) BALANCE U/W DSCR LTV RATE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$0 - $999,000 10 10 $8,026,664 0.7% 1.61x 59.8 7.266%
$1,000,000 - $2,499,999 65 65 112,080,200 9.2 1.43 71.7 7.437
$2,500,000 - $4,999,999 40 41 144,269,908 11.9 1.43 72.3 7.519
$5,000,000 - $7,499,999 15 16 93,840,844 7.7 1.32 74.6 7.389
$7,500,000 - $9,999,999 10 10 89,878,908 7.4 1.41 71.5 7.286
$10,000,000 - $14,999,999 11 12 140,569,625 11.6 1.36 73.9 7.172
$15,000,000 - $24,999,999 3 3 59,622,517 4.9 1.24 74.2 7.391
$25,000,000 - $49,999,999 2 2 60,442,352 5.0 1.24 78.2 7.355
$50,000,000 - $99,999,999 1 1 51,200,000 4.2 1.05 76.4 7.960
$100,000,000 - $149,999,999 1 1 108,000,000 8.9 1.95 54.0 6.720
$150,000,000 - $200,000,000 2 2 346,708,915. 28.5 1.47 69.8 6.973
- ----------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG. 160 163 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- ----------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE
- ------------------------------------------------------------------------------------------------------------------
WEIGHTED
WEIGHTED AVERAGE WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE AVERAGE CUT-OFF AVERAGE
MORTGAGE NUMBER OF CUT-OFF DATE OF INITIAL U/W DATE MORTGAGE
PROPERTY STATE LOANS PROPERTIES BALANCE (a) POOL BALANCE DSCR LTV RATIO RATE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Massachusetts 6 6 193,701,321 15.95% 1.56x 62.0% 6.956%
New York 4 4 193,314,921 15.92 1.35 76.6 7.054
California 19 19 120,064,884 9.88 1.22 72.7 7.687
Minnesota 3 3 112,174,946 9.24 1.93 54.7 6.766
Illinois 8 8 66,354,871 5.46 1.27 79.0 7.214
Georgia 8 8 64,749,213 5.33 1.41 75.6 7.299
Texas 11 11 53,801,343 4.43 1.36 72.5 7.498
Florida 10 10 45,021,584 3.71 1.33 75.3 7.359
Ohio 13.5 15 31,877,517 2.62 1.30 75.9 7.561
Colorado 13 13 30,703,612 2.53 1.50 73.0 7.056
Michigan 7 7 24,862,780 2.05 1.55 76.3 7.265
New Hampshire 2.5 3 24,531,689 2.02 1.35 77.9 7.003
Puerto Rico 1 1 23,465,010 1.93 1.29 69.2 7.500
Tennessee 6 6 22,488,028 1.85 1.21 72.5 7.477
Virginia 6 6 17,725,257 1.46 1.59 69.9 7.542
Maine 1 1 17,350,000 1.43 1.25 75.4 7.560
Arizona 4 4 16,279,664 1.34 1.34 76.3 7.182
Alabama 4 4 16,278,875 1.34 1.28 73.1 7.383
Wisconsin 5 5 14,187,693 1.17 1.42 63.8 7.774
Washington 2 2 13,655,602 1.12 1.27 76.9 6.773
Connecticut 2 3 13,469,532 1.11 1.22 69.5 7.517
New Jersey 2 2 12,680,098 1.04 1.54 61.9 7.303
Pennsylvania 4 4 12,207,278 1.01 1.38 80.0 7.305
Arkansas 2 2 11,572,596 0.95 1.82 63.9 6.810
Nebraska 1 1 10,546,188 0.87 1.33 70.3 7.440
Oregon 1 1 9,786,133 0.81 1.49 89.0 7.100
Hawaii 1 1 7,806,673 0.64 1.15 71.0 7.780
Kansas 1 1 7,667,610 0.63 1.28 76.7 7.390
North Carolina 3 3 6,103,214 0.50 1.50 67.6 7.330
South Carolina 2 2 5,183,304 0.43 1.52 67.5 7.639
Iowa 1 1 4,173,195 0.34 1.25 79.5 8.400
Nevada 1 1 2,744,696 0.23 1.33 74.2 7.290
Rhode Island 1 1 2,696,391 0.22 1.32 79.9 7.330
Indiana 1 1 1,644,770 0.14 2.62 53.9 7.260
Maryland 1 1 1,446,609 0.12 1.02 90.4 7.170
Missouri 1 1 1,169,426 0.10 1.33 69.4 7.750
Idaho 1 1 1,153,413 0.09 1.47 72.1 7.220
- ------------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 163 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- ------------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
GEOGRAPHIC DISTRIBUTION BY CUT-OFF DATE BALANCE
- -------------------------------------------------------------------------------
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[MAP OF AMERICA]
ME 1.43% PR 1.93% WI 1.17% AZ 1.34%
NH 2.02% GA 5.33% IL 5.46% ID 0.09%
MA 15.95% FL 3.71% MN 9.24% WA 1.12%
RI 0.22% NY 15.92% IA 0.34% OR 0.81%
CT 1.11% PA 1.01% MO 0.10% NV 0.23%
NJ 1.04% OH 2.62% AR 0.95% CA 9.88%
MD 0.12% TN 1.85% NE 0.87% HI 0.64%
VA 1.46% AL 1.34% KS 0.63%
NC 0.50% MI 2.05% TX 4.43%
SC 0.43% IN 0.14% CO 2.53%
[PIE CHART]
Other lllinois
27.46% 5.46%
Massachusetts Georgia
15.95% 5.33%
New York Texas
15.92% 4.43%
California Florida
9.88% 3.71%
Minnesota Ohio
9.24% 2.62%
- --------------
Totals may not add up due to rounding.
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PROPERTY TYPE DISTRIBUTION BY CUT-OFF DATE BALANCE
- ---------------------------------------------------------------------------------------------------------------------------------
WEIGHTED
WEIGHTED AVERAGE WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE AVERAGE AVERAGE CUT-OFF AVERAGE
MORTGAGE NUMBER OF CUT-OFF DATE OF INITIAL CUT-OFF DATE U/W DATE MORTGAGE
PROPERTY TYPE LOANS PROPERTIES BALANCE (a) POOL BALANCE BALANCE DSCR LTV RATIO RATE
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Office 32.5 33 $515,077,585 42.4% $15,608,412 1.39x 69.9% 7.17%
Multifamily 36.0 37 226,930,625 18.7 6,133,260 1.34 78.3 7.13
Anchored Retail 17.0 17 126,764,568 10.4 4,312,042 1.35 72.5 7.44
Retail 29.0 29 71,589,381 5.9 2,468,599 1.36 73.6 7.46
Mixed Use (b) 5.0 5 115,890,656 9.5 23,178,131 1.91 55.2 6.74
Hotel 22.0 22 98,810,837 8.1 4,491,402 1.50 71.1 7.60
Industrial 10.5 12 26,601,385 2.2 2,216,782 1.37 69.9 7.53
Health Care 3.0 3 19,571,339 1.6 6,523,780 1.43 75.7 7.29
Student Housing 1.0 1 6,400,000 0.5 6,400,000 1.24 65.5 6.97
Mobile Home Park 2.0 2 3,664,797 0.3 1,832,398 1.24 72.9 7.53
Nursing Home 2.0 2 3,338,761 0.3 1,669,380 2.13 66.9 7.88
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160.0 163 $1,214,639,935 100.0% $7,591,500 1.44x 70.7% 7.215%
- ---------------------------------------------------------------------------------------------------------------------------------
(a) Mixed use includes the $108mm Minneapolis City Center Loan which represents 8.89% of the pool .
</TABLE>
[THE NARRATIVE AND/OR TABULAR INFORMATION BELOW IS A FAIR AND ACCURATE
DESCRIPTION OF GRAPHIC OR IMAGE MATERIAL OMITTED FOR THE
PURPOSE OF EDGAR FILING.]
[PIE CHART]
Nusing Home Lodging
0.27% 8.14%
Anchored Retail Industrial/Warehouse
10.44% 2.19%
Multifamily Mobile Home Park
18.68% 0.30%
Office Health Care
42.41% 1.61%
Mixed Use Student Housing
9.54% 0.53%
Retail
5.89%
- -------------------------------------------------------------------------------
Totals may not add up due to rounding
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEBT SERVICE COVERAGE RATIO
- ------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE AVERAGE AVERAGE
RANGE OF MORTGAGE CUT-OFF DATE INITIAL POOL U/W CUT-OFF DATE MORTGAGE
U/W DSCR'S LOANS BALANCE (a) BALANCE DSCR LTV RATIO RATE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1.00 - 1.09x(b) 3 $53,976,461 4.4% 1.05x 77.0% 7.836%
1.10 - 1.19 9 64,290,687 5.3 1.17 75.8 7.361
1.20 - 1.29 45 263,470,431 21.7 1.25 75.1 7.399
1.30 - 1.39 35 329,867,455 27.2 1.34 74.7 7.168
1.40 - 1.49 23 72,652,599 6.0 1.45 73.4 7.383
1.50 - 1.59 20 86,543,424 7.1 1.53 73.9 7.286
1.60 - 1.69 7 190,083,351 15.6 1.60 62.8 6.953
1.70 - 1.79 5 12,066,340 1.0 1.74 64.4 7.310
1.80 - 1.89 7 27,556,988 2.3 1.85 65.2 7.464
1.90 - 1.99 1 108,000,000 8.9 1.95 54.0 6.720
2.00 - 2.99 5 6,132,199 0.5 2.42 51.8 7.436
- ------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160.0 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- ------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
(b) All three of these loans are NNN leases to investment grade tenants.
</TABLE>
O Weighted Average Current Debt Service Coverage Ratio: 1.44x
<TABLE>
<CAPTION>
CUT-OFF DATE LOAN TO VALUE RATIO (b)
- ------------------------------------------------------------------------------------------------------------
WEIGHTED
WEIGHTED AVERAGE WEIGHTED
RANGE OF NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE CUT-OFF AVERAGE
CUT-OFF DATE MORTGAGE CUT-OFF DATE INITIAL POOL U/W DATE LTV MORTGAGE
LOAN-TO-VALUE RATIOS % LOANS BALANCE (a) BALANCE DSCR RATIO RATE
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
30 - 39.99 1 $795,270 0.07% 2.28x 32.8% 7.39%
40 - 49.99 3 4,064,262 0.33 1.62 44.3 7.95
50 - 59.99 15 152,719,368 12.57 1.84 55.00 6.91
60 - 69.99 36 308,984,750 25.44 1.52 63.9 7.17
70 - 79.99 86 652,695,471 53.74 1.32 76.0 7.29
80 - 84.99 18 93,934,204 7.73 1.27 82.8 7.28
90+ (c) 1 1,446,609 0.12 1.02 90.4 7.17
- ------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG. 160 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- ------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
(b) Ratio of Cut-Off Date Balance over Appraisal Value at Origination.
(c) This is a NNN lease to an investment grade tenant.
</TABLE>
O Weighted Average Cut-off Date Loan-to-Value Ratio: 70.7%
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
REMAINING AMORTIZATION TERM (IN MONTHS)
- -------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE AVERAGE AVERAGE
RANGE OF AMORTIZATION MORTGAGE CUT-OFF DATE INITIAL POOL U/W CUT-OFF DATE MORTGAGE
TERMS (MOS.) LOANS BALANCE (a) BALANCE DSCR LTV RATIO RATE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0 - 179 31 $158,792,544 13.1% 1.38x 70.9% 7.457%
180 - 239 26 134,103,874 11.0 1.22 73.9 7.638
240 - 275 1 1,644,430 0.1 1.46 70.0 8.010
276 - 299 49 501,226,104 41.3 1.48 70.4 7.094
300 - 360 53 418,872,983 34.5 1.48 69.9 7.131
- -------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 $1,214,639,935 100.0% 1.44x 70.7% 7.215%
- -------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
<TABLE>
<CAPTION>
CURRENT MORTGAGE RATES
- -------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE AVERAGE AVERAGE
RANGE OF MORTGAGE CUT-OFF DATE INITIAL POOL U/W CUT-OFF DATE MORTGAGE
MORTGAGE RATES (%) LOANS BALANCE (a) BALANCE DSCR LTV RATIO RATE
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
6.71% - 6.99% 11 $340,174,765 28.0% 1.68x 62.0% 6.834%
7.00% - 7.49% 84 541,473,880 44.6 1.37 75.0 7.161
7.50% - 7.99% 58 308,488,274 25.4 1.28 73.1 7.642
8.00% - 8.49% 4 17,054,546 1.4 1.33 66.8 8.157
8.50% - 8.99% 2 5,879,135 0.5 1.71 62.3 8.707
9.00% - 9.49 1 1,569,336 0.1 1.46 44.6 9.020
- -------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- -------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMORTIZATION CHARACTERISTICS
- --------------------------------------------------------------------------------------------------------------
NUMBER WEIGHTED WEIGHTED WEIGHTED
OF AGGREGATE PERCENTAGE AVERAGE AVERAGE AVERAGE
MORTGAGE CUT-OFF DATE OF INITIAL U/W CUT-OFF DATE MORTGAGE
BALLOON TYPE LOANS BALANCE (a) POOL BALANCE DSCR LTV RATIO RATE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Balloon 139 $701,198,590 57.73% 1.35x 73.4% 7.386%
Fully Amortizing 18 58,732,429 4.84 1.31 73.6 7.522
ARD 3 454,708,916 37.44 1.58 66.1 6.913
- --------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG. 160 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- --------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
<TABLE>
<CAPTION>
REMAINING TERM TO MATURITY (IN MONTHS) (b)
- --------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED WEIGHTED
RANGE OF REMAINING NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE AVERAGE AVERAGE
TERM TO MATURITY MORTGAGE CUT-OFF DATE INITIAL POOL U/W CUT-OFF DATE MORTGAGE
(MOS.) LOANS BALANCE (a) BALANCE DSCR LTV RATIO RATE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
60 - 83 3 $12,526,370 1.0% 1.22x 77.8% 7.182%
84 - 119 117 868,653,238 71.5 1.41 72.1 7.165
120 - 240 40 333,460,328 27.5 1.50 66.7 7.347
- --------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- --------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
(b) "Maturity" means the stated maturity date or, with respect to any Hyper-Amortization Loan, its Anticipated
Repayment Date.
</TABLE>
<TABLE>
<CAPTION>
YEAR OF ORIGINATION
- --------------------------------------------------------------------------------------------------------------
WEIGHTED WEIGHTED WEIGHTED
NUMBER OF AGGREGATE PERCENTAGE OF AVERAGE AVERAGE AVERAGE
MORTGAGE CUT-OFF DATE INITIAL POOL U/W CUT-OFF DATE MORTGAGE
YEAR OF ORIGINATION LOANS BALANCE (a) BALANCE DSCR LTV RATIO RATE
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1997 24 $235,496,689 19.39% 1.24x 74.9% 7.58%
1998 136 979,143,246 80.61 1.48 69.7 7.13
- --------------------------------------------------------------------------------------------------------------
TOTAL\AVG.\WTD.AVG 160 $1,214,639,935 100.00% 1.44x 70.7% 7.215%
- --------------------------------------------------------------------------------------------------------------
(a) Column total may not add up due to rounding.
</TABLE>
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
WELLPOINT OFFICE COMPLEX
LOS ANGELES, CA
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
ORIGINAL PRINCIPAL BALANCE: $51,200,000
CUT-OFF DATE BALANCE: $51,200,000
ORIGINATION DATE: July 11, 1997
INTEREST RATE: 7.86%
MATURITY DATE: December 1, 2015
BORROWER/SPONSOR: T/A Warner Associates II, L.P., a special
purpose entity controlled by Ari Lerner,
Chris Ellis, and Apollo Real Estate &
Investment Fund, LC
AMORTIZATION TERM: The amoritization schedule is based off the
calendar year as follows:
7/97-12/31/98: Interest Only
1999: 35 year schedule
2000: 30 year schedule
2001: 21 year schedule
2002: 17 year schedule
2003: 15 year schedule
2004-2015: 12 year schedule
PREPAYMENT TERMS/ The loan may be prepaid in whole, but not in
DEFEASANCE/RELEASE part according to the following schedule: For
PROVISIONS: years 1-7: no prepayment; Thereafter: Yield
Maintenance; Years 5-7: Defeasance permitted
with defeasance deposit and pledge.
UP-FRONT RESERVES: Annual Replacement Reserve of $42,710;
Completion Repair Reserve of $130,925 (125%
of the recommended repair cost estimates that
owner is responsible for as per the third
party property condition report.
ONGOING RESERVES: Annual Completion Repair Reserve of $42,710.
Annual Earthquake Insurance Reserves of
$80,100.
COLLECTION ACCOUNT: Hard Lock Box
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Single asset
PROPERTY TYPE: Office
OCCUPANCY: 100%
YEAR BUILT: 1977
THE COLLATERAL: 427,100 sq.ft. office building
RENTABLE SQUARE FEET: 427,100
MAJOR TENANTS: Wellpoint Health Networks occupies 100% of
the building.
Public Rating as of 6/1/98:
S&P: BBB+
Moody's: Baa3
Lease expires in 2019 with two 5-year renewal
options at fair market rent
PROPERTY MANAGEMENT: LaSalle Partners
1997 NET OPERATING INCOME: $4,270,000
UNDERWRITTEN CASH FLOW: $4,227,290
APPRAISED VALUE: $67,000,000
APPRAISAL DATE: March 13, 1997
CUT-OFF DATE LOAN-TO-VALUE
RATIO: 76.40%
ANNUAL DEBT SERVICE: $4,024,320
UW CASH FLOW DSCR (1): 1.05x
LOAN/SQ.FT. AS OF CUT-OFF DATE: $119.88
- -------------------------------------------------------------------------------
(1) Based on underwritten cash flow
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
53 STATE STREET
BOSTON, MA
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
ORIGINAL PRINCIPAL BALANCE: $165,000,000
CUT-OFF DATE BALANCE: $164,617,231
ORIGINATION DATE: April 1, 1998
INTEREST RATE: 6.91%
ANTICIPATED REPAYMENT DATE March 31, 2008
("ARD):
MATURITY DATE: March 31, 2023
BORROWER/SPONSOR: WFP 53 State Street Co. Limited Partnership,
a special purpose entity controlled by World
Financial Properties, L.P.
AMORTIZATION TERM: 25 years
HYPERAMORITIZATION: From and after the ARD, the interest rate
increases to 8.91%, with such increased
interest being added to the unpaid principal
balance of the Loan and all excess cash flow
will be applied to pay down the outstanding
principal balance of the Loan
PREPAYMENT TERMS/ Years 1-4: Not Prepayable Years 5-9.5: Yield
DEFEASANCE/RELEASE Maint. Years 9.5 - maturity: Prepayable
PROVISIONS: without penalty. Defeasance is permitted from
about July 2000 by pledging U.S. Government
direct or indirect obligations.
UP-FRONT RESERVES: $592,500 for capital projects $4,407,500 for
leasing $2,277,903 for insurance & taxes
ONGOING ANNUAL $168,000 for replacement reserve
RESERVES: $3,290,000 for leasing for 1st year
$1,832,000 for leasing, thereafter
COLLECTION ACCOUNT: Hard Lock Box
MEZZANINE DEBT: $25 million (partnership loan)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Single asset
PROPERTY TYPE: Office
WEIGHTED AVERAGE OCCUPANCY: 99%
YEAR BUILT: 1984
THE COLLATERAL: 40 story office building
RENTABLE SQUARE FEET: 1,120,162 sf
MAJOR TENANTS: Lease
Name Sq.Ft. Expiration
---- ------ ----------
Goodwin, Procter & Hoar 283,937 4/2006
Fidelity Properties 169,943 6/2006
Choate, Hall & Stewart 126,195 8/2005
Boston Consulting Group* 123,388 6/2008
First Data 113,898 3/1999
* 3,360 sf expires 6/30/00
PROPERTY MANAGEMENT: World Financial Properties, L.P.
1997 NET OPERATING INCOME: $22,287,000
UNDERWRITTEN CASH FLOW: $22,224,000
APPRAISED VALUE: $265,000,000
APPRAISAL DATE: January 1, 1998
CUT-OFF DATE LOAN-TO-VALUE
RATIO: 62%
ANNUAL DEBT SERVICE: $13,880,760
UW CASH FLOW DSCR: (1) 1.60x
LOAN/SQ.FT. AS OF CUT-OFF DATE: $146.96
- -------------------------------------------------------------------------------
(1) Based on underwritten cash flow
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
375 HUDSON STREET
NEW YORK, NY
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
ORIGINAL PRINCIPAL BALANCE: $183,000,000
CUT-OFF DATE BALANCE: $182,091,684
ORIGINATION DATE: January 30, 1998
INTEREST RATE: 7.03%
ANTICIPATED REPAYMENT DATE February 1, 2008
("ARD):
MATURITY DATE: February 1, 2013
BORROWER/SPONSOR: TST 375 Hudson,LLC, a special-purpose entity
controlled by Tishman, Speyer/Travelers Real
Estate Venture, L.P.
AMORTIZATION TERM: The Loan will amortize for the first five (5)
years of the term on a monthly payment of
$1,296,910, implying a twenty five (25) year
schedule and thereafter on a monthly payment
of $1,539,742 implying a seventeen (17) year
schedule on the original principal balance.
HYPERAMORITIZATION: From and after the ARD, the interest rate
increases to 9.03%, with such increased
interest being added to the unpaid principal
balance of the Loan and all excess cash flow
will be applied to pay down the oustanding
principal balance of the Loan.
PREPAYMENT TERMS/ Prepayment is permitted in whole only after
DEFEASANCE/RELEASE August 1, 2007, without payment of a penalty.
PROVISIONS: No prepayment is permitted prior to such
date. Defeasance is permitted from and after
February 1, 2002 to February 1, 2007 by
pledging U.S. Government obligations.
UP-FRONT RESERVES: $324,423 tax and insurance escrow
ONGOING RESERVES: $1,000,000 annually, in monthly payments of
$83,333 for tenant improvements.
Monthly payments for insurance and property
taxes
COLLECTION ACCOUNT: Lender will have exclusive control over
lock-box account from and after earlier of
default and February 1, 2007.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Single asset
PROPERTY TYPE: Office
WEIGHTED AVERAGE OCCUPANCY: 100%
YEAR BUILT: 1987
THE COLLATERAL: 973,435 square feet of office and retail in
an 18-story tower with two levels of parking.
RENTABLE SQUARE FEET: Office: 912,542
Retail/Basement: 60,893
------
Total: 973,435
MAJOR TENANTS: Lease
Tenant NRSF Expiration
------ ---- ----------
Saatchi & Saatchi NA 769,768 Jan 2013
Penguin Books 146,433 Feb 2010
West Publishing 47,495 Oct 2004
PROPERTY MANAGEMENT: Tishman Speyer Properties, LP
1997 NET OPERATING INCOME: $21,277,320
UNDERWRITTEN CASH FLOW: $21,016,440
APPRAISED VALUE: $237,000,000
APPRAISAL DATE: February 12, 1998
CUT-OFF DATE LOAN-TO-VALUE
RATIO: 77%
ANNUAL DEBT SERVICE: $15,562,923
DSCR (1): 1.35x
LOAN/SQ.FT. AS OF CUT-OFF DATE: $187
- -------------------------------------------------------------------------------
(1) Based on underwritten cash flow
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
MINNEAPOLIS CITY CENTER
MINNEAPOLIS, MN
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
ORIGINAL PRINCIPAL BALANCE: $108,000,000
CUT-OFF DATE BALANCE: $108,000,000
ORIGINATION DATE: May 21, 1998
INTEREST RATE: 6.72%
ANTICIPATED REPAYMENT DATE May 31, 2008
("ARD):
MATURITY DATE: May 31, 2028
BORROWER/SPONSOR: Owner & Mortgagor is City Center Associates
Limited Partnership; Borrower and holder of
subordinate wrap mortgage and option is MCC
Mortgage LP; Sponsor is Brookfield Properties
Corporation
AMORTIZATION TERM: The term of the loan is thirty (30) years.
Equal monthly payments of principal and
interest are required in an amount sufficient
to fully amortize the Loan over a thirty (30)
year schedule
HYPERAMORITIZATION: From and after the ARD, the interest rate
increases to the greater of 8.72%, or 102
basis points above the then prevailing yield
to maturity on the "on the run" 20-year US
Government Treasury security. Additional
interest in excess of the initial interest
rate shall be currently payable only to the
extent of excess cash flow and shall
otherwise accrue.
PREPAYMENT TERMS: The Loan may be prepaid in whole, but not in
part, on any scheduled payment date,
according to the following schedule:
Years 1-4: greater of yield maintenance
payment or 5% of the outstanding principal
balance.
Years 5-9.5: greater of yield maintenance
payment or 2% of the outstanding principal
balance.
Thereafter fully prepayable without penalty.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
SINGLE ASSET/PORTFOLIO: Single asset
PROPERTY TYPE: Mixed Use (Office, Retail, Hotel, Garage)
WEIGHTED AVERAGE LEASED: 99%
YEAR BUILT: 1982
THE COLLATERAL: Minneapolis City Center, 1,582,000 sf of
office, retail, and storage, 687-car,
six-level parking garage, and land on which a
602-room Marriott Hotel is constructed
subject to a ground lease of which the
borrower is the lessor
RENTABLE SQUARE FEET: Office: 1,081,000
Retail: 370,000
Storage: 131,000
-------
Total: 1,582,000
MAJOR TENANTS: Lease
Tenant NRSF Expiration
------ ---- ----------
Target (Dayton-Hudson) 675,064 11/2013
International Multifoods 133,737 2/2003
Gray, Plant & Mooty 72,832 3/1999
Marshall's (Melville
Corp. GTEG) 50,163 1/2003
PROPERTY MANAGEMENT: Brookfield Management Services LLC
1997 NET OPERATING INCOME: $15,493,928
UNDERWRITTEN CASH FLOW: $15,545,314
APPRAISED VALUE: $200,000,000
APPRAISAL DATE: October 15, 1997
CUT-OFF DATE LOAN-TO-VALUE
RATIO: 54%
ANNUAL DEBT SERVICE: $8,380,003
UW CASH FLOW DSCR: (1) 1.86x
LOAN/SQ.FT. AS OF CUT-OFF DATE: $68.27
- -------------------------------------------------------------------------------
(1) Based on underwritten cash flow
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
<PAGE>
Information in this material regarding any assets backing any securities
discussed herein supersedes all prior information regarding such assets. All
information in this Term Sheet, whether regarding the assets backing any
securities discussed herein or otherwise, will be superseded by the information
contained in any final prospectus for any securities actually sold to you.
- -------------------------------------------------------------------------------
Mortgage Capital Funding, Inc.
Multifamily/Commercial Mortgage Pass-Through Certificates, Series 1998-MC2
Classes A-1, A-2, B, C, D, E & X
$1,100,000,000 (approximate)
- -------------------------------------------------------------------------------
MINNEAPOLIS CITY CENTER
MINNEAPOLIS, MN
(...CONTINUED...)
- -------------------------------------------------------------------------------
LOAN INFORMATION
- -------------------------------------------------------------------------------
RESERVES: Tenant Improvement/Leasing Commissions:
- $5,000,000 required at closing, of which
$2,000,000 is in the form of a Letter of
Credit and $3,000,000 is in cash
- Replenished at$125,000 per month as and if
TI/LC reserve fund reduces below $5,000,000
Repair Reserve:
- $309,000 funded at closing
- $12,500 monthly deposits beginning 6/1/98
- $15,000 monthly deposits from
1/1/99-12/31/99
Replacement Reserve:
- $26,367 monthly deposits required
Debt Service Reserve:
- First Reserve of $1,000,000 (or Letter of
Credit) required at closing
- Second Reserve of $1,270,000 (or Letter of
Credit) required at closing, and is
released when loan balance falls to
$98,000,000
- Third Reserve may be required if Hotel
defaults under Hotel lease or any Hotel
leasehold mortgage, in amount by which loan
balance exceeds $98,000,000 plus Second
Reserve
- Second and Third Reserves may be replaced
by sponsor guaranty if Sponsor credit
rating exceeds BBB- IBCA
Tax and Insurance Reserve:
- $646,685 funded
- $530,460 funded monthly initially
Liquidity Letter of Credit:
Letter of Credit in the amount of six month
debt service is required to be provided for
the period beginning six months prior to
earliest date on which Borrower may exercise
the purchase option for the property and
ending on the date six months after the last
date upon which the Mortgagor is obligated to
deed the property under the purchase option
COLLECTION Property revenue is deposited into a clearing
ACCOUNTS: account controlled by the wrap mortgagee
(i.e., the borrower) and then swept into the
various borrower or mortgagor deposit
accounts - debt service, tenant
improvement/leasing commission, real estate
tax/insurance, etc. The deposit accounts are
controlled by the first mortgagee.
SUBORDINATE DEBT: Subordinate wrap mortgage, together with
subordinated option to purchase property,
held by borrower, with principal balance of
$244,000,000 and accrued interest through
12/31/97 of $299,817,247.
MEZZANINE DEBT: $25 million, held by an affiliate of the
Borrower
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PROPERTY INFORMATION
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
This material is for your private information and we are not soliciting any
action based upon it. This material is not to be construed as an offer to sell
or the solicitation of any offer to buy any security in any jurisdiction where
such an offer or solicitation would be illegal. This material is based on
information that we consider reliable, but we do not represent that it is
accurate or complete and it should not be relied upon as such. By accepting
this material the recipient agrees that it will not distribute or provide the
material to any other person. The information contained in this material may be
based on assumptions regarding market conditions and other matters as reflected
therein. We make no representations regarding the reasonableness of such
assumptions or the likelihood that any of such assumptions will coincide with
actual market conditions or events, and this material should not be relied upon
for such purposes. We and our affiliates, officers, directors, partners and
employees, including persons involved in the preparation or issuance of this
material may, from time to time, have long or short positions in, and buy and
sell, the securities mentioned therein or derivatives thereof (including
options). This material may be filed with the Securities and Exchange
Commission (the "SEC") and incorporated by reference into an effective
registration statement previously filed with the SEC under Rule 415 of the
Securities Act of 1933, including in cases where the material does not pertain
to securities that are ultimately offered for sale pursuant to such
registration statement. Information contained in this material is current as of
the date appearing on this material only. Information in this material
regarding any assets backing any securities discussed herein supersedes all
prior information regarding such assets. All information in this Term Sheet,
whether regarding the assets backing any securities discussed herein or
otherwise, will be superseded by the information contained in any final
prospectus for any securities actually sold to you.
This material is furnished to you by Citibank, N.A. and J.P. Morgan Securities
Inc. and not by the issuer of the securities. Citibank, N.A. and J.P. Morgan
Securities Inc. are acting as co-lead underwriters and not acting as agents for
the issuer or its affiliates in connection with the proposed transaction. The
issuer has not prepared or taken part in the preparation of these materials.
