<PAGE>
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of Report: May 27, 1998
- --------------------------------
(Date of earliest event reported)
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC.
------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-65816 13-3411414
- --------------- ----------------------- -------------------------
(State or Other (Commission File Number) (I.R.S. Employer
Jurisdiction Identification No.)
of Incorporation)
245 Park Avenue, New York, NY 10167
----------------------------------------
(Address of Principal executive offices)
Registrant's telephone number, including area code: (212) 272-2000
ITEM 5. OTHER EVENTS
Attached as Exhibit 99 to this Current Report are certain materials (the
"Collateral and Structural Term Sheets") furnished to the Registrant by Bear,
Stearns & Co. Inc., the underwriter (the "Underwriter"), in respect of the
Registrant's proposed offering of Commercial Mortgage Pass-Through
Certificates, Series 1998-C1 (the "Certificates"). The Certificates will be
offered pursuant to a Prospectus Supplement (together, the "Prospectus"), which
will be filed with the Commission pursuant Rule 424 under the Securities Act of
1933, as amended (the "Act"). The Certificates will be registered pursuant to
the Act under the Registrant's Registration Statement on Form S-3 (No.
33-65816) (the "Registration Statement"). The Registrant hereby incorporates
the Collateral and Structural Term Sheets by reference in the Registration
Statement.
The Collateral and Structural Term Sheets were prepared solely by the
Underwriter, and the Registrant did not prepare or participate in the
preparation of the Collateral and Structural Term Sheets.
Any statement of information contained in the Collateral and Structural
Term Sheets shall be modified and superseded for purposes of the Prospectus and
the Registration Statement by statements or information contained in the
Prospectus.
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
Exhibit 99 Collateral and Structural Term Sheets.
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on behalf of the Registrant
by the undersigned thereunto duly authorized.
BEAR STEARNS COMMERCIAL MORTGAGE
SECURITIES INC.
BY: /s/ James G. Reichek
_____________________________
Name: James G. Reichek
Title: Executive Vice President
Date: May 27,1998
<PAGE>
EXHIBIT INDEX
Item 601(a) of Regulation S-K
Exhibit No. Description Page
- ---------- ------------ ----
99 Collateral and Structural Term Sheets
<PAGE>
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES AND OTHER
INFORMATION
The information contained in the attached materials (the "Information") may
include various forms of performance analysis, security characteristics and
securities pricing estimates for the securities addressed. Please read and
understand this entire statement before utilizing the Information. The
Information is provided solely by Bear Stearns, not as agent for any issuer,
and although it may be based on data supplied to it by an issuer, the issuer
has not participated in its preparation and makes no representations regarding
its accuracy or completeness. Should you receive Information that refers to
the "Statement Regarding Assumptions and Other Information", please refer to
this statement instead.
The Information is illustrative and is not intended to predict actual results
which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to significant
factors that may prove not to be as assumed. You should understand the
assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly depending
upon the value of the inputs given. Inputs to these models include but are not
limited to: prepayment expectations (econometric prepayment models, single
expected lifetime prepayments or a vector of periodic prepayments), interest
rate assumptions (parallel and nonparallel changes for different maturity
instruments), collateral assumptions (actual pool level data, aggregated pool
level data, reported factors or imputed factors), volatility assumptions
(historically observed or implied current) and reported information (paydown
factors, rate resets and trustee statements). Models used in any analysis may
be proprietary making the results difficult for any third party to reproduce.
Contact your registered representative for detailed explanations of any
modelling techniques employed in the Information.
The Information addresses only certain aspects of the applicable security's
characteristics and thus does not provide a complete assessment. As such,
the Information may not reflect the impact of all structural characteristics
of the security, including call events and cash flow priorities at all
prepayment speeds and/or interest rates. You should consider whether the
behavior of these securities should be tested at assumptions different from
those included in the Information. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances. Any investment decision should be based only on
the data in the prospectus and the prospectus supplement or private placement
memorandum (Offering Documents) and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. Contact your
registered representative for Offering Documents, current Information or
additional materials, including other models for performance analysis, which
are likely to produce different results, and any further explanation regarding
the Information.
Any pricing estimates Bear Stearns has supplied at your request (a) represent
our view, at the time determined, of the investment value of the securities
between the estimated bid and offer levels, the spread between which may be
significant due to market volatility or illiquidity, (b) do not constitute
a bid by any person for any security, (c) may not constitute prices at which
the securities could have been purchased or sold in any market, (d) have
not been confirmed by actual trades, may vary from the value Bear Stearns
assigns any such security while in its inventory, and may not take into
account the size of a position you have in the security, and (e) may have been
derived from matrix pricing that uses data relating to other securities
whose prices are more readily ascertainable to produce a hypothetical price
based on the estimated yield spread relationship between the securities.
General Information: The data underlying the Information has been obtained
from sources that we believe are reliable, but we do not guarantee the
accuracy of the underlying data or computations based thereon. Bear Stearns
and/or individuals thereof may have positions in these securities while the
Information is circulating or during such period may engage in transactions
with the issuer or its affiliates. We act as principal in transactions with
you, and accordingly, you must determine the appropriateness for you of such
transactions and address any legal, tax or accounting considerations
applicable to you. Bear Stearns shall not be a fiduciary or advisor unless we
have agreed in writing to receive compensation specifically to act in such
capacities. If you are subject to ERISA, the Information is being furnished on
the condition that it will not form a primary basis for any investment decision.
The Information is not a solicitation of any transaction in securities which
may be made only by prospectus when required by law, in which event you may
obtain such prospectus from Bear Stearns.
<PAGE>
5/27/98
NEW ISSUE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC.
1998 - C1
$655,773,143 PUBLICLY OFFERED CERTIFICATES
SEQUENTIAL PAY REMIC CLASSES
----------------------------------------------------------------------------------------------------------------------------------
INITIAL APPROX. EXPECTED
AGGREGATE APPROX. APPROX. APPROX WEIGHTED PRINCIPAL FINAL
RATINGS CREDIT CERTIFICATE DOLLAR PASS-THROUGH AVERAGE LIFE WINDOW DISTRIBUTION PRICE TALK
CLASS DCR/MOODYS SUPPORT BALANCE PRICE RATE (YRS.)* (YRS.)* DATE (BPS)**
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 AAA/Aaa 23.50% $129,564,000 101-00 6.32% 5.8 0.0 - 9.3 10/16/07 55 - 58
----------------------------------------------------------------------------------------------------------------------------------
A-2 AAA/Aaa 23.50% $417,211,428 101-00 6.40% 9.8 9.3 - 10.0 6/16/08 74 - 78
----------------------------------------------------------------------------------------------------------------------------------
B AA/Aa2 18.50% $35,736,956 101-00 6.54% 12.1 10.0 - 14.5 12/16/12 88 - 93
----------------------------------------------------------------------------------------------------------------------------------
C A/A2 14.00% $32,163,260 100-24 6.75% 14.5 14.5 - 14.5 1/16/13 110 - 115
----------------------------------------------------------------------------------------------------------------------------------
D BBB/Baa2 9.50% $32,163,260 98-00 6.75% 14.7 14.5 - 14.8 4/16/13 140 - 150
----------------------------------------------------------------------------------------------------------------------------------
E BBB-/Baa3 8.25% $8,934,239 94-30 6.75% 14.9 14.8 - 14.9 5/16/13 175 - 185
----------------------------------------------------------------------------------------------------------------------------------
X, F-K Not Offered
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* ASSUMING NO PREPAYMENTS (OTHER THAN ON THE ANTICIPATED REPAYMENT DATE,
IN THE CASE OF THE ONE ARD LOAN), MODIFICATIONS, LOSSES, EXTENSIONS,
CLEAN-UP CALLS AND THAT ALL LOANS BALLOON AT MATURITY OR ANTICIPATED
REPAYMENT DATE.
------------------------------------------------------------------------------
** WILL BE PRICED OFF OF THE INTERPOLATED TREASURY CURVE.
------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
SETTLEMENT DATE: On or about June 29, 1998.
COLLATERAL: 146 Loans: approximately 32% retail-anchored, 17% office, 14% multifamily, 11%
industrial/warehouse, 6% hotel.
WA DSCR / LTV: 1.62X / 63.8% AT THE CUT-OFF DATE (51.3% AT MATURITY).
PCT. OF LOANS WITH DSCR less than 1.25X: 0.00%
PCT. OF LOANS WITH DSCR less than 1.30X: 5.94%
PCT. OF LOANS WITH LTV more than 80%: 0.00%
PCT. OF LOANS WITH LTV more than 75%: 7.51%
PCT. OF LOANS WITH MATURITY LTV more than 75%: 0.00%
PCT. OF LOANS WITH MATURITY LTV more than 70%: 1.64%
CALL PROTECTION: 88.9% of the Mortgages have Lockout/Defeasance through Maturity.
94.7% of the Mortgages have Lockout/Defeasance through 0 - 3 months
prior to Maturity.
100.0% of the Mortgages have Lockout/Defeasance and/or Yield
Maintenance through 0 - 6 months prior to Maturity.
TRADING: COMMERCIAL MORTGAGE:
JIM HIGGINS/KEITH FLOOD/CRAIG SEDMAK JIM REICHEK
(212) 272-5451 (212) 272-2345
</TABLE>
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
TABLE OF CONTENTS
PAGE
----
I CREDIT SUPPORT STRUCTURE 1
II TRANSACTION SUMMARY 2
III CERTIFICATE STRUCTURE SUMMARY 3-4
IV CALL PROTECTION 6-8
V MORTGAGE LOAN/COLLATERAL SUMMARY 9-15
VI TEN LARGEST LOANS 16-18
VII DETAILED LOAN DESCRIPTION 19
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
CREDIT SUPPORT STRUCTURE
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS SIZE AS A
PERCENT OF
APPROXIMATE PRINCIPAL AND INITIAL AGGREGATE CUT-OFF
INITIAL CREDIT INTEREST-ONLY INTEREST CERTIFICATE INITIAL DATE BALANCE OF
SUPPORT CERTIFICATES CERTIFICATES BALANCE RATINGS (1) MORTGAGE LOANS
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A-1 $129,564,000 ("Aaa"/"AAA") 18.13%
23.50% Class A-2 $417,211,428 ("Aaa"/"AAA") 58.37%
18.50% Class B $35,736,956 ("Aa2"/"AA") 5.00%
14.00% Class X Class C $32,163,260 ("A2"/"A") 4.50%
9.50% $714,739,121 Class D $32,163,260 ("Baa2"/"BBB") 4.50%
8.25% (Initial Notional Amount) Class E $8,934,239 ("Baa3"/"BBB-") 1.25%
6.50% Not Offered Class F $12,507,935 Not Offered 1.75%
4.75% Class G $12,507,935 Not Offered 1.75%
4.00% Class H $5,360,543 Not Offered 0.75%
1.50% Class I $17,868,478 Not Offered 2.50%
0.85% Class J $4,645,804 Not Offered 0.65%
Class K $6,075,283 Not Offered 0.85%
--------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Ratings: Moody's/DCR
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
RATING AGENCY INVESTOR CALLS:
DCR Friday, May 29, 1998 11:00am EST
Moody's Monday, June 1, 1998 11:00am EST
BEAR STEARNS
1
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
TRANSACTION SUMMARY
<S> <C>
DEPOSITOR: Bear Stearns Commercial Mortgage Securities Inc.
OFFERED CERTIFICATES: Class A-1 and Class A-2 (together the "Class A Certificates"), Class B, Class C, Class D, Class E.
LOAN SELLER: Bear, Stearns Funding, Inc.
RATING AGENCIES: Duff & Phelps Credit Rating Company ("DCR") / Moody's Investors Service ("Moodys").
LEGAL STRUCTURE: Sequential pay REMIC classes rated AAA/Aaa through BBB-/Baa3 offered.
CUT-OFF DATE: June 1, 1998.
SETTLEMENT DATE: On or about June 29, 1998.
DISTRIBUTION DATE: Monthly on the 16th or the next business day. The first Distribution Date will occur in July 1998.
DELAY DAYS: 15.
SERVICER: BancOne Mortgage Capital Markets, LLC
SPECIAL SERVICER: AMRESCO Management, Inc.
TRUSTEE: LaSalle National Bank
FISCAL AGENT: ABN AMRO Bank N.V.
ERISA: Classes A-1, and A-2, may qualify for certain exemptions from the plan asset rules of ERISA.
SMMEA ELIGIBILITY: The Offered Certificates will not constitute "mortgage related securities" within the meaning
of the Secondary Mortgage Market Enhancement Act of 1984 ("SMMEA").
OPTIONAL TERMINATION: 1% Clean-Up Call.
CERTIFICATE REGISTRATION: Each Class of Offered Certificates will be represented by one or more global Certificates registered
in the name of Cede & Co., as nominee of the DTC.
PRICING SPEED: 0% CPR (assuming the Anticipated Repayment Date ("ARD") Loan prepays on its Anticipated Repayment
Date).
UNDERWRITER: Bear, Stearns & Co. Inc.
</TABLE>
2
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
CERTIFICATE STRUCTURE SUMMARY
DISTRIBUTION OF The Available Distribution Amount will be
PRINCIPAL AND applied as follows: (i) accrued and unpaid
INTEREST: interest to the Class A-1, A-2 Certificates and
an interest-only class (herein not offered), pro
rata; (ii) principal to the Class A Certificates
in reduction of their Certificate Balances:
first to the Class A-1 Certificates, then to the
Class A-2 Certificates in each case until their
respective principal balances have been reduced
to zero (provided that the Class B Certificates
remain outstanding, otherwise, pro rata); (iii)
reimbursement of any Collateral Support Deficit
previously allocated to the Class A
Certificates, if any, pro rata, until reimbursed
in full; (iv) accrued and unpaid interest to the
Class B Certificates; (v) principal to the Class
B Certificates until the Class B Certificate
Balance has been reduced to zero; (vi)
reimbursement of any Collateral Support Deficit
previously allocated to the Class B
Certificates, if any, pro rata, until reimbursed
in full; and (vii) distributions of interest and
then principal sequentially to the Class C
through K Certificates in the same manner as the
Class B Certificates described above. See pages
S-78 through S-80 of the preliminary Prospectus
Supplement.
ALLOCATION Losses from any Mortgage Loan will generally be
OF LOSSES: allocated in reverse alphabetical order starting
with Class K. Any losses allocable to the Class
A Certificates will be allocated pro rata. See
pages S-83 through S-85 of the preliminary
Prospectus Supplement.
REPORTS TO Based on information provided in monthly reports
CERTIFICATEHOLDERS: prepared by the Servicer and the Special
Servicer, the Trustee will prepare and forward
on each Distribution Date to each
Certificateholder and, if requested, any
potential investors in the Certificates a
monthly Distribution Date Statement and a loan
level report.
In addition, commencing in August 1998, the
Servicer is required to deliver to the Trustee
prior to each Distribution Date, and the Trustee
is required to deliver to each Certificateholder
and, if requested, any potential investors in
the Certificates, on such Distribution Date (a)
the following two Commercial Real Estate
Secondary Market and Securitization Association
("CSSA") data files: (i) the "CSSA Loan Periodic
Update File" and (ii) to the extent received
from the Servicer, the "CSSA Property Data File"
and (b) the following six reports: a
"Comparative Financial Status Report," a
"Delinquent Loan Status Report," a "Historical
Loan Modification Report," a "Historical Loss
Estimate Report," an REO Status Report" and a
"Watch List," each containing the information
described under "Description of the
Certificates-Reports to Certificateholders;
Available Information."
In addition, the Servicer is required to deliver
on an annual basis an "Operating Statement
Analysis Report" and an "NOI Adjustment
Worksheet" with respect to the Mortgage Loans.
Such reports will be made available to
Certificateholders upon request.
See pages S-88 through S-91 of the preliminary
Prospectus Supplement.
3
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
CERTIFICATE STRUCTURE SUMMARY (CONTINUED)
REPRESENTATIONS AND The Mortgage Loan Seller will make certain
WARRANTIES: representations and warranties with respect to
each Mortgage Loan. See pages S-63 through S-72
of the preliminary Prospectus Supplement.
SERVICER ADVANCING: The Servicer will be required to make (i) P & I
Advances (excluding principal Balloon Payments
and any excess interest on the ARD Loan) and
(ii) Servicing Advances, in each case through
liquidation of the related Mortgage Loan, unless
such Advances are determined by the Servicer to
be Nonrecoverable Advances. In addition, P & I
Advances may be reduced for any Appraisal
Reductions that may occur (see section below).
See pages S-85 through S-88 of the preliminary
Prospectus Supplement.
APPRAISAL An appraisal will be obtained by the Special
REDUCTIONS: Servicer if a Mortgage Loan becomes 120 days
delinquent, or upon the occurrence of certain
other events. An Appraisal Reduction may result,
which would have the effect of reducing the
amount of P & I Advances made by the Servicer
and the voting rights of the most subordinate
Class of Certificates then outstanding. See
pages S-85 through S-86 and S-101 through S-103
of the preliminary Prospectus Supplement.
DEFEASANCE: The terms of 95.9% of the Mortgage Loans grant
the related borrower the right at any time
commencing generally three to four years after
origination to obtain the release of the lien of
the Mortgage on the related Mortgaged Property
by substituting for such Mortgaged Property, as
collateral for the related Mortgage Note, U.S.
Treasury securities which provide for payments
on or prior to each Due Date and the maturity
date or Anticipated Repayment Date, as the case
may be, of amounts at least equal to the amounts
which would have been payable on each such date
under the terms of the related Mortgage Loan.
See page S-42 of the preliminary Prospectus
Supplement.
4
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED
BY THE DESCRIPTION OF THE COLLATERAL IN THE PROSPECTUS
SUPPLEMENT.
5
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
PREPAYMENT PROTECTION ON THE MORTGAGE LOANS
AGGREGATE
NUMBER OF CUT-OFF DATE % OF INITIAL
CALL PROTECTION DESCRIPTION LOANS BALANCE POOL BALANCE
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Loans Locked-out through Maturity 125 $635,266,157 88.88%
Loans Locked-out through 1-3 months prior to Maturity 10 $41,678,650 5.83%
Loans Locked-out through 4-6 months prior to Maturity 2 $8,500,000 1.19%
Loans with yield maintenance through Maturity 2 $9,435,216 1.32%
Loans with yield maintenance through 1-3 months prior to Maturity 3 $14,659,699 2.10%
Loans with yield maintenance through 4-6 months prior to Maturity 4 $5,199,399 0.73%
--------------------------------------------------------------------------------------------------------------------
TOTALS 146 $714,739,121 100.00%
</TABLE>
6
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
<TABLE>
<CAPTION>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
PERCENTAGE OF REMAINING POOL BALANCE SUBJECT TO PREPAYMENT RESTRICTIONS
(DOLLAR AMOUNTS EXPRESSED IN MILLIONS)
IPB OUTSTANDING PREPAYMENT RESTRICTIONS APPLICABLE TO UPB OUTSTANDING PREPAYABLE WITHOUT PREMIUM
ON EACH ANNIVERSARY OF THE CUT-OFF DATE OR CHARGE
IPB OUTSTANDING LOCKOUT YIELD MAINTENANCE CHARGES
----------------------------------------------------------------------------------------------------------------------------------
DATE AMOUNT % IPB AMOUNT % UPB AMOUNT % UPB AMOUNT % UPB
<S> <C> <C> <C> <C> <C> <C> <C> <C>
June 1998 $714.70 100.0% $705.30 98.7% $9.40 1.3% $0.00 0.0%
June 1999 $706.40 98.8% $697.00 98.7% $9.30 1.3% $0.00 0.0%
June 2000 $697.50 97.6% $688.30 98.7% $9.20 1.3% $0.00 0.0%
June 2001 $687.70 96.2% $672.90 97.8% $14.80 2.1% $0.00 0.0%
June 2002 $677.20 94.7% $662.60 97.8% $14.50 2.1% $0.00 0.0%
June 2003 $665.90 93.2% $639.90 96.1% $26.00 3.9% $0.00 0.0%
June 2004 $653.70 91.5% $628.20 96.1% $25.50 3.9% $0.00 0.0%
June 2005 $636.90 89.1% $610.90 95.9% $26.00 4.1% $0.00 0.0%
June 2006 $622.80 87.1% $597.40 95.9% $25.40 4.1% $0.00 0.0%
June 2007 $607.60 85.0% $582.90 95.9% $9.30 1.5% $15.40 2.5%
June 2008 $161.90 22.6% $160.80 99.3% $1.10 0.7% $0.00 0.0%
June 2009 $157.10 22.0% $156.20 99.4% $0.90 0.6% $0.00 0.0%
June 2010 $149.70 20.9% $149.00 99.6% $0.70 0.4% $0.00 0.0%
June 2011 $144.20 20.2% $143.80 99.7% $0.40 0.3% $0.00 0.0%
June 2012 $138.30 19.4% $138.20 99.9% $0.10 0.0% $0.10 0.1%
June 2013 $0.00 0.0% $0.00 0.0% $0.00 0.0% $0.00 0.0%
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
As used above, "IPB" means Initial Pool Balance.
As used above, "UPB" means aggregate unpaid principal balance of all Mortgage
Loans.
7
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
PREPAYMENT PROTECTION ON THE MORTGAGE LOANS
(DOLLAR AMOUNTS IN MILLIONS)
[BAR GRAPHIC]
8
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
MORTGAGE LOAN/COLLATERAL SUMMARY
MORTGAGE POOL: The Mortgage Pool will consist of 106
commercial, 32 multifamily and 8 mobile-home
community fixed-rate Mortgage Loans with an
Initial Pool Balance of approximately
$714,739,121 See pages S-39 through S-73 for
more information on the Mortgage Loans. All
statistics presented below and on the
following pages are approximate and are based
on the assumed composition of the Mortgage
Pool.
CUT-OFF BALANCE: $714,739,121.
AVERAGE LOAN SIZE: $4,895,473.
WA GROSS COUPON: 7.279%.
WA DSCR: 1.62x.
WA LTV AT CUT-OFF: 63.8%.
WA LTV AT MATURITY: 51.3%.
WA LOAN MATURITY: Approximately 134 months.
PROPERTY LOCATIONS: Properties are located in 28 states with the
largest concentrations in California (27.4%), New
York (16.5%), and Florida (8.9%).
LARGEST LOANS: The largest Mortgage Loan represents approximately
3.35% of the Initial Pool Balance; the three
largest Mortgage Loans represent 9.67%; the ten
largest Mortgage Loans represent 25.32%.
SPONSOR CONCENTRATIONS: Loans made to affiliates of (The Ernest S. Rady
Family Trust) represent, in the aggregate, 12.21%
of the Initial Pool Balance. There are no other
sponsor concentrations in excess of 5% of the
Initial Pool Balance.
REMAINING TERMS TO Approximately 72.8% of the Mortgage Loans have
MATURITY: remaining terms to maturity/ARD varying between
71-120 months, 0.4% of the Mortgage Loans have
remaining terms to maturity/ARD varying between
121-140 months, and the remaining 26.8% of the
mortgage Loans have remaining terms to maturity/ARD
varying between 161-180 months.
AMORTIZATION Approximately 96.6% of the Mortgage Loans require
CHARACTERISTICS: balloon payments at maturity or, in the case of 1
loan representing approximately 1.3% of the Initial
Pool balance, Anticipated Repayment Date; the
remaining 2.0% of the Mortgage Loans are fully
amortizing.
SINGLE PURPOSE ENTITIES: 145 Mortgage Loans of the 146 Mortgage Loans,
representing more than 99% of the Initial Pool
Balance are loans to single purpose entities.
INTEREST ACCRUAL PERIOD: Approximately 96.6% of the Mortgage Loans accrue
interest on a Actual/360 basis; the remaining 3.4%
of the Mortgage Loans accrue interest on an 30/360
basis.
9
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
MORTGAGE LOAN/COLLATERAL SUMMARY (CONTINUED)
PROPERTY NUMBER NUMBER OF AGGREGATE % OF
TYPE OF LOANS PROPERTIES CUT-OFF DATE INITIAL
BALANCE POOL
BALANCE
-------------------------------------------------------------------------
Retail, Anchored 30 30 $228,775,963 32.01%
Office 26 26 $123,160,731 17.23%
Multifamily 32 43 $100,791,477 14.10%
Industrial/Warehouse 18 24 $81,568,383 11.41%
Hotel 6 6 $43,316,967 6.06%
Retail, Unanchored 10 10 $31,139,672 4.36%
Mobile Home 8 11 $29,430,611 4.12%
Mixed-Use 6 7 $25,463,530 3.56%
Theater/Air Rights 1 1 $16,000,000 2.24%
Medical Office 3 3 $12,404,862 1.74%
Self-Storage 2 2 $8,020,347 1.12%
Other 1 1 $5,850,000 0.82%
Parking Garage or Lot 2 2 $4,816,577 0.67%
Multiple 1 4 $4,000,000 0.56%
-------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 146 170 $714,739,121 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
TYPES OF MORTGAGED PROPERTIES
-----------------------------
WEIGHTED AVERAGES
----------------------------------------------------------------------------------------------------
PROPERTY MORTGAGE STATED REMAINING DSCR CUT-OFF MATURITY OCCUPANCY AVERAGE AVERAGE
TYPE RATE REMAINING AMORT. TERM DATE LTV LTV LOAN PER NUMBER OF
TERM (MOS.) (MOS.) UNIT/SF UNITS/SF
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Retail, Anchored 7.2923% 141 336 1.50x 67.09% 53.98% 94.74% $97 133,596
Office 7.2973% 127 332 1.64x 60.16% 50.55% 97.53% $77 87,306
Multifamily 7.0592% 135 325 1.64x 65.93% 52.37% 97.75% $36,224 97
Industrial/Warehouse 7.4845% 122 326 1.46x 70.86% 59.06% 98.02% $34 179,583
Hotel 7.1076% 119 289 2.22x 38.72% 29.38% 69.08% $36,631 151
Retail, Unanchored 7.4410% 146 311 1.53x 65.46% 49.81% 98.48% $112 27,926
Mobile Home 7.2840% 149 346 1.44x 69.96% 57.07% 88.79% $15,320 269
Mixed-Use 7.4640% 133 327 1.53x 69.73% 57.37% 94.77% $78 132,542
Theater/Air Rights 7.0800% 120 300 2.87x 34.86% 27.96% 100.00% $304 52,657
Medical Office 7.1138% 135 279 1.55x 68.25% 47.99% 92.70% $85 62,797
Self-Storage 7.2105% 117 270 1.84x 60.00% 45.89% 90.12% $25 184,035
Other 7.4700% 120 300 1.44x 68.82% 55.86% 100.00% $80 73,500
Parking Garage or Lot 7.9919% 146 326 1.44x 74.11% 60.35% 100.00% $40 113,163
Multiple 7.0000% 180 180 1.65x 58.48% 1.08% 96.84% $37 107,965
----------------------- ----------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29% N/A N/A N/A
</TABLE>
10
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
MORTGAGE PROPERTIES BY STATE
----------------------------
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
---------------------------------------------------------------------
STATE NUMBER AGGREGATE % OF MORTGAGE STATED REMAINING DSCR CUT-OFF MATURITY LTV
OF CUT-OFF DATE INITIAL RATE REMAINING AMORT. TERM DATE LTV
PROPERTIES BALANCE POOL TERM (MOS.) (MOS.)
BALANCE
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
California 29 $195,924,576 27.41% 7.2936% 156 345 1.57x 64.56% 51.50%
New York 32 $118,179,358 16.53% 7.2615% 125 309 1.64x 63.94% 48.99%
Florida 15 $63,543,057 8.89% 7.1469% 118 301 1.94x 52.20% 41.97%
Massachusetts 11 $51,294,926 7.18% 7.2490% 143 333 1.79x 55.65% 45.15%
Connecticut 7 $36,246,605 5.07% 7.3199% 119 329 1.56x 67.84% 57.13%
Arizona 8 $33,853,457 4.74% 7.3012% 145 315 1.48x 67.20% 51.37%
Pennsylvania 8 $24,412,619 3.42% 7.2011% 119 306 1.45x 72.34% 58.98%
Delaware 4 $19,380,562 2.71% 7.2259% 122 352 1.45x 71.53% 61.91%
Texas 3 $18,729,899 2.62% 7.0831% 116 344 1.78x 57.56% 52.35%
Maryland 4 $17,350,000 2.43% 7.2515% 120 309 1.69x 63.66% 52.14%
Michigan 4 $17,128,519 2.40% 6.6097% 124 286 1.82x 58.65% 42.55%
New Jersey 3 $16,796,040 2.35% 7.2804% 119 299 1.48x 70.95% 57.36%
Utah 3 $14,600,000 2.04% 7.2900% 120 360 1.51x 74.68% 65.64%
Illinois 3 $10,713,889 1.50% 7.7038% 116 313 1.36x 66.99% 56.39%
Vermont 2 $9,435,216 1.32% 7.6333% 119 322 1.50x 70.51% 58.64%
Minnesota 14 $9,392,598 1.31% 7.1862% 162 308 1.66x 67.45% 47.99%
Washington 1 $8,491,609 1.19% 7.2400% 119 299 1.51x 64.33% 51.91%
North Carolina 2 $7,868,330 1.10% 7.7638% 114 331 1.26x 71.86% 61.89%
Virginia 2 $7,122,151 1.00% 7.8145% 115 334 1.38x 75.18% 65.43%
Rhode Island 2 $6,734,094 0.94% 8.0544% 114 331 1.60x 65.57% 57.48%
Oregon 2 $6,609,138 0.92% 7.4506% 131 285 1.43x 68.14% 50.89%
New Hampshire 1 $4,393,682 0.61% 7.0400% 118 358 1.41x 77.08% 67.41%
Louisiana 1 $4,300,000 0.60% 7.0700% 120 360 1.50x 74.78% 65.35%
Colorado 3 $4,096,566 0.57% 7.0135% 134 330 2.08x 48.19% 34.23%
Nevada 3 $3,940,645 0.55% 7.8704% 114 354 1.41x 66.39% 59.33%
Ohio 1 $1,991,257 0.28% 7.9700% 113 353 1.34x 47.41% 42.54%
Alabama 1 $1,435,783 0.20% 8.2650% 110 290 1.60x 59.04% 48.90%
Maine 1 $774,546 0.11% 9.8750% 172 172 1.44x 63.75% 2.36%
-------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG 170 $714,739,121 100.00% 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
11
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
RANGE OF DEBT SERVICE COVERAGE RATIOS AS OF THE CUT-OFF DATE
------------------------------------------------------------
RANGE OF NUMBER OF AGGREGATE CUT-OFF % OF INITIAL POOL
DSCRS LOANS DATE BALANCE BALANCE
-------------------------------------------------------------------------------
1.25x to 1.29x 10 $42,432,335 5.94%
1.30x to 1.34x 17 $56,364,469 7.89%
1.35x to 1.39x 9 $54,918,334 7.68%
1.40x to 1.44x 19 $113,722,506 15.91%
1.45x to 1.49x 21 $130,433,175 18.25%
1.50x to 1.54x 9 $28,033,130 3.92%
1.55x to 1.59x 13 $46,547,589 6.51%
1.60x to 1.69x 16 $53,061,857 7.42%
1.70x to 1.79x 10 $37,271,871 5.21%
1.80x to 1.89x 7 $43,674,013 6.11%
1.90x to 1.99x 3 $16,287,375 2.28%
2.00x to 2.19x 3 $10,988,956 1.54%
2.20x to 2.49x 7 $63,711,560 8.91%
2.50x to 3.00x 2 $17,291,949 2.42%
-------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 146 $714,739,121 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
---------------------------------------------------------------------------------
RANGE OF MORTGAGE RATE STATED REMAINING DSCR CUT-OFF MATURITY LTV
DSCRS REMAINING AMORT. TERM DATE LTV
TERM (MOS.) (MOS.)
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1.25x to 1.29x 7.6765% 117 325 1.28x 75.05% 63.05%
1.30x to 1.34x 7.6788% 124 306 1.32x 69.83% 53.70%
1.35x to 1.39x 7.3845% 126 337 1.38x 69.02% 58.57%
1.40x to 1.44x 7.4058% 142 342 1.42x 72.35% 59.19%
1.45x to 1.49x 7.2064% 150 342 1.47x 69.20% 55.54%
1.50x to 1.54x 7.2505% 122 308 1.52x 65.30% 52.86%
1.55x to 1.59x 7.3089% 129 315 1.57x 67.51% 53.00%
1.60x to 1.69x 7.1517% 142 312 1.64x 64.54% 47.31%
1.70x to 1.79x 7.1361% 122 299 1.72x 59.93% 47.40%
1.80x to 1.89x 6.9089% 119 327 1.86x 59.30% 50.50%
1.90x to 1.99x 7.1615% 172 343 1.93x 43.93% 32.97%
2.00x to 2.19x 7.3183% 116 321 2.04x 52.23% 43.92%
2.20x to 2.49x 7.0084% 128 308 2.33x 36.38% 28.58%
2.50x to 3.00x 7.0636% 120 300 2.84x 35.70% 28.63%
-----------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
12
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
RANGE OF LOAN TO VALUE RATIOS AS OF THE CUT-OFF DATE
----------------------------------------------------
RANGE OF CUT-OFF DATE NUMBER OF AGGREGATE CUT-OFF % OF INITIAL
LTV RATIOS LOANS DATE BALANCE POOL BALANCE
- --------------------------------------------------------------------------------
20.01% to 30.00% 1 $ 10,000,000 1.40%
30.01% to 40.00% 4 $ 52,634,527 7.36%
40.01% to 45.00% 3 $ 17,017,857 2.38%
45.01% to 50.00% 9 $ 26,950,845 3.77%
50.01% to 55.00% 4 $ 8,786,143 1.23%
55.01% to 60.00% 19 $ 72,331,730 10.12%
60.01% to 65.00% 23 $ 122,808,987 17.18%
65.01% to 70.00% 25 $ 117,481,523 16.44%
70.01% to 75.00% 48 $ 233,027,007 32.60%
75.01% to 80.00% 10 $ 53,700,503 7.51%
- --------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 146 $714,739,121 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
----------------------------------------------------------------------------------------
RANGE OF CUT-OFF DATE MORTGAGE RATE STATED REMAINING DSCR CUT-OFF MATURITY LTV
LTV RATIOS REMAINING AMORT. TERM DATE LTV
TERM (MOS.) (MOS.)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
20.01% to 30.00% 7.5700% 120 300 2.32x 26.35% 21.45%
30.01% to 40.00% 7.0400% 120 294 2.48x 34.43% 26.56%
40.01% to 45.00% 7.0778% 162 346 1.98x 41.34% 32.15%
45.01% to 50.00% 7.2518% 139 320 2.09x 47.39% 37.46%
50.01% to 55.00% 7.0257% 138 266 1.80x 51.73% 30.93%
55.01% to 60.00% 7.1698% 132 300 1.70x 57.24% 40.27%
60.01% to 65.00% 7.0853% 139 319 1.61x 63.50% 49.90%
65.01% to 70.00% 7.4244% 141 337 1.46x 67.76% 55.11%
70.01% to 75.00% 7.3550% 133 335 1.43x 73.06% 60.28%
75.01% to 80.00% 7.5211% 117 345 1.33x 77.78% 68.13%
- ------------------------- -------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
RANGE OF LOAN TO VALUE RATIOS AT MATURITY
-----------------------------------------
RANGE OF MATURITY NUMBER OF AGGREGATE CUT-OFF % OF INITIAL POOL
LTV RATIOS LOANS DATE BALANCE BALANCE
- --------------------------------------------------------------------------------
0.00% to 10.00% 5 $ 14,572,293 2.04%
10.01% to 30.00% 6 $ 66,282,667 9.27%
30.01% to 35.00% 4 $ 17,914,423 2.51%
35.01% to 40.00% 7 $ 24,215,054 3.39%
40.01% to 45.00% 9 $ 18,371,335 2.57%
45.01% to 50.00% 15 $ 87,649,894 12.26%
50.01% to 55.00% 34 $ 160,363,834 22.44%
55.01% to 60.00% 27 $ 140,068,030 19.60%
60.01% to 65.00% 24 $ 109,035,175 15.26%
65.01% to 70.00% 13 $ 64,516,755 9.03%
70.01% to 75.00% 2 $ 11,749,660 1.64%
- --------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 146 $714,739,121 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
-----------------------------------------------------------------------------------------
RANGE OF MATURITY MORTGAGE STATED REMAINING DSCR CUT-OFF MATURITY LTV
LTV RATIOS RATE REMAINING AMORT. TERM DATE LTV
TERM (MOS.) (MOS.)
- ------------------------- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
0.00% to 10.00% 7.4379% 176 176 1.49x 54.12% 1.12%
10.01% to 30.00% 7.0980% 123 293 2.41x 35.00% 26.24%
30.01% to 35.00% 7.1069% 163 320 1.95x 44.27% 31.59%
35.01% to 40.00% 6.9291% 149 324 2.12x 48.13% 36.40%
40.01% to 45.00% 7.4812% 125 302 1.72x 53.45% 41.70%
45.01% to 50.00% 6.9727% 149 328 1.65x 62.38% 48.24%
50.01% to 55.00% 7.2225% 137 327 1.57x 64.47% 52.09%
55.01% to 60.00% 7.4789% 136 324 1.44x 71.68% 58.20%
60.01% to 65.00% 7.3335% 119 343 1.43x 72.22% 62.18%
65.01% to 70.00% 7.4607% 118 356 1.39x 76.03% 67.28%
70.01% to 75.00% 7.9422% 113 353 1.29x 79.66% 71.43%
- ------------------------- -----------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
13
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
RANGE OF REMAINING TERM IN MONTHS
---------------------------------
RANGE OF REMAINING TERMS NUMBER AGGREGATE CUT-OFF % OF
(MOS.) OF DATE BALANCE INITIAL
LOANS POOL BALANCE
- --------------------------------------------------------------------------------
71 to 100 2 $ 3,947,015 0.55%
101 to 120 113 $ 516,296,238 72.24%
121 to 140 1 $ 2,689,234 0.38%
161 to 180 30 $ 191,806,634 26.84%
- --------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 146 $714,739,121 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
-------------------------------------------------------------------------------------------
RANGE OF REMAINING TERMS MORTGAGE STATED REMAINING REMAINING AMORT DSCR CUT-OFF DATE MATURITY
(MOS.) RATE TERM (MOS.) . TERM LTV LTV
(MOS.)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
71 to 100 7.5919% 83 311 1.64x 60.97% 54.70%
101 to 120 7.3161% 118 320 1.64x 63.61% 53.38%
121 to 140 7.6200% 138 354 1.48x 72.68% 62.08%
161 to 180 7.1681% 177 337 1.56x 64.31% 45.46%
- ---------------------------------------------------------------------------------------------------------------------------
7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
RANGE OF MORTGAGE RATES AS OF THE CUT-OFF DATE
----------------------------------------------
RANGE OF NUMBER AGGREGATE % OF CUM % OF
MORTGAGE RATES OF LOANS CUT-OFF DATE INITIAL CUT-OFF DATE
BALANCE POOL BALANCE BALANCE
-------------------------------------------------------------------------------
6.2500% to 6.5000% 1 $11,969,867 1.67% 1.67%
6.5001% to 6.7500% 3 $7,011,479 0.98% 2.66%
6.7501% to 7.0000% 25 $174,385,452 24.40% 27.05%
7.0001% to 7.2500% 34 $181,852,672 25.44% 52.50%
7.2501% to 7.5000% 34 $179,832,989 25.16% 77.66%
7.5001% to 7.7500% 22 $81,161,990 11.36% 89.01%
7.7501% to 8.0000% 12 $36,442,256 5.10% 94.11%
8.0001% to 8.2500% 9 $33,469,426 4.68% 98.79%
8.2501% to 8.7500% 4 $6,275,994 0.88% 99.67%
8.7501% to 9.2500% 1 $1,562,449 0.22% 99.89%
9.2501 to 10.0000% 1 $774,546 0.11% 100.00%
-------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 146 $714,739,121 100.00% 100.00%
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
----------------------------------------------------------------------------------
RANGE OF MORTGAGE STATED REMAINING DSCR CUT-OFF DATE LTV MATURITY LTV
MORTGAGE RATES RATE REMAINING AMORT. TERM
TERM (MOS.) (MOS.)
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
6.2500% to 6.5000% 6.4700% 118 298 1.87x 61.86% 48.79%
6.5001% to 6.7500% 6.7100% 130 269 2.06x 50.53% 31.18%
6.7501% to 7.0000% 6.9159% 150 329 1.82x 56.50% 43.13%
7.0001% to 7.2500% 7.1267% 125 314 1.67x 63.24% 50.53%
7.2501% to 7.5000% 7.3616% 140 338 1.49x 69.49% 56.61%
7.5001% to 7.7500% 7.6276% 119 319 1.53x 64.88% 54.08%
7.7501% to 8.0000% 7.8633% 130 334 1.35x 70.49% 59.53%
8.0001% to 8.2500% 8.0892% 111 339 1.35x 70.77% 62.82%
8.2501% to 8.7500% 8.5967% 110 300 1.67x 57.11% 48.64%
8.7501% to 9.2500% 9.1250% 171 171 1.55x 35.71% 1.11%
9.2501 to 10.0000% 9.8750% 172 172 1.44x 63.75% 2.36%
------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
14
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
RANGE OF SCHEDULED PRINCIPAL BALANCES AS OF THE CUT-OFF DATE
------------------------------------------------------------
RANGE OF CUT-OFF DATE NUMBER OF AGGREGATE % OF
BALANCES LOANS CUT-OFF DATE BALANCE INITIAL POOL
BALANCE
-----------------------------------------------------------------------------
$ 0 to $999,999 3 $2,768,180 0.39%
$ 1,000,000 to $ 1,999,999 36 $56,336,958 7.88%
$ 2,000,000 to $ 3,999,999 45 $126,496,874 17.70%
$ 4,000,000 to $ 5,999,999 27 $135,931,580 19.02%
$ 6,000,000 to $ 7,999,999 11 $76,339,665 10.68%
$ 8,000,000 to $ 9,999,999 6 $55,436,673 7.76%
$10,000,000 to $11,999,999 6 $65,172,900 9.12%
$12,000,000 to $13,999,999 4 $50,813,332 7.11%
$14,000,000 to $15,999,999 3 $44,230,555 6.19%
$16,000,000 to $17,999,999 2 $33,000,000 4.62%
$18,000,000 to $24,999,999 3 $68,212,404 9.54%
-----------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 146 $714,739,121 100.00%
THE AVERAGE CUT-OFF DATE BALANCE IS $4,895,473.
[Table restubbed from above]
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
--------------------------------------------------------------------------------
RANGE OF CUT-OFF DATE MORTGAGE STATED REMAINING AMORT. DSCR CUT-OFF MATURITY LTV
BALANCES RATE REMAINING TERM TERM DATE LTV
(MOS.) (MOS.)
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
$ 0 to $999,999 8.2042% 154 241 1.40x 70.07% 33.39%
$ 1,000,000 to $ 1,999,999 7.5215% 128 310 1.56x 60.77% 47.26%
$ 2,000,000 to $ 3,999,999 7.3508% 125 310 1.61x 65.62% 52.63%
$ 4,000,000 to $ 5,999,999 7.4029% 128 326 1.48x 69.80% 56.88%
$ 6,000,000 to $ 7,999,999 7.3162% 133 322 1.40x 70.87% 55.47%
$ 8,000,000 to $ 9,999,999 7.4386% 117 327 1.52x 68.36% 58.29%
$10,000,000 to $11,999,999 7.0612% 148 328 1.87x 50.97% 40.01%
$12,000,000 to $13,999,999 7.1167% 133 328 1.65x 62.21% 50.86%
$14,000,000 to $15,999,999 6.9118% 159 359 1.65x 62.10% 50.57%
$16,000,000 to $17,999,999 7.2036% 120 331 2.12x 53.70% 45.92%
$18,000,000 to $24,999,999 7.0938% 157 337 1.76x 58.69% 45.55%
-----------------------------------------------------------------------------------------------------------------------
TOTALS/WEIGHTED AVG. 7.2790% 134 325 1.62X 63.82% 51.29%
</TABLE>
15
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
TEN LARGEST MORTGAGE LOANS
<TABLE>
<CAPTION>
WEIGHTED AVERAGES
------------------------------------------------------------
% OF
AGGREGATE INITIAL STATED CUT-OFF
NUMBER OF CUT-OFF DATE POOL MORTGAGE REMAINING DATE LTV LTV RATIO AT
PROPERTY NAME PROPERTIES BALANCE BALANCE RATE TERM (MO.) DSCR RATIO MATURITY
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mission Marketplace 1 $23,912,270 3.35% 7.3650% 175 1.42x 74.73% 58.30%
Naples Beach Hotel & Resort 1 $22,913,783 3.21% 6.9600% 117 2.37x 36.26% 28.58%
Retail Portfolio 5 $22,201,914 3.11% 7.9450% 113 1.33x 68.32% 61.23%
Lomas Santa Fe Plaza 1 $21,386,351 2.99% 6.9340% 179 1.48x 64.81% 49.49%
1851 & 1871 Sunrise 1 $17,000,000 2.38% 7.3200% 120 1.42x 71.43% 62.83%
1564 Broadway 1 $16,000,000 2.24% 7.0800% 120 2.87x 34.86% 27.96%
Torrey Reserve South Court 1 $15,739,803 2.20% 6.8840% 179 1.61x 63.72% 48.55%
White Road Plaza 1 $14,490,752 2.03% 6.9340% 179 1.49x 67.09% 51.23%
Kerr McGee Center 1 $14,000,000 1.96% 6.9200% 116 1.85x 55.12% 52.15%
Shaw's Plaza Shopping Center 1 $13,300,000 1.86% 7.1100% 120 1.46x 73.08% 58.67%
----------------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 14 $180,944,873 25.32% 7.1750% 143 1.72X 60.85% 49.74%
</TABLE>
DESCRIPTION:
Mission Marketplace ($23,912,270). This shopping center, located in
the heart of North San Diego County, consists of four anchor buildings, five
outparcel buildings, a thirteen screen multi-cinema theater, shop space and a
child day care facility, for a total of 344,009 GLA. The anchors, shop space
and two outparcel buildings were constructed in 1989, three additional
outparcel buildings were developed in 1994, and the theater was expanded in
1997, from eight to thirteen screens. The anchor tenants are Kmart (89,483
GLA), Ralph's (45,000 GLA), Thrifty Drug (19,000 GLA), Pic-N-Save (17,250 GLA)
and CinemaStar Theater (43,940 GLA). Other tenants include McDonald's, Dairy
Queen, Hometown Buffet, Hancock Fabrics, and One Price Clothing Store. As of
November 11 1997, the appraised value was $32,000,000, with a Cut-Off Date LTV
of 74.73%. As of March 24, 1998, the shopping center was 96% leased and
Underwritten Net Cash Flow indicated a DSCR of 1.42x.
Naples Beach Hotel & Resort ($22,913,784). This 284-key family
oriented resort hotel, located directly on the beach in Naples, Florida,
includes 1,000 feet of private beachfront, an 18-hole championship golf course,
tennis courts, 12,500 square feet of meeting/banquet space and a swimming pool.
The property, which was established in 1946 and has been continually expanded
and upgraded throughout the years, is the only resort in the area that features
both beach frontage and a golf course. As of January 1, 1998, the appraised
value was $63,200,000, with a Cut-Off Date LTV of 36.26%. As of February 28,
1998, the average occupancy was 67%, and Underwritten Net Cash Flow indicated a
DSCR of 2.73x.
Equity Investment Group Retail Portfolio ($22,201,914). This portfolio
consists of five cross-defaulted Mortgage Loans secured by five
cross-collateralized shopping centers, located in five cities, for a total of
753,398 GLA. (The Mortgage Loans comprising the Equity Investment Group Retail
Portfolio are treated as individual Mortgage Loans in the other sections of the
Prospectus Supplement but are treated as a single Mortgage Loan in this section
for purposes of providing this summary of such Mortgage Loans.) The general
partner of each borrowing entity is an affiliate of Equity Investment Group
("Equity"). The company's current retail portfolio comprises over 3.0 million
square feet in almost 30 properties. The management of Equity combines over 90
years of real estate management expertise to create a fully integrated real
estate operation concentrating in acquisition, management, marketing, finance
and development of predominantly retail properties. The weighted average DSCR
of the Equity portfolio is 1.33x and the Cut-Off Date LTV is 68.32%. The
property breakdown is as follows:
Interchange Square ($1,493,504). This shopping center,
located in Palm Bay, Florida, consists of two one-story buildings,
constructed in 1986 and 1989, with a total of 97,250 GLA. Tenants
include Dollar General and a U.S. Post Office. As of October 1, 1997,
the appraised value was $3,000,000. As of April 2, 1998, the property
was 52% leased.
16
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
TEN LARGEST MORTGAGE LOANS (CONTINUED)
Mountainview Square ($4,679,645). This shopping center,
located in Wytheville, Virginia and constructed in 1989, is a
one-story strip center, containing a total of 122,529 GLA. The anchor
tenant is Kmart (86,479 GLA). As of October 25, 1997, the appraised
value was $6,000,000. As of April 2, 1998, the center was 90% leased.
Dixie Village ($6,370,622). This shopping center, located in
Gastonia, North Carolina, consists of eleven one-story buildings, with
a total of 221,203 GLA. The center was constructed in 1965 and was
renovated in 1995. The anchor tenants are Winn-Dixie (42,000 GLA) and
Matthews Belk (34,500 GLA). Other tenants include the Salvation Army,
Radio Shack, and Firestone. As of October 6, 1997, the appraised value
was $8,600,000. As of April 2, 1998, the shopping center was 98%
leased.
Eastland Square ($1,911,257). This shopping center, located
in Columbus, Ohio, and constructed in 1980, consists of two one-story
buildings, with a total of 133,588 GLA. The anchor tenants are Big
Bear (38,300 GLA), and Hancock Fabrics (11,320 GLA). Other tenants
include Family Dollar and Jenny Craig. As of October 21, 1997, the
appraised value was $4,200,000. As of April 2, 1998, the center was
66% leased.
Swansea Crossing ($7,666,887). This shopping center, located
in Swansea, Massachusetts, consists of a one-story strip center
containing 178,828 GLA. The center was constructed in 1975 and was
renovated in 1985. The anchor tenants are Sears (44,285 GLA),
Marshalls (27,000 GLA), Rx Place (26,100 GLA) and Jo Ann's Fabrics
(12,944 GLA). Other tenants include Payless Shoe Source and Jenny
Craig. As of October 20, 1997, the appraised value was $11,500,000. As
of April 2, 1998, the center was 78% leased.
Lomas Santa Fe Plaza ($21,386,351). This shopping center, located in
an affluent residential area in San Diego County, California, contains eight
buildings comprised of three two-story office/retail buildings, four one story
retail buildings and one two-story building, with a total of 214,093 GLA. The
center, which was originally constructed in 1964, has been remodeled and
renovated a number of times over the years, most recently in 1998. The anchor
tenants are Vons (49,895 GLA), Ross Dress for Less (30,531 GLA), and
We-R-Fabrics (13,926 GLA). Other tenants include Baskin Robbins, Einstein
Bagels, Big 5 Sporting Goods, Blockbuster Video, and Wells Fargo Bank. As of
March 5, 1998 the appraised value was $33,000,000, with a Cut-Off Date LTV of
64.81%. As of February 19, 1998, the shopping center was 90% leased and
Underwritten Net Cash Flow indicated a DSCR of 1.48x.
1851 & 1871 Sunrise Highway ($17,000,000). This shopping center,
located in Bayshore, Long Island and constructed in 1983, contains three one
story buildings, with a total of 173,723 GLA. The anchor tenants are Toys `R Us
(43,123 GLA), Waldbaum's (39,478 GLA), Kids 'R Us (25,000 GLA), and Rock Bottom
(20,965 GLA). Other tenants include Pier One, Fashion Bug, and Dress Barn. As
of March 27, 1998 the appraised value was $23,800,000, with a Cut-Off Date LTV
of 73.91%. As of April 1, 1998, the shopping center was 100% leased, and
Underwritten Net Cash Flow indicated a DSCR of 1.42x.
1564 Broadway ($16,000,000). This property consists of (i) a
1,784-seat theater and (ii) unused development rights relating to the air space
above the theater (the "Air Rights"). The theater, which was originally
constructed in 1912 and was completely renovated in 1990, is located in the
heart of Manhattan's "Times Square" theater district. It is leased to Walt
Disney Theatrical Productions under a terminable license agreement for the
staging of the musical "Beauty and the Beast". The Air Rights have been leased
to the operator of a 43-story DoubleTree Guest Suites Hotel pursuant to a net
lease (the "Air Rights Lease") which expires in 2037 with three consecutive
thirty-year renewal options. The Air Rights Lease represents approximately 27%
of the Underwritten Net Cash Flow for this property. As of February 19, 1998,
the theater was 100% leased and Underwritten Net Cash Flow indicated a DSCR of
2.87x. As of January 29, 1998, the appraised value was $45,900,000, with a
Cut-Off Date LTV of 34.86%.
17
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
TEN LARGEST MORTGAGE LOANS (CONTINUED)
Torrey Reserve South Court ($15,739,803). This office property,
located in San Diego, California and constructed in 1997, consists of one
four-story, elevator-served office building and one three-story,
elevator-served office building, with a total of 130,641 net rentable square
feet ("NRA"). The primary tenants are Household Automotive Finance (46,307
NRA), The Herb Farm (17,444 NRA), LSI Logic Corporation (13,291 NRA), and A.G.
Edwards (11,917 NRA). One of the tenants, the Herb Farm, is currently subject
to a proceeding under Chapter 11 of the Bankruptcy Code. It is anticipated that
the Herb Farm will elect to affirm the related lease, but there can be no
assurance that it will do so. A letter of credit has been obtained by the
related borrower for the benefit of the lender under the Mortgage Loan in an
amount sufficient to cover anticipated costs of tenant improvements, leasing
commissions and other losses that could be incurred in connection with
re-leasing the Herb Farm space. Other tenants include First American Title
Insurance Company and American Express Travel. As of March 4, 1998, the
appraised value was $24,700,000, with a Cut-Off Date LTV of 63.72%. As of March
1, 1998, the office building was 100% leased, and Underwritten Net Cash Flow
indicated a DSCR of 1.61x.
White Road Plaza ($14,490,752). This shopping center, located in San
Jose, California, consists of nine one story buildings, with a total of 153,849
GLA. Six of the buildings were constructed in 1997 and the remaining three
buildings were constructed in 1989, 1995, and 1997. The anchor tenants are
Lucky Food Store (39,880 GLA), Pic-n-Save (25,500 GLA) and Payless Drugs
(23,672 GLA). Other tenants include Blockbuster Video, Payless Shoe Source, and
Boston Market. As of March 6, 1998, the appraised value was $21,600,000, with a
Cut-Off Date LTV of 67.09%. As of March 1, 1998, the shopping center was 95%
leased, and Underwritten Net Cash Flow indicated a DSCR of 1.49x.
Kerr McGee Center ($14,000,000). This office property, located in
northern suburbs of Houston, Texas, consists of one six-story elevator-served
atrium office building which was constructed in 1984 and one three-story
elevator-served atrium office building which was completed in 1974, for a total
of 233,860 NRA. Both buildings were substantially renovated in 1997. The
primary tenant is the Kerr-McGee Corporation (208,006 NRA). Other tenants
include Dobbs Temporary Services, Uniglobe Travel and Clearinghouse, Inc. As of
January 21, 1998, the appraised value was $25,400,000, with a Cut-Off Date LTV
of 55.12%. As of April 1, 1998, the property was 100% leased, and Underwritten
Net Cash flow indicated a DSCR of 1.85x.
Shaw's Plaza Shopping Center ($13,300,000). This shopping center is
located in Southington, Connecticut, in the Hartford MSA just east of the I-84
interchange. The property includes one single story building, which was
originally constructed in 1961 and renovated in 1988, with a total of 151,846
GLA. The anchor tenants include Shaw's Supermarket (60,000 GLA), Toy Works
(14,450 GLA), Bernie's TV & Appliances (13,490 GLA), Petco (13,082 GLA) and CVS
Parmacy (8,496 GLA). Other tenants include Town Fair Tire Center, Burger King
and Woodworkers Warehouse. As of March 23, 1998 the appraised value was
$18,200,000 with a Cut-Off Date LTV of 73.08%. As of February 1, 1998, the
property was 98% leased, and Underwritten Net Cash Flow indicated a DSCR of
1.46x.
18
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
BEAR STEARNS COMMERCIAL MORTGAGE SECURITIES INC. 1998-C1
--------------------------------------------------------
DETAILED LOAN DESCRIPTIONS
LOANS WITH DSCR less than 1.30X
LOANS WITH LTV more than 75%
LOAN LOAN NAME AGGREGATE DSCR CUT-OFF % OF
ID# CUT-OFF DATE INITIAL
DATE BALANCE LTV POOL
BALANCE
----------------------------------------------------------------------
6238 Casey Richards Family $1,010,833 1.25 59.46% 0.14%
9326 Baywood Apts $5,800,000 1.29 71.96% 0.81%
9333 Brynwood Apartments $7,402,302 1.27 76.51% 1.04%
9669 37-39 Breck Street $4,275,000 1.29 75.00% 0.60%
6233 Park Plaza on Maine $9,349,660 1.28 79.57% 1.31%
9365 Kmart $1,497,707 1.25 62.40% 0.21%
6254 Woodmen Plaza $996,566 1.25 71.18% 0.14%
Blockbuster/Subway
8479 Le Colonial $1,050,000 1.28 71.19% 0.15%
9672 Mountainview Square $4,679,645 1.28 77.99% 0.65%
9673 Dixie Village $6,370,622 1.26 74.08% 0.89%
----------------------------------------------------------------------
TOTAL/WEIGHTED AVG. $42,432,335 5.94%
[Table restubbed from above]
<TABLE>
<CAPTION>
LOANS WITH DSCR less than 1.30X
-------------------------------
LOAN LOAN NAME MORTGAGE STATED REMAINING STATE PROPERTY TYPE LARGEST TENANT
ID# RATE REMAINING AMORT TERM
TERM (MOS) (MOS)
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6238 Casey Richards Family 8.6250% 6112 352 NV Multifamily N/A
9326 Baywood Apts 7.3000% 9120 360 CA Multifamily N/A
9333 Brynwood Apartments 7.0050% 9119 299 PA Multifamily N/A
9669 37-39 Breck Street 7.5800% 9120 240 NY Industrial/Warehouse Monroe FTZ Oper
6233 Park Plaza on Maine 8.1250% 6111 351 CA Retail, Anchored Sav-On
9365 Kmart 7.7800% 9119 239 NC Retail, Anchored Kmart
6254 Woodmen Plaza 7.4600% 6178 238 CO Retail, Unanchored Blockbuster
Blockbuster/Subway
8479 Le Colonial 8.0400% 8120 300 PA Retail, Unanchored Le Colonial
9672 Mountainview Square 8.0100% 114 353 VA Retail, Anchored Kmart
9673 Dixie Village 7.7600% 113 353 NC Retail, Anchored Winn Dixie
---------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 325
</TABLE>
LOAN LOAN NAME AGGREGATE DSCR CUT-OFF % OF
ID# CUT-OFF DATE INITIAL
DATE BALANCE LTV POOL
BALANCE
-----------------------------------------------------------------------
6072 127-131 Second Avenue $6,000,000 1.38 76.92% 0.84%
8466 304 East 89 Street $1,031,732 1.32 75.86% 0.14%
8666 Oak Bridge Condos $4,393,682 1.41 77.08% 0.61%
9333 Brynwood Apartments $7,402,302 1.27 76.51% 1.04%
8669 Prestige MHP $5,996,451 1.42 78.90% 0.84%
8672 Northrups MHP $2,400,000 1.34 80.00% 0.34%
5995 Federal Express $9,588,410 1.33 76.86% 1.34%
Buildings I
6233 Park Plaza on Maine $9,349,660 1.28 79.57% 1.31%
6529 Macungie Sq. Shopping $2,858,621 1.30 77.26% 0.40%
9672 Mountainview Square $4,679,645 1.28 77.99% 0.65%
-----------------------------------------------------------------------
TOTAL/WEIGHTED AVG. $53,700,503 7.51%
[Table restubbed from above]
<TABLE>
<CAPTION>
LOANS WITH LTV more than 75%
----------------------------
LOAN LOAN NAME MORTGAGE STATED REMAINING AMORT STATE PROPERTY TYPE LARGEST TENANT
ID# RATE REMAINING TERM (MOS)
TERM (MOS)
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
6072 127-131 Second Avenue 7.2200% 117 336 NY Multifamily N/A
8466 304 East 89 Street 7.2800% 117 297 NY Multifamily N/A
8666 Oak Bridge Condos 7.0400% 118 358 NH Multifamily N/A
9333 Brynwood Apartments 7.0050% 119 299 PA Multifamily N/A
8669 Prestige MHP 7.1800% 119 359 NY Mobile Home N/A
8672 Northrups MHP 7.2300% 120 360 NY Mobile Home N/A
5995 Federal Express 7.7300% 118 358 N/A Industrial/ Federal Express
Buildings I Warehouse
6233 Park Plaza on Maine 8.1250% 111 351 CA Retail, Anchored Sav-On
6529 Macungie Sq. Shopping 7.8000% 119 359 PA Retail, Anchored CVS (Revco)
9672 Mountainview Square 8.0100% 114 353 VA Retail, Anchored Kmart
--------------------------------------------------------------------------------------------------------------------------
TOTAL/WEIGHTED AVG. 345
</TABLE>
19
- --------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING BEAR STEARNS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR RELY ON
THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT. YOU MAY
OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The Underwriter
makes no representations as to the accuracy or completeness of the information
contained herein. The information contained herein is qualified in its entirety
by the information in the Prospectus and Prospectus Supplement for this
transaction. The information contained herein is preliminary as of the date
hereof and will be superseded by the applicable final Prospectus and Prospectus
Supplement and any other information subsequently filed with the Securities and
Exchange Commission. These materials are subject to change, completion, or
amendment from time to time without notice, and the Underwriter is under no
obligation to keep you advised of such changes. These materials are not
intended as an offer or solicitation with respect to the purchase or sale of
any security. Any investment decision with respect to the securities should be
made by you based upon the information contained in the final Prospectus
Supplement and Prospectus relating to the securities. You should consult your
own counsel, accountant, and other advisors as to the legal, tax, business,
financial and related aspects of a purchase of these securities.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:53PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS A1 (A1 ) AAA RATED TRANCHE
ORIG BAL 129,564,000 FAC 1.00000 COUP 6.320 MAT / / WAC-0.000(0.000) WAM- / (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: A1 (A1 )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 5.79 5.78 5.78 5.78 5.78 5.78 5.75 AVG. LIFE
07/98 07/98 07/98 07/98 07/98 07/98 07/98 1ST PRIN
10/07 10/07 10/07 10/07 10/07 10/07 10/07 LAST PRIN
================================================================================================================
100:16 6.24 6.24 6.24 6.24 6.24 6.24 6.24 Yield
4.55 4.55 4.55 4.54 4.54 4.54 4.53 Duration
- ----------------------------------------------------------------------------------------------------------------
100:20 6.21 6.21 6.21 6.21 6.21 6.21 6.21 Yield
4.55 4.55 4.55 4.55 4.55 4.55 4.53 Duration
- ----------------------------------------------------------------------------------------------------------------
100:24 6.18 6.18 6.18 6.18 6.18 6.18 6.18 Yield
4.55 4.55 4.55 4.55 4.55 4.55 4.53 Duration
- ----------------------------------------------------------------------------------------------------------------
100:28 6.16 6.16 6.16 6.15 6.15 6.15 6.15 Yield
4.55 4.55 4.55 4.55 4.55 4.55 4.53 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 0 6.13 6.13 6.13 6.13 6.13 6.13 6.13 Yield
4.56 4.56 4.56 4.56 4.55 4.55 4.54 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 4 6.10 6.10 6.10 6.10 6.10 6.10 6.10 Yield
4.56 4.56 4.56 4.56 4.56 4.56 4.54 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 8 6.07 6.07 6.07 6.07 6.07 6.07 6.07 Yield
4.56 4.56 4.56 4.56 4.56 4.56 4.54 Duration
- ----------------------------------------------------------------------------------------------------------------
101:12 6.05 6.05 6.05 6.05 6.05 6.05 6.05 Yield
4.57 4.56 4.56 4.56 4.56 4.56 4.54 Duration
- ----------------------------------------------------------------------------------------------------------------
101:16 6.02 6.02 6.02 6.02 6.02 6.02 6.02 Yield
4.57 4.57 4.57 4.57 4.57 4.57 4.55 Duration
- ----------------------------------------------------------------------------------------------------------------
**Yield tables assume no prepayments during lockout or yield maintenance
This information should be considered only after reading Bear Stearns' Statement Regarding Assumptions as to
Securities, Pricing Estimates, and Other Information ("the Statement"), which should be attached. Do not
use or rely on this information if you have not received and reviewed the Statement. You may obtain a copy
of the Statement from your sales representative.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:53PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS A2 (A2 ) AAA RATED TRANCHE
ORIG BAL 417,211,428 FAC 1.00000 COUP 6.400 MAT / / WAC-0.000(0.000) WAM- / (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: A2 (A2 )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 9.81 9.81 9.81 9.81 9.81 9.81 9.80 AVG. LIFE
10/07 10/07 10/07 10/07 10/07 10/07 10/07 1ST PRIN
06/08 06/08 06/08 06/08 06/08 06/08 06/08 LAST PRIN
================================================================================================================
100:16 6.38 6.38 6.38 6.38 6.38 6.38 6.38 Yield
7.08 7.08 7.08 7.08 7.08 7.08 7.07 Duration
- ----------------------------------------------------------------------------------------------------------------
100:20 6.36 6.36 6.36 6.36 6.36 6.36 6.36 Yield
7.08 7.08 7.08 7.08 7.08 7.08 7.07 Duration
- ----------------------------------------------------------------------------------------------------------------
100:24 6.34 6.34 6.34 6.34 6.34 6.34 6.34 Yield
7.08 7.08 7.08 7.08 7.08 7.08 7.08 Duration
- ----------------------------------------------------------------------------------------------------------------
100:28 6.33 6.33 6.33 6.33 6.33 6.33 6.33 Yield
7.09 7.09 7.09 7.09 7.08 7.08 7.08 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 0 6.31 6.31 6.31 6.31 6.31 6.31 6.31 Yield
7.09 7.09 7.09 7.09 7.09 7.09 7.08 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 4 6.29 6.29 6.29 6.29 6.29 6.29 6.29 Yield
7.09 7.09 7.09 7.09 7.09 7.09 7.08 Duration
- ----------------------------------------------------------------------------------------------------------------
101: 8 6.27 6.27 6.27 6.27 6.27 6.27 6.27 Yield
7.09 7.09 7.09 7.09 7.09 7.09 7.09 Duration
- ----------------------------------------------------------------------------------------------------------------
101:12 6.26 6.26 6.26 6.26 6.26 6.26 6.26 Yield
7.10 7.09 7.09 7.09 7.09 7.09 7.09 Duration
- ----------------------------------------------------------------------------------------------------------------
101:16 6.24 6.24 6.24 6.24 6.24 6.24 6.24 Yield
7.10 7.10 7.10 7.10 7.10 7.10 7.09 Duration
- ----------------------------------------------------------------------------------------------------------------
**Yield tables assume no prepayments during lockout or yield maintenance
This information should be considered only after reading Bear Stearns' Statement Regarding Assumptions as to
Securities, Pricing Estimates, and Other Information ("the Statement"), which should be attached. Do not
use or rely on this information if you have not received and reviewed the Statement. You may obtain a copy
of the Statement from your sales representative.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:53PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS B (B ) AA RATED SUB
ORIG BAL 35,736,956 FAC 1.00000 COUP 6.540 MAT / / WAC-0.000(0.000) WAM-/ (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: B (B )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 12.08 12.08 12.08 12.08 12.08 12.07 12.06 AVG. LIFE
06/08 06/08 06/08 06/08 06/08 06/08 06/08 1ST PRIN
12/12 12/12 12/12 12/12 12/12 12/12 10/12 LAST PRIN
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
100:16 6.53 6.53 6.53 6.53 6.53 6.53 6.53 Yield
8.08 8.08 8.08 8.08 8.08 8.08 8.07 Duration
- ----------------------------------------------------------------------------------------------------------------
100:20 6.52 6.52 6.52 6.52 6.52 6.52 6.52 Yield
8.08 8.08 8.08 8.08 8.08 8.08 8.07 Duration
- ----------------------------------------------------------------------------------------------------------------
100:24 6.50 6.50 6.50 6.50 6.50 6.50 6.50 Yield
8.09 8.08 8.08 8.08 8.08 8.08 8.08 Duration
- ----------------------------------------------------------------------------------------------------------------
100:28 6.49 6.49 6.49 6.49 6.49 6.49 6.49 Yield
8.09 8.09 8.09 8.09 8.09 8.09 8.08 Duration
- ----------------------------------------------------------------------------------------------------------------
101:0 6.47 6.47 6.47 6.47 6.47 6.47 6.47 Yield
8.09 8.09 8.09 8.09 8.09 8.09 8.08 Duration
- ----------------------------------------------------------------------------------------------------------------
101:4 6.46 6.46 6.46 6.46 6.46 6.46 6.46 Yield
8.09 8.09 8.09 8.09 8.09 8.09 8.09 Duration
- ----------------------------------------------------------------------------------------------------------------
101:8 6.44 6.44 6.44 6.44 6.44 6.44 6.44 Yield
8.10 8.10 8.10 8.10 8.10 8.10 8.09 Duration
- ----------------------------------------------------------------------------------------------------------------
101:12 6.43 6.43 6.43 6.43 6.43 6.43 6.43 Yield
8.10 8.10 8.10 8.10 8.10 8.10 8.09 Duration
- ----------------------------------------------------------------------------------------------------------------
101:16 6.41 6.41 6.41 6.41 6.41 6.41 6.41 Yield
8.10 8.10 8.10 8.10 8.10 8.10 8.10 Duration
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
**Yield tables assume no prepayments during lockout or yield maintenance
- ------------------------------------------------------------------------------
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates, and Other Information
("the Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed the Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:54 PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS C (C ) A RATED SUB
ORIG BAL 32,163,260 FAC 1.00000 COUP 6.750 MAT / / WAC-0.000(0.000) WAM-/ (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: C (C )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 14.53 14.53 14.53 14.53 14.53 14.53 14.48 AVG. LIFE
12/12 12/12 12/12 12/12 12/12 12/12 10/12 1ST PRIN
01/13 01/13 01/13 01/13 01/13 01/13 01/13 LAST PRIN
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
100:7 6.79 6.79 6.79 6.79 6.79 6.79 6.79 Yield
8.98 8.98 8.98 8.98 8.98 8.98 8.96 Duration
- ----------------------------------------------------------------------------------------------------------------
100:11 6.78 6.78 6.78 6.78 6.78 6.78 6.78 Yield
8.99 8.99 8.99 8.99 8.99 8.99 8.97 Duration
- ----------------------------------------------------------------------------------------------------------------
100:15 6.76 6.76 6.76 6.76 6.76 6.76 6.76 Yield
8.99 8.99 8.99 8.99 8.99 8.99 8.97 Duration
- ----------------------------------------------------------------------------------------------------------------
100:19 6.75 6.75 6.75 6.75 6.75 6.75 6.75 Yield
9.00 9.00 9.00 9.00 9.00 9.00 8.98 Duration
- ----------------------------------------------------------------------------------------------------------------
100:23 6.74 6.74 6.74 6.74 6.74 6.74 6.73 Yield
9.00 9.00 9.00 9.00 9.00 9.00 8.98 Duration
- ----------------------------------------------------------------------------------------------------------------
100:27 6.72 6.72 6.72 6.72 6.72 6.72 6.72 Yield
9.00 9.00 9.00 9.00 9.00 9.00 8.98 Duration
- ----------------------------------------------------------------------------------------------------------------
100:31 6.71 6.71 6.71 6.71 6.71 6.71 6.71 Yield
9.01 9.01 9.01 9.01 9.01 9.01 8.99 Duration
- ----------------------------------------------------------------------------------------------------------------
101:3 6.69 6.69 6.69 6.69 6.69 6.69 6.69 Yield
9.01 9.01 9.01 9.01 9.01 9.01 8.99 Duration
- ----------------------------------------------------------------------------------------------------------------
101:7 6.68 6.68 6.68 6.68 6.68 6.68 6.68 Yield
9.02 9.02 9.02 9.02 9.02 9.02 9.00 Duration
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
**Yield tables assume no prepayments during lockout or yield maintenance
- ------------------------------------------------------------------------------
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates, and Other Information
("the Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed the Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:54 PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS D (D ) BBB RATED SUB
ORIG BAL 32,163,260 FAC 1.00000 COUP 6.750 MAT / / WAC-0.000(0.000) WAM-/ (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: D (D )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 14.66 14.66 14.66 14.66 14.66 14.66 14.64 AVG. LIFE
01/13 01/13 01/13 01/13 01/13 01/13 01/13 1ST PRIN
04/13 04/13 04/13 04/13 04/13 04/13 04/13 LAST PRIN
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
97:16 7.09 7.09 7.09 7.09 7.09 7.09 7.10 Yield
8.94 8.94 8.94 8.94 8.94 8.94 8.93 Duration
- ----------------------------------------------------------------------------------------------------------------
97:20 7.08 7.08 7.08 7.08 7.08 7.08 7.08 Yield
8.94 8.94 8.94 8.94 8.94 8.94 8.93 Duration
- ----------------------------------------------------------------------------------------------------------------
97:24 7.07 7.07 7.07 7.07 7.07 7.07 7.07 Yield
8.95 8.95 8.95 8.95 8.95 8.95 8.94 Duration
- ----------------------------------------------------------------------------------------------------------------
97:28 7.05 7.05 7.05 7.05 7.05 7.05 7.05 Yield
8.95 8.95 8.95 8.95 8.95 8.95 8.94 Duration
- ----------------------------------------------------------------------------------------------------------------
98.0 7.04 7.04 7.04 7.04 7.04 7.04 7.04 Yield
8.96 8.96 8.96 8.95 8.95 8.95 8.95 Duration
- ----------------------------------------------------------------------------------------------------------------
98:4 7.02 7.02 7.02 7.02 7.02 7.02 7.02 Yield
8.96 8.96 8.96 8.96 8.96 8.96 8.95 Duration
- ----------------------------------------------------------------------------------------------------------------
98:8 7.01 7.01 7.01 7.01 7.01 7.01 7.01 Yield
8.96 8.96 8.96 8.96 8.96 8.96 8.96 Duration
- ----------------------------------------------------------------------------------------------------------------
98:12 7.00 7.00 7.00 7.00 7.00 7.00 7.00 Yield
8.97 8.97 8.97 8.97 8.97 8.97 8.96 Duration
- ----------------------------------------------------------------------------------------------------------------
98:16 6.98 6.98 6.98 6.98 6.98 6.98 6.98 Yield
8.97 8.97 8.97 8.97 8.97 8.97 8.96 Duration
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
**Yield tables assume no prepayments during lockout or yield maintenance
- ------------------------------------------------------------------------------
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates, and Other Information
("the Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed the Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
Bear Stearns & Co. May 26, 1998
jlam 09:54 PM EDT
Page 1 of 1
BSCMSI-981
BSCMSI-981 CLASS E (E ) BBB- RATED SUB
ORIG BAL 8,934,239 FAC 1.00000 COUP 6.750 MAT / / WAC-0.000(0.000) WAM-/ (-22781)
PRICE/YIELD VIEW *No Prepay During Yield Mat. *Fact Thru 09/9999 Hist Coupons
SETTLE DATE 29-Jun-1998 CURVE DATE 26-May-1998 Tranche: E (E )
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
0% CPP 10% CPP 20% CPP 30% CPP 40% CPP 50% CPP 100% CPP PREPAY
LOSSES
*/0526 */0526 */0526 */0526 */0526 */0526 */0526 1 YR_TRES
PRICE 14.85 14.95 14.85 14.85 14.85 14.85 14.85 AVG. LIFE
04/13 04/13 04/13 04/13 04/13 04/13 04/13 1ST PRIN
05/13 05/13 05/13 05/13 05/13 05/13 05/13 LAST PRIN
================================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
94:16 7.44 7.44 7.44 7.44 7.44 7.44 7.44 Yield
8.90 8.90 8.90 8.90 8.90 8.90 8.90 Duration
- ----------------------------------------------------------------------------------------------------------------
94:20 7.43 7.43 7.43 7.43 7.43 7.43 7.43 Yield
8.90 8.90 8.90 8.90 8.90 8.90 8.90 Duration
- ----------------------------------------------------------------------------------------------------------------
94:24 7.41 7.41 7.41 7.41 7.41 7.41 7.41 Yield
8.91 8.91 8.91 8.91 8.91 8.91 8.91 Duration
- ----------------------------------------------------------------------------------------------------------------
94:28 7.40 7.40 7.40 7.40 7.40 7.40 7.40 Yield
8.91 8.91 8.91 8.91 8.91 8.91 8.91 Duration
- ----------------------------------------------------------------------------------------------------------------
95.0 7.38 7.38 7.38 7.38 7.38 7.38 7.38 Yield
8.92 8.92 8.92 8.92 8.92 8.92 8.92 Duration
- ----------------------------------------------------------------------------------------------------------------
95:4 7.37 7.37 7.37 7.37 7.37 7.37 7.37 Yield
8.92 8.92 8.92 8.92 8.92 8.92 8.92 Duration
- ----------------------------------------------------------------------------------------------------------------
95:8 7.35 7.35 7.35 7.35 7.35 7.35 7.35 Yield
8.93 8.93 8.93 8.93 8.93 8.93 8.93 Duration
- ----------------------------------------------------------------------------------------------------------------
95:12 7.34 7.34 7.34 7.34 7.34 7.34 7.34 Yield
8.93 8.93 8.93 8.93 8.93 8.93 8.93 Duration
- ----------------------------------------------------------------------------------------------------------------
95:16 7.32 7.32 7.32 7.32 7.32 7.32 7.32 Yield
8.93 8.93 8.93 8.93 8.93 8.93 8.93 Duration
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
**Yield tables assume no prepayments during lockout or yield maintenance
- ------------------------------------------------------------------------------
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates, and Other Information
("the Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed the Statement. You may obtain
a copy of the Statement from your sales representative.
