<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 28, 1998
CHASE COMMERCIAL MORTGAGE SECURITIES CORP. (as depositor under the Pooling and
Servicing Agreement, dated as of November 10, 1998 providing for the issuance
of Chase Commercial Mortgage Securities Corp.'s Commercial Mortgage Pass-Through
Certificates, Series 1998-2)
Chase Commercial Mortgage Securities Corp.
(Exact name of registrant as specified in its charter)
New York 333-48395 13-3728743
- ---------------------------- ----------- -------------------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File No.) Identification No.)
380 Madison Avenue
New York, New York
--------------------- 10017-2951
(Address of Principal ----------
Executive Offices) (Zip Code)
Registrant's telephone number, including area code (212) 622-3510
<PAGE>
Item 5. Other Events
The Registrant registered issuances of Commercial Mortgage
Pass-Through Certificates on a delayed or continuous basis pursuant to Rule 415
under the Securities Act of 1933, as amended (the "Act"), by a Registration
Statement on Form S-3 (Registration File No. 333-48395). Pursuant to a base
prospectus, dated October 28, 1998 and a prospectus supplement, subject to
completion, dated October 28, 1998, the Registrant plans to issue approximately
$1,151,134,170 in aggregate principal amount of its Chase Commercial Mortgage
Securities Corp. Commercial Mortgage Pass-Through Certificates, Series 1998-2
(the "Certificates") on or about November 19, 1998. This Current Report on Form
8-K discloses the use of Computational Materials (as defined in the Kidder
Peabody Acceptance Corporation I, SEC No-Action Letter, available May 24, 1994),
Structural Term Sheets (as defined in the Public Securities Association, SEC
No-Action Letter, available February 17, 1995 (the "PSA Letter")) and
Collateral Term Sheets (as defined in the PSA Letter) by the underwriters in
connection with the offering of the Certificates. A copy of such Computational
Materials, Structural Term Sheets and Collateral Term Sheets is attached hereto
as Exhibit 99.
2
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHASE COMMERCIAL MORTGAGE
SECURITIES CORP.
By: /s/ Michael J. Malter
------------------------
Name: Michael J. Malter
Title: President
Dated: October 29, 1998
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION PAGE NO.
----------- ----------- --------
Computational Materi- 5
99 als, Structural Term
Sheets and Collateral
Term Sheets, each as
prepared by the underwriters
in connection with the
offering of the Certificates
<PAGE>
$1,151,134,170 (APPROXIMATE)
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 1998-2
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
INITIAL
INITIAL AGGREGATE PASS- WEIGHTED EXPECTED PRINCIPAL OR
CERTIFICATE PASS-THROUGH THROUGH AVERAGE RATINGS NOTIONAL
BALANCE OR RATE RATE LIFE S&P/ PRINCIPAL
CLASS NOTIONAL AMOUNT (1) DESCRIPTION (APPROX.) (APPROX.) (3) DCR (4) WINDOW (3)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Senior Classes
- -----------------------------------------------------------------------------------------------------------------------------
A-1 $175,000,000 Fixed 5.99% 4.99 AAA/AAA 12/98-7/07
- -----------------------------------------------------------------------------------------------------------------------------
A-2 $436,000,000 Fixed 6.28% 9.52 AAA/AAA 7/07-10/08
- -----------------------------------------------------------------------------------------------------------------------------
A-3 $320,254,609 Fixed 6.31% 9.93 AAA/AAA 10/08-11/08
- -----------------------------------------------------------------------------------------------------------------------------
X $1,293,409,181 Variable 0.6755% 9.52 AAAr/AAA 12/98-4/23
(Interest Only) (2)
- -----------------------------------------------------------------------------------------------------------------------------
Subordinate Classes
- -----------------------------------------------------------------------------------------------------------------------------
B $64,670,459 Fixed 6.31% 10.00 AA/AA 11/08-11/08
- -----------------------------------------------------------------------------------------------------------------------------
C $71,137,505 Fixed 6.31% 10.00 A/A 11/08-11/08
- -----------------------------------------------------------------------------------------------------------------------------
D $71,137,505 Fixed 6.31% 10.00 BBB/BBB 11/08-11/08
- -----------------------------------------------------------------------------------------------------------------------------
E $12,934,092 Fixed 6.31% 10.00 BBB-/BBB- 11/08-11/08
- -----------------------------------------------------------------------------------------------------------------------------
F $71,137,505 Fixed (5) 6.31% 10.55 Not Offered N/A
- -----------------------------------------------------------------------------------------------------------------------------
G $12,934,092 Fixed (5) 6.31% 14.66 Not Offered N/A
- -----------------------------------------------------------------------------------------------------------------------------
H $25,868,184 Fixed (5) 6.31% 14.91 Not Offered N/A
- -----------------------------------------------------------------------------------------------------------------------------
I $6,467,046 Fixed (5) 6.31% 15.63 Not Offered N/A
- -----------------------------------------------------------------------------------------------------------------------------
J $25,868,184 Fixed (5) 6.31% 19.00 Not Offered N/A
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Approximate, subject to a permitted variance of plus or minus 10%.
(2) The Pass-Through Rate on the Class X Certificates will be equal to the
excess, if any, of (i) the weighted average of the net mortgage rates
of the mortgage loans (based on their respective Stated Principal
Balances), over (ii) the weighted average of the Pass-Through Rates of
the other certificates (other than the Residual Certificates).
(3) The weighted average life and period during which distributions of
principal would be received set forth in the foregoing table with
respect to each class of certificates is based on the assumptions set
forth under "Yield and Maturity Considerations--Weighted Average Life"
in the preliminary prospectus supplement and on the assumptions that
there are no prepayments (other than on each anticipated prepayment
date, if any), or losses on the mortgage loans and no extensions of
maturity dates of mortgage loans that do not have anticipated
prepayment dates.
(4) The Rated Final Distribution Date for each class of certificates is
December 18, 2030.
(5) For any distribution date, if the weighted average net mortgage rate
as of the first day of the related due period is less than the rate
specified for the Class F, Class G, Class H, Class I, or Class J
certificates with respect to such distribution date, then the
Pass-Through Rate for such class of certificates on that distribution
date will equal the weighted average net mortgage rate.
Closing Date: On or about November 19, 1998.
Collateral: 99 fixed rate mortgage loans.
Loan Seller: The Chase Manhattan Bank.
WA DSCR/LTV: 1.52x / 68.58% at the cut off date (56.28% at maturity).
Servicer: The Chase Manhattan Bank.
Master Servicer: GMAC Commercial Mortgage Corporation.
Special Servicer: GMAC Commercial Mortgage Corporation.
Underwriter: Chase Securities Inc.
THIS INFORMATION IS FURNISHED TO YOU SOLELY BY THE UNDERWRITER LISTED ABOVE AND
NOT BY CHASE COMMERCIAL MORTGAGE SECURITIES CORP.("CHASE") OR ANY OF ITS
AFFILIATES (OTHER THAN CHASE SECURITIES INC.). THE INFORMATION CONTAINED HEREIN
WILL BE SUPERSEDED IN ITS ENTIRETY BY THE DESCRIPTIONS OF THE MORTGAGE LOANS
AND THE OTHER INFORMATION CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND
PROSPECTUS.
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
TABLE OF CONTENTS
PAGE
----
I STRUCTURAL OVERVIEW 3
II TRANSACTION SUMMARY 4
III CERTIFICATE STRUCTURE SUMMARY 4-10
IV ADDITIONAL ASPECTS OF CERTIFICATES 10-13
V ADVANCES OF PRINCIPAL AND INTEREST 13-14
VI MORTGAGE LOAN/COLLATERAL SUMMARY 14-21
VII TEN LARGEST LOANS 21-23
===============================================================================
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.
2
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
STRUCTURAL OVERVIEW
<TABLE>
<CAPTION>
<----- -------------- --------------------------------------------------------------------------------------------------
Paid to administrative
Servicers fees $1,293.4MM (notional) Class X, AAAr (S&P) /AAA (DCR) (1)
and --------------
Trustee ---------------------------------------------------------------------------------------
-------->
---------- -------------- ----------- ----------- ----------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$1,293.4MM $436.0MM $320.3MM $64.7MM $71.1MM $71.1MM $12.9MM $142.3MM
Weighted principal Class A-2 Class A-3 Class B Class C Class D Class E Non-offered
Average and net ---------- AAA AAA AA A BBB BBB- Certificates
Net interest
Mortgage payments 9.5 yr WAL 9.9 yr WAL 10.0 yr WAL 10.0 yr WAL 10.0 yr WAL 10.0 yr WAL 6.31% PTR (6)
Rate from the 6.28% PTR 6.31% PTR 6.31% PTR 6.31% PTR 6.31% PTR 6.31% PTR
(Initially mortgage ---------- 1.52x DSCR
6.93%) loans $175.0MM 2.11x DSCR (5) 1.97x DSCR 1.84x DSCR 1.72x DSCR 1.71x DSCR 68.6% LTV
paid to 49.4% LTV (5) 52.8% LTV 56.6% LTV 60.4% LTV 61.0% LTV
1.52x DSCR the Class A-1
68.6% LTV trust AAA (2) 28.0% ICS (5) 23.0% ICS 17.5% ICS 12.0% ICS 11.0% ICS
--------> 5.0 yr WAL
5.99% PTR
-------------- ---------- ---------- -------------- ----------- ----------- ----------- ----------- -------------
----------------------------------------- Distributions (3) ------------------------------------->
<------------------------------------------- Losses (4) ------------------------------------------
</TABLE>
Footnotes:
"PTR" means Pass-Through Rate.
"WAL" means weighted average life, expressed in years and based on the
assumptions set forth in footnote 3 on page S-5.
"DSCR" means the ratio of (x) aggregate property underwritten cash flow to
(y) the aggregate debt service on the mortgage pool or certificates,
as the case may be.
"LTV" means the ratio of aggregate loan balance or certificate balance, as
the case may be, to aggregate appraised property value.
"ICR" means the initial credit support levels, or subordination levels, for
each class of certificates.
(1) The Pass-Through Rate on the Class X certificates will generally equal
(x) the weighted average net mortgage rate, less (y) the weighted
average pass-through rate on all classes.
(2) For Class A-1 through E, represents rating by both S&P and DCR.
(3) Distributions will be made in sequential order, or from left to right
in the chart above.
(4) Losses will be allocated in reverse sequential order, or from right to
left in the chart above.
(5) Information regarding the DSCR, LTV and ICS for the Class A
certificates is presented in the aggregate.
(6) Subject to a cap of the weighted average net mortgage rate.
===============================================================================
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.
3
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
TRANSACTION SUMMARY
This summary highlights selected information from the preliminary prospectus
supplement. It does not contain all of the information you need to consider in
making your investment decision.
Depositor..................... Chase Commercial Mortgage Securities Corp.
Servicer...................... The Chase Manhattan Bank will act as the
Servicer of the mortgage loans pursuant to a
subservicing agreement, dated as of the Cut-off
Date, between the Master Servicer and The Chase
Manhattan Bank.
Master Servicer............... GMAC Commercial Mortgage Corporation.
Special Servicer.............. GMAC Commercial Mortgage Corporation.
Paying Agent.................. The Chase Manhattan Bank. The Chase Manhattan
Bank will act as the Paying Agent, Certificate
Registrar and Authenticating Agent.
Trustee....................... State Street Bank & Trust Company.
Mortgage Loan Seller.......... The Chase Manhattan Bank. The Chase Manhattan
Bank may sell the mortgage loans through an
affiliate to the Depositor.
Cut-off Date.................. November 10, 1998.
Closing Date.................. On or about November 19, 1998.
Distribution Date............. The 18th day of the month, or, if such day is
not a business day, the next business day,
beginning in December 1998.
Interest Accrual Period....... Interest will accrue on the offered
certificates during the calendar month prior to
related distribution date and will be
calculated assuming that each month has 30 days
and a 360-day year.
CERTIFICATE STRUCTURE SUMMARY
General....................... We are offering the following eight classes of
Commercial Mortgage Pass-Through Certificates
as part of Series 1998-2:
o Class A-1
o Class A-2
o Class A-3
o Class X
o Class B
o Class C
o Class D
o Class E
===============================================================================
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.
4
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
Series 1998-2 will consist of a total of 15
classes, the following seven of which are not
being offered through the preliminary
prospectus supplement and the accompanying
prospectus: Class F, Class G, Class H, Class I,
Class J, Class R and Class LR.
The offered certificates and the private
certificates will represent beneficial
ownership interests in a trust created by Chase
Commercial Mortgage Securities Corp. The
trust's assets will primarily be 99 mortgage
loans secured by first liens on 120 commercial
and multifamily properties.
CERTIFICATE PRINCIPAL AMOUNTS
AND NOTIONAL AMOUNT........... Your certificates will have the approximate
aggregate initial principal amount or notional
amount set forth below, subject to a variance
of plus or minus 10%:
--------------------------------------------
Class A-1 $175,000,000 principal amount
--------------------------------------------
Class A-2 $436,000,000 principal amount
--------------------------------------------
Class A-3 $320,254,609 principal amount
--------------------------------------------
Class X $1,293,409,181 notional amount
--------------------------------------------
Class B $64,670,459 principal amount
--------------------------------------------
Class C $71,137,505 principal amount
--------------------------------------------
Class D $71,137,505 principal amount
--------------------------------------------
Class E $12,934,092 principal amount
--------------------------------------------
The notional amount of the Class X certificates
will generally be equal to the aggregate stated
principal balance of the mortgage loans as of
the preceding distribution date (after giving
effect to the distribution of principal on such
distribution date) or, in the case of the first
distribution date, the Cut-off Date.
===============================================================================
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.
5
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
PASS-THROUGH RATES
A. OFFERED CERTIFICATES
(OTHER THAN CLASS X).. Your certificates will accrue interest at an
annual rate called a "Pass-Through Rate" which
is set forth below (other than for the Class X
certificates) for each class.
---------------------------------------
Class A-1 5.99%
---------------------------------------
Class A-2 6.28%
---------------------------------------
Class A-3 6.31%
---------------------------------------
Class B 6.31%
---------------------------------------
Class C 6.31%
---------------------------------------
Class D 6.31%
---------------------------------------
Class E 6.31%
---------------------------------------
Interest on such Classes of Certificates will
be calculated based on a 360-day year
consisting of twelve 30-day months, or a
"30/360 basis".
B. CLASS X CERTIFICATES.. If you invest in the Class X certificates, your
Pass-Through Rate will be equal to the
difference between the weighted average
interest rate of the mortgage loans (after the
payment of all servicing and trustee fees) and
the weighted average of the Pass-Through Rates
of the other Certificates (other than the Class
R and Class LR certificates) as described in
the preliminary prospectus supplement. The
weighting will be based upon the respective
principal amounts of those classes.
For purposes of calculating the Class X
Pass-Through Rate, the mortgage loan interest
rates will not reflect any default interest
rate, any rate increase occurring after an
Anticipated Prepayment Date, any loan term
modifications agreed to by the Special Servicer
or any modifications resulting from a
borrower's bankruptcy or insolvency. In
addition, if a mortgage loan does not accrue
interest on a 30/360 basis, its interest rate
for any month that is not a 30-day month will
be recalculated so that the amount of interest
that would accrue at that rate in such month,
calculated on a 30/360 basis, will equal the
amount of interest that actually accrues on
that loan in that month.
===============================================================================
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.
6
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
DISTRIBUTIONS
A. AMOUNT AND ORDER
OF DISTRIBUTIONS...... On each distribution date, funds available for
distribution from the mortgage loans, net of
specified trust expenses, will be distributed
in the following amounts and order of priority:
First/Class A and Class X: To interest on Class
A and Class X, pro rata, in accordance with
their interest entitlements.
Second/Class A: To the extent of funds
allocated to principal, to principal on Classes
A-1, A-2 and A-3, in that order, until reduced
to zero. If each class of certificates other
than Class A has been reduced to zero, funds
available for principal will be distributed to
Classes A-1 A-2 and A-3, pro rata, rather than
sequentially.
Third/ Class A: After each class of
certificates other than Class A has been
reduced to zero, to reimburse Classes A-1, A-2
and A-3, pro rata, for any previously
unreimbursed losses on the mortgage loans
allocable to principal that were previously
borne by those classes together with interest.
Fourth/Class B: To Class B as follows: (a) to
interest on Class B in the amount of its
interest entitlement; (b) to the extent of
funds allocated to principal remaining after
distributions in respect of principal to each
Class with a higher priority (in this case,
Class A), to principal on Class B until reduced
to zero; and (c) to reimburse Class B for any
previously unreimbursed losses on the mortgage
loans allocable to principal that were
previously borne by that class, together with
interest.
Fifth/Class C: To Class C in a manner analogous
to the Class B allocations of priority Fourth
above.
Sixth/Class D: To Class D in a manner analogous
to the Class B allocations of priority Fourth
above.
Seventh/Class E: To Class E in a manner
analogous to the Class B allocations of
Priority Fourth above.
Eighth/Private Certificates: In the amounts and
order of priority described in "Description of
the Certificates--Distributions--Priority" in
the preliminary prospectus supplement.
B. INTEREST AND PRINCIPAL
ENTITLEMENTS.......... A description of each class's interest
entitlement can be found in "Description of the
Certificates ---Distributions-- Interest
Distribution Amount" in the preliminary
prospectus supplement. As described in
===============================================================================
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.
7
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
such section, there are circumstances in which
your interest entitlement for a distribution
date could be less than one full month's
interest at the Pass-Through Rate on your
certificate's principal amount or notional
amount.
A description of the amount of principal
required to be distributed to the classes
entitled to principal on a particular
distribution date also can be found in
"Description of the Certificates
---Distributions--Principal Distribution Amount"
in the preliminary prospectus supplement.
C. PREPAYMENT PREMIUMS;
YIELD MAINTENANCE
CHARGE............... Prepayment premiums and yield maintenance
charges with respect to the mortgage loans will
be allocated to each class of the certificates
then entitled to principal distributions and
the Class X Certificates as follows:
On any distribution date, a percentage of all
prepayment premiums with respect to the
mortgage loans will be allocated to each class
of certificates then entitled to principal
distributions, which percentage will be equal
to the product of (a) the percentage of the
total principal distribution that such class
receives out of the entire principal
distribution amount for such distribution date,
and (b) 25%. The remaining percentage of all
prepayment premiums will be allocated to the
Class X certificates.
On any distribution date, a percentage of all
yield maintenance charges with respect to the
mortgage loans will be allocated to each class
of certificates then entitled to principal
distributions, which percentage will be equal
to the product of (a) the percentage of the
total principal distribution that such class
receives out of the entire principal
distribution amount for such distribution date,
and (b) a percentage (which can be no greater
than 100%), the numerator of which is the
excess of the Pass-Through Rate of the class of
the certificates currently receiving principal
over the relevant yield rate, and the
denominator of which is the excess of the
interest rate of the related mortgage loan over
the yield rate. This formula is set forth
below.
-----------------------------------------------
Yield
Maintenance (Pass-Through Rate - yield rate)
Charge ---------------------------------
Allocation = (mortgage interest rate - yield
Percentage rate)
-----------------------------------------------
The remaining percentage of such yield
maintenance charges will be allocated to the
Class X certificates.
===============================================================================
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.
8
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
For a definition of yield rate see "Description
of the Mortgage Pool - Certain Terms and
Conditions of the Mortgage Loans - Prepayment
Provisions" in the prospectus supplement. In
general, the yield rate is the rate calculated
by the linear interpolation of the yields on
U.S. Treasury securities most nearly
approximating the maturity date of the Mortgage
Loan being prepaid.
In general, this formula provides for an
increase in the allocation of yield maintenance
charges to the certificates then entitled to
principal distributions relative to the Class X
certificates as yield rates decrease and a
decrease in the allocation to such classes as
yield rates rise.
Example of Allocation of Yield Maintenance
Charges
Yield Rate Fraction Methodology:
mortgage interest rate = 8%
Pass-Through Rate for applicable class = 6%
Yield Rate = 5%
Allocation for Allocation Percentage
Applicable Class for Class X
------------------------ -----------------------
6% - 5% Receives excess yield
---------------- = 33.3% maintenance charges or
8% - 5% 66.7% thereof
The following table contains general
information regarding the prepayment provisions
of the mortgage loans:
OVERVIEW OF PREPAYMENT PROTECTION(1)
Prepayment Provision Percentage (2)
-------------------- --------------
Lock-out period followed by defeasance..... 84.76%
Lock-out period followed by yield
maintenance.............................. 14.49%
Lock-out period followed by fixed premium
percentage............................... 0.75%
----------------------
(1) Most of the mortgage loans permit
prepayment without penalty for a specified
period preceding the maturity date or
Anticipated Prepayment Date.
(2) By principal balance.
See "Description of the Mortgage
Pool--Additional Mortgage Loan Information,"
"Description of the Mortgage Pool--Certain
Terms and Conditions of the Mortgage Loans" and
"--Defeasance; Collateral Substitution" in the
preliminary prospectus supplement.
===============================================================================
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.
9
<PAGE>
SUBORDINATION
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
A. GENERAL............... The chart on page 3 describes the manner in
which the rights of various classes will be
senior to the rights of other classes.
Entitlement to receive principal and interest
(other than Excess Interest) on any
distribution date is depicted from left to
right. The manner in which mortgage loan losses
are allocated is depicted from right to left.
(However, no principal payments or loan losses
will be allocated to the Class X certificates,
although loan losses will reduce the notional
amount of the Class X certificates and,
therefore, the amount of interest they accrue.)
NO OTHER FORM OF CREDIT ENHANCEMENT WILL BE
AVAILABLE FOR THE BENEFIT OF THE HOLDERS OF THE
OFFERED CERTIFICATES.
B. SHORTFALLS IN
AVAILABLE FUNDS....... The following types of shortfalls in available
funds will be allocated in the same manner as
mortgage loan losses: (i) shortfalls resulting
from additional compensation (other than the
servicing fee) which the Master Servicer or
Special Servicer is entitled to receive; (ii)
shortfalls resulting from interest on P&I
Advances made by the Master Servicer or the
Trustee (to the extent not covered by default
interest paid by the borrower); (iii)
shortfalls resulting from extraordinary
expenses of the trust; and (iv) shortfalls
resulting from a reduction of a mortgage loan's
interest rate by a bankruptcy court or from
other unanticipated or default-related expenses
of the trust.
See "Description of the
Certificates--Distributions--Payment
Priorities" in the preliminary prospectus
supplement.
ADDITIONAL ASPECTS OF CERTIFICATES
DENOMINATIONS................. The offered certificates (other than the Class
X certificates) will be offered in minimum
denominations of $25,000 initial principal
amount. The Class X certificates will be
offered in minimum denominations of $1,000,000
initial notional amount. Investments in excess
of the minimum denominations may be made in
multiples of $1,000.
REGISTRATION,
CLEARANCE AND SETTLEMENT .. Each class of offered certificates will be
registered in the name of CEDE & Co., as
nominee of The Depository Trust Company
("DTC").
You may hold your Offered Certificates through:
(i) DTC in the United States; or (ii) Cedel
Bank, S.A. ("CEDEL") or The Euroclear System
("Euroclear") in Europe. Transfers within DTC,
CEDEL or Euroclear will be made in accordance
with the usual rules and
===============================================================================
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.
10
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
operating procedures of those systems.
We may elect to terminate the book-entry system
through DTC with respect to all or any portion
of any class of the offered certificates.
See "Description of the Certificates--Book-Entry
Registration and Definitive Certificates" in the
preliminary prospectus supplement and in the
prospectus.
INFORMATION AVAILABLE TO CERTIFICATEHOLDERS
On each distribution date, the Paying Agent
will prepare and forward by mail to each
certificateholder of record, initially expected
to be CEDE & CO., a statement as to the
distributions being made on such date.
Additionally, under certain circumstances,
certificateholders of record may be entitled to
certain other information regarding the trust.
See "Description of the Certificates--Reports
to Certificateholders; Certain Available
Information" in the preliminary prospectus
supplement.
DEAL INFORMATION/ANALYTICS.... Certain information concerning the mortgage
loans and the offered certificates will be
available to you through the following
services:
o Bloomberg, L.P.
o the Paying Agent's website at
www.chase.com/global/trust/sfs/reports.html.
OPTIONAL TERMINATION.......... On any distribution date on which the aggregate
principal balance of the mortgage loans
remaining in the trust is less than 1% of the
aggregate unpaid balance of the mortgage loans
as of the Cut-off Date, certain entities
specified in the preliminary prospectus
supplement will have the option to purchase all
of the remaining mortgage loans at the price
specified in the preliminary prospectus
supplement (and all property acquired through
exercise of remedies in respect of any mortgage
loan). Exercise of this option will terminate
the trust and retire the then-outstanding
certificates.
See "Description of the
Certificates--Termination; Retirement of
Certificates" in the preliminary prospectus
supplement and "Description of the
Certificates--Termination" in the prospectus.
TAX STATUS.................... The Master Servicer will make elections to treat
a portion of the Trust (exclusive of the Excess
Interest and related distribution account for
it) as two separate REMICs - - a Lower-Tier
REMIC and an Upper-Tier REMIC - - for federal
income tax purposes. The portion of the trust
representing Excess Interest will be treated as
a grantor trust for federal income tax purposes.
In the opinion of counsel, the portion
===============================================================================
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.
11
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
of the Trust referred to above will qualify for
this treatment.
Pertinent federal income tax consequences of an
investment in the offered certificates include:
o Each class of offered certificates (and the
Class F, Class G, Class H, Class I and
Class J certificates ) will constitute
"regular interests" in the Upper-Tier
REMIC.
o The regular interests will be treated as
newly originated debt instruments for
federal income tax purposes.
o You will be required to report income on
your certificates in accordance with the
accrual method of accounting.
o The Class X certificates will, and one or
more other classes of offered certificates
may, be issued with original issue
discount.
ERISA CONSIDERATIONS ......... Subject to important considerations described
under "ERISA Considerations" in the preliminary
prospectus supplement and in the accompanying
prospectus, the Class A-1, Class A-2, Class
A-3, and Class X certificates are eligible for
purchase by persons investing assets of
employee benefit plans or individual retirement
accounts.
THE CLASS B, CLASS C, CLASS D, CLASS E AND
CLASS F CERTIFICATES MAY NOT BE PURCHASED BY,
OR TRANSFERRED TO, A PLAN OR ANY PERSON
INVESTING THE ASSETS OF A PLAN. (THIS
PROHIBITION DOES NOT APPLY TO AN INSURANCE
COMPANY INVESTING ASSETS OF ITS GENERAL ACCOUNT
UNDER CIRCUMSTANCES WHICH WOULD QUALIFY FOR AN
EXEMPTION UNDER PROHIBITED TRANSACTION CLASS
EXEMPTION 95-60.)
LEGAL INVESTMENT ............. The Class A and Class B certificates will
constitute "mortgage related securities" for
purposes of the Secondary Mortgage Market
Enhancement Act of 1984, as amended ("SMMEA"),
so long as: (i) those certificates are rated in
one of the two highest rating categories by one
or more rating agencies; and (ii) the
underlying mortgage loans are secured by real
estate. The other classes of offered
certificates will not constitute "mortgage
related securities" within the meaning of
SMMEA. See "Legal Investment" in the
preliminary prospectus supplement and in the
accompanying prospectus.
===============================================================================
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.
12
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
RATING........................ The offered certificates will not be issued
unless each of the offered classes receives the
following ratings from Standard & Poor's
Ratings Services and Duff & Phelps Credit
Rating Co.:
S&P DCR
--- ---
Class A-1 AAA AAA
Class A-2 AAA AAA
Class A-3 AAA AAA
Class X AAAr AAA
Class B AA AA
Class C A A
Class D BBB BBB
Class E BBB- BBB-
A rating agency may downgrade, qualify or
withdraw a security rating at any time.
See "Ratings" in the preliminary prospectus
supplement and the prospectus for a discussion
of the basis upon which ratings are given and
the conclusions that may not be drawn from a
rating.
ADVANCES OF PRINCIPAL AND INTEREST
A. P&I ADVANCES.......... The Master Servicer is required to advance
(each, a "P&I Advance") delinquent monthly
mortgage loan payments, if it determines that
the advance will be recoverable. If the Master
Servicer fails to make a required P&I Advance,
the Trustee is required to make such P&I
Advance. The Master Servicer will not be
required to advance balloon payments due at
maturity in excess of the regular monthly
payment or Excess Interest or any other
interest in excess of a mortgage loan's regular
interest. There may be other circumstances in
which the Master Servicer will not be required
to advance one full month of principal and
interest. The Master Servicer also is not
required to advance amounts deemed
non-recoverable or prepayment or yield
maintenance charges. See "Description of the
Certificate-Advances" in the preliminary
prospectus supplement. If an advance is made,
the Master Servicer will not advance its
servicing fee, but will advance the Trustee's
fee.
B. PROPERTY PROTECTION
ADVANCES.............. The Master Servicer may also be required to
make advances to pay delinquent real estate
taxes, assessments and hazard insurance
premiums and similar expenses necessary to
protect and maintain the mortgaged property, to
maintain the lien on the mortgaged property or
enforce the related mortgage loan documents
("Servicing Advances,"
===============================================================================
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.
13
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
and collectively with P&I Advances,
"Advances"). If the Master Servicer fails to
make a required Servicing Advance, the Trustee
is required to make such Servicing Advance. The
Master Servicer is not required to advance
amounts deemed non-recoverable. See
"Description of the Certificate-Advances" in
the preliminary prospectus supplement.
C. INTEREST ON ADVANCES.. The Master Servicer and the Trustee, as
applicable, will be entitled to interest on
Advances at the "Prime Rate" published in The
Wall Street Journal as described in the
preliminary prospectus supplement. Interest
accrued on outstanding Advances may result in
reductions in amounts otherwise payable on the
certificates. See "Description of the
Certificates-Advances" and "Subordination;
Allocation of Collateral Support Deficit" in
the preliminary prospectus supplement and
"Description of the Certificates-Advances in
Respect of Delinquencies" and "Description of
the Pooling Agreements-Certificate Account" in
the prospectus.
MORTGAGE LOAN/COLLATERAL SUMMARY
THE MORTGAGE POOL............. The trust's primary assets will be 99 fixed
rate mortgage loans, each evidenced by one or
more promissory notes secured by first
mortgages, deeds of trust or similar security
instruments on 101 commercial properties, and
19 multifamily properties (or in the case of 2
mortgaged properties, the leasehold estate in
such property).
The following tables set forth certain
anticipated characteristics of the mortgage
loans as of the Cut-off Date (unless otherwise
indicated). The sum in any column may not equal
the indicated total due to rounding. Unless
otherwise indicated, all figures presented in
this summary section are calculated as
described under "Description of the Mortgage
Pool--Additional Mortgage Loan Information" in
the preliminary prospectus supplement and all
percentages represent the indicated percentage
of the aggregate principal balance of all
mortgage loans as of the Cut-off Date.
The mortgage loans will have the following
approximate characteristics:
Aggregate Principal Balance(1) $1,293,409,180
Number of Mortgage Loans 99
Number of Mortgaged Properties 120
===============================================================================
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.
14
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
Number of "Balloon" Mortgage Loans 93
Lowest Mortgage Loan Principal Balance $956,856
Highest Mortgage Loan Principal Balance $184,884,329
Average Mortgage Loan Principal Balance $13,064,739
Range of Remaining Terms to Final Maturity 54 months to 293
Date (2) months
Weighted Average Original Term to Final 10.67 years
Maturity Date (2)
Weighted Average Remaining Term to Final 10.42 years
Maturity Date (2)
Weighted Average Original Amortization 28.30 years
Term
Range of Loan to Value Ratios 27.00% to 98.39%
Weighted Average Loan to Value Ratio 68.58%
Weighted Average Loan to Value Ratio as 56.28%
of the Maturity Date/Anticipated
Prepayment Date
Weighted Average Occupancy Rate 92%
Range of Debt Service Coverage Ratios 1.00x - 3.38x
Weighted Average Debt Service Coverage Ratio 1.518x
----------------------
(1) Subject to a permitted variance of plus or
minus 10%.
(2) In the case of 6 mortgage loans, which are
hyperamortizing mortgage loans, the
Anticipated Prepayment Date.
===============================================================================
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.
15
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
CURRENT USES OF THE MORTGAGED PROPERTIES (1)
AGGREGATE
NUMBER OF PRINCIPAL
MORTGAGED BALANCE OF THE % OF INITIAL
CURRENT USE PROPERTIES MORTGAGE LOANS POOL BALANCE
----------- ---------- -------------- ------------
Anchored Retail. 41 $ 543,079,730 41.99%
Office.......... 21 337,134,503 26.07%
Multifamily..... 19 147,886,479 11.43%
Hotel........... 7 133,022,445 10.28%
Industrial...... 5 47,736,849 3.69%
Credit Lease.... 20 43,220,621 3.34%
Parking Facility 2 21,951,372 1.70%
Unanchored 5 19,377,179 1.50%
Retail........
--- ----------------- ------
Total........... 120 $ 1,293,409,180 100.00%
=== ================= ======
----------------------
(1) Because this table presents information
relating to the mortgaged properties and
not the mortgage loans, the information for
mortgage loans secured by more than one
mortgaged property is based on allocated
loan amounts (allocating the mortgage loan
principal amount to each such property
either as set forth in the related mortgage
note or by the appraised values of the
mortgaged properties).
GEOGRAPHIC DISTRIBUTION (1)
NUMBER OF AGGREGATE
MORTGAGED PRINCIPAL BALANCE OF % OF INITIAL
STATE PROPERTIES THE MORTGAGE LOANS POOL BALANCE
----- ---------- ------------------ ------------
Massachusetts... 7 $ 259,911,685 20.10%
California...... 16 158,006,904 12.22%
New York........ 14 155,171,160 12.00%
Maryland........ 1 140,000,000 10.82%
Virginia........ 8 117,073,450 9.05%
20 Other States. 74 463,245,981 35.81%
--- ---------------- ------
Total .......... 120 $ 1,293,409,180 100.00%
=== ================ ======
----------------------
(1) Because this table presents information
relating to the mortgaged properties and
not the mortgage loans, the information for
mortgage loans secured by more than one
mortgaged property is based on allocated
loan amounts (allocating the mortgage loan
principal amount to each such property
either as set forth in the related mortgage
note or by the appraised values of the
mortgaged properties).
===============================================================================
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.
16
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
RANGE OF MORTGAGE RATES
AGGREGATE
NUMBER OF PRINCIPAL
MORTGAGE BALANCE OF THE % OF INITIAL
RANGE OF MORTGAGE RATES LOANS MORTGAGE LOANS POOL BALANCE
----------------------- --------- -------------- ------------
6.300% to 6.499%...... 3 $ 47,893,132 3.70%
6.500% to 6.699%...... 14 198,481,065 15.35%
6.700% to 6.799%...... 8 279,841,765 21.64%
6.800% to 6.999%...... 16 118,572,036 9.17%
7.000% to 7.249%...... 33 408,952,108 31.62%
7.250% to 7.749%...... 19 142,142,531 10.99%
7.750% to 8.500%...... 6 97,526,543 7.54%
-- ---------------- ------
Total 99 $ 1,293,409,180 100.00%
== ================ ======
RANGE OF PRINCIPAL BALANCES
AGGREGATE
NUMBER OF PRINCIPAL
RANGE OF MORTGAGE BALANCE OF THE % OF INITIAL
CUT-OFF DATE BALANCES LOANS MORTGAGE LOANS POOL BALANCE
--------------------- --------- -------------- ------------
$956,856 to $5,000,000....... 42 $ 134,806,758 10.42%
$5,000,001 to $10,000,000.... 25 184,759,166 14.28%
$10,000,001 to $15,000,000... 11 124,749,204 9.64%
$15,000,001 to $20,000,000... 8 143,916,624 11.13%
$20,000,001 to $40,000,000... 8 240,797,474 18.62%
$40,000,001 to $60,000,000 .. 3 139,495,624 10.79%
$60,000,001 to $184,884,329.. 2 324,884,329 25.12%
-- ---------------- ------
Total 99 $ 1,293,409,180 100.00%
== ================ ======
===============================================================================
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.
17
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
RANGE OF DSCRS
AGGREGATE
NUMBER OF PRINCIPAL
MORTGAGE BALANCE OF THE % OF INITIAL
RANGE OF DSCRS LOANS MORTGAGE LOANS POOL BALANCE
--------------- --------- -------------- ------------
1.0000 to 1.0500...... 8 $ 66,501,128 5.14%
1.0501 to 1.2999 (1) . 12 94,587,111 7.31%
1.3000 to 1.3999...... 28 227,710,896 17.61%
1.4000 to 1.4999...... 26 362,816,076 28.05%
1.5000 to 1.5999 ..... 9 354,465,588 27.41%
1.6000 to 1.9999...... 13 108,904,668 8.42%
2.0000 to 3.3779...... 3 78,423,712 6.06%
-- ---------------- ------
Total 99 $ 1,293,409,180 100.00%
== ================ ======
----------------------
(1) 7 of such mortgage loans, representing
approximately 3.34% of the aggregate
principal balance of all mortgage loans,
are mortgage loans secured by credit lease
properties meeting the guidelines described
under "Description of the Mortgage
Pool--Underwriting Standards" in the
preliminary prospectus supplement. The DSCR
for all credit lease loans is generally
1.0x.
RANGE OF LTV RATIOS
AGGREGATE
NUMBER OF PRINCIPAL BALANCE
MORTGAGE OF THE MORTGAGE % OF INITIAL
RANGE OF LTV RATIOS LOANS LOANS POOL BALANCE
------------------- --------- ----------------- ------------
27.00% to 49.99% 3 $ 50,196,167 3.88%
50.00% to 59.99% 5 205,641,262 15.90%
60.00% to 69.99%.. 16 319,952,373 24.74%
70.00% to 73.33% . 11 174,064,475 13.46%
73.34% to 76.66%.. 24 220,184,961 17.02%
76.67% to 79.99%.. 31 266,869,321 20.63%
80.00% to 98.39% (1) 9 56,500,621 4.37%
-- ----------------- ------
Total 99 $ 1,293,409,180 100.00%
== ================= ======
----------------------
(1) 7 of such mortgage loans, representing
approximately 3.34% of the aggregate
principal balance of all mortgage loans,
are mortgage loans secured by credit leased
properties meeting the guidelines described
under "Description of the Mortgage
Pool--Underwriting Standards" in the
preliminary prospectus supplement. The LTV
for all credit lease loans at origination
is generally 100%
===============================================================================
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.
18
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
RANGE OF REMAINING TERM TO MATURITY DATE OR ANTICIPATED
PREPAYMENT DATE
AGGREGATE
NUMBER OF PRINCIPAL BALANCE
RANGE OF MORTGAGE OF THE MORTGAGE % OF INITIAL
REAMANING TERMS (MOS.) LOANS LOANS POOL BALANCE
---------------------- --------- ----------------- ------------
54 to 84 2 $ 15,385,059 1.19%
85 to 108 4 69,427,435 5.37%
109 to 115 17 177,033,578 13.69%
116 to 119 48 537,907,625 41.59%
120 to 120 13 369,492,500 28.57%
121 to 180 4 64,096,579 4.96%
181 to 293 11 60,066,403 4.64%
-- ----------------- ------
Total 99 $ 1,293,409,180 100.00%
== ================= ======
All of the mortgage loans bear interest at fixed rates.
The mortgage loans require the borrowers to make scheduled payments of
principal and/or interest on the following days of each month and in
some cases have the indicated grace periods:
DUE DATES AND GRACE PERIODS
AGGREGATE
NUMBER OF PRINCIPAL BALANCE % OF
MORTGAGE OF THE MORTGAGE INITIAL
DUE DATE AND GRACE PERIOD LOANS LOANS POOL BALANCE
------------------------- --------- ----------------- ------------
Due on the first of the
month with a 10-day grace
period...................... 17 $ 194,653,401 15.05%
Due on the tenth of the
month with no grace period.. 82 1,098,755,778 84.95%
-- --------------- ------
Total.......................
99 $ 1,293,409,180 100.00%
== =============== ======
===============================================================================
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.
19
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
<TABLE>
<CAPTION>
AMORTIZATION SCHEDULES
NUMBER OF AGGREGATE % OF
MORTGAGE PRINCIPAL BALANCE INITIAL
AMORTIZATION SCHEDULE LOANS OF THE MORTGAGE LOANS POOL BALANCE
---------------------- --------- --------------------- ------------
<S> <C> <C> <C>
Significantly longer than 93 $ 1,261,643,111 97.54%
the remaining term to
maturity Substantially the
same as the remaining term to 6 31,766,068 2.46%
maturity -- --------------- -------
Total................. 99 $ 1,293,409,180 100.00%
== =============== =======
Certain mortgage loans provide for an increase in the related interest rate
after a certain date (the "Anticipated Prepayment Date"). On 6 mortgage
loans, representing approximately 22.18% of the aggregate principal balance
of all mortgage loans as of the Cut-Off Date, the interest rate will
increase by 2 to 5%. The interest accrued in excess of the original rate,
together with the interest thereon, (the "Excess Interest"), will be
deterred and will not be paid until the principal balance of the related
mortgage loan has been paid. After the Anticipated Prepayment Date, certain
cash flow in excess of that required for debt service and other expenses
with respect to the related mortgaged properties will be applied towards
the payment of principal of such mortgage loans until their principal
balance has been reduced to zero. A substantial principal payment will be
required to pay off these mortgage loans on their Anticipated Prepayment
Date; however, the amortization term is generally the same as the remaining
term to maturity if these mortgage loans are not prepaid on their
Anticipated Prepayment Date.
The mortgage loans accrue interest based on the following conventions:
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE
NUMBER OF PRINCIPAL BALANCE
MORTGAGE OF THE MORTGAGE % OF INITIAL
ACCRUAL BASIS LOANS LOANS POOL BALANCE
------------- --------- ----------------- ------------
<S> <C> <C> <C>
30/360 27 $ 256,474,860 80.17%
Actual/360 72 1,036,934,320 19.83%
Total................. 99 $1,293,409,180 100.00%
See "Description of the Mortgage Pool-Additional Mortgage Loan Information"
and "Description of the Mortgage Pool-Certain Terms and Conditions of the
Mortgage Loans" in the prospectus supplement.
</TABLE>
===============================================================================
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.
20
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
TEN LARGEST MORTGAGE LOANS
<TABLE>
<CAPTION>
% OF INITIAL STATED
CUT-OFF DATE POOL MORTGAGE REMAINING DSCR AT LTV AT LTV AT
PROPERTY NAME BALANCE BALANCE RATE TERM ORIGINATION ORIGINATION MATURITY
- ------------- ------------ ------------ -------- --------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
75 State Street Loan $184,884,329 14.29% 7.00% 119 1.51x 57.78% 50.52%
Towson Town Center Loan 140,000,000 10.82 6.75% 120 1.47x 63.06% 57.49%
Sheraton Suites 56,650,000 4.38 6.75% 120 1.54x 71.08% 55.83%
Portfolio Pool Loan
The Sheffield Loan 41,845,624 3.24 6.30% 179 3.38x 27.00% 19.58%
Smoketown Stations Loan 41,000,000 3.17 6.60% 120 1.42x 73.21% 63.27%
Arsenal Mall Loan 34,976,428 2.70 6.75% 119 1.69x 62.46% 54.25%
Hotel Monaco Loan 34,801,764 2.69 7.31% 115 1.54x 64.21% 51.56%
Sir Francis Drake 31,988,210 2.55 8.50% 105 2.03x 63.44% 52.82%
Hotel Loan
Costco Plaza II Loan 31,987,500 2.47 6.60% 120 1.57x 75.00% 64.81%
G&K Portfolio Loan 31,636,297 2.45 7.14% 114 1.32x 78.40% 69.05%
------------ ------ ----- --- ----- ------ ------
Total................. $630,770,152 48.77% 6.92% 122 1.65x 61.92% 53.36%
============ ====== ===== === ===== ====== ======
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
75 State Street Loan............. The 75 State Street Loan is primarily secured by a "Class A" office
tower located in the financial district of downtown Boston,
Massachusetts. Completed in 1988, 75 State Street occupies 1.43
acres of land and contains approximately 767,096 square feet of
rentable office space. Major tenants include Fleet National Bank,
Wellington Management Company, Cabot Corporation and Warner &
Stackpole. The sponsors of the borrower are World Financial
Properties, L.P. and its parent company Brookfield Properties
Corporation, which is a publicly traded Canadian corporation. As of
September 15, 1998, The Fleet Center was approximately 100% occupied.
Towson Town Center Loan.......... The Towson Town Center Loan is secured by the Towson Town Center, a
regional mall located in Towson, Maryland. Built in 1958 and
renovated in 1990, the Towson Town Center is situated on 27.7 acres
of land and contains approximately 955,000 square feet, including
535,757 square feet of gross leaseable area. The anchors, which are
not part of the mortgaged property, include Hecht's and Nordstrom.
The sponsor of the borrower is The Rouse Company, a publicly traded
real estate company listed on the NYSE which manages approximately
250 properties. As of November 1, 1998, the Towson Town Center was
approximately 94.2% occupied.
Sheraton Suites Portfolio-Pool I. The Sheraton Suites Portfolio-Pool I Loan is secured by three
full-service, all-suites Sheraton Hotels containing 765 suites
located in Kansas City, Missouri (257 suites), Columbus, Ohio (261
suites) and Alexandria, Virginia (247 suites). The Kansas City and
Alexandria hotels were both renovated during 1997 and 1998, with
renovations
===============================================================================
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.
21
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
planned for the Columbus hotel in December 1998. The
sponsor of the borrower is Sheraton Suites Investment Limited
Partnership ("SSILP"), a partnership which is 25% owned by ITT
Sheraton Corporation ("Sheraton"). As of October 1998 the weighted
average occupancy rate for the Sheraton Suites Portfolio for the
prior 12 month period was 72.9%.
Sheffield Loan................... The Sheffield Loan is secured by The Sheffield, a 50-story, luxury
apartment building located on Manhattan's west side in New York, New
York. Built in 1978, The Sheffield contains 50 stories, 845
apartment units, 90,405 square feet of office space, 4,878 square
feet of retail space, a roof-top health club and a 372-car
underground garage. The sponsor of the borrower is Rose Associates,
a New York general partnership which through affiliated entities owns
over 2,000 residential units and manages over 13,000 residential
units. As of June 1998, The Sheffield was approximately 99.5%
occupied.
Smoketown Stations Loan.......... The Smoketown Stations Loan is secured by Smoketown Stations, a
retail complex located along the Prince William Parkway in
Woodbridge, Virginia. The complex consists of six buildings
containing 481,889 square feet of rentable space. Major tenants
include Petsmart, Lowe's Home, Shoppers Food, Borders Inc. and Best
Buy. The sponsor of the borrower is Kimco Realty Corporation, a
publicly traded owner and operator of community shopping centers. As
of July 1998, Smoketown Stations was approximately 96% occupied.
Arsenal Mall Loan................ The Arsenal Mall Loan is secured by the Arsenal Mall, a two-level
shopping mall located in Watertown, MA. The mall, which is situated
on 19.05 acres of land, contains 284,852 square feet of rentable
space, including 221,999 square feet of retail and 52,960 square feet
of office space. Major tenants include Marshalls and Filene's
Basement. The sponsor of the borrower is New England Development
(NED), a developer/owner of 17 regional shopping malls in the
northeast. As of September 1998, the Arsenal Mall was 92.5% occupied.
Hotel Monaco Loan................ The Hotel Monaco Loan is secured by the Hotel Monaco, a full service
boutique hotel located on 0.69 acres of land near Union Square in San
Francisco, California. The hotel contains 201 guest suites, a
120-car parking garage and 9,219 square feet of meeting space. The
sponsor of the borrower is The Kimpton Hotel & Restaurant Management
Co., a privately held company which manages and operates over 20
boutique hotels. As of April 1998, the weighted average occupancy
rate for the Hotel Monaco for the prior 12 month period was 84.3%.
Costco Plaza II Loan............. The Costco Plaza II Loan is secured by Costco Plaza, a retail complex
===============================================================================
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.
22
<PAGE>
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.
located in Fairfax, Virginia. Costco Plaza consists of three
individual buildings which in the aggregate contain approximately
323,262 square feet of rentable space. Major tenants include Costco,
Home Depot and Sports Authority. The sponsor of the borrower is
Kimco Realty Corporation, a publicly traded owner and operator of
community shopping centers. As of October 1998, Costco Plaza was
approximately 92.4% occupied.
Sir Francis Drake Hotel.......... The Sir Francis Drake Hotel Loan is secured by The Sir Francis Drake
Hotel, a full-service boutique hotel located on 0.37 acres of land
near Union Square in San Francisco, California. The hotel contains
417 guest rooms and 15,000 square feet of meeting space. Additional
space is currently leased to two San Francisco restaurants, Harry
Denton's Starlight Room and Scala's Bistro. The sponsor of the
borrower is The Kimpton Hotel & Restaurant Management Co., a
privately held company which manages and operates over 20 boutique
hotels. As of December 31, 1998, the occupancy rate for the Sir
Francis Drake Hotel for the prior 12 month period was 85.0%.
G&K Portfolio II................. The Goldrich & Kest (G&K) Portfolio II Loan is secured by four garden
style apartment complexes located in San Jose, CA, Santa Clara, CA,
San Diego, CA and Canoga Park, CA. All properties have been recently
renovated. The sponsor of the borrower is G&K Industries, a company
which currently owns over 150 multifamily properties containing over
23,000 units. As of June 1998 the weighted average occupancy rates
for the apartment complexes for the prior 12 month period was 100%.
</TABLE>
===============================================================================
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.
23
