- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest Event
Reported): August 5, 1999
CHASE COMMERCIAL MORTGAGE SECURITIES CORP. (as
depositor under the Pooling and Servicing
Agreement, dated as of August 10, 1999, providing
for the issuance of Chase Commercial Mortgage
Securities Corp.'s Commercial Mortgage
Pass-Through Certificates, Series 1999-1).
Chase Commercial Mortgage Securities Corp.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 333-81595 13-3728743
- ---------------------------- ----------- -----------------
(State of Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
270 Park Avenue
New York, New York 10017-2070
---------------------- -------------
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (212) 270-6000
--------------
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<PAGE>
Item 5. Other Events.
- ---- ------------
Filing of Collateral/Structural Term Sheets
- -------------------------------------------
On or about August 26, 1999, the Registrant will cause the sale of
approximately $1,254,382,118 principal amount of Commercial Mortgage
Pass-Through Certificates, Series 1999-1, in several classes (collectively,
the "Certificates") pursuant to a Pooling and Servicing Agreement to be dated
as of August 10, 1999, among the Registrant, The Chase Manhattan Bank, as
master servicer, ORIX Real Estate Capital Markets, LLC, as special servicer
and State Street Bank and Trust Company, as trustee (the "Pooling and Servicing
Agreement").
In connection with the sale of certain classes of the Certificates
(collectively, the "Underwritten Certificates") pursuant to a Prospectus
Supplement relating to certain classes of the Certificates, the Registrant has
been advised by First Union Capital Markets Corp. and Chase Securities Inc.
(the "Underwriters") that the Underwriters have, following the effective date
of Registration Statement No. 333-81595, furnished to one or more prospective
investors on August 5, 1999 one Collateral/Structural Term Sheet (the "Term
Sheet"), dated as of August 5, 1999. The term "Collateral/Structural Term
Sheet" shall mean those materials which constitute "structural term sheets"
and "collateral term sheets" within the meaning of the no-action letter dated
February 17, 1995 issued by the Division of Corporation Finance to the Public
Securities Association. The Term Sheet is being filed as an exhibit to this
report.
The Term Sheet has been provided by the Underwriters. The information in
the Term Sheet is preliminary and will be superseded by the Prospectus
Supplement relating to the Underwritten Certificates and by any other
information subsequently filed with the Securities and Exchange Commission.
<PAGE>
Item 7. Financial Statements, Pro Forma Financial
-----------------------------------------
Information and Exhibits.
------------------------
(a) Not applicable.
(b) Not applicable.
(c) Exhibits:
99.1. Term Sheet dated as of August 5, 1999
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHASE COMMERCIAL MORTGAGE
SECURITIES CORP.
By: /s/ Geoffrey Souter
--------------------------------------
Name: Geoffrey Souter
Title: Assistant Vice President
Dated: August 5, 1999
<PAGE>
Exhibit Index
-------------
Exhibit Page
- ------- ----
99.1. Term Sheet dated as of August 5, 1999 6
EXHIBIT 99.1
------------
Term Sheet dated as of August 5, 1999
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
NEW ISSUE TERM SHEET
_____________________
$1,254,382,118
(APPROXIMATE)
THE CHASE MANHATTAN BANK - FIRST UNION NATIONAL BANK
COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES
SERIES 1999-1
_____________________
CHASE COMMERCIAL MORTGAGE SECURITIES CORP.--DEPOSITOR
THE CHASE MANHATTAN BANK--MASTER SERVICER
THE CHASE MANHATTAN BANK--MORTGAGE LOAN SELLER
FIRST UNION NATIONAL BANK--MORTGAGE LOAN SELLER
_____________________
FOR FURTHER INFORMATION CONTACT:
FIRST UNION CAPITAL MARKETS CHASE SECURITIES INC.
Barry Reiner Scott Davidson
Managing Director Managing Director
704-374-4499 212-834-3813
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
The analyses in this report are based upon information provided by The Chase
Manhattan Bank and First Union National Bank (the "Sellers"). First Union
Capital Markets Corp. and Chase Securities Inc. (the "Underwriters") make 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 the securities
referred to herein (the "Securities"). The information contained herein is
preliminary as of the date hereof, supersedes any previous information delivered
to you by the Underwriters 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
Underwriters are 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 the Securities.
The attached information contains certain tables and other statistical analyses
(the "Computational Materials") which have been prepared in reliance upon
information furnished by the Sellers. They may not be provided to any third
party other than the addressee's legal, tax, financial and/or accounting
advisors for the purposes of evaluating the said material. Numerous assumptions
were used in preparing the Computational Materials which may or may not be
reflected therein. As such, no assurance can be given as to the Computational
Materials' accuracy, appropriateness or completeness in any particular context;
nor as to whether the Computational Materials and/or the assumptions upon which
they are based reflect present market conditions or future market performance.
These Computational Materials should not be construed as either projections or
predictions or as legal, tax, financial or accounting advice. Any weighted
average lives, yields and principal payment periods shown in the Computational
Materials are based on prepayment assumptions, and changes in such prepayment
assumptions may dramatically affect such weighted average lives, yields and
principal payment periods. In addition, it is possible that prepayments on the
underlying assets will occur at rates slower or faster than the rates shown in
the attached Computational Materials. Furthermore, unless otherwise provided,
the Computational Materials assume no losses on the underlying assets and no
interest shortfalls. The specific characteristics of the Securities may differ
from those shown in the Computational Materials due to differences between the
actual underlying assets and the hypothetical underlying assets used in
preparing the Computational Materials. The principal amount and designation of
any Security described in the Computational Materials are subject to change
prior to issuance. Neither the Underwriters nor any of their affiliates make any
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. THIS
INFORMATION IS FURNISHED TO YOU SOLELY BY THE UNDERWRITERS AND NOT BY THE ISSUER
OF THE SECURITIES OR ANY OF ITS AFFILIATES (OTHER THAN CHASE SECURITIES INC).
THE UNDERWRITERS ARE NOT ACTING AS AGENTS FOR THE ISSUER OR ITS AFFILIATES IN
CONNECTION WITH THE PROPOSED TRANSACTION.
AUGUST 1999
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
CONTENTS
TOPIC PAGE
----- ----
Summary of Certificates 3
Summary of Issue 4
Structural Characteristics 5
Collateral Characteristics 8
Summary Statistics 9
Ten Largest Loans 12
Credit Lease Loans 15
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
<TABLE>
SUMMARY OF CERTIFICATES
<CAPTION>
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INITIAL CLASS APPROXIMATE INITIAL PRINCIPAL
CERTIFICATE PERCENTAGE PASS- ASSUMED PASS- WEIGHTED EXPECTED OR
BALANCE OR OF TOTAL THROUGH FINAL THROUGH AVERAGE RATINGS NOTIONAL
NOTIONAL CERTIFICATE APPROXIMATE RATE DISTRIBUTION RATE LIFE CUSIP (S&P/ PRINCIPAL
CLASS AMOUNT (1) BALANCE CREDIT SUPPORT DESCRIPTION DATE (5) (APP.) (APP.) (6) NO. FITCH) WINDOW (6)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-1 $210,400,000 15.05% 26.50% Fixed 7/15/07 % 5.49 yrs AAA/AAA 9/99-7/07
A-2 $816,865,579 58.45% 26.50% Fixed 7/15/09 % 9.69 yrs AAA/AAA 7/07-7/09
X $1,397,640,243 N/A N/A% WAC 7/15/29 % 9.68 yrs AAAr/AAA 9/99-7/29
(Interest-
Only)(2)
B $76,870,213 5.50% 21.00% Fixed (3) 8/15/09 % 9.92 yrs AA/AA 7/09-8/09
C $62,893,811 4.50% 16.50% Fixed (3) 8/15/09 % 9.97 yrs A/A 8/09-8/09
D $20,964,604 1.50% 15.00% Fixed (3) 8/15/09 % 9.97 yrs A-/A- 8/09-8/09
E $48,917,408 3.50% 11.50% WAC (4) 5/15/11 % 10.47 yrs BBB/BBB 8/09-5/11
F $17,470,503 1.25% 10.25% WAC (4) 5/15/11 % 11.72 yrs BBB-/BBB- 5/11-5/11
G $59,399,711 N/A N/A Fixed N/A % N/A N/A N/A N/A
H $10,482,302 N/A N/A Fixed N/A % N/A N/A N/A N/A
I $10,482,301 N/A N/A Fixed N/A % N/A N/A N/A N/A
J $20,964,604 N/A N/A Fixed N/A % N/A N/A N/A N/A
K $6,988,201 N/A N/A Fixed N/A % N/A N/A N/A N/A
L $8,735,252 N/A N/A Fixed N/A % N/A N/A N/A N/A
M $26,205,754 N/A N/A Fixed N/A % N/A N/A N/A N/A
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Approximate, subject to a permitted variance of plus or minus 5%.
(2) The pass-through rate on the Class X certificates will be equal to the
excess, if any, of (1) the weighted average of the net interest rates on
the mortgage loans (in each case adjusted if necessary to accrue on the
basis of a 360-day year consisting of twelve 30-day months), over (2) the
weighted average of the pass-through rates of the other certificates (other
than the residual certificates) as described in the prospectus supplement.
(3) For any distribution date, if the weighted average of the net interest
rates on the mortgage loans (in each case adjusted if necessary to accrue
on the basis of a 360-day year consisting of twelve 30-day months) as of
the first day of the related due period is less than the rate specified for
the Class B, Class C, Class D certificates with respect to the distribution
date, then the pass-through rate for that class of certificates on that
distribution date will equal the weighted average net mortgage rate.
(4) The pass-through rate applicable to each of the Class E and Class F
certificates as of each distribution date will equal the weighted average
of the net interest rates on the mortgage loans (in each case adjusted if
necessary to accrue on the basis of a 360-day year consisting of twelve
30-day months) as of the first day of the related due period less ___% in
each case.
(5) The assumed final distribution dates set forth in the prospectus supplement
have been determined on the basis of the assumptions described in
"Description of the Certificates--Assumed Final Distribution Date; Rated
Final Distribution Date" in the prospectus supplement. The rated final
distribution date for each class of certificates is August 15, 2031. See
"Description of the Certificates--Assumed Final Distribution Date; Rated
Final Distribution Date" in the prospectus supplement.
(6) 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
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.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
<TABLE>
SUMMARY OF ISSUE
<CAPTION>
<S> <C>
ISSUE TYPE: Sequential pay multi-class commercial mortgage REMIC
OFFERED SECURITIES: Class A-1, Class A-2, Class X, Class B, Class C, Class D, Class E and Class F
COLLATERAL: $1,397,640,244 pool of 205 fixed-rate commercial and multifamily mortgage loans
LOAN SELLERS: The Chase Manhattan Bank and First Union National Bank
DEPOSITOR: Chase Commercial Mortgage Securities Corp.
CO-LEAD MANAGERS: First Union Capital Markets Corp. and Chase Securities Inc.
MASTER SERVICER: The Chase Manhattan Bank
SPECIAL SERVICER: ORIX Real Estate Capital Markets, LLC
TRUSTEE: State Street Bank and Trust Company
RATING AGENCIES: Standard & Poor's Rating Services and Fitch IBCA, Inc.
CUT-OFF DATE: August 10, 1999
CLOSING DATE: On or about August 26, 1999
DISTRIBUTION DATE: The 15th day of the month or the next business day provided that the distribution date will
be no earlier than the fourth business day after the related determination date.
DETERMINATION DATE: The 11th day of the month or the next business day
DENOMINATIONS: The Offered Certificates will be maintained and transferred in book-entry form and issued in
denominations of $10,000 initial Certificate Balance, or in the case of the Class X
Certificates, $1,000,000 initial Notional Amount and integral multiples of $1,000 in
excess of that amount.
ERISA CONSIDERATIONS: Class A-1, Class A-2 and Class X certificates are expected to be ERISA eligible, subject to
certain conditions
SMMEA ELIGIBILITY: Class A-1, Class A-2, Class X and Class B certificates are expected to be SMMEA eligible,
subject to certain conditions
CERTIFICATE REGISTRATION: Certificate owners may hold their Certificates through DTC (in the United States) or Cedelbank
or Euroclear (in Europe) if they are Participants of that system, or indirectly through
organizations that are Participants in those systems.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
STRUCTURAL CHARACTERISTICS
INTEREST ACCRUAL PERIOD: Interest will accrue on the offered certificates during the calendar month prior to the related
distribution date and will be calculated assuming that each month has 30 days and each year has
360 days.
PASS-THROUGH RATES: Certificates will accrue interest at an annual rate called a pass-through rate which is set
forth below for each class of the offered certificates.
Class A-1 [__]%
Class A-2 [__]%
Class X [__]% (1)
Class B [__]% (2)
Class C [__]% (2)
Class D [__]% (2)
Class E [__]% (3)
Class F [__]% (3)
(1) The pass-through rate on the Class X certificates will be equal to the excess, if any, of
(1) the weighted average of the net interest rates on the mortgage loans (in each case
adjusted if necessary to accrue on the basis of a 360-day year consisting of twelve 30-day
months), over (2) the weighted average of the pass-through rates of the other certificates
(other than the residual certificates) as described in the prospectus supplement.
(2) For any distribution date, if the weighted average of the net interest rates on the
mortgage loans (in each case adjusted if necessary to accrue on the basis of a 360-day year
consisting of twelve 30-day months) as of the first day of the related due period is less
than the rate specified for the Class B, Class C or Class D certificates with respect to
the distribution date, then the pass-through rate for that class of certificates on that
distribution date will equal the weighted average net mortgage rate.
(3) The pass-through rate applicable to each of the Class E and Class F certificates as of each
distribution date will equal the weighted average of the net interest rates on the mortgage
loans (in each case adjusted if necessary to accrue on the basis of a 360-day year
consisting of twelve 30-day months) as of the first day of the related due period less ___%
in each case.
PRINCIPAL DISTRIBUTIONS: On each distribution date, funds available for distribution from the mortgage loans which are
allocable to principal on the loans, net of specified trust expenses, will be distributed to
the class of certificates outstanding, with the earliest alphabetical/numerical Class
designation, until its Certificate Balance is 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 Class A-1 and Class A-2, pro rata, rather than sequentially.
INTEREST DISTRIBUTIONS: Each Class of certificates (other than the Class X certificates) will be entitled on each
distribution date to interest accrued at its pass-through rate on the outstanding certificate
balance of such Class during the prior calendar month. The Class X certificates will be entitled
on each distribution date to the aggregate interest accrued on its notional amount during the
prior calendar month.
PREPAYMENT INTEREST SHORTFALLS: For any distribution date, any Net Aggregate Prepayment Interest Shortfall for such distribution
date will generally be allocated on a pro rata basis to each Class of certificates (other than
Class X) in proportion to its entitlement to interest. The Master Servicer's fee up to a Master
Servicing Fee Rate of 0.03% per annum and all accrued income earned by the Master Servicer on
any voluntary principal prepayment in the applicable collection period shall be offset against
any Prepayment Interest Shortfall.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
STRUCTURAL CHARACTERISTICS (continued)
PREPAYMENT PROVISIONS: Each mortgage loan restricts voluntary prepayments in one or more of the following ways:
Lockout Period, Defeasance, Yield Maintenance Period, Prepayment Premiums.
</TABLE>
<TABLE>
PERCENT OF REMAINING BALANCE ANALYSIS *
<CAPTION>
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PREPAYMENT PREMIUM AUG-99 AUG-00 AUG-01 AUG-02 AUG-03 AUG-04 AUG-05 AUG-06 AUG-07 AUG-08
---------------------- -------- --------- --------- -------- --------- --------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lock-out / Defeasance 100.0 96.2 96.3 96.4 96.4 96.5 96.5 95.9 95.8 95.6
YM 0.0 3.8 3.7 3.6 3.6 3.5 3.5 4.1 4.2 4.1
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Sub Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 99.7
----------------------------------------------------------------------------------------------------------------------
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5.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
4.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
3.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
2.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
1.0% 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Open 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3
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Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
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* Numbers represent percentage of outstanding balance as of the date indicated.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
DEFEASANCE COLLATERAL The terms of 187 mortgage loans (the "Defeasance Loans"), representing approximately 94.86%
SUBSTITUTION: of the aggregate cut-off date principal balance of all mortgage loans (the "Initial Pool
Balance"), permit the applicable borrower at any time after a specified period (the "Defeasance
Lock-out Period") to obtain a release of a Mortgaged Property from the lien of the related
Mortgage (a "Defeasance Option"). The release is subject to certain conditions. See page S-59 of
the prospectus supplement.
ALLOCATION OF PREPAYMENT On any distribution date, a percentage of all prepayment premiums with respect to the
PREMIUMS: mortgage loans will be allocated to each class of offered certificates then entitled to
principal distributions, which percentage will be equal to the product of (a) the percentage of
the total principal distribution that class receives out of the entire principal distribution
amount for that distribution date, and (b) 25%. The remaining percentage of all prepayment
premiums will be allocated to the Class X certificates.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
STRUCTURAL CHARACTERISTICS (continued)
YIELD MAINTENANCE CHARGES: On any distribution date, a percentage of all yield maintenance charges with respect to the
mortgage loans will be allocated to each class of offered certificates then entitled to
principal distributions. That percentage will be equal to the product of (a) the percentage
of the total principal distribution that class receives out of the entire principal
distribution amount for the 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 used in
determining the yield maintenance charge under the applicable mortgage loan, 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 CHARGE Yield maintenance charge (pass-through rate - yield rate)
ALLOCATION FORMULA: = -------------------------------------
allocation percentage (mortgage interest rate - yield rate)
The remaining yield maintenance charges will be allocated to the Class X certificates. 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 those classes as yield rates rise.
EXAMPLE OF ALLOCATION Mortgage interest rate = 8%
OF YIELD MAINTENANCE CHARGES: Pass-through rate for applicable class = 6%
Yield rate = 5%
Allocation Percentage for Applicable Class
------------------------------------------
6% - 5%
-------
8% - 5% = 33 1/3%
Allocation Percentage for Class X
---------------------------------
100% - 33 1/3% = 66 2/3%
REPRESENTATIONS AND WARRANTIES: In each Purchase Agreement, the applicable Mortgage Loan Seller makes certain representations
and warranties with respect to each mortgage loan sold by the Mortgage Loan Seller. See page
S-73 of the preliminary Prospectus Supplement.
PREPAYMENT PROVISIONS: % of
Initial Pool Balance
--------------------
Lock-out period followed by defeasance 92.89%
Lock-out period followed by yield maintenance charge 3.00%
Lock-out period followed by defeasance followed by
fixed premium percentage 1.97%
Lock-out period followed by a yield maintenance charge
followed by fixed premium percentage 1.89%
Other .25%
</TABLE>
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
<TABLE>
COLLATERAL CHARACTERISTICS
<CAPTION>
<S> <C>
AGGREGATE PRINCIPAL BALANCE/(1)/ $1,397,640,244
NUMBER OF MORTGAGE LOANS 205
NUMBER OF MORTGAGED PROPERTIES 217
NUMBER OF "BALLOON" MORTGAGE LOANS 192
RANGE OF MORTGAGE LOAN PRINCIPAL BALANCES $649,554 to $82,000,000
AVERAGE MORTGAGE LOAN PRINCIPAL BALANCE $6,817,757
RANGE OF MORTGAGE RATES 6.51% to 9.13%
WEIGHTED AVERAGE MORTGAGE RATE 7.68%
WEIGHTED AVERAGE ORIGINAL TERM TO MATURITY DATE/(2)/ 130 months
RANGE OF REMAINING TERMS TO MATURITY DATE/(2)/ 82 months to 359 months
WEIGHTED AVERAGE REMAINING TERM TO MATURITY DATE/(2)/ 127 months
WEIGHTED AVERAGE ORIGINAL AMORTIZATION TERM 334 months
WEIGHTED AVERAGE REMAINING AMORTIZATION TERM 331 months
WEIGHTED AVERAGE LOAN TO VALUE RATIO/(3)/ 71.52%
WEIGHTED AVERAGE LOAN TO VALUE RATIO AS OF THE MATURITY DATE/(2)(3)/ 62.54%
WEIGHTED AVERAGE OCCUPANCY RATE/(4)/ 94.74%
WEIGHTED AVERAGE DEBT SERVICE COVERAGE RATIO/(3)/ 1.34x
</TABLE>
(1) Subject to a permitted variance of plus or minus 5%.
(2) In the case of 7 mortgage loans, the anticipated prepayment date.
(3) The loan to value ratio and debt service coverage ratio information shown
above does not reflect 31 credit lease loans, representing approximately
6.30% of the aggregate principal balance of all mortgage loans as of the
cut-off date, which have DSCRs at origination that generally range from
1.00x-1.05x and LTVs at origination that generally range from 90%-100%. See
"Description of the Mortgage Pool --Credit Lease Loans" in the prospectus
supplement.
(4) The weighted average occupancy rate information shown above includes 12
hotel properties, representing approximately 3.60% of the Initial Pool
Balance, which have occupancy rates that generally range from 50% to 84%
but does not reflect 31 credit lease loans, representing approximately
6.30% of the Initial Pool Balance; if the mortgage loans secured by hotel
properties are excluded, the weighted average occupancy rate of all other
mortgage loans is 95.59%.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A DISCLAIMER, PLEASE
CONTACT YOUR SALES REPRESENTATIVE.
<PAGE>
[FIRST UNION(Registered Trademark) Logo] [CHASE Logo]
<TABLE>
SUMMARY STATISTICS
<CAPTION>
<S> <C> <C> <C> <C>
CURRENT USE OF MORTGAGED PROPERTIES
NUMBER OF AGGREGATE % OF
MORTGAGED PRINCIPAL BALANCE INITIAL POOL
CURRENT USE PROPERTIES OF THE MORTGAGE LOANS BALANCE
----------- ---------- --------------------- -------------
Multifamily 80 $532,681,582 38.1%
Anchored Retail 22 293,232,181 21.0%
Office 26 243,923,804 17.5%
Credit Lease Loans 31 88,004,343 6.3%
Healthcare 10 56,953,569 4.1%
Unanchored Retail 17 54,853,445 3.9%
Industrial 8 54,025,301 3.9%
Hotel 12 50,295,435 3.6%
Mobile Home Cmty. 6 10,188,188 .7%
Mixed Use 3 8,718,118 .6%
Self-Storage 2 4,764,278 .3%
---------- --------------------- -------------
TOTAL 217 $1,397,640,244 100%
========== ===================== =============
GEOGRAPHIC DISTRIBUTION
NUMBER OF AGGREGATE % OF
MORTGAGED PRINCIPAL BALANCE INITIAL POOL
STATE PROPERTIES OF THE MORTGAGE LOANS BALANCE
----- ---------- --------------------- -------------
California 52 $323,686,693 23.16%
New York 10 190,933,191 13.66%
Florida 18 81,989,094 5.87%
Pennsylvania 7 81,066,160 5.80%
Georgia 6 65,149,713 4.66%
Texas 20 61,138,639 4.37%
Michigan 4 59,298,964 4.24%
Nevada 9 55,416,210 3.96%
Ohio 8 55,050,679 3.94%
Virginia 13 53,219,190 3.81%
Other (and DC) 70 370,691,711 26.53%
---------- --------------------- -------------
TOTAL 217 $1,397,640,244 100%
========== ===================== =============
RANGE OF MORTGAGE RATES
NUMBER OF AGGREGATE % OF
MORTGAGE PRINCIPAL BALANCE INITIAL POOL
RANGE OF RATES LOANS OF THE MORTGAGE LOANS BALANCE
-------------- ---------- --------------------- -------------
6.510% to 6.999% 16 $88,762,124 6.4%
7.000% to 7.249% 20 98,317,730 7.0%
7.250% to 7.499% 19 288,031,308 20.6%
7.500% to 7.749% 31 265,771,802 19.0%
7.750% to 7.999% 43 334,923,662 24.0%
8.000% to 8.499% 53 271,345,865 19.4%
8.500% to 9.125% 23 50,487,751 3.6%
---------- --------------------- -------------
TOTAL 205 $1,397,640,244 100%
========== ===================== =============
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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SUMMARY STATISTICS (continued)
RANGE OF PRINCIPAL BALANCES
AGGREGATE % OF
NUMBER OF PRINCIPAL BALANCE INITIAL
RANGE OF MORTGAGE OF THE POOL
CUT-OFF DATE BALANCES LOANS MORTGAGE LOANS BALANCE
--------------------- --------- ----------------- ------------
$ 649,554 to $ 2,000,000 55 $ 81,168,102 5.8%
$ 2,000,001 to $ 5,000,000 72 235,144,350 16.8%
$ 5,000,001 to $10,000,000 44 313,037,870 22.4%
$10,000,001 to $15,000,000 11 126,269,033 9.0%
$15,000,001 to $25,000,000 14 267,579,215 19.1%
$25,000,001 to $50,000,000 8 292,441,675 20.9%
$50,000,001 to $82,000,000 1 82,000,000 5.9%
--------- ----------------- ------------
TOTAL 205 $1,397,640,244 100%
========= ================= ============
BASIS FOR ACCRUAL OF INTEREST
AGGREGATE % OF
NUMBER OF PRINCIPAL BALANCE INITIAL
MORTGAGE OF THE POOL
ACCRUAL BASIS LOANS MORTGAGE LOANS BALANCE
--------------------- --------- ----------------- ------------
Actual/360 165 $1,235,713,702 88.4%
30/360 40 161,926,542 11.6%
--------- ----------------- ------------
TOTAL 205 $1,397,640,244 100%
========= ================= ============
RANGE OF DSCRS*
AGGREGATE % OF
NUMBER OF PRINCIPAL BALANCE INITIAL
MORTGAGE OF THE POOL
RANGE OF DSCRS LOANS MORTGAGE LOANS BALANCE
--------------------- --------- ----------------- ------------
1.129x to 1.189x 2 $ 7,322,210 0.5%
1.190x to 1.249x 54 445,881,082 31.9%
1.250x to 1.299x 48 308,240,133 22.1%
1.300x to 1.349x 22 160,726,384 11.5%
1.350x to 1.399x 14 106,214,714 7.6%
1.400x to 1.599x 27 197,197,073 14.1%
1.600x to 2.137x 7 84,054,305 6.0%
--------- ----------------- ------------
TOTAL 174 $1,309,635,901 93.70%
========= ================= ============
*Excludes 31 credit lease loans, or approximately 6.30% of the Initial Pool
Balance, secured by credit leased properties meeting the guidelines described
under "Description of the Mortgage Pool--Underwriting Standards" in the Prospectus
supplement. The DSCRs for all credit lease loans at origination range generally
from 1.00x-1.05x.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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SUMMARY STATISTICS (continued)
RANGE OF LTVS*
% OF
NUMBER OF AGGREGATE INITIAL
MORTGAGE PRINCIPAL BALANCE POOL
RANGE OF LTVS LOANS OF THE MORTGAGE LOANS BALANCE
------------- --------- --------------------- -------
41.91% to 54.99% 9 $85,739,418 6.1%
55.00% to 64.99% 16 81,976,709 5.9%
65.00% to 69.99% 27 308,131,863 22.0%
70.00% to 73.33% 25 185,405,714 13.3%
73.34% to 76.66% 38 245,304,599 17.6%
76.67% to 79.99% 50 336,135,997 24.1%
80.00% to 84.95% 9 66,941,600 4.8%
--------- --------------------- -------
TOTAL 174 $1,309,635,901 93.70%
========= ===================== =======
*Excludes 31 credit lease loans, or approximately 6.30% of the Initial Pool
Balance, secured by credit leased properties meeting the guidelines described
under "Description of the Mortgage Pool--Underwriting Standards" in the prospectus
supplement. The LTV ratios for all credit lease loans at origination range
generally from 90-100%.
RANGE OF REMAINING TERM TO MATURITY DATE OR ANTICIPATED PREPAYMENT DATE
% OF
NUMBER OF AGGREGATE INITIAL
RANGE OF REMAINING MORTGAGE PRINCIPAL BALANCE POOL
TERMS (MOS.) LOANS OF THE MORTGAGE LOANS BALANCE
------------------ --------- --------------------- -------
82 to 84 3 $60,743,276 4.4%
85 to 117 38 327,655,603 23.4%
118 to 120 110 779,821,509 55.8%
121 to 180 21 134,471,932 9.6%
181 to 240 19 56,577,480 4.1%
241 to 300 13 36,875,329 2.6%
301 to 359 1 1,495,117 0.1%
--------- --------------------- -------
TOTAL 205 $1,397,640,244 100%
========= ===================== =======
AMORTIZATION TYPES
% OF
NUMBER OF AGGREGATE INITIAL
MORTGAGE PRINCIPAL BALANCE POOL
TYPE OF AMORTIZATION LOANS OF THE MORTGAGE LOANS BALANCE
-------------------- --------- --------------------- -------
Balloon Loans 185 $1,331,099,329 95.2%
Fully Amortizing 13 28,816,244 2.1%
APD 7 37,724,671 2.7%
--------- --------------------- -------
TOTAL 205 $1,397,640,244 100%
========= ===================== =======
</TABLE>
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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<TABLE>
TEN LARGEST LOANS
<CAPTION>
% OF STATED CUT-OFF
NUMBER OF INITIAL REMAINING DATE LTV
MORTGAGED CUT-OFF DATE POOL PROPERTY MORTGAGE TERM UNDERWRITTEN LTV RATIO AT
PROPERTY NAME PROPERTIES BALANCE BALANCE TYPE RATE (MOS.) DSCR RATIO MATURITY
- ------------- ---------- ------- ------- ---- ---- --------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Rego Park 1 $82,000,000 5.87% Retail 7.25% 118 1.58x 65.60% 62.37%
Capitol Square 1 50,000,000 3.58% Office 7.47% 84 2.14x 51.81% 51.81%
90 & 100 John St. 1 50,000,000 3.58% Multifamily 7.27% 117 1.29x 70.42% 62.54%
Orange Cnty. Portfolio 7 39,151,613 2.80% Office 7.61% 116 1.30x 68.15% 60.63%
McCandless Towers I 1 36,984,827 2.65% Office 8.24% 119 1.30x 65.46% 59.02%
Albany Mall 1 31,587,489 2.26% Retail 8.33% 119 1.25x 70.19% 63.41%
Oaks at Hampton 1 29,146,816 2.09% Multifamily 7.50% 117 1.22x 79.85% 70.83%
Townhouse Apartments 1 27,986,550 2.00% Multifamily 7.81% 119 1.21x 75.64% 67.51%
1845 Walnut Street 1 27,584,379 1.97% Office 7.32% 119 1.30x 68.11% 60.06%
Whispering Hills 1 24,850,885 1.78% Multifamily 6.90% 162 1.20x 75.31% 56.59%
TOTAL 16 $399,292,559 28.57% 7.53% 116 1.44X 67.60% 61.13%
</TABLE>
REGO PARK PLAZA. The Rego Park Plaza loan is secured by a first lien mortgage
on a retail property located in Rego Park, New York. The property contains a
total of approximately 343,049 square feet of net leaseable area in a
three-story building constructed in 1952, and renovated in 1997, which is
situated on approximately 5.88 acres of land. As of May 1999, the property was
approximately 100% occupied. The property is occupied by five tenants (Sears,
Marshall's, Bed, Bath & Beyond, Circuit City and Old Navy). The sponsor of the
borrower is Alexander's Inc., which is partially owned by Vornado Realty
Trust.
CAPITOL SQUARE. The Capitol Square loan is an interest-only loan secured by a
first lien mortgage on a class "A" office tower and parking garage located in
Sacramento, California. The property contains a total of approximately 501,060
square feet of net leaseable area in a twenty three-story building, with a
parking garage containing approximately 711 indoor parking spaces on four
levels. The property was constructed in 1992. As of June 1999, the property
was approximately 100% leased to the State of California. The lease expires on
December 31, 2023, unless earlier terminated in accordance with its terms. The
sponsor, who also is the borrower, is the State of California Public
Employees' Retirement System (CalPERS). As of July 1999, the State of
California General Obligation Debt currently was rated "A+" by Standard &
Poor's and "Aa3" by Moody's Investors Service, Inc. CalPERS is the largest
public pension fund in the United States.
90 & 100 JOHN STREET. The 90 & 100 John Street loan is secured by a first lien
mortgage lien on a 29-story mixed use high-rise building located in New York,
New York. The property contains a total of 221 apartment units, 137,498 square
feet of net leaseable office space, and 47,412 square feet of net leaseable
retail space, with a parking garage containing 55 parking spaces. The property
also includes a health club. The property was constructed in 1931, and fully
renovated between 1998 and 1999. As of April 1999, the apartment units were
approximately 99.1% leased, the office space was approximately 94% leased to
33 tenants, and the retail space was approximately 100% leased to 7 tenants.
The sponsor of the borrower is The Moinian Group, which currently owns and
operates over 4 million square feet of commercial properties located primarily
in the northeastern United States.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
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TEN LARGEST LOANS (continued)
ORANGE COUNTY OFFICE PORTFOLIO. The Orange County Office Portfolio loan is
secured by a first lien mortgage on 5 office/flex properties and 2 office
properties located in Orange County, California. The properties contain a
total of approximately 550,702 square feet of net leaseable area, ranging in
size from approximately 58,010 square feet to approximately 115,205 square
feet. As of June 1999, the properties had a weighted average occupancy of
95.9%, ranging from approximately 93.9% to approximately 100%. The properties
were constructed between 1979 and 1990. The sponsor of the borrower is The
Olen Companies, a real estate management and development company founded in
1973, that currently owns and operates over 3 million square feet of leasable
commercial properties in southern California.
MCCANDLESS TOWERS I. The McCandless Towers I loan is secured by a first lien
mortgage on a class "A" office building located in the center of "Silicon
Valley" in Santa Clara, California. The property contains a total of
approximately 201,420 square feet of net leaseable office space in an
eleven-story building and approximately 6,400 square feet of net leaseable
restaurant space in an adjacent one-story building. The property was
constructed in 1985. As of June 1999, the property was approximately 96.1%
occupied. The sponsor of the borrower is McCandless Management Corporation.
ALBANY MALL. The Albany Mall loan is secured by a first lien mortgage on an
enclosed regional mall located in Albany, Georgia. The mortgaged property
contains a total of 457,774 square feet of net leaseable area and is anchored
by Dillard's, Sears, Belk and JC Penney stores. The mall contains a total of
approximately 761,577 square feet of net leaseable area, of which,
approximately 304,000 square feet of net leaseable space is located in three
anchor tenants, Sears, Belk and JC Penney, which are not part of the subject
collateral. The mall was constructed in 1976, and renovated in 1988 at a cost
of $8,000,000. As of June 1999, the property was approximately 93.8% occupied.
The sponsor of the borrower is Aronov Realty Management, Inc., a privately
held real estate company founded in 1952. Aronov Realty Management, Inc.
currently owns and operates over 12 million square feet of leaseable
commercial property.
OAKS AT HAMPTON. The Oaks at Hampton loan is secured by a first lien mortgage
on a luxury apartment complex located in Rochester Hills, Michigan. The
property contains a total of 544 units: 144 one-bedroom units, 352 two-bedroom
units and 48 three-bedroom units. The amenities available to residents include
tennis courts, an Olympic-size pool with a sundeck, a sauna and shower room, a
clubhouse, a nine-hole golf course and bicycling and jogging trails. The
property was constructed in 1986. As of April 1999, the complex was
approximately 94.8% occupied. The sponsor of the borrower is Associated
Estates Realty Corporation.
THE TOWNHOUSE APARTMENTS. The Townhouse Apartments loan is secured by a first
lien mortgage on an apartment complex located in Stamford, Connecticut. The
buildings were originally built between 1956 and 1963. 228 of the units were
substantially renovated in 1998. The property contains a total of 268 units.
40 units in the three-story building have been, or are in the process of
being, substantially renovated. As of July 1999, 30 of the 40 renovated units
were pre-leased. A cash pledge of $4.654 million was funded at loan closing
and is being held as additional collateral to be released only upon property
stabilization and achievement of certain operating thresholds following
completion of the renovation with respect to 40 of the units. As of May 1999,
the property was approximately 96.9% occupied, excluding the 40 units
undergoing renovation. The sponsor of the borrower is Ceebraid-Signal
Corporation, which was founded in 1950. Ceebraid-Signal Corporation currently
owns or operates over 12,000 multifamily units on the East Coast of the United
States.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
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CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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TEN LARGEST LOANS (continued)
1845 WALNUT STREET. The 1845 Walnut Street loan is secured by a first lien
mortgage on a twenty-five-story office building located in the Rittenhouse
Square area of Philadelphia, Pennsylvania. The property contains a total of
approximately 352,384 square feet of net leaseable office space. The office
building was originally constructed in 1968 and renovated in 1995. As of June
1999, the property was approximately 96.0% occupied. The sponsors of the
borrower are Frankel Enterprises, a privately held real estate company founded
in 1936, and Resource Commercial Mortgages, Inc., a subsidiary of Resource
Properties, Inc., which is a subsidiary of Resource America, Inc. Frankel
Enterprises is a family owned real estate company that has developed 37
commercial properties since its inception in 1936. Resource America, Inc. is a
publicly traded finance company that is involved with real estate finance,
energy production and equipment leasing.
WHISPERING HILLS APARTMENTS. The Whispering Hills Apartments loan is secured
by a first lien mortgage on a 330 unit apartment complex located in Creve
Cour, St. Louis County, Missouri. The apartment complex consists of 29 two-
and three-story buildings originally constructed between 1968 and 1972. As of
May 1999, Whispering Hills Apartments had an occupancy rate of approximately
90%. The sponsor of the borrower is The Michelson Organization. The Michelson
Organization was founded in 1927 and currently owns and operates 31 properties
in 13 different states.
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CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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CREDIT LEASE LOANS
CREDIT LEASE LOANS: 31 mortgage loans, representing approximately
6.30% of the Initial Pool Balance, the credit
lease loans, are secured by Mortgages on Mortgaged
Properties that are, in each case, subject to a
lease (a "Credit Lease") to a tenant (each a
"Tenant" and, collectively, the "Tenants") which
possesses (or the parent of which or other
affiliate of which guarantees the Credit Lease
obligation possesses) the rating indicated in the
table below. Scheduled monthly rent payments (the
"Monthly Rental Payments") under the Credit Leases
are generally determined in underwriting to be
sufficient to pay in full and on a timely basis
all interest and principal scheduled to be paid
with respect to the related credit lease loans.
The Credit Leases generally provide that the
Tenant is responsible for all costs and expenses
incurred in connection with the maintenance and
operation of the related Mortgaged Property. In
the event of a casualty or condemnation of a
material portion of the related Mortgaged
Property, either
(a) the Credit Lease provides that the
Tenant is obligated to continue making
payments, and/or the Tenant must make an
offer to purchase the applicable
Mortgaged Property for an amount not
less than the unpaid principal balance
plus accrued interest on the related
credit lease loan; or
(b) the Trustee on behalf of the
Certificateholders will have the benefit
of certain non-cancelable credit lease
enhancement insurance policies (the
"Lease Enhancement Policies") obtained
to cover certain casualty and/or
condemnation risks. See "--Lease
Enhancement Policies" in the prospectus
supplement.
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CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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CREDIT LEASE LOANS (continued)
<TABLE>
CREDIT LEASE LOAN TABLE
<CAPTION>
LEASE
LOAN GUARANTOR/ CUT-OFF DATE S&P MOODY'S TYPE
NUMBER PROPERTY NAME TENANT PROPERTY TYPE BALANCE RATING(1) RATING (1) CODE(2)
- ----- ------------- ------ ------------- ------- --------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
46 CVS Lynchburg Wards & Fort CVS Corp. Drug Store $2,276,913 A A3 NN
47 CVS Madison Heights CVS Corp. Drug Store $2,180,541 A A3 NN
48 CVS Webster Ridge CVS Corp. Drug Store $1,750,099 A A3 NN
49 CVS Worcester Grafton CVS Corp. Drug Store $1,579,406 A A3 NN
51 Eagle-Joliet Eagle Food Corp. Grocery Store $3,172,803 B+ B2 NNN
53 Eckerd South Plainfield Eckerd Corp. Drug Store $3,301,409 (3) Baa2 NN
87 IHOP Chatsworth Devonshire IHOP Corp. Restaurant $1,301,296 (3) (3) NNN
88 IHOP San Antonio Loop 1604 IHOP Corp. Restaurant $1,287,004 (3) (3) NNN
107 Motel 6 1124 Baton Rouge Accor SA Hospitality $5,179,882 BBB (3) B
108 Motel 6 1179 Moline Accor SA Hospitality $2,447,838 BBB (3) B
109 Motel 6 1252 Knoxville Accor SA Hospitality $2,035,281 BBB (3) B
110 Motel 6 161 Omaha Accor SA Hospitality $2,392,831 BBB (3) B
111 Motel 6 212 McAllen Accor SA Hospitality $3,520,486 BBB (3) B
112 Motel 6 234 Murfreesboro Accor SA Hospitality $2,081,121 BBB (3) B
113 Motel 6 261 Grand Junction Accor SA Hospitality $3,768,021 BBB (3) B
114 Motel 6 Dallas Grand Accor SA Hospitality $3,052,922 BBB (3) B
Prairie
115 Motel 6 551 Houston Clark Accor SA Hospitality $3,868,868 BBB (3) B
Lane Webster
132 Q- The Sports Club Q Club Inc. Health & Fitness $6,119,172 (3) (3) B
141 Rite Aid Banning Rite Aid Corp. Drug Store $4,832,639 BBB Baa1 B
142 Rite Aid Blythe Rite Aid Corp. Drug Store $4,832,639 BBB Baa1 B
143 Rite Aide California City Rite Aid Corp. Drug Store $2,276,173 BBB Baa1 B
144 Rite Aid Chardon Rite Aid Corp. Drug Store $2,567,186 BBB Baa1 B
145 Rite Aid Danville Riverside Rite Aid Corp. Drug Store $2,236,612 BBB Baa1 NN
146 Rite Aid Fremont Rite Aid Corp. Drug Store $2,054,533 BBB Baa1 B
147 Rite Aid Oakley Rite Aid Corp. Drug Store $5,074,271 BBB Baa1 B
148 Rite Aid Pittsfield Rite Aid Corp. Drug Store $2,242,343 BBB Baa1 B
149 Rite Aid, Baltimore Street Rite Aid Corp. Drug Store $2,798,079 BBB Baa1 B
150 Rite Aid, Gibbstown Rite Aid Corp. Drug Store $2,464,645 BBB Baa1 B
151 Rite Aid, New Oxford Rite Aid Corp. Drug Store $1,971,716 BBB Baa1 B
166 Southland Gumpert Ft. Southland Corp. Convenience Store $1,359,348 BBB- Ba1 NN
Meyers
172 Stop & Shop Grafton Royal Ahold Grocery Store $1,978,266 A A3 NN
Worchester
</TABLE>
(1) Unless otherwise indicated, the ratings were the highest assigned to the
applicable Tenant or Guarantor, as applicable, by S&P and Moody's.
(2) "NNN" means triple net lease; "NN" means double net lease, "B" means
bond-type lease.
(3) Not publicly rated.
FIRST UNION CAPITAL MARKETS CORP. CHASE SECURITIES INC.
THE INFORMATION HEREIN WILL BE SUPERSEDED IN ITS ENTIRETY BY THE INFORMATION
CONTAINED IN THE FINAL PROSPECTUS SUPPLEMENT AND PROSPECTUS. THIS PAGE MUST BE
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CONTACT YOUR SALES REPRESENTATIVE.
