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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND OTHER
INFORMATION
The information contained in the attached materials (the "Information") may
include various forms of performance analysis, security characteristics and
securities pricing estimates for the securities addressed. Please read and
understand this entire statement before utilizing the Information. Should you
receive Information that refers to the "Statement Regarding Assumptions and
Other Information," please refer to this statement instead.
The Information is illustrative and is not intended to predict actual
results which may differ substantially from those reflected in the Information.
Performance analysis is based on certain assumptions with respect to significant
factors that may prove not to be as assumed. You should understand the
assumptions and evaluate whether they are appropriate for your purposes.
Performance results are based on mathematical models that use inputs to
calculate results. As with all models, results may vary significantly depending
upon the value of the inputs given. Inputs to these models include but are not
limited to: prepayment expectations (economic prepayment models, single expected
lifetime prepayments or a vector of periodic prepayments), interest rate
assumptions (parallel and nonparallel changes for different maturity
instruments), collateral assumptions (actual pool level data, aggregated pool
level data, reported factors or imputed factors), volatility assumptions
(historically observed or implied current) and reported information (paydown
factors, rate resets, and trustee statements). Models used in any analysis may
be proprietary making the results difficult for any third party to reproduce.
Contact your registered representative for detailed explanations of any modeling
techniques employed in the Information.
The Information addresses only certain aspects of the applicable security's
characteristics and thus does not provide a complete assessment. As such, the
Information may not reflect the impact of all structural characteristics of the
security, including call events and cash flow priorities at all prepayment
speeds and/or interest rates. You should consider whether the behavior of these
securities should be tested as assumptions different from those included in the
Information. The assumptions underlying the Information, including structure and
collateral, may be modified from time to time to reflect changed circumstances.
Any investment decision should be based only on the data in the prospectus and
the prospectus supplement or private placement memorandum (collectively, the
"Offering Documents") and the then current version of the Information. Offering
Documents contain data that is current as of their publication dates and after
publication may no longer be complete or current. The Information is provided
solely by the Underwriters not as agent for any issuer, and although it may be
based on data supplied to it by an issuer, the issuer has not participated in
its preparation and makes no representations regarding its accuracy or
completeness. Contact your registered representative for Offering Documents,
current Information or additional materials, including other models for
performance analysis, which are likely to produce different results, and any
further explanation regarding the Information.
Any pricing estimates the Underwriters have supplied at your request (a)
represent our view, at the time determined, of the investment value of the
securities between the estimated bid and offer levels, the spread between which
may be significant due to market volatility or illiquidity, (b) do not
constitute a bid by any person for any security, (c) may not constitute prices
at which the securities could have been purchased or sold in any market, (d)
have not been confirmed by actual trades, may vary from the value the
Underwriters assign any such security while in its inventory, and may not take
into account the size of a position you have in the security, and (e) may have
been derived from matrix pricing that uses data relating to other securities
whose prices are more readily ascertainable to produce a hypothetical price
based on the estimated yield spread relationship between the securities.
General Information: The data underlying the Information has been obtained from
sources that we believe are reliable, but we do not guarantee the accuracy of
the underlying data or computations based thereon. The Underwriters, and/or
individuals thereof may have positions in these securities while the Information
is circulating or during such period may engage in transactions with the issuer
or its affiliates. We act as principal in transactions with you, and
accordingly, you must determine the appropriateness for you of such transactions
and address any legal, tax, or accounting considerations applicable to you. The
Underwriters shall not be a fiduciary or advisor unless we have agreed in
writing to receive compensation specifically to act in such capacities. If you
are subject to ERISA, the Information is being furnished on the condition that
it will not form a primary basis for any investment decision. The Information is
not a solicitation of any transaction in securities which may be made only by
prospectus when required by law, in which event you may obtain such prospectus
from the Underwriters.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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BEAR ▇▇▇▇▇▇▇
COMMERCIAL MORTGAGE SECURITIES INC. 2000 - WF2
$793,450,000
PUBLICLY OFFERED CERTIFICATES
SEQUENTIAL PAY REMIC CLASSES
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
INITIAL AGGREGATE APPROX. APPROX. APPROX.
CERTIFICATE PASS-THROUGH RATE INITIAL CREDIT WEIGHTED PRINCIPAL OR
CLASS RATINGS FITCH/S&P BALANCE OR DESCRIPTION (1) SUPPORT AVERAGE LIFE NOTIONAL
NOTIONAL AMOUNT (%) (YRS.) (3) WINDOW
(+ / - 5%) (MOS.) (3)
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
A-1 AAA/AAA $170,728,000 FIXED 16.500 5.75 1-107
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
A-2 AAA/AAA 529,432,000 FIXED 16.500 9.61 107-118
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
X AAA / AAA 838,510,239 VARIABLE (2) N/A 9.17 1-236
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
B AA/AA 28,300,000 VARIABLE 13.125 9.88 118-119
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
C A/A 26,200,000 VARIABLE 10.000 9.94 119-119
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
D A-/A- 8,390,000 VARIABLE 9.000 9.94 119-119
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
E BBB/BBB 23,060,000 VARIABLE 6.250 10.22 119-128
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
F BBB-/BBB- 7,340,000 VARIABLE 5.375 11.25 128-144
----------- ------------------- ----------------------- ----------------------- ---------------- ---------------- -----------------
(1) The pass-through rates of the Class A-1, Class A-2, Class B, Class C and
Class D Certificates shall be a fixed rate per annum or, if a lower rate,
the weighted average of the respective non-default interest rates of the
mortgage loans in the mortgage pool (each net of the related Administrative
Cost Rate as defined in the preliminary prospectus supplement), each of
which interest rates will be calculated (for this purpose) by making
certain adjustments and without taking into account any reductions thereto
resulting from modifications of the mortgage loans or otherwise following
the date of initial issuance of the certificates (the "NWAC Rate"), as more
fully described in the preliminary prospectus supplement. For interest
accrual periods relating to each distribution date after November 15, 2000,
the pass-through rate of the Class E Certificates will be the NWAC Rate for
such distribution date minus ___% per annum, and the pass-through rate of
the Class F Certificates will be the NWAC Rate for that Distribution Date.
(2) The Class X pass-through rate with respect to any distribution date after
November 15, 2000 will be equal to the excess, if any, of (i) the weighted
average of the non-default interest rates of the mortgage loans in the
mortgage pool after taking into account any reductions thereto resulting
from modifications of the mortgage loans or otherwise following the date of
initial issuance of the certificates (each net of the related
Administrative Cost Rate), over (ii) the weighted average of the
pass-through rates of the other classes of certificates, as more fully
described in the preliminary prospectus supplement.
(3) Assuming that there are no delinquencies, defaults, modifications
(including extensions of maturity dates), losses or prepayments on or in
respect of the mortgage loans (other than prepayment on the Anticipated
Repayment Date of the ARD Loan), as more fully described in the preliminary
prospectus supplement.
------------------------- ------------------------------------------------------------------------------------------------------
SETTLEMENT DATE: On or about October 5, 2000.
------------------------- ------------------------------------------------------------------------------------------------------
COLLATERAL: 145 mortgage loans with an aggregate Cut-Off Date balance of $838,510,239; approximately 24.4%
office, 24.1% retail, 16.5% industrial/warehouse, 13.6% manufactured housing community, 11.1%
multifamily, and 10.3 % various other asset classes.
------------------------- ------------------------------------------------------------------------------------------------------
MORTGAGE LOAN SELLERS: ▇▇▇▇▇ Fargo Bank, National Association ($414,221,687, or approx. 49.4% of the initial pool balance);
Bear, ▇▇▇▇▇▇▇ Funding, Inc. ($366,407,815, or approx. 43.7% of the initial pool balance) and ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ Mortgage Capital Inc. ($57,880,737, or approx. 6.9% of the initial pool balance).
------------------------- ------------------------------------------------------------------------------------------------------
WA DSCR / LTV: 1.52x / 60.7% as of the Cut-Off Date (48.1% at maturity/ARD).
------------------------- ------------------------------------------------------------------------------------------------------
CALL PROTECTION: 99.8% of the mortgage loans are protected by lockout and/or yield maintenance provisions for
substantially the terms of the mortgage loans (other than, in certain cases, during the free
prepayment window beginning generally one to six months prior to the maturity of the related
mortgage loan).
------------------------- ------------------------------------------------------------------------------------------------------
SERVICER: ▇▇▇▇▇ Fargo Bank, National Association.
------------------------- ------------------------------------------------------------------------------------------------------
SPECIAL SERVICER: GMAC Commercial Mortgage Corporation.
------------------------- ------------------------------------------------------------------------------------------------------
CO-LEAD AND JOINT Bear, ▇▇▇▇▇▇▇ & Co. Inc. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated.
BOOK-RUNNING MANAGERS: (the order and allocation process will be administered by Bear ▇▇▇▇▇▇▇)
------------------------- ------------------------------------------------------------------------------------------------------
UNDERWRITERS: Bear, ▇▇▇▇▇▇▇ & Co. Inc., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated and ▇▇▇▇▇ Fargo Brokerage Services,
L.L.C.
------------------------- ------------------------------------------------------------------------------------------------------
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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TABLE OF CONTENTS
PAGE
-----
I TRANSACTION SUMMARY 2
II CERTIFICATE STRUCTURE SUMMARY 3-5
III PREPAYMENT PROVISIONS 6-12
IV MORTGAGE LOAN/COLLATERAL SUMMARY 13-17
V TEN LARGEST MORTGAGE LOANS 18-49
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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2
I. TRANSACTION SUMMARY
------------------------- ----------------------------------------------------------------------------------------------------------
DEPOSITOR: Bear ▇▇▇▇▇▇▇ Commercial Mortgage Securities Inc.
------------------------- ----------------------------------------------------------------------------------------------------------
OFFERED CERTIFICATES: Class A-1 and Class A-2 (together the "Class A Certificates"), Class B, Class C, Class D, Class E,
Class F and Class X.
------------------------- ----------------------------------------------------------------------------------------------------------
MORTGAGE LOAN SELLERS: ▇▇▇▇▇ Fargo Bank, National Association ($414,221,687, or approx. 49.4% of the initial pool balance);
Bear, ▇▇▇▇▇▇▇ Funding, Inc. ($366,407,815, or approx. 43.7% of the initial pool balance) and ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ Mortgage Capital Inc. ($57,880,737, or approx. 6.9% of the initial pool balance).
------------------------- ----------------------------------------------------------------------------------------------------------
RATING AGENCIES: Fitch, Inc. ("Fitch") and Standard & Poor's Ratings Services, a division of The ▇▇▇▇▇▇-▇▇▇▇
Companies, Inc. ("S&P").
------------------------- ----------------------------------------------------------------------------------------------------------
LEGAL STRUCTURE: Sequential pay REMIC classes rated AAA/AAA through BBB-/BBB- offered.
------------------------- ----------------------------------------------------------------------------------------------------------
CUT-OFF DATE: October 1, 2000.
------------------------- ----------------------------------------------------------------------------------------------------------
SETTLEMENT DATE: On or about October 5, 1999.
------------------------- ----------------------------------------------------------------------------------------------------------
DISTRIBUTION DATE: Monthly on the 15th day of each month or the next business day commencing November 15, 2000.
------------------------- ----------------------------------------------------------------------------------------------------------
DELAY DAYS: 14.
------------------------- ----------------------------------------------------------------------------------------------------------
SERVICER: ▇▇▇▇▇ Fargo Bank, National Association.
------------------------- ----------------------------------------------------------------------------------------------------------
SPECIAL SERVICER: GMAC Commercial Mortgage Corporation.
------------------------- ----------------------------------------------------------------------------------------------------------
PAYING AGENT: ▇▇▇▇▇ Fargo Bank Minnesota, N.A.
------------------------- ----------------------------------------------------------------------------------------------------------
TRUSTEE: LaSalle Bank National Association.
------------------------- ----------------------------------------------------------------------------------------------------------
FISCAL AGENT: ABN AMRO Bank N.V.
------------------------- ----------------------------------------------------------------------------------------------------------
ERISA: The Class A-1, A-2 and Class X Certificates may be acquired by plans subject to ERISA.
------------------------- ----------------------------------------------------------------------------------------------------------
SMMEA ELIGIBILITY: The offered certificates will not constitute "mortgage related securities" within the meaning of the
Secondary Mortgage Market Enhancement Act of 1984 ("SMMEA").
------------------------- ----------------------------------------------------------------------------------------------------------
OPTIONAL TERMINATION: 1% clean-up call.
------------------------- ----------------------------------------------------------------------------------------------------------
CERTIFICATE REGISTRATION: Each class of offered certificates will be issued initially as a global security registered in the name
of Cede & Co., as nominee of the Depository Trust Company ("DTC"). Certificates may be held through
(i) DTC in the United States, or (ii) Clearstream Banking, societe anonyme or The Euroclear System in
Europe.
------------------------- ----------------------------------------------------------------------------------------------------------
MINIMUM DENOMINATIONS: The Class A-1 and Class A-2 Certificates may be held in minimum denominations of $25,000. The Class X may
be held in minimum denominations of $1,000,000 (notional amount). The remaining classes of offered
certificates will be offered in minimum denominations of $100,000.
------------------------- ----------------------------------------------------------------------------------------------------------
PRICING SPEED: 0% CPR (assuming the Anticipated Repayment Date Loan ("ARD Loan") prepays on its respective
Anticipated Repayment Date, as defined in the preliminary prospectus supplement).
------------------------- ----------------------------------------------------------------------------------------------------------
CO-LEAD AND JOINT
BOOK-RUNNING
MANAGERS: Bear, ▇▇▇▇▇▇▇ & Co. Inc. and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated.
(the order and allocation process will be administered by Bear ▇▇▇▇▇▇▇)
------------------------- ----------------------------------------------------------------------------------------------------------
UNDERWRITERS: Bear, ▇▇▇▇▇▇▇ & Co. Inc., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated and ▇▇▇▇▇ Fargo Brokerage Services, L.L.C.
------------------------- ----------------------------------------------------------------------------------------------------------
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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3
II. CERTIFICATE STRUCTURE SUMMARY
--------------------------------------- --------------------------------------------------------------
DISTRIBUTION OF PRINCIPAL AND Distributions of interest accrued on the certificates and
INTEREST: principal thereof will be made on each distribution date to
the holders of each class of certificates in sequential
order based on their alphabetical designations. In general,
each class of certificates will receive an interest
distribution on any distribution date only after each class
with an earlier alphabetical designation (and Class X) has
received all amounts of interest distributable thereto on
such date. The Class A-1, Class A-2 and Class X Certificates
will receive interest distributions on a pro rata basis
before any other class receives interest. In general, each
class of certificates, other than the Class X Certificates,
will receive a principal distribution on any distribution
date only after each class with an earlier alphabetical
designation has received all amounts distributable thereto
on such date, and the certificate balance of each class with
an earlier alphabetical designation has been reduced to
zero. See "Description of the Certificates - Distributions"
in the preliminary prospectus supplement.
--------------------------------------- --------------------------------------------------------------
ALLOCATION OF LOSSES: Realized Losses (as defined in the pooling and servicing
agreement) of principal and interest on the mortgage loans
will generally be allocated in reverse alphabetical order
starting with the Class M Certificates. Losses allocable to
the Class A-1 and Class A-2 Certificates and, solely with
respect to Realized Losses that reduce the amount of
interest otherwise distributable, to the Class X
Certificates, will be allocated pro rata. However, certain
interest shortfalls as a result of the timing of prepayments
and certain balloon payments will be allocated to each class
of certificates pro rata based on their respective interest
entitlements. See "Description of the Certificates -
Subordination; Allocation of Losses, Shortfalls and
Expenses" in the preliminary prospectus supplement.
--------------------------------------- --------------------------------------------------------------
REPORTS TO CERTIFICATEHOLDERS: The paying agent will make available each month to any
Privileged Person as defined in the pooling and servicing
agreement, and to any interested party, via the paying
agent's website, information including, but not limited to:
(i) distributions of principal, interest, and yield
maintenance charges on each class of certificates; (ii) the
amount of P & I Advances, (iii) outstanding mortgage loan
and certificate balances; (iv) delinquency and prepayment
data; (v) the aggregate amount of servicing fees paid to the
servicer and special servicer; (vi) the amount of Realized
Losses; and (vii) the amount of any Appraisal Reductions (as
defined in the pooling and servicing agreement).
On an annual basis, the servicer will provide the trustee
and the paying agent a report for each mortgage loan, based
on the most recently available year-end financial statements
and rent rolls, containing such information and analyses
required by the pooling and servicing agreement, including,
without limitation, debt service coverage ratios, to the
extent available. The paying agent will provide the most
recent annual reports to Privileged Persons via its website.
See "Description of the Certificates Reports to
Certificateholders; Certain Available Information" and Annex
C of the preliminary prospectus supplement.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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4
CERTIFICATE STRUCTURE SUMMARY (CONT.)
-------------------------------------- --------------------------------------------------------------
REPRESENTATIONS AND WARRANTIES: Each mortgage loan seller will make certain representations
and warranties with respect to its mortgage loans. In
general, in the event that a Material Breach or Material
Document Defect (as such terms are defined in the pooling
and servicing agreement) cannot be cured by a mortgage loan
seller within the applicable cure period, the applicable
mortgage loan seller has the obligation to either (i)
repurchase the affected mortgage loan at the Purchase Price
(as defined in the pooling and servicing agreement) or (ii)
generally within three months of the closing of the
securitization, replace such mortgage loan with a comparable
mortgage loan acceptable to each rating agency. See
"Description of the Mortgage Pool - Representations and
Warranties; Repurchases" in the preliminary prospectus
supplement.
-------------------------------------- --------------------------------------------------------------
SERVICER ADVANCING: The servicer will be required to make (i) P & I Advances (as
described in the pooling and servicing agreement) and (ii)
Servicing Advances (defined as customary, reasonable and
necessary "out-of-pocket" costs and expenses in connection
with the servicing of a mortgage loan after a default
(whether or not a payment default), delinquency or other
unanticipated event, or in connection with the
administration of a REO Property). P&I Advances will be
reimbursable (or payable) from recoveries on the related
mortgage and, to the extent the servicer determines that a
P&I Advance will not be ultimately recoverable from related
recoveries, from any funds on deposit in the certificate
account and distribution account. The servicer will be
obligated to make Servicing Advances only to the extent that
the servicer determines that the amount so advanced will be
recoverable from subsequent payments or collections
(including insurance proceeds, liquidation proceeds and REO
Income) in respect of such mortgage loan or REO Property.
See "Description of the Certificates - Advances" in the
preliminary prospectus supplement. The servicer will not be
required to advance balloon payments, yield maintenance
charges or prepayment penalties.
-------------------------------------- --------------------------------------------------------------
SPECIAL SERVICER RESPONSIBILITIES: When a mortgage loan is more than 60 days delinquent, or
upon the occurrence of certain other events (each such event
as more fully described in the pooling and servicing
agreement, a "Servicing Transfer Event"), the servicer will
transfer its servicing responsibilities to the special
servicer. Subject to the Servicing Standards set forth in
the pooling and servicing agreement and subject to certain
other limitations described therein, the special servicer
may agree to certain loan extensions, amendments and
modifications following a Servicing Transfer Event. The
special servicer also generally has the right to grant or
withhold consent to material modifications, waivers,
amendments and consents recommended by the servicer with
respect to mortgage loans. With respect to a Money Term (as
defined in the pooling and servicing agreement), the
servicer is not permitted to agree to any modification,
waiver, amendment or consent without the approval of the
special servicer. See "Servicing of the Mortgage Loans" in
the preliminary prospectus supplement.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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5
CERTIFICATE STRUCTURE SUMMARY (CONT.)
--------------------------------------- -------------------------------------------------------------
APPRAISAL REDUCTIONS: An appraisal will be obtained by the special servicer if a
mortgage loan becomes 120 days delinquent, or upon the
occurrence of certain other Appraisal Events (as defined in
the pooling and servicing agreement). An Appraisal Reduction
would have the effect of reducing the amount of P&I Advances
made by the servicer, trustee or the fiscal agent, as the
case may be. See "Descriptions of the Certificates -
Appraisal Reductions" in the preliminary prospectus
supplement.
--------------------------------------- -------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
6
III. PREPAYMENT PROVISIONS
--------------------------------------- -------------------------------------------------------------
PREPAYMENT RESTRICTIONS: o Approx. 35.9% are locked out until their respective
maturity dates (or, with respect to the ARD Loan,
Anticipated Repayment Date);
o Approx. 60.3% are locked out until generally one to six
months before their respective maturity dates, after
which time there are no restrictions on voluntary
prepayments;
o Approx. 1.2% are locked out for two to four years,
after which time voluntary prepayments are permitted
with the payment of the greater of (a) 1.0% of the
outstanding principal balance of the mortgage loan at
the time of prepayment and (b) a yield maintenance
charge, except that in the case of 2 such mortgage
loans representing 1.1% of the initial pool balance,
prepayments are permitted without the payment of a
yield maintenance charge during the 3 month period of
time prior to maturity;
o Approx. 0.2% are locked out for approximately 5 years
and then permit voluntary prepayments only if
accompanied by yield maintenance charge until a
specified date and then only if accompanied by a
prepayment premium until a specified date (generally 6
months prior to the maturity date);
o Approx. 2.4% do not provide for a lockout period but
permit voluntary prepayment at any time with the
payment of a yield maintenance charge;
o Approx. 0.3% generally permit partial prepayment in
conjunction with the release of an outparcel subject to
prepayment in an amount not less than 125% of the
principal balance allocable to such outparcel and the
satisfaction of certain LTV or DSCR tests.
See "Description of the Mortgage Pool - Yield Maintenance,
Prepayment and Lockout Provisions" in the preliminary
prospectus supplement.
--------------------------------------- -------------------------------------------------------------
LOCKOUT/ DEFEASANCE: The terms of 96.2% of the mortgage loans generally permit
the related borrower at any time, commencing approximately
three to five years after the date of origination, but in no
event before the second anniversary of the issuance of the
certificates, to substitute direct non-callable U.S.
Treasury obligations for the mortgaged property and to
obtain the release of the related mortgage on the mortgaged
property. Such U.S. Treasury obligations must provide for
payments on or before each due date and the maturity
date/ARD date in an amount at least equal to the amounts
payable on each such date under the terms of the related
mortgaged loan. In the case of 42 of the mortgage loans,
representing 35.9% of the initial pool balance, such
collateral substitution is the only method of obtaining a
release of the lien on the related mortgaged property and
all voluntary prepayments are prohibited during the loan
term. In the case of 97 of these mortgage loans,
representing 60.3% of the initial pool balance, this
collateral substitution is the only method of obtaining a
release on the mortgaged property prior to a specified date
(generally 3 months but in no case more than 6 months) prior
to the maturity date and all voluntary prepayments are
prohibited prior to such period.
--------------------------------------- -------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
7
PREPAYMENT PROVISIONS (CONT.)
--------------------------------------- --------------------------------------------------------------
ALLOCATION OF YIELD MAINTENANCE On any distribution date, yield maintenance charges collected
CHARGES AND during the related Collection Period (as defined in the
PREPAYMENT PREMIUMS: pooling and servicing agreement) will be distributed by the
paying agent on the classes of offered certificates as
follows: to each of the Class A-1, Class A-2, Class B,
Class C, Class D, Class E and Class F Certificates, an amount
equal to the product of (a) a fraction, the numerator of
which is the amount distributed as principal to such class
on such Distribution Date, and the denominator of which is the
total amount distributed as principal to all classes of
certificates on such distribution date, (b) the Base
Interest Fraction for the related principal prepayment and
such class of offered certificates and (c) the aggregate
amount of yield maintenance charges collected on such
principal prepayment during the related Collection Period.
The "Base Interest Fraction" with respect to any principal
prepayment on any mortgage loan that provides for payment of
a yield maintenance charge and with respect to each of the
Class A-1, Class A-2, Class B, Class C, Class D, Class E and
Class F Certificates is a fraction (A) whose numerator is
the greater of (x) zero and (y) the difference between (i)
the pass-through rate on such class of offered certificates
and (ii) the Yield Rate (as defined in the pooling and
servicing agreement) used in calculating the yield
maintenance charge with respect to such principal prepayment
and (B) whose denominator is the difference between (i) the
Mortgage Rate (as defined in the pooling and servicing
agreement) on the related mortgage loan and (ii) the Yield
Rate used in calculating the yield maintenance charge with
respect to such principal prepayment; provided, however,
that under no circumstances shall the Base Interest Fraction
be greater than one. If such Yield Rate is greater than the
Mortgage Rate on the related mortgage loan, then the Base
Interest Fraction shall equal zero. Any remaining yield
maintenance charges will be distributed to the Class X
Certificates.
On each Distribution Date, any prepayment premiums collected
during the related Collection Period will be distributed by
the paying agent as follows: (i) to the holders of the class
of offered certificates then entitled to distributions of
principal (or if the holders of two such classes are so
entitled, pro rata to such holders according to the amount
of principal distributable to each), if any, an amount equal
to 25% of such prepayment premiums and (ii) to the holders
of the Class X Certificates the remainder of such prepayment
premium.
--------------------------------------- --------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
8
PREPAYMENT PROVISIONS (CONT.)
-------------------------------------- ---------------------------------------------------------------
RELEASE PROVISIONS: Five of the mortgage loans, representing approximately 5.6%
of the initial pool balance, are secured by two or more
mortgaged properties and generally permit the related
borrower, at any time commencing (in general) approximately
three to four years after the date of origination, but in no
event before the second anniversary of the issuance of the
certificates, to substitute non-callable U.S. Treasury
obligations for some of the mortgaged properties and to
obtain the release of the related mortgage on those
mortgaged properties, subject to among other requirements,
the satisfaction of a specified DSCR test, and in some cases
a LTV ratio test, with respect to the remaining mortgaged
property or properties. These partial releases of mortgaged
properties are generally permitted if the substitute
non-callable U.S. Treasury obligations provide for a series
of payments that are equal to 125% of the scheduled cash
flow allocable to the mortgaged property or mortgaged
properties being released.
Two of the mortgage loans, representing approximately 0.5%
of the initial pool balance, are secured by two or more
mortgaged properties and generally permit the related
borrower, at any time commencing approximately two years
after the date of origination, to obtain the release of the
related mortgage on one or more of those mortgaged
properties upon the payment of 125% of the portion of the
principal amount of the mortgage loan (or mortgage loan
group) allocated to the mortgage property or mortgaged
properties being released (and in the case of one such
mortgage loan representing approximately 0.2% of the initial
pool balance, a yield maintenance charge), subject to, among
other requirements, the satisfaction of a specified DSCR
test and in some cases a LTV ratio test, with respect to the
remaining replacement properties and the mortgaged property
or properties (taken together).
Two of the mortgage loans, representing approximately 11.4%
of the initial pool balance, are secured by two or more
mortgaged properties and generally permit the related
borrower at any time to obtain a release of one or more of
those mortgaged properties upon the delivery of a mortgage
on one or more replacement properties, subject to, among
other requirements, a specified DSCR test and LTV ratio test
with respect to the replacement properties and the remaining
properties (taken together).
Nine of the mortgage loans, representing approximately 4.3%
of the initial pool balance, generally permit the borrower
to obtain the release from the related mortgage of specified
parcels of real estate constituting a portion of the
applicable mortgage property to which no material value was
assigned or which was not considered a material source of
cash flow in determining the appraised value or underwritten
cash flow for that mortgaged property.
--------------------------------------- --------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
9
PREPAYMENT PROVISIONS (CONT.)
-----------------------------------------------------------------------------------------------------------------------------------
SUMMARY OF CALL PROTECTION
----------------------------------------------------------------- --------------- ------------------------ ------------------------
NUMBER OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
CALL PROTECTION LOANS BALANCE POOL BALANCE
----------------------------------------------------------------- --------------- ------------------------ ------------------------
Lockout through Maturity Date 42 $301,410,676 35.9%
----------------------------------------------------------------- --------------- ------------------------ ------------------------
Lockout to six (6) months or less prior to Maturity Date 97 $505,256,719 60.3%
----------------------------------------------------------------- --------------- ------------------------ ------------------------
YM to six (6) months or less prior to Maturity Date 5 $30,362,322 3.6%
----------------------------------------------------------------- --------------- ------------------------ ------------------------
Other 1 $1,480,523 0.2%
----------------------------------------------------------------- --------------- ------------------------ ------------------------
TOTAL 145 $838,510,239 100.0%
----------------------------------------------------------------- --------------- ------------------------ ------------------------
As used above, "YM" means that prepayments are permitted if they are
accompanied by the payment of a yield maintenance charge.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
10
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE
DESCRIPTION OF THE COLLATERAL IN THE PROSPECTUS SUPPLEMENT
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
11
PERCENTAGE OF REMAINING POOL BALANCE SUBJECT TO PREPAYMENT RESTRICTIONS
(DOLLAR AMOUNTS EXPRESSED IN MILLIONS)
----------------------------------------------------------------------------------------------------------------------------------
LOCKOUT/ less than DECLINING PREPAYMENT PREMIUM FREE WINDOW TOTALS
DEFEASANCE 1% OR YM
------------------------------------------------------
5% 4% 3% 2% 1%
------------------------------------------------------------------------------------------------------------------------------------
Period Date $(mm) % $(mm) % $(mm) % $(mm) % $(mm) % $(mm) % $(mm) % $(mm) % $(mm) % % of IPB
------------------------------------------------------------------------------------------------------------------------------------
Current 10/1/00 818.2 97.6 20.3 2.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 838.5 100.0 100.0
------------------------------------------------------------------------------------------------------------------------------------
Year 1 10/1/01 808.0 97.5 20.3 2.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 828.3 100.0 98.8
------------------------------------------------------------------------------------------------------------------------------------
Year 2 10/1/02 788.1 96.5 29.0 3.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 817.0 100.0 97.4
------------------------------------------------------------------------------------------------------------------------------------
Year 3 10/1/03 774.5 96.3 30.1 3.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 804.6 100.0 96.0
------------------------------------------------------------------------------------------------------------------------------------
Year 4 10/1/04 760.4 96.1 30.8 3.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 791.2 100.0 94.4
------------------------------------------------------------------------------------------------------------------------------------
Year 5 10/1/05 745.8 96.1 30.4 3.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 776.2 100.0 92.6
------------------------------------------------------------------------------------------------------------------------------------
Year 6 10/1/06 729.7 96.1 28.7 3.8 1.2 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 759.6 100.0 90.6
------------------------------------------------------------------------------------------------------------------------------------
Year 7 10/1/07 700.7 96.0 28.2 3.9 1.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 730.1 100.0 87.1
------------------------------------------------------------------------------------------------------------------------------------
Year 8 10/1/08 681.6 96.0 27.6 3.9 1.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 710.2 100.0 84.7
------------------------------------------------------------------------------------------------------------------------------------
Year 9 10/1/09 599.6 95.5 21.2 3.4 0.0 0.0 1.0 0.2 0.0 0.0 0.0 0.0 0.0 0.0 5.7 0.9 627.6 100.0 74.8
------------------------------------------------------------------------------------------------------------------------------------
Year 10 10/1/10 60.5 97.7 0.5 0.8 0.0 0.0 0.9 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 61.9 100.0 7.4
------------------------------------------------------------------------------------------------------------------------------------
Year 11 10/1/11 48.3 97.5 0.4 0.8 0.0 0.0 0.0 0.0 0.8 1.7 0.0 0.0 0.0 0.0 0.0 0.0 49.5 100.0 5.9
------------------------------------------------------------------------------------------------------------------------------------
Year 12 10/1/12 43.7 97.7 0.3 0.7 0.0 0.0 0.0 0.0 0.7 1.7 0.0 0.0 0.0 0.0 0.0 0.0 44.7 100.0 5.3
------------------------------------------------------------------------------------------------------------------------------------
Year 13 10/1/13 38.7 97.9 0.2 0.5 0.0 0.0 0.0 0.0 0.0 0.0 0.6 1.6 0.0 0.0 0.0 0.0 39.5 100.0 4.7
------------------------------------------------------------------------------------------------------------------------------------
Year 14 10/1/14 31.7 98.2 0.1 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.5 1.6 0.0 0.0 0.0 0.0 32.3 100.0 3.9
------------------------------------------------------------------------------------------------------------------------------------
Year 15 10/1/15 10.7 96.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.4 3.7 0.0 0.0 11.1 100.0 1.3
------------------------------------------------------------------------------------------------------------------------------------
Year 16 10/1/16 9.0 97.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 3.0 0.0 0.0 9.2 100.0 1.1
------------------------------------------------------------------------------------------------------------------------------------
Year 17 10/1/17 7.0 98.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.1 1.9 0.0 0.0 7.2 100.0 0.9
------------------------------------------------------------------------------------------------------------------------------------
Year 18 10/1/18 4.9 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.9 100.0 0.6
------------------------------------------------------------------------------------------------------------------------------------
Year 19 10/1/19 2.6 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.6 100.0 0.3
------------------------------------------------------------------------------------------------------------------------------------
Year 20 10/1/20 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
------------------------------------------------------------------------------------------------------------------------------------
As used above, "IPB" means initial pool balance.
As used above, "YM" means yield maintenance.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
12
PREPAYMENT PROTECTION ON THE MORTGAGE LOANS
(DOLLAR AMOUNTS EXPRESSED IN MILLIONS)
[GRAPHIC OMITTED]
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
13
IV. MORTGAGE LOAN/COLLATERAL SUMMARY
------------------------------------ --------------------------------------------------------
MORTGAGE POOL: The Mortgage Pool will consist of 145 mortgage loans
secured in the aggregate by 153 commercial, 23 multifamily
and 8 manufactured housing community properties with an
initial pool balance of approximately $838,510,239. All
statistics presented below and on the following pages are
approximate and are based on the assumed composition of
the Mortgage Pool.
------------------------------------ --------------------------------------------------------
CUT-OFF DATE BALANCE: $838,510,239.
------------------------------------ --------------------------------------------------------
AVERAGE LOAN SIZE: $5,782,829.
------------------------------------ --------------------------------------------------------
WA COUPON: 8.2490%.
------------------------------------ --------------------------------------------------------
WA DSCR: 1.52x.
------------------------------------ --------------------------------------------------------
WA LTV AS OF CUT-OFF DATE: 60.7%.
------------------------------------ --------------------------------------------------------
WA LTV AS OF MATURITY: 48.1%.
------------------------------------ --------------------------------------------------------
PROPERTY LOCATIONS: The mortgaged properties are located in 35 states
(including the District of Columbia) with the largest
concentrations in California (34.0%), Florida (10.4%),
Texas (8.8%), Illinois (6.6%) and New York (5.5%).
------------------------------------ --------------------------------------------------------
LARGEST LOANS: The largest mortgage loan represents approximately 11.2%
of the initial pool balance; the three largest mortgage
loans represent 18.8%; the ten largest mortgage loans
represent 36.4%.
------------------------------------ --------------------------------------------------------
SPONSOR CONCENTRATIONS: With the exception of Loan No. 310900140 and Loan
No. 310900195, which represent 11.2% and 1.9% of the
initial pool balance respectively, there are no sponsor
concentrations in excess of 5% of the initial pool balance.
------------------------------------ --------------------------------------------------------
REMAINING TERMS TO MATURITY/ARD: Approximately 87.8% of the mortgage loans have remaining
terms to maturity/ARD between 7 to 10 years. Approximately
1.4% of the mortgage loans have remaining terms to
maturity/ARD of less than 7 years and approximately 10.8%
have remaining terms to maturity/ARD over 10 years.
------------------------------------ --------------------------------------------------------
WA REMAINING TERM TO MATURITY/ARD: Approximately 122 months.
------------------------------------ --------------------------------------------------------
BALLOON PAYMENTS: Approximately 85.9% of the mortgage loans require balloon
payments at maturity or, in the case of the one ARD Loan
representing approximately 3.5% of the initial pool
balance, the Anticipated Repayment Date; the remaining
10.5% of the mortgage loans are fully amortizing.
------------------------------------ --------------------------------------------------------
INTEREST ACCRUAL PERIOD: Approximately 93.0% of the mortgage loans accrue interest
on an Actual/360 basis; the remaining 7.0% of the mortgage
loans accrue interest on a 30/360 basis.
------------------------------------ --------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
14
MORTGAGE LOAN/COLLATERAL SUMMARY (CONT.)
--------------------------------------------------------------------------------------------------------------
TYPE OF MORTGAGED PROPERTIES
------------------------------------- ----------------- ------------------------- ----------------------------
NUMBER OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL POOL
PROPERTY TYPE PROPERTIES BALANCE BALANCE
------------------------------------- ----------------- ------------------------- ----------------------------
Office 32 $204,686,175 24.4%
------------------------------------- ----------------- ------------------------- ----------------------------
Retail 48 $202,280,240 24.1%
------------------------------------- ----------------- ------------------------- ----------------------------
Industrial/Warehouse 44 $138,669,675 16.5%
------------------------------------- ----------------- ------------------------- ----------------------------
Manufactured Housing Comm. 8 $113,645,742 13.6%
------------------------------------- ----------------- ------------------------- ----------------------------
Multifamily 23 $93,231,526 11.1%
------------------------------------- ----------------- ------------------------- ----------------------------
Self-Storage 24 $41,076,723 4.9%
------------------------------------- ----------------- ------------------------- ----------------------------
Hospitality 1 $17,797,958 2.1%
------------------------------------- ----------------- ------------------------- ----------------------------
Theater 1 $17,770,862 2.1%
------------------------------------- ----------------- ------------------------- ----------------------------
Mixed Use 1 $4,343,178 0.5%
------------------------------------- ----------------- ------------------------- ----------------------------
Land Subject to Ground Lease 1 $2,019,898 0.2%
------------------------------------- ----------------- ------------------------- ----------------------------
Other 1 $2,988,263 0.4%
------------------------------------- ----------------- ------------------------- ----------------------------
TOTAL 184 $838,510,239 100.0%
------------------------------------- ----------------- ------------------------- ----------------------------
-------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS BY STATE
------------------------------ ------------------------ ------------------------- ---------------------------
NUMBER OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
STATE PROPERTIES BALANCE POOL BALANCE
------------------------------ ------------------------ ------------------------- ---------------------------
California (Northern) 32 $150,206,730 17.9%
------------------------------ ------------------------ ------------------------- ---------------------------
California (Southern) 29 $134,917,756 16.1%
------------------------------ ------------------------ ------------------------- ---------------------------
Florida 8 $87,581,689 10.4%
------------------------------ ------------------------ ------------------------- ---------------------------
Texas 17 $73,532,885 8.8%
------------------------------ ------------------------ ------------------------- ---------------------------
Illinois 3 $55,409,499 6.6%
------------------------------ ------------------------ ------------------------- ---------------------------
New York 12 $46,464,775 5.5%
------------------------------ ------------------------ ------------------------- ---------------------------
30 Other States (1) 83 $290,396,905 34.6%
------------------------------ ------------------------ ------------------------- ---------------------------
TOTAL 184 $838,510,239 100.0%
------------------------------ ------------------------ ------------------------- ---------------------------
(1) INCLUDING THE DISTRICT OF COLUMBIA
-------------------------------------------------------------------------------------------------------------
RANGE OF MORTGAGE RATES AS OF THE CUT-OFF DATE
-------------------------------------------------------------------------------------------------------------
RANGE OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
MORTGAGE RATES (1) NUMBER OF LOANS BALANCE POOL BALANCE
------------------------------ ------------------------ ------------------------- ---------------------------
7.3520% to 7.5000% 2 $10,889,617 1.3%
------------------------------ ------------------------ ------------------------- ---------------------------
7.5001% to 7.7500% 8 $37,411,790 4.5%
------------------------------ ------------------------ ------------------------- ---------------------------
7.7501% to 8.0000% 24 $250,533,278 29.9%
------------------------------ ------------------------ ------------------------- ---------------------------
8.0001% to 8.5000% 69 $293,371,964 35.0%
------------------------------ ------------------------ ------------------------- ---------------------------
8.5001% to 9.0000% 38 $210,518,300 25.1%
------------------------------ ------------------------ ------------------------- ---------------------------
9.0001% to 9.3800% 4 $35,785,291 4.3%
------------------------------ ------------------------ ------------------------- ---------------------------
TOTAL 145 $838,510,239 100.0%
------------------------------ ------------------------ ------------------------- ---------------------------
(1) WEIGHTED AVERAGE - 8.2490%
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
15
MORTGAGE LOAN/COLLATERAL SUMMARY (CONT.)
-----------------------------------------------------------------------------------------------------------------------
RANGE OF CUT-OFF DATE BALANCES
-------------------------------------- ------------------------ ------------------------- -----------------------------
RANGE OF AGGREGATE
CUT-OFF DATE NUMBER OF LOANS CUT-OFF DATE PERCENTAGE OF INITIAL POOL
BALANCES (1) BALANCE BALANCE
-------------------------------------- ------------------------ ------------------------- -----------------------------
$596,339 to $999,999 11 $9,351,620 1.1%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$1,000,000 to $1,999,999 43 $67,311,278 8.0%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$2,000,000 to $3,999,999 35 $103,296,065 12.3%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$4,000,000 to $5,999,999 20 $95,435,956 11.4%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$6,000,000 to $7,999,999 7 $48,920,383 5.8%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$8,000,000 to $9,999,999 10 $89,826,434 10.7%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$10,000,000 to $11,999,999 2 $22,226,388 2.7%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$12,000,000 to $13,999,999 5 $65,662,089 7.8%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$14,000,000 to $15,999,999 2 $30,871,858 3.7%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$16,000,000 to $17,999,999 2 $35,568,820 4.2%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$18,000,000 to $19,999,999 2 $36,294,057 4.3%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$20,000,000 to $24,999,999 1 $21,157,357 2.5%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$25,000,000 to $26,999,999 1 $25,406,203 3.0%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$27,000,000 to $59,999,999 3 $93,254,583 11.1%
-------------------------------------- ------------------------ ------------------------- -----------------------------
$60,000,000 to $99,999,999 1 $93,927,147 11.2%
-------------------------------------- ------------------------ ------------------------- -----------------------------
TOTAL 145 $838,510,239 100.0%
-------------------------------------- ------------------------ ------------------------- -----------------------------
(1) AVERAGE - $5,782,829
-----------------------------------------------------------------------------------------------------------------------
RANGE OF DEBT SERVICE COVERAGE RATIOS AS OF THE CUT-OFF DATE
-------------------------------------- ------------------------ ------------------------- -----------------------------
RANGE OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL POOL
DSCRS (1) NUMBER OF LOANS BALANCE BALANCE
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.14x 1 $2,374,447 0.3%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.15x to 1.19x 3 $15,707,554 1.9%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.20x to 1.24x 3 $11,590,656 1.4%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.25x to 1.29x 12 $59,486,149 7.1%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.30x to 1.34x 19 $114,118,364 13.6%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.35x to 1.39x 16 $52,613,267 6.3%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.40x to 1.44x 27 $241,150,608 28.8%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.45x to 1.49x 10 $58,901,577 7.0%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.50x to 1.59x 11 $51,046,840 6.1%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.60x to 1.69x 9 $40,972,556 4.9%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.70x to 1.79x 8 $55,714,594 6.6%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.80x to 1.89x 9 $44,190,685 5.3%
-------------------------------------- ------------------------ ------------------------- -----------------------------
1.90x to 1.99x 4 $24,253,658 2.9%
-------------------------------------- ------------------------ ------------------------- -----------------------------
2.00x to 2.49x 11 $64,098,612 7.6%
-------------------------------------- ------------------------ ------------------------- -----------------------------
2.50x to 2.99x 1 $998,427 0.1%
-------------------------------------- ------------------------ ------------------------- -----------------------------
3.00x to 3.49x 1 $1,292,247 0.2%
-------------------------------------- ------------------------ ------------------------- -----------------------------
TOTAL 145 $838,510,239 100.0%
-------------------------------------- ------------------------ ------------------------- -----------------------------
(1) WEIGHTED AVERAGE - 1.52X
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
16
MORTGAGE LOAN/COLLATERAL SUMMARY (CONT.)
-------------------------------------------------------------------------------------------------------------
RANGE OF LTV RATIOS AS OF THE CUT-OFF DATE
------------------------------ ------------------------- ------------------------- --------------------------
RANGE OF AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
LTV RATIOS (1) NUMBER OF LOANS BALANCE POOL BALANCE
------------------------------ ------------------------- ------------------------- --------------------------
25.84% to 30.00% 1 $1,292,247 0.2%
------------------------------ ------------------------- ------------------------- --------------------------
30.01% to 40.00% 12 $32,378,523 3.9%
------------------------------ ------------------------- ------------------------- --------------------------
40.01% to 45.00% 8 $40,001,697 4.8%
------------------------------ ------------------------- ------------------------- --------------------------
45.01% to 50.00% 12 $69,790,416 8.3%
------------------------------ ------------------------- ------------------------- --------------------------
50.01% to 55.00% 15 $81,640,308 9.7%
------------------------------ ------------------------- ------------------------- --------------------------
55.01% to 60.00% 19 $101,547,572 12.1%
------------------------------ ------------------------- ------------------------- --------------------------
60.01% to 65.00% 19 $188,432,532 22.5%
------------------------------ ------------------------- ------------------------- --------------------------
65.01% to 70.00% 27 $187,560,785 22.4%
------------------------------ ------------------------- ------------------------- --------------------------
70.01% to 75.00% 25 $105,355,009 12.6%
------------------------------ ------------------------- ------------------------- --------------------------
75.01% to 80.00% 7 $30,511,151 3.6%
------------------------------ ------------------------- ------------------------- --------------------------
TOTAL 145 $838,510,239 100.0%
------------------------------ ------------------------- ------------------------- --------------------------
(1) WEIGHTED AVERAGE - 60.71%
-------------------------------------------------------------------------------------------------------------
RANGE OF LTV RATIOS AS OF THE MORTGAGE LOAN MATURITY/ARD DATES
-------------------------------------------------------------------------------------------------------------
RANGE OF MATURITY AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
LTV RATIOS (1) NUMBER OF LOANS BALANCE POOL BALANCE
------------------------------ ----------------------- -------------------------- ---------------------------
0.00% to 10.00% 23 $88,167,227 10.5%
------------------------------ ----------------------- -------------------------- ---------------------------
10.01% to 20.00% 2 $2,865,697 0.3%
------------------------------ ----------------------- -------------------------- ---------------------------
20.01% to 30.00% 7 $30,520,657 3.6%
------------------------------ ----------------------- -------------------------- ---------------------------
30.01% to 35.00% 5 $18,434,455 2.2%
------------------------------ ----------------------- -------------------------- ---------------------------
35.01% to 40.00% 7 $40,002,327 4.8%
------------------------------ ----------------------- -------------------------- ---------------------------
40.01% to 45.00% 10 $55,961,604 6.7%
------------------------------ ----------------------- -------------------------- ---------------------------
45.01% to 50.00% 17 $79,302,996 9.5%
------------------------------ ----------------------- -------------------------- ---------------------------
50.01% to 55.00% 17 $85,637,611 10.2%
------------------------------ ----------------------- -------------------------- ---------------------------
55.01% to 60.00% 20 $228,079,334 27.2%
------------------------------ ----------------------- -------------------------- ---------------------------
60.01% to 65.00% 15 $107,078,758 12.8%
------------------------------ ----------------------- -------------------------- ---------------------------
65.01% to 70.00% 18 $88,456,957 10.5%
------------------------------ ----------------------- -------------------------- ---------------------------
70.01% to 71.79% 4 $14,002,617 1.7%
------------------------------ ----------------------- -------------------------- ---------------------------
TOTAL 145 $838,510,239 100.0%
------------------------------ ----------------------- -------------------------- ---------------------------
(1) WEIGHTED AVERAGE - 48.10%
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
17
MORTGAGE LOAN/COLLATERAL SUMMARY (CONT.)
-------------------------------------------------------------------------------------------------------------
RANGE OF REMAINING TERMS IN MONTHS*
-------------------------------------------------------------------------------------------------------------
RANGE OF REMAINING TERMS AGGREGATE CUT-OFF DATE PERCENTAGE OF INITIAL
(MOS.) (1) NUMBER OF LOANS BALANCE POOL BALANCE
------------------------------ ----------------------- -------------------------- ---------------------------
81 to 100 1 $11,984,978 1.4%
------------------------------ ----------------------- -------------------------- ---------------------------
101 to 120 116 $735,961,490 87.8%
------------------------------ ----------------------- -------------------------- ---------------------------
121 to 140 1 $8,000,000 1.0%
------------------------------ ----------------------- -------------------------- ---------------------------
161 to 180 19 $55,929,261 6.7%
------------------------------ ----------------------- -------------------------- ---------------------------
181 to 236 8 $26,634,511 3.2%
------------------------------ ----------------------- -------------------------- ---------------------------
TOTAL 145 $838,510,239 100.0%
------------------------------ ----------------------- -------------------------- ---------------------------
* Calculated with respect to the Anticipated Repayment Date for the ARD Loan.
(1) WEIGHTED AVERAGE - 122 MONTHS
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
18
V. TEN LARGEST MORTGAGE LOANS
----------------------------------------------------------- ---------------------------------------------------------------------
WEIGHTED AVERAGES
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
PERCENTAGE STATED REMAINING
AGGREGATE OF INITIAL REMAINING AMORT. CUT-OFF
LOAN NAME CUT-OFF POOL MORTGAGE TERMS TERM DATE LTV MATURITY
(PROPERTY TYPE) DATE BALANCE BALANCE RATE (MOS.) (MOS.) DSCR RATIO LTV
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
MHC Portfolio $93,927,147 11.20% 7.8200% 117 357 1.42x 62.17% 55.51%
(manufactured housing comm.)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
FM Global Headquarters $31,802,702 3.79% 8.7350% 106 106 1.73x 50.07% 0.00%
(office)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
U-Haul Storage Portfolio $31,726,782 3.78% 8.5230% 107 287 1.41x 68.99% 58.39%
(self-storage)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
Trolley Square $29,725,099 3.54% 9.0300% 118 358 1.34x 64.62% 59.19%
(retail)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
▇▇▇▇▇▇▇▇▇ ▇▇▇▇ Apartments $25,406,203 3.03% 7.8800% 112 352 1.41x 68.67% 60.43%
(multifamily)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
Long Beach Marketplace $21,157,357 2.52% 8.4300% 116 356 1.33x 73.98% 66.95%
(retail)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
World Kitchen Warehouse $18,205,435 2.17% 8.6400% 116 356 1.27x 65.96% 59.97%
(industrial/warehouse)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
San Francisco Medical Center $18,088,622 2.16% 8.3200% 119 359 1.26x 69.57% 62.70%
(office)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
Hilton Garden Cupertino $17,797,958 2.12% 8.1900% 108 288 2.04x 56.14% 47.02%
(hospitality)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
AMC Cantera 30 $17,770,862 2.12% 8.2350% 115 295 1.99x 49.88% 41.58%
(theater)
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
TOTAL/WEIGHTED AVERAGES $305,608,167 36.45% 8.2772% 114 316 1.49X 62.81% 50.98%
------------------------------- ------------- ------------- ----------- ------------ ------------ -------- ---------- -----------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
19
LOAN NO. 310900140 -- MANUFACTURED HOME COMMUNITIES, INC.
OVERVIEW
This mortgage loan is secured by first mortgages on the borrower's fee
interests in six age-restricted manufactured housing communities located in
three states (Florida, California and Illinois) and containing a total of 4,058
sites. As of April 20, 2000, the mortgaged properties were 96.7% occupied, which
is consistent with the portfolio occupancy since 1995. Each community offers a
full amenity package and substantially all of each community's sites are able to
accommodate a doublewide home. The mortgage loan was originated by ▇▇▇▇▇ Fargo
Bank, National Association on June 30, 2000. The information in the table
immediately set forth below is presented on a combined basis for all six
properties.
--------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $93,927,147 PROPERTY TYPE: Manufactured Housing Community
GROSS MORTGAGE RATE: 7.8200% LOCATION: See Below
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: See Below
FIRST PAYMENT DATE: 8/1/2000 UNITS: 4,058
MATURITY DATE: 7/1/2010 CUT-OFF DATE BALANCE/UNIT: $23,146.17
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $8,146,575 OCCUPANCY: 96.7%
LOCKOUT END DATE: 4/30/2010 OCCUPANCY DATE: 4/20/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 4/30/2010 APPRAISED VALUE: $151,075,000
ESCROWS CUT-OFF DATE LTV: 62.2%
REAL ESTATE TAXES: Yes BALLOON LTV: 55.5%
INSURANCE: Yes
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $11,602,442
DSCR: 1.42x
--------------------------------------------------------------------------------------------------------------------------------
THE PROPERTIES
Set forth below is certain summary information with respect to the
mortgaged properties:
----------------------------------------------------------------------------------------------------------------------------
MHC PROPERTY LOCATION ALLOCATED YEAR BUILT OCC.% (1) NO. OF
LOAN AMT. SITES
----------------------------------------------------------------------------------------------------------------------------
Mid Florida Lakes Leesburg, FL $24,000,000 1968 93.5% 1,226
----------------------------------------------------------------------------------------------------------------------------
Colonies of Margate Margate, FL $20,500,000 1974 96.1% 819
----------------------------------------------------------------------------------------------------------------------------
Willow Lake Estates Elgin, IL $19,500,000 1961 97.1% 616
----------------------------------------------------------------------------------------------------------------------------
Buccaneer Estates N. Ft. ▇▇▇▇▇▇, FL $19,300,000 1974 99.4% 971
----------------------------------------------------------------------------------------------------------------------------
DeAnza Santa ▇▇▇▇ Santa Cruz, CA $6,160,000 1970 100.0% 198
----------------------------------------------------------------------------------------------------------------------------
Bay Lake Estates Nokomis, FL $4,790,000 1972 99.6% 228
----------------------------------------------------------------------------------------------------------------------------
(1) Occupancy percentages are as of April 2000.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
20
Set forth below is a general description and certain other information
with respect to each related mortgaged property.
Mid Florida Lakes. Mid Florida Lakes is located in Leesburg, Florida
and contains 1,226 sites. The community was developed in 1968, with an
additional 31 sites added in 1999. Mid Florida Lakes is an age-restricted
community, with 95% of the residents being 55 years of age or older. 100% of the
sites in the community can accommodate doublewide homes. The community offers a
full amenity package including gated access, a clubhouse, two swimming pools,
laundry room, storage, tennis court, 18 shuffleboard courts, bocce courts,
horseshoe pits, fitness center, fishing ponds and a lake with boat docks. All
homes have brick skirting, carports, concrete drives and screened porches.
According to the appraisal, occupancy rates for manufactured housing
communities in the local market range from 94% to 100%. As of April 2000, Mid
Florida Lakes had an occupancy rate of 93.5%, which includes 31 sites added in
1999; excluding the new 31 sites, the occupancy rate is 96%. Mid Florida Lakes
has an appraised value of $35,800,000 based on an appraisal as of May 18, 2000.
The underwritten cash flow for the property is $2,921,818.
SUMMARIZED OPERATING RESULTS
-----------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-----------------------------------------------------------------------------------------------------------------------------
Occupancy % 95.6% 95.7% 94.3% 94.0% 94.0%
-----------------------------------------------------------------------------------------------------------------------------
Effective gross income $4,238,575 $4,413,966 $4,467,718 $4,572,954 $4,632,851
-----------------------------------------------------------------------------------------------------------------------------
Total expenses $1,266,600 $1,324,262 $1,412,452 $1,587,695 $1,649,733
-----------------------------------------------------------------------------------------------------------------------------
Net operating income $2,971,975 $3,089,704 $3,055,266 $2,985,259 $2,983,118
-----------------------------------------------------------------------------------------------------------------------------
Net cash flow $2,954,351 $3,086,692 $3,055,266 $2,954,659 $2,921,818
-----------------------------------------------------------------------------------------------------------------------------
Colonies of Margate. Colonies of Margate is located in Margate, Florida
and contains 819 sites. The community was developed in 1974, with additional
sites added in 1981. Colonies of Margate is an age-restricted community, with
95% of the residents being 55 years of age or older. 100% of the sites in the
community can accommodate doublewide homes. The community offers a full amenity
package including gated access, two clubhouses, laundry rooms, two swimming
pools, tennis courts, bocce court, pentanque courts, spa, fitness center,
racquetball and basketball courts and a RV/boat storage area. All homes have
brick skirting, carports, concrete drives and screened porches.
According to the appraisal, occupancy rates for manufactured housing
communities in the local market range from 94% to 100%. As of April 2000,
Colonies of Margate had an occupancy rate of 96.1%. Colonies of Margate has an
appraised value of $32,300,000 based on an appraisal as of May 22, 2000. The
underwritten cash flow for the property is $2,591,200.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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21
SUMMARIZED OPERATING RESULTS
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-------------------------------------------------------------------------------------------------------------------------------
Occupancy % 97.7% 96.1% 96.2% 96.0% 95.0%
-------------------------------------------------------------------------------------------------------------------------------
Effective gross income $4,177,236 $4,204,178 $4,235,609 $4,293,462 $4,219,899
-------------------------------------------------------------------------------------------------------------------------------
Total expenses $1,403,350 $1,354,866 $1,401,576 $1,517,509 $1,587,749
-------------------------------------------------------------------------------------------------------------------------------
Net operating income $2,773,886 $2,849,312 $2,834,033 $2,775,953 $2,632,150
-------------------------------------------------------------------------------------------------------------------------------
Net cash flow $2,763,240 $2,822,526 $2,834,033 $2,755,478 $2,591,200
-------------------------------------------------------------------------------------------------------------------------------
Willow Lake Estates. Willow Lake Estates is located in Elgin, Illinois
and contains 616 sites. The community was developed in 1961 and underwent
renovations in 1999. Willow Lake Estates is an age-restricted community, with
95% of the residents being 55 years of age or older. 100% of the sites in the
community can accommodate doublewide homes. The community offers a full amenity
package including a pool, laundry facility, clubhouse, billiard room, fitness
center, horseshoe pits, shuffleboard and a 22-acre private fresh water fishing
lake with a picnic area and boats. All homes have brick skirting, carports,
concrete drives and screened porches.
According to the appraisal, occupancy rates for manufactured housing
communities in the local market range from 95% to 98%. As of April 2000, Willow
Lake Estates had an occupancy rate of 97.1%. Willow Lake Estates has an
appraised value of $33,600,000 based on an appraisal as of May 16, 2000. The
underwritten cash flow for the property is $2,456,032.
SUMMARIZED OPERATING RESULTS
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-------------------------------------------------------------------------------------------------------------------------------
Occupancy % 98.2% 97.0% 97.3% 96.9% 95.0%
-------------------------------------------------------------------------------------------------------------------------------
Effective gross income $4,025,090 $4,068,492 $4,172,863 $4,406,303 $4,141,184
-------------------------------------------------------------------------------------------------------------------------------
Total expenses $1,352,665 $1,587,129 $1,589,152 $1,674,552 $1,633,328
-------------------------------------------------------------------------------------------------------------------------------
Net operating income $2,672,425 $2,481,363 $2,583,711 $2,731,751 $2,507,856
-------------------------------------------------------------------------------------------------------------------------------
Net cash flow $2,662,139 $2,437,991 $2,583,711 $2,700,951 $2,456,032
-------------------------------------------------------------------------------------------------------------------------------
Buccaneer Estates. Buccaneer Estates is located in North Fort Myers,
Florida and contains 971 sites. The community was developed in 1974. Buccaneer
Estates is an age-restricted community, with 95% of the residents being 55 years
of age or older. 99% of the sites in the community can accommodate doublewide
homes. The community offers a full amenity package including gated access, two
clubhouses, two swimming pools, two exercise rooms, putting green, jacuzzi,
sauna, billiards, 12 shuffleboard courts, six horseshoe courts, two laundry
rooms and a RV/boat storage area. All homes have brick skirting, carports,
concrete drives, and screened porches.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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22
According to the appraisal, occupancy rates for manufactured housing
communities in the local market range from 92% to 100%. As of April 2000,
Buccaneer Estates had an occupancy rate of 99.4%. Buccaneer Estates has an
appraised value of $32,675,000 based on an appraisal as of May 17, 2000. The
underwritten cash flow for the property is $2,302,731.
SUMMARIZED OPERATING RESULTS
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-------------------------------------------------------------------------------------------------------------------------------
Occupancy % 99.8% 99.5% 99.3% 96.9% 95.0%
-------------------------------------------------------------------------------------------------------------------------------
Effective gross income $3,521,681 $3,574,584 $3,635,761 $3,662,525 $3,523,330
-------------------------------------------------------------------------------------------------------------------------------
Total expenses $1,109,365 $997,711 $1,039,710 $1,203,904 $1,172,049
-------------------------------------------------------------------------------------------------------------------------------
Net operating income $2,412,316 $2,576,873 $2,596,051 $2,458,621 $2,351,281
-------------------------------------------------------------------------------------------------------------------------------
Net cash flow $2,397,436 $2,550,468 $2,596,051 $2,434,121 $2,302,731
-------------------------------------------------------------------------------------------------------------------------------
DeAnza Santa ▇▇▇▇. DeAnza Santa ▇▇▇▇ is located in Santa Cruz,
California and contains 198 sites. The community was developed in 1970. DeAnza
Santa ▇▇▇▇ is an age-restricted community, with residents being 55 years of age
or older. 100% of the sites in the community can accommodate doublewide homes.
The community offers a full amenity package including a clubhouse, heated
outdoor pool, exercise room, hot tub, saunas, laundry buildings and a RV/boat
storage area. All homes have brick skirting, carports, concrete drives and
screened porches.
According to the appraisal, the occupancy rate for manufactured housing
communities in the local market is 100%. As of April 2000, DeAnza Santa ▇▇▇▇ had
an occupancy rate of 100%. DeAnza Santa ▇▇▇▇ has an appraised value of
$8,800,000 based on an appraisal as of May 18, 2000. The underwritten cash flow
for the property is $755,075.
SUMMARIZED OPERATING RESULTS
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-------------------------------------------------------------------------------------------------------------------------------
Occupancy % 100% 100% 100% 98.8% 95.0%
-------------------------------------------------------------------------------------------------------------------------------
Effective gross income $1,368,895 $1,370,909 $1,383,323 $1,395,819 $1,344,547
-------------------------------------------------------------------------------------------------------------------------------
Total expenses $652,684 $606,246 $630,435 $599,633 $576,822
-------------------------------------------------------------------------------------------------------------------------------
Net operating income $716,211 $764,663 $752,888 $796,186 $767,725
-------------------------------------------------------------------------------------------------------------------------------
Net cash flow $710,237 $762,052 $752,888 $791,236 $755,075
-------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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23
Bay Lake Estates. Bay Lake Estates is located in Nokomis, Florida and
contains 228 sites. The community was developed in 1972. Bay Lake Estates is an
age-restricted community, with 95% of the residents being 55 years of age or
older. 100% of the sites in the community can accommodate doublewide homes. The
community offers a full amenity package including a clubhouse (consisting of a
large meeting hall with stage area, full kitchen, library and billiard room), a
heated swimming pool, sun deck, 8 shuffleboard courts, bocce court, laundry
facilities, a fishing lake and RV/boat storage area. All homes have brick
skirting, carports, concrete drives and screened porches.
According to the appraisal, the occupancy rate for manufactured housing
communities in the local market is 100%. As of April 2000, Bay Lake Estates had
an occupancy rate of 99.6%. Bay Lake Estates has an appraised value of
$7,900,000 based on an appraisal as of May 17, 2000. The underwritten cash flow
for the property is $575,586.
SUMMARIZED OPERATING RESULTS
-------------------------------------------------------------------------------------------------------------------------------
YEAR ENDING YEAR ENDING TRAILING 12 MONTHS APPRAISAL UNDERWRITTEN
12/31/98 ACTUAL 12/31/99 ACTUAL THROUGH 7/31/00
-------------------------------------------------------------------------------------------------------------------------------
Occupancy % 99.7% 99.0% 99.1% 96.8% 95.0%
-------------------------------------------------------------------------------------------------------------------------------
Effective gross income $956,999 $982,011 $1,007,658 $1,056,679 $981,226
-------------------------------------------------------------------------------------------------------------------------------
Total expenses $345,870 $344,305 $345,010 $395,384 $394,240
-------------------------------------------------------------------------------------------------------------------------------
Net operating income $611,129 $637,706 $662,648 $661,295 $586,986
-------------------------------------------------------------------------------------------------------------------------------
Net cash flow $601,465 $628,819 $662,648 $655,595 $575,586
-------------------------------------------------------------------------------------------------------------------------------
THE BORROWER
The borrowers are MHC-DeAnza Financing Limited Partnership, an Illinois
limited partnership ("DeAnza"), and Snowbirdland Vistas, Inc., an Illinois
corporation ("Snowbirdland") The borrowers are affiliates of Manufactured Home
Communities, Inc., a real estate investment trust whose shares are publicly
traded. Each borrower is a single purpose entity whose organizational documents
do not permit it to engage in any business unrelated to the mortgaged properties
or to have any assets, other than its interest in the mortgaged properties, or
any indebtedness (subject to limited exceptions such as trade payables incurred
in the ordinary course of business) other than the mortgage loan. The general
partner of DeAnza is MHC-QRS DeAnza, Inc., an Illinois corporation that is
required to have at least one independent party whose consent is required for,
among other things, the filing of a bankruptcy petition by DeAnza. Snowbirdland
is required to have at least one independent party who is required to approve,
among other things, the filing of a bankruptcy petition by Snowbirdland. In
connection with the closing of the mortgage loan, the lender received an opinion
from the borrowers' counsel to the effect that, among other things, the assets
of the borrowers would not be consolidated with the assets of any party having a
controlling interest in either borrower in the event of a bankruptcy or
insolvency of that party.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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24
MANAGEMENT
The properties are managed by MHC Management Limited Partnership, an
Illinois limited partnership that is an affiliate of the borrowers.
ESCROWS
The borrowers funded the following reserve accounts upon the
origination of the mortgage loan: (a) a real estate tax and insurance premium
account in the initial amount of $1,606,379 and (b) a repair and remediation
reserve in the initial amount of $78,410. The loan documents require the
borrowers to make monthly deposits to the tax and insurance premium account in
an amount sufficient to pay real estate taxes and insurance premiums when due.
The loan documents also require the borrowers to make monthly deposits to a
replacement reserve until the balance on deposit therein equals $760,722 and
thereafter to make additional monthly deposits as are necessary to maintain such
amount.
ADDITIONAL DEBT/TRANSFERS
Except as described below, the loan documents provide that the mortgage
loan will become immediately due and payable upon (i) any transfer of the
borrower's interest in any of the mortgaged properties or any transfer of an
interest in either borrower or (ii) any additional encumbrance of any of the
properties, in each case without the prior written consent of the lender.
Defeasance. At any time after the second anniversary of the date of
initial issuance of the certificates, the borrower is entitled to obtain a
release of one or more of the mortgaged properties from the lien of the
mortgages upon the substitution of non-callable United States Treasury
securities that provide for the payment of the remaining scheduled cash flow
attributable to 125% of the portion of the indebtedness allocable to the
mortgaged properties to be released.
Property Transfer to Unaffiliated Third Party. The borrowers have a
right to sell, which right is exercisable one time only, all (but not less than
all) of the properties to and cause an assumption of the mortgage loan by a
third party, subject to the satisfaction of various terms and conditions.
Conditions to an assignment and assumption include, among other things, (a) the
absence of a default under the mortgage loan, (b) a satisfactory credit and
underwriting review by the lender, (c) the lender's determination that the
transferee has recent experience in the ownership and operation of properties
comparable to the mortgaged properties, (d) delivery of an endorsement to the
title insurance policy confirming that the liens of the related mortgages will
not be impaired by reason of the transfer, (e) organization of the transferee in
a manner that conforms to the special purpose and entity separateness covenants
set forth in the mortgage loan and delivery of a non-consolidation opinion if
required by the lender, and (f) payment of an assumption fee in an amount equal
to 0.5% or the then unpaid principal balance of the mortgage loan.
Property Transfer to an Affiliate. The borrowers have a right with
respect to each of the mortgaged properties, which right is exercisable one time
only with respect to any mortgaged property, to transfer the mortgaged property
to an affiliate of the borrowers, subject to the satisfaction of various terms
and conditions. Conditions to a transfer include, among other things, (a) the
absence of a default under the mortgage loan, (b) the lender's reasonable
determination that the mortgaged property's cash flow will not be materially and
adversely affected by any increase in real property taxes resulting from such
transfer, (c) delivery of an endorsement to the title insurance policy
confirming
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
25
that the liens of the related mortgages will not be impaired by reason of the
transfer, and (d) organization of the transferee in a manner that conforms to
the special purpose and entity separateness covenants set forth in the mortgage
loan and delivery of a non-consolidation opinion if required by the lender.
Replacement Properties. The borrowers are entitled to obtain a release
of one or more of the mortgaged properties from the lien of the mortgages upon
delivery of a mortgage on one or more replacement manufactured housing
communities, provided that the borrower is not entitled to the release of any
mortgaged property whose allocated portion of the indebtedness, together with
that of any and all other properties previously released, represents more than
30% of the original principal balance of the mortgage loan. Other terms and
conditions to a release and substitution include, among other things, (a) the
absence of a default under the mortgage loan; (b) delivery of an appraisal of
the replacement property and, if required by the holder of the mortgage loan,
the remaining properties, reflecting an aggregate loan-to-value ratio that is
not more than 63%; (c) the replacement property and remaining properties having
a pro forma debt service coverage ratio that is not less than 1.41x; (d)
delivery of a "Phase I" environmental assessment report (and, if recommended by
the "Phase I" environmental assessment report, a "Phase II" environmental
assessment report) that does not identify any violations of any applicable
environmental laws; (e) delivery of an engineering report that states that the
replacement property complies with all applicable building laws and does not
recommend the performance of deferred maintenance estimated to cost in excess of
$50,000 (and establishment of a reserve in the amount of 150% of the estimated
costs of any deferred maintenance that is recommended); and (f) delivery of a
title insurance policy for the replacement property.
See Loan no. 310900140 in the mortgage loan schedule.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
26
LOAN NO. 28983 -- FM GLOBAL HEADQUARTERS
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's
leasehold interest under a ground lease on a 328,359 square foot suburban office
building located in Johnston, Rhode Island, that is 100% sub-leased to Factory
Mutual Insurance Company, and is also secured by a first mortgage on the ground
lessor's fee interest in the mortgaged property. This mortgage loan is scheduled
to amortize fully by its maturity on August 1, 2009 pursuant to a semi-annual
payment schedule. This mortgage loan was originated by Bear, ▇▇▇▇▇▇▇ Funding,
Inc. on July 31, 2000.
---------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $31,802,702 PROPERTY TYPE: Office, Suburban
GROSS MORTGAGE RATE: 8.7350% LOCATION: Johnston, Rhode Island
INTEREST ACCRUAL METHOD: 30/360 YEAR BUILT/RENOVATED: 1973/1997
FIRST PAYMENT DATE: 8/1/2000 SQUARE FEET: 328,359
MATURITY DATE: 8/1/2009 CUT-OFF DATE BALANCE/SQ.FT.: $96.85
ORIGINAL AMORTIZATION: 109
ANNUAL DEBT SERVICE: $4,673,391 OCCUPANCY: 100.0%
LOCKOUT END DATE: 7/31/2009 OCCUPANCY DATE: 4/1/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 7/31/2009 APPRAISED VALUE: $63,520,000
ESCROWS CUT-OFF DATE LTV: 50.1%
REAL ESTATE TAXES: Springing BALLOON LTV: 0.0%
INSURANCE: Springing
REPLACEMENT RESERVES: Springing UNDERWRITTEN CASH FLOW: $8,062,340
DSCR: 1.73x
---------------------------------------------------------------------------------------------------------------------------
THE MORTGAGED PROPERTY
The mortgaged property, which consists of one low-rise office building
on a 25.84 acre site in Johnston, Rhode Island, is located approximately 10
minutes from the Providence central business district and less than three miles
from the Interstate 295 interchange. The mortgaged property was constructed in
1973 and was renovated in 1997. As a result of a sale-leaseback transaction, the
fee interest in the mortgaged property is owned by Factory Mutual Insurance
Company and is ground-leased to the borrower, PREFCO II Limited Partnership. The
borrower is 80% owned by Pitney Bowes Credit Corporation, the limited partner,
and 20% owned by PREFCO II, INC., the general partner. PREFCO II Limited
Partnership subleases the building to Factory Mutual Insurance Company pursuant
to a triple net lease that expires July 31, 2009. Factory Mutual Insurance
Company is obligated to pay ground rent as additional rent and to otherwise
perform all obligations of the borrower under the ground lease. Rent payments
are due semi-annually in arrears on the same dates and in at least the same
amounts that payments are due under the mortgage loan and the ground lease. The
ground lease expires on July 31, 2019, but can be extended for up to 20
additional years. The fee owner has granted the lender a mortgage on the fee
estate as additional security for the mortgage loan. The fee mortgage, however,
may only be foreclosed following an event of default by the tenant under the
sublease to Factory Mutual Insurance Company.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
-------------------------------------------------------------------------------
27
The sublease with Factory Mutual Insurance allows the tenant to
terminate the sublease following a substantial casualty or condemnation upon
payment of an amount calculated pursuant to a formula in the sublease, which
amount is at least equal to the outstanding principal balance of the mortgage
loan plus accrued interest, if any. In such event, the loan documents provide
that the mortgage loan will be prepaid at par without any yield maintenance or
prepayment premium. The sublease tenant also has both an additional option to
terminate for uneconomic use and an option to purchase, both exercisable
beginning August 1, 2004 (which date is after the defeasance lockout period of
the mortgage loan). If the tenant exercises either the termination or purchase
option, it must pay the borrower an amount calculated pursuant to a formula in
the sublease, which amount is at least equal to the outstanding principal
balance of the mortgage loan and accrued interest, if any. In such event, the
loan documents require the borrower to defease the mortgage loan.
THE BORROWER
The borrower, PREFCO II Limited Partnership, is owned by Pitney Bowes
Credit Corporation as the 99% limited partner and the indirect owner of the 1%
general partner. Pitney ▇▇▇▇▇ Credit Corporation is a wholly-owned subsidiary of
Pitney ▇▇▇▇▇ Corporation. The borrower is a single purpose entity whose
organizational documents do not permit it to engage in any business unrelated to
the mortgaged property, or to have any assets other than the mortgaged property
or any indebtedness (subject to limited exceptions such as trade payables
incurred in the ordinary course of business) other than the mortgage loan.
Additionally, the borrower's organizational documents require two independent
directors of the general partner and the unanimous vote of the directors of the
general partner in order to file a bankruptcy petition related to the borrower.
In connection with the closing of the mortgage loan, the lender received an
opinion from ▇▇▇▇▇▇▇▇'s counsel to the effect that, among other things, the
assets of the borrower would not be consolidated with the assets of any party
having a controlling interest in the borrower in the event of a bankruptcy or
insolvency of that party.
MANAGEMENT
The property is managed by Factory Mutual Insurance Company pursuant to
the sublease.
ESCROWS
Under the sublease, Factory Mutual Insurance Company is required to pay
all real estate taxes and property insurance premiums and to maintain the
property. If the borrower at any time fails to provide the lender with
satisfactory evidence of payment of real estate taxes and property insurance
premiums in accordance with the loan documents, the lender may require the
borrower to thereafter fund escrows for those items. If the property is not
maintained in accordance with the loan documents, the lender may require the
borrower to thereafter fund an additional escrow for future capital
expenditures.
SECONDARY DEBT
There is a second mortgage loan encumbering the borrower's leasehold
interest in the property which will remain outstanding for the entire term of
the mortgage loan. The second mortgage loan is 75% owned by GA Dekalb, Inc., an
affiliate of Shearson ▇▇▇▇▇▇ Holdings, Inc., and 25% owned by Factory Mutual
Insurance Company (collectively, the "Subordinate Lender"). The current
principal amount of the second mortgage loan is approximately $14,000,000, which
is scheduled to increase to approximately $17,000,000 as a result of negative
amortization over
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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28
the next four years, and then fully amortize over 15 years. The second mortgage
loan is scheduled to mature on August 1, 2019, ten years after the maturity of
the self-liquidating first mortgage loan. The second mortgage loan requires
payments of principal and interest, but 75% of such payments (the portion owed
to GA DeKalb, Inc.), have been prepaid through August 1, 2009 (the maturity date
of the mortgage loan). Current payments of principal and/or interest on the
second mortgage loan are made from payments of rent due to the borrower under
the Factory Mutual Insurance Company net lease that are in excess of payments of
principal and interest due under the mortgage loan and ground lease payments.
The Subordinate ▇▇▇▇▇▇ has entered into a subordination agreement with
the lender under the mortgage loan which may not contain all customary
provisions for such an agreement. However, Pitney Bowes Credit Corporation
(whose long term unsecured debt is currently rated Aa3 by ▇▇▇▇▇'▇ and AA by
Standard & Poor's) has executed a guaranty in favor of the holder of the
mortgage loan holding it harmless for losses incurred as a result of (i) the
failure of any amounts due under the first mortgage loan to be senior to sums
due under the second mortgage loan, (ii) the absence of certain representations
and warranties by the Subordinate Lender relating to the second mortgage loan,
and (iii) modifications of the second mortgage loan made without the consent of
the holder of the mortgage loan contained in the mortgage pool.
Pitney Bowes Credit Corporation has also agreed to indemnify the holder
of the mortgage loan contained in the mortgage pool for any losses resulting
from the Subordinate ▇▇▇▇▇▇'s attempt to exercise any rights in a bankruptcy
proceeding involving the borrower. The amount of the indemnity is capped at
$2,500,000, which amount decreases to $700,000 pursuant to a schedule as the
mortgage loan amortizes.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the property or any transfer of more than 49% of the interest in the borrower or
(ii) any additional encumbrance of the property other than the existing second
mortgage loan, in each case without the prior written consent of the lender.
See Loan No. 28983 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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29
LOAN NO. 310851623 -- U-HAUL PORTFOLIO
OVERVIEW
This mortgage loan is secured by 18 first mortgages on the borrower's
leasehold interests in 18 self-storage facilities and by one first mortgage on
the borrower's fee interest in one self-storage facility. The fee interests in
those leasehold mortgaged properties are owned by a borrower affiliate that has
subordinated those fee interests to the lien of the related mortgage.
Accordingly, this mortgage loan is presented in the preliminary prospectus
supplement as if the borrower's leasehold interests in those mortgaged
properties consisted of a fee interest. All of the borrower's leasehold
interests were created pursuant to ground leases that expire in 2098. The
mortgaged properties are located in the following states: five in Virginia,
three in Louisiana, three in South Carolina, two in California, and one in each
of Arizona, North Carolina, Pennsylvania, Arkansas, Georgia and Maryland. The 19
self-storage facilities include 9,595 units totaling 925,664 square feet. The
mortgage loan was originated by ▇▇▇▇▇ Fargo Bank, National Association on August
10, 1999. The information in the box immediately below is presented on a
combined basis for all 19 properties.
-----------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $31,726,782 PROPERTY TYPE: Self-Storage
GROSS MORTGAGE RATE: 8.5230% LOCATION: See below
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: See below
FIRST PAYMENT DATE: 10/1/1999 NO. OF UNITS: 9,595
MATURITY DATE: 9/1/2009 CUT-OFF DATE BALANCE/UNIT: $3,306.60
ORIGINAL AMORTIZATION: 300
ANNUAL DEBT SERVICE: $3,107,707 W/A OCCUPANCY: 84.8%
LOCKOUT END DATE: 6/30/2009 OCCUPANCY DATE: 5/31/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 6/30/2009 APPRAISED VALUE: $45,990,000
ESCROWS CUT-OFF DATE LTV: 69.0%
REAL ESTATE TAXES: Yes BALLOON LTV: 58.4%
INSURANCE: No
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $4,383,542
DSCR: 1.41x
-----------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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30
THE PROPERTIES
Set forth below is certain summary information with respect to the
mortgaged properties:
--------------------------------------------------------------------------------------------------------------------------
LOAN NO. PROPERTY NAME LOCATION YEAR BUILT NUMBER SQUARE
OF UNITS FEET
--------------------------------------------------------------------------------------------------------------------------
310851623A U-Haul Storage Belt Boulevard Richmond, VA 1988 593 60,200
--------------------------------------------------------------------------------------------------------------------------
310851623B U-Haul Storage Cactus & ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇ 1980 442 40,455
--------------------------------------------------------------------------------------------------------------------------
310851623C U-Haul Storage Boone Boone, NC 1985 317 29,700
--------------------------------------------------------------------------------------------------------------------------
310851623D U-Haul Storage Highland Avenue Chester, PA 1989 583 70,500
--------------------------------------------------------------------------------------------------------------------------
310851623E U-Haul Storage Marietta Street Kenner, LA 1990 845 73,350
--------------------------------------------------------------------------------------------------------------------------
310851623F U-Haul Storage ▇▇▇▇▇▇ Park Road Columbia, SC 1986 460 48,496
--------------------------------------------------------------------------------------------------------------------------
310851623G U-Haul Storage Jamil Road Columbia, SC 1988 485 50,625
--------------------------------------------------------------------------------------------------------------------------
310851623H U-Haul Storage Holland Road Suffolk, VA 1988 334 35,400
--------------------------------------------------------------------------------------------------------------------------
310851623I U-Haul Storage Elm Drive Mechanicsville, VA 1989 337 35,400
--------------------------------------------------------------------------------------------------------------------------
310851623J U-Haul Storage Washington Road College Park, GA 1985 583 55,150
--------------------------------------------------------------------------------------------------------------------------
310851623K U-Haul Storage ▇▇▇▇▇ Avenue Little Rock, AR 1980 750 67,206
--------------------------------------------------------------------------------------------------------------------------
310851623L U-Haul Storage Myrtle Beach Myrtle Beach, SC 1987 346 34,700
--------------------------------------------------------------------------------------------------------------------------
310851623M U-Haul Storage North Boulevard Richmond, VA 1946 643 51,414
--------------------------------------------------------------------------------------------------------------------------
310851623N U-Haul Storage Odenton Odenton, MD 1988 479 40,255
--------------------------------------------------------------------------------------------------------------------------
310851623O U-Haul Storage Sterling Sterling, VA 1988 348 42,225
--------------------------------------------------------------------------------------------------------------------------
310851623P U-Haul Storage Westwood Shreveport, LA 1986 412 46,375
--------------------------------------------------------------------------------------------------------------------------
310851623Q U-Haul Storage Marrero Marrero, LA 1985 288 27,438
--------------------------------------------------------------------------------------------------------------------------
310851623R U-Haul Storage Carlsbad Carlsbad, CA 1996 1,006 73,940
--------------------------------------------------------------------------------------------------------------------------
310851623S U-Haul Storage Rialto Rialto, CA 1988 344 42,835
--------------------------------------------------------------------------------------------------------------------------
Total 9,595 925,664
--------------------------------------------------------------------------------------------------------------------------
Set forth below is a general description and certain other information
with respect to each related mortgaged property.
U-Haul Storage Belt Boulevard consists of eight single-story warehouse
storage buildings and one single-story office/manager's residence situated on
5.8 acres. The improvements were constructed in 1988 and include 593
self-storage units and 25 parking spaces. The mortgaged property consists of the
borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 85.3% occupied as of May 31, 2000.
U-Haul Storage Cactus & 51st consists of six single-story warehouse
storage buildings and one two-story office/manager's residence situated on 2.5
acres. The improvements were constructed in 1980 and include 442
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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31
self-storage units and 10 parking spaces. The mortgaged property consists of the
borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 77.4% occupied as of May 31, 2000.
U-Haul Storage Boone consists of nine single-story warehouse storage
buildings with a rental office and apartment attached to one of the buildings
situated on 4.2 acres. The improvements were constructed in 1985 and include 317
self-storage units and three parking spaces. The mortgaged property consists of
the borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 75.1% occupied as of May 31, 2000.
U-Haul Storage Highland Avenue consists of eight single-story warehouse
storage buildings and one two-story office/manager's residence situated on 3.5
acres. The improvements were constructed in 1989 and include 583 self-storage
units and nine parking spaces. The mortgaged property consists of the borrower's
interest as a tenant under a ground lease that expires August 8, 2029. The
mortgaged property was 93.1% occupied as of May 31, 2000.
U-Haul Storage Marietta Street consists of six two-story storage
buildings and one office/manager's apartment attached to one of the buildings
situated on 2.3 acres. The improvements were constructed in 1990 and include 845
self-storage units and five parking spaces. The mortgaged property consists of
the borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 73.2% occupied as of May 31, 2000.
U-Haul Storage ▇▇▇▇▇▇ Park Road consists of 13 single-story warehouse
storage buildings and a two-story office/manager's residence situated on 2.9
acres. The improvements were constructed in 1986 and include 460 self-storage
units and 10 parking spaces. The mortgaged property consists of the borrower's
interest as a tenant under a ground lease that expires August 31, 2098. The
mortgaged property was 74.1% occupied as of May 31, 2000.
U-Haul Storage Jamil Road consists of nine single-story warehouse
storage buildings and one single-story office/manager's residence situated on
2.7 acres. The improvements were constructed in 1988 and include 485
self-storage units and three parking spaces. The mortgaged property consists of
the borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 82.5% occupied as of May 31, 2000.
U-Haul Storage Holland Road consists of seven single-story warehouse
storage buildings and one two-story office/manager's residence situated on 4.3
acres. The improvements were constructed in 1988 and include 334 self-storage
units and four parking spaces. The mortgaged property consists of the borrower's
interest as a tenant under a ground lease that expires August 31, 2098. The
mortgaged property was 87.4% occupied as of May 31, 2000.
U-Haul Storage Myrtle Beach consists of 14 single-story warehouse
storage buildings and one single-story office/manager's residence situated on
2.7 acres. The improvements were constructed in 1987 and include 346
self-storage units. The mortgaged property consists of the borrower's interest
as a tenant under a ground lease that expires August 31, 2098. The mortgaged
property was 57.8% occupied as of May 31, 2000.
U-Haul Storage ▇▇▇▇▇ Avenue consists of three single-story warehouse
storage buildings and one two-story office/manager's residence situated on 3.3
acres. The improvements were constructed in 1980 and include 750 self-storage
units, eight of which are climate-controlled, and five parking spaces. The
mortgaged property consists of the borrower's interest as a tenant under a
ground lease that expires August 31, 2098. The mortgaged property was 68.9%
occupied as of May 31, 2000.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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32
U-Haul Storage Elm Drive consists of eight single-story warehouse
storage buildings and one two-story office/manager's residence situated on 2.5
acres. The improvements were constructed in 1989 and include 337 self-storage
units and 10 parking spaces. The mortgaged property consists of the borrower's
interest as a tenant under a ground lease that expires August 31, 2098. The
mortgaged property was 81.4% occupied as of May 31, 2000.
U-Haul Storage Washington Road consists of 22 single-story warehouse
storage buildings and one two-story office/manager's residence situated on 3.1
acres. The improvements were constructed in 1985 and include 583 self-storage
units and four parking spaces. The mortgaged property consists of the borrower's
interest as a tenant under a ground lease that expires August 31, 2098. The
mortgaged property was 86.6% occupied as of May 31, 2000.
U-Haul Storage North Boulevard consists of seven single-story warehouse
storage buildings situated on 2.8 acres. The improvements were constructed in
1946 and include 643 self-storage units and 21 parking spaces. The mortgaged
property consists of the borrower's interest as a tenant under a ground lease
that expires August 31, 2098. The mortgaged property was 83.5% occupied as of
May 31, 2000.
U-Haul Storage Odenton consists of three two-story warehouse storage
buildings, one single-story office/manager's residence, and one RV storage space
situated on 2.7 acres. The improvements were constructed in 1988 and include 479
self-storage units and four parking spaces. The mortgage loan is secured by the
borrower's fee interest in the mortgaged property. The mortgaged property was
86.2% occupied as of May 31, 2000.
U-Haul Storage Sterling consists of six single-story warehouse storage
buildings and one single-story office/manager's residence situated on 3.0 acres.
The improvements were constructed in 1988 and include 348 self-storage units and
six parking spaces. The mortgaged property consists of the borrower's interest
as a tenant under a ground lease that expires August 31, 2098. The mortgaged
property was 94.2% occupied as of May 31, 2000.
U-Haul Storage Westwood consists of five single-story warehouse storage
buildings and one two-story office/manager's residence situated on 2.8 acres.
The improvements were constructed in 1986 and include 412 self-storage units and
three parking spaces. The mortgaged property consists of the borrower's interest
as a tenant under a ground lease that expires August 31, 2098. The mortgaged
property was 86.9% occupied as of May 31, 2000.
U-Haul Storage Marrero consists of one single-story building situated
on 2.1 acres. The improvements were constructed in 1985 and include 288
self-storage units, a rental office, a manager's apartment, three retail tenant
spaces and five parking spaces. The mortgaged property consists of borrower's
interest as a tenant under a ground lease that expires August 31, 2098. The
mortgaged property was 84.8% occupied as of May 31, 2000.
U-Haul Storage Carlsbad consists of seven interconnecting and one
freestanding warehouse storage buildings and is situated on 3.5 acres. Six
buildings are two-story, one building is one-story, and one building, which
contains the office/manager's residence, has both one-story and two-story
portions. The improvements were constructed in 1996 and include 1,006
self-storage units and six parking spaces. The mortgaged property consists of
the borrower's interest as a tenant under a ground lease that expires August 31,
2098. The mortgaged property was 95.3% occupied as of May 31, 2000.
U-Haul Storage Rialto consists of four single-story and two two-story
warehouse storage buildings, and one two-story office/manager's residence
situated on 1.7 acres. The improvements were constructed in 1988 and include
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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33
344 self-storage units and eight parking spaces. The mortgaged property consists
of the borrower's interest as a tenant under a ground lease that expires August
31, 2098. The mortgaged property was 93.3% occupied as of May 31, 2000.
THE BORROWER
The borrower is XI SAC Self Storage Corporation, a wholly-owned
subsidiary of SAC Holdings Corporation. The borrower is a single purpose entity
whose organizational documents do not permit it to engage in any business
unrelated to the mortgaged property or to have any assets other than the
mortgaged property or any indebtedness (subject to limited exceptions such as
trade payables incurred in the ordinary course of business) other than the
mortgage loan. Additionally, the borrower's organizational documents require an
independent director and the unanimous vote of directors of the borrower in
connection with the filing of a petition of bankruptcy related to the borrower.
In connection with the closing of the mortgage loan, the lender received an
opinion from ▇▇▇▇▇▇▇▇'s counsel to the effect that, among other things, the
assets of the borrower would not be consolidated with the assets of any party
having a controlling interest in the borrower in the event of a bankruptcy or
insolvency of that party.
MANAGEMENT
The mortgaged properties are managed by U-Haul International.
ESCROWS
The loan documents require the borrower to fund monthly escrow deposits
in an amount sufficient to pay real estate taxes when due. In addition, the loan
documents require the borrower to fund monthly escrow deposits in an amount
equal to $11,570.80 for future capital expenditures.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
any mortgaged property or any transfer of an interest in the borrower or (ii)
any additional encumbrance of any mortgaged property, in each case without the
prior written consent of the lender.
See Loan No. 310851623 in the mortgage loan schedule.
-------------------------------------------------------------------------------
THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
-------------------------------------------------------------------------------
BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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34
LOAN NO. 10006891 -- TROLLEY SQUARE
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a 220,451 square foot anchored shopping center located in Salt Lake
City, Utah. The mortgage loan was originated by or on behalf of ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇ Mortgage Capital Inc. on July 13, 2000.
------------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $29,725,099 PROPERTY TYPE: Retail, Anchored
GROSS MORTGAGE RATE: 9.0300% LOCATION: Salt Lake City, Utah
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 1908/1986
FIRST PAYMENT DATE: 9/1/2000 SQUARE FEET: 220,451
ANTICIPATED REPAYMENT DATE: 8/1/2010 CUT-OFF DATE BALANCE/SQ.FT.: $134.84
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $2,880,212 OCCUPANCY: 93.8%
LOCKOUT END DATE: 4/30/2010 OCCUPANCY DATE: 8/24/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 4/30/2010 APPRAISED VALUE: $46,000,000
ESCROWS CUT-OFF DATE LTV: 64.6%
REAL ESTATE TAXES: Yes BALLOON LTV: 59.2%
INSURANCE: No
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $3,859,179
DSCR: 1.34x
------------------------------------------------------------------------------------------------------------------------------------
THE PROPERTY
The mortgaged property, which consists of four buildings, is located on
the eastern periphery of downtown Salt Lake City. The buildings, which were
originally constructed to store, build, repair and maintain Salt Lake City's
trolley cars, were converted to retail use between 1970 and 1972. The mortgaged
property was substantially renovated in 1986 and was added to the National
Register of Historical Places in 1996. Additional retail space was added in
1998, when two of the four buildings were converted from theater use. Major
tenants at the property include Cineplex Odeon (16,686 square feet) under a
lease expiring January 2009, Restoration Hardware (14,000 square feet) under a
lease expiring January 2011, Hard Rock Cafe (10,000 square feet) under a lease
expiring December 2008, Pottery Barn (10,000 square feet) under a lease expiring
January 2009, and Banana Republic (7,246 square feet) under a lease expiring May
2006.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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35
THE BORROWER
The borrower is Trolley Holdings, LLC, a Delaware limited liability
company. Trolley Holdings, LLC is owned by TS1 Partnership Limited Partnership,
a Delaware limited partnership, which is owned by Simon Property Group, L.P. and
▇▇▇▇▇ ▇▇▇▇▇▇. The borrower is a single purpose entity whose organizational
documents do not permit it to engage in any business unrelated to the mortgaged
property, or to have any assets other than the mortgaged property or any
indebtedness (subject to limited exceptions such as trade payables incurred in
the ordinary course of business) other than the mortgage loan. Additionally, the
borrower's organizational documents require an independent director and the
unanimous vote of directors of the borrower in connection with the filing of a
petition of bankruptcy related to the borrower. In connection with the closing
of the mortgage loan, the lender received an opinion from ▇▇▇▇▇▇▇▇'s counsel to
the effect that, among other things, the assets of the borrower would not be
consolidated with the assets of any party having a controlling interest in the
borrower in the event of a bankruptcy or insolvency of that party.
MANAGEMENT
The mortgaged property is managed by Simon Property Group, which is
affiliated with the borrower.
ESCROWS
The loan documents require the borrower to fund the following monthly
escrow deposits: (a) an amount sufficient to pay real estate taxes when due; (b)
$10,839 for future capital expenditures; and (c) $31,674 to cover any expenses
associated with lease roll-over, subject to a cap in the amount of $500,000. The
borrower is required to pay property insurance premiums when they become due. If
the borrower at any time fails to provide the lender with satisfactory evidence
of the payment of property insurance premiums or of the completion of certain
required repairs, the lender may require the borrower to thereafter fund an
escrow to provide for the payment of property insurance premiums or the
completion of those repairs.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or any transfer of an interest in the borrower or (ii)
any additional encumbrance of the mortgaged property, in each case without the
prior written consent of the lender.
The loan documents permit (without payment to the lender of any
assumption fee) transfers of interests in the borrower among any existing
interest holders or their affiliates provided that certain conditions are
satisfied, including, among other conditions, that certain principals continue
to own at least 50% of the total ownership interests in the borrower, directly
or indirectly, and continue to control the management of the borrower and (if
any transferee will hold more than 49% of the interests in the borrower) the
lender receives confirmation from the rating agencies that the transfer would
not result in the downgrade, qualification (if applicable) or withdrawal of the
then current ratings assigned to any class of certificates.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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36
AMORTIZATION
During the period prior to August 1, 2010, the loan documents require
the borrower to make monthly payments of principal and interest, in arrears, in
the combined amount of $240,017.69, which amount was calculated on the basis of
a 360-month amortization schedule. In addition to the foregoing payments, after
the interest rate resets on August 1, 2010, the loan documents also require the
borrower to pay to the lender all of the borrower's excess cash flow, monthly,
to further amortize the loan.
See Loan No. 10006891 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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37
LOAN NO. 28326 -- ▇▇▇▇▇▇▇▇▇ ▇▇▇▇ APARTMENTS
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a 504 unit multifamily property located in Irving, Texas. The
mortgage loan was originated by Bear, ▇▇▇▇▇▇▇ Funding, Inc. on February 1, 2000.
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CUT-OFF DATE BALANCE: $25,406,203 PROPERTY TYPE: Multifamily, Garden
GROSS MORTGAGE RATE: 7.8800% LOCATION: Irving, Texas
INTEREST ACCRUAL METHOD: 30/360 YEAR BUILT/RENOVATED: 1998
FIRST PAYMENT DATE: 3/1/2000 UNITS: 504
MATURITY DATE: 2/1/2010 CUT-OFF DATE BALANCE/UNIT: $50,409.13
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $2,224,127 OCCUPANCY: 90.9%
LOCKOUT END DATE: 1/31/2010 OCCUPANCY DATE: 4/15/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 1/31/2010 APPRAISED VALUE: $37,000,000
ESCROWS CUT-OFF DATE LTV: 68.7%
REAL ESTATE TAXES: Yes BALLOON LTV: 60.4%
INSURANCE: Yes
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $3,126,648
DSCR: 1.41x
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THE PROPERTY
The mortgaged property is a 504 unit multifamily property consisting of
24 three-story wood frame and stucco buildings. The mortgaged property, which
was completed in 1998, is located on MacArthur Boulevard and is approximately 10
miles from Downtown Dallas, five miles from the Las Colinas Business District
and eight miles from the Dallas/Fort Worth International Airport. Amenities at
the complex include a clubhouse, media theater, spa and dry sauna, fitness
center, steam room, and resort style swimming pools.
THE BORROWER
The borrower is Dakota Hill Properties, a Texas limited partnership
with Dakota-IRET Inc., a Texas Corporation, as its sole general partner.
Dakota-IRET Inc. is a subsidiary of Investors Real Estate Trust, a business
trust whose shares are traded on NASDAQ. The borrower is a single purpose entity
whose organizational documents do not permit it to engage in any business
unrelated to the mortgaged property, nor have any assets other than the
mortgaged property or any indebtedness (subject to limited exceptions such as
trade payables incurred in the ordinary course of business) other than the
mortgage loan. In connection with the closing of the mortgage loan, the lender
received an opinion from borrower's counsel to the effect that, among other
things, the assets of the borrower would
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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38
not be consolidated with the assets of any party having a controlling interest
in the borrower in the event of a bankruptcy or insolvency of that party.
MANAGEMENT
The mortgaged property is managed by ConAm Management Corporation,
which is unaffiliated with the borrower.
ESCROWS
The borrower funded real estate tax, property insurance premium and
replacement reserve escrows at closing, in each case equal to half of one year's
payment (in the case of replacement reserves, based on an annual requirement of
$200 per unit), which will be held for the term of the mortgage loan. The
borrower is required to pay real estate taxes and property insurance premiums as
they become due from time to time. If the borrower at any time fails to provide
the lender with satisfactory evidence of payment of real estate taxes and
property insurance premiums, the lender may require the borrower to thereafter
fund escrows to provide for such items. If the mortgaged property is not
maintained as required by the loan documents, the lender may require the
borrower to fund an additional escrow for future capital expenditures.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or a transfer of more than 49% of the interests in the
borrower to an unrelated third party or (ii) any additional encumbrance of the
mortgaged property, in each case without the prior written consent of the
lender.
See Loan No. 28326 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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39
LOAN NO. 28750 -- LONG BEACH MARKETPLACE
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a 156,343 square foot anchored shopping center located in Long
Beach, California. The mortgage loan was originated by Bear, ▇▇▇▇▇▇▇ Funding,
Inc. on May 15, 2000.
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CUT-OFF DATE BALANCE: $21,157,357 PROPERTY TYPE: Retail, Anchored
GROSS MORTGAGE RATE: 8.4300% LOCATION: Long Beach, California
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 1974/1996
FIRST PAYMENT DATE: 7/1/2000 SQUARE FEET: 156,343
MATURITY DATE: 6/1/2010 CUT-OFF DATE BALANCE/SQ.FT.: $135.33
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $1,943,509 OCCUPANCY: 93.3%
LOCKOUT END DATE: 5/31/2010 OCCUPANCY DATE: 1/1/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 5/31/2010 APPRAISED VALUE: $28,600,000
ESCROWS CUT-OFF DATE LTV: 74.0%
REAL ESTATE TAXES: Yes BALLOON LTV: 67.0%
INSURANCE: No
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $2,583,157
DSCR: 1.33x
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THE PROPERTY
The mortgaged property is a 156,343 square foot shopping center, which
consists of seven multi-tenant retail shop buildings and five free-standing
pads. The mortgaged property, which was constructed in 1974 and renovated in
1996, is located on an 18.89 acre parcel located at the intersection of Pacific
Coast Highway and Westminster Avenue. Major tenants at the property include
United Artists Theater (20,032 square feet) under a lease expiring December
2001, Claim Jumper (11,630 square feet) under a lease expiring April 2015, El
Torito (10,041 square feet) under a lease expiring December 2003, Trader ▇▇▇'s
(10,000 square feet) under a lease expiring January 2013, and Lone Star
Restaurant (6,656 square feet) under a lease expiring July 2008.
PARI PASSU LOAN
The mortgage that secures this mortgage loan, which we refer to as this
"pari passu loan," also secures a separate mortgage loan in the amount of
$1,400,000, which we refer to as the "companion loan." The companion loan has
substantially similar payment terms (other than principal balance) but is not
included in the trust fund or part of the mortgage pool.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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40
This pari passu loan and the companion loan are subject to an
intercreditor agreement that provides that, until the Earnout Date described
below, this pari passu loan will be senior in right of payment to the companion
loan and after such Earnout Date will be pari passu with the companion loan in
right of payment. The servicer and the special servicer of the mortgage pool
will service and administer both this pari passu loan and the related companion
loan. The holder of this pari passu loan, however, will generally be able to
exercise any rights and remedies with respect to the mortgaged property for both
the pari passu loan and the companion loan, including post default workout and
foreclosure (but will not have the right to draw upon the letter of credit
described below).
The companion loan has the benefit of a $1,400,000 letter of credit
(the "letter of credit"). To the extent the borrower satisfies certain criteria
(the "Earnout Criteria"), on or before May 15, 2002 (the "Earnout Date"), the
borrower has the right to have the letter of credit released, or within the
first year, the right to request periodic reductions in the amount of the letter
of credit. The Earnout Criteria include (a) new leases acceptable to the lender
(as described in the loan agreement) and (b) certain financial criteria
including (i) a specified increase in effective gross income (as defined in the
loan agreement) over the effective gross income as of the closing of the
mortgage loan, (ii) a minimum required debt service coverage ratio of 1.31x, or
(iii) a minimum loan-to-value ratio of approximately 80%, based on an updated
appraisal of the mortgaged property.
If the borrower has not achieved the Earnout Criteria by the Earnout
Date, the holder of the companion loan is required to draw on the letter of
credit and apply the proceeds thereof to the repayment of the companion loan (up
to the amount of the letter of credit) in an amount calculated to cause the
combined amount of this pari passu loan and the companion loan to satisfy the
financial component of the Earnout Criteria set forth below. The amount of the
repayment from the proceeds of the letter of credit must be equal to the greater
of (A) the amount such that the combined principal amount of this pari passu
loan plus the companion loan (as reduced) results in a combined debt service
coverage ratio that is no less than 1.31x and a combined loan-to-value ratio of
no more than 80% and (B) an amount equal to $1,400,000 less the product of (x)
$1,400,000 and (y) a fraction, the numerator of which is the excess of the
current effective gross income over $3,496,000 and the denominator of which is
$220,000.
THE BORROWER
The borrower is Long Beach Marketplace, LLC, a Delaware limited
liability company. The borrower is owned by RPP Long Beach LLC, a Delaware
limited liability company, which is controlled by RPP Properties LLC (which is
controlled by ▇▇▇▇▇▇ ▇▇▇▇▇ and ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇) and by FL Long Beach, Inc.
(which is controlled by ▇▇▇▇▇ ▇▇▇▇▇▇). The borrower is a single purpose entity
whose organizational documents do not permit it to engage in any business
unrelated to the mortgaged property, or to have any assets other than the
mortgaged property or any indebtedness (subject to limited exceptions such as
trade payables incurred in the ordinary course of business) other than the
mortgage loan. Additionally, the borrower's organizational documents require an
independent director as a special member and the unanimous vote of directors of
all members of the borrower in connection with the filing of a petition of
bankruptcy related to the borrower. In connection with the closing of the
mortgage loan, the lender received an opinion from ▇▇▇▇▇▇▇▇'s counsel to the
effect that, among other things, the assets of the borrower would not be
consolidated with the assets of either RPP Properties, LLC or FL Long Beach,
Inc. in the event of a bankruptcy or insolvency of that party.
MANAGEMENT
The property is managed by ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ Properties 36, LLC, which is
an affiliate of the borrower.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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41
ESCROWS
The loan documents require the borrower to fund monthly escrow deposits
in an amount sufficient to pay real estate taxes when due except for the portion
of the mortgaged property that is leased to ▇▇▇▇'s restaurant under a lease that
requires Coco's to pay those taxes directly to the taxing authority (such
portion being a separate tax parcel). In addition, the loan documents require
the borrower to fund escrow deposits for (i) future capital expenditures by
making monthly deposits based on an annual reserve amount of $0.15 per square
foot and (ii) tenant improvements and leasing commissions by making monthly
deposits of $6,250. Upon the occurrence of an event of default, or if the
borrower at any time fails to provide the lender with satisfactory evidence of
payment of property insurance premiums, the lender may require the borrower to
thereafter fund an escrow to provide for the payment of property insurance
premiums. The borrower is required to post a letter of credit in the amount of
$500,000 as additional credit support for the United Artists Theater lease.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the lender may declare the mortgage
loan immediately due and payable upon (i) any transfer of the borrower's
interest in the mortgaged property, provided that in certain instances the
borrower may transfer its interest in the mortgaged property upon satisfaction
of criteria specified in the loan documents, or a transfer of more than 49% of
the interests in the borrower to an unrelated third party or (ii) any additional
encumbrance of the mortgaged property, in each case without the prior written
consent of the lender.
See Loan No. 28750 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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42
LOAN NO. 310900049 -- WORLD KITCHEN WAREHOUSE
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a 700,200 square foot warehouse/distribution building located in
Monee, Illinois. The mortgage loan was originated by ▇▇▇▇▇ Fargo Bank, National
Association on May 5, 2000.
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CUT-OFF DATE BALANCE: $18,205,435 PROPERTY TYPE: Industrial/Warehouse,
Warehouse/Distribution
GROSS MORTGAGE RATE: 8.6400% LOCATION: Monee, Illinois
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 2000
FIRST PAYMENT DATE: 7/1/2000 SQUARE FEET: 700,200
MATURITY DATE: 6/1/2010 CUT-OFF DATE BALANCE/SQ. FT.:
$26.00
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $1,704,763 OCCUPANCY: 100.0%
LOCKOUT END DATE: 3/31/2010 OCCUPANCY DATE: 4/1/2000
CALL PROTECTION Defeasance
CALL PROTECTION END DATE: 3/31/2010 APPRAISED VALUE: $27,600,000
ESCROWS CUT-OFF DATE LTV: 66.0%
REAL ESTATE TAXES: Springing BALLOON LTV: 60.0%
INSURANCE: Springing
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $2,157,250
DSCR: 1.27x
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THE PROPERTY
The mortgaged property is a single-tenant, bulk warehouse/distribution
building situated on approximately 34.6 acres and located approximately 45 miles
south of Chicago, in Monee, Illinois. The mortgaged property was constructed in
2000 and is 100% occupied by World Kitchen, Inc. under a lease expiring February
2015. World Kitchen, Inc. is a major manufacturer and marketer of oven/bakeware,
dinnerware and kitchenware products, including Corning, Pyrex, Corelle and
Revere.
THE BORROWER
The borrower is Will Partners LLC, a Delaware limited liability company
whose managing member is Will Acquisitions, Inc. World Kitchen Inc. has an
ownership interest as a "special member" in the borrower which is limited to a
priority entitlement to approximately 77% of cash flow distributions and the
present value of those distributions over the remaining lease term if the
property is sold during the term of the lease. The lease is non-cancelable
(other than in the case of condemnation), with no abatement or offset from any
casualty.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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43
The borrower is a single purpose entity whose organizational documents
do not permit it to engage in any business unrelated to the mortgaged property,
or to have any assets other than the mortgaged property or any indebtedness
(subject to limited exceptions such as trade payables incurred in the ordinary
course of business) other than the mortgage loan. In connection with the closing
of the mortgage loan, the lender received an opinion from ▇▇▇▇▇▇▇▇'s counsel to
the effect that, among other things, the assets of the borrower would not be
consolidated with the assets of any party having a controlling interest in the
borrower in the event of a bankruptcy or insolvency of that party.
MANAGEMENT
The mortgaged property is managed by World Kitchen, Inc., a member of
the borrower.
ESCROWS
If the borrower at any time fails to provide the lender with
satisfactory evidence of payment of real estate taxes and property insurance
premiums in accordance with the loan documents, the lender may require the
borrower to thereafter fund escrows for those items. The loan documents require
the borrower to fund monthly deposits into an escrow account for future capital
expenditures in the amount of $5,835 monthly ($70,020 annually).
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or any transfer of an interest in the borrower or (ii)
any additional encumbrance of the mortgaged property, in each case without the
prior written consent of the lender.
See Loan No. 310900049 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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44
LOAN NO. 310900130 -- SAN FRANCISCO MEDICAL CENTER
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's
leasehold interest in a 66,122 square foot medical office building located in
San Francisco, California. The mortgage loan was originated by ▇▇▇▇▇ Fargo Bank,
National Association on August 15, 2000.
-------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $18,088,622 PROPERTY TYPE: Office, Medical
GROSS MORTGAGE RATE: 8.3200% LOCATION: San Francisco,
California
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 1989
FIRST PAYMENT DATE: 10/1/2000 SQUARE FEET: 66,122
MATURITY DATE: 9/1/2010 CUT-OFF DATE BALANCE/SQ.FT.: $273.56
ORIGINAL AMORTIZATION: 360
ANNUAL DEBT SERVICE: $1,642,452 OCCUPANCY: 100.0%
LOCKOUT END DATE: 6/30/2010 OCCUPANCY DATE: 4/13/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 6/30/2010 APPRAISED VALUE: $26,000,000
ESCROWS CUT-OFF DATE LTV: 69.6%
REAL ESTATE TAXES: Yes BALLOON LTV: 62.7%
INSURANCE: Yes
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $2,069,359
DSCR: 1.26x
-------------------------------------------------------------------------------------------------------------------
THE PROPERTY
The mortgaged property is a six-story medical office building with an
adjoining four-story parking garage which contains 530 spaces. Both the office
building and the garage were built in 1989. The buildings are located in a dense
urban neighborhood with a concentration of medical service establishments. The
buildings are located directly across the street from UCSF/Mount Zion Hospital
and the new Clinical Cancer Center, scheduled to open in September 2000, and
three blocks north of ▇▇▇▇▇▇ Permanente Hospital. Major tenants at the property
include ▇▇▇▇▇▇ Foundation Hospitals, Inc. (32,474 square feet) under a lease
expiring December 2002, HealthSouth Surgery Center (13,218 square feet) under a
lease expiring April 2009, and University of California San Francisco (Regents
of the University of California) (12,389 square feet) under leases expiring
November 2001 (1,954 square feet), September 2007 (9,517 square feet) and May
2003 (918 square feet).
The borrower leases the mortgaged property pursuant to two ground
leases that expire on January 4, 2059. The medical office building is leased
from Mount Zion Hospital, and the parking garage is leased from Medical Center,
a California non-profit corporation.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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45
THE BORROWER
The borrower is WDG III San Francisco Medical Center, a California
limited liability company with WDG San Francisco Medical Center, Inc. as its
managing member. WDG San Francisco Medical Center, Inc. is a special purpose
corporation that is wholly owned by ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, ▇▇▇▇▇▇
▇. ▇▇▇▇▇▇▇ and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ and UNC Realty, Inc. (with a 0.833% interest),
who will be liable for the carveout guarantees. The borrower is a single purpose
entity whose organizational documents do not permit it to engage in any business
unrelated to the mortgaged property, or to have any assets other than the
mortgaged property or any indebtedness (subject to limited exceptions such as
trade payables incurred in the ordinary course of business) other than the
mortgage loan. In connection with the closing of the mortgage loan, the lender
received an opinion from the borrower's counsel to the effect that, among other
things, the assets of the borrower would not be consolidated with the assets of
any party having a controlling interest in the borrower in the event of a
bankruptcy or insolvency of that party.
MANAGEMENT
The medical office building is managed by the Western Development
Group, an affiliate of the borrower. The parking garage is managed by Central
Parking Corporation, which is unaffiliated with the borrower.
ESCROWS
The loan documents require the borrower to fund the following monthly
escrow deposits: (a) an amount sufficient to pay real estate taxes and property
insurance premiums when due; (b) $1,102 for future capital expenditures; and (c)
$9,585 to cover lease roll-over expenses. In addition, $1,650,000 was withheld
from loan proceeds at funding, and is currently held in escrow. The borrower has
the right to obtain these withheld funds, during the period from April 1, 2001
through December 31, 2001, upon satisfaction of a debt service coverage ratio
loan-to-value ratio specified in the loan agreement. If the borrower fails to
achieve these criteria by December 31, 2001, the amount in escrow will be
applied toward a partial prepayment of the mortgage and any yield maintenance
charge imposed by the loan documents. Upon any such prepayment, the mortgage
loan will be reamortized to reflect any reduction in the principal balance
resulting from the prepayment.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or any transfer of an interest in the borrower or (ii)
any additional encumbrance of the mortgaged property, in each case without the
prior written consent of the lender.
See Loan No. 310900130 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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46
LOAN NO. 26908 -- HILTON GARDEN CUPERTINO
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a hotel located in Cupertino, California. The mortgage loan was
originated by Bear, ▇▇▇▇▇▇▇ Funding, Inc. on September 15, 1999.
---------------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $17,797,958 PROPERTY TYPE: Hospitality, Limited
Service
GROSS MORTGAGE RATE: 8.1900% LOCATION: Cupertino, California
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 1998
FIRST PAYMENT DATE: 11/1/1999 NO. OF ROOMS: 165
MATURITY DATE: 10/1/2009 CUT-OFF DATE BALANCE/ROOM: $107,866.41
ORIGINAL AMORTIZATION: 300
ANNUAL DEBT SERVICE: $1,659,761 OCCUPANCY: 73.9%
LOCKOUT END DATE: 9/30/2009 OCCUPANCY DATE: 7/31/2000
CALL PROTECTION: Defeasance AVERAGE DAILY RATE: $167.46
CALL PROTECTION END DATE: 9/30/2009 APPRAISED VALUE: $31,700,000
ESCROWS CUT-OFF DATE LTV: 56.1%
REAL ESTATE TAXES: Yes BALLOON LTV: 47.0%
INSURANCE: Yes
REPLACEMENT RESERVES: Yes UNDERWRITTEN CASH FLOW: $3,467,291
DSCR: 2.04x
---------------------------------------------------------------------------------------------------------------------------------
THE PROPERTY
The mortgaged property is a 165 room Hilton Garden hotel situated on
2.17 acres. The mortgaged property, which was constructed in 1998, is a limited
service hotel located directly across from the Hewlett-Packard Americas
Headquarters, in the heart of Silicon Valley. The mortgaged property contains
one 1,500 square foot meeting room, which is divisible into three 500 square
foot rooms. In addition, the mortgaged property has an outdoor pool and jacuzzi,
as well as an indoor fitness center.
THE BORROWER
The borrower is Cupertino Hotel Associates, LLC, a California limited
liability company whose managing member is Cupertino Hotel Management, LLC, an
entity controlled by ▇▇▇▇▇ ▇▇▇. The borrower is a single purpose entity whose
organizational documents do not permit it to engage in any business unrelated to
the mortgaged property, or to have any assets other than the mortgaged property
or any indebtedness (subject to limited exceptions such as trade payables
incurred in the ordinary course of business) other than the mortgage loan. In
connection with the closing of the mortgage loan, the lender received an opinion
from ▇▇▇▇▇▇▇▇'s counsel to the effect that, among other things, the assets of
the borrower would not be consolidated with the assets of any party having a
controlling interest in the borrower in the event of a bankruptcy or insolvency
of that party.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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47
MANAGEMENT
The mortgaged property is managed by ▇▇▇▇ ▇. ▇▇▇▇ & Associates, which
is unaffiliated with the borrower.
ESCROWS
The loan documents require the borrower to fund monthly escrow deposits
in an amount sufficient to pay real estate taxes and property insurance premiums
when due. In addition, the loan documents require the borrower to make monthly
deposits of $27,353.50 to a furniture, fixtures and equipment escrow account
until a balance of $750,000 is achieved and thereafter to make monthly
contributions of $27,353.50 or such lesser amount as is necessary to maintain
that balance.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or a transfer of more than 49% of the interests in the
borrower to an unrelated third party or (ii) any additional encumbrance of the
mortgaged property, in each case without the prior written consent of the
lender.
See Loan No. 26908 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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48
LOAN NO. 29198 -- AMC CANTERA 30
OVERVIEW
This mortgage loan is secured by a first mortgage on the borrower's fee
interest in a 130,757 square foot megaplex theater located in Warrenville,
Illinois. The mortgage loan was originated by Bear, ▇▇▇▇▇▇▇ Funding, Inc. on
April 27, 2000.
----------------------------------------------------------------------------------------------------------------------------
CUT-OFF DATE BALANCE: $17,770,862 PROPERTY TYPE: Theater
GROSS MORTGAGE RATE: 8.2350% LOCATION: Warrenville, Illinois
INTEREST ACCRUAL METHOD: Actual/360 YEAR BUILT/RENOVATED: 1997-1998
FIRST PAYMENT DATE: 6/1/2000 SQUARE FEET: 130,757
MATURITY DATE: 5/1/2010 CUT-OFF DATE BALANCE/SQ.FT.:
$135.91
ORIGINAL AMORTIZATION: 300
ANNUAL DEBT SERVICE: $1,686,714 OCCUPANCY: 100.0%
LOCKOUT END DATE: 4/30/2010 OCCUPANCY DATE: 5/1/2000
CALL PROTECTION: Defeasance
CALL PROTECTION END DATE: 4/30/2010 APPRAISED VALUE: $35,625,000
ESCROWS CUT-OFF DATE LTV: 49.9%
REAL ESTATE TAXES: Springing BALLOON LTV: 41.6%
INSURANCE: Springing
REPLACEMENT RESERVES: Springing UNDERWRITTEN CASH FLOW: $3,362,227
DSCR: 1.99x
----------------------------------------------------------------------------------------------------------------------------
THE PROPERTY
The mortgaged property is a 130,757 square foot, 30-screen two-story
megaplex theater and is located in the western portion of the greater Chicago
Metropolitan Statistical Area. AMC Cantera 30, which was constructed in 1998,
seats 5,883 and includes stadium seating throughout. In addition, the property
contains 18 box office stations, 40 concession registers and 2,398 parking
spaces. The property is 100% leased to American Multi-Cinema, Inc. under a lease
expiring in March 2013.
THE BORROWER
The borrower is Cantera 30 Theatre, L.P., which is controlled by
Entertainment Properties Trust, a Maryland real estate investment trust whose
common shares of beneficial interest are traded on the New York Stock Exchange.
The borrower is a single purpose entity whose organizational documents do not
permit it to engage in any business unrelated to the mortgaged property, to have
any assets other than the mortgaged property or any indebtedness (subject to
limited exceptions such as trade payables incurred in the ordinary course of
business) other than the
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
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BEAR ▇▇▇▇▇▇▇ COMMERCIAL MORTGAGE SECURITIES INC. 2000-WF2
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49
mortgage loan. In addition, the borrower's organizational documents require an
independent director and the unanimous vote of directors of the borrower in
connection with the filing of a petition of bankruptcy related to the borrower.
In connection with the closing of the mortgage loan, the lender received an
opinion from ▇▇▇▇▇▇▇▇'s counsel to the effect that, among other things, the
assets of the borrower would not be consolidated with the assets of any party
having a controlling interest in the borrower in the event of a bankruptcy or
insolvency of that party.
MANAGEMENT
The mortgaged property is managed by the borrower.
ESCROWS
The borrower is required to pay real estate taxes and insurance
premiums as they become due. If the borrower at any time fails to provide the
lender with satisfactory evidence of payment of real estate taxes and property
insurance premiums, the lender may require the borrower to thereafter fund
escrows to provide for the payment of such items. If the mortgaged property is
not maintained in accordance with the loan documents, the lender may require the
borrower to fund an additional escrow for future capital expenditures.
ADDITIONAL DEBT/TRANSFERS
The loan documents provide that the mortgage loan will become
immediately due and payable upon (i) any transfer of the borrower's interest in
the mortgaged property or any transfer of more than 49% of the shares in the
borrower to an unrelated third party or (ii) any additional encumbrance of the
mortgaged property, in each case without the prior written consent of the
lender.
The borrower has the right to transfer the property upon the payment of
an assumption fee in the amount of 1% of the then unpaid principal balance of
the mortgage loan, confirmation from Fitch and S&P that the transfer would not
result in a downgrade, qualification (if applicable) or withdrawal of the then
current ratings assigned to any class of certificates, and satisfaction of other
conditions specified in the loan documents.
See Loan No. 29198 in the mortgage loan schedule.
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THIS INFORMATION SHOULD BE CONSIDERED ONLY AFTER READING THE UNDERWRITERS'
STATEMENT REGARDING ASSUMPTIONS AS TO SECURITIES, PRICING ESTIMATES, AND
OTHER INFORMATION ("THE STATEMENT") WHICH SHOULD BE ATTACHED. DO NOT USE OR
RELY ON THIS INFORMATION IF YOU HAVE NOT RECEIVED AND REVIEWED THE STATEMENT.
YOU MAY OBTAIN A COPY OF THE STATEMENT FROM YOUR SALES REPRESENTATIVE. The
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 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 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 these securities.
