10-D 1 msc06h10_10d-200612.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-D ASSET-BACKED ISSUER DISTRIBUTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the monthly distribution period from: November 9, 2006 to December 14, 2006 Commission File Number of issuing entity: 333-130684-19 Morgan Stanley Capital I Trust 2006-HQ10 (Exact name of issuing entity as specified in its charter) Commission File Number of depositor: 333-130684 Morgan Stanley Capital I Inc. (Exact name of depositor as specified in its charter) Morgan Stanley Mortgage Capital Inc. (Exact name of sponsors as specified in its charter) New York (State or other jurisdiction of incorporation or organization of the issuing entity) 51-0611762 51-0611763 51-0611764 54-6731697 54-6731698 54-6731699 (I.R.S. Employer Identification No.) c/o Wells Fargo Bank, N.A. 9062 Old Annapolis Road Columbia, MD 21045 (Address of principal executive offices of the issuing entity) (Zip Code) (410) 884-2000 (Telephone number, including area code) Not Applicable (Former name, former address, if changed since last report) Registered/reporting pursuant to (check one) Title of Section Section Section Name of Exchange Class 12(b) 12(g) 15(d) (If Section 12(b)) A-1 ______ ______ ___X___ ___________ A-1A ______ ______ ___X___ ___________ A-2 ______ ______ ___X___ ___________ A-3 ______ ______ ___X___ ___________ A-4 ______ ______ ___X___ ___________ A-4FL ______ ______ ___X___ ___________ A-MFL ______ ______ ___X___ ___________ A-J ______ ______ ___X___ ___________ B ______ ______ ___X___ ___________ C ______ ______ ___X___ ___________ D ______ ______ ___X___ ___________ E ______ ______ ___X___ ___________ F ______ ______ ___X___ ___________ G ______ ______ ___X___ ___________ H ______ ______ ___X___ ___________ J ______ ______ ___X___ ___________ K ______ ______ ___X___ ___________ L ______ ______ ___X___ ___________ M ______ ______ ___X___ ___________ N ______ ______ ___X___ ___________ O ______ ______ ___X___ ___________ P ______ ______ ___X___ ___________ Q ______ ______ ___X___ ___________ R-I ______ ______ ___X___ ___________ R-II ______ ______ ___X___ ___________ R-III ______ ______ ___X___ ___________ X-1 ______ ______ ___X___ ___________ X-2 ______ ______ ___X___ ___________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes __X__ No ____ Part I - DISTRIBUTION INFORMATION Item 1. Distribution and Pool Performance Information On December 14, 2006 a distribution was made to holders of Morgan Stanley Capital I Trust 2006-HQ10. The distribution report is attached as an Exhibit to this Form 10-D, please see Item 9(b), Exhibit 99.1 for the related information. Part II - OTHER INFORMATION Item 9. Exhibits. (a) The following is a list of documents filed as part of this Report on Form 10-D: (99.1) Monthly report distributed to holders of Morgan Stanley Capital I Trust 2006-HQ10, relating to the December 14, 2006 distribution. (b) The exhibits required to be filed by Registrant pursuant to Item 601 of Regulation S-K are listed above and in the Exhibit Index that immediately follows the signature page hereof. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Morgan Stanley Capital I Inc. (Depositor) /s/ Anthony Sfarra Anthony Sfarra, Vice President Date: December 21, 2006 EXHIBIT INDEX Exhibit Number Description EX-99.1 Monthly report distributed to holders of Morgan Stanley Capital I Trust 2006-HQ10, relating to the December 14, 2006 distribution. EX-99.1 Wells Fargo Bank, N.A. Corporate Trust Services 9062 Old Annapolis Road Columbia, MD 21045-1951 Morgan Stanley Capital I Inc. Commercial Mortgage Pass-Through Certificates Series 2006-HQ10 For Additional Information, please contact CTSLink Customer Service (301) 815-6600 Reports Available @ www.ctslink.com/cmbs Payment Date: December 14, 2006 Record Date: November 30, 2006 Determination Date: December 08, 2006 DISTRIBUTION DATE STATEMENT Table of Contents STATEMENT SECTIONS PAGE(s) Certificate Distribution Detail 2 Certificate Factor Detail 3 Reconciliation Detail 4 Other Required Information 5 Cash Reconciliation 6 Ratings Detail 7 Current Mortgage Loan and Property Stratification Tables 8 - 16 Mortgage Loan Detail 17 - 20 NOI Detail 21 - 24 Principal Prepayment Detail 25 Historical Detail 26 Delinquency Loan Detail 27 - 28 Specially Serviced Loan Detail 29 - 30 Advance Summary 31 Modified Loan Detail 32 Historical Liquidated Loan Detail 33 Historical Bond/Collateral Loss Reconciliation Detail 34 Interest Shortfall Reconciliation Detail 35 - 36 Supplemental Reporting 37 Depositor Morgan Stanley Capital I Inc. 1585 Broadway New York, NY 10036 Contact: General Information Number Phone Number: (212) 761-4700 Master Servicer Wells Fargo Bank, N.A. 1320 Willow Pass Road, Suite 300 investorreporting@wellsfargo.com Concord, CA 94520 Contact: Myung J. Nam Phone Number: Special Servicer LNR Partners, Inc. 1601 Washington Avenue Suite 700 Miami Beach, FL 33139 Contact: Randy Wolpert Phone Number: (305) 695-5628 This report has been compiled from information provided to Wells Fargo Bank, N.A. by various third parties, which may include the Servicer, Master Servicer, Special Servicer and others. Wells Fargo Bank, N.A. has not independently confirmed the accuracy of information received from these third parties and assumes no duty to do so. Wells Fargo Bank, N.A. expressly disclaims any responsibility for the accuracy or completeness of information furnished by third parties. Copyright 2006, Wells Fargo Bank, N.A.

Appraisal Reduction Amount None Cash Reconciliation Detail Total Funds Collected Interest: Scheduled Interest 7,353,421.80 Interest reductions due to Nonrecoverability Determinations 0.00 Interest Adjustments 0.00 Deferred Interest 0.00 Net Prepayment Interest Shortfall 0.00 Net Prepayment Interest Excess 0.00 Extension Interest 0.00 Interest Reserve Withdrawal 0.00 Total Interest Collected 7,353,421.80 Principal: Scheduled Principal 428,026.32 Unscheduled Principal 0.00 Principal Prepayments 0.00 Collection of Principal after Maturity Date 0.00 Recoveries from Liquidation and Insurance Proceeds 0.00 Excess of Prior Principal Amounts paid 0.00 Curtailments 0.00 Negative Amortization 0.00 Principal Adjustments 0.00 Total Principal Collected 428,026.32 Other: Prepayment Penalties/Yield Maintenance 0.00 Repayment Fees 0.00 Borrower Option Extension Fees 0.00 Equity Payments Received 0.00 Net Swap Counterparty Payments Received 258,388.08 Total Other Collected: 258,388.08 Total Funds Collected 8,039,836.20 Total Funds Distributed Fees: Master Servicing Fee 32,864.23 Trustee Fee - LaSalle Bank, N.A. 795.21 Paying Agent Fee - Wells Fargo Bank, N.A. 1,068.56 Insurer Fee 0.00 Miscellaneous Fee 0.00 Total Fees 34,727.99 Additional Trust Fund Expenses: Reimbursement for Interest on Advances 0.00 ASER Amount 0.00 Special Servicing Fee 0.00 Rating Agency Expenses 0.00 Attorney Fees & Expenses 0.00 Bankruptcy Expense 0.00 Taxes Imposed on Trust Fund 0.00 Non-Recoverable Advances 0.00 Other Expenses 0.00 Total Additional Trust Fund Expenses 0.00 Interest Reserve Deposit 0.00 Payments to Certificateholders & Others: Interest Distribution 7,577,081.84 Principal Distribution 428,026.32 Prepayment Penalties/Yield Maintenance 0.00 Borrower Option Extension Fees 0.00 Equity Payments Paid 0.00 Net Swap Counterparty Payments Paid 0.00 Total Payments to Certificateholders & Others 8,005,108.16 Total Funds Distributed 8,039,836.15

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Principal Prepayment Detail No Principal Prepayments this Period

Specially Serviced Loan Detail - Part 1 No Specially Serviced Loans this Period Specially Serviced Loan Detail - Part 2 No Specially Serviced Loans this Period

Modified Loan Detail No Modified Loans Historical Liquidated Loan Detail No Liquidated Loans this Period Historical Bond/Collateral Loss Reconciliation Detail No Realized Losses this Period

Morgan Stanley Capital I Trust 2006-HQ10 10-D