UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) June 14, 2004

Morgan Stanley Capital I Inc.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation)

333-104283-06
(Commission
File Number)

13-3291626
(IRS Employer
Identification No.)

1585 Broadway, 2nd Floor, New York, New York
(Address of principal executive offices)

10036
(Zip Code)

Registrant's telephone number, including area code 212-761-4000

(Former name or former address, if changed since last report.)

Item 5. Other Events and Regulation FD Disclosure.

This current report on Form 8-K relates to the monthly distribution reported to the holders of Morgan Stanley Capital I Inc., Commercial Mortgage Pass-Through Certificates, Series 2004-HQ3, which was made on June 14, 2004.

Item 7. Financial Statements and Exhibits.

99.1 Monthly distribution report pursuant to Section 5.4 of the Pooling and Servicing Agreement for the distribution on June 14, 2004.
(Exhibit No. Description)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

LASALLE BANK NATIONAL ASSOCIATION IN ITS CAPACITY AS TRUSTEE UNDER THE POOLING AND SERVICING AGREEMENT ON BEHALF OF MORGAN STANLEY CAPITAL I INC., REGISTRANT

Date: June 17, 2004

By: /s/ Russell Goldenberg
Russell Goldenberg
Group Senior Vice President

Morgan Stanley Capital I Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Reporting Package Table of Contents

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Administrator:

Michael Dombai 312.904.8847
michael.dombai@abnamro.com

Analyst:

Christine Paidosh 714.238.6707
christine.paidosh@abnamro.com

Statement Date:

135 S. LaSalle Street, Suite 1625
Chicago, IL 60603
USA

Statements to Certificateholders
Cash Reconciliation Summary CMSA v1
Bond Interest Reconciliation
Shortfall Summary Report

Asset-Backed Facts ~ 15 Month Loan Status Summary

Asset-Backed Facts ~ 15 Month Payoff/Loss Summary
Delinquent Loan Detail

Historical Collateral Prepayment
Loan Level Detail
Mortgage Loan Characteristics

Page 2-5
Page 6
Page 7
Page 8

Page 9

Page 10
Page 11

Page 12
Page 13-16

Page 17-19

Specially Serviced (Part I) ~ Loan Detail

Specially Serviced Loan Detail (Part II) ~ Servicer Comments
Modified Loan Detail
Realized Loss Detail

Appraisal Reduction Detail
Disclosure Statement - MSC04HQ3

Page 20

Page 21
Page 22
Page 23

Page 24
Page 25

Page(s)

Information is available for this issue from the following sources

Issue Id:

Monthly Data File
Name:

MSC04HQ3

MSC04HQ3_200406_3.ZIP

Closing Date:

First Payment Date:

Rated Final Payment: Date:

2-Mar-04
13-Apr-04

13-Jan-14

Parties to The Transaction

Depositor: Morgan Stanley Capital I Inc.

Underwriter: Morgan Stanley & Co. Incorporated

Master Servicer: Wells Fargo Bank, National Association

Special Servicer: GMAC Commercial Mortgage Corporation

Rating Agency: Standard & Poor's Rating Services/Moody's Investors Service, Inc.

800.246.5761

LaSalle Factor Line

LaSalle Web Site
Servicer Web Site

www.ctslink.com

www.etrustee.net

Page 1 of 25

Class

CUSIP

Original

Opening

Principal

Negative

Closing

Interest

Pass-Through

Per $ 1000

Next Rate(3)

WAC:
WAMM:

Payment Date:
Prior Payment:
Next Payment:
Record Date:

5.865952%

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Morgan Stanley Capital I Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

Face Value (1)

Balance

Payment

Adj. or Loss

Amortization

Balance

Payment (2)

Adjustment

Rate

REMIC III

Statement Date:

ABN AMRO Acct: 721705.1

987.354261901

5.922790005

0.000000000

981.431471895

2.550665203

Fixed

0.00

0.000000000

3.10000000%

0.000000000

61745MWY5

A-1

113,860,000.00

112,420,156.26

674,368.87

0.00

111,745,787.39

290,418.74

1000.000000000

0.000000000

1000.000000000

3.375000000

Fixed

0.00

0.000000000

4.05000000%

0.000000000

61745MWZ2

A-2

319,750,000.00

0.00

319,750,000.00

1,079,156.25

1000.000000000

0.000000000

1000.000000000

3.741666678

Fixed

0.00

0.000000000

4.49000000%

0.000000000

61745MXA6

A-3

145,475,000.00

0.00

145,475,000.00

544,318.96

1000.000000000

0.000000000

1000.000000000

4.000000000

Fixed

0.00

0.000000000

4.80000000%

0.000000000

61745MXB4

A-4

547,150,000.00

0.00

547,150,000.00

2,188,600.00

998.913311062

0.000000000

998.404346672

0.095856759

0.103644354%

0.00

0.000000000

0.11515324%

0.000000000

61745MXJ7/U6176PKT2

X-1

1,324,982,421.00

1,323,542,577.26

0.00

1,322,868,208.39

127,008.52

1000.000000000

0.000000000

1000.000000000

1.080277959

1.119386638%

0.00

0.000000000

1.29633355%

0.000000000

61745MXK4/U6176PKU9

X-2

1,258,818,000.00

0.00

1,258,818,000.00

1,359,873.34

1000.000000000

0.000000000

1000.000000000

4.025000000

Fixed

0.00

0.000000000

4.83000000%

0.000000000

61745MXC2

16,562,000.00

0.00

16,562,000.00

66,662.05

1000.000000000

0.000000000

1000.000000000

4.066666465

Fixed

0.00

0.000000000

4.88000000%

0.000000000

61745MXD0

16,562,000.00

0.00

16,562,000.00

67,352.13

1000.000000000

0.000000000

1000.000000000

4.083333585

Fixed

0.00

0.000000000

4.90000000%

0.000000000

61745MXE8

13,250,000.00

0.00

13,250,000.00

54,104.17

1000.000000000

0.000000000

1000.000000000

4.100000000

Fixed

0.00

0.000000000

4.92000000%

0.000000000

61745MXF5

19,875,000.00

0.00

19,875,000.00

81,487.50

1000.000000000

0.000000000

1000.000000000

4.133333585

Fixed

0.00

0.000000000

4.96000000%

0.000000000

61745MXG3

13,250,000.00

0.00

13,250,000.00

54,766.67

1000.000000000

0.000000000

1000.000000000

4.157950731

4.801324024%

0.00

0.000000000

4.98954121%

0.000000000

61745MXH1

16,562,000.00

0.00

16,562,000.00

68,863.98

1000.000000000

0.000000000

1000.000000000

4.249617800

4.911324024%

0.00

0.000000000

5.09954121%

0.000000000

61745MXL2

16,562,000.00

0.00

16,562,000.00

70,382.17

1000.000000000

0.000000000

1000.000000000

4.332950664

5.011324024%

0.00

0.000000000

5.19954121%

0.000000000

61745MXM0/U6176PKV7

11,594,000.00

0.00

11,594,000.00

50,236.23

1000.000000000

0.000000000

1000.000000000

4.707951007

5.461324024%

0.00

0.000000000

5.64954121%

0.000000000

61745MXN8/U6176PKW5

23,187,000.00

0.00

23,187,000.00

109,163.26

1000.000000000

0.000000000

1000.000000000

4.232499623

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXP3/U6176PKX3

6,625,000.00

0.00

6,625,000.00

28,040.31

Page 2 of 25

Notes: (1) N denotes notional balance not included in total (2) Accrued Interest Plus/Minus Interest Adjustment Minus Deferred Interest equals Interest Payment (3) Estimated. * Denotes Controlling Class

Class

CUSIP

Original

Opening

Principal

Negative

Closing

Interest

Pass-Through

Per $ 1000

Next Rate(3)

WAC:
WAMM:

Payment Date:
Prior Payment:
Next Payment:
Record Date:

5.865952%

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Morgan Stanley Capital I Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

Face Value (1)

Balance

Payment

Adj. or Loss

Amortization

Balance

Payment (2)

Adjustment

Rate

REMIC III

Statement Date:

ABN AMRO Acct: 721705.1

1000.000000000

0.000000000

1000.000000000

4.232499623

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXQ1/U6176PKY1

6,625,000.00

0.00

6,625,000.00

28,040.31

1000.000000000

0.000000000

1000.000000000

4.232499623

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXR9/U6176PKZ8

6,625,000.00

0.00

6,625,000.00

28,040.31

1000.000000000

0.000000000

1000.000000000

4.232500000

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXS7/U6176PLA2

4,968,000.00

0.00

4,968,000.00

21,027.06

1000.000000000

0.000000000

1000.000000000

4.232499245

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXT5/U6176PLB0

3,313,000.00

0.00

3,313,000.00

14,022.27

1000.000000000

0.000000000

1000.000000000

4.232500223

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXU2/U6176PLC8

3,312,685.00

0.00

3,312,685.00

14,020.94

1000.000000000

0.000000000

1000.000000000

4.232499994

5.079000000%

0.00

0.000000000

5.07900000%

0.000000000

61745MXV0/U6176PLD6

19,874,736.00

0.00

19,874,736.00

84,119.82

0.000000000

0.00

0.000000000

N/A

0.000000000

9ABSQ055

R-III

0.00

Total P&I Payment

0.00

1,324,982,421.00

1,323,542,577.26

7,104,073.86

Total

1,322,868,208.39

674,368.87

0.00

6,429,704.99

Page 3 of 25

Class

CUSIP

Original

Opening

Principal

Negative

Closing

Interest

Pass-Through

Per $ 1000

Next Rate(3)

WAC:
WAMM:

Payment Date:
Prior Payment:
Next Payment:
Record Date:

5.865952%

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Morgan Stanley Capital I Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

Face Value (1)

Balance

Payment

Adj. or Loss

Amortization

Balance

Payment (2)

Adjustment

Rate

Grantor Trust

Statement Date:

ABN AMRO Acct: 721705.1

0.000000000

0.00

0.000000000

N/A

0.000000000

0.00

Total P&I Payment

0.00

Total

0.00

Page 4 of 25

Class

CUSIP

Original

Opening

Principal

Negative

Closing

Interest

Pass-Through

Per $ 1000

Next Rate(3)

WAC:
WAMM:

Payment Date:
Prior Payment:
Next Payment:
Record Date:

5.865952%

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Morgan Stanley Capital I Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

Face Value (1)

Balance

Payment

Adj. or Loss

Amortization

Balance

Payment (2)

Adjustment

Rate

International Plaza Loan REMIC

Statement Date:

ABN AMRO Acct: 721705.1

997.141531755

1.378784246

0.000000000

995.762747509

3.583316652

Fixed

0.00

0.000000000

4.17320000%

0.000000000

LR-IP

37,366,295.81

37,259,485.44

51,520.06

0.00

37,207,965.38

133,895.27

0.000000000

0.00

0.000000000

N/A

0.000000000

9ABSQ058

R-IP

0.00

Total P&I Payment

0.00

37,366,295.81

37,259,485.44

185,415.33

Total

37,207,965.38

51,520.06

0.00

133,895.27

Page 5 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Statement Date:

Cash Reconciliation Summary

Current Scheduled Interest

Interest Summary

Less Deferred Interest

Plus Gross Advance Interest

Less PPIS Reducing Scheduled Int

5,746,540.50

0.00
0.00

Less ASER Interest Adv Reduction

0.00

Less Other Adjustment

0.00

Total

6,464,912.25

Unscheduled Interest:
Prepayment Penalties

0.00

Yield Maintenance Penalties

0.00

Other Interest Proceeds

0.00

Total

0.00

Less Fees & Expenses Paid By/To Servicer

Less Fee Paid To Servicer
Less Fee Strips Paid by Servicer

Special Servicing Fees

Interest Due Serv on Advances
Recoup of Prior Advances
Misc. Fees & Expenses

Total Unscheduled Fees & Expenses

Total Interest Due Trust

Less Fees & Expenses Paid By/To Trust
Trustee Fee
Fee Strips
Misc. Fees
Interest Reserve Withholding
Plus Interest Reserve Deposit
Total

Total Interest Due Certs

Principal Summary

Scheduled Principal:
Current Scheduled Principal
Advanced Scheduled Principal
Scheduled Principal
Unscheduled Principal:
Curtailments
Prepayments in Full
Liquidation Proceeds
Repurchase Proceeds
Other Principal Proceeds
Total Unscheduled Principal
Remittance Principal

Remittance P&I Due Trust

Remittance P&I Due Certs

Pool Balance Summary

Beginning Pool
Scheduled Principal
Unscheduled Principal
Deferred Interest
Liquidations
Repurchases

Ending Pool

Balance

Count

Principal

Interest

Prior Outstanding

Plus Current Period

Less Recovered

Ending Outstanding

Servicing Fee Summary

Current Servicing Fees
Plus Fees Advanced for PPIS
Less Reduction for PPIS
Plus Delinquent Servicing Fees

Total Servicing Fees

PPIS Summary

Gross PPIS
Reduced by PPIE
Reduced by Shortfalls in Fees
Reduced by Other Amounts
PPIS Reducing Scheduled Interest
PPIS Reducing Servicing Fee

PPIS Due Certificate

0.00

0.00
0.00

0.00

6,431,756.49

)

(2,051.49

0.00
0.00
0.00

)

(2,051.49

601,091.72

73,277.15

674,368.87

0.00
0.00
0.00
0.00
0.00
0.00

674,368.87

7,106,125.36

7,104,073.87

1,323,542,577.36

674,368.87

0.00

0.00
0.00

0.00

1,322,868,208.49

55,011.35

318,811.01

73,277.15

718,371.74

73,277.15

718,371.74

33,155.76

0.00
0.00

4,952.05

38,107.80

0.00
0.00
0.00
0.00
0.00
0.00

0.00

Advance Summary (Advance Made by Servicer)

)

(33,155.76

6,429,705.00

Interest Not Advanced (

Current Period

)

0.00

718,371.74

Workout Fees
Liquidation Fees

0.00
0.00

Less Non Recovered

)

(318,811.01

)

(55,011.35

0.00

Page 6 of 25

Morgan Stanley Capital I Inc.

Class

Accrued

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1
Bond Interest Reconciliation

Deductions

Allocable

Deferred &

Prior

Prepay-

Other

Additions

Interest

Credit Support

Original

Current(4)

Accrual

Int. Short-

falls Due

ment

Interest

Interest (2)

Payment

Amount

PPIS

Interest

Certificate

Accretion

Interest

Loss/Exp

Interest

Penalties

Proceeds (1)

Interest

Shortfalls

Certificate

Rate

Pass
Thru

Method Days

Outstanding

Remaining

Statement Date:

Distributable

Current Period

(Shortfall)/

Recovery

Int Accrual

on Prior

Shortfall (3)

0.00

A-1

290,418.74

0.00

15.00%

15.02%

30/360

3.100000000%

0.00

A-2

1,079,156.25

0.00

15.00%

15.02%

30/360

4.050000000%

0.00

A-3

544,318.96

0.00

15.00%

15.02%

30/360

4.490000000%

0.00

A-4

2,188,600.00

0.00

15.00%

15.02%

30/360

4.800000000%

0.00

X-1

127,008.52

0.00

30/360

0.115153243%

0.00

X-2

1,359,873.34

0.00

30/360

1.296333552%

0.00

66,662.05

0.00

13.75%

13.77%

30/360

4.830000000%

0.00

67,352.13

0.00

12.50%

12.52%

30/360

4.880000000%

0.00

54,104.17

0.00

11.50%

11.52%

30/360

4.900000000%

0.00

81,487.50

0.00

10.00%

10.02%

30/360

4.920000000%

0.00

54,766.67

0.00

9.00%

9.01%

30/360

4.960000000%

0.00

68,863.98

0.00

7.75%

7.76%

30/360

4.989541208%

0.00

70,382.17

0.00

6.50%

6.51%

30/360

5.099541208%

0.00

50,236.23

0.00

5.63%

30/360

5.199541208%

0.00

109,163.26

0.00

3.88%

30/360

5.649541208%

0.00

28,040.31

0.00

3.38%

30/360

5.079000000%

0.00

28,040.31

0.00

2.88%

30/360

5.079000000%

0.00

28,040.31

0.00

2.38%

30/360

5.079000000%

0.00

21,027.06

0.00

2.00%

30/360

5.079000000%

0.00

14,022.27

0.00

1.75%

30/360

5.079000000%

0.00

14,020.94

0.00

1.50%

30/360

5.079000000%

0.00

84,119.82

0.00

0.00%

30/360

5.079000000%

0.00

30/360

0.000000000%

0.00

6,429,704.99

0.00

(2) Accrued - Deductions + Additions Interest

(3) Includes interest accrued on outstanding Interest Shortfalls and/or Loss Allocations. Where applicable.

Page 7 of 25

(1) Other Interest Proceeds are additional interest amounts specifically allocated to the bond(s) and used in determining the bonds Distributable Interest.

(4) Determined as follows: (A) the ending balance of all the classes less (B) the sum of (i) the ending balance of the class and (ii) the ending balance of all classes which are not subordinate to the class divided by (A).

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Interest Adjustments Summary

Statement Date

0.00

Special Servicing Fees

Workout Fees

Liquidation Fees

Legal Fees

0.00

Misc. Fees & Expenses Paid by/to Servicer

Interest Paid to Servicer on Outstanding Advances

0.00

ASER Interest Advance Reduction

Interest Not Advanced (Current Period)

Recoup of Prior Advances by Servicer

0.00

Servicing Fees Paid Servicer on Loans Not Advanced

Misc. Fees & Expenses Paid by Trust

0.00

Shortfall Due to Rate Modification

Total Shortfall Allocated to the Bonds

Total Interest Adjustment to the Bonds

0.00

Shortfall Allocated to the Bonds:

Excess Allocated to the Bonds:

Other Interest Proceeds Due the Bonds

Yield Maintenance Penalties Due the Bonds

Prepayment Penalties Due the Bonds

Recovered ASER Interest Due the Bonds

Recovered Interest Due the Bonds

Less Total Shortfall Allocated to the Bonds

Total Excess Allocated to the Bonds

0.00

0.00

Total Excess Allocated to the Bonds

0.00

0.00

Aggregate Interest Adjustment Allocated to the Bonds

0.00

Prepayment Interest Excess Due the Bonds

0.00

ARD Excess Interest

0.00

Other Interest Loss

0.00

Net Prepayment Int. Shortfalls Allocated to the Bonds

Page 8 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

Asset-Backed Facts ~ 15 Month Historical Loan Status Summary

Distribution

Date

Delinq 1 Month

Delinq 2 Months

Delinq 3+ Months

Foreclosure

REO

Modifications

Specially Serviced

Bankruptcy

# Balance

Delinquency Aging Categories

Special Event Categories (1)

Statement Date:

ABN AMRO Acct: 721705.1

0.00%

14-Jun-04

0.00%

13-May-04

0.00%

13-Apr-04

(1) Note: Modification, Specially Serviced & Bankruptcy Totals are Included in the Appropriate Delinquency Aging Category

Page 9 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Asset-Backed Facts ~ 15 Month Historical Payoff/Loss Summary

Distribution

Date

Ending Pool (1)

Payoffs(2)

Penalties

Appraisal Reduct. (2)

Liquidations (2)

Realized Losses (2)

Remaining Term

Curr Weighted Avg.

# Balance

# Amount

# Balance

# Amount

Life

Coupon Remit

Statement Date:

Amort

ABN AMRO Acct: 721705.1

Series 2004-HQ3

14-Jun-04

104.49%

1,322,868,208

99.84%

0.00%

259

5.87%

5.83%

13-May-04

104.49%

1,323,542,577

99.89%

0.00%

100

259

5.68%

5.64%

13-Apr-04

104.49%

1,324,315,313

99.95%

0.00%

101

260

5.87%

5.83%

(1) Percentage based on pool as of cutoff. (2) Percentage based on pool as of beginning of period.

Page 10 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Delinquent Loan Detail

Disclosure

Control #

Paid

Thru
Date

Current P&I

Advance

Outstanding

P&I

Advances**

Out. Property

Protection

Advances

Loan

Status

Code (1)

Special

Servicer

Transfer Date

Foreclosure

Date

Bankruptcy

Date

REO

Date

Statement Date:

8-May-04

494,237.61

0.00

8-May-04

185,473.09

0.00

1-May-04

58,568.93

0.00

1-May-04

3,993.36

0.00

1-May-04

27,569.30

0.00

1-May-04

21,806.61

0.00

791,648.89

Total

Page 11 of 25

A. In Grace Period

1. Delinq. 1 month

2. Delinq. 2 months

3. Delinquent 3 + months

4. Performing Matured Balloon

** Outstanding P&I Advances include the current period P&I Advance

7. Foreclosure

9. REO

B. Late Payment but < 1 month delinq.

5. Non Performing Matured Balloon

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Historical Collateral Level Prepayment Report

Disclosure

Control #

Payoff
Period

Initial

Balance

Type

Payoff

Amount

Penalty

Amount

Prepayment

Date

Maturity

Date

Property

Type

Geographic

Location

Statement Date:

Cumulative

Current

Page 12 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Loan Level Detail

Disclosure

Control #

Group

Property

Type

Maturity

Date

PFY

DSCR

Operating
Statement

Date

Geo.

Location

Ending

Principal

Balance

Note

Rate

Scheduled

P&I

Prepayment

Amount

Prepayment

Date

Loan

Status

Code (1)

Statement Date:

4.60600%

9-Jun-10

MSC4HQ3A

Retail

3.23

187,000,000

741,694

5.24679%

8-Jan-14

MSC4HQ3A

Office

3.19

110,000,000

496,988

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

1.22

30,000,000

204,083

5.67000%

8-Jan-14

MSC4HQ3A

Retail

1.35

49,131,423

285,664

4.68000%

1-Jul-10

MSC4HQ3A

Office

2.12

59,750,000

240,793

6.60000%

7-Feb-14

MSC4HQ3A

Lodging

1.87

52,927,330

339,421

4.93000%

8-Jan-09

MSC4HQ3A

Office

2.13

44,679,732

189,678

5.64000%

5-Aug-12

MSC4HQ3A

Multifamily

2.62

40,000,000

194,267

4.20500%

8-Jan-08

MSC4HQ3B

Retail

2.19

37,207,965

186,436

4.93000%

8-Jan-09

MSC4HQ3A

Office

2.10

36,340,000

154,273

6.40000%

1-Feb-14

MSC4HQ3A

Retail

1.42

28,846,495

194,002

6.40000%

1-Feb-14

MSC4HQ3A

Retail

1.33

28,448,612

191,326

6.43000%

1-Jan-14

MSC4HQ3A

Other

1.71

26,825,468

181,127

5.61000%

1-Feb-14

MSC4HQ3A

Office

1.73

24,397,978

140,804

5.76000%

1-Jan-14

MSC4HQ3A

Industrial

1.74

21,750,000

107,880

6.10000%

5-Jan-14

MSC4HQ3A

Office

1.56

19,908,154

121,199

5.75000%

1-Nov-13

MSC4HQ3A

Office

1.73

17,832,000

88,293

6.09000%

1-Oct-13

MSC4HQ3A

Other

1.98

17,372,587

105,936

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

3,128,564

19,434

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,771,013

17,213

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,552,511

15,856

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,473,055

15,362

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,125,437

13,203

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,065,845

12,833

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

1.64

2,016,185

12,524

Page 13 of 25

* NOI and DSCR, if available and reportable under the terms of the trust agreement, are based on information obtained from the related borrower, and no other party to the agreement shall be held liable for the accuracy or methodology used to determine such figures.

(1) Legend:

A. In Grace Period

B. Late Payment but < 1 month delinq

1. Delinquent 1 month

2. Delinquent 2 months

3. Delinquent 3+ months

4. Performing Matured Balloon

7. Foreclosure

9. REO

5. Non Performing Matured Ballon

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Loan Level Detail

Disclosure

Control #

Group

Property

Type

Maturity

Date

PFY

DSCR

Operating
Statement

Date

Geo.

Location

Ending

Principal

Balance

Note

Rate

Scheduled

P&I

Prepayment

Amount

Prepayment

Date

Loan

Status

Code (1)

Statement Date:

5.70000%

1-Feb-14

MSC4HQ3A

Mixed use

1.54

16,203,339

102,052

5.75000%

1-Nov-13

MSC4HQ3A

Office

1.72

16,072,000

79,579

5.90000%

1-Jan-14

MSC4HQ3A

Retail

1.47

15,027,607

89,564

5.96000%

1-Sep-13

MSC4HQ3A

Retail

1.40

14,078,763

84,771

5.89000%

1-Feb-14

MSC4HQ3A

Retail

1.59

14,000,000

71,007

5.95000%

1-Dec-13

MSC4HQ3A

Office

1.54

12,330,507

73,946

5.98000%

1-Jan-14

MSC4HQ3A

Retail

1.39

11,618,377

75,240

5.89000%

9-Dec-13

MSC4HQ3A

Retail

1.56

11,136,396

66,360

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

1.27

10,336,880

58,161

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

1.43

9,817,893

53,490

5.68000%

1-Dec-13

MSC4HQ3A

Retail

1.47

9,542,924

55,597

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

1.48

8,700,816

59,544

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

1.48

593,237

4,060

6.26000%

1-Dec-13

MSC4HQ3A

Industrial

1.59

8,952,941

55,473

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

1.22

25,000,000

170,069

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

1.22

25,000,000

170,069

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

1.22

20,000,000

136,056

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

1.58

8,880,000

43,701

6.60000%

1-Feb-14

MSC4HQ3A

Retail

1.50

8,756,303

74,837

5.48000%

1-Jun-13

MSC4HQ3A

Office

1.71

8,516,426

48,864

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

1.71

8,480,000

41,732

5.25000%

1-Oct-13

MSC4HQ3A

Mixed use

1.48

8,393,327

50,936

6.11000%

1-Nov-13

MSC4HQ3A

Retail

1.81

7,626,307

50,130

6.02000%

1-Jan-14

MSC4HQ3A

Mixed use

1.52

7,348,721

47,769

5.58000%

1-Oct-13

MSC4HQ3A

Retail

1.66

7,141,404

41,243

Page 14 of 25

(1) Legend:

A. In Grace Period

B. Late Payment but < 1 month delinq

1. Delinquent 1 month

2. Delinquent 2 months

3. Delinquent 3+ months

4. Performing Matured Balloon

7. Foreclosure

9. REO

5. Non Performing Matured Ballon

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Loan Level Detail

Disclosure

Control #

Group

Property

Type

Maturity

Date

PFY

DSCR

Operating
Statement

Date

Geo.

Location

Ending

Principal

Balance

Note

Rate

Scheduled

P&I

Prepayment

Amount

Prepayment

Date

Loan

Status

Code (1)

Statement Date:

5.92000%

1-Nov-13

MSC4HQ3A

Retail

1.74

7,000,000

35,684

5.90000%

1-Dec-13

MSC4HQ3A

Industrial

1.69

7,000,000

35,564

5.67000%

8-Jan-14

MSC4HQ3A

Retail

1.35

19,521,234

113,502

5.94000%

1-Jan-14

MSC4HQ3A

Retail

1.41

6,236,441

42,763

5.98000%

1-Dec-13

MSC4HQ3A

Office

1.68

6,165,483

37,092

6.08000%

1-Dec-13

MSC4HQ3A

Self storage

1.39

5,967,331

36,282

4.91000%

1-Aug-13

MSC4HQ3A

Retail

1.79

5,929,487

31,880

6.00000%

1-Feb-14

MSC4HQ3A

Retail

1.50

5,767,226

37,369

5.45000%

8-Feb-14

MSC4HQ3A

Retail

1.48

5,476,351

31,056

5.23000%

9-Sep-13

MSC4HQ3A

Retail

1.48

5,155,360

31,279

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

1.45

5,081,408

28,591

5.84000%

1-Oct-13

MSC4HQ3A

Retail

1.60

5,080,610

30,172

5.85000%

1-Apr-13

MSC4HQ3A

Retail

1.64

4,993,952

29,869

6.65000%

1-Dec-13

MSC4HQ3A

Industrial

1.50

4,976,100

32,098

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

1.47

4,880,000

26,587

5.44000%

1-May-13

MSC4HQ3A

Office

2.74

4,700,000

22,017

5.66000%

1-Nov-13

MSC4HQ3A

Retail

1.43

4,666,799

27,160

6.51000%

1-Nov-13

MSC4HQ3A

Retail

1.50

4,349,316

27,682

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

1.28

4,264,213

23,993

5.80000%

1-Jul-13

MSC4HQ3A

Mixed use

1.54

3,462,670

20,536

5.95000%

1-Aug-13

MSC4HQ3A

Industrial

1.59

3,387,733

20,395

6.31000%

1-Mar-14

MSC4HQ3A

Retail

1.41

3,287,472

21,892

6.14000%

1-Dec-13

MSC4HQ3A

Retail

1.54

3,189,070

20,990

5.45000%

1-Jan-11

MSC4HQ3A

Retail

1.71

2,977,155

18,333

6.02000%

1-Nov-13

MSC4HQ3A

Retail

1.57

2,980,379

18,025

Page 15 of 25

(1) Legend:

A. In Grace Period

B. Late Payment but < 1 month delinq

1. Delinquent 1 month

2. Delinquent 2 months

3. Delinquent 3+ months

4. Performing Matured Balloon

7. Foreclosure

9. REO

5. Non Performing Matured Ballon

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Loan Level Detail

Disclosure

Control #

Group

Property

Type

Maturity

Date

PFY

DSCR

Operating
Statement

Date

Geo.

Location

Ending

Principal

Balance

Note

Rate

Scheduled

P&I

Prepayment

Amount

Prepayment

Date

Loan

Status

Code (1)

Statement Date:

5.89000%

1-Oct-13

MSC4HQ3A

Retail

1.71

2,977,171

17,775

5.10000%

1-Sep-13

MSC4HQ3A

Office

1.48

2,969,326

16,288

6.18000%

1-Oct-13

MSC4HQ3A

Retail

1.44

2,859,449

17,602

5.06000%

1-Sep-13

MSC4HQ3A

Retail

1.76

2,771,137

15,134

6.22000%

9-Dec-13

MSC4HQ3A

Retail

1.44

2,678,523

17,761

6.00000%

1-Jan-14

MSC4HQ3A

Retail

1.43

2,581,922

16,752

6.20000%

1-Dec-13

MSC4HQ3A

Retail

1.61

2,536,485

15,618

5.55000%

1-Jul-13

MSC4HQ3A

Retail

1.76

2,458,854

15,427

6.19000%

1-Nov-13

MSC4HQ3A

Retail

1.51

2,300,410

14,164

6.02000%

1-Feb-14

MSC4HQ3A

Retail

2.05

2,291,189

13,819

6.17000%

1-Feb-14

MSC4HQ3A

Retail

1.78

2,280,724

16,704

6.15000%

1-Dec-13

MSC4HQ3A

Retail

1.47

2,281,482

15,031

5.70000%

1-Feb-14

MSC4HQ3A

Mixed use

1.57

2,087,547

13,148

6.03000%

1-Nov-13

MSC4HQ3A

Mixed use

1.84

2,086,295

12,631

5.88000%

1-Aug-13

MSC4HQ3A

Retail

1.48

2,079,881

12,429

6.15000%

1-Jul-13

MSC4HQ3A

Self storage

1.65

2,034,305

13,495

6.11000%

1-Dec-13

MSC4HQ3A

Retail

1.34

2,033,940

12,406

5.99000%

1-Jan-14

MSC4HQ3A

Industrial

1.43

1,959,259

12,700

1,322,868,208

7,144,233

Page 16 of 25

(1) Legend:

A. In Grace Period

B. Late Payment but < 1 month delinq

1. Delinquent 1 month

2. Delinquent 2 months

3. Delinquent 3+ months

4. Performing Matured Balloon

7. Foreclosure

9. REO

5. Non Performing Matured Ballon

Morgan Stanley Capital I Inc.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

28-May-04

13-Jul-04

13-May-04

14-Jun-04

Record Date:

Next Payment:

Prior Payment:

Payment Date:

Statement Date:

Distribution of Mortgage Interest Rates

Distribution of Principal Balances

Distribution of Remaining Term (Balloon)

Distribution of Remaining Term (Fully Amortizing)

Page 17 of 25

Current Scheduled

Balance

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

593,237

0.04

113

6.13

1.48

0 to

1,000,000

1,959,259

0.15

115

5.99

1.43

1,000,000 to

2,000,000

61,270,218

4.63

111

5.90

1.62

2,000,000 to

3,000,000

16,455,509

1.24

113

6.03

1.54

3,000,000 to

4,000,000

32,830,379

2.48

107

5.98

1.66

4,000,000 to

5,000,000

38,457,773

2.91

105

5.56

1.53

5,000,000 to

6,000,000

26,401,925

2.00

114

5.93

1.63

6,000,000 to

7,000,000

22,116,432

1.67

113

5.91

1.67

7,000,000 to

8,000,000

60,679,813

4.59

102

5.89

1.58

8,000,000 to

9,000,000

19,360,817

1.46

126

6.01

1.45

9,000,000 to 10,000,000

215,437,843

16.29

111

6.04

1.53

10,000,000 to 20,000,000

210,268,553

15.89

114

6.82

1.44

20,000,000 to 30,000,000

113,547,965

8.58

4.94

2.31

30,000,000 to 40,000,000

93,811,155

7.09

5.32

1.72

40,000,000 to 50,000,000

112,677,330

8.52

5.58

2.00

50,000,000 to 60,000,000

0.00

60,000,000 to 70,000,000

0.00

70,000,000 to 80,000,000

0.00

80,000,000 to 90,000,000

0.00

90,000,000 to 100,000,000

297,000,000

22.45

4.84

3.22

100,000,000 &

Above

187,000,000

593,237

1,322,868,208

100.00

Average Schedule Balance
Maximum Schedule Balance
Minimum Schedule Balance

14,224,389

Current Mortgage

Interest Rate

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

37,207,965

2.81

4.21

2.19

4.000%

4.250%

0.00

4.251%

4.500%

246,750,000

18.65

4.62

2.96

4.501%

4.750%

86,949,219

6.57

4.93

2.09

4.751%

5.000%

129,289,150

9.77

114

5.24

2.94

5.001%

5.250%

41,352,433

3.13

5.41

1.61

5.251%

5.500%

226,415,501

17.12

109

5.67

1.73

5.501%

5.750%

175,766,609

13.29

114

5.91

1.57

5.751%

6.000%

97,069,402

7.34

114

6.10

1.64

6.001%

6.250%

111,058,881

8.40

118

6.38

1.48

6.251%

6.500%

71,009,048

5.37

116

6.60

1.78

6.501%

6.750%

0.00

6.751%

7.000%

0.00

7.001%

7.250%

0.00

7.251%

7.500%

100,000,000

7.56

111

7.90

1.22

7.501%

Above

1,322,868,208

Minimum Mortgage Interest Rate
Maximum Mortgage Interest Rate

100.00

4.205%
7.900%

Fully Amortizing

Mortgage Loans

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

0.00

120

0.00

121

180

0.00

181

240

0.00

241

Above

0.00

Balloon

Mortgage Loans

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

0.00

137,910,197

10.43

4.79

2.02

1,170,260,118

88.46

104

5.77

2.03

120

14,697,893

1.11

137

6.33

1.44

121

180

0.00

181

240

0.00

241

& Above

137

1,322,868,208

Minimum Remaining Term
Maximum Remaining Term

100.00

Morgan Stanley Capital I Inc.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

28-May-04

13-Jul-04

13-May-04

14-Jun-04

Record Date:

Next Payment:

Prior Payment:

Payment Date:

Statement Date:

Geographic Distribution

Distribution of DSCR (PFY)

Distribution of DSCR (Cutoff)

Page 18 of 25

Debt Service

Coverage Ratio

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

0.00

Less than zero

0.00

0.000 0.249

0.00

0.250 0.499

0.00

0.500 0.749

0.00

0.750 0.999

100,000,000

7.56

111

7.90

1.22

1.000 1.249

278,516,746

21.05

111

5.90

1.40

1.250 1.499

328,929,856

24.86

112

5.93

1.64

1.500 1.749

93,452,720

7.06

114

6.26

1.87

1.750 1.999

180,268,886

13.63

4.71

2.13

2.000 2.249

0.00

2.250 2.499

44,700,000

3.38

5.62

2.63

2.500 2.749

0.00

2.750 2.999

297,000,000

22.45

4.84

3.22

3.000 3.249

0.00

3.250 & Above

3.230
1.220

1,322,868,208

100.00

Minimum DSCR

Maximum DSCR

Debt Service

Coverage Ratio

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

0.00

Less than zero

0.00

0.001 0.750

0.00

0.751 0.875

0.00

0.876 1.000

0.00

1.001 1.125

100,000,000

7.56

111

7.90

1.22

1.126 1.250

113,736,302

8.60

107

5.82

1.33

1.251 1.375

188,629,389

14.26

114

6.02

1.45

1.376 1.500

123,784,959

9.36

112

5.94

1.56

1.501 1.625

181,295,953

13.70

111

5.86

1.71

1.626 1.750

76,080,133

5.75

115

6.30

1.85

1.751 1.875

17,372,587

1.31

112

6.09

1.98

1.876 2.000

98,381,189

7.44

4.80

2.11

2.001 2.125

81,887,697

6.19

4.60

2.16

2.126 2.250

341,700,000

25.83

4.94

3.14

2.251 & Above

3.230

1.220

1,322,868,208 100.00

Minimum DSCR

Maximum DSCR

Geographic

Location

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

Undefined

251,068,327

18.98

5.30

2.47

California

238,888,665

18.06

104

5.68

1.80

Maryland

200,648,009

15.17

4.69

3.12

Washington

107,000,000

8.09

111

7.77

1.25

Texas

82,315,136

6.22

113

5.70

1.40

Virginia

73,719,077

5.57

105

5.70

2.21

Florida

71,079,906

5.37

4.98

1.82

Pennsylvania

61,879,293

4.68

114

5.84

1.68

Georgia

45,172,158

3.41

115

6.39

1.45

Michigan

37,961,864

2.87

115

6.27

1.67

Arizona

29,728,097

2.25

5.71

1.64

Vermont

28,448,612

2.15

116

6.40

1.33

North Carolina

17,169,231

1.30

114

5.87

1.62

Missouri

11,618,377

0.88

115

5.98

1.39

Tennessee

11,560,265

0.87

113

6.14

1.47

Illinois

10,736,453

0.81

113

6.00

1.54

New Jersey

8,952,941

0.68

114

6.26

1.59

Nevada

8,880,000

0.67

5.72

1.58

Iowa

8,393,327

0.63

112

5.25

1.48

Colorado

4,880,000

0.37

137

6.33

1.47

Connecticut

4,349,316

0.33

113

6.51

1.50

Ohio

2,281,482

0.17

114

6.15

1.47

New York

2,087,547

0.16

116

5.70

1.57

Oregon

2,033,940

0.15

114

6.11

1.34

Kentucky

2,016,185

0.15

114

5.96

1.64

100.00

1,322,868,208

Morgan Stanley Capital I Inc.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

28-May-04

13-Jul-04

13-May-04

14-Jun-04

Record Date:

Next Payment:

Prior Payment:

Payment Date:

Statement Date:

Distribution of Loan Seasoning

Distribution of Property Types

Distribution of Year Loans Maturing

Distribution of Amortization Type

Page 19 of 25

Property Types

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

Retail

548,304,595

41.45

5.36

2.12

Office

363,661,606

27.49

5.24

2.32

Multifamily

140,000,000

10.58

107

7.25

1.62

Lodging

52,927,330

4.00

116

6.60

1.87

Mobile home park

51,740,393

3.91

5.75

1.46

Industrial

48,026,032

3.63

114

5.99

1.66

Other

44,198,055

3.34

114

6.30

1.82

Mixed use

39,581,898

2.99

114

5.69

1.54

Self storage

34,428,300

2.60

113

6.04

1.55

1,322,868,208

100.00

Amortization Type

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

AmortizingBalloon

624,686,583

47.22

108

5.88

1.59

IO Maturity Balloon

312,719,732

23.64

4.83

2.86

IO/Amortizing/Balloon

385,461,893

29.14

106

6.03

2.05

1,322,868,208

100.00

Number of Months

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

1,235,966,291

93.43

101

2.00

5.72

86,901,917

6.57

2.39

5.03

0.00

108

0.00

109

120

0.00

121

1,322,868,208

100.00

Year

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

0.00

2004

0.00

2005

0.00

2006

0.00

2007

56,890,465

4.30

4.60

1.89

2008

81,019,732

6.12

4.93

2.12

2009

264,110,000

19.96

4.70

2.87

2010

2,977,155

0.23

5.45

1.71

2011

40,000,000

3.02

5.64

2.62

2012

376,493,791

28.46

112

6.40

1.53

2013

486,679,171

36.79

115

5.88

1.92

2014

14,697,893

1.11

137

6.33

1.44

2015 & Greater

100.00

1,322,868,208

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Specially Serviced (Part I) ~ Loan Detail (End of Period)

Disclosure

Control #

Servicing

Xfer Date

Balance

Note

Rate

Maturity

Date

Remaining

Property

Type

Geo.

Location

NOI

DSCR

NOI
Date

Schedule

Actual

Life

Statement Date:

Loan

Status

Code(1)

Not Available

Not Avail

Not Avail Not Avail

Page 20 of 25

(1) Legend:

A. P&I Adv - in Grace Period

B. P&I Adv - < one month delinq

1. P&I Adv - delinquent 1 month

2. P&I Adv - delinquent 2 months

3. P&I Adv - delinquent 3+ months

4. Mat. Balloon/Assumed P&I

7. Foreclosure

9. REO

5. Non Performing Mat. Balloon

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Specially Serviced Loan Detail (Part II) ~ Servicer Comments (End of Period)

Disclosure

Control #

Resolution

Strategy

Comments

Statement Date:

Page 21 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Modified Loan Detail

Disclosure

Control #

Modification

Date

Cutoff

Maturity

Date

Modification

Description

Modified

Maturity

Date

Statement Date:

Not Avail.

Page 22 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Realized Loss Detail

Period

Disclosure

Control #

Appraisal

Date

Appraisal

Value

Beginning
Scheduled

Balance

Gross

Proceeds

Gross Proceeds

as a % of

Sched. Balance

Aggregate

Liquidation
Expenses *

Net

Liquidation

Proceeds

Net Proceeds

as a % of

Sched. Balance

Realized

Loss

Statement Date:

Not Avail.

Current Total
Cumulative

Page 23 of 25

* Aggregate liquidation expenses also include outstanding P&I advances and unpaid servicing fees, unpaid trustee fees, etc..

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Appraisal Reduction Detail

Disclosure

Control#

Appraisal

Red. Date

Scheduled

Balance

ASER

Note

Rate

Maturity

Date

Property

Type

Geographic

Location

Appraisal

Value Date

DSCR

Statement Date:

Remaining Term

Life

ARA

Amount

Current P&I

Advance

Page 24 of 25

Morgan Stanley Capital I Inc.

Payment Date:
Prior Payment:
Next Payment:
Record Date:

14-Jun-04
14-Jun-04

13-May-04

13-Jul-04

28-May-04

Commercial Mortgage Pass-Through Certificates

Series 2004-HQ3

ABN AMRO Acct: 721705.1

Disclosure

Statement Date:

The information set forth in these reports may not be current in respect of the International Plaza Mortgage Loan.

Certificateholders are urged to refer to the CMSA files at etrustee.net, which shall be updated upon the Trustee's

receipt of such current information.

Page 25 of 25

MORGAN STANLEY DEAN WITTER CAP I INC CAPITAL I TR 2004-HQ3 8-K