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~~August 1413, 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~~August 1413, 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~~August 1413, 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~~August 1718, 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-0414-Jun-04 13-May-04 13-Jul-04 28-May-04 Administrator: Michael Dombai 312.904.8847michael.dombai@abnamro.com Analyst: Christine Paidosh 714.238.6707 christine.paidosh@abnamro.com Statement Date: 135 S. LaSalle Street, Suite 1625Chicago, IL 60603USA Statements to CertificateholdersCash Reconciliation Summary CMSA v1Bond Interest ReconciliationShortfall Summary Report Asset-Backed Facts ~ 15 Month Loan Status Summary Asset-Backed Facts ~ 15 Month Payoff/Loss SummaryDelinquent Loan Detail Historical Collateral PrepaymentLoan Level DetailMortgage Loan Characteristics Page 2-5Page 6Page 7Page 8 Page 9 Page 10Page 11 Page 12Page 13-16 Page 17-19 Specially Serviced (Part I) ~ Loan Detail Specially Serviced Loan Detail (Part II) ~ Servicer CommentsModified Loan DetailRealized Loss Detail Appraisal Reduction DetailDisclosure Statement - MSC04HQ3 Page 20 Page 21Page 22Page 23 Page 24Page 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-0413-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 SiteServicer Web Site www.ctslink.com www.etrustee.net Page 1 of 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Class CUSIP Original Opening Principal Principal Negative Closing Interest Interest Pass-Through Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Next Rate(3) WAC:WAMM: Payment Date:Prior Payment:Next Payment:Record Date: 5.865952% 14-Jun-0414-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 99 REMIC III Statement Date: ABN AMRO Acct: 721705.1 987.354261901 5.922790005 0.000000000 981.431471895 2.550665203 Fixed 0.00 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 0.000000000 1000.000000000 3.375000000 Fixed 0.00 0.00 0.000000000 4.05000000% 0.000000000 61745MWZ2 A-2 319,750,000.00 319,750,000.00 0.00 0.00 319,750,000.00 1,079,156.25 1000.000000000 0.000000000 0.000000000 1000.000000000 3.741666678 Fixed 0.00 0.00 0.000000000 4.49000000% 0.000000000 61745MXA6 A-3 145,475,000.00 145,475,000.00 0.00 0.00 145,475,000.00 544,318.96 1000.000000000 0.000000000 0.000000000 1000.000000000 4.000000000 Fixed 0.00 0.00 0.000000000 4.80000000% 0.000000000 61745MXB4 A-4 547,150,000.00 547,150,000.00 0.00 0.00 547,150,000.00 2,188,600.00 998.913311062 0.000000000 0.000000000 998.404346672 0.095856759 0.103644354% 0.00 0.00 0.000000000 0.11515324% 0.000000000 N 61745MXJ7/U6176PKT2 X-1 1,324,982,421.00 1,323,542,577.26 0.00 0.00 1,322,868,208.39 127,008.52 1000.000000000 0.000000000 0.000000000 1000.000000000 1.080277959 1.119386638% 0.00 0.00 0.000000000 1.29633355% 0.000000000 N 61745MXK4/U6176PKU9 X-2 1,258,818,000.00 1,258,818,000.00 0.00 0.00 1,258,818,000.00 1,359,873.34 1000.000000000 0.000000000 0.000000000 1000.000000000 4.025000000 Fixed 0.00 0.00 0.000000000 4.83000000% 0.000000000 61745MXC2 B 16,562,000.00 16,562,000.00 0.00 0.00 16,562,000.00 66,662.05 1000.000000000 0.000000000 0.000000000 1000.000000000 4.066666465 Fixed 0.00 0.00 0.000000000 4.88000000% 0.000000000 61745MXD0 C 16,562,000.00 16,562,000.00 0.00 0.00 16,562,000.00 67,352.13 1000.000000000 0.000000000 0.000000000 1000.000000000 4.083333585 Fixed 0.00 0.00 0.000000000 4.90000000% 0.000000000 61745MXE8 D 13,250,000.00 13,250,000.00 0.00 0.00 13,250,000.00 54,104.17 1000.000000000 0.000000000 0.000000000 1000.000000000 4.100000000 Fixed 0.00 0.00 0.000000000 4.92000000% 0.000000000 61745MXF5 E 19,875,000.00 19,875,000.00 0.00 0.00 19,875,000.00 81,487.50 1000.000000000 0.000000000 0.000000000 1000.000000000 4.133333585 Fixed 0.00 0.00 0.000000000 4.96000000% 0.000000000 61745MXG3 F 13,250,000.00 13,250,000.00 0.00 0.00 13,250,000.00 54,766.67 1000.000000000 0.000000000 0.000000000 1000.000000000 4.157950731 4.801324024% 0.00 0.00 0.000000000 4.98954121% 0.000000000 61745MXH1 G 16,562,000.00 16,562,000.00 0.00 0.00 16,562,000.00 68,863.98 1000.000000000 0.000000000 0.000000000 1000.000000000 4.249617800 4.911324024% 0.00 0.00 0.000000000 5.09954121% 0.000000000 61745MXL2 H 16,562,000.00 16,562,000.00 0.00 0.00 16,562,000.00 70,382.17 1000.000000000 0.000000000 0.000000000 1000.000000000 4.332950664 5.011324024% 0.00 0.00 0.000000000 5.19954121% 0.000000000 61745MXM0/U6176PKV7 J 11,594,000.00 11,594,000.00 0.00 0.00 11,594,000.00 50,236.23 1000.000000000 0.000000000 0.000000000 1000.000000000 4.707951007 5.461324024% 0.00 0.00 0.000000000 5.64954121% 0.000000000 61745MXN8/U6176PKW5 K 23,187,000.00 23,187,000.00 0.00 0.00 23,187,000.00 109,163.26 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232499623 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXP3/U6176PKX3 L 6,625,000.00 6,625,000.00 0.00 0.00 6,625,000.00 28,040.31 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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 Principal Negative Closing Interest Interest Pass-Through Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Next Rate(3) WAC:WAMM: Payment Date:Prior Payment:Next Payment:Record Date: 5.865952% 14-Jun-0414-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 99 REMIC III Statement Date: ABN AMRO Acct: 721705.1 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232499623 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXQ1/U6176PKY1 M 6,625,000.00 6,625,000.00 0.00 0.00 6,625,000.00 28,040.31 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232499623 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXR9/U6176PKZ8 N 6,625,000.00 6,625,000.00 0.00 0.00 6,625,000.00 28,040.31 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232500000 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXS7/U6176PLA2 O 4,968,000.00 4,968,000.00 0.00 0.00 4,968,000.00 21,027.06 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232499245 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXT5/U6176PLB0 P 3,313,000.00 3,313,000.00 0.00 0.00 3,313,000.00 14,022.27 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232500223 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXU2/U6176PLC8 Q 3,312,685.00 3,312,685.00 0.00 0.00 3,312,685.00 14,020.94 1000.000000000 0.000000000 0.000000000 1000.000000000 4.232499994 5.079000000% 0.00 0.00 0.000000000 5.07900000% 0.000000000 61745MXV0/U6176PLD6 S 19,874,736.00 19,874,736.00 0.00 0.00 19,874,736.00 84,119.82 0.000000000 0.000000000 0.000000000 0.000000000 0.000000000 0.00 0.00 0.000000000 N/A 0.000000000 9ABSQ055 R-III 0.00 0.00 0.00 0.00 0.00 0.00 Total P&I Payment 0.00 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 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 3 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 Principal Negative Closing Interest Interest Pass-Through Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Next Rate(3) WAC:WAMM: Payment Date:Prior Payment:Next Payment:Record Date: 5.865952% 14-Jun-0414-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 99 Grantor Trust Statement Date: ABN AMRO Acct: 721705.1 0.000000000 0.000000000 0.000000000 0.000000000 0.000000000 0.00 0.00 0.000000000 N/A 0.000000000 S 0.00 0.00 0.00 0.00 0.00 0.00 Total P&I Payment 0.00 0.00 0.00 0.00 0.00 Total 0.00 0.00 0.00 0.00 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 4 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 Principal Negative Closing Interest Interest Pass-Through Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Per $ 1000 Next Rate(3) WAC:WAMM: Payment Date:Prior Payment:Next Payment:Record Date: 5.865952% 14-Jun-0414-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 99 International Plaza Loan REMIC Statement Date: ABN AMRO Acct: 721705.1 997.141531755 1.378784246 0.000000000 995.762747509 3.583316652 Fixed 0.00 0.00 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 0.000000000 0.000000000 0.000000000 0.000000000 0.00 0.00 0.000000000 N/A 0.000000000 9ABSQ058 R-IP 0.00 0.00 0.00 0.00 0.00 0.00 Total P&I Payment 0.00 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 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 5 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 Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 0.000.00 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 AdvancesRecoup of Prior AdvancesMisc. Fees & Expenses Total Unscheduled Fees & Expenses Total Interest Due Trust Less Fees & Expenses Paid By/To TrustTrustee FeeFee StripsMisc. FeesInterest Reserve WithholdingPlus Interest Reserve DepositTotal Total Interest Due Certs Principal Summary Scheduled Principal:Current Scheduled PrincipalAdvanced Scheduled PrincipalScheduled PrincipalUnscheduled Principal:CurtailmentsPrepayments in FullLiquidation ProceedsRepurchase ProceedsOther Principal ProceedsTotal Unscheduled Principal Remittance Principal Remittance P&I Due Trust Remittance P&I Due Certs Pool Balance Summary Beginning PoolScheduled PrincipalUnscheduled PrincipalDeferred InterestLiquidationsRepurchases Ending Pool Balance Count Principal Interest Prior Outstanding Plus Current Period Less Recovered Ending Outstanding Servicing Fee Summary Current Servicing FeesPlus Fees Advanced for PPISLess Reduction for PPISPlus Delinquent Servicing Fees Total Servicing Fees PPIS Summary Gross PPISReduced by PPIEReduced by Shortfalls in FeesReduced by Other AmountsPPIS Reducing Scheduled InterestPPIS Reducing Servicing Fee PPIS Due Certificate 0.00 0.00 0.000.00 0.00 0.00 6,431,756.49 ) (2,051.49 0.000.000.00 ) (2,051.49 601,091.72 73,277.15 674,368.87 0.000.000.000.000.000.00 674,368.87 7,106,125.36 7,104,073.87 1,323,542,577.36 93 674,368.87 0.00 0 0.000.00 0 0.00 0 1,322,868,208.49 93 55,011.35 318,811.01 73,277.15 718,371.74 73,277.15 718,371.74 33,155.76 0.000.00 4,952.05 38,107.80 0.000.000.000.000.000.00 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 FeesLiquidation Fees 0.000.00 Less Non Recovered ) (318,811.01 ) (55,011.35 0.00 0.00 0.00 Page 6 of 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Morgan Stanley Capital I Inc. Class Accrued Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-Jun-04 13-May-04 13-Jul-04 28-May-04 Commercial Mortgage Pass-Through Certificates Series 2004-HQ3 ABN AMRO Acct: 721705.1Bond 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 PassThru Method Days Outstanding Remaining Statement Date: Distributable Current Period (Shortfall)/ Recovery Int Accrual on Prior Shortfall (3) 0.00 0.00 0.00 0.00 0.00 A-1 30 290,418.74 290,418.74 290,418.74 0.00 15.00% 15.02% 30/360 3.100000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A-2 30 1,079,156.25 1,079,156.25 1,079,156.25 0.00 15.00% 15.02% 30/360 4.050000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A-3 30 544,318.96 544,318.96 544,318.96 0.00 15.00% 15.02% 30/360 4.490000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 A-4 30 2,188,600.00 2,188,600.00 2,188,600.00 0.00 15.00% 15.02% 30/360 4.800000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 X-1 30 127,008.52 127,008.52 127,008.52 0.00 NA NA 30/360 0.115153243% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 X-2 30 1,359,873.34 1,359,873.34 1,359,873.34 0.00 NA NA 30/360 1.296333552% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 B 30 66,662.05 66,662.05 66,662.05 0.00 13.75% 13.77% 30/360 4.830000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 C 30 67,352.13 67,352.13 67,352.13 0.00 12.50% 12.52% 30/360 4.880000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 D 30 54,104.17 54,104.17 54,104.17 0.00 11.50% 11.52% 30/360 4.900000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 E 30 81,487.50 81,487.50 81,487.50 0.00 10.00% 10.02% 30/360 4.920000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 F 30 54,766.67 54,766.67 54,766.67 0.00 9.00% 9.01% 30/360 4.960000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 G 30 68,863.98 68,863.98 68,863.98 0.00 7.75% 7.76% 30/360 4.989541208% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 H 30 70,382.17 70,382.17 70,382.17 0.00 6.50% 6.51% 30/360 5.099541208% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 J 30 50,236.23 50,236.23 50,236.23 0.00 5.63% 5.63% 30/360 5.199541208% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 K 30 109,163.26 109,163.26 109,163.26 0.00 3.88% 3.88% 30/360 5.649541208% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 L 30 28,040.31 28,040.31 28,040.31 0.00 3.38% 3.38% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 M 30 28,040.31 28,040.31 28,040.31 0.00 2.88% 2.88% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N 30 28,040.31 28,040.31 28,040.31 0.00 2.38% 2.38% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 O 30 21,027.06 21,027.06 21,027.06 0.00 2.00% 2.00% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 P 30 14,022.27 14,022.27 14,022.27 0.00 1.75% 1.75% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Q 30 14,020.94 14,020.94 14,020.94 0.00 1.50% 1.50% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 S 30 84,119.82 84,119.82 84,119.82 0.00 0.00% 0.00% 30/360 5.079000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 S 30 0.00 0.00 0.00 0.00 NA NA 30/360 0.000000000% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 6,429,704.99 6,429,704.99 6,429,704.99 0.00 0.00 0.00 0.00 (2) Accrued - Deductions + Additions Interest (3) Includes interest accrued on outstanding Interest Shortfalls and/or Loss Allocations. Where applicable. 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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-0414-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 0.00 0.00 0.00 Special Servicing Fees Workout Fees Liquidation Fees Legal Fees 0.00 0.00 Misc. Fees & Expenses Paid by/to Servicer Interest Paid to Servicer on Outstanding Advances 0.00 0.00 ASER Interest Advance Reduction Interest Not Advanced (Current Period) Recoup of Prior Advances by Servicer 0.00 0.00 Servicing Fees Paid Servicer on Loans Not Advanced Misc. Fees & Expenses Paid by Trust 0.00 0.00 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 0.00 0.00 0.00 Prepayment Interest Excess Due the Bonds 0.00 ARD Excess Interest 0.00 Other Interest Loss 0.00 0.00 Net Prepayment Int. Shortfalls Allocated to the Bonds Page 8 of 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 # Balance # Balance # Balance # Balance # Balance # Balance # Balance Delinquency Aging Categories Special Event Categories (1) Statement Date: ABN AMRO Acct: 721705.1 0.00% 0.00% 0.00% 0.00% 0 0.00% 0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 14-Jun-04 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% 0.00% 0.00% 0.00% 0 0.00% 0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 13-May-04 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0.00% 0.00% 0.00% 0.00% 0 0.00% 0 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 13-Apr-04 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (1) Note: Modification, Specially Serviced & Bankruptcy Totals are Included in the Appropriate Delinquency Aging Category Page 9 of 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 # Balance # Amount # Balance # Balance # Amount Life Coupon Remit Statement Date: Amort ABN AMRO Acct: 721705.1 Series 2004-HQ3 14-Jun-04 93 104.49% 1,322,868,208 99.84% 0.00% 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 99 259 5.87% 5.83% 0 0 0 0 13-May-04 93 104.49% 1,323,542,577 99.89% 0.00% 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 100 259 5.68% 5.64% 0 0 0 0 13-Apr-04 93 104.49% 1,324,315,313 99.95% 0.00% 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 0 0.00% 101 260 5.87% 5.83% 0 0 0 0 (1) Percentage based on pool as of cutoff. (2) Percentage based on pool as of beginning of period. Page 10 of 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 ThruDate 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-04 494,237.61 494,237.61 0.00 B 2 8-May-04 185,473.09 185,473.09 0.00 B 9 1-May-04 58,568.93 58,568.93 0.00 B 37 1-May-04 3,993.36 3,993.36 0.00 B 38 1-May-04 27,569.30 27,569.30 0.00 B 64 1-May-04 21,806.61 21,806.61 0.00 B 68 791,648.89 791,648.89 Total 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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-0414-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 # PayoffPeriod Initial Balance Type Payoff Amount Penalty Amount Prepayment Date Maturity Date Property Type Geographic Location Statement Date: Cumulative Current 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 12 of 25 Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 OperatingStatement Date Geo. Location Ending Principal Balance Note Rate Scheduled P&I Prepayment Amount Prepayment Date Loan Status Code (1) Statement Date: MD 4.60600% 9-Jun-10 MSC4HQ3A Retail 3.23 187,000,000 741,694 1 ZZ 5.24679% 8-Jan-14 MSC4HQ3A Office 3.19 110,000,000 496,988 B 2 WA 7.90000% 8-Sep-13 MSC4HQ3A Multifamily 1.22 30,000,000 204,083 3 TX 5.67000% 8-Jan-14 MSC4HQ3A Retail 1.35 49,131,423 285,664 4 CA 4.68000% 1-Jul-10 MSC4HQ3A Office 2.12 59,750,000 240,793 5 CA 6.60000% 7-Feb-14 MSC4HQ3A Lodging 1.87 52,927,330 339,421 6 ZZ 4.93000% 8-Jan-09 MSC4HQ3A Office 2.13 44,679,732 189,678 7 VA 5.64000% 5-Aug-12 MSC4HQ3A Multifamily 2.62 40,000,000 194,267 8 FL 4.20500% 8-Jan-08 MSC4HQ3B Retail 2.19 37,207,965 186,436 B 9 ZZ 4.93000% 8-Jan-09 MSC4HQ3A Office 2.10 36,340,000 154,273 10 GA 6.40000% 1-Feb-14 MSC4HQ3A Retail 1.42 28,846,495 194,002 11 VT 6.40000% 1-Feb-14 MSC4HQ3A Retail 1.33 28,448,612 191,326 12 MI 6.43000% 1-Jan-14 MSC4HQ3A Other 1.71 26,825,468 181,127 13 CA 5.61000% 1-Feb-14 MSC4HQ3A Office 1.73 24,397,978 140,804 14 VA 5.76000% 1-Jan-14 MSC4HQ3A Industrial 1.74 21,750,000 107,880 15 ZZ 6.10000% 5-Jan-14 MSC4HQ3A Office 1.56 19,908,154 121,199 16 ZZ 5.75000% 1-Nov-13 MSC4HQ3A Office 1.73 17,832,000 88,293 17 PA 6.09000% 1-Oct-13 MSC4HQ3A Other 1.98 17,372,587 105,936 18 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 3,128,564 19,434 19 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,771,013 17,213 20 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,552,511 15,856 21 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,473,055 15,362 22 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,125,437 13,203 23 PA 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,065,845 12,833 24 KY 5.96000% 1-Dec-13 MSC4HQ3A Self storage 1.64 2,016,185 12,524 25 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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-0414-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 OperatingStatement Date Geo. Location Ending Principal Balance Note Rate Scheduled P&I Prepayment Amount Prepayment Date Loan Status Code (1) Statement Date: PA 5.70000% 1-Feb-14 MSC4HQ3A Mixed use 1.54 16,203,339 102,052 26 ZZ 5.75000% 1-Nov-13 MSC4HQ3A Office 1.72 16,072,000 79,579 27 CA 5.90000% 1-Jan-14 MSC4HQ3A Retail 1.47 15,027,607 89,564 28 CA 5.96000% 1-Sep-13 MSC4HQ3A Retail 1.40 14,078,763 84,771 29 CA 5.89000% 1-Feb-14 MSC4HQ3A Retail 1.59 14,000,000 71,007 30 CA 5.95000% 1-Dec-13 MSC4HQ3A Office 1.54 12,330,507 73,946 31 MO 5.98000% 1-Jan-14 MSC4HQ3A Retail 1.39 11,618,377 75,240 32 MI 5.89000% 9-Dec-13 MSC4HQ3A Retail 1.56 11,136,396 66,360 33 FL 5.35000% 1-Nov-08 MSC4HQ3A Mobile home park 1.27 10,336,880 58,161 34 FL 6.32700% 1-Nov-15 MSC4HQ3A Mobile home park 1.43 9,817,893 53,490 35 NC 5.68000% 1-Dec-13 MSC4HQ3A Retail 1.47 9,542,924 55,597 36 TN 6.13000% 1-Nov-13 MSC4HQ3A Self storage 1.48 8,700,816 59,544 B 37 TX 6.13000% 1-Nov-13 MSC4HQ3A Self storage 1.48 593,237 4,060 B 38 NJ 6.26000% 1-Dec-13 MSC4HQ3A Industrial 1.59 8,952,941 55,473 39 WA 7.90000% 8-Sep-13 MSC4HQ3A Multifamily 1.22 25,000,000 170,069 3A WA 7.90000% 8-Sep-13 MSC4HQ3A Multifamily 1.22 25,000,000 170,069 3B WA 7.90000% 8-Sep-13 MSC4HQ3A Multifamily 1.22 20,000,000 136,056 3C NV 5.71500% 1-Nov-10 MSC4HQ3A Mobile home park 1.58 8,880,000 43,701 40 GA 6.60000% 1-Feb-14 MSC4HQ3A Retail 1.50 8,756,303 74,837 41 CA 5.48000% 1-Jun-13 MSC4HQ3A Office 1.71 8,516,426 48,864 42 AZ 5.71500% 1-Nov-10 MSC4HQ3A Mobile home park 1.71 8,480,000 41,732 43 IA 5.25000% 1-Oct-13 MSC4HQ3A Mixed use 1.48 8,393,327 50,936 44 NC 6.11000% 1-Nov-13 MSC4HQ3A Retail 1.81 7,626,307 50,130 45 IL 6.02000% 1-Jan-14 MSC4HQ3A Mixed use 1.52 7,348,721 47,769 46 VA 5.58000% 1-Oct-13 MSC4HQ3A Retail 1.66 7,141,404 41,243 47 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 14 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-0414-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 OperatingStatement Date Geo. Location Ending Principal Balance Note Rate Scheduled P&I Prepayment Amount Prepayment Date Loan Status Code (1) Statement Date: CA 5.92000% 1-Nov-13 MSC4HQ3A Retail 1.74 7,000,000 35,684 48 WA 5.90000% 1-Dec-13 MSC4HQ3A Industrial 1.69 7,000,000 35,564 49 TX 5.67000% 8-Jan-14 MSC4HQ3A Retail 1.35 19,521,234 113,502 4A ZZ 5.94000% 1-Jan-14 MSC4HQ3A Retail 1.41 6,236,441 42,763 50 FL 5.98000% 1-Dec-13 MSC4HQ3A Office 1.68 6,165,483 37,092 51 CA 6.08000% 1-Dec-13 MSC4HQ3A Self storage 1.39 5,967,331 36,282 52 AZ 4.91000% 1-Aug-13 MSC4HQ3A Retail 1.79 5,929,487 31,880 53 MD 6.00000% 1-Feb-14 MSC4HQ3A Retail 1.50 5,767,226 37,369 54 CA 5.45000% 8-Feb-14 MSC4HQ3A Retail 1.48 5,476,351 31,056 55 PA 5.23000% 9-Sep-13 MSC4HQ3A Retail 1.48 5,155,360 31,279 56 AZ 5.35000% 1-Nov-08 MSC4HQ3A Mobile home park 1.45 5,081,408 28,591 57 TX 5.84000% 1-Oct-13 MSC4HQ3A Retail 1.60 5,080,610 30,172 58 CA 5.85000% 1-Apr-13 MSC4HQ3A Retail 1.64 4,993,952 29,869 59 AZ 6.65000% 1-Dec-13 MSC4HQ3A Industrial 1.50 4,976,100 32,098 60 CO 6.32700% 1-Nov-15 MSC4HQ3A Mobile home park 1.47 4,880,000 26,587 61 CA 5.44000% 1-May-13 MSC4HQ3A Office 2.74 4,700,000 22,017 62 CA 5.66000% 1-Nov-13 MSC4HQ3A Retail 1.43 4,666,799 27,160 63 CT 6.51000% 1-Nov-13 MSC4HQ3A Retail 1.50 4,349,316 27,682 B 64 FL 5.35000% 1-Nov-08 MSC4HQ3A Mobile home park 1.28 4,264,213 23,993 65 MD 5.80000% 1-Jul-13 MSC4HQ3A Mixed use 1.54 3,462,670 20,536 66 IL 5.95000% 1-Aug-13 MSC4HQ3A Industrial 1.59 3,387,733 20,395 67 FL 6.31000% 1-Mar-14 MSC4HQ3A Retail 1.41 3,287,472 21,892 B 68 GA 6.14000% 1-Dec-13 MSC4HQ3A Retail 1.54 3,189,070 20,990 69 TX 5.45000% 1-Jan-11 MSC4HQ3A Retail 1.71 2,977,155 18,333 70 AZ 6.02000% 1-Nov-13 MSC4HQ3A Retail 1.57 2,980,379 18,025 71 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 15 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-0414-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 OperatingStatement Date Geo. Location Ending Principal Balance Note Rate Scheduled P&I Prepayment Amount Prepayment Date Loan Status Code (1) Statement Date: TX 5.89000% 1-Oct-13 MSC4HQ3A Retail 1.71 2,977,171 17,775 72 CA 5.10000% 1-Sep-13 MSC4HQ3A Office 1.48 2,969,326 16,288 73 TN 6.18000% 1-Oct-13 MSC4HQ3A Retail 1.44 2,859,449 17,602 74 PA 5.06000% 1-Sep-13 MSC4HQ3A Retail 1.76 2,771,137 15,134 75 PA 6.22000% 9-Dec-13 MSC4HQ3A Retail 1.44 2,678,523 17,761 76 PA 6.00000% 1-Jan-14 MSC4HQ3A Retail 1.43 2,581,922 16,752 77 VA 6.20000% 1-Dec-13 MSC4HQ3A Retail 1.61 2,536,485 15,618 78 MD 5.55000% 1-Jul-13 MSC4HQ3A Retail 1.76 2,458,854 15,427 79 GA 6.19000% 1-Nov-13 MSC4HQ3A Retail 1.51 2,300,410 14,164 80 VA 6.02000% 1-Feb-14 MSC4HQ3A Retail 2.05 2,291,189 13,819 81 AZ 6.17000% 1-Feb-14 MSC4HQ3A Retail 1.78 2,280,724 16,704 82 OH 6.15000% 1-Dec-13 MSC4HQ3A Retail 1.47 2,281,482 15,031 83 NY 5.70000% 1-Feb-14 MSC4HQ3A Mixed use 1.57 2,087,547 13,148 84 CA 6.03000% 1-Nov-13 MSC4HQ3A Mixed use 1.84 2,086,295 12,631 85 GA 5.88000% 1-Aug-13 MSC4HQ3A Retail 1.48 2,079,881 12,429 86 TX 6.15000% 1-Jul-13 MSC4HQ3A Self storage 1.65 2,034,305 13,495 87 OR 6.11000% 1-Dec-13 MSC4HQ3A Retail 1.34 2,033,940 12,406 88 MD 5.99000% 1-Jan-14 MSC4HQ3A Industrial 1.43 1,959,259 12,700 89 1,322,868,208 7,144,233 0 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 16 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. 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 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) 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 17 of 25 Current Scheduled Balance # of Loans Scheduled Balance % of Balance Weighted Average Term Coupon PFY DSCR 1 593,237 0.04 113 6.13 1.48 % 0 to 1,000,000 % 1 1,959,259 0.15 115 5.99 1.43 % 1,000,000 to 2,000,000 % 25 61,270,218 4.63 111 5.90 1.62 % 2,000,000 to 3,000,000 % 5 16,455,509 1.24 113 6.03 1.54 % 3,000,000 to 4,000,000 % 7 32,830,379 2.48 107 5.98 1.66 % 4,000,000 to 5,000,000 % 7 38,457,773 2.91 105 5.56 1.53 % 5,000,000 to 6,000,000 % 4 26,401,925 2.00 114 5.93 1.63 % 6,000,000 to 7,000,000 % 3 22,116,432 1.67 113 5.91 1.67 % 7,000,000 to 8,000,000 % 7 60,679,813 4.59 102 5.89 1.58 % 8,000,000 to 9,000,000 % 2 19,360,817 1.46 126 6.01 1.45 % 9,000,000 to 10,000,000 % 14 215,437,843 16.29 111 6.04 1.53 % 10,000,000 to 20,000,000 % 8 210,268,553 15.89 114 6.82 1.44 % 20,000,000 to 30,000,000 % 3 113,547,965 8.58 66 4.94 2.31 % 30,000,000 to 40,000,000 % 2 93,811,155 7.09 86 5.32 1.72 % 40,000,000 to 50,000,000 % 2 112,677,330 8.52 93 5.58 2.00 % 50,000,000 to 60,000,000 % 0 0 0.00 0 0.00 0.00 % 60,000,000 to 70,000,000 % 0 0 0.00 0 0.00 0.00 % 70,000,000 to 80,000,000 % 0 0 0.00 0 0.00 0.00 % 80,000,000 to 90,000,000 % 0 0 0.00 0 0.00 0.00 % 90,000,000 to 100,000,000 % 2 297,000,000 22.45 88 4.84 3.22 % 100,000,000 & Above % 187,000,000 593,237 1,322,868,208 93 100.00 % Average Schedule BalanceMaximum Schedule BalanceMinimum Schedule Balance 14,224,389 Current Mortgage Interest Rate # of Loans Scheduled Balance % of Balance Weighted Average Term Coupon PFY DSCR 1 37,207,965 2.81 43 4.21 2.19 % 4.000% % to 4.250% 0 0 0.00 0 0.00 0.00 % 4.251% % to 4.500% 2 246,750,000 18.65 72 4.62 2.96 % 4.501% % to 4.750% 3 86,949,219 6.57 59 4.93 2.09 % 4.751% % to 5.000% 5 129,289,150 9.77 114 5.24 2.94 % 5.001% % to 5.250% 7 41,352,433 3.13 81 5.41 1.61 % 5.251% % to 5.500% 14 226,415,501 17.12 109 5.67 1.73 % 5.501% % to 5.750% 27 175,766,609 13.29 114 5.91 1.57 % 5.751% % to 6.000% 19 97,069,402 7.34 114 6.10 1.64 % 6.001% % to 6.250% 7 111,058,881 8.40 118 6.38 1.48 % 6.251% % to 6.500% 4 71,009,048 5.37 116 6.60 1.78 % 6.501% % to 6.750% 0 0 0.00 0 0.00 0.00 % 6.751% % to 7.000% 0 0 0.00 0 0.00 0.00 % 7.001% % to 7.250% 0 0 0.00 0 0.00 0.00 % 7.251% % to 7.500% 4 100,000,000 7.56 111 7.90 1.22 % 7.501% % & Above 93 1,322,868,208 Minimum Mortgage Interest RateMaximum 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 0 0.00 0 0.00 0.00 % % to 0 60 0 0 0.00 0 0.00 0.00 % % to 61 120 0 0 0.00 0 0.00 0.00 % % to 121 180 0 0 0.00 0 0.00 0.00 % % to 181 240 0 0 0.00 0 0.00 0.00 % % & 241 Above 0 0 0.00 % Balloon Mortgage Loans # of Loans Scheduled Balance % of Balance Weighted Average Term Coupon PFY DSCR 0 0 0.00 0 0.00 0.00 % % 0 to 12 0 0 0.00 0 0.00 0.00 % % 13 to 24 0 0 0.00 0 0.00 0.00 % % 25 to 36 6 137,910,197 10.43 51 4.79 2.02 % % 37 to 60 85 1,170,260,118 88.46 104 5.77 2.03 % % 61 to 120 2 14,697,893 1.11 137 6.33 1.44 % % 121 to 180 0 0 0.00 0 0.00 0.00 % % 181 to 240 0 0 0.00 0 0.00 0.00 % % 241 & Above 137 43 93 1,322,868,208 Minimum Remaining TermMaximum 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 14-Jun-04 Record Date: Next Payment: Prior Payment: Payment Date: Statement Date: Geographic Distribution Distribution of DSCR (PFY) Distribution of DSCR (Cutoff) 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 18 of 25 Debt Service Coverage Ratio # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR 0 0 0.00 0 0.00 0.00 % % Less than zero 0 0 0.00 0 0.00 0.00 % % 0.000 0.249 0 0 0.00 0 0.00 0.00 % % 0.250 0.499 0 0 0.00 0 0.00 0.00 % % 0.500 0.749 0 0 0.00 0 0.00 0.00 % % 0.750 0.999 4 100,000,000 7.56 111 7.90 1.22 % % 1.000 1.249 30 278,516,746 21.05 111 5.90 1.40 % % 1.250 1.499 42 328,929,856 24.86 112 5.93 1.64 % % 1.500 1.749 8 93,452,720 7.06 114 6.26 1.87 % % 1.750 1.999 5 180,268,886 13.63 59 4.71 2.13 % % 2.000 2.249 0 0 0.00 0 0.00 0.00 % % 2.250 2.499 2 44,700,000 3.38 99 5.62 2.63 % % 2.500 2.749 0 0 0.00 0 0.00 0.00 % % 2.750 2.999 2 297,000,000 22.45 88 4.84 3.22 % % 3.000 3.249 0 0 0.00 0 0.00 0.00 % % 3.250 & Above 3.2301.220 93 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 0 0.00 0 0.00 0.00 % % Less than zero 0 0 0.00 0 0.00 0.00 % % 0.001 0.750 0 0 0.00 0 0.00 0.00 % % 0.751 0.875 0 0 0.00 0 0.00 0.00 % % 0.876 1.000 0 0 0.00 0 0.00 0.00 % % 1.001 1.125 4 100,000,000 7.56 111 7.90 1.22 % % 1.126 1.250 6 113,736,302 8.60 107 5.82 1.33 % % 1.251 1.375 28 188,629,389 14.26 114 6.02 1.45 % % 1.376 1.500 16 123,784,959 9.36 112 5.94 1.56 % % 1.501 1.625 22 181,295,953 13.70 111 5.86 1.71 % % 1.626 1.750 7 76,080,133 5.75 115 6.30 1.85 % % 1.751 1.875 1 17,372,587 1.31 112 6.09 1.98 % % 1.876 2.000 3 98,381,189 7.44 67 4.80 2.11 % % 2.001 2.125 2 81,887,697 6.19 50 4.60 2.16 % % 2.126 2.250 4 341,700,000 25.83 89 4.94 3.14 % % 2.251 & Above 3.230 1.220 93 1,322,868,208 100.00 Minimum DSCR Maximum DSCR % Geographic Location # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR Undefined 7 251,068,327 18.98 95 5.30 2.47 % % California 16 238,888,665 18.06 104 5.68 1.80 % % Maryland 5 200,648,009 15.17 75 4.69 3.12 % % Washington 5 107,000,000 8.09 111 7.77 1.25 % % Texas 7 82,315,136 6.22 113 5.70 1.40 % % Virginia 5 73,719,077 5.57 105 5.70 2.21 % % Florida 6 71,079,906 5.37 68 4.98 1.82 % % Pennsylvania 12 61,879,293 4.68 114 5.84 1.68 % % Georgia 5 45,172,158 3.41 115 6.39 1.45 % % Michigan 2 37,961,864 2.87 115 6.27 1.67 % % Arizona 6 29,728,097 2.25 92 5.71 1.64 % % Vermont 1 28,448,612 2.15 116 6.40 1.33 % % North Carolina 2 17,169,231 1.30 114 5.87 1.62 % % Missouri 1 11,618,377 0.88 115 5.98 1.39 % % Tennessee 2 11,560,265 0.87 113 6.14 1.47 % % Illinois 2 10,736,453 0.81 113 6.00 1.54 % % New Jersey 1 8,952,941 0.68 114 6.26 1.59 % % Nevada 1 8,880,000 0.67 77 5.72 1.58 % % Iowa 1 8,393,327 0.63 112 5.25 1.48 % % Colorado 1 4,880,000 0.37 137 6.33 1.47 % % Connecticut 1 4,349,316 0.33 113 6.51 1.50 % % Ohio 1 2,281,482 0.17 114 6.15 1.47 % % New York 1 2,087,547 0.16 116 5.70 1.57 % % Oregon 1 2,033,940 0.15 114 6.11 1.34 % % Kentucky 1 2,016,185 0.15 114 5.96 1.64 % % 100.00 1,322,868,208 93 % 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 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 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 19 of 25 Property Types # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR Retail 42 548,304,595 41.45 95 5.36 2.12 % % Office 13 363,661,606 27.49 94 5.24 2.32 % % Multifamily 5 140,000,000 10.58 107 7.25 1.62 % % Lodging 1 52,927,330 4.00 116 6.60 1.87 % % Mobile home park 7 51,740,393 3.91 85 5.75 1.46 % % Industrial 6 48,026,032 3.63 114 5.99 1.66 % % Other 2 44,198,055 3.34 114 6.30 1.82 % % Mixed use 6 39,581,898 2.99 114 5.69 1.54 % % Self storage 11 34,428,300 2.60 113 6.04 1.55 % % 1,322,868,208 93 100.00 % Amortization Type # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR AmortizingBalloon 72 624,686,583 47.22 108 5.88 1.59 % % IO Maturity Balloon 5 312,719,732 23.64 71 4.83 2.86 % % IO/Amortizing/Balloon 16 385,461,893 29.14 106 6.03 2.05 % % 1,322,868,208 93 100.00 % Number of Months # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR 89 1,235,966,291 93.43 101 2.00 % % 5.72 0 to 12 4 86,901,917 6.57 75 2.39 % % 5.03 13 to 24 0 0 0.00 0 0.00 % % 0.00 25 to 36 0 0 0.00 0 0.00 % % 0.00 37 to 48 0 0 0.00 0 0.00 % % 0.00 49 to 60 0 0 0.00 0 0.00 % % 0.00 61 to 72 0 0 0.00 0 0.00 % % 0.00 73 to 84 0 0 0.00 0 0.00 % % 0.00 85 to 96 0 0 0.00 0 0.00 % % 0.00 97 to 108 0 0 0.00 0 0.00 % % 0.00 109 to 120 0 0 0.00 0 0.00 % % 0.00 121 or More 93 1,322,868,208 100.00 % Year # of Loans Scheduled Balance % of Balance WAMM WAC PFY DSCR 0 0 0.00 0 0.00 0.00 % % 2004 0 0 0.00 0 0.00 0.00 % % 2005 0 0 0.00 0 0.00 0.00 % % 2006 0 0 0.00 0 0.00 0.00 % % 2007 4 56,890,465 4.30 46 4.60 1.89 % % 2008 2 81,019,732 6.12 55 4.93 2.12 % % 2009 4 264,110,000 19.96 73 4.70 2.87 % % 2010 1 2,977,155 0.23 79 5.45 1.71 % % 2011 1 40,000,000 3.02 98 5.64 2.62 % % 2012 54 376,493,791 28.46 112 6.40 1.53 % % 2013 25 486,679,171 36.79 115 5.88 1.92 % % 2014 2 14,697,893 1.11 137 6.33 1.44 % % 2015 & Greater 100.00 1,322,868,208 93 % Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 NOIDate Schedule Actual Life Statement Date: Loan Status Code(1) Not Available Not Avail Not Avail Not Avail 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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-0414-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: 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 21 of 25 Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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. 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Page 22 of 25 Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 BeginningScheduled Balance Gross Proceeds Gross Proceeds as a % of Sched. Balance Aggregate LiquidationExpenses * Net Liquidation Proceeds Net Proceeds as a % of Sched. Balance Realized Loss Statement Date: Not Avail. Not Avail. Current TotalCumulative 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. 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-0414-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 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A. Morgan Stanley Capital I Inc. Payment Date:Prior Payment:Next Payment:Record Date: 14-Jun-0414-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 10-Jun-2004 - 08:46 (Q022-Q058) (c) 2004 LaSalle Bank N.A.

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-04

Administrator:
Michael Dombai 312.904.8847
michael.dombai@abnamro.com

Analyst:
Kevin Ma 714.259.6254
kevin.ma@abnamro.com

Statement Date:

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

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

Asset-Backed Facts ~ 15 Month Loan Status Summary

Asset-Backed Facts ~ 15 Month Loan 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 (Part II) - Servicer Comments
Modified Loan Detail
Realized Loss Detail

Appraisal Reduction Detail
Disclosure Statement

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_200408_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/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:

5.865748%

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

974.582734938

5.987197084

0.000000000

968.595537854

2.517672053

Fixed

0.00

0.000000000

3.10000000%

0.000000000

61745MWY5

A-1

113,860,000.00

110,965,990.20

681,702.26

0.00

110,284,287.94

286,662.14

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

997.815812682

0.000000000

997.301313585

0.093351601

0.110920800%

0.00

0.000000000

0.11226714%

0.000000000

61745MXJ7/U6176PKT2

X-1

1,324,982,421.00

1,322,088,411.20

0.00

1,321,406,708.94

123,689.23

1000.000000000

0.000000000

1000.000000000

1.080120327

1.296049327%

0.00

0.000000000

1.29614439%

0.000000000

61745MXK4/U6176PKU9

X-2

1,258,818,000.00

0.00

1,258,818,000.00

1,359,674.91

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

4.157783480

4.989248766%

0.00

0.000000000

4.98934024%

0.000000000

61745MXH1

16,562,000.00

0.00

16,562,000.00

68,861.21

1000.000000000

0.000000000

1000.000000000

4.249449946

5.099248766%

0.00

0.000000000

5.09934024%

0.000000000

61745MXL2

16,562,000.00

0.00

16,562,000.00

70,379.39

1000.000000000

0.000000000

1000.000000000

4.332783336

5.199248766%

0.00

0.000000000

5.19934024%

0.000000000

61745MXM0/U6176PKV7

11,594,000.00

0.00

11,594,000.00

50,234.29

1000.000000000

0.000000000

1000.000000000

4.707783672

5.649248766%

0.00

0.000000000

5.64934024%

0.000000000

61745MXN8/U6176PKW5

23,187,000.00

0.00

23,187,000.00

109,159.38

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:

5.865748%

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

1,322,088,411.20

7,104,121.56

Total

1,321,406,708.94

681,702.26

0.00

6,422,419.30

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:

5.865748%

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

5.865748%

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

994.262660096

1.389208614

0.000000000

992.873451483

3.572971233

Fixed

0.00

0.000000000

4.17320000%

0.000000000

LR-IP

37,366,295.81

37,151,912.67

51,909.58

0.00

37,100,003.09

133,508.70

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

37,151,912.67

185,418.28

Total

37,100,003.09

51,909.58

0.00

133,508.70

Page 5 of 25

Morgan Stanley Capital I Inc.

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

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

3,999,116.59

0.00
0.00

Less ASER Interest Adv Reduction

0.00

Less Other Adjustment

0.00

Total

6,445,223.73

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

6,424,468.55

)

(2,049.24

0.00
0.00
0.00

)

(2,049.24

508,087.07
173,615.19
681,702.26

0.00
0.00
0.00
0.00
0.00
0.00

681,702.26

7,106,170.81

7,104,121.57

1,322,088,411.30

681,702.26

0.00

0.00
0.00

0.00

1,321,406,709.04

63,449.92

183,982.75

173,615.19

2,446,107.14

173,615.19

2,446,107.14

20,755.18

0.00
0.00

17,307.19

38,062.38

0.00
0.00
0.00
0.00
0.00
0.00

0.00

Advance Summary (Advance Made by Servicer)

)

(20,755.18

6,422,419.31

Interest Not Advanced (

Current Period

)

0.00

2,446,107.14

Workout Fees
Liquidation Fees

0.00
0.00

Less Non Recovered

)

(183,982.75

)

(63,449.92

0.00

Page 6 of 25

Morgan Stanley Capital I Inc.

Class

Accrued

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

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

286,662.14

0.00

15.00%

15.04%

30/360

3.100000000%

0.00

A-2

1,079,156.25

0.00

15.00%

15.04%

30/360

4.050000000%

0.00

A-3

544,318.96

0.00

15.00%

15.04%

30/360

4.490000000%

0.00

A-4

2,188,600.00

0.00

15.00%

15.04%

30/360

4.800000000%

0.00

X-1

123,689.23

0.00

30/360

0.112267136%

0.00

X-2

1,359,674.91

0.00

30/360

1.296144393%

0.00

66,662.05

0.00

13.75%

13.79%

30/360

4.830000000%

0.00

67,352.13

0.00

12.50%

12.53%

30/360

4.880000000%

0.00

54,104.17

0.00

11.50%

11.53%

30/360

4.900000000%

0.00

81,487.50

0.00

10.00%

10.03%

30/360

4.920000000%

0.00

54,766.67

0.00

9.00%

9.02%

30/360

4.960000000%

0.00

68,861.21

0.00

7.75%

7.77%

30/360

4.989340240%

0.00

70,379.39

0.00

6.50%

6.52%

30/360

5.099340240%

0.00

50,234.29

0.00

5.63%

5.64%

30/360

5.199340240%

0.00

109,159.38

0.00

3.88%

3.89%

30/360

5.649340240%

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%

2.01%

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

6,422,419.30

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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%

13-Aug-04

0.00%

13-Jul-04

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

13-Aug-04

104.49%

1,321,406,709

99.73%

0.00%

257

5.87%

5.83%

13-Jul-04

104.49%

1,322,088,411

99.78%

0.00%

258

5.68%

5.64%

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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-Jul-04

494,237.61

0.00

8-Jul-04

203,308.33

0.00

7-Jul-04

338,055.09

0.00

8-Jul-04

188,523.65

0.00

8-Jul-04

185,475.87

0.00

8-Jul-04

153,334.61

0.00

1-Jul-04

105,445.21

0.00

1-Jul-04

89,175.80

0.00

1-Jul-04

58,572.13

0.00

1-Jul-04

3,993.57

0.00

8-Jul-04

169,423.61

0.00

8-Jul-04

169,423.61

0.00

8-Jul-04

135,538.89

0.00

1-Jul-04

48,204.38

0.00

1-Jul-04

49,998.06

0.00

8-Jul-04

49,933.53

0.00

8-Jul-04

36,128.21

0.00

1-Jul-04

29,310.28

0.00

1-Jul-04

21,693.11

0.00

8-Jul-04

27,039.37

0.00

1-Jul-04

17,691.82

0.00

1-Jul-04

17,527.96

0.00

1-Jul-04

15,334.30

0.00

1-Jul-04

12,353.32

0.00

2,619,722.33

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

0.00

187,000,000

741,694

5.24679%

8-Jan-14

MSC4HQ3A

Office

0.00

110,000,000

496,988

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

30,000,000

204,083

5.67000%

8-Jan-14

MSC4HQ3A

Retail

0.00

49,031,865

285,664

4.68000%

1-Jul-10

MSC4HQ3A

Office

0.00

59,750,000

240,793

6.60000%

7-Feb-14

MSC4HQ3A

Lodging

0.00

52,840,117

339,421

4.93000%

8-Jan-09

MSC4HQ3A

Office

0.00

44,679,732

189,678

5.64000%

5-Aug-12

MSC4HQ3A

Multifamily

0.00

40,000,000

194,267

4.20500%

8-Jan-08

MSC4HQ3B

Retail

0.00

37,100,003

186,436

4.93000%

8-Jan-09

MSC4HQ3A

Office

0.00

36,340,000

154,273

6.40000%

1-Feb-14

MSC4HQ3A

Retail

0.00

28,771,094

194,002

6.40000%

1-Feb-14

MSC4HQ3A

Retail

0.00

28,374,251

191,326

6.43000%

1-Jan-14

MSC4HQ3A

Other

0.00

26,755,278

181,127

5.61000%

1-Feb-14

MSC4HQ3A

Office

0.00

24,348,164

140,804

5.76000%

1-Jan-14

MSC4HQ3A

Industrial

0.00

21,750,000

107,880

6.10000%

5-Jan-14

MSC4HQ3A

Office

0.00

19,871,424

121,199

5.75000%

1-Nov-13

MSC4HQ3A

Office

0.00

17,832,000

88,293

6.09000%

1-Oct-13

MSC4HQ3A

Other

0.00

17,339,892

105,936

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

3,121,271

19,434

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,764,554

17,213

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,546,561

15,856

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,467,290

15,362

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,120,482

13,203

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,061,030

12,833

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,011,486

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

0.00

16,155,608

102,052

5.75000%

1-Nov-13

MSC4HQ3A

Office

0.00

16,072,000

79,579

5.90000%

1-Jan-14

MSC4HQ3A

Retail

0.00

14,998,634

89,564

5.96000%

1-Sep-13

MSC4HQ3A

Retail

0.00

14,051,324

84,771

5.89000%

1-Feb-14

MSC4HQ3A

Retail

0.00

14,000,000

71,007

5.95000%

1-Dec-13

MSC4HQ3A

Office

0.00

12,306,864

73,946

5.98000%

1-Jan-14

MSC4HQ3A

Retail

0.00

11,585,534

75,240

5.89000%

9-Dec-13

MSC4HQ3A

Retail

0.00

11,114,761

66,360

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

0.00

10,314,209

58,161

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

0.00

9,817,893

53,490

5.68000%

1-Dec-13

MSC4HQ3A

Retail

0.00

9,523,525

55,597

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

0.00

8,672,022

59,544

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

0.00

591,274

4,060

6.26000%

1-Dec-13

MSC4HQ3A

Industrial

0.00

8,936,913

55,473

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

25,000,000

170,069

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

25,000,000

170,069

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

20,000,000

136,056

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

0.00

8,880,000

43,701

6.60000%

1-Feb-14

MSC4HQ3A

Retail

0.00

8,704,402

74,837

5.48000%

1-Jun-13

MSC4HQ3A

Office

0.00

8,497,732

48,864

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

0.00

8,480,000

41,732

5.25000%

1-Oct-13

MSC4HQ3A

Mixed use

0.00

8,366,057

50,936

6.11000%

1-Nov-13

MSC4HQ3A

Retail

0.00

7,604,943

50,130

6.02000%

1-Jan-14

MSC4HQ3A

Mixed use

0.00

7,328,087

47,769

5.58000%

1-Oct-13

MSC4HQ3A

Retail

0.00

7,126,402

41,243

Page 14 of 25

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

0.00

7,000,000

35,684

5.90000%

1-Dec-13

MSC4HQ3A

Industrial

0.00

7,000,000

35,564

5.67000%

8-Jan-14

MSC4HQ3A

Retail

0.00

19,481,677

113,502

5.94000%

1-Jan-14

MSC4HQ3A

Retail

0.00

6,213,624

42,763

5.98000%

1-Dec-13

MSC4HQ3A

Office

0.00

6,153,739

37,092

6.08000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

5,956,212

36,282

4.91000%

1-Aug-13

MSC4HQ3A

Retail

0.00

5,915,027

31,880

6.00000%

1-Feb-14

MSC4HQ3A

Retail

0.00

5,751,077

37,369

5.45000%

8-Feb-14

MSC4HQ3A

Retail

0.00

5,464,783

31,056

5.23000%

9-Sep-13

MSC4HQ3A

Retail

0.00

5,138,448

31,279

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

0.00

5,070,263

28,591

5.84000%

1-Oct-13

MSC4HQ3A

Retail

0.00

5,070,514

30,172

5.85000%

1-Apr-13

MSC4HQ3A

Retail

0.00

4,983,689

29,869

6.65000%

1-Dec-13

MSC4HQ3A

Industrial

0.00

4,967,948

32,098

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

0.00

4,880,000

26,587

5.44000%

1-May-13

MSC4HQ3A

Office

0.00

4,700,000

22,017

5.66000%

1-Nov-13

MSC4HQ3A

Retail

0.00

4,657,211

27,160

6.51000%

1-Nov-13

MSC4HQ3A

Retail

0.00

4,341,906

27,682

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

0.00

4,254,860

23,993

5.80000%

1-Jul-13

MSC4HQ3A

Mixed use

0.00

3,455,609

20,536

5.95000%

1-Aug-13

MSC4HQ3A

Industrial

0.00

3,381,080

20,395

6.31000%

1-Mar-14

MSC4HQ3A

Retail

0.00

3,278,813

21,892

6.14000%

1-Dec-13

MSC4HQ3A

Retail

0.00

3,180,244

20,990

5.45000%

1-Jan-11

MSC4HQ3A

Retail

0.00

2,967,960

18,333

6.02000%

1-Nov-13

MSC4HQ3A

Retail

0.00

2,974,714

18,025

Page 15 of 25

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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

0.00

2,971,318

17,775

5.10000%

1-Sep-13

MSC4HQ3A

Office

0.00

2,962,393

16,288

6.18000%

1-Oct-13

MSC4HQ3A

Retail

0.00

2,854,173

17,602

5.06000%

1-Sep-13

MSC4HQ3A

Retail

0.00

2,764,614

15,134

6.22000%

9-Dec-13

MSC4HQ3A

Retail

0.00

2,671,211

17,761

6.00000%

1-Jan-14

MSC4HQ3A

Retail

0.00

2,574,648

16,752

6.20000%

1-Dec-13

MSC4HQ3A

Retail

0.00

2,531,882

15,618

5.55000%

1-Jul-13

MSC4HQ3A

Retail

0.00

2,451,104

15,427

6.19000%

1-Nov-13

MSC4HQ3A

Retail

0.00

2,296,198

14,164

6.02000%

1-Feb-14

MSC4HQ3A

Retail

0.00

2,286,909

13,819

6.17000%

1-Feb-14

MSC4HQ3A

Retail

0.00

2,271,133

16,704

6.15000%

1-Dec-13

MSC4HQ3A

Retail

0.00

2,275,178

15,031

5.70000%

1-Feb-14

MSC4HQ3A

Mixed use

0.00

2,081,397

13,148

6.03000%

1-Nov-13

MSC4HQ3A

Mixed use

0.00

2,082,338

12,631

5.88000%

1-Aug-13

MSC4HQ3A

Retail

0.00

2,075,734

12,429

6.15000%

1-Jul-13

MSC4HQ3A

Self storage

0.00

2,028,498

13,495

6.11000%

1-Dec-13

MSC4HQ3A

Retail

0.00

2,030,175

12,406

5.99000%

1-Jan-14

MSC4HQ3A

Industrial

0.00

1,953,730

12,700

1,321,406,709

7,144,233

Page 16 of 25

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.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

30-Jul-04

13-Sep-04

13-Jul-04

13-Aug-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

591,274

0.04

111

6.13

0.00

0 to

1,000,000

1,953,730

0.15

113

5.99

0.00

1,000,000 to

2,000,000

61,122,981

4.63

109

5.90

0.00

2,000,000 to

3,000,000

16,417,017

1.24

111

6.03

0.00

3,000,000 to

4,000,000

32,785,615

2.48

105

5.98

0.00

4,000,000 to

5,000,000

38,366,323

2.90

103

5.56

0.00

5,000,000 to

6,000,000

26,367,363

2.00

112

5.93

0.00

6,000,000 to

7,000,000

22,059,432

1.67

111

5.91

0.00

7,000,000 to

8,000,000

60,537,125

4.58

100

5.89

0.00

8,000,000 to

9,000,000

19,341,418

1.46

124

6.01

0.00

9,000,000 to 10,000,000

215,123,927

16.28

109

6.04

0.00

10,000,000 to 20,000,000

209,998,788

15.89

112

6.82

0.00

20,000,000 to 30,000,000

113,440,003

8.58

4.94

0.00

30,000,000 to 40,000,000

93,711,597

7.09

5.32

0.00

40,000,000 to 50,000,000

112,590,117

8.52

5.58

0.00

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

22.48

4.84

0.00

100,000,000 &

Above

187,000,000

591,274

1,321,406,709

100.00%

Average Schedule Balance
Maximum Schedule Balance
Minimum Schedule Balance

14,208,674

Current Mortgage

Interest Rate

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

37,100,003

2.81

4.21

0.00

4.000%

4.250%

0.00

4.251%

4.500%

246,750,000

18.67

4.62

0.00

4.501%

4.750%

86,934,759

6.58

4.93

0.00

4.751%

5.000%

129,231,511

9.78

112

5.24

0.00

5.001%

5.250%

41,269,806

3.12

5.41

0.00

5.251%

5.500%

226,120,953

17.11

107

5.67

0.00

5.501%

5.750%

175,484,554

13.28

112

5.91

0.00

5.751%

6.000%

96,846,508

7.33

112

6.10

0.00

6.001%

6.250%

110,814,243

8.39

116

6.38

0.00

6.251%

6.500%

70,854,372

5.36

114

6.60

0.00

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

7.57

109

7.90

0.00

7.501%

Above

1,321,406,709

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

137,759,067

10.43

4.79

0.00

1,168,949,749

88.46

102

5.77

0.00

120

14,697,893

1.11

135

6.33

0.00

121

180

0.00

181

240

0.00

241

& Above

135

1,321,406,709

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

30-Jul-04

13-Sep-04

13-Jul-04

13-Aug-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

1,321,406,709

100.00

5.68

0.00

0.000 0.249

0.00

0.250 0.499

0.00

0.500 0.749

0.00

0.750 0.999

0.00

1.000 1.249

0.00

1.250 1.499

0.00

1.500 1.749

0.00

1.750 1.999

0.00

2.000 2.249

0.00

2.250 2.499

0.00

2.500 2.749

0.00

2.750 2.999

0.00

3.000 3.249

0.00

3.250 & Above

1,321,406,709

100.00

5.68

0.00

Unknown

0.000
0.000

186

2,642,813,418

200.00%

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

7.57

109

7.90

0.00

1.126 1.250

113,487,037

8.59

105

5.82

0.00

1.251 1.375

188,169,111

14.24

112

6.02

0.00

1.376 1.500

123,565,296

9.35

110

5.94

0.00

1.501 1.625

181,059,454

13.70

109

5.86

0.00

1.626 1.750

75,929,275

5.75

113

6.30

0.00

1.751 1.875

17,339,892

1.31

110

6.09

0.00

1.876 2.000

98,376,909

7.44

4.80

0.00

2.001 2.125

81,779,735

6.19

4.60

0.00

2.126 2.250

341,700,000

25.86

4.94

0.00

2.251 & Above

3.230

1.220

1,321,406,709 100.00

Minimum DSCR

Maximum DSCR

Geographic

Location

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

Undefined

251,008,780

19.00

5.30

0.00

California

238,599,461

18.06

102

5.68

0.00

Maryland

200,611,519

15.18

4.69

0.00

Washington

107,000,000

8.10

109

7.77

0.00

Texas

82,143,105

6.22

111

5.70

0.00

Virginia

73,695,193

5.58

103

5.70

0.00

Florida

70,919,517

5.37

4.98

0.00

Pennsylvania

61,725,609

4.67

112

5.84

0.00

Georgia

45,027,672

3.41

113

6.39

0.00

Michigan

37,870,040

2.87

113

6.27

0.00

Arizona

29,679,085

2.25

5.71

0.00

Vermont

28,374,251

2.15

114

6.40

0.00

North Carolina

17,128,468

1.30

112

5.87

0.00

Missouri

11,585,534

0.88

113

5.98

0.00

Tennessee

11,526,195

0.87

111

6.14

0.00

Illinois

10,709,167

0.81

111

6.00

0.00

New Jersey

8,936,913

0.68

112

6.26

0.00

Nevada

8,880,000

0.67

5.72

0.00

Iowa

8,366,057

0.63

110

5.25

0.00

Colorado

4,880,000

0.37

135

6.33

0.00

Connecticut

4,341,906

0.33

111

6.51

0.00

Ohio

2,275,178

0.17

112

6.15

0.00

New York

2,081,397

0.16

114

5.70

0.00

Oregon

2,030,175

0.15

112

6.11

0.00

Kentucky

2,011,486

0.15

112

5.96

0.00

100.00

1,321,406,709

Morgan Stanley Capital I Inc.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

30-Jul-04

13-Sep-04

13-Jul-04

13-Aug-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

547,460,702

41.43

5.36

0.00

Office

363,514,048

27.51

5.24

0.00

Multifamily

140,000,000

10.59

105

7.25

0.00

Lodging

52,840,117

4.00

114

6.60

0.00

Mobile home park

51,697,224

3.91

5.75

0.00

Industrial

47,989,671

3.63

112

5.99

0.00

Other

44,095,171

3.34

112

6.30

0.00

Mixed use

39,469,096

2.99

112

5.69

0.00

Self storage

34,340,680

2.60

111

6.04

0.00

1,321,406,709

100.00%

Amortization Type

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

AmortizingBalloon

623,225,084

47.16

106

5.88

0.00

IO Maturity Balloon

312,719,732

23.67

4.83

0.00

IO/Amortizing/Balloon

385,461,893

29.17

104

6.03

0.00

1,321,406,709

100.00%

Number of Months

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

1,031,190,074

78.04

104

0.00

5.93

290,216,635

21.96

0.00

4.79

0.00

108

0.00

109

120

0.00

121

1,321,406,709

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

56,739,335

4.29

4.60

0.00

2008

81,019,732

6.13

4.93

0.00

2009

264,110,000

19.99

4.70

0.00

2010

2,967,960

0.22

5.45

0.00

2011

40,000,000

3.03

5.64

0.00

2012

375,999,539

28.45

110

6.40

0.00

2013

485,872,250

36.77

113

5.88

0.00

2014

14,697,893

1.11

135

6.33

0.00

2015 & Greater

100.00

1,321,406,709

Morgan Stanley Capital I Inc.

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

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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)

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

Page 22 of 25

Morgan Stanley Capital I Inc.

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

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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:

13-Aug-04
13-Aug-04

13-Jul-04

13-Sep-04

30-Jul-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.

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Filing Compare · MORGAN STANLEY DEAN WITTER CAP I INC CAPITAL I TR 2004-HQ3