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) December 13, 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.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 8 - Other Events

Item 8.01. Other Events.

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 December 13, 2004.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

99.1 Monthly distribution report pursuant to Section 5.4 of the Pooling and Servicing Agreement for the distribution on December 13, 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

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

Date: December 16, 2004

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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-04

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

Analyst:
Anty Huang 714.259.6269
anty.huang@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 13-17

Page 18-20

Specially Serviced (Part I) - Loan Detail

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

Appraisal Reduction Detail
Disclosure Statement

Page 21

Page 22
Page 23
Page 24

Page 25
Page 26

Page(s)

Information is available for this issue from the following sources

Issue Id:

Monthly Data File
Name:

MSC04HQ3

MSC04HQ3_200412_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 26

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:

5.676144%

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

949.498081504

7.231583963

0.000000000

942.266497541

2.452870016

Fixed

0.00

0.000000000

3.10000000%

0.000000000

61745MWY5

A-1

113,860,000.00

108,109,851.56

823,388.15

0.00

107,286,463.41

279,283.78

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

995.660207752

0.000000000

995.038774488

0.080404742

0.096254367%

0.00

0.000000000

0.09690624%

0.000000000

61745MXJ7/U6176PKT2

X-1

1,324,982,421.00

1,319,232,272.56

0.00

1,318,408,884.41

106,534.87

1000.000000000

0.000000000

1000.000000000

0.932435769

1.117974679%

0.00

0.000000000

1.11892292%

0.000000000

61745MXK4/U6176PKU9

X-2

1,258,818,000.00

0.00

1,258,818,000.00

1,173,766.93

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

4.000697380

4.800804217%

0.00

0.000000000

4.80083684%

0.000000000

61745MXH1

16,562,000.00

0.00

16,562,000.00

66,259.55

1000.000000000

0.000000000

1000.000000000

4.092363845

4.910804217%

0.00

0.000000000

4.91083684%

0.000000000

61745MXL2

16,562,000.00

0.00

16,562,000.00

67,777.73

1000.000000000

0.000000000

1000.000000000

4.175697775

5.010804217%

0.00

0.000000000

5.01083684%

0.000000000

61745MXM0/U6176PKV7

11,594,000.00

0.00

11,594,000.00

48,413.04

1000.000000000

0.000000000

1000.000000000

4.550697374

5.460804217%

0.00

0.000000000

5.46083684%

0.000000000

61745MXN8/U6176PKW5

23,187,000.00

0.00

23,187,000.00

105,517.02

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 26

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:

5.676144%

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

9ABSQ0552

R-III

0.00

Total P&I Payment

0.00

1,324,982,421.00

1,319,232,272.56

7,024,699.82

Total

1,318,408,884.41

823,388.15

0.00

6,201,311.67

Page 3 of 26

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:

5.676144%

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 26

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:

5.676144%

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

988.559341762

1.525329412

0.000000000

987.034012350

3.437879972

Fixed

0.00

0.000000000

4.17320000%

0.000000000

LR-IP

37,366,295.81

36,938,800.79

56,995.91

0.00

36,881,804.88

128,460.84

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

36,938,800.79

185,456.75

Total

36,881,804.88

56,995.91

0.00

128,460.84

Page 5 of 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

4,589,178.35

0.00
0.00

Less ASER Interest Adv Reduction

0.00

Less Other Adjustment

0.00

Total

6,231,688.46

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

6,203,290.52

)

(1,978.85

0.00
0.00
0.00

)

(1,978.85

756,498.38

66,889.77

823,388.15

0.00
0.00
0.00
0.00
0.00
0.00

823,388.15

7,026,678.67

7,024,699.82

1,319,232,272.66

823,388.15

0.00

0.00
0.00

0.00

1,318,408,884.51

52,491.18

627,226.44

66,889.77

1,642,510.11

66,889.77

1,642,510.11

28,397.94

0.00
0.00

8,438.94

36,836.88

0.00
0.00
0.00
0.00
0.00
0.00

0.00

)

(28,397.94

6,201,311.67

Interest Not Advanced (

Current Period

)

0.00

1,642,510.11

Workout Fees
Liquidation Fees

0.00
0.00

Less Non Recovered

)

(627,226.44

)

(52,491.18

0.00

Advance Summary (Advance Made by Servicer)

Page 6 of 26

Morgan Stanley Capital I Inc.

Class

Accrued

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

279,283.78

0.00

15.00%

15.07%

30/360

3.100000000%

0.00

A-2

1,079,156.25

0.00

15.00%

15.07%

30/360

4.050000000%

0.00

A-3

544,318.96

0.00

15.00%

15.07%

30/360

4.490000000%

0.00

A-4

2,188,600.00

0.00

15.00%

15.07%

30/360

4.800000000%

0.00

X-1

106,534.87

0.00

30/360

0.096906241%

0.00

X-2

1,173,766.93

0.00

30/360

1.118922919%

0.00

66,662.05

0.00

13.75%

13.82%

30/360

4.830000000%

0.00

67,352.13

0.00

12.50%

12.56%

30/360

4.880000000%

0.00

54,104.17

0.00

11.50%

11.56%

30/360

4.900000000%

0.00

81,487.50

0.00

10.00%

10.05%

30/360

4.920000000%

0.00

54,766.67

0.00

9.00%

9.04%

30/360

4.960000000%

0.00

66,259.55

0.00

7.75%

7.79%

30/360

4.800836839%

0.00

67,777.73

0.00

6.50%

6.53%

30/360

4.910836839%

0.00

48,413.04

0.00

5.63%

5.65%

30/360

5.010836839%

0.00

105,517.02

0.00

3.88%

3.89%

30/360

5.460836839%

0.00

28,040.31

0.00

3.38%

3.39%

30/360

5.079000000%

0.00

28,040.31

0.00

2.88%

2.89%

30/360

5.079000000%

0.00

28,040.31

0.00

2.38%

2.39%

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%

1.76%

30/360

5.079000000%

0.00

14,020.94

0.00

1.50%

1.51%

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

6,201,311.67

0.00

(2) Accrued - Deductions + Additions Interest

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

Page 7 of 26

(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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

Net Prepayment Int. Shortfalls Allocated to the Bonds

Other Interest Loss

Page 8 of 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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-Dec-04

0.00%

15-Nov-04

0.00%

13-Oct-04

0.00%

13-Sep-04

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 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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-Dec-04

104.49%

1,318,408,885

99.50%

0.00%

254

5.68%

5.64%

15-Nov-04

104.49%

1,319,232,273

99.57%

0.00%

255

5.87%

5.83%

13-Oct-04

104.49%

1,319,931,301

99.62%

0.00%

256

5.68%

5.64%

13-Sep-04

104.49%

1,320,721,572

99.68%

0.00%

257

5.87%

5.83%

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 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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-Nov-04

478,205.75

0.00

8-Nov-04

196,750.00

0.00

8-Nov-04

182,442.24

0.00

8-Nov-04

185,512.15

0.00

8-Nov-04

148,388.33

0.00

8-Nov-04

163,958.33

0.00

8-Nov-04

163,958.33

0.00

8-Nov-04

131,166.67

0.00

1-Nov-04

31,974.35

0.00

8-Nov-04

27,043.73

0.00

1,709,399.88

Total

Page 11 of 26

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 Advances and may include Servicer and Trust Advances.

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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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

717,768

5.24679%

8-Jan-14

MSC4HQ3A

Office

0.00

110,000,000

480,956

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

30,000,000

197,500

5.67000%

8-Jan-14

MSC4HQ3A

Retail

0.00

48,829,953

285,664

4.68000%

1-Jul-10

MSC4HQ3A

Office

0.00

59,750,000

233,025

6.60000%

7-Feb-14

MSC4HQ3A

Lodging

0.00

52,662,871

339,421

4.93000%

8-Jan-09

MSC4HQ3A

Office

0.00

44,679,732

183,559

31-Dec-03

5.64000%

5-Aug-12

MSC4HQ3A

Multifamily

2.64

40,000,000

188,000

31-Dec-03

4.20500%

8-Jan-08

MSC4HQ3B

Retail

2.68

36,881,805

186,436

4.93000%

8-Jan-09

MSC4HQ3A

Office

0.00

36,340,000

149,297

6.40000%

1-Feb-14

MSC4HQ3A

Retail

0.00

28,617,893

194,002

6.40000%

1-Feb-14

MSC4HQ3A

Retail

0.00

28,223,164

191,326

31-Dec-03

6.43000%

1-Jan-14

MSC4HQ3A

Other

1.90

26,612,656

181,127

5.61000%

1-Feb-14

MSC4HQ3A

Office

0.00

24,247,152

140,804

5.76000%

1-Jan-14

MSC4HQ3A

Industrial

0.00

21,750,000

104,400

6.10000%

5-Jan-14

MSC4HQ3A

Office

0.00

19,796,859

121,199

5.75000%

1-Nov-13

MSC4HQ3A

Office

0.00

17,832,000

85,445

6.09000%

1-Oct-13

MSC4HQ3A

Other

0.00

17,273,521

105,936

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

3,106,469

19,434

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,751,444

17,213

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,534,485

15,856

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,455,590

15,362

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,110,427

13,203

Page 13 of 26

* 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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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:

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,051,256

12,833

5.96000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

2,001,947

12,524

5.70000%

1-Feb-14

MSC4HQ3A

Mixed use

0.00

16,058,788

102,052

5.75000%

1-Nov-13

MSC4HQ3A

Office

0.00

16,072,000

77,012

5.90000%

1-Jan-14

MSC4HQ3A

Retail

0.00

14,939,845

89,564

31-Dec-03

5.96000%

1-Sep-13

MSC4HQ3A

Retail

0.38

13,995,638

84,771

5.89000%

1-Feb-14

MSC4HQ3A

Retail

0.00

14,000,000

68,717

5.95000%

1-Dec-13

MSC4HQ3A

Office

0.00

12,258,885

73,946

5.98000%

1-Jan-14

MSC4HQ3A

Retail

0.00

11,518,868

75,240

5.89000%

9-Dec-13

MSC4HQ3A

Retail

0.00

11,070,863

66,360

31-Dec-03

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

0.86

10,268,264

58,161

31-Dec-03

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

1.45

9,817,893

51,765

5.68000%

1-Dec-13

MSC4HQ3A

Retail

0.00

9,484,181

55,597

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

0.00

8,613,553

59,544

6.13000%

1-Nov-13

MSC4HQ3A

Self storage

0.00

587,287

4,060

6.26000%

1-Dec-13

MSC4HQ3A

Industrial

0.00

8,904,364

55,473

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

25,000,000

164,583

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

25,000,000

164,583

7.90000%

8-Sep-13

MSC4HQ3A

Multifamily

0.00

20,000,000

131,667

31-Dec-03

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

1.50

8,870,667

51,624

6.60000%

1-Feb-14

MSC4HQ3A

Retail

0.00

8,598,874

74,837

5.48000%

1-Jun-13

MSC4HQ3A

Office

0.00

8,459,834

48,864

31-Dec-03

5.71500%

1-Nov-10

MSC4HQ3A

Mobile home park

1.67

8,471,087

49,299

Page 14 of 26

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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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:

5.25000%

1-Oct-13

MSC4HQ3A

Mixed use

0.00

8,310,799

50,936

6.11000%

1-Nov-13

MSC4HQ3A

Retail

0.00

7,561,563

50,130

6.02000%

1-Jan-14

MSC4HQ3A

Mixed use

0.00

7,286,202

47,769

5.58000%

1-Oct-13

MSC4HQ3A

Retail

0.00

7,095,982

41,243

31-Dec-03

5.92000%

1-Nov-13

MSC4HQ3A

Retail

1.63

6,985,917

42,134

31-Dec-03

5.90000%

1-Dec-13

MSC4HQ3A

Industrial

0.14

7,000,000

34,417

5.67000%

8-Jan-14

MSC4HQ3A

Retail

0.00

19,401,451

113,502

5.94000%

1-Jan-14

MSC4HQ3A

Retail

0.00

6,167,311

42,763

5.98000%

1-Dec-13

MSC4HQ3A

Office

0.00

6,129,904

37,092

6.08000%

1-Dec-13

MSC4HQ3A

Self storage

0.00

5,933,640

36,282

31-Dec-03

4.91000%

1-Aug-13

MSC4HQ3A

Retail

1.62

5,885,751

31,880

6.00000%

1-Feb-14

MSC4HQ3A

Retail

0.00

5,718,294

37,369

5.45000%

8-Feb-14

MSC4HQ3A

Retail

0.00

5,441,333

31,056

5.23000%

9-Sep-13

MSC4HQ3A

Retail

0.00

5,104,183

31,279

31-Dec-03

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

1.45

5,047,676

28,591

5.84000%

1-Oct-13

MSC4HQ3A

Retail

0.00

5,050,029

30,172

5.85000%

1-Apr-13

MSC4HQ3A

Retail

0.00

4,962,867

29,869

6.65000%

1-Dec-13

MSC4HQ3A

Industrial

0.00

4,951,380

32,098

31-Dec-03

6.32700%

1-Nov-15

MSC4HQ3A

Mobile home park

1.38

4,880,000

25,730

5.44000%

1-May-13

MSC4HQ3A

Office

0.00

4,700,000

21,307

5.66000%

1-Nov-13

MSC4HQ3A

Retail

0.00

4,637,767

27,160

6.51000%

1-Nov-13

MSC4HQ3A

Retail

0.00

4,326,850

27,682

31-Dec-03

5.35000%

1-Nov-08

MSC4HQ3A

Mobile home park

1.16

4,235,906

23,993

Page 15 of 26

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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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:

5.80000%

1-Jul-13

MSC4HQ3A

Mixed use

0.00

3,441,284

20,536

5.95000%

1-Aug-13

MSC4HQ3A

Industrial

0.00

3,367,578

20,395

6.31000%

1-Mar-14

MSC4HQ3A

Retail

0.00

3,261,224

21,892

6.14000%

1-Dec-13

MSC4HQ3A

Retail

0.00

3,162,321

20,990

5.45000%

1-Jan-11

MSC4HQ3A

Retail

0.00

2,949,318

18,333

6.02000%

1-Nov-13

MSC4HQ3A

Retail

0.00

2,963,216

18,025

5.89000%

1-Oct-13

MSC4HQ3A

Retail

0.00

2,959,442

17,775

31-Dec-03

5.10000%

1-Sep-13

MSC4HQ3A

Office

0.55

2,948,350

16,288

6.18000%

1-Oct-13

MSC4HQ3A

Retail

0.00

2,843,461

17,602

5.06000%

1-Sep-13

MSC4HQ3A

Retail

0.00

2,751,403

15,134

6.22000%

9-Dec-13

MSC4HQ3A

Retail

0.00

2,656,359

17,761

6.00000%

1-Jan-14

MSC4HQ3A

Retail

0.00

2,559,883

16,752

6.20000%

1-Dec-13

MSC4HQ3A

Retail

0.00

2,522,538

15,618

5.55000%

1-Jul-13

MSC4HQ3A

Retail

0.00

2,435,389

15,427

6.19000%

1-Nov-13

MSC4HQ3A

Retail

0.00

2,287,647

14,164

6.02000%

1-Feb-14

MSC4HQ3A

Retail

0.00

2,278,224

13,819

31-Dec-03

6.17000%

1-Feb-14

MSC4HQ3A

Retail

1.84

2,251,655

16,704

31-Dec-03

6.15000%

1-Dec-13

MSC4HQ3A

Retail

1.24

2,262,377

15,031

5.70000%

1-Feb-14

MSC4HQ3A

Mixed use

0.00

2,068,924

13,148

6.03000%

1-Nov-13

MSC4HQ3A

Mixed use

0.00

2,074,307

12,631

5.88000%

1-Aug-13

MSC4HQ3A

Retail

0.00

2,067,320

12,429

6.15000%

1-Jul-13

MSC4HQ3A

Self storage

0.00

2,016,707

13,495

6.11000%

1-Dec-13

MSC4HQ3A

Retail

0.00

2,022,532

12,406

Page 16 of 26

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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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:

5.99000%

1-Jan-14

MSC4HQ3A

Industrial

0.00

1,942,506

12,700

1,318,408,885

7,063,516

Page 17 of 26

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-Nov-04

13-Jan-05

15-Nov-04

13-Dec-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 18 of 26

Current Scheduled

Balance

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

587,287

0.04

107

6.13

0.00

0 to

1,000,000

1,942,506

0.15

109

5.99

0.00

1,000,000 to

2,000,000

60,824,201

4.61

105

5.90

0.14

2,000,000 to

3,000,000

16,338,875

1.24

107

6.03

0.00

3,000,000 to

4,000,000

32,694,770

2.48

101

5.98

0.36

4,000,000 to

5,000,000

38,180,907

2.90

5.56

0.44

5,000,000 to

6,000,000

26,283,132

1.99

108

5.93

0.47

6,000,000 to

7,000,000

21,943,747

1.66

107

5.91

0.00

7,000,000 to

8,000,000

60,229,177

4.57

5.88

0.46

8,000,000 to

9,000,000

19,302,074

1.46

120

6.01

0.74

9,000,000 to 10,000,000

214,486,982

16.27

105

6.04

0.07

10,000,000 to 20,000,000

209,450,865

15.89

108

6.82

0.24

20,000,000 to 30,000,000

113,221,805

8.59

4.94

1.81

30,000,000 to 40,000,000

93,509,685

7.09

5.32

0.00

40,000,000 to 50,000,000

112,412,871

8.53

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

22.53

4.84

0.00

100,000,000 &

Above

187,000,000

587,287

1,318,408,885

100.00%

Average Schedule Balance
Maximum Schedule Balance
Minimum Schedule Balance

14,176,440

Current Mortgage

Interest Rate

# of

Loans

Scheduled

Balance

% of

Balance

Weighted Average

Term Coupon PFY DSCR

36,881,805

2.80

4.21

2.68

4.000%

4.250%

0.00

4.251%

4.500%

246,750,000

18.72

4.62

0.00

4.501%

4.750%

86,905,483

6.59

4.93

0.11

4.751%

5.000%

129,114,735

9.79

108

5.24

0.01

5.001%

5.250%

41,102,332

3.12

5.41

0.51

5.251%

5.500%

225,505,341

17.10

103

5.67

0.59

5.501%

5.750%

174,898,052

13.27

108

5.91

0.10

5.751%

6.000%

96,393,968

7.31

108

6.10

0.07

6.001%

6.250%

110,317,194

8.37

112

6.38

0.65

6.251%

6.500%

70,539,975

5.35

110

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

7.58

105

7.90

0.00

7.501%

Above

1,318,408,885

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

137,453,384

10.43

4.80

0.87

1,166,257,608

88.46

5.77

0.19

120

14,697,893

1.11

131

6.33

1.43

121

180

0.00

181

240

0.00

241

& Above

131

1,318,408,885

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-Nov-04

13-Jan-05

15-Nov-04

13-Dec-04

Record Date:

Next Payment:

Prior Payment:

Payment Date:

Statement Date:

Geographic Distribution

Distribution of DSCR (PFY)

Distribution of DSCR (Cutoff)

Page 19 of 26

Debt Service

Coverage Ratio

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

7,000,000

0.53

108

5.90

0.14

0.001 0.249

13,995,638

1.06

105

5.96

0.38

0.250 0.499

2,948,350

0.22

105

5.10

0.55

0.500 0.749

10,268,264

0.78

5.35

0.86

0.750 0.999

6,498,284

0.49

5.63

1.19

1.000 1.249

19,745,569

1.50

110

6.08

1.43

1.250 1.499

30,213,422

2.29

5.61

1.60

1.500 1.749

28,864,311

2.19

109

6.41

1.90

1.750 1.999

0.00

2.000 2.249

0.00

2.250 2.499

76,881,805

5.83

4.95

2.66

2.500 2.749

0.00

2.750 2.999

0.00

3.000 3.249

0.00

3.250 & Above

1,121,993,241

85.10

5.70

0.00

Unknown

2.680
0.140

1,318,408,885

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

7.58

105

7.90

0.00

1.126 1.250

112,981,270

8.57

101

5.82

0.12

1.251 1.375

187,234,746

14.20

108

6.02

0.20

1.376 1.500

123,110,163

9.34

106

5.94

0.11

1.501 1.625

180,556,483

13.70

105

5.86

0.43

1.626 1.750

75,622,939

5.74

109

6.30

0.18

1.751 1.875

17,273,521

1.31

106

6.09

0.00

1.876 2.000

98,368,224

7.46

4.80

0.00

2.001 2.125

81,561,537

6.19

4.60

1.21

2.126 2.250

341,700,000

25.92

4.94

0.31

2.251 & Above

3.230

1.220

1,318,408,885 100.00

Minimum DSCR

Maximum DSCR

Geographic

Location

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

Undefined

250,887,902

19.03

5.30

0.00

California

237,998,406

18.05

5.68

0.08

Maryland

200,537,473

15.21

4.69

0.00

Washington

107,000,000

8.12

105

7.77

0.01

Texas

81,794,187

6.20

107

5.70

0.00

Virginia

73,646,743

5.59

5.70

1.43

Florida

70,594,996

5.35

4.99

1.80

Pennsylvania

61,413,808

4.66

108

5.84

0.00

Georgia

44,734,055

3.39

109

6.39

0.00

Michigan

37,683,519

2.86

109

6.27

1.34

Arizona

29,570,766

2.24

5.71

1.19

Vermont

28,223,164

2.14

110

6.40

0.00

North Carolina

17,045,744

1.29

108

5.87

0.00

Missouri

11,518,868

0.87

109

5.98

0.00

Tennessee

11,457,014

0.87

107

6.14

0.00

Illinois

10,653,780

0.81

107

6.00

0.00

New Jersey

8,904,364

0.68

108

6.26

0.00

Nevada

8,870,667

0.67

5.72

1.50

Iowa

8,310,799

0.63

106

5.25

0.00

Colorado

4,880,000

0.37

131

6.33

1.38

Connecticut

4,326,850

0.33

107

6.51

0.00

Ohio

2,262,377

0.17

108

6.15

1.24

New York

2,068,924

0.16

110

5.70

0.00

Oregon

2,022,532

0.15

108

6.11

0.00

Kentucky

2,001,947

0.15

108

5.96

0.00

100.00

1,318,408,885

Morgan Stanley Capital I Inc.

Mortgage Loan Characteristics

ABN AMRO Acct: 721705.1

Series 2004-HQ3

Commercial Mortgage Pass-Through Certificates

30-Nov-04

13-Jan-05

15-Nov-04

13-Dec-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 20 of 26

Property Types

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

Retail

545,734,691

41.39

5.36

0.24

Office

363,214,716

27.55

5.24

0.00

Multifamily

140,000,000

10.62

101

7.25

0.75

Lodging

52,662,871

3.99

110

6.60

0.00

Mobile home park

51,591,494

3.91

5.75

1.35

Industrial

47,915,828

3.63

108

5.99

0.02

Other

43,886,176

3.33

108

6.30

1.15

Mixed use

39,240,303

2.98

108

5.69

0.00

Self storage

34,162,805

2.59

107

6.04

0.00

1,318,408,885

100.00%

Amortization Type

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

AmortizingBalloon

620,259,588

47.05

102

5.88

0.31

IO Maturity Balloon

312,719,732

23.72

4.83

0.34

IO/Amortizing/Balloon

385,429,564

29.23

100

6.03

0.16

1,318,408,885

100.00%

Number of Months

# of

Loans

Scheduled

Balance

% of

Balance

WAMM WAC PFY DSCR

908,452,836

68.91

100

0.13

5.95

369,956,048

28.06

0.37

5.00

40,000,000

3.03

2.64

5.64

0.00

108

0.00

109

120

0.00

121

1,318,408,885

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

56,433,652

4.28

4.60

2.12

2008

81,019,732

6.15

4.93

0.00

2009

264,091,754

20.03

4.70

0.10

2010

2,949,318

0.22

5.45

0.00

2011

40,000,000

3.03

5.64

2.64

2012

374,982,605

28.44

106

6.40

0.08

2013

484,233,930

36.73

109

5.88

0.11

2014

14,697,893

1.11

131

6.33

1.43

2015 & Greater

100.00

1,318,408,885

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 21 of 26

(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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 22 of 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 23 of 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 24 of 26

* 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-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 25 of 26

Morgan Stanley Capital I Inc.

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

13-Dec-04
13-Dec-04

15-Nov-04

13-Jan-05

30-Nov-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 26 of 26

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