0000909518-05-000106.txt : 20120629 0000909518-05-000106.hdr.sgml : 20120629 20050223111550 ACCESSION NUMBER: 0000909518-05-000106 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20050223 DATE AS OF CHANGE: 20050223 GROUP MEMBERS: BARRY S. BLATTMAN GROUP MEMBERS: BRASCAN REAL ESTATE FINANCE FUND I L.P. GROUP MEMBERS: BREF ONE, LLC GROUP MEMBERS: PARTNERS LIMITED SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CRIIMI MAE INC CENTRAL INDEX KEY: 0000847322 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 521622022 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-40622 FILM NUMBER: 05633224 BUSINESS ADDRESS: STREET 1: 11200 ROCKVILLE PIKE CITY: ROCKVILLE STATE: MD ZIP: 20852 BUSINESS PHONE: 3018162300 FORMER COMPANY: FORMER CONFORMED NAME: CRI INSURED MORTGAGE ASSOCIATION INC DATE OF NAME CHANGE: 19920703 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: BRASCAN CORP/ CENTRAL INDEX KEY: 0001001085 STANDARD INDUSTRIAL CLASSIFICATION: METAL MINING [1000] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: BCE PLACE 181 BAY ST STREET 2: STE 4400 PO BOX 762 CITY: TORONTO ONTARIO STATE: A6 BUSINESS PHONE: 4163639491 MAIL ADDRESS: STREET 1: HAYTHE & CURLEY STREET 2: 237 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: EDPERBRASCAN CORP DATE OF NAME CHANGE: 19970904 FORMER COMPANY: FORMER CONFORMED NAME: BRASCAN LTD DATE OF NAME CHANGE: 19950919 SC 13D/A 1 mv2-22_13da1.txt ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------- SCHEDULE 13D (RULE 13D-101) Under the Securities Exchange Act of 1934 (AMENDMENT NO. 1) -------------------- CRIIMI MAE Inc. -------------------------------------------------------------------------------- (Name of Issuer) Common Stock -------------------------------------------------------------------------------- (Title of Class of Securities) 950241109 -------------------------------------------------------------------------------- (CUSIP Number) Mr. Barry S. Blattman BREF One, LLC One Liberty Plaza New York, New York 10006 (212) 417-7276 with a copy to: Raymond O. Gietz, Esq. Weil, Gotshal & Manges LLP 767 Fifth Avenue New York, New York 10153 (212) 310-8000 -------------------------------------------------------------------------------- (Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications) February 22, 2005 -------------------------------------------------------------------------------- (Date of Event Which Requires Filing of This Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rules 13d-1(e), 13d-1(f) or 13d-1(g), check the following box [_]. NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent. (Continued on following pages) Page 1 of 12 Pages The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). ================================================================================
----------------------------------------------------------------- ------------------------------------------------- CUSIP No. 950241109 13D Page 2 of 12 Pages ----------------------------------------------------------------- ------------------------------------------------- ----------------- ---------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSONS: BREF One, LLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): ----------------- ---------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [x] ----------------- ---------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY ----------------- ---------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: N/A ----------------- ---------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware --------------------------- ------ ----------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 1,549,452 SHARES ------ ----------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ ----------------------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 1,549,452 REPORTING ------ ----------------------------------------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,549,452 ----------------- ---------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 10% ----------------- ---------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: OO ----------------- ---------------------------------------------------------------------------------------------------------------- 2 ----------------------------------------------------------------- ------------------------------------------------- CUSIP No. 950241109 13D Page 3 of 12 Pages ----------------------------------------------------------------- ------------------------------------------------- ----------------- ---------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Brascan Real Estate Finance Fund I L.P. I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): ----------------- ---------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [x] ----------------- ---------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY ----------------- ---------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: N/A ----------------- ---------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: Delaware --------------------------- ------ ----------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 0 SHARES ------ ----------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ ----------------------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 0 REPORTING ------ ----------------------------------------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 0% ----------------- ---------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: PN ----------------- ---------------------------------------------------------------------------------------------------------------- 3 ----------------------------------------------------------------- ------------------------------------------------- CUSIP No. 950241109 13D Page 4 of 12 Pages ----------------------------------------------------------------- ------------------------------------------------- ----------------- ---------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Brascan Corporation I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): ----------------- ---------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [x] ----------------- ---------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY ----------------- ---------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: N/A ----------------- ---------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: Ontario --------------------------- ------ ----------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 1,549,452 SHARES ------ ----------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ ----------------------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 1,549,452 REPORTING ------ ----------------------------------------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,549,452 ----------------- ---------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 10% ----------------- ---------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: CO ----------------- ---------------------------------------------------------------------------------------------------------------- 4 ----------------------------------------------------------------- ------------------------------------------------- CUSIP No. 950241109 13D Page 5 of 12 Pages ----------------------------------------------------------------- ------------------------------------------------- ----------------- ---------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Partners Limited (formerly known as EdperPartners Limited) I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): ----------------- ---------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [x] ----------------- ---------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY ----------------- ---------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: N/A ----------------- ---------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: Ontario --------------------------- ------ ----------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 1,549,452 SHARES ------ ----------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ ----------------------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 1,549,452 REPORTING ------ ----------------------------------------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,549,452 ----------------- ---------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 10% ----------------- ---------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: CO ----------------- ---------------------------------------------------------------------------------------------------------------- 5 ----------------------------------------------------------------- ------------------------------------------------- CUSIP No. 950241109 13D Page 6 of 12 Pages ----------------------------------------------------------------- ------------------------------------------------- ----------------- ---------------------------------------------------------------------------------------------------------------- 1 NAME OF REPORTING PERSON: Barry S. Blattman I.R.S. IDENTIFICATION NO. OF ABOVE PERSON (ENTITIES ONLY): ----------------- ---------------------------------------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [_] (b) [x] ----------------- ---------------------------------------------------------------------------------------------------------------- 3 SEC USE ONLY ----------------- ---------------------------------------------------------------------------------------------------------------- 4 SOURCE OF FUNDS: N/A ----------------- ---------------------------------------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e): [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION: United States --------------------------- ------ ----------------------------------------------------------------------------------------------- NUMBER OF 7 SOLE VOTING POWER: 1,549,452 SHARES ------ ----------------------------------------------------------------------------------------------- BENEFICIALLY 8 SHARED VOTING POWER: 0 OWNED BY ------ ----------------------------------------------------------------------------------------------- EACH 9 SOLE DISPOSITIVE POWER: 1,549,452 REPORTING ------ ----------------------------------------------------------------------------------------------- PERSON WITH 10 SHARED DISPOSITIVE POWER: 0 ----------------- ---------------------------------------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY REPORTING PERSON: 1,549,452 ----------------- ---------------------------------------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES: [_] ----------------- ---------------------------------------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11): 10% ----------------- ---------------------------------------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON: IN ----------------- ----------------------------------------------------------------------------------------------------------------
6 This Amendment No. 1 amends the Schedule 13D filed January 23, 2003 (the "Schedule 13D"), by Brascan Real Estate Finance Fund I L.P. ("BREF LP"), Brascan Corporation ("Brascan"), Partners Limited (formerly known as EdperPartners Limited) and Barry S. Blattman, with respect to the common stock, par value $0.01 per share (the "Common Stock"), of CRIIMI MAE Inc. (the "Company"). Capitalized terms used herein but not defined herein shall have the meanings attributed to them in the Schedule 13D. ITEM 2. IDENTITY AND BACKGROUND. Item 2 of the Schedule 13D is supplemented as follows: (a) BREF One, LLC ("BREF One"), a Delaware limited liability company, is added as a Reporting Person. BREF One is managed by BREF Partners, which is an indirect subsidiary of Brascan. Schedule I hereto sets forth a list of all the directors and executive officers, and their respective principal occupations and addresses, of BREF One. From and after the filing of this Amendment No. 1, BREF LP will no longer be a Reporting Person. (b) The principal business address of BREF One is One Liberty Plaza, 165 Broadway, New York, New York 10006. (c) The principal business of BREF One is to invest in real estate finance related transactions. (d)-(e) During the last five years, none of BREF One and, to BREF One's knowledge, the persons set forth on Schedule I hereto have been: (i) convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors); or (ii) a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which, he, she or it was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws or finding any violation with respect to such laws. (f) Set forth on Schedule I hereto is the citizenship of each of the directors and executive officers of BREF One. ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION. Item 3 of the Schedule 13D is supplemented as follows: On December 3, 2004, BREF LP transferred its shares of Common Stock and the Warrant to BREF One in exchange for approximately $14 million in cash (the "Transfer"). ITEM 4. PURPOSE OF TRANSACTION. Item 4 of the Schedule 13D is supplemented as follows: On February 22, 2005, in response to invitations sent by the Company to a number of potential interested parties, BREF Partners, an affiliate of the Reporting Persons, submitted a preliminary indication of interest (the 7 "Preliminary Indication of Interest") for the purchase of all the outstanding shares of the Common Stock not already owned by BREF Partners and its affiliates at a significant premium to the Company's adjusted book value as of December 31, 2004. The Preliminary Indication of Interest is non-binding and is only an expression of BREF Partners' current intention. The Preliminary Indication of Interest does not give rise to any obligation on the part of BREF Partners or any of the Reporting Persons to complete a transaction with the Company, and BREF Partners and the Reporting Persons expressly reserve their respective rights to not take any further actions with respect to the purchase of any or all of the outstanding shares of the Common Stock. It should also be noted that the intention of BREF Partners or any of the Reporting Persons with respect to the Common Stock is subject to change at any time. The Preliminary Indication of Interest is incorporated herein by reference to Exhibit 99.5 hereto. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER. Item 5 of the Schedule 13D is supplemented as follows: (a)-(b) The responses of the Reporting Persons to Rows (11) through (13) of the cover pages of this Amendment No. 1 are incorporated herein by reference. As of February 22, 2005, each of the Reporting Persons (other than BREF LP) may be deemed to be the beneficial owner of the Shares. BREF LP no longer beneficially owns any shares of the Common Stock. The Shares constitute approximately 10% of the issued and outstanding shares of the Common Stock (based upon the 15,540,597 shares of the Common Stock stated to be issued and outstanding by the Company in its latest Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 9, 2004). Each of the Reporting Persons (other than BREF LP) may be deemed to have the sole power to vote or direct the vote of the Shares or to dispose or direct the disposition of the Shares. BREF LP no longer has the power to vote or direct the vote of the Shares or to dispose or direct the disposition of the Shares. (c) None of the Reporting Persons and, to the Reporting Persons' knowledge, the Scheduled Persons and persons set forth on Schedule I hereto have effected any transaction in the Common Stock during the past 60 days. (e) On December 3, 2004, pursuant to the Transfer, BREF LP ceased to be the beneficial owner of more than five percent of the shares of the Common Stock. 8 ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER. In connection with BREF Partners' submission of the Preliminary Indication of Interest, BREF Partners and one of its affiliates entered into an agreement with the Company pursuant to which the Reporting Persons are prevented, subject to certain exceptions, from taking certain actions without the consent of the Company, including acquisitions of securities and assets of the Company and proposals regarding mergers and other extraordinary transactions, proxy contests and other matters involving the Company. This prohibition remains in effect until the earlier of December 17, 2006 and the time that the Company consummates or enters into an agreement that contemplates certain sale transactions. ITEM 7. MATERIALS TO BE FILED AS EXHIBITS. Exhibit 99.5 Preliminary Indication of Interest, dated February 22, 2005. 9 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: February 22, 2005 BREF ONE, LLC By: /s/ Theresa A. Hoyt -------------------------------------------- Name: Theresa A. Hoyt Title: Vice President BRASCAN REAL ESTATE FINANCE FUND I L.P. By: BREF GP LLC By: BRASCAN REAL ESTATE FINANCIAL PARTNERS LLC By: /s/ Theresa A. Hoyt -------------------------------------------- Name: Theresa A. Hoyt Title: Vice President BRASCAN CORPORATION By: /s/ Joseph Freedman -------------------------------------------- Name: Joseph Freedman Title: Senior Vice President PARTNERS LIMITED By: /s/ Brian Lawson -------------------------------------------- Name: Brian Lawson Title: President BARRY S. BLATTMAN /s/ Barry Blattman ------------------------------------------------ 10 SCHEDULE I ---------- BREF ONE Andrea Balkan Citizenship: United States Business Address: One Liberty Plaza, 165 Broadway, New York, NY 10006 Present Principal Occupation or Employment: Partner Employer: Brascan Real Estate Financial Partners LLC Employer's Business: Real estate opportunity fund Employer's Address: Same as Business Address Barry S. Blattman Citizenship: United States Business Address: One Liberty Plaza, 165 Broadway, New York, NY 10006 Present Principal Occupation or Employment: Managing Partner Employer: Brascan Real Estate Financial Partners LLC Employer's Business: Real estate opportunity fund Employer's Address: Same as Business Address Richard B. Clark Citizenship: United States Business Address: One Liberty Plaza, 165 Broadway, New York, NY 10006 Present Principal Occupation or Employment: President & Chief Executive Officer Employer: Brookfield Properties Corporation Employer's Business: Commercial real estate development and management Employer's Address: Same as Business Address J. Bruce Flatt Citizenship: Canada Business Address: BCE Place, 181 Bay Street, Suite 300, Toronto, Ontario M5J 2T3 Present Principal Occupation or Employment: President & Chief Financial Officer Employer: Brascan Corporation Employer's Business: Real estate, power generation and financial services Employer's Address: Same as Business Address William Powell Citizenship: United States Business Address: One Liberty Plaza, 165 Broadway, New York, NY 10006 Present Principal Occupation or Employment: Partner Employer: Brascan Real Estate Financial Partners LLC Employer's Business: Real estate opportunity fund Employer's Address: Same as Business Address Bruce K. Robertson Citizenship: Canada Business Address: BCE Place, 181 Bay Street, Suite 300, Toronto, Ontario M5J 2T3 Present Principal Occupation or Employment: President & Chief Executive Officer Employer: Brascan Asset Management Employer's Business: Asset management Employer's Address: Same as Business Address
11 EXHIBIT INDEX ------------- Exhibit No. Description ----------- ----------- Exhibit 99.5 Preliminary Indication of Interest, dated February 22, 2005. 12 EX-99 2 mv2-22ex99_5.txt Exhibit 99.5 [Letterhead of Brascan Real Estate Financial Partners] February 22, 2005 V. James Voorheis Citigroup Global Markets Inc. 388 Greenwich Street, 35th Floor New York, NY 10013 Dear Mr. Voorheis: As you know, Brascan Real Estate Financial Partners and its affiliates (collectively "BREF") has interests in approximately 10% of the common shares of CRIIMI MAE Inc. ("CRIIMI MAE" or the "Company") and holds approximately $31.3 million of the Company's subordinated debt. Barry Blattman, BREF's Managing Partner, serves as CRIIMI MAE's Chairman and CEO and has led the Company's management team for the past two years. Our involvement in the recapitalization and management of the Company has created significant value for existing shareholders. Since BREF first publicly expressed interest in CRIIMI MAE in November 2002, the Company's share price has increased by more than 100%. However, given the Company's size, developments in the capital markets and the current competitive landscape of the real estate finance industry, BREF has concluded that the best method to realize incremental value from CRIIMI MAE's assets is through an alternative ownership structure. The infrastructure, costs and reporting requirements of a public company are burdens that impede the Company's progress in its current form. As CRIIMI MAE's largest shareholder, BREF fully supports the Board of Directors' decision to explore strategic alternatives for the Company. To that end, we believe that BREF is the ideal acquiror of the Company given our long-standing investment and involvement in the Company's management and strategic direction. The Company's assets and special servicing capabilities offer a natural complement to BREF's existing commercial real estate finance activities. Based upon our understanding of the Company's priorities, a BREF offer provides several important advantages: 1. Consummate the Transaction Expeditiously -- BREF offers an unmatched degree of certainty for the execution of a successful transaction. Due to BREF's long-standing relationship with the Company, we are thoroughly familiar with the Company and its assets, including the various tax and structural complexities associated with the 1996 and 1998 collateralized bond obligations and the NOL. BREF requires only limited confirmatory due diligence to facilitate a rapid closing. 2. Least Disruptive to the Company -- BREF does not require any significant management resources from the Company to complete our due diligence. 3. No Financing Contingency -- BREF manages a $600 million private investment fund and is not dependant on outside financing to complete this acquisition. With these advantages in mind, BREF is pleased to submit this letter as an "Indication of Interest" to acquire 100% of the currently outstanding common shares of CRIIMI MAE. Our preliminary proposal is based upon the following terms: 1. Consideration -- BREF is contemplating an all-cash acquisition of 100% of the outstanding common shares of the Company at a significant premium to the Company's Adjusted Book Value as of December 31, 2004. 2. Financing -- The offer is not dependant on any third party financing. 3. Due Diligence -- BREF has reviewed the Company's public filings as well as certain information made available pursuant to our confidentiality agreement. Due to our extensive knowledge of the complexities of the Company, our only significant remaining due diligence item is the confirmation of property level loss exposure projections. With the full cooperation of the Company and its Advisors, BREF expects to complete this process within two weeks of the beginning of confirmatory due diligence. 4. Timing -- Upon completion of the due diligence period BREF expects to move expeditiously to enter into a definitive agreement. Due to CRIIMI MAE's significant interest rate exposure, BREF will work with the Company to effectively facilitate an accelerated closing schedule. 5. Non-Binding Indication -- This letter is a non-binding indication of interest and a formal binding offer will be made only after the completion of due diligence and the preparation of definitive documentation. For all of the reasons outlined in this letter, we believe that a BREF-sponsored buyout is the Company's most appealing strategic alternative and will achieve the highest possible value. We are able to effectively execute a transaction on an accelerated timeframe and offer a higher likelihood of closing than any other 2 bidder. We look forward to working with you and the Company's Board of Directors to achieve a successful transaction and we will gladly make ourselves available if you wish to discuss any aspects of our proposal. Very truly yours, /s/ William Powell William Powell Partner Brascan Real Estate Financial Partners, LLC One Liberty Plaza 6th Floor New York, NY 10006 3