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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-K**

**[X]      ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT      OF      1934**

**[        ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND      EXCHANGE ACT OF 1934**

|      New                  York                                                           |   |  30-612733630-038058430-038058530-038058630-038058730-0380588                       |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|
| (State                  or other jurisdiction ofincorporation                  or organization of issuing entity) |   | (I.R.S.                  Employer Identification                  No. of issuing entity) |

|   | o                Yes |   | x No |
|--------|----------------------|--------|-----------|

|   | o                Yes |   | x                No |
|--------|----------------------|--------|---------------------|

|   | x                Yes |   | o                No |
|--------|----------------------|--------|---------------------|

| Large                accelerated filer o | Accelerated                filer o |  Non-accelerated                filer x |
|------------------------------------------|------------------------------------|----------------------------------------------|

**DOCUMENTS      INCORPORATED BY REFERENCE**

**PART        I**

**Item        1. Business.**

**Item        1A. Risk Factors.**

**Item        1B. Unresolved Staff Comments.**

**Item        2. Properties.**

**Item        3. Legal Proceedings. **

**Item        4. Submission of Matters to a Vote of Security Holders.**

**PART        II**

**Item        5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer        Purchases of Equity Securities.**

**Item        6. Selected Financial Data.**

**Item        7. Management’s Discussion and Analysis of Financial Condition and Results of        Operation.**

**Item        7A. Quantitative and Qualitative Disclosures About Market        Risk.**

**Item        8. Financial Statements and Supplementary Data.**

**Item        9. Changes in and Disagreements With Accountants on Accounting and Financial        Disclosure.**

**Item        9A. Controls and Procedures.**

**Item        9B. Other Information.**

**PART        III**

**Item        10. Directors and Executive Officers and Corporate        Governance.**

**Item        11. Executive Compensation.**

**Item        12. Security Ownership of Certain Beneficial Owners and Management and Related        Stockholder Matters.**

**Item        13. Certain Relationships and Related Transactions, and Director Independence.        **

**Item        14. Principal Accounting Fees and Services.**

**ADDITIONAL        DISCLOSURE ITEMS FOR REGULATION AB**

**Item        1112(b) of Regulation AB, Significant Obligor Financial        Information.**

**Item        1114(b)(2) and 1115(b) of Regulation AB, Significant Enhancement Provider        Financial Information.**

**Item        1117 of Regulation AB, Legal Proceedings**

**Item        1119 of Regulation AB, Affiliations and Certain Relationships and Related        Transactions. **

**Item        1122 of Regulation AB, Compliance with Applicable Servicing        Criteria.**

**Item        1123 of Regulation AB, Servicer Compliance Statement.**

**PART        IV**

**Item        15. Exhibits, Financial Statement Schedules.**

| **Exhibit                      Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-----------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1                                     | Pooling                      and Servicing Agreement, dated as of August 1, 2006, by and                      between                      Company, the Master Servicer, the Special Servicer, the Trustee                      and the                      Paying Agent. (Filed as part of the Registrant’s Current Report on Form                      8-K filed on September 1, 2006 and which are incorporated by                      reference.) |
| 10.1                                    | Primary                      Servicing Agreement, dated as of August 1, 2006, by and between                      the Master                      Servicer and Principal Global Investors, LLC. (Filed as part                      of the                      Registrant’s Current Report on Form 8-K filed on September 1, 2006 and                      which are incorporated by reference.)                                                       |
| 10.2                                    | Mortgage                      Loan Purchase Agreement, dated as of August 8, 2006, by and                      between the                      Company and LaSalle Bank National Association. (Filed as part                      of the                      Registrant’s Current Report on Form 8-K filed on September 1, 2006 and                      which are incorporated by reference.)                                                        |
| 10.3                                    | Mortgage                      Loan Purchase Agreement, dated as of August 8, 2006, by and                      between the                      Company and Principal Commercial Funding II, LLC. (Filed as                      part of the                      Registrant’s Current Report on Form 8-K filed on September 1, 2006 and                      which are incorporated by reference.)                                                     |
| 10.4                                    | Mortgage                      Loan Purchase Agreement, dated as of August 8, 2006, by and                      between the                      Company and Morgan Stanley Mortgage Capital Inc. (Filed as                      part of the                      Registrant’s Current Report on Form 8-K filed on September 1, 2006 and                      which are incorporated by reference.)                                                      |
| 10.5                                    | Underwriting                      Agreement, dated as of August 8, 2006, by and among the Company,                      Morgan                      Stanley & Co. Incorporated, LaSalle Financial Services, Inc. Greenwich                      Capital Markets, Inc. and Merrill Lynch, Pierce, Fenner & Smith                      Incorporated.                                                                                                    |
| 31                                      | Rule                      13a-14(d)/15d-14(d) Certifications                                                                                                                                                                                                                                                                                                                                                                                                  |
| 33(a)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, Wells Fargo Bank, National Association, as Master                      Servicer                                                                                                                                                                                                                                             |
| 33(b)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, J.E. Robert Company, Inc., as Special                      Servicer                                                                                                                                                                                                                                                         |
| 33(c)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, LaSalle Bank National Association, as Paying Agent,                      Certificate Registrar, Authenticating Agent, and                      Custodian                                                                                                                                                               |
| 33(d)                                   | Report                      on assessment of compliance with servicing criteria for asset-backed                      securities, Principal Global Investors, LLC, as servicing function                      participant                                                                                                                                                                                                                                     |
| 34(a)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, Wells Fargo Bank, National Association,                      as Master                      Servicer                                                                                                                                                                                       |
| 34(b)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, J.E. Robert Company, Inc., as Special                      Servicer                                                                                                                                                                                                                        |
| 34(c)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, LaSalle Bank National Association,                      as Paying                      Agent, Certificate Registrar, Authenticating Agent, and                      Custodian                                                                                                         |
| 34(d)                                   | Attestation                      report on assessment of compliance with servicing criteria                      for                      asset-backed securities, Principal Global Investors, LLC, as                      servicing                      function participant                                                                                                                                                                               |
| 35(a)                                   | Servicer                      compliance statement, Wells Fargo Bank, National Association,                      as Master                      Servicer                                                                                                                                                                                                                                                                                                      |
| 35(b)                                   | Servicer                      compliance statement,  J.E. Robert Company, Inc., as Special                      Servicer                                                                                                                                                                                                                                                                                                                                 |
| 35(c)                                   | Servicer                      compliance statement,  LaSalle Bank National Association, as Paying                      Agent, Certificate Registrar, and Authenticating Agent                                                                                                                                                                                                                                                                            |
| 35(d)                                   | Servicer                      compliance statement, Principal Global Investors, LLC, as servicing                      function participant                                                                                                                                                                                                                                                                                                                   |

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**SIGNATURES**

|                                | MORGAN                STANLEY CAPITAL I INC. |
|-------------------------------------|----------------------------------------------|
|                                |                                         |
|  March                30, 2007 | /s/                Warren H. Friend     |
|                                | By: Warren                H. Friend     |
|                                | Title: Vice                President    |

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**EXHIBIT      INDEX **

| **Exhibit                                      Number** | **Description**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1                                                     | Pooling                                      and Servicing Agreement, dated as of August                                      1, 2006, by and between                                      Company, the Master Servicer, the Special Servicer,                                      the Trustee and the                                      Paying Agent. (Filed as part of the Registrant’s Current Report on Form                                      8-K filed on September 1, 2006 and which are                                      incorporated by                                      reference.) |
| 10.1                                                    | Primary                                      Servicing Agreement, dated as of August 1,                                      2006, by and between the Master                                      Servicer and Principal Global Investors, LLC.                                      (Filed as part of the                                      Registrant’s Current Report on Form 8-K filed on September                                      1, 2006 and                                      which are incorporated by reference.)                                                                       |
| 10.2                                                    | Mortgage                                      Loan Purchase Agreement, dated as of August                                      8, 2006, by and between the                                      Company and LaSalle Bank National Association.                                      (Filed as part of the                                      Registrant’s Current Report on Form 8-K filed on September                                      1, 2006 and                                      which are incorporated by reference.)                                                                        |
| 10.3                                                    | Mortgage                                      Loan Purchase Agreement, dated as of August                                      8, 2006, by and between the                                      Company and Principal Commercial Funding II,                                      LLC. (Filed as part of the                                      Registrant’s Current Report on Form 8-K filed on September                                      1, 2006 and                                      which are incorporated by reference.)                                                                     |
| 10.4                                                    | Mortgage                                      Loan Purchase Agreement, dated as of August                                      8, 2006, by and between the                                      Company and Morgan Stanley Mortgage Capital                                      Inc. (Filed as part of the                                      Registrant’s Current Report on Form 8-K filed on September                                      1, 2006 and                                      which are incorporated by reference.)                                                                      |
| 10.5                                                    | Underwriting                                      Agreement, dated as of August 8, 2006, by and                                      among the Company, Morgan                                      Stanley & Co. Incorporated, LaSalle Financial Services,                                      Inc. Greenwich                                      Capital Markets, Inc. and Merrill Lynch, Pierce,                                      Fenner & Smith                                      Incorporated.                                                                                               |
| 31                                                      | Rule                                      13a-14(d)/15d-14(d) Certifications                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 33(a)                                                   | Report                                      on assessment of compliance with servicing                                      criteria for asset-backed                                      securities, Wells Fargo Bank, National Association,                                      as Master                                      Servicer                                                                                                                                                                                                                                                                        |
| 33(b)                                                   | Report                                      on assessment of compliance with servicing                                      criteria for asset-backed                                      securities, J.E. Robert Company, Inc., as Special                                      Servicer                                                                                                                                                                                                                                                                                                                         |
| 33(c)                                                   | Report                                      on assessment of compliance with servicing                                      criteria for asset-backed                                      securities, LaSalle Bank National Association,                                      as Paying Agent,                                      Certificate Registrar, Authenticating Agent,                                      and                                      Custodian                                                                                                                                     |
| 33(d)                                                   | Report                                      on assessment of compliance with servicing                                      criteria for asset-backed                                      securities, Principal Global Investors, LLC,                                      as servicing function                                      participant                                                                                                                                                                                                                                                                |
| 34(a)                                                   | Attestation                                      report on assessment of compliance with servicing                                      criteria for                                      asset-backed securities, Wells Fargo Bank,                                      National Association, as Master                                      Servicer                                                                                                                                                                                                                                                            |
| 34(b)                                                   | Attestation                                      report on assessment of compliance with servicing                                      criteria for                                      asset-backed securities, J.E. Robert Company,                                      Inc., as Special                                      Servicer                                                                                                                                                                                                                                                                        |
| 34(c)                                                   | Attestation                                      report on assessment of compliance with servicing                                      criteria for                                      asset-backed securities, LaSalle Bank National                                      Association, as Paying                                      Agent, Certificate Registrar, Authenticating                                      Agent, and                                      Custodian                                                                                                                         |
| 34(d)                                                   | Attestation                                      report on assessment of compliance with servicing                                      criteria for                                      asset-backed securities, Principal Global Investors,                                      LLC, as servicing                                      function participant                                                                                                                                                                                                                                                    |
| 35(a)                                                   | Servicer                                      compliance statement, Wells Fargo Bank, National                                      Association, as Master                                      Servicer                                                                                                                                                                                                                                                                                                                                                                                                           |
| 35(b)                                                   | Servicer                                      compliance statement,  J.E. Robert Company, Inc., as Special                                      Servicer                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 35(c)                                                   | Servicer                                      compliance statement,  LaSalle Bank National Association, as Paying                                      Agent, Certificate Registrar, and Authenticating                                      Agent                                                                                                                                                                                                                                                                                                                                                            |
| 35(d)                                                   | Servicer                                      compliance statement, Principal Global Investors,                                      LLC, as servicing                                      function                                      participant                                                                                                                                                                                                                                                                                                                                                              |

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