Perhaps you are taking that quote out of context here. I believe the topic of that quote is related to missing mass, not mass distribution.
I agree, CAESAR II will give a lower first mode for the coarse model. It may have less mass but the stiffness used in the coarse model is, effectively, much lower as well. You can estimate the coarse model first mode (in radians/second) by SQRT(K/M) where M=(total mass)/2 and K=3EI/L^3 with L=total length.
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Dave Diehl