Banc of America Merrill Lynch Commercial Mortgage
Filed: 22 Feb 06, 12:00am
STRUCTURAL AND COLLATERAL INFORMATION $1,708,895,000 (APPROXIMATE OFFERED CERTIFICATES) $2,044,703,849 (APPROXIMATE TOTAL COLLATERAL BALANCE) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 OFFERED CLASSES A-1, A-2, A-3, A-4, A-1A, A-M, A-J, XP, B, C AND D CERTIFICATES BANK OF AMERICA, NATIONAL ASSOCIATION SPONSOR AND MORTGAGE LOAN SELLER BARCLAYS CAPITAL REAL ESTATE INC. SPONSOR AND MORTGAGE LOAN SELLER SUNTRUST BANK MORTGAGE LOAN SELLER BANK OF AMERICA, NATIONAL ASSOCIATION MASTER SERVICER MIDLAND LOAN SERVICES, INC. SPECIAL SERVICER FEBRUARY 2006 THE ISSUER HAS FILED A REGISTRATION STATEMENT (INCLUDING A PROSPECTUS) WITH THE SEC FOR THE OFFERING TO WHICH THIS COMMUNICATION RELATES. BEFORE YOU INVEST, YOU SHOULD READ THE PROSPECTUS IN THAT REGISTRATION STATEMENT AND OTHER DOCUMENTS THE ISSUER HAS FILED WITH THE SEC FOR MORE COMPLETE INFORMATION ABOUT THE ISSUER AND THIS OFFERING. YOU MAY GET THESE DOCUMENTS FOR FREE BY VISITING EDGAR ON THE SEC WEB SITE AT WWW.SEC.GOV. ALTERNATIVELY, THE ISSUER, ANY UNDERWRITER OR ANY DEALER PARTICIPATING IN THE OFFERING WILL ARRANGE TO SEND YOU THE PROSPECTUS IF YOU REQUEST IT BY CALLING TOLL-FREE 1-800-294-1322 OR YOU E-MAIL A REQUEST TO DG.PROSPECTUS_DISTRIBUTION@BOFASECURITIES.COM. THE SECURITIES MAY NOT BE SUITABLE FOR ALL INVESTORS. BANC OF AMERICA SECURITIES LLC AND THE OTHER UNDERWRITERS AND THEIR AFFILIATES MAY ACQUIRE, HOLD OR SELL POSITIONS IN THESE SECURITIES, OR IN RELATED DERIVATIVES, AND MAY HAVE AN INVESTMENT OR COMMERCIAL BANKING RELATIONSHIP WITH THE ISSUER. SEE "IMPORTANT NOTICE REGARDING THE OFFERED CERTIFICATES" IN THIS FREE WRITING PROSPECTUS. BANC OF AMERICA SECURITIES LLC BARCLAYS CAPITAL ---------- SUNTRUST ROBINSON HUMPHREY CREDIT SUISSE GOLDMAN, SACHS & CO. BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- IMPORTANT NOTICE REGARDING THE OFFERED CERTIFICATES - -------------------------------------------------------------------------------- THE ASSET-BACKED SECURITIES REFERRED TO IN THESE MATERIALS, AND THE ASSET POOLS BACKING THEM, ARE SUBJECT TO MODIFICATION OR REVISION (INCLUDING THE POSSIBILITY THAT ONE OR MORE CLASSES OF SECURITIES MAY BE SPLIT, COMBINED OR ELIMINATED AT ANY TIME PRIOR TO ISSUANCE OR AVAILABILITY OF A FINAL PROSPECTUS) AND ARE OFFERED ON A "WHEN, AS AND IF ISSUED" BASIS. YOU UNDERSTAND THAT, WHEN YOU ARE CONSIDERING THE PURCHASE OF THESE SECURITIES, A CONTRACT OF SALE WILL COME INTO BEING NO SOONER THAN THE DATE ON WHICH THE RELEVANT CLASS HAS BEEN PRICED AND WE HAVE CONFIRMED THE ALLOCATION OF SECURITIES TO BE MADE TO YOU; ANY "INDICATIONS OF INTEREST" EXPRESSED BY YOU, AND ANY "SOFT CIRCLES" GENERATED BY US, WILL NOT CREATE BINDING CONTRACTUAL OBLIGATIONS FOR YOU OR US. BECAUSE THE ASSET-BACKED SECURITIES ARE BEING OFFERED ON A "WHEN, AS AND IF ISSUED" BASIS, ANY SUCH CONTRACT WILL TERMINATE, BY ITS TERMS, WITHOUT ANY FURTHER OBLIGATION OR LIABILITY BETWEEN US, IF THE SECURITIES THEMSELVES, OR THE PARTICULAR CLASS TO WHICH THE CONTRACT RELATES, ARE NOT ISSUED. BECAUSE THE ASSET-BACKED SECURITIES ARE SUBJECT TO MODIFICATION OR REVISION, ANY SUCH CONTRACT ALSO IS CONDITIONED UPON THE UNDERSTANDING THAT NO MATERIAL CHANGE WILL OCCUR WITH RESPECT TO THE RELEVANT CLASS OF SECURITIES PRIOR TO THE CLOSING DATE. IF A MATERIAL CHANGE DOES OCCUR WITH RESPECT TO SUCH CLASS, OUR CONTRACT WILL TERMINATE, BY ITS TERMS, WITHOUT ANY FURTHER OBLIGATION OR LIABILITY BETWEEN US (THE "AUTOMATIC TERMINATION"). IF AN AUTOMATIC TERMINATION OCCURS, WE WILL PROVIDE YOU WITH REVISED OFFERING MATERIALS REFLECTING THE MATERIAL CHANGE AND GIVE YOU AN OPPORTUNITY TO PURCHASE SUCH CLASS. TO INDICATE YOUR INTEREST IN PURCHASING THE CLASS, YOU MUST COMMUNICATE TO US YOUR DESIRE TO DO SO WITHIN SUCH TIMEFRAME AS MAY BE DESIGNATED IN CONNECTION WITH YOUR RECEIPT OF THE REVISED OFFERING MATERIALS. ---------- The information contained in these materials may be based on assumptions regarding market conditions and other matters as reflected herein. Banc of America Securities LLC, Barclays Capital Inc., SunTrust Capital Markets, Inc., Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. (each an "Underwriter" and, collectively, the "Underwriters") make no representation regarding the reasonableness of such assumptions or the likelihood that any such assumptions will coincide with actual market conditions or events, and these materials should not be relied upon for such purposes. The Underwriters and their respective affiliates, officers, directors, partners and employees, including persons involved in the preparation or issuance of these materials, may, from time to time, have long or short positions in, and buy and sell, the securities mentioned herein or derivatives thereof (including options). Information in these materials is current as of the date appearing on the material only. This free writing prospectus is not required to contain all information that is required to be included in the base prospectus and the prospectus supplement. The information in this free writing prospectus is preliminary and subject to change. Information in these materials regarding any securities discussed herein supersedes all prior information regarding such securities. These materials are not to be construed as an offer to sell or the solicitation of any offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their respective affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. ---------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- ---------- IRS CIRCULAR 230 NOTICE THIS FREE WRITING PROSPECTUS IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING U.S. FEDERAL, STATE OR LOCAL TAX PENALTIES. THIS FREE WRITING PROSPECTUS IS WRITTEN AND PROVIDED BY THE UNDERWRITERS IN CONNECTION WITH THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED HEREIN. INVESTORS SHOULD SEEK ADVICE BASED ON THEIR PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR. ---------- The file number of the registration statement to which this free writing prospectus relates is 333-127779. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. TABLE OF CONTENTS Transaction Structure Structure Overview ..................................................... 3 Structure Schematic .................................................... 4 Transaction Terms ...................................................... 5 Contact Information .................................................... 9 Mortgage Pool Characteristics as of the Cut-off Date General Characteristics ................................................ 10 Property Type .......................................................... 11 Property Location ...................................................... 12 Mortgage Pool Characteristics .......................................... 13 Prepayment Provisions Based on Outstanding Principal Balance ........... 16 Ten Largest Mortgage Loans KinderCare Portfolio ................................................... 18 Desert Passage ......................................................... 24 Waterfront at Port Chester ............................................. 31 Fairmont Sonoma Mission Inn & Spa ...................................... 38 Torre Mayor ............................................................ 44 Medical Mutual Headquarters ............................................ 53 Frandor Shopping Center ................................................ 59 Metro Plaza at Jersey City ............................................. 65 Plaza Antonio .......................................................... 71 Main Event Portfolio ................................................... 78 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURE OVERVIEW - -------------------------------------------------------------------------------- OFFERED CERTIFICATES APPROX. EXPECTED CERTIFICATE % OF ASSUMED RATINGS BALANCE OR INITIAL APPROX. WEIGHTED PRINCIPAL FINAL -------------- NOTIONAL POOL CREDIT AVERAGE WINDOW DISTRIBUTION RATE CLASS MOODY'S/S&P(1) AMOUNT(2) BALANCE SUPPORT LIFE (YRS)(3) (MOS)(3) DATE(3) TYPE - ------- -------------- ------------ ------- ------- ------------- --------- ----------------- ---------------- A-1(4) Aaa / AAA $ 81,500,000 3.986% 30.000% 3.00 1-56 November 10, 2010 Fixed(5) A-2(4) Aaa / AAA $ 84,400,000 4.128% 30.000% 4.85 56-59 February 10, 2011 Fixed(5) A-3(4) Aaa / AAA $155,100,000 7.585% 30.000% 6.78 81-82 January 10, 2013 Fixed(5) A-4(4) Aaa / AAA $621,000,000 30.371% 30.000% 9.64 112-117 December 10, 2015 Fixed(5) A-1A(4) Aaa / AAA $355,399,000 17.381% 30.000% 8.69 1 -118 January 10, 2016 Fixed(5) A-M Aaa / AAA $204,470,000 10.000% 20.000% 9.82 118-118 January 10, 2016 Fixed(5) A-J Aaa / AAA $143,129,000 7.000% 13.000% 9.83 118-119 February 10, 2016 Fixed(5) XP Aaa / AAA TBD(6) N/A N/A (6) N/A N/A Variable Rate(6) B Aa1 / AA+ $ 20,447,000 1.000% 12.000% 9.91 119-119 February 10, 2016 Fixed(5) C Aa2 / AA $ 23,003,000 1.125% 10.875% 9.91 119-119 February 10, 2016 Fixed(5) D Aa3 / AA- $ 20,447,000 1.000% 9.875% 9.91 119-119 February 10, 2016 Fixed(5) NON-OFFERED CERTIFICATES(7) APPROX. EXPECTED CERTIFICATE % OF ASSUMED RATINGS BALANCE OR INITIAL APPROX. WEIGHTED PRINCIPAL FINAL -------------- NOTIONAL POOL CREDIT AVERAGE WINDOW DISTRIBUTION RATE CLASS MOODY'S/S&P(1) AMOUNT(2) BALANCE SUPPORT LIFE (YRS)(3) (MOS)(3) DATE(3) TYPE - --------- -------------- ------------------ ------- ------- ------------- --------- ------------------ ----------------- A-SBFL(4) Aaa / AAA(8) $ 133,894,000(9) 6.548% 30.000% 7.28 59 - 112 July 10, 2015 Floating(10) E A2 / A $ 35,782,000 1.750% 8.125% 9.91 119 - 119 February 10, 2016 Fixed(5) F A3 / A- $ 20,447,000 1.000% 7.125% 9.91 119 - 119 February 10, 2016 Fixed(5) G Baa1 / BBB+ $ 25,559,000 1.250% 5.875% 9.91 119 - 120 March 10, 2016 Fixed(5) H Baa2 / BBB $ 23,003,000 1.125% 4.750% 9.99 120 - 120 March 10, 2016 Fixed(5) J Baa3 / BBB- $ 28,115,000 1.375% 3.375% 10.29 120 - 135 June 10, 2017 Fixed(5) K Ba1 / BB+ $ 7,667,000 0.375% 3.000% 11.28 135 - 136 July 10, 2017 Fixed(5) L Ba2 / BB $ 10,224,000 0.500% 2.500% 11.41 136 - 138 September 10, 2017 Fixed(5) M Ba3 / BB- $ 7,667,000 0.375% 2.125% 11.49 138 - 138 September 10, 2017 Fixed(5) N B1 / B+ $ 2,556,000 0.125% 2.000% 11.50 138 - 140 November 10, 2017 Fixed(5) O B2 / B $ 5,112,000 0.250% 1.750% 12.57 140 - 153 December 10, 2018 Fixed(5) P B3 / B- $ 7,668,000 0.375% 1.375% 14.42 153 - 178 January 10, 2021 Fixed(5) Q NR / NR $ 28,114,849 1.375% 0.000% 14.82 178 - 179 February 10, 2021 Fixed(5) XC Aaa / AAA $2,044,703,849(11) N/A N/A (11) N/A N/A Variable Rate(11) (1) Ratings shown are those of Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., respectively. (2) As of the delivery date. Subject to a variance of plus or minus 5%. (3) Based on the maturity assumptions (as defined under "Yield and Maturity Considerations" in the prospectus supplement). As of the delivery date, calculations for the certificates assumed no prepayments will be made on the mortgage loans prior to their related maturity dates (or, in the case of the mortgage loans with anticipated repayment dates, the related anticipated repayment date). (4) For purposes of making distributions to the Class A-1, A-2, A-3, A-4 and A-1A Certificates and the Class A-SBFL regular interest, the pool of Mortgage Loans will be deemed to consist of two distinct loan groups, Loan Group 1 and Loan Group 2. Loan Group 1 will consist of 146 Mortgage Loans, representing approximately 82.6% of the aggregate principal balance of the pool of Mortgage Loans as of the Cut-off Date. Loan Group 2 will consist of 47 Mortgage Loans, representing approximately 17.4% of the aggregate principal balance of the pool of Mortgage Loans as of the Cut-off Date. Loan Group 2 will include approximately 99.2% of the aggregate principal balance of all the Mortgage Loans secured by multifamily properties and approximately 58.9% of the aggregate principal balance of all the Mortgage Loans secured by manufactured housing properties. So long as funds are sufficient on any distribution date to make distributions of all interest on such distribution date to the Class A-1, A-2, A-3, A-4, A-1A, XC and XP Certificates and the Class A-SBFL regular interest, interest distributions on Class A-1, A-2, A-3, A-4, XC and XP Certificates and the Class A-SBFL regular interest will be based on amounts available relating to Mortgage Loans in Loan Group 1 and interest distribution on the Class A-1A Certificates will be based on amounts available relating to Mortgage Loans in Loan Group 2. In addition, generally, the Class A-1, A-2, A-3 and A-4 Certificates and the Class A-SBFL regular interest will only be entitled to receive distributions of principal collected or advanced in respect of Mortgage Loans in Loan Group 1 until the Certificate Balance of the Class A-1A Certificates has been reduced to zero, and the Class A-1A Certificates will only be entitled to receive distributions of principal collected or advanced in respect of Mortgage Loans in Loan Group 2 until the Certificate Balance of the Class A-1, A-2, A-3, and A-4 Certificates and the principal balance Class A-SBFL regular interest have been reduced to zero. However, on and after any distribution date on which the Certificate Balances of the Class A-M through Class Q Certificates have been reduced to zero, distributions of principal collected or advanced in respect of the pool of Mortgage Loans will be distributed to the Class A-1, A-2, A-3, A-4 and A-1A Certificates and the Class A-SBFL regular interest pro rata without regard to loan group. (5) The Class A-1, A-2, A-3, A-4, A-1A, A-M, A-J, B, C, D, E, F, G, H, J, K, L, M, N, O, P and Q Certificates will each accrue interest at either (i) a fixed rate, (ii) a fixed rate subject to a cap at the weighted average net mortgage rate, (iii) the weighted average net mortgage rate or (iv) the weighted average net mortgage rate less a specified percentage. (6) The Class XP Certificates will not have certificate balances and their holders will not receive distributions of principal, but such holders are entitled to receive payments of the aggregate interest accrued on the notional amount of the Class XP Certificates, as the case may be, as described in the prospectus supplement. The interest rates applicable to the Class XP Certificates for each distribution date will be as described in the prospectus supplement. See "Description of the Certificates--Pass-Through Rates" in the prospectus supplement. (7) Not offered by the prospectus supplement. Any information we provide herein regarding the terms of these certificates is provided only to enhance your understanding of the offered certificates. (8) Ratings shown for the Class A-SBFL Certificates only reflect the receipt of a fixed rate of interest equal to [__]% per annum. See "Ratings" in the prospectus supplement. (9) The certificate balance of the Class A-SBFL Certificates will be equal to the balance of the Class A-SBFL regular interest. (10) The Class A-SBFL regular interest will accrue interest at either (i) a fixed rate or (ii) a fixed rate subject to a cap at the weighted average net mortgage rate. The pass-through rate applicable to the Class A-SBFL Certificates on each distribution date will be a per annum rate equal to LIBOR plus [__]%. In addition, under certain circumstances described in the prospectus supplement, these pass-through rates applicable to the Class A-SBFL Certificates may convert so as to accrue interest at either (i) a fixed rate or (ii) a fixed rate subject to a cap at the weighted average net mortgage rate. The initial LIBOR will be determined on March [__], 2006, and subsequent LIBOR rates will determined two LIBOR business days before the start of the related interest accrual period. (11) The Class XC Certificates are not offered by the prospectus supplement. Any information we provide herein regarding the terms of these certificates is provided only to enhance your understanding of the offered certificates. The Class XC Certificates will not have certificate balances and their holders will not receive distributions of principal, but such holders are entitled to receive payments of the aggregate interest accrued on the notional amount of the Class XC Certificates, as the case may be, as described in the prospectus supplement. The interest rates applicable to the Class XC Certificates for each distribution date will be as described in the prospectus supplement. See "Description of the Certificates--Pass-Through Rates" in the prospectus supplement. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 3 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURE SCHEMATIC* - -------------------------------------------------------------------------------- Class XC(1), XP Class A-1 Aaa/AAA $ 81.5MM 3.986% Class A-2 Aaa/AAA $ 84.4MM 4.128% Class A-3 Aaa/AAA $155.1MM 7.585% Class A-SBFL Aaa/AAA $133.8MM Regular Interest(1) 6.548% Class A-4 Aaa/AAA $621.0MM 30.371% Class A-1A Aaa/AAA $355.3MM 17.381% Class A-M Aaa/AAA $204.4MM 10.000% Class A-J Aaa/AAA $143.1MM 7.000% Class B Aa1/AA+ $ 20.4MM 1.000% Class C Aa2/AA $ 23.0MM 1.125% Class D Aa3/AA- $ 20.4MM 1.000% Class E (1) A2/A $ 35.7MM 1.750% Class F (1) A3/A- $ 20.4MM 1.000% Class G (1) Baa1/BBB+ $ 25.5MM 1.250% Class H (1) Baa2/BBB $ 23.0MM 1.125% Class J (1) Baa3/BBB- $ 28.1MM 1.375% Class K (1) Ba1/BB+ $ 7.6MM 0.375% Class L (1) Ba2/BB $ 10.2MM 0.500% Class M (1) Ba3/BB- $ 7.6MM 0.375% Class N (1) B1/B+ $ 2.5MM 0.125% Class O (1) B2/B $ 5.1MM 0.250% Class P (1) B3/B- $ 7.6MM 0.375% Class Q (1) NR/NR $ 28.1MM 1.375% - ---------- * Classes are not drawn to scale. Percentages are approximate percentages of the Initial Pool Balance as of the Cut-off Date. Class principal amounts are truncated. (1) Offered privately pursuant to Rule 144A. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 4 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- TRANSACTION TERMS - -------------------------------------------------------------------------------- NOTE: CAPITALIZED TERMS USED BUT NOT OTHERWISE DEFINED HEREIN HAVE THE MEANINGS ASCRIBED TO THEM IN THE PROSPECTUS SUPPLEMENT DATED FEBRUARY __ 2006. ISSUE TYPE REMIC. Class A-1, A-2, A-3, A-4, A-1A, A-M, A-J, XP, B, C and D Certificates (collectively, the "Offered Certificates") are offered publicly. CUT-OFF DATE All Mortgage Loan characteristics are based on balances as of the Cut-off Date, which is March 1, 2006. All percentages presented herein are approximate. MORTGAGE POOL The Mortgage Pool consists of 193 Mortgage Loans (the "Mortgage Loans") with an aggregate balance as of the Cut-off Date of $2,044,703,849 (the "Initial Pool Balance"). For purposes of making distributions to the Class A-1, A-2, A-3, A-4 and A-1A Certificates and the Class A-SBFL regular interest, the Mortgage Pool will be deemed to consist of two distinct loan groups, Loan Group 1 and Loan Group 2. Loan Group 1 will consist of 146 Mortgage Loans, representing approximately 82.6% of the Initial Pool Balance as of the Cut-off Date. Loan Group 2 will consist of 47 Mortgage Loans, representing approximately 17.4% of the Initial Pool Balance as of the Cut-off Date. The Mortgage Loans are secured by 927 properties (the "Mortgaged Properties") located throughout 39 states, Mexico and the Cayman Islands. DEPOSITOR Banc of America Commercial Mortgage Inc. ISSUING ENTITY Banc of America Commercial Mortgage Trust 2006-1. SPONSORS Bank of America, National Association ("Bank of America") and Barclays Capital Real Estate Inc. ("Barclays"). MORTGAGE LOAN SELLERS Bank of America, Barclays and SunTrust Bank ("SunTrust"). UNDERWRITERS Banc of America Securities LLC and Barclays Capital Inc. are acting as co-lead managers. Banc of America Securities LLC is acting as sole bookrunner. Banc of America Securities LLC is acting as sole bookrunner with respect to all classes of Offered Certificates. SunTrust Robinson Humphrey Capital Markets, Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. are acting as co-managers. TRUSTEE Wells Fargo Bank, N.A. CO-TRUSTEE HSBC Financial Services (Cayman) Limited will act solely as collateral trustee with respect to the Mortgaged Property located in the Cayman Islands securing Loan No. 20051383 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 1.5% of the Initial Pool Balance (1.8% of the Group 1 Balance). MASTER SERVICER Bank of America, National Association, for all of the Mortgage Loans except with respect to (i) the KinderCare Portfolio Pari Passu Note A-2 Mortgage Loan (identified as Loan No. 59414 on Annex A to the prospectus supplement), which will be serviced by Bank of America, National Association pursuant to the terms of the Pooling and Servicing Agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-6 and (ii) the Torre Mayor Pari Passu Note A-2 Mortgage Loan (identified as Loan No. 20051519 on Annex A to the prospectus supplement), which will be serviced by Bank of America, National Association pursuant to the terms of the Pooling and Servicing Agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-5. See "The Servicers--The Master Servicer" in the prospectus supplement. SPECIAL SERVICER Midland Loan Services, Inc., for all of the Mortgage Loans except with respect to (i) the KinderCare Portfolio Pari Passu Note A-2 Mortgage Loan (identified as Loan No. 59414 on The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 5 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- Annex A to the prospectus supplement), which will be serviced by LNR Partners, Inc. pursuant to the terms of the Pooling and Servicing Agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-6 and (ii) the Torre Mayor Pari Passu Note A-2 Mortgage Loan (identified as Loan No. 20051519 on Annex A to the prospectus supplement), which will be specially serviced by Midland Loan Services, Inc. pursuant to the terms of the Pooling and Servicing Agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-5. See "The Servicers--The Special Servicer" in this prospectus supplement. RATING AGENCIES Moody's Investors Service, Inc. ("Moody's") and Standard and Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. ("S&P"). DENOMINATIONS $10,000 minimum for the Class A-1, A-2, A-3, A-4, A-1A, A-M and A-J Certificates, $1,000,000 minimum (notional) for the Class XP Certificates and $100,000 minimum for the Class B, C and D Certificates. SETTLEMENT DATE On or about March __, 2006. SETTLEMENT TERMS Book-entry through DTC for all Offered Certificates. DISTRIBUTION DATE The 10th day of each month, or if such 10th day is not a Business Day, the next succeeding Business Day. The first Distribution Date with respect to the Offered Certificates will occur in April 2006. DETERMINATION DATE For any Distribution Date, the earlier of (i) the sixth day of the month in which the related Distribution Date occurs, or if such sixth day is not a Business Day, then the immediately preceding Business Day, and (ii) the fourth Business Day prior to the related Distribution Date. INTEREST DISTRIBUTIONS Each Class of Offered Certificates will be entitled on each Distribution Date to interest accrued at its Pass-Through Rate for such Distribution Date on the outstanding Certificate Balance of such Class during the prior calendar month. Interest will be distributed on each Distribution Date in sequential order of class designations with the Class A-1, A-2, A-3, A-4, A-1A, XC and XP Certificates and the Class A-SBFL regular interest ranking pari passu in entitlement to interest. PRINCIPAL DISTRIBUTIONS Principal will be distributed on each Distribution Date to the Class of Sequential Pay Certificates outstanding with the earliest sequential Class designation until its Certificate Balance is reduced to zero (except that the Class A-SBFL regular interest is entitled to certain priority on each Distribution Date with respect to being paid down to its planned principal balance as described in the prospectus supplement). Generally, the Class A-1, A-2, A-3 and A-4 Certificates and the Class A-SBFL regular interest will only be entitled to receive distributions of principal collected or advanced in respect of Mortgage Loans in Loan Group 1 until the Certificate Balance of the Class A-1A Certificates has been reduced to zero and the Class A-1A Certificates will only be entitled to receive distributions of principal collected or advanced in respect of Mortgage Loans in Loan Group 2 until the Certificate Balance of the Class A-1, A-2, A-3, A-4 or A-1A Certificates and the principal balance of the Class A-SBFL regular interest has been reduced to zero. If, due to losses, the Certificate Balances of the Class A-M through Class Q Certificates are reduced to zero, distributions of principal collected or advanced in respect of the pool or Mortgage Loans will be distributed to the Class A-1, A-2, A-3, A-4 and A-1A Certificates and the Class A-SBFL regular interest pro rata without regard to loan groups. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 6 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- LOSSES To be applied first to the Class Q Certificates, then to the next most subordinate Class of Sequential Pay Certificates until the Certificate Balance of each such succeeding Class of Sequential Pay Certificates is reduced to zero, and following the reduction of the Certificate Balance of the Class A-M Certificates to zero, pro rata to the Class A-1, A-2, A-3, A-4 and A-1A Certificates and the Class A-SBFL regular interest. However, with respect to (i) the KinderCare Portfolio Whole Loan (as to which only the related Note A-2 is included in the trust fund), losses will be applied first to the subordinate components of Note A-1 and then, following the reduction of the subordinate components of Note A-1 to zero, pro rata among the senior component of Note A-1, the related Note A-2 and the related Note A-3 (ii) the Torre Mayor Whole Loan (as to which only the related note A-2 is included in the trust), losses will be applied first to the related note C (if any), second to the related note B and then pro rata to the related Note A-1 and Note A-2. Losses allocable to the pro rata portion of the losses allocable to the KinderCare Portfolio note A-2 and the Torre Mayor note A-2 will be applied to the classes of Sequential Pay Certificates as described above. PREPAYMENT PREMIUMS The manner in which any prepayment premiums received during a particular Collection Period will be allocated to one or more of the classes of Offered Certificates is described in the "Description of the Certificates--Distributions--Distributions of Prepayment Premiums" in the prospectus supplement. ADVANCES Subject to certain limitations, including, but not limited to, a recoverability determination, the Master Servicer will be required to advance certain principal and interest payments and other expenses. In the event that the Master Servicer fails to make such advances, the Trustee may be required to do so. APPRAISAL REDUCTIONS Promptly following the occurrence of: (1) any Mortgage Loan or Serviced Whole Loan becoming a Modified Mortgage Loan; (2) any Monthly Payment with respect to any Mortgage Loan or Serviced Whole Loan remaining unpaid for 60 days past the Due Date for such payment; provided, however, solely in the case of a delinquent Balloon Payment with respect to any Mortgage Loan, if (x) the related borrower is actively seeking a refinancing commitment, (y) the related borrower continues to make payments in the amount of its Monthly Payment, and (z) the Directing Certificateholder consents, failure to pay such Balloon Payment during such 60-day period shall not constitute an Appraisal Trigger Event if the related borrower has delivered to the Master Servicer, on or before the 60th day after the due date of such Balloon Payment, a refinancing commitment reasonably acceptable to the Master Servicer, for such longer period, not to exceed 120 days beyond such due date, during which the refinancing would occur; (3) the passage of 60 days after the Special Servicer receives notice that the mortgagor under such Mortgage Loan or Serviced Whole Loan becomes the subject of bankruptcy, insolvency or similar proceedings, which remain undischarged and undismissed; (4) the passage of 60 days after the Special Servicer receives notice that a receiver or similar official is appointed with respect to the related Mortgaged Property; (5) the related Mortgaged Property becoming an REO Property; or (6) the passage of 60 days after the third extension of a Mortgage Loan or a Serviced Whole Loan. OPTIONAL TERMINATION The Master Servicer, the Special Servicer and certain Certificateholders will have the option to terminate the Trust, in whole but not in part, and purchase the remaining assets of the Trust on or after the Distribution Date on which the Stated Principal Balance of the Mortgage Loans then outstanding is less than 1% of the Initial Pool Balance. Such purchase price will generally be at a price equal to the unpaid aggregate principal balance of the Mortgage Loans (or fair market value in the case of REO Properties), plus accrued and unpaid interest and certain other additional trust fund expenses. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 7 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- CONTROLLING CLASS The most subordinate Class of Sequential Pay Certificates with an outstanding Certificate Balance at least equal to 25% of its initial Certificate Balance or, if no such Class satisfies such criteria, the Class of Sequential Pay Certificates with the then largest outstanding Class Balance. ERISA The Offered Certificates are expected to be ERISA eligible. SMMEA The Offered Certificates are not expected to be "mortgage-related securities" for the purposes of SMMEA. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 8 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- CONTACT INFORMATION - -------------------------------------------------------------------------------- BANC OF AMERICA SECURITIES LLC Bill Hale (704) 388-1597 (Phone) (704) 388-9677 (Fax) bill.e.hale@bankofamerica.com Geordie Walker (704) 388-1597 (Phone) (704) 388-9677 (Fax) geordie.r.walker@bankofamerica.com Chuck Mather (704) 388-1597 (Phone) (704) 388-9677 (Fax) charles.mather@bankofamerica.com Chris Springer (704) 388-1597 (Phone) (704) 388-9677 (Fax) chris.springer@bankofamerica.com BARCLAYS CAPITAL INC. Haejin Baek (212) 412-1863 (Phone) (212) 412-7489 (Fax) haejin.baek@barcap.com Brian Dixon (212) 412-2663 (Phone) (212) 412-7305 (Fax) brian.dixon@barcap.com Craig Leonard (212) 412-2663 (Phone) (212) 412-7305 (Fax) craig.leonard@barcap.com Sang Yu (212) 412-3685 (Phone) (212) 412-1678 (Fax) sang.yu@barcap.com SUNTRUST ROBINSON HUMPHREY CAPITAL MARKETS Roberto Lumpris (404) 532-0715 (Phone) (404) 813-0000 (Fax) roberto.lumpris@suntrust.com Robert McComis (404) 588-8201 (Phone) (404) 813-8100 (Fax) robert.mccomis@suntrust.com Paula Wiser (404) 588-8137 (Phone) (404) 813-8100 (Fax) paula.wiser@suntrust.com CREDIT SUISSE FIRST BOSTON LLC Barry Polen (212) 325-3295 (Phone) (212) 325-8104 (Fax) barry.polen@credit-suisse.com Andrew Winer (212) 325-3295 (Phone) (212) 325-8104 (Fax) andrew.winer@credit-suisse.com GOLDMAN, SACHS & CO. Emily Brooks (212) 902-7294 (Phone) (212) 346-3594 (Fax) emily.brooks@gs.com Scott Wisenbaker (212) 902-2858 (Phone) (212) 346-3594 (Fax) scott.wisenbaker@gs.com The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 9 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- GENERAL CHARACTERISTICS MORTGAGE POOL LOAN GROUP 1 LOAN GROUP 2 --------------- --------------- --------------- Number of Mortgage Loans .................................................... 193 146 47 Number of Mortgaged Properties .............................................. 927 879 48 Aggregate Balance of all Mortgage Loans(1) .................................. $ 2,044,703,849 $ 1,689,303,912 $ 355,399,937 Number of Balloon Payment Mortgage Loans(2) ................................. 185 138 46 Aggregate Balance of Balloon Payment Mortgage Loans(2) ...................... $ 1,912,672,558 $ 1,557,272,622 $ 340,399,937 Number of Anticipated Repayment Date Mortgage Loans(3) ...................... 5 4 1 Aggregate Balance of Anticipated Repayment Date Mortgage Loans(3) ........... $ 79,400,000 $ 64,400,000 $ 15,000,000 Number of Interest Only Mortgage Loans(3) ................................... 6 6 0 Aggregate Balance of Interest Only Mortgage Loans(3) ........................ $ 120,043,000 $ 120,043,000 $ 0 Number of Fully Amortizing Mortgage Loans(4) ................................ 2 2 0 Aggregate Balance of Fully Amortizing Mortgage Loans(4) ..................... $ 11,988,291 $ 11,988,291 $ 0 Maximum Balance ............................................................. $ 149,625,000 $ 149,625,000 $ 24,100,000 Minimum Balance ............................................................. $ 1,021,832 $ 1,021,832 $ 1,100,328 Average Balance ............................................................. $ 10,594,320 $ 11,570,575 $ 7,561,701 Number of Cross-Collateralized and Cross-Defaulted Loan Pools. .............. 1 1 0 Maximum Balance for a Group of Cross-Collateralized and Cross-Defaulted ..... $ 25,395,000 $ 25,395,000 $ 0 Weighted Average Cut-off Date LTV Ratio ..................................... 67.5% 66.2% 73.6% Maximum Cut-off Date LTV Ratio .............................................. 80.0% 80.0% 80.0% Minimum Cut-off Date LTV Ratio. ............................................. 22.4% 23.9% 22.4% Weighted Average DSCR(4) .................................................... 1.49x 1.53x 1.20x Maximum DSCR(4) ............................................................. 3.27x 3.21x 3.27x Minimum DSCR(4) ............................................................. 1.06x 1.06x 1.29x Weighted Average LTV at Maturity or Anticipated Repayment Date(5) ........... 60.0% 58.8% 66.1% Range of Mortgage Loan Interest Rates. ...................................... 4.923% - 7.546% 5.131% - 7.546% 4.923% - 6.000% Weighted Average Mortgage Loan Interest Rate ................................ 5.626% 5.650% 5.512% Range of Remaining Term to Maturity or Anticipated Repayment Date (months) .. 56 - 179 56 - 179 57 - 120 Weighted Average Remaining Term to Maturity or Anticipated Repayment Date ... 112 112 109 - ---------- (1) Subject to a permitted variance of plus or minus 5%. (2) Excludes Mortgage Loans (including anticipated repayment date mortgage loans) that are Interest Only until maturity or until the anticipated repayment date. (3) Two Mortgage Loans, Loan Nos. 59291 and 59355 (such Loan Numbers are set forth in Annex A to the prospectus supplement), representing 0.8% and 1.3% of the Initial Pool Balance (0.9% and 1.6% of the Group 1 Balance), respectively, are both ARD Loans and Interest Only Mortgage Loans which results in such Mortgage Loans appearing in each category. (4) Includes one Mortgage Loan, Loan No. 9000330 (such Loan Number is set forth in Annex A to the prospectus supplement) representing 0.4% of the Initial Pool Balance (0.5% of the Group 1 Balance), that is Interest Only for the first 21 months of the loan term, then Fully Amortizing for the remainder of the loan term. (5) Excludes Mortgage Loans that are Fully Amortizing. * One Mortgage Loan, the KinderCare Portfolio Mortgage Loan, Loan No. 59414 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 7.3% of the Initial Pool Balance (8.9% of the Group 1 Balance), is part of a split loan structure evidenced by three pari passu promissory notes referred to as Note A-1, Note A-2 and Note A-3. The Cut-off Date balance of this Mortgage Loan has been calculated based upon Note A-2 (which is the only note included in the trust fund). Each Cut-off Date balance per unit, loan-to-value ratio and debt service coverage ratio calculated in this Structural and Collateral Information with respect to this Mortgage Loan, except as may be otherwise noted herein, was calculated based upon the three pari passu notes (excluding the subordinate component of Note A-1). Such ratios would be lower (in the case of debt service coverage) and higher (in the case of loan-to-value ratios) if the subordinate component of Note A-1 were included. For purposes of weighting such debt service coverage ratios and loan-to-value ratios, such weighting is based solely upon the outstanding principal balance of Note A-2 included in the trust fund. One Mortgage Loan, the Desert Passage Mortgage Loan, Loan No. 59264 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 6.4% of the Initial Pool Balance (7.8% of the Group 1 Balance), is part of a split loan structure evidenced by three pari passu promissory notes referred to as Note A-1, Note A-2 and Note A-3. The Cut-off Date balance of this Mortgage Loan has been calculated based upon Note A-1 (which is the only note included in the trust fund). Each Cut-off Date balance per unit, loan-to-value ratio and debt service coverage ratio calculated in this Structural and Collateral Information with respect to this Mortgage Loan, except as may be otherwise noted herein, was calculated based upon the three pari passu notes. For purposes of weighing such debt service coverage ratios and loan-to-value ratios, such weighting is based solely upon the outstanding principal balance of Note A-2 included in the trust fund. One Mortgage Loan, referred to as the Torre Mayor Mortgage Loan, Loan No. 20051519 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 2.7% of the Initial Pool Balance (3.3% of the Group 1 Balance), is part of a split loan structure evidenced by two pari passu notes referred to as note A-1 and note A-2; and one subordinate note referred to as note B and an obligation to make a future advance which will be evidenced by a subordinate note C. Only note A-2 is included in the trust. The Cut-off Date balance of this Mortgage Loan has been calculated based upon note A-2. Each Cut-off Date balance per unit, loan-to-value ratio and debt service coverage ratio calculated in this term sheet with respect to this Mortgage Loan, except as may be otherwise noted herein, was calculated based upon note A-1 and note A-2 and excludes note B and the obligation to make a future advance which will be evidenced by a subordinate note C. Such ratios would be lower (in the case of debt service coverage) and higher (in the case of loan-to-value ratios) if note B and note C were included. For purposes of weighting such debt service coverage ratios and loan-to-value ratios, such weighting is based solely upon the outstanding principal balance of note A-2 included in the trust fund. One Mortgage Loan, Loan No. 9000330 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 0.4% of the Initial Pool Balance (0.5% of the Group 1 Balance), is Interest Only for the first 21 months of the loan term, then Fully Amortizing for the remainder of the loan term. The debt service coverage ratio of 1.27x was used based on payments after the Interest Only period and the 2007 rent increase. See the "Glossary of Principal Definitions" in the prospectus supplement for definitions and information relating to the calculation of loan-to-value and debt service coverage ratios. The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on the net cash flow unless otherwise noted in this free writing prospectus. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 10 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] Manufactured Housing 3.1% Mixed Use 1.6% Retail 31.8% Office 19.6% Multifamily 15.7% Hotel 10.2% Other 7.3% Self Storage 6.1% Industrial 4.6% PROPERTY TYPE WEIGHTED WEIGHTED WEIGHTED NUMBER OF AGGREGATE % OF AVERAGE MIN/MAX AVERAGE MIN/MAX AVERAGE MORTGAGED CUT-OFF DATE INITIAL POOL UNDERWRITTEN UNDERWRITTEN CUT-OFF DATE CUT-OFF DATE MORTGAGE PROPERTY TYPE PROPERTIES BALANCE BALANCE DSCR DSCR LTV RATIO LTV RATIO RATE - -------------------- ---------- -------------- ------------ ------------ ------------- ------------ ------------ -------- Retail 53 $ 649,618,894 31.8% 1.30x 1.15x / 2.91x 69.8% 23.9% / 79.9% 5.579% Anchored 19 440,971,523 21.6 1.28x 1.15x / 1.76x 70.9% 57.0% / 79.9% 5.518% Unanchored 23 136,951,855 6.7 1.34x 1.20x / 1.66x 69.8% 47.5% / 79.8% 5.620% Shadow Anchored 11 71,695,516 3.5 1.36x 1.20x / 2.91x 62.9% 23.9% / 79.7% 5.876% Office 34 401,697,123 19.6 1.41x 1.20x / 1.84x 66.0% 38.3% / 80.0% 5.911% Multifamily 45 320,198,140 15.7 1.30x 1.20x / 3.27x 73.4% 22.4% / 80.0% 5.524% Hotel 19 209,233,225 10.2 1.60x 1.38x / 1.94x 63.9% 52.1% / 74.8% 5.855% Other 713 149,625,000 7.3 3.21x 3.21x / 3.21x 40.8% 40.8% / 40.8% 5.236% Self Storage 38 123,898,067 6.1 1.30x 1.20x / 1.79x 75.0% 51.2% / 80.0% 5.452% Industrial 13 94,209,849 4.6 1.30x 1.20x / 1.38x 73.2% 46.4% / 78.9% 5.579% Manufactured Housing 6 63,940,000 3.1 1.20x 1.06x / 1.26x 74.0% 59.6% / 80.0% 5.383% Mixed Use 6 32,283,553 1.6 1.26x 1.22x / 1.74x 70.1% 64.8% / 80.0% 5.680% --- -------------- ----- ---- ------------ ---- ------------ ----- TOTAL/WTD AVG 927 $2,044,703,849 100.0% 1.49X 1.06X / 3.27X 67.5% 22.4% / 80.0% 5.626% === ============== ===== ==== ============ ==== ============ ===== * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 11 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- IDAHO NEBRASKA MISSOURI 2 properties 4 properties 17 properties $4,224,000 $21,445,799 $48,771,706 0.2% of total 1.0% of total 2.4% of total IOWA MINNESOTA WISCONSIN 6 properties 26 properties 27 properties $27,580,317 $19,383,007 $19,696,084 1.3% of total 0.9% of total 1.0% of total ILLINOIS INDIANA PENNSYLVANIA 69 properties 13 properties 34 properties $18,229,965 $29,640,899 $13,836,574 0.9% of total 1.4% of total 0.7% of total NEW HAMPSHIRE MICHIGAN OHIO 7 properties 22 properties 50 properties $22,688,680 $74,247,255 $141,881,174 1.1% of total 3.6% of total 6.9% of total NEW YORK MASSACHUSETTS CONNECTICUT 8 properties 24 properties 9 properties $128,716,190 $18,468,465 $1,737,840 6.3% of total 0.9% of total 0.1% of total NEW JERSEY DELAWARE MARYLAND 26 properties 6 properties 25 properties $89,802,910 $3,855,327 $60,207,845 4.4% of total 0.2% of total 2.9% of total VIRGINIA NORTH CAROLINA GEORGIA 63 properties 27 properties 21 properties $69,532,817 $38,661,476 $76,267,336 3.4% of total 1.9% of total 3.7% of total FLORIDA TENNESSEE KENTUCKY 66 properties 19 properties 5 properties $122,654,351 $30,527,059 $5,376,860 6.0% of total 1.5% of total 0.3% of total ALABAMA MISSISSIPPI LOUISIANA 10 properties 3 properties 7 properties $12,800,198 $2,405,956 $12,736,087 0.6% of total 0.1% of total 0.6% of total ARKANSAS TEXAS OKLAHOMA 4 properties 93 properties 11 properties $10,404,682 $206,053,748 $14,346,872 0.5% of total 10.1% of total 0.7% of total KANSAS NEW MEXICO COLORADO 9 properties 3 properties 22 properties $18,550,529 $717,247 $34,845,843 0.9% of total 0.04% of total 1.7% of total ARIZONA UTAH CALIFORNIA 27 properties 8 properties 90 properties $60,942,352 $10,962,996 $298,321,456 3.0% of total 0.5% of total 14.6% of total NEVADA OREGON WASHINGTON 8 properties 13 properties 41 properties $150,737,038 $13,745,361 $24,785,853 7.4% of total 0.7% of total 1.2% of total MEXICO GRAND CAYMAN 1 property 1 property $55,000,000 $29,913,698 2.7% of total 1.5% of total [ ] <1.0% of Initial Pool Balance [ ] 1.0% - 5.0% of Initial Pool Balance [ ] 5.1% - 10.0% of Initial Pool Balance [ ] >10.0% of Initial Pool Balance GEOGRAPHIC DISTRIBUTION WEIGHTED WEIGHTED WEIGHTED NUMBER OF AGGREGATE AVERAGE AVERAGE AVERAGE MORTGAGED CUT-OFF DATE % OF INITIAL UNDERWRITTEN CUT-OFF DATE MORTGAGE PROPERTY LOCATION PROPERTIES BALANCE POOL BALANCE DSCR LTV RATIO RATE - ----------------- ---------- -------------- ------------ ------------ ------------ -------- California 90 $ 298,321,456 14.6% 1.53x 62.3% 5.567% Texas 93 206,053,748 10.1 1.39x 69.6% 5.538% Nevada 8 150,737,038 7.4 1.28x 71.3% 5.495% Ohio 50 141,881,174 6.9 1.37x 74.1% 5.599% New York 8 128,716,190 6.3 1.32x 69.6% 5.474% Florida 66 122,654,351 6.0 1.45x 67.9% 5.493% New Jersey 26 89,802,910 4.4 1.35x 74.3% 5.647% Georgia 21 76,267,336 3.7 1.33x 74.1% 5.567% Michigan 22 74,247,255 3.6 1.47x 62.1% 5.531% Virginia 63 69,532,817 3.4 1.75x 64.3% 5.766% Others 480 686,489,576 33.6 1.62x 65.7% 5.766% --- -------------- ----- ---- ---- ----- TOTAL/WTD AVG 927 $2,044,703,849 100.0% 1.49X 67.5% 5.626% === ============== ===== ==== ==== ===== o THE MORTGAGED PROPERTIES ARE LOCATED THROUGHOUT 39 STATES, MEXICO AND THE CAYMAN ISLANDS. * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 12 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS CUT-OFF DATE BALANCE ($) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- $1,021,832 -- $1,999,999 17 28,283,715 1.4 $2,000,000 -- $2,999,999 31 77,456,510 3.8 $3,000,000 -- $3,999,999 19 66,244,274 3.2 $4,000,000 -- $4,999,999 16 72,759,331 3.6 $5,000,000 -- $7,499,999 39 239,374,084 11.7 $7,500,000 -- $9,999,999 16 142,986,671 7.0 $10,000,000 -- $14,999,999 23 273,469,872 13.4 $15,000,000 -- $19,999,999 14 235,625,716 11.5 $20,000,000 -- $29,999,999 7 166,867,231 8.2 $30,000,000 -- $49,999,999 5 187,412,892 9.2 $50,000,000 -- $99,999,999 3 162,715,219 8.0 $100,000,000 -- $149,625,000 3 391,508,334 19.1 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: $1,021,832 Max: $149,625,000 Average: $10,594,320 LOCATION NO. OF AGGREGATE MORTGAGED CUT-OFF DATE % OF PROPERTIES BALANCE ($) POOL ---------- ------------- ----- California 90 298,321,456 14.6 Texas 93 206,053,748 10.1 Nevada 8 150,737,038 7.4 Ohio 50 141,881,174 6.9 New York 8 128,716,190 6.3 Florida 66 122,654,351 6.0 New Jersey 26 89,802,910 4.4 Georgia 21 76,267,336 3.7 Michigan 22 74,247,255 3.6 Virginia 63 69,532,817 3.4 Others 480 686,489,576 33.6 --- ------------- ----- TOTAL: 927 2,044,703,849 100.0 === ============= ===== PROPERTY TYPE NO. OF AGGREGATE MORTGAGED CUT-OFF DATE % OF PROPERTIES BALANCE ($) POOL ---------- ------------- ----- Retail 53 649,618,894 31.8 Anchored 19 440,971,523 21.6 Unanchored 23 136,951,855 6.7 Shadow Anchored 11 71,695,516 3.5 Office 34 401,697,123 19.6 Multifamily 45 320,198,140 15.7 Hotel 19 209,233,225 10.2 Other 713 149,625,000 7.3 Self Storage 38 123,898,067 6.1 Industrial 13 94,209,849 4.6 Manufactured Housing 6 63,940,000 3.1 Mixed Use 6 32,283,553 1.6 --- ------------- ----- TOTAL: 927 2,044,703,849 100.0 === ============= ===== MORTGAGE RATE (%) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- 4.923% -- 4.999% 2 7,600,000 0.4 5.000% -- 5.249% 12 220,007,706 10.8 5.250% -- 5.499% 45 705,373,077 34.5 5.500% -- 5.749% 75 653,127,334 31.9 5.750% -- 5.999% 46 274,335,413 13.4 6.000% -- 6.249% 10 92,367,316 4.5 6.250% -- 6.499% 2 36,893,004 1.8 6.500% -- 7.546% 1 55,000,000 2.7 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 4.923% Max: 7.546% Wtd Avg: 5.626% ORIGINAL TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- 60 -- 83 12 156,498,172 7.7 84 -- 99 9 153,459,893 7.5 100 -- 120 163 1,574,847,522 77.0 121 -- 179 7 117,909,972 5.8 180 2 41,988,291 2.1 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 60 Max: 180 Wtd Avg: 115 REMAINING TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- 56 -- 59 9 139,493,778 6.8 60 -- 79 1 6,363,070 0.3 80 -- 99 11 164,101,216 8.0 100 -- 109 1 16,000,000 0.8 110 -- 119 159 1,572,892,484 76.9 120 -- 139 8 90,115,010 4.4 140 -- 159 2 13,750,000 0.7 160 -- 179 2 41,988,291 2.1 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 56 Max: 179 Wtd Avg: 112 PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- Lockout/Defeasance/Open 170 1,705,003,067 83.4 Lockout/Yield Maintenance/Open 23 339,700,782 16.6 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== CUT-OFF DATE LOAN-TO-VALUE RATIO (%) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- 22.4% -- 29.9% 2 7,600,000 0.4 30.0% -- 49.9% 7 233,370,811 11.4 50.0% -- 59.9% 11 141,312,596 6.9 60.0% -- 64.9% 21 144,080,082 7.0 65.0% -- 69.9% 35 324,762,827 15.9 70.0% -- 74.9% 56 668,958,322 32.7 75.0% -- 79.9% 50 426,891,211 20.9 80.0% -- 80.0% 11 97,728,000 4.8 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 22.4% Max: 80.0% Wtd Avg: 67.5% LOAN-TO-VALUE RATIO AT MATURITY OR ARD (%) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- Fully Amortizing(1) 2 11,988,291 0.6 19.5% -- 24.9% 3 11,173,979 0.5 25.0% -- 49.9% 15 274,514,163 13.4 50.0% -- 59.9% 59 526,172,487 25.7 60.0% -- 64.9% 45 312,401,487 15.3 65.0% -- 69.9% 44 637,787,668 31.2 70.0% -- 74.9% 23 220,465,774 10.8 75.0% -- 79.9% 2 50,200,000 2.5 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 19.5% Max: 79.9% Wtd Avg: 60.0(2) (1) Includes one Mortgage Loan, Loan No. 9000330, that is Interest Only for the first 21 months of the loan term then Fully Amortizing for the reminder of the loan term. (2) Excludes Mortgage Loans that are Fully Amortizing. DEBT SERVICE COVERAGE RATIOS (X) NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE ($) POOL -------- ------------- ----- 1.06x -- 1.19x 7 186,229,862 9.1 1.20x -- 1.24x 52 478,113,035 23.4 1.25x -- 1.29x 38 448,145,122 21.9 1.30x -- 1.34x 26 169,992,209 8.3 1.35x -- 1.39x 22 130,350,966 6.4 1.40x -- 1.49x 21 190,781,812 9.3 1.50x -- 1.59x 8 93,549,394 4.6 1.60x -- 1.69x 6 40,093,585 2.0 1.70x -- 1.79x 6 76,457,812 3.7 1.80x -- 1.89x 3 18,765,051 0.9 1.90x -- 1.99x 1 55,000,000 2.7 2.00x -- 2.99x 1 2,100,000 0.1 3.00x -- 3.27x 2 155,125,000 7.6 --- ------------- ----- TOTAL: 193 2,044,703,849 100.0 === ============= ===== Min: 1.06x Max: 3.27x Wtd Avg: 1.49x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 13 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- LOAN GROUP 1 CHARACTERISTICS CUT-OFF DATE BALANCE ($) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- $1,021,832 -- $1,999,999 14 23,855,994 1.4 $2,000,000 -- $2,999,999 24 59,152,842 3.5 $3,000,000 -- $3,999,999 9 31,776,474 1.9 $4,000,000 -- $4,999,999 15 68,659,331 4.1 $5,000,000 -- $7,499,999 31 188,642,034 11.2 $7,500,000 -- $9,999,999 13 117,222,887 6.9 $10,000,000 -- $14,999,999 14 166,553,693 9.9 $15,000,000 -- $19,999,999 10 169,836,981 10.1 $20,000,000 -- $29,999,999 5 121,967,231 7.2 $30,000,000 -- $49,999,999 5 187,412,892 11.1 $50,000,000 -- $99,999,999 3 162,715,219 9.6 $100,000,000 -- $149,625,000 3 391,508,334 23.2 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: $1,021,832 Max: $149,625,000 Average: $11,570,575 LOCATION NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE ($) GROUP 1 ---------- ------------- ------- California 90 298,321,456 17.7 Texas 83 143,012,118 8.5 Nevada 7 138,187,038 8.2 New York 7 123,216,190 7.3 New Jersey 26 89,802,910 5.3 Ohio 43 84,391,893 5.0 Florida 62 83,864,351 5.0 Virginia 61 60,739,175 3.6 Maryland 24 57,420,698 3.4 Mexico 1 55,000,000 3.3 Others 475 555,348,084 32.9 --- ------------- ----- TOTAL: 879 1,689,303,912 100.0 === ============= ===== PROPERTY TYPE NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE ($) GROUP 1 ---------- ------------- ------- Retail 53 649,618,894 38.5 Anchored 19 440,971,523 26.1 Unanchored 23 136,951,855 8.1 Shadow Anchored 11 71,695,516 4.2 Office 34 401,697,123 23.8 Hotel 19 209,233,225 12.4 Other 713 149,625,000 8.9 Self Storage 38 123,898,067 7.3 Industrial 13 94,209,849 5.6 Mixed Use 6 32,283,553 1.9 Manufactured Housing 2 26,250,000 1.6 Multifamily 1 2,488,203 0.1 --- ------------- ----- TOTAL: 879 1,689,303,912 100.0 === ============= ===== MORTGAGE RATE (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- -------- 5.131% -- 5.249% 8 200,240,656 11.9 5.250% -- 5.499% 30 563,622,702 33.4 5.500% -- 5.749% 53 503,819,589 29.8 5.750% -- 5.999% 43 240,716,181 14.2 6.000% -- 6.249% 9 89,011,781 5.3 6.250% -- 6.499% 2 36,893,004 2.2 6.500% -- 7.546% 1 55,000,000 3.3 --- ----------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 5.131% Max: 7.546% Wtd Avg: 5.650% ORIGINAL TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- 60 -- 83 8 107,143,426 6.3 84 -- 99 9 153,459,893 9.1 100 -- 120 120 1,268,802,331 75.1 121 -- 179 7 117,909,972 7.0 180 2 41,988,291 2.5 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 60 Max: 180 Wtd Avg: 115 REMAINING TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- 56 -- 59 5 90,139,032 5.3 60 -- 79 1 6,363,070 0.4 80 -- 99 11 164,101,216 9.7 100 -- 109 1 16,000,000 0.9 110 -- 119 118 1,298,447,293 76.9 120 -- 139 6 58,515,010 3.5 140 -- 159 2 13,750,000 0.8 160 -- 179 2 41,988,291 2.5 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 56 Max: 179 Wtd Avg: 112 PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- Lockout/Defeasance/Open 128 1,370,646,404 81.1 Lockout/Yield Maintenance/Open 18 318,657,508 18.9 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== CUT-OFF DATE LOAN-TO-VALUE RATIO (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- 23.9% -- 29.9% 1 2,100,000 0.1 30.0% -- 49.9% 7 233,370,811 13.8 50.0% -- 59.9% 8 122,162,596 7.2 60.0% -- 64.9% 19 126,286,440 7.5 65.0% -- 69.9% 32 318,335,106 18.8 70.0% -- 74.9% 46 561,528,893 33.2 75.0% -- 79.9% 27 259,792,067 15.4 80.0% -- 80.0% 6 65,728,000 3.9 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 23.9% Max: 80.0% Wtd Avg: 66.2% LOAN-TO-VALUE RATIO AT MATURITY OR ARD (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- Fully Amortizing(1) 2 11,988,291 0.7 20.8% -- 24.9% 2 5,673,979 0.3 25.0% -- 49.9% 14 272,014,163 16.1 50.0% -- 59.9% 52 497,130,703 29.4 60.0% -- 64.9% 35 226,872,406 13.4 65.0% -- 69.9% 29 526,388,343 31.2 70.0% -- 74.9% 10 99,036,028 5.9 75.0% -- 79.9% 2 50,200,000 3.0 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 20.8% Max: 79.9% Wtd Avg: 58.8(2) (1) Includes one Mortgage Loan, Loan No. 9000330, that is Interest Only for the first 21 months of the loan term then Fully Amortizing for the remainder of the loan term. (2) Excludes Mortgage Loans that are Fully Amortizing. DEBT SERVICE COVERAGE RATIOS (X) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 1 -------- ------------- ------- 1.06x -- 1.19x 5 171,406,078 10.1 1.20x -- 1.24x 30 286,971,015 17.0 1.25x -- 1.29x 27 370,786,789 21.9 1.30x -- 1.34x 23 151,921,147 9.0 1.35x -- 1.39x 19 104,058,250 6.2 1.40x -- 1.49x 18 174,446,743 10.3 1.50x -- 1.59x 7 91,049,394 5.4 1.60x -- 1.69x 5 36,716,632 2.2 1.70x -- 1.79x 6 76,457,812 4.5 1.80x -- 1.89x 3 18,765,051 1.1 1.90x -- 1.99x 1 55,000,000 3.3 2.00x -- 2.99x 1 2,100,000 0.1 3.00x -- 3.21x 1 149,625,000 8.9 --- ------------- ----- TOTAL: 146 1,689,303,912 100.0 === ============= ===== Min: 1.06x Max: 3.21x Wtd Avg: 1.53x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 14 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- LOAN GROUP 2 CHARACTERISTICS CUT-OFF DATE BALANCE ($) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- $1,100,328 -- $1,999,999 3 4,427,721 1.2 $2,000,000 -- $2,999,999 7 18,303,667 5.2 $3,000,000 -- $3,999,999 10 34,467,800 9.7 $4,000,000 -- $4,999,999 1 4,100,000 1.2 $5,000,000 -- $7,499,999 8 50,732,050 14.3 $7,500,000 -- $9,999,999 3 25,763,784 7.2 $10,000,000 -- $14,999,999 9 106,916,179 30.1 $15,000,000 -- $19,999,999 4 65,788,735 18.5 $20,000,000 -- $24,100,000 2 44,900,000 12.6 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: $1,100,328 Max: $24,100,000 Average: $7,561,701 LOCATION NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE ($) GROUP 2 ---------- ------------ ------- Texas 10 63,041,629 17.7 Ohio 7 57,489,281 16.2 Florida 4 38,790,000 10.9 Georgia 2 27,310,255 7.7 Michigan 2 22,150,000 6.2 Arizona 1 20,800,000 5.9 North Carolina 3 18,473,784 5.2 Missouri 2 17,355,535 4.9 Nevada 1 12,550,000 3.5 Oklahoma 1 11,945,448 3.4 Others 15 65,494,005 18.4 --- ----------- ----- TOTAL: 48 355,399,937 100.0 === =========== ===== PROPERTY TYPE NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE ($) GROUP 2 ---------- ------------ ------- Multifamily 44 317,709,937 89.4 Manufactured Housing 4 37,690,000 10.6 --- ----------- ----- TOTAL: 48 355,399,937 100.0 === =========== ===== MORTGAGE RATE (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 4.923% -- 4.999% 2 7,600,000 2.1 5.000% -- 5.249% 4 19,767,050 5.6 5.250% -- 5.499% 15 141,750,375 39.9 5.500% -- 5.749% 22 149,307,745 42.0 5.750% -- 5.999% 3 33,619,232 9.5 6.000% -- 6.000% 1 3,355,535 0.9 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 4.923% Max: 6.000% Wtd Avg: 5.512% ORIGINAL TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 60 -- 99 4 49,354,746 13.9 100 -- 120 43 306,045,191 86.1 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 60 Max: 120 Wtd Avg: 112 REMAINING TERM TO STATED MATURITY OR ARD (MOS) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 57 -- 109 4 49,354,746 13.9 110 -- 119 41 274,445,191 77.2 120 2 31,600,000 8.9 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 57 Max: 120 Wtd Avg: 109 PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- Lockout/Defeasance/Open 42 334,356,663 94.1 Lockout/Yield Maintenance/Open 5 21,043,274 5.9 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== CUT-OFF DATE LOAN-TO-VALUE RATIO (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 22.4% -- 49.9% 1 5,500,000 1.5 50.0% -- 59.9% 3 19,150,000 5.4 60.0% -- 64.9% 2 17,793,642 5.0 65.0% -- 69.9% 3 6,427,721 1.8 70.0% -- 74.9% 10 107,429,430 30.2 75.0% -- 79.9% 23 167,099,144 47.0 80.0% -- 80.0% 5 32,000,000 9.0 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 22.4% Max: 80.0% Wtd Avg: 73.6% LOAN-TO-VALUE RATIO AT MATURITY OR ARD (%) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 19.5% -- 24.9% 1 5,500,000 1.5 25.0% -- 49.9% 1 2,500,000 0.7 50.0% -- 59.9% 7 29,041,784 8.2 60.0% -- 64.9% 10 85,529,081 24.1 65.0% -- 69.9% 15 111,399,326 31.3 70.0% -- 74.3% 13 121,429,746 34.2 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 19.5% Max: 74.3% Wtd Avg: 66.1 DEBT SERVICE COVERAGE RATIOS (X) NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE ($) GROUP 2 -------- ------------ ------- 1.19x 2 14,823,784 4.2 1.20x -- 1.24x 22 191,142,020 53.8 1.25x -- 1.29x 11 77,358,333 21.8 1.30x -- 1.34x 3 18,071,062 5.1 1.35x -- 1.39x 3 26,292,716 7.4 1.40x -- 1.49x 3 16,335,069 4.6 1.50x -- 1.59x 1 2,500,000 0.7 1.60x -- 2.99x 1 3,376,953 1.0 3.00x -- 3.27x 1 5,500,000 1.5 --- ----------- ----- TOTAL: 47 355,399,937 100.0 === =========== ===== Min: 1.19x Max: 3.27x Wtd Avg: 1.29x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 15 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- PREPAYMENT PROVISIONS BASED ON OUTSTANDING PRINCIPAL BALANCE PREPAYMENT PROVISIONS(1) MAR-06 MAR-07 MAR-08 MAR-09 MAR-10 MAR-11 MAR-12 - ----------------------------------------- --------- --------- --------- --------- --------- --------- --------- Lockout/Defeasance(2) 100.00% 90.80% 90.82% 87.82% 83.13% 82.10% 82.05% Yield Maintenance(2) 0.00% 9.20% 9.18% 12.18% 16.63% 17.90% 17.95% Open 0.00% 0.00% 0.00% 0.00% 0.24% 0.00% 0.00% --------- --------- --------- --------- --------- --------- --------- Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% ========= ========= ========= ========= ========= ========= ========= Total Beginning Balance (in millions) $2,044.70 $2,033.81 $2,021.06 $2,002.88 $1,978.04 $1,816.06 $1,780,77 Percent of Aggregate Cut-off Date Balance 100.00% 99.47% 98.84% 97.95% 96.74% 88.82% 87.09% --------- --------- --------- --------- --------- --------- --------- PREPAYMENT PROVISIONS(1) MAR-13 MAR-14 MAR-15 MAR-16 MAR-17 MAR-18 MAR-19 MAR-20 - ------------------------------------- --------- --------- --------- ------- ------- ------- ------- ------- Lockout/Defeasance(2) 80.48% 80.44% 79.62% 52.98% 52.01% 12.61% 1.54% 0.78% Yield Maintenance(2) 19.52% 19.56% 19.79% 47.02% 47.99% 87.39% 98.46% 99.22% Open 0.00% 0.00% 0.59% 0.00% 0.00% 0.00% 0.00% 0.00% --------- --------- --------- ------- ------- ------- ------- ------- Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% ========= ========= ========= ======= ======= ======= ======= ======= Total Beginning Balance (in millions) $1,598,70 $1,565,90 $1,517,48 $ 77.46 $ 74.64 $ 40.25 $ 35.04 $ 34.05 Percent of Aggregate Cut-off Date Balance 78.19% 76.58% 74.22% 3.79% 3.65% 1.97% 1.71% 1.67% --------- --------- --------- ------- ------- ------- ------- ------- (1) Prepayment provisions in effect as a percentage of outstanding loan balances as of the indicated date assuming no prepayments on the Mortgage Loans (except that an ARD Loan will be repaid on its Anticipated Repayment Date). (2) As of the Cut-off Date, 23 Mortgage Loans, representing 16.6% of the Initial Pool Balance (18.9% of the Group 1 Balance, and 5.9% of the Group 2 Balance) are subject to an initial lockout period after which prepayment is permitted subject to the greater of a yield maintenance charge or a 1% prepayment premium. One hundred seventy Mortgage Loans representing 83.4% of the Initial Pool Balance are subject to an initial lockout period after which defeasance is permitted. One Mortgage Loan, Loan No. 20051248, representing 1.9% of the Initial Pool Balance (2.3% of the Group 1 Balance), is open to prepayment with yield maintenance as of April 1, 2006. * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 16 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- TEN LARGEST MORTGAGE LOANS* - -------------------------------------------------------------------------------- The following table and summaries describe the ten largest Mortgage Loans in the Mortgage Pool by Cut-off Date Balance: TEN LARGEST MORTGAGE LOANS BY CUT-OFF DATE BALANCE % OF % OF CUT-OFF INITIAL APPLICABLE DATE LOAN POOL LOAN PROPERTY LOAN NAME BALANCE GROUP BALANCE GROUP TYPE - ------------------------------------ ------------ ----- --------- ---------- -------- KinderCare Portfolio ............... $149,625,000 1 7.3% 8.9% Other Desert Passage ..................... 131,883,334 1 6.4 7.8% Retail Waterfront at Port Chester ......... 110,000,000 1 5.4 6.5% Retail Fairmont Sonoma Mission Inn & Spa... 55,000,000 1 2.7 3.3% Hotel Torre Mayor ........................ 55,000,000 1 2.7 3.3% Office Medical Mutual Headquarters ........ 52,715,219 1 2.6 3.1% Office Frandor Shopping Center ............ 39,500,000 1 1.9 2.3% Retail Metro Plaza at Jersey City ......... 39,000,000 1 1.9 2.3% Retail Plaza Antonio ...................... 39,000,000 1 1.9 2.3% Retail Main Event Portfolio ............... 35,512,892 1 1.7 2.1% Retail ------------ ---- TOTAL/WTD AVG ...................... $707,236,445 34.6% ============ ==== CUT-OFF LTV DATE LTV RATIO AT UNDERWRITTEN MORTGAGE LOAN NAME RATIO MATURITY OR ARD DSCR RATE - ------------------------------------ -------- --------------- ------------ -------- KinderCare Portfolio ............... 40.8% 35.2% 3.21x 5.236%(1) Desert Passage ..................... 72.6% 65.3% 1.28x 5.461%(1)(2) Waterfront at Port Chester ......... 71.9% 69.6% 1.20x 5.463% Fairmont Sonoma Mission Inn & Spa... 52.1% 52.1% 1.94x 5.400%(1) Torre Mayor ........................ 38.3% 34.3% 1.80x 7.546% Medical Mutual Headquarters ........ 73.2% 65.8% 1.20x 5.650% Frandor Shopping Center ............ 57.0% 51.0% 1.53x 5.460% Metro Plaza at Jersey City ......... 75.0% 67.5% 1.20x 5.730% Plaza Antonio ...................... 65.7% 55.9% 1.20x 6.083% Main Event Portfolio ............... 68.6% 57.9% 1.45x 5.618% TOTAL/WTD AVG ...................... 60.2% 54.6% 1.78X 5.642% * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this free writing prospectus also applies to this page. (1) Interest rate rounded to three decimal places. (2) Interest rate subject to change prior to pricing. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 17 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 18 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL NOTE A-2 PRINCIPAL BALANCE: $150,000,000 FIRST PAYMENT DATE: January 1, 2006 TERM/AMORTIZATION: 120/Planned MATURITY DATE: December 1, 2015 EXPECTED NOTE A-2 MATURITY BALANCE: $129,225,000 BORROWING ENTITY: KC Propco, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout: 13 payments GRTR 1% PPMT or Yield Maintenance: 100 payments Open: 7 payments PARI PASSU DEBT: $150,000,000 Note A-1 and $150,000,000 Note A-3 EXISTING MEZZANINE DEBT: $50,000,000 senior mezzanine loan SUBORDINATE COMPONENT: $200,000,000 portion (subordinate component) of Note A-1, not included in the trust fund. UP-FRONT RESERVES: IMMEDIATE REPAIR RESERVE: $756,551 LETTERS OF CREDIT: TAXES: $5,542,841 REPLACEMENT RESERVES: $930,000 LOCKBOX: Hard - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- WHOLE LOAN CUT-OFF DATE BALANCE: $648,375,000 NOTE A-1 SENIOR COMPONENT CUT-OFF DATE BALANCE: $149,625,000 NOTE A-1 SUBORDINATE COMPONENT CUT-OFF DATE BALANCE: $199,500,000 NOTE A-2 CUT-OFF DATE BALANCE: $149,625,000 NOTE A-3 CUT-OFF DATE BALANCE: $149,625,000 SHADOW RATING (MOODY'S/S&P): A3/AAA WHOLE WHOLE LOAN LOAN (EXCLUDING (INCLUDING SUBORDINATE SUBORDINATE COMPONENT) COMPONENT) ----------- ----------- CUT-OFF DATE LTV: 40.8% 58.9% MATURITY DATE LTV: 35.2% 50.8% UNDERWRITTEN DSCR: 3.21x 2.15x MORTGAGE RATE(1): 5.236% 5.462% - -------------------------------------------------------------------------------- (1) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Other PROPERTY SUB TYPE: Child Development Centers LOCATION: Various YEAR BUILT OR YEAR OPENED: Various NET RENTABLE SQUARE FEET: 5,119,320 CUT-OFF BALANCE PSF: $88 TRAILING 12 UTILIZATION AS OF 10/01/2005(1): 58.6% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Greenstreet Realty Partners, L.P. U/W NET CASH FLOW: $90,800,000 APPRAISED VALUE: $1,101,357,835 - -------------------------------------------------------------------------------- (1) Excludes three properties for which information was unavailable and three properties constructed in 2005. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 19 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- FINANCIAL INFORMATION UNDERWRITTEN ------------ Cash Flow (CF)(1)(2) ......... $90,800,000 DSCR on CF(3) ................ 3.21x (1) The KinderCare Portfolio Borrower, KC Propco, LLC, receives an annual payment of $90,800,000 (via the "Master Lease") from the Knowledge Learning Corporation. (2) In addition, the underlying properties in the KinderCare Portfolio had a 12/31/04 EBITDA of $136,397,531 and a Trailing 12 10/01/05 EBITDA of $149,511,946. (3) Based on an aggregate principal of $448,875,000 (the KinderCare Portfolio Whole Loan Cut-off Date principal balance, excluding the Note A-1 subordinate component). # OF SQUARE AVERAGE % OF TOTAL STATE PROPERTIES FEET SF SF - ------------------------------ ---------- --------- ------- ---------- California ................... 62 535,193 8,632 10.5% Illinois ..................... 68 491,598 7,229 9.6 Texas ........................ 56 408,897 7,302 8.0 Virginia ..................... 53 341,154 6,437 6.7 Florida ...................... 51 322,865 6,331 6.3 Ohio ......................... 38 273,553 7,199 5.3 Pennsylvania ................. 33 234,845 7,117 4.6 Washington ................... 34 228,234 6,713 4.5 Other(1) ..................... 318 2,282,981 7,179 44.9 --- --------- ----- ----- TOTAL ........................ 713 5,119,320 7,180 100.0% === ========= ===== ===== (1) Includes 29 states. # OF SQUARE % OF TOTAL PROPERTY BUILT PROPERTIES FEET SF - ------------------------------ ---------- --------- ---------- Prior to 1982 ................ 93 546,395 10.7% 1982-1987 .................... 323 2,151,710 42.0 1988-1992 .................... 133 854,865 16.7 1993-1998 .................... 57 521,951 10.2 1999 ......................... 13 133,518 2.6 2000 ......................... 27 265,347 5.2 2001 ......................... 19 194,409 3.8 2002 ......................... 15 149,943 2.9 2003 ......................... 10 98,459 1.9 2004 ......................... 5 48,645 1.0 2005 ......................... 4 39,834 0.8 NAV .......................... 14 114,244 2.2 --- --------- ----- TOTAL ........................ 713 5,119,320 100.0% === ========= ===== # OF SQUARE % OF TOTAL OPERATOR PROPERTIES FEET SF - ------------------------------ ---------- --------- ---------- KinderCare ................... 592 4,190,188 81.9% Children's World Learning Ctr ....................... 103 792,693 15.5 Other ........................ 18 136,439 2.7 --- --------- ----- TOTAL ........................ 713 5,119,320 100.0% === ========= ===== The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 20 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The KinderCare Portfolio Whole Loan is a $650.0 million, ten-year fixed rate loan secured by a first mortgage on 713 children's learning centers located in 37 states. The KinderCare Portfolio Whole Loan is represented by three pari passu promissory notes referred to as Note A-1, Note A-2 (which is the only note included in the trust fund) and Note A-3. The KinderCare Portfolio Mortgage Loan is represented by the related Note A-2. Monthly debt service on the KinderCare Portfolio Mortgage Loan in the trust consists of interest plus fixed principal payments of $125,000 for the first 60 months and $225,000 for the last 60 months. Monthly debt service on the KinderCare Portfolio Whole Loan consists of interest plus fixed principal payments of $541,667 for the first 60 months and $975,000 for the last 60 months. o The KinderCare Mortgage Loan is serviced pursuant to the pooling and servicing agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-6. THE BORROWER: o The KinderCare Portfolio Borrower is KC Propco, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with at least two independent directors for which the KinderCare Portfolio Borrower's legal counsel has delivered a non-consolidation opinion. o Equity ownership is held 100% by KC Mezco I LLC as the Member of the KinderCare Portfolio Borrower. Through a series of intermediate ownership levels, equity ownership of the KinderCare Portfolio Borrower is eventually held by KinderCare Learning Centers, Inc. and Knowledge Learning Corporation, the sponsor of the KinderCare Portfolio Mortgage Loan. The sponsor principals are Michael R. Milken, Lowell J. Milken and Steven J. Green. o The KinderCare Portfolio Borrower is generally required at its sole cost and expense to keep the KinderCare Portfolio Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. THE PROPERTY: o The KinderCare Portfolio Mortgaged Property consists of 713 children's learning centers totaling 5,119,320 net rentable square feet located in 37 states that are owned and operated by Knowledge Learning Corporation. THE COMPANY: o KinderCare Learning Centers, founded in 1969 and based in Portland, Oregon, is a leading provider of early childhood education and care to children between the ages of six weeks and 12 years. KinderCare Learning Centers operates 1,222 early childhood education and care centers, 10 before and after-school programs and 43 employer-sponsored child care centers located in 39 states, serving more than 115,000 children and employing approximately 24,000 people. o Knowledge Learning Corporation, founded in 1983 and based in Golden, Colorado, is a leading provider of early childhood education programs and services operating under several names, including Children's Discovery Centers, Knowledge Beginnings, Magic Years and Children's World. Knowledge Learning Corporation operates 721 early childhood education and child care centers, 646 before- and after-school programs and 80 employer-sponsored child care centers located in 33 states and Washington, D.C., serving more than 85,000 children and employing approximately 17,000 people. As of the 12-month period ended September 30, 2004, Knowledge Learning Corporation reported revenue of approximately $1.4 billion and net income of $15.0 million. o In January 2005, Knowledge Learning Corporation purchased KinderCare for approximately $550 million, plus the assumption of approximately $483 million of indebtedness. The combined company operates 1,900 early childhood education and child care centers, 656 before-and-after school programs and 123 employer-sponsored child care centers located in 39 states and Washington, D.C., serving more than 200,000 children and employing approximately 41,000 people. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 21 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- PROPERTY MANAGEMENT: o Greenstreet Realty Partners, L.P., is the property manager of the portfolio. MASTER LEASE: o The KinderCare Portfolio Borrower has entered into a 15-year bondable triple net lease ("Master Lease") for the individual properties with the Knowledge Learning Corporation. The Master Lease provides for the monthly payment of scheduled base rent increasing periodically over the loan term and standard pass-through expenses. The Master Lease allows the individual properties to remain in the operating company, Knowledge Learning Corporation, which makes market rental payments to The KinderCare Portfolio Borrower, KC Propco, LLC. Beginning in 2011 and 2016 the scheduled base rent shall increase every five lease years proportionate to any increases in the CPI during the prior five year period, not to exceed a 7% maximum increase. The Master Lease specifies the portion of the base scheduled rent allocated to each individual property. All scheduled Master Lease payments shall at all times during the loan term be made directly to a deposit account controlled by the mortgagee. RELEASE OF PROPERTY: o Provided that no event of default has occurred and is continuing, the KinderCare Portfolio Borrower may obtain the release of an individual property from the lien of the related mortgage and the release of the KinderCare Portfolio Borrower's obligations upon satisfying the following conditions including, without limitation, receipt by the mortgagee of a certified copy of an amendment to the Master Lease reflecting the deletion of the individual property to be released, which amendment shall reduce the rental obligations of KinderCare Learning Corporation thereunder by an amount equal to the rental obligation associated with the individual property that is to be released. The release price for each individual property shall be 115% of the allocated loan amount to a third party purchaser or the greater of 115% of the allocated loan amount and the then appraised value of such individual property to an affiliate of the KinderCare Portfolio Borrower. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The equity owner of the borrower, KC Mezco I LLC, incurred mezzanine debt from Bank of America, N.A. with an aggregate balance of $50,000,000 secured by pledges of equity interests in the KinderCare Portfolio Borrower. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o Not allowed. SUBORDINATE COMPONENT: o As will be set forth in more detail in the prospectus supplement, the KinderCare Portfolio Mortgage Loan is one of three mortgage loans that are part of a split loan structure that is secured by the same mortgage instrument on the KinderCare Portfolio Mortgaged Property comprised of three pari passu notes, namely the KinderCare Portfolio Note A-1, the KinderCare Portfolio Note A-2 and the KinderCare Portfolio Note A-3, with aggregate principal balances as of the Cut-off Date of $149,625,000, $149,625,000, and $149,625,000, respectively. The KinderCare Portfolio Note A-2 is pari passu in right of payment to the KinderCare Portfolio Note A-1 and the KinderCare Portfolio Note A-3. However, as described in the prospectus supplement, a portion of the KinderCare Portfolio Note A-1 has been subordinated to the KinderCare Portfolio Note A-2, the KinderCare Portfolio Note A-3 and the remaining portion of the KinderCare Portfolio Note A-1. As will be set forth in more detail in the prospectus supplement, the holder of a designated class of certificates that is entitled to payments solely from the KinderCare Portfolio Pari Passu Note A-1 Component Mortgage Loan will be entitled in certain instances to exercise rights analogous to the rights of the directing certificateholder pursuant to the pooling and servicing agreement related to the securitization of the KinderCare Portfolio Pari Passu Note A-1 Component Mortgage Loan with respect to the KinderCare Portfolio Pari Passu Note A-1 Component Mortgage Loan, the KinderCare Portfolio Mortgage Loan and the KinderCare Portfolio Pari Passu Note A-3 Mortgage Loan. Such rights may include the review and/or approval of certain actions taken by the Master Servicer or the Special Servicer in connection with the KinderCare Portfolio Pari Passu Note A-1 Component Mortgage Loan, the KinderCare Portfolio Mortgage Loan and/or the KinderCare Portfolio Pari Passu Note A-3 Mortgage Loan. In addition, such holder may (but is not obliged to) purchase the KinderCare Whole Loan, if the KinderCare Portfolio Pari Passu Note A-1 Component Mortgage Loan, the KinderCare Portfolio Mortgage Loan and the KinderCare Portfolio Pari Passu Note A-3 Mortgage Loan, as applicable, is then considered a "Defaulted Mortgage Loan" as more particularly described in the prospectus supplement, at a price generally equal to its (a) fair value as determined by the Special Servicer (or the Master Servicer or Trustee if the Special Servicer and the option holder are the same person or affiliated) or (b) unpaid principal balance, plus accrued and unpaid interest on such balance, all related unreimbursed advances (with interest if any), and all accrued special servicing fees and additional trust fund expenses, if the Special Servicer has not determined its fair value. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 22 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION KINDERCARE PORTFOLIO - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 23 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 24 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS DESERT PASSAGE - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL NOTE A-1 PRINCIPAL BALANCE: $131,883,334 FIRST PAYMENT DATE: December 1, 2005 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 36 months MATURITY DATE: November 1, 2015 EXPECTED NOTE A-1 MATURITY BALANCE: $118,613,407 BORROWING ENTITY: Boulevard Invest LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments PARI PASSU DEBT: $131,883,333 Note A-2 and $131,883,333 Note A-3 EXISTING MEZZANINE DEBT: $40,000,000 mezzanine loan UP-FRONT RESERVES: TAX RESERVE: Yes TI/LC RESERVE: $8,333,824 PERFORMANCE RESERVE: $40,000,000 OTHER RESERVE: $15,000,000 ONGOING MONTHLY RESERVES: TAX RESERVE: Yes REPLACEMENT RESERVE: $11,115 LOCKBOX: Hard - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- WHOLE LOAN CUT-OFF DATE BALANCE: $395,650,000 NOTE A-1 CUT-OFF DATE BALANCE: $131,883,334 NOTE A-2 CUT-OFF DATE BALANCE: $131,883,333 NOTE A-3 CUT-OFF DATE BALANCE: $131,883,333 CUT-OFF DATE LTV: 72.6% MATURITY DATE LTV: 65.3% UNDERWRITTEN DSCR: 1.28x MORTGAGE RATE(1): 5.461% - -------------------------------------------------------------------------------- (1) The interest rate was rounded to three decimal places and is subject to change (prior to pricing). - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Anchored LOCATION: Las Vegas, NV YEAR BUILT/RENOVATED: 2000/NAP NET RENTABLE SQUARE FEET: 493,984 CUT-OFF BALANCE PSF: $801 OCCUPANCY AS OF 10/17/2005: 96.8% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Related Urban Management Company, LLC U/W NET CASH FLOW: $34,073,209 APPRAISED VALUE: $545,000,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 25 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR ANNUALIZED (12/31/2003) (12/31/2004) (06/30/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $34,413,018 $35,687,401 $37,883,450 $50,928,356 Total Expenses ............... $13,495,805 $15,414,804 $17,991,614 $15,931,397 Net Operating Income (NOI) ... $20,917,213 $20,272,597 $19,891,836 $34,996,959 Cash Flow (CF) ............... $20,917,213 $19,435,950 $19,891,836 $34,073,209 DSCR on NOI(1) ............... 0.79x 0.76x 0.75x 1.32x DSCR on CF(1) ................ 0.79x 0.73x 0.75x 1.28x (1) Based on an aggregate principal balance of $395,650,000 (the original whole loan principal balance, excluding the subordinate portion of Note A-1). TENANT INFORMATION(1) RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- ------ ---------- ----------- ---------- V Theater .................... Not Rated 30,883 6.3% $42.00 $1,297,086 3.6% 12/31/2013 Planet Hollywood ............. Not Rated 22,569 4.6 $46.67 1,053,382 2.9 08/31/2014 Steve Wyrick Theater ......... Not Rated 21,609 4.4 $32.21 696,026 1.9 12/31/2015 Gap/Gap Kids/Baby Gap ........ Baa3/BBB- 20,872 4.2 $45.51 949,885 2.6 08/31/2010 ------ ---- ---------- ---- TOTAL ........................ 95,933 19.4% $3,996,378 11.3% ====== ==== ========== ==== (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent, and % Potential Rent include base rent only and exclude common area maintenance and reimbursements. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- -------- ---------- ------------- ---------- 2006 ......................... 41 18,652 3.8% 18,652 3.8% $2,810,705 2007 ......................... 6 13,372 2.7 32,024 6.5% $ 558,848 2008 ......................... 6 30,907 6.3 62,931 12.7% $1,593,130 2010 ......................... 46 115,888 23.5 178,819 36.2% $8,365,488 2011 ......................... 17 62,582 12.7 241,401 48.9% $3,298,409 2012 ......................... 13 38,689 7.8 280,090 56.7% $2,232,229 2013 ......................... 6 37,526 7.6 317,616 64.3% $1,729,836 2014 ......................... 5 28,633 5.8 346,249 70.1% $1,209,432 2015 ......................... 18 52,745 10.7 398,994 80.8% $4,049,192 2016 ......................... 11 40,183 8.1 439,177 88.9% $2,442,960 2018 ......................... 1 11,677 2.4 450,854 91.3% $ 821,127 2021 ......................... 1 13,035 2.6 463,889 93.9% $1,380,015 2025 ......................... 3 3,382 0.7 467,271 94.6% $ 353,440 2097 (Parking) ............... 1 -- 0.0 467,271 94.6% $3,438,540 MTM .......................... 6 11,058 2.2 478,329 96.8% $ 531,624 Vacant ....................... -- 15,655 3.2 493,984 100.0% $1,139,443 --- ------- ----- TOTAL ........................ 181 493,984 100.0% === ======= ===== (1) Information obtained from underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 26 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four largest tenants representing 19.4% of the total net rentable square feet are: o V THEATER (not rated) occupies 30,883 square feet (6.3% of square feet, 3.6% of rental income) under a ten-year lease expiring on December 31, 2013. The current rental rate per square foot of $42.00 increases to $44.00 on January 1, 2010 for the remainder of the lease term. There are two 5-year options to renew the lease with the rental rate per square foot increasing to $46.00 and $48.00 during the two lease renewal periods, respectively. The tenant will have no right to an extended term if gross sales do not exceed $10,000,000 during the calendar year 2012. If the tenants gross sales do not exceed the performance threshold during the calendar year 2017 the tenant will have no right to the second five-year renewal option. V Theater is an entertainment and dining center providing shows and/or dining. Each section, or the entire facility, can be specifically tailored to meet group needs. The facility can accommodate groups of 20 to 2,000 people. The V Theater also holds up to 500 people in theater-style seating for meetings, concerts and promotional shows. A built-in stage and sound system is available for all presentations, shows or entertainment. The catering facilities can provide both on or off-site dining. o PLANET HOLLYWOOD (not rated) occupies 22,569 square feet (4.6% of square feet, 2.9% of rental income) under one ten-year lease expiring on August 31, 2014 and three 20-year leases all expiring on July 31, 2025. The current rental rates are $36.48 per square foot for the 19,187 square foot space, $80.00 per square foot for the 1,310 square foot space and $120.00 per square foot for the 1,202 square foot space and the 870 square foot space. Planet Hollywood is a national and international chain of restaurants and merchandise stores. In the United States there are restaurants in New York City -- Times Square, Orlando, Florida -- Walt Disney World, Myrtle Beach, South Carolina, Las Vegas, Nevada and Honolulu, Hawaii. Internationally, there are restaurants in cities in 15 countries including Paris, France, London, England and Tokyo, Japan. There are four merchandise stores in the United States and one in Guam. o STEVE WYRICK THEATER (not rated) occupies 21,609 square feet (4.4% of square feet, 1.9% of rental income) under a ten-year lease expiring on December 31, 2015. The initial rental rate per square foot of $32.21 increases to $33.71 on December 1, 2006, to $34.29 on December 1, 2007, to $36.70 on December 1, 2008, to $37.21 on December 1, 2009 and to $44.19 on December 1, 2010 through to the expiration date of December 31, 2015. The rental rate increases to $48.48 during the first five-year extension period and to $52.76 during the second five-year extension period. o GAP/GAP KIDS/BABY GAP ("The Gap") (NYSE: "GPS") (rated "Baa3" by Moody's and "BBB-" by S&P) occupies 20,872 square feet (4.2% of square feet, 2.6% of rental income) under a five-year lease renewal period expiring on August 31, 2010. The current rental rate per square foot of $45.51 remains constant during the remaining lease renewal period. There remains one 5-year option to renew the lease with the rental rate per square foot increasing by the lesser of 12% or the sum of the aggregate percentage increase in CPI for the current lease renewal period plus 4.5%. The Gap is a global specialty retailer selling casual apparel, accessories and personal care products for men, women and children under The Gap, Banana Republic and Old Navy brand names. The Gap operates 3,050 stores located in the United States, Canada, United Kingdom, France and Japan. The Gap employs approximately 152,000 people. As of the fiscal year ended January 29, 2005, The Gap reported revenue of approximately $16.3 billion, net income of $1.2 billion and stockholder equity of $4.9 billion. At the end of the third quarter ended October 29, 2005 The Gap reported revenue of $3.9 billion, net income of $775 million and stockholder equity of $5.4 billion. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 27 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Desert Passage Mortgage Loan is a $131.9 million, ten-year fixed rate loan secured by a first mortgage on an anchored retail and entertainment center located in Las Vegas, Clark County, Nevada. The Desert Passage Mortgage Loan is interest only for the first three years of the loan term, matures on November 1, 2015 and accrues interest at an annual rate, rounded to three decimal places, of 5.461%. THE BORROWER: o The Desert Passage Borrower is Boulevard Invest LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with at least two independent directors for which the Desert Passage Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 100% by Desert Passage Mezz LLC, a Delaware limited liability company, as the sole member of the Desert Passage Borrower. The borrower principals are Aby Rosen, Michael Fuchs, David Edelstein and Robert Futterman. o Aby Rosen and Michael Fuchs hold significant equity interests in RFR Holding LLC ("RFR") and RFR Realty LLC. Both companies, located in New York City, are involved in real estate investment, development and management. The Rosen and Fuchs families, from Frankfurt, Germany, have been involved in real estate investment and development throughout Europe for the past 50 years. The RFR companies started in the United States in 1991 and, through various affiliates, presently own approximately 5.0 million square feet of office and retail space, plus approximately 2,500 apartment units. o Mr. Edelstein is the head of Tristar Capital, a Manhattan based real estate firm that invests in both commercial and residential properties. Mr. Edelstein has operated in the New York metropolitan region for over 20 years. Mr. Futterman is the founder and CEO of Robert K. Futterman & Associates, a Manhattan based real estate firm specializing in retail leasing, investment sales, and advisory services for retailers and owners and developers. THE PROPERTY: o The Desert Passage Mortgaged Property consists of a fee simple interest in an anchored retail and entertainment center constructed in 2000. The improvements consist of an enclosed one- and two-story building containing 493,984 net rentable square feet situated on 18.49 acres. o The Desert Passage Mortgaged Property is currently occupied by 172 tenants ranging in size from kiosk (36) to 30,883 square feet, of which 114 are retail tenants, 16 are restaurant/entertainment tenants and 40 are kiosks or wall stores. Retail tenants over 10,000 square feet include The Gap, Urban Outfitters, Prana and Z Gallerie. Restaurant/entertainment tenants over 10,000 square feet include V Theater, Planet Hollywood, Steve Wyrick Theater, Krave, Cheeseburger Las Vegas, Trader Vic's, Commander's Palace and Todai Japanese Seafood Buffet. Additional improvements include an attached 11-level parking structure. o The Desert Passage Mortgaged Property is located in Las Vegas, Nevada on the east side of Las Vegas Boulevard, "The Strip". Adjacent properties include the following casinos: Paris Resort and Bally's to the north, Caesar's Palace to the northwest, Bellagio to the west, Monte Carlo and New York, New York to the southeast, and MGM Grand Hotel to the south. o The Desert Passage Borrower is generally required at its sole cost and expense to keep the Desert Passage Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o Related Urban Management Company, LLC manages the Desert Passage Mortgaged Property. Related Urban Management Company, LLC, founded in 1972 and headquartered in New York City, currently manages approximately 1.0 million square feet of commercial real estate and 21,000 apartment units located in nine states. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o $40,000,000 mezzanine piece held outside the trust. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 28 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o Following the scheduled payment date in October 2007, the Desert Passage Borrower is permitted to incur mezzanine financing ("Permitted Junior Mezzanine Loan") on a one-time basis only upon the satisfaction of the following terms and conditions including, without limitation, (a) no event of default has occurred and is continuing; (b) the amount of such Permitted Junior Mezzanine Loan will not exceed an amount which, when added to the outstanding principal balance of the Desert Passage Mortgage Loan and the Borrower mezzanine loan, results in a maximum loan-to-value ratio (based on a then current appraisal reasonably acceptable to the mortgagee) greater than 75% and a minimum debt service coverage ratio of 1.25x based on underwritten net income; (c) the loan term of the Permitted Junior Mezzanine financing shall be co-terminus with or no longer than the term of the Desert Passage Mortgage Loan; (d) the mezzanine lender will have executed a subordination and intercreditor agreement reasonably satisfactory to the mortgagee, (e) the Permitted Junior Mezzanine Loan will be secured by an equity pledge encumbering direct and indirect ownership interests in the Desert Passage Borrower (and will not be secured by any other collateral); (f) the Permitted Junior Mezzanine Lender will at all times comply with standard rating agency criteria for a qualified mezzanine lender; (g) the mortgagee will receive written confirmation from the rating agencies that the making of Permitted Junior Mezzanine Loan will not result in a downgrade, withdrawal or qualification of the then current ratings of any securities secured by the Desert Passage Whole Loan or a portion thereof; (h) the underwritten net cash flow will not be less than $42,000,000; and (i) the Desert Passage Borrower will have previously qualified for the release of all funds held in the Upfront Performance Reserve Account. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 29 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION DESERT PASSAGE - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 30 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 31 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- LOAN INFORMATION(1) - -------------------------------------------------------------------------------- LOAN SELLER: Barclays ORIGINAL PRINCIPAL BALANCE: $110,000,000 FIRST PAYMENT DATE: February 1, 2006 TERM/AMORTIZATION: 118/360 months INTEREST ONLY PERIOD: 24 months MATURITY DATE: November 1, 2015 EXPECTED MATURITY BALANCE: $96,787,658 BORROWING ENTITY: G&S Port Chester Retail 1 LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 115 payments Open: 3 payments UP-FRONT RESERVES: TAX/INSURANCE RESERVE: Yes IMMEDIATE REPAIR RESERVE(2): $2,395,765 OTHER RESERVE(3): $11,696,161 TI/LC RESERVE: $750,808 ONGOING MONTHLY RESERVES: TAX/INSURANCE RESERVE: Yes REPLACEMENT RESERVE: $2,457 TI/LC RESERVE(4): $9,769 LOCKBOX: Hard - -------------------------------------------------------------------------------- (1) The lender initially provided construction financing to the borrower on April 22, 2005. On December 15, 2005 ("Resizing Date"), after substantial completion of the improvements at the property, the initial loan was re-sized, certain of the loan documents were amended and restated and the lender provided the subject loan to the borrower. The loan information specified above reflects the terms and reserve deposits after the Resizing Date. (2) Immediate Repair Reserve deposit to be released upon completion of capital improvements, which generally relate to the completion of punch list items in connection with the property's construction. (3) Includes $10,000,000 earnout reserve deposit and $1,696,161 for tenants that are not in occupancy or not paying rent. The $1,696,161 reserve is also available for debt service. For information about the earnout, see "Additional Information -- Reverse Earnout". (4) Monthly reserve deposit is subject to adjustment based on the rollover of specified tenants ("Rollover Adjustments"). If at any time after a Rollover Adjustment, the balance of the TI/LC Reserve is at least $586,135, the borrower will be required to deposit the monthly Rollover Adjustments instead of the monthly reserve deposit specified above. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $110,000,000 CUT-OFF DATE LTV(1): 71.9% MATURITY DATE LTV: 69.6% UNDERWRITTEN DSCR(1): 1.20x MORTGAGE RATE: 5.463% - -------------------------------------------------------------------------------- (1) DSCR figures based on net cash flow unless otherwise noted. Cut-off Date LTV and Underwritten DSCR are calculated net of the $10 million earnout. LTV and DSCR based on full principal balance and current underwritten cashflow are 79.1% and 1.09x, respectively. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Anchored LOCATION: Port Chester, NY YEAR BUILT/RENOVATED: 2004/NAP NET RENTABLE SQUARE FEET: 294,868 CUT-OFF BALANCE PSF: $373 OCCUPANCY AS OF 12/01/2005(1): 100.0% OWNERSHIP INTEREST(2): Fee PROPERTY MANAGEMENT: Willow Park Enterprises, Inc. U/W NET CASH FLOW: $8,142,721 APPRAISED VALUE: $139,000,000 - -------------------------------------------------------------------------------- (1) The property is 100% leased. In-place occupancy as of February 14, 2006 is 92.6%. (2) See "Additional Information--The Property" below. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 32 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- FINANCIAL INFORMATION UNDERWRITTEN ------------ Effective Gross Income ....... $9,547,133 Total Expenses ............... $1,298,292 Net Operating Income (NOI) ... $8,248,841 Cash Flow (CF) ............... $8,142,721 DSCR on NOI .................. 1.22x DSCR on CF ................... 1.20x TENANT INFORMATION(1) RATINGS TOTAL % OF POTENTIAL % POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF RENT PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- -------- ---------- ----------- ---------- Stop and Shop ................ Ba1/BB+ 71,355 24.2% $33.00 $2,354,715 29.6% 08/31/2030 Loews Cinemas ................ Not Rated 70,000 23.7 $28.57 1,999,900 25.1 10/27/2030 Bed, Bath and Beyond ......... NR/BBB 36,000 12.2 $19.65 707,500 8.9 01/31/2021 DSW Shoe Warehouse ........... Not Rated 36,000 12.2 $19.17 690,120 8.7 10/31/2016 ------- ---- ---------- ---- TOTAL ..................... 213,355 72.4% $5,752,235 72.3% ======= ==== ========== ==== (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent and % of Potential Rent include base rent only and exclude common area maintenance and reimbursements. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- --------- ---------- ------------- ---------- 2012 ......................... 1 1,152 0.4% 1,152 0.4% $ 46,080 2014 ......................... 1 4,706 1.6 5,858 2.0% $ 199,111 2015 ......................... 2 33,500 11.4 39,358 13.3% $ 872,500 2016 ......................... 5 71,171 24.1 110,529 37.5% $1,552,499 2020 ......................... 1 4,005 1.4 114,534 38.8% $ 124,155 2021 ......................... 1 36,000 12.2 150,534 51.1% $ 707,500 2030 ......................... 2 141,355 47.9 291,889 99.0% $4,354,615 2031 ......................... 1 2,979 1.0 294,868 100.0% $ 104,265 --- ------- ----- TOTAL ........................ 14 294,868 100.0% === ======= ===== (1) Information obtained from underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 33 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four largest tenants, representing 72.4% of the total net rentable square feet, are: o STOP AND SHOP, a subsidiary of Koninklijke Ahold NV ("Ahold") (NYSE: "AHO") (rated "Ba1" by Moody's and "BB+" by S&P), occupies a total of 71,335 square feet (24.2% of square feet, 29.6% of rental income) under a lease expiring on August 31, 2030. Founded in 1914, Stop & Shop is the largest food retailer in New England and operates a chain of more than 350 stores throughout New England, New York and New Jersey. Stop and Shop's 66 Super Stop & Shop superstores offer a wider variety of food and nonfood items than its traditional grocery stores, including a large number of convenience and specialty departments, such as gas stations, full-service pharmacies, office supplies, portrait studios, and photo shops. Stop & Shop's owner, Ahold USA (a subsidiary of Ahold), runs several other East Coast supermarket chains, including two under the Giant Food banners. The 2004 annual results for Ahold concluded sales of $70.5 billion with net earnings of $149 million. o LOEWS CINEMA ("LOEWS"), a subsidiary of AMC Entertainment Inc. ("AMC") (not rated), occupies a total of 70,000 square feet (23.7% of square feet, 25.1% of rental income) under a lease expiring on October 27, 2030. AMC, the second largest movie theatre chain in the United States, acquired Loews in January 2006. AMC now owns approximately 415 theatres which house 5,672 screens in 29 states and the District of Columbia and 11 countries outside the United States. Loews operates under the names of Loews Theatres, Cineplex Odeon, Star Theatres and Magic Johnson Theatres in the United States. Loews was owned privately by Bain Capital, Carlyle Group and Spectrum Equity from 2004, until January 2006, when it was sold to Marquee Holdings, Inc, the parent company of AMC. o BED, BATH AND BEYOND (NYSE: "BBBY") (rated "BBB" by S&P) occupies a total of 36,000 square feet (12.2% of square feet, 8.9% of rental income) under a lease expiring on January 31, 2021. Founded in 1971, Bed Bath and Beyond Inc. operates a nationwide chain of superstores selling domestic merchandise and home furnishings, giftware, household items, and health and beauty care items. As of May 28, 2005, Bed, Bath and Beyond operated a total of 732 stores and had approximately 16,000 employees. The trailing twelve months results ending November 26, 2005, conclude sales of $5.59 billion with net earnings of $556 million. o DSW SHOE WAREHOUSE (NYSE: "DSW") (not rated) occupies a total of 36,000 square feet (12.2% of square feet, 8.7% of rental income) under a lease expiring on October 31, 2016. DSW Shoe Warehouse operates as a branded footwear retailer in the United States and offers a selection of brand name and designer dress, casual, and athletic footwear for women and men. DSW Shoe Warehouse also offers a complementary selection of handbags, hosiery, and other accessories. As of September 7, 2005, DSW Shoe Warehouse operated 187 stores in 32 states and also supplied 234 locations for other retailers. DSW Shoe Warehouse, formerly known as Shonac Corporation, was incorporated in 1969 and changed its name to DSW, Inc. in February 2005. DSW Shoe Warehouse is headquartered in Columbus, Ohio and is a subsidiary of Retail Ventures, Inc and employs approximately 4,800 people. For the trailing twelve months ending October 29, 2005, DSW Shoe Warehouse had sales of $1.09 billion and net income of $35.9 million. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 34 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Waterfront at Port Chester Mortgage Loan is a $110,000,000, 118-month loan secured by a first mortgage on a 294,868 square foot, anchored shopping center located in downtown Port Chester, New York. The Waterfront at Port Chester Mortgage Loan is interest only for the first 24 months, matures on November 1, 2015 and accrues interest at an annual rate of 5.463%. THE BORROWER: o The Waterfront at Port Chester Borrower is G&S Port Chester Retail 1 LLC, a New York limited liability company, and a single purpose bankruptcy remote entity with two independent directors for which the Waterfront at Port Chester Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 81% by Greg Wasser, 10% by Robert Weinberg, 8% by Lucas Traub and 1% by G&S Port Chester Corp. Gregg Wasser is the president and principal owner of G&S Investors. G&S Investors has been involved in all aspects of the real estate retail business (development, management, and leasing) for approximately 22 years. o The Waterfront at Port Chester Borrower is affiliated with the borrower under the Metro Plaza at Jersey Center Mortgage Loan. THE PROPERTY: o The Waterfront at Port Chester Mortgage Loan consists of a leasehold interest in an anchored shopping center containing a total of 294,868 net rentable square feet and situated on 9.2 acres. In addition to the leasehold interest, the owner of the land, the Village of Port Chester Industrial Development Agency ("Port Chester IDA") has granted the lender a lien on its fee interest in the underlying land. The collateral also includes a 73.8% fee interest in a single condominium unit consisting of a three-story parking garage. o The Waterfront at Port Chester Mortgaged Property (excluding the parking garage) is subject to a ground lease expiring October 2021. The ground lessor is the Port Chester IDA. Fixed rent under the ground lease is $1 per year and the Waterfront at Port Chester Borrower has an option to purchase the ground lessor's fee interest at a fixed purchase price of $1, exercisable at any time. In the event the Waterfront at Port Chester Borrower exercises its purchase option, the Payment in Lieu of Taxes Agreement with the Village of Port Chester and the Port Chester IDA will also terminate. o The Waterfront at Port Chester Mortgaged Property is part of the Marina Redevelopment Project. The Waterfront at Port Chester Mortgaged Property enjoys access to Westchester County, New York and Fairfield County, Connecticut through I-287 and I-95, two of New York metropolitan statistical area's major traffic corridors. The traffic count for I-287 at the exit to the Waterfront at Port Chester Mortgaged Property is in excess of 88,700 vehicles per day and I-95 at the exit to the Waterfront at Port Chester Mortgaged Property is in excess of 144,300 vehicles per day. o The Waterfront at Port Chester Borrower is generally required, at its sole cost and expense, to keep the Waterfront at Port Chester Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o Willow Park Enterprises, Inc., an affiliate of the Waterfront at Port Chester Borrower, is responsible for direct management and operation of the Waterfront at Port Chester Mortgaged Property. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o Equity owners of the Waterfront at Port Chester Borrower are permitted to obtain mezzanine financing, subject to obtaining approval from the lender, which approval shall not be unreasonably withheld if the conditions set forth in the loan documents are satisfied, including: (i) the mezzanine financing and the Waterfront at Port Chester Mortgage Loan must have a combined loan-to-value ratio (calculated as set forth in the related loan documents) of not more than 80% and a combined debt service coverage ratio (calculated as set forth in the related loan documents) of at least 1.10x; (ii) the mezzanine lender must enter into an acceptable intercreditor agreement with the lender; and (iii) the lender must receive written confirmation from each rating agency that rated the Certificates that such proposed mezzanine financing will not result in a downgrade, withdrawal or qualification of any rating then assigned to the Certificates. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 35 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- REVERSE EARNOUT: o On December 15, 2005, the Waterfront at Port Chester Borrower deposited $10,000,000 (such amount, less any disbursements from time to time, the "Earnout Deposit") in a reserve account held by the lender. All or a portion of the Earnout Deposit will be released upon request by the Waterfront at Port Chester Borrower, during the period commencing on July 1, 2007 and ending prior to January 1, 2009 (or January 1, 2010 if such period is extended pursuant to the related loan agreement; such period, as it may be extended to January 1, 2010, the "Earnout Period"), to the extent the Earnout Deposit then exceeds $110,000,000 minus the Qualified Loan Amount. The "Qualified Loan Amount" means the principal amount for which the then current adjusted debt service coverage ratio for the Waterfront at Port Chester Mortgage Loan would be 1.20x. The Waterfront at Port Chester Borrower may request a release of the Earnout Deposit twice during the Earnout Period and a third time if the Earnout Period is extended to January 1, 2010. The Earnout Deposit, if any, remaining after the later of the last permitted release request or the end of the Earnout Period will, at the lender's option either be (i) retained as collateral for the Waterfront at Port Chester Mortgage Loan and/or (ii) applied to reduce the outstanding principal balance of the Waterfront at Port Chester Mortgage Loan (with the Waterfront at Port Chester Borrower obligated to pay any related prepayment premium) or, in lieu of a partial prepayment, to partially defease the Waterfront at Port Chester Mortgage Loan (with the Waterfront at Port Chester Borrower obligated to pay any related costs and expenses). In lieu of the Earnout Deposit, the Waterfront at Port Chester Borrower may deliver to the lender an irrevocable letter of credit in a face amount equal to the amount of the Earnout Deposit, issued by a financial institution rated at least "A". ADDITION OF COLLATERAL: o At any time prior to the expiration of the Earnout Period, the Waterfront at Port Chester Borrower has a one time right to add additional real property as collateral for the Waterfront at Port Chester Mortgage Loan (the "Additional Property"), subject to the satisfaction of various conditions, including the following: (i) the Additional Property must be subject to the Land Acquisition and Disposition Agreement among the Waterfront at Port Chester Borrower, the Village of Port Chester and the Port Chester IDA; (ii) after giving effect to the addition of the Additional Property, the debt service coverage ratio for the Waterfront at Port Chester Mortgage Loan must be at least equal to the debt service coverage ratio as of the date immediately preceding the addition of the Additional Property; (iii) the lender must have received acceptable legal opinions of the Waterfront at Port Chester Borrower's counsel, including an update of the substantive nonconsolidation opinion delivered at origination, indicating that the addition of the Additional Property does not affect the opinions set forth in such opinions, and an opinion of counsel stating that the addition of the Additional Property does not constitute a "significant modification" of the Waterfront at Port Chester Loan or otherwise cause any "real estate mortgage investment conduit" to fail to maintain its status as a REMIC as a result of such addition; and (iv) the lender must receive written confirmation from each rating agency that rated the Certificates that such proposed additional collateral will not result in a downgrade, withdrawal or qualification of any rating then assigned to the Certificates. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 36 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION WATERFRONT AT PORT CHESTER - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 37 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 38 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL PRINCIPAL BALANCE: $55,000,000 FIRST PAYMENT DATE: March 1, 2006 TERM/AMORTIZATION: 60/0 months INTEREST ONLY PERIOD: 60 months MATURITY DATE: February 1, 2011 EXPECTED MATURITY BALANCE: $55,000,000 BORROWING ENTITY: SMI Real Estate, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 53 payments Open: 7 payments LOCKBOX: Springing - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $55,000,000 CUT-OFF DATE LTV: 52.1% MATURITY DATE LTV: 52.1% UNDERWRITTEN DSCR: 1.94x MORTGAGE RATE(1): 5.400% - -------------------------------------------------------------------------------- (1) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Hotel PROPERTY SUB TYPE: Full Service LOCATION: Sonoma, CA YEAR BUILT/RENOVATED: 1926/2005 NO. OF KEYS: 226 CUT-OFF BALANCE PER KEY: $243,363 OCCUPANCY AS OF 11/30/2005: 69.4% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Fairmont Hotels & Resorts (U.S.) Inc. U/W NET CASH FLOW: $5,839,801 APPRAISED VALUE: $105,600,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 39 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR TRAILING 12 (12/31/2003) (12/31/2004) (11/30/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $25,306,971 $25,724,462 $33,621,787 $36,090,544 Total Expenses ............... $22,712,646 $23,028,256 $26,894,740 $28,807,122 Net Operating Income (NOI) ... $ 2,594,325 $ 2,696,206 $ 6,727,047 $ 7,283,422 Cash Flow (CF) ............... $ 1,582,637 $ 1,668,009 $ 5,382,263 $ 5,839,801 DSCR on NOI .................. 0.86x 0.90x 2.23x 2.42x DSCR on CF ................... 0.53x 0.55x 1.79x 1.94x OPERATIONAL STATISTICS TRAILING 12 2003 2004 (11/30/2005)(1) UNDERWRITTEN ------- ------- --------------- ------------ Average Daily Rate (ADR) ..... $244.70 $253.27 $291.36 $312.00 Occupancy .................... 61.1% 59.0% 69.4% 71.0% RevPAR ....................... $149.60 $149.46 $202.27 $221.52 Penetration Rate ............. 104.9% 102.8% 117.1% 128.3% (1) Penetration Rate based on a December 31, 2005 Smith Travel and Research RevPAR. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 40 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Fairmont Sonoma Mission Inn & Spa Mortgage Loan is a $55.0 million, five-year loan secured by a first mortgage on a full service AAA Four Diamond Award winning luxury hotel located in Sonoma, Sonoma County, California. The loan term is interest only for the entire loan term, matures on February 1, 2011 and accrues interest at an annual interest rate, rounded to three decimal places, of 5.400%. THE BORROWER: o The Fairmont Sonoma Mission Inn & Spa Borrower is SMI Real Estate, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with two independent directors for which the Fairmont Sonoma Mission Inn & Spa Borrower's legal counsel has delivered a non-consolidation opinion. The owners are Crescent Real Estate Equities LP, a Delaware limited partnership (80.1%) and Sonoma Resort Holdings, LLC, a Delaware limited liability company (19.9%). Crescent Real Estate Equities, LP is an affiliate of Crescent Real Estate Equities Company, a real estate investment trust. The sponsor of the Fairmont Sonoma Mission Inn & Spa Mortgage Loan is Crescent Real Estate Equities Limited Partnership one of the largest publicly held real estate investment trusts in the nation. o Crescent Real Estate Equities Company is a fully integrated, self-managed real estate investment trust which has it assets and operations divided into four investment segments: Office, Resort/Hotel, Residential Development and Temperature-Controlled Logistics. The primary business of Crescent Real Estate Equities Company is its Office segment, which consists of 78 office properties with 32 million square feet located primarily in Dallas and Houston, with additional concentrations in Austin, Denver, Miami and Las Vegas. The Resort/Hotel segment consists of eight resort/hotel properties, including five luxury and destination fitness resorts and spas and three business-class hotels. The Residential Development segment consists of four residential development corporations that owned in whole or in part 23 residential development properties. The Temperature-Controlled Logistics segment consists of Crescent Real Estate Equities Company's unconsolidated 31.7% interest in 87 temperature-controlled logistics properties. At fiscal year-end December 31, 2004 Crescent Real Estate Equities Company reported $186.0 million in liquidity and $1.3 billion net worth. THE PROPERTY: o The Fairmont Sonoma Mission Inn & Spa Mortgaged Property consists of a fee simple interest in a full service AAA Four Diamond Award winning luxury hotel consisting of 10 freestanding two and three-story buildings containing 226 rooms with 326 parking spaces on 10 acres. The hotel amenities include 18,000 square feet of meeting room space, two outdoor pools, a whirlpool, a 43,000 square foot spa, a fitness center, business center, two restaurants, two bars, wine room and an 18-hole championship golf course. The guest room mix is comprised of 126 king rooms, 11 double queen rooms, 12 queen rooms, 16 double/double rooms, 52 studio suites, 8 one bedroom suites and 1 two bedroom suite. Some room amenities include a flat screen TV, telephone, granite counter tops, tile bathrooms and an oversized Jacuzzi tub in some rooms. o The Fairmont Sonoma Mission Inn & Spa Mortgaged Property is located 2.7 miles northwest of downtown Sonoma and the Sonoma Plaza, the town square which features restaurants, taverns, shops and other lodgings. It is 0.1 mile from the Boyes Hot Springs, which is a major demand generator in the area. The Fairmont Sonoma Mission Inn & Spa Mortgaged Property fronts Boyes Boulevard just off State Route 12 and is easily visible from the two roads. Primary access is via State Route 12 (Sonoma Highway), State Route 121, State Route 37 and US 101. The majority of the roads in the area are two-lane commercial highways. o The Fairmont Sonoma Mission Inn & Spa Owner is generally required at its sole cost and expense to keep the Fairmont Sonoma Mission Inn & Spa Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 41 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- PROPERTY MANAGEMENT: o Fairmont Hotels and Resorts (U.S.) Inc. purchased a 19.9% equity interest in the hotel for an aggregate investment of $19 million in 2002. One of North America's leading owner/operators of luxury hotels and resorts, Fairmont Hotels and Resort's portfolio consists of 87 luxury and first class properties with more than 34,000 guest rooms in Canada, the United States, Mexico, Bermuda, Barbados, United Kingdom, Monaco, Kenya and the United Arab Emirates, as well as two vacation ownership properties managed by Fairmont Heritage Place. Fairmont manages 49 distinctive city center and resort hotels such as Fairmont San Francisco, Fairmont Miramar Santa Monica, Fairmont Olympic, Fairmont Scottsdale Princess and The Savoy. Fairmont Hotels and Resorts also owns Delta Hotels Limited, Canada's largest first class hotel management company, which manages and franchises a portfolio of 38 city center and resort properties, in Canada. In addition to hotel management, Fairmont Hotels and Resorts holds real estate interests in 21 properties, two large undeveloped blocks and an approximate 24 percent investment interest in Legacy Hotels Real Estate Investment Trust which owns 24 properties. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The owners of the beneficial interests in the Fairmont Sonoma Mission Inn and Spa Borrower are permitted, upon the mortgagee's prior written consent to incur subordinate indebtedness ("Permitted Subordinate Debt") upon the satisfaction of the following terms and conditions including, without limitation, (a) the Permitted Subordinate Debt together with the Fairmont Sonoma Mission Inn and Spa Mortgage Loan will have a combined loan-to-value ratio of no greater than 60%; (b) the Permitted Subordinate Debt together with the Fairmont Sonoma Mission Inn and Spa Mortgage Loan will have combined debt service coverage ratio of at least 1.20x, based upon underwritten net cash flow; (c) all documents relating to the Permitted Subordinate Debt including, without limitation, an intercreditor agreement will be in form and substance reasonably satisfactory to the mortgagee; (d) the lender in connection with the Permitted Subordinate Debt will be a qualified lender; and (e) the mortgagee will received written confirmation from the rating agencies that such Permitted Subordinate Debt will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with the Fairmont Sonoma Mission Inn and Spa Mortgage Loan. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 42 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FAIRMONT SONOMA MISSION INN & SPA - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 43 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 44 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS TORRE MAYOR - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Barclays ORIGINAL A-2 NOTE PRINCIPAL BALANCE(1): $55,000,000 FIRST PAYMENT DATE: May 1, 2005 TERM/AMORTIZATION: 125/360 months INTEREST ONLY PERIOD(2): 12 months MATURITY DATE: September 1, 2015 EXPECTED A-2 MATURITY BALANCE: $49,242,597 BORROWING ENTITY: Two Mexican business trusts. See "The Borrower" below INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 123 payments Open: 2 payments UP-FRONT RESERVES: INSURANCE RESERVE: Yes TI/LC RESERVE: $8,000,000 PESO DEVALUATION RESERVE: $1,300,000 ONGOING MONTHLY RESERVES: TAX/INSURANCE RESERVE(3): Springing/Yes WITHHOLDING TAX RESERVE(4): Springing REPLACEMENT RESERVE(5): $21,738 TI/LC RESERVE(6): $155,000 LOCKBOX: Hard - -------------------------------------------------------------------------------- (1) The property also secures a pari passu A-1 note in the original principal amount of $55,000,000, a subordinate B note in the original principal amount of $20,000,000 and a subordinate C note in the maximum original principal amount of $20,000,000 which subordinate C note will only be issued if certain conditions are satisfied. None of the A-1 note, the B note or the obligation to make an advance under the C note is included in the trust. (2) Interest only until April 1, 2006. Principal and interest payments commence on May 1, 2006. (3) The property is currently exempt from real estate taxes, which exemption is expected to expire on December 31, 2006. If the exemption is not extended, monthly tax escrows will commence three months prior to the expected expiration date. (4) 50% of excess cash flow will be trapped, subject to a $450,000 cap (on a whole loan basis) commencing on any monthly payment date on which the debt service coverage ratio for the immediately preceding 12-month period is 1.10x or less and continuing until the occurrence of a monthly payment date on which the debt service coverage ratio for the immediately preceding 12-month period has been at least equal to 1.15x for two consecutive calendar quarters. (5) Monthly deposits commence May 1, 2007, subject to a $782,593 cap. (6) Monthly deposits of $155,000 commence on October 1, 2011 and continue for 17 payment dates. On January 1, 2012, additional monthly deposits of $175,000 commence for the next 17 payment dates. If either or both of the leases currently in place with Marsh Tenant and Deloitte Tenant (as defined below) are renewed, the TI/LC Reserve shall only be required to contain any remaining portion of the initial TI/LC deposit plus sufficient funds to cover any tenant inducements agreed between the Torre Mayor Borrower and the renewing tenant, as approved by lender. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION(1) - -------------------------------------------------------------------------------- WHOLE LOAN CUT-OFF DATE BALANCE: $130,000,000 SHADOW RATING (MOODY'S/S&P)(2): Aa3/AA A-1 AND A-2 NOTE CUT-OFF DATE BALANCE: $110,000,000 B NOTE CUT-OFF DATE BALANCE: $20,000,000 WHOLE LOAN WHOLE LOAN (EXCLUDING (INCLUDING B NOTE) B NOTE) ---------- ---------- CUT-OFF DATE LTV: 38.3% 45.3% MATURITY DATE LTV: 34.3% 40.5% UNDERWRITTEN DSCR(3): 1.80 x 1.52 x MORTGAGE RATE: 7.546% 7.546% - -------------------------------------------------------------------------------- (1) The property also secures a pari passu A-1 note in the original principal amount of $55,000,000, a subordinate B note in the original principal amount of $20,000,000 and a subordinate C note in the maximum original principal amount of $20,000,000, which subordinate C note will only be issued if certain conditions are satisfied. None of the A-1 note, the B note or the obligation to make an advance under the C note is included in the trust. The Whole Loan Cut-off Date Balance excludes the future advance under the C note, which has not yet been made. (2) Moody's Aa3 rating reflects the global local currency rating. (3) DSCR figures are based on an as-is underwritten net cash flow on an amortizing basis (commencing on May 1, 2006). On an interest only basis, the Whole Loan (excluding B note) DSCR is 1.98x and the Whole Loan (including B note) DSCR is 1.68x. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB TYPE: Central Business District LOCATION: Mexico City, Mexico YEAR BUILT/RENOVATED: 2003/NAP NET RENTABLE SQUARE FEET: 828,821 CUT-OFF BALANCE PSF: $133 OCCUPANCY AS OF 12/15/2005: 79.8% OWNERSHIP INTERESTS(1): Fee PROPERTY MANAGEMENT: Reichmann International Developments, S. de R.L. de C.V. U/W NET CASH FLOW: $16,672,861 APPRAISED VALUE(2): $287,220,000 - -------------------------------------------------------------------------------- (1) See "Other Material Information." (2) The stabilized value is $302,000,000 as of a January 25, 2007 stabilization date. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 45 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR TRAILING 12 STABILIZED AS-IS (12/31/2004) (11/30/2005) UNDERWRITTEN UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $13,764,153 $16,550,243 $27,755,969 $23,111,801 Total Expenses ............... $ 3,631,282 $ 4,004,286 $ 7,220,350 $ 5,015,928 Net Operating Income (NOI) ... $10,132,871 $12,545,957 $20,535,619 $18,095,873 Cash Flow (CF) ............... $10,132,871 $12,545,957 $18,902,182 $16,672,861 DSCR on NOI(1) ............... 1.09x 1.35x 2.21x 1.95x DSCR on CF(1) ................ 1.09x 1.35x 2.04x 1.80x (1) Based on an aggregate principal balance of $110,000,000 (the original whole loan principal balance, excluding the note B and the future advance to be evidenced by the note C). TENANT INFORMATION(1) % TOTAL RATINGS TOTAL % OF RENT POTENTIAL POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ----------- ------------- --------- -------- ------ ----------- --------- ---------- Deloitte & Touche ............ Not Rated 218,750 26.4% $29.59 $ 6,472,404 31.8% 06/30/2013 IXE Grupo Financiero ......... Not Rated 121,029 14.6 25.18 3,047.496 15.0 08/14/2016(2) Marsh Brockman ............... Baa2/BBB 96,057 11.6 30.34 2,914,464 14.3 03/31/2013 McKinsey & Company Inc. ...... Not Rated 29,095 3.5 30.10 875,772 4.3 04/30/2014 EMC Corporation .............. Not Rated/BBB 19,633 2.4 32.33 634,752 3.1 09/30/2015 ------- ---- ----------- ---- TOTAL/WEIGHTED AVERAGE ....... 484,564 58.5% $13,944,888 68.4% ======= ==== =========== ==== (1) Information obtained from the underwritten potential rent and underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. The actual tenants under the leases may be subsidiaries of the entities listed under Top Tenants. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent, and % Total Potential Rent include base rent only and exclude common area maintenance and reimbursements. (2) IXE Grupo Financiero occupies 78,577 square feet that expires on August 14, 2016 and 42,453 square feet that expires on August 14, 2008. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------ ----------- -------- -------- ---------- ------------- ----------- 2006 ......................... 1 4,338 0.5% 4,338 0.5% $ 140,928 2007 ......................... 1 527 0.1 4,865 0.6% $ 20,580 2008 ......................... 12 49,966 6.0 54,831 6.6% $ 1,197,713 2009 ......................... 12 46,349 5.6 101,181 12.2% $ 1,538,177 2010 ......................... 8 34,929 4.2 136,110 16.4% $ 1,201,236 2011 ......................... 3 16,157 1.9 152,266 18.4% $ 575,979 2012 ......................... 3 8,773 1.1 161,039 19.4% $ 284,652 2013 ......................... 16 344,095 41.5 505,134 60.9% $10,631,137 2014 ......................... 3 29,612 3.6 534,746 64.5% $ 974,748 2015 ......................... 2 29,751 3.6 564,497 68.1% $ 990,072 2016 ......................... 4 97,263 11.7 661,760 79.8% $ 2,818,080 MTM .......................... 1 32 0.0 661,792 79.8% $ 6,480 Vacant ....................... -- 167,029 20.2 828,821 100.0% -- --- ------- ----- TOTAL ........................ 66 828,821 100.0% === ======= ===== (1) Information obtained from the underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 46 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The Torre Mayor Mortgaged Property is currently 79.8% leased by 57 tenants at an average lease rate of $30.79 per square foot. The five largest office tenants, representing 58.5% of the total net rentable area, are, or are subsidiaries of: o DELOITTE & TOUCHE ("Deloitte") leases 218,750 square feet (26.4% of net rentable area, 31.8% of rental income) under a lease expiring on June 30, 2013. Deloitte is one of accounting's Big Four. Deloitte offers traditional audit and fiscal-oversight services to a multinational clientele. It also provides human resources and tax consulting services, as well as services to governments and international lending agencies working in emerging markets. Units include Deloitte & Touche (the United States accounting arm) and Deloitte Consulting. Consulting services account for 25% of Deloitte's sales. Deloitte is a private company, headquartered in New York, New York that employs over 121,283 people. Deloitte had sales of $18.2 million in 2005, an 11.0% increase from the previous year. o IXE GRUPO FINANCIERO ("IXE") leases 121,029 square feet (14.6% of net rentable area, 15.0% of rental income) under two separate leases: one that expires on August 14, 2008 (42,453 square feet) and the other on August 14, 2016 (78,577 square feet). IXE is a financial services firm, specializing in retail banking, corporate banking, trading and capital markets. IXE has 1,130 employees and is headquartered at the Torre Mayor Mortgaged Property. o MARSH BROCKMAN ("Marsh") (NYSE: MMC; rated "Baa2" by Moody's and "BBB" by S&P) leases 96,057 square feet (11.6% of net rentable area, 14.3% of rental income) under a lease expiring on March 31, 2013. Marsh is primarily a holding company which, through its subsidiaries and affiliates, provides clients with analysis, advice and transactional capabilities in the fields of risk and insurance services, investment management and consulting. Marsh is one of the largest insurance brokerage companies. Marsh's subsidiaries include Sedgwick Group; Guy Carpenter (reinsurance); Seabury & Smith (insurance program management services); and Marsh & McLennan Capital (insurance industry investment and advisory services). Marsh also owns Mercer Consulting Group, which provides human resources and management consulting worldwide, and Putnam, a large United States money manager. Marsh is headquartered in New York, New York and employs over 61,800 people worldwide. In 2004 Marsh had sales of $12.1 million, a 4.9% increase from the previous year, and a net income of $176 million, As of February 10, 2006, the stock price was $31.52 with a market cap of $17.01 billion. o MCKINSEY & COMPANY INC. ("McKinsey") leases 29,095 square feet (3.5% of net rentable area, 4.3% of rental income) under a lease expiring on April 30, 2014. McKinsey is one of the world's top management consulting firms. McKinsey provides a full spectrum of consulting services to corporations, government agencies, and foundations, including leadership training, operations analysis, and strategic planning. Its practice areas include such industries as banking, energy, manufacturing, and media, among many others. Founded by James McKinsey in 1926, McKinsey is owned by its partners. Headquartered in New York, New York, McKinsey has more than 11,500 employees and 80 offices in 44 countries around the world. o EMC CORPORATION ("EMC") (NYSE: "EMC") (rated "BBB" by S&P) leases 19,633 square feet (2.4% of net rentable area, 3.1% of rental income) under a lease expiring on September 30, 2015. EMC is a leading provider of RAID (redundant array of independent disks) storage systems. Banks, manufacturers, Internet service providers, retailers, and government agencies use EMC's systems to store and retrieve data. EMC also sells a line of network attached storage file servers, and a wide array of software designed to manage, protect, and share data. EMC sells its products directly and through distributors and manufacturers. EMC's biggest resale partner, PC leader Dell, sells co-branded EMC systems. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 47 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Torre Mayor Mortgage Loan is a $55 million, fixed rate loan maturing in 125 months evidenced by the Torre Mayor Commercial Mortgage Notes and secured by a first mortgage on a Class "A" office building located on Paseo de la Reforma in Mexico City, Mexico. The Torre Mayor Mortgage Loan is interest only for the first year of the loan, matures on September 1, 2015 and accrues interest at an annual interest rate of 7.546%. o The Torre Mayor Mortgage Loan is serviced under the pooling and servicing agreement relating to the Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2005-5. THE BORROWER: o The Torre Mayor Borrower, which executed and delivered the Torre Mayor Commercial Mortgage Notes, is comprised of two Mexican business trusts: (i) HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, Division Fiduciaria, acting solely and exclusively as trustee under the Torre Mayor Land Trust Agreement on behalf of the Torre Mayor Land Trust and (ii) Deutsche Bank Mexico, S.A., Institucion de Banca Multiple, Division Fiduciaria, acting solely and exclusively as trustee under the Torre Mayor Construction Trust Agreement on behalf of the Torre Mayor Construction Trust. Each trust comprising the Torre Mayor Borrower has an independent trustee. The Torre Mayor Borrower's Mexican legal counsel has delivered a Mexican law bankruptcy opinion, in lieu of a non-consolidation opinion, to the effect that the assets of each trust were separate and distinct from the assets of the settlors and the Torre Mayor Borrower would not be adjudicated insolvent because of an insolvency of any settlor or beneficiary. o Ownership of 70% of the beneficial interests of each of the trusts comprising the Torre Mayor Borrower was initially held by certain Reichmann family entities and three partners, each of which has transferred its respective beneficial interest in each of the trusts comprising the Torre Mayor Borrower to the Security Trustee (as described below) pursuant to the Security Trust (as described below). The remaining 30% of the beneficial interest in each Torre Mayor Borrower is currently held by Deutsche Immobilien Fonds AG ("DIFA"). Under German law, DIFA is prohibited from pledging its equity interests in the Torre Mayor Borrower and as a result, DIFA has entered into a Buy-Sell Agreement with lender with respect to its equity interests. Pursuant to the Buy-Sell Agreement, if lender has commenced any action to realize on the beneficial interests in the Torre Mayor Borrower upon the occurrence of an event of default under the Torre Mayor Whole Loan, lender has the option of offering either to acquire all of DIFA's beneficial interests in the Torre Mayor Borrower from DIFA at a price to be determined by lender or to sell all, but not less than all, of lender's interests in the Torre Mayor Borrower on the same terms (with appropriate adjustments to the sale price to account for the difference in the size of their respective interests). If DIFA should acquire lender's interests in the Torre Mayor Borrower under the buy-sell arrangement, in addition to paying the purchase price for such interests, DIFA is also obligated to pay the entire amount of principal and interest then-outstanding under the Torre Mayor Whole Loan, together with any fees or other amounts then owed to lender, including any applicable prepayment fees. THE PROPERTY: o The Torre Mayor Mortgaged Property consists of a fee interest in a Class "A" office building located in Mexico City, Mexico. The building was completed in 2003 and comprises a total of 55 floors with 828,821 net rentable square feet of which 795,147 square feet are office space and 33,674 square feet are retail space. o The Torre Mayor Mortgaged Property is located in the Mexico City central business district, accessible to public transportation and in close proximity to the headquarters of several international banks, the Mexico Stock Exchange, several consulates including the U.S. Embassy and full-service luxury hotels, including the Four Seasons Mexico City. o The Torre Mayor Mortgaged Property was built at a cost of $320 million ($386 per square foot) and is designed to meet the anti-earthquake requirements of both Mexico and California's building codes. Amenities include large column free floor plates from 18,300 square feet to 19,644 square feet, a constant 16-megavolt supply from three of the city's secondary electrical plants providing redundant supply and reduced rates based on the building receiving medium tension power rates, a pre-installed flexible telecommunications cabling system, a state-of-the-art building management system for ventilation and air-conditioning with triple air-filtration, water treatment/purification plant, international fire protection system with pressurized emergency fire escape stairways, and state-of-the-art heliport. The Torre Mayor Mortgaged Property also has a 13-level parking structure (including four levels below grade) with 1,902 spaces. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 48 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- o The Torre Mayor Borrower is generally required at its sole cost and expense to keep the Torre Mayor Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. In addition to the all risk insurance policy, the Torre Mayor Borrower is also required to maintain insurance against acts of terrorism, business interruption insurance, commercial general liability insurance and earthquake insurance. PROPERTY MANAGEMENT: o The Torre Mayor Mortgaged Property is managed by Reichmann International Developments, S de R.L. de C.V., an affiliate of the Torre Mayor Borrower. o Reichmann International is a real estate company that owns, manages, leases, acquires and develops commercial real estate. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Torre Mayor Whole Loan also includes a $20,000,000 B note, which is subordinated to the Torre Mayor Mortgage Loan and the A-1 pari passu note. The B note is not included in the trust and is currently held by Metropolitan Life Insurance Company. The holder of the B note is entitled under certain circumstances to exercise rights analogous to the rights of the Directing Certificateholder solely with respect to the Torre Mayor Whole Loan. Such rights include various consent rights with respect to material servicing decisions, a right to appoint or replace the special servicer, a right to cure defaults and an option to purchase the Torre Mayor Mortgage Loan under certain circumstances. Such rights may cease upon the making of the future advance described below, whereupon the holder of that advance will be entitled to exercise such rights. For more information with respect to these rights, see "Description of the Mortgage Pool--The Torre Mayor Whole Loan" in the prospectus supplement. o Under the terms of the Note Indenture pursuant to which the Torre Mayor Whole Loan was made, the Torre Mayor Borrower is permitted to have outstanding, at any time prior to the future advance described below, subordinated intercompany loans in the aggregate principal amount of up to $73,844,655.94. At any time after the future advance is made, the amount of subordinated intercompany loans permitted to be outstanding will be reduced to not more than $53,844,656.94. Each of the subordinated intercompany loans are unsecured, fully subordinate to the Torre Mayor Whole Loan and are assigned and pledged to lender pursuant to a series of Subordination and Intercreditor Agreements as additional security for the Torre Mayor Whole Loan. o The lenders under each of the subordinated loans (who are required to be indirect equity owners in the Torre Mayor Borrower) have the right, upon prior written notice to lender, to convert all or a portion of the applicable subordinated loan to equity, provided that all documentation effecting such conversion is acceptable to lender. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Note Indenture and other loan documents provide that lender has an obligation to make a future advance, which will be evidenced by a subordinate C note in an amount not to exceed $20 million (or be less than $2 million) at an interest rate to be determined by lender, upon satisfaction of certain conditions, including that: (i) the aggregate amount of the total advances under the Torre Mayor Whole Loan does not exceed $150 million; (ii) no event of default has occurred or is continuing under the Torre Mayor Whole Loan or would occur as a result of the funding of the subordinate C note; (iii) lender has received a confirmation from each rating agency rating the Certificates to the effect that the proposed advance will not result in a downgrade, qualification or withdrawal of the ratings on any of the Certificates; (iv) after giving effect to the subordinate C note, the ratio of the aggregate outstanding principal balance of the Torre Mayor Whole Loan to the appraised value of the Torre Mayor Mortgaged Property does not exceed 50%; (v) after giving effect to the subordinate C note, the underwritten net cash flow ("UNCF") of the Torre Mayor Mortgaged Property as of the date of the advance equals or exceeds $19.6 million; (vi) after giving effect to the subordinate C note, the ratio of the UNCF to the assumed principal and interest payments on the Torre Mayor Whole Loan during the following 12-month period based on the actual applicable interest rate and amortization payments based on a 30-year amortization schedule on the aggregate amount advanced equals or exceeds 1.55 to 1.0; and (vii) after giving effect to the subordinate C note, the maximum amount of the subordinated intercompany loans does not exceed $53,844,656.94. The subordinate C note will be secured by the same collateral that secures the Torre Mayor Whole Loan. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 49 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- o The right to make the future advance evidenced by the subordinate C note has been retained by Barclays Capital Real Estate Inc. and will not be transferred to the trust. Upon funding, the subordinate C note will be subordinate to the portion of the Torre Mayor Whole Loan consisting of the Torre Mayor Mortgage Loan and the A-1 note, as well as to the B note. The holder of the subordinate C note may be entitled to exercise various rights generally described above under "Current Mezzanine or Subordinated Indebtedness." For more information with respect to these rights, see "Description of the Mortgage Pool--The Torre Mayor Whole Loan" in the prospectus supplement. CASH MANAGEMENT ARRANGEMENT: o Cash Management is a modified hard lockbox arrangement under the Security Trust (described below) in which all tenants have been irrevocably instructed to make rent payments under the leases and all service payments under the administrative services contracts directly to the Security Trustee in the corresponding Collection Trust Accounts (Dollars) or Collection Trust Accounts (Pesos) (the "Collection Trust Accounts"). o From all rent, services and other payments received by the Security Trust in the Collection Trust Accounts, the Security Trustee will (i) on a daily basis, transfer to the settlors of the trust an amount equal to 15% (or such other value added tax rate then in effect) of the total amount of all such payments, which are to be applied by the relevant settlors of the trust to the payment of the value added tax relating to such payments and (ii) thereafter, convert all remaining rent payments from the Collection Trust Account (Pesos) into U.S. dollars and deposit such amounts in the Collection Trust Account (Dollars). o On the last business day of each week, so long as no event of default under the Torre Mayor Whole Loan is in effect, the Security Trustee will, after making the distributions discussed above, (i) transfer funds into the Torre Mayor Borrower's operating account for the payment of operating expenses and parking and management fees and expenses; (ii) transfer funds into a trust reserve account held by the Security Trustee for the payment of property taxes; and (iii) transfer all remaining funds into the Cash Management Account (a U.S. account controlled by lender), after having made any necessary currency conversions, in accordance with the terms of the Security Trust. SECURITY TRUST STRUCTURE: o At origination, Reichmann Mexico Chapultepec, S.A. de C.V.; RIMI, L.L.C., Establecimiento Permanente; Torre Mayor Partners, S. de R.L. de C.V.; Torre Mayor, S.A. de C.V.; Torre Mayor Holdings, L.L.C.; Torre Mayor Holdings, S.a.r.l.; and each borrower, as settlors and second place beneficiaries, Barclays Capital Real Estate Inc., acting in its capacity as Agent, on behalf and for the benefit of the Noteholders, as first place beneficiary, and the Security Trustee, in such capacity, entered into an Irrevocable Management and Security Trust Agreement (the "Security Trust") pursuant to which title to the following rights and assets were transferred to the Security Trustee to secure payment of the Torre Mayor Whole Loan and performance under all of the loan documents: (i) all collection rights to the cash flow generated by the Torre Mayor Mortgaged Property (including the Assets Lease (defined below), office and commercial space leases, and services, parking and other management agreements), (ii) the beneficiary interests (other than the beneficiary interests held by DIFA) in each of the trusts comprising the Torre Mayor Borrower and (iii) 99.9% of the equity interests in Torre Mayor, S.A. de C.V.(1) (one of the holders of the beneficial interests in each of the trusts comprising the Torre Mayor Borrower) and 70% of the equity interests in Reichmann Mexico Chapultepec, S.A. de C.V.(2) (one of the holders of the beneficial interests in each borrower). o The Security Trustee under the Security Trust Agreement is currently Banco J.P. Morgan, S.A., Institucion de Banca Multiple, J.P. Morgan Grupo Financiero, Division Fiduciaria, as trustee. - ---------- (1) Mexican law requires that an entity have a minimum of two (2) shareholders. In order to satisfy this requirement, one share was retained by a Reichmann entity. (2) The remaining 30% equity interests are held by DIFA and subject to the DIFA Buy-Sell Agreement. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 50 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- LEASE, ADMINISTRATIVE SERVICE CONTRACTS, RENTS AND PESO DEVALUATION: o The Torre Mayor Borrower may enter into new leases for space at the Torre Mayor Mortgaged Property without the lender's approval provided that: such lease (i) is not deemed to be a "Major Lease" (as described below) and such lease does not deviate from the approved standard form of lease; (ii) provides for rents and other payments that are deemed commercially reasonable and comparable to then-existing market rates; (iii) is an arm's length transaction with an entity that is not an affiliate of either borrower or carve-out guarantor; and (iv) is subordinate to the Torre Mayor Mortgage. Any Major Lease or any other lease not satisfying all the foregoing conditions requires lender's approval. A "Major Lease" is any lease (i) covering a full floor or more in the Torre Mayor Mortgaged Property; (ii) having a term of more than 15 years; or (iii) containing a peso devaluation clause different from the "approved standard clause." o The leases with each of the following tenants of the Torre Mayor Mortgaged Property contain peso devaluation clauses: (i) Marsh Brockman y Schuh, Agente de Seguros y de Fianzas, S.A. de C.V. ("Marsh Tenant"); (ii) Deloitte Mexico, Banco Internacional, S.A. ("Deloitte Tenant"); (iii) Institucion de Banca Multiple, Grupo Financiero Bital (now HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC), Scotiabank Inverlat, S.A.; (iv) McKinsey & Company Inc. Mexico S.C.; and (v) Starbuck's. At origination, the Torre Mayor Borrower deposited $1,300,000 into the Peso Devaluation Reserve Account, to make up for any shortfalls in debt service if the peso devaluation clauses in any of the existing leases are triggered. o If additional leases are signed that contain peso devaluation triggers or leases that denominate rent in Mexican pesos, lender has the right to increase the amounts held in the Peso Devaluation Reserve Account by the following formula: 115% of the average monthly rent in respect of one month payable under each such lease and related administrative services contract, collectively, over their respective terms taking into account fixed increases for all components of rent. OTHER MATERIAL INFORMATION: o Under the terms of the Torre Mayor Whole Loan, if any taxes, imposts or charges are imposed or assessed against the Torre Mayor Whole Loan, the Torre Mayor Borrower is obligated to pay the amount so imposed or assessed by the relevant taxing authority directly to such authority. The amount due to lender under the Torre Mayor Whole Loan will then be increased in an amount as may be necessary such that lender receives the total amount it would have received had no such taxes, imposts or charges were imposed or assessed. The Torre Mayor Borrower makes withholding payments at a rate equal to 4.9% per annum. o The Torre Mayor Mortgaged Property is subject to an assets lease, which is a ground lease of the land in the Torre Mayor Mortgaged Property by the Torre Mayor Land Trust to the Torre Mayor Construction Trust (the "Assets Lease"). Both the Torre Mayor Land Trust and the Torre Mayor Construction Trust are co-borrowers under the Torre Mayor Whole Loan and all interests of each entity in the Torre Mayor Mortgaged Property and the improvements are covered by the Mortgage. The rent collection rights of the Torre Mayor Land Trust under the Assets Lease have also been transferred to the Security Trustee pursuant to the Security Trust. o Please see "Risk Factors--Risks Related to the Mortgage Loans--Certain Considerations With Respect to the Torre Mayor Mortgage Loan" in the prospectus supplement for other material information about this loan. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 51 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION TORRE MAYOR - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 52 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 53 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL PRINCIPAL BALANCE: $52,715,219 FIRST PAYMENT DATE: February 1, 2006 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 36 months MATURITY DATE: January 1, 2016 EXPECTED MATURITY BALANCE: $47,370,663 BORROWING ENTITY: MMCO, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments LOCKBOX: Hard - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $52,715,219 CUT-OFF DATE LTV: 73.2% MATURITY DATE LTV: 65.8% UNDERWRITTEN DSCR: 1.20x MORTGAGE RATE: 5.650% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB TYPE: Central Business District LOCATION: Cleveland, OH YEAR BUILT/RENOVATED: 1900/1990 NET RENTABLE SQUARE FEET: 381,176 CUT-OFF BALANCE PSF: $138 OCCUPANCY AS OF 11/30/2005: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Borrower/Owner Managed U/W NET CASH FLOW: $4,381,793 APPRAISED VALUE: $72,000,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 54 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR ANNUALIZED (12/31/2003) (12/31/2004) (06/30/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $5,039,624 $5,039,624 $5,039,624 $4,878,640 Total Expenses ............... $ -- $ -- $ -- $ 97,573 Net Operating Income (NOI) ... $5,039,624 $5,039,624 $5,039,624 $4,781,067 Cash Flow (CF) ............... $5,039,624 $5,039,624 $5,039,624 $4,381,793 DSCR on NOI .................. 1.38x 1.38x 1.38x 1.31x DSCR on CF ................... 1.38x 1.38x 1.38x 1.20x TENANT INFORMATION(1) RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANT MOODY'S/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- ------ ---------- ----------- ---------- Medical Mutual of Ohio ....... Not Rated 381,176 100.0% $13.22 $5,039,620 100.0% 09/30/2020 ------- ----- ---------- ----- TOTAL ........................ 381,176 100.0% $5,039,620 100.0% (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent and % Potential Rent include base rent only and exclude common area maintenance and reimbursements. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- -------- ---------- ------------- ---------- 2020 ......................... 1 381,176 100.0% 381,176 100.0% $5,039,620 --- ------- ----- TOTAL ........................ 1 381,176 100.0% (1) Information obtained from underwritten rent roll. SUMMARY OF SIGNIFICANT TENANTS The single tenant representing 100.0% of the total net rentable square feet is: o MEDICAL MUTUAL OF OHIO (not rated) occupies 381,176 square feet (100.0% of square feet, 100.0% of rental income) under a 20-year lease expiring September 30, 2020 with four five-year renewal options with eighteen months written notice. The rental rate per square foot for the initial term of the lease is $13.22 and 100% of market rates during the renewal option periods. Medical Mutual of Ohio, formerly Blue Cross and Blue Shield of Ohio, is a private provider of health insurance products and other health related services. Founded in 1934, Medical Mutual of Ohio is one of the oldest health insurance providers in Ohio and is licensed in Indiana, Michigan and Pennsylvania. Medical Mutual of Ohio currently serves approximately 3.5 million clients in nine offices. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 55 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Medical Mutual Headquarters Mortgage Loan is a $52.7 million, ten-year fixed rate loan secured by a first mortgage on an ten-story office building (with a six-story annex) located in the central business district of Cleveland, Ohio. The Medical Mutual Headquarters Loan is interest only for the first three years of the loan term, matures on January 1, 2016 and accrues interest at an annual interest rate of 5.650%. THE BORROWER: o The Medical Mutual Headquarters Borrower is MMCO, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with an independent director for which the Medical Mutual Headquarters Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 100.0% by MMCO Holdings, LLC, a Delaware limited liability company, as the sole member of the Medical Mutual Headquarters Borrower. Through a series of intermediate ownership levels, equity ownership of the Medical Mutual Headquarters Borrower is eventually held by BentleyForbes Holdings, LLC, a Delaware limited liability company, which is owned by the Wehba family and two family related trusts. The borrower principal is GFW Trust, a California trust with C. Fred Wehba II, as trustee. o GFW Trust is an affiliate of BentleyForbes Holdings, LLC, a privately owned established national commercial real estate investment organization headquartered in Los Angeles. GFW Trust offers a complete range of commercial real estate services specializing in the acquisition and ownership of single-tenant income producing properties throughout the United States. GFW Trust focuses on office buildings, industrial/light manufacturing facilities and warehouses. As of December 31, 2004, GFW Trust's portfolio is valued at $612 million and includes 39 properties containing 4.9 million square feet. THE PROPERTY: o The Medical Mutual Headquarters Mortgage Property consists of a fee simple interest in a ten-story office building (with a six-story annex) listed on the National Register of Historic Buildings containing 381,176 square feet on 1.1 acres. The related building was originally built in 1900 and a new annex was added in 1950. The related building was renovated in 1990 at a cost of $21 million and a new cafeteria was added in 2005 at a cost of $2.7 million and a new $1.3 million fitness center will be completed in 2006. o The Property is located in the financial district of the Cleveland central business district, which is the center of all the governmental and cultural activities in the greater Cleveland Metro area. The Medical Mutual Headquarters Mortgaged Property is located at the corner of 9th Street and Prospect Avenue where Huron Avenue intersects both streets. 9th Street is a primary north/south artery through the heart of the Cleveland central business district and ends at Lake Erie to the north and intersects with I-90. Jacobs Field, home of the Cleveland Indians baseball team, is located two blocks south. o The Medical Mutual Headquarters Borrower is generally required at its sole cost and expense to keep the Medical Mutual Headquarters Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o The Medical Mutual Headquarters Mortgage Property is borrower/owner managed. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The owners of the beneficial interests in BentleyForbes Holdings, LLC (the indirect equity owner of the Medical Mutual Headquarters Borrower) are permitted to pledge the indirect equity interests in the Medical Mutual Headquarters Borrower or the guarantor or any direct or indirect legal or beneficial owner of the Medical Mutual Headquarters Borrower or guarantor to a Qualified Investor (as defined in the related Medical Mutual Headquarters loan agreement) in connection with a line of credit secured by such pledge ("Line of Credit"), provided that (i) no event of default exists; (ii) the mortgagee receives at least 30 days prior written notice; and (iii) any such financing is secured by all, or substantially all, of the equity interests owned by BentleyForbes Holdings, LLC. A foreclosure sale of any such pledge is also permitted upon the satisfaction of the following terms and conditions including, without limitation: (a) the mortgagee is given at least 60 days notice; (b) the transferee is a Qualified Investor; (c) following the foreclosure of the pledge, The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 56 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- the Medical Mutual Headquarters Mortgaged Property will be managed by a professional property management company approved by the mortgagee; (d) the Qualified Investor will have assumed the obligations of the guarantor under the Medical Mutual Headquarters Mortgage Loan documents with respect to all acts and events occurring or arising after the foreclosure of the pledge; (e) a non-consolidation opinion letter reasonably acceptable to the mortgagee and the rating agencies is delivered; and (f) the Medical Mutual Headquarters Borrower and all other applicable entities will comply with all of the requirements set forth in the Medical Mutual Headquarters Mortgage Loan documents. Any documents executed in connection with such a Line of Credit will restrict the foreclosure of any pledges in violation of the terms and conditions of the Medical Mutual Headquarters loan agreement. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 57 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MEDICAL MUTUAL HEADQUARTERS - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 58 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 59 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Barclays ORIGINAL PRINCIPAL BALANCE: $39,500,000 FIRST PAYMENT DATE: February 1, 2006 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 36 months MATURITY DATE: January 1, 2016 EXPECTED MATURITY BALANCE: $35,359,826 BORROWING ENTITY: Lansing Retail Center L.L.C. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 114 payments Open: 6 payments UP-FRONT RESERVES: TAX/INSURANCE RESERVE: Yes ONGOING MONTHLY RESERVES: TAX/INSURANCE RESERVE: Yes REPLACEMENT RESERVE (1): Springing LOCKBOX: Hard - -------------------------------------------------------------------------------- (1) Monthly deposits of $7,684.67 will commence if an event of default is continuing or if the property is not being adequately maintained. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $39,500,000 CUT-OFF DATE LTV: 57.0% MATURITY DATE LTV: 51.0% UNDERWRITTEN DSCR: 1.53x MORTGAGE RATE: 5.460% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Anchored LOCATION: Lansing, MI YEAR BUILT/RENOVATED: 1952/1999 NET RENTABLE SQUARE FEET: 461,081 CUT-OFF BALANCE PSF: $86 OCCUPANCY AS OF 01/26/2006: 95.4% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Corr Commercial Real Estate Inc. U/W NET CASH FLOW: $4,094,392 APPRAISED VALUE: $69,300,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 60 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR FULL YEAR (12/31/2003) (12/31/2004) (12/31/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $6,591,419 $6,479,468 $6,756,621 $6,840,102 Total Expenses ............... $2,091,388 $2,109,798 $2,281,676 $2,399,899 Net Operating Income (NOI) ... $4,500,031 $4,369,670 $4,474,945 $4,440,202 Cash Flow (CF) ............... $4,448,137 $4,331,670 $4,422,637 $4,094,392 DSCR on NOI .................. 1.68x 1.63x 1.67x 1.66x DSCR on CF ................... 1.66x 1.62x 1.65x 1.53x TENANT INFORMATION(1) RATINGS TOTAL % OF POTENTIAL % POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF RENT PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- -------- ---------- ----------- ---------- Kroger ....................... Baa2/BBB- 36,234 7.9% $ 3.77 $ 136,602 2.6% 06/30/2006 Linens 'N Things ............. B3/B 34,050 7.4% $12.50 425,625 8.0 01/31/2015 Jo-Ann Stores(2) ............. B2/B+ 30,077 6.5% $13.00 391,001 7.4 05/31/2014 CompUSA ...................... Not Rated 27,759 6.0% $13.25 367,807 6.9 08/27/2014 ------- ---- ---------- ---- TOTAL ........................ 128,120 27.8% $1,321,035 24.9% ======= ==== ========== ==== (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent and % of Potential Rent include base rent only and exclude common area maintenance and reimbursements. (2) Under a sublease with Office Depot (rated "Ba1" by Moody's and "BBB-" by S&P) for its entire space. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- -------- ---------- ------------- --------- 2006 ......................... 18 72,706 15.8% 72,706 15.8% $537,217 2007 ......................... 16 51,447 11.2 124,153 26.9% $518,865 2008 ......................... 8 32,362 7.0 156,515 33.9% $357,667 2009 ......................... 9 48,926 10.6 205,441 44.6% $587,551 2010 ......................... 12 55,533 12.0 260,974 56.6% $860,223 2011 ......................... 3 10,019 2.2 270,993 58.8% $ 85,994 2012 ......................... 1 15,300 3.3 286,293 62.1% $ 91,800 2013 ......................... 2 14,000 3.0 300,293 65.1% $173,404 2014 ......................... 3 71,836 15.6 372,129 80.7% $884,808 2015 ......................... 2 52,484 11.4 424,613 92.1% $679,093 2018 ......................... 1 11,060 2.4 435,673 94.5% $254,380 MTM .......................... 7 4,174 0.9 439,847 95.4% $ 35,220 Vacant ....................... -- 21,234 4.6 461,081 100.0% $248,918 --- ------- ----- TOTAL ........................ 82 461,081 100.0% === ======= ===== (1) Information obtained from underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 61 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four largest tenants, representing 27.8% of the total net rentable square feet, are: o KROGER (NYSE: "KR") (rated "Baa2" by Moody's and "BBB--" by S&P) occupies a total of 36,234 square feet (7.9% of square feet, 2.6% of rental income) under a lease expiring on June 30, 2006. Kroger operates more than 3,750 stores nationwide under more than two dozen banners (including approximately 2,530 supermarkets and multi-department stores). Kroger also runs nearly 800 convenience stores under names such as Quik Stop and Kwik Shop. A Kroger's subsidiary, Fred Meyer Stores, operates more than 125 supercenters, which offer groceries, general merchandise, and jewelry, in the western United States. While Kroger has diversified through acquisitions, adding jewelry and general merchandise, food stores still account for about 90% of sales. For the year ending 2005, Kroger had sales of $56.43 billion, a 4.9% growth from the previous year, and 289,000 employees. o LINENS 'N THINGS (NYSE: "LIN") (rated "B3" by Moody's and "B" by S&P) occupies a total of 34,050 square feet (7.4% of square feet, 8.0% of rental income) under a lease expiring on January 31, 2015. The home goods chain sells bedding, towels, housewares, and other home accessories, such as bath items and window treatments. Founded in 1975, Linens 'N Things is a national large format retailer of home textiles, housewares and home accessories and is headquartered in Clifton, New Jersey. As of December 31, 2005, Linens 'N Things was operating 542 stores in 47 states and six provinces across the United States and Canada. Brands include Braun, Krups, Calphalon, Laura Ashley, Croscill, Waverly, and the Linens 'N Things own label. Linens 'N Things is expanding the "things" (non-linens) it sells, as well as opening stores in additional United States (especially western) markets and closing its smaller stores. Linens 'N Things continues to focus its expansion efforts in the United States (95% of sales), opening more than 260 stores since 1999. Linens 'N Things is also growing in Canada, where it operates about 25 stores. According to reported preliminary results for the year ending 2005, Linens 'N Things had sales of $2.69 billion, a 1.2% net sales growth from the previous year, and an operating profit of approximately $61.3 million. o JO-ANN STORES ("Jo-Ann") (NYSE: "JAS") (rated "B2" by Moody's and "B+" by S&P) occupies a total of 30,077 square feet (6.5% of square feet, 7.4% of rental income) under a sublease with Office Depot expiring on May 31, 2014. Jo-Ann, founded in 1943 and headquartered in Hudson, Ohio, is the largest specialty retailer of fabrics in the United States. Jo-Ann sells fabrics and sewing supplies, craft materials, decorating and floral items, and seasonal goods. As of November 14, 2005, Jo-Ann operated 691 Jo-Ann Fabrics and Crafts traditional stores, and 154 Jo-Ann superstores. Most of the Jo-Ann stores, located mainly in strip shopping centers, operate under the Jo-Ann Fabrics and Crafts name. Jo-Ann also operates about 140 Jo-Ann superstores. For the year ending 2005, Jo-Ann had sales of $1.81 billion, a 4.5% sales growth from the previous year, net income of $46.2 million, and 22,250 employees. o COMPUSA (not rated) occupies a total of 27,759 square feet (6.0% of square feet, 6.9% of rental income) with a lease expiring on August 27, 2014. Founded in 1984, CompUSA is a leading electronics retailer with more than 250 outlets in 90 metropolitan markets throughout the United States and in Puerto Rico. In addition to personal computers, laptops, and computer accessories, the chain sells digital cameras, DVD players, handheld devices, televisions, and video game consoles. In addition to its big box retail stores, CompUSA sells more than 150,000 items through its Web site and it operates an online auction site. CompUSA is based in Dallas, Texas and owned by Mexican holding company, U.S. Commercial. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 62 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Frandor Shopping Center Mortgage Loan is a $39,500,000 ten-year loan secured by a first mortgage on a 461,081 square foot, grocery-anchored shopping center located in Lansing, Michigan. The Frandor Shopping Center Mortgage Loan is interest only for the first 36 months, matures on January 1, 2016 and accrues interest at an annual rate of 5.460%. THE BORROWER: o The Frandor Shopping Center Borrower is Lansing Retail Center L.L.C., a Michigan limited liability company, and a single purpose bankruptcy remote entity with one independent director for which the Frandor Shopping Center Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held by Lormax Stern Adams Venture, LLC ("Lormax Stern") (50%) and Frandorson Properties (50%). Lormax Stern consists of Stern Family L.L.C. (50%; Dan Stern and family trusts) and Lormax L.L.C. (50%; Chris Brochert and family trusts). Frandorson Properties consists of F. Jerome Corr (33%), Howard Corr Unified (33%), Thomas Corr Trust (33%) & Corr Commercial Real Estate, Inc. (1%). o In addition to leasing and development, Lormax Stern secures and negotiates construction and permanent financing through a network of leading regional, national and international institutions. Lormax Stern, based in Bloomfield, Michigan, currently owns 15 properties totaling approximately 4 million square feet, not including projects under development, all located in Michigan. THE PROPERTY: o The Frandor Shopping Center Mortgage Loan consists of a fee simple interest in a grocery-anchored shopping center containing a total of 461,081 net rentable square feet and situated on 34.5 acres. o The Frandor Shopping Center Mortgaged Property, originally the site of a golf course, was built by Frandorson Properties (controlled by the Corr family) in 1952. Through a joint venture between Lormax Stern Development Co. and the Corr family, the Frandor Shopping Center Mortgaged Property was gut renovated in 1998-1999, at a cost of approximately $17 million; the renovation included the reconfiguration of the property from an enclosed mall to an open-air shopping center with over 2,000 surface parking spaces, enabling shoppers direct access to each tenant. o The Frandor Shopping Center Mortgaged Property is located between two major thoroughfares of I-96 and I-69 directly off the M-127/496 connector. o The Frandor Shopping Center Borrower is generally required at its sole cost and expense to keep the Frandor Shopping Center Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o Corr Commercial Real Estate Inc., an affiliate of the Frandor Shopping Center Borrower, is responsible for the direct management and operation of the Frandor Shopping Center Mortgaged Property. Corr Commercial Real Estate Inc. has an onsite location at the Frandor Shopping Center Mortgaged Property. Corr Commercial Real Estate Inc. has been leasing space and managing properties since 1985. The key principals, Patrick Corr, Michael Corr and Jerry Corr have managed and developed over 25 properties totaling approximately 2 million square feet all located in the Lansing metropolitan statistical area . CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o Not Allowed. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 63 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION FRANDOR SHOPPING CENTER - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 64 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 65 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Barclays ORIGINAL PRINCIPAL BALANCE: $39,000,000 FIRST PAYMENT DATE: March 1, 2006 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 36 months MATURITY DATE: February 1, 2016 EXPECTED MATURITY BALANCE: $35,099,393 BORROWING ENTITY: G&S Investors/Jersey City L.P. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout: 1 payment GRTR 1% PPMT or Yield Maintenance: 117 payments Open: 2 payments UP-FRONT RESERVES: TAX/INSURANCE RESERVE: Yes IMMEDIATE REPAIR RESERVE: $13,713 ONGOING MONTHLY RESERVES: TAX/INSURANCE RESERVE(1): Yes REPLACEMENT RESERVE: $2,019 TI/LC RESERVE: $2,843 LOCKBOX: Hard - -------------------------------------------------------------------------------- (1) Up-front and ongoing reserve amounts relating to insurance premiums due under the BJ's Wholesale Club and Pep Boys leases were waived at origination. Commencing upon an event of default or if the respective leases cease to be in full effect, the lender may at its sole discretion require the Metro Plaza at Jersey City Borrower to make the payments. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $39,000,000 CUT-OFF DATE LTV: 75.0% MATURITY DATE LTV: 67.5% UNDERWRITTEN DSCR: 1.20x MORTGAGE RATE: 5.730% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Anchored LOCATION: Jersey City, NJ YEAR BUILT/RENOVATED: 1995 NET RENTABLE SQUARE FEET: 242,216 CUT-OFF BALANCE PSF: $161 OCCUPANCY AS OF 11/25/2005: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Willow Park Enterprises, Inc. U/W NET CASH FLOW: $3,258,230 APPRAISED VALUE: $52,000,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 66 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR TRAILING 12 (12/31/2003) (12/31/2004) (10/31/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $4,897,813 $4,808,669 $4,821,805 $4,616,687 Total Expenses ............... $1,415,782 $1,314,031 $1,318,937 $1,300,120 Net Operating Income (NOI) ... $3,482,031 $3,494,638 $3,502,868 $3,316,567 Cash Flow (CF) ............... $3,482,031 $3,494,638 $3,489,890 $3,258,230 DSCR on NOI .................. 1.28x 1.28x 1.29x 1.22x DSCR on CF ................... 1.28x 1.28x 1.28x 1.20x TENANT INFORMATION(1) RATINGS TOTAL % OF POTENTIAL % POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF RENT PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- -------- ---------- ----------- ---------- BJ's Wholesale Club .......... NR/NR 115,660 47.8% $10.50 $1,214,430 33.6% 05/01/2019 ShopRite Supermarkets ........ NR/NR 65,100 26.9 $20.00 1,302,000 36.1 04/30/2020 Bed, Bath & Beyond ........... NR/BBB 40,000 16.5 $20.50 820,000 22.7 08/31/2015 Pep Boys ..................... NR/B- 21,456 8.9 $12.82 275,066 7.6 11/30/2015 ------- ----- ---------- ----- TOTAL ........................ 242,216 100.0% $3,611,496 100.0% ======= ===== ========== ===== (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent and % of Potential Rent include base rent only and exclude common area maintenance and reimbursements. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- -------- ---------- ------------- ---------- 2015 ......................... 2 61,456 25.4% 61,456 25.4% $1,095,066 2019 ......................... 1 115,660 47.8 177,116 73.1% $1,214,430 2020 ......................... 1 65,100 26.9 242,216 100.0% $1,302,000 --- ------- ----- TOTAL ........................ 4 242,216 100.0% === ======= ===== (1) Information obtained from underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 67 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four tenants, representing 100.0% of the total net rentable square feet, are: o BJ'S WHOLESALE CLUB ("BJ's") (NYSE: "BJ") (not rated) occupies a total of 115,660 square feet (47.8% of square feet, 33.6% of rental income) under a lease expiring on May 1, 2019, with four 5-year renewal options. Founded in 1984, BJ's Wholesale Club is a warehouse club operator in the eastern United States, headquartered in Natick, Massachusetts. As of November 3, 2005, BJ's operated 161 warehouse clubs, 86 of which operate gasoline stations, and two ProFoods Restaurant Supply clubs. BJ's has reported that it plans to open 12 to 15 new clubs in 2006. For the trailing 12 months ended October 29, 2005, BJ's reported total revenues of $7.85 billion, net income of $123.9 million and had approximately 19,600 employees. o SHOPRITE SUPERMARKETS ("ShopRite") (not rated) occupies a total of 65,100 square feet (26.9% of square feet, 36.1% of rental income) under a lease expiring on April 30, 2020, with four 5-year renewal options. ShopRite is the largest retailer-owned cooperative in the United States and the largest employer in New Jersey. More than 50,000 people are employed by the distribution arm of ShopRite and there are 190 ShopRites. All ShopRite owners are members of Wakefern Food Corporation ("Wakefern"). Wakefern is owned by 38 independent grocers who operate more than 200 ShopRite supermarkets in seven eastern states, including New Jersey. More than half of ShopRite stores offer pharmacies. In addition to name-brand and private-label products (ShopRite, Chef's Express, Reddington Farms), Wakefern supports its members with advertising, merchandising, insurance, and other services. o BED, BATH AND BEYOND INC. (NYSE: "BBBY") (rated "BBB" by S&P) occupies a total of 40,000 square feet (16.5% of square feet, 22.7% of rental income) under a lease expiring on August 31, 2015, with one 5-year renewal option. Founded in 1971, Bed Bath and Beyond Inc., headquartered in Union, New Jersey, operates a nationwide chain of superstores selling domestic merchandise and home furnishings, giftware, household items, and health and beauty care items. As of May 28, 2005, Bed, Bath and Beyond Inc. operated a total of 732 stores and had approximately 16,000 employees. The trailing 12 months sales ending November 26, 2005 were $5.59 billion with net earnings of $556 million. o PEP BOYS (rated "B--" by S&P) occupies a total of 21,456 square feet (8.9% of square feet, 7.6% of rental income) under a lease expiring on November 30, 2015, with four 5-year renewal options. Founded in 1921, Pep Boys is a leading automotive retail and service chain which engages primarily in the retail sale of automotive parts, tires and accessories, automotive repairs and maintenance, and the installation of parts. As of January 29, 2005, Pep Boys operated 595 stores consisting of 584 supercenters and one service and tire center, with a total of 6,181 service bays as well as ten Pep Boys Express stores. Pep Boys reported total revenues of $2.3 billion as of January 29, 2005 with an operating profit of $75.1 million. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 68 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Metro Plaza at Jersey City Mortgage Loan is a $39.0 million, ten-year loan secured by a first mortgage on four single-story retail buildings located in Jersey City, New Jersey. The Metro Plaza at Jersey City Mortgage Loan is interest-only for the first 36 months, matures on February 1, 2016 and accrues interest at an annual rate of 5.730%. THE BORROWER: o The Metro Plaza at Jersey City Borrower is G&S Investors/Jersey City L.P., a New York limited partnership and a single purpose bankruptcy remote entity with two independent directors for which the Metro Plaza at Jersey City Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 90% by Gregg Wasser, 9% by Lucas Traub and 1% by Jersey City Associates, Inc. Jersey City Associates, Inc. is a New Jersey corporation 50% owned by Lucas Traub and 50% by Gregg Wasser. Jersey City Associates, Inc. is the general partner of the Metro Plaza at Jersey City Borrower and Gregg Wasser and Lucas Traub are limited partners. Gregg Wasser is the president and principal owner of G&S Investors. G&S Investors has been involved in all aspects of the real estate retail business (development, management, and leasing) for approximately 22 years. o The Metro Plaza at Jersey Center Borrower is affiliated with the borrower under the Waterfront at Port Chester Mortgage Loan. THE PROPERTY: o The Metro Plaza at Jersey City Mortgage Loan consists of a fee simple interest in four single-story buildings containing a total of 242,216 net rentable square feet and situated on 18.3 acres. o The Metro Plaza at Jersey City Borrower is generally required at its sole cost and expense to keep the Metro Plaza at Jersey City Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o Willow Park Enterprises, Inc., an affiliate of the Metro Plaza at Jersey City Borrower, is responsible for the direct management and operation of the Metro Plaza at Jersey City Mortgaged Property. PARTIAL RELEASE: o So long as no event of default has occurred and is continuing, the Metro Plaza at Jersey City Borrower may obtain the release of each of the four constituent parcels through a partial release, subject to satisfaction of, among other things, (i) the payment of a release price equal to 125% of allocated loan value, as adjusted, including related yield maintenance charges; (ii) after giving effect to the proposed release, the loan-to-value ratio for the remaining portion of the Metro Plaza at Jersey City Mortgaged Property must be no greater than the lesser of the loan-to-value ratio at origination and the loan-to-value ratio preceding the date of the proposed release; (iii) after giving effect to the proposed release, the debt service coverage ratio for the remaining portion of the Metro Plaza at Jersey City Mortgaged Property must be at least equal to the greater of the debt service coverage ratio at origination and the debt service coverage ratio for the preceding 12-month period; (iv) the lender must receive "no downgrade" confirmation from the rating agencies concerning the proposed partial release; and (v) after giving effect to the proposed release, no greater than 40% of the square footage at the Metro Plaza at Jersey City Mortgaged Property in any year will be subject to leases that expire prior to the maturity of the Metro Plaza at Jersey City Mortgage Loan. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o Not Allowed. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 69 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION METRO PLAZA AT JERSEY CITY - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 70 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 71 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS PLAZA ANTONIO - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL NOTE PRINCIPAL BALANCE: $39,000,000 FIRST PAYMENT DATE: February 1, 2006 TERM/AMORTIZATION: 180/360 months INTEREST ONLY PERIOD: 60 months MATURITY DATE: January 1, 2021 EXPECTED MATURITY BALANCE: $33,216,791 BORROWING ENTITY: SJC-PAAC, LLC; Plaza Antonio Acquisition Company, LLC; and RHP-Plaza Antonio, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout: 47 payments GRTR 1% PPMT or Yield Maintenance: 130 payments Open: 3 payments UP-FRONT RESERVES: TAX/INSURANCE RESERVE: Yes REPLACEMENT RESERVE: $325,000 ONGOING MONTHLY RESERVES: REPLACEMENT RESERVE: $1,321 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $39,000,000 CUT-OFF DATE LTV: 65.7% MATURITY DATE LTV: 55.9% UNDERWRITTEN DSCR: 1.20x MORTGAGE RATE: 6.083% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Shadow Anchored LOCATION: Rancho Santa Margarita, CA YEAR BUILT/RENOVATED: 1992/NAP NET RENTABLE SQUARE FEE: 105,645 CUT-OFF BALANCE PSF: $369 OCCUPANCY AS OF 12/01/2005: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Westar Management, Inc. U/W NET CASH FLOW: $3,398,593 APPRAISED VALUE: $59,400,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 72 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- FINANCIAL INFORMATION FULL YEAR FULL YEAR ANNUALIZED (12/31/2003) (12/31/2004) (09/30/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ....... $3,697,353 $3,910,945 $4,245,939 $4,512,486 Total Expenses ............... $1,011,618 $ 932,625 $1,060,083 $1,011,017 Net Operating Income (NOI) ... $2,685,735 $2,978,320 $3,185,856 $3,501,469 Cash Flow (CF) ............... $2,511,906 $2,812,341 $3,010,279 $3,398,593 DSCR on NOI .................. 0.95x 1.05x 1.13x 1.24x DSCR on CF ................... 0.89x 0.99x 1.06x 1.20x TENANT INFORMATION(1) RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS MOODY'S/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ------------------------------ ----------- --------- -------- ------ --------- ----------- ---------- CVS Corporation .............. A3/A- 12,586 11.9% $31.78 $399,983 11.0% 08/31/2028 Ruby's ....................... Not Rated 6,500 6.2 $25.59 $166,335 4.6 07/31/2012 Ball Park Pizza .............. Not Rated 4,642 4.4 $36.63 $170,036 4.7 12/31/2007 Relic ........................ Not Rated 4,584 4.3 $33.99 $155,798 4.3 03/31/2010 ------ ---- -------- ---- TOTAL ........................ 28,312 26.8% $892,152 24.4% ====== ==== ======== ==== (1) Information obtained from underwritten rent roll except for Ratings (Moody's/S&P) and unless otherwise stated. Credit Ratings are of the parent company whether or not the parent guarantees the lease. Calculations with respect to Rent PSF, Potential Rent, and % Potential Rent include base rent only and exclude common area maintenance and reimbursements. LEASE ROLLOVER SCHEDULE(1) # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------------------ ----------- -------- -------- ---------- ------------- --------- 2006 ......................... 4 7,642 7.2% 7,642 7.2% $294,613 2007 ......................... 9 15,682 14.8 23,324 22.1% $582,839 2008 ......................... 7 14,936 14.1 38,260 36.2% $325,450 2009 ......................... 5 11,284 10.7 49,544 46.9% $408,386 2010 ......................... 9 18,063 17.1 67,607 64.0% $680,840 2011 ......................... 1 1,542 1.5 69,149 65.5% $ 92,597 2012 ......................... 5 15,472 14.6 84,621 80.1% $575,423 2013 ......................... 2 3,028 2.9 87,649 83.0% $105,903 2014 ......................... 2 5,410 5.1 93,059 88.1% $183,202 2028 ......................... 1 12,586 11.9 105,645 100.0% $399,983 --- ----- TOTAL ........................ 45 100.0% === ===== (1) Information obtained from underwritten rent roll. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 73 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four largest tenants, representing 26.8% of the total net rentable square feet, are: o CVS CORPORATION (rated "A3" by Moody's and rated "A-" by S&P) occupies 12,586 square feet (11.9% of square feet, 11.0% of income) under a 25-year lease expiring on August 31, 2028. The current rental rate per square foot of $31.78 increases to $36.55 on September 1, 2013 and $42.03 on September 1, 2023. There are three 5-year renewal options to renew the lease with a rental rate per square foot determined at the then fair market CVS Corporation operates retail drugstores in the United States. CVS Corporation offers prescription drugs, as well as general merchandise, including over-the-counter drugs, beauty products and cosmetics, film and photofinishing services, seasonal merchandise, greeting cards, and convenience foods. CVS Corporation sells its products through CVS/pharmacy retail stores and online through CVS.com. CVS Corporation also provides pharmacy benefit management, mail order services, and specialty pharmacy services. As of October 1, 2005, the company operated 5,461 retail and specialty pharmacy stores in the United States. CVS Corporation was founded in 1963 and is headquartered in Woonsocket, Rhode Island. According to fiscal 2004 year end financial reports dated January 1, 2005, the corporation had $392.3 million liquidity and $6.99 billion stockholders equity. o RUBY'S (Breckenridge Food Systems, Inc.) (not rated) occupies 6,500 square feet (6.2% of square feet, 4.6% of income) on a 20-year lease expiring on July 31, 2012. The current rental rate per square foot of $25.59 increases 6% to $27.13 on August 1, 2007. There are two five-year renewal options to renew the lease with a rental rate per square foot determined at the then fair market. Breckenridge is an original tenant and current sub-landlord for Burger King, Ruby's and Bruegger's Bagels. John Gantes founded Breckenridge in 1980 and has developed or owned 31 Burger King locations, three Ruby's, ten Bruegger's Bagels locations and seven Applebee's locations in southern California. o BALL PARK PIZZA (not rated) occupies 4,642 square feet (4.4% of square feet, 4.7% of income) under a 16-year lease expiring on December 31, 2007. The current rental rate per square foot is $36.63. There is one 7-year renewal option to renew the lease with the rental rate per square foot determined at the then fair market. Ball Park Pizza has been a tenant since the shopping center opened. o RELIC (not rated) occupies 4,584 square feet (4.3% of square feet, 4.3% of income) under a 5-year lease expiring on March 31, 2010. The current rental rate per square foot of $33.99 increases 3% to $35.01 on August 1, 2006. There are no renewal options. Relic sells surfboards and surfing apparel. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 74 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Plaza Antonio Loan is a $39 million, fifteen-year fixed rate loan secured by a first mortgage on a shopping center consisting of two, two-story buildings and seven one-story buildings located in Rancho Santa Margarita, California. The Plaza Antonio Loan is interest only for the first five years of the loan term, matures on January 1, 2021 and accrues interest at an annual interest rate of 6.083%. THE BORROWER: o The Plaza Antonio Borrowers, SJC-PAAC, LLC (50.0%), Plaza Antonio Acquisition Company, LLC (25.0%) and RHP-Plaza Antonio, LLC (25.0%), are as tenants-in-common, are Delaware limited liability companies and single purpose bankruptcy remote entities for which the Plaza Antonio Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership in SJC-PAAC, LLC is held by SJC-PA Investments, LLC (100.0%), a Delaware limited liability company. Equity ownership in Plaza Antonio Acquisition Company, LLC is held by PAAC Holding Company (100.0%), a Delaware company. Equity ownership in RHP-Plaza Antonio, LLC is held by rolling Hills/Kato, Ltd (100.0%), a Delaware limited liability company. Through a series of intermediate ownership levels, equity ownership of the Plaza Antonio Borrower is eventually held by Robert T. Best, Peter J. Koetting, Mark D. Hulme and The San Juan Company, the borrower principals. o Robert T. Best, Peter J. Koetting, and Mark D. Hulme are the principals of Westar Associates. The San Juan company is affiliated with the O'Neill and Moiso families, who were the original owners of the 230,000 acre O'Neill ranch, which has been developed into Mission Viejo, Rancho Santa Margarita, Las Flores, Camp Pendleton and other developments. Mr. Best, founder and President of Westar, has approximately 30 years of commercial real estate experience. In 1980, Mr. Koetting joined Westar after being a city planner and redevelopment specialist for 5 years. Mr. Hulme joined Westar in 1991 after nine years of commercial real estate lending with Wells Fargo Bank and Chemical Bank. As of the fiscal year ended December 31, 2004, The San Juan Company reported $5.2 million liquidity of $5.2 million and a net worth of $59.4 million. THE PROPERTY: o The Plaza Antonio Mortgaged Property consists of a fee simple interest in a shopping center containing nine buildings built in 1992 containing 105,645 net rentable square feet with 761 parking spaces situated on 10.39 acres. The shopping center is shadow anchored by a 57,000 square foot Pavilion's Supermarket. The Plaza Antonio Mortgaged Property is 100% occupied by 45 tenants with CVS Corporation, Ruby's, Ball Park Pizza and Relic being the four largest tenants. The Plaza Antonio Mortgaged Property is part of a "Master Planned Community" in the Urban Village concept offering the elements and advantages of a small city plus the quality of life in a small village. o The Plaza Antonio Mortgaged Property fronts Antonio Parkway, a major six-lane artery which has an interchange with the 241 Freeway, a major north/south variable-width artery 0.5 miles south and which has an interchange with Santa Margarita Parkway, a major four-lane east/west thoroughfare 0.5 miles to the north. Coto De Caza is a major variable-width north/south four-lane parkway that terminates at Antonio Parkway across from Plaza Antonio. o The Plaza Antonio Borrower is generally required at its sole cost and expense to keep the Plaza Antonio Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o Westar Management, Inc., a borrower principal related entity, manages the Plaza Antonio Mortgaged Property. Westar Management, Inc. was founded in 1980 by Robert T. Best and is headquartered in Costa Mesa, California. Westar Management, Inc. currently manages 11 retail properties containing 1.66 million square feet. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 75 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The constituent party or parties of the beneficial interests in the Plaza Antonio Borrower are permitted, two years after the closing date of the Plaza Antonio Mortgage Loan, to incur subordinate indebtedness ("Permitted Subordinate Debt") upon the satisfaction of the following terms and conditions including, without limitation, (a) no event of default has occurred and is continuing; (b) the Permitted Subordinate Debt together with the Plaza Antonio Mortgage Loan will have a combined loan-to-value ratio of no greater than 70%; (c) the Permitted Subordinate Debt together with the Plaza Antonio Mortgage Loan will have combined debt service coverage ratio of at least 1.15x calculated on a trailing 12 month basis; (d) a subordination and intercreditor agreement will be in form and substance reasonably satisfactory to the mortgagee; (e) the lender in connection with the Permitted Subordinate Debt will at all times be a qualified transferee, as then defined by the rating agencies; and (f) the mortgagee will received written confirmation from the rating agencies that such Permitted Subordinate Debt will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with the Plaza Antonio Mortgage Loan. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 76 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION PLAZA ANTONIO - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 77 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- [GRAPHIC] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 78 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- SIGNIFICANT MORTGAGE LOANS MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America ORIGINAL NOTE PRINCIPAL BALANCE: $35,700,000 FIRST PAYMENT DATE: November 1, 2005 TERM/AMORTIZATION: 120/360 months MATURITY DATE: October 1, 2015 EXPECTED MATURITY BALANCE: $29,992,844 BORROWING ENTITY: Spirit SPE Portfolio 2005-4, LP INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments LOCKBOX: Hard - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $35,512,892 CUT-OFF DATE LTV: 68.6% MATURITY DATE LTV: 57.9% UNDERWRITTEN DSCR: 1.45x MORTGAGE RATE: 5.618% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB TYPE: Unanchored LOCATION: Various, TX YEAR BUILT/RENOVATED: Various (see table) NET RENTABLE SQUARE FEE: 374,964 CUT-OFF BALANCE PSF: $95 OCCUPANCY AS OF 12/31/2005: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Borrower/Owner Managed U/W NET CASH FLOW: $3,578,427 APPRAISED VALUE: $51,780,000 - -------------------------------------------------------------------------------- The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 79 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- FINANCIAL INFORMATION UNDERWRITTEN ------------ Effective Gross Income ....... $6,351,993 Total Expenses ............... $2,520,973 Net Operating Income (NOI) ... $3,831,020 Cash Flow (CF) ............... $3,578,427 DSCR on NOI .................. 1.55x DSCR on CF ................... 1.45x PROPERTY INFORMATION NET RENTABLE LEASE LOCATION YEAR BUILT SQUARE FEET ACRES EXPIRATION - ------------------------------ ---------- ------------ ----- ---------- Austin, TX ................... 2005 74,135 8.53 09/30/2025 Plano, TX .................... 2001 65,936 6.14 09/30/2025 Conroe (Shenandoah), TX ...... 2004 59,669 5.16 09/30/2025 Lewisville, TX ............... 1998 58,378 4.74 09/30/2025 Fort Worth, TX ............... 2003 58,997 5.60 09/30/2025 Grapevine, TX ................ 2000 57,849 4.80 09/30/2025 ------- Total ........................ 374,964 ======= SUMMARY OF SIGNIFICANT TENANTS The six Main Event Portfolio Mortgaged Properties are 100% occupied by Main Event Entertainment under a 20-year master lease expiring on September 30, 2025. The current rental rate per square foot is $11.60 on the Austin facility and $10.85 on the five other facilities. The rental rates per square foot increase every third year by the lesser of 5% or 1.25 times the percentage increase in consumer price index. There are two five-year options to renew the master lease under the same annual rental rate increases as during the initial master lease term. The master lease is triple net with Main Event Entertainment paying all expenses. o MAIN EVENT ENTERTAINMENT (not rated) operates six family entertainment centers located in Texas. The 60,000 to 75,000 square foot facilities offer bowling, billiards, laser tag and video games, together with a full service bar and grill with custom order buffets for business meetings and party gatherings. The Lewisville and Austin facilities also have glow-in-the-dark miniature golf. The Austin facility has an 8,500 square foot rock climbing arena. For 2004 and 2005 (August year to date), Main Event Entertainment reported revenue of approximately $19.9 million and $22.3 million, and net income of $7.0 million and $8.5 million, respectively. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 80 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Main Event Portfolio Mortgage Loan is a $35.7 million, ten-year fixed rate loan secured by a first mortgage on six family entertainment centers located in Lewisville, Grapevine, Plano, Fort Worth, Shenandoah and Austin, Texas. The Main Event Portfolio Mortgage Loan matures on October 1, 2015 and accrues interest at an annual rate of 5.618%. THE BORROWER: o The Main Event Portfolio Borrower is Spirit SPE Portfolio 2005-4, LP, a Delaware limited partnership and a single purpose bankruptcy remote entity with at lease one independent director. If Main Event Entertainment files for bankruptcy, ceases to operate or defaults under the master lease, the borrower principal will post a $2,750,000 letter of credit. The non-consolidation opinion was waived in favor of full recourse to the borrower principal should the borrower principal fail to post the letter of credit. Equity ownership of the Main Event Portfolio Borrower is held 99% by Spirit Limited Holdings, LLC, a Delaware limited liability company, and 1% by Spirit SPE General Holdings II, LLC, a Delaware limited liability company. Through a series of intermediate ownership levels, equity ownership is eventually held by Spirit Finance Corporation, a Maryland corporation. The borrower principal is Spirit Finance Corp. o Spirit Finance Corporation (NYSE: "SFC") (rated "Aaa" by Moody's and "AAA" by S&P) is a self-managed and self-advised real estate investment trust. The company operates a portfolio of 486 owned or financed single-tenant properties located in 38 states. Properties include restaurants, automotive stores, specialty retailers, drug stores, movie theaters, educational facilities and interstate travel plazas. As of the fiscal year ended December 31, 2004, Spirit Finance Corporation reported revenue of approximately $26.2 million, net income of $9.0 million and stockholder equity of $587.7 million. THE PROPERTIES: o The Main Event Portfolio Mortgage Properties contain a total of 374,964 net rentable square feet and are situated on a total of 34.97 acres. The Main Event Portfolio Borrower is generally required at its sole cost and expense to keep the Main Event Portfolio Mortgaged Properties insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. PROPERTY MANAGEMENT: o The Main Event Portfolio Mortgaged Property is managed by the owner/borrower. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. Future Mezzanine or Subordinate Indebtedness: o Not Allowed. The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 81 BANC OF AMERICA COMMERCIAL MORTGAGE INC. COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-1 - -------------------------------------------------------------------------------- STRUCTURAL AND COLLATERAL INFORMATION MAIN EVENT PORTFOLIO - -------------------------------------------------------------------------------- [MAP] The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-294-1322 or you e-mail a request to dg.prospectus_distribution@bofasecurities.com. The securities may not be suitable for all investors. Banc of America Securities LLC and the other Underwriters and their affiliates may acquire, hold or sell positions in these securities, or in related derivatives, and may have an investment or commercial banking relationship with the issuer. See "Important Notice Regarding the Offered Certificates" in this free writing prospectus. 82