Banc of America Merrill Lynch Commercial Mortgage
Filed: 12 Jul 06, 12:00am
FILED PURSUANT TO RULE 433 REGISTRATION STATEMENT NO.: 333-130755 STRUCTURAL AND COLLATERAL INFORMATION $1,798,186,000 (APPROXIMATE OFFERED CERTIFICATES) $1,978,746,808 (APPROXIMATE TOTAL COLLATERAL BALANCE) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 OFFERED CLASSES A-1, A-2, A-3, A-4, A-1A, A-M, A-J, B AND C CERTIFICATES BANC OF AMERICA COMMERCIAL MORTGAGE TRUST 2006-3 ISSUING ENTITY BANK OF AMERICA, NATIONAL ASSOCIATION SPONSOR AND MORTGAGE LOAN SELLER BANK OF AMERICA, NATIONAL ASSOCIATION MASTER SERVICER LNR PARTNERS, INC. SPECIAL SERVICER JULY 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 ---------- CITIGROUP GOLDMAN, SACHS & CO. BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- 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, Citigroup Global Markets Inc. 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 2006-3 - -------------------------------------------------------------------------------- ---------- 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 333-130755. 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 .................................................... 8 Mortgage Pool Characteristics as of the Cut-off Date General Characteristics ................................................ 9 Property Type .......................................................... 10 Property Location ...................................................... 11 Mortgage Pool Characteristics .......................................... 12 Prepayment Provisions Based on Outstanding Principal Balance ........... 15 Ten Largest Mortgage Loans Bowen Building ......................................................... 18 Saugus Colony .......................................................... 24 Herald Center .......................................................... 30 Southern Hills Mall .................................................... 36 One Stamford Forum ..................................................... 43 Republic Place ......................................................... 49 Rushmore Mall .......................................................... 55 FBI Regional HQ Building ............................................... 62 One Campus Drive ....................................................... 69 Phoenix Airport Marriott ............................................... 75 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- 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 FITCH/S&P(1) AMOUNT(2) BALANCE SUPPORT LIFE (YRS)(3) (MOS)(3) DATE(3) TYPE - ------- ------------ -------------- ------- ------- ------------- --------- ----------------- -------- A-1(4) AAA / AAA $ 42,000,000 2.123% 30.000% 2.52 1 - 54 February 10, 2011 Fixed(5) A-2(4) AAA / AAA $ 43,500,000 2.198% 30.000% 5.80 54 - 79 March 10, 2013 Fixed(5) A-3(4) AAA / AAA $ 60,000,000 3.032% 30.000% 7.93 79 - 108 August 10, 2015 Fixed(5) A-4(4) AAA / AAA $1,020,483,000 51.572% 30.000% 9.79 108 - 118 June 10, 2016 Fixed(5) A-1A(4) AAA / AAA $ 219,139,000 11.075% 30.000% 6.69 1 - 118 June 10, 2016 Fixed(5) A-M AAA / AAA $ 197,875,000 10.000% 20.000% 9.86 118 - 118 June 10, 2016 Fixed(5) A-J AAA / AAA $ 153,353,000 7.750% 12.250% 9.86 118 - 119 July 10, 2016 Fixed(5) B AA / AA $ 42,048,000 2.125% 10.125% 9.94 119 - 119 July 10, 2016 Fixed(5) C AA- / AA- $ 19,788,000 1.000% 9.125% 9.94 119-119 July 10, 2016 Fixed(5) NON-OFFERED CERTIFICATES(6) APPROX. EXPECTED CERTIFICATE % OF ASSUMED RATINGS BALANCE OR INITIAL APPROX. WEIGHTED PRINCIPAL FINAL ------------- NOTIONAL POOL CREDIT AVERAGE WINDOW DISTRIBUTION RATE CLASS FITCH/S&P(1) AMOUNT(2) BALANCE SUPPORT LIFE (YRS)(3) (MOS)(3) DATE(3) TYPE - ------- ------------- -------------- ------- ------- ------------- --------- --------------- ---------------- D A / A $ 32,154,000 1.625% 7.500% 9.94 119 - 119 July 10, 2016 Fixed(5) E A- / A- $ 17,314,000 0.875% 6.625% 9.94 119 - 119 July 10, 2016 Fixed(5) F BBB+ / BBB+ $ 22,261,000 1.125% 5.500% 9.94 119 - 119 July 10, 2016 Fixed(5) G BBB / BBB $ 17,314,000 0.875% 4.625% 9.94 119 - 119 July 10, 2016 Fixed(5) H BBB- / BBB- $ 22,261,000 1.125% 3.500% 9.94 119 - 119 July 10, 2016 Fixed(5) J BB+ / BB+ $ 12,367,000 0.625% 2.875% 9.94 119 - 119 July 10, 2016 Fixed(5) K BB / BB $ 7,421,000 0.375% 2.500% 9.94 119 - 119 July 10, 2016 Fixed(5) L BB- / BB- $ 7,420,000 0.375% 2.125% 9.94 119 - 119 July 10, 2016 Fixed(5) M B+ / B+ $ 2,473,000 0.125% 2.000% 9.94 119 - 119 July 10, 2016 Fixed(5) N NR / B $ 7,421,000 0.375% 1.625% 9.94 119 - 119 July 10, 2016 Fixed(5) O NR / B- $ 4,947,000 0.250% 1.375% 9.94 119 - 119 July 10, 2016 Fixed(5) P NR / NR $ 27,207,808 1.375% 0.000% 10.00 119 - 120 August 10, 2016 Fixed(5) XW AAA / AAA $1,978,746,808 N/A N/A (7) N/A N/A Variable Rate(7) (1) Ratings shown are those of Fitch Ratings 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 5.0%. (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, 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 80 Mortgage Loans, representing approximately 88.9% of the aggregate principal balance of the pool of Mortgage Loans as of the Cut-off Date. Loan Group 2 will consist of 17 Mortgage Loans, representing approximately 11.1% of the aggregate principal balance of the pool of Mortgage Loans as of the Cut-off Date. Loan Group 2 will include approximately 100.0% of the aggregate principal balance of all the Mortgage Loans secured by multifamily 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 and XW Certificates, interest distributions on Class A-1, A-2, A-3, A-4 and XW Certificates 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 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 have been reduced to zero. However, on and after any distribution date on which the certificate balances of the Class A-M through Class P 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 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 and P 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) 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. (7) The Class XW 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 XW 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 XW Certificates, as the case may be, as described in the prospectus supplement. The interest rates applicable to the Class XW 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 2006-3 - -------------------------------------------------------------------------------- STRUCTURE SCHEMATIC* - -------------------------------------------------------------------------------- Class XW(1) --------- ----------- Class A-1 AAA/AAA $42.0MM 2.123% --------- ----------- Class A-2 AAA/AAA $43.5MM 2.198% --------- ----------- Class A-3 AAA/AAA $60.0MM 3.032% --------- ----------- Class A-4 AAA/AAA $1,020.4MM 51.572% --------- ----------- Class A-1A AAA/AAA $219.1MM 11.075% --------- ----------- Class A-M AAA/AAA $197.8MM 10.000% --------- ----------- Class A-J AAA/AAA $153.3MM 7.750% --------- ----------- Class B AA/AA $42.0MM 2.125% --------- ----------- Class C AA-/AA- $19.7MM 1.000% --------- ----------- Class D(1) A/A $32.1MM 1.625% --------- ----------- Class E(1) A-/A- $17.3MM 0.875% --------- ----------- Class F(1) BBB+/BBB+ $22.2MM 1.125% --------- ----------- Class G(1) BBB/BBB $17.3MM 0.875% --------- ----------- Class H(1) BBB-/BBB- $22.2MM 1.125% --------- ----------- Class J(1) BB+/BB+ $12.3MM 0.625% --------- ----------- Class K(1) BB/BB $7.4MM 0.375% --------- ----------- Class L(1) BB-/BB- $7.4MM 0.375% --------- ----------- Class M(1) B+/B+ $2.4MM 0.125% --------- ----------- Class N(1) NR/B $7.4MM 0.375% --------- ----------- Class O(1) NR/B- $4.9MM 0.250% --------- ----------- Class P(1) NR/NR $27.2MM 1.375% --------- ----------- - ---------- * Classes are not drawn to scale. Ratings shown are those of Fitch Ratings and Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., respectively. 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 2006-3 - -------------------------------------------------------------------------------- TRANSACTION TERMS - -------------------------------------------------------------------------------- NOTE: CAPITALIZED TERMS USED BUT NOT OTHERWISE DEFINED HEREIN HAVE THE MEANINGS ASCRIBED TO THEM IN THE PROSPECTUS SUPPLEMENT DATED JULY __ 2006. ISSUE TYPE REMIC. Class A-1, A-2, A-3, A-4, A-1A, A-M, A-J, B and C 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 August 1, 2006. All percentages presented herein are approximate. MORTGAGE POOL The Mortgage Pool consists of 97 Mortgage Loans (the "Mortgage Loans") with an aggregate balance as of the Cut-off Date of $1,978,746,808 (the "Initial Pool Balance"). For purposes of making distributions to the Class A-1, A-2, A-3, A-4 and A-1A Certificates, 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 80 Mortgage Loans, representing approximately 88.9% of the Initial Pool Balance as of the Cut-off Date. Loan Group 2 will consist of 17 Mortgage Loans, representing approximately 11.1% of the Initial Pool Balance as of the Cut-off Date. The Mortgage Loans are secured by 120 properties (the "Mortgaged Properties") located throughout 30 states and the District of Columbia. DEPOSITOR Banc of America Commercial Mortgage Inc. ISSUING ENTITY Banc of America Commercial Mortgage Trust 2006-3. SPONSOR Bank of America, National Association ("Bank of America" or "BofA"). MORTGAGE LOAN SELLER Bank of America. UNDERWRITERS Banc of America Securities LLC is acting as lead manager and sole bookrunner with respect to all classes of Offered Certificates. Citigroup Global Markets Inc. and Goldman, Sachs & Co. are acting as co-managers. TRUSTEE Wells Fargo Bank, N.A. MASTER SERVICER Bank of America, National Association. See "The Servicers--The Master Servicer" in the prospectus supplement. SPECIAL SERVICER LNR Partners, Inc. See "The Servicers--The Special Servicer" in the prospectus supplement. RATING AGENCIES Fitch Ratings ("Fitch") 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 and $100,000 minimum for the Class B and C Certificates. SETTLEMENT DATE On or about August __, 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 September 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. 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 2006-3 - -------------------------------------------------------------------------------- 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 and XW Certificates 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. Generally, the Class A-1, A-2, A-3 and A-4 Certificates 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 balances of the Class A-1, A-2, A-3, A-4 or A-1A Certificates has been reduced to zero. If, due to losses, the certificate balances of the Class A-M through Class P 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 pro rata without regard to loan groups. LOSSES To be applied first to the Class P 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. However, with respect to the One Stamford Forum Whole Loan (as to which only the related Note A is included in the trust fund), losses will be applied first to the Note B, and then to the related Note A. Losses allocable to the pro rata portion of the losses allocable to the One Stamford Forum Note A 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. 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. 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. 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 2006-3 - -------------------------------------------------------------------------------- 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. 7 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- 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 CITIGROUP GLOBAL MARKETS INC. GOLDMAN, SACHS & CO. Paul Vanderslice Emily Brooks (212) 723-6156 (Phone) (212) 902-7294 (Phone) (212) 723-8599 (Fax) (212) 346-3594 (Fax) paul.t.vanderslice@citigroup.com emily.brooks@gs.com Angela Vleck Scott Wisenbaker (212) 816-8087 (Phone) (212) 902-2858 (Phone) (212) 816-8307 (Fax) (212) 346-3594 (Fax) angela.j.vleck@citigroup.com 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. 8 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- GENERAL CHARACTERISTICS MORTGAGE POOL ---------------- Number of Mortgage Loans ....................................................... 97 Number of Mortgaged Properties ................................................. 120 Aggregate Balance of all Mortgage Loans(1) ..................................... $1,978,746,808 Number of Balloon Payment Mortgage Loans(2) .................................... 85 Aggregate Balance of Balloon Payment Mortgage Loans(2) ......................... $1,296,124,821 Number of Anticipated Repayment Date Mortgage Loans(3) ......................... 5 Aggregate Balance of Anticipated Repayment Date Mortgage Loans(3) .............. $37,167,041 Number of Interest Only Mortgage Loans(3) ...................................... 12 Aggregate Balance of Interest Only Mortgage Loans(3) ........................... $682,621,987 Maximum Cut-off Date Balance ................................................... $115,021,987 Minimum Cut-off Date Balance ................................................... $1,454,551 Average Cut-off Date Balance ................................................... $20,399,452 Number of Cross-Collateralized and Cross-Defaulted Loan Pools. ................. 1 Maximum Balance for a Group of Cross-Collateralized and Cross-Defaulted ........ $15,000,000 Weighted Average Cut-off Date LTV Ratio ........................................ 70.4% Maximum Cut-off Date LTV Ratio ................................................. 80.0% Minimum Cut-off Date LTV Ratio. ................................................ 36.4% Weighted Average U/W DSCR ...................................................... 1.37x Maximum U/W DSCR ............................................................... 2.07x Minimum U/W DSCR ............................................................... 1.03x Weighted Average LTV at Maturity or Anticipated Repayment Date ................. 65.3% Range of Mortgage Loan Interest Rates. ......................................... 4.947% to 6.607% Weighted Average Mortgage Loan Interest Rate ................................... 5.946% Range of Remaining Term to Maturity or Anticipated Repayment Date (months) ..... 52 to 120 Weighted Average Remaining Term to Maturity or Anticipated Repayment Date ...... 113 LOAN GROUP 1 LOAN GROUP 2 ---------------- ---------------- Number of Mortgage Loans ....................................................... 80 17 Number of Mortgaged Properties ................................................. 101 19 Aggregate Balance of all Mortgage Loans(1) ..................................... $1,759,607,194 $219,139,615 Number of Balloon Payment Mortgage Loans(2) .................................... 69 16 Aggregate Balance of Balloon Payment Mortgage Loans(2) ......................... $1,191,985,207 $104,139,615 Number of Anticipated Repayment Date Mortgage Loans(3) ......................... 5 0 Aggregate Balance of Anticipated Repayment Date Mortgage Loans(3) .............. $37,167,041 $0 Number of Interest Only Mortgage Loans(3) ...................................... 11 1 Aggregate Balance of Interest Only Mortgage Loans(3) ........................... $567,621,987 $115,000,000 Maximum Cut-off Date Balance ................................................... $115,021,987 $115,000,000 Minimum Cut-off Date Balance ................................................... $1,454,551 $2,200,000 Average Cut-off Date Balance ................................................... $21,995,090 $12,890,566 Number of Cross-Collateralized and Cross-Defaulted Loan Pools. ................. 1 0 Maximum Balance for a Group of Cross-Collateralized and Cross-Defaulted ........ $15,000,000 $0 Weighted Average Cut-off Date LTV Ratio ........................................ 70.2% 71.6% Maximum Cut-off Date LTV Ratio ................................................. 80.0% 79.9% Minimum Cut-off Date LTV Ratio. ................................................ 41.3% 36.4% Weighted Average U/W DSCR ...................................................... 1.35x 1.50x Maximum U/W DSCR ............................................................... 2.07x 1.73x Minimum U/W DSCR ............................................................... 1.03x 1.20x Weighted Average LTV at Maturity or Anticipated Repayment Date ................. 64.9% 67.9% Range of Mortgage Loan Interest Rates. ......................................... 5.220% to 6.607% 4.947% to 6.448% Weighted Average Mortgage Loan Interest Rate ................................... 6.019% 5.363% Range of Remaining Term to Maturity or Anticipated Repayment Date (months) ..... 77 to 120 52 to 119 Weighted Average Remaining Term to Maturity or Anticipated Repayment Date ...... 117 82 - --------- (1) Subject to a permitted variance of plus or minus 5.0%. (2) Four Mortgage Loans, Loan Nos. 59625, 59612, 3400285 and 59784, representing 1.5% of the Initial Pool Balance (1.7% of the Group 1 Balance) are ARD Loans and balloon Mortgage Loans. (3) One Mortgage Loan, Loan No. 59761 (such Loan Number as set forth in Annex A to the prospectus supplement), representing 0.4% of the Initial Pool Balance (0.4% of the Group 1 Balance), respectively, is both an ARD Loan and an Interest Only Mortgage Loan which results in such Mortgage Loan appearing in each category. * One Mortgage Loan, referred to as the One Stamford Forum Mortgage Loan, Loan No. 3401226 (such Loan Number is set forth in Annex A to the prospectus supplement), representing 5.0% of the Initial Pool Balance (5.7% of the Group 1 Balance) is part of a split loan structure evidenced by a senior note referred to as "Note A" and a subordinate note referred to as "Note B". Only Note A is included in the Trust. The Cut-off Date Balance of this Mortgage Loan was calculated based only upon Note A. 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 the One Stamford Forum Mortgage Loan, except as otherwise noted herein, was calculated based upon Note A and excludes Note B. Such ratios would be lower (in the case of debt service coverage ratios) and higher (in the case of loan-to-value ratios) if Note B were included. For purposes of weighting such debt service coverage ratios and loan-to-value ratios, such weighting is based solely on the outstanding principal balance of Note A. 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. 9 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* [THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.] Industrial 0.4% Retail 38.9% Office 35.2% Multifamily 11.1% Hotel 8.7% Self Storage 2.6% Other 1.8% Mixed Use 1.3% 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 39 $ 770,524,294 38.9% 1.30x 1.12x / 1.76x 71.5% 55.1% / 80.0% 5.924% Anchored 23 667,947,128 33.8 1.30x 1.12x / 1.60x 71.7% 58.9% / 80.0% 5.937% Unanchored 12 86,670,407 4.4 1.31x 1.15x / 1.76x 69.4% 55.1% / 80.0% 5.813% Shadow Anchored 4 15,906,759 0.8 1.24x 1.22x / 1.29x 72.4% 63.2% / 76.8% 5.998% Office 21 696,568,490 35.2 1.40x 1.03x / 2.07x 67.7% 46.1% / 79.9% 6.012% Multifamily 19 219,139,615 11.1 1.50x 1.20x / 1.73x 71.6% 36.4% / 79.9% 5.363% Hotel 7 171,516,590 8.7 1.44x 1.30x / 1.88x 73.5% 55.0% / 75.9% 6.303% Self Storage 11 52,270,418 2.6 1.32x 1.20x / 1.81x 69.8% 41.3% / 80.0% 6.142% Other 20 35,833,041 1.8 1.24x 1.20x / 1.25x 78.3% 67.8% / 79.8% 6.564% Mixed Use 2 25,644,361 1.3 1.25x 1.24x / 1.29x 68.9% 65.8% / 69.8% 6.155% Industrial 1 7,250,000 0.4 1.50x 1.50x / 1.50x 76.3% 76.3% / 76.3% 5.984% --- -------------- ----- ---- ------------ ---- ------------ ----- TOTAL/WTD AVG 120 $1,978,746,808 100.0% 1.37X 1.03X / 2.07X 70.4% 36.4% / 80.0% 5.946% --- -------------- ----- ---- ------------ ---- ------------ ----- * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information also applies to this page. AMORTIZATION TYPES % OF AGGREGATE INITIAL % OF % OF NUMBER CUT-OFF POOL LOAN GROUP 1 LOAN GROUP 2 OF MORTGAGE LOANS BALANCE BALANCE BALANCE BALANCE ----------------- -------------- ------- ------------ ------------ Interest Only 11 $ 675,371,987 34.1% 31.8% 52.5% Balloon 39 657,650,129 33.2 35.9 11.5 IO, Balloon 42 608,557,651 30.8 30.1 36.1 12 month IO loans 4 14,100,000 0.7 0.4 2.8 24 month IO loans 7 52,338,600 2.6 1.5 12.0 36 month IO loans 17 109,442,551 5.5 5.4 6.9 48 month IO loans 1 52,500,000 2.7 3.0 0.0 60 month IO loans 13 380,176,500 19.2 19.8 14.3 IO, Hyper Am 4 29,917,041 1.5 1.7 0.0 Interest Only, Hyper Am 1 7,250,000 0.4 0.4 0.0 --- -------------- ----- ----- ----- TOTAL: 97 $1,978,746,808 100.0% 100.0% 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. 10 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- [MAP OMITTED] WASHINGTON FLORIDA PENNSYLVANIA 6 properties 4 properties 4 properties $35,173,793 $13,399,454 $67,792,260 1.8% of total 0.7% of total 3.4% of total IDAHO SOUTH CAROLINA OHIO 3 properties 10 properties 4 properties $13,940,410 $14,390,796 $66,333,470 0.7% of total 0.7% of total 3.4% of total NEVADA NORTH CAROLINA MICHIGAN 7 properties 7 properties 1 property $50,597,105 $35,080,272 $7,700,000 2.6% of total 1.8% of total 0.4% of total CALIFORNIA VIRGINIA ILLINOIS 19 properties 3 properties 3 properties $367,629,091 $58,767,574 $112,715,875 18.6% of total 3.0% of total 5.7% of total ARIZONA MARYLAND WISCONSIN 1 property 3 properties 1 property $70,903,384 $52,042,473 $14,000,000 3.6% of total 2.6% of total 0.7% of total COLORADO DISTRICT OF COLUMBIA MINNESOTA 5 properties 2 properties 1 property $7,841,906 $211,021,987 $67,985,249 0.4% of total 10.7% of total 3.4% of total OKLAHOMA NEW JERSEY IOWA 1 property 2 properties 1 property $3,608,600 $96,090,238 $101,500,000 0.2% of total 4.9% of total 5.1% of total TEXAS CONNECTICUT SOUTH DAKOTA 14 properties 1 property 1 property $140,440,884 $99,883,426 $94,000,000 7.1% of total 5.0% of total 4.8% of total ARKANSAS MAINE MISSOURI 3 properties 1 property 3 properties $4,371,639 $4,477,388 $18,020,000 0.2% of total 0.2% of total 0.9% of total ALABAMA NEW HAMPSHIRE 2 properties 3 properties $5,398,995 $12,395,000 0.3% of total 0.6% of total KENTUCKY NEW YORK 1 property 3 properties $2,695,539 $128,550,000 0.1% of total 6.5% 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 19 $ 367,629,091 18.6% 1.50x 67.6% 5.551% District of Columbia 2 211,021,987 10.7 1.12x 74.4% 6.048% Texas 14 140,440,884 7.1 1.35x 69.4% 5.918% New York 3 128,550,000 6.5 1.13x 74.2% 6.052% Illinois 3 112,715,875 5.7 1.90x 51.9% 5.496% Iowa 1 101,500,000 5.1 1.31x 79.6% 5.794% Connecticut 1 99,883,426 5.0 1.67x 59.5% 6.373% New Jersey 2 96,090,238 4.9 1.36x 73.7% 6.202% South Dakota 1 94,000,000 4.8 1.31x 80.0% 5.794% Arizona 1 70,903,384 3.6 1.44x 74.9% 6.293% Other 73 556,011,924 28.1 1.27x 71.4% 6.132% --- -------------- ----- ---- ---- ----- TOTAL/WTD AVG 120 $1,978,746,808 100.0% 1.37X 70.4% 5.946% === ============== ===== ==== ==== ===== o THE MORTGAGED PROPERTIES ARE LOCATED THROUGHOUT 30 STATES AND THE DISTRICT OF COLUMBIA. * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- 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 -------- -------------- ----- $1,454,551 -- $1,999,999 3 $ 5,163,922 0.3% $2,000,000 -- $2,999,999 10 24,876,711 1.3 $3,000,000 -- $3,999,999 5 18,292,873 0.9 $4,000,000 -- $4,999,999 10 44,124,727 2.2 $5,000,000 -- $7,499,999 18 111,366,544 5.6 $7,500,000 -- $9,999,999 12 102,563,777 5.2 $10,000,000 -- $14,999,999 8 106,781,998 5.4 $15,000,000 -- $19,999,999 10 180,247,463 9.1 $20,000,000 -- $29,999,999 4 87,127,690 4.4 $30,000,000 -- $49,999,999 4 137,091,184 6.9 $50,000,000 -- $99,999,999 9 719,587,934 36.4 $100,000,000 -- $115,021,987 4 441,521,987 22.3 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: $1,454,551 Max: $115,021,987 Average: $20,399,452 LOCATION NO. OF AGGREGATE MORTGAGED CUT-OFF DATE % OF PROPERTIES BALANCE POOL ---------- -------------- ----- California 19 $ 367,629,091 18.6% District of Columbia 2 211,021,987 10.7 Texas 14 140,440,884 7.1 New York 3 128,550,000 6.5 Illinois 3 112,715,875 5.7 Iowa 1 101,500,000 5.1 Connecticut 1 99,883,426 5.0 New Jersey 2 96,090,238 4.9 South Dakota 1 94,000,000 4.8 Arizona 1 70,903,384 3.6 Other 73 556,011,924 28.1 --- -------------- ----- TOTAL: 120 $1,978,746,808 100.0% === ============== ===== PROPERTY TYPE NO. OF AGGREGATE MORTGAGED CUT-OFF DATE % OF PROPERTIES BALANCE POOL ---------- -------------- ----- Retail 39 $ 770,524,294 38.9% Anchored 23 667,947,128 33.8 Unanchored 12 86,670,407 4.4 Shadow Anchored 4 15,906,759 0.8 Office 21 696,568,490 35.2 Multifamily 19 219,139,615 11.1 Hotel 7 171,516,590 8.7 Self Storage 11 52,270,418 2.6 Other 20 35,833,041 1.8 Mixed Use 2 25,644,361 1.3 Industrial 1 7,250,000 0.4 --- -------------- ----- TOTAL: 120 $1,978,746,808 100.0% === ============== ===== MORTGAGE RATE NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 4.947% -- 4.999% 1 $ 115,000,000 5.8% 5.000% -- 5.249% 2 13,008,362 0.7 5.250% -- 5.499% 3 164,965,875 8.3 5.500% -- 5.749% 18 210,404,814 10.6 5.750% -- 5.999% 20 462,786,294 23.4 6.000% -- 6.249% 23 512,274,717 25.9 6.250% -- 6.499% 27 460,949,001 23.3 6.500% -- 6.607% 3 39,357,745 2.0 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: 4.947% Max: 6.607% Wtd Avg: 5.946% ORIGINAL TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 60 -- 83 1 $ 115,000,000 5.8% 84 -- 99 2 14,490,000 0.7 100 -- 120 94 1,849,256,808 93.5 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: 60 months Max: 120 months Wtd Avg: 116 months REMAINING TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 52 -- 59 1 $ 115,000,000 5.8% 60 -- 79 1 9,240,000 0.5 80 -- 99 1 5,250,000 0.3 100 -- 109 3 20,050,000 1.0 110 -- 119 89 1,806,206,808 91.3 120 2 23,000,000 1.2 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: 52 months Max: 120 months Wtd Avg: 113 months PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- Lockout/Defeasance/Open 87 $1,674,671,343 84.6% Lockout/Yield Maintenance/Open 10 304,075,465 15.4 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== CUT-OFF DATE LOAN-TO-VALUE RATIO NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 36.4% -- 49.9% 4 $ 103,543,838 5.2% 55.0% -- 59.9% 9 153,192,092 7.7 60.0% -- 64.9% 11 203,205,380 10.3 65.0% -- 69.9% 20 329,745,416 16.7 70.0% -- 74.9% 22 631,477,838 31.9 75.0% -- 79.9% 28 452,478,245 22.9 80.0% 3 105,104,000 5.3 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: 36.4% Max: 80.0% Wtd Avg: 70.4% LOAN-TO-VALUE RATIO AT MATURITY OR ARD NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 30.9% -- 49.9% 8 $ 225,336,008 11.4% 50.0% -- 59.9% 28 281,160,718 14.2 60.0% -- 64.9% 17 379,363,334 19.2 65.0% -- 69.9% 25 436,886,719 22.1 70.0% -- 74.9% 15 438,550,030 22.2 75.0% -- 80.0% 4 217,450,000 11.0 -------- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% -------- -------------- ----- Min: 30.9% Max: 80.0% Wtd Avg: 65.3% DEBT SERVICE COVERAGE RATIOS NO. OF AGGREGATE MORTGAGE CUT-OFF DATE % OF LOANS BALANCE POOL -------- -------------- ----- 1.03x -- 1.19x 8 $ 298,861,713 15.1% 1.20x -- 1.24x 44 549,508,227 27.8 1.25x -- 1.29x 13 114,645,338 5.8 1.30x -- 1.34x 9 284,891,357 14.4 1.35x -- 1.39x 4 107,783,470 5.4 1.40x -- 1.49x 8 160,471,623 8.1 1.50x -- 1.59x 5 137,400,000 6.9 1.60x -- 1.69x 1 99,883,426 5.0 1.70x -- 1.79x 2 122,500,000 6.2 1.80x -- 1.89x 2 12,985,779 0.7 2.00x -- 2.07x 1 89,815,875 4.5 --- -------------- ----- TOTAL: 97 $1,978,746,808 100.0% === ============== ===== Min: 1.03x Max: 2.07x Wtd Avg: 1.37x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- 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 -------- -------------- ------- $1,454,551 -- $1,999,999 3 $ 5,163,922 0.3% $2,000,000 -- $2,999,999 7 17,435,948 1.0 $3,000,000 -- $3,999,999 2 7,408,600 0.4 $4,000,000 -- $4,999,999 7 30,978,088 1.8 $5,000,000 -- $7,499,999 16 99,520,544 5.7 $7,500,000 -- $9,999,999 9 78,908,837 4.5 $10,000,000 -- $14,999,999 8 106,781,998 6.1 $15,000,000 -- $19,999,999 9 163,997,463 9.3 $20,000,000 -- $29,999,999 3 66,210,690 3.8 $30,000,000 -- $49,999,999 4 137,091,184 7.8 $50,000,000 -- $99,999,999 9 719,587,934 40.9 $100,000,000 -- $115,021,987 3 326,521,987 18.6 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: $1,454,551 Max: $115,021,987 Average: $21,995,090 LOCATION NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE GROUP 1 ---------- -------------- ------- California 16 $ 246,386,907 14.0% District of Columbia 2 211,021,987 12.0 Texas 12 126,774,884 7.2 New York 2 124,700,000 7.1 Iowa 1 101,500,000 5.8 Connecticut 1 99,883,426 5.7 Illinois 2 96,465,875 5.5 New Jersey 2 96,090,238 5.5 South Dakota 1 94,000,000 5.3 Arizona 1 70,903,384 4.0 Others 61 491,880,493 28.0 --- -------------- ----- TOTAL: 101 $1,759,607,194 100.0% === ============== ===== PROPERTY TYPE NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE GROUP 1 ---------- -------------- ------- Retail 39 $ 770,524,294 43.8% Anchored 23 667,947,128 38.0 Unanchored 12 86,670,407 4.9 Shadow Anchored 4 15,906,759 0.9 Office 21 696,568,490 39.6 Hotel 7 171,516,590 9.7 Self Storage 11 52,270,418 3.0 Other 20 35,833,041 2.0 Mixed Use 2 25,644,361 1.5 Industrial 1 7,250,000 0.4 --- -------------- ----- TOTAL: 101 $1,759,607,194 100.0% === ============== ===== MORTGAGE RATE NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 5.220% -- 5.249% 1 $ 4,553,423 0.3% 5.250% -- 5.499% 3 164,965,875 9.4 5.500% -- 5.749% 13 172,662,500 9.8 5.750% -- 5.999% 16 427,974,069 24.3 6.000% -- 6.249% 19 498,006,120 28.3 6.250% -- 6.499% 25 452,087,462 25.7 6.500% -- 6.607% 3 39,357,745 2.2 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 5.220%% Max: 6.607%% Wtd Avg: 6.019% ORIGINAL TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 84 -- 99 2 $ 14,490,000 0.8% 100 -- 120 78 1,745,117,194 99.2 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 84 months Max: 120 months Wtd Avg: 120 months REMAINING TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 77 -- 79 1 $ 9,240,000 0.5% 80 -- 99 1 5,250,000 0.3 100 -- 109 3 20,050,000 1.1 110 -- 119 73 1,702,067,194 96.7 120 2 23,000,000 1.3 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 77 months Max: 120 months Wtd Avg: 117 months PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- Lockout/Defeasance/Open 70 $1,455,531,729 82.7% Lockout/Yield Maintenance/Open 10 304,075,465 17.3 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== CUT-OFF DATE LOAN-TO-VALUE RATIO NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 41.3% -- 49.9% 2 $ 97,301,655 5.5% 55.0% -- 59.9% 9 153,192,092 8.7 60.0% -- 64.9% 11 203,205,380 11.5 65.0% -- 69.9% 18 210,373,777 12.0 70.0% -- 74.9% 17 599,391,299 34.1 75.0% -- 79.9% 20 391,038,991 22.2 80.0% 3 105,104,000 6.0 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 41.3% Max: 80.0% Wtd Avg: 70.2% LOAN-TO-VALUE RATIO AT MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 35.0% -- 49.9% 6 $ 219,093,825 12.5% 50.0% -- 59.9% 27 276,789,079 15.7 60.0% -- 64.9% 13 359,846,855 20.5 65.0% -- 69.9% 19 289,674,405 16.5 70.0% -- 74.9% 11 396,753,030 22.5 75.0% -- 80.0% 4 217,450,000 12.4 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 35.0% Max: 80.0% Wtd Avg: 64.9% DEBT SERVICE COVERAGE RATIOS NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 1 -------- -------------- ------- 1.03x -- 1.19x 8 $ 298,861,713 17.0% 1.20x -- 1.24x 33 467,686,334 26.6 1.25x -- 1.29x 12 106,945,338 6.1 1.30x -- 1.34x 7 276,515,818 15.7 1.35x -- 1.39x 4 107,783,470 6.1 1.40x -- 1.49x 6 154,229,439 8.8 1.50x -- 1.59x 5 137,400,000 7.8 1.60x -- 1.69x 1 99,883,426 5.7 1.70x -- 1.79x 1 7,500,000 0.4 1.80x -- 1.89x 2 12,985,779 0.7 2.00x -- 2.07x 1 89,815,875 5.1 --- -------------- ----- TOTAL: 80 $1,759,607,194 100.0% === ============== ===== Min: 1.03x Max: 2.07x Wtd Avg: 1.35x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- 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 -------- ------------ ------- $2,200,000 -- $2,999,999 3 $ 7,440,763 3.4% $3,000,000 -- $3,999,999 3 10,884,273 5.0 $4,000,000 -- $4,999,999 3 13,146,639 6.0 $5,000,000 -- $7,499,999 2 11,846,000 5.4 $7,500,000 -- $9,999,999 3 23,654,940 10.8 $15,000,000 -- $19,999,999 1 16,250,000 7.4 $20,000,000 -- $29,999,999 1 20,917,000 9.5 $100,000,000 -- $115,000,000 1 115,000,000 52.5 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: $2,200,000 Max: $115,000,000 Average: $12,890,566 LOCATION NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE GROUP 2 ---------- ------------- ------- California 3 $121,242,184 55.3% North Carolina 1 20,917,000 9.5 Illinois 1 16,250,000 7.4 Texas 2 13,666,000 6.2 Nevada 1 8,454,940 3.9 Michigan 1 7,700,000 3.5 Ohio 2 6,200,000 2.8 Missouri 1 5,680,000 2.6 Washington 1 4,775,000 2.2 Arkansas 3 4,371,639 2.0 Other 3 9,882,852 4.5 --- ------------ ----- TOTAL: 19 $219,139,615 100.0% === ============ ===== PROPERTY TYPE NO. OF AGGREGATE % OF MORTGAGED CUT-OFF DATE LOAN PROPERTIES BALANCE GROUP 2 ---------- ------------ ------- Multifamily 19 $219,139,615 100.0% --- ------------ ----- TOTAL: 19 $219,139,615 100.0% === ============ ===== MORTGAGE RATE NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 4.947% -- 4.999% 1 $115,000,000 52.5% 5.000% -- 5.249% 1 8,454,940 3.9 5.500% -- 5.749% 5 37,742,314 17.2 5.750% -- 5.999% 4 34,812,225 15.9 6.000% -- 6.249% 4 14,268,598 6.5 6.250% -- 6.448% 2 8,861,539 4.0 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 4.947% Max: 6.448% Wtd Avg: 5.363% ORIGINAL TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 60 -- 83 1 $115,000,000 52.5% 100 -- 120 16 104,139,615 47.5 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 60 months Max: 120 months Wtd Avg: 88 months REMAINING TERM TO STATED MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 52 -- 59 1 $115,000,000 52.5% 110 -- 119 16 104,139,615 47.5 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 52 months Max: 119 months Wtd Avg: 82 months PREPAYMENT PROVISION SUMMARY NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- Lockout/Defeasance/Open 17 $219,139,615 100.0% --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== CUT-OFF DATE LOAN-TO-VALUE RATIO NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 36.4% -- 49.9% 2 $ 6,242,184 2.8% 65.0% -- 69.9% 2 119,371,639 54.5 70.0% -- 74.9% 5 32,086,539 14.6 75.0% -- 79.9% 8 61,439,253 28.0 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 36.4% Max: 79.9% Wtd Avg: 71.6% LOAN-TO-VALUE RATIO AT MATURITY OR ARD NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 30.9% -- 49.9% 2 $ 6,242,184 2.8% 50.0% -- 59.9% 1 4,371,639 2.0 60.0% -- 64.9% 4 19,516,479 8.9 65.0% -- 69.9% 6 147,212,314 67.2 70.0% -- 74.6% 4 41,797,000 19.1 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 30.9% Max: 74.6% Wtd Avg: 67.9% DEBT SERVICE COVERAGE RATIOS NO. OF AGGREGATE % OF MORTGAGE CUT-OFF DATE LOAN LOANS BALANCE GROUP 2 -------- ------------ ------- 1.20x -- 1.24x 11 $ 81,821,892 37.3% 1.25x -- 1.29x 1 7,700,000 3.5 1.30x -- 1.34x 2 8,375,539 3.8 1.40x -- 1.49x 2 6,242,184 2.8 1.70x -- 1.73x 1 115,000,000 52.5 --- ------------ ----- TOTAL: 17 $219,139,615 100.0% === ============ ===== Min: 1.20x Max: 1.73x Wtd Avg: 1.50x * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- PREPAYMENT PROVISIONS BASED ON OUTSTANDING PRINCIPAL BALANCE PREPAYMENT PROVISIONS(1) AUG-06 AUG-07 AUG-08 AUG-09 AUG-10 - ------------------------------ --------- --------- --------- --------- --------- Lockout/Defeasance(2) 100.00% 100.00% 98.32% 91.91% 90.04% Yield Maintenance(2) 0.00% 0.00% 1.68% 8.09% 9.96% Open 0.00% 0.00% 0.00% 0.00% 0.00% --------- --------- --------- --------- --------- Total 100.00% 100.00% 100.00% 100.00% 100.00% --------- --------- --------- --------- --------- Total Beginning Balance (in millions) $1,978.75 $1,970.84 $1,962.15 $1,951.87 $1,939.84 Percent of Aggregate Cut-off Date Balance 100.00% 99.60% 99.16% 98.64% 98.03% --------- --------- --------- --------- --------- PREPAYMENT PROVISIONS(1) AUG-11 AUG-12 AUG-13 AUG-14 AUG-15 - ------------------------------ --------- --------- --------- --------- --------- Lockout/Defeasance(2) 83.91% 83.97% 83.93% 84.01% 83.23% Yield Maintenance(2) 16.09% 16.03% 16.07% 15.99% 16.02% Open 0.00% 0.00% 0.00% 0.00% 0.75% --------- --------- --------- --------- --------- Total 100.00% 100.00% 100.00% 100.00% 100.00% --------- --------- --------- --------- --------- Total Beginning Balance (in millions) $1,810.50 $1,792.01 $1,758.70 $1,737,80 $1,702.40 Percent of Aggregate Cut-off Date Balance 91.50% 90.56% 88.88% 87.82% 86.03% --------- --------- --------- --------- --------- (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, ten Mortgage Loans, representing 15.4% of the Initial Pool Balance (17.3% of the Group 1 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. Eighty-seven Mortgage Loans representing 84.6% of the Initial Pool Balance (70 Mortgage Loans representing 82.7% of the Group 1 Balance and 17 Mortgage Loans representing 100.0% of the Group 2 Balance) are subject to an initial lockout period after which defeasance is permitted. * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- MORTGAGE POOL CHARACTERISTICS AS OF THE CUT-OFF DATE* - -------------------------------------------------------------------------------- FIVE YEAR LOAN % OF MORTGAGE CUT-OFF INITIAL LOAN PROPERTY DATE POOL LOAN PROPERTY NAME SELLER CITY STATE TYPE BALANCE BALANCE GROUP - ---------------------- -------- -------------- ----- ----------- ------------ ------- ----- Saugus Colony ........ BofA Santa Clarita CA Multifamily $115,000,000 5.8% 2 ------------ --- TOTAL/WTD. AVG.: ..... $115,000,000 5.8% ============ === REMAINING % OF LOAN CUT-OFF MATURITY INTEREST REMAINING APPLICABLE BALANCE DATE DATE ONLY TERM TO LOAN TOTAL PER UNDERWRITTEN LTV LTV PERIOD MATURITY PROPERTY NAME GROUP UNITS UNIT DSCR RATIO RATIO (MONTHS) (MONTHS) - ---------------------- ---------- ----- -------- ------------ ------- -------- --------- --------- Saugus Colony ........ 52.5% 752 $152,926 1.73x 69.3% 69.3% 52 52 TOTAL/WTD. AVG.: ..... 1.73X 69.3% 69.3% SEVEN YEAR LOANS % OF MORTGAGE CUT-OFF INITIAL LOAN PROPERTY DATE POOL LOAN PROPERTY NAME SELLER CITY STATE TYPE BALANCE BALANCE GROUP - ---------------------- ---------- ------------ ----- -------- ------------ ------- ----- Baylor Medical Plaza ............. BofA Garland TX Office $ 9,240,000 0.5% 1 Business Exchange Building .......... BofA Lee's Summit MO Office 5,250,000 0.3 1 ----------- --- TOTAL/WTD. AVG.: ..... $14,490,000 0.7% =========== === REMAINING % OF CUT-OFF MATURITY INTEREST REMAINING APPLICABLE LOAN DATE DATE ONLY TERM TO LOAN TOTAL BALANCE UNDERWRITTEN LTV LTV PERIOD MATURITY PROPERTY NAME GROUP SF PSF DSCR RATIO RATIO (MONTHS) (MONTHS) - ---------------------- ---------- ------- ------- ------------ ------- -------- --------- --------- Baylor Medical Plaza ............. 0.5% 44,731 $207 1.27x 67.4% 62.9% 17 77 Business Exchange Building .......... 0.3% 48,361 $109 1.22x 69.5% 65.4% 23 83 TOTAL/WTD. AVG.: ..... 1.26X 68.2% 63.8% * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- 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 - ------------------------------ ------------ ----- ------- ---------- ------------ Bowen Building ............... $115,021,987 1 5.8% 6.5% Office Saugus Colony ................ 115,000,000 2 5.8 52.5% Multifamily Herald Center ................ 110,000,000 1 5.6 6.3% Retail Southern Hills Mall .......... 101,500,000 1 5.1 5.8% Retail One Stamford Forum ........... 99,883,426 1 5.0 5.7% Office Republic Place ............... 96,000,000 1 4.9 5.5% Office Rushmore Mall ................ 94,000,000 1 4.8 5.3% Retail FBI Regional HQ Building ..... 89,815,875 1 4.5 5.1% Office One Campus Drive ............. 80,000,000 1 4.0 4.5% Office Phoenix Airport Marriott ..... 70,903,384 1 3.6 4.0% Hotel ------------ ---- TOTAL/WTD AVG ................ $972,124,672 49.1% ============ ==== CUT-OFF LTV DATE LTV RATIO AT UNDERWRITTEN MORTGAGE LOAN NAME RATIO MATURITY OR ARD DSCR RATE - ------------------------------ --------- --------------- ------------ -------------- Bowen Building ............... 73.9% 73.9% 1.20x 6.138%(1) Saugus Colony ................ 69.3% 69.3% 1.73x 4.947% Herald Center ................ 73.7% 69.1% 1.12x 6.058%(1) Southern Hills Mall .......... 79.6% 79.6% 1.31x 5.794% One Stamford Forum ........... 59.5% 47.0% 1.67x 6.373%(1)(2) Republic Place ............... 75.0% 70.2% 1.03x 5.940% Rushmore Mall ................ 80.0% 80.0% 1.31x 5.794% FBI Regional HQ Building ..... 46.1% 38.6% 2.07x 5.490%(1) One Campus Drive ............. 74.8% 74.8% 1.39x 6.151%(1) Phoenix Airport Marriott ..... 74.9% 64.3% 1.44x 6.293% TOTAL/WTD AVG ................ 70.7% 67.0% 1.42X 5.876% * Footnote (*) to the "GENERAL CHARACTERISTICS" table in the "Mortgage Pool Characteristics as of the Cut-off Date" section to this Structural and Collateral Information 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 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $115,021,987 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/0 months INTEREST ONLY PERIOD: 120 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $115,021,987 BORROWING ENTITY: Bowen Building, L.P. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 115 payments Open: 5 payments LOCKBOX: Hard - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $115,021,987 CUT-OFF DATE LTV: 73.9% MATURITY DATE LTV: 73.9% UNDERWRITTEN DSCR: 1.20x MORTGAGE RATE(1): 6.138% (1) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB-TYPE: Central Business District LOCATION: Washington, D.C. YEAR BUILT/RENOVATED: 1922/2005 NET RENTABLE SQUARE FEET: 229,699 CUT-OFF DATE BALANCE PSF: $501 OCCUPANCY AS OF MAY 18, 2006(1): 92.5% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Kaempfer Management Services, LLC UNDERWRITTEN NET CASH FLOW: $8,590,077 APPRAISED VALUE: $155,700,000 (1) Occupancy including the Vornado Realty LP master lease equals 99.7%. 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 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- UNDERWRITTEN ------------ Effective Gross Income .......................................... $12,692,558 Total Expenses .................................................. $ 3,887,583 Net Operating Income (NOI) ...................................... $ 8,804,975 Cash Flow (CF) .................................................. $ 8,590,077 DSCR on NOI ..................................................... 1.23x DSCR on CF ...................................................... 1.20x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- TOTAL % OF % RATINGS TENANT TOTAL RENT POTENTIAL POTENTIAL LEASE TOP TENANTS FITCH/S&P SF SF PSF RENT RENT EXPIRATION - ------------------------------------ --------- ------- ----- ------ ---------- --------- ---------- Paul, Hastings, Janofsky & Walker .. Not Rated 114,867 50.0% $44.24 $5,082,191 57.0% 01/09/2020 Millennium Challenge Corporation ... AAA/AAA 93,956 40.9 $33.45 3,142,828 35.2 05/28/2015 Vornado Realty LP .................. BBB/BBB+ 16,443 7.2 $34.00 559,062 6.3 04/30/2016 ------- ---- ---------- ---- TOTAL .............................. 225,266 98.1% $8,784,081 98.5% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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 TOTAL CUMULATIVE CUMULATIVE % OF BASE RENT YEAR OF EXPIRATION EXPIRING SF SF TOTAL SF TOTAL SF EXPIRING - ------------------ ----------- -------- ---------- ---------- --------------- ---------- 2011 ............. 1 3,686 1.6% 3,686 1.6% $ 123,481 2015 ............. 1 93,956 40.9 97,642 42.5% $3,142,828 2016 ............. 1 16,443 7.2 114,085 49.7% $ 559,062 2020 ............. 2 114,867 50.0 228,952 99.7% $5,082,191 Vacant ........... -- 747 0.3 229,699 100.0% $ 14,940 --- ------- ----- TOTAL ............ 5 229,699 100.0% (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. 20 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The three largest tenants, representing 98.1% of the total net rentable square feet, are: o PAUL, HASTINGS, JANOFSKY & WALKER (not rated) occupies a total of 114,867 square feet (50.0% of square feet, 57.0% of rental income) under two 15-year leases expiring on January 9, 2020. Paul, Hastings, Janofsky & Walker occupies 113,408 square feet of office space and 1,459 square feet of storage space. The rental rate of both leases increases annually by 2%. There is one ten-year option to renew the leases with the rental rates determined at the then fair market. Paul, Hastings, Janofsky & Walker has three expansion options. The first option at the current rent is for an additional 19,317 square feet, the second option at the current rent is for 9,000 to 10,000 square feet and the third option at the then fair market rent is for 10,000 square feet. Paul, Hastings, Janofsky & Walker specializes in employment law and also offers expertise in business law, litigation, tax and real estate. Founded in 1951, Paul, Hastings, Janofsky & Walker employs approximately 1,000 attorneys located in nine offices in the United States and eight offices in Europe and Asia. o MILLENNIUM CHALLENGE CORPORATION (United States Federal Government rated "AAA" by Fitch and "AAA" by S&P) occupies 93,956 square feet (40.9% of square feet, 35.2% of rental income) under a ten-year lease expiring on May 28, 2015. The rental rate increases annually by 1.75%. There is one five-year option to renew the lease with the rental rate determined at the then fair market. There is an early termination clause if Millennium Challenge Corporation fails to obtain future appropriations. In March 2002, President Bush proposed a mechanism to implement the Millennium Challenge Account, in which development assistance would be provided to those countries that rule justly, invest in their people and encourage economic freedom. Millennium Challenge Corporation was established on January 23, 2004 to administer the Millennium Challenge Account. Congress provided initial funding of approximately $1 billion for fiscal year 2004 and $1.5 billion for fiscal year 2005. President Bush requested $3 billion for fiscal year 2006 and pledged to increase annual funding for the Millennium Challenge Account to $5 billion in the future. o VORNADO REALTY LP (rated "BBB" by Fitch and "BBB+" by S&P) master leases 16,443 square feet (7.2% of square feet, 6.3% of rental income) under a ten-year lease expiring on April 30, 2016. The Vornado Realty LP master lease for space located on the seventh floor will be modified and the amount of space leased will be reduced as the vacant space is leased. See "Master Lease" under Additional Information. 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 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Bowen Building Mortgage Loan is a $115.0 million, ten-year fixed rate loan secured by a first mortgage on an office building located in the District of Columbia. The Bowen Building Mortgage Loan is interest only for the entire loan term, matures on June 1, 2016 and accrues interest at an annual rate, rounded to three decimal places, of 6.138%. THE BORROWER: o The Bowen Building Borrower is Bowen Building, L.P., a Delaware limited partnership and a single purpose bankruptcy remote entity with at least one independent manager for which the Bowen Building Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 97.31% by Vornado Bowen II, LLC, a Delaware limited liability company, as the limited partner of the Bowen Building Borrower and 2.69% by New Kaempfer Bowen, LLC, a Delaware limited liability company, as the general partner of the Bowen Building Borrower. Through a series of intermediate ownership levels, equity ownership is eventually held 89% by Vornado Realty Trust, a Maryland trust, and 11% by other limited partners. o Vornado Realty LP (rated "BBB" by Fitch and "BBB+" by S&P) and Vornado Realty Trust (rated "BBB" by Fitch and rated "BBB+" by S&P) own, in whole or in part, 110 office buildings containing approximately 30.7 million square feet located in New York City and Washington, D.C., 111 retail properties containing approximately 16.2 million square feet located in seven states and Puerto Rico, showroom and office space containing approximately 9.5 million square feet in its Merchandise Mart division, a 47.6% interest in Americold Realty Trust, the largest cold storage warehouse owner and operator in North America, a 32.95% interest in Alexander's, Inc., a 33% interest in Toys R Us, a 15.8% interest in Newkirk Realty Trust and an 11.3% interest in GMH Communities, LP, the operating partnership of GMH Communities Trust. THE PROPERTY: o The Bowen Building Mortgaged Property consists of a fee simple interest in a Class "A" office building constructed in 1922 and most recently renovated in 2005. The 12-story improvements contain 229,699 net rentable square feet and are situated on 0.51 acres. Additional improvements consist of a two-level underground parking garage containing 120 parking spaces. Building amenities include a perimeter access system, a 24-hour on-site security guard, full service fitness center with locker rooms and a rooftop terrace. The Bowen Building Mortgaged Property is currently leased by four tenants ranging in size from 3,686 to 114,867 square feet. o The Bowen Building Mortgaged Property is located in the Washington, D.C. market and the East End submarket, which contains 37.8 million square feet of office space with an average occupancy level of 92.2% and an average rental rate per square foot of $43.89. The neighborhood consists of a mix of Class "A" and Class "B" office buildings and hotel properties. The McPherson Square Metro Station is located one block southeast and the Metro Center Metro Station is located one block south. Pennsylvania Avenue, New York Avenue and The Mall are located two blocks south. o The Bowen Building Borrower is generally required at its sole cost and expense to keep the Bowen Building Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. MASTER LEASE: o Vornado Realty L.P. provided a Master Lease for 16,443 square feet (the seventh floor) for $559,062 per annum. The payment under the Master Lease will be decreased based upon a certified rent roll showing actual economic rent in place from signed leases satisfactory to the mortgagee (having a minimum five-year term) with tenants in occupancy and paying unabated base rent. PROPERTY MANAGEMENT: o Kaempfer Management Services, LLC manages the Bowen Building Mortgaged Property. Kaempfer Management Services, Inc., founded in 1977 and headquartered in Washington, D.C., currently owns and/or manages 17 office buildings containing approximately 8.8 million square feet located in the Washington, D.C. market. 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. 22 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- BOWEN BUILDING - -------------------------------------------------------------------------------- [MAP OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- SAUGUS COLONY - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- SAUGUS COLONY - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $115,000,000 FIRST PAYMENT DATE: January 1, 2006 TERM/AMORTIZATION: 60/0 months INTEREST ONLY PERIOD: 60 months MATURITY DATE: December 1, 2010 EXPECTED MATURITY BALANCE: $115,000,000 BORROWING ENTITY: Saugus Colony Limited INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 57 payments Open: 3 payments UP-FRONT RESERVES: TAX RESERVE: Yes ONGOING MONTHLY RESERVES: TAX RESERVE: Yes REPLACEMENT RESERVE: $10,340 FUTURE MEZZANINE DEBT: Yes LOCKBOX: Soft - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $115,000,000 CUT-OFF DATE LTV: 69.3% MATURITY DATE LTV: 69.3% UNDERWRITTEN DSCR: 1.73x MORTGAGE RATE: 4.947% - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Multifamily PROPERTY SUB-TYPE: Garden LOCATION: Santa Clarita, California YEAR BUILT/RENOVATED: 2001/NAP UNITS: 752 CUT-OFF DATE BALANCE PER UNIT: $152,926 OCCUPANCY AS OF JUNE 22, 2006: 89.5% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Con Am Management Corporation UNDERWRITTEN NET CASH FLOW: $9,991,786 APPRAISED VALUE: $166,000,000 - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- UNDERWRITTEN ----------- Effective Gross Income .......................................... $14,284,962 Total Expenses .................................................. $ 4,123,976 Net Operating Income (NOI) ...................................... $10,160,986 Cash Flow (CF) .................................................. $ 9,991,786 DSCR on NOI ..................................................... 1.76x DSCR on CF ...................................................... 1.73x 2 BEDROOM 3 BEDROOM --------- --------- Number of Units ........................................ 564 188 Average Rent ........................................... $1,592 $1,988 Average Unit Size (SF) ................................. 1,130 1,344 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 2006-3 - -------------------------------------------------------------------------------- SAUGUS COLONY - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Saugus Colony Mortgage Loan is a $115.0 million, five-year fixed rate loan secured by a first mortgage on a garden-style apartment complex located in Santa Clarita, Los Angeles County, California. The Saugus Colony Mortgage Loan is interest only for the entire loan term, matures on December 1, 2010 and accrues interest at an annual rate of 4.947%. THE BORROWER: o The Saugus Colony Borrower is Saugus Colony Limited, a California limited partnership and a single purpose bankruptcy remote entity with at least two independent directors for which the Saugus Colony Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 1% by Colony Apartments LLC, a Delaware limited liability company, 50% by Dr. Edward Abraham and 44% by Geoffrey H. Palmer, as general partners of the Saugus Colony Borrower, and 5% by Dan Saxon Palmer, Jr. as the limited partner of the Saugus Colony Borrower. The borrower principal is Geoffrey H. Palmer. o Mr. Palmer has been active in developing multifamily properties since 1975, through his company G.H. Palmer Associates. G.H. Palmer Associates currently owns a multifamily portfolio of more than 7,800 units located throughout southern California. As of December 31, 2004, Mr. Palmer reported a net worth of approximately $455.5 million. THE PROPERTY: o The Saugus Colony Mortgaged Property consists of a fee simple interest in a 752-unit, garden-style apartment complex built in three phases in 2001 (Phase I - 304 units), 2003 (Phase II - 304 units) and 2005 (Phase III - 144 units). The Class "A" improvements situated on 34.64 acres consist of 94 three-story buildings containing a total of 889,804 net rentable square feet. The apartment mix is 564 two bedroom/2.5 bath units and 188 three bedroom/2.5 bath units. o Unit amenities include a standard kitchen package consisting of a refrigerator with icemaker, range/oven with vent hood, dishwasher and microwave. Other unit amenities include washer/dryers, vaulted ceilings, crown molding, gas fireplaces and patios/balconies. All units are equipped with hard-wired smoke detectors and are sprinklered. Saugus Colony Mortgaged Property amenities include gated access, a clubhouse with fitness center and steam bath, four pools each with spa, wading pool and two playgrounds. There are two garage parking spaces per unit and 153 surface parking spaces. o The Saugus Colony Mortgaged Property is located in southern California, approximately 30 miles northwest of downtown Los Angeles. o The Saugus Colony Borrower is generally required at its sole cost and expense to keep the Saugus Colony 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 Con Am Management Corporation manages the Saugus Colony Mortgaged Property. Con Am Management Corporation, founded in 1975 and headquartered in San Diego, currently manages more than 200 multifamily complexes totaling more than 45,000 units primarily located in California, Arizona and Texas. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. 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 2006-3 - -------------------------------------------------------------------------------- SAUGUS COLONY - -------------------------------------------------------------------------------- FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Saugus Colony Borrower is permitted to incur on a one-time basis mezzanine financing upon the satisfaction of the following terms and conditions including, without limitation: (a) no event of default has occurred and is continuing; (b) a permitted mezzanine lender originates such mezzanine financing; (c) the mezzanine lender will have executed an intercreditor agreement in form and substance reasonably acceptable to the mortgagee; (d) the amount of such mezzanine loan will not exceed an amount which, when added to the outstanding principal balance of the Saugus Colony Mortgage Loan, results in a maximum loan-to-value ratio greater than 70% and a minimum debt service coverage ratio (as calculated by the mortgagee on a trailing 12-month basis) less than 1.15x (based on a constant payment rate of 9.25% and underwritten net income); and (e) the mortgagee will have received confirmation from the rating agencies that such mezzanine financing will not result in a downgrade, withdrawal or qualification of the ratings issued, or to be issued, in connection with a securitization involving the Saugus Colony 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. 27 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SAUGUS COLONY - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $110,000,000 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 60 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $103,125,311 BORROWING ENTITY: Herald Center Department Store, L.P. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments UP-FRONT RESERVES: TAX RESERVE: Yes ONGOING MONTHLY RESERVES: TAX RESERVE: Yes REPLACEMENT RESERVE(1): $8,454 FUTURE MEZZANINE DEBT: Yes LOCKBOX: Hard (1) On July 1, 2009 monthly deposits decrease to $4,320 and remain at that level through the end of the loan term. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $110,000,000 CUT-OFF DATE LTV: 73.7% MATURITY DATE LTV: 69.1% UNDERWRITTEN DSCR: 1.12x INTEREST ONLY DSCR(1): 1.31x MORTGAGE RATE(2): 6.058% (1) Underwritten DSCR d u ring partial Interest Only Period. (2) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB-TYPE: Anchored LOCATION: New York, New York YEAR BUILT/RENOVATED: 1902/1985 NET RENTABLE SQUARE FEET: 225,428 CUT-OFF DATE BALANCE PSF: $488 OCCUPANCY AS OF APRIL 5, 2006: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Jeffrey Management Corp. UNDERWRITTEN NET CASH FLOW: $8,897,456 APPRAISED VALUE: $149,200,000 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. 30 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR FULL YEAR (12/31/2004) (12/31/2005) UNDERWRITTEN ------------ ------------ --------------- Effective Gross Income ......... $12,207,091 $12,969,440 $15,010,740 Total Expenses ................. $ 4,681,302 $ 4,962,586 $ 5,663,353 Net Operating Income (NOI) ..... $ 7,525,789 $ 8,006,854 $ 9,347,387 Cash Flow (CF) ................. $ 7,525,789 $ 8,006,854 $ 8,897,456 DSCR on NOI .................... 0.95x 1.01x 1.17x DSCR on CF ..................... 0.95x 1.01x 1.12x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- TOTAL % OF % RATINGS TENANT TOTAL RENT POTENTIAL POTENTIAL LEASE TOP TENANTS FITCH/S&P SF SF PSF RENT RENT EXPIRATION - ----------- --------- ------- ----- ------ ---------- --------- ---------- Daffy's ...................... Not Rated 97,124 43.1% $24.92 $2,420,000 19.9% 03/31/2017 NYS Dept. of Motor Vehicles .. NR/AA- 30,000 13.3 $35.75 990,000 8.2 09/30/2009 ASA Institute ................ Not Rated 25,944 11.5 $42.56 1,040,106 8.6 08/31/2019 Modell's Sporting Goods ...... Not Rated 24,000 10.6 $57.50 1,380,000 11.4 01/31/2017 ------- ---- ---------- ---- TOTAL ........................ 117,068 78.5% $5,830,106 48.0% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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 % OF CUMULATIVE CUMULATIVE % OF BASE RENT YEAR OF EXPIRATION EXPIRING EXPIRING SF TOTAL SF TOTAL SF TOTAL SF EXPIRING - ------------------------- ----------- ----------- -------- ---------- --------------- ---------- 2009 .................... 1 30,000 13.3% 30,000 13.3% $ 990,000 2011 .................... 2 747 0.3 30,747 13.6% $ 460,056 2012 .................... 1 5,293 2.3 36,040 16.0% $1,328,508 2013 .................... 2 34,400 15.3 70,440 31.2% $1,196,204 2014 .................... 1 648 0.3 71,088 31.5% $ 275,000 2015 .................... 2 4,802 2.1 75,890 33.7% $1,930,450 2017 .................... 3 123,594 54.8 199,484 88.5% $4,489,000 2019 .................... 1 25,944 11.5 225,428 100.0% $1,040,106 Maintenance/Management .. 5 -- -- 225,428 100.0% $ 434,833 --- ------- ----- TOTAL ................... 18 225,428 100.0% (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. 31 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS - -------------------------------------------------------------------------------- The four largest tenants, representing 78.5% of the total net rentable square feet are: o DAFFY'S (not rated) occupies 97,124 square feet (43.1% of square feet, 19.9% of rental income) under a 23-year lease expiring on March 31, 2017. The current rental rate per square foot of $24.92 increases to $27.41 on October 1, 2011. There are three five-year options to renew the lease at a rental rate per square foot equal to the sum of 110% of the current rent plus 75% of the percentage rent payable during the last full year prior to the commencement of the renewal period. Daffy's is also required to pay percentage rent equal to 7% of sales in excess of the sales breakpoint. Daffy's is an off-price specialty retail chain operating 17 stores located in the New York Metropolitan area and one store located in Philadelphia. Daffy's sells designer clothing, shoes and accessories for men, women and children, as well as housewares at a discount. o NYS DEPT. OF MOTOR VEHICLES (New York State, not rated by Fitch and rated "AA-" by S&P) occupies 30,000 square feet (13.3% of square feet, 8.2% of rental income) under an eleven-year lease expiring on September 30, 2009. The current rental rate per square foot of $35.75 remains constant during the initial lease term. There are two five-year options to renew the lease with the rental rate per square foot increasing to $39.60 and $47.52, respectively. The New York State Department of Motor Vehicles provides services and information including New York State driver's licenses, driver's education, vehicle registration, driving records and auto insurance. The Herald Center location is the largest New York State Department of Motor Vehicles office. o ASA INSTITUTE (not rated) occupies 25,944 square feet (11.5% of square feet, 8.6% of rental income) under a 15-year lease expiring on August 31, 2019. The current rental rate per square foot of $42.56 increases annually by 3%. There are two five-year options to renew the lease at a rental rate per square foot at the then fair market. Founded 20 years ago, ASA Institute is an accredited college that awards certificates and associate degrees. Campuses are located at the Herald Center Mortgaged Property and in Brooklyn. ASA Institute offers degree programs in Medical Assisting, Pharmacy Technology, Office Administration and Technology, Business Administration, Business Administration with MIS, Network Administration and Security, and Computer Programming and Information Technology. o MODELL'S SPORTING GOODS (not rated) occupies 24,000 square feet (10.6% of square feet, 11.4% of rental income) under a 16-year lease expiring on January 31, 2017. The current rental rate per square foot of $57.50 increases to $66.13 in lease years 11 to 15 and $76.04 in lease year 16. There are no options to renew the lease. Modell's Sporting Goods is also required to pay percentage rent equal to 5% of sales in excess of $12,000,000 in lease years one to five ($500 per square foot), $13,800,000 in lease years six to ten ($575 per square foot), $15,870,000 in lease years 11 to 15 ($661 per square foot) and $18,250,500 in lease year 16 ($760 per square foot). Founded in 1889, Modell's Sporting Goods is the nation's oldest family-owned and operated retailer of brand name sporting goods, sporting apparel, menswear and footwear. Modell's Sporting Goods operates more than 125 stores located throughout New York, New Jersey, Pennsylvania, Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, Virginia, Rhode Island and Washington, D.C. 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 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- THE LOAN: o The Herald Center Mortgage Loan is a $110.0 million, ten-year fixed rate loan secured by a first mortgage on an retail building located in New York City. The Herald Center Mortgage Loan is interest only for the first five years of the loan term, matures on June 1, 2016 and accrues interest at an annual rate, rounded to three decimal places, of 6.058%. THE BORROWER: o The Herald Center Borrower is Herald Center Department Store, L.P., a Delaware limited partnership and a single purpose bankruptcy remote entity with at least one independent director for which the Herald Center Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 0.495% by Herald Center-LV GP, Inc., a Delaware corporation, as the managing general partner of the Herald Center Borrower, 0.505% by Herald Center Department Store, Inc., a New York corporation, as the non-managing general partner of the Herald Center Borrower, 49.995% by Bailey Herald Center, L.P., a Delaware limited partnership, and 49.005% by Herald Center-LV LLC, a Delaware limited liability company, the last two legal entities as the limited partners of the Herald Center Borrower. The borrower principals are Jeffrey Feil and Lloyd Goldman. o Mr. Feil is Chairman and President of The Feil Organization, a privately-held, full-service real estate company headquartered in New York City. The Feil Organization operates a portfolio of more than 18 million square feet of commercial real estate properties, more than 5,000 multifamily units, hundreds of net leased properties, and thousands of acres of undeveloped land across the United States. As of December 31, 2004, Mr. Feil reported a net worth of approximately $101.7 million. o Mr. Goldman is President of BLDG Management Co., Inc., which owns and/or operates more than 400 properties located throughout the United States, including approximately 20 million square feet of office, industrial and retail space and 14,000 multifamily units. As of March 14, 2005, Mr. Goldman reported a net worth of approximately $130.0 million. THE PROPERTY: o The Herald Center Mortgaged Property consists of a fee simple interest in a multi-level retail building. The Herald Center Mortgaged Property was originally built as a department store in 1902, but was extensively renovated and converted to the current multi-tenant use in 1985. The nine-story plus basement improvements contain 225,428 net rentable square feet and are situated on 0.56 acres. Upper floor spaces on the second through seventh floors are accessed via escalator and elevator. The eighth and ninth floors are accessed via elevator only. The Herald Center Mortgaged Property is currently occupied by 13 tenants ranging in size from 97 to 97,124 square feet. o The Herald Center Mortgaged Property is located at the southwest corner of Broadway and West 34th Street on Herald Square in the Garment Center District of Midtown Manhattan. Herald Square is in Midtown Manhattan with Macy's flagship store located across the street to the north, the Empire State Building two blocks east, and two blocks northeast of Pennsylvania Station which provides access to the Long Island Railroad, Amtrak, and the New York City Transit subway system. o The Herald Center Borrower is generally required at its sole cost and expense to keep the Herald 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 Jeffrey Management Corp. manages the Herald Center Mortgaged Property. Jeffrey Management Corp., founded in 1956 and headquartered in New York City, currently manages approximately 15 million square feet of commercial real estate properties, including more than 11 million square feet of prime office space located in New York City, Chicago and Houston, approximately 5,000 multifamily units, hundreds of net leased properties and thousands of acres of undeveloped land across the United States. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. 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 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Herald Center Building Borrower is permitted to incur mezzanine financing upon the satisfaction of the following terms and conditions, including without limitation: (a) no event of default has occurred and is continuing; (b) a permitted mezzanine lender originates such mezzanine financing; (c) the mezzanine lender will have executed an intercreditor agreement in form and substance reasonably acceptable to the mortgagee; (d) the amount of such mezzanine loan will not exceed an amount which, when added to the outstanding principal balance of the Herald Center Building Mortgage Loan, results in a maximum loan-to-value ratio greater than 75% and a minimum debt service coverage ratio (as calculated by the mortgagee on a trailing 12-month basis) less than 1.25x; and (e) the mortgagee will have received confirmation from the rating agencies that such mezzanine financing will not result in a downgrade, withdrawal or qualification of the ratings issued, or to be issued, in connection with a securitization involving the Herald Center Building 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. 34 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- HERALD CENTER - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- [5 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $101,500,000 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/0 months INTEREST ONLY PERIOD: 120 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $101,500,000 BORROWING ENTITY: SM Southern Hills Mall, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 113 payments Open: 7 payments FUTURE MEZZANINE DEBT: Yes LOCKBOX: Hard - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $101,500,000 CUT-OFF DATE LTV: 79.6% MATURITY DATE LTV: 79.6% UNDERWRITTEN DSCR: 1.31x MORTGAGE RATE: 5.794% - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB-TYPE: Anchored LOCATION: Sioux City, Iowa YEAR BUILT/RENOVATED: 1980/2003 NET RENTABLE SQUARE FEET: 573,370 CUT-OFF DATE BALANCE PSF: $177 OCCUPANCY AS OF MARCH 31, 2006: 92.4% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Macerich Management Company UNDERWRITTEN NET CASH FLOW: $7,836,354 APPRAISED VALUE: $127,500,000 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. 37 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR FULL YEAR FULL YEAR (12/31/2003) (12/31/2004) (12/31/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ...... $13,149,834 $13,650,832 $14,033,330 $14,602,097 Total Expenses .............. $ 5,549,814 $ 6,003,066 $ 6,028,804 $ 6,308,297 Net Operating Income (NOI) .. $ 7,600,020 $ 7,647,766 $ 8,004,526 $ 8,293,800 Cash Flow (CF) .............. $ 7,600,020 $ 7,647,766 $ 8,004,526 $ 7,836,354 DSCR on NOI ................. 1.27x 1.28x 1.34x 1.39x DSCR on CF .................. 1.27x 1.28x 1.34x 1.31x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF POTENTIAL % POTENTIAL LEASE TOP TENANTS FITCH/S&P TENANT SF TOTAL SF RENT PSF RENT RENT EXPIRATION - ----------- --------- --------- -------- -------- ---------- ----------- ---------- Younkers ............ CCC/B+ 90,785 15.8% $ 3.33 $ 302,314 4.0% 01/31/2011 Hy-Vee .............. Not Rated 59,596 10.4 $ 4.20 250,037 3.3 12/31/2012 Scheels All Sports .. Not Rated 59,360 10.4 $ 5.02 297,987 4.0 04/30/2018 Cinema 12 ........... NR/B- 40,386 7.0 $10.83 437,380 5.8 01/31/2010 ------- ---- ---------- ---- TOTAL ............... 250,127 43.6% $1,287,718 17.2% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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 - ------------------ ----------- -------- -------- ---------- ------------- ---------- 2006 ............. 1 8,356 1.5% 8,356 1.5% $ 37,936 2007 ............. 7 27,122 4.7 35,478 6.2% $ 664,929 2008 ............. 13 27,506 4.8 62,984 11.0% $ 678,583 2009 ............. 7 17,553 3.1 80,537 14.0% $ 421,259 2010 ............. 12 62,416 10.9 142,953 24.9% $1,059,178 2011 ............. 13 134,136 23.4 277,089 48.3% $1,247,510 2012 ............. 4 65,725 11.5 342,814 59.8% $ 421,360 2013 ............. 5 13,913 2.4 356,727 62.2% $ 452,235 2014 ............. 4 38,380 6.7 395,107 68.9% $ 569,372 2015 ............. 3 11,569 2.0 406,676 70.9% $ 160,783 2016 ............. 9 26,277 4.6 432,953 75.5% $ 477,993 2018 ............. 1 59,360 10.4 492,313 85.9% $ 297,987 2024 ............. 1 4,404 0.8 496,717 86.6% $ 47,519 MTM .............. 17 37,533 6.5 534,250 93.2% $ 474,633 Vacant ........... -- 39,120 6.8 573,370 100.0% $ 496,055 --- ------- ----- TOTAL ............ 97 573,370 100.0% (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. 38 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The four largest tenants, representing 43.6% of the total net rentable square feet are: o YOUNKERS (Bon-Ton Stores, NASDAQ: "BONT") (rated "CCC" by Fitch and "B+" by S&P) occupies 90,785 square feet (15.8% of square feet, 4.0% of rental income) under a 32-year lease expiring on January 31, 2011. The current rental rate per square foot of $3.33 remains constant during the remaining initial lease term. There are three ten-year options to renew the lease with the rental rate per square foot during each renewal period remaining constant at $3.33. Younkers is also required to pay percentage rent equal to 3% of sales in excess of the annual rent. Younkers operates 47 department stores located throughout the Midwestern United States. Younkers offers an assortment of apparel and accessories for men, women, teens and children. Younkers is an operating division of Bon-Ton Stores. Bon-Ton Stores offers an assortment of apparel and accessories for women, men and children, intimate apparel, footwear, cosmetics and home furnishings. Bon-Ton Stores operates 279 stores located in 23 states under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers brand names. Bon-Ton Stores employs approximately 33,500 people. As of the fiscal year ended January 28, 2006, Bon-Ton Stores reported revenue of approximately $1.3 billion, net income of $26.0 million and stockholder equity of $292.1 million. o HY-VEE (not rated) occupies 59,596 square feet (10.4% of square feet, 3.3% of rental income) under a 33-year lease expiring on December 31, 2012. The rental rate per square foot of $4.20 remains constant during the initial lease term. There are three five-year options to renew the lease. Hy-Vee is also required to pay percentage rent equal to 1% of sales in excess of the annual rent. Hy-Vee is one of the largest privately owned supermarket chains in the nation. Hy-Vee operates approximately 220 supermarkets located in seven Midwestern states. Hy-Vee employs approximately 49,000 people. o SCHEELS ALL SPORTS (not rated) occupies 59,360 square feet (10.4% of square feet, 4.0% of rental income) under a 16-year ground lease expiring on April 30, 2018. The current rental rate per square foot of $5.02 increases to $5.82 in lease years six to ten and $6.63 in lease years 11 to 15. There are six five-year options to renew the ground lease with the rental rate per square foot increasing to $7.43, $8.23, $9.04, $9.84, $10.64 and $11.44, respectively during the six renewal periods. Scheels All Sports is also required to pay percentage rent equal to 2% of sales in excess of $14,900,000 in lease years one to five, $17,284,000 in lease years six to ten and $19,668,000 in lease years 11 to 15 with increasing breakpoints over the six ground lease renewal periods. Scheels All Sports is a privately owned sporting goods chain. Scheels All Sports sells sporting goods and apparel, including bikes, footwear, fitness equipment, apparel, hunting and fishing gear, and seasonal sporting goods (camping, baseball, golf, soccer, skates). Scheels All Sports offers maintenance and warranty repair for many of its products. Scheels operates 22 stores located in seven Midwestern states. o CINEMA 12 (Carmike Cinemas, Inc., NASDAQ: "CKEC") (Carmike Cinemas, Inc., not rated by Fitch and rated "B-" by S&P) occupies 40,386 square feet (7.0% of square feet, 5.8% of rental income) under a thirty-year lease expiring on January 31, 2010. The rental rate per square foot of $10.83 remains constant throughout the lease term. There are no options to renew the lease. Carmike Cinemas, Inc. is also required to pay percentage rent. Carmike Cinemas, Inc is a motion picture exhibitor with 307 theatres located in 37 states having a total of 2,469 screens as of September 30, 2005. Carmike Cinemas, Inc. targets small to mid-sized communities with populations ranging from 50,000 to 250,000. Eighty percent of the theatres are in markets with fewer than 100,000 people. In 2002 the Southern Hills Mall theatre was remodeled to include 12 screens with stadium seating and digital sound format. Carmike Cinemas, Inc. was founded in 1982 by Carl L. Patrick, Sr. and Michael W. Patrick who is currently Chief Executive Officer and Chairman of the Board of Directors. 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 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Southern Hills Mall Mortgage Loan is a $101.5 million, ten-year fixed rate loan secured by a first mortgage on a regional mall located in Sioux City, Woodbury County, Iowa. The Southern Hills Mall Mortgage Loan is interest only for the entire loan term, matures on June 1, 2016 and accrues interest at an annual rate of 5.794%. THE BORROWER: o The Southern Hills Mall Borrower is SM Southern Hills Mall, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with at least two independent managers for which the Southern Hills Mall Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 100% by SDG Macerich Properties, L.P., a Delaware limited partnership. Through a series of intermediate ownership levels, equity ownership is eventually held 50% each by Simon Property Group, L. P. and The Macerich Partnership. o Simon Property Group, Inc. (NYSE: "SPG") (rated "BBB+" by Fitch and "A-" by S&P), the largest publicly traded real estate investment trust in North America, is engaged in the ownership, operation, leasing, management, acquisition, expansion and development of real estate properties, primarily regional malls, outlet centers and community shopping centers. Simon Property Group, Inc. owns or holds an interest in 296 properties consisting of 172 regional malls, 30 outlet centers, 71 community shopping centers and 23 other properties containing a total of approximately 200 million square feet located in 39 states and Puerto Rico. Simon Property Group, Inc. also has interests in 12 parcels of land held in the United States for future development, 51 European shopping centers located in France, Italy, Poland and Portugal, four outlet centers located in Japan, one outlet center located in Mexico and one community shopping center located in Canada. Simon Property Group, Inc. provides leasing, management and development services to its properties. Simon Property Group, Inc. employs approximately 3,000 people. As of the fiscal year ended December 31, 2005, Simon Property Group, Inc. reported revenue of approximately $3.2 billion, net income of $475.7 million and stockholder equity of $4.3 billion. o The Macerich Company (NYSE: "MAC") (not rated) is a real estate investment company engaged in the acquisition, ownership, development, redevelopment, management and leasing of regional malls and community shopping centers. The Macerich Company owns or holds an interest in 98 properties consisting of 76 regional malls, 20 community shopping centers and two development/redevelopment projects containing a total of 80.0 million square feet located throughout the United States. The Macerich Company employs approximately 4,500 people. As of the fiscal year ended December 31, 2005, the Macerich Company reported revenue of approximately $767.4 million, net income of $71.7 million and stockholder equity of $827.1 million THE PROPERTY: o The Southern Hills Mall Mortgaged Property consists of a fee simple interest in a regional mall built in 1980 and most recently renovated in 2003. The collateral improvements containing a total of 573,370 gross leasable square feet situated on 86.13 acres consist of the Younkers, Hy-Vee and Scheels All Sports anchor tenant buildings and the in-line mall stores. o There are approximately 93 additional tenants ranging in size from 185 to 40,386 square feet. Tenants over 8,000 square feet are Cinema 12, Barnes & Noble, Tuesday Morning, The Gap and Red Lobster. The additional tenants together occupy 56.6% of the total square feet and contribute 82.1% of the gross potential rental income. Sears (122,792 square feet) and JC Penney (100,000 square feet) are non-collateral, ground leased shadow anchor tenants. Including Sears and JC Penney, there is a total of 796,162 square feet in the Southern Hills Mall. o The Southern Hills Mall Mortgaged Property is located in the southeast portion of the Sioux City metropolitan statistical area approximately seven miles from the Sioux City central business district. U.S. Highway 20 borders to the south and the Interstate 29 and U.S. Highway 20 interchange is approximately 1 mile west. o The Southern Hills Mall Borrower is generally required at its sole cost and expense to keep the Southern Hills Mall 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 Macerich Management Company manages the Southern Hills Mall Mortgaged Property. Macerich Management Company, founded in 1965 and headquartered in Santa Monica, California, currently manages 76 regional malls containing approximately 80 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. 40 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- COLLATERAL RELEASE AND SUBSTITUTION: o The Southern Hills Mall Borrower may, on a one-time basis, obtain a release of the lien of the mortgage encumbering Southern Hills Mall Mortgaged Property ("Release Property") by substituting therefor another retail property of like kind and quality acquired by the Southern Hills Mall Borrower (the "New Property"). In addition, any such substitution is permitted upon the satisfaction of the following terms and conditions including, without limitation: (a) Simon Property Group, Inc. or Macerich Company or an affiliate thereof, or a combination of them controls the Southern Hills Mall Borrower; (b) no event of default exists (other than an event of default which would be cured by the substitution of the New Property); (c) receipt by the mortgagee of a FIRREA appraisal of the New Property by a national appraisal firm dated no more than 180 days prior to the substitution, indicating that the fair market value of the New Property is not less than 110% of the greater of (i) the appraised value of the Release Property and (ii) the fair market value of the Release Property as of the date immediately preceding the substitution; (d) the net operating income for the New Property for the four calendar quarters preceding the substitution date (in the aggregate) is greater than 115% of the net operating income for the Release Property for the four calendar quarters immediately preceding the substitution date (in the aggregate); and (e) the mortgagee will receive confirmation from the rating agencies that such substitution will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with a securitization involving the Southern Hills Mall Mortgage Loan. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Southern Hills Mall Borrower is permitted to incur mezzanine financing upon the satisfaction of the following terms and conditions including, without limitation: (a) no event of default has occurred and is continuing; (b) a permitted mezzanine lender originates such mezzanine financing; (c) the mezzanine lender will have executed a subordination and intercreditor agreement in form and substance reasonably satisfactory to the mortgagee; (d) the amount of such mezzanine loan will not exceed an amount which, when added to the outstanding principal balance of the Southern Hills Mall Mortgage Loan, results in a maximum loan-to-value ratio greater than 80% and a minimum debt service coverage ratio less than 1.25x; and (e) the mortgagee will receive confirmation from the rating agencies that such mezzanine financing will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with a securitization involving the Southern Hills Mall 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. 41 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- SOUTHERN HILLS MALL - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL NOTE A PRINCIPAL BALANCE: $100,000,000 FIRST PAYMENT DATE: August 1, 2006 TERM/AMORTIZATION: 120/300 months MATURITY DATE: July 1, 2016 EXPECTED NOTE A MATURITY BALANCE: $78,884,709 BORROWING ENTITY: One Stamford Realty L.P. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout: 25 payments GRTR 1% PPMT or Yield Maintenance: 88 payments Open: 7 payments UP-FRONT RESERVES: TAX/INSURANCE RESERVE: Yes OTHER RESERVE(1): $10,000,000 ONGOING MONTHLY RESERVES: TAX/INSURANCE RESERVE: Yes LOCKBOX: Hard (1) Borrower has established the "UBS Reserve Account" which will be disbursed to the borrower on August 1, 2009 provided UBS is paying rent and has elected to take space under the UBS lease. See "Reserves" for additional information. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- WHOLE LOAN CUT-OFF DATE BALANCE: $133,843,790 NOTE A CUT-OFF DATE BALANCE: $99,883,426 NOTE B CUT-OFF DATE BALANCE(1): $33,960,365 SHADOW RATING (FITCH/S&P): A/A- WHOLE LOAN WHOLE LOAN (EXCLUDING (INCLUDING NOTE B)(1) NOTE B)(1) ---------- ----------- CUT-OFF DATE LTV: 59.5% 79.7% MATURITY DATE LTV: 47.0% 62.9% UNDERWRITTEN DSCR: 1.67x 1.23x MORTGAGE RATE(2): 6.373% 6.454% (1) The Note B is not part of the trust fund. (2) The interest rate was rounded to three decimal places and is subject to change prior to pricing. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB-TYPE: Central Business District LOCATION: Stamford, Connecticut YEAR BUILT/RENOVATED: 1972/2000 NET RENTABLE SQUARE FEET: 504,471 CUT-OFF DATE BALANCE PSF(1): $198 OCCUPANCY AS OF AUGUST 1, 2006: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Borrower/Owner Managed UNDERWRITTEN NET CASH FLOW: $13,334,094 APPRAISED VALUE: $168,000,000 (1) The Cut-off Date Balance per square foot including the Note B equals $265. 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 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- UNDERWRITTEN ------------ Effective Gross Income .......................................... $20,129,784 Total Expenses .................................................. $ 6,221,932 Net Operating Income (NOI) ...................................... $13,907,852 Cash Flow (CF) .................................................. $13,334,094 DSCR on NOI(1) .................................................. 1.74x DSCR on CF(2) ................................................... 1.67x (1) The debt service coverage ratio on net operating income including the Note B is 1.29x. (2) The debt service coverage ratio on cash flow including the Note B is 1.23x. - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS FITCH/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ----------------- --------- --------- -------- ------ ----------- ----------- ---------- UBS ............. AA+/AA+ 276,079 54.7% $38.33 $10,581,975 53.9% 12/31/2020 Purdue Pharma ... Not Rated 228,392 45.3 $39.62 9,047,951 46.1 12/31/2020 ------- ----- ----------- ----- TOTAL ........... 504,471 100.0% $19,629,926 100.0% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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. - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- # OF LEASES EXPIRING % OF CUMULATIVE CUMULATIVE BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF % OF TOTAL SF EXPIRING - ------------------ ----------- -------- -------- ---------- ------------- ----------- 2020 ............. 2 504,471 100.0% 504,471 100.0% $19,629,926 --- ------- ----- TOTAL ............ 2 504,471 100.0% (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. 45 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The two tenants, representing 100% of the total net rentable square feet are: o UBS (NYSE: "UBS") (rated "AA+" by Fitch and "AA+" by S&P) leases 276,079 square feet (54.7% of square feet, 53.9% of rental income) under a 15-year lease expiring on December 31, 2020. The current blended rental rate per square foot of $38.33 increases to $40.41 in lease years six to ten and $44.35 in lease years 11 to 15. The total of all options to renew the lease shall not exceed 30 years. UBS will take occupancy in the following phases: Phase 1 - second and third floors with a January 1, 2006 commencement date, rent commencing the later of November 1, 2006 or 300 days after the commencement date. UBS is currently in occupancy of Phase 1. Phase 2 - fourth and fifth floors with an April 1, 2007 commencement date, rent commencing the later of February 1, 2008 or 300 days after the commencement date. UBS is currently in occupancy of Phase 2. Phase 3 - sixth and seventh floors with an April 1, 2008 commencement date, rent commencing the later of February 1, 2009 or 300 days after the commencement date. Phase 4 - eighth floor on the first anniversary of the notice of election to lease the eighth floor as long as UBS gives notice of election to lease the eighth floor on or before April 1, 2007. If UBS elects to lease the eighth floor, they may elect to lease the ninth and tenth floors. During the first three years of the One Stamford Forum Mortgage Loan, free rent under the UBS lease will terminate in stages upon occupancy of its space by UBS. Until the time of rent commencement for each floor for UBS, Purdue Pharma (see below) will be responsible for paying the rent on the UBS space. UBS provides financial services worldwide under wealth management, asset management and investment banking and securities businesses. The wealth management business includes estate planning, corporate finance advice and banking services. The asset management business consists of investment solutions to financial intermediaries and institutional investors. The investment banking and securities business offers equity, equity-linked and equity derivative products to primary and secondary markets. In addition, UBS offers comprehensive banking and securities services for corporations, institutional investors, public entities and foundations, and financial institutions worldwide. UBS employs approximately 70,000 people. As of the fiscal year ended December 31, 2005, UBS reported revenue of approximately $76.3 billion, net income of $10.7 billion and stockholder equity of $39.5 billion. o PURDUE PHARMA (not rated) occupies 228,392 square feet (45.3% of square feet, 46.1% of rental income) under a 15-year lease expiring on December 31, 2020. The current blended rental rate per square foot of $39.62 increases to $41.61 in lease years six to ten and $43.19 in lease years 11 to 15. There are no options to renew the lease. Purdue Pharma is a privately owned pharmaceuticals company headquartered at the One Stamford Forum Mortgage Property. Purdue Pharma is primarily known for its pioneering research on easing persistent pain. Other therapeutic areas include respiratory diseases, oncology and bacterial infections. Non-prescription products include laxatives, microbicides, antibiotic ointments and nutraceuticals. Purdue Pharma focuses on serving the evolving needs of healthcare providers, patients and caregivers with prescription and non-prescription medicines. Besides the Stamford location, Purdue Pharma has research laboratories in Cranbury and Totowa, New Jersey, Wilson, North Carolina, and Coventry, Rhode Island. 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 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The One Stamford Forum Mortgage Loan, is a $100 million, ten-year fixed rate loan secured by a first mortgage on an office building located in Stamford, Fairfield County, Connecticut. The One Stamford Forum Mortgage Loan matures on July 1, 2016 and accrues interest at an annual rate, rounded to three decimal places, of 6.373%. THE BORROWER: o The One Stamford Forum Borrower is One Stamford Realty L.P., a Delaware limited partnership and a single purpose bankruptcy remote entity with at least one independent director for which the One Stamford Forum Borrower's legal counsel has provided a non-consolidation opinion. Equity ownership is held by 50.0% by Beacon Trust Company Ltd., 49.9% by Leslie J. Schreyer, Stephen A. Ives and Thomas Russo, and 0.1% by Rosebay Medical Company L.P., a Delaware limited partnership. The borrower principals are Beacon Company (Delaware), a Delaware general partnership, and Leslie J. Schreyer, Stephen A. Ives and Thomas Russo, as trustees of the 1974 Irrevocable Trust B under a Trust Agreement dated November 5, 1974 F.B.O. Beverly Sackler, et al, an irrevocable trust. o As of December 31, 2005, Beacon Company (Delaware) reported a net worth of $269.2 million and the 1974 Irrevocable Trust B reported a net worth of $88.0 million. The borrower principals are controlled by the Dr. Raymond Sackler and Dr. Mortimer Sackler, brothers and founders of Purdue Pharma. THE PROPERTY: o The One Stamford Forum Mortgaged Property consists of a fee simple interest in a Class "A" central business district office building built in 1972 and most recently renovated in 2000. The ten-story improvements contain 504,471 net rentable square feet and are situated on 6.05 acres. Building amenities include a two-story atrium, full service cafeteria, fitness room, raised floor data center and a 200-seat auditorium. Additional improvements include a three-level underground parking garage containing 1,058 parking spaces. o The One Stamford Forum Mortgaged Property is located in downtown Stamford, bordered by Interstate 95 to the north and two blocks from the Metro North Train Station. o The One Stamford Forum Mortgaged Property underwent a complete renovation in that was completed in 2000 as the cost of $61 million. The renovation included replacement of all interior finishes and fixtures, replacement of the majority of the mechanical systems, facade reglazing, upgrades to the elevator, electrical system, and fire protection system, and installation of the sprinkler system. o The One Stamford Forum Borrower is generally required at its sole cost and expense to keep the One Stamford Forum 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 One Stamford Forum Mortgaged Property is self-managed by the borrower principals. RESERVES: o The One Stamford Forum Borrower deposited $10,000,000 into a "UBS Reserve Account" at loan closing. Provided that no event of default exists under the One Stamford Forum Loan, the mortgagee is required to disburse the UBS reserve account funds to the One Stamford Forum Borrower on the scheduled payment date occurring in August 2009, provided that as a condition precedent to such disbursement, the One Stamford Forum Borrower provides (i) an Officer's Certificate from the One Stamford Forum Borrower in form and substance reasonably acceptable to the mortgagee certifying to the mortgagee that UBS is paying the full, contractual, unabated rent under the UBS lease for all the space UBS has elected to take under the UBS lease and that the UBS lease is in full force and effect with no defaults thereunder and (ii) an estoppel certificate from UBS in the form attached to the UBS lease certifying to the mortgagee, among other things, that UBS is paying the full rent under the UBS lease for all the space UBS elected to take under the UBS lease. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o A $34,000,000 Note B to be held outside of the Trust. 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. 47 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE STAMFORD FORUM - -------------------------------------------------------------------------------- [MAP OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Acquisition ORIGINAL PRINCIPAL BALANCE: $96,000,000 FIRST PAYMENT DATE: May 1, 2006 TERM/AMORTIZATION: 120/360 months INTEREST ONLY PERIOD: 60 months MATURITY DATE: April 1, 2016 EXPECTED MATURITY BALANCE: $89,862,266 BORROWING ENTITY: Ford Republic, LLC; Washington Republic, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout: 60 payments GRTR 1% PPMT or Yield Maintenance: 54 payments Open: 6 payments UP-FRONT RESERVES: TAX RESERVE: Yes TI/LC RESERVE(1): $4,500,000 ONGOING MONTHLY RESERVES: TAX RESERVE: Yes REPLACEMENT RESERVE(2): $4,892 LOCKBOX: Hard (1) The Republic Place Borrower has established the "International Union of Bricklayers Leasing Reserve Account" to cover the potential costs associated with releasing space to be vacated by the International Union of Bricklayers on December 31, 2006. (2) The monthly deposit shall be reduced to $1,797 commencing on May 1, 2014. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $96,000,000 CUT-OFF DATE LTV: 75.0% MATURITY DATE LTV: 70.2% UNDERWRITTEN DSCR: 1.03x INTEREST ONLY DSCR(1): 1.23x MORTGAGE RATE: 5.940% (1) Underwritten DSCR during partial Interest Only Period. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB-TYPE: Central Business District LOCATION: Washington, D.C. YEAR BUILT/RENOVATED: 1987/2002 NET RENTABLE SQUARE FEET: 213,475 CUT-OFF BALANCE PSF: $450 OCCUPANCY AS OF APRIL 17, 2006: 98.5% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Gates Hudson & Associates U/W NET CASH FLOW: $7,101,632 APPRAISED VALUE: $128,000,000 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. 50 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR FULL YEAR FULL YEAR (12/31/2003) (12/31/2004) (12/31/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ............. $8,910,321 $9,016,343 $9,819,487 $10,995,163 Total Expenses ..................... $3,013,404 $2,832,779 $3,341,254 $ 3,620,123 Net Operating Income (NOI) ......... $5,896,917 $6,183,564 $6,478,233 $ 7,375,040 Cash Flow (CF) ..................... $5,896,917 $6,183,564 $6,478,233 $ 7,101,632 DSCR on NOI ........................ 0.86x 0.90x 0.94x 1.07x DSCR on CF ......................... 0.86x 0.90x 0.94x 1.03x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF TOP TENANTS FITCH/S&P TENANT SF TOTAL SF - ---------------------------------------- --------- --------- -------- International Union of Bricklayers ..... Not Rated 53,706 25.2% Nuclear Energy Institute, Inc. ......... Not Rated 45,814 21.5 Regus Business Centre Corp. ............ Not Rated 22,558 10.6 Merrill Communications, LLC ............ Not Rated 13,244 6.2 ------- ---- TOTAL .................................. 135,322 63.4% RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS PSF RENT RENT EXPIRATION - ---------------------------------------- ------ ---------- ----------- ---------- International Union of Bricklayers ..... $52.00(2) $2,792,712 28.2% 12/31/2006 Nuclear Energy Institute, Inc. ......... $43.70 2,001,943 20.2 12/31/2012 Regus Business Centre Corp. ............ $46.59 1,050,977 10.6 06/30/2009 Merrill Communications, LLC ............ $44.97 595,544 6.0 10/31/2008 ---------- ---- TOTAL .................................. $6,441,177 65.0% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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. (2) The underwritten rent per square foot assumes that the space will, upon lease expiration, be relet at market rental rates. The International Union of Bricklayers currently pays rent per square foot of $40.42. - -------------------------------------------------------------------------------- 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 ............. 2 54,921 25.7% 54,921 25.7% $2,848,772 2007 ............. 4 15,088 7.1 70,009 32.8% $ 667,727 2008 ............. 4 18,061 8.5 88,070 41.3% $ 790,865 2009 ............. 7 43,210 20.2 131,280 61.5% $1,962,371 2010 ............. 5 27,008 12.7 158,288 74.1% $1,201,542 2012 ............. 5 47,638 22.3 205,926 96.5% $2,086,431 2015 ............. 1 4,276 2.0 210,202 98.5% $ 191,864 Vacant ........... -- 3,273 1.5 213,475 100.0% $ 153,812 --- ------- ----- TOTAL ............ 28 213,475 100.0% (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. 51 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS - -------------------------------------------------------------------------------- The four largest tenants, representing 63.1% of the total net rentable square feet are: o INTERNATIONAL UNION OF BRICKLAYERS (not rated) occupies 53,706 square feet (25.2% of square feet, 28.2% of rental income) under a ten-year lease expiring on December 31, 2006. International Union of Bricklayers has given notice that it intends to vacate its space upon lease expiration. At closing the Republic Place Mortgage Borrower deposited $4,500,000 into the "International Union of Bricklayers Leasing Reserve Account" to cover any costs associated with re-leasing the space. o NUCLEAR ENERGY INSTITUTE, INC. (not rated) occupies 45,814 square feet (21.5% of square feet, 20.2% of rental income) under a 25-year lease expiring on December 31, 2012. The rental rate increases annually by 2%. There is one five-year option to renew the lease with the rental rate determined at 95% of the then fair market. The Nuclear Energy Institute is the policy organization of the nuclear energy and technologies industry that participates in both the national and global policy-making process. The Nuclear Energy Institute's objective is to ensure the formation of policies that promote the beneficial uses of nuclear energy and technologies in the United States and around the world. o REGUS BUSINESS CENTRE CORP. (not rated) occupies 22,558 square feet (10.6% of square feet, 10.6% of rental income) under a ten-year lease expiring on June 30, 2009. The rental rate increases annually by 2%. There are no options to renew the lease. Regus Business Centre offers existing businesses and small start-up businesses office space, meeting rooms and video conferencing rooms to assist businesses in their daily activities. Regus Business Centre offers clients IT services, including desktop publishing, and administrative support. o MERRILL COMMUNICATIONS, LLC (not rated) occupies a total of 13,244 square feet (6.2% of square feet, 6.0% of rental income) under two leases of various terms, of which one is an 18-year lease for 9,866 square feet and one is a five-year lease for 3,378 square feet, both expiring on October 31, 2008. The rental rates increase annually by 2%. There are no options to renew the leases. Merrill Communications provides outsourced business communication and information management services to clients in the legal, financial services, insurance and real estate industries. Merrill Communication's services include preparing and delivering electronic filings to the Securities and Exchange Commission, producing annual reports and creating other time-sensitive documents. Merrill Communications also offers business printing, graphic design and fulfillment services. 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 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- THE LOAN: o The Republic Place Mortgage Loan is a $96.0 million, ten-year fixed rate loan secured by a first mortgage on an office building located in Washington, D.C. The Republic Place Mortgage Loan is interest only for the first five years of the loan term, matures on April 1, 2016 and accrues interest at an annual rate of 5.940%. THE BORROWER: o The Republic Place Borrowers are Washington Republic, LLC (62.5%) and Ford Republic, LLC (37.5%) as tenants in common, both of which are Delaware limited liability companies and single purpose bankruptcy remote entities with at least two independent directors for which the Republic Place Borrowers' legal counsel has delivered non-consolidation opinions. Equity ownership of Washington Republic, LLC is held 100% by Washington Properties, LLC, a Delaware limited liability company. Equity ownership of Ford Republic, LLC is held 100% by Equity Ford, LLC, a Delaware limited liability company. The borrower principal is Ralph Dweck. o Mr. Dweck has 33 years of experience in the ownership and acquisition of commercial real estate in the Washington, D.C. area. Mr. Dweck has developed or acquired approximately 4.0 million square feet of office, warehouse and retail space together with approximately 3,500 multifamily units. Mr. Dweck has acquired approximately $500 million in office space in the Washington, D.C. area over the past two years. THE PROPERTY: o The Republic Place Mortgaged Property consists of a fee simple interest in a Class "A" office building built in 1987. The ten-story improvements contain 213,475 net rentable square feet and are situated on 0.62 acres. Additional improvements consist of a parking garage containing 127 parking spaces. Building amenities include a concierge, rooftop terrace, an exercise facility with men's and women's locker rooms, two restaurants and tenant-accessed balconies. The Republic Place Mortgaged Property is currently occupied by 19 office tenants ranging in size from 1,824 to 53,706 square feet and five retail tenants ranging in size from 943 to 5,260 square feet. o The Republic Place Mortgaged Property is located in the Washington, D.C. market and the Central Business District submarket, which contains approximately 31.9 million square feet of office space with an average occupancy level of 92.8% and an average full-service rental rate per square foot of $50.39 and an average triple net rental rate per square foot of $37.19. The Republic Place Mortgaged Property is located approximately two blocks from the White House. o The Republic Place Borrower is generally required at its sole cost and expense to keep the Republic Place 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 Gates Hudson & Associates manages the Republic Place Mortgaged Property. Gates Hudson & Associates, founded in 1980 and headquartered in Washington, D.C., currently manages approximately 2.7 million square feet of office space and approximately 7,800 multifamily units located in the Washington, D.C. market. Jones Lang LaSalle handles the leasing. Jones Lang LaSalle, founded in 1963 and headquartered in Chicago, currently manages more than 2,000 commercial real estate properties totaling approximately 927 million square feet. Jones Lang LaSalle has offices in more than 100 markets on five continents employing more than 22,000 people. 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. 53 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- REPUBLIC PLACE - -------------------------------------------------------------------------------- [MAP OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $94,000,000 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/0 months INTEREST ONLY PERIOD: 120 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $94,000,000 BORROWING ENTITY: SM Rushmore Mall, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 113 payments Open: 7 payments FUTURE MEZZANINE DEBT Yes LOCKBOX: Hard - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $94,000,000 CUT-OFF DATE LTV: 80.0% MATURITY DATE LTV: 80.0% UNDERWRITTEN DSCR: 1.31x MORTGAGE RATE: 5.794% - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Retail PROPERTY SUB-TYPE: Anchored LOCATION: Rapid City, South Dakota YEAR BUILT/RENOVATED: 1978/1993 NET RENTABLE SQUARE FEET: 737,725 CUT-OFF BALANCE PSF: $127 OCCUPANCY AS OF MARCH 31, 2006: 95.4% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Macerich Management Company UNDERWRITTEN NET CASH FLOW: $7,251,832 APPRAISED VALUE: $117,500,000 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. 56 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR FULL YEAR FULL YEAR (12/31/2003) (12/31/2004) (12/31/2005) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ............. $11,349,780 $10,848,658 $11,688,562 $11,893,042 Total Expenses ..................... $ 4,032,438 $ 3,987,321 $ 4,115,550 $ 4,131,598 Net Operating Income (NOI) ......... $ 7,317,342 $ 6,861,337 $ 7,573,012 $ 7,761,445 Cash Flow (CF) ..................... $ 7,317,342 $ 6,861,337 $ 7,573,012 $ 7,251,832 DSCR on NOI ........................ 1.33x 1.24x 1.37x 1.41x DSCR on CF ......................... 1.33x 1.24x 1.37x 1.31x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS FITCH/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ------------------------------------ --------- --------- -------- ----- ---------- ----------- ---------- Sears .............................. BB/BB+ 124,215 16.8% $2.82 $ 350,286 4.8% 09/30/2009 J.C. Penney ........................ BBB-/BBB- 89,909 12.2 $3.65 328,168 4.5 08/31/2008 Herberger's ........................ CCC/B+ 88,977 12.1 $5.75 511,618 7.0 01/31/2008 Hobby Lobby Creative Center ........ Not Rated 66,000 8.9 $5.75 379,500 5.2 08/31/2009 ------- ---- ---------- ---- TOTAL .............................. 369,101 50.0% $1,569,572 21.4% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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) - -------------------------------------------------------------------------------- CUMULATIVE # OF LEASES EXPIRING % OF CUMULATIVE % OF BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF TOTAL SF EXPIRING - ------------------ ----------- -------- -------- ---------- ---------- ---------- 2006 ............. 4 12,219 1.7% 12,219 1.7% $ 99,372 2007 ............. 5 11,231 1.5 23,450 3.2% $ 190,194 2008 ............. 10 202,054 27.4 225,504 30.6% $1,402,147 2009 ............. 19 279,238 37.9 504,742 68.4% $2,064,358 2010 ............. 8 56,570 7.7 561,312 76.1% $ 605,274 2011 ............. 6 18,447 2.5 579,759 78.6% $ 388,579 2012 ............. 2 3,855 0.5 583,614 79.1% $ 97,696 2013 ............. 7 9,502 1.3 593,116 80.4% $ 373,849 2014 ............. 9 24,652 3.3 617,768 83.7% $ 515,128 2015 ............. 3 10,351 1.4 628,119 85.1% $ 183,235 2016 ............. 7 16,591 2.2 644,710 87.4% $ 395,188 2017 ............. 1 7,217 1.0 651,927 88.4% $ 76,572 2018 ............. 1 23,500 3.2 675,427 91.6% $ 235,000 MTM .............. 9 29,423 4.0 704,850 95.5% $ 196,393 Vacant ........... -- 32,875 4.5 737,725 100.0% $ 502,988 --- ------- ----- TOTAL ............ 91 737,725 100.0% (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. 57 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS - -------------------------------------------------------------------------------- The four largest tenants, representing 50.0% of the total net rentable square feet are: o SEARS (NASDAQ: "SHLD") (rated "BB" by Fitch and "BB+" by S&P) occupies 124,215 square feet (16.8% of square feet, 4.8% of rental income) under a five-year lease renewal period expiring on September 30, 2009. The current rental rate per square foot of $2.82 remains constant throughout the renewal period. There are two five-year options remaining to renew the lease. Sears is also required to pay percentage rent equal to 2.5% of sales in excess of $14,000,000, 2.0% of sales in excess of $15,500,000 and 1.5% of sales in excess of $16,500,000. Sears Holdings Corporation operates as a retailer in the United States and Canada. Sears operates full-line stores that offer an array of products, including home appliances, consumer electronics, tools, fitness, lawn and garden equipment, automotive services and products, such as tires and batteries, and home fashion products, as well as apparel, footwear, health, beauty, pantry, household products and toys. The Kmart segment operates stores that offer general merchandise, including products sold under labels, such as Jaclyn Smith, Joe Boxer and Martha Stewart Everyday, as well as in-store pharmacies. Sears operates approximately 3,900 full-line and specialty retail stores in the United States and Canada and employs approximately 355,000 people. As of the fiscal year ended January 28, 2006, Sears Holdings Corporation reported revenue of approximately $49.1 billion, net income of $858.0 million and stockholder equity of $11.6 billion. o J.C. PENNEY (NYSE: "JCP") (rated "BBB-" by Fitch and "BBB-" by S&P) occupies 89,909 square feet (12.2% of square feet, 4.5% of rental income) under a five-year lease renewal period expiring on August 31, 2008. The rental rate per square foot of $3.65 remains constant throughout the renewal period. There are three five-year options remaining to renew the lease. J.C. Penney is also required to pay percentage rent equal to 1.5% of sales in excess of $16,408,400. J.C. Penney is a multi-line retailer selling family apparel, jewelry, shoes, accessories and home furnishings. J.C. Penney operates 1,021 department stores located in 49 states and Puerto Rico. J.C. Penney employs approximately 151,000 people. As of the fiscal year ended January 28, 2006, J.C. Penney reported revenue of approximately $18.8 billion, net income of $1.1 billion and stockholder equity of $4.0 billion. o HERBERGER'S (Bon-Ton Stores, NASDAQ: "BONT") (rated "CCC" by Fitch and "B+" by S&P) occupies 88,977 square feet (12.1% of square feet, 7.0% of rental income) under a 15-year lease expiring on January 31, 2008. The current rental rate per square foot of $5.75 remains constant throughout the term. There are four five-year options to renew the lease. Herberger's is also required to pay percentage rent equal to the amount by which 2.5% of sales exceeds $17,054,000. Herberger's operates more than 40 department stores located throughout the Midwest. Herberger's offers an assortment of apparel and accessories for men, women, teens and children. Selections include both famous designers and the Herberger's own exclusive collections. Herberger's is an operating division of Bon-Ton Stores. Bon-Ton Stores offers an assortment of apparel and accessories for women, men and children, intimate apparel, footwear, cosmetics and home furnishings. Bon-Ton Stores operates 279 stores located in 23 states under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers brand names. Bon-Ton Stores employs approximately 33,500 people. As of the fiscal year ended January 28, 2006, Bon-Ton Stores reported revenue of approximately $1.3 billion, net income of $26.0 million and stockholder equity of $292.1 million. o HOBBY LOBBY CREATIVE CENTER (not rated). Hobby Lobby Creative Center occupies 66,000 square feet (8.9% of square feet, 5.2% of rental income) under a ten-year lease expiring on August 31, 2009 with two five-year renewal options. The current rental rate of $5.75 per square foot increases to $6.25 per square foot for the first renewal period and increases to $6.75 per square foot for the second renewal period. Hobby Lobby Creative Center, started in 1972, has expanded to 378 stores in 29 states (as of July 2006) with projected sales of 1.65 billion dollars in 2006. Hobby Lobby Creative Centers departments carry products that include crafts, hobbies, picture framing, jewelry making, fashion fabrics, floral, cards & party, baskets, wearable art, home accents, and holiday supplies. 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 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- THE LOAN: o The Rushmore Mall Mortgage Loan is a $94.0 million, ten-year fixed rate loan secured by a first mortgage on a regional mall located in Rapid City, Pennington County, South Dakota. The Rushmore Mall Mortgage Loan is interest only for the entire loan term, matures on June 1, 2016 and accrues interest at an annual rate of 5.794%. THE BORROWER: o The Rushmore Mall Borrower is SM Rushmore Mall, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with at least two independent members for which the Rushmore Mall Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 100% by SDG Macerich Properties, L.P., a Delaware limited partnership. Through a series of intermediate ownership levels, equity ownership is eventually held 50% each by Simon Property Group, L. P. and The Macerich Partnership. o Simon Property Group, Inc. (NYSE: "SPG") (rated "BBB+" by Fitch and "A-" by S&P), the largest publicly traded real estate investment trust in North America, is engaged in the ownership, operation, leasing, management, acquisition, expansion and development of real estate properties, primarily regional malls, outlet centers and community shopping centers. Simon Property Group, Inc. owns or holds an interest in 296 properties consisting of 172 regional malls, 30 outlet centers, 71 community shopping centers and 23 other properties containing a total of approximately 200 million square feet located in 39 states and Puerto Rico. Simon Property Group, Inc. also has interests in 12 parcels of land held in the United States for future development, 51 European shopping centers located in France, Italy, Poland and Portugal, four outlet centers located in Japan, one outlet center located in Mexico and one community shopping center located in Canada. Simon Property Group, Inc. provides leasing, management and development services to its properties. Simon Property Group, Inc. employs approximately 3,000 people. As of the fiscal year ended December 31, 2005, Simon Property Group, Inc. reported revenue of approximately $3.2 billion, net income of $475.7 million and stockholder equity of $4.3 billion. o The Macerich Company (NYSE: "MAC") (not rated) is a real estate investment company engaged in the acquisition, ownership, development, redevelopment, management and leasing of regional malls and community shopping centers. The Macerich Company owns or holds an interest in 98 properties consisting of 76 regional malls, 20 community shopping centers and two development/redevelopment projects containing a total of 80.0 million square feet located throughout the United States. The Macerich Company employs approximately 4,500 people. As of the fiscal year ended December 31, 2005, the Macerich Company reported revenue of approximately $767.4 million, net income of $71.7 million and stockholder equity of $827.1 million. THE PROPERTY: o The Rushmore Mall Mortgaged Property consists of a fee simple interest in a regional mall built in 1978 and most recently renovated in 1993. The collateral improvements containing a total of 737,725 gross leasable square feet situated on 80.71 acres consist of the Sears, J.C. Penney and Herberger's anchor tenant buildings and the in-line mall stores. o There are approximately 87 in-line tenants ranging in size from 150 to 66,000 square feet. Tenants over 8,000 square feet are Hobby Lobby Creative Center, Scheels All Sports, Toys "R" Us, Rushmore VII, Old Navy, Lady Foot Locker/Kids Foot Locker, The Gap/Gap Kids and Red Lobster. The in-line tenants together occupy 58.9% of the total square feet and contribute 83.7% of the gross potential rental income. Target (101,559 square feet) is a non-collateral, ground leased shadow anchor tenant. Including Target, there is a total of 839,284 square feet in the Rushmore Mall. o The Rushmore Mall Mortgaged Property is located in the north central portion of the Rapid City metropolitan statistical area, approximately seven miles west of Ellsworth Air Force Base. Land uses in the area include retail, hotel, and industrial. Interstate 90 lies just south of the Rushmore Mall Mortgaged Property. o The Rushmore Mall Borrower is generally required at its sole cost and expense to keep the Rushmore Mall 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. 59 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- PROPERTY MANAGEMENT: o Macerich Management Company manages the Rushmore Mall Mortgaged Property. Macerich Management Company, founded in 1964 and headquartered in Santa Monica, California, currently manages 76 regional malls containing approximately 80 million square feet. COLLATERAL RELEASES AND SUBSTITUTION: o The Rushmore Mall Borrower may, on a one-time basis, obtain a release of the lien of the mortgage encumbering Rushmore Mall Mortgaged Property ("Release Property") by substituting therefor another retail property of like kind and quality acquired by the Rushmore Mall Borrower (the "New Property"). In addition, any such substitution is permitted upon the satisfaction of the following terms and conditions including, without limitation: (a) Simon Property Group, Inc. or Macerich Company or an affiliate thereof, or a combination of them controls the Rushmore Mall Borrower; (b) no event of default exists (other than an event of default which would be cured by the substitution of the New Property); (c) receipt by the mortgagee of a FIRREA appraisal of the New Property by a national appraisal firm dated no more than 180 days prior to the substitution, indicating that the fair market value of the New Property is not less than 110% of the greater of (i) the appraised value of the Release Property and (ii) the fair market value of the Release Property as of the date immediately preceding the substitution; (d) the net operating income for the New Property for the four calendar quarters preceding the substitution date (in the aggregate) is greater than 115% of the net operating income for the Release Property for the four calendar quarters immediately preceding the substitution date (in the aggregate); and (e) the mortgagee will receive confirmation from the rating agencies that such substitution will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with a securitization involving the Rushmore Mall Mortgage Loan. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o None. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The Rushmore Mall Borrower is permitted to incur mezzanine financing upon the satisfaction of the following terms and conditions including, without limitation: (a) no event of default has occurred and is continuing; (b) a permitted mezzanine lender originates such mezzanine financing; (c) the mezzanine lender will have executed a subordination and intercreditor agreement in form and substance reasonably satisfactory to the mortgagee; (d) the amount of such mezzanine loan will not exceed an amount which, when added to the outstanding principal balance of the Rushmore Mall Mortgage Loan, results in a maximum loan-to-value ratio greater than 80% and a minimum debt service coverage ratio less than 1.25x; and (e) the mortgagee will receive confirmation from the rating agencies that such mezzanine financing will not result in a downgrade, withdrawal or qualification of any ratings issued, or to be issued, in connection with a securitization involving the Rushmore Mall 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. 60 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- RUSHMORE MALL - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- [2 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $90,000,000 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/360 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $75,323,697 BORROWING ENTITY: FBI Chicago Partners, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments EXISTING MEZZANINE DEBT: $30,000,000 mezzanine loan FUTURE MEZZANINE DEBT: Yes LOCKBOX: Hard - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $89,815,875 CUT-OFF DATE LTV: 46.1% MATURITY DATE LTV: 38.6% UNDERWRITTEN DSCR: 2.07x MORTGAGE RATE(1): 5.490% SHADOW RATING (FITCH/S&P): AAA/AA- (1) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB-TYPE: Suburban LOCATION: Chicago, Illinois YEAR BUILT/RENOVATED: 2006/NAP NET RENTABLE SQUARE FEET: 429,728 CUT-OFF BALANCE PSF: $209 OCCUPANCY AS OF AUGUST 1, 2006: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Quorum Real Estate Services Corporation UNDERWRITTEN NET CASH FLOW: $12,685,596 APPRAISED VALUE: $195,000,000 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. 63 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- UNDERWRITTEN ------------ Effective Gross Income .......................................... $19,548,327 Total Expenses .................................................. $ 6,798,272 Net Operating Income (NOI) ...................................... $12,750,055 Cash Flow (CF) .................................................. $12,685,596 DSCR on NOI ..................................................... 2.08x DSCR on CF ...................................................... 2.07x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS FITCH/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ----------------------------------------- --------- --------- -------- ------ ----------- ----------- ---------- United States of America -- GSA ......... AAA/AAA 429,728 100.0% $45.49 $19,548,327 100.0% 03/31/2020 ------- ----- ----------- ----- TOTAL ................................... 429,728 100.0% $19,548,327 100.0% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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) - -------------------------------------------------------------------------------- CUMULATIVE # OF LEASES EXPIRING % OF CUMULATIVE % OF BASE RENT YEAR OF EXPIRATION EXPIRING SF TOTAL SF TOTAL SF TOTAL SF EXPIRING - ------------------ ----------- -------- -------- ---------- ---------- ----------- 2020 ............. 1 429,728 100.0% 429,728 100.0% $19,548,327 --- ------- ----- TOTAL ............ 1 429,728 100.0% (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. 64 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS The single tenant representing 100.0% of the total net rentable square feet is: o UNITED STATES OF AMERICA -- GSA Federal Bureau of Investigation ("FBI") (rated "AAA" by Fitch and "AAA" by S&P) occupies 429,728 square feet (100.0% of square feet, 100.0% of rental income) under a 14-year lease expiring on March 31, 2020. The rental rate per square foot of $45.49 remains constant during the initial lease term. There are two ten-year options to renew the lease with the rental rate per square feet increasing to $48.92 per square foot and $52.22 per square foot respectively. The FBI is the investigative arm of the United States Department of Justice. The FBI protects and defends the United States against terrorist and foreign intelligence threats, upholds and enforces the criminal laws of the United States, and provides leadership and criminal justice services to federal, state, municipal, and international agencies and partners. FBI Special Agents and support personnel organize and coordinate FBI activities around the world. The FBI collects, analyzes and sends information to field offices, state and municipal police departments, and other federal agencies, such as the Department of Homeland Security. The FBI operates out of 56 field offices and 400 satellite 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. 65 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The FBI Regional HQ Building Mortgage Loan is a $90.0 million, ten-year fixed rate loan secured by a first mortgage on an office building located in Chicago, Cook County, Illinois. The FBI Regional HQ Building Mortgage Loan matures on June 1, 2016 and accrues interest at an annual rate, rounded to three decimal places, of 5.490%. THE BORROWER: o The FBI Regional HQ Building Borrower is FBI Chicago Partners, LLC, a Delaware limited liability company and a single purpose bankruptcy remote entity with at least one independent director for which the FBI Regional HQ Building Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 50% each by FBI CP Investors, LLC, a Delaware limited liability company, as the Member of the FBI Regional HQ Building Borrower and Ness Chicago, LLC, an Illinois limited liability company. o Equity ownership of FBI CP Investors, LLC is eventually held 45% by John W. Higgins, 30% by Thomas R. Samuels, 20% by Thomas A. Finnerty and 5% by Dietrich A. Knoer. Equity ownership of Ness Chicago, LLC is eventually held 100% by United Services Automobile Association. o The sponsor of the FBI Regional HQ Building Mortgage Loan is Higgins Development Partners. Higgins Development Partners is headquartered in Chicago, with additional offices located in Washington, D.C., San Francisco and Toronto. Higgins Development Partners delivers comprehensive real estate development services to a wide range of corporate, institutional and public sector clients throughout North America. Projects include office and industrial buildings, life-science and technology facilities, government and institutional facilities, bio-medical laboratories, law enforcement and other highly secure facilities, and mixed-use land development projects. THE PROPERTY: o The FBI Regional HQ Building Mortgaged Property consists of a fee simple interest in a Class "A" urban office building constructed in 2006. Situated on 10.87 acres the build-to-suit improvements consist of a ten-story main building and a one-story annex building containing a total of 429,728 net rentable square feet. Security includes 24-hour camera surveillance, automated entry door controls with card readers, exterior wall blast resistance and a pedestrian and vehicle perimeter barrier. The building is fully sprinklered and a high-rise life safety fire alarm system is installed. Additional improvements include a two-level underground parking garage containing 595 spaces and a two-level above ground parking garage containing 190 spaces for a total of 785 spaces, all of which are secured. Five elevators serve the main building and three elevators serve the underground parking garage. o The FBI Regional HQ Building is located approximately 3.5 miles west of downtown Chicago in the Illinois Medical District. The District includes 560 acres of medical research facilities, laboratories, bio-technology business incubators, universities and over 40 healthcare related facilities. Institutions include Rush-Presbyterian-St. Luke's Medical Center, University of Illinois Medical Center, Cook County Health Services and the Westside Veterans Administration Medical Center. o The FBI Regional HQ Building Borrower is generally required at its sole cost and expense to keep the FBI Regional HQ Building 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. 66 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- PROPERTY MANAGEMENT: o Quorum Real Estate Services Corporation d/b/a USAA Realty Company manages the FBI Regional HQ Building Mortgaged Property. USAA Realty Company, founded in 1976 and headquartered in Arlington, Virginia, currently manages approximately 35 million square feet of commercial properties. CURRENT MEZZANINE OR SUBORDINATE INDEBTEDNESS: o The FBI Regional HQ Building Borrower has incurred mezzanine financing ("Existing Mezzanine Loan") in the amount of $30,000,000 that is held outside the Trust. The Existing Mezzanine Loan is subject to an intercreditor agreement. The 36-month, adjustable rate, interest only Existing Mezzanine Loan is secured by a pledge of the direct and/or indirect ownership interests in the FBI Regional HQ Building Borrower. FUTURE MEZZANINE OR SUBORDINATE INDEBTEDNESS: o In the event that the Existing Mezzanine Loan is repaid prior to the maturity of the FBI Regional HQ Building Mortgage Loan, FBI Regional HQ Building Borrower is permitted to incur mezzanine financing ("New Mezzanine Loan") upon the satisfaction of the following terms and conditions, including without limitation: (a) no event of default has occurred and is continuing; (b) a permitted mezzanine lender originates such mezzanine financing; (c) the mezzanine lender will have executed an intercreditor agreement in form and substance reasonably acceptable to the mortgagee; (d) to the extent that the New Mezzanine Loan will be in excess of $30,000,000, the amount of such New Mezzanine Loan will not exceed an amount which, when added to the outstanding principal balance of the FBI Regional HQ Building Mortgage Loan, results in a maximum loan-to-value ratio greater than 75% and a minimum debt service coverage ratio (as calculated by the mortgage on a trailing 12-month basis) less than 1.05x; and (e) the mortgagee will have received confirmation from the rating agencies that such mezzanine financing will not result in a downgrade, withdrawal or qualification of the ratings issued, or to be issued, in connection with a securitization involving the FBI Regional HQ Building Mortgage Loan. Proceeds of the Mezzanine Loan or a New Mezzanine Loan may be used with respect to any expansion of the FBI Regional HQ Building Mortgaged Property undertaken at the request of the FBI. 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 2006-3 - -------------------------------------------------------------------------------- FBI REGIONAL HQ BUILDING - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- [3 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $80,000,000 FIRST PAYMENT DATE: June 1, 2006 TERM/AMORTIZATION: 120/0 months INTEREST ONLY PERIOD: 120 months MATURITY DATE: May 1, 2016 EXPECTED MATURITY BALANCE: $80,000,000 BORROWING ENTITY: One Campus Drive LL, LLC INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 116 payments Open: 4 payments ONGOING MONTHLY RESERVES: TI/LC RESERVE(1) $53,098 LOCKBOX: Hard (1) The TI/LC Reserve is capped at $3,770,000. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $80,000,000 CUT-OFF DATE LTV: 74.8% MATURITY DATE LTV: 74.8% UNDERWRITTEN DSCR: 1.39 x MORTGAGE RATE(1): 6.151% (1) The interest rate was rounded to three decimal places. - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Office PROPERTY SUB-TYPE: Suburban LOCATION: Parsippany, New Jersey YEAR BUILT/RENOVATED: 1979/1996 NET RENTABLE SQUARE FEET: 377,000 CUT-OFF DATE BALANCE PSF: $212 OCCUPANCY AS OF AUGUST 1, 2006: 100.0% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Cendant Corporation UNDERWRITTEN NET CASH FLOW: $6,947,240 APPRAISED VALUE: $107,000,000 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. 70 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR (12/31/2005) UNDERWRITTEN ------------ ------------ Effective Gross Income ...... $7,238,412 $ 7,700,225 Total Expenses .............. $ 44,005 $ 88,202 Net Operating Income (NOI) .. $7,194,406 $ 7,612,023 Cash Flow (CF) .............. $7,194,406 $ 6,947,240 DSCR on NOI ................. 1.44x 1.53x DSCR on CF .................. 1.44x 1.39x - -------------------------------------------------------------------------------- TENANT INFORMATION(1) - -------------------------------------------------------------------------------- RATINGS TOTAL % OF RENT POTENTIAL % POTENTIAL LEASE TOP TENANTS FITCH/S&P TENANT SF TOTAL SF PSF RENT RENT EXPIRATION - ----------------------------- --------- --------- -------- ------ ---------- ----------- ---------- Cendant Corporation ......... BBB+/BBB+ 377,000 100.0% $21.50 $8,105,500 100.0% 10/31/2013 ------- ----- ---------- ----- TOTAL ....................... 377,000 100.0% $8,105,500 100.0% (1) Information obtained from underwritten rent roll except for Ratings (Fitch/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 BASE LEASES EXPIRING % OF TOTAL CUMULATIVE CUMULATIVE % RENT YEAR OF EXPIRATION EXPIRING SF SF TOTAL SF OF TOTAL SF EXPIRING - ------------------ -------- -------- ---------- ---------- ------------ ---------- 2013 ............. 1 377,000 100.0% 377,000 100.0% $8,105,500 --- ------- ----- TOTAL ............ 1 377,000 100.0% (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. 71 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT TENANTS - -------------------------------------------------------------------------------- The single tenant representing 100.0% of the total net rentable square feet is: o CENDANT CORPORATION (rated "BBB+ by Fitch and "BBB+" by S&P) occupies 377,000 square feet (100.0% of the square feet, 100.0% of rental income) under a 12-year lease expiring on October 31, 2013. The current rental rate per square foot of $21.50 increases to $24.00 on November 1, 2011. There are two options to renew the lease for five or ten years, as Cendant Corporation may elect. Cendant Operations is an operating division of Cendant Corporation. Cendant Corporation provides real estate and travel services primarily in the United States and the United Kingdom. Cendant Operations operates in five segments: Real Estate Services, Hospitality Services, Timeshare Resorts, Travel Distribution Services and Vehicle Rental. o The Real Estate Services segment franchises real estate brokerage businesses. The Hospitality Services segment franchises hotels under various brand names, as well as facilitates the exchange of vacation ownership intervals. The Timeshare Resorts segment sells and markets vacation ownership interests, as well as provides property management services to property owners associations. The Travel Distribution Services segment markets, sells and distributes travel and travel-related products and services to traditional and online travel agents on behalf of travel suppliers, such as airlines, hotels and car rental companies. The Vehicle Rental segment operates and franchises Avis and Budget vehicle rental businesses. o Cendant Corporation has announced plans to break the existing company into four publicly traded companies: Real Estate Services, Hospitality (including Timeshare), Travel Distribution and Vehicle Rental. Following Cendant Corporation's planned division (expected to occur in July 2006), the One Campus Drive Mortgaged Property will become the headquarters of Realogy, the Real Estate Services company. Cendant Corporation's real estate franchise business is the world's largest franchisor of real estate brokerage companies. Cendant Corporation's brand names are among the most well known and established real estate brokerage companies in the industry and include Coldwell Banker (3,800 franchises, 125,000 sales associates), Coldwell Banker Commercial (160 franchises, 1,400 sales associates), Century 21 (7,900 franchises, 143,000 sales associates), ERA (2,800 franchises, 36,600 sales associates) and Sotheby's International Realty (220 franchises, 5,100 sales associates). As of the fiscal year ended December 31, 2005, Cendant Corporation reported revenue of approximately $18.2 billion, net income of $1.3 billion and stockholder equity of $11.3 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. 72 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION - -------------------------------------------------------------------------------- THE LOAN: o The One Campus Drive Mortgage Loan is an $80.0 million, ten-year fixed rate loan secured by a first mortgage on an office building located in Parsippany, Morris County, New Jersey. The One Campus Drive Mortgage Loan is interest only for the entire loan term, matures on May 1, 2016 and accrues interest at an annual rate, rounded to three decimal places, of 6.151%. THE BORROWER: o The One Campus Drive Borrower is One Campus Drive LL, LLC, a Delaware limited liability company and single purpose bankruptcy remote entity with at least two independent directors for which the One Campus Drive Borrower's legal counsel has delivered a non-consolidation opinion. Though a series of intermediate ownership levels, equity ownership is eventually held 100% by Investcorp International Realty, Inc. The borrower principal is Investcorp Properties Limited. o Investcorp Properties Limited is involved in the acquisition of real estate properties on behalf of foreign investors. Investcorp Properties Limited is part of Investcorp Group, which acts as a principal and an intermediary in investment transactions around the world. Investcorp Properties Limited specializes in four lines of business: private equity corporate investment in North America and Western Europe, real estate investment in North America, technology investment in North America and Western Europe, and global asset management. Investcorp Group investment products are offered to institutional and individual clients. Since its founding in 1982, Investcorp Group has arranged investments with a combined value of approximately $30.0 billion. THE PROPERTY: o The One Campus Drive Mortgaged Property consists of a fee simple interest in a Class "A" suburban office building built in 1979 and most recently renovated in 1996. In addition, in 2001 Cendant invested approximately $8.0 million in capital improvements/tenant improvements. The three-story improvements contain 377,000 net rentable square feet and are situated on 40.64 acres. Building amenities include a full service kitchen/cafeteria, gift shop, fitness center with locker facilities, banking facilities, a nurses office, beauty salon, employee training rooms and copy center. o The One Campus Drive Mortgaged Property is located within the Mack Cali Business Campus, which consists of 23 office buildings containing a total of approximately 3.3 million square feet, of which 2.9 million square feet is Class "A" space. o The One Campus Drive Borrower is generally required at its sole cost and expense to keep the One Campus Drive 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 One Campus Drive Mortgaged Property is managed by Cendant Corporation. 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. 73 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- ONE CAMPUS DRIVE - -------------------------------------------------------------------------------- [MAP OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- PHOENIX AIRPORT MARRIOTT - -------------------------------------------------------------------------------- [4 PHOTOS OMITTED] 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 2006-3 - -------------------------------------------------------------------------------- PHOENIX AIRPORT MARRIOTT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LOAN INFORMATION - -------------------------------------------------------------------------------- LOAN SELLER: Bank of America LOAN PURPOSE: Refinance ORIGINAL PRINCIPAL BALANCE: $71,025,000 FIRST PAYMENT DATE: July 1, 2006 TERM/AMORTIZATION: 120/360 months MATURITY DATE: June 1, 2016 EXPECTED MATURITY BALANCE: $60,868,343 BORROWING ENTITY: Columbia Properties Phoenix, L.P. INTEREST CALCULATION: Actual/360 CALL PROTECTION: Lockout/Defeasance: 117 payments Open: 3 payments UP-FRONT RESERVES: TAX RESERVE: Yes ONGOING MONTHLY RESERVES: TAX RESERVE: Yes REPLACEMENT RESERVE(1): 77,973 LOCKBOX: Hard (1) To be recalculated annually based upon 1/12th of 4% of the operating income for the trailing 12-month period. - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- CUT-OFF DATE BALANCE: $70,903,384 CUT-OFF DATE LTV: 74.9% MATURITY DATE LTV: 64.3% UNDERWRITTEN DSCR: 1.44x MORTGAGE RATE: 6.293% - -------------------------------------------------------------------------------- PROPERTY INFORMATION - -------------------------------------------------------------------------------- PROPERTY TYPE: Hotel PROPERTY SUB-TYPE: Full Service LOCATION: Phoenix, Arizona YEAR BUILT/RENOVATED: 1999/NAP NO. OF KEYS: 345 CUT-OFF DATE BALANCE PER KEY: $205,517 OCCUPANCY AS OF FEBRUARY 28, 2006: 68.1% OWNERSHIP INTEREST: Fee PROPERTY MANAGEMENT: Columbia Sussex Corporation UNDERWRITTEN NET CASH FLOW: $7,597,904 APPRAISED VALUE: $94,700,000 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. 76 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- PHOENIX AIRPORT MARRIOTT - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FINANCIAL INFORMATION - -------------------------------------------------------------------------------- FULL YEAR FULL YEAR TRAILING 12 (12/31/2004) (12/31/2005) (02/28/2006) UNDERWRITTEN ------------ ------------ ------------ ------------ Effective Gross Income ............. $15,240,300 $17,575,400 $18,030,312 $18,713,567 Total Expenses ..................... $ 8,916,853 $ 9,916,271 $10,071,167 $10,179,984 Net Operating Income (NOI) ......... $ 6,323,447 $ 7,659,129 $ 7,959,145 $ 8,533,582 Cash Flow (CF) ..................... $ 6,323,420 $ 7,659,129 $ 7,959,145 $ 7,597,904 DSCR on NOI ........................ 1.20x 1.45x 1.51x 1.62x DSCR on CF ......................... 1.20x 1.45x 1.51x 1.44x - -------------------------------------------------------------------------------- OPERATIONAL STATISTICS - -------------------------------------------------------------------------------- TRAILING 12 2004 2005 (02/28/2006) UNDERWRITTEN -------- -------- ------------ ------------ Average Daily Rate (ADR) ......... $128.01 $136.33 $138.59 $142.50 Occupancy ........................ 61.0% 67.0% 68.1% 70.0% RevPAR ........................... $ 78.07 $ 91.30 $ 94.32 $ 99.75 Penetration Rate(1) .............. 131.3% 136.6% 141.1% NAP (1) RevPAR Penetration Rated based on a December 31, 2005 Smith Travel Research Report. 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 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- PHOENIX AIRPORT MARRIOTT - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION THE LOAN: o The Phoenix Airport Marriott Mortgage Loan is a $71.0 million, ten-year fixed rate loan secured by a first mortgage on a full service Marriott hotel located in Phoenix, Maricopa County, Arizona. The Phoenix Airport Marriott Loan matures on June 1, 2016 and accrues interest at an annual rate of 6.293%. THE BORROWER: o The Phoenix Airport Marriott Borrower is Columbia Properties Phoenix, L.P., an Ohio limited partnership and a single purpose bankruptcy remote entity with at least two independent directors for which the Phoenix Airport Marriott Borrower's legal counsel has delivered a non-consolidation opinion. Equity ownership is held 99% by CSC Holdings, LLC and 1% by CP Phoenix GP, LLC, both of which are Ohio limited liability companies. Through a series of intermediate ownership levels, equity ownership is eventually held by William J. Yung. The borrower principal is Columbia Sussex Corporation. o Columbia Sussex Corporation is one of the largest privately held hotel owners in the United States. Founded in 1972 by Mr. Yung, Columbia Sussex Corporation initially owned Days Inns and Holiday Inns, which were eventually sold. Currently, Columbia Sussex Corporation owns and operates 83 full service hotels located in the United States, Canada, Grand Caymans and the Virgin Islands totaling approximately 27,600 rooms under the Marriott family (41), Holiday Inn/Crowne Plaza (12), Wyndham (9) and other brand names (21). Columbia Sussex Corporation is the largest Marriott franchisee in the United States and operates the top ranked Marriott hotel located in Myrtle Beach, South Carolina and the top ranked Westin hotel located in Las Vegas, Nevada measured by customer satisfaction. THE PROPERTY: o The Phoenix Airport Marriott Mortgaged Property consists of a fee simple interest in a 345-room full service Marriott hotel built in 1999. The 12-story improvements contain 241,071 net rentable square feet and are situated on 7.10 acres. The room mix is 235 kings and 110 double/doubles. o Room furnishings include desk with chair, lounge chair, dresser, nightstands and lamps. Room amenities include remote control cable television, two telephone lines and high-speed Internet access. Phoenix Airport Marriott Mortgaged Property amenities include a full-service restaurant, bar lounge, eight meeting rooms containing a total of 18,332 square feet of flexible space, outdoor patio pool and whirlpool, business center, fitness room and a concierge lounge located on the 12th floor. o The Phoenix Airport Marriott Borrower is generally required at its sole cost and expense to keep the Phoenix Airport Marriott 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 Phoenix Airport Marriott Mortgaged Property is self-managed by Columbia Sussex Corporation. 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. 78 BANC OF AMERICA COMMERCIAL MORTGAGE INC., COMMERCIAL MORTGAGE PASS-THROUGH CERTIFICATES, SERIES 2006-3 - -------------------------------------------------------------------------------- PHOENIX AIRPORT MARRIOTT - -------------------------------------------------------------------------------- [MAP OMITTED] 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 (This Page Intentionally Left Blank) (This Page Intentionally Left Blank)