Banc of America Merrill Lynch Commercial Mortgage 8K Other events | SEC 25 Feb 04

CMBS New Issue Term Sheet

$922,490,706 (Approximate Offered Certificates)

$1,327,183,333 (Approximate Total Collateral Balance)

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates

Series 2004-1

Offered Classes A-1, A-2, A-3, A-4, XP, B, C, D and E Certificates

Bank of America, N.A.

Mortgage Loan Seller

Bank of America, N.A.

Master Servicer

Lennar Partners, Inc.

Special Servicer

February 2004

This material is for your private information and none of Banc of America Securities LLC, Bear, Stearns & Co. Inc., Deutsche Bank Securities, Inc. and Goldman, Sachs & Co. (collectively, the “Underwriters”) are soliciting any action based upon it. This material is 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. None of the Underwriters nor any of their affiliates has conducted any independent review of the information contained herein, and none of the Underwriters nor any of their affiliates represent that such information is accurate or complete and the information should not be relied upon as such. By accepting this material the recipient agrees that it will not distribute or provide the material to any other person. The information contained in this material may pertain to securities that ultimately are not sold. The information contained in this material may be based on assumptions regarding market conditions and other matters as reflected herein. The Underwriters make no representation regarding the reasonableness of such assumptions or the likelihood that any of such assumptions will coincide with actual market conditions or events, and this material should not be relied upon for such purposes. The Underwriters and their affiliates, officers, directors, partners and employees, including persons involved in the preparation or issuance of this material may, from time to time, have long or short positions in, and buy and sell, the securities mentioned therein or derivatives thereof (including options). This material may be filed with the Securities and Exchange Commission (the “SEC”) and incorporated by reference into an effective registration statement previously filed with the SEC under Rule 415 of the Securities Act of 1933, as amended including all cases where the material does not pertain to securities that are ultimately offered for sale pursuant to such registration statement. Information contained in this material is current as of the date appearing in this material only. Information in this material regarding any assets backing any securities discussed herein supersedes all prior information regarding such assets. Any information in the material, whether regarding the assets backing any securities discussed herein or otherwise, will be superseded in its entirety by the information contained in any final prospectus and prospectus supplement for any securities actually sold to you, which you should read before making any investment decision. This material is furnished solely by the Underwriters and not by the issuer of the securities. The issuer of the securities has not prepared, reviewed or participated in the preparation of this material, is not responsible for the accuracy of this material and has not authorized the dissemination of this material. Each of the Underwriters is acting as an Underwriter and not acting as an agent for the issuer in connection with the proposed transaction.

Sole Lead Manager and Bookrunner

Banc of America Securities LLC

Bear, Stearns & Co. Inc.


	Deutsche Bank Securities


	Goldman, Sachs & Co.

TABLE OF CONTENTS


Transaction Structure




	Structure Overview	3




	Structure Schematic	4




	Transaction Terms	5




	Contact Information	8

Mortgage Pool Characteristics




	General Characteristics	9




	Property Type	10




	Property Location	11




	Mortgage Pool Characteristics	12




	Loan Group 1 Characteristics	13




	Loan Group 2 Characteristics	14




	Prepayment Provision Based on Outstanding Principal Balance	15





Ten Largest Mortgage Loans		16




	Leo Burnett Building	17




	Hines Sumitomo Life Office Portfolio	23




	Birkdale Village	33




	Firecreek Crossing	39




	Village at Redondo Beach	45




	Hillsborough Promenade	50




	Milpitas Square	57




	Mount Vernon Place Apartments	62




	Mercantile East Shopping Center	67




	Dunwoody Place Apartments	74





Additional Mortgage Loan Information		80

(This Page Intentionally Left Blank)

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Structure Overview

OFFERED CERTIFICATES


		Expected				Approx.
		Ratings				% of			Approx.			Weighted		Principal		Assumed
				Certificate		Initial			Credit			Average		Window		Final
Class		S&P/Fitch		Balance(1)		Pool Balance(1)			Support			Life (yrs)(2)		(mos)(2)		Distribution Date(2)		Rate Type


	A-1(7)		AAA/AAA	$	84,601,018		6.374	%		14.750	%		3.50		1-59		02/10/2009		Fixed

	A-2(7)		AAA/AAA	$	128,044,055		9.648	%		14.750	%		5.90		59-77		08/10/2010		Fixed

	A-3(7)		AAA/AAA	$	100,065,758		7.540	%		14.750	%		7.50		77-108		03/10/2013		Fixed

	A-4(7)		AAA/AAA	$	521,853,980		39.320	%		14.750	%		9.62		108-118		01/10/2014		Fixed(3)

	XP		AAA/AAA		TBD(6)		N/A			N/A			N/A		N/A		TBD(6)		Variable Rate(6)

	B		AA/AA	$	31,520,604		2.375	%		12.375	%		9.92		119-119		02/10/2014		Fixed(3)

	C		AA-/AA-	$	13,271,833		1.000	%		11.375	%		10.15		119-125		08/10/2014		Fixed(3)

	D		A/A	$	29,861,625		2.250	%		9.125	%		10.63		125-128		11/10/2014		Fixed(3)

	E		A-/A-	$	13,271,833		1.000	%		8.125	%		10.67		128-128		11/10/2014		Fixed(3)

NON-OFFERED CERTIFICATES


		Expected					Approx.
		Ratings					% of			Approx.			Weighted		Principal		Assumed
				Certificate			Initial			Credit			Average		Window		Final
Class		S&P/Fitch		Balance(1)			Pool Balance(1)			Support			Life (yrs)(2)		(mos)(2)		Distribution Date(2)		Rate Type


	A-1A(7)		AAA/AAA	$	296,858,979			22.368	%		14.750	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed

	F		BBB+/BBB+	$	18,248,771			1.375	%		6.750	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(3)

	G		BBB/BBB	$	11,612,854			0.875	%		5.875	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(3)

	H		BBB-/BBB-	$	19,907,750			1.500	%		4.375	%		(Not Offered)		(Not Offered)		(Not Offered)		WAC(4)

	J		BB+/BB+	$	6,635,917			0.500	%		3.875	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	K		BB/BB	$	6,635,917			0.500	%		3.375	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	L		BB-/BB-	$	8,294,896			0.625	%		2.750	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	M		B+/B+	$	8,294,896			0.625	%		2.125	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	N		B/B	$	3,317,958			0.250	%		1.875	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	O		B-/B-	$	3,317,958			0.250	%		1.625	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	P		NR/NR	$	21,566,730			1.625	%		0.000	%		(Not Offered)		(Not Offered)		(Not Offered)		Fixed(5)

	XC		AAA/AAA	$	1,327,183,332	(6)		N/A			N/A			N/A		N/A		(Not Offered)		Variable Rate(6)


(1)	Subject to a variance of plus or minus 10%.

(2)	As of the Cut-off Date, the Weighted Average Life, Principal Window and Assumed Final Distribution Date were calculated assuming no prepayments will be made on the Mortgage Loans prior to their related maturity dates and the other assumptions set forth under “Yield and Maturity Considerations — Yield Considerations” in the prospectus supplement.

(3)	The Class A-4, Class B, Class C, Class D, Class E, Class F and Class G Certificates will 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.

(4)	The Class H Certificates will accrue interest at the weighted average net mortgage rate. See “Description of the Certificates — Pass-Through Rates” in the prospectus supplement.

(5)	The Class J, Class K, Class L, Class M, Class N, Class O and Class P Certificates will accrue interest at a fixed rate subject to a cap at the Weighted Average Net Mortgage Rate.

(6)	The Class XC and Class XP Certificates will not have Certificate Balances and their holders will not receive distributions of principal, but these holders are entitled to receive payments of the aggregate interest accrued on the Notional Amount of the Class XC and Class XP Certificates as described in the preliminary prospectus supplement.

(7)	For purposes of making distributions to the Class A-1, Class A-2, Class A-3, Class A-4 and Class 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 78 Mortgage Loans, representing approximately 77.6% of the initial pool balance as of the cut-off date. Loan Group 2 will consist of 35 Mortgage Loans, representing approximately 22.4% of the initial pool balance as of the cut off date. Loan Group 2 will include approximately 82.5% of the initial pool balance of all the Mortgage Loans secured by multifamily properties and approximately 50.1% of the initial pool balance of all the Mortgage Loans secured by manufactured housing properties.

	Generally, the Class A-1, Class A-2, Class A-3 and Class 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-4 Certificates has been reduced to zero. However, on and after any distribution date on which the Certificate Balances of the Class B 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, Class A-2, Class A-3, Class A-4 and Class A-1A Certificatespro rata.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Structure Schematic*

(Administrative Fee Chart)


*	Classes are not drawn to scale. Percentages are approximate percentages of the Mortgage Pool balance as of the Cut-off Date.

(1)	For purposes of making distributions to the Class A-1, Class A-2, Class A-3, Class A-4 and Class 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 78 Mortgage Loans, representing approximately 77.6% of the initial pool balance as of the cut-off date. Loan Group 2 will consist of 35 Mortgage Loans, representing approximately 22.4% of the initial pool balance as of the cut off date. Loan Group 2 will include approximately 82.5% of the initial pool balance of all the Mortgage Loans secured by multifamily properties and approximately 50.1% of the initial pool balance of all the Mortgage Loans secured by manufactured housing properties.

	Generally, the Class A-1, Class A-2, Class A-3, and Class 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-4 Certificates has been reduced to zero. However, on and after any distribution date on which the Certificate Balances of the Class B 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, Class A-2, Class A-3, Class A-4 and Class A-1A Certificatespro rata.


(2)	Offered privately pursuant to Rule 144A and Regulation S.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Transaction Terms


	NOTE: CAPITALIZED TERMS USED BUT NOT OTHERWISE DEFINED HEREIN HAVE THE MEANINGS ASCRIBED TO THEM IN THE PROSPECTUS SUPPLEMENT DATED FEBRUARY 2004.


Issue Type		Sequential pay REMIC. Class A-1, A-2, A-3 and Class A-4 Certificates (together, the “Class A Certificates”), and Class XP, B, C, D and E Certificates (together with the Class A Certificates, the “Offered Certificates”) are offered publicly.

Cut-off Date		All Mortgage Loan characteristics are based on balances as of the Cut-off Date, March 1, 2004. All percentages presented herein are approximate.

Mortgage Pool		The Mortgage Pool consists of 113 Mortgage Loans (the “Mortgage Loans”) with an aggregate balance as of the Cut-off Date of $1,327,183,333 (the “Initial Pool Balance”). The Mortgage Pool will be deemed to consist of 2 loan groups (“Loan Group 1” and “Loan Group 2”). Loan Group 1 will consist of (i) all of the Mortgage Loans that are not secured by Mortgaged Properties that are multifamily properties or manufactured housing properties and (ii) 10 Mortgage Loans that are secured by Mortgaged Properties that are manufactured housing properties and 2 Mortgage Loans that are secured by Mortgaged Properties that are multifamily properties. Loan Group 2 will consist of 28 Mortgage Loans that are secured by multifamily properties and 7 Mortgage Loans that are secured by manufactured housing properties. Loan Group 1 is expected to consist of 78 Mortgage Loans with an aggregate balance as of the Cut-off Date of $1,030,324,353 (the “Loan Group 1 Balance”). Loan Group 2 is expected to consist of 35 Mortgage Loans with an aggregate balance as of the Cut-off Date of $296,858,979 (the “Loan Group 2 Balance”). The Mortgage Loans are secured by 120 properties (the “Mortgaged Properties”) located throughout 31 states and the District of Columbia.

Depositor		Banc of America Commercial Mortgage Inc.

Mortgage Loan Seller		Bank of America, N.A.

Underwriters		Banc of America Securities LLC is acting as lead manager and bookrunner with respect to all Classes of Offered Certificates. Bear, Stearns & Co. Inc., Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as co-managers.

Trustee		Wells Fargo Bank, N.A.

Master Servicer		Bank of America, N.A.

Special Servicer		Lennar Partners, Inc.

Rating Agencies		Standard and Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., (“S&P”) and Fitch Ratings (“Fitch”).

Denominations		$10,000 minimum for Class A Certificates and $100,000 minimum for all other Offered Certificates.

Settlement Date		On or about March , 2004.

Settlement Terms		Book-entry through DTC for all Offered Certificates.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Transaction Terms


Distribution Date		The 10th day of each month, or if such 10th day is not a business day, the next succeeding business day, commencing with respect to the Offered Certificates in April 2004.

Determination Date		For any Distribution Date, the earlier of (i) the sixth day of the month in which the related Distribution Date occurs, or if such sixth day is not a Business Day, then the immediately preceding Business Day, and (ii) the fourth Business Day prior to the related Distribution Date.

Interest Distributions		Each Class of Offered Certificates will be entitled on each Distribution Date to interest accrued at its Pass-Through Rate for such Distribution Date on the outstanding Certificate Balance of such Class during the prior calendar month. Interest will be distributed on each Distribution Date in sequential order of class designations with the Class A-1, Class A-2, Class A-3, Class A-4, Class A-1A, Class XC and Class XP 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 alphabetical numerical Class designation until its Certificate Balance is reduced to zero. Generally, the Class A-1, Class A-2, Class A-3 and Class 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-4 Certificates has been reduced to zero. If, due to losses, the Certificate Balances of the Class B through Class P Certificates are reduced to zero but if any two or more of Class A-1, Class A-2, Class A-3, Class A-4 and/or Class A-1A Certificates remain outstanding, payments of principal to the outstanding Class A-1, Class A-2, Class A-3, Class A-4 and Class A-1A Certificates will be made on a pro rata basis.

Losses		To be applied first to Class P, then to the next most subordinate Class of Sequential Pay Certificates, etc.

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, interest and other expenses. In the event that the Master Servicer fails to make such advances, the Trustee will be required to do so.

Appraisal Reductions		Following the occurrence of: (1) any Mortgage Loan or Whole Loan becoming a Modified Mortgage Loan; (2) any Monthly Payment with respect to any Mortgage Loan or Whole Loan remains unpaid for 60 days past the Due Date for such payments; (3) the passage of 60 days after the Special Servicer receives notice that the mortgagor under such Mortgage Loan or Whole Loan becomes the subject of bankruptcy, insolvency or similar proceedings, which remain undischarged and undismissed; (4) the passage of 60 days after the Special Servicer receives notice that a receiver or similar official is appointed with respect to the related Mortgaged Property; or (5) the related Mortgaged Property

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Transaction Terms

becoming an REO Property, the Special Servicer will obtain an appraisal on the property. Advances of delinquent interest on the most subordinate class will be reduced to the extent of the interest on the Appraisal Reduction Amount. The Appraisal Reduction Amount will generally be equal to the difference between (a) the scheduled balance of the Mortgage Loan plus any unpaid advances outstanding and other amounts payable with respect thereto and (b) an amount equal to 90% of the appraised value of the Mortgaged Property.


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 aggregate 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 principal balance).

ERISA		The Offered Certificates are expected to be ERISA eligible.

SMMEA		The Offered Certificates arenot expected to be “mortgage-related securities” for the purposes of SMMEA.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Contact Information






Banc of America Securities LLC				Bear, Stearns & Co. Inc.
Bill Hale				Craig Sedmak
(704) 388-1597 (Phone)				(212) 272-4953 (Phone)
(704) 388-9677 (Fax)				(917) 849-0223 (Fax)
bill.e.hale@bankofamerica.com				csedmak@bear.com
Geordie Walker				Tim Koltermann
(704) 388-1597 (Phone)				(212) 272-4953 (Phone)
(704) 388-9677 (Fax)				(917) 849-0223 (Fax)
geordie.r.walker@bankofamerica.com				tkoltermann@bear.com
Chuck Mather				Jignesh Patel
(704) 388-1597 (Phone)				(212) 272-6184 (Phone)
(704) 388-9677 (Fax)				(917) 849-0223 (Fax)
charles.mather@bankofamerica.com				jignesh.patel@bear.com





Deutsche Bank Securities				Goldman, Sachs & Co.
Scott Waynebern				Rolf Edwards
(212) 250-5149 (Phone)				(212) 902-5637 (Phone)
(212) 797-5630 (Fax)				(212) 346-3594 (Fax)
scott.waynebern@db.com				rolf.edwards@gs.com
Dan Rikkers				Scott Wisenbaker
(212) 250-5149 (Phone)				(212) 902-2858 (Phone)
(212) 797-5630 (Fax)				(212) 346-3594 (Fax)
daniel.rikkers@db.com				scott.wisenbaker@gs.com

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*


GENERAL CHARACTERISTICS	Mortgage Pool		Loan Group 1		Loan Group 2




Number of Mortgage Loans		113		78		35




Number of Mortgaged Properties		120		85		35




Aggregate Balance of all Mortgage Loans	$	1,327,183,333	$	1,030,324,353	$	296,858,979




Number of Balloon Payment Mortgage Loans(1)		105		70		35




Aggregate Balance of Balloon Payment Mortgage Loans(1)	$	1,010,848,113	$	713,989,134	$	296,858,979




Number of Fully Amortizing Mortgage Loans		2		2		0




Aggregate Balance of Fully Amortizing Mortgage Loans	$	6,085,220	$	6,085,220	$	0




Number of Interest Only Mortgage Loans		6		6		0




Aggregate Balance of Interest Only Mortgage Loans	$	310,250,000	$	310,250,000	$	0




Minimum Balance	$	503,393	$	503,393	$	1,123,641




Maximum Balance	$	120,000,000	$	120,000,000	$	36,743,802




Average Balance	$	11,744,985	$	13,209,287	$	8,481,685




Number of Cross-Collateralized and Cross-Defaulted Loan Pools		2		2		0




Maximum Balance for a Group of Cross-Collateralized and Cross-Defaulted Mortgage Loans	$	10,766,842	$	10,766,842	$	0




Weighted Average LTV Ratio(2)		66.5%		64.0%		75.0%




Maximum LTV Ratio(2)		85.5%		80.3%		85.5%




Minimum LTV Ratio(2)		40.0%		40.0%		48.8%




Weighted Average DSCR(3)		1.59x		1.68x		1.27x




Maximum DSCR(3)		2.66x		2.66x		2.00x




Minimum DSCR(3)		1.20x		1.20x		1.20x




Weighted Average LTV at Maturity(2)(4)		58.3%		56.4%		65.0%




Range of Mortgage Loan Interest Rates		4.080%-6.910%		4.080%-6.910%		4.952%-6.327%




Weighted average Mortgage Loan Interest Rate		5.524%		5.501%		5.606%




Range of Remaining Term to Maturity (months)		55 - 175		55 - 175		56 - 140




Weighted Average Remaining Term to Maturity (months)		110		110		111


(1)	Excludes mortgage loans that are Interest Only for their full term and Fully Amortizing mortgage loans.

(2)	For purposes of determining the loan-to-value ratio for one mortgage loan, Loan No. 57705 the principal balance of such mortgage loan was reduced by the amount of the construction reserve for determining the loan-to-value ratio of such mortgage loan.

(3)	For purposes of determining the underwriting debt service coverage ratio for one mortgage loan Loan No. 55804 (such Loan Number is set forth in Annex A to the preliminary prospectus supplement), the debt service payment was recalculated based upon an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

(4)	Excludes the mortgage loans that are fully amortizing.

One mortgage loan, Loan No. 57365 (such Loan Number is set forth in Annex A to the preliminary prospectus supplement), is evidenced by two seniorpari passu promissory notes and one subordinate note and the related Cut-off Date Balance reflects only the outstanding principal balance of the senior note included in the trust. The debt service coverage ratios and loan-to-value ratios were calculated based upon the aggregate principal balance of the two senior notes, excluding the principal balance of the related subordinate note. The weighting of debt service coverage ratios and loan-to-value ratios were based solely upon the senior note included in the trust. Accordingly, such ratios would be lower (in the case of debt service coverage) and higher (in the case of loan-to-value ratios) if the subordinate note were included.


	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

(PIE CHART)

PROPERTY TYPE


								Weighted				Weighted
		Number of	Aggregate		% of			Average			Min/Max	Average		Min/Max
		Mortgaged	Cut-off Date		Initial Pool			Underwriting			Underwriting	Cut-off Date		Cut-off Date
Property Type		Properties	Balance		Balance			DSCR			DSCR	LTV Ratio		LTV Ratio



Office		29	$	429,023,417		32.3	%		2.05	x	1.20x/2.66x		55.4%	40.0%/79.1%

Retail		25		386,139,125		29.1			1.40	x	1.23x/2.01x		70.1%	47.2%/79.5%

	Anchored	17		305,421,881		23.0			1.43	x	1.25x/2.01x		68.7%	47.2%/79.5%

	Shadow Anchored	6		73,248,047		5.5			1.30	x	1.26x/1.44x		76.7%	66.4%/79.3%

	Unanchored	2		7,469,196		0.6			1.37	x	1.23x/1.54x		62.1%	59.7%/64.9%

Multifamily		30		288,660,445		21.7			1.32	x	1.20x/2.00x		72.8%	48.8%/80.3%

Manufactured Housing Community		17		117,077,307		8.8			1.24	x	1.20x/1.59x		78.4%	54.7%/85.5%

Industrial		5		48,956,658		3.7			1.33	x	1.25x/1.55x		74.9%	68.4%/79.2%

Self Storage		11		34,601,265		2.6			1.38	x	1.24x/1.50x		69.4%	57.7%/75.0%

Other		2		15,464,007		1.2			2.54	x	2.54x/2.54x		45.3%	45.3%/45.3%

Hotel		1		7,261,109		0.5			1.27	x	1.27x/1.27x		63.1%	63.1%/63.1%

Total/Wtd Avg		120	$	1,327,183,333		100.0	%		1.59	x	1.20x/2.66x		66.5%	40.0%/85.5%

[Additional columns below]

[Continued from above table, first column(s) repeated]


		Weighted
		Average
		Mortgage
Property Type		Rate


Office			5.337	%

Retail			5.482	%

	Anchored		5.463	%

	Shadow Anchored		5.479	%

	Unanchored		6.312	%

Multifamily			5.558	%

Manufactured Housing Community			5.820	%

Industrial			5.842	%

Self Storage			5.749	%

Other			6.910	%

Hotel			6.500	%

Total/Wtd Avg			5.524	%


	For purposes of determining loan-to-value ratios for Loan No. 57705, the principal balance of such mortgage loan was reduced by the amount of the related construction reserve. For purposes of determining the underwriting debt service coverage ratio for Loan No. 55804, the debt service payment was recalculated based on an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

(MAP)

PROPERTY LOCATION


									Weighted		Weighted			Weighted
		Number of		Aggregate					Average		Average			Average
		Mortgaged		Cut-off Date		% of Initial			Underwriting		Cut-off Date			Mortgage
State		Properties		Balance		Pool Balance			DSCR		LTV Ratio			Rate



California			17	$	290,176,590		21.9	%		1.33x		70.5	%		5.740%

	Northern(1)		8		109,522,717		8.3			1.27x		68.6	%		5.942%

	Southern(1)		9		180,653,873		13.6			1.37x		71.6	%		5.619%

Illinois			2		128,352,141		9.7			2.52x		42.6	%		5.155%

New York			3		94,778,677		7.1			2.62x		46.0	%		4.826%

Florida			10		86,922,240		6.5			1.43x		71.8	%		5.393%

Georgia			5		81,698,347		6.2			1.32x		70.5	%		5.927%

Washington			9		66,219,233		5.0			1.37x		70.6	%		5.840%

Texas			9		64,678,916		4.9			1.38x		75.5	%		5.581%

North Carolina			4		63,195,622		4.8			1.64x		59.6	%		4.327%

New Jersey			2		52,379,429		3.9			1.29x		76.5	%		5.884%

Arizona			6		50,967,708		3.8			1.38x		70.1	%		5.531%

Others			53		347,814,429		26.2			1.42x		72.1	%		5.700%

Total/Wtd Avg			120	$	1,327,183,333		100.0	%		1.59x		66.5	%		5.524%

(1)

For purposes of determining whether a Mortgaged Property is located in Northern California or Southern California, Mortgaged Properties located north of San Luis Obispo County, Kern County and San Bernardino County were included in Northern California and Mortgaged Properties located in and south of such counties were included in Southern California. The Hines Sumitomo Loan’s Cut-off Date Balance is allocated based upon amounts set forth in the Hines Sumitomo Loan documents.


-	The Mortgaged Properties are located throughout 31 states and the District of Columbia.


	For purposes of determining loan-to-value ratios for Loan No. 57705, the principal balance of such mortgage loan was reduced by the amount of the related construction reserve. For purposes of determining the underwriting debt service coverage ratio for Loan No. 55804, the debt service payment was recalculated based on an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

MORTGAGE POOL CHARACTERISTICS

Cut-off Date Balance ($)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	$503,393 – $999,999		5		3,613,096		0.3
	$1,000,000 – $1,999,999		6		8,811,314		0.7
	$2,000,000 – $2,999,999		13		34,778,223		2.6
	$3,000,000 – $3,999,999		15		53,218,597		4.0
	$4,000,000 – $4,999,999		10		45,087,094		3.4
	$5,000,000 – $7,499,000		17		102,535,698		7.7
	$7,500,000 – $9,999,999		10		86,461,607		6.5
	$10,000,000 – $14,999,999		16		194,413,817		14.6
	$15,000,000 – $19,999,999		5		84,335,522		6.4
	$20,000,000 – $29,999,999		4		100,778,705		7.6
	$30,000,000 – $49,999,999		9		333,549,660		25.1
	$50,000,000 – $99,999,999		1		55,000,000		4.1
	$100,000,000 – $120,000,000		2		224,600,000		16.9

	Total:		113		1,327,183,333		100.0

Min: $503,393 Max: $120,000,000 Average: $11,744,985

State




		No. of		Aggregate
		Mortgaged		Cut-off Date		% of
		Properties		Balance ($)		Pool


California			17		290,176,590		21.9
	Northern		8		109,522,717		8.3
	Southern		9		180,653,873		13.6
Illinois			2		128,352,141		9.7
New York			3		94,778,677		7.1
Florida			10		86,922,240		6.5
Georgia			5		81,698,347		6.2
Washington			9		66,219,233		5.0
Texas			9		64,678,916		4.9
North Carolina			4		63,195,622		4.8
New Jersey			2		52,379,429		3.9
Arizona			6		50,967,708		3.8
Others			53		347,814,429		26.2

Total:			120		1,327,183,333		100.0

Property Type




		No. of		Aggregate
		Mortgaged		Cut-off Date		% of
		Properties		Balance ($)		Pool


Office			29		429,023,417		32.3
Retail			25		386,139,125		29.1
	Anchored		17		305,421,881		23.0
	Shadow Anchored		6		73,248,047		5.5
	Unanchored		2		7,469,196		0.6
Multifamily			30		288,660,445		21.7
Manufactured Housing			17		117,077,307		8.8
Industrial			5		48,956,658		3.7
Self Storage			11		34,601,265		2.6
Other			2		15,464,007		1.2
Hotel			1		7,261,109		0.5

Total:			120		1,327,183,333		100.0

Mortgage Rate (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	4.080% to 4.749%		2		68,847,938		5.2
	4.750% – 4.999%		4		134,826,506		10.2
	5.000% – 5.249%		13		242,020,391		18.2
	5.250% – 5.499%		13		160,568,581		12.1
	5.500% – 5.749%		24		109,255,374		8.2
	5.750% – 5.999%		31		416,258,344		31.4
	6.000% – 6.249%		11		79,077,718		6.0
	6.250% – 6.499%		12		92,278,752		7.0
	6.500% – 6.910%		3		24,049,728		1.8

	Total:		113		1,327,183,333		100.0

Min: 4.080% Max: 6.910% Wtd Avg: 5.524%

Original Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	60 – 83		13		121,879,286		9.2
	84 – 99		8		127,667,540		9.6
	100 – 120		78		894,716,276		67.4
	121 – 179		10		136,215,804		10.3
	180		4		46,704,427		3.5

	Total:		113		1,327,183,333		100.0

Min: 60 Max: 180 Wtd Avg: 114

Remaining Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	55 – 59		12		90,879,286		6.8
	60 – 79		4		107,486,666		8.1
	80 – 99		7		88,463,166		6.7
	100 – 109		1		2,956,095		0.2
	110 – 119		75		854,477,888		64.4
	120 – 139		6		103,495,300		7.8
	140 – 159		4		32,720,504		2.5
	160 – 175		4		46,704,427		3.5

	Total:		113		1,327,183,333		100.0

Min: 55 Max: 175 Wtd Avg: 110

Prepayment Provision Summary

No. of

Aggregate

Mortgage

Cut-off Date

% of

Loans

Balance ($)

Pool

Lockout/ Defeasance/ Open

1,027,791,121

77.4

Lockout/ Yield Maintenance/ Open

299,392,212

22.6

Total:

113

1,327,183,333

100.0

Cut-off Date Loan-to-Value Ratio (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	40.0% – 49.9%		5		244,899,434		18.5
	50.0% – 59.9%		13		144,468,834		10.9
	60.0% – 64.9%		8		37,820,309		2.8
	65.0% – 69.9%		20		229,991,437		17.3
	70.0% – 74.9%		26		181,350,489		13.7
	75.0% – 79.9%		32		423,762,908		31.9
	80.0% – 85.5%		9		64,889,921		4.9

	Total:		113		1,327,183,333		100.0

Min: 40.0% Max: 85.5% Wtd Avg: 66.5%

Loan-to-Value Ratio at Maturity (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	Fully Amortizing		2		6,085,220		0.5
	39.6% – 49.9%		15		300,105,179		22.6
	50.0% – 59.9%		34		374,414,903		28.2
	60.0% – 64.9%		23		195,796,961		14.8
	65.0% – 69.9%		25		301,041,644		22.7
	70.0% – 74.3%		14		149,739,426		11.3

	Total:		113		1,327,183,333		100.0

Min: 39.6%(a) Max: 74.3%(a) Wtd Avg: 58.3%(a)


(a)	Excludes the mortgage loans that are fully amortizing.

Debt Service Coverage Ratios (x)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	1.20x – 1.24x		23		236,110,631		17.8
	1.25x – 1.29x		26		294,848,737		22.2
	1.30x – 1.34x		17		164,429,666		12.4
	1.35x – 1.39x		9		62,173,939		4.7
	1.40x – 1.49x		14		121,619,794		9.2
	1.50x – 1.59x		12		104,926,457		7.9
	1.60x – 1.69x		3		60,458,355		4.6
	1.70x – 1.79x		3		29,376,375		2.2
	1.80x – 1.89x		1		3,635,202		0.3
	1.90x – 1.99x		1		2.490,170		0.2
	2.00x – 2.66x		4		247,114,007		18.6

	Total:		113		1,327,183,333		100.0

Min: 1.20x Max: 2.66x Wtd Avg: 1.59x


	For purposes of determining loan-to-value ratios for Loan No. 57705, the principal balance of such mortgage loan was reduced by the amount of the related construction reserve. For purposes of determining the underwriting debt service coverage ratio for Loan No. 55804, the debt service payment was recalculated based on an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

LOAN GROUP 1 CHARACTERISTICS

Cut-off Date Balance ($)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	$503,393 – $999,999		5		3,613,096		0.4
	$1,000,000 – $1,999,999		4		6,389,244		0.6
	$2,000,000 – $2,999,999		5		13,143,710		1.3
	$3,000,000 – $3,999,999		9		31,990,508		3.1
	$4,000,000 – $4,999,999		7		30,982,063		3.0
	$5,000,000 – $7,499,999		13		77,521,354		7.5
	$7,500,000 – $9,999,999		7		60,151,146		5.8
	$10,000,000 – $14,999,999		11		132,344,411		12.8
	$15,000,000 – $19,999,999		5		84,335,522		8.2
	$20,000,000 – $29,999,999		2		46,191,941		4.5
	$30,000,000 – $49,999,999		7		264,061,360		25.6
	$50,000,000 – $99,999,999		1		55,000,000		5.3
	$100,000,000 – $120,000,000		2		224,600,000		21.8

	Total:		78		1,030,324,353		100.0

Min: $503,393 Max: $120,000,000 Average: $13,209,287

State




		No. of		Aggregate
		Mortgaged		Cut-off Date		% of
		Properties		Balance ($)		Pool


California			14		255,532,074		24.8	%
	Northern		8		109,522,717		10.6
	Southern		6		146,009,357		14.2
Illinois			2		128,352,141		12.5
New York			3		94,778,677		9.2
North Carolina			4		63,195,622		6.1
Washington			6		58,516,803		5.7
Texas			8		57,341,629		5.6
Florida			8		54,039,381		5.2
Nevada			2		48,338,526		4.7
New Jersey			1		40,803,175		4.0
Colorado			3		34,315,000		3.3
Others			34		195,111,326		18.9

Total:			85		1,030,324,353		100.0	%

Property Type




		No. of		Aggregate
		Mortgaged		Cut-off Date		% of
		Properties		Balance ($)		Pool


Office			29		429,023,417		41.6	%
Retail			25		386,139,125		37.5
	Anchored		17		305,421,881		29.6
	Shadow Anchored		6		73,248,047		7.1
	Unanchored		2		7,469,196		0.7
Manufactured Housing			10		58,405,494		5.7
Multifamily			2		50,473,279		4.9
Industrial			5		48,956,658		4.8
Self Storage			11		34,601,265		3.4
Other			2		15,464,007		1.5
Hotel			1		7,261,109		0.7

Total:			85		1,030,324,353		100.0

Mortgage Rate (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	4.080 – 4.749		2		68,847,938		6.7
	4.750 – 4.999		2		110,173,459		10.7
	5.000 – 5.249		11		223,254,006		21.7
	5.250 – 5.499		9		91,722,112		8.9
	5.500 – 5.749		12		56,375,836		5.5
	5.750 – 5.999		18		298,448,454		29.0
	6.000 – 6.249		10		76,083,786		7.4
	6.250 – 6.499		11		81,369,034		7.9
	6.500 – 6.910		3		24,049,728		2.3

	Total:		78		1,030,324,353		100.0

Min: 4.080% Max: 6.910% Wtd Avg: 5.501%

Original Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	60 – 83		10		75,922,732		7.4
	84 – 99		6		116,494,252		11.3
	100 – 120		55		769,392,156		74.7
	121 – 179		3		21,810,786		2.1
	180		4		46,704,427		4.5

	Total:		78		1,030,324,353		100.0

Min: 60 Max: 180 Wtd Avg: 114

Remaining Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	55 – 59		9		44,922,732		4.4
	60 – 79		4		107,486,666		10.4
	80 – 99		5		77,289,879		7.5
	110 – 119		53		732,109,864		71.1
	140 – 159		3		21,810,786		2.1
	160 – 175		4		46,704,427		4.5

	Total:		78		1,030,324,353		100.0

Min: 55 Max: 175 Wtd Avg: 110

Prepayment Provision Summary

No. of

Aggregate

Mortgage

Cut-off Date

% of

Loans

Balance ($)

Pool

Lockout/Defeasance/Open

745,862,527

72.4

Lockout/Yield Maintenance/Open

284,461,826

27.6

Total

1,030,324,353

100.0

Cut-off Date Loan-to-Value Ratio (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	40.0 – 49.9		4		243,601,005		23.6
	50.0 – 59.9		10		125,924,638		12.2
	60.0 – 64.9		7		34,430,719		3.3
	65.0 – 69.9		18		194,906,184		18.9
	70.0 – 74.9		19		146,915,904		14.3
	75.0 – 79.9		17		270,845,679		26.3
	80.0 – 80.3		3		13,700,224		1.3

	Total:		78		1,030,324,353		100.0

Min: 40.0% Max: 80.3% Wtd Avg: 64.0%

Loan-to-Value Ratio at Maturity (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	Fully Amortizing		2		6,085,220		0.6
	39.6 – 49.9		10		276,872,964		26.9
	50.0 – 59.9		30		325,267,655		31.6
	60.0 – 64.9		16		145,722,669		14.1
	65.0 – 69.9		13		201,777,979		19.6
	70.0 – 73.3		7		74,597,866		7.2

	Total:		78		1,030,324,353		100.0

Min: 39.6%(a) Max: 73.3%(a) Wtd Avg: 56.4%(a)


(a)	Excludes the mortgage loans that are fully amortizing.

Debt Service Coverage Ratios (x)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	1.20x – 1.24x		13		104,085,619		10.1
	1.25x – 1.29x		15		202,992,412		19.7
	1.30x – 1.34x		13		142,816,161		13.9
	1.35x – 1.39x		4		32,993,182		3.2
	1.40x – 1.49x		12		105,565,768		10.2
	1.50x – 1.59x		11		102,585,701		10.0
	1.60x – 1.69x		2		59,159,926		5.7
	1.70x – 1.79x		3		29,376,375		2.9
	1.80x – 1.89x		1		3,635,202		0.4
	2.00x – 2.66x		4		247,114,007		24.0

	Total:		78		1,030,324,353		100.0

Min: 1.20x Max: 2.66x Wtd Avg: 1.68x


	For purposes of determining loan-to-value ratios for Loan No. 57705, the principal balance of such mortgage loan was reduced by the amount of the related construction reserve. For purposes of determining the underwriting debt service coverage ratio for Loan No. 55804, the debt service payment was recalculated based on an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

LOAN GROUP 2 CHARACTERISTICS

Cut-off Date Balance ($)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	1,123,641 – 1,999,999		2		2,422,070		0.8
	2,000,000 – 2,999,999		8		21,634,514		7.3
	3,000,000 – 3,999,999		6		21,228,090		7.2
	4,000,000 – 4,999,999		3		14,105,031		4.8
	5,000,000 – 7,499,999		4		25,014,344		8.4
	7,500,000 – 9,999,999		3		26,310,461		8.9
	10,000,000 – 14,999,999		5		62,069,405		20.9
	20,000,000 – 29,999,999		2		54,586,765		18.4
	30,000,000 – 36,743,802		2		69,488,300		23.4

	Total:		35		296,858,979		100.0

Min: $1,123,641 Max: $36,743,802 Average: $8,481,685

State




		No. of		Aggregate
		Mortgaged		Cut-off Date		% of
		Properties		Balance ($)		Pool


Georgia			2		69,488,300		23.4
California			3		34,644,517		11.7
	Southern		3		34,644,517		11.7
Florida			2		32,882,859		11.1
Arizona			4		32,567,708		11.0
Indiana			3		23,620,461		8.0
Tennessee			3		23,320,000		7.9
Ohio			3		20,739,430		7.0
Wisconsin			4		12,714,221		4.3
New Jersey			1		11,576,254		3.9
Washington			3		7,702,430		2.6
Others			7		27,602,798		9.3

Total:			35		296,858,979		100.0

Property Type

No. of

Aggregate

Mortgaged

Cut-off Date

% of

Properties

Balance ($)

Pool

Multifamily

238,187,166

80.2

Manufactured Housing

58,671,813

19.8

Total:

296,858,979

100.0

Mortgage Rate (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	4.952 – 4.999		2		24,653,047		8.3
	5.000 – 5.249		2		18,766,386		6.3
	5.250 – 5.499		4		68,846,469		23.2
	5.500 – 5.749		12		52,879,538		17.8
	5.750 – 5.999		13		117,809,890		39.7
	6.000 – 6.249		1		2,993,932		1.0
	6.250 – 6.327		1		10,909,718		3.7

	Total:		35		296,858,979		100.0

Min: 4.952% Max: 6.327% Wtd Avg: 5.606%

Original Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	60 – 83		3		45,956,554		15.5
	84 – 99		2		11,173,288		3.8
	100 – 120		23		125,324,120		42.2
	121 – 144		7		114,405,018		38.5

	Total:		35		296,858,979		100.0

Min: 60 Max: 144 Wtd Avg: 114

Remaining Term to Stated Maturity (mos)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	56 – 59		3		45,956,554		15.5
	80 – 99		2		11,173,288		3.8
	100 – 109		1		2,956,095		1.0
	110 – 119		22		122,368,024		41.2
	120 – 139		6		103,495,300		34.9
	140		1		10,909,718		3.7

	Total:		35		296,858,979		100.0

Min: 56 Max: 140 Wtd Avg: 111

Prepayment Provision Summary

No. of

Aggregate

Mortgage

Cut-off Date

% of

Loans

Balance ($)

Pool

Lockout/Defeasance/Open

281,928,594

95.0

Lockout/Yield Maintenance/Open

14,930,386

5.0

Total:

296,858,979

100.0

Cut-off Date Loan-to-Value Ratio (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	48.8 – 49.9		1		1,298,429		0.4
	50.0 – 59.9		3		18,544,196		6.2
	60.0 – 64.9		1		3,389,590		1.1
	65.0 – 69.9		2		35,085,254		11.8
	70.0 – 74.9		7		34,434,585		11.6
	75.0 – 79.9		15		152,917,229		51.5
	80.0 – 85.5		6		51,189,697		17.2

	Total:		35		296,858,979		100.0

Min: 48.8% Max: 85.5% Wtd Avg: 75.0%

Loan-to-Value Ratio at Maturity (%)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	41.2 – 49.9		5		23,232,215		7.8
	50.0 – 59.9		4		49,147,247		16.6
	60.0 – 64.9		7		50,074,292		16.9
	65.0 – 69.9		12		99,263,666		33.4
	70.0 – 74.3		7		75,141,560		25.3

	Total:		35		296,858,979		100.0

Min: 41.2% Max: 74.3% Wtd Avg: 65.0%

Debt Service Coverage Ratios (x)




		No. of		Aggregate
		Mortgage		Cut-off Date		% of
		Loans		Balance ($)		Pool


	1.20x – 1.24x		10		132,025,012		44.5
	1.25x – 1.29x		11		91,856,325		30.9
	1.30x – 1.34x		4		21,613,505		7.3
	1.35x – 1.39x		5		29,180,757		9.8
	1.40x – 1.49x		2		16,054,026		5.4
	1.50x – 1.59x		1		2,340,756		0.8
	1.60x – 1.69x		1		1,298,429		0.4
	1.90x – 2.00x		1		2,490,170		0.8

	Total:		35		296,858,979		100.0

Min: 1.20x Max: 2.00x Wtd Avg: 1.27x


	For purposes of determining loan-to-value ratios for Loan No. 57705, the principal balance of such mortgage loan was reduced by the amount of the related construction reserve. For purposes of determining the underwriting debt service coverage ratio for Loan No. 55804, the debt service payment was recalculated based on an original balance that was reduced by amounts available under the letter of credit securing such mortgage loan.

	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Mortgage Pool Characteristics As of the Cut-off Date*

PREPAYMENT PROVISION BASED ON OUTSTANDING PRINCIPAL BALANCE


Prepayment Provisions(1)(2)(3)	Mar-04		Mar-05		Mar-06		Mar-07		Mar-08		Mar-09		Mar-10



Lockout/Defeasance		100.00%		100.00%		90.24%		82.29%		79.53%		75.48%		75.30%
Yield Maintenance(4)		0.00%		0.00%		9.76%		17.71%		20.47%		24.52%		24.70%
Open		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%

Total		100.00%		100.00%		100.00%		100.00%		100.00%		100.00%		100.00%

Total Beginning Balance (in millions)	$	1,327.18	$	1,316.52	$	1,304.36	$	1,289.96	$	1,274.63	$	1,144.92	$	1,129.02
Percent of Mortgage Pool Balance(2)		100.00%		99.20%		98.28%		97.20%		96.04%		86.27%		85.07%


Prepayment
Provisions(1)(2)(3)	Mar-11		Mar-12		Mar-13		Mar-14		Mar-15		Mar-16		Mar-17		Mar-18		Mar-19



Lockout/Defeasance		79.75%		78.50%		78.29%		80.74%		54.76%		17.39%		15.88%		14.10%		0.00%
Yield Maintenance(4)		20.25%		21.50%		21.71%		19.26%		45.24%		82.61%		84.12%		85.90%		0.00%
Open		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%		0.00%

Total		100.00%		100.00%		100.00%		100.00%		100.00%		100.00%		100.00%		100.00%		0.00%

Total Beginning Balance (in millions)	$	1,010.85	$	942.71	$	923.38	$	157.77	$	65.39	$	34.78	$	33.07	$	31.26	$	0.00
Percent of Mortgage Pool Balance(2)		76.17%		71.03%		69.57%		11.89%		4.93%		2.62%		2.49%		2.36%		0.00%


(1)	Prepayment provisions in effect as a percentage of outstanding loan balances as of the indicated date assuming no prepayments on the Mortgage Loans.

(2)	As of the Cut-off Date.

(3)	Numbers may not total 100% due to rounding.

(4)	As of the Cut-off Date, 20 Mortgage Loans representing 22.6% of the initial pool balance are subject to yield maintenance prepayment provisions after the lockout period. The remaining Mortgage Loans representing 77.4% of the initial pool balance are subject to defeasance after an initial restriction period.


*	The Cut-off Date Balance of Mortgage Loan No. 57365 (such Loan Number is set forth in Annex A to the prospectus supplement) is evidenced by two seniorpari passu promissory notes and one subordinate note and the related Cut-off Date Balance reflects only the outstanding principal balance of the senior note included in the trust.


	The sum of aggregate percentage calculations may not equal 100% due to rounding.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Ten Largest Mortgage Loans or Crossed Pools

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
	Cut-off				Initial			% of					Cut-off			LTV
	Date		Loan		Pool			Applicable					Date LTV			Ratio			Underwritten
Loan Name	Balance		Group		Balance			Loan Group			Property Type		Ratio			at Maturity			DSCR

Leo Burnett Building	$	120,000,000		1		9.0	%		11.6	%		Office		40.0	%		40.0	%		2.61x




Hines-Sumitomo Life Office Portfolio		104,600,000		1		7.9			10.2	%		Office		45.3	%		45.3	%		2.66x




Birkdale Village		55,000,000		1		4.1			5.3	%		Retail		58.6	%		58.6	%		1.66x




Firecreek Crossing		44,867,486		1		3.4			4.4	%		Retail		76.7	%		65.0	%		1.26x




Village at Redondo Beach		42,904,083		1		3.2			4.2	%		Multifamily		65.0	%		54.4	%		1.57x




Hillsborough Promenade		40,803,175		1		3.1			4.0	%		Retail		78.3	%		66.7	%		1.31x




Milpitas Square		39,829,107		1		3.0			3.9	%		Retail		69.1	%		53.7	%		1.25x




Mount Vernon Place Apartments		36,743,802		2		2.8			12.4	%		Multifamily		76.5	%		66.3	%		1.20x




Mercantile East Shopping Center		34,000,000		1		2.6			3.3	%		Retail		65.4	%		50.7	%		1.42x




Dunwoody Place Apartments		32,744,498		2		2.5			11.0	%		Multifamily		68.7	%		59.4	%		1.20x

Total/Wtd. Avg.	$	551,492,151				41.6	%							58.4	%		52.5	%		1.89x

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Mortgage
Loan Name	Rate

Leo Burnett Building		5.096	%




Hines-Sumitomo Life Office Portfolio		4.775	%




Birkdale Village		4.080	%




Firecreek Crossing		5.815	%




Village at Redondo Beach		5.410	%




Hillsborough Promenade		5.890	%




Milpitas Square		5.870	%




Mount Vernon Place Apartments		5.900	%




Mercantile East Shopping Center		5.940	%




Dunwoody Place Apartments		5.780	%




Total/Wtd. Avg.		5.278	%


	The sum of aggregate percentage calculations may not equal 100% due to rounding. Debt service coverage ratio was calculated based on net cash flow unless otherwise noted in this term sheet.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

LEO BURNETT BUILDING

G8665490.eps


G8665488.eps		g8665489.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

LEO BURNETT BUILDING



Loan Information





Original Principal Balance:		$120,000,000





First Payment Date:		February 1, 2004





Term/Amortization:		120/0 months





Interest Only Period:		120 months





Shadow Rating (S&P/Fitch)†:		AAA/AAA





Maturity Date:		January 1, 2014





Expected Maturity Balance:		$120,000,000





Borrowing Entity:		35 W. Wacker Owner, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 117 payments Open: 3 payments





Up-Front Reserves:





	Tax Reserve:	Yes





Ongoing Monthly Reserve:





	Tax Reserve:	Yes





	Replacement Reserve:	$18,630





	TI/LC:	$10,000,000 if Winston & Strawn does not renew its lease; $20,000,000 if Leo Burnett does not renew its lease; $30,000,000 combined





Lockbox:		Springing


†	The shadow ratings of the Leo Burnett Building reflect the credit quality of the related Mortgage Loan and the pooling benefit that results from the inclusion of the related Mortgage Loan in the Mortgage Pool.



Financial Information





Cut-off Date Balance:		$120,000,000




Cut-off Date LTV:		40.0%




Maturity Date LTV:		40.0%




*Underwritten DSCR:**		2.61x




Mortgage Rate:		5.096%
* DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Office




Property Sub-Type:		CBD




Location:		Chicago, IL




Year Built/Renovated:		1989/NA




Net Rentable Square Feet:		1,117,978




Cut-off Balance per SF:		$107




	Occupancy as of 12/1/03:	98.2%




Ownership Interest:		Fee




Property Management:		The Buck Management Group, LLC




U/W Net Cash Flow:		$20,362,424




Appraised Value:		$300,000,000

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(11/30/03)		(12/31/02)

Effective Gross Income	$	42,752,582	$	42,340,944	$	41,111,983




Total Expenses	$	20,709,662	$	20,416,800	$	20,694,575




Net Operating Income (NOI)	$	22,042,920	$	21,924,144	$	20,417,408




Cash Flow (CF)	$	20,362,424	$	21,924,144	$	20,417,408




DSCR on NOI		2.82x		2.81x		2.61x




DSCR on CF		2.61x		2.81x		2.61x




	Ratings		Tenant		% Total					Potential		% Potential
Top Tenants†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent

Leo Burnett		Not Rated/Not Rated		697,678		62.41	%	$	17.76	$	12,389,523		52.07	%




Winston & Strawn		Not Rated/Not Rated		357,270		31.96	%	$	28.83	$	10,301,523		43.30	%

Totals				1,054,948		94.36	%			$	22,691,046		95.37	%

[Additional columns below]

[Continued from above table, first column(s) repeated]




	Lease
Top Tenants†	Expiration

Leo Burnett		12/31/2012




Winston & Strawn		3/31/2006




Totals


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.




										Cumulative
	Number of		Expiring		% Total			Cumulative		% Total
Year of Expiration††	Leases Expiring		SF		SF			Total SF		SF

2004		4		5,251		0.5	%		5,251		0.5	%




2005		4		11,828		1.1	%		17,079		1.5	%




2006		2		26,283		2.4	%		43,362		3.9	%




2009		4		332,270		29.7	%		375,632		33.6	%




2010		1		1,402		0.1	%		377,034		33.7	%




2011		2		1,430		0.1	%		378,464		33.9	%




2012		4		697,678		62.4	%		1,076,142		96.3	%




2020		1		21,969		2.0	%		1,098,111		98.2	%




Vacant		—		19,867		1.8	%		1,117,978		100.0	%

Total		22		1,117,978		100.0	%


††	Information obtained from Underwritten Rent Roll.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants


•	The subject property is 98.2% leased by three office tenants at an average lease rate of $22/square foot and nine retail tenants at an average lease rate of $32/square foot. The two largest tenants, representing more than 94.4% of total net rentable area, are:


	•	Leo Burnett Worldwide, Inc. (“Leo Burnett”) (Not Rated), one of the nation’s largest advertising agencies, occupies 697,678 square feet (62.4%) on an over 15-year lease expiring in December 2012 with four five-year options to renew at 95% of market rents, subject to 18 months notice. Founded in 1935, the company is a wholly owned subsidiary of the advertising conglomerate Publicis Groupe (NYSE: PUB) (Not Rated), Leo Burnett’s services span advertising (print, television and direct mail), marketing (direct, database and event) and public relations. Leo Burnett’s major clients include Kellogg, the United States Army, McDonald’s, Procter & Gamble, Walt Disney and General Motors. Leo Burnett produced $802 million in sales in 2002. The subject location serves as the corporate headquarters for Leo Burnett.

	•	Winston & Strawn LLP (Not Rated), one of the nation’s oldest and largest law firms, occupies 357,270 square feet (32.0%) on two separate leases expiring in March 2006 and December 2009. The firm’s 20-year lease for 332,270 square feet expires in December 2009, with an option to extend for a 10-year term at market rents, subject to 24 months notice. In addition, the firm’s 15-year lease for the 33rd floor space (25,000 square feet) expires March 31, 2006 (subject to an extension option). Founded in 1853, Winston & Strawn LLP employs nearly 900 attorneys and has offices located in Chicago, New York, Washington, D.C., Los Angeles, San Francisco, Geneva, Paris and London. The location serves as the firm’s world headquarters.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Leo Burnett Building loan is secured by a first mortgage on a Class A, 50-story, 1,117,978 square foot office building located at 35 West Wacker Drive in the South Loop area of Chicago, Illinois.

The Borrower:

•

The borrower, 35 W. Wacker Owner, LLC (the “Leo Burnett Building Borrower”), is a single-purpose, bankruptcy-remote entity with two independent directors for which the borrower’s legal counsel delivered a non-consolidation opinion at loan closing. Effectively, the economic interests in the borrower are held: 94.5% by Wells Real Estate Investment Trust, Inc. (“Wells REIT”); 3.5% by Leo Burnett USA, Inc.; and 2.0% by John S. Buck Company. The borrower principal and sponsor of the Leo Burnett Building loan is Wells REIT, a suburban Atlanta-based REIT that specializes in acquiring and managing income-producing office and industrial properties leased to Fortune 500-type tenants. Established in 1984, Wells REIT and the two other investment programs of the Wells Real Estate Funds (the Wells S&P REIT Index Fund and the Wells limited partnership program) have completed approximately $4 billion of class A office and industrial acquisitions since 2001 and collectively manage more than $5 billion in assets for more than 150,000 investors nationwide.

The Property:


•	The collateral for the Mortgage Loan consists of the fee simple interest in a 50-story central business district office building totaling 1,117,978 square feet and includes a two-level subterranean garage providing 112 parking spaces. Completed in 1989 and situated on a 1.2-acre site, the property was acquired by the sponsor in November 2003.

•	The Leo Burnett Building Borrower, at its sole cost and expense, is required to keep the Leo Burnett Building Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Leo Burnett Building Borrower is also required to use commercially reasonable efforts to maintain a comprehensive all risk insurance policy without an exclusion for terrorist acts.

Property Management:


•	The Buck Management Group, LLC, the property management division of John S. Buck Company and an affiliate of the Borrower, manages the property. Established in 1981 and now one of the largest management and leasing companies in the Midwest, Buck Management Group, LLC manages approximately 12 million square feet of office, retail & residential properties in downtown and suburban Chicago.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665404.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

HINES SUMITOMO LIFE OFFICE PORTFOLIO


G8665451.eps		g8665452.eps		G8665453.eps


G8665454.eps


G8665455.eps		g8665456.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

HINES SUMITOMO LIFE OFFICE PORTFOLIO



Whole Loan Information





Original Principal Balance:		$316,405,000




First Payment Date:		October 1, 2003




Term/Amortization:		120/0 months




Interest Only Period:		120 months




Shadow Rating (S&P/Fitch)†:		BBB-/BBB-




Maturity Date:		September 1, 2013




Expected Maturity Balance:		$316,405,000




Borrowing Entity:		Hines 499 Park LLC Hines 425 Lexington Avenue LLC Hines 1200 Nineteenth Street, LLC




Interest Calculation:		30/360




Call Protection:		Lockout: 24 Payments GRTR 1% PPMT or Yield Maintenance: 95 payments Open: 1 payment




Up-Front Reserves††:




	Tax Reserve:	Yes




	Replacement Reserve:	$24,903




	TI/LC:	$99,611




Ongoing Monthly Reserves††:




	Tax Reserve:	Yes




	Replacement Reserve:	$24,903




	TI/LC:	$99,611




Lockbox:		Hard


†	The shadow ratings of the Hines Sumitomo Loan or the Hines Sumitomo Senior Component, as applicable, reflect the credit quality of the related Mortgage Loan and the pooling benefit that results from the inclusion of the related Mortgage Loan in the Mortgage Pool.

††

The Hines Sumitomo Borrower’s obligation to maintain replacement, TI/LC, excess cash, operating expense and extraordinary expense reserve funds will terminate, other than with respect to certain lease reserve funds (including the deposit of early termination fees with respect to certain tenants and lease reserve funds related to the Canadian Imperial Bank of Commerce tenant), upon payment in full of the mezzanine loan if no event of default exists under the Hines Sumitomo loan documents.



Financial Information





*Whole Loan Balance:**		$316,405,000




*Hines Sumitomo Note B Loan Balance:**		$51,805,000




*Aggregate Hines Sumitomo Senior Note Balance:**		$264,600,000




Senior Component Shadow Rating (S&P/Fitch)†:		AAA/AAA




Trust Senior Balance “Hines Sumitomo Senior Note A-2”:		$104,600,000




Cut-off Date LTV:		45.3%(1)




Maturity Date LTV:		45.3%(1)




Underwritten DSCR:**		2.66x(1)(2)




Mortgage Rate:		4.775%
* As of the Cut-off Date.
**DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:			Office




Property Sub-Type:			CBD




Location:			New York, NY Washington, DC




Year Built/Renovated:




499 Park Avenue:			1981/NA




425 Lexington Avenue:			1987/NA




1200 19th Street N.W.:			1964/1987




Net Rentable Square Feet:			1,187,723




Cut-off Balance per SF:			$223(1)




	Occupancy:




		499 Park Avenue as of 1/12/04:	92.5%




		425 Lexington Avenue as of 12/1/03:	99.6%




		1200 19th Street as of 1/28/04:	99.6%




Ownership Interest:			Fee/Leasehold




Property Management:			Hines Interests Limited Partnership




U/W Net Cash Flow:			$44,237,603




Appraised Value:			$583,800,000


(1)	Based on aggregate principal balance of the Hines Sumitomo Senior Note.

(2)	The Hines Sumitomo Loan is interest only for its entire loan term. If debt service had been calculated on such interest only payments the resulting underwritten DSCR would have been approximately 3.50x.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(9/30/03)		(12/31/02)

Effective Gross Income	$	79,200,090	$	77,690,571	$	73,507,805




Total Expenses	$	31,323,989	$	25,858,697	$	26,757,574




Net Operating Income (NOI)	$	47,876,101	$	51,831,874	$	46,750,231




Cash Flow (CF)	$	44,237,603	$	51,831,874	$	46,750,231




DSCR on NOI(1)		2.88x		3.12x		2.81x




DSCR on CF(1)		2.66x		3.12x		2.81x


(1)	Based on aggregate principal balance of the Hines Sumitomo Senior Note.




	Ratings		Tenant		% Total					Potential		% Potential			Lease
499 Park Avenue†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent			Expiration
Top Tenants
Bloomberg L.P.		Not Rated		145,463		51.88	%	$	65.93	$	9,590,253		50.72	%		9/30/2004




Dreier and Baritz LLP††		Not Rated		32,893		11.73		$	75.37		2,479,195		13.11			5/31/2011




Mercer Management		Not Rated		20,293		7.24		$	50.00		1,014,650		5.37			9/30/2006

Totals				198,649		70.85	%			$	13,084,098		69.20	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.

††	The tenant has vacated, however Hines Real Estate Holdings Limited Partnership has executed a master lease for the space in accordance with the Hines Sumitomo Loan documents and such master lease has a lease expiration of May 31, 2011 subject to the terms of the master lease.




	Ratings		Tenant		% Total			Rent		Potential		% Potential			Lease
425 Lexington Avenue†	S&P/Fitch		Total SF		SF			PSF		Rent		Rent			Expiration
Top Tenants
Simpson Thacher & Bartlett		Not Rated		389,585		57.66	%	$	61.84	$	24,090,085		58.70	%		10/31/2018




Canadian Imperial Bank of Commerce		A+/AA-		271,315		40.15		$	55.07		14,940,520		36.41			10/31/2008

Totals				660,900		97.81	%			$	39,030,605		95.11	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.




	Ratings		Tenant		% Total					Potential		% Potential			Lease
1200 19th Street†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent			Expiration
Top Tenants
Piper Rudnick LLP		Not Rated		164,997		69.74	%	$	36.99	$	6,103,100		71.35	%		9/30/2007




Kelley Drye & Warren LLP		Not Rated		43,711		18.48		$	34.79		1,520,706		17.78			9/30/2007

Totals				208,708		88.22	%			$	7,623,806		89.13	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1




499 Park Avenue										Cumulative
	Number of		Expiring		% Total			Cumulative		% Total
	Leases Expiring		SF		SF			Total SF		SF
Year of Expiration††
2004		9		81,959		29.2	%		81,959		29.2	%




2005		2		8,821		3.1			90,780		32.4	%




2006		2		27,205		9.7			117,985		42.1	%




2007		2		11,238		4.0			129,223		46.1	%




2010		3		77,686		27.7			206,909		73.8	%




2011		3		32,893		11.7			239,802		85.5	%




2012		3		16,161		5.8			255,963		91.3	%




2013		1		11,161		4.0			267,124		95.3	%




2014		1		2,489		0.9			269,613		96.2	%




Vacant				10,766		3.8			280,379		100.0	%

Total		26		280,379		100.0	%




425 Lexington Avenue										Cumulative
	Number of		Expiring		% Total			Cumulative		% Total
	Leases Expiring		SF		SF			Total SF		SF
Year of Expiration††
2008		2		271,315		40.2	%		271,315		40.2	%




2010		1		1,597		0.2			272,912		40.4	%




2012		3		4,276		0.6			277,188		41.0	%




2013		2		4,963		0.7			282,151		41.8	%




2018		6		389,585		57.7			671,736		99.4	%




Vacant				3,942		0.6			675,678		100.0	%

Total		14		675,678		100.0	%




1200 19th Street										Cumulative
	Number of		Expiring		% Total			Cumulative		% Total
	Leases Expiring		SF		SF			Total SF		SF
Year of Expiration††
2006		2		5,270		2.2	%		5,270		2.2	%




2007		9		208,858		88.3			214,128		90.5	%




2008		1		6,933		2.9			221,061		93.4	%




2010		6		13,197		5.6			234,258		99.0	%




2013		1		1,029		0.4			235,287		99.5	%




Vacant				1,299		0.5			236,586		100.0	%

Total		19		236,586		100.0	%

††

Information obtained from Underwritten Rent Roll. With respect to leases expiring in 2003, if the most recent rent rolls (as of 1/12/2004 for 499 Park Avenue, 12/1/2003 for 425 Lexington Avenue and 1/28/2004 for 1200 19th Street) indicated that the related tenant had renewed its lease, the expiration of the renewed lease was used for purposes of these tables; if such rent rolls did not indicate that the related tenant had renewed, the space was treated as vacant.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants

499 Park Avenue


•	Bloomberg L.P. (Not Rated), the financial information services company, occupies 145,463 square feet (51.9%) on two separate leases expiring in September 2004 and December 2015. Bloomberg L.P. is in the process of building a new headquarters building in close proximity to the 499 Park Avenue building. One lease for 29.2% of the building expires in September 2004. Bloomberg L.P. is in negotiations to extend the lease expiration to September 2005, but will then vacate the space. The other lease for 22.2% of the building expires in December 2015. This lease includes a termination option in December 2010. In order to terminate the lease, Bloomberg L.P. must give 36 months notice (December 2007) and pay a $4,951,000 lease termination fee at the time notice is given.

•	Dreier and Baritz LLP (Not Rated), a law firm, occupies 32,893 square feet (11.7%) on a lease expiring in May 2011. The tenant has vacated, however Hines Real Estate Holdings Limited Partnership has executed a master lease for the space in accordance with the Hines Sumitomo Loan documents and such master lease has a lease expiration of May 31, 2011 subject to the terms of the master lease.

425 Lexington Avenue


•	Simpson, Thacher & Bartlett (Not Rated), a law firm, occupies 389,585 square feet (57.7%) on various leases expiring in October 2018.

•	Canadian Imperial Bank of Commerce (“CIBC”, Rated “A+” by S&P and “AA-” by Fitch) occupies 271,315 square feet (40.2%) on two leases expiring in October 2008. CIBC has signed a lease to occupy approximately 1.2 million square feet in 300 Madison Avenue as its new headquarters building with occupancy to commence in 2004. It is expected that CIBC will be vacating space in the 425 Lexington Avenue building in stages as it relocates to the new building. If the Hines Sumitomo Borrower cannot find a tenant to sublease this space or to execute a new lease, the Hines Sumitomo Borrower shall make monthly deposits of $208,700 commencing January 2005 through October 2008 into a tenant improvement and leasing commissions reserve. Approximately $9.6 million will have accumulated in the reserve account by October 2008 to re-lease CIBC’s space. Any termination fees under the CIBC lease shall also be deposited into the reserve account.

1200 19th Street


•	Piper Rudnick LLP (Not Rated), a law firm, occupies 164,997 square feet (71.2%) on various leases expiring in September 2007.

•	Kelley Drye & Warren LLP (Not Rated), a law firm, occupies 43,711 square feet (18.9%) on two leases expiring in September 2007.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Hines Sumitomo Life Office Portfolio Mortgage Loan is secured by first mortgages on three Class A, central business district office buildings containing a total of 1,187,723 net rentable square feet, located at 499 Park Avenue and 425 Lexington Avenue in New York, and at 1200 19th Street in Washington, DC.

•	This $104,600,000 loan is one of twopari passu loans totaling $264,600,000. The Hines Sumitomo Senior Note A-1, in the amount of $160,000,000, is held outside of the trust. There also exists an investment grade subordinate Hines Sumitomo Note B Loan of $51,805,000 held outside of the Trust.

•	The mortgages on the three properties securing the Hines Sumitomo Mortgage Loan are cross-collateralized and cross-defaulted with each other so that (i) an event of default under any of the mortgages shall constitute an event of default under each of the other mortgages which secure the related mortgage note, (ii) an event of default under the mortgage note shall constitute an event of default under each mortgage, and (iii) each mortgage shall constitute security for the mortgage note.

•	At any time following the expiration of the Hines Sumitomo lockout period,provided that no event of default has occurred and is continuing and the mezzanine loan has been paid in full, the Hines Sumitomo Borrower may obtain a release of a Hines Sumitomo Mortgaged Property from the lien of the mortgage by substituting a similar Class A office property,provided conditions are satisfied including notice, standard due diligence, loan-to-value and debt service coverage ratio tests, rating agency approval and other customary requirements.

•	At any time following the expiration of the Hines Sumitomo lockout period,provided that no event of default has occurred and is continuing and the mezzanine loan has been paid in full, the Hines Sumitomo Borrower is permitted to obtain the release of one of the properties securing the Hines Sumitomo Mortgage Loan,provided conditions are satisfied including, notice, payment of the release price, delivery of documents, loan-to-value and debt service coverage ratio tests, reimbursement of costs and expenses, opinion delivery and other customary requirements.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

The Borrower:


•	Hines 499 Park LLC; Hines 425 Lexington Avenue LLC and Hines 1200 Nineteenth Street LLC (collectively, the “Hines Sumitomo Borrower”), are single-purpose, bankruptcy-remote entities for which Hines Sumitomo Borrower’s legal counsel delivered a non-consolidation opinion at loan closing. Equity interests in the Hines Sumitomo Borrower are as follows:


	•	Hines 499 Park LLC and Hines 425 Lexington Avenue LLC are both held 100% by Hines NY Office Properties LLC.

	•	Hines 1200 Nineteenth Street LLC is held 99.5% by Hines NY Office Properties LLC and 0.5% by Hines 1200 Nineteenth Street Member LLC.

	•	Hines NY Office Properties LLC is owned by Hines-Sumisei NY Core Office Trust, a Maryland real estate investment trust and the Borrower Principal.

The sponsor of the Hines Sumitomo Mortgage Loan is Hines Interests Limited Partnership (“Hines”), an affiliate of the Hines Sumitomo Borrower entity. Hines, formed in 1957 by Gerald Hines and headquartered in Houston, Texas.

The Property:


•	The collateral for the Hines Sumitomo Mortgage Loan consists of the fee/leasehold interests in 499 Park Avenue and 425 Lexington Avenue in New York, New York, and the fee simple interest in 1200 19th Street in Washington, DC. These office buildings contain a total of 1,187,723 net rentable square feet with a weighted average occupancy of 97.7%.


	•	499 Park Avenue is a 28-story Class A office building with ground floor retail space built in 1981 containing 280,404 net rentable square feet situated on 0.3 acre located at the southeast corner of Park Avenue and East 59th Street in New York. The 499 Park Avenue building is easily accessible by public transportation and within walking distance to the residential Upper East Side and leading Midtown hotels, restaurants and stores. The property is located in Manhattan’s Plaza District office sub-market. As of the rent roll dated January 12, 2004, the 499 Park Avenue building was approximately 92.5% leased.

	•	425 Lexington Avenue is a 31-story Class A office building with ground floor retail space built in 1987 containing 675,678 net rentable square feet situated on 0.8 acre located on the west side of Lexington Avenue between East 43rd and East 44th Streets in New York. The 425 Lexington Avenue building is accessible by public transportation, including the Third Avenue, Lexington Avenue and 42nd Street cross-town buses and the subway directly across the street at Grand Central Station. Leading New York Midtown hotels, restaurants and stores are within walking distance. As of the rent roll dated December 1, 2003, the property was approximately 99.6% leased.

	•	1200 19th Street is an 8-story Class A office building with ground floor retail space and an underground parking garage built in 1964 and renovated in 1987 containing 231,641 net rentable square feet situated on 0.9 acre located at the northwest corner of 19th and M Streets, NW Washington, DC. The 1200 19th Street building is located in the downtown office sub-market of the District of Columbia office market. As of the rent roll dated January 28, 2004, the 1200 19th Street building was approximately 99.6% leased.

•

The Hines Sumitomo Borrower, at its sole cost and expense, is required to keep the Hines Sumitomo Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Hines Sumitomo Borrower is also required to use commercially reasonable efforts to maintain a comprehensive all risk insurance policy without exclusion for terrorist acts.

Ground Leases:

•

The 499 Park Avenue and the 425 Lexington Avenue buildings are both subject to ground leases. The mortgage loan covering the 499 Park Avenue and the 425 Lexington Avenue properties is both a fee and leasehold mortgage and encumbers both the fee and leasehold interest in the properties. Additionally, the Hines Sumitomo Borrower has executed a subordination agreement subordinating the ground leases to the lien, terms, and conditions of the fee mortgage.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Property Management:

•

Hines Interests Limited Partnership an affiliate of the Hines Sumitomo Borrower entity manages the Hines Sumitomo Mortgaged Property. The company has regional offices located in San Francisco, New York, Chicago and Atlanta, with a physical presence in 80 cities in the United States and international locations in Europe, China, Mexico, Russia and South America. Hines owns and/or manages over 70 million square feet of commercial space, of which 47 million square feet is owned and 36 million square feet is third party managed, located in 168 buildings in the United States. Hines manages 10 office buildings in New York City.

Current Mezzanine or Subordinate Indebtedness:


•	$51,805,000 investment grade B-note held outside of the trust.

•	$42,288,469 mezzanine loan held outside of the trust.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665470.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665471.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

BIRKDALE VILLAGE


G8665474.eps		g8665477.eps

G8665476.eps


G8665473.eps		g8665475.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

BIRKDALE VILLAGE



Loan Information





Original Principal Balance:		$55,000,000





First Payment Date:		September 1, 2003





Term/Amortization:		84/0 months





Interest Only Period:		84 months





Maturity Date:		August 1, 2010





Expected Maturity Balance:		$55,000,000





Borrowing Entity:		Inland Southeast Birkdale, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout: 36 payments GRTR 1% PPMT or Yield Maintenance: 45 payments Open: 3 payments





Up-Front Reserves:





Master Reserve and Security Agreement:		$7,291,998




Lockbox:		Hard



Financial Information





Cut-off Date Balance:		$55,000,000




Cut-off Date LTV:		58.6%




Maturity Date LTV:		58.6%




*Underwritten DSCR:**		1.66x




Mortgage Rate:		4.0800%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Retail




Property Sub-Type:		Retail/Multifamily/Office




Location:		Huntersville, NC




Year Built/Renovated:		2002/NA




Net Rentable Square Feet:		656,614




Cut-off Balance per SF:		$84




Occupancy:
Retail as of 12/31/03(1)		88.4%




Ownership Interest:		Fee




Property Management:		Inland Mid Atlantic Management Corporation




U/W Net Cash Flow:		$5,291,562




Appraised Value:		$93,880,000


(1)	Occupancy for the multifamily portion of the Mortgaged Property as of 1/21/04 is 82.5% and occupancy for the office portion of the Mortgaged Property as of 12/31/03 is 32.4%.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent
	Underwritten		(9/30/03)

Effective Gross Income	$	7,671,205	$	9,400,606




Total Expenses	$	1,993,974	$	2,054,738




Net Operating Income (NOI)	$	5,677,231	$	7,345,868




Cash Flow (CF)	$	5,291,562	$	6,218,797




DSCR on NOI		1.78x		2.31x




DSCR on CF		1.66x		1.95x


	Ratings		Tenant		% Total					Potential		% Potential			Lease
Top Tenants†	S&P/Fitch		Total SF		SF(1)			Rent PSF		Rent		Rent(1)			Expiration

Dick’s Sporting Goods		Not Rated/Not Rated		32,000		11.06	%	$	15.00	$	480,000		7.47	%		1/31/2018




Barnes & Noble		BB/Not Rated		23,437		8.10	%	$	15.76	$	369,367		5.75	%		1/31/2013

Totals				55,437		19.17	%			$	849,367		13.21	%


(1)	Information based solely on commercial portion.


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.



	Number of		Expiring		% Total			Cumulative		Cumulative
Year of Expiration(1)†	Leases Expiring		SF		SF			Total SF		% Total SF

2005		7		10,152		3.5	%		10,152		3.5	%




2006		6		8,972		3.1	%		19,124		6.6	%




2007		13		34,452		11.9	%		53,576		18.5	%




2008		5		10,595		3.7	%		64,171		22.2	%




2009		1		2,754		1.0	%		66,925		23.1	%




2010		2		8,357		2.9	%		75,282		26.0	%




2012		6		21,809		7.5	%		97,091		33.6	%




2013		15		87,749		30.3	%		184,840		63.9	%




2014		1		5,500		1.9	%		190,340		65.8	%




2018		1		32,000		11.1	%		222,340		76.9	%




2025		1		0		0.0	%		222,340		76.9	%




Vacant				66,918		23.1	%		289,258		100.0	%

		58		289,258		100.0	%


(1)	Lease expirations are for Retail and Office lease expirations only.


†	Information obtained from Underwritten Rent Roll.


	1 Bedroom		2 Bedroom		3 Bedroom

Number of Units		173		123		24




Average Rent	$	857	$	1,122	$	1,599




Average Unit Size (SF)		928		1,339		1,719

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants

•

The Mortgaged Property’s retail space is 88.4% leased to a mix of national, regional and local retail tenants, including two anchor tenants that comprise 19.2% of the total net rentable square feet and 13.2% of total gross potential rent. The remaining inline retail tenants include Gap, Banana Republic, Pier 1 Imports, New Cargo Furniture, Victoria’s Secret, Bath & Body Works, Talbot’s, American Eagle Outfitters, Ann Taylor, Williams-Sonoma, The Bombay Company, Liz Claiborne Footwear and Starbucks. Birkdale Village is also shadow anchored by a 14,490 square foot Walgreens and a 16-screen Eastern Federal Cinema, which are not part of the loan collateral. Information concerning the two anchor tenants is as follows:


	•	Dick’s Sporting Goods (NYSE: “DKS”) (Not Rated), a sporting goods chain, occupies 32,000 square feet (11.0% of total retail net rentable area) on a 16-year lease expiring in January 2018. Headquartered in Pittsburgh, Pennsylvania, Dick’s Sporting Goods operates over 150 stores located in 27 states. Dick’s Sporting Goods is a full-line sporting goods retailer offering an assortment of brand name sporting goods equipment, apparel and footwear in a specialty store environment. For the fiscal year ended February 1, 2003, Dick’s Sporting Goods reported revenues of $1.3 billion and net income of $38 million. As of November 1, 2003, the company reported total assets of $549 million and stockholders’ equity of $208 million.

	•	Barnes & Noble, Inc. (Rated “BB” by S&P), one of the nation’s largest bookstore, video game and entertainment software retailers, occupies 23,437 square feet (8.1% of total retail net rentable area) on a 10-year lease expiring in January 2013. Headquartered in New York, New York, Barnes & Noble, Inc. operated 886 bookstores and 1,231 video game and entertainment software stores as of February 1, 2003. For the fiscal year ended February 1, 2003, Barnes & Noble, Inc. reported revenues of $5.3 billion and net income of $100 million. As of November 1, 2003, Barnes & Noble, Inc. reported total assets of $3.5 billion and stockholders’ equity of $1.1 billion.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

• Property Management:


•	Inland Mid Atlantic Management Corporation (“Mid Atlantic”), a Birkdale Village Borrower related entity, manages the subject property. Mid Atlantic is one of several Inland affiliates managing the REIT’s portfolio of retail properties. Mid Atlantic manages 57 retail properties containing approximately 6.9 million square feet located in 11 states. Mid Atlantic is a division of Mid America Management Corporation, with property management experience in large neighborhood centers, national retailers, small strip centers, and single tenant restaurant buildings.

•	The Birkdale Village Mortgaged Property has two sub-management agreements in place, one for the retail and office portion and one for the multifamily portion. The retail/ office portion is managed by Pappas Properties, LLC. Founded in 1999, Pappas Properties, LLC is a Charlotte, North Carolina-based developer overseeing several major retail and land development projects in the Charlotte area. Crosland, Inc. manages the multifamily portion. Founded in 1937, Crosland, Inc. is a Charlotte-based real estate company active in retail, multifamily, single-family, industrial and office development. The company holds equity interests in 32 shopping centers (4.6 million square feet), 17 multifamily properties (3,577 units), 20 single-family subdivisions (6,098 home sites) and 18 office/ industrial parks (2,539 acres). Crosland, Inc. and Pappas, Inc., through an affiliated entity, retained a 1% member interest in the Borrower.

The Loan:


•	The Birkdale Village Mortgage Loan is secured by a first mortgage on a 656,614 square foot mixed-use, lifestyle town center built in 2002 and located in Huntersville, Mecklenburg County, North Carolina.

The Borrower:


•	The borrower, Inland Southeast Birkdale, LLC (the “Birkdale Village Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity with at least two independent directors for which borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	ISE Charlotte L.L.C. (“ISEC”), a Delaware limited liability company, owns 98.97% of the Birkdale Village Borrower as its managing member and Crosland/ Pappas Birkdale Holdings, LLC a limited liability company owns the remaining 1.03%. Inland Retail Real Estate Trust, Inc., the borrower principal for the Birkdale Village Mortgage Loan, and a Maryland corporation, indirectly owns 99.9% of ISEC. Crosland, Inc. and Pappas Properties, LLC, Birkdale Village’s joint venture developers and sellers, own Crosland/ Pappas Birkdale Holdings, LLC.

•	The Inland Real Estate Group of Companies (the “Inland Group”) is comprised of independent real estate investment and financial companies doing business nationwide. With 35 years of experience specializing in investment, commercial real estate brokerage, land development, acquisition and mortgage lending, the Inland Group is one of the nation’s largest privately held commercial real estate companies. Based in Oak Brook, Illinois, Inland Group is a self-administered Real Estate Investment Trust (“REIT”) that owns, acquires and manages neighborhood and community retail centers. Inland Retail currently owns and manages more than 170 retail properties comprising more than 20 million square feet of retail space.

The Property:


•	The collateral for the Mortgage Loan consists of the fee interest in a 24-building mixed-use, lifestyle town center totaling 656,614 net rentable square feet. The Birkdale Village Mortgaged Property contains 235,476 net rentable square feet of retail space (35.9%), 54,605 square feet of office space (8.3%), and 320 luxury apartment units totaling 366,533 square feet (55.8%). Four four-story buildings are entirely multifamily, 16 four-story buildings contain ground floor retail space with apartment units above, two four-story buildings contain ground floor retail space with office space above and two buildings are one-story single-tenant retail. The Birkdale Village Mortgaged Property was built in 2002 and is situated on a 46.5-acre site with 2,101 parking spaces (in four two-story parking decks and on surface lots) in Huntersville, North Carolina, approximately 16 miles north of the Charlotte central business district.

•	The Birkdale Village Borrower, at its sole cost and expense, is required to keep the Birkdale Village Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Birkdale Village Borrower is required to maintain terrorism insurance in an amount not less than the replacement cost of the improvements provided that so long as (i) Birkdale Village Borrower is the owner of Mortgaged Property and (ii) borrower principal for the Birkdale Village Mortgage Loan maintains a net worth of not less than $1,000,000,000.00, Birkdale Village Borrower shall maintain terrorism insurance in an amount not less than $25,000,000.00.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665405.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

FIRECREEK CROSSING


G8665483.eps		g8665482.eps

G8665484.eps		g8665485.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

FIRECREEK CROSSING



Loan Information





Original Principal Balance:		$45,000,000





First Payment Date:		January 1, 2004





Term/Amortization:		120/360 months





Maturity Date:		December 1, 2013





Expected Maturity Balance:		$38,039,590





Borrowing Entity:		Pacific Firecreek Holdings, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 117 payments Open: 3 payments





Up-Front Reserves:





Tax Reserve:		Yes





Replacement Reserve:		$50,000





Ongoing Reserves:





Tax Reserve:		Yes





Lockbox:		Hard



Financial Information





Cut-off Date Balance:		$44,867,486




Cut-off Date LTV:		76.7%




Maturity Date LTV:		65.0%




*Underwritten DSCR:**		1.26x




Mortgage Rate:		5.815%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Retail




Property Sub-Type:		Anchored




Location:		Reno, NV




Year Built/Renovated:		1996/NA




Net Rentable Square Feet:		347,651




Cut-off Balance per SF:		$129




Occupancy as of 1/1/04:		97.2%




Ownership Interest:		Fee




Property Management:		American Assets, Inc.




U/W Net Cash Flow:		$3,983,398
Appraised Value:†		$58,500,000

†

As stabilized. The “as stabilized” value, which was used for Cut-off Date loan-to-value ratio and balloon loan-to-value ratio, assumes completion of the new Michael’s building (the Firecreek Crossing Borrower executed the agreement prior to the loan closing, and the Firecreek Crossing Borrower has provided a lien-free guarantee for the completion of the building). The “as is” value without such assumption is $55,500,000.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(9/30/03)		(12/31/02)

Effective Gross Income	$	5,189,552	$	4,353,687	$	3,805,330




Total Expenses	$	1,027,510	$	927,620	$	920,666




Net Operating Income (NOI)	$	4,162,042	$	3,426,067	$	2,884,664




Cash Flow (CF)	$	3,983,398	$	3,426,067	$	2,884,664




DSCR on NOI		1.31x		1.08x		0.91x




DSCR on CF		1.26x		1.08x		0.91x


	Ratings		Tenant		% Total				Potential		% Potential		Occupancy			Lease
Top Tenants†	S&P/Fitch		Total SF		SF		Rent PSF		Rent		Rent		Cost(1)			Expiration

Safeway		BBB/BBB		55,269		15.90%	$	12.27	$	678,422		14.24%		5.45	%		5/31/2016




TJX Co		A/Not Rated		45,899		13.21%	$	11.90	$	546,000		11.46%					5/31/2013




Circuit City		Not Rated/Not Rated		45,524		13.10%	$	14.46	$	658,488		13.82%					1/31/2017




Gart Bros		Not Rated/Not Rated		43,500		12.52%	$	14.09	$	612,915		12.86%		8.04	%		11/30/2012




Office Depot		BBB-/Not Rated		31,850		9.16%	$	11.00	$	350,350		7.35%					9/30/2011




Ross		BBB/Not Rated		30,000		8.63%	$	11.50	$	345,000		7.24%		3.95	%		1/31/2007




Michaels		BB+/Not Rated		23,885		6.87%	$	14.50	$	346,333		7.27%					2/28/2015

Totals				275,927		79.40%			$	3,537,508		74.24%


(1)	Information based on 2002 data.


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.



	Number of		Expiring		% Total			Cumulative		Cumulative
Year of Expiration††	Leases Expiring		SF		SF			Total SF		% Total SF

2004		1		1,400		0.4	%		1,400		0.4	%




2006		3		11,000		3.2	%		12,400		3.6	%




2007		2		44,000		12.7	%		56,400		16.2	%




2008		2		10,009		2.9	%		66,409		19.1	%




2011		3		40,550		11.7	%		106,959		30.8	%




2012		1		43,500		12.5	%		150,459		43.3	%




2013		2		50,899		14.6	%		201,358		57.9	%




2015		1		23,885		6.9	%		225,243		64.8	%




2016		1		55,269		15.9	%		280,512		80.7	%




2017		1		45,524		13.1	%		326,036		93.8	%




Vacant				21,500		6.2	%		347,536		100.0	%

Total		17		347,536		100.0	%


††	Information obtained from Underwritten Rent Roll.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants

•

The Mortgaged Property is currently 97.2% leased by a mix of national, regional and local retail tenants, including seven anchor tenants that comprise 79.4% of the total net rentable square feet and 74.2% of total gross potential rent. The remaining tenants range in size from 1,400 square feet to 14,000 square feet and include Old Navy, Aaron Brothers, Applebees, Countrywide Home Loan, Boston Market and Starbucks. The Firecreek Crossing Mortgaged Property is also shadow anchored by Wal-Mart, Sam’s Club and Babies ‘R Us, which are not part of the loan collateral. The anchor tenants are:


	•	Safeway, Inc. (Rated “BBB” by S&P and “BBB” by Fitch), one of the largest food and drug retailers in North America, occupies 55,269 square feet (15.9%) on a 20-year lease expiring in May 2016 with six five-year options. Safeway, Inc., headquartered in Pleasanton, California, operates 1,700 stores in the Western, Southwestern, Rocky Mountain and Mid-Atlantic regions of the United States and in Western Canada. In support of its stores, Safeway has an extensive network of distribution, manufacturing and food processing facilities. As of December 28, 2002, Safeway had total revenue of $32.4 billion and income, before taxes, of $1.3 billion. Total assets were $15.5 billion and total equity was $4.3 billion as of September 6, 2003.

	•	TJX Co. (Rated “A” by S&P), a retailer which offers an array of giftware, accent furniture, lamps, rugs, accessories and seasonal merchandise for the home, occupies 45,899 square feet (13.2%) on a 10-year lease expiring in May 2013 with three five-year options. Headquartered in Framingham, Massachusetts, TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the United States and worldwide. Its stores include T.J. Maxx, Marshalls, A.J. Wright and HomeGoods. As of January 2003, there were 142 HomeGoods stores in the United States. For its fiscal year ended January 25, 2003, TJX Companies, Inc. revenue was $12 billion, with net income of $578 million. As of October 25, 2003, TJX Companies, Inc. had total assets of $4.4 billion and stockholders’ equity of $1.4 billion.

	•	Circuit City Stores, Inc. (Not Rated), a national retailer of brand name consumer electronics, personal computers and entertainment software, occupies 45,524 square feet (13.1%) on a 20-year lease expiring in January 2017. As of April 2003, the Circuit City Stores, Inc. retail operations were conducted in 626 locations. For the fiscal year ended February 28, 2003, revenues were $10 billion, with net income of $106.1 million. As of November 30, 2003, Circuit City Stores, Inc. had total assets of $4.4 billion and stockholders’ equity of $2.2 billion.

	•	Gart Sports Company (Not Rated), a sporting goods retailer, occupies 43,500 square feet (12.5%) on a 15-year lease expiring November 2012 with three five-year options. Gart Sports Company is an operating division of The Sports Authority, Inc. (NYSE: “TSA”), a full-line sporting goods chain created on August 4, 2003 through the merger of The Sports Authority, Inc. and Gart Sports Company, the largest and second largest United States sporting goods retailers, respectively. The combined company is headquartered in Englewood, Colorado and operates approximately 385 stores in 45 states. Subsidiaries include Gart Sports, Sports Authority, Oshman’s and Sportmart. As of the report dated February 1, 2003, Gart Sports Company reported revenue of $1.1 billion, net income of $23 million, total assets of $540 million and stockholders’ equity of $198.6 million.

	•	Office Depot, Inc. (Rated “BBB-” by S&P), one of the world’s largest sellers of office products, occupies 31,850 square feet (9.2%) on a 15-year lease expiring September 2011 with four five-year options. Founded in 1986, Office Depot, Inc. is an S&P 500 company that generates revenues in excess of $11 billion annually and has approximately 43,000 employees worldwide. As of September 27, 2003, Office Depot, Inc. had total assets of $5.8 billion and stockholders’ equity of $2.7 billion. Revenue for the 52 weeks ended December 28, 2002 was $11.4 billion and, net income from continuing operations was $310.7 million.

	•	Ross Stores, Inc. (Rated “BBB” by S&P), an off-price retailer offering in-season brand and designer accessories and footwear, occupies 30,000 square feet (8.6%) on a lease expiring in January 2007 with four five-year options. As of February 1, 2003, Ross Stores, Inc. operated 507 stores, located in community and neighborhood strip shopping centers in urban and suburban areas in 23 states. As of February 1, 2003, Ross Stores, Inc. had reported revenue of $3.5 billion and a net income of $201.2 million. As of November 1, 2003, the company had total assets of $1.6 billion and stockholders’ equity of $691.0 million.

	•	Michaels Stores, Inc. (Rated “BB+” by S&P), one of the largest national specialty retailers providing materials, ideas and education for creative activities in home decor, art and craft projects, occupies 23,885 square feet (6.9%) on a lease expiring February 2015 with three five-year options. It will be expanding into a 23,885 square foot freestanding building in August 2004 and will extend its current lease term by 10 years through February 2015. Michaels Stores, Inc. operates 770 Michaels retail stores in 48 states, as well as in Canada. In the latest fiscal year ended February 1, 2003, the Company reported revenue of $2.9 billion and net income of $140.3 million. As of November 1, 2003, Michaels Stores, Inc. had total assets of $1.8 billion and stockholders’ equity of $1.1 billion.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Firecreek Crossing Mortgage Loan is secured by a first mortgage on a 347,651 square foot grocery-anchored retail center constructed in 1996 and located in Reno, Nevada.

The Borrower:


•	The borrower, Pacific Firecreek Holdings, LLC (the “Firecreek Crossing Borrower”), a single-purpose, bankruptcy-remote entity for which borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	Hillside 380, a California general partnership, owns 100% of the borrower as its sole member. Hillside 380 is 30% owned by Hillside 104, a California limited partnership, and 70% owned by Hillside 276, a California limited partnership.

•	Hillside 104 and Hillside 276 are each owned 51% (1% general partner and 50% limited partner interests) by American Assets, Inc., a California corporation, and 49% by The Ernest Rady Trust, as limited partner.

•	The sponsor of the Firecreek Crossing Borrower is American Assets, Inc., a private company founded in 1967 that acts as the parent company for a diverse group of businesses operating primarily in real estate, banking, insurance and investment management industries. Throughout its 36-year history, American Assets, Inc. has been both a developer and acquirer of commercial real estate assets with current holdings that include 5 apartment communities, 8 office properties and 11 shopping centers.

The Property:


•	The collateral for the Mortgage Loan consists of the fee simple interest in a grocery-anchored community shopping center totaling 347,651 net rentable square feet. The Firecreek Crossing Mortgaged Property was built in 1996 and is situated on a 34.3-acre site at the corner of Kietzke Lane and Redfield Parkway, in Reno, Nevada.

•	The Firecreek Crossing Borrower, at its sole cost and expense, is required to keep the Firecreek Crossing Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Firecreek Crossing Borrower is also required to maintain a comprehensive all risk insurance policy for terrorist acts.

Property Management:


•	American Assets, Inc., an affiliate of the Borrower, manages the property.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665406.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

VILLAGE AT REDONDO BEACH

G8665499.eps


G8665450.eps		g8665449.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

VILLAGE AT REDONDO BEACH



Loan Information





Original Principal Balance:		$43,000,000





First Payment Date:		February 1, 2004





Term/Amortization:		120/360 months





Maturity Date:		January 1, 2014





Expected Maturity Balance:		$35,895,411





Borrowing Entity:		Village at Redondo, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 118 payments Open: 2 payments





Up-Front Reserves:





	Tax/Insurance Reserve:	Yes





Ongoing Monthly Reserves:





	Tax/Insurance Reserve:	Yes





	Replacement Reserve:	$6,920





Lockbox:		No



Financial Information





Cut-Off Date Balance:		$42,904,083




Cut-off Date LTV:		65.0%




Maturity Date LTV:		54.4%




*Underwritten DSCR:**		1.57x




Mortgage Rate:		5.410%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Multifamily




Property Sub-Type:		Garden Style




Location:		Redondo Beach, CA




Year Built/Renovated:		1972/NA




Units:		332




Cut-off Balance per Unit:		$129,229




Occupancy as of 12/3/03:		96.4%




Ownership Interest:		Fee




Property Management:		The William Lyon Property Management Company




U/W Net Cash Flow:		$4,567,695




Appraised Value:		$66,000,000

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(9/30/03)		(12/31/02)

Effective Gross Income	$	6,419,942	$	6,243,811	$	6,240,068




Total Expenses	$	1,769,247	$	1,638,089	$	1,576,268




Net Operating Income (NOI)	$	4,650,695	$	4,605,721	$	4,663,800




Cash Flow (CF)	$	4,567,695	$	4,468,916	$	4,473,705




DSCR on NOI		1.60x		1.59x		1.61x




DSCR on CF		1.57x		1.54x		1.54x


	Studio		1 Bedroom		2 Bedroom

Number of Units		36		238		58




Average Rent	$	1,196	$	1,565	$	2,343




Average Unit Size (SF)		460		674		1,063

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Village at Redondo Beach Mortgage Loan is secured by a first mortgage on a 332-unit apartment community built in 1972 and located in Redondo Beach, Los Angeles County, California.

The Borrower:


•	The borrower, Village at Redondo, LLC (the “Village at Redondo Beach Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity with two independent directors for which the Village at Redondo Beach Borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	Village at Redondo Partners, a California general partnership, owns 100% of the Village at Redondo Beach Borrower as its sole member. Village at Redondo Partners is 50% owned by L/M No. 18 (Redondo Beach Apts.), a California limited partnership, and 50% owned by Kremer Investment Properties, LLC, a California limited liability company.

•	William Lyon is the Borrower Principal with 45 years of real estate experience. William Lyon Homes, Inc. (NYSE: “WLS”) and subsidiaries are primarily engaged in designing, constructing and selling single-family detached and attached homes in California, Arizona and Nevada. Since the founding of its predecessor in 1956, William Lyon Homes, Inc. has sold over 56,000 homes. The Company conducts its homebuilding operations through five geographic divisions (Southern California, San Diego, Northern California, Arizona and Nevada) including both wholly owned projects and projects being developed in unconsolidated joint ventures. In 2002, William Lyon Homes, Inc. and its unconsolidated joint ventures had combined revenues from home sales of $956,500,000 and delivered 2,522 homes.

The Property:


•	The collateral for the Village at Redondo Beach Mortgage Loan consists of the fee interest in a 332 -unit, garden-style apartment complex consisting of nine three-story apartment buildings containing 238,500 net rentable square feet and an additional building housing a clubhouse/ leasing office. Built in 1972 and continuously updated and maintained, the Village at Redondo Beach Mortgaged Property is situated on 7 acres overlooking the Pacific Ocean in Redondo Beach, California. The Village at Redondo Beach Mortgaged Property has 429 parking spaces (1.3 spaces/unit) including open, garage, and covered spaces beneath six of the apartment buildings. Project amenities include an ocean view with access to the Redondo Beach Pier (with its boat slips, restaurants and retail shops), a pool, spa, entertainment deck, clubhouse/ lounge, business center, fitness center and laundry facilities.

•	The Village at Redondo Beach Borrower, at its sole cost and expense, is required to keep the Village at Redondo Beach Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy without an exclusion for acts of terrorism.

Property Management:


•	The William Lyon Property Management Company, an affiliate of the Village at Redondo Beach Borrower, manages the property. Headquartered in Newport Beach, California, the Company has 15 years of multifamily property management experience and currently manages 30 projects totaling approximately 9,100 units in northern and southern California, Colorado and Florida.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665407.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

HILLSBOROUGH PROMENADE


G8665472.eps		g8665486.eps


G8665487.eps		g866548a1.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

HILLSBOROUGH PROMENADE



Loan Information





Original Principal Balance:		$41,000,000





First Payment Date:		November 1, 2003





Term/Amortization:		120/360 months





Maturity Date:		October 1, 2013





Expected Maturity Balance:		$34,736,228





Borrowing Entity:		Hillsboro Partners, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 117 payments Open: 3 payments





Up-Front Reserves:





Tax Reserve:		Yes





Replacement Reserve:		$1,911





Repair Reserve:		$2,689,645





TI/LC Reserve:		$377,658





Other Reserve:		$1,370,000





Ongoing Reserves:





Tax Reserve:		Yes





Replacement Reserve:		$1,911





Lockbox:		No



Financial Information





Cut-off Date Balance:		$40,803,175




Cut-off Date LTV:		78.3%




Maturity Date LTV:		66.7%




*Underwritten DSCR:**		1.31x




Mortgage Rate:		5.890%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Retail




Property Sub-Type:		Anchored




Location:		Hillsborough, NJ




Year Built/Renovated:		2002/NA




Net Rentable Square Feet:		328,237




Cut-off Balance per SF:		$124




Occupancy as of 12/1/03:		100.0%




Ownership Interest:		Fee and Leasehold




Property Management:		KRC Property Management I, Inc.




U/W Net Cash Flow:		$3,819,223




Appraised Value:		$52,100,000

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent
	Underwritten		(9/30/03)

Effective Gross Income	$	5,610,854	$	3,168,160




Total Expenses	$	1,679,249	$	1,019,400




Net Operating Income (NOI)	$	3,931,605	$	2,148,760




Cash Flow (CF)	$	3,819,223	$	2,148,760




DSCR on NOI		1.35x		0.74x




DSCR on CF		1.31x		0.74x


	Ratings		Tenant		% Total					Potential		% Potential			Lease
Top Tenants†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent			Expiration

Lowes		A/A		160,548		49.00	%	$	5.76	$	925,000		21.65	%		1/31/2023




Pathmark		BB-/Not Rated		55,200		16.85		$	19.00		1,048,800		24.55			3/31/2023




TJ Maxx		A/Not Rated		30,000		9.16		$	15.00		450,000		10.53			3/31/2013




Bassett Furniture		Not Rated/Not Rated		17,100		5.22		$	21.50		367,650		8.61			6/30/2013

Totals				262,848		80.22	%			$	2,791,450		65.34	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.



	Number of		Expiring		% Total			Cumulative		Cumulative
Year of Expiration††	Leases Expiring		SF		SF			Total SF		% Total SF

2007		1		2,000		0.6	%		2,000		0.6	%




2008		2		7,765		2.4			9,765		3.0	%




2012		2		6,300		1.9			16,065		4.9	%




2013		9		71,748		21.9			87,813		26.8	%




2014		1		6,000		1.8			93,813		28.6	%




2018		1		3,000		0.9			96,813		29.5	%




2022		1		6,100		1.9			102,913		31.4	%




2023		4		224,748		68.6			327,661		100.0	%

Total		21		327,661		100.0	%


††	Information obtained from Underwritten Rent Roll.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants

•

The Hillsborough Promenade Mortgaged Property is 100.0% leased by a mix of national, regional and local retail tenants, including three anchor tenants that comprise 74.9% of the total net rentable square feet and 56.7% of total gross potential rent. The remaining tenants include Bassett Furniture, Hollywood Video, T-Mobile, Payless ShoeSource and Dunkin Donuts. The Hillsborough Promenade Mortgaged Property is also shadow anchored on the northern end of the shopping center by an 88,470 square foot Kohl’s, which is not part of the loan collateral. The four largest tenants are:


	•	Lowe’s Companies, Inc. (NYSE: “LOW”) (Rated “A” by S&P and “A” by Fitch), a major retailer of home improvement products, occupies 160,548 square feet (48.9%) on a 20-year ground lease expiring in January 2023 with eight five-year options. Headquartered in Mooresville, North Carolina, Lowe’s Companies, Inc. operated 854 stores in 44 states as of January 31, 2003. For the fiscal year ended January 31, 2003, Lowe’s Companies, Inc. reported revenues of $26.5 billion and net income of $1.5 billion. As of October 31, 2003, the company reported total assets of $18.7 billion and stockholders’ equity of $9.9 billion.

	•	Pathmark Stores, Inc. (NASDAQ: “PTMK”) (Rated “BB-” by S&P), a large supermarket chain in the Northeast, occupies 55,200 square feet (16.8%) on a 20-year lease expiring in March 2023 with six five-year options. Headquartered in Carteret, New Jersey, Pathmark Stores, Inc. operated 144 stores, including 66 in New Jersey, as of February 1, 2003. For the fiscal year ended February 1, 2003, Pathmark Stores, Inc. reported revenues of $3.938 billion and net income of $13.3 million. As of November 1, 2003, the company reported total assets of $1.5 billion and stockholders’ equity of $366.7 million.

	•	TJX Co. (NYSE: “TJX”) (Rated “A” by S&P), a retailer offering an array of giftware, accent furniture, lamps, rugs, accessories and seasonal merchandise for the home, occupies 30,000 square feet (9.1%) on a 10-year lease expiring in March 2013 with three five-year options. Headquartered in Framingham, Massachusetts, TJX Companies, Inc. is one of the leading off-price retailers of apparel and home fashions in the United States and worldwide. Its stores include T.J. Maxx, Marshalls, A.J. Wright and HomeGoods. As of January 2003, there were 142 HomeGoods stores in the United States. For its fiscal year ended January 25, 2003, TJX Companies, Inc.’s revenue was $12 billion, with net income of $578 million. As of October 25, 2003, TJX Companies, Inc. had total assets of $4.4 billion and stockholders’ equity of $1.4 billion.

	•	Bassett Furniture Industries, Inc.(NASDAQ: “BSET”) (Not Rated), a manufacturer, retailer and importer of branded home furnishings, occupies 17,100 square feet (5.2%) on a 10-year lease expiring in June 2013. Founded in 1931 and headquartered in Bassett, Virginia, Bassett Furniture Industries, Inc.’s full range of furniture products and accessories are sold through an exclusive network of 79 independently owned and six company-owned retail stores, known as Bassett Furniture Direct, and over 2,000 furniture and department stores located throughout the United States. For the fiscal year ended November 29, 2003, revenues were $316.9 million, with net income from continuing operations of $4.4 million. As of August 30, 2003, Bassett Furniture Industries, Inc. had total assets of $279.7 million and stockholders’ equity of $223.7 million.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Hillsborough Promenade Mortgage Loan is secured by a first mortgage on a 328,237 square foot grocery-anchored retail center constructed in 2002 and located in Hillsborough Township, New Jersey.

The Borrower:


•	The borrower, Hillsboro Partners, LLC (The “Hillsborough Promenade Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity with at least one independent director for which borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	Hillsboro Realty Holdings, LLC, a Delaware limited liability company, owns 100% of theHillsborough Promenade Borrower as its sole member and manager. Hillsboro Realty Holdings, LLC is 99.9% owned by LPD Grant Street Company, LLC, a New York limited liability company, and 0.1% owned by its managing member, Hillsboro-GP Corp., a Delaware corporation.

•	The three borrower principals for the Hillsborough Promenade Mortgage Loan are Sheldon Lowe, Joseph Parisi and Joel Pashcow, who jointly own 100% of Hillsboro-GP Corp. Joel Pashcow and Dan Davis are co-managers of LPD Grant Street Company, LLC. In addition, Sheldon Lowe, Joseph Parisi, Joel Pashcow, Dan Davis and Allan Rose own 100% of the member interests of LPD Grant Street Company, LLC. Sheldon Lowe’s 30-year business career has been focused in real estate with extensive experience in owning, managing and building income-producing properties. Joseph Parisi has been involved in the construction industry for over 45 years and is actively involved in the management of properties built under his direction as well as other properties included in his portfolio. Joel Pashcow is Chairman and President of Atlantic Realty Trust. Joel Pashcow was formerly Chairman of the Board of Directors of RPS Realty Trust from 1988 to 1996 and has extensive experience in real estate acquisition, financing and syndication.

The Property:


•	The collateral for the Hillsborough Promenade Mortgage Loan consists of the fee interest (subject to a 90-year ground lease) in a grocery-anchored community shopping center totaling 328,237 net rentable square feet. The Hillsborough Promenade Mortgaged Property was completed in 2002 and is situated on a 57.8-acre site at the intersection of Route 206 and Falcon Road in Hillsborough Township, Somerset County, New Jersey.

•	The Hillsborough Promenade Borrower, at its sole cost and expense, is required to keep the Hillsborough Promenade Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Hillsborough Promenade Borrower is also required to maintain a comprehensive all risk insurance policy without an exclusion for terrorist acts but it may exclude acts of war, nuclear, chemical and biological acts so long as such exclusions are customary.

Ground Lease:

•

A ground lease between KD Hillsborough 441, Inc. (the ground lessor) and theHillsborough Promenade Borrower expiring on September 18, 2093 encumbers the Hillsborough Promenade Mortgaged Property;provided, however, the mortgagee’s collateral includes a mortgage on the fee interest and all ground lease payments are to be paid only after operating expenses and debt service. KD Hillsborough 441, Inc., the developer and seller of the property, is an affiliate of Kimco Realty Corporation.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Property Management:

•

KRC Property Management I, Inc., a non-affiliated third party management company and wholly owned subsidiary of Kimco Realty Corporation, manages the property. Formed in 1960 and incorporated in 1966, Kimco Realty Corporation is a self-administered real estate investment trust that owns and operates neighborhood and community shopping centers. As of February 7, 2003, Kimco Realty Corporation’s portfolio was comprised of 607 property interests, including 538 neighborhood and community shopping center properties, two regional malls, 41 retail store leases, 22 ground-up development projects and four parcels of undeveloped land totaling approximately 90 million square feet of leasable space located in 41 states, Canada and Mexico.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665408.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MILPITAS SQUARE

G8665494.eps

G8665495.eps

G8665448.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MILPITAS SQUARE



Loan Information





Original Principal Balance:		$40,000,000





First Payment Date:		January 1, 2004





Term/Amortization:		120/300 months





Maturity Date:		December 1, 2013





Expected Maturity Balance:		$30,947,280





Borrowing Entity:		Milpitas Square, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 117 payments Open: 3 payments





Up-Front Reserves:





Tax/Insurance Reserve:		Yes





On Going Monthly Reserves:





Tax/Insurance Reserve:		Yes





Replacement Reserve:		$2,028





Lockbox:		Hard



Financial Information





Cut-off Date Balance:		$39,829,107




Cut-off Date LTV:		69.1%




Maturity Date LTV:		53.7%




*Underwritten DSCR:**		1.25x




Mortgage Rate:		5.870%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Retail




Property Sub-Type:		Anchored




Location:		Milpitas, CA




Year Built/Renovated:		1996/NA




Net Rentable Square Feet:		162,202




Cut-off Balance per SF:		$246




Occupancy as of 11/30/03:		100.0%




Ownership Interest:		Fee




Property Management:		Topline Properties, LLC




U/W Net Cash Flow:		$3,832,304




Appraised Value:		$57,600,000


(1) Information based on 2003 data.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(9/30/03)		(12/31/02)

Effective Gross Income	$	5,602,635	$	6,278,656	$	6,125,378




Total Expenses	$	1,532,337	$	1,248,061	$	1,397,471




Net Operating Income (NOI)	$	4,070,298	$	5,030,595	$	4,727,907




Cash Flow (CF)	$	3,832,304	$	5,030,595	$	4,727,907




DSCR on NOI		1.33x		1.65x		1.55x




DSCR on CF		1.25x		1.65x		1.55x


	Ratings		Tenant		% Total					Potential		% Potential			Lease
Top Tenants†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent			Expiration

99 Ranch(1)		Not Rated/Not Rated		38,814		23.93	%	$	10.35	$	401,725		8.13	%		8/31/2011




Mayflower Seafood Restaurant		Not Rated/Not Rated		10,017		6.18	%	$	27.39	$	274,399		5.55	%		7/31/2006

Totals				48,831		30.11	%			$	676,124		13.68	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.



	Number of		Expiring		% Total			Cumulative		Cumulative
Year of Expiration††	Leases Expiring		SF		SF			Total SF		% Total SF

2004		3		7,592		4.7	%		7,592		4.7	%




2005		2		4,180		2.6	%		11,772		7.3	%




2006		27		65,038		40.1	%		76,810		47.4	%




2007		9		14,535		9.0	%		91,345		56.3	%




2008		10		18,167		11.2	%		109,512		67.5	%




2009		3		2,713		1.7	%		112,225		69.2	%




2010		3		3,773		2.3	%		115,998		71.5	%




2011		2		43,954		27.1	%		159,952		98.6	%




2012		1		2,250		1.4	%		162,202		100.0	%

Total		60		162,202		100.0	%


††	Information obtained from Underwritten Rent Roll.

Summary of Significant Tenants

•

The Milpitas Square Mortgaged Property is 100% leased by a mix of 60 retail and restaurant tenants, including the grocer anchor tenant, 99 Ranch Market, which comprises 23.9% of the total net rentable square feet and 8.1% of total gross potential rent. Products and services offered at the center include jewelry, books, cosmetics, dry cleaning, house wares, specialty bakeries and 19 ethnically diverse restaurants.


	•	99 Ranch Market (Not Rated), a large Asian specialty chain grocer, occupies 38,814 square feet (23.9%) on a 15-year lease originally expiring in August 2011 with six, five-year options. At the closing of the loan, 99 Ranch Market exercised the first of its renewal options, which extended the lease expiration to August 2016. 99 Ranch Market is owned by Tawa Supermarkets, Inc., based in Buena Park, California. Tawa began as an individual market in Westminster, California, and has developed into an owner of 23 full service stores staffed with over 1,300 employees. Currently, Tawa has developed over 10 shopping plazas in California. In addition, through its management consulting division, Tawa Supermarkets has been able to work with other developers and out-of-state investors to develop 99 Ranch Markets throughout the country and world, including locations in Atlanta, Las Vegas, Honolulu, Phoenix and Indonesia.

	•	Mayflower Seafood Restaurant (Not Rated) occupies 10,017 square feet (6.2%) on a 10-year lease expiring in July 2006.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Milpitas Square Mortgage Loan is secured by a first mortgage on a 162,202 square foot grocery-anchored retail center completed in 1996 and located in Milpitas, California.

The Borrower:


•	The borrower, Milpitas Square, LLC (the “Milpitas Square Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity with at least one independent director for which borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	The sole member of the Milpitas Square Borrower, Milpitas Square 880 at 237, L.P., owns 100% of the Milpitas Square Borrower. The nonmember manager of the sole member of the Milpitas Square Borrower (with no economic interest) is Topline Properties, LLC, a California limited liability company, and the property manager. The members of Milpitas Square 880 at 237, L.P. include: Union Success, L.P. (37%); Westwood Company — 237, LLC (35%); Ho-Yuan Chen (20%); Eunice Chan (5%); and the Wang Family Living Trust (Daniel Wang and Brenda Su Wang, trustees) (3%).

•	The borrower principals are Union Success, L.P. (Philip Su, General Partner), Westwood Company — 237, LLC (Anthony Morici, managing member) and Ho-Yuan Chen. As general partner of Union Land Development, Philip Su has developed and managed commercial properties since 1986, including 384 single-family units, 167 multifamily units, 382,000 square feet of retail shopping center space and a local San Jose hotel. Philip Su also owns Topline Properties, LLC, the property manager. Anthony Morici has been involved in the real estate industry since 1968, when he became the general partner of a mixed-use retail and apartment development. Since that time, Anthony Morici has actively developed several residential subdivisions and has participated as the General Partner in the development of six office complexes and four retail centers, including this property. Roger Chen established Tawa Supermarkets, Inc. in 1984. Tawa Supermarkets, Inc. is a supermarket chain and shopping center developer with headquarters in Buena Park, California and has developed into 23 full service 99 Ranch Markets throughout California, including the anchor, and franchises several more locations in the United States and Indonesia.

The Property:


•	The collateral for the Milpitas Square Mortgage Loan consists of the fee simple interest in a grocery-anchored community shopping center totaling 162,202 net rentable square feet. The Milpitas Square Mortgage Property was completed in 1996 and is situated on a 16.8-acre site located less than a half mile from the Highway 237/Interstate 880 interchange, one of the busiest freeway interchanges in Santa Clara County, California and used by as many as 250,000 vehicles per day.

•	The Milpitas Square Borrower, at its sole cost and expense, is required to keep the Milpitas Square Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Milpitas Square Borrower is also required to maintain a comprehensive all risk insurance policy without an exclusion for terrorist acts.

Property Management:


•	Topline Properties, LLC, the property manager and nonmember manager of the sole member of the Milpitas Square Borrower, provides property management and leasing services for Milpitas Square. Philip Su created Topline Properties in 1996.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665409.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MOUNT VERNON PLACE APARTMENTS


G8665498.eps		g8665497.eps

G8665496.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MOUNT VERNON PLACE APARTMENTS



Loan Information





Original Principal Balance:		$36,743,802





First Payment Date:		December 1, 2003





Term/Amortization:		132/360 months





Interest Only Period:		24 months





Maturity Date:		November 1, 2014





Expected Maturity Balance:		$31,852,470





Borrowing Entity:		Mt. Vernon Place Apartments, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 129 payments Open: 3 payments





Up-Front Reserves:





	Tax/Insurance Reserve:	Yes





	Replacement Reserve:	$1,455,000





Ongoing Monthly Reserves:





	Tax/Insurance Reserve:	Yes





	Replacement Reserve:	$8,584(1)





Lockbox:		No


(1)	Escrows to be established beginning September 1, 2006.



Financial Information





Cut-off Date Balance:		$36,743,802




Cut-off Date LTV:		76.5%




Maturity Date LTV:		66.3%




*Underwritten DSCR:**		1.20x




Mortgage Rate:		5.900%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Multifamily




Property Sub-Type:		Garden Style




Location:		Atlanta, GA




Year Built/Renovated:		1997/NA




Units:		412




Cut-off Balance per Unit:		$89,184




Occupancy as of 11/25/03:		89.8%




Ownership Interest:		Fee




Property Management:		Lane Management Corporation




U/W Net Cash Flow:		$3,144,833




Appraised Value:		$48,015,000

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(6/30/03)		(12/31/02)

Effective Gross Income	$	4,985,365	$	5,549,732	$	5,681,587




Total Expenses	$	1,737,532	$	2,609,302	$	2,723,813




Net Operating Income (NOI)	$	3,247,833	$	2,940,430	$	2,957,774




Cash Flow (CF)	$	3,144,833	$	2,824,670	$	2,818,826




DSCR on NOI		1.24x		1.12x		1.13x




DSCR on CF		1.20x		1.08x		1.08x


	1 Bedroom		2 Bedroom

Number of Units		222		190




Average Rent	$	915	$	1,311




Average Unit Size (SF)		914		1,327

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Mount Vernon Place Apartments Mortgage Loan is secured by a first mortgage on a 412-unit garden-style apartment community completed in 1997 and located in Atlanta, Georgia.

The Borrower:


•	The borrower, Mt. Vernon Place Apartments, LLC (the “Mount Vernon Place Apartments Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity with at least one independent director on the board of its managing member for which borrower’s legal counsel delivered a non-consolidation opinion at loan closing.

•	Mt. Vernon Place Holdings, L.P., a Georgia limited partnership, owns 100% of the borrower as its sole member. Mt. Vernon Place Holdings, L.P. is 60% owned by WLD Private Investor Entity, a Family Trust, and 40% owned by Mt. Vernon Place GP, LLC, a Georgia limited liability company.

•	The borrower sponsor for the Mount Vernon Place Apartments Mortgage Loan is George H. Lane III, founder of Lane Company. Mt. Vernon Place GP, LLC is a Lane-controlled entity. Lane Company was started in 1974 and its subsidiaries include: Lane Management Corporation, Lane Investment and Development Corporation, Lane Realty Construction Corporation, Lane Asset Management Corporation, Condo Lane, Inc. and Lane Affordable Housing Corporation. Lane Company has developed more than 11,000 apartment units and condominium homes at a cost of more than $1 billion. It has built more than 70 properties including apartments, condos, hotels and senior living communities totaling over $600 million. It has sold more than 4,000 condominiums for a total of approximately $250 million. WLD Private Investor Entity, also known as WLD Trust, has been a Lane Company equity partner since the mid-1990s. WLD Private Investor Entity is a private family trust established for the benefit of William Horvitz and his descendents, which include Linda Roth, David Horvitz, James Berick, George Grabner and Francis Kane. The WLD Private Investor Entity is managed by WLD Enterprises; a professionally managed investment company that provides investment and processing related functions to WLD Private Investor Entity.

The Property:


•	The collateral for the Mount Vernon Place Mortgage Loan includes the fee interest in a 412-unit, garden-style apartment complex consisting of 21 three- and four-story apartment buildings and 455,016 net rentable square feet and an additional one-story building housing a clubhouse/ leasing office. Built in 1997, the Mount Vernon Place Apartments Mortgaged Property is situated on 24.1 acres in the Atlanta suburb of Dunwoody. The Mount Vernon Place Apartments Mortgaged Property has 808 parking spaces (2.0 spaces/unit). Project amenities for this gated community include a clubhouse with business center, library/ computer room and a fitness center, two pools, two lighted tennis courts, playground and a laundry facility.

•	The Mount Vernon Place Apartments Borrower, at its sole cost and expense, is required to keep the Mount Vernon Place Apartments Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy.

Property Management:

•

Lane Management Corporation, an affiliate of the Mount Vernon Place Apartments Borrower, manages the property. Headquartered in Atlanta, Georgia, the Lane Management Corporation has over 30 years of multifamily property management experience and currently manages approximately 30,000 units mainly in the Southeast (Georgia, Alabama, North Carolina, South Carolina, Florida, Virginia and Tennessee) as well as in Texas, Connecticut and Mississippi. Lane Management Corporation manages approximately 15,000 units located in the Atlanta market. The company employs approximately 1,200 people nationally, with 100 employees located in the Atlanta corporate office.

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665410.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MERCANTILE EAST SHOPPING CENTER

G8665491.eps

G8665493.eps

G8665492.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

MERCANTILE EAST SHOPPING CENTER



Loan Information





Original Principal Balance:		$34,000,000





First Payment Date:		November 1, 2003





Term/Amortization:		180/300 months





Interest Only Period:		60 months





Maturity Date:		October 1, 2018





Expected Maturity Balance:		$26,359,223





Borrowing Entity:		Mercantile East Ladera, LLC





Interest Calculation:		Actual/360





Call Protection:		Lockout: 59 Payments GRTR 1% PPMT or Yield Maintenance: 118 Payments Open: 3 Payments





Upfront Reserves:





TI/LC Reserve:		$15,784





Tax/Insurance Reserve:		Yes





Ongoing Monthly Reserves:





Tax/Insurance Reserve:		Yes





Replacement Reserve:		$1,524





Lockbox:		No



Financial Information





Cut-off Date Balance:		$34,000,000




Cut-off Date LTV:		65.4%




Maturity Date LTV:		50.7%




*Underwritten DSCR:**		1.42x




Mortgage Rate:		5.940%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Retail




Property Sub-Type:		Anchored




Location:		Ladera Ranch, CA




Year Built/Renovated:		2003/NA




Net Rentable Square Feet:		261,260




Cut-off Balance per SF:		$130




Occupancy as of 10/1/03:		80.4%




Ownership Interest:		Fee




Property Management:		Westar Management, Inc.




U/W Net Cash Flow:		$3,702,436




Appraised Value:		$52,000,000

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent
	Underwritten		(10/31/2003)

Effective Gross Income	$	5,362,467	$	2,477,087




Total Expenses	$	1,495,082	$	309,032




Net Operating Income (NOI)	$	3,867,385	$	2,168,055




Cash Flow (CF)	$	3,702,436	$	2,168,055




DSCR on NOI		1.48x		0.83x




DSCR on CF		1.42x		0.83x


	Ratings		Tenant		% Total					Potential		% Potential			Lease
Top Tenants†	S&P/Fitch		Total SF		SF			Rent PSF		Rent		Rent			Expiration

Kohl’s		A-/A		93,990		35.98	%	$	5.69	$	535,000		12.00	%		3/31/2023




Chicks		Not Rated/Not Rated		45,000		17.22	%	$	16.50	$	742,500		16.65	%		5/31/2018




Homegoods		A/Not Rated		24,000		9.19	%	$	14.50	$	348,000		7.81	%		8/31/2013




Staples		BBB-/BBB		15,000		5.74	%	$	17.85	$	267,750		6.01	%		8/10/2013

Totals				177,990		68.13	%			$	1,893,250		42.47	%


†	Information obtained from Underwritten Rent Roll except for Ratings (S&P/Fitch) 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 expense and reimbursement.



	Number of		Expiring		% Total			Cumulative		Cumulative
Year of Expiration††	Leases Expiring		SF		SF			Total SF		% Total SF

2008		6		25,667		9.8	%		25,667		9.8	%




2009		1		1,440		0.6	%		27,107		10.4	%




2011		1		5,400		2.1	%		32,507		12.4	%




2013		9		53,385		20.4	%		85,892		32.9	%




2018		1		45,000		17.2	%		130,892		50.1	%




2023		4		104,305		39.9	%		235,197		90.0	%




Vacant				26,063		10.0	%		261,260		100.0	%

Total		22		261,260		100.0	%


††	Information obtained from Underwritten Rent Roll.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Summary of Significant Tenants

•

The subject property is 80.4% leased to a mix of national, regional and local retail tenants, including four anchor tenants that comprise 68.1% of the total net rentable square feet and 42.4% of total gross potential rent. The remaining inline and pad site tenants include Bank of America, McDonalds, Arco, KFC, Cingular Wireless, Payless ShoeSource, Subway, Pizza Hut and Baskin-Robbins. The four anchor tenants are:


	•	Kohl’s (Rated “A-” by S&P and “A” by Fitch), a family oriented specialty department store chain that features national brand merchandise, occupies 93,990 square feet (36.0%) on a 20-year ground lease expiring in March 2023 with three 10-year options. Headquartered in Menomonee Falls, Wisconsin, Kohl’s operates approximately 457 stores located in 33 states. The stores sell apparel, shoes, accessories and home products. For the fiscal year ended February 1, 2003, Kohl’s reported revenues of $9 billion and net income of $643 million. As of November 1, 2003, the company reported total assets of $7.1 billion and stockholders’ equity of $3.9 billion.

	•	Chick’s Sporting Goods (Not Rated), a privately held sporting goods chain, occupies 45,000 square feet (17.2%) on a 15-year lease expiring in May 2018, with two five-year options. Established in 1949 and headquartered in Covina, California, Chick’s Sporting Goods sells apparel and equipment for fitness, tennis, golf, water and snow sports and team activities. Chick’s Sporting Goods currently operates 11 stores located in southern California.

	•	HomeGoods (a subsidiary of the TJX Companies, Inc. Rated “A” by S&P), a retailer which offers a broad array of giftware, accent furniture, lamps, rugs, accessories and seasonal merchandise for the home, occupies 24,000 square feet (9.2%) on a 10-year lease expiring in August 2013, with three five-year options. Headquartered in Framingham, Massachusetts, TJX Companies, Inc. is one of the largest off-price retailers of apparel and home fashions in the United States and worldwide. Its stores include T.J. Maxx, Marshalls, A.J. Wright and HomeGoods. As of January 2003, there were 142 HomeGoods stores in the United States. For its fiscal year ended January 25, 2003, TJX Companies, Inc. revenue was $12.0 billion with net income of $578 million. As of October 25, 2003, TJX Companies, Inc. had total assets of $4.4 billion and stockholders’ equity of $1.4 billion.

	•	Staples Inc. (Rated “BBB-” by S&P and “BBB” by Fitch), an office supplies retailer in the United States and abroad, occupies 15,000 square feet (5.7%) on a 10-year lease expiring in August 2013, with three five-year options. Established in 1986 and headquartered in Framingham, Massachusetts, Staples operates over 1,400 stores located in the United States, Canada, the United Kingdom, France, Italy, Spain, Belgium, Germany, the Netherlands and Portugal. For the fiscal year ended February 1, 2003, Staples Inc. reported revenue of $11.6 billion and net income of $446 million. As of November 1, 2003, Staples Inc. reported total assets of $6.3 billion and stockholders’ equity of $3.4 billion.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Mercantile East Shopping Center Mortgage Loan is secured by a first mortgage on a 261,260 square foot anchored retail center completed in 2003 and located in Ladera Ranch, Orange County, California.

The Borrower:


•	The borrower, Mercantile East Ladera, LLC (the “Mercantile East Shopping Center Borrower”), a Delaware limited liability company, is a single-purpose, bankruptcy-remote entity.

•	Mercantile East, LLC, a Delaware limited liability company, owns 100% of the borrower as its sole member. The managing member of the Borrower (with no economic interest) is Rancho Mission Viejo, LLC. Mercantile East, LLC is 80% owned by DMB Ladera, LLC, a Delaware limited liability company, and 20% owned by Ladera Antonio Associates, a California general partnership. Both members of Mercantile East, LLC are also borrower principals for the Mercantile East Shopping Center Mortgage Loan.

•	DMB Ladera, LLC is owned by Ladera Development Company, LLC and DMB Consolidated Holdings, LLC. DMB Ladera was formed in late 1996 for the purpose of developing, operating, leasing and selling Ladera Ranch. Ladera Development Company is an affiliate of Rancho Mission Viejo, LLC, a land development company with a major Orange County portfolio totaling approximately 23,000 acres. O’Neill family descendants, members of the Moiso family, and other non-family individuals own Rancho Mission Viejo. DMB Consolidated Holdings, LLC is a Scottsdale, Arizona-based land development company and equity partner with Rancho Mission Viejo on certain projects, such as Ladera Ranch. DMB Consolidated Holdings’ owners are Drew Brown, Mark Sklar and Bennett Dorrance. Drew Brown, Mark Sklar and Bennett Dorrance have developed an 8,300-acre community in Scottsdale and are investors in other real estate projects in California, Utah and Arizona.

•	Ladera Antonio Associates is owned by Robert Best (70%), Peter Koetting (25%), and Mark Hulme (5%), all principals of Westar Associates. Robert T. Best and Peter J. Koetting founded Westar in 1980 with Mark D. Hulme joining the firm in 1991, after his nine years in commercial real estate lending at Wells Fargo and Chemical Bank. Headquartered in Costa Mesa, California, Westar Associates is engaged in the acquisition, development and management of neighborhood and community shopping centers. Since its inception, Westar Associates has developed or acquired 37 centers totaling more than 4.7 million square feet and valued in excess of $750 million.

The Property:


•	The collateral for the Mercantile East Shopping Center Mortgage Loan consists of the fee interest in a 13-building and 3 pad community shopping center totaling 261,260 net rentable square feet. The Mercantile East Shopping Center Mortgaged Property was completed in 2003 and is situated on a 23.3-acre site with 1,467 parking spaces at the southeast corner of the intersection of Antonio Parkway and Crown Valley Parkway in Ladera Ranch, Orange County, California.

•	The Mercantile East Shopping Center Borrower, at its sole cost and expense, is required to keep the Mercantile East Shopping Center Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy without an exclusion for acts of terrorism.

Property Management:


•	Westar Management, Inc., an affiliate of the Mercantile East Shopping Center Borrower, manages Mercantile East Shopping Center. Westar Associates specializes in neighborhood and community shopping centers in southern California. Westar Associates has developed and acquired 37 centers totaling more than 4.7 million square feet, valued in excess of $750 million.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:

•

Mezzanine financing shall be permitted starting in third year of the term of the Mercantile East Shopping Center Mortgage Loan provided that the combined loan amount (subject original loan amount plus mezzanine loan amount) does not result in a loan-to-value ratio greater than 64% or a debt service coverage ratio (based on the trailing 12-months) less than 1.45x. The Mercantile East Shopping Center mezzanine loan shall be co-terminus with, or longer than, the subject loan; secured by a pledge of the owners’ direct and indirect equity interests in the Mercantile East Shopping Center Borrower; provided by a qualified mezzanine lender (based on then current secondary market and rating agency criteria), and subject to an intercreditor agreement in form and substance acceptable to the first-mortgage lender and rating agencies. Written confirmation from the rating agencies that the Mercantile East Shopping Center mezzanine financing shall not result in a downgrade, withdrawal or qualification of the ratings assigned to any associated commercial mortgage-backed securities is also required.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665411.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

DUNWOODY PLACE APARTMENTS


G8665479.eps		g8665478.eps


G8665480.eps		g8665481.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Significant Mortgage Loans

DUNWOODY PLACE APARTMENTS



Loan Information





Original Principal Balance:		$32,744,498





First Payment Date:		December 1, 2003





Term/Amortization:		132/360 months





Interest Only Period:		24 months





Maturity Date:		November 1, 2014





Expected Maturity Balance:		$28,296,816





Borrowing Entity:		Dunwoody Place Apartments, L.P.





Interest Calculation:		Actual/360





Call Protection:		Lockout/defeasance: 129 payments Open: 3 payments





Up-Front Reserves:





	Replacement Reserve:	$1,340,000





	Tax/Insurance Reserve:	Yes





Ongoing Monthly Reserves:





	Tax/Insurance Reserve:	Yes





	Replacement Reserve:	$8,085⁽¹⁾





Lockbox:		No



Financial Information





Cut-off Date Balance:		$32,744,498




Cut-off Date LTV:		68.7%




Maturity Date LTV:		59.4%




*Underwritten DSCR:**		1.20x




Mortgage Rate:		5.780%
*DSCR figures based on net cash flow unless otherwise noted.



Property Information





Property Type:		Multifamily




Property Sub-Type:		Garden Style




Location:		Atlanta, GA




Year Built/Renovated:		1999/NA




Units:		396




Cut-off Balance per Unit:		$82,688




Occupancy as of 9/29/03:		90.7%




Ownership Interest:		Fee




Property Management:		Lane Management Corporation




U/W Net Cash Flow:		$2,760,969




Appraised Value:		$47,650,000


⁽¹⁾	Escrow to be established beginning September 1, 2006.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Financial Information


			Annualized
			Most Recent		Full Year
	Underwritten		(6/30/03)		(12/31/02)

Effective Gross Income	$	4,468,124	$	4,845,868	$	5,551,306




Total Expenses	$	1,610,135	$	2,356,016	$	2,546,599




Net Operating Income (NOI)	$	2,857,989	$	2,489,852	$	3,004,707




Cash Flow (CF)	$	2,760,969	$	2,409,462	$	2,926,479




DSCR on NOI		1.24x		1.08x		1.31x




DSCR on CF		1.20x		1.05x		1.27x


	1 Bedroom		2 Bedroom		3 Bedroom

Number of Units		212		158		26




Average Rent	$	904	$	1,155	$	1,506




Average Unit Size (SF)		943		1,266		1,682

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Information

The Loan:


•	The Dunwoody Place Apartments Mortgaged Loan is secured by a first mortgage on a 396-unit garden-style apartment community completed in 1999 and located in Atlanta, Georgia.

The Borrower:


•	The borrower, Dunwoody Place Apartments, L.P. (the “Dunwoody Place Apartments Borrower”) a Georgia limited partnership, is a single-purpose, bankruptcy-remote entity with a general partner having at least one independent director for which borrower’s legal counsel has delivered a non-consolidation opinion at loan closing.

•	Dunwoody Place Holdings, L.P., a Georgia limited partnership, owns 99.5% of the Dunwoody Place Apartments Borrower as its Limited Partner, while Dunwoody Place General Partner, LLC, a Delaware limited liability company, owns 0.5% of the Dunwoody Place Apartments Borrower as its general partner. Dunwoody Place Holdings, L.P. is 90% owned by CMS Private REIT Master Subpartnership, L.P., a Delaware limited partnership, and 10% owned by Dunwoody Place GP, LLC, a Georgia limited liability company. CMS Private REIT-Sub GenPar, LLC, a Delaware limited liability company, is a Special General Partner of Dunwoody Place Holdings, L.P. with no economic interest.

•	The borrower sponsor for the Dunwoody Place Apartments Mortgage Loan is George H. Lane III, founder of Lane Company. Dunwoody Place GP, LLC is a Lane Company-controlled entity. Lane Company was started in 1974 and its subsidiaries include: Lane Management Corporation, Lane Investment and Development Corporation, Lane Realty Construction Corporation, Lane Asset Management Corporation, Condo Lane, Inc. and Lane Affordable Housing Corporation. Lane Management Corporation has developed more than 11,000 apartment units and condominium homes at a cost of more than $1 billion. It has built more than 70 properties including apartments, condos, hotels and senior living communities totaling over $600 million. It has sold more than 4,000 condominiums for a total of approximately $250 million. CMS Private REIT has been a Lane Company equity partner since 1994. CMS Private REIT is a money management firm headquartered in Philadelphia. CMS Private REIT owns over 20,000 multifamily units either directly or through joint ventures with firms like Lane Company.

The Property:


•	The collateral for the loan consists of the fee interest in a 396-unit, garden-style apartment complex consisting of 15 three- and four-story apartment buildings and 443,666 net rentable square feet and an additional one-story building housing a clubhouse/ leasing office. Built in 1999, the Dunwoody Place Apartments Mortgaged Property is situated on 17.9 acres in the Atlanta suburb of Dunwoody. The Dunwoody Place Apartments Mortgaged Property has 697 parking spaces (1.8 spaces/unit), including 30 attached and 17 detached spaces located in a two-level parking garage and 650 open surface/ garage spaces. Project amenities for this gated community include a clubhouse with business center, library/ computer room, a fitness center, pool, two lighted tennis courts and a picnic area. The Dunwoody Place Apartments Mortgaged Property is located with direct access to the North Springs MARTA commuter subway station.

•	The Dunwoody Place Apartments Borrower, at its sole cost and expense, is required to keep the Dunwoody Place Apartments Mortgaged Property insured against loss or damage by fire and other risks addressed by coverage of a comprehensive all risk insurance policy. The Dunwoody Place Apartments loan documents do not specifically require the Dunwoody Place Apartments Borrower to obtain terrorism insurance.

Property Management:

•

Lane Management Corporation, an affiliate of the Dunwoody Place Apartments Borrower, manages the Dunwoody Place Apartments Mortgaged Property. Headquartered in Atlanta, Georgia, the Lane Management Corporation has over 30 years of multifamily property management experience and currently manages approximately 30,000 units mainly in the Southeast (Georgia, Alabama, North Carolina, South Carolina, Florida, Virginia and Tennessee) as well as in Texas, Connecticut and Mississippi. Lane Management Corporation manages approximately 15,000 units located in the Atlanta market. The company employs approximately 1,200 people nationally, with 100 employees located in the Atlanta corporate office.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Current Mezzanine or Subordinate Indebtedness:


•	None.

Future Mezzanine or Subordinate Indebtedness:


•	Not allowed.

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

G8665412.eps

Banc of America Commercial Mortgage Inc.

Commercial Mortgage Pass-Through Certificates, Series 2004-1

Additional Mortgage Loan Information


-	General. For a detailed presentation of certain characteristics of the Mortgage Loans and Mortgaged Properties, on an individual basis and in tabular format, see Annex A to the prospectus supplement. See Annex B Multifamily Schedule to the prospectus supplement for certain information regarding multifamily Mortgaged Properties. See Annex B Capital Improvement, Replacement Reserve and Escrow Accounts to the prospectus supplement for certain information with respect to capital improvement, replacement and tenant improvement reserves.

-	Cross-Collateralized and Cross-Defaulted Mortgage Loans. The mortgage pool contains two sets of cross-collateralized and cross-defaulted Mortgage Loans (the Mortgage Loans in each set are cross-collateralized and cross-defaulted with the other Mortgage Loans in that set only). Such Mortgage Loans collectively represent 0.9% of the Initial Pool Balance (1.2% of the Group 1 Balance), and are referred to as the “Cross-Collateralized Mortgage Loans.” Each of the Cross-Collateralized Mortgage Loans is evidenced by a separate Mortgage Note and secured by a separate Mortgage, which Mortgage or separate cross-collateralization agreement, which may include a subordinate mortgage as the case may be, contains provisions creating the relevant partial cross-collateralization and partial cross-default arrangements.

-	Ground Leases. Twelve Mortgaged Properties, which represent approximately 14.6% of the Initial Pool Balance (18.8% of the Group 1 Balance), are secured, in whole or in part, by a Mortgage on the applicable borrower’s leasehold interest in the related Mortgaged Property. Generally, either (i) the ground lessor has subordinated its interest in the related Mortgaged Property to the interest of the holder of the related Mortgage Loan or (ii) the ground lessor has agreed to give the holder of the Mortgage Loan notice of, and has granted such holder the right to cure, any default or breach by the lessee.

-	Subordinate Financing. The Mortgage Loans generally either prohibit the related borrower from encumbering the Mortgaged Property with additional secured debt or require the consent of the holder of the first lien prior to encumbering such property. Certain exceptions are noted below and described in the prospectus supplement. Two Mortgage Loans, representing 1.6% of the Initial Pool Balance (2.0% of the Group 1 Balance), have existing unsecured debt, and 4 Mortgage Loans, representing 2.3% of the Initial Pool Balance (2.2% of the Group 1 Balance and 2.5% of the Group 2 Balance), permit additional unsecured debt. In addition, 2 Mortgage Loans, representing 8.1% of the Initial Pool Balance (10.2% of the Group 1 Balance and 1.0% of the Group 2 Balance), have existing secured debt and 2 Mortgage Loans, representing 0.9% of the Initial Pool Balance (1.2% of the Group 1 Balance), permit future subordinate debt secured by the Mortgaged Property subject to certain conditions. In addition, 20 of the Mortgage Loans, representing 9.1% of the Initial Pool Balance (8.8% of the Group 1 Balance and 10.0% of the Group 2 Balance), permit the members of the related borrower to incur mezzanine debt under the circumstances set forth in the related loan agreement. Two Mortgage Loans, representing 8.6% of the Initial Pool Balance (10.2% of the Group 1 Balance and 3.2% of the Group 2 Balance), have existing mezzanine debt. See the individual loan descriptions under the heading “Description of the Mortgage Pool” in the prospectus supplement for further information regarding additional indebtedness relating to significant mortgage loans, as well as the information under “Description of the Mortgage Pool — Additional Mortgage Loans — Subordinate Financing” in the prospectus supplement. See also “Risk Factors — Risks Related to the Mortgage Loans — Subordinate Financing May Make Recovery Difficult in the Event of Loss” of the prospectus supplement.

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