CONFIDENTIAL

1. Presentation to: The Real Estate Lenders Association Market Update October 2010 CONFIDENTIAL DRAFT

2. Table of Contents • CMBS Market Update • Spread Environment • Hedging Environment • OBP-2010 Case Study • Deal Underwriting Case Study • Competitive Landscape • CMBS Deal Comparison • BofAML Real Estate Qualifications

3. Significant Spread Tightening in AAA CMBS CMBS Market Update Spread Environment • Spreads on generic 10yr AAA super-senior bonds have tightened approximately 345bps since October 2009, and are currently trading in the S+275 area • Synthetic CMBX 06-1 AAAs spreads have tightened approximately 140bps since October 2009 and are currently trading in the S+62 area • BofAML expects to be in the market this week with a $740.0MM multi-lender/multi-borrower conduit transaction (WFMC 2010-C1) as well as a $2.7Bn legacy large loan securitization of the Hilton Hotels Mortgage (BALL 2010-HLTN)

4. No Natural Spread Hedge CMBX Outperforming IG and Cash CMBS CMBS Market Update Hedging Environment • While CMBS lenders have once again begun to lend with a securitization exit in mind, hedging loan pipelines continues to be an art: • Lending volume remains low which has increased warehousing periods, adding additional importance and difficulty to loan hedging in the current fixed income markets • CMBX and IG are instruments of choice. TRS transactions will become viable with additional new issuance • CMBX is a thinly traded market dominated by fast-money investors and broker dealers. Accounts use the CMBX to make macro bets for short term profit • While the CMBX market tightens, both secondary and new issue cash CMBS markets have lagged the rally causing spread hedging to become less effective. • Since late August, as the S&P 500 rallied, CMBX tightened approximately 50bps, while Generic cash spreads were 10bps tighter. Additionally, new issue 10yr spreads, were relatively unchanged. ____________________ Source: BofAML Research and Bloomberg 4

5. One Bryant Park CMBS Market Update OBP-2010 Case Study • Bank of America Merrill Lynch structured and underwrote the July 2010 $1.30 Billion financing backed by The Bank of America Tower at One Bryant Park located in New York City. Bank of America, which represents 76% of the NRA, has 18yr remaining on its lease Groundbreaking Transaction • First securitization to combine taxable CMBS and tax-exempt Liberty Bonds secured solely by real estate • First single property CMBS transaction since 4 Times Square in December 2006 • Building was appraised for $2.2Bn • Innovative structure whereby both taxable and tax-exempt loans and both issuing vehicles are governed by a single servicing agreement Key Achievements • 39-year final maturity maximizes benefit of Liberty Bond financing • Financing is designed to allow for future refinancing of AAA CMBS while leaving Liberty Bonds in-place

6. CMBS Market Update Deal Underwriting Case Study Underwriting Standards • Sizing constraints have eased as traditional lenders re-enter the market and the competition to lend intensifies. • Below is a comparison of how BofAML’s underwriting standards have changed within the last year. The market is now willing to push debt yield constraints into the 9.25% range. Spread compression of approximately 30 bps in combination with the current interest rate environment allows borrowers to lock in at historically low all-in coupons. Lenders are once again willing to be aggressive for certain high quality properties located in key markets. 2

7. Competitive Landscape CMBS Market Update Competitive Landscape • MetLife • NY Life • NW Mutual • Principal • Prudential • BofAML • Citigroup • Deutsche Bank • Goldman Sachs • JP Morgan • Morgan Stanley • Wells Fargo • Apollo • Basis Capital • Cantor Fitzgerald • Colony • G2 Capital • Ladder Capital • Loancore • Starwood • Blackstone • Centerline • Crexus • Elliott • H2 • LNR • Rialto • Torchlight • Bank of China • BofAML • Wells Fargo • WestImmo

8. Recent New Issue CMBS Transactions CMBS Market Update CMBS Deal Comparison

9. BofAML was the most active CMBS Underwriter in Q2-2010 BofAML Leading in the Real Estate Debt Market CMBS Market Update BofAML Real Estate Qualifications 2009 – Bookrunners of Global Real Estate Bonds (Includes: CMBS, CDO, REIT Bonds) First Half 2010 - Bookrunners of Global Real Estate Bonds (Includes: CMBS, CDO, REIT Bond) • Co-Lead Manager and Joint Bookrunner on the $1.2Bn Freddie Mac 2010-K6 transaction that priced on March 24th and closed on April 6th • Co-Lead Manager and Joint Bookrunner on the $1.2Bn Freddie Mac 2010-K7 transaction that priced on June 10th and closed on June 24th • Co-Manager on the $716.3MM JPMCC 2010-C1 transaction that priced on June 11th • Co-Lead Manager and Joint Bookrunner on a $2.3Bn 2nd lien mezzanine transaction of non-rated debt backed by Hilton Hotels Corp. that priced on June 18th. This debt was originally funded in 2007 and restructured in April 2010 • Co-Lead Manager and Joint Bookrunner on a $1.3Bn investment grade (AAA to BBB-) securitization of the One Bryant Park office property that priced at the end of June ____________________ Source: Commercial Mortgage Alert