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

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

3. 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) Significant Spread Tightening in AAA CMBS Spread Environment CMBS Market Update 3

4. 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. No Natural Spread Hedge Hedging Environment CMBS Market Update 4 ____________________ Source: BofAML Research and Bloomberg CMBX Outperforming IG and Cash CMBS

5. 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 OBP-2010 Case Study CMBS Market Update One Bryant Park

6. 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. CMBS Market Update Deal Underwriting Case Study

7. 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 MetLife NY Life NW Mutual Principal Prudential Bank of China BofAML Wells Fargo WestImmo CMBS Market Update Competitive Landscape

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

9. First Half 2010 - Bookrunners of Global Real Estate Bonds (Includes: CMBS, CDO, REIT Bond) 2009 – Bookrunners of Global Real Estate Bonds (Includes: CMBS, CDO, REIT Bonds) BofAML was the most active CMBS Underwriter in Q2-2010 Co-Lead Manager and Joint Bookrunner on the $1.2Bn Freddie Mac 2010-K6 transaction that priced on March 24 th and closed on April 6 th Co-Lead Manager and Joint Bookrunner on the $1.2Bn Freddie Mac 2010-K7 transaction that priced on June 10 th and closed on June 24 th Co-Manager on the $716.3MM JPMCC 2010-C1 transaction that priced on June 11 th Co-Lead Manager and Joint Bookrunner on a $2.3Bn 2 nd lien mezzanine transaction of non-rated debt backed by Hilton Hotels Corp. that priced on June 18 th. 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 BofAML Leading in the Real Estate Debt Market BofAML Real Estate Qualifications CMBS Market Update 9