Recent Transaction

Portofino Apartments - Tampa, FL
$41,800,000 Bridge Loan

LOS ANGELES, July 13, 2007 – Legg Mason Real Estate Investors, Inc., a subsidiary of Legg Mason, Inc. (NYSE:LM), recently closed a $41,800,000 bridge loan, the proceeds of which were used for the acquisition of a Class A apartment community in Tampa, Florida. The loan was made through Legg Mason Real Estate Capital II (“LMREC II”), a discretionary mezzanine, bridge mortgage, and preferred equity real estate fund.

The subject loan is collateralized by a 396 unit, Class A apartment community comprised of fourteen (14) three story garden style buildings situated on a 40 acre parcel in Tampa, Florida. The loan is structured with a $1,500,000 interest reserve and a $500,000 capital improvement reserve to renovate, reposition, and lease the property to its market potential as a Class A apartment community.

The floating rate loan represents approximately 82% of the total project cost and includes a capital improvement reserve, an interest reserve and a condo buyout reserve. The loan has a term of 36 months and is pre-payable without penalty after 24 months. The loan is interest only for the loan term.

Legg Mason Real Estate Investors, Inc. ("LMREI") manages discretionary debt funds that provide creative and flexible commercial real estate financing to fund entrepreneurial multifamily, office, retail, industrial and other commercial properties. To meet the broad needs of the commercial real estate community, its financing programs include high loan-to-value first mortgages, mezzanine loans and preferred equity. For further information please refer to the company website www.lmrei.com or contact Josh Westerberg at 310-234-2104 or Chris Hoshek at 310-234-2109.