Recent Transaction

Four Winds Apartments - Orange Park, FL
$10,300,000 Bridge Loan

LOS ANGELES, August 1, 2007 – Legg Mason Real Estate Investors, Inc., a subsidiary of Legg Mason, Inc. (NYSE:LM), recently closed a $10,300,000 bridge loan, the proceeds of which were used for the acquisition of an apartment community in Orange Park, 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 154 unit, Class B apartment community comprised of twenty-six buildings situated on a 13.5 acre parcel in Orange Park, Florida. The loan is structured with an $870,000 capital improvement reserve to renovate, reposition, and lease the property to its market potential as a Class B+ apartment community.

The floating rate loan represents approximately 90% of the total project cost and includes both a renovation reserve and an interest reserve. The loan has a term of thirty-six months with a one-year extension option. The loan is interest only and is pre-payable without penalty after eighteen months.

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 Craig Oram at 310-234-2107 or Asher Werthan at 310-234-2115.