Recent Transaction

Hamilton Avenue Office - Torrance, CA
$17,700,000 Bridge Loan

LOS ANGELES, January 15, 2008 – Legg Mason Real Estate Investors, Inc., a subsidiary of Legg Mason, Inc. (NYSE:LM), recently closed a $17,700,000 bridge loan, the proceeds of which were used for the acquisition of an office building in Torrance, California. 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 Class B office building containing 122,211 rentable square feet in Torrance, California. The property was constructed in 1984 and underwent an extensive renovation in 2006. The loan is structured with a $1,700,000 interest reserve, a $400,000 capital improvement reserve to cure minor deferred maintenance, and a $2,400,000 reserve for tenant improvements and leasing commissions to lease the asset to its market potential as a Class B+ office property.

The floating rate loan represents approximately 72% of the total project cost and includes an interest reserve, a capital improvement reserve, and a tenant improvement and leasing commission reserve. The loan has a term of 36 months with one 12-month extension option and is pre-payable without penalty after 18 months. The loan is interest only for the first 36 months and amortizes during the extension option.

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 Kevin Wieland at 310-234-2106 or Matt Kardos at 310-234-2110.