Recent Transaction

Minneapolis Parking Portfolio - Minneapolis, MN
$19,100,000 Bridge Loan

LOS ANGELES, January 16, 2008 – Legg Mason Real Estate Investors, Inc., a subsidiary of Legg Mason, Inc. (NYSE:LM), recently closed a $19,100,000 subordinated note, which was part of a $64,100,000 first mortgage that financed the acquisition of five parking structures and four development properties in Minneapolis, Minnesota. 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 secured by a cross-collateralized portfolio of eight (8) properties in Minneapolis, Minnesota. The portfolio is comprised of five (5) parking structures, which contain a total of 4,543 parking stalls and are being acquired form the city of Minneapolis, as well as one surface parking lot, a 192-room Ramada Hotel, and a ½ acre improved restaurant pad. The first mortgage represents approximately 66% of the total project costs and is structured with a $5,850,000 capital improvement reserve to fund technology upgrades, aesthetic improvements, and structural renovations. The loan is interest only for the first 36 months and amortizes during the extension options. The loan is pre-payable without penalty after 12 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 Josh Westerberg at 310-234-2104 or Chris Hoshek at 310-234-2109.