Legg Mason Arranges $29 Mil for Apartment Complexes

BOSTON-Residential apartment communities in Boston and Peabody, MA received a total of $29 million in mortgage financing in deals arranged by Legg Mason Real Estate Services.

Legg Mason’s Purchase office has arranged a $22 million first-mortgage loan for Terrace Estates in Peabody. The financing, which is based on a 10-year term with interest-only amortization, was arranged by Legg Mason through its correspondent relationship with Freddie Mac, according to Robert Ranieri, senior vice president and regional manager for Legg Mason Real Estate Services Purchase regional office. Terrace Estates is an apartment complex with 75 buildings and 521 units. The borrower was Terrace Realty Trust.

Ranieri comments, “The Freddie Mac loan was a refinance of an existing life insurance company loan. Freddie Mac was very competitively priced and was able to lock in early under the Early Rate Lock Program. The unique aspect of this transaction was the interest only for the full 10 years.”

The company also reports it arranged a $7 million first-mortgage loan for Hemenway Associates LP, the owner of Brownstone Apartments, a 36-unit complex in Boston. The loan, also arranged by Legg Mason through Freddie Mac, is based on a 15-year term with a 20-year amortization. Andrew Larew, vice president for Legg Mason’s Purchase office, says the Brownstone Apartments complex offers student housing for nearby Northeastern University.