Legg Mason's Purchase office has arranged a $22 millionfirst-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 relationshipwith Freddie Mac, according to Robert Ranieri, senior vicepresident and regional manager for Legg Mason Real Estate ServicesPurchase regional office. Terrace Estates is an apartment complexwith 75 buildings and 521 units. The borrower was Terrace RealtyTrust.

Ranieri comments, "The Freddie Mac loan was a refinance of anexisting life insurance company loan. Freddie Mac was verycompetitively priced and was able to lock in early under the EarlyRate Lock Program. The unique aspect of this transaction was theinterest only for the full 10 years."

The company also reports it arranged a $7 million first-mortgageloan for Hemenway Associates LP, the owner of BrownstoneApartments, a 36-unit complex in Boston. The loan, also arranged byLegg Mason through Freddie Mac, is based on a 15-year term with a20-year amortization. Andrew Larew, vice president for Legg Mason'sPurchase office, says the Brownstone Apartments complex offersstudent housing for nearby Northeastern University.