FOR IMMEDIATE RELEASE

October 25, 2004

HARBOR GROUP INTERNATIONAL SELLS APARTMENT
COMMUNITY IN BALTIMORE AREA

Harbor Group International (HGI) of Norfolk, Virginia, has sold the 203-unit Quarterfield Crossing apartment community in Glen Burnie, Maryland, to a private, Annapolis-based investor at a purchase price of $11.5 million ($56,650 per unit).

HGI acquired the property in 1998 at a purchase price of $5.12 million and invested another $2 million on extensive renovations.

“ Quarterfield Crossing Apartments represents a tremendous success for Harbor Group International,” said Jordan Slone, Chairman and CEO of Harbor Group International. “We implemented our comprehensive rehabilitation program and successfully executed our exit strategy.”

HGI’s thorough rehabilitation of the property included new roofs, a new color scheme with new awnings and painted balconies, new entry signs, a new fitness center, a playground, a new leasing center, major landscaping improvements, and electrical and HVAC upgrades.

At the time of sale, Quarterfield Crossing was 98% occupied.  The property averaged an impressive 96% occupancy during more than four years of HGI ownership.
Harbor Group International has a long history of successful apartment ownership and management, having acquired over 7,500 units across the southeastern United States since 1991.  Most recently, HGI acquired Lake Point Apartments, a 296-unit community in Charlotte, North Carolina.

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