FOR IMMEDIATE RELEASE

December 27, 2004

For More Information, Contact:
Sid Bridge, Director of Communications
Harbor Group International
(757) 640-0800

HARBOR GROUP INTERNATIONAL SELLS RIGHTS TO 109 EAST MAIN STREET

Harbor Group International (HGI) of Norfolk, Virginia has sold its right to purchase an historic, 55,000 square foot office property located at 109 East Main Street to the prominent Norfolk attorney Peter Decker.

The property, built in the late 1800’s, was the first multi-level office structure built in downtown Norfolk.

The property served as the downtown headquarters of BB&T bank until an affiliate of HGI acquired the right to purchase the building. As part of the transaction, BB&T entered into a 15-year lease for 40,000 square feet in 500 East Main, the former SunTrust building, which is also owned by an HGI affiliate.

"This is a win-win situation for everyone involved," said Jordan Slone, Chairman & CEO of Harbor Group International. "Mr. Decker’s law firm has such a strong connection to downtown Norfolk. This building was a perfect fit for the firm."

Decker’s law firm, Decker, Cardon, Thomas, Weintraub & Neskis, PC, began searching for a new headquarters after its building, located at 201 East Plume Street, was purchased by the City of Norfolk.

"Working with Pete on this transaction was a real pleasure," said Slone. "We’re pleased to have found an owner who will appreciate this historic property."

HGI’s downtown Norfolk holdings already include Dominion Tower, 500 East Main (The BB&T Building), and 555 East Main (soon to be headquarters for RBC Centura Bank), and Harbor Group International wanted to stick to its core properties, added Slone. HGI achieved its goal of selling its right to acquire the building before the closing date of January 31.

The sale of 109 East Main is the final piece of a complicated series of leasing transactions completed by Harbor Group International in downtown Norfolk this year:

• BB&T saw a need for a presence on the downtown Norfolk skyline and was able to negotiate a deal to lease space in 500 East Main, another HGI-owned property which had been vacated by SunTrust Bank last year.
• BB&T was locked into a long-term lease at 555 East Main when it acquired the building’s anchor tenant, First Virginia Bank.
• As part of BB&T’s lease for 500 East Main and HGI’s agreement to acquire the 109 East Main Building, the parties agreed to a buyout of the BB&T/First Virginia Bank lease at 555 East Main.
• The BB&T/First Virginia Bank lease buyout freed the anchor slot in 555 East Main, paving the way for RBC Centura to enter into a long-term lease and become 555 East Main’s anchor tenant.

"The whole series of transactions was great for downtown," said Slone, "One bank claimed an overdue piece of the downtown skyline, one bank forged a new presence in downtown Norfolk, and one very important law firm found the perfect place to do business."

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