FOR IMMEDIATE RELEASE

August 16, 2007

HARBOR GROUP INTERNATIONAL ACQUIRES SHARE OF $1.9 BILLION INVESTMENT IN MANUFACTURED HOUSING SECTOR

An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has invested $15 million in American Riverside Communities, LLC’s (ARC) $1.9 billion purchase of the manufactured housing portfolio of Affordable Residential Communities, Inc.  Affiliates of San Francisco based Farallon Capital Management, LLC and Chicago based Helix Funds LLC and GEM Realty Capital Inc provided the balance of the equity.  Helix will oversee the day to day operations of the portfolio.

Richard Litton, President of Harbor Group International, said that “the company has been actively pursuing real estate related investment opportunities to supplement our large office building and apartment portfolio.”  “We increasingly are pursuing an investment model that diversifies our equity placement, both in terms of a broad array of U.S. and non-U.S. markets and different product sectors,” he said.  “The combination of improving fundamentals in the manufactured housing sector and the deep industry experience of Helix and Farallon made this investment opportunity very attractive,” he further commented.

The ARC portfolio is the third largest portfolio of manufactured housing communities in the United States, with 57,264 homesites in 275 communities. Overall occupancy of the portfolio is currently 82.7%, which includes 9,735 rental homes that are 93% occupied. 80% of the portfolio’s value is located in the top 20 U.S. submarkets.

In the manufactured home business, the landlord provides homesites for rent in typical suburban subdivision settings, complete with common entrance, sidewalks and various other amenities such as clubhouses, pools and laundries. The landlord owns the land while the resident purchases the home.

“The manufactured housing industry fundamentals are strong,” said Litton.  “The product is difficult to develop, creating increased demand, low tenant turnover, and low re-leasing expenses.”

Harbor Group International, L.L.C. holds an investment portfolio in excess of $2 billion, including over 6.5 million square feet of office space throughout the United States, Canada and the United Kingdom, and more than 12,000 apartment units in the U.S.  The Company maintains offices in Norfolk, New York, Chicago, London, and Tel Aviv.  For more information, visit www.harborgroupint.com.