FOR IMMEDIATE RELEASE

November 26, 2007

Harbor Group International Acquires Apartment Community In San Antonio, Texas

An affiliate of Harbor Group International, LLC (HGI), based in Norfolk, Virginia, has acquired the 328-unit Bella Madera Apartments in San Antonio, from an affiliate of Westwood Residential.

Will Balthrope with the Balthrope Group of Marcus & Millichap brokered the transaction.

“The San Antonio apartment market, particularly within the Northwest Quadrant where Bella Madera is located, has shown positive momentum, with decreased vacancies and increased rents,” said T. Richard Litton, Jr., President of HGI. “Improving markets such as this one are a key part of our multifamily acquisition strategy.”

HGI plans to invest an additional $377,000 into the property for minor interior and exterior upgrades.

Bella Madera Apartments is a 328-unit Class-A apartment community completed in mid-2006.
The property features multiple one and two bedroom floor plans with an average unit size of 752 square feet. Property amenities include a clubhouse, swimming pool, resident business center, conference room, 24-hour fitness center, laundry facility, tanning studio, massage therapy salon, detached garages, covered parking, perimeter fencing and controlled access entry gates. The Property is currently 96.0% occupied.

The Bella Madera acquisition reflects HGI’s continued expansion in Texas markets.  HGI entered the San Antonio market in September with the purchase of Silver Rock Apartments.  In addition to Bella Madera, HGI owns seven apartment communities in Dallas, Houston and San Antonio, containing 2,621 units.

Harbor Group International, LLC 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.