FOR IMMEDIATE RELEASE

July 10, 2006

HARBOR GROUP INTERNATIONAL PURCHASES
BRAZOS APARTMENTS IN DALLAS

An affiliate of Harbor Group International,L.L.C. (HGI) has acquired the 286-unit The Brazos apartment community in Dallas from Horizon Nnorth Parkway LP for approximately $26 million.

HGI plans to invest an additional $300,000 in interior, exterior and amenity upgrades to the property. This purchase joins Vail Village (acquired in November 2005) and Windhaven Park (formerly Avalon Parc, acquired in January 2006) apartment communities as part of the company’s growing Dallas portfolio.

“The location is what first attracted us to the property,” explained Bob Weber, Director of Multi-Family Asset Management for HGI. “The community is situated in Far North Dallas, one of the tightest submarkets in the Dallas area. It’s just minutes away from several large employment bases, including Legacy Park, and upscale retail shopping is abundant in the region.

“In addition, it is located in the Plano school district, one of the best in the state of Texas.”

“This property is a key part of our ongoing acquisition strategy in Dallas and signifies our confidence in the operating fundamentals of the region’s apartment market,” added T. Richard Litton Jr., president of HGI. “We will continue to aggressively pursue well-located, high-quality assets within the area.”

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Harbor Group International, with offices in Norfolk, New York, Chicago and Tel Aviv, currently own more than $1 billion worth of properties throughout the United States. For more information, visit Harbor Group International’s web page at www.harborgroupint.com.

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