FOR IMMEDIATE RELEASE

September 7, 2006

HARBOR GROUP INTERNATIONAL PURCHASES BRIDGES OF KENNESAW APARTMENTS IN ATLANTA IN TAX DEFERRED EXCHANGE TRANSACTION

Through a tax deferred exchange, an affiliate of Norfolk, Va.-based Harbor Group International L.L.C. has acquired the 296-unit Bridges of Kennesaw apartment community in Kennesaw, Ga., from New York-based DRA Advisors for approximately $22 million.
HGI plans to invest an additional $435,000 in minor interior and exterior improvements to the property. This purchase joins Veranda (acquired in October 2004), Creekside Crossing (formerly Cavalier Creekside, acquired in May 2005) and Creekside Corners (formerly Turnberry, acquired in January 2006) as part of the company’s growing Atlanta multi-family portfolio.
“We’ve been very successful with our other acquisitions in the Atlanta market and are comfortable with adding to our position there,” said Robert S. Friedman, Managing Director and Director of Portfolio Management for Harbor Group International. “The long-term presence of Bridges of Kennesaw added to its improving operating fundamentals equals a winning combination for us.”
Harbor Group International, which holds an investment portfolio in excess of $1.5 billion, currently owns approximately 5.8 million square feet of office space throughout the United States and more than 10,000 apartment units. The group maintains offices in Norfolk, New York, Tel Aviv, Chicago and Dallas.