FOR IMMEDIATE RELEASE

HARBOR GROUP INTERNATIONAL COMPLETES LARGEST SINGLE MULTIFAMILY PROPERTY TRANSACTION IN COMPANY HISTORY


An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has acquired the 768-unit Hamptons at Town Center Apartment community in Germantown, Maryland, from an affiliate of Fairfield Residential, L.L.C. for $82 million.

Located 12 miles from Washington, D.C., the asset is the largest single apartment property HGI has acquired to date.

“We will invest an additional $2,266,000 or $2,951 per unit into the property for interior and exterior improvements,” said T. Richard Litton, Jr., President of HGI. “The seller maintained the property to high standards and already completed renovations on 600 units. We will renovate the interiors of the remaining 168 units,” he said.

In addition to its excellent commuting location, the Property is directly adjacent to the headquarters for the U.S. Department of Energy which employs 2,100 people, and the Town Center at Germantown. The vibrant Town Center is a mixed use development with 940,000 square feet of commercial office space, two hotels, the BlackRock Center for the Arts and 450,000 square feet of high end retail space. A new public library is also nearing completion at the Town Center.

The “Class B” Property, built in phases between 1979 and 1982, is situated on 37.04 acres and features multiple one and two bedroom floor plans with an average size of 676 square feet. Amenities include a newly renovated clubhouse and fitness center, swimming pool, baby pool, business center, tennis court, volleyball court, four laundry facilities and two playgrounds. The Property is currently 93% occupied.

The Property is located in affluent Montgomery County, MD and enjoys a “Class A+” location 12 miles from Washington, D.C. along Germantown Road, a major artery through Germantown. This location is less than one mile from Germantown Road’s intersection with the heavily traveled I-270.

Harbor Group International, L.L.C. holds an investment portfolio in excess of $1.75 billion, including over 6 million square feet of office space throughout the United States and the United Kingdom, and more than 10,000 apartment units in the U.S. The Company maintains offices in Norfolk, New York, Chicago, London, Tel Aviv and Jerusalem.