FOR IMMEDIATE RELEASE

September 17, 2007

Harbor Group International Sells Apartment Community In
Newport News, Virginia

An affiliate of Harbor Group International, LLC (HGI), based in Norfolk, Virginia, has sold the 208-unit Jefferson Point Apartments in Newport News, Virginia, to an affiliate of AEW Capital Management, at a purchase price of $24.1 million.

Andrew Boyer and Dan Johnson of CB Richard Ellis brokered the transaction. HGI purchased the property in March of 2005.

“The property was maintained to a high standard since it was built and always performed well,” said T. Richard Litton, Jr., President of HGI. “We are pleased with the success of our investment and the timing of our exit strategy.”

Jefferson Point, built in 1985, features multiple one and two bedroom floor plans. Currently the Property is 95.67% occupied. All units include central air and heat, wall to wall carpeting, a balcony or patio, a dishwasher and disposal, high speed internet access and walk in closets.  Select units also feature bay windows, washer and dryer connections, wood burning fireplaces and ceiling fans. Property amenities include a swimming pool and outdoor spa, lighted tennis court, sand volleyball court, fitness center and clubhouse, video library, picnic areas and a dry cleaning valet service.

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 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.