FOR IMMEDIATE RELEASE

June 28, 2006

HARBOR GROUP INTERNATIONAL PURCHASES
LAKES OF BELLEVUE IN NASHVILLE

An affiliate of Norfolk, Va.-based Harbor Group International (HGI) has acquired the 624-unit The Lakes of Bellevue apartment community in Nashville, Tenn. from Chicago-based Capri Capital Advisors LLC for approximately $41 million.

HGI plans to invest an additional $1.4 million in interior, exterior and amenity upgrades to the property. This purchase joins The Lexington in Nashville as part of the company’s growing Tennessee portfolio.

“We’ve been successful with our first acquisition in the Belle Meade/West Nashville area [The Lexington] and are comfortable with adding to our position there,” said Bob Weber, Director of Multi-Family Asset Management for Harbor Group International. “The addition of The Lakes at Bellevue will allow us to address two distinct price points in the area and provide us some cross-marketing opportunities.

“We like the supply-and-demand factors in Nashville,” he added. “Outside of our home region, it is the most highly occupied market we own properties in today. The geography of the area makes multifamily development more difficult and costly, which helps restrain supply. However, recent announcements of expansions at several of the large local employers and the relocation of Nissan's North American headquarters to the district are comforting signs of increasing levels of multifamily demand in Nashville.”

###

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.

###