FOR IMMEDIATE RELEASE

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


An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has acquired Two North LaSalle, a 26-story office tower in downtown Chicago, Illinois, from an affiliate of Beacon Capital Partners for $152.7 million.

This “Class A” office tower, located at the corner of LaSalle and Madison in the epicenter of Chicago’s Central Business District, is the largest single Commercial property HGI has acquired to date.

“The Chicago CBD market has shown significant improvement,” said T. Richard Litton, Jr., President of HGI. “Vacancy rates are down and rental rate trends are positive. We believe the market will continue to improve.”

In September 2006, HGI purchased 300 South Wacker, a 512,354 square foot building in the Chicago CBD.

Completed in 1979, Two North LaSalle contains 713,030 rentable square feet and is currently 99% leased. The Property’s five largest tenants occupy 61.9% of the Property under long term leases. The Property is located on LaSalle Street, the financial center of the Midwest and home to the Chicago Board of Trade, Chicago Stock Exchange, Chicago Federal Reserve, and leading banks and law firms, in addition to serving as the city’s governmental hub.

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.