FOR IMMEDIATE RELEASE

Harbor Group International Sells Apartment Community
In Durham, North Carolina

Norfolk, Virginia – February 15, 2008, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that an affiliate of the company has sold the 362-unit Laurel Trace apartment community in Durham to an affiliate of Mission Residential Holdings, LLC, Inc. for $26.05 million.

Blake Okland of Apartment Realty Advisors brokered the transaction.

“The acquisition of Laurel Trace was a key component of Harbor Group’s strategy in the Durham, North Carolina market,” said T. Richard Litton, Jr., President of Harbor Group. “We were able to add value through our capital enhancement program and successfully executed our investment plan.”

The renovation of Laurel Trace Apartments primarily focused on the property’s cosmetics and curb appeal. The project took 14 months to complete.

Harbor Group purchased the property in May of 2004.

Laurel Trace Apartments was built in 1990. The Property contains one, two, and three bedroom floorplans with an average square footage of 925. Amenities include two swimming pools, a tennis court, a fitness center, a playground, detached garages, controlled access entry gates, centralized trash compactor, and two laundry facilities.  The property is currently 91% occupied.

Harbor Group International, LLC is a private real estate investment and management firm which controls a portfolio of worldwide assets valued in excess of $2.0 billion.  The Company’s real estate holdings include over 8.0 million square feet of commercial space and more than 11,000 apartment units.  Harbor Group is headquartered in Norfolk, Virginia with offices in New York, Chicago, London and Tel Aviv.  For additional information, please visit www.harborgroupint.com.

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