FOR IMMEDIATE RELEASE

April 19, 2007

HARBOR GROUP INTERNATIONAL SELLS PEPPERWOOD TOWNHOMES IN PORTSMOUTH, VIRGINIA

An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has sold the 141-unit Pepperwood Townhomes in Portsmouth, Virginia, to MCAP Pepperwood, an affiliate of Municipal Capital Appreciation Partners, for $11,875,000.

The property was purchased by HGI in 1997.
Pepperwood Townhomes consists of one, two and three bedroom units. In addition, there is a one-story office/clubhouse building and a swimming pool on the property.  Amenities include a swimming pool, playground and clubhouse.
The property is located in the Churchland area of Portsmouth. It is situated at the intersection of Towne Point Road and the Western Freeway (I-164), with access to Interstate 664 and the Hampton Roads Beltway.
“This property has been a part of HGI’s portfolio for a long time and it consistently performed well,” said Richard Litton, President of Harbor Group International. “We are pleased with the timing and success of our exit strategy.”

Harbor Group International, L.L.C. owns more than $1.8 billion of investment real estate throughout the United States and the United Kingdom. It has offices in Norfolk, New York, Tel Aviv and Chicago. For more information, see the company’s web site at www.harborgroupint.com.

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