FOR IMMEDIATE RELEASE

August 16, 2007

HARBOR GROUP INTERNATIONAL ACQUIRES APARTMENT COMMUNITY IN ATLANTA, GEORGIA

An affiliate of Harbor Group International, LLC (HGI), based in Norfolk, Virginia, has acquired the 464-unit Preston Hills at Mill Creek Apartments in Atlanta, Georgia, from an affiliate of Sagebrush Companies, at a purchase price of $45.5 million.

Cushman & Wakefield’s Atlanta office brokered the transaction.

HGI plans to invest an additional $673,000 into the property for interior and exterior upgrades.

“We continue to acquire quality multifamily assets in improving markets,” said T. Richard Litton, Jr., President of HGI. “HGI has a proven track record in Atlanta. We are pleased with the performance of our existing Atlanta multifamily assets and believe Preston Hills is a great addition to our portfolio in the market.  We look forward to adding value to the property through capital improvements and focused management.”

Preston Hills at Mill Creek is a 464-unit apartment community built in 2000. The Property features numerous one, two and three bedroom floor plans, with an average unit size of 1,112 square feet. Property amenities include a clubhouse, controlled access entry gates, 2 swimming pools, hot tub, sauna, 2 fitness centers, business center, tanning bed, lighted tennis courts, sand volleyball court, playground, car care center, 2 laundry facilities and 90 detached garages. The Property is currently 93% occupied.

HGI currently owns four other apartment communities in Atlanta, containing 1,420 units.

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.