FOR IMMEDIATE RELEASE

March 21, 2008

Harbor Group International Acquires Apartment Community In Austin, Texas

NORFOLK, Virginia – February 28, 2008, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that an affiliate of the Company has acquired a 90% interest in the 167-unit Ridgeview Apartments (formerly Camden Ridgeview) located in Austin, Texas.  The property was acquired in partnership with Mosaic Residential, Inc and was formerly owned by Camden Property Trust.  The property has been renamed The Cottages at Wells Branch.

“Harbor Group has substantial investment and operating experience in the Texas multifamily markets,” said T. Richard Litton, Jr., President of Harbor Group. “The Cottages at Wells Branch is an excellent addition to our portfolio.”

Harbor Group and Mosaic Residential plan to invest an additional $1.2 million into the property for interior and exterior upgrades.  Mosaic will manage the renovation and day-to-day operations of the property.

The Cottages at Wells Branch was built in 1984 and consists of 167 garden style apartments. The property is situated on 7.3 acres and features multiple one and two bedroom floor plans as well as one and two bedroom town homes and lofts with an average size of 859 square feet. Amenities include a swimming pool, Jacuzzi, and an on-site clothes care center. A fitness center, e-lounge with coffee bar, and a remodeled clubhouse will be completed through the renovation.  All units feature first floor, direct entry doors and a covered parking space. Interior amenities include nine foot ceilings and full size washer/dryer connections. Select units include wood burning fireplaces, vaulted ceilings and private backyards. The property is currently 93% occupied.

Pat Jones of Apartment Realty Advisors brokered the transaction.  CapMark arranged the financing with FreddieMac. 

The Cottages at Wells Branch acquisition reflects Harbor Group’s continued expansion in the Texas markets.  This is the second Texas asset acquired in partnership with Mosaic Residential.  In addition to The Cottages at Wells Branch, the Company owns nine apartment communities in Dallas, Houston and San Antonio, containing 2,952 units.

About Harbor Group International
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.

About Mosaic Residential
Mosaic Residential, Inc. is a growing investment and management company focused on value-add multifamily acquisitions in growth markets.  Mosaic Residential is located in Houston, Texas.  For more information about Mosaic, please visit www.mosaicresidential.com.