FOR IMMEDIATE RELEASE

September 17, 2007

Harbor Group International Acquires Apartment Community In
San Antonio, Texas

An affiliate of Harbor Group International, LLC (HGI), based in Norfolk, Virginia, has acquired the 328-unit Silver Rock Apartments in San Antonio, Texas, from an affiliate of Sherman Residential.

Charles Cirrar of CB Richald Ellis brokered the transaction.

HGI plans to invest $738,000 into the property for interior and exterior upgrades.

“San Antonio is a high growth area, both in terms of economy and population,” said T. Richard Litton, Jr., President of HGI. “The quality of Silver Rock as a physical asset and the overall fundamentals of the multifamily market in San Antonio made this an attractive investment opportunity.”

Silver Rock Apartments is a Class-A apartment community built in 1996. The Property is situated on 18.16 acres and features two one-bedroom floor plans, two two-bedroom floor plans and one three-bedroom floor plan with an average unit size of 909 square feet. Property amenities include limited-access entry gates, a clubhouse, heated spa, 24-hour fitness center, detached garages, carports, and barbeque and picnic areas. The Property is currently 94.5% occupied.

The Silver Rock acquisition reflects HGI’s continued expansion in Texas markets.  HGI also owns six apartment communities in Dallas and Houston, containing 2,292 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.