FOR IMMEDIATE RELEASE
May 16, 2007

HARBOR GROUP INTERNATIONAL ACQUIRES FIRST APARTMENT COMMUNITY IN HOUSTON

An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has acquired the 518-unit Town Center Apartment community in Houston, Texas for $40.5 million.

HGI plans to invest an additional $2,300 per unit into the property for minor interior and exterior upgrades.

“This property is in the core of the Kingwood Community, one of the most prestigious and successful upscale planned communities in Houston,” said T. Richard Litton, Jr., President of HGI. “The seller maintained the property to high standards and we plan on continuing these standards as well as upgrading the amenity package,” he said.  The acquisition marks HGI’s entry into the Houston market.  “We like the operating fundamentals in the Houston multifamily market and we are actively pursuing other acquisition opportunities” said Litton. 

Town Center was built in two phases between 1994 and 1999. The Property is situated on 20.33 acres and features multiple one, two and three bedroom floor plans with an average size of 877 square feet. Property amenities include a clubhouse, fitness center, business center, swimming pool, controlled access entry gates, covered and garage parking, and golf course views. Dwelling units feature crown molding, full size washer and dryers and private patios or balconies. Select units feature nine foot ceilings, bay windows, wood-burning fireplaces and built-in desks and bookshelves. The Property was approximately 94% occupied as of March 2007 and has maintained an average occupancy of 95% over the last twelve months.

Kingwood is approximately 24 miles northeast of downtown Houston, Texas. The community features 75 miles of wooded greenbelt trails, over 500 acres of community parks, a private boat launch, two private country clubs, multiple golf courses, class “A” retail, and over 65,000 residents.

The Property is less than five miles from Highway 59, a major artery into downtown Houston and less than eight miles from the Sam Houston Tollway, a beltway around the city.

Harbor Group International, L.L.C. holds an investment portfolio in excess of $2 billion, including over 6 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.

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