FOR IMMEDIATE RELEASE

May 2, 2007

HARBOR GROUP INTERNATIONAL SELLS APARTMENT COMMUNITIES IN BIRMINGHAM

An affiliate of Harbor Group International, L.L.C. (HGI), based in Norfolk, Virginia, has sold the 696-unit Vista apartments in Birmingham, Alabama, to an affiliate of New Dawn Acquisition, LLC for $65.8 million.

The Vista apartments, consisting of Vista Woods, Vista Falls, and Vista Hills were purchased by HGI in January of 2005 for $50.325 million.

The portfolio was built in phases between 1995 and 2000. The properties contain one, two and three bedroom apartments with an average square footage of 1,065 per unit. Amenities include three swimming pools, six tennis courts, two fitness centers, controlled entry gates, a 24-hour laundry center, washer and dryer connections, a car care area, a playground, and private garages. The Properties have excellent access to Interstate 459, Interstate 65, and Lorna Road, a major retail thoroughfare, and are located approximately 1 mile from the upscale Riverchase Galleria Mall, office, and hotel district.

“Birmingham has been an active market for us over the years,” said Richard Litton, President of Harbor Group International, “and we’ve been pleased with our investment track record in the market.  We were able to achieve all of our investment objectives with the Vista properties in a relatively short period of ownership.”

Harbor Group International, L.L.C. holds an investment portfolio in excess of $1.8 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.