FOR IMMEDIATE RELEASE
February 13, 2008

Harbor Group International Acquires Apartment Community In Newport News, Virginia

NORFOLK, Virginia – February 7, 2008, Harbor Group International, LLC (“Harbor Group” or the “Company”) announced today that an affiliate of the company has acquired the 260-unit Waterman’s Crossing Apartments located in Newport News, Virginia, from an affiliate of Sentinel Real Estate Corporation for $29.7 million.

Andrew C. Boyer and Dan W. Johnson, of CB Richard Ellis, brokered the transaction.

“Harbor Group has a proven track record in Newport News,” said T. Richard Litton, Jr., President of Harbor Group. “We look forward to adding value to the property through capital improvements and focused management.”

Harbor Group plans to invest an additional $1.0 million into the property for interior and exterior upgrades.

Waterman’s Crossing was built in 1987 and features multiple one, two and three bedroom floor plans with an average size of 945 square feet. The property is currently 97% occupied. Dwelling units include wall to wall carpeting, washer and dryer and either a balcony or a patio. Select units have a fireplace and built-in cabinetry in the living areas. Property amenities include a swimming pool, lighted tennis courts, sand volleyball court, fitness center, clubhouse, picnic areas and a playground.

This acquisition marks the re-entry of Harbor Group into the Newport News market.  Harbor Group sold the 208-unit Jefferson Point Apartments to an affiliate of AEW Capital Management in August 2007.

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.

###