SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C.  20549

                           FORM 10-QSB

           Quarterly Report Under Section 13 or 15(d)
             of The Securities Exchange Act of 1934

              For the Quarter Ended:  June 30, 2001

                Commission file number:  0-14263


            AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
(Exact Name of Small Business Issuer as Specified in its Charter)


      State of Minnesota                   41-1511293
(State or other Jurisdiction of         (I.R.S. Employer
Incorporation or Organization)        Identification No.)


  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

                         (651) 227-7333
                   (Issuer's telephone number)


                         Not Applicable
 (Former name, former address and former fiscal year, if changed
                       since last report)

Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during the preceding 12 months (or for such shorter  period
that  the registrant was required to file such reports), and  (2)
has  been  subject to such filing requirements for  the  past  90
days.

                         Yes  [X]    No

         Transitional Small Business Disclosure Format:

                         Yes         No  [X]




          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP


                              INDEX




PART I. Financial Information

Item 1. Balance Sheet as of June 30, 2001 and December 31, 2000

        Statements for the Periods ended June 30, 2001 and 2000:

           Income

           Cash Flows

           Changes in Partners' Capital

        Notes to Financial Statements

Item 2. Management's Discussion and Analysis

PART II. Other Information

Item 1.Legal Proceedings

Item 2.Changes in Securities

Item 3.Defaults Upon Senior Securities

Item 4.Submission of Matters to a Vote of Security Holders

Item 5.Other Information

Item 6.Exhibits and Reports on Form 8-K

<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                          BALANCE SHEET

               JUNE 30, 2001 AND DECEMBER 31, 2000

                           (Unaudited)

                             ASSETS


                                                  2001           2000

CURRENT ASSETS:
  Cash and Cash Equivalents                   $ 1,292,487    $   941,722
  Receivables                                      15,441         10,000
                                               -----------    -----------
          Total Current Assets                  1,307,928        951,722
                                               -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                          1,909,160      1,722,667
  Buildings and Equipment                       2,392,100      2,918,857
  Construction in Progress                        220,384              0
  Accumulated Depreciation                       (825,707)      (870,519)
                                               -----------    -----------
      Net Investments in Real Estate            3,695,937      3,771,005
                                               -----------    -----------
          Total Assets                        $ 5,003,865    $ 4,722,727
                                               ===========    ===========


                     LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.        $    29,532    $    14,654
  Distributions Payable                           242,758         91,219
                                               -----------    -----------
      Total Current Liabilities                   272,290        105,873
                                               -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                (20,283)       (31,930)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,030 outstanding                            4,751,858      4,648,784
                                               -----------    -----------
     Total Partners' Capital                    4,731,575      4,616,854
                                               -----------    -----------
      Total Liabilities and Partners' Capital $ 5,003,865    $ 4,722,727
                                               ===========    ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                       STATEMENT OF INCOME

                  FOR THE PERIODS ENDED JUNE 30

                           (Unaudited)


                              Three Months Ended      Six Months Ended
                             6/30/01      6/30/00    6/30/01     6/30/00

INCOME:
   Rent                     $ 119,001   $ 132,048   $ 246,019   $ 270,590
   Investment Income           13,047       3,602      27,716       5,844
                             ---------   ---------   ---------   ---------
        Total Income          132,048     135,650     273,735     276,434
                             ---------   ---------   ---------   ---------

EXPENSES:
   Partnership Administration -
    Affiliates                 29,742      23,686      58,473      49,593
   Partnership Administration
    and Property Management -
    Unrelated Parties          11,505       2,225      18,767      11,219
   Depreciation                19,674      26,444      40,735      53,145
                             ---------   ---------   ---------   ---------
        Total Expenses         60,921      52,355     117,975     113,957
                             ---------   ---------   ---------   ---------

OPERATING INCOME               71,127      83,295     155,760     162,477

GAIN ON SALE OF REAL ESTATE   232,031       5,189     312,850       5,189
                             ---------   ---------   ---------   ---------
NET INCOME                  $ 303,158   $  88,484   $ 468,610   $ 167,666
                             =========   =========   =========   =========

NET INCOME ALLOCATED:
   General Partners         $  13,532   $     885   $  15,186   $   1,677
   Limited Partners           289,626      87,599     453,424     165,989
                             ---------   ---------   ---------   ---------
                            $ 303,158   $  88,484   $ 468,610   $ 167,666
                             =========   =========   =========   =========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (7,030 and 7,080 weighted average Units
 outstanding in 2001 and 2000,
 respectively.)             $   41.20   $   12.37   $   64.50   $   23.44
                             =========   =========   =========   =========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                     STATEMENT OF CASH FLOWS

                  FOR THE PERIODS ENDED JUNE 30

                           (Unaudited)


                                                        2001         2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $   468,610  $   167,666

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       40,735       53,145
     Gain on Sale of Real Estate                      (312,850)      (5,189)
     (Increase) Decrease in Receivable                  (5,441)      10,000
     Increase in Payable to
        AEI Fund Management, Inc.                       14,878        7,273
     Increase in Unearned Rent                               0        7,059
                                                    -----------  -----------
        Total Adjustments                             (262,678)      72,288
                                                    -----------  -----------
        Net Cash Provided By
        Operating Activities                           205,932      239,954
                                                    -----------  -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                         (881,281)           0
   Proceeds from Sale of Real Estate                 1,228,464       64,098
                                                    -----------  -----------
        Net Cash Provided By
        Investing Activities                           347,183       64,098
                                                    -----------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                   151,539           94
   Distributions to Partners                          (353,889)    (202,374)
                                                    -----------  -----------
        Net Cash Used For
        Financing Activities                          (202,350)    (202,280)
                                                    -----------  -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS              350,765      101,772

CASH AND CASH EQUIVALENTS, beginning of period         941,722      180,855
                                                    -----------  -----------
CASH AND CASH EQUIVALENTS, end of period           $ 1,292,487  $   282,627
                                                    ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

            STATEMENT OF CHANGES IN PARTNERS' CAPITAL

                  FOR THE PERIODS ENDED JUNE 30

                           (Unaudited)



                                                                   Limited
                                                                 Partnership
                            General      Limited                   Units
                            Partners     Partners     Total      Outstanding


BALANCE, December 31, 1999 $(32,575)  $ 4,585,021  $ 4,552,446     7,079.63

  Distributions              (2,024)     (200,350)    (202,374)

  Net Income                  1,677       165,989      167,666
                            --------   -----------  -----------  -----------
BALANCE, June 30, 2000     $(32,922)  $ 4,550,660  $ 4,517,738     7,079.63
                            ========   ===========  ===========  ===========


BALANCE, December 31, 2000 $(31,930)  $ 4,648,784  $ 4,616,854     7,029.63

  Distributions              (3,539)     (350,350)    (353,889)

  Net Income                 15,186       453,424      468,610
                            --------   -----------  -----------  -----------
BALANCE, June 30, 2001     $(20,283)  $ 4,751,858  $ 4,731,575     7,029.63
                            ========   ===========  ===========  ===========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2001

                           (Unaudited)


(1)  The  condensed  statements included herein have been  prepared
     by  the Partnership, without audit, pursuant to the rules  and
     regulations  of  the Securities and Exchange  Commission,  and
     reflect   all  adjustments  which  are,  in  the  opinion   of
     management,  necessary to a fair statement of the  results  of
     operations for the interim period, on a basis consistent  with
     the  annual audited statements.  The adjustments made to these
     condensed   statements  consist  only  of   normal   recurring
     adjustments.   Certain information, accounting  policies,  and
     footnote    disclosures   normally   included   in   financial
     statements  prepared  in  accordance with  generally  accepted
     accounting principles have been condensed or omitted  pursuant
     to  such  rules  and  regulations,  although  the  Partnership
     believes  that  the  disclosures  are  adequate  to  make  the
     information  presented not misleading.  It is  suggested  that
     these  condensed financial statements be read  in  conjunction
     with  the  financial statements and the summary of significant
     accounting  policies  and  notes  thereto  included   in   the
     Partnership's latest annual report on Form 10-KSB.

(2)  Organization -

     AEI  Real Estate Fund 85-A Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  Net  Lease  Management 85-A, Inc.  (NLM),  the  Managing
     General Partner.  Robert P. Johnson, the President and  sole
     shareholder of NLM, serves as the Individual General Partner
     and  an  affiliate of NLM, AEI Fund Management,  Inc.  (AEI)
     performs the administrative and operating functions for  the
     Partnership.

     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced   operations  on  April  15,  1985  when   minimum
     subscriptions    of   1,300   Limited   Partnership    Units
     ($1,300,000) were accepted.  The offering terminated on June
     20,  1985  when  the  maximum subscription  limit  of  7,500
     Limited Partnership Units ($7,500,000) was reached.

     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $7,500,000 and $1,000, respectively.  During operations, any
     Net  Cash  Flow,  as  defined, which  the  General  Partners
     determine  to  distribute will be  distributed  90%  to  the
     Limited  Partners and 10% to the General Partners; provided,
     however,  that  such distributions to the  General  Partners
     will be subordinated to the Limited Partners first receiving
     an annual, noncumulative distribution of Net Cash Flow equal
     to  10%  of their Adjusted Capital Contribution, as defined,
     and,  provided  further, that in no event will  the  General
     Partners  receive  less than 1% of such Net  Cash  Flow  per
     annum.   Distributions to Limited Partners will be made  pro
     rata by Units.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2001
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of properties which the General Partners determine
     to distribute will, after provisions for debts and reserves,
     be  paid  in  the following manner: (i) first,  99%  to  the
     Limited  Partners and 1% to the General Partners  until  the
     Limited  Partners  receive an amount  equal  to:  (a)  their
     Adjusted Capital Contribution plus (b) an amount equal to 6%
     of their Adjusted Capital Contribution per annum, cumulative
     but not compounded, to the extent not previously distributed
     from  Net  Cash Flow; (ii) next, 99% to the Limited Partners
     and  1%  to the General Partners until the Limited  Partners
     receive  an  amount equal to 14% of their  Adjusted  Capital
     Contribution  per annum, cumulative but not  compounded,  to
     the  extent not previously distributed; (iii) next,  to  the
     General  Partners  until  cumulative  distributions  to  the
     General  Partners under Items (ii) and (iii)  equal  15%  of
     cumulative  distributions to all Partners under  Items  (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing  or  other  disposition  of  property,  will  be
     allocated  first  in the same ratio in  which,  and  to  the
     extent,  Net  Cash Flow is distributed to the  Partners  for
     such year.  Any additional profits will be allocated 90%  to
     the  Limited  Partners and 10% to the General Partners.   In
     the  event  no Net Cash Flow is distributed to  the  Limited
     Partners,  90%  of each item of income, gain or  credit  for
     each  respective  year  shall be allocated  to  the  Limited
     Partners,  and 10% of each such item shall be  allocated  to
     the  General Partners.  Net losses from operations  will  be
     allocated 98% to the Limited Partners and 2% to the  General
     Partners.

     For  tax purposes, profits arising from the sale, financing,
     or  other  disposition  of property  will  be  allocated  in
     accordance  with the Partnership Agreement as  follows:  (i)
     first,  to  those  Partners with deficit balances  in  their
     capital  accounts  in an amount equal to  the  sum  of  such
     deficit  balances; (ii) second, 99% to the Limited  Partners
     and  1%  to the General Partners until the aggregate balance
     in  the Limited Partners' capital accounts equals the sum of
     the Limited Partners' Adjusted Capital Contributions plus an
     amount  equal to 14% of their Adjusted Capital Contributions
     per  annum, cumulative but not compounded, to the extent not
     previously  allocated; (iii) third, to the General  Partners
     until  cumulative allocations to the General Partners  equal
     15%  of cumulative allocations.  Any remaining balance  will
     be  allocated  85% to the Limited Partners and  15%  to  the
     General  Partners.   Losses will be  allocated  98%  to  the
     Limited Partners and 2% to the General Partners.

     The  General Partners are not required to currently  fund  a
     deficit capital balance. Upon liquidation of the Partnership
     or  withdrawal  by  a General Partner, the General  Partners
     will  contribute to the Partnership an amount equal  to  the
     lesser of the deficit balances in their capital accounts  or
     1%  of total Limited Partners' and General Partners' capital
     contributions.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2001
                           (Continued)

(3)  Investments in Real Estate -

     Through June 30, 2001, the Partnership sold 61.9968% of  the
     Tractor  Supply  store,  in five separate  transactions,  to
     unrelated third parties.  The Partnership received total net
     sale  proceeds of $886,653, which resulted in  a  total  net
     gain  of  $327,197.  The total cost and related  accumulated
     depreciation of the interests sold was $648,686 and $89,230,
     respectively.  For the six months ended June 30,  2001,  the
     net gain was $214,938.

     Through June 30, 2001, the Partnership sold 58.9779% of  the
     Arby's  restaurant,  in  three  separate  transactions,   to
     unrelated third parties.  The Partnership received total net
     sale  proceeds of $728,141, which resulted in  a  total  net
     gain  of  $93,641.   The total cost and related  accumulated
     depreciation of the interests sold was $655,398 and $20,898,
     respectively.  For the six months ended June  30,  2001  and
     2000, the net gain was $14,115 and $5,189, respectively.

     During the three months ended June 30, 2001, the Partnership
     sold  25.4324% of the Marie Callender's restaurant,  in  two
     separate  transactions,  to unrelated  third  parties.   The
     Partnership  received total net sale proceeds  of  $479,349,
     which  resulted in a total net gain of $83,797.   The  total
     cost  and  related accumulated depreciation of the interests
     sold was $411,123 and $15,571, respectively.

     In  June 2001, the Partnership distributed $151,515  of  the
     net  sale proceeds to the Limited and General Partners which
     represented  a  return  of capital  of  $21.34  per  Limited
     Partnership  Unit.   The remaining net  sale  proceeds  will
     either  be  reinvested in additional property or distributed
     to the Partners in the future.

     On  March  8, 2001, the Partnership purchased a 33% interest
     in a parcel of land in Austin, Texas for $373,560.  The land
     is leased to Kona Restaurant Group, Inc. (KRG) under a Lease
     Agreement with a primary term of 17 years and annual  rental
     payments  of  $39,224.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing Agreement under which the Partnership will advance
     funds  to  KRG  for  the construction of a  Johnny  Carino's
     restaurant  on  the  site.   Through  June  30,  2001,   the
     Partnership  had  advanced $220,384 for the construction  of
     the property and was charging interest on the advances at  a
     rate  of  10.5%.   The  Partnership's  share  of  the  total
     purchase  price,  including the cost of the  land,  will  be
     approximately $757,000.  After the construction is complete,
     the Lease Agreement will be amended to require annual rental
     payments  of approximately $79,000.  The remaining interests
     in  the  property are owned by AEI Net Lease Income & Growth
     Fund  XX  Limited Partnership, AEI Income & Growth Fund  XXI
     Limited  Partnership and AEI Income & Growth  Fund  23  LLC,
     affiliates of the Partnership.

     On May 14, 2001, the Partnership purchased a 20% interest in
     a  Children's  World daycare center in Plainfield,  Illinois
     for $294,542.  The property is leased to ARAMARK Educational
     Resources, Inc. under a Lease Agreement with a primary  term
     of  15  years  and annual rental payments of  $28,215.   The
     remaining interests in the property are owned by AEI  Income
     &  Growth Fund XXII Limited Partnership and AEI Private  Net
     Lease Millennium Fund Limited Partnership, affiliates of the
     Partnership.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2001
                           (Continued)

(4)  Payable to AEI Fund Management -

     AEI  Fund  Management, Inc. performs the administrative  and
     operating functions for the Partnership.  The payable to AEI
     Fund   Management  represents  the  balance  due  for  those
     services.    This  balance  is  non-interest   bearing   and
     unsecured  and  is  to  be  paid in  the  normal  course  of
     business.


ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS

Results of Operations

        For  the  six  months ended June 30, 2001 and  2000,  the
Partnership  recognized rental income of $246,019  and  $270,590,
respectively.   During the same periods, the  Partnership  earned
investment income of $27,716 and $5,844, respectively.  In  2001,
rental  income  decreased  due to the  property  sales  discussed
below.   This decrease in rental income was partially  offset  by
rent  received  from two property acquisitions in 2001  and  rent
increases  on  two  properties.  In 2001,  additional  investment
income was earned on the net proceeds from property sales.

        During  the six months ended June 30, 2001 and 2000,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $58,473 and $49,593, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements and correspondence to the Limited Partners.   During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $18,767 and $11,219, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs, taxes, insurance and other property costs.

        As  of  June 30, 2001, the Partnership's annualized  cash
distribution  rate  was  6.5%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

Liquidity and Capital Resources

         During   the  six  months  ended  June  30,  2001,   the
Partnership's cash balances increased $350,765 mainly as a result
of  cash  generated from the sale of property which was partially
offset  by cash used to purchase property.  Net cash provided  by
operating activities decreased from $239,954 in 2000 to  $205,932
in  2001  due  to  a  decrease  in  income  and  an  increase  in
Partnership  administration  expenses  in  2001  and  net  timing
differences  in the collection of payments from the  lessees  and
the payment of expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the sale of real estate.  During the six months ended  June
30,  2001 and 2000, the Partnership generated cash flow from  the
sale  of  real  estate  of $1,228,464 and $64,098,  respectively.
During  the  six  months  ended June 30,  2001,  the  Partnership
expended  $881,281  to  invest in real properties  (inclusive  of
acquisition  expenses)  as the Partnership  reinvested  the  cash
generated from property sales.

        Through  June 30, 2001, the Partnership sold 61.9968%  of
the  Tractor  Supply  store,  in five separate  transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $886,653, which resulted in a  total  net  gain  of
$327,197.  The total cost and related accumulated depreciation of
the  interests sold was $648,686 and $89,230, respectively.   For
the six months ended June 30, 2001, the net gain was $214,938.

        Through  June 30, 2001, the Partnership sold 58.9779%  of
the  Arby's  restaurant,  in  three  separate  transactions,   to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $728,141, which resulted in a  total  net  gain  of
$93,641.  The total cost and related accumulated depreciation  of
the  interests sold was $655,398 and $20,898, respectively.   For
the  six  months ended June 30, 2001 and 2000, the net  gain  was
$14,115 and $5,189, respectively.

         During  the  three  months  ended  June  30,  2001,  the
Partnership sold 25.4324% of the Marie Callender's restaurant, in
two  separate  transactions,  to unrelated  third  parties.   The
Partnership  received total net sale proceeds of $479,349,  which
resulted  in  a  total net gain of $83,797.  The total  cost  and
related  accumulated  depreciation  of  the  interests  sold  was
$411,123 and $15,571, respectively.

        In June 2001, the Partnership distributed $151,515 of the
net  sale  proceeds  to  the Limited and General  Partners  which
represented a return of capital of $21.34 per Limited Partnership
Unit.   The remaining net sale proceeds will either be reinvested
in  additional  property or distributed to the  Partners  in  the
future.

       On March 8, 2001, the Partnership purchased a 33% interest
in  a parcel of land in Austin, Texas for $373,560.  The land  is
leased  to  Kona  Restaurant Group,  Inc.  (KRG)  under  a  Lease
Agreement  with  a  primary term of 17 years  and  annual  rental
payments  of  $39,224.  Simultaneously with the purchase  of  the
land,  the  Partnership  entered  into  a  Development  Financing
Agreement under which the Partnership will advance funds  to  KRG
for the construction of a Johnny Carino's restaurant on the site.
Through June 30, 2001, the Partnership had advanced $220,384  for
the construction of the property and was charging interest on the
advances  at  a rate of 10.5%.  The Partnership's  share  of  the
total  purchase price, including the cost of the  land,  will  be
approximately $757,000.  After the construction is complete,  the
Lease Agreement will be amended to require annual rental payments
of   approximately  $79,000.   The  remaining  interests  in  the
property  are  owned by AEI Net Lease Income  &  Growth  Fund  XX
Limited  Partnership,  AEI  Income  &  Growth  Fund  XXI  Limited
Partnership  and AEI Income & Growth Fund 23 LLC,  affiliates  of
the Partnership.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

        On May 14, 2001, the Partnership purchased a 20% interest
in  a Children's World daycare center in Plainfield, Illinois for
$294,542.    The  property  is  leased  to  ARAMARK   Educational
Resources, Inc. under a Lease Agreement with a primary term of 15
years  and  annual  rental payments of  $28,215.   The  remaining
interests  in the property are owned by AEI Income & Growth  Fund
XXII  Limited  Partnership and AEI Private Net  Lease  Millennium
Fund Limited Partnership, affiliates of the Partnership.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.   In 2001, distributions were higher when compared to 2000,
due to the distribution of sale proceeds in June, 2001.

        The  Partnership may purchase Units from Limited Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in any year more than 5% of the total number  of  Units
originally sold.  In no event shall the Partnership be  obligated
to  purchase  Units if, in the sole discretion  of  the  Managing
General  Partner,  such  purchase would  impair  the  capital  or
operation of the Partnership.

        During 2000, one Limited Partner redeemed a total  of  50
Partnership  Units for $16,201 in accordance with the Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years, a total  of  fifty-three
Limited  Partners redeemed 420.37 Partnership Units for $315,321.
The   redemptions   increase  the  remaining  Limited   Partners'
ownership interest in the Partnership.

       The continuing rent payments from the properties, together
with  cash  generated from property sales, should be adequate  to
fund   continuing   distributions  and  meet  other   Partnership
obligations on both a short-term and long-term basis.

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS  (Continued)

Cautionary Statement for Purposes of the "Safe Harbor" Provisions
of the Private Securities Litigation Reform Act of 1995

         The   foregoing  Management's  Discussion  and  Analysis
contains various "forward looking  statements" within the meaning
of   federal   securities   laws  which  represent   management's
expectations  or  beliefs  concerning  future  events,  including
statements  regarding anticipated application of  cash,  expected
returns  from rental income, growth in revenue, taxation  levels,
the  sufficiency  of  cash to meet operating expenses,  rates  of
distribution,  and  other  matters.   These,  and  other  forward
looking statements made by the Partnership, must be evaluated  in
the   context  of  a  number  of  factors  that  may  affect  the
Partnership's  financial  condition and  results  of  operations,
including the following:

    Market  and  economic conditions which affect the  value
    of  the  properties the Partnership owns and  the  cash
    from rental income such properties generate;

    the  federal  income tax consequences of rental  income,
    deductions,  gain  on  sales and other  items  and  the
    affects of these consequences for investors;

    resolution  by  the General Partners of  conflicts  with
    which they may be confronted;

    the   success  of  the  General  Partners  of   locating
    properties with favorable risk return characteristics;

    the effect of tenant defaults; and

    the  condition of the industries in which the tenants of
    properties owned by the Partnership operate.


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

       There  are no material pending legal proceedings to  which
  the  Partnership  is  a  party or of  which  the  Partnership's
  property is subject.

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       None.

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                             Description

       10.1  Development  Financing Agreement dated  March  8,  2001
       between  the Partnership, AEI Net Lease Income & Growth  Fund
       XX  Limited Partnership, AEI Income & Growth Fund XXI Limited
       Partnership,  AEI  Income  & Growth  Fund  23  LLC  and  Kona
       Restaurant  Group,  Inc. relating to  the  property  at  5601
       Brodie Lane, Austin, Texas.

       10.2  Net  Lease  Agreement dated March 8, 2001  between  the
       Partnership,  AEI Net Lease Income & Growth Fund  XX  Limited
       Partnership,   AEI   Income  &  Growth   Fund   XXI   Limited
       Partnership,  AEI  Income  & Growth  Fund  23  LLC  and  Kona
       Restaurant  Group,  Inc. relating to  the  property  at  5601
       Brodie Lane, Austin, Texas.

       10.3  Purchase  Agreement  dated  May  8,  2001  between  the
       Partnership, AEI Real Estate Fund XV Limited Partnership  and
       Donald  B. and Sue D. Wood relating to the property  at  1800
       Lamar Alexander Parkway, Maryville, Tennessee.

       10.4  Purchase  Agreement  dated  May  8,  2001  between  the
       Partnership  and  Donald B. and Sue D. Wood relating  to  the
       property at 305 N.E. Burnside Street, Gresham, Oregon.

       10.5  Net  Lease  Agreement dated May 14,  2001  between  the
       Partnership,   AEI   Income  &  Growth  Fund   XXII   Limited
       Partnership,  AEI Private Net Lease Millennium  Fund  Limited
       Partnership and ARAMARK Educational Resources, Inc.  relating
       to   the   property  at  15950  Fredrick  Drive,  Plainfield,
       Illinois.

       10.6  Purchase  Agreement  dated May  17,  2001  between  the
       Partnership, AEI Real Estate Fund XV Limited Partnership  and
       Walter  L.  Schrock relating to the property  at  1800  Lamar
       Alexander Parkway, Maryville, Tennessee.

       10.7  Property Co-Tenancy Ownership Agreement dated  May  18,
       2001  between the Partnership and Donald B. and Sue  D.  Wood
       relating  to  the  property  at  305  N.E.  Burnside  Street,
       Gresham, Oregon.

       10.8  Purchase  Agreement dated June  26,  2001  between  the
       Partnership  and  David  Louis Cruickshank  relating  to  the
       property at 305 N.E. Burnside Street, Gresham, Oregon.

       10.9  Property Co-Tenancy Ownership Agreement dated June  28,
       2001  between  the  Partnership and David  Louis  Cruickshank
       relating  to  the  property  at  305  N.E.  Burnside  Street,
       Gresham, Oregon.

       27  Financial Data Schedule for period ended June 30, 2001.


       b. Reports filed on Form 8-K - None.




                           SIGNATURES

        In  accordance with the requirements of the Exchange Act,
the  Registrant has caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


Dated:  August 7, 2001        AEI Real Estate Fund 85-A
                              Limited Partnership
                              By: Net Lease Management 85-A, Inc.
                              Its: Managing General Partner



                              By: /s/ Robert P. Johnson
                                      Robert P. Johnson
                                      President
                                      (Principal Executive Officer)



                              By: /s/ Mark E. Larson
                                      Mark E. Larson
                                      Chief Financial Officer
                                      (Principal Accounting Officer)