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, 1999

                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, 1999 and December 31, 1998

          Statements for the Periods ended June 30, 1999 and 1998:

            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, 1999 AND DECEMBER 31, 1998

                           (Unaudited)

                             ASSETS

                                                    1999           1998

CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 1,853,278     $ 2,572,249
  Receivables                                         8,182          12,721
                                                 -----------     -----------
      Total Current Assets                        1,861,460       2,584,970
                                                 -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                            1,367,380       1,367,380
  Buildings and Equipment                         1,808,008       1,808,008
  Construction in Progress                          392,671          16,981
  Property Acquisition Costs                         45,072           1,885
  Accumulated Depreciation                         (758,114)       (731,538)
                                                 -----------     -----------
      Net Investments in Real Estate              2,855,017       2,462,716
                                                 -----------     -----------
        Total Assets                            $ 4,716,477     $ 5,047,686
                                                 ===========     ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    29,973     $    36,593
  Distributions Payable                              90,723          94,365
  Unearned Rent                                       6,926               0
                                                 -----------     -----------
      Total Current Liabilities                     127,622         130,958
                                                 -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                  (32,210)        (28,931)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,080 outstanding                              4,621,065       4,945,659
                                                 -----------     -----------
     Total Partners' Capital                      4,588,855       4,916,728
                                                 -----------     -----------
       Total Liabilities and Partners' Capital  $ 4,716,477     $ 5,047,686
                                                 ===========     ===========


 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
                               6/30/99       6/30/98     6/30/99      6/30/98

INCOME:
   Rent                       $ 82,663      $133,502    $165,362     $269,217
   Investment Income            26,903         1,985      54,525        3,980
                               --------      --------    --------     --------
        Total Income           109,566       135,487     219,887      273,197
                               --------      --------    --------     --------

EXPENSES:
   Partnership Administration -
     Affiliates                 22,790        23,347      50,413       49,957
   Partnership Administration
     and Property Management -
     Unrelated Parties           4,085         3,123      11,579        9,229
   Depreciation                 13,288        25,939      26,576       51,880
                               --------      --------    --------     --------
        Total Expenses          40,163        52,409      88,568      111,066
                               --------      --------    --------     --------

NET INCOME                    $ 69,403      $ 83,078    $131,319     $162,131
                               ========      ========    ========     ========

NET INCOME ALLOCATED:
   General Partners           $    694      $    830    $  1,313     $  1,621
   Limited Partners             68,709        82,248     130,006      160,510
                               --------      --------    --------     --------
                              $ 69,403      $ 83,078    $131,319     $162,131
                               ========      ========    ========     ========

NET INCOME PER
  LIMITED PARTNERSHIP UNIT
  (7,080 and 7,080 weighted
  average Units outstanding
  in 1999 and 1998)           $   9.70      $  11.62    $  18.36     $  22.67
                               ========      ========    ========     ========



 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)


                                                        1999           1998

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                      $   131,319    $   162,131

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       26,576         51,880
     Decrease in Receivable                              4,539              0
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                       (6,620)         2,341
     Increase in Unearned Rent                           6,926          7,670
                                                    -----------    -----------
        Total Adjustments                               31,421         61,891
                                                    -----------    -----------
        Net Cash Provided By
        Operating Activities                           162,740        224,022
                                                    -----------    -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                         (418,877)             0
                                                    -----------    -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable         (3,642)           785
   Distributions to Partners                          (459,192)      (210,607)
                                                    -----------    -----------
        Net Cash Used For
        Financing Activities                          (462,834)      (209,822)
                                                    -----------    -----------
NET INCREASE (DECREASE) IN CASH
   AND CASH EQUIVALENTS                               (718,971)        14,200

CASH AND CASH EQUIVALENTS, beginning of period       2,572,249        174,683
                                                    -----------    -----------
CASH AND CASH EQUIVALENTS, end of period           $ 1,853,278    $   188,883
                                                    ===========    ===========



 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, 1997  $ (36,144)   $ 4,231,634   $ 4,195,490    7,079.63

  Distributions                (2,106)      (208,501)     (210,607)

  Net Income                    1,621        160,510       162,131
                             ---------    -----------   -----------  ----------
BALANCE, June 30, 1998      $ (36,629)   $ 4,183,643   $ 4,147,014    7,079.63
                             =========    ===========   ===========  ==========


BALANCE, December 31, 1998  $ (28,931)   $ 4,945,659   $ 4,916,728    7,079.63

  Distributions                (4,592)      (454,600)     (459,192)

  Net Income                    1,313        130,006       131,319
                             ---------    -----------   -----------  ----------
BALANCE, June 30, 1999      $ (32,210)   $ 4,621,065   $ 4,588,855    7,079.63
                             =========    ===========   ===========  ==========


 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, 1999

                           (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 of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  NLM,  serves  as  the
     Individual General Partner of the Partnership.  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  Partnership's  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 the  operation
     of the Partnership, 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
                           (Continued)

(2)  Organization - (Continued)

     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's 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  the  Partnership's
     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  Partnership
     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 the Partnership's 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
                           (Continued)

(3)  Investments in Real Estate -

     On  July  31,  1998,  the Partnership sold  9.1266%  of  its
     interest in the Tractor Supply Company store to an unrelated
     third party.  The Partnership received net sale proceeds  of
     $133,251  which resulted in a net gain of $44,686.   At  the
     time  of sale, the cost and related accumulated depreciation
     of the interest sold was $95,494 and $6,929, respectively.

     During   the  third  and  fourth  quarters  of   1998,   the
     Partnership sold 37.3518% of its interest in the  Rio  Bravo
     restaurant,  in  four  separate transactions,  to  unrelated
     third  parties.   The Partnership received  total  net  sale
     proceeds of $585,789 which resulted in a total net  gain  of
     $172,422.    The   total   cost  and   related   accumulated
     depreciation   of  the  interests  sold  was  $660,597   and
     $247,230, respectively.

     On  December  30, 1998, the Partnership sold the  Applebee's
     restaurant   in  Harlingen,  Texas  to  the   lessee.    The
     Partnership received net sales proceeds of $1,858,837  which
     resulted  in a net gain of $580,055.  At the time  of  sale,
     the   cost  and  related  accumulated  depreciation  of  the
     property was $1,393,470 and $114,688, respectively.

     In  March, 1999, the Partnership distributed $252,525 of the
     net  sale proceeds to the Limited and General Partners which
     represented  a  return  of capital  of  $35.31  per  Limited
     Partnership  Unit.   The majority of the remaining  proceeds
     will be reinvested in additional property.

     On  December  17,  1998,  the Partnership  purchased  a  60%
     interest  in  a parcel of land in Hudsonville, Michigan  for
     $198,600.  The land is leased to RTM Mid-America, Inc. (RTM)
     under  a  Lease Agreement with a primary term of  20  years.
     Simultaneously   with  the  purchase  of   the   land,   the
     Partnership  entered into a Development Financing  Agreement
     under  which the Partnership will advance funds to  RTM  for
     the  construction  of  an  Arby's restaurant  on  the  site.
     Through June 30, 1999, the Partnership had advanced $392,671
     for  the  construction  of  the property  and  was  charging
     interest   on  the  advance  at  a  rate  of   6.75%.    The
     Partnership's  share of the total purchase price,  including
     the cost of the land, will be approximately $714,600.  After
     the  construction is complete, the Lease Agreement  will  be
     amended  to  require annual rental payments of approximately
     $46,000.  The remaining interest in the property is owned by
     Net Lease Income & Growth Fund 84-A Limited Partnership,  an
     affiliate of the Partnership.

     In  July, 1999, the Partnership entered into an agreement to
     purchase a Marie CallenderOs restaurant in Gresham,  Oregon.
     The  purchase  price will be approximately $1,620,000.   The
     property  will be leased to Marie Callender Pie Shops,  Inc.
     under a Lease Agreement with a primary term  of 15 years and
     annual rental payments of approximately $152,000.

     During   1998  and  the  first  six  months  of  1999,   the
     Partnership  incurred net costs of $45,072  related  to  the
     review  of potential property acquisitions.  The costs  have
     been   capitalized  and  will  be  allocated   to   property
     acquisitions in future periods.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS
                           (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, 1999 and  1998,  the
Partnership  recognized rental income of $165,362  and  $269,217,
respectively.   During the same periods, the  Partnership  earned
investment income of $54,525 and $3,980, respectively.  In  1999,
rental income decreased mainly as a result of the property  sales
discussed  below.  This decrease in rental income  was  partially
offset  by rent received from one property acquired in  1998  and
additional investment income earned on the net proceeds from  the
property sales.

        During  the six months ended June 30, 1999 and 1998,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $50,413 and $49,957, 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  $11,579  and $9,229, 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, 1999, the Partnership's annualized  cash
distribution  rate  was  6.50%, 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.

       The Year 2000 issue is the result of computer systems that
use  two  digits rather than four to define the applicable  year,
which  may prevent such systems from accurately processing  dates
ending  in  the  Year  2000 and beyond.   This  could  result  in
computer  system failures or disruption of operations, including,
but not limited to, an inability to process transactions, to send
or  receive  electronic data, or to engage  in  routine  business
activities.


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

        AEI  Fund  Management, Inc. (AEI) performs all management
services  for  the  Partnership.   In  1998,  AEI  completed   an
assessment of its computer hardware and software systems and  has
replaced or upgraded certain computer hardware and software using
the  assistance  of  outside vendors.  AEI has  received  written
assurance  from  the equipment and software manufacturers  as  to
Year  2000  compliance.   The  costs associated  with  Year  2000
compliance have not been, and are not expected to be, material.

        The  Partnership intends to monitor and communicate  with
tenants regarding Year 2000 compliance, although there can be  no
assurance  that the systems of the various tenants will  be  Year
2000 compliant.

Liquidity and Capital Resources

         During   the  six  months  ended  June  30,  1999,   the
Partnership's  cash balances decreased $718,971 as  a  result  of
cash  used  to  purchase additional properties and  distributions
made in excess of cash generated from operating activities.   Net
cash provided by operating activities decreased from $224,022  in
1998  to  $162,740 in 1999 mainly as a result of  a  decrease  in
total income in 1999.

        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,  1999,  the Partnership expended $418,877 to invest  in  real
properties (inclusive of acquisition expenses) as the Partnership
reinvested the cash generated from property sales.

        On  July  31, 1998, the Partnership sold 9.1266%  of  its
interest  in  the  Tractor Supply Company store to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
$133,251 which resulted in a net gain of $44,686.  At the time of
sale,  the  cost  and  related accumulated  depreciation  of  the
interest sold was $95,494 and $6,929, respectively.

        During  the  third  and  fourth  quarters  of  1998,  the
Partnership  sold  37.3518%  of its interest  in  the  Rio  Bravo
restaurant,  in  four separate transactions, to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$585,789  which  resulted in a total net gain of  $172,422.   The
total  cost and related accumulated depreciation of the interests
sold was $660,597 and $247,230, respectively.

        On December 30, 1998, the Partnership sold the Applebee's
restaurant  in  Harlingen, Texas to the lessee.  The  Partnership
received net sales proceeds of $1,858,837 which resulted in a net
gain  of  $580,055.  At the time of sale, the  cost  and  related
accumulated  depreciation  of  the property  was  $1,393,470  and
$114,688, respectively.

        In  March, 1999, the Partnership distributed $252,525  of
the  net sale proceeds to the Limited and General Partners  which
represented a return of capital of $35.31 per Limited Partnership
Unit.   The majority of the remaining proceeds will be reinvested
in additional property.


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

        On  December  17, 1998, the Partnership purchased  a  60%
interest  in  a  parcel  of  land in  Hudsonville,  Michigan  for
$198,600.   The  land  is leased to RTM Mid-America,  Inc.  (RTM)
under  a  Lease  Agreement  with a  primary  term  of  20  years.
Simultaneously  with  the purchase of the land,  the  Partnership
entered  into a Development Financing Agreement under  which  the
Partnership will advance funds to RTM for the construction of  an
Arby's  restaurant  on  the site.  Through  June  30,  1999,  the
Partnership  had  advanced $392,671 for the construction  of  the
property  and was charging interest on the advance at a  rate  of
6.75%.   The  Partnership's share of the  total  purchase  price,
including  the cost of the land, will be approximately  $714,600.
After  the construction is complete, the Lease Agreement will  be
amended  to  require  annual  rental  payments  of  approximately
$46,000.  The remaining interest in the property is owned by  Net
Lease Income & Growth Fund 84-A Limited Partnership, an affiliate
of the Partnership.

        In  July, 1999, the Partnership entered into an agreement
to  purchase  a Marie CallenderOs restaurant in Gresham,  Oregon.
The   purchase  price  will  be  approximately  $1,620,000.   The
property will be leased to Marie Callender Pie Shops, Inc.  under
a  Lease  Agreement with a primary term  of 15 years  and  annual
rental payments of approximately $157,000.

       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.   In  the  first  six
months  of 1999, distributions were higher when compared  to  the
same period in 1998, due to the distribution of sale proceeds  in
March, 1999.

        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 1999 and 1998, the Partnership did not redeem  any
Units  from  the Limited Partners.  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 the property sales, should be  adequate
to  fund  continuing  distributions and  meet  other  Partnership
obligations on both a short-term and long-term basis.


                   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.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        a. Exhibits -
                              Description

           10.1  Sale  and  Purchase  Agreement   and
                 Escrow  Instructions dated  June  2,  1999
                 between  AEI  Fund  Management,  Inc.  and
                 Marie  Callender Pie Shops, Inc.  relating
                 to  the  property  at  305  N.E.  Burnside
                 Street, Gresham, Oregon.

           10.2  First Amendment to Sale and Purchase
                 Agreement  and  Escrow Instructions  dated
                 July  8, 1999 between AEI Fund Management,
                 Inc.  and Marie Callender Pie Shops,  Inc.
                 relating  to  the  property  at  305  N.E.
                 Burnside Street, Gresham, Oregon.

           10.3  Assignment  of  Purchase  and  Sale
                 Agreement  and  Escrow Instructions  dated
                 July  23,  1999  between the  Partnership,
                 AEI  Income  &  Growth Fund  XXII  Limited
                 Partnership and AEI Fund Management,  Inc.
                 and   Marie  Callender  Pie  Shops,   Inc.
                 relating  to  the  property  at  305  N.E.
                 Burnside Street, Gresham, Oregon.

           27    Financial Data Schedule  for  period
                 ended June 30, 1999.

        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:  July 30, 1999         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)