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:  September 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 September 30, 1999 and December 31, 1998

          Statements for the Periods ended September 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

            SEPTEMBER 30, 1999 AND DECEMBER 31, 1998

                           (Unaudited)

                             ASSETS

                                                    1999            1998

CURRENT ASSETS:
  Cash and Cash Equivalents                    $   199,208      $ 2,572,249
  Receivables                                            0           12,721
                                                -----------      -----------
          Total Current Assets                     199,208        2,584,970
                                                -----------      -----------
INVESTMENTS IN REAL ESTATE:
  Land                                           1,899,582        1,367,380
  Buildings and Equipment                        3,360,494        1,808,008
  Construction in Progress                               0           16,981
  Property Acquisition Costs                             0            1,885
  Accumulated Depreciation                        (772,856)        (731,538)
                                                -----------      -----------
      Net Investments in Real Estate             4,487,220        2,462,716
                                                -----------      -----------
          Total Assets                         $ 4,686,428      $ 5,047,686
                                                ===========      ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.         $    36,705      $    36,593
  Distributions Payable                             90,723           94,365
                                                -----------      -----------
      Total Current Liabilities                    127,428          130,958
                                                -----------      -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                 (32,509)         (28,931)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,080 outstanding                             4,591,509        4,945,659
                                                -----------      -----------
     Total Partners' Capital                     4,559,000        4,916,728
                                                -----------      -----------
      Total Liabilities and Partners' Capital  $ 4,686,428      $ 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 SEPTEMBER 30

                           (Unaudited)


                                  Three Months Ended      Nine Months Ended
                                9/30/99       9/30/98    9/30/99      9/30/98

INCOME:
   Rent                       $  86,257    $ 130,745    $ 251,619   $ 399,962
   Investment Income             25,755        4,099       80,280       8,079
                               ---------    ---------    ---------   ---------
        Total Income            112,012      134,844      331,899     408,041
                               ---------    ---------    ---------   ---------

EXPENSES:
   Partnership Administration -
    Affiliates                   23,751       21,101       74,164      71,058
   Partnership Administration
    and Property Management -
    Unrelated Parties             2,187        1,631       13,766      10,860
   Depreciation                  14,742       25,263       41,318      77,143
                               ---------    ---------    ---------   ---------
        Total Expenses           40,680       47,995      129,248     159,061
                               ---------    ---------    ---------   ---------

OPERATING INCOME                 71,332       86,849      202,651     248,980

GAIN ON SALE OF REAL ESTATE           0      130,159            0     130,159
                               ---------    ---------    ---------   ---------
NET INCOME                    $  71,332    $ 217,008    $ 202,651   $ 379,139
                               =========    =========    =========   =========

NET INCOME ALLOCATED:
   General Partners           $     713    $   2,170    $   2,026   $   3,791
   Limited Partners              70,619      214,838      200,625     375,348
                               ---------    ---------    ---------   ---------
                              $  71,332    $ 217,008    $ 202,651   $ 379,139
                               =========    =========    =========   =========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (7,080 weighted average
 Units outstanding in 1999
 and 1998)                    $    9.98    $   30.35    $   28.34   $   53.02
                               =========    =========    =========   =========


 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 SEPTEMBER 30

                           (Unaudited)

                                                     1999             1998

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                    $   202,651      $   379,139

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                     41,318           77,143
     Gain of Sale of Real Estate                           0         (130,159)
     Decrease in Receivables                          12,721                0
     Increase in Payable to
        AEI Fund Management, Inc.                        112           34,883
     Increase in Unearned Rent                             0           10,045
                                                  -----------      -----------
        Total Adjustments                             54,151           (8,088)
                                                  -----------      -----------
        Net Cash Provided By
        Operating Activities                         256,802          371,051
                                                  -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                     (2,065,822)               0
   Proceeds from Sale of Real Estate                       0          421,539
                                                  -----------      -----------
        Net Cash Provided By (Used For)
          Investing Activities                    (2,065,822)         421,539
                                                  -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase (Decrease) in Distributions Payable       (3,642)           1,473
   Distributions to Partners                        (560,379)        (315,910)
                                                  -----------      -----------
        Net Cash Used For
        Financing Activities                        (564,021)        (314,437)
                                                  -----------      -----------
NET INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS                             (2,373,041)         478,153

CASH AND CASH EQUIVALENTS, beginning of period     2,572,249          174,683
                                                  -----------      -----------
CASH AND CASH EQUIVALENTS, end of period         $   199,208      $   652,836
                                                  ===========      ===========


 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 SEPTEMBER 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                (3,159)      (312,751)    (315,910)

  Net Income                    3,791        375,348      379,139
                              ---------   -----------  -----------  ----------
BALANCE, September 30, 1998  $(35,512)   $ 4,294,231  $ 4,258,719    7,079.63
                              =========   ===========  ===========  ==========


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

  Distributions                (5,604)      (554,775)    (560,379)

  Net Income                    2,026        200,625      202,651
                              ---------   -----------  -----------  ----------
BALANCE, September 30, 1999  $(32,509)   $ 4,591,509  $ 4,559,000    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

                       SEPTEMBER 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 sales 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.   For  the  three   months   ended
     September 30, 1998, the net gain was $85,473.

     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
     were 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  and
     annual rental payments of $16,881.  Simultaneously with  the
     purchase  of  the  land,  the  Partnership  entered  into  a
     Development  Financing Agreement under which the Partnership
     advanced  funds  to RTM for the construction  of  an  Arby's
     restaurant on the site.  The Partnership charged interest on
     the  advances  at  a variable rate.  On September  3,  1999,
     after the development was completed, the Lease Agreement was
     amended  to require annual rental payments of $42,456.   The
     Partnership's   share  of  the  total   acquisition   costs,
     including  the cost of the land was $666,755.  The remaining
     interest  in  the property is owned by Net  Lease  Income  &
     Growth  Fund 84-A Limited Partnership, an affiliate  of  the
     Partnership.

     On  September  28, 1999, the Partnership purchased  a  Marie
     Callender's  restaurant in Gresham, Oregon  for  $1,616,533.
     The  property is leased to Marie Callender Pie  Shops,  Inc.
     under a Lease Agreement with a primary term of 15 years  and
     annual rental payments of $152,000.

(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 nine months ended September 30, 1999 and 1998, the
Partnership  recognized rental income of $251,619  and  $399,962,
respectively.   During the same periods, the  Partnership  earned
investment income of $80,280 and $8,079, 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 two property acquisitions  in  1998
and  1999  and  additional investment income earned  on  the  net
proceeds from the property sales.

        During the nine months ended September 30, 1999 and 1998,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated  parties of $74,164 and $71,058, 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  $13,766 and $10,860, 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  September 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.

        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.


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

Liquidity and Capital Resources

        During  the  nine months ended September  30,  1999,  the
Partnership's cash balances decreased $2,373,041 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 $371,051  in
1998  to  $256,802 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 nine  months  ended
September 30, 1998, the Partnership generated cash flow from  the
sale  of  real estate of $421,539.  During the nine months  ended
September 30, 1999, the Partnership expended $2,065,822 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 sales  proceeds  of
$133,251 which resulted in a net gain of $44,686.  The total 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.   For  the  three
months ended September 30, 1998, the net gain was $85,473.

        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 were 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  and
annual  rental  payments  of $16,881.   Simultaneously  with  the
purchase  of the land, the Partnership entered into a Development
Financing Agreement under which the Partnership advanced funds to
RTM  for  the construction of an Arby's restaurant on  the  site.
The  Partnership charged interest on the advances at  a  variable
rate.  On September 3, 1999, after the development was completed,
the Lease Agreement was amended to require annual rental payments
of  $42,456.   The  Partnership's share of the total  acquisition
costs,  including  the  cost  of  the  land  was  $666,755.   The
remaining interest in the property is owned by Net Lease Income &
Growth  Fund  84-A  Limited  Partnership,  an  affiliate  of  the
Partnership.


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

        On  September 28, 1999, the Partnership purchased a Marie
Callender's  restaurant in Gresham, Oregon for  $1,616,533.   The
property  is  leased to Marie Callender Pie Shops, Inc.  under  a
Lease Agreement with a primary term of 15 years and annual rental
payments of $152,000.

       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  nine
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 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.

                   PART II - OTHER INFORMATION
                           (Continued)

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 (incorporated  by
                reference  to Exhibit 10.1 of Form  10-QSB
                filed  with  the Commission  on  July  30,
                1999).

          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
                (incorporated  by  reference  to   Exhibit
                10.2   of  Form  10-QSB  filed  with   the
                Commission on July 30, 1999).

          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
                (incorporated  by  reference  to   Exhibit
                10.3   of  Form  10-QSB  filed  with   the
                Commission on July 30, 1999).

          10.4  First   Amendment  to   Net   Lease
                Agreement dated September 3, 1999  between
                the   Partnership,  Net  Lease  Income   &
                Growth  Fund 84-A Limited Partnership  and
                RTM,  Mid-America, Inc.  relating  to  the
                property    at    4633    32nd     Avenue,
                Hudsonville,  Michigan  (incorporated   by
                reference  to  Exhibit 10.2  of  Form  8-K
                filed with the Commission on September  9,
                1999).

          10.5  Second  Amendment  to   Net   Lease
                Agreement dated September 3, 1999  between
                the   Partnership,  Net  Lease  Income   &
                Growth  Fund 84-A Limited Partnership  and
                RTM,  Mid-America, Inc.  relating  to  the
                property    at    4633    32nd     Avenue,
                Hudsonville, Michigan.

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

       b. Reports filed on Form  8-K  -
                During  the quarter ended September
                30,  1999, the Partnership filed  a
                Form  8-K dated September 9,  1999,
                reporting  the acquisition  of  the
                Arby's  restaurant in  Hudsonville,
                Michigan.


                           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:  November 8, 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)