UNITED STATES
               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, 2002

                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, 2002 and December 31, 2001

         Statements for the Periods ended June 30, 2002 and 2001:

           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, 2002 AND DECEMBER 31, 2001

                           (Unaudited)

                             ASSETS


                                                    2002            2001

CURRENT ASSETS:
  Cash and Cash Equivalents                     $ 2,205,412     $   391,847
  Receivables                                             0          10,000
                                                 -----------     -----------
          Total Current Assets                    2,205,412         401,847
                                                 -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              922,884       1,954,142
  Buildings and Equipment                         2,006,311       3,411,231
  Accumulated Depreciation                         (451,585)       (827,392)
                                                 -----------     -----------
      Net Investments in Real Estate              2,477,610       4,537,981
                                                 -----------     -----------
          Total Assets                          $ 4,683,022     $ 4,939,828
                                                 ===========     ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    25,260     $     9,644
  Distributions Payable                           1,909,899          91,239
  Unearned Rent                                      11,298               0
                                                 -----------     -----------
      Total Current Liabilities                   1,946,457         100,883
                                                 -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                        0               0
  Limited Partners, $1,000 Unit value;
     7,500 Units authorized and issued;
     6,977 Units outstanding                      2,736,565       4,838,945
                                                 -----------     -----------
      Total Partners' Capital                     2,736,565       4,838,945
                                                 -----------     -----------
        Total Liabilities and Partners' Capital $ 4,683,022     $ 4,939,828
                                                 ===========     ===========

 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
                              6/30/02     6/30/01     6/30/02      6/30/01

INCOME:
   Rent                     $ 109,799   $ 119,001    $ 259,548    $ 246,019
   Investment Income            4,206      13,047        5,788       27,716
                             ---------   ---------    ---------    ---------
        Total Income          114,005     132,048      265,336      273,735
                             ---------   ---------    ---------    ---------

EXPENSES:
   Partnership Administration -
     Affiliates                32,326      29,742       68,512       58,473
   Partnership Administration
     and Property Management -
     Unrelated Parties         10,352      11,505       22,616       18,767
   Depreciation                21,156      19,674       47,245       40,735
                             ---------   ---------    ---------    ---------
        Total Expenses         63,834      60,921      138,373      117,975
                             ---------   ---------    ---------    ---------

OPERATING INCOME               50,171      71,127      126,963      155,760

GAIN ON SALE OF REAL ESTATE   592,844     232,031      599,292      312,850
                             ---------   ---------    ---------    ---------
NET INCOME                  $ 643,015   $ 303,158    $ 726,255    $ 468,610
                             =========   =========    =========    =========

NET INCOME ALLOCATED:
   General Partners         $  27,274   $  13,532    $  28,286    $  15,186
   Limited Partners           615,741     289,626      697,969      453,424
                             ---------   ---------    ---------    ---------
                            $ 643,015   $ 303,158    $ 726,255    $ 468,610
                             =========   =========    =========    =========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (6,977 and 7,030 weighted average Units
 outstanding in 2002 and 2001,
 respectively.)             $   88.25   $   41.20    $  100.04    $   64.50
                             =========   =========    =========    =========

 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)


                                                       2002          2001

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net  Income                                     $   726,255   $   468,610

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                       47,245        40,735
     Gain on Sale of Real Estate                      (599,292)     (312,850)
     (Increase) Decrease in Receivable                  10,000        (5,441)
     Increase in Payable to
        AEI Fund Management, Inc.                       15,616        14,878
     Increase in Unearned Rent                          11,298             0
                                                    -----------   -----------
        Total Adjustments                             (515,133)     (262,678)
                                                    -----------   -----------
        Net Cash Provided By
        Operating Activities                           211,122       205,932
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                                0      (881,281)
   Proceeds from Sale of Real Estate                 2,612,418     1,228,464
                                                    -----------   -----------
        Net Cash Provided By
        Investing Activities                         2,612,418       347,183
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                 1,818,660       151,539
   Distributions to Partners                        (2,828,635)     (353,889)
                                                    -----------   -----------
        Net Cash Used For
          Financing Activities                      (1,009,975)     (202,350)
                                                    -----------   -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS            1,813,565       350,765

CASH AND CASH EQUIVALENTS, beginning of period         391,847       941,722
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $ 2,205,412   $ 1,292,487
                                                    ===========   ===========

 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, 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
                              ========   ===========  ===========  ==========


BALANCE, December 31, 2001   $      0   $ 4,838,945  $ 4,838,945    6,976.63

  Distributions               (28,286)   (2,800,349)  (2,828,635)

  Net Income                   28,286       697,969      726,255
                              --------   -----------  -----------  ----------
BALANCE, June 30, 2002       $      0   $ 2,736,565  $ 2,736,565    6,976.63
                              ========   ===========  ===========  ==========


 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, 2002

                           (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 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, 2002
                           (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, 2002
                           (Continued)

(3)  Investments in Real Estate -

     Through  December  31, 2001, the Partnership  sold  its  80%
     interest  in  the  Tractor Supply store, in  seven  separate
     transactions,  to unrelated third parties.  The  Partnership
     received  total  net  sale  proceeds  of  $1,168,207,  which
     resulted  in  a  net gain of $451,162.  The total  cost  and
     related  accumulated depreciation of the interests sold  was
     $837,058  and  $120,013, respectively.  For the  six  months
     ended June 30, 2001, the net gain was $214,938.

     Through December 31, 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 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,  the
     net gain was $14,115.

     Through June 30, 2002, the Partnership sold 56.9743% of  the
     Marie Callender's restaurant, in five separate transactions,
     to  unrelated third parties.  The Partnership received total
     net  sale  proceeds of $1,052,098, which resulted in  a  net
     gain  of  $173,479.  The total cost and related  accumulated
     depreciation of the interests sold was $921,008 and $42,389,
     respectively.  For the six months ended June  30,  2002  and
     2001, the net gain was $59,017 and $83,797, respectively.

     Subsequent  to  June  30,  2002,  the  Partnership  sold  an
     additional  20.6743% of the Marie Callender's restaurant  to
     an unrelated third party.  The Partnership received net sale
     proceeds of approximately $373,000, which resulted in a  net
     gain of approximately $60,000.

     On  June 17, 2002, the Partnership sold the Hops Grill & Bar
     restaurant  to  an unrelated third party.   The  Partnership
     received net sale proceeds of $1,062,953, which resulted  in
     a  net gain of $360,381.  At the time of sale, the cost  and
     related   accumulated  depreciation  were   $1,094,373   and
     $391,801, respectively.

     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  advanced
     funds  to  KRG  for  the construction of a  Johnny  Carino's
     restaurant on the site.  The Partnership charged interest on
     the  advances  at a rate of 10.5%.  On September  26,  2001,
     after the development was completed, the Lease Agreement was
     amended  to require annual rental payments of $79,452.   The
     Partnership's   share  of  the  total   acquisition   costs,
     including the cost of the land, was $749,586.  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.

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2002
                           (Continued)

(3)  Investments in Real Estate - (Continued)

     In  May, 2002, the Partnership sold its 33% interest in  the
     Johnny  Carino's restaurant, in three separate transactions,
     to  unrelated third parties.  The Partnership received total
     net  sale proceeds of $857,972, which resulted in a net gain
     of   $116,170.   The  total  cost  and  related  accumulated
     depreciation of the interests sold was $749,587 and  $7,785,
     respectively.

     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.

     On  April  5,  2002, the Partnership sold  12.4047%  of  the
     Children's  World daycare center in Plainfield, Illinois  to
     an unrelated third party.  The Partnership received net sale
     proceeds  of  $223,593, which resulted  in  a  net  gain  of
     $44,730.   The cost and related accumulated depreciation  of
     the interest sold was $182,685 and $3,822, respectively.

     Subsequent  to  June  30,  2002,  the  Partnership  sold  an
     additional 7.5953% of the Children's World daycare center in
     Plainfield,  Illinois  to  an unrelated  third  party.   The
     Partnership  received  net  sale proceeds  of  approximately
     $135,000,  which  resulted in a net  gain  of  approximately
     $26,000.

     On  October  25,  2001,  the  Partnership  purchased  a  57%
     interest  in  a  Children's World  daycare  center  in  West
     Bridgewater, Massachusetts for $1,058,890.  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 $99,481.  The remaining interest in the property
     is  owned by AEI Fund Management XVII, Inc., an affiliate of
     the Partnership.

     On  June  26,  2002,  the Partnership sold  4.8062%  of  the
     Children's   World  daycare  center  in  West   Bridgewater,
     Massachusetts to an unrelated third party.  The  Partnership
     received net sale proceeds of $106,531, which resulted in  a
     net  gain  of  $18,994.   The cost and  related  accumulated
     depreciation  of the interest sold was $89,285  and  $1,748,
     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.  In April and June, 2002, the Partnership
     distributed $808,081 and $1,818,182 of the net sale proceeds
     to  the  Limited  and General Partners which  represented  a
     return  of  capital  of  $114.67  and  $258.00  per  Limited
     Partnership  Unit,  respectively.  The  remaining  net  sale
     proceeds will be distributed to the Partners in the future.

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                          JUNE 30, 2002
                           (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

        The 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 the Partners;

    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.


Critical Accounting Policies


        The preparation of the Partnership's financial statements
requires  management to make estimates and assumptions  that  may
affect the reported amounts of assets, liabilities, revenues  and
expenses,  and  related  disclosure  of  contingent  assets   and
liabilities. Management evaluates these estimates on  an  ongoing
basis,  including  those related to the carrying  value  of  real
estate  and  the  allocation  by AEI  Fund  Management,  Inc.  of
expenses  to  the  Partnership as opposed  to  other  funds  they
manage.

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

        The Partnership purchases properties and records them  in
the  financial  statements  at the lower  of  cost  or  estimated
realizable   value.   The  Partnership  initially   records   the
properties  at cost (including capitalized acquisition expenses).
The Partnership is required to periodically evaluate the carrying
value  of properties to determine whether their realizable  value
has  declined.   For  properties the Partnership  will  hold  and
operate, management determines whether impairment has occurred by
comparing the property's probability-weighted cash flows  to  its
current carrying value.  For properties held for sale, management
determines  whether  impairment has  occurred  by  comparing  the
property's estimated fair value less cost to sell to its  current
carrying  value.   If  the carrying value  is  greater  than  the
realizable  value, an impairment loss is recorded to  reduce  the
carrying value of the property to its realizable value.  A change
in  these assumptions or analysis could cause material changes in
the carrying value of the properties.

       AEI Fund Management Inc. allocates expenses to each of the
funds  they manage primarily on the basis of the number of  hours
devoted  by  their employees to each fund's affairs.   They  also
allocate  some  expenses at the end of each month  that  are  not
directly related to a fund's operations based upon the number  of
investors  in the fund and the fund's capitalization relative  to
other  funds  they  manage.   The  Partnership  reimburses  these
expenses  subject  to  detailed  limitations  contained  in   the
Partnership Agreement.

Results of Operations

        For  the  six  months ended June 30, 2002 and  2001,  the
Partnership  recognized rental income of $259,548  and  $246,019,
respectively.   During the same periods, the  Partnership  earned
investment income of $5,788 and $27,716, respectively.  In  2002,
rental  income  increased mainly as a result of  additional  rent
received from three property acquisitions in 2001.  This increase
in  rental  income was partially offset by a decrease  in  rental
income  due to property sales and a decrease in investment income
due  to  the  Partnership  receiving less  interest  income  from
construction  advances and lower money market interest  rates  in
2002.

        During  the six months ended June 30, 2002 and 2001,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $68,512 and $58,473, 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  $22,616 and $18,767, 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, 2002, the Partnership's annualized  cash
distribution  rate  was  6.7%,  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
were  allocated  to  Limited  Partners  and  1%  to  the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   Leases  may contain rent increases,  based  on  the
increase  in  the  Consumer Price Index over a specified  period,
which  will result in an increase in rental income over the  term
of  the  leases.   In addition, leases may contain  rent  clauses
which  entitle  the  Partnership to receive  additional  rent  in
future  years  if gross receipts for the property exceed  certain
specified  amounts.  Increases in sales volumes of  the  tenants,
due to inflation and real sales growth, may result in an increase
in rental income over the term of the leases.  Inflation also may
cause the real estate to appreciate in value.  However, inflation
and  changing prices may have an adverse impact on the  operating
margins  of  the  properties' tenants, which could  impair  their
ability  to  pay rent and subsequently reduce the 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,  2002,   the
Partnership's cash balances increased $1,813,565 as a  result  of
cash  generated  from the sale of property, which  was  partially
offset  by distributions of sales proceeds to the Partners.   Net
cash provided by operating activities increased from $205,932  in
2001  to  $211,122 in 2002 due to net timing differences  in  the
collection  of  payments  from the lessees  and  the  payment  of
expenses, which were partially offset by a decrease in income and
an increase in Partnership administration expenses in 2002.

        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,  2002 and 2001, the Partnership generated cash flow from  the
sale  of  real estate of $2,612,418 and $1,228,464, 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   cash
generated from property sales.

        Through December 31, 2001, the Partnership sold  its  80%
interest   in  the  Tractor  Supply  store,  in  seven   separate
transactions,  to  unrelated  third  parties.   The   Partnership
received total net sale proceeds of $1,168,207, which resulted in
a  net  gain of $451,162.  The total cost and related accumulated
depreciation  of  the interests sold was $837,058  and  $120,013,
respectively.   For the six months ended June 30, 2001,  the  net
gain was $214,938.

        Through  December 31, 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 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, the net gain was $14,115.

        Through  June 30, 2002, the Partnership sold 56.9743%  of
the  Marie Callender's restaurant, in five separate transactions,
to  unrelated third parties.  The Partnership received total  net
sale  proceeds  of $1,052,098, which resulted in a  net  gain  of
$173,479.  The total cost and related accumulated depreciation of
the  interests sold was $921,008 and $42,389, respectively.   For
the  six  months ended June 30, 2002 and 2001, the net  gain  was
$59,017 and $83,797, respectively.

        Subsequent  to  June  30, 2002, the Partnership  sold  an
additional  20.6743% of the Marie Callender's  restaurant  to  an
unrelated  third  party.   The  Partnership  received  net   sale
proceeds of approximately $373,000, which resulted in a net  gain
of approximately $60,000.

        On  June 17, 2002, the Partnership sold the Hops Grill  &
Bar  restaurant  to  an unrelated third party.   The  Partnership
received net sale proceeds of $1,062,953, which resulted in a net
gain  of  $360,381.  At the time of sale, the  cost  and  related
accumulated   depreciation   were   $1,094,373   and    $391,801,
respectively.

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

       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 advanced funds to  KRG  for
the  construction of a Johnny Carino's restaurant  on  the  site.
The  Partnership charged interest on the advances at  a  rate  of
10.5%.   On  September  26,  2001,  after  the  development   was
completed,  the  Lease Agreement was amended  to  require  annual
rental payments of $79,452.  The Partnership's share of the total
acquisition costs, including the cost of the land, was  $749,586.
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.

       In May, 2002, the Partnership sold its 33% interest in the
Johnny  Carino's  restaurant, in three separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of $857,972, which resulted in a net gain of  $116,170.
The  total  cost  and  related accumulated  depreciation  of  the
interests sold was $749,587 and $7,785, respectively.

        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.

        On  April 5, 2002, the Partnership sold 12.4047%  of  the
Children's  World daycare center in Plainfield,  Illinois  to  an
unrelated  third  party.   The  Partnership  received  net   sale
proceeds  of  $223,593, which resulted in a net gain of  $44,730.
The  cost  and  related accumulated depreciation of the  interest
sold was $182,685 and $3,822, respectively.

        Subsequent  to  June  30, 2002, the Partnership  sold  an
additional  7.5953%  of the Children's World  daycare  center  in
Plainfield,   Illinois  to  an  unrelated   third   party.    The
Partnership received net sale proceeds of approximately $135,000,
which resulted in a net gain of approximately $26,000.

       On  October  25,  2001, the Partnership  purchased  a  57%
interest   in   a  Children's  World  daycare  center   in   West
Bridgewater,  Massachusetts  for  $1,058,890.   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 $99,481.  The remaining interest in the property  is
owned  by  AEI  Fund Management XVII, Inc., an affiliate  of  the
Partnership.

       On  June  26,  2002, the Partnership sold 4.8062%  of  the
Children's    World   daycare   center   in   West   Bridgewater,
Massachusetts  to  an  unrelated third  party.   The  Partnership
received net sale proceeds of $106,531, which resulted in  a  net
gain  of  $18,994.  The cost and related accumulated depreciation
of the interest sold was $89,285 and $1,748, respectively.

       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.

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

        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.   In  April  and  June, 2002, the  Partnership  distributed
$808,081  and $1,818,182 of the net sale proceeds to the  Limited
and  General  Partners which represented a return of  capital  of
$114.67  and  $258.00 per Limited Partnership Unit, respectively.
The  remaining  net  sale proceeds will  be  distributed  to  the
Partners in the future.

        The  Partnership may acquire 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 2001, five Limited Partners redeemed a total of 53
Partnership  Units for $14,391 in accordance with the Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years, a  total  of  fifty-four
Limited  Partners redeemed 470.37 Partnership Units for $331,522.
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  Purchase  Agreement dated April 12,  2002  between  the
            Partnership   and   the  Charles  and  Judith  Westfahl
            Community Trust relating to the property at 5601 Brodie
            Lane,  Austin, Texas.

      10.2  Purchase  Agreement  dated  May  6,  2002  between  the
            Partnership and Schmitz Development Company relating to
            the property at  33086  U.S. Highway 19,  Palm  Harbor,
            Florida  (incorporated by reference to Exhibit 10.1  of
            Form 8-K  filed on June 17, 2002).

      99.1  Certification  of Chief Executive  Officer  of  General
            Partner  pursuant to Section 906 of the  Sarbanes-Oxley
            Act  of 2002.

      99.2  Certification  of Chief Financial  Officer  of  General
            Partner pursuant to Section 906 of  the  Sarbanes-Oxley
            Act of 2002.

       b.  Reports filed on Form 8-K  -
                   During  the  quarter ended  June  30,
                   2002, the Partnership filed a Form 8-
                   K  dated June 17, 2002 reporting  the
                   sale  of the Hops restaurant in  Palm
                   Harbor, Florida.


                           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 6, 2002        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)