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, 2001

                Commission file number:  0-14263


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


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


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

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


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

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

                        Yes  [X]   No

         Transitional Small Business Disclosure Format:

                        Yes        No  [X]




          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP


                              INDEX




PART I.Financial Information

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

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

           Income

           Cash Flows

           Changes in Partners' Capital

        Notes to Financial Statements

Item 2. Management's Discussion and Analysis

PART II.Other Information

Item 1. Legal Proceedings

Item 2. Changes in Securities

Item 3. Defaults Upon Senior Securities

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

Item 5. Other Information

Item 6. Exhibits and Reports on Form 8-K


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

                          BALANCE SHEET

            SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

                           (Unaudited)

                             ASSETS

                                                     2001           2000

CURRENT ASSETS:
  Cash and Cash Equivalents                      $ 1,231,052    $   941,722
  Receivables                                              0         10,000
                                                  -----------    -----------
          Total Current Assets                     1,231,052        951,722
                                                  -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                             1,894,033      1,722,667
  Buildings and Equipment                          2,628,666      2,918,857
  Accumulated Depreciation                          (816,813)      (870,519)
                                                  -----------    -----------
      Net Investments in Real Estate               3,705,886      3,771,005
                                                  -----------    -----------
          Total Assets                           $ 4,936,938    $ 4,722,727
                                                  ===========    ===========


                     LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
   Payable  to AEI Fund Management, Inc.         $    20,316    $    14,654
   Distributions Payable                              91,267         91,219
   Unearned Rent                                      17,920              0
                                                  -----------    -----------
      Total Current Liabilities                      129,503        105,873
                                                  -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                   (10,024)       (31,930)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,030 outstanding                               4,817,459      4,648,784
                                                  -----------    -----------
     Total Partners' Capital                       4,807,435      4,616,854
                                                  -----------    -----------
       Total Liabilities and Partners' Capital   $ 4,936,938    $ 4,722,727
                                                  ===========    ===========


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

                       STATEMENT OF INCOME

               FOR THE PERIODS ENDED SEPTEMBER 30

                           (Unaudited)


                                Three Months Ended       Nine Months Ended
                               9/30/01       9/30/00     9/30/01     9/30/00

INCOME:
   Rent                       $ 109,264    $ 131,965    $ 355,283   $ 402,555
   Investment Income             16,795        4,144       44,511       9,988
                               ---------    ---------    ---------   ---------
        Total Income            126,059      136,109      399,794     412,543
                               ---------    ---------    ---------   ---------

EXPENSES:
   Partnership Administration -
     Affiliates                  35,070       29,019       93,543      78,612
   Partnership Administration
     and Property Management -
     Unrelated Parties            5,766        3,088       24,533      14,307
   Depreciation                  17,251       26,316       57,986      79,461
                               ---------    ---------    ---------   ---------
        Total Expenses           58,087       58,423      176,062     172,380
                               ---------    ---------    ---------   ---------

OPERATING INCOME                 67,972       77,686      223,732     240,163

GAIN ON SALE OF REAL ESTATE     109,075            0      421,925       5,189
                               ---------    ---------    ---------   ---------
NET INCOME                    $ 177,047    $  77,686    $ 645,657   $ 245,352
                               =========    =========    =========   =========

NET INCOME ALLOCATED:
   General Partners           $  11,271    $     777    $  26,457   $   2,454
   Limited Partners             165,776       76,909      619,200     242,898
                               ---------    ---------    ---------   ---------
                              $ 177,047    $  77,686    $ 645,657   $ 245,352
                               =========    =========    =========   =========

NET INCOME PER
 LIMITED PARTNERSHIP UNIT
 (7,030 and 7,080 weighted average
 Units outstanding in 2001 and 2000,
 respectively.)               $   23.58    $   10.86    $   88.08   $   34.31
                               =========    =========    =========   =========


 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)

                                                        2001          2000

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                       $   645,657   $   245,352

   Adjustments to Reconcile Net Income to Net Cash
   Provided by Operating Activities:
     Depreciation                                        57,986        79,461
     Gain on Sale of Real Estate                       (421,925)       (5,189)
     Decrease in Receivables                             10,000        10,000
     Increase in Payable to
        AEI Fund Management, Inc.                         5,662        11,685
     Increase in Unearned Rent                           17,920         7,059
                                                     -----------   -----------
        Total Adjustments                              (330,357)      103,016
                                                     -----------   -----------
        Net Cash Provided By
        Operating Activities                            315,300       348,368
                                                     -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Investments in Real Estate                        (1,043,381)            0
   Proceeds from Sale of Real Estate                  1,472,439        64,098
                                                     -----------   -----------
        Net Cash Provided By
        Investing Activities                            429,058        64,098
                                                     -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Increase in Distributions Payable                         48            94
   Distributions to Partners                           (455,076)     (303,560)
                                                     -----------   -----------
        Net Cash Used For
        Financing Activities                           (455,028)     (303,466)
                                                     -----------   -----------
NET INCREASE IN CASH
   AND CASH EQUIVALENTS                                 289,330       109,000

CASH AND CASH EQUIVALENTS, beginning of period          941,722       180,855
                                                     -----------   -----------
CASH AND CASH EQUIVALENTS, end of period            $ 1,231,052   $   289,855
                                                     ===========   ===========


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

  Distributions               (3,035)     (300,525)    (303,560)

  Net Income                   2,454       242,898      245,352
                             ---------   ----------   ----------   ----------
BALANCE, September 30, 2000 $(33,156)   $4,527,394   $4,494,238     7,079.63
                             =========   ==========   ==========   ==========


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

  Distributions               (4,551)     (450,525)    (455,076)

  Net Income                  26,457       619,200      645,657
                             ---------   ----------   ----------   ----------
BALANCE, September 30, 2001 $(10,024)   $4,817,459   $4,807,435     7,029.63
                             =========   ==========   ==========   ==========


 The accompanying Notes to Financial Statements are an integral
                     part of this statement.
</PAGE>
<PAGE>

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001

                           (Unaudited)


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

(2)  Organization -

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

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

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


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001

                           (Continued)

(2)  Organization - (Continued)

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

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

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

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

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001

                           (Continued)

(3)  Investments in Real Estate -

     Through September 30, 2001, the Partnership sold 77.3883% of
     the  Tractor Supply store, in six separate transactions,  to
     unrelated third parties.  The Partnership received total net
     sale  proceeds of $1,130,628, which resulted in a total  net
     gain  of  $436,272.  The total cost and related  accumulated
     depreciation   of  the  interests  sold  was  $809,731   and
     $115,375, respectively.  For the nine months ended September
     30, 2001, the net gain was $324,013.

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

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

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

     On  March  8, 2001, the Partnership purchased a 33% interest
     in a parcel of land in Austin, Texas for $373,560.  The land
     is leased to Kona Restaurant Group, Inc. (KRG) under a Lease
     Agreement with a primary term of 17 years and annual  rental
     payments  of  $39,224.  Simultaneously with the purchase  of
     the   land,  the  Partnership  entered  into  a  Development
     Financing  Agreement  under which the  Partnership  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 $748,839.  The remaining
     interests in the property are owned by AEI Net Lease  Income
     &  Growth  Fund XX Limited Partnership, AEI Income &  Growth
     Fund XXI Limited Partnership and AEI Income & Growth Fund 23
     LLC, affiliates of the Partnership.

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

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                       SEPTEMBER 30, 2001

                           (Continued)

(3)  Investments in Real Estate - (Continued)

     On  October  25,  2001,  the  Partnership  purchased  a  57%
     interest   in   a   Children's  World  daycare   center   in
     Bridgewater,  Massachusetts  for  approximately  $1,050,000.
     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  $99,480.   The  remaining
     interest  in  the  property is owned by AEI Fund  Management
     XVII, Inc., an affiliate of the Partnership.

(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, 2001 and 2000, the
Partnership  recognized rental income of $355,283  and  $402,555,
respectively.   During the same periods, the  Partnership  earned
investment income of $44,511 and $9,988, respectively.  In  2001,
rental  income  decreased  due to the  property  sales  discussed
below.   This decrease in rental income was partially  offset  by
rent  received  from two property acquisitions in 2001  and  rent
increases  on  two  properties.  In 2001,  additional  investment
income was earned on the net proceeds from property sales.

        During the nine months ended September 30, 2001 and 2000,
the  Partnership  paid  Partnership  administration  expenses  to
affiliated  parties of $93,543 and $78,612, 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  $24,533 and $14,307, 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, 2001, 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 and
income  were allocated to Limited Partners and 1% to the  General
Partners.


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

        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.

Liquidity and Capital Resources

        During  the  nine months ended September  30,  2001,  the
Partnership's cash balances increased $289,330 mainly as a result
of  cash  generated from the sale of property which was partially
offset  by cash used to purchase property.  Net cash provided  by
operating activities decreased from $348,368 in 2000 to  $315,300
in  2001  due  to  a  decrease  in  income  and  an  increase  in
Partnership administration expenses in 2001, which were partially
offset  by  net timing differences in the collection of  payments
from the lessees and the payment of expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale  of  real estate.  During the nine  months  ended
September 30, 2001 and 2000, the Partnership generated cash  flow
from   the  sale  of  real  estate  of  $1,472,439  and  $64,098,
respectively.  During the nine months ended September  30,  2001,
the  Partnership expended $1,043,381 to invest in real properties
(inclusive of acquisition expenses) as the Partnership reinvested
the cash generated from property sales.

        Through September 30, 2001, the Partnership sold 77.3883%
of  the  Tractor  Supply store, in six separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $1,130,628, which resulted in a total net  gain  of
$436,272.  The total cost and related accumulated depreciation of
the  interests sold was $809,731 and $115,375, respectively.  For
the  nine  months  ended September 30, 2001,  the  net  gain  was
$324,013.

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

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

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

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  $748,839.
The  remaining  interests in the property are owned  by  AEI  Net
Lease  Income & Growth Fund XX Limited Partnership, AEI Income  &
Growth Fund XXI Limited Partnership and AEI Income & Growth  Fund
23 LLC, affiliates of the Partnership.

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

       On  October  25,  2001, the Partnership  purchased  a  57%
interest  in  a  Children's World daycare center in  Bridgewater,
Massachusetts  for  approximately $1,050,000.   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 $99,480.  The remaining interest in the property  is
owned  by  AEI  Fund Management XVII, Inc., an affiliate  of  the
Partnership.

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

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

       On October 1, 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.


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

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

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

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

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

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

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

    the effect of tenant defaults; and

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


                   PART II - OTHER INFORMATION

ITEM 1.LEGAL PROCEEDINGS

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

ITEM 2.CHANGES IN SECURITIES

      None.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

      None.

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

       None.

ITEM 5.OTHER INFORMATION

      None.

                   PART II - OTHER INFORMATION
                           (Continued)

ITEM 6.EXHIBITS AND REPORTS ON FORM 8-K

       a. Exhibits -
                             Description

       10.1    Purchase  Agreement dated August 14, 2001  between  the
               Partnership and Munkberg Farms Inc. relating to the  property
               at 1800 Lamar Alexander Parkway, Maryville, Tennessee.

       10.2    First Amendment to Net Lease Agreement dated  September
               26, 2001 between the Partnership, AEI Net Lease Income &
               Growth Fund XX Limited Partnership, AEI Income & Growth Fund
               23 LLC, AEI Income & Growth Fund XXI Limited Partnership and
               Kona  Restaurant Group, Inc. relating to the property at 5601
               Brodie Lane, Austin, Texas.

       10.3    Assignment of Purchase and Sale Agreement dated October
               2, 2001 between the Partnership and AEI  Fund  Management,
               Inc. relating to the property at 393 West  Center  Street,
               Bridgewater, Massachusetts.

       10.4    Net Lease Agreement dated September 27, 2000  between
               NNN-CW, L.P. and ARAMARK Educational Resources,  Inc.
               relating  to the  property at 393 West Center Street,
               Bridgewater, Massachusetts.

       10.5    Assignment  and Assumption of Lease dated  October  25,
               2001 between the Partnership, AEI Fund Management XVII, Inc.
               and NNN-CW, L.P. relating to the property at 393 West Center
               Street, Bridgewater, Massachusetts.

       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:  October 26, 2001      AEI Real Estate Fund 85-A
                              Limited Partnership
                              By: Net Lease Management  85-A, Inc.
                              Its: Managing General Partner



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



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