SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549

                           FORM 10-KSB

             Annual Report Under Section 13 or 15(d)
             Of The Securities Exchange Act Of 1934

          For the Fiscal Year Ended:  December 31, 2000

                Commission file number:  0-14263

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
         (Name of Small Business Issuer 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)

Securities registered pursuant to Section 12(b) of the Act:

                                 Name of each exchange on
     Title of each class             which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:

                      Limited Partnership Units
                           (Title of class)

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 past 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

Check if disclosure of delinquent filers in response to Rule  405
of  Regulation  S-B  is  not  contained  in  this  Form,  and  no
disclosure  will  be contained, to the best of  the  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form 10-KSB or  any
amendment to this Form 10.KSB.  [X]

The  Issuer's  revenues  for year ended December  31,  2000  were
$557,411.

As  of  February 28, 2001, there were 7,015.128 Units of  limited
partnership interest in the registrant outstanding and  owned  by
nonaffiliates  of  the registrant, which Units had  an  aggregate
market  value (based solely on the price at which they were  sold
since there is no ready market for such Units) of $7,015,128.

               DOCUMENTS INCORPORATED BY REFERENCE

 The registrant has not incorporated any documents by reference
                        into this report.

         Transitional Small Business Disclosure Format:

                         Yes         No  [X]

                             PART I

ITEM 1.   DESCRIPTION OF BUSINESS.

        AEI  Real  Estate  Fund  85-A  Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of Minnesota  on
April  15,  1985.   The  registrant is  comprised  of  Net  Lease
Management  85-A, Inc. (NLM) as Managing General Partner,  Robert
P.  Johnson as the Individual General Partner, and purchasers  of
partnership  units as Limited Partners.  The Partnership  offered
for  sale up to $7,500,000 of limited partnership interests  (the
"Units")  (7,500  Units  at  $1,000  per  Unit)  pursuant  to   a
registration   statement  effective  February   8,   1985.    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  June  20,
1985  when  the  maximum  subscription  limit  of  7,500  Limited
Partnership Units ($7,500,000) was reached.

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States, to lease such properties
to  tenants under triple net leases, to hold such properties  and
to  eventually sell such properties.  From subscription proceeds,
the  Partnership  purchased eight properties,  including  partial
interests in two properties, totaling $6,103,065.  The balance of
the   subscription  proceeds  was  applied  to  organization  and
syndication  costs,  working capital reserves and  distributions,
which  represented a return of capital.  The properties  are  all
commercial,  single  tenant buildings  leased  under  triple  net
leases.

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.  Prior to commencing the liquidation of the Partnership,
the  General Partners may reinvest the proceeds from the sale  of
properties  in  additional properties, provided  that  sufficient
proceeds  are distributed to the Limited Partners to pay  federal
and state income taxes related to any taxable gain recognized  as
a  result  of  the  sale.   At  any time  prior  to  selling  the
properties,  the  Partnership may mortgage one  or  more  of  its
properties in amounts not exceeding 50% of the fair market  value
of the property.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants  under  triple  net  leases,  which  are  classified   as
operating  leases.   Under  a triple net  lease,  the  lessee  is
responsible  for  all real estate taxes, insurance,  maintenance,
repairs  and  operating expenses for the property.   The  initial
lease  terms are for 5 to 20 years.  The leases provide for  base
annual  rental  payments,  payable in monthly  installments,  and
contain  rent  clauses which entitle the Partnership  to  receive
additional rent in future years based on stated rent increases or
if  gross  receipts  for  the property exceed  certain  specified
amounts, among other conditions.  The leases provide for  one  to
four  five-year  renewal options subject to the  same  terms  and
conditions as the initial lease.

       During 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.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        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.

        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.

        Through  December 31, 2000, the Partnership sold 21.8651%
of  the  Tractor  Supply store, in two separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $315,587, which resulted in a  total  net  gain  of
$112,259.  The total cost and related accumulated depreciation of
the  interests sold was $228,780 and $25,452, respectively.   For
the  years  ended December 31, 2000 and 1998, the  net  gain  was
$67,573 and $44,686, respectively.

        Subsequent to December 31, 2000, the Partnership sold  an
additional  12.5502% of the Tractor Supply store to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $178,000,  which  resulted  in  a  net   gain   of
approximately $66,000.

        During 2000, the Partnership sold 43.6681% of the  Arby's
restaurant,  in  two  separate transactions, to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$550,092,  which  resulted in a total net gain of  $79,526.   The
total  cost and related accumulated depreciation of the interests
sold was $485,266 and $14,700, respectively.

        Subsequent to December 31, 2000, the Partnership sold  an
additional  15.3098%  of the Arby's restaurant  to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $177,000,  which  resulted  in  a  net   gain   of
approximately $13,000.

Major Tenants

        During  2000,  four  of  the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental  revenue.  The major tenants in aggregate contributed  89%
of  the  Partnership's  total rental  revenue  in  2000.   It  is
anticipated  that, based on the minimum rental payments  required
under  the  leases, each major tenant will continue to contribute
more  than ten percent of the Partnership's total rental  revenue
in  2001 and future years.  Any failure of these major tenants or
business  concepts could materially affect the Partnership's  net
income and cash distributions.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of NLM.

ITEM 2.   DESCRIPTION OF PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States that offer the potential for (i) preservation  and
protection  of  the  Partnership's capital; (ii)  partially  tax-
deferred  cash distributions from operations which  may  increase
through  rent  participation clauses or mandated rent  increases;
and  (iii) long-term capital gains through appreciation in  value
of   the  Partnership's  properties  realized  upon  sale.    The
Partnership  does not have a policy, and there is no  limitation,
as  to the amount or percentage of assets that may be invested in
any  one  property.  However, to the extent possible, the General
Partners  attempt  to  diversify the type  and  location  of  the
Partnership's properties.

Description of Properties

        The  Partnership's properties are all commercial,  single
tenant  buildings.  All the properties were acquired on  a  debt-
free  basis  and are leased to various tenants under  triple  net
leases, which are classified as operating leases. The Partnership
holds an undivided fee simple interest in the properties.  At any
time  prior  to  selling  the  properties,  the  Partnership  may
mortgage  one or more of its properties in amounts not  exceeding
50% of the fair market value of the property.

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 2000.

                            Total Property                Annual     Annual
                Purchase     Acquisition                  Lease      Rent Per
Property          Date          Costs        Lessee       Payment    Sq. Ft.

Rio Bravo Restaurant                      Innovative
 St. Paul, MN                             Restaurant
 (7.6482%)      12/13/85    $  135,265   Concepts, Inc.   $ 11,168    $12.81

Jack-In-The-Box Restaurant                   CKE
 Fort Worth, TX 12/19/85    $1,005,586  Restaurants, Inc. $135,582    $34.71

Hops Grill & Bar Restaurant              Hops Grill
 Palm Harbor, FL 3/21/86    $1,094,373   & Bar, Inc.      $ 90,902    $17.73

Tractor Supply
Company Store
 Maryville, TN                          Tractor Supply
 (58.1349%)      2/14/96    $  608,278  Company, Inc.     $ 69,483    $ 6.27

Arby's Restaurant
 Hudsonville, MI                              RTM
 (16.3319%)       9/3/99    $  181,489  Mid-America, Inc. $ 16,001    $29.64

Marie Callender's Restaurant            Marie Callender
 Gresham, OR     9/28/99    $1,616,533  Pie Shops, Inc.   $152,000    $25.92


        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the Partnership  and/or
unrelated third parties.  The remaining interests in the  Tractor
Supply Company store are owned by AEI Real Estate Fund XV Limited
Partnership and unrelated third parties. The remaining  interests
in  the  Rio Bravo and Arby's restaurants are owned by  unrelated
third parties.

        The Partnership accounts for properties owned as tenants-
in-common  with  affiliated Partnerships and/or  unrelated  third
parties  using  the  proportionate  consolidation  method.   Each
tenant-in-common  owns  a  separate, undivided  interest  in  the
properties.   Any  tenant-in-common that holds more  than  a  50%
interest  does  not control decisions over the  other  tenant-in-
common  interests.   The financial statements reflect  only  this
Partnership's percentage share of the properties' land,  building
and equipment, liabilities, revenues and expenses.

        The initial Lease terms are for 20 years, except for  the
Hops  Grill & Bar restaurant which is 5 years, the Tractor Supply
Company  store  which  is  14  years and  the  Marie  Callender's
restaurant  which is 15 years.  The Leases have  renewal  options
which may extend the Lease term an additional 5 to 20 years.  The
Hops Grill & Bar Lease has been extended to April 30, 2002.

       Pursuant to the Lease Agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The General Partners believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Partnership's operations.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

         For  tax  purposes,  the  Partnership's  properties  are
depreciated  under  either the Accelerated Cost  Recovery  System
(ACRS)  or the Modified Accelerated Cost Recovery System (MACRS),
depending on the date when it was placed in service.  The largest
depreciable  component  of a property is the  building  which  is
depreciated, using the straight-line method, over either 19 years
(ACRS)  or 31.5 years or 40 years (MACRS) depending on  the  date
when  it  was  placed  in  service.   The  remaining  depreciable
components  of  a  property  are  personal  property   and   land
improvements which are depreciated, using an accelerated  method,
over 5 and 15 years, respectively.  Since the Partnership has tax-
exempt  Partners,  the Partnership is subject  to  the  rules  of
Section  168(h)(6) of the Internal Revenue Code which requires  a
percentage  of  the  properties'  depreciable  components  to  be
depreciated over longer lives using the straight-line method.  In
general,  the  federal  tax  basis  of  the  properties  for  tax
depreciation  purposes  is  the  same  as  the  basis  for   book
depreciation purposes.

        During the last five years or since the date of purchase,
if purchased after December 31, 1995, all properties listed above
were 100% occupied.

ITEM 3.   LEGAL PROCEEDINGS.

       None.

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

       None.


                             PART II

ITEM 5.   MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
          RELATED SECURITY HOLDER MATTERS.

        As of December 31, 2000, there were 693 holders of record
of the registrant's Limited Partnership Units.  There is no other
class  of  security outstanding or authorized.  The  registrant's
Units  are  not  a traded security in any market.   However,  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 2000, one Limited Partner redeemed a total  of  50
Partnership  Units for $16,201 in accordance with the Partnership
Agreement.   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.

        Cash distributions of $4,211 and $6,616 were made to  the
General  Partners  and $400,700 and $654,950  were  made  to  the
Limited   Partners   in   2000  and  1999,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,  the  Partnership distributed $250,000  of  proceeds  from
property  sales in 1999.  The distributions reduced  the  Limited
Partners' Adjusted Capital Contributions.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.

Results of Operations

        For  the  years  ended December 31, 2000  and  1999,  the
Partnership  recognized rental income of $538,672  and  $389,612,
respectively.   During the same periods, the  Partnership  earned
investment income of $18,739 and $82,364, respectively.  In 2000,
rental  income  increased mainly as a result of  additional  rent
received from two property acquisitions in 1999.  The increase in
rental  income  was partially offset by a decrease in  investment
income  earned on the net sale proceeds prior to the purchase  of
the additional properties.

        During  the years ended December 31, 2000 and  1999,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $100,933 and $94,134, 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  $13,847 and $12,564, 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 December 31, 2000, the Partnership's annualized cash
distribution  rate  was  6.5%,  based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

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

Liquidity and Capital Resources

        During  2000,  the Partnership's cash balances  increased
$760,867  as  a  result of cash generated  from  the  sale  of  a
property  and  the  Partnership  distributed  less  cash  to  the
Partners  than it generated from operating activities.  Net  cash
provided by operating activities increased from $339,635 in  1999
to  $449,056 in 2000 due to an increase in income in 2000 and net
timing differences in the collection of payments from the lessees
and the payment of expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from the sale of real estate.  During the year ended December 31,
2000,  the Partnership generated cash flow from the sale of  real
estate of $732,428.  During the year ended December 31, 1999, the
Partnership  expended  $2,065,822 to invest  in  real  properties
(inclusive of acquisition expenses) as the Partnership reinvested
cash generated from property sales.

       In 1998, the Partnership received $2,577,877 from the sale
of   property.   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.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        On  December  17, 1998, the Partnership purchased  a  60%
interest  in  a  parcel  of  land in  Hudsonville,  Michigan  for
$198,600.   The  land  is leased to RTM Mid-America,  Inc.  (RTM)
under  a  Lease  Agreement with a primary term of  20  years  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.

        Through  December 31, 2000, the Partnership sold 21.8651%
of  the  Tractor  Supply store, in two separate transactions,  to
unrelated third parties.  The Partnership received total net sale
proceeds  of  $315,587, which resulted in a  total  net  gain  of
$112,259.  The total cost and related accumulated depreciation of
the  interests sold was $228,780 and $25,452, respectively.   For
the year ended December 31, 2000, the net gain was $67,573.

        Subsequent to December 31, 2000, the Partnership sold  an
additional  12.5502% of the Tractor Supply store to an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $178,000,  which  resulted  in  a  net   gain   of
approximately $66,000.

        During 2000, the Partnership sold 43.6681% of the  Arby's
restaurant,  in  two  separate transactions, to  unrelated  third
parties.   The  Partnership received total net sale  proceeds  of
$550,092,  which  resulted in a total net gain of  $79,526.   The
total  cost and related accumulated depreciation of the interests
sold was $485,266 and $14,700, respectively.

        Subsequent to December 31, 2000, the Partnership sold  an
additional  15.3098%  of the Arby's restaurant  to  an  unrelated
third  party.   The  Partnership received net  sale  proceeds  of
approximately  $177,000,  which  resulted  in  a  net   gain   of
approximately $13,000.

       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.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.   In 2000, distributions were lower when compared  to  1999
due to the distribution of sale proceeds in March, 1999.

        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.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

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

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

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.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.



          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS






Report of Independent Auditors

Balance Sheet as of December 31, 2000 and 1999

Statements for the Years Ended December 31, 2000 and 1999:

     Income

     Cash Flows

     Changes in Partners' Capital

Notes to Financial Statements




                 REPORT OF INDEPENDENT AUDITORS





To the Partners:
AEI Real Estate Fund 85-A Limited Partnership
St. Paul, Minnesota



      We  have audited the accompanying balance sheet of AEI Real
Estate   Fund  85-A  Limited  Partnership  (a  Minnesota  limited
partnership)  as  of December 31, 2000 and 1999 and  the  related
statements of income, cash flows and changes in partners' capital
for  the  years then ended.  These financial statements  are  the
responsibility    of   the   Partnership's    management.     Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

      We  conducted  our  audits  in  accordance  with  generally
accepted  auditing standards.  Those standards  require  that  we
plan  and perform the audit to obtain reasonable assurance  about
whether   the   financial  statements  are   free   of   material
misstatement.   An  audit includes examining, on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.   An  audit  also includes assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of  AEI  Real Estate Fund 85-A Limited Partnership as of December
31, 2000 and 1999, and the results of its operations and its cash
flows  for  the  years then ended, in conformity  with  generally
accepted accounting principles.




                             /s/ BOULAY, HEUTMAKER, ZIBELL & CO. P.L.L.P.
Minneapolis,  Minnesota          Boulay, Heutmaker,  Zibell  & Co. P.L.L.P.
January 25, 2001                 Certified Public Accountants

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

                          BALANCE SHEET

                           DECEMBER 31

                             ASSETS


                                                    2000           1999

CURRENT ASSETS:
  Cash and Cash Equivalents                     $   941,722    $   180,855
  Receivables                                        10,000         10,000
                                                 -----------    -----------
          Total Current Assets                      951,722        190,855
                                                 -----------    -----------
INVESTMENTS IN REAL ESTATE:
  Land                                            1,722,667      1,899,582
  Buildings and Equipment                         2,918,857      3,360,494
  Accumulated Depreciation                         (870,519)      (799,532)
                                                 -----------    -----------
      Net Investments in Real Estate              3,771,005      4,460,544
                                                 -----------    -----------
          Total Assets                          $ 4,722,727    $ 4,651,399
                                                 ===========    ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.          $    14,654    $     8,229
  Distributions Payable                              91,219         90,724
                                                 -----------    -----------
      Total Current Liabilities                     105,873         98,953
                                                 -----------    -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                  (31,930)       (32,575)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,030 and 7,080 Units outstanding
   in 2000 and 1999, respectively                 4,648,784      4,585,021
                                                 -----------    -----------
     Total Partners' Capital                      4,616,854      4,552,446
                                                 -----------    -----------
       Total Liabilities and Partners' Capital  $ 4,722,727    $ 4,651,399
                                                 ===========    ===========

 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 YEARS ENDED DECEMBER 31


                                                     2000           1999

INCOME:
  Rent                                           $   538,672    $   389,612
  Investment Income                                   18,739         82,364
                                                  -----------    -----------
      Total Income                                   557,411        471,976
                                                  -----------    -----------

EXPENSES:
  Partnership Administration - Affiliates            100,933         94,134
  Partnership Administration and Property
     Management - Unrelated Parties                   13,847         12,564
  Depreciation                                       104,210         67,994
                                                  -----------    -----------
      Total Expenses                                 218,990        174,692
                                                  -----------    -----------

OPERATING INCOME                                     338,421        297,284

GAIN ON SALE OF REAL ESTATE                          147,099              0
                                                  -----------    -----------
NET INCOME                                       $   485,520    $   297,284
                                                  ===========    ===========

NET INCOME ALLOCATED:
  General Partners                               $     4,856    $     2,972
  Limited Partners                                   480,664        294,312
                                                  -----------    -----------
                                                 $   485,520    $   297,284
                                                  ===========    ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(7,067 and 7,080 weighted average Units outstanding
  in 2000 and 1999, respectively)                $     68.02    $     41.57
                                                  ===========    ===========

 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 YEARS ENDED DECEMBER 31


                                                       2000          1999

CASH FLOWS FROM OPERATING ACTIVITIES:
 Net Income                                        $   485,520   $   297,284

 Adjustments To Reconcile Net Income
 To Net Cash Provided By Operating Activities:
     Depreciation                                      104,210        67,994
     Gain on Sale of Real Estate                      (147,099)            0
     Decrease in Receivables                                 0         2,721
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                        6,425       (28,364)
                                                    -----------   -----------
       Total Adjustments                               (36,464)       42,351
                                                    -----------   -----------
       Net Cash Provided By
           Operating Activities                        449,056       339,635
                                                    -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                                 0    (2,065,822)
  Proceeds from Sale of Real Estate                    732,428             0
                                                    -----------   -----------
       Net Cash Provided By (Used For)
           Investing Activities                        732,428    (2,065,822)
                                                    -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (Decrease) in Distributions Payable             495        (3,641)
  Distributions to Partners                           (404,747)     (661,566)
  Redemption Payments                                  (16,365)            0
                                                    -----------   -----------
       Net Cash Used For
           Financing Activities                       (420,617)     (665,207)
                                                    -----------   -----------
NET INCREASE (DECREASE) IN CASH
    AND CASH EQUIVALENTS                               760,867    (2,391,394)

CASH AND CASH EQUIVALENTS, beginning of period         180,855     2,572,249
                                                    -----------   -----------
CASH AND CASH EQUIVALENTS, end of period           $   941,722   $   180,855
                                                    ===========   ===========

 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 YEARS ENDED DECEMBER 31


                                                                     Limited
                                                                   Partnership
                              General      Limited                    Units
                              Partners     Partners      Total     Outstanding


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

  Distributions                (6,616)     (654,950)    (661,566)

  Net Income                    2,972       294,312      297,284
                              ---------   ----------   ----------   ----------
BALANCE, December 31, 1999    (32,575)    4,585,021    4,552,446     7,079.63

  Distributions                (4,047)     (400,700)    (404,747)

  Redemption Payments            (164)      (16,201)     (16,365)       50.00

  Net Income                    4,856       480,664      485,520
                              ---------   ----------   ----------   ----------
BALANCE, December 31, 2000   $(31,930)   $4,648,784   $4,616,854     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

                   DECEMBER 31, 2000 AND 1999


(1)  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.

     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.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(1)  Organization - (Continued)

     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.

(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       The  accounts  of  the Partnership are maintained  on  the
       accrual  basis of accounting for both federal  income  tax
       purposes and financial reporting purposes.

     Accounting Estimates

       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual results could differ from those estimates.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Partnership regularly assesses whether market  events
       and conditions indicate that it is reasonably possible  to
       recover  the carrying amounts of its investments  in  real
       estate  from  future operations and sales.   A  change  in
       those  market events and conditions could have a  material
       effect on the carrying amount of its real estate.

     Cash Concentrations of Credit Risk

       The  Partnership's  cash  is deposited  primarily  in  one
       financial institution and at times during the year it  may
       exceed FDIC insurance limits.

     Statement of Cash Flows

       For  purposes  of  reporting cash  flows,  cash  and  cash
       equivalents  may include cash in checking,  cash  invested
       in   money   market  accounts,  certificates  of  deposit,
       federal  agency notes and commercial paper with a term  of
       three months or less.

     Income Taxes

       The  income or loss of the Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns of the partners.  Accordingly, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.

       The  tax  return, the qualification of the Partnership  as
       such  for  tax  purposes, and the amount of  distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination  results  in  changes  with  respect  to   the
       Partnership  qualification or in changes to  distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.

     Real Estate

       The  Partnership's real estate is leased under triple  net
       leases  classified as operating leases.   The  Partnership
       recognizes  rental revenue on the accrual basis  according
       to  the terms of the individual leases.  For leases  which
       contain  cost  of  living  increases,  the  increases  are
       recognized in the year in which they are effective.

       Real  estate is recorded at the lower of cost or estimated
       net   realizable  value.   The  Partnership  compares  the
       carrying amount of its properties to the estimated  future
       cash  flows expected to result from the property  and  its
       eventual  disposition.  If the sum of the expected  future
       cash  flows  is  less  than the  carrying  amount  of  the
       property,  the  Partnership recognizes an impairment  loss
       by  the  amount  by  which  the  carrying  amount  of  the
       property exceeds the fair value of the property.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(2)  Summary of Significant Accounting Policies - (Continued)

       The  Partnership  has capitalized as Investments  in  Real
       Estate   certain   costs  incurred  in  the   review   and
       acquisition  of the properties.  The costs were  allocated
       to the land, buildings and equipment.

       The   buildings  and  equipment  of  the  Partnership  are
       depreciated  using the straight-line method for  financial
       reporting purposes based on estimated useful lives  of  30
       years and 10 years respectively.

       The  Partnership accounts for properties owned as tenants-
       in-common  with  affiliated Partnerships and/or  unrelated
       third   parties   using  the  proportionate  consolidation
       method.   Each tenant-in-common owns a separate, undivided
       interest  in  the  properties.  Any tenant-in-common  that
       holds  more than a 50% interest does not control decisions
       over  the other tenant-in-common interests.  The financial
       statements  reflect  only  this  Partnership's  percentage
       share  of  the  properties' land, building and  equipment,
       liabilities, revenues and expenses.

(3)  Related Party Transactions -

     As  of  December 31, 2000, the Partnership owns  a  58.1349%
     interest  in a Tractor Supply Company store.  The  remaining
     interests in this property are owned by AEI Real Estate Fund
     XV Limited Partnership, an affiliate of the Partnership, and
     unrelated  third  parties.  As of  December  31,  2000,  the
     Partnership   owns  a  16.3319%  interest   in   an   Arby's
     restaurant.   The remaining interests in this  property  are
     owned by unrelated third parties.  Net Lease Income & Growth
     Fund   84-A  Limited  Partnership,  an  affiliate   of   the
     Partnership, owned a 40% interest in this property until the
     interest  was sold in a series of transactions to  unrelated
     third parties in 2000.

     AEI   and  NLM  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:

                                    Total Incurred by the Partnership
                                     for the Years Ended December 31

                                                   2000         1999

a.AEI and NLM are reimbursed for all costs
  incurred in connection with managing the
  Partnership's operations, maintaining the
  Partnership's books and communicating
  the results of operations to the Limited
  Partners.                                      $ 100,933    $  94,134
                                                  =========    =========


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(3)  Related Party Transactions - (Continued)

                                    Total Incurred by the Partnership
                                     for the Years Ended December 31

                                                   2000         1999

b.AEI and NLM are reimbursed for all direct
  expenses they have paid on the Partnership's
  behalf to third parties relating to Partnership
  administration and property management.
  These expenses included printing costs,
  legal and filing fees, direct administrative costs,
  outside audit and accounting costs, taxes, insurance
  and other property costs.                       $  13,847    $  12,564
                                                   ========     ========

c.AEI is reimbursed for all costs and direct
  expenses incurred by it in acquiring properties
  on behalf of the Partnership.  The amounts are net
  of financing and commitment fees and expense
  reimbursements received by the Partnership from
  the lessees in the amount of $48,235 for 1999.  $       0    $     203
                                                   ========     ========

d.                                        AEI is reimbursed for
all costs incurred in
  connection with the sale of property.           $  17,046    $       0
                                                   ========     ========

     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance  due for the services described in 3a, b, c  and  d.
     This balance is non-interest bearing and unsecured and is to
     be paid in the normal course of business.

(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through triple net leases, which are classified as operating
     leases.  Under a triple net lease, the lessee is responsible
     for  all  real estate taxes, insurance, maintenance, repairs
     and  operating expenses of the property.  The initial  Lease
     terms  are  for 20 years, except for the Hops  Grill  &  Bar
     restaurant  which  is  5 years, the Tractor  Supply  Company
     store which is 14 years and the Marie Callender's restaurant
     which is 15 years.  The Leases contain renewal options which
     may  extend the Lease term an additional 5 to 20 years.  The
     Hops  Grill & Bar Lease has been extended to April 30, 2002.
     The Leases contain clauses which entitle the Partnership  to
     receive  additional rent in future years,  based  on  stated
     rent  increases or if gross receipts for the property exceed
     certain specified amounts, among other conditions.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(4)  Investments in Real Estate - (Continued)

     The  Partnership's  properties are all  commercial,  single-
     tenant buildings.  The Rio Bravo was constructed in 1984 and
     acquired  in 1985.  The Jack-In-The-Box was constructed  and
     acquired  in  1985.   The Hops Grill &  Bar  restaurant  was
     constructed  and  acquired  in  1986.   The  Tractor  Supply
     Company  store was constructed and acquired  in  1996.   The
     land  for  the Arby's restaurant was acquired  in  1998  and
     construction of the restaurant was completed in  1999.   The
     Marie  Callender's restaurant was constructed  in  1998  and
     acquired  in 1999.  There have been no costs capitalized  as
     improvements subsequent to the acquisitions.

     The  cost  of  the  properties and the  related  accumulated
     depreciation at December 31, 2000 are as follows:

                                      Buildings and         Accumulated
Property                     Land       Equipment    Total  Depreciation

Rio Bravo, St. Paul, MN  $   49,251   $   86,014  $  135,265  $  55,187
Jack-In-The-Box,
 Fort Worth, TX             498,862      506,724   1,005,586    307,268
Hops Grill & Bar,
 Palm Harbor, FL            484,570      609,803   1,094,373    368,679
Tractor Supply Company,
 Maryville, TN              111,635      496,643     608,278     87,529
Arby's Restaurant,
 Hudsonville, MI             57,017      124,472     181,489      6,223
Marie Callender's,
 Gresham, OR                521,332    1,095,201   1,616,533     45,633
                          ----------   ----------  ----------  ---------
                         $1,722,667   $2,918,857  $4,641,524  $ 870,519
                          ==========   ==========  ==========  =========


     In  1998, the Partnership received $2,577,877 from the  sale
     of  property.   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 properties.

     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.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(4)  Investments in Real Estate - (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.

     Through December 31, 2000, the Partnership sold 21.8651%  of
     the  Tractor Supply store, in two separate transactions,  to
     unrelated third parties.  The Partnership received total net
     sale  proceeds of $315,587, which resulted in  a  total  net
     gain  of  $112,259.  The total cost and related  accumulated
     depreciation of the interests sold was $228,780 and $25,452,
     respectively.  For the year ended December 31, 2000, the net
     gain was $67,573.

     Subsequent  to  December 31, 2000, the Partnership  sold  an
     additional  12.5502%  of  the Tractor  Supply  store  to  an
     unrelated  third party.  The Partnership received  net  sale
     proceeds of approximately $178,000, which resulted in a  net
     gain of approximately $66,000.

     During  2000,  the Partnership sold 43.6681% of  the  Arby's
     restaurant, in two separate transactions, to unrelated third
     parties.   The Partnership received total net sale  proceeds
     of  $550,092, which resulted in a total net gain of $79,526.
     The  total cost and related accumulated depreciation of  the
     interests sold was $485,266 and $14,700, respectively.

     Subsequent  to  December 31, 2000, the Partnership  sold  an
     additional 15.3098% of the Arby's restaurant to an unrelated
     third party.  The Partnership received net sale proceeds  of
     approximately  $177,000, which resulted in  a  net  gain  of
     approximately $13,000.

     The  Partnership  owns a 7.6482% interest  in  a  Rio  Bravo
     restaurant.   The remaining interests in this  property  are
     owned by unrelated third parties, who own the property  with
     the Partnership as tenants-in-common.

     The   minimum  future  rentals  on  the  Leases  for   years
     subsequent to December 31, 2000 are as follows:

                       2001            $   477,910
                       2002                419,051
                       2003                389,619
                       2004                393,116
                       2005                400,442
                       Thereafter        2,174,869
                                        -----------
                                       $ 4,255,007
                                        ===========

     In  2000  and  1999,  the Partnership recognized  contingent
     rents of $20,416 and $10,000, respectively.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(5)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:

                                                     2000        1999
        Tenants                       Industry

  CKE Restaurants, Inc.             Restaurant    $ 155,998   $ 145,582
  Marie Callender Pie Shops, Inc.   Restaurant      152,000      39,267
  Hops Grill & Bar, Inc.            Restaurant       89,821      86,808
  Tractor Supply Company, Inc.      Retail           81,822      82,846
                                                   ---------   ---------

     Aggregate rent revenue of major tenants      $ 479,641   $ 354,503
                                                   =========   =========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                  89%         91%
                                                   =========   =========

(6)  Partners' Capital-

     Cash  distributions of $4,211 and $6,616 were  made  to  the
     General Partners and $400,700 and $654,950 were made to  the
     Limited  Partners for the years ended December 31, 2000  and
     1999,  respectively.   The  Limited Partners'  distributions
     represent  $56.70  and $92.51 per Limited  Partnership  Unit
     outstanding using 7,067 and 7,080 weighted average Units  in
     2000  and  1999, respectively.  The distributions  represent
     $56.70 and $41.57 per Unit of Net Income and $-0- and $50.94
     per  Unit of return of contributed capital in 2000 and 1999,
     respectively.

     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $250,000 of proceeds from
     property  sales  in  1999.   The distributions  reduced  the
     Limited Partners' Adjusted Capital Contributions.

     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  2000  and  1999  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99%  of distributions and income were allocated  to
     the Limited Partners and 1% to the General Partners.

     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.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(6)  Partners' Capital- (Continued)

     During  2000,  one Limited Partner redeemed a  total  of  50
     Partnership  Units  for  $16,201  in  accordance  with   the
     Partnership Agreement.  The Partnership acquired these Units
     using   Net  Cash  Flow  from  operations.   In  1999,   the
     Partnership  did  not  redeem any  Units  from  the  Limited
     Partners.   The  redemptions increase the remaining  Limited
     Partners' ownership interest in the Partnership.

     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $876.83 per original $1,000 invested.

(7)  Income Taxes -

     The   following  is  a  reconciliation  of  net  income  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:

                                                 2000         1999

     Net Income for Financial
      Reporting Purposes                      $ 485,520    $ 297,284

     Depreciation for Tax Purposes
      Over Depreciation for Financial
      Reporting Purposes                         (5,398)     (16,476)

     Gain on Sale of Real Estate for
      Tax Purposes Over Gain for
      Financial Reporting Purposes                  755            0
                                               ----------   ----------
           Taxable Income to Partners         $ 480,877    $ 280,808
                                               ==========   ==========


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 2000 AND 1999

(7)  Income Taxes - (Continued)

     The  following is a reconciliation of Partners' capital  for
     financial  reporting purposes to Partners' capital  reported
     for federal income tax purposes for the years ended December
     31:

                                                2000         1999

     Partners' Capital for
      Financial Reporting Purposes           $4,616,854   $4,552,446

     Adjusted Tax Basis of Investments
      In Real Estate Under Net Investments
      In Real Estate for Financial
      Reporting Purposes                       (160,002)    (155,359)

     Syndication Costs Treated as
      Reduction of Capital for
      Financial Reporting Purposes              978,377      978,377
                                              -----------  ----------
           Partners' Capital for
              Tax Reporting Purposes         $5,435,229   $5,375,464
                                              ===========  ==========

(8)  Fair Value of Financial Instruments -

     The estimated fair values of the financial instruments, none
     of  which  are held for trading purposes, are as follows  at
     December 31:

                                  2000                   1999
                         Carrying      Fair     Carrying      Fair
                          Amount       Value     Amount       Value

     Cash                $    254   $    254    $    403   $    403
     Money Market Funds   941,468    941,468     180,452    180,452
                          --------   --------    --------   --------
      Total Cash and
        Cash Equivalents $941,722   $941,722    $180,855   $180,855
                          ========   ========    ========   ========


ITEM 8.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
       ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.


                            PART III

ITEM 9.DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
       PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
       ACT.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
of  the  registrant are Robert P. Johnson and NLM.   The  General
Partners  manage and control the Partnership's affairs  and  have
general  responsibility and the ultimate authority in all matters
affecting the Partnership's business.  The director and  officers
of NLM are as follows:

        Robert  P.  Johnson, age 56, is Chief Executive  Officer,
President  and  Director and has held these positions  since  the
formation  of  NLM  in November, 1984, and has  been  elected  to
continue in these positions until December, 2001.  From  1970  to
the  present, he has been employed exclusively in the  investment
industry,  specializing  in  tax-advantaged  limited  partnership
investments.   In  that  capacity, he has been  involved  in  the
development,  analysis, marketing and management  of  public  and
private investment programs investing in net lease properties  as
well  as  public  and  private investment programs  investing  in
energy  development.   Since  1971,  Mr.  Johnson  has  been  the
president,  a  director  and  a  registered  principal   of   AEI
Securities,  Inc.,  which is registered with the  Securities  and
Exchange Commission as a securities broker-dealer, is a member of
the  National Association of Securities Dealers, Inc. (NASD)  and
is  a  member  of  the Security Investors Protection  Corporation
(SIPC).   Mr.  Johnson has been president,  a  director  and  the
principal shareholder of AEI Fund Management, Inc., a real estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in fifteen limited partnerships.

        Mark  E.  Larson,  age 48, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue in these positions until December, 2001.  Mr. Larson has
been  Treasurer and Executive Vice President since December, 1987
and  Chief  Financial Officer since January, 1990.   In  January,
1993,  Mr.  Larson was elected to serve as Secretary of  NLM  and
will continue to serve until December, 2001.  Mr. Larson has been
employed  by  AEI  Fund Management, Inc. and affiliated  entities
since  1985.   From  1979  to 1985, Mr. Larson  was  with  Apache
Corporation as manager of Program Accounting responsible for  the
accounting  and reports for approximately 45 public partnerships.
Mr.   Larson   is  responsible  for  supervising  the  accounting
functions of NLM and the registrant.

ITEM 10. EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative and management services.


ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
         MANAGEMENT.

        The following table sets forth information pertaining  to
the   ownership  of  the  Units  by  each  person  known  by  the
Partnership to beneficially own 5% or more of the Units, by  each
General  Partner, and by each officer or director of the Managing
General Partner as of February 28, 2001:

     Name and Address                   Number of     Percent
   of Beneficial Owner                  Units Held    of Class

   Net Lease Management 85-A, Inc.         14.5          *
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Robert P. Johnson                        0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   Mark E. Larson                           0            0%
   1300 Minnesota World Trade Center
   30 East 7th Street, St. Paul, Minnesota 55101

   * Less than 1%

The  persons  set forth in the preceding table hold  sole  voting
power  and power of disposition with respect to all of the  Units
set forth opposite their names.  The General Partners know of  no
holders of more than 5% of the outstanding Units.

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

        The  registrant,  NLM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.   Reference  is  made to  Note  3  of  the  Financial
Statements,   as  presented,  and  is  incorporated   herein   by
reference, for details of Related Party Transactions.


                             PART IV

ITEM 13.  EXHIBITS AND REPORTS ON FORM 8-K AND 8-K/A.

          A. Exhibits -
                           Description

10.1  Property   Co-Tenancy   Ownership   Agreement   dated
      September  16,  1998  between the  Partnership  and  Tom  S.
      Obata,  Trustee of That Certain "Living Trust"  relating  to
      the  property at 389 N. Hamline Avenue, St. Paul,  Minnesota
      (incorporated  by reference to Exhibit 10.3 of  Form  10-KSB
      filed on March 12, 1999).

10.2  Property   Co-Tenancy   Ownership   Agreement   dated
      September  16,  1998  between the Partnership  and  Jack  S.
      Obata  and  Atsuko Obata, Trustee of the Jack S. and  Atsuko
      Obata  Revocable  Trust  dated  12/30/74  relating  to   the
      property  at  389  N.  Hamline Avenue, St.  Paul,  Minnesota
      (incorporated  by reference to Exhibit 10.4 of  Form  10-KSB
      filed on March 12, 1999).

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K  (Continued)

         a. Exhibits -
                             Description

10.3  Property Co-Tenancy Ownership Agreement dated  October
      29,  1998  between  the Partnership and Jean  Ann  Morrison,
      Trustee  of The Jean Morrison Trust, dated 4/26/85  relating
      to  the  property  at  389  N.  Hamline  Avenue,  St.  Paul,
      Minnesota  (incorporated by reference  to  Exhibit  10.6  of
      Form 10-KSB filed on March 12, 1999).

10.4  Property Co-Tenancy Ownership Agreement dated November
      25,   1998  between  the  Partnership  and  Joan  G.  Cairns
      relating  to  the  property at 389 N.  Hamline  Avenue,  St.
      Paul,  Minnesota (incorporated by reference to Exhibit  10.9
      of Form 10-KSB filed on March 12, 1999).

10.5  Net  Lease Agreement dated December 17,  1998  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 10.11 of  Form  10-KSB
      filed on March 12, 1999).

10.6  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 on  July  30,
      1999).

10.7  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 on July 30, 1999).

10.8  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 on July 30, 1999).

10.9  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 on September 9, 1999).

10.10 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 (incorporated by reference  to
      Exhibit 10.5 of Form 10-QSB filed on November 8, 1999).

10.11 Net  Lease  Agreement dated  September  28,  1999
      between the Partnership and Marie Callender Pie Shops,  Inc.
      relating  to  the  property  at 305  N.E.  Burnside  Street,
      Gresham,  Oregon (incorporated by reference to Exhibit  10.4
      of Form 8-K filed on October 1, 1999).

10.12 Purchase Agreement dated April 20,  2000  between
      the  Partnership  and Net Lease Income &  Growth  Fund  84-A
      Limited  Partnership and Scorpion Enterprises, LLC  relating
      to  the  property  at  4633-32nd Avenue South,  Hudsonville,
      Michigan (incorporated by reference to Exhibit 10.1 of  Form
      10-QSB filed on August 2, 2000).

10.13 Property  Co-Tenancy  Ownership  Agreement  dated
      April  25, 2000 between the Partnership and Net Lease Income
      &   Growth   Fund  84-A  Limited  Partnership  and  Scorpion
      Enterprises,  LLC  relating  to the  property  at  4633-32nd
      Avenue   South,   Hudsonville,  Michigan  (incorporated   by
      reference to Exhibit 10.2 of Form 10-QSB filed on August  2,
      2000).

10.14 Purchase Agreement dated October 11, 2000 between
      the   Partnership  and  AEI  Real  Estate  Fund  XV  Limited
      Partnership  and  Lucas Enterprises,  LLC  relating  to  the
      property   at  1800  Lamar  Alexander  Parkway,   Maryville,
      Tennessee.

10.15 Purchase  Agreement  dated  November  30,   2000
      between  the  Partnership and Scott L. Skogman  relating  to
      the   property   at  4633-32nd  Avenue  South,  Hudsonville,
      Michigan.

ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K  (Continued)

         A. Exhibits -
                          Description

10.16 Property  Co-Tenancy  Ownership  Agreement  dated
      November  30,  2000  between the Partnership  and  Scott  L.
      Skogman relating to the property at 4633-32nd Avenue  South,
      Hudsonville, Michigan.

10.17 Purchase Agreement dated January 22, 2001 between
      the   Partnership  and  AEI  Real  Estate  Fund  XV  Limited
      Partnership and Sheila K. Nate Revocable Living Trust  dated
      November  29, 1996, Thomas L. Nate, Trustee, and  Sheila  K.
      Nate,  Trustee,  relating  to the  property  at  1800  Lamar
      Alexander Parkway, Maryville, Tennessee.

10.18 Purchase Agreement dated January 31, 2001 between
      the  Partnership  and  Dwight  W.  Peterson  and  Linda   R.
      Peterson  relating  to  the  property  at  4633-32nd  Avenue
      South, Hudsonville, Michigan.

10.19 Property  Co-Tenancy  Ownership  Agreement  dated
      January  31,  2001, between the Partnership  and  Dwight  W.
      Peterson  and Linda R. Peterson relating to the property  at
      4633-32nd Avenue South, Hudsonville, Michigan.

         B. Reports on Form 8-K and 8-K/A -    None.


                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) of the
Securities  Exchange Act of 1934, the registrant has duly  caused
this  report  to  be  signed on its behalf  by  the  undersigned,
thereunto duly authorized.

                               AEI REAL ESTATE FUND 85-A
                               Limited Partnership
                               By: Net  Lease Management  85-A, Inc.
                                   Its Managing General Partner


March 9, 2001                  By:/s/ Robert P. Johnson
                                      Robert  P. Johnson, President
                                      and Director
                                      (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                                Title                     Date


/s/ Robert P. Johnson  President (Principal Executive      March 9, 2001
Robert P. Johnson      Officer) and Sole Director of
                       Managing General Partner

/s/ Mark E. Larson     Executive Vice President,           March 9, 2001
Mark E. Larson         Treasurer and Chief Financial
                       Officer (Principal Accounting
                       Officer)