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, 1996
                                
                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)

                         (612) 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,  1996  were
$523,846.

As  of  February 28, 1997, there were 7,070.128 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 $7,070,128.


               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.   It is anticipated that the Partnership will  sell  its
properties  within twelve years after acquisition.  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  noncancelable  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.

        In February, 1994, the Partnership sold 4,899 square feet
of land from the Perkins property in Bozeman, Montana pursuant to
a  Right of Way Agreement with the State of Montana Department of
Transportation.   The Partnership received net sale  proceeds  of
$36,605  which  resulted in a net gain of $5,641.   The  original
cost of the parcel of land was $30,964.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        On September 19, 1994, the Partnership sold the remainder
of the Perkins' property to the lessee.  The Partnership received
net  sale proceeds of $1,227,101 which resulted in a net gain  of
$632,338.   At the time of sale, the cost and related accumulated
depreciation   of  the  property  was  $796,901   and   $202,138,
respectively.   In February, 1995, the Managing  General  Partner
filed  a  proxy statement to propose an Amendment to the  Limited
Partnership  Agreement  that  would  allow  the  Partnership   to
reinvest the net proceeds in additional properties. The Amendment
passed with a majority of Units voting in favor of the Amendment.

        On  March  20,  1995, the Partnership sold  the  Hardee's
restaurant in Sierra Vista, Arizona to an unrelated third  party.
The  Partnership  received net sales proceeds of $296,020,  which
resulted in a net loss of $166,000, which was recognized in 1994.

       On July 19, 1995, the Partnership sold the Fair Muffler in
Ashwaubenon,  Wisconsin to the lessee.  The Partnership  received
net  sale proceeds of $299,874, which resulted in a net  gain  of
$130,181.   At the time of sale, the cost and related accumulated
depreciation   of   the  property  was  $230,134   and   $60,441,
respectively.

        On  August  28, 1995, the Partnership sold  the  Hardee's
restaurant  in  Wayne, Nebraska to the lessee.   The  Partnership
received net sales proceeds of $474,530 which resulted in  a  net
gain  of  $150,989.  At the time of sale, the  cost  and  related
accumulated  depreciation  of  the  property  was  $447,944   and
$124,403, respectively.

        On  December  21,  1995,  the  Partnership  purchased  an
Applebee's  restaurant in Harlingen, Texas for  $1,393,470.   The
property is leased to Renaissant Development Corporation under  a
Lease Agreement with a primary term of 20 years and annual rental
payments of $156,400.

        On  February 14, 1996, the Partnership purchased  an  80%
interest in a Tractor Supply Company in Maryville, Tennessee  for
$837,058.  The property is leased to Tractor Supply Company under
a  Lease  Agreement with a primary term of 14  years  and  annual
rental  payments  of  $90,300.  The  remaining  interest  in  the
property  was  purchased  by  AEI Real  Estate  Fund  XV  Limited
Partnership, an affiliate of the Partnership.

Major Tenants

        During  1996,  five  of  the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental revenue.  The major tenants in aggregate contributed  100%
of  the  Partnership's  total rental  revenue  in  1996.   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  1997 and future years.  Any failure of these major tenants or
business  concepts could materially affect the Partnership's  net
income and cash distributions.

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.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

Employees

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

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 noncancelable
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, 1996.
                                 Total Property
                      Purchase     Acquisition               Annual    Annual 
Property                Date          Costs     Lessee       Lease      Rent 
                                                             Payment  Per Sq.Ft
Rio Bravo Restaurant                         Innovative
 St. Paul, MN                                Restaurant
 (45%)                12/13/85   $  795,861  Concepts, Inc.    $ 65,711  $ 12.81

Jack-In-The-Box Restaurant                     Carl Karcher
 Ft. Worth, TX        12/19/85   $1,005,586  Enterprises, Inc. $135,582  $ 34.71

Hops Grill & Bar Restaurant                    Hops of Palm
 Palm Harbor, FL       3/21/86   $1,094,373    Harbor, Inc.    $ 80,220  $ 15.64

Applebee's Restaurant                       Renaissant Develop-
 Harlingen, TX        12/21/95   $1,393,470    ment Corp.      $156,400  $ 31.32

Tractor Supply
Company Store
 Maryville, TN                                   Tractor
 (80%)                 2/14/96   $  837,058  Supply Company    $ 90,300  $  5.93


        The  properties  listed above with  a  partial  ownership
percentage  are  owned with affiliates of the  Partnership.   Net
Lease  Income  &  Growth Fund 84-A Limited Partnership  owns  the
remaining  interest  in  the Rio Bravo restaurant  in  St.  Paul,
Minnesota.  AEI Real Estate Fund XV Limited Partnership owns  the
remaining  interest in the Tractor Supply Company  in  Maryville,
Tennessee.

        Each  Partnership owns a separate, undivided interest  in
the  properties.   No  specific agreement  or  commitment  exists
between the Partnerships as to the management of their respective
interests in the properties, and the Partnership that holds  more
than  a  50% interest does not control decisions over  the  other
Partnership's interest.

        The initial Lease terms are for 20 years, except for  the
Palm  Harbor  property which is 5 years and  the  Tractor  Supply
Company which is 14 years.  The Leases have renewal options which
may extend the Lease term an additional 5 to 20 years.

       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).   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, 1991, all properties were 100
percent occupied by the lessees.

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, 1996, there were 683 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  purchase Units from Limited Partners  who  have
tendered  their  Units to the Partnership.   Such  Units  may  be
acquired  at  a  discount.  The Partnership is not  obligated  to
purchase  in any year more than 5% of the total number  of  Units
originally sold.  In no event shall the Partnership be  obligated
to  purchase  Units if, in the sole discretion  of  the  Managing
General  Partner,  such  purchase would  impair  the  capital  or
operation of the Partnership.

        During 1996, six Limited Partners redeemed a total of  22
Partnership  Units for $10,294 in accordance with the Partnership
Agreement.  In prior years, a total of forty-six Limited Partners
redeemed  393.37 Partnership Units for $302,828.  The redemptions
increase  the remaining Limited Partners' ownership  interest  in
the Partnership.

        Cash distributions of $3,898 and $4,622 were made to  the
General  Partners  and $375,600 and $448,505  were  made  to  the
Limited   Partners   in   1996  and  1995,   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  $4,223  and  $160,676   of
proceeds from property sales in 1996 and 1995, respectively.  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, 1996  and  1995,  the
Partnership  recognized rental income of $513,717  and  $341,114,
respectively.   During the same periods, the  Partnership  earned
investment  income  of  $10,129 and $109,453,  respectively.   In
1996, rental income increased as a result of the reinvestment  of
net  sale proceeds in additional properties discussed below.  The
increase  in rental income was partially offset by a decrease  in
investment  income  earned  on the  net  proceeds  prior  to  the
purchase of the additional properties.

        During  the years ended December 31, 1996 and  1995,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated  parties of $87,152 and $95,867, 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  $15,569 and $58,511, 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.  The  decrease
in  these  expenses in 1996, when compared to 1995, is due  to  a
$45,000  payment made to the original lessee of the Sierra  Vista
property.  The payment was a reimbursement for a portion  of  the
legal  fees  the  lessee  incurred in  obtaining  a  judgment  of
$390,000  against  the sublessee in favor of the  Partnership  in
1992.   The  reimbursement was contingent upon the  sale  of  the
property which was completed in March, 1995.

       As of December 31, 1996, the Partnership's annualized cash
distribution  rate  was  5.85%, 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  1996,  the Partnership's cash balances  decreased
$880,491  mainly  as the result of reinvesting sale  proceeds  in
additional  property as discussed below.  Net  cash  provided  by
operating activities increased from $296,730 in 1995 to  $419,762
in 1996 due to an increase in income from the reinvestment of net
sales  proceeds  in  additional properties  and  a  reduction  in
expenses.

        The  major components of the Partnership's cash flow from
investing activities are investments in real estate and  proceeds
from  the  sale  of  the real estate.  In 1995,  the  Partnership
generated  cash flow from the sale of real estate,  as  discussed
below, of $1,070,424.  In 1996 and 1995, the Partnership expended
$834,725  and  $1,395,803,  respectively,  to  invest   in   real
properties (inclusive of acquisition expenses) as the Partnership
reinvested the cash generated from the property sales.


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

        On  March  20,  1995, the Partnership sold  the  Hardee's
restaurant in Sierra Vista, Arizona to an unrelated third  party.
The  Partnership  received net sales proceeds of $296,020,  which
resulted in a net loss of $166,000, which was recognized in 1994.

       On July 19, 1995, the Partnership sold the Fair Muffler in
Ashwaubenon,  Wisconsin to the lessee.  The Partnership  received
net  sale proceeds of $299,874, which resulted in a net  gain  of
$130,181.   At the time of sale, the cost and related accumulated
depreciation   of   the  property  was  $230,134   and   $60,441,
respectively.

        On  August  28, 1995, the Partnership sold  the  Hardee's
restaurant  in  Wayne, Nebraska to the lessee.   The  Partnership
received net sales proceeds of $474,530 which resulted in  a  net
gain  of  $150,989.  At the time of sale, the  cost  and  related
accumulated  depreciation  of  the  property  was  $447,944   and
$124,403, respectively.

        During 1996 and 1995, the Partnership distributed  $4,223
and  $162,299 of the net sale proceeds to the Limited and General
Partners as part of their regular quarterly distributions,  which
represented  a return of capital of $.59 and $22.59  per  Limited
Partnership  Unit, respectively.  The majority of  the  remaining
net proceeds were reinvested in additional properties.

        On  December  21,  1995,  the  Partnership  purchased  an
Applebee's  restaurant in Harlingen, Texas for  $1,393,470.   The
property is leased to Renaissant Development Corporation under  a
Lease Agreement with a primary term of 20 years and annual rental
payments of $156,000.

        On  February 14, 1996, the Partnership purchased  an  80%
interest in a Tractor Supply Company in Maryville, Tennessee  for
$837,058.  The property is leased to Tractor Supply Company under
a  Lease  Agreement with a primary term of 14  years  and  annual
rental  payments  of  $90,300.  The  remaining  interest  in  the
property  was  purchased  by  AEI Real  Estate  Fund  XV  Limited
Partnership, 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 1996, net cash used for financing activities increased,
when  compared to 1995, as a result of an additional distribution
of  net sale proceeds of approximately $75,000, which was accrued
in December, 1995, but not paid until January, 1996.

        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 1996, six Limited Partners redeemed a total of  22
Partnership  Units for $10,294 in accordance with the Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years,  a  total  of  forty-six
Limited  Partners redeemed 393.37 Partnership Units for $302,828.
The   redemptions   increase  the  remaining  Limited   Partners'
ownership interest in the Partnership.


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

       The continuing rent payments from the properties should be
adequate   to  fund  continuing  distributions  and  meet   other
Partnership obligations on both a short-term and long-term basis.

ITEM 7.   FINANCIAL STATEMENTS.

       See accompanying index to financial statements.

                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS


Independent Auditor's Report

Balance Sheet as of December 31, 1996 and 1995

Statements for the Years Ended December 31, 1996 and 1995:

     Income

     Cash Flows

     Changes in Partners' Capital

Notes to Financial Statements

                                
                                
                                
                  INDEPENDENT AUDITOR'S REPORT


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, 1996 and 1995 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, 1996 and 1995, and the results of its operations and its cash
flows  for  the  years then ended, in conformity  with  generally
accepted accounting principles.




Minneapolis,  Minnesota           /s/ Boulay, Heutmaker, Zibell & Co. P.L.L.P.
January 31, 1997                      Certified Public Accountants


<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
                           DECEMBER 31
                                
                             ASSETS
                                
                                                       1996           1995

CURRENT ASSETS:
  Cash and Cash Equivalents                       $   137,141     $ 1,017,632
  Receivables                                               0           8,514
                                                   -----------     -----------
      Total Current Assets                            137,141       1,026,146
                                                   -----------     -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              1,877,226       1,723,603
  Buildings and Equipment                           3,249,122       2,565,687
  Property Acquisition Costs                                0           2,333
  Accumulated Depreciation                           (896,171)       (792,710)
                                                   -----------     -----------

      Net Investments in Real Estate                4,230,177       3,498,913
                                                   -----------     -----------
           Total  Assets                          $ 4,367,318     $ 4,525,059
                                                   ===========     ===========


                        LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $    16,980     $    26,857
  Distributions Payable                                84,562         160,298
                                                   -----------     -----------
      Total Current Liabilities                       101,542         187,155
                                                   -----------     -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                    (35,441)        (34,720)
  Limited Partners, $1,000 Unit value;
   7,500 Units authorized and issued;
   7,085 and 7,107 outstanding in 1996
   and 1995, respectively                           4,301,217       4,372,624
                                                   -----------     -----------
      Total Partners' Capital                       4,265,776       4,337,904
                                                   -----------     -----------
        Total  Liabilities and Partners' Capital  $ 4,367,318     $ 4,525,059
                                                   ===========     ===========


 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 3l


                                                   1996              1995
  
INCOME:
  Rent                                        $   513,717        $   341,114
  Investment Income                                10,129            109,453
                                               -----------        -----------
      Total Income                                523,846            450,567
                                               -----------        -----------

EXPENSES:
  Partnership Administration - Affiliates          87,152             95,867
  Partnership Administration and Property
     Management - Unrelated Parties                15,569             58,511
  Depreciation                                    103,461             96,352
                                               -----------        -----------
      Total Expenses                              206,182            250,730
                                               -----------        -----------

OPERATING INCOME                                  317,664            199,837

GAIN ON SALE OF REAL ESTATE                             0            281,170
                                               -----------        -----------

NET INCOME                                    $   317,664        $   481,007
                                               ===========        ===========

NET INCOME ALLOCATED:
  General Partners                            $     3,177        $     4,810
  Limited Partners                                314,487            476,197
                                               -----------        -----------
                                              $   317,664        $   481,007
                                               ===========        ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(7,101 and 7,120 weighted average Units outstanding
 in 1996 and 1995, respectively)              $     44.29        $    66.88
                                               ===========        ===========


 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

                                                        1996          1995

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                        $   317,664   $   481,007

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                       103,461        96,352
     Gain on Sale of Real Estate                              0      (281,170)
     (Increase) Decrease in Receivables                   8,514        (2,024)
     Increase (Decrease) in Payable to
        AEI Fund Management, Inc.                        (9,877)        2,565
                                                     -----------   -----------
       Total Adjustments                                102,098      (184,277)
                                                     -----------   -----------
       Net Cash Provided By
           Operating Activities                         419,762       296,730
                                                     ------------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                           (834,725)   (1,395,803)
  Proceeds from Sale of Real Estate                           0     1,070,424
                                                     -----------   -----------
       Net Cash Used For
           Investing Activities                        (834,725)     (325,379)
                                                     -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase  (Decrease) in Distributions  Payable        (75,736)       76,541
  Distributions to Partners                            (379,394)     (453,035)
  Redemption Payments                                   (10,398)       (9,196)
                                                     -----------   -----------
       Net Cash Used For
           Financing Activities                        (465,528)     (385,690)
                                                     -----------   -----------

NET DECREASE IN CASH AND CASH EQUIVALENTS              (880,491)     (414,339)

CASH AND CASH EQUIVALENTS, beginning of period        1,017,632     1,431,971
                                                     -----------   -----------

CASH AND CASH EQUIVALENTS, end of period            $   137,141   $ 1,017,632
                                                     ===========   ===========


 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, 1994    $  (34,908)  $ 4,354,036  $ 4,319,128   7,124.63

  Distributions                   (4,530)     (448,505)    (453,035)

  Redemption Payments                (92)       (9,104)      (9,196)    (18.00)

  Net Income                       4,810       476,197      481,007
                               ----------   -----------  -----------  ----------

BALANCE, December 31, 1995       (34,720)    4,372,624    4,337,904   7,106.63

  Distributions                   (3,794)     (375,600)    (379,394)

  Redemption Payments               (104)      (10,294)     (10,398)    (22.00)

  Net Income                       3,177       314,487      317,664
                               ----------   -----------  -----------  ----------
BALANCE, December 31, 1996    $  (35,441)  $ 4,301,217  $ 4,265,776   7,084.63
                               ==========   ===========  ===========  ==========



 The accompanying notes to financial statements are an integral
                     part of this statement.

</PAGE>

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1996 AND 1995


(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 of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  NLM,  serves  as  the
     Individual General Partner of the Partnership. An  affiliate
     of  NLM,  AEI  Fund  Management,  Inc.  (AEI)  performs  the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced   operations  on  April  15,  1985  when   minimum
     subscriptions    of   1,300   Limited   Partnership    Units
     ($1,300,000)  were  accepted.   The  Partnership's  offering
     terminated  on  June 20, 1985 when the maximum  subscription
     limit  of  7,500 Limited Partnership Units ($7,500,000)  was
     reached.
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $7,500,000  and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.
     
     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1996 AND 1995


(1)  Organization - (Continued)
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.   In the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those Partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.
     
(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, 1996 AND 1995

(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
     
       At  times  throughout  the year,  the  Partnership's  cash
       deposited  in  financial  institutions  may  exceed   FDIC
       insurance limits.
       
     Statement of Cash Flows
     
       For  purposes  of  reporting cash  flows,  cash  and  cash
       equivalents  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  long-term
       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 Financial Accounting Standards
       Board  issued  Statement  No.  121,  "Accounting  for  the
       Impairment of Long-Lived Assets and for Long-Lived  Assets
       to   be   Disposed   Of"  which  is  effective   for   the
       Partnership's fiscal year ended December 31,  1996.   This
       standard  requires the Partnership to compare 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  Statement  requires  the  Partnership   to
       recognize  an impairment loss by the amount by  which  the
       carrying amount of the property exceeds the fair value  of
       the  property.  Adoption of this Statement did not have  a
       material    effect   on   the   Partnership's    financial
       statements.
       

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1996 AND 1995

(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.

(3)  Related Party Transactions -

     In  1985, the Partnership acquired a 45% interest in the Rio
     Bravo property.  The remaining interest in this property  is
     owned  by  Net  Lease  Income &  Growth  Fund  84-A  Limited
     Partnership, an affiliate of the Partnership.  In 1996,  the
     Partnership  acquired an 80% interest in the Tractor  Supply
     Company.   The remaining interest in this property is  owned
     by AEI Real Estate Fund XV Limited Partnership, an affiliate
     of the Partnership.
     
     Each Partnership owns a separate, undivided interest in  the
     properties.   No  specific agreement  or  commitment  exists
     between  the  Partnerships as to  the  management  of  their
     respective  interests in the properties, and the Partnership
     that  holds  more  than  a  50% interest  does  not  control
     decisions  over  the  other  Partnership's  interest.    The
     financial   statements  reflect  only   this   Partnership's
     percentage  share  of  the properties'  land,  building  and
     equipment, liabilities, revenues and expenses.

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


                                          Total Incurred by the Partnership
                                           for the Years Ended December 3l

                                                      1996           1995

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.                                           $  87,152     $  95,867
                                                       =========     =========

b.AEI and NLM are reimbursed for all direct
  expenses they have paid on the Partnership's
  behalf to third parties.  These expenses included
  printing costs, interest, legal and filing fees, direct
  administrative costs, outside audit and accounting
  costs, taxes, insurance and other property costs.   $  15,569     $  58,511
                                                       =========     =========


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1996 AND 1995

(3)  Related Party Transactions - (Continued)

                                           Total Incurred by the Partnership
                                             for the Years Ended December 3l

                                                          1996        1995
 
c.AEI is reimbursed for all property acquisition
  costs 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 $22,020 and $6,750
  for 1996 and 1995, respectively.                    $ (22,075)   $   2,333
                                                       =========    =========


     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance due for the services described in 3a, b and c.  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  noncancelable triple net leases,  which  have  been
     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 Palm Harbor property which is 5 years and the
     Tractor  Supply Company which is 14 years.  The Leases  have
     renewal   options  which  may  extend  the  Lease  term   an
     additional 5 to 20 years.  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.
     
     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  completed  and
     acquired  in  1985.  The Palm Harbor property was  completed
     and  acquired  in 1986.  The Applebee's in Harlingen,  Texas
     and  the Tractor Supply Company in Maryville, Tennessee were
     completed  and  acquired  in 1995  and  1996,  respectively.
     There   have  been  no  costs  capitalized  as  improvements
     subsequent to the acquisitions.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1996 AND 1995

(4)  Investments in Real Estate - (Continued)

     The  cost  of  the  properties and the  related  accumulated
     depreciation at December 31, 1996 are as follows:

                                        Buildings and               Accumulated
Property                    Land          Equipment       Total    Depreciation

Rio Bravo, St. Paul, MN   $  289,776    $  506,085      $  795,861  $  276,125
Jack-In-The-Box,
  Fort Worth, TX             498,862       506,724       1,005,586     253,892
Hops Grill and Bar,
  Palm Harbor, FL            484,570       609,803       1,094,373     305,258
Applebee's, Harlingen, TX    450,395       943,075       1,393,470      39,277
Tractor Supply Company,
   Maryville, TN             153,623       683,435         837,058      21,619
                           ----------    ----------      ----------  ----------
                          $1,877,226    $3,249,122      $5,126,348  $  896,171
                           ==========    ==========      ==========  ==========

     On  March  20,  1995,  the  Partnership  sold  the  Hardee's
     restaurant  in  Sierra Vista, Arizona to an unrelated  third
     party.   The  Partnership received  net  sales  proceeds  of
     $296,020,  which  resulted in a net loss of $166,000,  which
     was recognized in 1994.
     
     On  July 19, 1995, the Partnership sold the Fair Muffler  in
     Ashwaubenon,  Wisconsin  to  the  lessee.   The  Partnership
     received net sale proceeds of $299,874, which resulted in  a
     net  gain  of $130,181.  At the time of sale, the  cost  and
     related   accumulated  depreciation  of  the  property   was
     $230,134 and $60,441, respectively.
     
     On  August  28,  1995,  the Partnership  sold  the  Hardee's
     restaurant   in   Wayne,  Nebraska  to  the   lessee.    The
     Partnership  received net sales proceeds of  $474,530  which
     resulted  in a net gain of $150,989.  At the time  of  sale,
     the   cost  and  related  accumulated  depreciation  of  the
     property was $447,944 and $124,403, respectively.
     
     During 1996 and 1995, the Partnership distributed $4,223 and
     $162,299 of the net sale proceeds to the Limited and General
     Partners  as  part of their regular quarterly distributions,
     which represented a return of capital of $.59 and $22.59 per
     Limited  Partnership Unit, respectively.  The remaining  net
     proceeds were reinvested in additional properties.
     
     On   December   21,  1995,  the  Partnership  purchased   an
     Applebee's  restaurant in Harlingen, Texas  for  $1,393,470.
     The property is leased to Renaissant Development Corporation
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $156,400.
     
     On  February  14,  1996, the Partnership  purchased  an  80%
     interest in a Tractor Supply Company in Maryville, Tennessee
     for  $837,058.   The  property is leased to  Tractor  Supply
     Company  under a Lease Agreement with a primary term  of  14
     years and annual rental payments of $90,300.
     
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1996 AND 1995

(4)  Investments in Real Estate - (Continued)

     The  minimum future rentals on the non-cancelable Leases for
     years subsequent to December 31, 1996 are as follows:

                       1997          $   529,817
                       1998              534,010
                       1999              550,822
                       2000              555,233
                       2001              559,756
                       Thereafter      5,601,295
                                      -----------
                                     $ 8,330,933
                                      ===========

     In  1996  and  1995,  the Partnership recognized  contingent
     rents of $19,579 and $66,971, respectively.

(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:
     
                                                   1996           1995
        Tenants                 Industry

    Carl Karcher
       Enterprises, Inc.           Restaurant    $ 135,582      $ 135,582
    Hops of Palm Harbor, Inc.      Restaurant       78,948         75,192
    Harwayne, Inc.                 Restaurant          N/A         42,212
    Innovative Restaurant
       Concepts, Inc.              Restaurant       63,385         58,990
    Renaissant Development Corp.   Restaurant      156,400            N/A
    Tractor Supply Company         Retail           79,402            N/A
                                                  ---------      ---------

    Aggregate rent revenue of major tenants      $ 513,717      $ 311,976
                                                  =========      =========

    Aggregate rent revenue of major tenants as
    a percentage of total rent revenue                100%            91%
                                                  =========      =========


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1996 AND 1995

(6)  Partners' Capital-

     Cash  distributions of $3,898 and $4,622 were  made  to  the
     General Partners and $375,600 and $448,505 were made to  the
     Limited  Partners  in  1996  and  1995,  respectively.   The
     Limited Partners' distributions represent $52.89 and  $62.99
     per  Limited  Partnership Unit outstanding using  7,101  and
     7,120 weighted average Units in 1996 and 1995, respectively.
     The  distributions represent $42.84 and $62.99 per  Unit  of
     Net  Income  and  $10.05  and $-0- per  Unit  of  return  of
     Contributed Capital in 1996 and 1995, respectively.
     
     As  part  of  the  Limited  Partner distributions  discussed
     above,  the  Partnership distributed $4,223 and $160,676  of
     proceeds from property sales in 1996 and 1995, respectively.
     The  distributions  reduced the Limited  Partners'  Adjusted
     Capital Contributions.
     
     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  1996  and  1995  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.
     
     During  1996, six Limited Partners redeemed a  total  of  22
     Partnership  Units  for  $10,294  in  accordance  with   the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net Cash Flow from operations.  In 1995, five Limited
     Partners  redeemed  a  total of  18  Partnership  Units  for
     $9,104.   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
     $905.31 per original $1,000 invested.
     

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1996 AND 1995

(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:
     
                                               1996         1995
     
     Net Income For Financial
      Reporting Purposes                    $ 317,664    $ 481,007
     
     Depreciation for Tax Purposes (Over)
      Under Depreciation For Financial
      Reporting Purposes                      (30,831)      15,396
     
     Net Gain on Sale of Real Estate for Tax
      Purposes Under Gain for Financial
      Reporting Purposes                            0      (77,556)
                                             ----------   ----------
           Taxable Income to Partners       $ 286,833    $ 418,847
                                             ==========   ==========
     
     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:
     
                                                1996          1995
      
     Partners' Capital For
      Financial Reporting Purposes          $ 4,265,776    $ 4,337,904
     
     Adjusted Tax Basis of Investments
      In Real Estate Under Net Investments
      In Real Estate for Financial
      Reporting Purposes                       (155,542)      (124,711)
     
     Capitalized Start-Up Costs
      Under Section 195                         363,592        363,592
     
     Amortization of Start-Up and
      Organization Costs                       (389,641)      (389,641)
     
     Organization and Syndication Costs
      Treated as Reduction of Capital
      For Financial Reporting Purposes        1,004,426      1,004,426
                                             -----------    -----------
           Partners' Capital For
              Tax Reporting Purposes        $ 5,088,611    $ 5,191,570
                                             ===========    ===========

                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1996 AND 1995

(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:
     
                                    1996                        1995
                           Carrying      Fair          Carrying      Fair
                            Amount       Value          Amount       Value
     
     Cash                $       396   $       396  $       913   $       913
     Money Market Funds      136,745       136,745    1,016,719     1,016,719
                          -----------   -----------  -----------   -----------
       Total Cash and
        Cash Equivalents $   137,141   $   137,141  $1,017,632    $ 1,017,632
                          ===========   ===========  ===========   ===========
     

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 52, 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 March, 1998.  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
Incorporated,  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 other limited partnerships.

        Mark  E.  Larson,  age 44, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue  in these positions until March, 1998.  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 March, 1998.  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.

        NLM, the Managing General Partner of the registrant,  and
Robert  P.  Johnson, its Individual General Partner,  contributed
$1,000 in total for their interest in the registrant.  See Item 1
for  a discussion of their share of the registrant's profits  and
losses.  During 1990, NLM purchased fourteen and one-half Limited
Partnership  Units  (less than 1% of the Units outstanding)  from
certain Limited Partners.

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 on Page 19 and  20,  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  Net Lease Agreement dated
                       February    14,    1996,    between    the
                       Partnership,  AEI  Real  Estate  Fund   XV
                       Limited  Partnership, and  Tractor  Supply
                       Company, relating to the property at  1800
                       Lamar    Alexander   Parkway,   Maryville,
                       Tennessee  (incorporated by  reference  to
                       Exhibit  10.1 of Form 8-K filed  with  the
                       Commission on February 14, 1996).

                  27   Financial Data Schedule
                       for year ended December 31, 1996.

             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 6, 1997              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  Officer)  March 6,1997
Robert P. Johnson       and Sole Director of Managing General
                        Partner

/s/  Mark  E. Larson    Executive Vice President, Treasurer        March 6, 1997
Mark E. Larson          and Chief Financial Officer
                        (Principal Accounting Officer)