EXHIBIT 99.4

                   ITALIAN VILLAGE AND VILLA MARINA APARTMENTS
                            Charlotte, North Carolina


     On August 28, 1997,  Cornerstone  Realty Income Trust, Inc. (the "Company")
purchased  the Italian  Village  Apartments  ("Italian  Village")  and the Villa
Marina Apartments  ("Villa  Marina"),  comprising a total of 204 apartment units
located at 6060 Landmark Drive, Charlotte,  North Carolina.  Italian Village and
Villa Marina are sometimes  referred to herein  collectively  as the "Property".
The Company has renamed the Property the "Heatherwood  Apartments," and plans to
operate the Property as an integrated  apartment  community with the Heatherwood
Apartments (formerly the Sterling Chase Apartments),  which are located adjacent
to the Property and which were purchased by the Company in September 1996.

     The  single  Seller  (Italian   Investment   Company,  a  partnership)  was
unaffiliated  with the Company and its  Affiliates.  The  purchase  price was an
aggregate of $7,425,000.  At closing, the Company paid the entire purchase price
with borrowed funds under its unsecured line of credit with First Union National
Bank.  Title to the  Property  was  conveyed to the Company by limited  warranty
deed.

     LOCATION.  The  following  information  is based in part  upon  information
provided by the Charlotte Chamber of Commerce.

     Based in part  upon its fast  rate of  growth  and a  diversified  economy,
Charlotte  has in recent  years  come to  national  attention  as an  attractive
location for business and residential growth. According to the August 1995, Site
Selection magazine,  Charlotte's  corporate  popularity ranked second nationally
only to Dallas  during the period  between 1990 and 1994,  being the site of 474
significant new and expanded facilities.

     Charlotte  has  developed  into  a  major   financial,   distribution   and
transportation  center,  with a  metropolitan  population of  approximately  1.3
million and a population of approximately  5.6 million within a 100-mile radius.
Charlotte's growth is also attributable to its favorable  year-round  climate, a
moderate cost of living,  excellent  quality of life,  educated work force,  pro
business  political climate,  extensive  transportation  network,  and strategic
geographic location.


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     According to the Charlotte Chamber of Commerce, during the first six months
of 1995, approximately 530 firms announced new or expanded businesses which will
provide  approximately  6,200 new jobs in the area.  Charlotte  is home to major
offices of more than 225 of the Fortune 500 industrial  firms and  approximately
300 of the Fortune 500 service firms.

     Charlotte  is the leading  financial  center of the  Southeast,  serving as
corporate   headquarters  to  NationsBank  and  First  Union,   with  assets  of
approximately  $170  billion  and $124  billion,  respectively.  The  growth  of
Charlotte's  banking and financial  communities has had a positive effect on the
growth  of its  supporting  industries,  such as  insurance,  accounting,  legal
services, and real estate.  Another recent aspect of Charlotte's  development is
as the location of professional  basketball and football franchises known as the
Charlotte Hornets and the Carolina Panthers, respectively.

     The city of  Charlotte  is located  near the border of North  Carolina  and
South Carolina within  Mecklenburg  County. It is located at the intersection of
Interstates 77 and 85, the major north/south and east/west  thoroughfares in the
region, which provide convenient access to all other regional areas.

     Italian Village and Villa Marina are located in a well-established  portion
of the expanding  Charlotte market. The surrounding  neighborhood  includes both
retail and residential  development and the Property enjoys convenient access to
all major  areas of the  city.  As noted  above,  the  Property  shares a common
property line with the  Heatherwood  Apartments  acquired by the Company in 1996
(under the name Sterling  Chase),  and the Company  intends to operate all three
properties as an integrated apartment community.  The properties are adjacent to
Providence  Square Shopping  Center,  which features a Harris Teeter and Eckerdt
Drug Store, and are readily accessible from Interstate 85 and Interstate 77. The
Property is located  approximately  four miles from the SouthPark  Mall area and
approximately  seven miles from the  Charlotte  central  business  district  via
Providence Road.

     DESCRIPTION OF THE PROPERTY. Italian Village was built in 1970 and 1971 and
consists of 156 garden- and  townhouse-style  apartments on  approximately  22.5
acres of land.  Italian Village offers eight unit types.  The unit mix and rents
currently being charged to new tenants are as follows.


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                                              APPROXIMATE
                                               INTERIOR                 MONTHLY
QUANTITY            TYPE                    SQUARE FOOTAGE              RENTAL
--------            ----                    --------------              ------
   20          One bedroom, one bath              728                    $510
   7           One bedroom, one bath              950                     500
               (large)
   7           Two bedrooms, one                1,000                     550
               bath
   15          Two bedrooms, two                1,060                     610
               baths
   18          Two bedrooms, one and            1,116                     610
               one half baths
               (townhouse)
   20          Three bedrooms, two              1,235                     710
               baths
   52          Three bedrooms, two              1,578                     710
               and one half baths
               (townhouse)
   17          Four bedrooms, two               1,992                     870
               and one half baths
               (townhouse)


     Villa Marina was built in 1980.  Villa Marina  consists of 48  garden-style
apartments on approximately four acres. It offers two unit types. The unit types
and rents currently being charged new tenants are as follows.


                                            APPROXIMATE
                                             INTERIOR                   MONTHLY
QUANTITY                TYPE              SQUARE FOOTAGE                RENTAL
--------                ----              --------------                ------
   36          One bedroom, one bath            700                      $510
   12          Two bedrooms, two              1,000                       610
               baths


         The units at the Property provide for a combined total of approximately
242,000 square feet of net rentable area. The


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Property  features  two outdoor  swimming  pools,  a tennis  court and a laundry
facility.  There  are also two  lakes  and a  playground  on the  Property.  The
Property has a clubhouse with a kitchen,  fireplace and leasing office. There is
ample paved parking for tenants.

     The Company  believes that the Property has generally been well  maintained
and is in good condition.  However, the Company believes that the Property is in
need of a "face-lift." The Property has a desirable location but, in the opinion
of management,  must be repositioned in the  marketplace  following  significant
capital improvements.  Management of the Company believes that the completion of
the capital  improvements  and  repositioning of the Property in the market will
permit  substantial  increases in rents. The Company has budgeted  approximately
$1,750,000 in renovations  to the Property,  which will include  residing,  roof
replacement,  replacing and  repainting  trim and fascia board,  repaving of the
parking areas, extensive interior upgrades and clubhouse renovations.

     Leases at the Property are for terms of one year or less. Generally, rental
rates for the past five years at the Property have increased.  As an example,  a
two bedroom,  one and  one-half  bath (1,116  square feet)  apartment at Italian
Village rented for $455 in 1992,  $460 in 1993,  $495 in 1994, $520 in 1995, and
$545 in 1996.  The average  effective  annual  rental per square foot at Italian
Village for 1992, 1993, 1994, 1995, and 1996 was $4.53, $4.58, $4.93, $5.18, and
$5.43 respectively. A one bedroom, one bath (700 square feet) apartment at Villa
Marina rented for $400 in 1992,  $405 in 1993,  $415 in 1994,  $425 in 1995, and
$435 in 1996.  The  average  effective  annual  rental per square  foot at Villa
Marina for 1992, 1993, 1994, 1995, and 1996 was $6.50,  $6.58, $6.75, $6.91, and
$7.07, respectively.

     The 18 two- and  three-story  buildings  at Italian  Village  are  concrete
masonry and wood-frame  construction on concrete slabs. The exteriors are stucco
on  concrete  masonry or painted  wood  siding and the roofs  consist of plywood
sheathing  and three tab  shingles.  The three  three-story  buildings  at Villa
Marina are wood-frame with painted  masonite  siding.  The roofs at Villa Marina
consist of plywood sheathing and three tab shingles.

     All  apartment  units have  wall-to-wall  carpeting in the living areas and
vinyl floors in the kitchen and bath. Each apartment unit has a cable television
hook-up and an individually  controlled  heating and air conditioning unit. Each
kitchen  is  equipped  with a  refrigerator/freezer,  electric  range  and oven,
dishwasher  and garbage  disposal.  Selected  units at Italian  Village  feature
vaulted ceilings, skylights, wet bars and large


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balconies or decks.  Selected units at Villa Marina include fireplaces and large
balconies.  The owner of the Property  supplies  cold water,  sewer  service and
trash  removal.  The tenants are  responsible  for  electricity,  which includes
heating, air conditioning, hot water, cooking and lights.

     There are at least five apartment  properties in the area that compete with
the Property.  As noted above, in 1996, the Company purchased the Sterling Chase
Apartments,  located  adjacent to Italian Village and Villa Marina.  The Company
intends to operate all three  apartment  properties as an  integrated  apartment
community  known as  Heatherwood.  The other  properties  that will compete with
Heatherwood offer similar amenities and generally have rents that are comparable
to  those of the  Property.  Based on a recent  telephone  survey,  the  Company
estimates that occupancy in nearby competing projects now averages approximately
93%.

     According  to  information  provided by the seller,  physical  occupancy at
Italian  Village and Villa Marina  averaged  approximately  93% in 1992,  94% in
1993,  94% in 1994,  94% in 1995,  and 96% in 1996.  On  August  20,  1997,  the
Property was 93% occupied.  The tenants of the Property are a mix of blue-collar
and white-collar workers, students and retired persons. Of the tenants for which
financial  information  was  available,  the tenants were  approximately  evenly
divided among the following four income levels:  below $20,000;  between $20,000
and $30,000;  between $30,000 and $40,000; and in excess of $40,000.  Management
of the Company  believes that the resident profile is somewhat below that of the
general market area.

     The  following  tables set forth 1996 real estate tax  information  for the
Property.


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ITALIAN VILLAGE

                                                  TAX
            ASSET               VALUE             RATE              TAX
            -----               -----             ----              ---
Land                         $1,074,760.00      $1.2550         $13,488.24
Buildings                     3,560,490.00       1.2550          44,684.15
Other features                   44,980.00       1.2550             564.50
                                 ---------                          ------
   Total                     $4,680,230.00                      $58,736.89
                             =============                      ==========
        Solid Waste Fee:                                         $5,148.00
        TOTAL TAX:                                              $63,884.89
                                                                ==========



VILLA MARINA


                                                  TAX
            ASSET               VALUE             RATE              TAX
            -----               -----             ----              ---
Land                           $337,680.00      $1.2550          $4,237.88
Buildings                       978,320.00       1.2550          12,277.92
Other features                   56,570.00       1.2550             709.95
                                 ---------                          ------
   Total                     $1,372,570.00                      $17,225.75
                             =============                      ==========
        Solid Waste Fee:                                         $1,617.00
        TOTAL TAX:                                              $18,842.75
                                                                ==========


     The  Company  believes  that  the  Property  is  and  will  continue  to be
adequately covered by property and liability insurance.

     Material  Factors  Considered  in  Assessing  the  Property.   The  factors
considered  by the  Company  to be  relevant  in  evaluating  the  Property  for
acquisition by the Company included the following:

     1. The  Company  believes  that the  Charlotte,  North  Carolina  area will
experience continued strong economic development and steady population increase,
and that such development and


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increase will support stable  occupancy rates and reasonable  increases in rents
at the Property.

     2. Based upon an engineering  report and its own  inspections,  the Company
believes that the Property is in generally  sound  condition.  In addition,  the
Company  believes  that  the  completion  of  its  planned  significant  capital
improvements  will  reposition  the  Property  in  its  marketplace  and  permit
significant increases in rental rates to prevailing market levels.

     3. The Property is  conveniently  located and proximate to major  employers
and shopping.

     4. The Company is very  familiar  with the  Charlotte  rental  market.  The
Company already owns other apartment  complexes in the Charlotte area, which may
provide  certain  economies  and  efficiency in operation.  In  particular,  the
Company already owns an apartment community located immediately  adjacent to the
Property.  The Company  believes that the knowledge it has obtained  through the
prior  operation  of  the  adjacent  property  will  provide  advantages  in the
operation  of the new Property  and that the  operation of all of the  apartment
properties as an integrated  community will offer  operational,  advertising and
marketing advantages.

     The Company is not aware of any material  adverse  factors  relating to the
Property not set forth in this report that would cause the financial information
contained in this report not to be  necessarily  indicative of future  operating
results.



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