EXHIBIT 10.50

                      Cornerstone Realty Income Trust, Inc.
                             Stock Option Agreement

                                  July 23, 1999

Glade M. Knight
306 East Main Street
Richmond, Virginia  23219

Dear Mr. Knight:

         You have been  designated  to receive a  nonstatutory  stock  option to
purchase  shares of the common stock of  Cornerstone  Realty Income Trust,  Inc.
(the  "Company")  on the terms set forth in this letter.  A  nonstatutory  stock
option is an option  that  does not  receive  special  tax  treatment  under the
Internal Revenue Code.

         This letter  constitutes an option agreement (the "Agreement")  between
you and the  Company.  The  Compensation  Committee  of the  Company"s  Board of
Directors  shall  administer  this  Agreement.  The terms and  conditions of the
option award are as follows:

         1. Nonstatutory Option. In consideration of your agreement contained in
this  letter,  the  Company  hereby  grants to you a  nonstatutory  option  (the
"Option") to purchase  from the Company up to 348,771  shares of common stock of
the  Company  ("Company  Stock") at a price of $10.1250  per share (the  "Option
Price").

         2.  Option  Vesting.  The  Option  shall  vest and  become  exercisable
immediately upon granting (the "Date of Grant").

         3. Expiration of the Option. The Option will expire ten (10) years from
the Date of Grant (the "Expiration Date").


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         4.  Entitlement  to  Exercise  the  Option.  The grant of the Option is
subject to the following terms and conditions:

             (a) Except as otherwise stated in this Agreement, the Option may be
         exercised,  in  whole or in part,  from  the  Date of Grant  until  the
         earliest of (i) the Expiration  Date, (ii) 60 days from your retirement
         or  termination  of your status as an executive  officer of the Company
         for reasons other than death or disability,  or (iii) 180 days from the
         date you terminate  your status as an executive  officer of the Company
         by reason of death or  disability.  The  Committee  shall,  in its sole
         discretion, determine whether the executive officer is disabled.

             (b) Except as otherwise stated in this paragraph, the Option may be
         exercised only while you are an executive officer of the Company.

         5. Payment  Under Option.  You may exercise the Option,  in whole or in
part,  but only with respect to whole shares of Company  Stock.  You may pay the
Option price in cash, in Mature Shares of Company Stock,  or in any  combination
thereof.  For purposes of this  Agreement,  "Mature Shares" shall mean shares of
Company  Stock for which the holder has good title,  free and clear of all liens
and  encumbrances  and which  such  holder  either (i) has held for at least six
months,  or (ii) has purchased on the open market.  If you deliver Mature Shares
of Company  Stock to make any such  payment,  the shares  shall be valued at the
Fair Market Value  thereof on the date you exercise the Option.  For purposes of
this  Agreement,  "Fair Market Value" shall mean, on any given date,  (i) if the
Company Stock is traded on an exchange,  the closing  registered  sales price of
the  Company  Stock on such day on the  exchange on which it  generally  has the
greatest   trading  volume,   (ii)  if  the  Company  Stock  is  traded  in  the
over-the-counter market, the average between the closing bid and asked prices on
such day as reported by NASDAQ,  or (iii) if the Company  Stock is not traded on
any exchange or in the  over-the-counter  market, the Fair Market Value shall be
determined by the Committee using any reasonable method in good faith.

         6.  Transferability  of Option.  The Option is not  transferable by you
(other than by will or by the laws of descent and  distribution)  and, except as
otherwise  stated in this letter,  may

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be exercised  during your lifetime only by you.  Notwithstanding  the preceding,
you shall have the right to transfer the rights under the Option granted in this
Agreement during your lifetime subject to the following limitations:

             (a) transfers may be made only to the  following  transferees:  (i)
         the     optionee"s     children,     step-children,      grandchildren,
         step-grandchildren or other lineal descendants (including relationships
         arising  from  legal  adoptions)  (such   individuals  are  hereinafter
         referred to as  "Immediate  Family  Members");  (ii)  trust(s)  for the
         exclusive benefit of any one or more of the optionee"s Immediate Family
         Members (the  optionee"s  spouse may also be a  beneficiary);  or (iii)
         partnership(s),  limited liability compan(ies) or other entit(ies), the
         only  partners,  members  or  interest  holders  of which are among the
         optionee"s  Immediate  Family Members (the  optionee"s  spouse may also
         hold an interest);

             (b) there may be no consideration for the transfer;

             (c) there may be no subsequent  transfer of the transferred  Option
         except by will or the laws of descent and distribution;

             (d) following transfer,  the Option shall continue to be subject to
         the same terms and conditions as were applicable  immediately  prior to
         transfer (including the conditions under which the Option may terminate
         prior to its  expiration);  except that the transferee  rather than the
         optionee  may  deliver  the Option  exercise  notice and payment of the
         exercise price;

             (e) written  notice of any transfer  must be delivered to the Chief
         Financial Officer of the Company; and

             (f)  the   optionee"s   estate  may  transfer  the  Option  to  the
         beneficiaries  of such estate,  subject to the limitations set forth in
         items (b) through (e) above.

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         7. Adjustments. If the number of outstanding shares of Company Stock is
increased or decreased as a result of: (i) a  subdivision  or  consolidation  of
shares,  (ii) the payment of a stock dividend,  (iii) a stock split, or (iv) any
other  change  in the  capitalization  that  is  effective  without  receipt  of
consideration  by the  Company,  the number of shares with  respect to which you
have an unexercised Option and the Option price shall be appropriately  adjusted
by the Company, whose determination shall be binding.

         8.  Triggering  Events.  Notwithstanding  any  other  provision  to the
contrary,  in the case of the  occurrence  of a  "Triggering  Event," as defined
herein,  the  provisions  of this  Section 8 shall  apply.  For purposes of this
Section 8, a  "Triggering  Event"  occurs  when (i) a  majority  of the Board of
Directors of the Company is comprised of persons other than (A) those  directors
who are serving at the date of this  Agreement and (B) any new  directors  whose
nomination  or election  is  approved  by a majority  of the Board of  Directors
serving at the date of this  Agreement,  (ii) the  shareholders  of the  Company
approve a  reorganization,  merger or  consolidation  which would  result in the
shareholders of the Company  immediately  prior to such transaction  owning less
than a majority of the  outstanding  shares or voting  power of the  corporation
resulting from such  transaction,  (iii) the shareholders of the Company approve
the  liquidation  or dissolution of the Company,  (iv) the  shareholders  of the
Company  approve the sale or other  disposition  of 50% or more of the Company's
consolidated  assets or earnings power, (v) any person,  entity or group (within
the meaning of Section  13(d)(3) under the  Securities  Exchange Act of 1934 and
the regulations interpreting it, or any successor provisions to such statute and
regulations)  becomes  the  beneficial  owner of 20% or more of the  outstanding
common  shares  of the  Company,  or (vi)  any two of  Glade  M.  Knight,  Chief
Executive Officer of the Company, Debra A. Jones, Chief Operating Officer of the
Company,  or Stanley J. Olander,  Jr., Chief  Financial  Officer of the Company,
cease to serve in such  positions  for any reason  other than death or permanent
disability.

             (a) Upon a Triggering  Event, the Option shall be exercisable at an
         exercise  price of  $1.00  per  share  of  Company  Stock  (subject  to
         adjustments  pursuant to Section 7 hereof) and remain  exercisable  for
         180 days following the occurrence of such event.

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             (b) If you elect in writing  not to  exercise  the Option or if you
         fail to exercise  the Option  within the 180 day period as described in
         subparagraph (a) above, the Company shall,  immediately upon receipt of
         such written election or expiration of the 180 day period,  pay you, in
         cash,  the  difference  between the exercise  price and the Fair Market
         Value of the Company  Stock that could be obtained upon exercise of the
         Option (or, as  appropriate,  the fair market  value,  as determined in
         good faith by the Committee,  of securities received in exchange for or
         receivable  in  lieu  of  such  Company  Stock  in  the  context  of an
         acquisition  transaction  that  constitutes a Triggering Event in which
         Company Stock is to be exchanged for or replaced by other securities).

             (c) If the exercise of the Option or the receipt of payment in lieu
         of such  exercise  results in income  (collectively,  "Option  Income")
         which would  subject you to an excise tax under  Internal  Revenue Code
         Sections  280G or 4999,  the  Company  shall  pay to you,  in cash,  an
         additional  amount  equal  to the  sum of the  excise  tax  due and the
         federal,  state and local  income  taxes due on the  additional  amount
         (cumulatively,  the  "Gross-Up  Payment"),  such  that  the net  amount
         retained  by you will equal the Option  Income.  The  Gross-Up  Payment
         shall be paid to you as soon as possible  following the exercise of the
         vested  portion of the Option or the receipt of payment in lieu of such
         exercise,  but in no event later than ninety (90)  calendar  days after
         such date.  For  purposes  of  determining  the amount of the  Gross-Up
         Payment,  you  shall be  deemed  to pay  federal  income  taxes at your
         highest  marginal  rate in the  calendar  year in  which  the  Gross-Up
         Payment  is to be made and the  state and  local  income  taxes at your
         highest marginal rates in the state and locality of your residence, net
         of the  maximum  reduction  in  federal  income  taxes  which  could be
         obtained from deduction of such state and local taxes.

         9. Exercise and Notices.  To exercise your Option,  you must deliver to
the Chief  Financial  Officer  of the  Company  written  notice,  signed by you,
stating the number of shares you have  elected to  purchase,  and payment to the
Company as  described  in paragraph 5. Any notice to be given under the terms of
this letter shall be addressed to the Chief Financial  Officer of the Company at
the Company"s primary business address,  and any notice to be given to you shall
be

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given to you or your personal representative,  legatee or distributee, and shall
be  addressed  to him or her at the address set forth  above.  Either  party may
hereafter  designate  in writing any other  address for  purposes of notice in a
notice duly sent to the other.  Notices  shall be deemed to have been duly given
if mailed, postage prepaid, addressed as aforesaid.

         10. Withholding.  By signing this letter, you agree to make arrangement
satisfactory   to  the  Company  to  comply  with  any  income  tax  withholding
requirements that may apply upon the exercise of the Option.

         11.  Continuation as Officer of the Company.  Neither the Agreement nor
the Option  confers  upon you any right to continue as an officer of the Company
or limits in any respect the right of the Company to terminate your status as an
officer.

         12.  Delivery of  Certificate.  The  Company may delay  delivery of the
certificate for shares purchased pursuant to the exercise of an Option until (i)
the  admission  of such  shares to  listing on any stock  exchange  on which the
Company Stock may then be listed, (ii) receipt of any required representation by
you or  completion of any  registration  or other  qualification  of such shares
under any state or federal law or regulation  that the  Company"s  counsel shall
determine as necessary or advisable,  and (iii) receipt by the Company of advice
by counsel that all applicable legal  requirements have been complied with. As a
condition of exercising  the Option,  you may be required to execute a customary
written  indication of your investment  intent and such other  agreements as the
Company deems  necessary or  appropriate  to comply with  applicable  securities
laws.

         13. Acceptance of Option. Your acceptance of the Option, which shall be
deemed to take place when you sign where  indicated  on this  letter,  places no
obligation or commitment on you to exercise the Option.  By signing  below,  you
indicate  your  acceptance  of the  Option and your  agreement  to the terms and
conditions set forth in this letter,  which shall become the Company"s Agreement
with you. Unless the Company  otherwise agrees in writing,  this letter will not
be effective as an Agreement if such copy is not signed and returned.

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                                           CORNERSTONE REALTY INCOME TRUST, INC.

                                          /s/ Stanley J. Olander, Jr.
                                          --------------------------------------
                                          Chief Financial Officer

Agreed and Accepted:


/s/  Glade M. Knight
--------------------
Glade M. Knight


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