<PAGE>

                                                               EXECUTION VERSION
                                                                       3766740v5

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                           PURCHASE AND SALE AGREEMENT

                                     BETWEEN

                           POST APARTMENT HOMES, L.P.,
                          A GEORGIA LIMITED PARTNERSHIP

                                   AS SELLER,

                                       AND

                             RREEF AMERICA, L.L.C.,
                      A DELAWARE LIMITED LIABILITY COMPANY

                                  AS PURCHASER

                               AS OF JUNE 10, 2005

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   The Arbors of Post Village(R)                     Cobb County, Georgia
   The Hills of Post Village(R)                      Cobb County, Georgia
   The Gardens of Post Village(R)                    Cobb County, Georgia
   The Fountains of Post Village(R)                  Cobb County, Georgia
   The Meadows of Post Village(R)                    Cobb County, Georgia

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                        PAGE
                                                                                        ----
<S>                                                                                     <C>
ARTICLE 1        PURCHASE AND SALE.................................................        1

   1.1        Agreement of Purchase and Sale.......................................        1
   1.2        Property Defined.....................................................        3
   1.3        Permitted Exceptions.................................................        4
   1.4        Purchase Price.......................................................        4
   1.5        Payment of Purchase Price............................................        4
   1.6        Earnest Money........................................................        4
   1.7        Ownership of Post(R) Tradenames and Service Marks....................        6
   1.8        Portfolio Financing..................................................        7
   1.9        Bond Period..........................................................       10

ARTICLE 2        TITLE AND SURVEY..................................................       10

   2.1        Title Examination; Commitment for Title Insurance....................       10
   2.2        Survey...............................................................       10
   2.3        Title Objections; Cure of Title Objections...........................       11
   2.4        Conveyance of Title..................................................       12
   2.5        Pre-Closing "Gap" Title Defects......................................       13
   2.6        Seller's Covenant Not to Encumber....................................       14
   2.7        Acknowledgement of Declaration.......................................       14
   2.8        Post Villages Northwest Owners Association...........................       14

ARTICLE 3        INSPECTION PERIOD.................................................       15

   3.1        Right of Inspection..................................................       15
   3.2        Right of Termination.................................................       16

ARTICLE 4        CLOSING...........................................................       16

   4.1        Time and Place.......................................................       16
   4.2        Seller's Obligations at Closing......................................       16
   4.3        Purchaser's Obligations at Closing...................................       19
   4.4        Credits and Prorations...............................................       20
   4.5        Transaction Costs....................................................       23
   4.6        Conditions Precedent to Obligation of Purchaser......................       24
   4.7        Conditions Precedent to Obligation of Seller.........................       25
   4.8        Seller's Tax Deferred Exchange.......................................       26

ARTICLE 5        REPRESENTATIONS, WARRANTIES AND COVENANTS.........................       26

   5.1        Representations and Warranties of Seller.............................       27
   5.2        Knowledge Defined....................................................       30
   5.3        Survival of Seller's Representations and Warranties..................       31
   5.4        Covenants of Seller..................................................       31
   5.5        Representations and Warranties of Purchaser..........................       33
   5.6        Survival of Purchaser's Representations and Warranties...............       35
   5.7        Covenants of Purchaser...............................................       35
</TABLE>

                                     - i -

<PAGE>

<TABLE>
<S>                                                                                       <C>
ARTICLE 6        DEFAULT...........................................................       36

   6.1        Default by Purchaser.................................................       36
   6.2        Default by Seller....................................................       37
   6.3        Notice of Default; Opportunity to Cure...............................       37
   6.4        Recoverable Damages..................................................       38

ARTICLE 7        RISK OF LOSS......................................................       38

   7.1        Minor Damage.........................................................       38
   7.2        Major Damage.........................................................       39
   7.3         Definition of Major Damage..........................................       39

ARTICLE 8        COMMISSIONS.......................................................       39

   8.1        Broker's Commission..................................................       40
   8.2        Representation and Indemnity.........................................       40
   8.3        Execution by Broker..................................................       40
   8.4        Survival.............................................................       41

ARTICLE 9        DISCLAIMERS AND WAIVERS...........................................       41

   9.1        No Reliance on Documents.............................................       41
   9.2        Disclaimers..........................................................       41
   9.3        Effect and Survival of Disclaimers...................................       44

ARTICLE 10       ESCROW AGENT......................................................       44

   10.1       Investment of Earnest Money..........................................       44
   10.2       Payment at Closing...................................................       44
   10.3       Payment on Demand....................................................       44
   10.4       Exculpation of Escrow Agent..........................................       44
   10.5       Stakeholder..........................................................       44
   10.6       Interest.............................................................       45
   10.7       Execution by Escrow Agent............................................       45

ARTICLE 11       MISCELLANEOUS.....................................................       45

   11.1       Confidentiality......................................................       45
   11.2       Public Disclosure....................................................       45
   11.3       Assignment...........................................................       45
   11.4       Notices..............................................................       46
   11.5       Modifications........................................................       48
   11.6       Calculation of Time Periods..........................................       48
   11.7       Successors and Assigns...............................................       48
   11.8       Entire Agreement.....................................................       48
   11.9       Further Assurances...................................................       48
   11.10      Counterparts.........................................................       49
   11.11      Severability.........................................................       49
   11.12      Applicable Law.......................................................       49
   11.13      No Third Party Beneficiary...........................................       49
   11.14      Employees............................................................       49
   11.15      Seller's Access to Records after Closing.............................       49
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<S>                                                                                    <C>
11.16      Captions.............................................................       50
11.17      Construction.........................................................       50
11.18      Termination of Agreement.............................................       50
11.19      Survival.............................................................       50
11.20      Time of Essence......................................................       50
11.21      Covenant Not to Record...............................................       50
11.22      Limitation of Seller's Liability.....................................       50
11.23      Schedules............................................................       51
</TABLE>

                                    - iii -

<PAGE>

                           PURCHASE AND SALE AGREEMENT

      THIS PURCHASE AND SALE AGREEMENT (this "AGREEMENT") is made as of June 10,
2005 (the "EFFECTIVE DATE"), by and between POST APARTMENT HOMES, L.P., a
Georgia limited partnership ("SELLER"), and RREEF AMERICA, L.L.C., a Delaware
limited liability company ("PURCHASER").

      FIDELITY NATIONAL TITLE INSURANCE COMPANY OF NEW YORK, a New York
corporation ("ESCROW AGENT"), and CB RICHARD ELLIS, INC., a Georgia licensed
real estate broker ("BROKER") are parties to this Agreement for the limited
purposes set forth herein.

                                   WITNESSETH:

                                    ARTICLE 1

                                PURCHASE AND SALE

      1.1 AGREEMENT OF PURCHASE AND SALE. Subject to the terms and conditions
hereinafter set forth, Seller agrees to sell and convey and Purchaser agrees to
purchase the following:

            (a) those certain tracts or parcels of land containing the
      approximate number of acres and in the location as set forth below, as
      more particularly described on Schedules 1.1(a)-1 through 1.1(a)-5,
      attached hereto and made a part hereof (the property described in this
      clause (a) being herein referred to collectively as the "LAND");

<TABLE>
<CAPTION>
          PROJECT                            COUNTY AND STATE               APPROX. ACRES       SCHEDULE
<S>                                          <C>                          <C>                   <C>
The Arbors of Post Village(R)                Cobb County, GA                      25            1.1(a)-1
The Hills of Post Village(R)                 Cobb County, GA                      15            1.1(a)-2
The Gardens of Post Village(R)               Cobb County, GA                    30.875          1.1(a)-3
The Fountains of Post Village(R)             Cobb County, GA                    42.424          1.1(a)-4
The Meadows of Post Village(R)               Cobb County, GA                 included in        1.1(a)-5
                                                                          Fountains acreage
</TABLE>

            (b) those rights, easements and appurtenances pertaining to the
      Land, including (i) all right, title and interest of Seller (if any) in
      and to adjacent streets, alleys or rights-of-way, (ii) all right, title
      and interest of Seller (if any) with respect to any easements that benefit
      or burden the Land, and (iii) all right, title and interest of Seller (if
      any) in any water rights or oil, gas and mineral rights that benefit or
      burden the Land (the property described in this clause (b) herein referred
      to collectively as the "RELATED RIGHTS");

<PAGE>

            (c) the buildings, structures, fixtures and other improvements on
      the Land, including specifically, without limitation, those certain
      buildings having the names, street addresses and number of apartment units
      as set forth below (the property DESCRIBED in this clause (c) being herein
      referred to collectively as the "IMPROVEMENTS"; and the Land, the Related
      Rights AND the Improvements being hereinafter sometimes collectively
      referred to as the "REAL PROPERTY"):

<TABLE>
<CAPTION>
           PROJECT                                     STREET ADDRESS:                         APARTMENT UNITS
<S>                                        <C>                                                 <C>
                                           NOTE: SELLER USES A COMBINED ADDRESS OF:
                                           2085 LAKE PARK DRIVE
                                           SMYRNA, GEORGIA  30080
                                           (COBB COUNTY TAX ASSESSOR'S OFFICE ASSESSES
                                           THE PROPERTIES AS NOTED BELOW*)

The Arbors of Post Village(R)              2053 Lake Park Drive*                                   301 Units
                                           Smyrna, Georgia  30080

The Hills of Post Village(R)               2063 Lake Park Drive*                                   241 Units
                                           Smyrna, Georgia  30080

The Gardens of Post Village(R)             2085 Lake Park Drive                                    494 Units
                                           Smyrna, Georgia  30080
                                           (tax assessor records - Pasadena Boulevard*
                                           - former name of Village Parkway)

The Fountains of Post Village(R)           2085 Lake Park Drive                                    352 Units
                                           Smyrna, Georgia  30080
                                           (tax assessor records - Pasadena Boulevard*
                                           - former name of Village Parkway)

The Meadows of Post Village(R)             2085 Lake Park Drive                                    350 Units
                                           Smyrna, Georgia  30080                              -------------
                                           (tax assessor records - Pasadena Boulevard*
                                           - former name of Village Parkway)
TOTAL APARTMENT  UNITS                                                                           1,738 UNITS
</TABLE>

            (d) all of Seller's right, title and interest in and to those items
      of tangible personal property located on the Land or within the
      Improvements owned by Seller and used exclusively in connection with the
      ownership, use, maintenance or operation of the Land and the Improvements,
      and specifically including those items of tangible personal property
      identified on Schedules 1.1(d)-1 through 1.1(d)-6 attached hereto and
      incorporated herein by this reference, but excluding (i) cash and cash
      equivalents, (ii) computer software and computer files, (iii) any time
      clocks, (iv) personal property owned by tenants under the Leases, (v)
      equipment installed by, or in connection with, any telecommunication or
      utility provider and which is owned by any party other than Seller, (vi)
      any items owned by employees of Seller or any property manager, (vii)
      items leased to Seller, and (viii) all brochures, advertising copy,
      promotional materials, manuals, reports, portfolios, binders, training
      materials and other items on which the name "Post" or any of the Marks (as
      defined in Section 1.7) appears (the property described in this

                                       2

<PAGE>

      clause (d), other than the excluded items, being herein referred to
      collectively as the "TANGIBLE PERSONAL PROPERTY"):

<TABLE>
<CAPTION>
                                                          SCHEDULE FOR INVENTORY OF TANGIBLE
         PROJECT                                                   PERSONAL PROPERTY
<S>                                                       <C>
The Arbors of Post Village(R)                                          1.1(d)-1
The Hills of Post Village(R)                                           1.1(d)-2
The Gardens of Post Village(R)                                         1.1(d)-3
The Fountains of Post Village(R)                                       1.1(d)-4
The Meadows of Post Village(R)                                         1.1(d)-5
</TABLE>

            (e) all of Seller's right, title and interest as landlord or lessor
      in, to and under all agreements listed and described on Schedules 1.1(e)-1
      through 1.1(e)-5 (collectively, the "RENT ROLL") attached hereto and made
      a part hereof, pursuant to which any portion of the Land or Improvements
      is used or occupied by anyone other than Seller (the property described in
      this clause (e) being herein referred to collectively as the "LEASES");

<TABLE>
<CAPTION>
           PROJECT                                      RENT ROLL SCHEDULE
<S>                                                     <C>
The Arbors of Post Village(R)                               1.1(e)-1
The Hills of Post Village(R)                                1.1(e)-2
The Gardens of Post Village(R)                              1.1(e)-3
The Fountains of Post Village(R)                            1.1(e)-4
The Meadows of Post Village(R)                              1.1(e)-5
</TABLE>

            (f) all of Seller's right, title and interest in, to and under (i)
      the Designated Service Contracts (as defined in Section 5.7(b) of this
      Agreement), (ii) all assignable existing warranties and guaranties issued
      to or inuring to the benefit of Seller in connection with the Improvements
      or the Tangible Personal Property, and (iii) all governmental permits,
      licenses and approvals, if any, belonging to or inuring to the benefit of
      Seller and pertaining to the Real Property or the Tangible Personal
      Property, but only to the extent that such permits, licenses and approvals
      are assignable and only to the extent that such permits, licenses and
      approvals relate to the Real Property or the Tangible Personal Property as
      opposed to other property of Seller, but excluding any rights in or to the
      use of the Marks (the property described in this clause (f), other than
      the excluded items, being sometimes herein referred to collectively as the
      "INTANGIBLE PROPERTY").

      1.2 PROPERTY DEFINED. The Land, the Related Rights, the Improvements, the
Tangible Personal Property, the Leases and the Intangible Property are
hereinafter sometimes referred to collectively as the "PROPERTY." The apartment
communities commonly known as The Arbors of Post Village(R), The Hills of Post
Village(R), The Gardens of Post Village(R), The

                                       3

<PAGE>

Fountains of Post Village(R) and The Meadows of Post Village(R), are sometimes
referred to individually as a "PROJECT" and collectively as the "PROJECTS."

      1.3 PERMITTED EXCEPTIONS. The Property shall be conveyed, and Purchaser
shall accept the Property, subject to the matters which are, or are deemed to
be, Permitted Exceptions pursuant to ARTICLE 2 hereof (herein referred to
collectively as the "PERMITTED EXCEPTIONS").

      1.4 PURCHASE PRICE. Seller is to sell and Purchaser is to purchase the
Property for a total purchase price of ONE HUNDRED THIRTY-TWO MILLION FIVE
HUNDRED THOUSAND DOLLARS ($132,500,000.00) (the "PURCHASE PRICE"). Seller and
Purchaser agree that the Purchase Price is allocated among the Projects as
follows:

<TABLE>
<CAPTION>
         PROJECT                                                           PURCHASE PRICE
<S>                                                                        <C>
The Arbors of Post Village(R)                                                 $24,949,000
The Hills of Post Village(R)                                                  $18,820,000
The Gardens of Post Village(R)                                                $37,351,000
The Fountains of Post Village(R)                                              $26,007,000
The Meadows of Post Village(R)                                                $25,373,000

TOTAL                                                                      $ 132,500,000.00
</TABLE>

      1.5 PAYMENT OF PURCHASE PRICE. The Purchase Price, less the principal
amount of the Assumed Project Financing (as hereinafter defined) and as adjusted
by prorations and adjustments as herein provided, shall be payable in full at
Closing in cash by wire transfer of immediately available federal funds to a
bank account of Escrow Agent designated by Escrow Agent in writing to Purchaser
prior to the Closing ("ESCROW AGENT'S ACCOUNT"), and, as adjusted by prorations
and adjustments as herein provided, shall be subsequently payable in full at
Closing in cash by wire transfer of immediately available federal funds to a
bank account designated by Seller in writing to Escrow Agent prior to the
Closing.

      1.6 EARNEST MONEY.

            (a) Within three (3) business days following the Effective Date,
      Purchaser shall deposit with the metropolitan Atlanta, Georgia office of
      Escrow Agent (1800 Parkway Place, Suite 700, Marietta, Georgia 30067) the
      sum of ONE MILLION AND NO/100 DOLLARS ($1,000,000.00) (the "FIRST
      DEPOSIT") by wire transfer of immediately available funds or by deposit of
      a letter of credit in such amount in accordance with subsections 1.6(f)
      through (h) below.

            (b) If Purchaser does not exercise the right to terminate this
      Agreement in accordance with Section 3.2 hereof, then Purchaser shall, on
      or before the date that is two (2) days after the Inspection Date (as
      defined in Section 3.2 hereof), deposit with such office of Escrow Agent
      the additional sum of Three HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS
      ($350,000.00) (the "SECOND DEPOSIT") by wire transfer of immediately
      available funds. The amount of the Second Deposit shall be increased to
      ONE MILLION

                                       4

<PAGE>

      THREE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($1,350,000.00) if
      Purchaser makes the First Deposit as a letter of credit as provided in
      Section 1.6(f) below.

            (c) The First Deposit and the Second Deposit, when and to the extent
      deposited, shall constitute earnest money and are herein referred to
      collectively as the "EARNEST MONEY."

            (d) The Escrow Agent shall invest the Earnest Money pursuant to
      Purchaser's directions and in accordance with the terms and conditions of
      ARTICLE 10. All interest accruing and other income earned on such sum
      shall become a part of the Earnest MONEY and shall be distributed as
      Earnest Money in accordance with the terms of this Agreement. If Purchaser
      fails to DELIVER any portion of the Earnest Money to the Escrow Agent
      within the time period or periods specified above, Purchaser shall be in
      default hereunder, and Seller shall be entitled to exercise its rights and
      remedies under Section 6.1.

            (e) In any event, if Purchaser is entitled to have the Earnest Money
      returned to Purchaser pursuant to any provision of this Agreement,
      Purchaser shall nevertheless pay to Seller ONE HUNDRED DOLLARS ($100.00)
      as good and sufficient consideration for entering into this Agreement. In
      addition, Seller acknowledges that Purchaser, in evaluating the Property
      and performing its due diligence investigation of the Property, will
      devote internal resources and incur expenses, and that such efforts and
      expenses of Purchaser also constitute good, valuable and sufficient
      consideration for this Agreement.

            (f) Purchaser may, at its option, deposit with Escrow Agent, in lieu
      of the First Deposit but not the Second Deposit, an irrevocable letter of
      credit substantially in the form of Schedule 1.6, attached hereto and
      incorporated herein by this reference. Any such letter of credit shall be
      issued in favor of Escrow Agent and shall be in the amount of the required
      First Deposit. Such letter of credit shall be issued by an Approved Bank
      and shall have an expiry date of no earlier than sixty (60) days after the
      Inspection Date. In such event, the amount of the Second Deposit shall be
      increased to ONE MILLION THREE HUNDRED FIFTY THOUSAND DOLLARS
      ($1,350,000.00) in cash and, upon the Second Deposit being made in such
      amount, Escrow Agent shall, without Seller's consent, return the letter of
      credit to Purchaser without having been drawn upon. Purchaser may require
      Escrow Agent to return Purchaser's letter of credit at any time prior to
      the Inspection Date without Seller's consent by giving written notice to
      Seller and Escrow Agent on or before the Inspection Date; provided,
      however, a return of the letter of credit to Purchaser shall constitute a
      termination of this Agreement in accordance with Section 3.2 hereof unless
      Purchaser replaces the letter of credit with cash prior to the return of
      such letter of credit.

            (g) If Purchaser elects to deposit such a letter of credit with
      Escrow Agent as the First Deposit, then until such time as Purchaser has
      made the Second Deposit in full, any requirement under this Agreement that
      the Earnest Money be refunded or returned to Purchaser shall mean that the
      original letter of credit shall be returned to Purchaser without having
      been drawn upon. In addition, any requirement under this Agreement that

                                       5
<PAGE>

      the Earnest Money be paid over to Seller shall mean that Escrow Agent
      shall draw upon the letter of credit according to its terms in full and
      pay over to Seller the full amount of the Earnest Money.

            (h) If Escrow Agent shall not have received written instructions
      signed by Seller and Purchaser instructing Escrow Agent to return the
      letter of credit to Purchaser without having been drawn upon, then at any
      time on or after the tenth (10th) business day prior to the expiry date of
      such letter of credit, upon written request from either Seller or
      Purchaser (the "DRAW NOTICE"), Escrow Agent shall be entitled to, and is
      hereby irrevocably and unconditionally authorized, instructed and directed
      to, draw upon such letter of credit in the full amount thereof and hold
      the proceeds of such letter of credit as Earnest Money in accordance with
      this Agreement. Escrow Agent shall have no duty or authority following
      receipt of any Draw Notice to confirm or verify the right of the party
      giving the Draw Notice to do so, nor shall Escrow Agent have the right not
      to draw upon the letter of credit in full following receipt of any Draw
      Notice, whether or not any other party shall object to the Draw Notice or
      otherwise dispute the Draw Notice or the proper disposition of the letter
      of credit or Earnest Money.

            (i) "Approved Bank" means any one of Wells Fargo Bank, N.A., or any
      national bank with its principal place of business in metropolitan
      Atlanta, Georgia, Chicago, Illinois or New York City, New York and which
      is approved by Seller in its good faith business judgment; provided,
      however, that in order to constitute an Approved Bank, such bank must have
      a branch office in metropolitan Atlanta, Georgia, Chicago, Illinois, or
      New York City, New York at which any letter of credit described in this
      Section 1.6 may be drawn and paid in full in immediately available funds.

      1.7 OWNERSHIP OF POST(R) TRADENAMES AND SERVICE MARKS.

            (a) Purchaser hereby acknowledges and agrees that the names
      "Post(R)", "The Arbors of Post Village(R)", "The Hills of Post
      Village(R)", "The Gardens of Post Village(R)", "The Fountains of Post
      Village(R)", "The Meadows of Post Village(R)", "Post Apartment Homes(R)"
      and any other trade name or service mark which includes the word "Post" or
      any other trade name or service mark (including the "Post tulip" logo) of
      Seller (hereinafter collectively referred to as the "MARKS"), and each of
      them, are trade names and service marks of Seller; that the Marks, and
      each of them, are the sole and exclusive property of Seller, which owns
      all right, title, and interest in and to the Marks, and each of them; and
      that, by this Agreement, Purchaser SHALL acquire no ownership right or
      interest of any kind in or to the Marks, or any of them. Purchaser further
      acknowledges and agrees that any use by Purchaser of the Marks, or any of
      them, in any manner in connection with the Property or otherwise, will
      result in immediate and irreparable injury to Seller and its affiliates,
      and that Seller and/or its affiliates shall be entitled to temporary,
      preliminary, and permanent injunctive relief against Purchaser in the
      event of ANY such use of the Marks, or any of them, by Purchaser, or in
      the event of any other violation by Purchaser of this Section 1.7.
      Purchaser may continue to use "The Arbors", "The Hills", "The Gardens",
      "The Fountains" and "The Gardens" in the name of the Property after
      Closing provided Purchaser does not use the Post name or any of the

                                       6
<PAGE>

      Marks; provided, however, nothing contained herein shall be deemed to be a
      warranty of Purchaser's right to use such names.

            (b) Seller and Purchaser shall cooperate with each other in
      connection with the prompt removal of the "Post" name from the Property
      after Closing, including changes in signage, lease forms, marketing
      materials and the like.

                  (1) The "Shared Signs" are those signs at the following
            locations on which the Marks appear in conjunction with the names of
            properties located in Post Villages Northwest and/or owned by
            parties other than Seller: (1) the sign located on the clock tower
            at the entrance from Cobb Parkway onto Lake Park Drive, (2) the
            directional/identification signs located at the following inter
            Sections: Spring Road and Village Parkway, Lake Park Drive and
            Village Parkway, and Windy Hill Road and Village Parkway, and (3)
            the sign located on Lake Park Drive near the entrance from Cobb
            Parkway. Purchaser shall use its best efforts to remove the Marks on
            or before the date that is sixty (60) days after Closing. If,
            despite Purchaser's efforts, Purchaser is unable to replace the
            Shared Signs or remove the Marks from the Shared Signs within sixty
            (60) days following Closing, then Purchaser shall continuously and
            diligently work to replace the Shared Signs as soon as reasonably
            possible, but in no event shall such extension be longer than one
            hundred and twenty (120) days after Closing.

                  (2) Purchaser agrees to attach a substantial, temporary sign
            over All other signage on the Property containing the Post(R) name
            or any of the Marks within forty-eight (48) hours after Closing so
            that the word "Post" and the "Post tulip" will not be visible.
            Purchaser shall keep such temporary signage in place until Purchaser
            installs permanent replacements of such signage, and Purchaser shall
            install such permanent replacement signage on or before the date
            that is ten (10) days after Closing.

            (c) This Section 1.7 shall survive the Closing.

      1.8 PORTFOLIO FINANCING.

            (a) The Arbors of Post Village (the "NON-BOND PROJECT") is not
      financed with bonds. All of the other Projects (the "BOND PROJECTS"),
      together with certain other apartment communities owned by Post (the
      "OTHER BOND PROJECTS"), are subject to financings obtained by Seller from
      the Housing Authority of the City of Smyrna, Georgia (the "SMYRNA
      AUTHORITY") and other local housing authorities (together with the Smyrna
      Authority, the "AUTHORITIES") and funded by the Authorities through the
      issuance of tax-exempt multifamily housing revenue bonds (the "BONDS").
      Fannie Mae has provided credit enhancement for the Bonds. Such bond
      financing and credit enhancement arrangements are collectively referred to
      as the "PORTFOLIO FINANCING." The Portfolio Financing is the subject of
      extensive documents involving various parties, including Seller, Fannie
      Mae, the Authorities, trustees for the holders of the Bonds, tender
      agents, remarketing agents and others (collectively, the "BOND
      PARTICIPANTS"). The Portfolio

                                       7
<PAGE>

      Financing is comprised of the Bond Financing and the Fannie Mae Financing,
      as such terms are defined below.

            (b) The Portfolio Financing encompasses two separate but related
      sets of financial arrangements:

                  (i) First, Seller has obtained loans from the Authorities (the
            "AUTHORITY LOANS") which have been funded by the Authorities from
            the proceeds of the Bonds. In connection with each Authority Loan,
            Seller has undertaken various obligations to the applicable Bond
            Participants. The Authority Loans and the related obligations of
            Seller to those Bond Participants other than Fannie Mae are referred
            to collectively as the "BOND FINANCING".

                  (ii) Second, Seller has entered into a master reimbursement
            agreement and related documents (collectively, the "FANNIE MAE
            FINANCING") with Fannie Mae, pursuant to which Fannie Mae has agreed
            to provide credit enhancement and liquidity support for the Bonds
            and Seller has agreed, among other matters, to reimburse Fannie Mae
            for any amounts paid by Fannie Mae in respect of the Bonds as a
            result of providing such credit enhancement and liquidity support.

            (c) Seller's obligations under the Portfolio Financing are secured
      by mortgages and related security instruments encumbering each of the Bond
      Projects and the Other Bond Projects (the "MORTGAGES"). To the extent the
      Mortgages secure the Fannie Mae Financing, the Mortgages are
      cross-defaulted and cross-collateralized with one another. In addition,
      the Fannie Mae Financing places limitations on the ability of Seller to
      release any of the Bond Projects or the Other Bond Projects from the
      effect of the Fannie Mae Financing, including releases in connection with
      the sale or other conveyance of any Bond Project or Other Bond Project.
      The documents evidencing and securing the Portfolio Financing to which the
      Bond Projects are subject are described in Schedules 2.3(d)-1 though
      2.3(d)-3 (collectively, the "BOND DOCUMENTS"), attached hereto and made a
      part hereof by this reference, as follows:

<TABLE>
<CAPTION>
        BOND PROJECT                                              BOND DOCUMENTS SCHEDULE
<S>                                                               <C>
The Hills of Post Village(R)                                              2.3(c)-1
The Gardens of Post Village(R)                                            2.3(c)-2
F&M Villages (The Fountains of Post Village(R)
 and The Meadows of Post Village(R))                                      2.3(c)-3
</TABLE>

            (d) Seller and Purchaser will use commercially reasonable efforts to
      obtain the separation of the Portfolio Financing into two separate
      financing packages, one related solely to the Bond Projects (the "ASSUMED
      PROJECT FINANCING") and the other related solely to the Other Bond
      Projects (the "OTHER BOND FINANCING"). Among other matters, the parties
      intend for such separation to eliminate any cross-default and
      cross-

                                       8
<PAGE>

      collateralization between the financing of the Bond Projects and the
      financing of the Other Bond Projects. In connection with such arrangement,
      Seller and Purchaser will work cooperatively and use commercially
      reasonable good faith efforts for (i) Purchaser to assume the Assumed
      Project Financing and (ii) Seller to be released from continuing liability
      for the Assumed Project Financing. The separation of the Portfolio
      Financing, assumption of the Assumed Project Financing by Purchaser and
      release of Seller from continuing liability for the Assumed Project
      Financing are collectively referred to as the "ASSUMPTION AND RELEASE
      TRANSACTION". The Assumption and Release Transaction will include the
      following matters:

                  (1) Consents and approvals from the Bond Participants, where
            required;

                  (2) Purchaser's assumption of all obligations of Seller under
            or relating to the Bond Financing with respect to the Bond Projects
            and arising from and after Closing, but not with respect to the
            Other Bond Projects; the parties anticipate this will include
            Purchaser entering into amendments to existing Bond Financing
            documents with various Bond Participants; the parties intend that
            Purchaser's assumption of the Bond Financing with respect to the
            Bond Projects will not result in the imposition of any material
            additional restrictions on any Bond Project, provided Purchaser does
            not seek to (and Purchaser covenants that it shall not seek to) (and
            Purchaser covenants that it shall not seek to) make any material
            change to the existing Bonds and related Bond documentation (such
            as, for example, an extension of the maturity of the Bonds);

                  (3) Purchaser's assumption of all obligations of Seller under
            or relating to the Fannie Mae Financing with respect to the Bond
            Projects and arising from and after Closing, but not with respect to
            the Other Bond Projects; the parties anticipate this will include
            (i) Purchaser entering into a new reimbursement agreement and
            related documents with Fannie Mae with respect to the Bond Projects,
            on terms agreed upon by Purchaser and Fannie Mae, and (ii) Seller
            entering into amendments to Seller's existing reimbursement
            agreement and related documents with Fannie Mae so as to release the
            Bond Projects from the effect of such documents;

                  (4) The release of Seller from any continuing recourse or
            non-recourse liability for the Bond Financing or the Fannie Mae
            Financing with respect to the Bond Projects, but not with respect to
            the Other Bond Projects in a form acceptable to Seller;

                  (5) The release of the Bond Projects from any cross-default or
            cross-collateralization with the Other Bond Projects, and the
            release of the Other Bond Projects from any cross-default or
            cross-collateralization with the Bond Projects; and

                                       9
<PAGE>

                  (6) The release to Seller of any cash deposits, hedge
            instruments and other forms of collateral delivered by Seller to
            Fannie Mae, the Smyrna Authority or the bond trustees in connection
            with the Portfolio Financing, to the extent such deposits,
            instruments and collateral relate to the Bond Projects but not the
            Other Bond Projects.

      1.9 BOND PERIOD. Purchaser shall have through and including July 14, 2005
(the "BOND PERIOD") to review all documentation related to the Assumed Project
Financing, to obtain necessary approvals and consents, and to determine whether
such approvals and consents are acceptable to Purchaser in Purchaser's
reasonable discretion. If Purchaser determines, in Purchaser's reasonable
discretion, that such approvals and consents are unacceptable to Purchaser, then
Purchaser shall have the right to terminate this Agreement by giving written
notice of such termination, together with the reasons for such termination, to
Seller on or before the expiration of the Bond Period. Upon any such termination
of this Agreement pursuant to Purchaser's rights under this Section 1.9, the
Earnest Money shall be returned to Purchaser, and Purchaser and Seller shall
have no further rights and obligations hereunder except those which expressly
survive termination of this Agreement. Notwithstanding the foregoing, Purchaser
shall make commercially reasonable efforts to obtain all approvals from the
Smyrna Authority that are required to effectuate the Assumption and Release
Transaction at the June 29th meeting of the Smyrna Authority and shall file its
application for such approvals in a timely manner to be heard at such meeting.

                                    ARTICLE 2

                                TITLE AND SURVEY

      2.1 TITLE EXAMINATION; COMMITMENT FOR TITLE INSURANCE. Seller has obtained
from Escrow Agent (in its capacity as title insurer sometimes herein called the
"TITLE COMPANY"), at Seller's expense, and delivered to Purchaser title
insurance commitments (individually a "TITLE COMMITMENT" and collectively the
"TITLE COMMITMENTS") issued by Fidelity National Title Insurance Company,
covering the REAL Property, which Title Commitments are more particularly
described in Schedule 2.1, attached hereto and by this reference made a part
hereof.

      2.2 SURVEY. Purchaser acknowledges that Seller has, at Seller's expense,
delivered to Purchaser surveys of the Real Property as more particularly
described in Schedule 2.2, attached hereto and by this reference made a part
hereof. Such surveys are referred to herein individually as a "SURVEY" and
collectively as the "SURVEYS". For purposes of the Deed to be delivered to
Purchaser at the Closing with respect to each Project, the legal description of
such Project shall be the legal description appearing in Schedules 1.1(a)-1
through 1.1(a)-5, less and except any right-of-way or other conveyances
previously made by Seller. If, however, the metes and bounds description of any
Project drawn from the Survey reflects a legal description different from the
legal description appearing in Schedules 1.1(a)-1 through 1.1(a)-5, then Seller
shall also deliver a quit claim deed at Closing containing the legal description
drawn from the Survey, as reasonably approved by Seller.

                                       10
<PAGE>

      2.3 TITLE OBJECTIONS; CURE OF TITLE OBJECTIONS.

            (a) Purchaser shall have until June 13, 2005 (the "TITLE OBJECTION
      DEADLINE") to notify Seller, in writing, of such objections as Purchaser
      may have to the Title Commitments (including the title exception documents
      referred to therein) or the Surveys, other than the Permitted Exceptions
      described in clauses (a) through (e) of Section 2.4. Any item contained in
      the Title Commitments and any matter shown on the Survey or any document
      that is of record and properly indexed as of the effective date of such
      Title Commitment to which Purchaser does not object on or before the Title
      Objection Deadline shall be deemed a "PERMITTED EXCEPTION".

            (b) In the event Purchaser shall notify Seller of objections to
      title or to matters shown on the Surveys on or before the Title Objection
      Deadline, Seller shall have the right, but not the obligation, to cure
      such objections. On or before the seventh (7th) day following the Title
      Objection Deadline, Seller shall notify Purchaser in writing whether
      Seller elects to attempt to cure any such objections (and Seller's failure
      to provide such a notice shall be deemed an election by Seller not to cure
      any such objection). If Seller elects to attempt to cure, and provided
      that Purchaser shall not have terminated this Agreement in accordance with
      Section 3.2, then Seller shall use commercially reasonable efforts to
      attempt to remove, SATISFY or cure the same. For this purpose Seller shall
      be entitled to a reasonable extension of the Closing if additional time is
      required, but in no event shall the extension extend for more than thirty
      (30) days. If Seller notifies Purchaser of Seller's intent to cure an
      objection, and fails or is unable to effect such cure, then Seller shall
      give written notice of such fact to Purchaser. If Seller elects (or is
      deemed to have elected) not to cure any valid objections specified in
      Purchaser's notice, or if Seller notifies Purchaser of Seller's intent to
      cure any objection and thereafter Seller fails or is unable to effect a
      cure prior to Closing (or any date to which the Closing has been
      extended), then in either such case Purchaser shall have the right to
      elect one, but not both, of the following options, which election must in
      each case be made within the time period provided in paragraph (c) below:

                  (1) to accept a conveyance of the Property subject to the
            Permitted Exceptions, specifically including any matter objected to
            by Purchaser which Seller is unwilling or unable to cure, and
            without reduction of the Purchase Price; or

                  (2) to terminate this Agreement by sending written notice of
            such termination to Seller, and upon delivery of such notice of
            termination, this Agreement shall terminate and the Earnest Money
            shall be returned to Purchaser in accordance with Section 1.6 of
            this Agreement, and thereafter neither party hereto shall have any
            further rights, obligations or liabilities hereunder except to the
            extent that any right, obligation or liability set forth herein
            expressly survives termination of this Agreement.

            (c) If Seller notifies Purchaser that Seller does not intend to
      attempt to cure any title objection, or if Seller is deemed to have
      elected not to cure any title objections,

                                       11
<PAGE>

      or if Seller notifies Purchaser of Seller's intent to cure any objection
      and Seller later notifies Purchaser that Seller has failed or will be
      unable to effect a cure thereof, then in any such case Purchaser shall,
      within five (5) business days after receiving Seller's notice or the date
      of Seller's deemed election, as applicable, notify Seller in writing
      whether Purchaser shall elect to accept the conveyance under clause (b)
      (1) above or to terminate this Agreement under clause (b) (2) above (with
      Purchaser's failure to provide such a notice deemed an election by
      Purchaser to accept conveyance under clause (b)(1) above).

            (d) Notwithstanding anything contained herein to the contrary,
      Seller shall be obligated at Closing to discharge (a) all mortgages of
      Seller (regardless of whether Purchaser objects to such mortgage), other
      than mortgages evidencing or securing the Assumed Project Financing, (b)
      all undisputed monetary liens arising by, through or under Seller, other
      than liens evidencing or securing the Assumed Project Financing, and (c)
      disputed monetary liens arising by, through or under Seller, of up to ONE
      HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) in the aggregate. In the
      case of any disputed monetary lien(s) arising by, through or under Seller
      in excess of ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) in the
      aggregate, Seller shall, if Seller elects not to discharge such lien(s)
      prior to Closing, use commercially reasonable efforts to induce the Title
      Company to insure over such lien(s), or, if the Title Company is unwilling
      to insure over such lien(s), Seller shall indemnify Purchaser in a form
      reasonably acceptable to Purchaser against such lien(s), provided,
      however, that in no event shall Seller have an obligation to insure over,
      discharge or indemnify Purchaser against any disputed monetary lien(s)
      arising by, through or under Seller in an amount in excess of FIVE HUNDRED
      THOUSAND AND NO/100 DOLLARS ($500,000.00) in the aggregate. (The term
      "mortgage" as used herein includes any mortgage, deed of trust, deed to
      secure debt and similar security instrument securing an indebtedness of
      Seller and encumbering the Property or any portion thereof; the terms
      "discharge" and "discharged" as used herein include compliance with a
      statutory bonding procedure that has the legal effect of removing the
      mortgage or item as a lien on the Property or otherwise allows the
      mortgage or item to be removed from the title exceptions in the Title
      Policy).

            (e) Seller will cooperate with Purchaser in a reasonable manner to
      assist Purchaser in resolving any objections to title that Purchaser's
      credit enhancer may have, but Seller shall have no obligation to cure or
      correct title matters other than as set forth in this Section 2.3.

      2.4 CONVEYANCE OF TITLE. At Closing, Seller shall convey and transfer the
Property to Purchaser. It shall be a condition to Purchaser's obligation to
close this transaction that title to the Real Property conveyed and transferred
to Purchaser shall be such title to the Real Property as will enable the Title
Company to issue to Purchaser an extended coverage American Land Title
Association (ALTA) Form 1992 Owner's Policy of Title Insurance (the "TITLE
POLICY") covering the Real Property, in the full amount of the Purchase Price,
subject to the following matters, which shall be deemed to be Permitted
Exceptions:

                                       12
<PAGE>

            (a) the rights of tenants, as tenants only, under the Leases
      described in the Rent Roll and any new Leases entered into between the
      date of the Rent Roll and Closing and (if required) approved by Purchaser
      in accordance with the terms of this Agreement;

            (b) the lien of all ad valorem real estate taxes and assessments not
      yet due and payable as of the date of Closing, subject to adjustment as
      herein provided;

            (c) local, state and federal laws, ordinances or governmental
      regulations, including but not limited to, building, zoning and land use
      laws, ordinances and regulations, now or hereafter in effect relating to
      the Property;

            (d) all matters identified on the following schedules:

<TABLE>
<CAPTION>
           PROJECT                                                        PERMITTED EXCEPTIONS
<S>                                                                       <C>
The Arbors of Post Village(R)                                                    2.4-1
The Hills of Post Village(R)                                                     2.4-2
The Gardens of Post Village(R)                                                   2.4-3
The Fountains of Post Village(R)                                                 2.4-4
The Meadows of Post Village(R)                                                   2.4-5
</TABLE>

            (e) all mortgages and other encumbrances evidencing or securing the
      Assumed Project Financing;

            (f) additional items, if any, appearing in the Title Commitments or
      shown on the Survey, except to the extent Seller agrees to cure any such
      matters pursuant to Section 2.3 or 2.5 hereof; and

            (g) additional items, if any, approved by Purchaser pursuant to
      Section 2.6 hereof.

      2.5 PRE-CLOSING "GAP" TITLE DEFECTS. Whether or not Purchaser shall have
furnished to Seller any notice of title objections pursuant to the foregoing
provisions of this Agreement, Purchaser may, at or prior to Closing, notify
Seller in writing of any objections to title first raised by the Title Company
or the applicable surveyor and first arising between (a) the effective date of
the Title Commitments and Surveys, as applicable and (b) the date on which the
transaction contemplated herein is scheduled to close; provided, however, that
Purchaser must notify Seller of any such objections within five (5) business
days of Purchaser's first receipt of the updated title commitment, updated
survey or other document, whichever first provides notice of the condition
giving rise to any such objection. With respect to any objections to title set
forth in such notice, Seller shall have the same option to cure and Purchaser
shall have the same option to accept title subject to such matters or to
terminate this Agreement as those which apply to any notice of objections made
by Purchaser on or before the Title Objection Deadline. If Seller elects to
attempt to cure any such matters, Seller shall have the right, at its election,
to extend the date for Closing by a reasonable additional time to effect such a
cure, but in no event shall the Closing be extended for more than thirty (30)
days.

                                       13
<PAGE>

      2.6 SELLER'S COVENANT NOT TO ENCUMBER. Seller agrees that, between the
Effective Date and the Closing Date, Seller will not sell, assign, rent, convey
(absolutely or as security), grant a security interest in, or otherwise encumber
or dispose of, the Property (or any part thereof or estate therein) in any
manner that will survive Closing, except as approved in writing by Purchaser or
as expressly provided in this Agreement. Notwithstanding the foregoing, Seller
shall have the right to (i) continue leasing apartment units in the Property in
the manner described in Section 5.4(b) hereof, (ii) terminate, amend or enter
into service contracts in the manner described in Section 5.4(h) hereof and
(iii) use, deplete, remove or replace items of Tangible Personal Property in the
ordinary course of business. In addition, and notwithstanding the foregoing,
Seller shall have the right, for tax planning or other purposes, to transfer all
or part of the Property or any interest therein to any parent, subsidiary or
other entity that is affiliated with or related to Seller provided (A) such
entity assumes and agrees to be bound by the obligations of Seller under this
Agreement and (B) any such transfer shall not release or relieve Seller of its
obligations to Purchaser under this Agreement.

      2.7 ACKNOWLEDGEMENT OF DECLARATION. Purchaser hereby acknowledges that it
is acquiring the Property subject to the provisions of that certain Declaration
of Covenants, Conditions and Restrictions for Post Villages Northwest, dated
March 31, 1981, recorded at Deed Book 2334, Page 11, Cobb County, Georgia
records, as amended and extended through the date hereof (the "DECLARATION").
Purchaser acknowledges that, from and after the Closing, Purchaser shall pay any
and all assessments required of an owner under the Declaration; provided,
however, Seller shall be obligated to pay at Closing all such assessments that
are due on or before the Closing Date (which assessments for the year of Closing
shall be subject to proration as provided herein).

      2.8 POST VILLAGES NORTHWEST OWNERS ASSOCIATION.

            (a) Seller currently provides certain management and administrative
      services to Post Villages Northwest Owners Association, Inc. (the
      "ASSOCIATION"), the property owners association under the Declaration.
      Purchaser acknowledges that Seller intends to terminate its engagement to
      provide such services to the Association at Closing or as soon thereafter
      as Seller may lawfully do so. To the extent necessary to allow Seller to
      terminate such engagement, Purchaser agrees to assume at Closing all of
      Seller's rights and obligations associated with the administration and
      management of the Association.

            (b) Purchaser agrees to cooperate with Seller, before and after
      Closing, and hereby authorizes Seller to take such acts as Seller shall
      consider necessary or appropriate, before and after Closing, (i) to change
      the name of the Association so as to exclude from the name of the
      Association the word "Post" and any other Marks, and (ii) to remove the
      name Post and any other Marks from all signage and other materials owned
      or maintained by the Association or on property owned or maintained by the
      Association (the actions identified in clauses (i) and (ii) being the
      "NAME CHANGE ACTIONS"). Without limitation on the foregoing, to the extent
      Purchaser after Closing has the right to vote on, consent to or approve
      any of the Name Change Actions, Purchaser shall exercise its vote or
      rights of consent or approval in favor of the Name Change Actions, and
      shall

                                       14
<PAGE>

      diligently endeavor to cause the Association to undertake and complete the
      Name Change Actions.

            (c) In connection with Seller's disclosure set forth in Paragraph 9
      of Schedule 5.1-1 through 5.1-5 hereof, Seller shall indemnify, hold
      harmless and defend Purchaser from and against any and all claims,
      demands, causes of action, liabilities, losses, costs, damages and
      expenses (including reasonable attorneys' fees and expenses and court
      costs incurred in defending any such claim or in enforcing this indemnity)
      for assessments charged to Purchaser arising from miscalculated
      assessments on or before the Closing Date.

            (d) This Section 2.8 shall survive Closing.

                                    ARTICLE 3

                                INSPECTION PERIOD

      3.1 RIGHT OF INSPECTION.

            (a) Beginning upon the date of execution of the Access Agreement (as
      defined in Section 3.2(b)) and continuing so long as this Agreement
      remains in full force and effect, Purchaser has had and shall continue to
      have the right to make a physical inspection of the Property and to
      examine at such place or places at the Property, in the offices of the
      property manager or elsewhere as the same may be located, any operating
      files maintained by Seller or its property manager in connection with THE
      leasing, maintenance and/or management of the Property, including, without
      limitation, the Leases, lease files, tenant income certifications (to the
      extent in Seller's possession), service contracts, bills, invoices,
      receipts and other general records relating to the income and expenses of
      the Property, correspondence, surveys, plans and specifications,
      warranties for services and materials provided to the Property and similar
      materials, but excluding materials not directly related to the leasing,
      maintenance, and/or management of the Property such as Seller's internal
      memoranda, financial projections, insurance policies, operating budgets,
      appraisals, accounting and tax records and similar proprietary or
      confidential information.

            (b) Purchaser understands and agrees that any on-site inspections of
      the Property shall be governed by and conducted in accordance with that
      certain Access Agreement between Purchaser and Seller dated May 20, 2005
      (the "ACCESS AGREEMENT"). The parties hereby affirm that the Access
      Agreement remains in full force and effect under its terms, and the Access
      Agreement is incorporated herein by this reference.

            (c) Purchaser shall indemnify, hold harmless and defend Seller, its
      general partner and their respective officers, directors, employees and
      shareholders from and

                                       15
<PAGE>

      against any and all claims, demands, causes of action, liabilities,
      losses, costs, damages and expenses (including reasonable attorneys' fees
      and expenses and court costs incurred in defending any such claim or in
      enforcing this indemnity) of whatsoever nature (individually a "CLAIM" and
      collectively, "CLAIMS") that may be incurred by Seller or any other
      indemnified party and arising out of or in connection with the acts or
      omissions of Purchaser and its agents, representatives, contractors and
      consultants, or any of them, including but not limited to Claims arising
      out of or in connection with personal injury or death of persons, loss,
      destruction or damage to property, or liens or claims of lien filed
      against the Property. This Section 3.1(c) shall survive Closing or any
      termination of this Agreement.

      3.2 RIGHT OF TERMINATION. Seller agrees that in the event Purchaser
determines, in Purchaser's sole discretion, that it does not wish to acquire the
Property for any reason or no reason, then Purchaser shall have the right to
terminate this Agreement by giving written notice of such termination to Seller
on or before June 27, 2005 (the "INSPECTION DATE"). Upon any such termination of
this Agreement pursuant to Purchaser's rights under this Section 3.2, the
Earnest Money shall be returned to Purchaser in accordance with Section 1.6
hereof, and Purchaser and Seller shall have no further rights and obligations
hereunder except those which expressly survive termination of this Agreement. If
Purchaser fails to give Seller timely notice of termination on or before the
Inspection Date, then Purchaser shall no longer have the right to terminate this
Agreement under this Section 3.2 and (subject to any contrary provisions of this
Agreement) shall be bound to proceed to Closing and consummate the transaction
contemplated hereby pursuant to the terms of this Agreement. Time is of the
essence with respect to the provisions of this Section 3.2. The period
commencing on the Effective Date and ending on the Inspection Date is sometimes
referred to herein as the "INSPECTION PERIOD".

                                    ARTICLE 4

                                     CLOSING

      4.1 TIME AND PLACE. The consummation of the transaction contemplated
hereby ("CLOSING") shall be held at the at the office of Escrow Agent in
metropolitan Atlanta, Georgia (1800 Parkway Place, Suite 700, Marietta, Georgia
30067) (Atlanta, Georgia local time) on July 26, 2005 (or such extended date as
may be provided under other provisions of this Agreement). At Closing, Seller
and Purchaser shall perform the obligations set forth in, respectively, Section
4.2 and Section 4.3. The Closing may be held at such other place or such earlier
time and date as Seller and Purchaser shall mutually approve in writing. The
date on which the Closing is scheduled to occur hereunder (or, if earlier, the
date on which Closing occurs) is sometimes referred to herein as the "CLOSING
DATE".

      4.2 SELLER'S OBLIGATIONS AT CLOSING. At Closing, Seller shall:

            (a) deliver to Purchaser a duly executed limited warranty deed with
      respect to each Project in the form attached hereto as Schedule 4.2(a) and
      by this reference made a

                                       16
<PAGE>

      part hereof, conveying the Real Property to Purchaser subject to the
      Permitted Exceptions (the "DEED");

            (b) deliver to Purchaser two counterparts of a bill of sale and
      assignment and assumption of leases and service contracts with respect to
      each Project, in the form attached hereto as Schedule 4.2(b) and by this
      reference made a part hereof, duly executed by Seller, pursuant to which
      (i) Seller shall convey the Tangible Personal Property and the Intangible
      Property to Purchaser, and (ii) Seller shall assign to Purchaser, and
      Purchaser shall assume from and after the date of Closing, Seller's
      interest in and to the Leases and Designated Service Contracts, as amended
      or supplemented pursuant to this Agreement (the "BILL OF SALE AND
      ASSIGNMENT");

            (c) join with Purchaser to execute a notice (the "TENANT NOTICE")
      with respect to each Project in form and content reasonably satisfactory
      to Purchaser and Seller, which Purchaser shall send to each tenant under
      each of the Leases informing such tenant of the sale of the Property and
      of the assignment to Purchaser of Seller's interest in, and obligations
      under, the Leases (including, if applicable any security deposits) and
      directing that all rent and other sums payable after the Closing under
      each such Lease shall be paid as set forth in the notice.

            (d) join with Purchaser in the execution of such assignment and
      assumption agreements with respect to the Bond Projects as are agreed upon
      by Purchaser, Seller and the applicable Bond Participants in connection
      with the assignment and assumption of the Assumed Project Financing;

            (e) deliver to Purchaser a certificate ("SELLER'S CLOSING
      CERTIFICATE"), dated as of the date of Closing and duly executed by
      Seller, stating that the representations and warranties of Seller
      contained in Section 5.1 of this Agreement are true and correct in all
      material respects as of the date of Closing (with appropriate
      modifications to reflect any changes therein or identifying any
      representation or warranty which is not, or no longer is, true and correct
      and explaining the state of facts giving rise to the change). A then
      current Rent Roll for each Project shall be attached to Seller's Closing
      Certificate in substitution of Schedules 1.1(e)-1 through 1.1(e)-5 which
      are attached to this Agreement, provided that the representations and
      warranties of Seller as to the Rent Roll in Seller's Closing Certificate
      shall be limited to those set forth in Section 5.1(d) of this Agreement.
      The inclusion of any change or exception in such certificate shall not
      prejudice Purchaser's rights under this Agreement with respect to the
      subject matter of such change or exception.

            (f) deliver to Purchaser such evidence as Purchaser's counsel and/or
      the Title Company may reasonably require as to the AUTHORITY of the person
      or persons executing documents on behalf of Seller;

            (g) deliver to Purchaser an affidavit duly executed by Seller
      stating that Seller is not a "foreign person" as defined in the Federal
      Foreign Investment in Real Property Tax Act of 1980 and the 1984 Tax
      Reform Act;

                                       17
<PAGE>

            (h) deliver to the Title Company a title insurance affidavit with
      respect to each Project, if required by the Title Company, duly executed
      by Seller or a representative of Seller, in form and content reasonably
      satisfactory to Seller and the Title Company;

            (i) deliver to Purchaser at the place of Closing or at the
      respective Projects the Leases, the Designated Service Contracts and
      licenses and permits, if any, in the possession of Seller or Seller's
      agents, including any originally executed Leases and Designated Service
      Contracts in Seller's possession at the respective Projects or otherwise
      in Seller's reasonable control, together with such leasing and property
      files and records which are material in connection with the continued
      operation, leasing and maintenance of each Project, and all keys to the
      Improvements which are in Seller's possession;

            (j) deliver to Purchaser possession and occupancy of the Property,
      subject to the Permitted Exceptions;

            (k) deliver such additional documents as shall be reasonably
      requested by the Title Company or the Bond Participants or required to
      consummate the transaction contemplated by this Agreement; provided,
      however, that in no event shall Seller be required to indemnify the Title
      Company, Purchaser, or any other party pursuant to any such documents, or
      undertake any other material liability not expressly contemplated in this
      Agreement, unless Seller elects to do so in its sole discretion; and

            (l) if the legal description with respect to any Project which
      appears in Schedules 1.1(a)-1 through 1.1(a)-5, attached hereto, differs
      from the legal description of such Project drawn from the applicable
      Survey, Seller shall at Closing deliver (in addition to the Deed) a quit
      claim deed conveying such Project pursuant to the legal description drawn
      from the applicable Survey, which legal description shall be subject to
      Seller's approval, which approval shall not be unreasonably withheld;

            (m) Seller shall deliver to Escrow Agent such certificate or
      affidavit, if any, as is required under applicable provisions of Georgia
      law and regulation, to assure Escrow Agent that Georgia income tax
      withholding is not required. If Seller fails to deliver such certificate
      or affidavit, and otherwise fails to provide Escrow Agent reasonably
      satisfactory assurance that withholding is not required, then Escrow Agent
      shall be entitled to withhold applicable Georgia income taxes if and to
      the extent required by applicable Georgia law and regulation; and

            (n) deliver to Purchaser in electronic format such Rent Roll and
      other information as Purchaser shall reasonably request concerning the
      Leases and residents, to the extent such information is held by Seller in
      electronic format and may be transferred without violation of any software
      licenses or rights of privacy, but Seller shall not be required to deliver
      to Purchaser any computer software or software licenses. Seller and
      Purchaser shall cooperate with one another reasonably and in good faith
      prior to and after Closing so as to enable Seller to deliver such
      information to Purchaser, which obligation

                                       18
<PAGE>

      shall survive Closing for a reasonable period of time to the extent not
      performed at or prior to Closing.

      4.3 PURCHASER'S OBLIGATIONS AT CLOSING. At Closing, Purchaser shall:

            (a) deliver to Escrow Agent the full amount of the Purchase Price,
      as increased or decreased by prorations and adjustments as herein
      provided, prior to 2:00 p.m. (Atlanta, Georgia local time) on the Closing
      Date, in immediately available federal FUNDS wire transferred to Escrow
      Agent's Account pursuant to Section 1.4 above, it being agreed that at
      Closing the Earnest Money shall be applied towards payment of the Purchase
      Price, and deliver to Escrow Agent instructions to immediately release the
      full amount of the Purchase Price, as increased or decreased by prorations
      and adjustments as herein provided, to Seller; provided, however, that if
      Escrow Agent has not received the Purchase Price together with
      instructions from Purchaser to disburse such funds to Seller on or before
      2:00 p.m. (Atlanta, Georgia local time) on the Closing Date, Seller shall
      be entitled to receive an additional sum equal to the amount of interest
      on the Purchase Price for each day that the Title Company has not received
      the Purchase Price together with instructions from Purchaser to disburse
      such funds to Seller at or prior to 2:00 p.m. (Atlanta, Georgia local
      time), accrued on a daily basis at the rate of eight percent (8%) per
      annum;

            (b) join Seller in execution of the Bill of Sale and Assignment and
      the Tenant Notice with respect to each Project. In connection with the
      Tenant Notice, Purchaser shall deliver to each and every tenant of each
      Project a signed statement acknowledging Purchaser's receipt and
      responsibility for each tenant's security deposit (to the extent credited
      or delivered by Seller to Purchaser at Closing), if any, all in compliance
      with and pursuant to the applicable law. The provisions of this
      sub-section shall survive Closing;

            (c) join with Seller in the execution and delivery of such
      assignment and assumption agreements as are agreed upon by Seller,
      Purchaser and the applicable Bond Participants in connection with the
      assignment and assumption of the Assumed Project Financing;

            (d) execute, join in and deliver to all relevant parties such
      additional mortgages, credit enhancement agreements, certificates,
      affidavits and other instruments and agreements as are necessary or
      required by the Bond Participants or other relevant parties (including
      Purchaser's credit enhancer) in connection with the Purchaser's assumption
      of the Assumed Project Financing;

            (e) deliver to Seller such evidence as Seller's counsel and/or the
      Title Company may reasonably require as to the authority of the person or
      persons executing documents on behalf of Purchaser;

            (f) deliver to Seller a certificate dated as of the date of Closing
      and duly executed by Purchaser, reaffirming the provisions of Section
      5.7(a) and ARTICLE 9 and

                                       19
<PAGE>

      confirming that such provisions remain and will continue in full force and
      effect as of and after the Closing; and

            (g) deliver such additional documents as shall be reasonably
      requested by the Title Company or the Bond Participants or required to
      consummate the transaction contemplated by this Agreement, provided,
      however, that in no event shall Purchaser be required to undertake any
      other material liability not expressly contemplated in this Agreement,
      unless Purchaser elects to do so in its sole discretion.

The proviso contained in Section 4.3(a) above shall survive the Closing.

      4.4 CREDITS AND PRORATIONS.

            (a) All income and expenses in connection with the operation of the
      Property shall be apportioned, as of 11:59 p.m. on the day prior to the
      Closing Date, as if Purchaser were vested with title to the Property
      during the entire Closing Date, such that, except as otherwise expressly
      provided to the contrary in this Agreement, Seller shall have the benefit
      of income and the burden of expenses for the day preceding the Closing
      Date and the Purchaser shall have the benefit of income and the burden of
      expenses for the Closing Date and thereafter. Items (1)-(5) below will be
      prorated at Closing utilizing the information known at that time. A
      post-closing "true-up" shall take place within ninety (90) days of the
      Closing Date to adjust the prorations of said items (1), (3), (4) and (5),
      if necessary, and within a reasonable time to adjust the proration of said
      item (2), if necessary. Such prorations shall be determined on a
      Project-by-Project basis and also on an aggregate basis with respect to
      the entire Property. Such prorated items shall include, without
      limitation, the following:

                  (1) rents, if any, based on the amount collected for the
            current month. The term "rents" as used in this Agreement includes
            all payments due and payable by tenants under the Leases other than
            refundable deposits, application fees, late charges, pet charges and
            termination payments (of which deposits shall be treated as set
            forth in Section 4.4(b)(1), but such other amounts shall be retained
            by Seller);

                  (2) ad valorem taxes and assessments levied against the
            Property (including personal property taxes on the Tangible Personal
            Property), and assessments under the Declaration, which shall be
            prorated as set forth in Section 4.4(b)(1) hereof;

                  (3) payments under the Designated Service Contracts. To the
            extent any rebate, concession or commission payable to Seller under
            any Designated Service Contract has accrued before Closing but has
            not been paid to Seller, Seller shall receive a credit for such
            accrued amounts at Closing;

                  (4) gas, electricity and other utility charges for which
            Seller is liable, if any, such charges to be apportioned at Closing
            on the basis of the most recent meter reading occurring prior to
            Closing; and

                                       20
<PAGE>

                  (5) any other operating expenses or other items pertaining to
            the Property which are customarily prorated between a purchaser AND
            a seller in comparable commercial transactions in the area in which
            the Property is located.

                  (6) interest and periodic expenses payable with respect to the
            Assumed Project Financing (including, but not limited to, periodic
            fees payable to Fannie Mae or any of the other Bond Participants and
            any rebate obligations, but excluding any fees relating to the
            closing of the transactions contemplated herein).

            (b) Notwithstanding anything contained in the foregoing provisions:

                  (1) At Closing, (A) Seller shall, at Seller's option, either
            deliver to Purchaser any unforfeited resident deposits shown on the
            Rent Roll or credit to Purchaser the amount of such unforfeited
            resident deposits and any interest thereon, and (B) Purchaser shall
            credit to the account of Seller all refundable cash or other
            deposits posted with utility companies serving the Property, or, at
            either party's option, Purchaser shall contract directly with the
            utility companies and Seller shall be entitled to receive and retain
            such refundable cash and deposits; provided that Purchaser and
            Seller will cooperate so that utility service to the Property is not
            interrupted. For the purposes of this Section 4.4(b)(1) the term
            "unforfeited resident deposits" means any refundable resident
            deposits which are held by Seller and which Seller has not applied,
            and is not entitled to apply, against delinquent rents, property
            damage or otherwise.

                  (2) Any ad valorem taxes and assessments under the Declaration
            paid at or prior to Closing shall be prorated based upon the amounts
            actually paid for the current year. If all taxes and assessments for
            the current year have not been paid before Closing, then Seller
            shall be charged at Closing an amount equal to that portion of such
            taxes and ASSESSMENTS which relates to the period before Closing and
            Purchaser shall pay the taxes and assessments prior to their
            becoming delinquent. Any such apportionment made with respect to a
            tax year for which the tax rate or ASSESSED valuation, or both, have
            not yet been fixed shall be based upon the tax rate and/or assessed
            valuation last fixed; and any such apportionment made with respect
            to assessments under the Declaration for a calendar year for which
            the assessment has not been fixed shall be based upon the prior
            calendar year. To the extent that the actual taxes and assessments
            for the current year differ from the amount apportioned at Closing,
            the parties shall make all necessary adjustments by appropriate
            payments between themselves following Closing upon the availability
            of the final tax bills and bills for assessments.

                  (3) Gas, electricity and other utility charges referred to in
            Section 4.4(a)(4) above which are payable by any tenant to a third
            party shall not be apportioned hereunder, and Purchaser shall accept
            title subject to any of such charges which are unpaid and Purchaser
            shall look solely to the responsible tenant for the payment of the
            same. Such unpaid and delinquent utility charges collected by Seller
            and Purchaser after the date of Closing shall be delivered as
            follows: (a)

                                       21
<PAGE>

            if Seller collects any unpaid or delinquent utility charges for the
            Property, Seller shall, within fifteen (15) days after the receipt
            thereof, deliver to Purchaser any such utility payment which
            Purchaser is entitled to hereunder relating to the date of Closing
            and any period thereafter, and (b) if Purchaser collects any unpaid
            or delinquent utility charges from the Property, Purchaser shall,
            within fifteen (15) days after the receipt thereof, deliver to
            Seller any such utility payment which Seller is entitled to
            hereunder relating to the period prior to the date of Closing.
            Seller and Purchaser agree that all utility payments received by
            Seller or Purchaser after the Closing shall be applied first to
            current utility charges and then to delinquent utility charges, if
            any, in inverse order of maturity. Purchaser will make a good faith
            effort after Closing to collect all utility payments in the usual
            course of Purchaser's operation of the Property, but Purchaser will
            not be obligated to institute any lawsuit or other collection
            procedures to collect delinquent utility payments.

                  (4) As to gas, electricity and other utility charges referred
            to in Section 4.4(a)(4) above, Seller may on notice to Purchaser
            elect to pay one or more of all of such items accrued to the Closing
            Date directly to the person or entity entitled thereto, and to the
            extent Seller so elects and the utility company agrees to look
            solely to Seller for payment of any such item accrued prior to the
            Closing Date, such item shall not be apportioned hereunder, and
            Seller's obligation to pay such item with respect to the period
            prior to Closing directly in such case shall survive the Closing.

                  (5) Seller shall pay in full all locators' and finders' fees,
            if any, due to third parties (pursuant to a contractual arrangement
            with Seller) for each Lease entered into by Seller prior to Closing,
            promptly when due;

                  (6) The Tangible Personal Property is included in this sale,
            without further charge, except that Purchaser shall pay to Seller or
            the applicable taxing authority the amount of sales tax or other
            taxes (if any) payable in connection with the Tangible Personal
            Property and Purchaser shall execute and deliver any tax returns
            required of it in connection therewith, said obligations of
            Purchaser to survive Closing.

                  (7) Unpaid and delinquent rent collected by Seller and
            Purchaser after the date of Closing shall be delivered as follows:
            (a) if Seller collects any unpaid or delinquent rent for the
            Property, Seller shall, within fifteen (15) days after the receipt
            thereof, deliver to Purchaser any such rent which Purchaser is
            entitled to hereunder relating to the date of Closing and any period
            thereafter, and (b) if Purchaser collects any unpaid or delinquent
            rent from the Property, Purchaser shall, within fifteen (15) days
            after the receipt thereof, deliver to Seller any such rent which
            Seller is entitled to hereunder relating to the period prior to the
            date of Closing. Seller and Purchaser agree that all rent received
            by Seller or Purchaser after the Closing shall be applied first to
            current rentals and then to delinquent rentals, if any, in inverse
            order of maturity. Purchaser will make a good faith

                                       22
<PAGE>

            effort after Closing to collect all rents in the usual course of
            Purchaser's operation of the Property, but Purchaser will not be
            obligated to institute any lawsuit or other collection procedures to
            collect delinquent rents.

                  (8) At Closing, subject to the consent of the applicable Bond
            Participants, at Seller's election, (A) Purchaser shall assume all
            reserves of Seller's funds held by the Bond Participants and credit
            to the account of Seller all amounts held in such reserves or (B)
            Seller and Purchaser shall cause such reserves to be released to
            Seller.

            (c) The provisions of this Section 4.4 shall survive Closing.

      4.5 TRANSACTION COSTS.

            (a) Seller shall pay the following costs of the transaction:

                  (1) the fees of any counsel representing it in connection with
            this transaction,

                  (2) one-half (1/2) of any escrow fee which may be charged by
            Escrow Agent or Title Company,

                  (3) all applicable transfer taxes, documentary stamp taxes and
            similar charges relating to the transfer of the Property,

                  (4) the cost of the Survey provided by Seller (but not the
            cost of any update or revision to the Survey),

                  (5) the costs of curing all title objections, if any, for
            which Seller is responsible under this Agreement,

                  (6) the costs of recording all mortgage cancellations, and

                  (7) Fannie Mae's legal fees related to the release of the
            Property from Seller's master credit enhancement facility with
            Fannie Mae.

            (b) Purchaser shall pay the following costs of the transaction:

                  (1) the fees of any counsel representing Purchaser in
            connection with this transaction,

                  (2) one-half (1/2) of any escrow fees charged by the Escrow
            Agent or Title Company,

                  (3) the fees for recording the Deeds and any quitclaim deeds,

                                       23
<PAGE>

                  (4) the premiums for the Title Policy, any title insurance
            endorsements, deletion of the "survey exception," title insurance
            coverage in excess of the Purchase Price, and any lender's title
            insurance policy,

                  (5) the costs of any credit enhancement or other financing
            obtained by Purchaser, including all costs related to Purchaser's
            assumption of the Assumed Project Financing,

                  (6) the cost of Purchaser's inspections of the Property, and

                  (7) the cost of any updates or revisions to the Survey,
            including updates or revisions necessary to comply with the
            requirements of Purchaser or its lender.

            (c) All other costs and expenses incident to this transaction and
      the closing thereof shall be paid by the party incurring same.

            (d) The provisions of this Section 4.5 shall survive the Closing
      and, to the extent of any such costs are incurred prior to or in the
      absence of a Closing, shall also survive the rescission, cancellation or
      termination of this Agreement.

      4.6 CONDITIONS PRECEDENT TO OBLIGATION OF PURCHASER. The obligation of
Purchaser to consummate the transaction hereunder shall be subject to the
fulfillment on or before the date of Closing (or such earlier time as otherwise
required hereby) of all of the following conditions, any or all of which may be
waived by Purchaser in its sole discretion:

            (a) Seller shall have delivered to Purchaser all of the material
      items required to be delivered to Purchaser by Seller or Seller's agents
      pursuant to the terms of this Agreement, including but not limited to,
      those provided for in Section 4.2.

            (b) All of the representations and warranties of Seller contained in
      this Agreement shall be true and correct in all material respects as of
      the date of Closing (with appropriate modifications permitted under this
      Agreement or not adverse to Purchaser).

            (c) Seller shall have performed and observed, in all material
      respects, all covenants and agreements of this Agreement to be performed
      and observed by Seller as of the date of Closing.

            (d) The Title Company shall have delivered the Title Policy to
      Purchaser as contemplated in Section 2.4 (or marked binder equivalent to
      such Title Policy), subject to Purchaser's payment of the premiums for
      such Title Policy.

            (e) Purchaser shall have received the executed documents from the
      Bond Participants evidencing the necessary consents and approvals from the
      Bond Participants necessary to effect the Assumption and Release
      Transaction; provided, however, if Purchaser fails to obtain all necessary
      consents and approvals during the Bond Period and Purchaser does not
      timely terminate this Agreement prior to the expiration of the Bond

                                       24
<PAGE>

      Period, then Purchaser shall be in default, and Seller shall be entitled
      to the remedies provided in Section 6.2 hereof.

            (f) All other conditions precedent to Purchaser's obligation to
      consummate the transaction hereunder (if any) which are set forth in this
      Agreement shall have been satisfied on or before the date of Closing (or
      such earlier date as is set forth herein).

      In the event any of the foregoing conditions has not been satisfied by the
Closing Date, Purchaser shall have the right to terminate this Agreement by
written notice given to Seller on the Closing Date, whereupon Escrow Agent shall
refund the Earnest Money to Purchaser and the parties shall have no further
rights, duties or obligations hereunder, other than those which are expressly
provided herein to survive the termination of this Agreement; provided, however,
that if any of the foregoing conditions has not been satisfied due to a default
by Purchaser or Seller hereunder, then Purchaser's and Seller's respective
rights, remedies and obligations shall instead be determined in accordance with
ARTICLE 6.

      4.7 CONDITIONS PRECEDENT TO OBLIGATION OF SELLER. The obligation of Seller
to consummate the transaction hereunder shall be subject to the fulfillment on
or before the date of Closing of all of the following conditions, any or all of
which may be waived by Seller in its sole discretion:

            (a) Seller shall have received the Purchase Price as adjusted
      pursuant to and payable in the manner provided for in this Agreement.

            (b) Purchaser shall have delivered to Seller all of the items
      required to be delivered to Seller by Purchaser or Purchaser's agents
      pursuant to the terms of this Agreement, including but not limited to,
      those provided for in Section 4.3.

            (c) All of the representations and warranties of Purchaser contained
      in this Agreement shall be true and correct in all material respects as of
      the date of Closing (with appropriate modifications permitted under this
      Agreement or not adverse to Seller).

            (d) Purchaser shall have performed and observed, in all material
      respects, all covenants and agreements of this Agreement to be performed
      and observed by Purchaser as of the date of Closing.

            (e) Seller shall have received all of the following in connection
      with the Assumption and Release Transaction, each in form and substance
      satisfactory to Seller in Seller's sole and absolute discretion: (i)
      consents and approvals from the Bond Participants; (ii) the release of
      Seller from any continuing recourse or non-recourse liability for the Bond
      Financing or the Fannie Mae Financing with respect to the Bond Projects as
      provided in Section 1.8; and (iii) the release of any cash deposits, hedge
      instruments and other forms of collateral delivered by Seller to Fannie
      Mae, the Smyrna Authority or the bond trustees in connection with the
      Portfolio Financing, to the extent such deposits, instruments and
      collateral relate to the Bond Projects.

                                       25
<PAGE>

            (f) All other conditions precedent to Seller's obligation to
      consummate the transaction hereunder (if any) which are set forth in this
      Agreement shall have been satisfied on or before the date of Closing.

      In the event any of the foregoing conditions has not been satisfied by the
Closing Date, Seller shall have the right to terminate this Agreement by written
notice given to Purchaser on the Closing Date, whereupon Escrow Agent shall
refund the Earnest Money to Purchaser and the parties shall have no further
rights, duties or obligations hereunder, other than those which are expressly
provided herein to survive a termination of this Agreement; provided, however,
if any of the foregoing conditions has not been satisfied due to a default by
Purchaser or Seller hereunder, then Purchaser's and Seller's respective rights,
remedies and obligations shall instead be determined in accordance with ARTICLE
6.

      4.8 SELLER'S TAX DEFERRED EXCHANGE. Seller may convey any one or more of
the Projects as part of a tax deferred exchange for THE benefit of Seller
pursuant to Section 1031 of the Internal Revenue Code. Seller may assign all
contract rights and obligations hereunder with respect to any one or more
Projects to a qualified intermediary, as part of, and in furtherance of, such
tax deferred exchange. Purchaser agrees to assist and cooperate in any such
exchange for the benefit of Seller at no cost, expense or liability TO Purchaser
and without reduction or alteration of the rights of Purchaser under this
Agreement and with respect to Seller; and Purchaser further agrees to execute
any and all documents (subject to the reasonable approval of Purchaser's legal
counsel) as are reasonably necessary in connection with any such exchange at
Seller's sole expense provided that Purchaser shall not be required to undertake
any material liability or obligation in so doing and provided that such exchange
does not extend the Closing Date. As part of any such exchange, Seller shall
convey the Property directly to Purchaser and Purchaser shall not be obligated
to acquire or CONVEY any other property as part of such exchange. Seller shall
indemnify, hold harmless and defend Purchaser from and against any and all
claims, demands, causes of action, liabilities, losses, costs, damages and
expenses (including reasonable attorneys' fees and expenses and court costs
incurred in defending any such claim or in enforcing this indemnity) that may be
incurred by Purchaser and arising out of Purchaser's participation in any such
exchange for the benefit of Seller. Notwithstanding the foregoing, should SELLER
fail to effect any tax deferred exchange as contemplated in this Section 4.8 for
any reason, then the sale by Seller of the Property shall be consummated in
accordance with terms and conditions of this Agreement just as though the
provisions of this Section 4.8 had been omitted from this Agreement, except that
Purchaser shall be reimbursed and indemnified from resulting costs and expenses
as provided in this Section 4.8. Nothing contained in this Section 4.8 shall
release Seller of any of its obligations or liabilities under this Agreement,
whether arising before, at or after Closing, nor shall anything contained in
this Section 4.8 impose any liability or obligation on Purchaser with respect to
the tax consequences of this transaction to Seller.

                                    ARTICLE 5

                    REPRESENTATIONS, WARRANTIES AND COVENANTS

                                       26
<PAGE>

      5.1 REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby makes the
following representations and warranties to Purchaser as of the Effective Date.
Such representations and warranties are subject to (i) those matters, if any,
disclosed in Seller's disclosure statement attached hereto as Schedules 5.1-1
through 5.1-5 and made a part hereof by this reference ("SELLER'S DISCLOSURE
STATEMENT"), (ii) the Permitted Exceptions, and (iii) all other applicable
provisions of this Agreement, including without limitation, ARTICLE 9. In
addition, each individual representation and warranty is qualified to the extent
of any applicable information or exception which is otherwise disclosed in
another representation or warranty.

            (a) ORGANIZATION AND AUTHORITY. Seller has been duly organized and
      is validly existing and in good standing as a limited partnership under
      the laws of the State of Georgia. Seller has the full right and authority
      to enter into this Agreement and to transfer the Property pursuant hereto
      and to consummate or cause to be consummated the transactions contemplated
      herein. The person signing this Agreement on behalf of Seller is
      authorized to do so. Neither the execution and delivery of this Agreement
      nor any other documents executed and delivered, or to be executed and
      delivered, by Seller in connection with the transactions described herein,
      will violate any provision of Seller's organizational documents or of any
      agreements, regulations, or laws to or by which Seller is bound (subject
      to receipt of such consents and approvals as may be necessary or
      appropriate in connection with the Assumption and Release Transaction).
      This Agreement has been duly authorized, executed and delivered by Seller,
      is a valid and binding obligation of Seller and is enforceable against
      Seller in accordance with its terms subject to (i) applicable bankruptcy,
      insolvency, reorganization, moratorium, and other laws affecting the
      rights of creditors generally; and (ii) the exercise of judicial
      discretion in accordance with general principles of equity.

            (b) CONSENTS. Seller has obtained all consents and permissions (if
      any) related to the transactions herein contemplated and required under
      any covenant, agreement, encumbrance, law or regulation by which Seller or
      the Property is bound, other than such consents and approvals as may be
      necessary or appropriate under the Portfolio Financing.

            (c) PENDING ACTIONS. To Seller's knowledge, Seller has not received
      written notice of any action, suit, arbitration, administrative or
      judicial proceeding, or unsatisfied order or judgment against Seller which
      pertains directly to the Property or the transaction contemplated by this
      Agreement. In addition, to Seller's knowledge, Seller has not received
      written notice of any other action, suit, arbitration, administrative or
      judicial proceeding, or unsatisfied order or judgment pending against
      Seller which, if adversely determined, would have a Material Adverse
      Effect. As used in this Agreement, "MATERIAL ADVERSE EFFECT" means, with
      respect to any fact or circumstance, that such fact or circumstance would
      individually or in the aggregate have a material adverse effect on title
      to the Property or any portion thereof, on Seller's ability to consummate
      the transaction contemplated herein, or on the value or operation of the
      Property.

            (d) LEASES AND RENT ROLL. Seller is the lessor or landlord under the
      Leases. Seller makes no representation or warranty as to the accuracy of
      the information

                                       27
<PAGE>

      contained in the Rent Rolls except that the Rent Rolls attached as
      Schedules 1.1(e)-1 through 1.1(e)-5 are, as of the date of such Rent
      Rolls, the current rent rolls used and relied on by Seller in connection
      with its ownership, operation, marketing and leasing of the applicable
      Projects. Notwithstanding anything to the contrary contained in this
      Agreement, Seller does not represent or warrant that any particular Lease
      will be in force or effect at Closing or that the tenants under the Leases
      will have performed their obligations thereunder. The termination of any
      Lease prior to Closing by reason of the tenant's default or for any other
      reason not constituting a default by Seller under this Agreement shall not
      affect the obligations of Purchaser under this Agreement in any manner or
      entitle Purchaser to an abatement of or credit against the Purchase Price
      or give rise to any other claim on the part of Purchaser.

            (e) CONDEMNATION. To Seller's knowledge, Seller has not received
      written notice of any pending or threatened condemnation proceedings
      relating to the Property. To Seller's knowledge, Seller has not received
      any written notice of any special governmental assessments affecting the
      Property.

            (f) INSURANCE. To Seller's knowledge Seller has not received prior
      to the Effective Date any written notice from any insurance company or
      board of fire underwriters of any defects or inadequacies in or on the
      Property or any part or component thereof that would materially and
      adversely affect the insurability of the Property or cause any material
      increase in the premiums for insurance for the Property, that have not
      been cured or repaired.

            (g) ENVIRONMENTAL MATTERS. Except as may be set forth in those
      environmental reports and other matters, if any, identified on Schedules
      5.1(g)-1 through 5.1(g)-5 (collectively, the "ENVIRONMENTAL REPORTS"), (i)
      Seller has received no written notice from any governmental authority
      asserting any violation of Environmental Laws related to the Property
      which has not been cured or corrected as of the Effective Date, and (ii)
      to Seller's knowledge, Seller has not commissioned any study relating to
      the presence or absence of Hazardous Materials on the Property. The term
      "ENVIRONMENTAL LAWS" includes without limitation the Resource Conservation
      and Recovery Act and the Comprehensive Environmental Response,
      Compensation, and Liability Act and other federal laws governing the
      environment as in effect on the date of this Agreement together with their
      implementing regulations as of the date of this Agreement applicable to
      the Property, and all applicable state, regional, county, municipal and
      other local laws, regulations and ordinances that are equivalent or
      similar to the federal laws recited above or that purport to regulate
      hazardous or toxic substances and materials. The term "HAZARDOUS
      MATERIALS" includes petroleum (including crude oil or any fraction
      thereof) and any substance, material, waste, pollutant or contaminant
      listed or defined as hazardous or toxic under any Environmental Laws, in
      any case at levels or concentrations requiring monitoring, reporting,
      remediation or removal in accordance with Environmental Laws.

            (h) FINANCIAL STATUS. Seller is solvent, has not made a general
      assignment for the benefit of its creditors, and has not admitted in
      writing its inability to pay its debts as

                                       28
<PAGE>

      they become due, nor has Seller filed, nor does it contemplate the filing
      of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
      proceedings, or any other proceeding for the relief of debtors in general,
      nor has any such proceeding been instituted by or against Seller, nor is
      any such proceeding to Seller's knowledge threatened or contemplated. The
      sale of the Property will not render Seller insolvent.

            (i) CONTRACTORS AND SUPPLIERS. All contractors, subcontractors,
      suppliers, architects, engineers, and others who have performed services,
      labor, or supplied material at the instance of Seller in connection with
      Seller's acquisition, development, ownership operation, maintenance,
      repair or management of the Property, and whose lien rights if any have
      not expired, will have been paid in full as of the Closing Date (or to the
      extent not so paid as of the Closing Date, Seller will have made adequate
      provision for payment for such services, labor or materials).

            (j) PERMITS AND LEGAL COMPLIANCE. To Seller's knowledge, Seller has
      not received written notice that Seller does not have all licenses,
      permits and certificates required for the use and operation of the
      Property, including, without limitation, all certificates of occupancy
      required for the occupancy of the Property, where the failure to have such
      license, permit or certificate would have a Material Adverse Effect. To
      Seller's knowledge, Seller has not received any written notice of an
      intention of any governmental authority to revoke any of such licenses,
      permits or certificates. To Seller's knowledge, Seller has not received
      any written notice from any governmental authority or adjoining property
      owner that the Property is in violation of any zoning, building, fire,
      health, environmental or other law, statute, ordinance, regulation or
      order of any governmental or public authority applicable to the Property
      or any private covenants or restrictions encumbering the Property that
      remains uncured and that, if not cured, would have a Material Adverse
      Effect.

            (k) SERVICE CONTRACTS. To Seller's knowledge, there are no
      management, service, supply, equipment rental and similar agreements to
      which Seller is a party affecting the Property other than those set forth
      in Schedules 5.1(k)-1 through 5.1-5(k). Those service contracts which have
      been or will be delivered by Seller to Purchaser are true, correct and
      complete in all material respects and include any material amendments or
      modifications thereto. To Seller's knowledge, Seller is not in default
      with respect to its obligations or liabilities under any of the service
      contracts where the failure to cure such default would have a Material
      Adverse Effect.

            (l) EMPLOYEES. Seller has no employees which Purchaser shall be
      obligated to employ following the Closing. Seller is not a party to any
      union contracts by which Purchaser will be bound after Closing.

            (m) BOND MATTERS. In connection with the Bonds, Seller represents
      and warrants the following:

                  (1) Seller has not received any written notice that there
            exists an uncured "Default" or "Event of Default" under any of the
            Portfolio Financing

                                       29
<PAGE>

            documents which relate to the Bond Projects to which Seller is a
            party and has no knowledge of any fact or circumstance that, with or
            without notice or the passage of time, or both, constitutes or would
            constitute a "Default" or "Event of Default" in any material respect
            by Seller under any of such documents to which Seller is a party;
            and

                  (2) To Seller's knowledge and since the date of issuance of
            the applicable outstanding Bonds for each Bond Project, 20% or more
            of the residential units in the applicable Bond Project have been
            occupied by individuals or families whose income is 80% or less of
            area median gross income (each, a "Lower-Income Tenant") or held
            available for occupancy by Lower-Income Tenants" to the extent
            previously occupied by a Lower-Income Tenant, as required under
            Section 103 of the Internal Revenue Code of 1954, as amended.

            (n) ERISA. Seller is not (i) an "employee benefit plan" within the
      meaning of Section 3(3) of the Employee Retirement Income Security Act of
      1974, as amended ("ERISA"), (ii) a "governmental plan" under Section 3(32)
      of ERISA, (iii) any plan described in Section 4975 of the Internal Revenue
      Code, or (iv) an entity whose underlying assets include "plan assets" by
      reason of the application of the ERISA "plan assets" regulation (29 C.F.R.
      2510.3-101).

      5.2 KNOWLEDGE DEFINED. References to the "KNOWLEDGE" of Seller shall refer
only to the actual knowledge, without investigation or inquiry, on the Effective
Date of the Designated Representatives (as hereinafter defined) of Seller, and
shall not be CONSTRUED, by imputation or otherwise, to refer to the knowledge of
any property manager or broker, or to any other officer, agent, manager,
representative or employee of Seller or any affiliate of Seller, or to impose
upon such Designated Representatives any duty to investigate the matter to which
such actual knowledge, or the absence thereof, pertains. As used herein, the
term "DESIGNATED REPRESENTATIVES" shall refer to the following persons: (i)
Thomas D. Senkbeil, Executive Vice President and Chief Investment Officer, (ii)
Suzanne H. Holman, Vice President of Acquisitions, Dispositions and Condominium
Operations, (iii) Autumn Sillay, Area Vice President, (iv) with respect to
Section 5.1(c) only, Sherry W. Cohen, Executive Vice President and Secretary,
and (v) with respect to the specified Projects, only, each of the following
Property Managers:

<TABLE>
<CAPTION>
        PROJECT                                       PROPERTY MANAGER
<S>                                                   <C>
The Arbors of Post Village(R)                         Heather Beccaria
The Hills of Post Village(R)                          Heather Beccaria
The Gardens of Post Village(R)                        Heather Beccaria
The Fountains of Post Village(R)                      Heather Beccaria
The Meadows of Post Village(R)                        Heather Beccaria
</TABLE>

      In no event shall Purchaser have any personal claim against the
above-named individuals

                                       30
<PAGE>

as a result of the reference thereto in this Section 5.2, and Purchaser waives
all such claims which Purchaser now has or may later acquire against them in
connection with the transactions contemplated in this Agreement.

      5.3 SURVIVAL OF SELLER'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of Seller set forth in SECTION 5.1, as updated by
Seller's Closing Certificate, shall survive Closing for a period of one (1) year
after Closing. No claim for a breach of any representation or warranty of Seller
shall be actionable or payable (a) if the breach in question results from or is
based on a condition, state of facts or other matter which was known to
Purchaser prior to Closing, (b) unless the valid claims FOR all such breaches
collectively aggregate FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) or more,
in which event the full amount of such valid claims shall be actionable, up to
but not exceeding the amount of the Cap (as defined below), and (c) unless
written NOTICE containing a description of the specific nature of such breach
shall have been given by Purchaser to Seller prior to the expiration of said one
hundred eighty (180) day period and an action shall have been commenced by
Purchaser against Seller within one (1) year after Closing. Seller shall not be
liable to Purchaser to the extent Purchaser's claim is satisfied from any
insurance policy, service contract or Lease. As used herein, the term "CAP"
shall mean the total aggregate amount of ONE MILLION THREE HUNDRED FIFTY
THOUSAND AND NO/100 DOLLARS ($1,350,000.00). In no event shall Seller's
aggregate liability to Purchaser for any and all breaches of any representation
or warranty of Seller in this Agreement or Seller's Closing Certificate exceed
the amount of the Cap, and Purchaser hereby waives and disclaims any right to
damages or compensation for any and all such breaches in excess of the Cap.

      5.4 COVENANTS OF SELLER. Seller hereby covenants with Purchaser, from the
Effective Date until the Closing or earlier termination of this Agreement, as
follows:

            (a) OPERATION OF PROPERTY. Seller shall use reasonable efforts to
      operate and maintain the Property in a manner generally consistent with
      the manner in which Seller has operated and maintained the Property prior
      to the date hereof.

            (b) EXECUTION OF NEW LEASES AND RENEWALS. Seller shall use
      reasonable efforts to negotiate new leases for unrented apartment units in
      the Improvements and/or Lease renewals for rented apartment units in the
      Improvements and shall maintain an advertising and marketing program for
      apartment units in the Improvements consistent with Seller's past
      practices at the Property. Unless Purchaser agrees otherwise in writing,
      any new leases for such apartment units entered into by Seller after the
      Effective Date until the Closing or earlier termination of this Agreement
      shall be on Seller's standard apartment lease form for the Property, and
      shall be for terms of no less than six (6) months and no more than fifteen
      (15) months. In all cases, Seller shall retain the discretion to set rent
      rates, concessions and other terms of occupancy; provided, however, Seller
      shall obtain Purchaser's prior written consent before entering into any
      Lease that does not meet the following criteria: (i) with respect to a
      Lease for a renewing Tenant, Seller shall not charge less than the rent
      charged to such Tenant during the term immediately prior to the renewal
      term, (ii) with respect to Leases for Units that Seller has received
      notice from the current Tenant that such Tenant intends to vacate at the
      end of

                                       31
<PAGE>

      the current term, Seller shall charge Market Rent (as hereinafter defined)
      and shall not grant a free rent concession of more than two months, spread
      over the term of the Lease, and (iii) with respect to Leases for vacant
      Units, Seller shall charge Market Rent and shall not grant a free rent
      concession of more than (x) two months on one and two bedroom Units,
      spread over the term of the Lease and (y) three months, spread over the
      term of the Lease on two bedroom Units that have been vacant more than
      sixty (60) days. Each such new lease or renewal entered into by Seller
      shall constitute a "Lease" for purposes of this Agreement. For purposes of
      this Section 5.4(c), "Market Rent" means the market rent for each Unit as
      shown on the Rent Rolls attached in Schedules 1.1(e)-1 through 1.1(e)-5.

            (c) MAINTENANCE OF INSURANCE. Seller shall keep the Improvements
      insured against loss or damage (including rental loss) by fire and all
      risks covered by the Seller's insurance that is currently in force,
      provided that Seller may make adjustments in Seller's insurance coverage
      for the Property which are consistent with Seller's general insurance
      program for Seller's other apartment properties as in effect from time to
      time.

            (d) ENFORCEMENT OF EXISTING LEASES. Seller shall perform the
      landlord's material obligations to the tenants under the Leases and
      enforce the material obligations of the tenants under the Leases, in each
      case in accordance with the current management standards of Seller for its
      apartment properties.

            (e) PREPARATION OF VACANT UNITS FOR LEASE. Seller shall place
      apartment units that are now vacant or that become vacant into rent-ready
      condition on or before the Closing Date in accordance with Seller's
      current management standards for its apartment properties as though no
      sale of the Property were contemplated or, at Seller's option, provide
      Purchaser a credit at Closing in an amount not to exceed $400.00 per unit
      for the apartment units (a) that are not in rent-ready condition on the
      Closing Date, and (b) for which Purchaser has provided written notice
      detailing its objections concerning the rent-ready condition thereof at
      least seven (7) days prior to Closing, such credit to be equal to the cost
      of placing those apartment units in rent-ready condition in accordance
      with Seller's current management standards; provided, however, that with
      respect to apartment units vacated during the seven (7) day period ending
      on the Closing Date, Seller shall have no obligation either to put such
      units into rent-ready condition or to give Purchaser a credit for the cost
      of doing so.

            (f) PROVIDE COPIES OF NOTICES. Seller shall furnish Purchaser with a
      copy of all written notices received by Seller from any governmental
      authority of any violation of any law, statute, ordinance, regulation or
      order of any governmental or public authority relating to the Property
      within five (5) business days following Seller's receipt thereof, but, if
      received by such date, in no event later than two (2) business days prior
      to the Closing Date.

            (g) REMOVAL AND REPLACEMENT OF TANGIBLE PERSONAL PROPERTY. Seller
      shall not remove any Tangible Personal Property except as may be required
      for necessary repair or replacement (which repair and replacement shall be
      of equal quality and

                                       32
<PAGE>

      quantity as existed as of the time of the removal), or otherwise in
      accordance with current inventory and management standards of Seller for
      its apartment properties.

            (h) EXECUTION OF NEW CONTRACTS. Seller shall not, without
      Purchaser's prior written consent in each instance (which consent shall
      not be unreasonably withheld or delayed during the Inspection Period but
      which thereafter may be withheld in Purchaser's sole discretion),
      materially amend or terminate any of the Designated Service Contracts, or
      enter into any contract or agreement that will be an obligation affecting
      the Property or binding on Purchaser after the Closing, except that (i)
      Seller may enter into, amend or enforce (including enforcement by
      termination) service contracts in the ordinary course of business as
      reasonably necessary for the continued operation and maintenance of the
      Property, provided (x) any new service contracts are terminable without
      cause or penalty on thirty (30) days notice and (y) Seller notifies
      Purchaser of such contract, and (ii) Seller may conduct leasing activity
      as provided in Section 5.4(b) hereof. Each such new service contract
      entered into by Seller shall constitute a "DESIGNATED SERVICE CONTRACT"
      for purposes of this Agreement.

            (i) MAINTENANCE OF PERMITS. Seller shall make commercially
      reasonable efforts to maintain in existence all material licenses, permits
      and approvals that are now in existence with respect to, and are required
      for, the ownership, operation or improvement of the Property, and are of a
      continuing nature.

      5.5 REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser hereby makes
the following representations and warranties to Seller as of the Effective Date:

            (a) ORGANIZATION AND AUTHORITY. Purchaser has been duly organized
      and is validly existing as a limited liability company under the laws of
      the State of Delaware. Purchaser has the full right and authority to enter
      into this Agreement and to purchase the Property pursuant hereto and to
      consummate or cause to be consummated the transactions contemplated
      herein. The person signing this Agreement on behalf of Purchaser is
      authorized to do so. Neither the execution and delivery of this Agreement
      nor any other documents executed and delivered, or to be executed and
      delivered, by Purchaser in connection with the transactions described
      herein, will violate any provision of Purchaser's organizational documents
      or of any agreements, regulations, or laws to or by which Purchaser is
      bound. This Agreement has been duly authorized, executed and delivered by
      Purchaser, is a valid and binding obligation of Purchaser and is
      enforceable against Purchaser in accordance with its terms subject to (i)
      applicable bankruptcy, insolvency, reorganization, moratorium, and other
      laws affecting the rights of creditors generally; and (ii) the exercise of
      judicial discretion in accordance with general principles of equity.

            (b) CONSENTS. On or before the Inspection Date, Purchaser will have
      obtained all consents and permissions (if any) related to the transactions
      herein contemplated and required under any covenant, agreement,
      encumbrance, law or regulation by which Purchaser is bound, including
      investment committee approval. On or before the

                                       33
<PAGE>

      Inspection Date, Purchaser shall provide Seller reasonably acceptable
      evidence that Purchaser has received the necessary consents.

            (c) PENDING ACTIONS. To Purchaser's knowledge, there is no action,
      suit, arbitration, administrative or judicial administrative proceeding,
      or unsatisfied order or judgment pending or threatened against Purchaser
      or the transaction contemplated by this Agreement, which, if adversely
      determined, could individually or in the aggregate have a material adverse
      effect on Purchaser's ability to consummate the transaction contemplated
      herein.

            (d) FINANCIAL STATUS. At Closing, Purchaser will have adequate
      financial resources to purchase the Property and assume the Assumed
      Project Financing in the manner contemplated in this Agreement. Purchaser
      is solvent, has not made a general assignment for the benefit of its
      creditors, and has not admitted in writing its inability to pay its debts
      as they become due, nor has Purchaser filed, nor does it contemplate the
      filing of, any bankruptcy, reorganization, arrangement, insolvency or
      liquidation proceedings, or any other proceeding for the relief of debtors
      in general, nor has any such proceeding been instituted by or against
      Purchaser, nor is any such proceeding to Purchaser's knowledge threatened
      or contemplated. The purchase of the Property and assumption of the
      Assumed Project Financing in the manner contemplated in this Agreement
      will not render Purchaser insolvent.

            (e) ERISA. Either (i) Purchaser is not (X) an "employee benefit
      plan" within the meaning of Section 3(3) of ERISA and which is subject to
      Title I of ERISA, (Y) any plan described in Section 4975 of the Internal
      Revenue Code, or (Z) an entity whose underlying assets include "plan
      assets" by reason of the application of the ERISA "plan assets" regulation
      (29 C.F.R. 2510.3-101), or (ii) the sale of the Property to the Purchaser
      is exempt from the prohibited transaction restrictions of Section 406 of
      ERISA and Section 4975 of the Internal Revenue Code of 1986, as amended
      pursuant to a prohibited transaction statutory or administrative
      exemption.

            (f) PATRIOT ACT AND RELATED MATTERS. Purchaser hereby represents,
      warrants, covenants and agrees, as of the date hereof and as of the
      Closing Date, as follows:

                  (i) Purchaser is familiar with the source of funds for the
            purchase price of the Property and represents that all such funds
            are and will be derived from legitimate business activities within
            the United States of America and/or from loans from a banking or
            financial institution chartered or organized within the United
            States of America. Purchaser covenants and agrees to provide to
            Seller any and all documents, certifications or other evidence, as
            may be requested from time to time by Seller in its sole discretion,
            confirming the source of funds for the Purchase Price (and that such
            funds derived from legitimate business activities). Purchaser's
            representation in this clause (i) excludes the Assumed Project
            Financing, except to the extent that Purchaser elects to use a
            credit enhancer other than Fannie Mae with respect to the Assumed
            Project Financing.

                                       34
<PAGE>

                  (ii) Purchaser has been in compliance for the last five years
            and will continue to be in compliance through the Closing Date with
            (a) the PATRIOT Act, Pub. L. No. 107-56, the Bank Secrecy Act, 31
            U.S.C. Section 5311 et seq., the Money Laundering Control Act of
            1986, and laws relating to the prevention and detection of money
            laundering in 18 U.S.C. Sections 1956 and 1957; (b) the Export
            Administration Act (50 U.S.C. Sections 2401-2420), the International
            Emergency Economic Powers Act (50 U.S.C. Section 1701, et seq.), the
            Arms Export Control Act (22 U.S.C. Sections 2778-2994), the Trading
            With The Enemy Act (50 U.S.C. app. Sections 1-44), and 13 U.S.C.
            Chapter 9; (c) the Foreign Asset Control Regulations contained in 31
            C.F.R., Subtitle B, Chapter V; and (d) any other civil or criminal
            federal or state laws, regulations, or orders of similar import.

                  (iii) None of the Purchaser Parties (as defined below) is now
            or shall be at any time until the Closing Date be a person who has
            been listed on (i) the Specially Designated Nationals and Blocked
            Persons List contained in Appendix A to 31 C.F.R., Subtitle B, Part
            V; (ii) the Denied Persons List, the Entity List, and the Unverified
            Parties List maintained by the United States Department of Commerce;
            (iii) the List of Terrorists and List of Debarred Parties maintained
            by the United States Department of State; and (iv) any other similar
            list maintained by any federal or state agency or pursuant to any
            Executive Order of the President of the United States of America.
            "PURCHASER PARTIES" means, collectively, (a) Purchaser, (b) its
            officers, directors, managers, agents, and employees, (c) its
            shareholders, members, partners, and other investors, or any other
            person that owns or controls Purchaser, and (d) any entity on whose
            behalf Purchaser acts.

      5.6 SURVIVAL OF PURCHASER'S REPRESENTATIONS AND WARRANTIES. The
representations and warranties of Purchaser set forth in Section 5.5 shall
survive Closing for a period of one (1) year after Closing.

      5.7 COVENANTS OF PURCHASER.

            (a) Purchaser hereby assumes full responsibility for the adequacy
      and suitability of all inspections and investigations for Purchaser's
      purposes. EXCEPT FOR CLAIMS BASED ON A BREACH BY SELLER OF THE
      REPRESENTATIONS AND WARRANTIES CONTAINED IN SECTION 5.1(g), PURCHASER
      IRREVOCABLY WAIVES ANY CLAIM AGAINST SELLER ARISING FROM THE PRESENCE OF
      HAZARDOUS MATERIALS OR MOLD OR ANY MOLD CONDITION ON THE PROPERTY OR THE
      BREACH OF ENVIRONMENTAL LAWS WITH RESPECT TO THE PROPERTY. Purchaser SHALL
      also upon Seller's request furnish to Seller copies of any other reports
      received by Purchaser relating to any other inspections of the Property
      conducted on Purchaser's behalf, if any. "MOLD" means mold, mildew, fungus
      or other potentially dangerous organisms. "MOLD CONDITION" means the
      presence or suspected presence of Mold or any condition(s) that reasonably
      can be expected to give rise to or indicate the presence of Mold,
      including observed or suspected instances of water damage or intrusion,
      the presence of wet or damp wood, cellulose wallboard, floor coverings or
      other materials, inappropriate climate control,

                                       35
<PAGE>

      discoloration of walls, ceilings or floors, complaints of respiratory
      ailment or eye irritation by residents, employees or any other occupants
      or invitees in the Property, or any notice from a governmental agency of
      complaints regarding the indoor air quality at the Property.

            (b) "DESIGNATED SERVICE CONTRACTS" means (i) those certain service
      contracts which are assignable in accordance with their terms which
      Purchaser identifies by written notice delivered to Seller on or before
      the Inspection Date as the service contracts Purchaser elects Seller to
      assign at Closing, (ii) those assignable service contracts regarding which
      Purchaser has failed to deliver such written notice on or before the
      Inspection Date, and (iii) those service contracts (the "MUST TAKE SERVICE
      CONTRACTS") which are assignable in accordance with their terms and which
      may not be terminated without cause or penalty, with thirty (30) days (or
      less) written notice. Purchaser hereby covenants with Seller that on or
      before the Inspection Date, Purchaser shall deliver written notice to
      Seller instructing which of the assignable service contracts Purchaser
      desires for Seller to assign to Purchaser and which it does not. If
      Purchaser fails to timely deliver such notice, Purchaser shall be deemed
      to have chosen to have all assignable service contracts assigned to
      Purchaser, and all such service contracts shall be deemed part of the
      "Designated Service Contracts." At Closing, Seller will cause the service
      contracts which Purchaser has elected not to have assigned to Purchaser
      (other than the Must Take Service Contracts), by operation of the
      aforesaid notice on or before the Inspection Date, to be terminated at
      Seller's expense, such termination to be effective within the time period
      provide for in the applicable service contract (or if no such time period
      is provided, as promptly as practicable after the Closing Date). The
      provisions of this Section 5.7(b) shall survive Closing.

                                    ARTICLE 6

                                     DEFAULT

      6.1 DEFAULT BY PURCHASER. If the sale of the Property as contemplated
hereunder is not consummated due to Purchaser's default hereunder, then Seller
shall be entitled, as its sole and exclusive remedy for such default, to
terminate this Agreement and receive the Earnest Money as liquidated damages for
the breach of this Agreement and not as a penalty, it being agreed between the
parties hereto that the actual damages to Seller in the event of such breach are
impractical to ascertain and the amount of the Earnest Money is a reasonable
estimate thereof, Seller hereby expressly waiving and relinquishing any and all
other remedies at law or in equity. Seller's right to receive the Earnest Money
is intended not as a penalty, but as full liquidated damages. The right to
receive the Earnest Money as full liquidated damages is Seller's sole and
exclusive remedy in the event of default hereunder by Purchaser, and Seller
hereby waives and releases any right to (and hereby covenants that it shall not)
sue Purchaser: (a) for specific performance OF this Agreement, or (b) to recover
any damages of any nature or description other than or in excess of the Earnest
Money. Purchaser hereby waives and releases any right to (and hereby covenants
that it shall not) sue Seller or seek or claim a refund of the Earnest Money (or
any part thereof) on the grounds it is unreasonable in amount and exceeds

                                       36
<PAGE>

Seller's actual damages or that its retention by Seller constitutes a penalty
and not agreed upon and reasonable liquidated damages. This Section 6.1 is
subject to Section 6.4 hereof.

      6.2 DEFAULT BY SELLER. If the sale of the Property as contemplated
hereunder is not consummated due to Seller's default hereunder, then Purchaser
shall be entitled, as its sole remedy for such default, either (a) to receive
the return of the Earnest Money, which return shall operate to terminate this
Agreement and release Seller from any and all liability hereunder, or (b) to
enforce specific performance of Seller's obligation to execute and deliver the
documents required to convey the Property to Purchaser, it being understood and
agreed that the remedy of specific performance shall not be available to enforce
any other obligation of Seller hereunder. Purchaser expressly waives its rights
to seek damages in the event of Seller's default hereunder; provided, however,
that if Seller's default constitutes an Intentional Seller Default (as
hereinafter defined) and Purchaser makes the election described in clause (a)
above (or Purchaser makes the election in clause (b) but the remedy of specific
performance is not available), then Purchaser shall also have the right to sue
Seller for money damages, in an amount equal to the lesser of (i) TWO HUNDRED
FIFTY THOUSAND DOLLARS ($250,000.00) in the aggregate, or (ii) the amount of all
third-party out-of-pocket costs and expenses actually incurred by Purchaser in
connection with this Agreement and the Property ("THIRD-PARTY COSTS"), including
due diligence costs, engineering and environmental review costs, and legal fees
and expenses. In no event shall Seller be liable for consequential, speculative,
remote or punitive damages, or any damages other than Third-Party Costs, and
Purchaser hereby waives any right to seek or collect any such consequential,
speculative, remote or punitive damages, or any damages other than Third-Party
Costs (such Third Party Costs to be limited in all cases as provided above).
Purchaser shall be deemed to have elected to terminate this Agreement and
receive back the Earnest Money if Purchaser fails to file suit for specific
performance against Seller in a court having jurisdiction in the county and
state in which the Property is located, on or before sixty (60) days following
the date upon which Closing was to have occurred. "INTENTIONAL SELLER DEFAULT"
means any one or more of the following: (a) fraudulent misrepresentation, (b)
criminal conduct (i.e. conduct that constitutes a felony under applicable law),
or (c) an intentional and deliberate act of Seller taken on or after the
Effective Date that is intended to result in, and does result in, Purchaser's
inability to consummate the transaction contemplated in this Agreement for a
reason other than Purchaser's default or the failure of any condition to Closing
to be satisfied. For purposes of this Section 6.2, specific performance shall be
considered not available to Purchaser if either (i) the nature of Seller's
default is such that upon obtaining such specific performance Purchaser would
receive materially less than Purchaser bargained for in this Agreement, or (ii)
the court declines to grant such specific performance for reasons other than the
merits of Purchaser's underlying claim of default.

      6.3 NOTICE OF DEFAULT; OPPORTUNITY TO CURE. Neither Seller nor Purchaser
shall be deemed to be in default hereunder until and unless such party has been
given written notice of its failure to comply with the terms hereof and
thereafter does not cure such failure within five (5) business days after
receipt of such notice; provided, however, that this Section 6.3 (i) shall not
be applicable to Purchaser's failure to deliver the Earnest Money or any portion
thereof on the date required hereunder or to a party's failure to make any
deliveries required of such party on the Closing Date and, accordingly, (ii)
shall not have the effect of extending the Bond Period as set

                                       37
<PAGE>

forth in Section 1.9 hereof, and (iii) shall not have the effect of extending
the Closing Date or THE due date of any Earnest Money deposit hereunder.

      6.4 RECOVERABLE DAMAGES. Notwithstanding Sections 6.1 and 6.1 hereof, in
no event shall the provisions of Sections 6.1 and 6.1 limit (i) either
Purchaser's or Seller's obligation to indemnify the other party, or the damages
recoverable by the indemnified party against the indemnifying party due to, a
party's express obligation to indemnify the other party in accordance with the
Access Agreement or Section 3.1, 4.8, or 8.2 of this Agreement, or (ii) either
party's obligation to pay costs, fees or expenses under Section 4.5 hereof, or
the damages recoverable by either party against the other party due to a party's
failure to pay such costs. In addition, if this Agreement terminates for any
reason, and Purchaser or any party related to or affiliated with Purchaser
asserts any claim or right to the Property that would otherwise delay or prevent
Seller from having clear, indefeasible, and marketable title to the Property,
then Seller shall have all rights and remedies available at law or in equity
with respect to such assertion by Purchaser and any loss, damage or other
consequence suffered by Seller as a result of such assertion.

                                    ARTICLE 7

                                  RISK OF LOSS

      7.1 MINOR DAMAGE. In the event of "damage" to the Property or any portion
thereof which is not "major" (as such terms are hereinafter defined), this
Agreement shall remain in full force and effect provided Seller, at Seller's
option, either (i) performs any necessary repairs at Seller's expense, (ii) (in
the event of an insured loss) assigns to Purchaser all of Seller's right, title
and interest to any claims and proceeds Seller may have with respect to any
casualty insurance policies or condemnation awards relating to the premises in
question and (if applicable) provides Purchaser a credit against the Purchase
Price in an amount equal to the deductible amount or self-insured retention
under such casualty insurance or (iii) (in the event of an uninsured loss)
provides Purchaser a credit against the Purchase Price in an amount equal to the
amount of the loss, as determined by an architect selected by Seller and
reasonably approved by Purchaser. In the event that Seller elects to perform
repairs upon the Property, Seller shall use reasonable efforts to complete such
repairs promptly, and the date of Closing shall be extended a reasonable time in
order to allow for the completion of such repairs, not to exceed ninety (90)
days from scheduled date of Closing as provided herein (the "Repair Deadline").
In the event that Seller makes the election to perform the necessary repairs at
Seller's expense pursuant to clause (i), and Seller does not complete such
repairs by the Repair Deadline, then Purchaser shall have the right, at
Purchaser's election, either (i) to terminate this Agreement by written notice
given to Seller on the Repair Deadline, whereupon Escrow Agent shall refund the
Earnest Money to Purchaser and the parties shall have no further rights, duties
or obligations hereunder, other than those which are expressly provided herein
to survive a termination of this Agreement, or (ii) to proceed to close and
receive a credit at Closing equal to the cost to complete such repairs as
determined by the parties, acting reasonably, with the assistance of a
contractor selected Seller and reasonably approved by Purchaser (in which case
Seller shall retain all

                                       38
<PAGE>

applicable insurance claims). Upon Closing, full risk of loss with respect to
the Property shall pass to Purchaser.

      7.2 MAJOR DAMAGE. In the event of a major damage, either Seller or
Purchaser may terminate this Agreement by written notice to the other party, in
which event the Earnest Money shall be returned to Purchaser in accordance with
Section 1.6, and the parties shall have no further rights, duties or obligations
hereunder, other than those which are expressly provided herein to survive a
termination of this Agreement. If neither Seller nor Purchaser elects to
terminate this Agreement within ten (10) days after Seller sends Purchaser
written notice of the occurrence of major loss or damage, then Purchaser shall
be deemed to have elected to proceed with Closing, in which event Seller shall
assign to Purchaser at Closing all of Seller's right, title and interest to any
claims and proceeds Seller may have with respect to any casualty insurance
policies or condemnation awards relating to the premises in question and provide
a credit at Closing equal to the deductible amount under such casualty insurance
policies (it being understood that Seller shall not have the obligation to fund
any uninsured loss, as opposed to the deductible amount with respect to an
insured loss). Upon Closing, full risk of loss with respect to the Property
shall pass to Purchaser.

      7.3 DEFINITION OF MAJOR DAMAGE. For purposes of Sections 7.1 and 7.2:

            (a) "DAMAGE" means (i) physical damage to or destruction of all or
      part of the Real Property by reason of fire, earthquake, flood or other
      casualty occurring after the Effective Date or (ii) the physical taking of
      all or part of the Real Property by condemnation or by conveyance in lieu
      of condemnation occurring after the Effective Date; and

            (b) "MAJOR" damage refers to the following: (i) damage such that the
      cost of repairing or restoring the premises in question to A condition
      substantially similar to that of the premises in question prior to the
      event of damage would in the opinion of a contractor selected by Seller
      and reasonably approved by Purchaser, be equal to or greater than (A)
      insured loss or losses of TWO MILLION FIVE HUNDRED THOUSAND AND NO/100
      DOLLARS ($2,500,000.00) in the aggregate for all Projects, and (B)
      uninsured loss or losses of ONE MILLION TWO HUNDRED FIFTY THOUSAND AND
      NO/100 DOLLARS ($1,250,000.00) in the aggregate for all Projects, and (ii)
      any damage due to a condemnation or conveyance in lieu of condemnation
      which permanently and materially impairs the current use or value of the
      Property or access to the Property from public roads or the number or
      utility of parking spaces. If Purchaser does not give notice to Seller of
      Purchaser's reasons for disapproving an architect within FIVE (5) business
      days after receipt of notice of the proposed contractor, then Purchaser
      shall be deemed to have approved THE contractor selected by Seller.

                                    ARTICLE 8

                                   COMMISSIONS

                                       39
<PAGE>

      8.1 BROKER'S COMMISSION. The parties acknowledge that Broker has been
retained by and represents Seller as broker in connection with the sale of the
Property by Seller to Purchaser, and is to be compensated for its services by
Seller. Seller agrees that Seller shall pay to Broker upon, but only upon, final
consummation of the transaction contemplated herein, a real estate brokerage
commission pursuant to a separate written agreement between Seller and Broker.
Broker has executed this Agreement for the purpose of acknowledging and agreeing
that no real estate commission or other fee or compensation shall be earned by
it or due it if the transaction contemplated herein does not close as a result
of Seller's default, Purchaser's default or otherwise. At Closing, Broker shall
execute and deliver to Seller and Purchaser a release of any lien or claim of
lien of Broker with respect to the Property and shall execute and deliver to
Purchaser and Seller a general release of any claims arising out of the
transaction contemplated in this Agreement.

      8.2 REPRESENTATION AND INDEMNITY.

            (a) Purchaser and Seller each hereby represents and warrants to the
      other that it has not disclosed this Agreement or the SUBJECT matter
      hereof to, and has not otherwise dealt with, any real estate broker, agent
      or salesman (other than Broker) so as to create any legal right or claim
      in any such broker, agent or salesman (other than Broker) for a real
      estate COMMISSION or similar fee or compensation with respect to the
      negotiation and/or consummation of this Agreement or the conveyance of the
      Property by Seller to Purchaser. Except as provided in Section 8.1 with
      respect to Broker, Purchaser and Seller shall indemnify, hold harmless and
      defend each other from and against any and claims and demands for a real
      estate brokerage commission or similar fee or compensation arising out of
      any claimed dealings with the indemnifying party and relating to this
      Agreement or the purchase and sale of the Property (including reasonable
      attorneys' fees and expenses and court costs incurred in defending any
      such claim or in enforcing this indemnity).

            (b) Broker hereby represents and warrants to Seller and Purchaser
      that it has not disclosed this Agreement or the subject matter hereof to,
      and has not otherwise dealt with, any real estate broker, agent or
      salesman so as to create any legal right or claim in any such broker,
      agent or salesman for a real estate commission or similar fee or
      compensation with respect to the negotiation and/or consummation of this
      Agreement or the conveyance of the Property by Seller to Purchaser.
      Further, Broker shall indemnify, hold harmless and defend each of Seller
      and Purchaser from and against any and all claims and demands for a real
      estate brokerage commission or similar fee or compensation arising out of
      any claimed dealings with Broker and relating to this Agreement or the
      purchase and sale of the Property (including reasonable attorneys' fees
      and expenses and court costs incurred in defending any such claim or in
      enforcing this indemnity).

      8.3 EXECUTION BY BROKER. Broker has executed this Agreement solely for the
purpose of acknowledging and agreeing to the provisions of this ARTICLE 8.
Broker's consent to any modification or amendment of any provision of this
Agreement other than this ARTICLE 8 shall not be required. Without limitation on
the foregoing, Broker acknowledges and agrees

                                       40
<PAGE>

that Broker may not enforce any provision of this Agreement except for Section
8.1; that Broker is not a necessary party in any litigation or other proceeding
involving this Agreement not relating directly to the payment of commissions
under Section 8.1; that this Agreement may be terminated for any reason or no
reason without consent of Broker and without any obligation to Broker that
copies of any notices given by Seller or Purchaser to the other need not be sent
to Broker; and that consent of Broker is not required for any matter under this
Agreement except as expressly provided in this Section 8.3.

      8.4 SURVIVAL. This ARTICLE 8 shall survive the rescission, cancellation,
termination or consummation of this Agreement.

                                    ARTICLE 9

                             DISCLAIMERS AND WAIVERS

      9.1 NO RELIANCE ON DOCUMENTS. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND
WARRANTIES SET FORTH IN SECTION 5.1 HEREOF, SELLER MAKES NO REPRESENTATION OR
WARRANTY AS TO THE TRUTH, ACCURACY OR COMPLETENESS OF ANY MATERIALS, DATA OR
INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE TRANSACTION
CONTEMPLATED HEREBY. PURCHASER ACKNOWLEDGES AND AGREES THAT ALL MATERIALS, DATA
AND INFORMATION DELIVERED BY SELLER TO PURCHASER IN CONNECTION WITH THE
TRANSACTION CONTEMPLATED HEREBY ARE PROVIDED TO PURCHASER AS A CONVENIENCE ONLY
AND THAT ANY RELIANCE ON OR USE OF SUCH MATERIALS, DATA OR INFORMATION BY
PURCHASER SHALL BE AT THE SOLE RISK OF PURCHASER, EXCEPT AS OTHERWISE EXPRESSLY
STATED HEREIN. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, PURCHASER
ACKNOWLEDGES AND AGREES THAT (A) ANY ENVIRONMENTAL OR OTHER REPORT WITH RESPECT
TO THE PROPERTY WHICH IS DELIVERED BY SELLER TO PURCHASER SHALL BE FOR GENERAL
INFORMATIONAL PURPOSES ONLY, (B) PURCHASER SHALL NOT HAVE ANY RIGHT TO RELY ON
ANY SUCH REPORT DELIVERED BY SELLER TO PURCHASER, BUT RATHER WILL RELY ON ITS
OWN INSPECTIONS AND INVESTIGATIONS OF THE PROPERTY AND ANY REPORTS COMMISSIONED
BY PURCHASER WITH RESPECT THERETO, AND (C) NEITHER SELLER, ANY AFFILIATE OF
SELLER NOR THE PERSON OR ENTITY WHICH PREPARED ANY SUCH REPORT DELIVERED BY
SELLER TO PURCHASER SHALL HAVE ANY LIABILITY TO PURCHASER FOR ANY INACCURACY IN
OR OMISSION FROM ANY SUCH REPORT.

      9.2 DISCLAIMERS. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES OF
SELLER SET FORTH IN SECTION 5.1 HEREOF, PURCHASER UNDERSTANDS AND AGREES THAT
SELLER IS NOT MAKING AND HAS NOT AT ANY TIME MADE ANY WARRANTIES OR
REPRESENTATIONS OF ANY KIND OR

                                       41
<PAGE>

CHARACTER, EXPRESSED OR IMPLIED, WITH RESPECT TO THE PROPERTY, INCLUDING, BUT
NOT LIMITED TO, ANY WARRANTIES OR REPRESENTATIONS AS TO HABITABILITY,
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE (OTHER THAN SELLER'S
LIMITED OR SPECIAL WARRANTY OF TITLE TO BE SET FORTH IN THE DEED), ZONING, TAX
CONSEQUENCES, LATENT OR PATENT PHYSICAL OR ENVIRONMENTAL CONDITION, UTILITIES,
OPERATING HISTORY OR PROJECTIONS, VALUATION, GOVERNMENTAL APPROVALS, THE
COMPLIANCE OF THE PROPERTY WITH GOVERNMENTAL LAWS, THE ABSENCE OR PRESENCE OF
HAZARDOUS MATERIALS OR OTHER TOXIC SUBSTANCES (INCLUDING WITHOUT LIMITATION MOLD
OR ANY MOLD CONDITION), COMPLIANCE WITH ENVIRONMENTAL LAWS, THE TRUTH, ACCURACY
OR COMPLETENESS OF THE PROPERTY DOCUMENTS OR ANY OTHER INFORMATION PROVIDED BY
OR ON BEHALF OF SELLER TO PURCHASER, OR ANY OTHER MATTER OR THING REGARDING THE
PROPERTY. PURCHASER ACKNOWLEDGES AND AGREES THAT UPON CLOSING SELLER SHALL SELL
AND CONVEY TO PURCHASER AND PURCHASER SHALL ACCEPT THE PROPERTY "AS IS, WHERE
IS, WITH ALL FAULTS", EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE IN THIS
AGREEMENT. PURCHASER HAS NOT RELIED AND WILL NOT RELY ON, AND SELLER IS NOT
LIABLE FOR OR BOUND BY, ANY EXPRESSED OR IMPLIED WARRANTIES, GUARANTIES,
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR
RELATING THERETO (INCLUDING SPECIFICALLY, WITHOUT LIMITATION, PROPERTY
INFORMATION PACKAGES DISTRIBUTED WITH RESPECT TO THE PROPERTY) MADE OR FURNISHED
BY SELLER, THE MANAGER OF THE PROPERTY, OR ANY REAL ESTATE BROKER OR AGENT
REPRESENTING OR PURPORTING TO REPRESENT SELLER, TO WHOMEVER MADE OR GIVEN,
DIRECTLY OR INDIRECTLY, ORALLY OR IN WRITING, UNLESS SPECIFICALLY SET FORTH IN
THIS AGREEMENT.

      PURCHASER REPRESENTS TO SELLER THAT PURCHASER HAS CONDUCTED, OR WILL
CONDUCT PRIOR TO CLOSING, SUCH INVESTIGATIONS OF THE PROPERTY, INCLUDING BUT NOT
LIMITED TO, THE PHYSICAL AND ENVIRONMENTAL CONDITIONS THEREOF, AS PURCHASER
DEEMS NECESSARY TO SATISFY ITSELF AS TO THE CONDITION OF THE PROPERTY AND THE
EXISTENCE OR NONEXISTENCE OR CURATIVE ACTION TO BE TAKEN WITH RESPECT TO ANY
HAZARDOUS MATERIALS OR TOXIC SUBSTANCES ON OR DISCHARGED FROM THE PROPERTY
(INCLUDING WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION), AND WILL RELY SOLELY
UPON SAME AND NOT UPON ANY INFORMATION PROVIDED BY OR ON BEHALF OF SELLER OR ITS
AGENTS OR EMPLOYEES WITH RESPECT THERETO, OTHER THAN SUCH REPRESENTATIONS,
WARRANTIES AND COVENANTS OF SELLER AS ARE EXPRESSLY SET FORTH IN THIS AGREEMENT.
UPON CLOSING, PURCHASER SHALL ASSUME THE RISK THAT ADVERSE MATTERS, INCLUDING
BUT NOT LIMITED TO, CONSTRUCTION DEFECTS AND ADVERSE PHYSICAL AND ENVIRONMENTAL
CONDITIONS, MAY

                                       42
<PAGE>

NOT HAVE BEEN REVEALED BY PURCHASER'S INVESTIGATIONS, AND PURCHASER, UPON
CLOSING, SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER (AND
SELLER'S AND ITS PARTNERS' RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS,
EMPLOYEES AND AGENTS) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF
ACTION (INCLUDING CAUSES OF ACTION IN TORT OR UNDER ANY ENVIRONMENTAL LAW),
LOSSES, DAMAGES, LIABILITIES (WHETHER BASED ON STRICT LIABILITY OR OTHERWISE),
LOSSES, DAMAGES, LIABILITIES, COSTS AND EXPENSES (INCLUDING ATTORNEYS' FEES AND
COURT COSTS) OF ANY AND EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH
PURCHASER MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER (AND SELLER'S AND ITS
PARTNERS' RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS) AT
ANY TIME BY REASON OF OR ARISING OUT OF ANY LATENT OR PATENT CONSTRUCTION
DEFECTS OR PHYSICAL CONDITIONS, VIOLATIONS OF ANY APPLICABLE LAWS (INCLUDING,
WITHOUT LIMITATION, ANY ENVIRONMENTAL LAWS) AND ANY AND ALL OTHER ACTS,
OMISSIONS, EVENTS, CIRCUMSTANCES OR MATTERS REGARDING THE PROPERTY. THE
FOREGOING SHALL NOT BE INTERPRETED TO WAIVE ANY CLAIM OF PURCHASER WITH RESPECT
TO ANY BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY
SELLER IN SECTION 5.1 THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO SECTION 5.3.

      PURCHASER AGREES THAT SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION OR
REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL CONDITIONS (INCLUDING
WITHOUT LIMITATION ANY MOLD OR MOLD CONDITION) ON OR RELATED TO THE PROPERTY BE
REQUIRED AFTER THE DATE OF CLOSING, SELLER SHALL HAVE NO LIABILITY TO PURCHASER
TO PERFORM OR PAY FOR SUCH INVESTIGATION, CLEAN-UP, REMOVAL OR REMEDIATION, AND
PURCHASER EXPRESSLY WAIVES AND RELEASES ANY CLAIM TO THE CONTRARY. THE FOREGOING
SHALL NOT BE INTERPRETED TO WAIVE ANY CLAIM OF PURCHASER WITH RESPECT TO ANY
BREACH BY SELLER OF ANY EXPRESS REPRESENTATIONS AND WARRANTIES MADE BY SELLER IN
SECTION 5.1 THAT EXPRESSLY SURVIVE CLOSING PURSUANT TO SECTION 5.3.

      PURCHASER REPRESENTS AND WARRANTS THAT THE TERMS OF THE RELEASE CONTAINED
HEREIN AND ITS CONSEQUENCES HAVE BEEN COMPLETELY READ AND UNDERSTOOD BY
PURCHASER, AND PURCHASER HAS HAD THE OPPORTUNITY TO CONSULT WITH, AND HAS
CONSULTED WITH, LEGAL COUNSEL OF PURCHASER'S CHOICE WITH REGARD TO THE TERMS OF
THIS RELEASE. PURCHASER ACKNOWLEDGES AND WARRANTS THAT PURCHASER'S EXECUTION OF
THIS RELEASE IS FREE AND VOLUNTARY.

                                       43
<PAGE>

      9.3 EFFECT AND SURVIVAL OF DISCLAIMERS. Seller and Purchaser acknowledge
that the provisions of this ARTICLE 9 are an integral part of the transactions
contemplated in this Agreement and a material inducement to Seller to enter into
this Agreement and that Seller would not enter into this Agreement but for the
provisions of this ARTICLE 9. Seller and Purchaser agree that the provisions of
this ARTICLE 9 shall survive Closing or any termination of this Agreement.

                                   ARTICLE 10

                                  ESCROW AGENT

      10.1 INVESTMENT OF EARNEST MONEY. Escrow Agent shall invest the Earnest
Money pursuant to Purchaser's reasonable directions in an interest bearing
account at a commercial bank whose deposits are insured by the Federal Deposit
Insurance Corporation. Escrow Agent shall notify Seller, no later than one (1)
business day after Escrow Agent's receipt thereof, that Escrow Agent has
received the Earnest Money in immediately available funds, and is holding the
same in accordance with the terms of this Agreement. However, Escrow Agent shall
invest the Earnest Money only in such accounts as will allow Escrow Agent to
disburse the Earnest Money upon no more than one (1) business day's notice.

      10.2 PAYMENT AT CLOSING. If the Closing takes place under this Agreement,
Escrow Agent shall deliver the Earnest Money to, or upon the instructions of,
Seller on the Closing Date.

      10.3 PAYMENT ON DEMAND. Upon receipt of any written certification from
Seller or Purchaser claiming the Earnest Money pursuant TO the provisions of
this Agreement, Escrow Agent shall promptly forward a copy thereof to the other
such party (i.e., Purchaser or Seller, whichever did not claim the Earnest Money
pursuant to such notice) and, unless such other party within ten (10) days
thereafter notifies Escrow Agent of any objection to such requested disbursement
of the Earnest Money, Escrow Agent shall disburse THE Earnest Money to the party
demanding the same and shall thereupon be released and discharged from any
further duty or obligation hereunder.

      10.4 EXCULPATION OF ESCROW AGENT. It is agreed that the duties of Escrow
Agent are herein specifically provided and are purely ministerial in nature, and
that Escrow Agent shall incur no liability whatsoever except for its willful
misconduct or negligence, so long as Escrow Agent is acting in good faith.
Seller and Purchaser do each hereby release Escrow Agent from any liability for
any error of judgment or for any act done or omitted to be done by Escrow Agent
in the good faith performance of its duties hereunder and do each hereby
indemnify Escrow Agent against, and agree to hold, save, and defend Escrow Agent
harmless from, any costs, LIABILITIES, and expenses incurred by Escrow Agent in
serving as Escrow Agent hereunder and in faithfully discharging its duties and
obligations hereunder.

      10.5 STAKEHOLDER. Escrow Agent is acting as a stakeholder only with
respect to the Earnest Money. If there is any dispute as to whether Escrow Agent
is obligated to deliver the Earnest Money or as to whom the Earnest Money is to
be delivered, Escrow Agent may refuse to make any delivery and may continue to
hold the Earnest Money until receipt by Escrow Agent of

                                       44
<PAGE>

an authorization in writing, signed by Seller and Purchaser, directing the
disposition of the Earnest Money, or, in the absence of such written
authorization, until final determination of the rights of the parties in an
appropriate judicial proceeding. If such written authorization is not given, or
a proceeding for such determination is not begun, within thirty (30) days of
notice to Escrow Agent of such dispute, Escrow Agent may bring an appropriate
action or proceeding for leave to deposit the Earnest Money in a court of
competent jurisdiction pending such determination. Escrow Agent shall be
reimbursed for all costs and expenses of such action or proceeding, including,
without limitation, reasonable attorneys' fees and disbursements, by the party
determined not to be entitled to the Earnest Money. Upon making delivery of the
Earnest Money in any of the manners herein provided, Escrow Agent shall have no
further liability or obligation hereunder.

      10.6 INTEREST. All interest and other income earned on the Earnest Money
deposited with Escrow Agent hereunder shall be reported for income tax purposes
as earnings of Purchaser. Purchaser's taxpayer identification number is
71-0929493.

      10.7 EXECUTION BY ESCROW AGENT. Escrow Agent has executed this Agreement
solely for the purpose of acknowledging and agreeing to the provisions of this
ARTICLE 10. Escrow Agent's consent to any modification or amendment of this
Agreement other than this ARTICLE 10 shall not be required.

                                   ARTICLE 11

                                  MISCELLANEOUS

      11.1 CONFIDENTIALITY. Purchaser and its representatives shall hold in
strictest confidence all data and information in accordance with the Access
Agreement. This Section 11.1 and the confidentiality provisions of the Access
Agreement shall survive any termination of this Agreement and shall survive the
Closing in accordance with their respective terms.

      11.2 PUBLIC DISCLOSURE. Prior to Closing, any press release or similar
public announcement with respect to the transactions contemplated herein or any
matters set forth in this Agreement will be made only in the form approved by
Purchaser and Seller. Notwithstanding anything to the contrary in this Agreement
or the Access Agreement, each of Seller and Purchaser shall have the right to
make all disclosures with regard to the transactions contemplated in this
Agreement as are required under applicable law and regulation, including,
without limitation, all applicable laws and regulations relating to securities,
securities exchanges and the issuers of securities.

      11.3 ASSIGNMENT. Purchaser reserves the right to take title to the
Property in the name of a nominee or assignee, or in the name of one or more of
the institutional investors for which Purchaser or one of its affiliates is then
acting as investment manager (a "SEPARATE ACCOUNT") or a nominee or assignee of
a Separate Account. In the event the rights and obligations of Purchaser
hereunder shall be assigned by Purchaser to a Separate Account, the assignor
shall be

                                       45
<PAGE>

released from any obligation or liability hereunder, other than its indemnity
contained the Access Agreement, Sections 3.1(c) and 8.2 hereof, and such
Separate Account shall be substituted as Purchaser hereunder, shall be entitled
to the benefit of and may enforce Seller's covenants, representations and
warranties hereunder as if such Separate Account were the original Purchaser
hereunder, and shall assume all obligations and liabilities of Purchaser
hereunder, subject to any limitations of such liabilities and obligations
hereunder or provided by law. Upon notification to Seller of any such
assignment, Seller's representations and warranties hereunder shall be deemed
remade to the Separate Account as of the date of such assignment. Purchaser
shall not make an assignment to a Separate Account unless such entity is solvent
at the time of assignment and thereafter through the time of Closing, is not
rendered insolvent by such assignment or the consummation of this Agreement, has
sufficient assets to consummate the transaction contemplated herein, and enters
into an assumption agreement, naming Seller as an express third-party
beneficiary, in a form approved by Seller and pursuant to which the assignee
assumes all obligations and liabilities of Purchaser under this Agreement,
whether accruing before or after the date of such assignment. No transfer or
assignment by Purchaser shall release or relieve Purchaser of any of its
obligations hereunder though the earlier of Closing or termination of this
Agreement.

      11.4 NOTICES. Any notice, request or other communication (a "NOTICE")
required or permitted to be given hereunder shall be in writing and shall be
delivered by hand or overnight courier (such as United Parcel Service or Federal
Express), sent by facsimile (provided a copy of such notice is deposited with an
overnight courier for next business day delivery) or mailed by United States
registered or certified mail, return receipt requested, postage prepaid and
addressed to each party at its address as set forth BELOW. Any such notice shall
be considered given on the date of such hand or courier delivery, confirmed
facsimile transmission (provided such facsimile notice is received by 5:00 P.M.
local time by the addressee and a copy of such notice is deposited with an
overnight courier for next business day delivery), deposit with such overnight
courier for next business day delivery, or deposit in the United States mail,
but the time period (if any is provided herein) in which to respond to such
notice shall commence on the date of hand or overnight courier delivery or on
the date received following deposit in the United States mail as provided above.
Rejection or other refusal to accept or inability to deliver because of changed
address of which no notice was given shall be deemed to be receipt of the
notice. By giving at least five (5) days' prior written notice thereof, any
party may from time to time and at any time change its mailing address
hereunder. Any notice of any party may be given by such party's counsel.

      In no event shall this Agreement be altered, amended or modified by
electronic mail or electronic record. The parties acknowledge and agree that
this Agreement shall not be executed, entered into, altered, amended or modified
by electronic means. Without limiting the generality of the foregoing, the
parties hereby agree that the transactions contemplated by this Agreement shall
not be conducted by electronic means.

      The parties' respective addresses for notice purposes are as follows.
Telephone and telecopy numbers are given for convenience of reference only.
Notice by telephone or telecopy shall not be effective.

                                       46
<PAGE>

  If to Seller:           Post Apartment Homes, L.P.
                          One Riverside
                          4401 Northside Parkway
                          Suite 800
                          Atlanta, Georgia 30327-3057
                          Attention: Ms. Sherry W. Cohen
                          Telephone No. 404/846-5025
                          Facsimile No. 404/504-9388

                          and

                          Post Apartment Homes, L.P.
                          One Riverside
                          4401 Northside Parkway
                          Suite 800
                          Atlanta, Georgia 30327-3057
                          Attention: Mr. Thomas D. Senkbeil
                          Telephone No. 404/846-6612
                          Facsimile No. 404/504-9388

  with a copy to:         King & Spalding LLP
                          191 Peachtree Street, N.E.
                          Atlanta, GA 30303-1763
                          Attention: Dan L. Heller, Esq./Ann B. Kustoff
                          Telephone No. 404/572-4600
                          Facsimile No. 404/572-5148

  If to Purchaser:        RREEF America L.L.C.
                          280 Park Avenue, 40th Floor
                          New York, New York 10017
                          Attention: Pamela Thomas
                          Telephone: 212/454-6511
                          Facsimile: 212/454-6606

  with a copy to:         Seyfarth Shaw LLP
                          55 East Monroe Street, St. 4200
                          Chicago, IL 60603-5803
                          Attention: Michael J. Quinn, Esq.
                          Telephone: 312/781-8641
                          Facsimile: 312/269-8869

                                       47
<PAGE>

  If to Escrow Agent:     Fidelity National Title Insurance Company of New York
                          1800 Parkway Place
                          Suite 700
                          Marietta, Georgia 30067
                          Attention: Ms. Amy Greipp
                          Telephone: 770/850-9600
                          Facsimile: 770/850-8222

  If to Broker:           CB Richard Ellis, Inc.
                          3340 Peachtree Road
                          Suite 1050
                          Atlanta, Georgia 30326
                          Attention: Paul Berry
                          Telephone: 404/923-1425
                          Facsimile: 404/923-1560

      11.5 MODIFICATIONS. This Agreement cannot be changed orally, and no
agreement shall be effective to waive, change, modify or discharge it in whole
or in part unless such agreement is in writing and is signed by the parties
against whom enforcement of any waiver, change, modification or discharge is
sought.

      11.6 CALCULATION OF TIME PERIODS. Unless otherwise specified, in computing
any period of time described in this Agreement, the day of the act or event
after which the designated period of time begins to run is not to be included
and the last day of the period so computed is to be included, unless such last
day is a Saturday, Sunday or legal holiday under the laws of the State in which
the Property is located, in which event the period shall run until the end of
the next day which is neither a Saturday, Sunday or legal holiday. The final day
of any such period shall be deemed to end at 5:00 p.m., Atlanta, Georgia local
time.

      11.7 SUCCESSORS AND ASSIGNS. Subject to Section 11.3 hereof, the terms and
provisions of this Agreement are to apply to and bind the permitted successors
and assigns of the parties hereto.

      11.8 ENTIRE AGREEMENT. This Agreement, including the Schedules, and the
Access Agreement contain the entire agreement between THE parties pertaining to
the subject matter hereof and fully supersede all prior written or oral
agreements and understandings BETWEEN the parties pertaining to such subject
matter.

      11.9 FURTHER ASSURANCES. Each party agrees that it will without further
consideration execute and deliver such other documents and take such other
action, whether prior or subsequent to Closing, as may be reasonably requested
by the other party to consummate more effectively the purposes or subject matter
of this Agreement. Without limiting the generality of the foregoing, Purchaser
SHALL, if requested by Seller, execute acknowledgments of receipt with respect
to any materials delivered by Seller to Purchaser with respect to the Property.
The provisions of this Section 11.9 shall survive Closing.

                                       48
<PAGE>

      11.10 COUNTERPARTS. This Agreement may be executed in counterparts, and
all such executed counterparts shall constitute the same agreement. It shall be
necessary to account for only one such counterpart in proving this Agreement.

      11.11 SEVERABILITY. If any provision of this Agreement is determined by a
court of competent jurisdiction to be invalid or unenforceable, the remainder of
this Agreement shall nonetheless remain in full force and effect.

      11.12 APPLICABLE LAW. This Agreement is performable in the state in which
the Property is located and shall in all respects be governed by, and construed
in accordance with, the substantive federal laws of the United States and the
laws of such state. Seller and Purchaser hereby irrevocably submit to the
jurisdiction of any state or federal court sitting in the state and judicial
district in which the Property is located in any action or proceeding arising
out of or relating to this Agreement and hereby irrevocably AGREE that all
claims in respect of such action or proceeding shall be heard and determined in
a state or federal court sitting in the state and judicial district in which the
Property is located. Purchaser and Seller agree that the provisions of this
Section 11.12 shall survive the Closing of the transaction contemplated by this
Agreement.

      11.13 NO THIRD PARTY BENEFICIARY. The provisions of this Agreement and of
the documents to be executed and delivered at Closing are and will be for the
benefit of Seller and Purchaser only and are not for the benefit of any third
party, and accordingly, no THIRD party shall have the right to enforce the
provisions of this Agreement or of the documents to be executed and delivered at
Closing.

      11.14 EMPLOYEES. Prior to the day after the Inspection Date, Purchaser
agrees not to offer employment to or solicit the employment of any employees of
Seller who are employed at the Property. Seller shall be solely responsible for
the salaries and benefits, if any, payable to Seller's employees at the Property
for the period through the Closing, in accordance with and subject to the terms
and conditions of such employment, even if such employees are employed by or on
behalf of Purchaser following the Closing. With respect to any employees
employed by or on behalf of Purchaser following the Closing, Purchaser shall be
solely responsible for all salaries and benefits, if any, payable to such
employees for the period from and after the Closing in accordance with and
subject to the terms and conditions of such employment, even if such employees
were employed by Seller prior to the Closing. Neither Purchaser nor Seller shall
have any obligation for salaries, benefits or other employment obligations to
any such employee with respect to the period such employee is or was employed by
the other party. Purchaser acknowledges and agrees that (i) Seller shall not
maintain any employees on the Property after Closing and shall not provide any
management services post-Closing and (ii) Purchaser is solely responsible for
hiring adequate staff to run the Projects upon Closing. This Section 11.14 shall
survive the Closing.

      11.15 SELLER'S ACCESS TO RECORDS AFTER CLOSING. Purchaser shall cooperate
with Seller (at no material cost to Purchaser) for a period of six (6) years
after Closing in case of Seller's need in response to any legal requirement, tax
audit, tax return PREPARATION or litigation threatened or brought against
Seller, by allowing Seller and its agents or representatives access, upon
reasonable advance notice (which notice shall identify the nature of the
information sought

                                       49
<PAGE>

by Seller), at all reasonable times to examine and make copies of any and all
instruments, files and records which predate the Closing; provided, however,
that nothing contained in this Section 11.15 shall require Purchaser to retain
any files or records for any particular period of time. This Section 11.15 shall
survive Closing.

      11.16 CAPTIONS. The section headings appearing in this Agreement are for
convenience of reference only and are not intended, to any extent and for any
purpose, to limit or define the text of any section or any subsection hereof.

      11.17 CONSTRUCTION. The parties acknowledge that the parties and their
counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be EMPLOYED in the interpretation of this Agreement or
any exhibits or amendments hereto.

      11.18 TERMINATION OF AGREEMENT. It is understood and agreed that if either
Purchaser or Seller terminates this Agreement pursuant to a right of termination
granted hereunder, such termination shall operate to relieve Seller and
Purchaser from all obligations UNDER this Agreement, except for such obligations
as are specifically stated herein to survive the termination of this Agreement.

      11.19 SURVIVAL. The provisions of the following Sections of this Agreement
shall survive Closing and shall not be merged into the execution and delivery of
the Deed: 1.7; 2.7; 2.8; 3.1(b) (with respect to Purchaser's indemnity
obligations under the Access Agreement); 3.1(c); 4.2(c); 4.4; 4.5; 5.1; 5.2 5.3;
5.5; 5.6; 5.7; Article 8; Article 9; 11.1; 11.2; 11.9; 11.12; 11.14; 11.15;
11.22; those additional provisions of Article 11 which govern the
administration, interpretation or enforcement of this Agreement; and any other
provisions contained herein that by their terms survive the Closing (the
"OBLIGATIONS SURVIVING CLOSING"). Except for the Obligations Surviving Closing,
all representations, warranties, covenants and agreements contained in this
Agreement shall be merged into the instruments and documents executed and
delivered at Closing. The Obligations Surviving Closing shall survive the
Closing; provided, however, that the representations and warranties of Seller
contained in Section 5.1, as updated by Seller's Closing Certificate, and the
representations and warranties of Purchaser contained in Section 5.5, shall
survive for the period, and are subject to the terms set forth in Sections 5.3
and 5.6 respectively.

      11.20 TIME OF ESSENCE. Time is of the essence with respect to this
Agreement.

      11.21 COVENANT NOT TO RECORD. Purchaser shall not record this Agreement or
any memorandum or other evidence thereof. Any such recording shall constitute a
material default hereunder on the part of Purchaser.

      11.22 LIMITATION OF SELLER'S LIABILITY. Purchaser shall have no recourse
against any of the past, present or future, direct or indirect, shareholders,
partners, members, managers, principals, directors, officers, agents,
incorporators, affiliates or representatives of Seller or its general partner or
of any of the assets or property of any of the foregoing for the payment or
collection of any amount, judgment, judicial process, arbitral award, fee or
cost or for any other

                                       50
<PAGE>

obligation or claim arising out of or based upon this Agreement and requiring
the payment of money by Seller. This Section 11.22 shall survive the Closing.

      11.23 SCHEDULES. The following schedules or exhibits attached hereto shall
be deemed to be an integral part of this Agreement:

<TABLE>
<S>                    <C>
Schedule 1.1(a)-1      Land - The Arbors of Post Village(R)

Schedule 1.1(a)-2      Land - The Hills of Post Village(R)

Schedule 1.1(a)-3      Land - The Gardens of Post Village(R)

Schedule 1.1(a)-4      Land - The Fountains of Post Village(R)

Schedule 1.1(a)-5      Land - The Meadows of Post Village(R)

Schedule 1.1(d)-1      Inventory of Tangible Personal Property - The Arbors of Post Village(R)

Schedule 1.1(d)-2      Inventory of Tangible Personal Property - The Hills of Post Village(R)

Schedule 1.1(d)-3      Inventory of Tangible Personal Property - The Gardens of Post Village(R)

Schedule 1.1(d)-4      Inventory of Tangible Personal Property - The Fountains of Post Village(R)

Schedule 1.1(d)-5      Inventory of Tangible Personal Property - The Meadows of Post Village(R)

Schedule 1.1(d)-6      Inventory of Tangible Personal Property - Post Village(R)

Schedule 1.1(e)-1      Rent Roll - The Arbors of Post Village(R)

Schedule 1.1(e)-2      Rent Roll - The Hills of Post Village(R)

Schedule 1.1(e)-3      Rent Roll - The Gardens of Post Village(R)

Schedule 1.1(e)-4      Rent Roll - The Fountains of Post Village(R)

Schedule 1.1(e)-5      Rent Roll - The Meadows of Post Village(R)

Schedule 1.6           Form of Letter of Credit

Schedule 2.1           Lists of Title Commitments

Schedule 2.2           Lists of Surveys

Schedule 2.4-1         Certain Permitted Exceptions- The Arbors of Post Village(R)

Schedule 2.4-2         Certain Permitted Exceptions- The Hills of Post Village(R)

Schedule 2.4-3         Certain Permitted Exceptions- The Gardens of Post Village(R)

Schedule 2.4-4         Certain Permitted Exceptions- The Fountains of Post Village(R)

Schedule 2.4-5         Certain Permitted Exceptions- The Meadows of Post Village(R)
</TABLE>

                                       51
<PAGE>

<TABLE>
<S>                    <C>
Schedule 2.5(d)-1      Portfolio Financing Documents - The Hills of Post Village(R)

Schedule 2.5(d)-2      Portfolio Financing Documents - The Gardens of Post Village(R)

Schedule 2.5(d)-3      Portfolio Financing Documents - The Fountains of Post Village(R) and The Meadows of Post Village(R)

Schedule 4.2(a)        Form of Deed

Schedule 4.2(b)        Form of Bill of Conveyance and Assignment

Schedule 5.1-1         Seller's Disclosure Schedule - The Arbors of Post Village(R)

Schedule 5.1-2         Seller's Disclosure Schedule - The Hills of Post Village(R)

Schedule 5.1-3         Seller's Disclosure Schedule - The Gardens of Post Village(R)

Schedule 5.1-4         Seller's Disclosure Schedule - The Fountains of Post Village(R)

Schedule 5.1-5         Seller's Disclosure Schedule - The Meadows of Post Village(R)

Schedule 5.1(g)-1      Environmental Reports - The Arbors of Post Village(R)

Schedule 5.1(g)-2      Environmental Reports - The Hills of Post Village(R)

Schedule 5.1(g)-3      Environmental Reports - The Gardens of Post Village(R)

Schedule 5.1(g)-4      Environmental Reports - The Fountains of Post Village(R)

Schedule 5.1(g)-5      Environmental Reports - The Meadows of Post Village(R)

Schedule 5.1(k)-1      Service Contracts - The Arbors of Post Village(R)

Schedule 5.1(k)-2      Service Contracts - The Hills of Post Village(R)

Schedule 5.1(k)-3      Service Contracts - The Gardens of Post Village(R)

Schedule 5.1(k)-4      Service Contracts - The Fountains of Post Village(R)

Schedule 5.1(k)-5      Service Contracts - The Meadows of Post Village(R)
</TABLE>

                                       52
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the Effective Date.

                                     SELLER:

                                     POST APARTMENT HOMES, L.P.,
                                     a Georgia limited partnership

                                          By: Post GP Holdings, Inc.,
                                              a Georgia corporation,
                                              sole General Partner

                                              By: /s/ Thomas D. Senkbeil
                                                  ----------------------
                                              Name: Thomas D. Senkbeil
                                              Title: EVP and Chief Investment
                                                     Officer

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

      THIS IS A SIGNATURE PAGE TO, AND MAY BE ATTACHED TO A MASTER COUNTERPART
      OF, THE PURCHASE AND SALE AGREEMENT BETWEEN POST APARTMENT HOMES, L.P., AS
      SELLER, AND RREEF AMERICA, L.L.C., AS PURCHASER, WITH RESPECT TO THE
      ARBORS OF POST VILLAGE(R), THE HILLS OF POST VILLAGE(R), THE GARDENS OF
      POST VILLAGE(R), THE FOUNTAINS OF POST VILLAGE(R), AND THE MEADOWS OF POST
      VILLAGE(R), IN COBB COUNTY, GEORGIA

      FIDELITY NATIONAL TITLE INSURANCE COMPANY OF NEW YORK, AS ESCROW AGENT,
      AND CB RICHARD ELLIS, INC., AS BROKER, ARE PARTIES TO SUCH PURCHASE AND
      SALE AGREEMENT FOR THE LIMITED PURPOSES SET FORTH THEREIN.

                                      S-1

<PAGE>

                                     PURCHASER:

                                     RREEF America, L.L.C., a Delaware limited
                                     liability company

                                     By: /s/ Pamela Thomas
                                         -----------------
                                     Name: Pamela Thomas
                                     Title: Director

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

      THIS IS A SIGNATURE PAGE TO, AND MAY BE ATTACHED TO A MASTER COUNTERPART
      OF, THE PURCHASE AND SALE AGREEMENT BETWEEN POST APARTMENT HOMES, L.P., AS
      SELLER, AND RREEF AMERICA, L.L.C., AS PURCHASER, WITH RESPECT TO THE
      ARBORS OF POST VILLAGE(R), THE HILLS OF POST VILLAGE(R), THE GARDENS OF
      POST VILLAGE(R), THE FOUNTAINS OF POST VILLAGE(R), AND THE MEADOWS OF POST
      VILLAGE(R), IN COBB COUNTY, GEORGIA

      FIDELITY NATIONAL TITLE INSURANCE COMPANY OF NEW YORK, AS ESCROW AGENT,
      AND CB RICHARD ELLIS, INC., AS BROKER, ARE PARTIES TO SUCH PURCHASE AND
      SALE AGREEMENT FOR THE LIMITED PURPOSES SET FORTH THEREIN.

                                      S-2
<PAGE>

      Escrow Agent has executed this Agreement for the limited purposes set
forth herein.

                                     ESCROW AGENT:

                                     FIDELITY NATIONAL TITLE INSURANCE COMPANY
                                     OF NEW YORK, a New York corporation

                                     By: /s/ Paul A. Berry
                                         -----------------
                                     Name: Paul A. Berry
                                     Title: First Vice President

                  [SIGNATURES CONTINUED ON THE FOLLOWING PAGES]

      THIS IS A SIGNATURE PAGE TO, AND MAY BE ATTACHED TO A MASTER COUNTERPART
      OF, THE PURCHASE AND SALE AGREEMENT BETWEEN POST APARTMENT HOMES, L.P., AS
      SELLER, AND RREEF AMERICA, L.L.C., AS PURCHASER, WITH RESPECT TO THE
      ARBORS OF POST VILLAGE(R), THE HILLS OF POST VILLAGE(R), THE GARDENS OF
      POST VILLAGE(R), THE FOUNTAINS OF POST VILLAGE(R), AND THE MEADOWS OF POST
      VILLAGE(R), IN COBB COUNTY, GEORGIA

      FIDELITY NATIONAL TITLE INSURANCE COMPANY OF NEW YORK, AS ESCROW AGENT,
      AND CB RICHARD ELLIS, INC., AS BROKER, ARE PARTIES TO SUCH PURCHASE AND
      SALE AGREEMENT FOR THE LIMITED PURPOSES SET FORTH THEREIN.

                                      S-3
<PAGE>

      Broker has executed this Agreement for the limited purposes set forth
herein.

                                     BROKER:

                                     CB RICHARD ELLIS, INC.

                                     By: /s/ Leonard R. Gray, Jr.
                                         ------------------------
                                     Name: Leonard R. Gray, Jr.
                                     Title: V.P. and NTS Counsel
                                            Fidelity National Title
                                            Insurance Company

      THIS IS A SIGNATURE PAGE TO, AND MAY BE ATTACHED TO A MASTER COUNTERPART
      OF, THE PURCHASE AND SALE AGREEMENT BETWEEN POST APARTMENT HOMES, L.P., AS
      SELLER, AND RREEF AMERICA, L.L.C., AS PURCHASER, WITH RESPECT TO THE
      ARBORS OF POST VILLAGE(R), THE HILLS OF POST VILLAGE(R), THE GARDENS OF
      POST VILLAGE(R), THE FOUNTAINS OF POST VILLAGE(R), AND THE MEADOWS OF POST
      VILLAGE(R), IN COBB COUNTY, GEORGIA

      FIDELITY NATIONAL TITLE INSURANCE COMPANY OF NEW YORK, AS ESCROW AGENT,
      AND CB RICHARD ELLIS, INC., AS BROKER, ARE PARTIES TO SUCH PURCHASE AND
      SALE AGREEMENT FOR THE LIMITED PURPOSES SET FORTH THEREIN.

                                      S-4