Document:

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                                                                  EXHIBIT 4.2(a)

                                    MORTGAGE

STATE OF SOUTH CAROLINA
COUNTY OF CHARLESTON

TO ALL WHOM THESE PRESENTS MAY CONCERN:

ML James Island Apartments, L.P., a limited partnership
Organized and existing under the laws of Georgia
Having its principal place of business at 624 Ellis Street, Augusta, GA 30901
(Hereinafter with its successors and assigns called the Mortgagor) sends
Greetings:

         WHEREAS, THE Mortgagor is well and truly indebted unto Continental
Wingate Associates, Inc., corporation organized and existing under the laws of
Massachusetts, having its principal place of business at 63 Kendrick Street,
Needham. MA 02494 (hereinafter with it successors and assigns called the
Mortgagee), in the sum of Sixteen Million Two Hundred Twenty Thousand Three
Hundreds and No/100 Dollars (16,220,300.00) as evidenced by Mortgagor's Note of
even date herewith bearing interest from date on outstanding balances at eight
and three quarters per cent (8.375%) per annum*. Said principal and interest
being payable in monthly installments as provided in said Note with a final
maturity of November 1, 2041 said Note is identified as being secured hereby by
a certificate thereon. Said Note and all of its terms are incorporated by
reference and this conveyance shall secure any and all extensions thereof,
however evidenced.

         Mortgagor desires to secure payment of the same and also secure the
performance of all convents and agreements herein contained, and in a building
loan agreement between the Mortgagor and the Mortgagee hereinafter mentioned;

         NOW, KNOW ALL MEN, that the Mortgagor, in consideration of the
aforesaid debt and for better securing the payment thereof to the Mortgagee, and
also in consideration of the further sum of Ten Dollars ($10) to the Mortgagor
in hand well and truly paid by the Mortgagee and before the sealing and delivery
of these presents, the receipt whereof is hereby acknowledged, has granted,
bargained, sold, and released, and by these presents does grant, bargain, sell,
and release unto the Mortgagee, its successors and assigns, the
following-described real estate situated in the City of Charleston, County of
Charleston State of South Carolina:

         For legal description, see Exhibit A attached hereto and incorporated
by referenced herein.

*Up to and including October 31, 2001 and at the rate of eight and
fifteen-hundredths per cent (8.15%) per annum thereafter

WARNING: This Property subject to Declaration of Restrictive Covenants Recorded
in the Office of the R.M.C. for Charleston County, South Carolina on April 19,
2000 at 4:59 p.m. as amended by Amendment to Declaration of Restrictive
Covenants Dated April 19, 2000. Recorded in the RMC Office for Charleston
County in Book ____ at Page___.

<PAGE>   2

TOGETHER WITH all buildings and improvements thereon and all and singular the
tenements, hereditaments, and appurtenances thereunto belonging, or in anywise
appertaining, and including all after-acquired title, franchise, licenses, or
easements; and together with all right, title and interest of the Mortgagor from
time to time in and to all heating, lighting, plumbing, cooking, incinerating,
ventilating, air-conditioning, laundry and refrigerating equipment; all
elevators and motors, cabinets, engines and machinery, sprinkler systems; and
storm and screen doors, screens, awnings window shade, and floor coverings; and
all other property now or hereafter owned by Mortgagor, or any successor in
title, and attached to or used in connection with the real estate hereinabove
described; and together with all building materials and equipment located on the
premises and intended to be incorporated in the buildings or other improvements;
AND ALSO all furnishings and articles on personal property now or hereinafter
attached to or in and about the building or buildings now erected or hereafter
to be erected on the lands herein described which are necessary to the complete
and comfortable use and occupancy of such buildings or buildings for the
purposes for which they were or are to be erected, including all goods, chattels
and personal property as are ever used or furnished in operating a building, or
the activities conducted therein, similar to the one herein described and
referred to, and all renewals or replacement thereof or articles in substitution
therefore, whether or not the same are, or shall be, attached to said buildings
or buildings in any manner.

         It is hereby mutually agreed between the parties hereto that all the
foregoing property shall to the extent permitted by law be deemed to be affixed
to the real property.

         TO HAVE AND TO HOLD, all and singular the said premises unto the
Mortgagee, its successors and assigns forever.

         THE MORTGAGOR HEREBY COVENANTS AND AGREES WITH THE MORTGAGEE:

1.       That it is lawfully seized of the premises hereinabove described in fee
         simple absolute, that it has good right and lawful authority to sell,
         convey or encumber the same, and that the premises are free and clear
         of all liens and encumbrances whatsoever.* The Mortgagor further
         covenants to warrant and forever defend all and singular the premises
         unto the Mortgagee, from and against the Mortgagor and all persons
         whomsoever lawfully claiming the same or any part hereof:

2.       That Mortgagor will pay the Note at the times and in the manner
         provided therein:

3.       That Mortgagor will not permit or suffer the use of any of the property
         for any purpose other than the use for which the same was intended at
         the time this Mortgage was executed.

4.       That the Regulatory Agreement, if any, executed by the Mortgagor and
         the Secretary of Housing and Urban Development, acting by and through
         the Federal Housing Commissioner, which is being recorded
         simultaneously herewith, is incorporated in and made a part of this
         mortgage. Upon default under the Regulatory Agreement and upon the
         request of the Secretary of Housing and Urban Development, acting by
         and through the Federal Housing Commissioner, the Mortgagee, at its
         option, may declare the whole of the indebtedness secured hereby to be
         due and payable;

5.       That all rents, profits and income from the property covered by this
         mortgage are hereby assigned to the Mortgagee for the purpose of
         discharging the debt hereby secured. Permission is hereby given to
         Mortgagor so long as no default exists hereunder, to collect such
         rents, profits and income for use in accordance with the provisions of
         the Regulatory Agreement;

6.       That upon default hereunder Mortgagee shall be entitled to the
         appointment of a receiver by any court having jurisdiction without
         notice, to take possession and protect the property described herein
         and operate same and collect the rents, profits and income therefrom;

7.       That at the option of the Mortgagor the principal balance secured
         hereby may be reamortized on terms acceptable to the Secretary of
         Housing and Urban Development, acting by and through the Federal
         Housing Commissioner a partial prepayment results from an award in
         condemnation in accordance with provisions of Paragraph 8 herein, where
         there is a resulting loss project income;

8.       That the Mortgagor will keep the improvements now existing or hereafter
         erected on the mortgaged property insured against loss by fire and such
         other hazards, casualties, and contingencies, as may be stipulated by
         the Secretary of Housing and Urban Development, acting by and through
         the Federal Housing Commissioner upon the insurance of the mortgage and
         other hazards as may be required from time to time by the Mortgagee,
         and all such insurance shall be evidenced by standard Fire and Extended
         Coverage Insurance Policy or policies, in amounts not less than
         necessary to comply with the applicable Coinsurance Clause percentage,
         but in no event shall the amounts of coverage be less than 80% of the
         Insurable Values or not less than the unpaid balance of the insured
         mortgage, whichever is the lesser, and in default thereof the Mortgagee
         shall have the right to effect

<PAGE>   3

         insurance. Such policies shall be endorsed with standard Mortgagee
         clause with loss payable to the Mortgagee and the Secretary of Housing
         and Urban Development as interest may appear, and shall be deposited
         with the Mortgagee; Mortgagor shall select the insurance carrier
         providing such insurance, subject to Mortgagee approval, which approval
         shall not be unreasonably withheld. That if the premises covered
         hereby, or any part thereof, shall be damaged by fire or other hazard
         against which insurance is held as hereinabove provided, the amounts
         paid by any insurance company in pursuance of the contract of insurance
         to the extent of the indebtedness then remaining unpaid, shall be paid
         to the Mortgagee, and, at its option, may be applied to the debt or
         released for repairing or rebuilding of the premises.

         *Other than as set forth on Schedule B-1 of the policy of title
         insurance delivered to Mortgagor in connection with the loan underlying
         this Mortgage.

9.       That all awards of damages in connection with any condemnation for
         public use of or injury to any of said property, shall be paid to the
         mortgagee to be applied to the amount due under the Note secured hereby
         in (1) amounts equal to the next maturing installment or installments
         of principal and (2) with any balance to be credited to the next
         payment due under the Note, No amount applied to the reduction of the
         principal amount due in accordance with (1) shall be considered an
         option prepayment as the term is used in this Mortgage and the Note
         secured hereby, nor relieve the mortgagor from making regular monthly
         payments, commencing on the first month following the date of receipt
         of the awards. The holder of the Note is hereby authorized in the name
         of the mortgagor to execute and deliver valid acceptances for such
         awards and to appeal from such awards.

10.      That in order more fully to protect the security of this Mortgage, the
         Mortgagor will pay to the Mortgagee in addition to the monthly payments
         of interest or of principal and interest under the terms of the Note
         secured hereby and concurrently therewith monthly on the first day of
         each month after the date hereof and continuing until the said Note is
         fully paid the following sums:

         (a)      An amount sufficient to provide the Mortgagee with funds to
                  pay the next mortgage insurance premium if this instrument and
                  the Note secured hereby are insured, or a monthly service
                  charge, if they are held by the Secretary of Housing and Urban
                  Development, as follows:

                  (I).     If and so long as said Note of even date and this
                           instrument are insured or are reinsured under the
                           provisions of the National Housing Act, an amount
                           sufficient to accumulate in the hands of the
                           Mortgagee one month prior to its due date the annual
                           mortgage insurance premium, in order to provide such
                           Mortgagee with funds to pay such premium to the
                           Secretary of Housing and Urban Development pursuant
                           to the National Housing Act, as amended, and
                           applicable Regulations thereunder, or

                  (II).    If and so long as said Note of even date and this
                           instrument are held by the Secretary of Housing and
                           Urban Development a monthly service charge in an
                           amount equal to 1/12 or 1/2% of the average
                           outstanding principal balance due on the Note
                           computed for each successive year beginning with the
                           first day of the month following the date of this
                           instrument, if the Secretary of Housing and Urban
                           Development is the mortgagee (beneficiary) named
                           herein, or the first day of the month following
                           assignment, if the Note and this instrument are
                           assigned if the Note and this instrument are assigned
                           to the Secretary of Housing and Urban Development,
                           without taking into account delinquencies or
                           prepayment;

         (b)      A sum equal to the ground rents, if any, next due, plus the
                  premiums that will next become due and payable on policies of
                  fire and other property insurance covering the premises
                  covered hereby, plus water rates, taxes and assessments next
                  due on the premises covered hereby (all as estimated by the
                  Mortgagee) less all sums already paid therefor divided by the
                  number of months to elapse before one month prior to the date
                  when such ground rents, premiums, water rates, taxes and
                  assessments will become delinquent, such sums to be held by
                  Mortgagee in trust to pay said ground rents, premiums, water
                  rates, taxes and special assessments;

         (c)      All payments mentioned in the two preceding subsections of
                  this paragraph and all payments to be made under the Notes
                  secured hereby shall be added together and the aggregate
                  amount thereof shall be paid each month in a single payment to
                  be applied by Mortgagee to the following items in the order
                  set forth:

                  (I)      Premium charges under the contract of Insurance with
                           the Secretary of Housing and Urban Development acting
                           by and through the Federal Housing Commissioner or
                           service charge;

                  (II)     Ground rents, taxes, special assessments, water
                           rates, fire and other property insurance premiums;

                  (III)    Interest on the Note secured hereby:

                  (IV)     Amortization of the principal of said Note;

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11.      In the event the Mortgagor fails to pay sums provided for in this
         Mortgage, the Mortgagee, at its option, may pay the same. Any excess
         funds accumulated under (b) of the preceding paragraph remaining after
         payment of the item therein mentioned, shall be credited to subsequent
         monthly payments of the same nature required thereunder; but if any
         such item shall exceed the estimate therefor, or if the Mortgagor shall
         fail to pay any other governmental or municipal charge, the Mortgagor
         shall forthwith make good the deficiency or pay the charge before the
         same become delinquent or subject to interest of penalties and in
         default thereof the Mortgagee may pay the same.

All sums paid by the Mortgagee and any sums which the Mortgagee may be required
to advance to pay mortgage insurance premiums shall be added to the principal of
the debt secured hereby and shall bear interest from the date of payment at the
rate specified in the Note and shall be due and payable on demand. In case of
termination of the Contract of Mortgage Insurance by prepayment of the Mortgage
in full, or otherwise (except as hereinafter provided), accumulations under (a)
of the preceding paragraph hereof not required to meet payments due under the
Contract of Mortgage Insurance, shall be credited to the Mortgagor. If the
property is sold under foreclosure or is otherwise acquired by the Mortgagee
after default, any remaining balance of the accumulations under (b) of the
preceding paragraph shall be credited to the principal of the Mortgage as of the
date of the commencement of foreclosure proceedings or as of the date the
property is otherwise acquired; and accumulations under (a) thereof shall be
likewise credited unless required to pay sums due the Secretary of Housing and
Urban Development, acting by and through the Federal Housing Commissioner under
the contract of Mortgage Insurance;

12.      That the Mortgagor will pay all ground rents, if any, taxes,
         assessments, water rates, and other governmental or municipal charges
         or impositions to the extent provision therefor has not been made by
         monthly payments as hereinbefore provided before the same become
         delinquent or subject to interest or penalties, and in default thereof
         the Mortgagee may pay the same. All such sums so paid by the Mortgagee
         plus any sums which the Mortgagee has advanced to pay mortgage
         insurance premiums or life and other hazard insurance premiums not
         provided for by monthly payments hereunder shall be added to the
         principal of this Mortgage, shall bear interest at the rate specified
         in the Note from the date of the advance and shall be due and payable
         to the Mortgagee upon demand:

13.      That if the Mortgagee is made or becomes party to any suit or action,
         by reason of this Mortgage or the Indebtedness hereby secured, the
         Mortgagor will pay all expenses incurred by the Mortgagee therein,
         including a reasonable attorney's fee;

14.      That if the Mortgagor shall assign or attempt to assign the rents,
         issues, or profits or any part thereof of the premises mortgaged hereby
         without the written consent of the Mortgagee, or in case of the actual
         or threatened demolition or removal of any building on or to be erected
         upon said premises, then, at the option of the Mortgagee, the debt
         hereby secured shall immediately become due;

15.      That if it default in any of the covenants or agreements contained
         herein, or in said Note, then the Mortgagee may perform the same, and
         all expenditures made by the Mortgagee, in so doing shall draw interest
         at the rate specified in the Note, and shall be repayable by the
         Mortgagor to the Mortgagee, and, together with interest and costs
         accruing thereon, shall be secured by this Mortgage;

16.      That the Mortgagor will not voluntarily create or permit to be created
         against the property subject to this mortgage any lien or liens
         inferior or superior to the lien of this Mortgage and further that it
         will keep and maintain the same free from the claim of all persons
         supplying labor or materials which will enter into the construction of
         any and all buildings now being erected or to be erected on said
         premises and on the failure of the Mortgagor to perform these
         covenants, or any part thereof, thereupon the principal and all arrears
         of interest shall, at the option of the Mortgagee, or any holder of the
         Note secured by this Mortgage, become due and payable, anything
         contained herein to the contrary notwithstanding;

17.      That the improvements about to be made upon the premises above
         described and all plans and specifications comply with all municipal
         ordinances and regulations made or promulgated by lawful authority; and
         that the same will upon completion comply with all such municipal
         ordinances and regulations and with the rules of the fire rating or
         inspection organizations, bureau association or office which are now or
         may hereafter become applicable to the premises above described;

18.      That Mortgagor will not commit, permit, or suffer waste, impairment, or
         deterioration of said property or any part thereof, and in the event of
         the failure of the Mortgagor to keep the buildings on said premises and
         those to be erected on said premises, or improvements thereon, in good
         repair, the Mortgagee may make such repair as in its discretion it may
         deem necessary for the proper preservation thereof, and any sums paid
         for such repair shall bear interest from the date of payment at the
         rate specified in the Note, shall be due and payable on demand and
         shall be fully secured by this Mortgage;

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19.      That so long as this Mortgage and the said Note secured hereby are
         insured or held under the provisions of the National Housing Act, it
         will not execute or file for record any instrument which imposes a
         restriction upon the sale of occupancy of the mortgaged property on the
         bases of race, color or creed;

20.      That the funds to be advanced herein are to be used in the construction
         of certain improvements on the lands herein described, in accordance
         with a building loan agreement between the Mortgagor and Mortgagee,
         dated as of even date which building loan agreement (except such part
         of parts thereof as may be inconsistent herewith) is incorporated
         herein by reference to the same extent and effect as if fully set forth
         and made a part of this Mortgage; and if the construction of the
         improvements to be made pursuant to said building loan agreement shall
         not be carried on with reasonable diligence, or shall be discontinued
         at any time for reason other than strikes or lock-outs, the Mortgagee,
         after due notice to the Mortgagor or any subsequent owner, is hereby
         invested with full and complete authority to enter upon the said
         premises, employ watchmen to protect such improvements from depredation
         or injury and to preserve and protect the personal property therein,
         and to continue any and all outstanding contracts for the erection and
         completion of said building or buildings, to make and enter in to any
         contracts and obligations wherever necessary, either in its own name or
         in the name of the Mortgagor, and to pay and discharge all debts,
         obligations, and liabilities incurred thereby. All such sums so
         advanced by the Mortgagee (exclusive of advances of the principal of
         the indebtedness secured hereby) shall be added to the principal of the
         indebtedness secured hereby and shall be secured by this Mortgage and
         shall be due and payable on demand with interest at the rate specified
         in the Note, but no such advances shall be insured unless same are
         specifically approved by the Secretary of Housing and Urban Development
         acting by and through the Federal Housing Commissioner prior to the
         making thereof. The principal sum and all other charges provided for
         herein shall, at the option of the Mortgagee or holder of this mortgage
         and the Note secured hereby, become due and payable on the failure of
         the Mortgagor to keep and perform any of the covenants, conditions, and
         agreements of said building loan agreement. This covenant shall be
         terminated upon the completion of the improvements to the satisfaction
         of the Mortgagee and the making of the final advance as provided in
         said building loan agreement;

21.      That in the event of default in making any monthly payment provided for
         herein or in the Note secured hereby, and if such default is not made
         good prior to the due date of the next such installment or in the event
         of a breach of any other stipulation, agreement, condition and covenant
         to the Mortgagor, then in any such event, the whole principal sum of
         said Note shall, at the option of the Mortgagee, be deemed to have
         become immediately due, and the same with interest thereon and with all
         other costs and charges, shall thereupon be collectible by foreclosure
         of the Mortgage, and any failure to exercise said option shall not
         constitute a waiver of the right to exercise the same at any other
         time;

22.      That the rights and remedies provided for herein shall be held to be in
         addition to and not in limitation of those provided by law;

23.      It is agreed that the Mortgagor shall hold and enjoy the premises above
         conveyed until there is default under this mortgage or in the Note
         secured hereby. It is the true meaning of this instrument that if the
         Mortgagor shall fully perform, all the terms, conditions, covenants of
         this Mortgage, and of the Note secured hereby, that then this Mortgage
         shall be utterly null and void; otherwise to remain in full force and
         virtue. If there is default in any of the terms, conditions, or
         covenants of this Mortgage or of the Note secured hereby, this Mortgage
         may be foreclosed. The Mortgagor waives the Benefit of any appraisement
         laws of the State of South Carolina. Should any legal proceedings be
         instituted for the foreclosure of this Mortgage, or should the
         Mortgagee become a party to any suit involving this Mortgage or the
         title to the premises described herein, or should the debt secured
         hereby or any part thereof be placed in the hands of any attorney at
         law for collection by suit or otherwise, all costs and expenses
         (including continuation of abstract) incurred by the Mortgagee, and a
         reasonable attorney's fee, shall thereupon become due and payable
         immediately or on demand, at the option of the Mortgagee, as a part of
         the debt secured hereby, and may be recovered and collected hereunder;

24.      In case of the foreclosure and sale of the mortgaged premises, said
         premises may be sold in one parcel. If the proceeds of the sale should
         be insufficient to pay all costs and expenses of the sale, attorney's
         fees and all charges, and the principal and interest on the debt
         secured hereby, including any and all advances made hereunder by or for
         the account of the Mortgagee, the Mortgagee shall be entitled to a
         judgement for the deficiency.

25.      This Mortgage has been executed by authority of the General Partner of
         the Mortgagor.

26.      That no waiver of any covenant herein or of the Note secured hereby
         shall at any time thereafter be held to be a waiver of terms hereof or
         of the Note secured hereby;

27.      This Mortgage and every covenant and agreement therein contained shall
         be binding upon and inure to the benefit of the Mortgagor and the
         Mortgagee and their respective successors and assigns, and to the
         extent permitted by law shall bind every subsequent owner of the
         mortgaged premises;
<PAGE>   6

28.      Not withstanding any other provision contained herein or in the Note,
         it is agreed that the execution of the Note shall impose no personal
         liability upon the Mortgagor for payment of the indebtedness evidenced
         thereby and in the event of a default, the holder of the Note shall
         look solely to the property subject to this Mortgage and Security
         Agreements executed by Mortgagor in connection herewith and to the
         rents, issues and profits thereof in satisfaction of the indebtedness
         evidenced by the Note and will not seek or obtain any deficiency or
         personal judgment against the mortgagor except such judgment or decree
         as may be necessary to foreclose or bar its interest in the property
         subject to this Mortgage and all other property mortgaged, pledged,
         conveyed or assigned to secure payment of the Note; provided that
         nothing in this condition and no action so taken shall operate to
         impair any obligation of the maker under the Regulatory Agreement
         herein referred to and made a part hereof.

Wherever used, the singular number shall include the plural, the plural the
singular, and the use of any gender shall be applicable to all genders.
--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Mortgagor has caused this instrument to be duly executed
in its behalf by its general partner on the 19th day of April, 2000.

                                             ML James Island Apartments, L.P.

                                             By: Merry Land Properties, Inc.,
                                                --------------------------------
                                                 General Partner

                                             By: /s/ DORRIE E. GREEN
                                                 -------------------------------
                                                 Dorrie E. Green, Vice President

         Signed, and delivered in the presence of:

         /s/ LINDA C. DICKS
         --------------------------
         Witness:

         /s/ SUSAN D. BARRETT
         --------------------------
         Witness:
--------------------------------------------------------------------------------
STATE OF GEORGIA
COUNTY OF RICHMOND

PROBATE

         Personally appeared before me the undersigned witness, who, being duly
sworn, says that she saw the within named ML JAMES ISLAND APARTMENTS, L.P., a
Georgia limited partnership, by Dorrie E. Green, Vice President of its sole
general partner, sign the within Mortgage, and as said limited partnership's act
and deed, deliver the same, and that she, with the other witness, witnessed the
execution thereof for the purposes therein expressed.

                                                 /s/ LINDA C. DICKS
                                                 -------------------------------
                                                 Linda C. Dicks
Sworn to before me this 19th
Day of April, 2000

/s/ SUSAN D. BARRETT
----------------------------
Notary Public for the state of Richmond County, Georgia
My Commission Expires: May 6, 2000

<PAGE>   7

STATE OF SOUTH CAROLINA
Loan No. 054-35614

MORTGAGE

ML James Island Apartments, L.P.
A Georgia Limited Partnership

TO

Continental Wingate Associates, Inc.,

Received and properly indexed in

And recorded in Book____  Page ____

_________ County, S.C.

-----------------------------------
             Clerk

<PAGE>   8

                                    Exhibit A

         All that certain piece parcel or lot of land, lying and being in
Charleston County, South Carolina. Located on the northern side of the James
Island Connector, being more fully shown on a survey titled "ALTA/ASCM Land
Survey Title Survey Showing TMS No. 340-00-00-066 13095 Acres (607,662SF) 12.23
acres (532,739 SF) Above the OCRM Critical Line, Prepared for Merry Land
Properties, Inc., A Georgia Corporation, ML James Island Apartments, L.P. a
Georgia limited partnership, Located in the City Charleston, South Carolina"
dated February 14, 2000, last revised April 14, 2000 recorded in the R.M.C.
Office for Charleston County, South Carolina in Plat Book ED at pages 953, 954,
and 955, and having the following metes and bounds to wit:

         BEGINNING at a point "A" on the eastern right-of-way of Martello Drive
located S26(degree)21'48"E-478.09' from the centerline of Martello Drive and
Harborview Road designated P.O.B. "A", thence running N75(degree)02'50"E along
the lands of Charles and Jeanne Wiggins a distance of 20.39' to a point "B",
thence running N74(degree)08'43"E along the lands of Martin Luther Evangelical
Lutheran Church a distance of 313.51' to a point "C", thence running
S80(degree)04'51"E along the lands of Linda N. OQuinn N88(degree)52'22"E, a
distance of 230.62' to a point "D", continue along the lands of Linda N. OQuinn
N88(degree)52'22"E, a distance of 143.20' to a point "E", thence running
N87(degree)55'42'E along the lands of Linda N. OQuinn, a distance of 77.22' to a
point "F", thence running N88(degree)28'29'E along the Lands of Elizabeth D.
Muller a distance of 149.29' to a point "G", thence running N86(degree)59'02"E,
along the lands of Beda S. Ludlow, a distance of 64.06' to a point "H", thence
running S89(degree)25'37"E, along the lands of Gordev Singh Mangat a distance of
44.32' to a point "I", continuing along the lands of Gordev Singh Mangat
N87(degree)38'19"E, a distance of 40.72' to a point "J", continue along the
lands of Gordev Singh Mangat N89(degree)00'01"E, a distance of 85.01'to a point
"K", thence turning and running S32(degree)28'41"E along the lands of American
Service Corp, S.C. Inc. a distance of 225.25' to a point "L", continue along the
lands of American Service Corp, Inc. S72(degree)10'02"E, a distance of 168.95'
to a point "M", said point being on the northern right-of-way of the St James
Island Connector, thence turning and running S59(degree)39'19"W along the
northern right-of-way of the James Island Connector, a distance of 134.03' to a
point "S", thence turning and running N64(degree)56'47"W along the lands of Ivey
H. Joyner a distance of 187.94' to a point "T", continue along the lands of Ivey
H. Joyner S36(degree)32'25"W, a distance of 140.01' to a point "U", continue
along the lands of Ivey H. Joyner S21(degree)02'33"E a distance of 101.06' to a
point "V", said point being on the northern right-of-way of the James Island
Connector, thence turning and running S60(degree)05'25"W along the northern side
of the James Island Connector, a distance of 60.15' to a point "W", continue
along the northern right of way of the James Island Connector
S59(degree)33'05"W, a distance of 254.82' to a point "X", continue along the
northern side of the James Island Connector counterclockwise along a curve
having a radius of 2989.83, and arc of 350.97' and a chord of
S56(degree)13;41"W-350.77' to a point "Y", thence turning and running along the
lands of Merry Land and Investment Company (A.K.A. Parcel 8A)
N27(degree)37'29"W, a distance of 36.11' to a point "Z", continue along the
lands of Merry Land and Investment Company N37(degree)56'12"W, a distance of
9.03' to a point "AA", continue along the lands of Merry Land and Investment
Company N83(degree)50'29"W, a distance of 40.27', to a point "BB", continue
along the lands of Merry Land and Investment Company N05(degree)47'17"E, a
distance of 41.10' to a point "CC", continue along the lands of Merry Land and
Investment Company N18(degree)03'37"W, a distance of 113.75' to a point "DD",
continue along the lands of Merry Land and Investment Company
N22(degree)27'33"E, a distance of 30.74' to a point "EE", continue along the
lands.<PAGE>   1
                                                                  EXHIBIT 4.2(b)

FHA Form No. 4175-D

                                  MORTGAGE NOTE

$16,220,300.00                                         Columbia, South Carolina.
                                                                 April 19, 2000.

         FOR VALUE RECEIVED, the undersigned promise(s) to pay Continental
Wingate Associates, Inc. the principal sum of Sixteen Million Two Hundred Twenty
Thousand Three Hundred and No/100 Dollars ($16,220,300.00) with interest from
date at the rate of eight and three eighths per centum (8.375%) per annum on the
unpaid balance up to and including October 31, 2001 and thereafter at the rate
of eight and fifteen hundredths per centum (8.15%) per annum on the unpaid
balance until paid. The said principal and interest shall be payable at the
office of Continental Wingate Associates, Inc. 63 Kendrick Street in Needham,
Massachusetts 02494 or at such other place as the holder may designate in
writing, as follows:

         Interest only payable on the first day of May, 2000, and on the first
         day of each month thereafter, up to and including the first day of
         November, 2001. Commencing on the first day of December, 2001, monthly
         installments of interest and principal shall be paid in the sum of One
         Hundred Fourteen Thousand Six Hundred Eleven and 37/100 Dollars
         (114,611.37) each, such payments to continue monthly thereafter on the
         first day of each succeeding month until the entire indebtedness has
         been paid. In any event, the balance of the principal, if any remaining
         unpaid, plus accrued interest shall be due and payable on November 1,
         2041. The installments of interest and principal shall be applied first
         to interest at the rate of eight and fifteen-hundredths percent (8.15%)
         per annum upon the principal sum or so much thereof as shall from time
         to time remain unpaid and the balance thereof shall be applied on
         account of principal.

         See Rider to Mortgage Note attached hereto and incorporated by
         reference herein.

If this debt is paid in full while, insured under the provisions of the National
Housing Act, as amended, all parties liable for payment thereof agree to be
jointly and severally bound to pay to the holder hereof such adjusted mortgage
insurance premium as may be required by the applicable Regulations.

         If default be made in the payment of any installment under this Note,
and if such default is not made good prior to the due date of the next such
installment, the entire principal sum and accrued interest shall at once become
due and payable without notice, at the option of the holder of this Note.
Failure to exercise this option shall not constitute a waiver of the right to
exercise the same in the event of any subsequent default. In the event of
default in the payment of this Note, and if the same is collected by an attorney
at law, the undersigned hereby agree(s) to pay all costs of collection,
including a reasonable attorney's fee.

         All parties to this Note, whether principal, surety, guarantor or
endorser, hereby waive presentment for payment, demand, protest, notice of
protest and notice of dishonor.

         Not withstanding any other provision contained in the Note, it is
agreed that the execution of the Note shall impose no personal liability on the
maker hereof for payment of the indebtedness evidenced hereby and in the event
of a default, the holder of this Note shall look solely to the property
described in the Mortgage and Security Agreement executed by Mortgagor in
connection herewith and to the rents, issues and profits thereof in satisfaction
of the Indebtedness evidenced hereby and will not seek or obtain any deficiency
or personal judgment against the maker hereof except such judgment or decree as
may be necessary to foreclose and bar its Interest in the property and all other
property mortgaged, pledged, conveyed or assigned to secure payment of this Note
except as set out in the Mortgage of even date given to secure this
Indebtedness.

IN WITNESS WHEREOF, the undersigned has caused its name to be signed hereto by
its duly authorized officer and its corporate seal to be hereto affixed the day
and year first above written.

                                ML James Island Apartments, L.P.
                                ------------------------------------------------
                                By: Merry Land Properties, Inc., General Partner

                                By: /s/ /DORRIE E. GREEN
                                    --------------------------------------------
                                    Dorrie E. Green, Vice President

         THIS IS TO CERTIFY that this is the Note described in and secured by
Mortgage of even date herewith and in the same principal amount as herein stated
and secured by real estate situated in the City of Charleston, Charleston
County, State of South Carolina.

Dated: April 19, 2000                        /s/ LINDA C. DICKS
                                             -----------------------------------
                                             Linda C. Dicks, Notary Public
                                             Columbia County, Georgia
                                             My Commission Expires: May 28, 2000

<PAGE>   2

                             STATE OF SOUTH CAROLINA

                               LOAN NO. 054-35614

                                  MORTGAGE NOTE

ML James Island Apartments, L.P.

TO

Continental Wingate Associates, Inc.

No.    054-35614

Insured under S221 (d) (4) of the National Housing Act and Regulations Published
thereunder in effect on February 16, 2000 to the extent of advances approved by
the Secretary of Housing and Urban Development acting by and through the Federal
Housing Commissioner.

By:
   -------------------------------------
             Authorized Agent

Date:
     -----------------------------------

A total sum of $___________________________ has been approved for insurance
hereunder by the Secretary of Housing and Urban Development acting by and
through the Federal Housing Commissioner.

By:
   -------------------------------------
             Authorized Agent

Date:
     -----------------------------------

--------------------------------------------------------------------------------
     Reference is made to the Act and to the Regulations thereunder covering
              Assignments of the insurance protection on this note.
--------------------------------------------------------------------------------
    7649-P Rev. 5/70                                     HUD-Wash, D.C.

<PAGE>   3

                             RIDER TO MORTGAGE NOTE

This Rider to Mortgage Note (this "Rider") is attached to and made a part of the
Mortgage Note (the "Note") from ML JAMES ISLAND APARTMENTS, L.P., a Georgia
limited partnership (the "Maker"), to CONTINENTAL WINGATE ASSOCIATES, INC., a
Massachusetts corporation, dated April 19, 2000.

1. Prepayment:

(a)      Maker shall not have the right to prepay the indebtedness evidenced
hereby in whole or in part at any time prior to December 1, 2006. Maker shall
have the right, on or after December 1, 2006 to prepay the indebtedness
evidenced hereby in whole or in part on the last day of any calendar month after
such date during the term hereof upon at least thirty (30) days prior written
notice to the holder of this Note, which notice shall specify the date on which
the prepayment is to be made, the principal amount of such prepayment and the
total amount to be paid. In the event of any prepayment of principal at any time
on or after December 1, 2006,the Maker shall concurrently pay to the holder of
this Note (i) interest on the amount prepaid through and including the last day
of the month in which the prepayment is made and (ii) a prepayment premium equal
to the following designated percentages of the amount of the principal of the
Note to be so prepaid with respect to any prepayment which occurs during the
following indicated time periods:

<TABLE>
<CAPTION>
         Time of Prepayment                                   Prepayment Premium
         ------------------                                   ------------------
         <S>                                                  <C>
         From December 1, 2006 through November 30, 2007              5.0%
         From December 1, 2007 through November 30, 2008              4.0%
         From December 1, 2008 through November 30, 2009              3.0%
         From December 1, 2009 through November 30, 2010              2.0%
         From December 1, 2010 through November 30, 2011              1.0%
         From December 1, 2011 and thereafter                         0.0%
</TABLE>

         Notwithstanding any partial prepayment of principal made pursuant to
the privilege of prepayment set forth in this Note, the Maker shall not be
relieved of its obligations to make scheduled monthly installments of principal
and interest as and when such payments are due and payable under this Note.

(b)      Notwithstanding any prepayment prohibition imposed and/or premium
required by this Note with respect to prepayments made prior to December 1,
2010, the indebtedness evidenced by this Note may be prepaid in whole or in part
without the consent of the holder of this Note and without prepayment premium if
the Federal Housing Commissioner (the "Commissioner") determines that prepayment
will avoid a mortgage insurance claim and is therefore in the best interests of
the Federal Government.

(c)      Notwithstanding the provisions of Paragraph 1(a) above, the provisions
of Paragraph 1(a) shall not apply, and no prepayment premium shall be collected
by the holder of this Note, with respect to any prepayment which is made by or
on behalf of the Maker from insurance proceeds as a result of damage to the
mortgaged premises or condemnation awards which, at the option of the holder of
this Note, may be applied to reduce the indebtedness of maker evidenced hereby
pursuant to the terms and provisions of the Mortgage (the "Mortgage") of even
date given by Maker to the holder of the Note to secure said indebtedness. Any
prepayment made pursuant to this Paragraph 1(c) shall be deemed to have been
made on the last day of the month in which such payment is received by holder.

(d)      Notwithstanding the provisions of Paragraph 1(a) above, the provisions
of Paragraph 1(a) shall not apply, and no prepayment premium shall be collected
by the holder of this Note, in the

<PAGE>   4

event that the maximum principal amount of this Note is reduced (or a partial
prepayment is made) solely as the result of a mortgage reduction (or a partial
prepayment) required by the Commissioner based upon any cost certification or
other report required to be provided by the Maker to the Commissioner subsequent
to the date hereof. Any prepayment made pursuant to this Paragraph 1(d) shall be
deemed to have been made on the last day of the month in which such payment is
received by holder.

2. Late Charges.

         In the event any installment or part of any installment due under this
Note becomes delinquent for more than fifteen (15) days, there shall be due, at
the option of the holder of this Note, in addition to other sums due hereunder,
a late charge in an amount equal to two percent (2%) of the amount of principal
and/or interest so delinquent. Whenever, under the law of the jurisdiction where
the property is located, the amount of any such late charge is considered to be
additional interest, this provision shall not be effective if the rate of
interest specified in this Note, together with the amount of the late charge,
would aggregate an amount in excess of the maximum rate of interest permitted
and would constitute usury.

Method of Payment.

         All payments to reduce the principal balance hereunder, other than
regularly scheduled payments of principal, and all late charges and other
amounts required to be paid hereunder, other than regularly scheduled
installments of interest, shall be made to the holder of this Note in
immediately available Federal Funds. Payments received after 2:00 p.m. Eastern
time will be deemed to have been received on the next following business day.

         IN WITNESS WHEREOF, the undersigned Maker has executed this Rider as of
         the date first above written.

                               MAKER:

                               ML JAMES ISLAND APARTMENTS, L.P.,
                               A Georgia limited partnership

                               By:  Merry Land Properties, Inc., General Partner

                               By:   /s/ DORRIE E. GREEN
                                   -------------------------------
                                   Dorrie E. Green, Vice President

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