Document:

PURCHASE AGREEMENT
                      10401 SE Highway 441
                          Belleview, FL

This  AGREEMENT, entered into effective as of the 27th of  April,
2000.

l.  PARTIES.  Seller  is  AEI  Real  Estate  Fund  XVIII  Limited
Partnership ("Seller").  Seller holds an undivided 100%  interest
in  the fee title to that certain real property legally described
in  the  attached Exhibit "A" (the "Property").   Buyer  is  Paul
D'Alto,  Trustee, and/or its assigns ("Buyer"). Seller wishes  to
sell and Buyer wishes to buy the Property.

2. PROPERTY. The Property to be sold to Buyer in this transaction
is  legally described on Exhibit "A" attached hereto, subject  to
all easements, covenants, conditions, restrictions and agreements
of  record  that do not affect marketability of title ("Permitted
Exceptions"), subject to the provisions of Buyer review of  title
as set forth below in paragraph 8.

3.  PURCHASE  PRICE.  The purchase price  for  this  Property  is
$740,000 cash based on the following terms:

4.  TERMS.  The purchase price for the Property will be  paid  by
Buyer as follows:

     (a)  When this agreement is executed, Buyer will pay $10,000
     in  cash  or  good  funds  (the "First  Payment")  to  First
     American  Title Insurance Company, Attn: Belinda Stephenson,
     216  NE  First  Avenue, Ocala, FL 34470  ("Escrowee").   The
     First  Payment  will be credited against the purchase  price
     when  and  if  escrow closes and the sale is  completed,  or
     otherwise disbursed pursuant to the terms of this Agreement.
     After  the  expiration of the Review Period  as  defined  in
     paragraph 6 below, the First Payment held for the account of
     Seller shall become non-refundable.

      (b)  Buyer will pay the balance of purchase price  for  the
Property,  $730,000  in  cash or       good  funds  (the  "Second
Payment"),  at  closing  to  the Escrowee  who  shall  close  the
transaction according to the terms hereof.

5.  CLOSING DATE.  Escrow shall close on or before the  thirtieth
day  after  the  Inspection  and  Feasibility  Study  Period   is
completed.

6.  DUE  DILIGENCE. Buyer will have until the expiration  of  the
ninetieth  day  after  delivery of the  signed  "Agreement"  (the
"Inspection and Feasibility Study Period"), to conduct all of its
inspections and due diligence and satisfy itself regarding  title
to  the  Property, and to inspect the Property. Buyer  agrees  to
indemnify  and  hold  harmless for any  loss  or  damage  to  the
Property or persons caused by Buyer or its agents arising out  of
such  physical  inspections  of  the  Property.  Buyer  expressly
acknowledges that the sale of the Property as provided for herein
is  made  on  an "AS IS" basis, and such provision shall  survive
closing.

     Buyer  may cancel this agreement for ANY REASON in its  sole
discretion by delivering a cancellation notice by certified mail,
return  receipt requested, or by personal delivery to Seller  and
escrow  holder  before  the  expiration  of  the  Inspection  and
Feasibility  Study  Period or Inspection  Period  as  defined  in
Section  16.  Such  notice shall be deemed  effective  only  upon
receipt by Seller. If this Agreement is not canceled as set forth
herein,  the First Payment shall be non-refundable unless  Seller
shall default hereunder.

     If  Buyer  cancels  this Agreement as permitted  under  this
Section  or  Section  16, except for any title  insurance  and/or
escrow  cancellation fees of the escrowee which will be  paid  by
the  Buyer,  and  any liabilities under sections  15(a)(iii)  and
16(b)  of  this  Agreement  (which will  survive),  Buyer  (after
execution  of  such documents reasonably requested by  Seller  to
evidence  the  termination hereof) shall be  returned  its  First
Payment,  and  Buyer will have absolutely no  rights,  claims  or
interest  of  any  type in connection with the Property  or  this
transaction,  regardless  of any alleged  conduct  by  Seller  or
anyone else.

      Unless  Seller  shall  be  in  default  of  any  obligation
hereunder, or this Agreement is canceled by Buyer pursuant to the
terms  hereof, if Buyer fails to make the Second Payment,  Seller
shall   be  entitled  to  retain  the  First  Payment  and  Buyer
irrevocably  will be deemed to have canceled this  Agreement  and
relinquish  all rights in and to the Property. If this  Agreement
is not canceled and the Second Payment is made when required, all
of Buyer's conditions and contingencies will be deemed satisfied.

7.  ESCROW. Escrow shall be opened by Buyer and the First Payment
shall  be  deposited  by Buyer with Escrowee.   A  copy  of  this
Agreement  will be delivered to the escrow holder and will  serve
as escrow instructions together with the escrow holder's standard
instructions  and  any additional instructions  required  by  the
escrow  holder  to  clarify its rights and duties.   The  parties
agree  to sign these additional instructions of the Escrowee,  if
any.  If  there is any conflict between these other  instructions
and  this Agreement, this Agreement will control. Escrow will  be
opened upon acceptance of this Agreement by Seller.

8.  TITLE.  Closing will be conditioned on the  commitment  of  a
nationally recognized title company selected by Buyer to issue an
Owner's  policy  of title insurance, dated as  of  the  close  of
escrow,  in an amount equal to the purchase price, insuring  that
Buyer  will own marketable and insurable fee simple title to  the
Property subject only to: the Permitted Exceptions as defined  in
paragraph  2  above; current real property taxes and assessments;
and survey exceptions.

       Buyer  shall  be  allowed  until  the  expiration  of  the
"Inspection and Feasibility Study Period" for examination and the
making  of  any objections to marketability of title thereto,  or
that  an  exception to title adversely affects  the  use  of  the
Property, said objections to be made in writing or deemed waived.
If  any objections are so made, the Seller shall be allowed sixty
(60)   days  to  make  such  title  marketable  or  cure  Buyer's
objections,  or  in the alternative to obtain  a  commitment  for
insurable  title  insuring over Buyer's  objections.   If  Seller
shall  decide to make no efforts to make title marketable, or  is
unable to make title marketable or obtain insurable title, (after
execution  by  Buyer  of such documents reasonably  requested  by
Seller  to evidence the termination hereof) Buyer's First Payment
shall  be returned and this agreement shall be null and void  and
of no further force and effect.

     Pending correction of title, the payments hereunder required
shall  be postponed, but upon correction of title and within  ten
(10)  days  after written notice of correction to the Buyer,  the
parties shall perform this agreement according to its terms.

      If  Buyer shall make no written objection to Seller  within
the  Review Period setting forth Buyer's objections to the status
of  title, Buyer shall have been deemed to have waived  any  such
objections.

9.  CLOSING COSTS.  Seller will pay the deed stamp taxes, if any,
and  one-half of escrow fees attributable to the closing services
for  this transaction.  Seller shall pay for the cost of  issuing
the  title  commitment.  Seller will pay the cost  of  the  title
insurance  premium for an Owner's policy (if desired  by  Buyer).
Buyer  will pay all recording fees, one-half of the escrow  fees,
the  costs of an update to the Survey in Seller's possession  (if
an  update  is required by Buyer).  Each party will pay  its  own
attorneys' fees and costs to document and close this transaction.

10.  REAL  ESTATE  TAXES,  SPECIAL  ASSESSMENTS  AND  PRORATIONS.
Seller  represents  that to the best of its knowledge,  all  real
estate  taxes and assessments due and payable in all years  prior
to  the  year of Closing have been paid in full.  All real estate
taxes  and  special  assessments due and  payable  in  the  years
following the year in which closing occurs shall otherwise be the
responsibility of Buyer.  The parties acknowledge and agree  that
the  tenant of the property is responsible for payment  of  taxes
and has been submitting payments monthly to Seller to be held  in
a  tax  escrow account.  Funds in the tax escrow account will  be
turned  over  to  the  Buyer at closing and Buyer  will  then  be
responsible for all tax payments past, current and future.

11. SELLER'S REPRESENTATION AND AGREEMENTS.

     Seller represents and warrants as of this date that:

     (i)   The Property is subject to a Net Lease Agreement dated
     December 10, 1991.

     (ii)   It  is  not  aware  of  any  pending  litigation   or
     condemnation  proceedings against the Property  or  Seller's
     interest  in  the Property that have not been  disclosed  to
     Buyer.

     (iii)   It  is  not  aware of any contracts  affecting  this
     Property and potentially or actually binding on Buyer  after
     the closing date.

     (iv)  Seller  has  all  requisite  power  and  authority  to
     consummate  the  transaction contemplated by this  Agreement
     and  has by proper proceedings duly authorized the execution
     and  delivery of this Agreement and the consummation of  the
     transaction contemplated hereby.

12. DISCLOSURES.

     (a)   Seller  has  been an absentee landlord.  Consequently,
     Seller  has  little,  if  any,  knowledge  of  the  physical
     characteristics of the Property.

     Accordingly, except as otherwise specifically stated in  the
     Agreement,   Seller   hereby  specifically   disclaims   any
     warranty,  guaranty,  or representation,  oral  or  written,
     past,  present, or future of, as to, or concerning  (i)  the
     nature  and  condition of the Property,  including,  without
     limitation,   the   water,  soil,  and  geology,   and   the
     suitability  thereof and of the Property  for  any  and  all
     activities  and  uses  which  Buyer  may  elect  to  conduct
     thereon; (ii) except for the warranty of title contained  in
     the  Deed  to  be  delivered by Seller at the  closing,  the
     nature  and  extent of any right of way, lease,  possession,
     lien,  encumbrance,  license,  reservation,  condition,   or
     otherwise, and (iii) the compliance of the Property  or  its
     operation with any laws, ordinances, or regulations  of  any
     government or other body.

     (b)  This  Agreement is subject to an inspection contingency
     as  set  forth in Section 16.  Buyer acknowledges and agrees
     that  Buyer  is  not  relying  upon  any  representation  or
     warranties made by Seller or Seller's Agent.

     (c)   Buyer   acknowledges  that,  having  been  given   the
     opportunity to inspect the Property, Buyer is relying solely
     on  its  own  investigation of the Property and not  on  any
     information provided by Seller or to be provided  except  as
     set  forth  herein.  Buyer expressly acknowledges  that,  in
     consideration of the agreements of the Seller herein, except
     as  otherwise specified herein, Seller makes no Warranty  or
     representation, express or implied, or arising by  operation
     of  law,  including,  but not limited to,  any  warranty  or
     condition,  habitability,  tenantability,  suitability   for
     commercial  purposes,  merchantability,  profitability,   or
     fitness  for  a  particular  purpose,  in  respect  of   the
     Property.

     (d) BUYER AGREES THAT IT SHALL BE PURCHASING THE PROPERTY IN
     ITS  THEN PRESENT CONDITION, AS IS, WHERE IS, AND SELLER HAS
     NO  OBLIGATION  TO  CONSTRUCT  OR  REPAIR  ANY  IMPROVEMENTS
     THEREON, OR TO PERFORM ANY OTHER ACT REGARDING THE PROPERTY.
     WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER ALSO
     AGREES  THAT  SELLER  WILL HAVE NO LIABILITY  OF  ANY  TYPE,
     DIRECT OR INDIRECT, TO BUYER OR BUYER'S SUCCESSORS, ASSIGNS,
     LENDERS  OR  AFFILIATES IN CONNECTION  WITH  ANY  HAZARDOUS,
     TOXIC,   DANGEROUS,   FLAMMABLE,   EXPLOSIVE   OR   CHEMICAL
     SUBSTANCES OF ANY TYPE (WHETHER OR NOT DEFINED AS SUCH UNDER
     ANY  APPLICABLE LAWS) ON OR IN CONNECTION WITH THE  PROPERTY
     EITHER BEFORE OR AFTER THE CLOSING DATE.

     The provisions (a) through (d) shall survive closing.

13. CLOSING.

     (a) Before the closing date, Seller will deposit into escrow
     an  executed  limited  warranty deed  subject  to  Permitted
     Exceptions  conveying insurable title  of  the  Property  to
     Buyer.  At Closing, Seller shall deliver to Buyer a standard
     Seller's  Affidavit  regarding liens and  judgments,  to  be
     limited to the best of Seller's knowledge and belief.

     (b)  On or before the closing date, Buyer will deposit  into
     escrow:  the  balance  of the purchase price  when  required
     under  Section  4; any additional funds required  of  Buyer,
     (pursuant to this agreement or any other agreement  executed
     by  Buyer)  to  close escrow.  Both parties  will  sign  and
     deliver  to the escrow holder any other documents reasonably
     required by the escrow holder to close escrow.

      (c)  On  the  closing date, if escrow is in a  position  to
close,  the escrow holder will: record   the deed in the official
records  of the county where the Property is located;  cause  the
title       company   to  commit  to  issue  the  title   policy;
immediately deliver to Seller the portion of the  purchase  price
deposited  into  escrow by cashier's check or wire transfer (less
debits  and  prorations,  if  any); deliver to Seller and Buyer a
signed  counterpart of the escrow  holder's   certified   closing
statement and  take  all other actions necessary to close escrow.

14.  DEFAULTS.  If Buyer defaults, Buyer will forfeit all  rights
and  claims  and  Seller will be relieved of all obligations  and
will  be  entitled to retain all monies (First, and if made,  the
final  Payments)  heretofore paid by  the  Buyer.   Seller  shall
retain all remedies available to Seller at law or in equity.

     If Seller shall default, Buyer irrevocably waives any rights
to file a lis pendens, a specific performance action or any other
claim,  action or proceeding of any type in connection  with  the
Property or this or any other transaction involving the Property,
and  will  not  do  anything to affect title to the  Property  or
hinder,  delay  or  prevent  any  other  sale,  lease  or   other
transaction involving the Property (any and all of which will  be
null  and void), unless: it has paid the First Payment, performed
all  of its other obligations and satisfied all conditions  under
this  Agreement,  and  unconditionally notifies  Seller  that  it
stands  ready  to tender full performance, purchase the  Property
and  close escrow as per this Agreement.  Provided, however, that
in  no  event  shall  Seller  be liable  for  any  consequential,
punitive  or  speculative damages arising out of any  default  by
Seller hereunder.

15. BUYER'S REPRESENTATIONS AND WARRANTIES.

     a.  Buyer represents and warrants to Seller as follows:

     (i)  Buyer has all requisite power and authority to consummate
          the transaction    contemplated by this Agreement and has by
          proper proceedings duly authorized the execution and delivery of
          this  Agreement and the consummation of the transaction
          contemplated hereby.

     (ii) To Buyer's knowledge, neither the execution and delivery of
          this Agreement nor the consummation of the transaction
          contemplated hereby will violate or be in conflict with (a) any
          applicable provisions of law, (b) any order of any court or other
          agency of government having jurisdiction hereof, or (c) any
          agreement or instrument to which Buyer is a party or by which
          Buyer is bound.

     (iii)Buyer agrees to indemnify and hold Seller harmless from
          any and all claim of any persons or entities claiming a brokerage
          or other fee arising out of representation of Buyer.

16. PROPERTY INSPECTION AND ENVIRONMENTAL.

     (a)  Seller shall provide Buyer access to the Property  from
     time  to  time  for  the  purpose of conducting  inspections
     thereof  including  mechanical, structural,  electrical  and
     other physical inspections. Buyer has until ninety (90) days
     after  the  signing of the agreement by Seller  to  complete
     such  physical  inspection (the "Inspection and  Feasibility
     Study").

     (b)  Buyer shall indemnify, defend, and hold harmless Seller
     from  and  against  any and all losses,  claims,  causes  of
     action, liabilities, and costs to the extent caused  by  the
     actions  of  Buyer, its agents, employees,  contractors,  or
     invitees,  during  any  such entry upon  the  Property.  The
     foregoing duty of indemnification shall include the duty  to
     pay all reasonable attorney's fees incurred by the Seller in
     responding to or defending any such claims or proceedings.

     (c) Buyer shall pay for any Phase I Environmental studies it
     wants  to  be performed on the Property. If Buyer desires  a
     Phase  I  Environmental, Buyer shall obtain and  review  the
     same within ninety (90) days from the date this agreement is
     signed  by Seller. If the Phase I Environmental report  does
     not  meet  hazardous material standards as required  by  the
     ruling  state and Federal agencies, the Buyer may  terminate
     this  Agreement  within  said ninety  (90)  day  period  and
     receive  a  full  refund of the Earnest Money.  However,  if
     Buyer  terminates, Buyer prior to termination  will  provide
     Seller with copies of all reports and test results Buyer had
     performed on the Property.

17. DAMAGES, DESTRUCTION AND EMINENT DOMAIN.

     (a)  If,  prior to closing, the Property or any part thereof
     be  destroyed  or further damaged by fire, the elements,  or
     any cause, due to events occurring subsequent to the date of
     this Agreement to the extent that the cost of repair exceeds
     $20,000,  this  Agreement shall become  null  and  void,  at
     Buyer's  option exercised, if at all, by written  notice  to
     Seller within ten (10) days after Buyer has received written
     notice  from Seller of said destruction or damage.   Seller,
     however,  shall  have  the right to  adjust  or  settle  any
     insured  loss  until  (i)  all contingencies  set  forth  in
     Paragraph 6 hereof have been satisfied, or waived; and  (ii)
     any  period provided for above in this Subparagraph 17a  for
     Buyer  to  elect to terminate this Agreement has expired  or
     Buyer has, by written notice to Seller, waived Buyer's right
     to terminate this Agreement.  If Buyer elects to proceed and
     to   consummate   the  purchase  despite  said   damage   or
     destruction, there shall be no reduction in or abatement  of
     the  purchase  price, and Seller shall assign to  Buyer  the
     Seller's  right, title, and interest in and to all insurance
     proceeds  resulting from said damage or destruction  to  the
     extent  that the same are payable with respect to damage  to
     the Property.

     If  the cost of repair is less than $20,000.00, Buyer  shall
     be  obligated  to  otherwise  perform  hereinunder  with  no
     adjustment  to  the Purchase Price, reduction or  abatement,
     and  Seller shall assign Seller's right, title and  interest
     in  and  to  all  insurance  proceeds  in  relation  to  the
     Property.

     (b) If, prior to closing, the Property, or any part thereof,
     is  taken (other than as disclosed in writing to Buyer prior
     to  the  date  of  this Agreement) by eminent  domain,  this
     Agreement shall become null and void, at Buyer's option.  If
     Buyer  elects  to  proceed  and to consummate  the  purchase
     despite  said  taking, there shall be no  reduction  in,  or
     abatement of, the purchase price, and Seller shall assign to
     Buyer all the Seller's right, title, and interest in and  to
     any   award  made,  or  to  be  made,  in  the  condemnation
     proceeding in relation to the Property.

      In the event that this Agreement is terminated by Buyer  as
provided above in Subparagraph 17(a) or 17(b), the First  Payment
shall  be immediately returned to Buyer (after execution by Buyer
of  such documents reasonably requested by Seller to evidence the
termination hereof).

18.  SELLER'S AND BUYER'S BROKERS.  The Buyer is not  represented
by a broker in this transaction. The Seller is not represented by
a broker in this transaction.  Both parties represent and warrant
that  no  other  broker  has  been  involved  on  behalf  of  the
warranting party, and both parties agree to indemnify  the  other
and  hold  harmless from any claim through or on behalf  of  such
other party.

19.  CANCELLATION   If any party elects to cancel  this  Contract
because  of  any breach by another party, the party  electing  to
cancel  shall  deliver  to escrow agent a notice  containing  the
address  of  the party in breach and stating that  this  Contract
shall  be  canceled  unless the breach is cured  within  13  days
following the delivery of the notice to the escrow agent.  Within
three  days after receipt of such notice, the escrow agent  shall
send  it  by  United States Mail to the party in  breach  at  the
address  contained in the Notice and no further notice  shall  be
required.   If  the  breach  is not  cured  within  the  13  days
following  the delivery of the notice to the escrow  agent,  this
Contract shall be canceled.

20. MISCELLANEOUS.

     (a)  This Agreement may be amended only by written agreement
     signed by both Seller and Buyer, and all waivers must be  in
     writing  and signed by the waiving party.  Time  is  of  the
     essence.   This  Agreement  will not  be  construed  for  or
     against  a party whether or not that party has drafted  this
     Agreement.  If there is any action or proceeding between the
     parties relating to this Agreement the prevailing party will
     be  entitled to recover attorney's fees and costs.  This  is
     an  integrated  agreement containing all agreements  of  the
     parties  about the Property and the other matters described,
     and  it  supersedes any other agreements or  understandings.
     Exhibits  attached  to this Agreement are incorporated  into
     this Agreement.

     (b)  If  this  escrow  has not closed through  no  fault  of
     Seller,  by  the thirtieth day after the completion  of  the
     Inspection and Feasibility Study Period, Seller may  either,
     at  its  election,  extend the closing  date,  exercise  any
     remedy available to it by law, including but not limited  to
     terminating this Agreement.

     (c)  Funds to be deposited or paid by Buyer will be good and
     clear  funds in the form of cash, cashier's checks  or  wire
     transfers.

     (d)  All  notices from either of the parties hereto  to  the
     other  shall be in writing and shall be considered  to  have
     been  duly  given or served if sent by first class certified
     mail,  return receipt requested, postage prepaid,  or  by  a
     nationally recognized courier service guaranteeing overnight
     delivery to the party at his or its address set forth below,
     or  to  such  other  address  as such  party  may  hereafter
     designate by written notice to the other party.

     If to Seller:

          Attention:  Robert P. Johnson
          AEI Real Estate Fund XVIII Limited Partnership
          1300 Minnesota World Trade Center
          30 E. 7th Street
          St. Paul, MN  55101-4901

     If to Buyer:

          Paul D'Alto, Trustee

When  accepted, this offer will be a binding agreement for  valid
and  sufficient consideration which will bind and benefit  Buyer,
Seller  and  their respective successors and assigns.   Buyer  is
submitting  this  offer  by signing a  copy  of  this  offer  and
delivering it to Seller, and delivering a copy of this  Agreement
signed  by  Buyer and the $10,000.00 First Payment  to  Escrowee;
Escrowee shall sign below acknowledging receipt of this Agreement
signed  by  Buyer and the First Payment, which, will be deposited
in  to  escrow  by Escrowee.  Seller has five (5)  business  days
after  receipt  of  the  executed offer,  and  acknowledgment  of
receipt  of the First Payment by Escrowee within which to  accept
this offer; if not accepted by Seller, Escrowee shall immediately
return the First Payment to Buyer.

IN  WITNESS  WHEREOF,  the Seller and Buyer  have  executed  this
Agreement effective as of the day and year above first written.

BUYER:

     Paul D'Alto, Trustee

     By: /s/ Paul D'Alto Trustee
     Its:  Paul D'Alto

SELLER:

     AEI REAL ESTATE FUND XVIII LIMITED PARTNERSHIP, a Minnesota
     limited partnership.

     By: AEI Fund Management XVIII, Inc., its corporate general
         partner

     By:/s/ Robert P Johnson
            Robert P. Johnson, President

ESCROWEE:

      The  Title Company hereby acknowledges receipt of  a  fully
executed copy of this Agreement and the First Payment referred to
in  the Agreement on April 17, 2000, and agrees to accept,  hold,
deliver  and  disburse  the  First Payment  and  Second  Payment,
together  with all interest accrued thereon and received  by  the
Title  Company,  strictly  in  accordance  with  the  terms   and
provisions  of this Agreement.  In performing any of  its  duties
hereunder,  the  Title Company shall not incur any  liability  to
anyone   for   any  damages,  losses  or  expenses,  except   for
negligence,  willful  default or breach of trust,  and  it  shall
accordingly  not  incur any liability with  respect  (i)  to  any
action taken or omitted in good faith upon advice of its counsel,
or  (ii)  to  any  action taken or omitted in reliance  upon  any
instrument, including any written notice or instruction  provided
for  in this Agreement, not only as to its due execution and  the
validity and effectiveness of its provisions, but also as to  the
truth  and  accuracy of any information contained therein,  which
the  Title Company shall in good faith believe to be genuine,  to
have  been signed or presented by a proper person or persons  and
to  conform  with the provisions of this Agreement.   Seller  and
Buyer  hereby  agree  to indemnify and hold  harmless  the  Title
Company  against any and all losses, claims, damages, liabilities
and  expenses, imposed upon the Title Company or incurred by  the
Title   Company  in  connection  with  its  acceptance   or   the
performance  of  its duties hereunder, including  any  litigation
arising  from  this  Agreement or involving  the  subject  matter
hereof,  unless  such  losses, claims, damages,  liabilities  and
expenses arise out of Title Company's negligence, willful default
or breach of trust.  In the event of a dispute between Seller and
Buyer  sufficient  in  the discretion of  the  Title  Company  to
justify  its  doing so, the Title Company shall  be  entitled  to
tender  into the registry of the District Court of Marion County,
Florida, all money or property in its hands under this Agreement,
together  with such legal pleadings as it deems appropriate,  and
thereupon  be discharged from all further duties and  liabilities
under this Agreement.  Seller and Buyer shall bear all costs  and
expenses of such legal proceedings.

First American Title Insurance Company

By:/s/ L Stephenson

Its:  Closing Officer

                              EXHIBIT "A"

Commence at the Southeast corner of the SE 1/2 of the NE  1/2  of
Section  26,  Township  16 South, Range 22 East,  marion  County,
Florida;  thence N 89 52' 48"W. along the South line of  said  SE
1/2  of the NE 1/4 , 91.28 feet to a point on the easterly right-
of-way line of U.S. Highway No. 441, (200.00' wide); thence  N.26
43' 44" W. along said right-of-way line 278.88 feet for the Point
of Beginning; thence continue N.26 43' 44"W. along, said right-of-
way  line 121.25 feet; thence continue N 26 43' 44" W. along said
right-of-way line 184.04 feet; thence N.63 16' 16"E. 46.43  feet;
thence  East 58.89 feet; thene S 78 05'26" E., 67.84 feet; thence
south 170.00 feet; thence East 2.41 feet; thence S.26 43' 44"  E.
parallel with the easterly right-of-way line of U.S. Highway  No.
441  (200 feet wide), 122.66 feet; thence West 87.00 feet to  the
Point  of Beginning, together with the rights conferred  in  that
certain Declaration of Easement recorded in Official Records Book
1298, Page 91, Public Records of Marion County, Florida.REVOLVING PROMISSORY NOTE

$ 15,000,000.00                                                 Denver, Colorado
                                                                   April 7, 2000

         FOR  VALUE  RECEIVED,   the  undersigned   ASSET  INVESTORS   OPERATING
PARTNERSHIP,  L.P., a Delaware limited partnership  ("Borrower"),  and COMMUNITY
SAVANNA  CLUB  JOINT  VENTURE,  and AIOP  LOST  DUTCHMAN  NOTES,  LLC  (each,  a
"Co-Maker")  hereby  promise  to  pay  to  the  order  of U.  S.  BANK  NATIONAL
ASSOCIATION ("Bank") at 918 Seventeenth Street,  Fifth Floor,  Denver,  Colorado
80202,  or at such  other  place as Bank  may,  from time to time  designate  in
writing,   the   principal  sum  of  FIFTEEN   MILLION  AND  NO/100THS   DOLLARS
($15,000,000.00),  or so much of that sum as may be advanced  under this Note by
the Bank, with principal and interest thereon payable as specified in this Note.
Capitalized  terms used but not defined herein shall have the meanings  assigned
to such terms in the Line of Credit Agreement (defined below).

         1.  Principal and Interest.  Interest shall accrue on the Loan from and
after the date of disbursement  ("Disbursement Date") at an annual rate equal to
the Reference Rate (the "Interest Rate"). The Interest Rate shall be adjusted on
a daily basis as and when such Reference  Rate changes,  shall be payable as set
forth below,  and shall be calculated on the actual days  outstanding over a 360
day year.

         2.  Reference  Rate   Definition.   "Reference  Rate"  means  the  rate
determined  and announced by the Bank from time to time as the Bank's  Reference
Rate of interest. The Bank may lend to customers at rates that are at, above, or
below the Reference Rate.

         3. Payment and Maturity Dates.  Principal and interest shall be payable
as follows:

            (a) in arrears,  on the first (1st) day of the month  following  the
date hereof, and on the first (1st) day of each month thereafter until this Note
matures,  payments  of  interest  only  accruing  on the  outstanding  principal
balance; and

            (b) on May 31, 2001 (the "Maturity Date"), subject to the Borrower's
right to extend set forth in the Line of Credit  Agreement,  the  entire  unpaid
principal  amount and any interest  accrued but  remaining  unpaid and all other
sums due under this Note

All  installments  of  principal  and  interest of this Note are payable only in
lawful money of the United States of America, at such place as the holder hereof
may designate in writing from time to time.

         4.   Revolving   Loan.  Up  to  Fifteen   Million  and  00/100  Dollars
($15,000,000.00)  of the principal amount of this Note may be disbursed,  repaid
and  reborrowed  in accordance  with the terms of the Line of Credit  Agreement,

                                       1
<PAGE>

provided that the aggregate of such  advances  outstanding  at any time does not
exceed $15,000,000.00.

         5. Prepayment.  This Note may be prepaid, either in whole or in part at
any time  without  premium or penalty and without the prior  consent of the Bank
hereof,  on the  condition  that  Borrower  shall  concurrently  pay all accrued
interest on the amount of principal  outstanding at the time of each  prepayment
and any other  charges then due and that  Borrower  shall provide Bank with five
(5) days' prior written notice of the amount of the prepayment.

         6. Default and Acceleration.  Time is of the essence of this Note. Upon
the  occurrence  of an  Event  of  Default  as  defined  in the  Line of  Credit
Agreement,  at the option of the holder  hereof,  the entire debt then remaining
unpaid at once shall become due and payable  without  notice and the liens given
to secure  the  payment of this Note may be  foreclosed  and Bank may pursue all
rights and remedies available under this Note or any instrument securing payment
of this Note.

         7.  Default  Rate of  Interest.  In the Event of Default,  Borrower and
Co-Makers promise to pay interest on the principal balance of this Note together
with  all  sums  due and  owing  under  the  Note  or the  Loan  Documents  then
outstanding at a rate of interest  ("Default  Rate") equal to the greater (a) of
eighteen  percent (18%) per annum,  or (b) five percent (5%) per annum in excess
of the Interest  Rate then  applicable,  provided  that any  interest  which has
accrued  at the  Default  Rate  shall be paid at the time of and as a  condition
precedent to the curing of any default  under any statutory  right to cure.  The
fluctuating   Default  Rate  at  which   interest   accrues  shall  be  adjusted
simultaneously,  at each  announced  change of the  Reference  Rate.  Failure to
exercise such option or charge such increased  interest shall not be a waiver of
the right to do so at any future time or with respect to any other default.

         8. Late  Charges.  If  Borrower  and  Co-Makers  shall fail to make any
payment of interest or  principal,  including the final  combined  principal and
interest  installment,  within  ten (10) days after the date the same is due and
payable,  a late charge by way of damages shall be immediately  due and payable.
Borrower and  Co-Makers  recognize  that  default by Borrower  and  Co-Makers in
making the payments  herein agreed to be paid when due will result in the holder
incurring additional expense in servicing the Loan, in loss to the holder of the
use of the money due and in  frustration  to the  holder  in  meeting  its other
financial and loan  commitments.  Borrower and Co-Makers  agree that, if for any
reason  Borrower and Co-Maker fail to pay the amounts due under this Note within
ten (10) days  after the date the same is due and  payable,  the  holder  hereof
shall be entitled to damages for the detriment  caused  thereby,  and that it is
extremely  difficult  and  impractical  to ascertain the extent of such damages.
Borrower and Co-Makers  therefore agree that a sum equal to four percent (4%) of
each payment which becomes  delinquent is a reasonable  estimate of said damages
to the holder of this Note,  which sum  Borrower and  Co-Makers  agree to pay on
demand.

         9. Remedies Cumulative.  The rights or remedies of the Bank as provided
in  this  Note  and any  instrument  securing  payment  of this  Note  shall  be
cumulative and concurrent and may be pursued singly,  successively,  or together
against the  Borrower and  Co-Makers,  the real  property  described in the Loan

                                       2
<PAGE>

Documents,  and any  other  funds,  property  or  security  held by Bank for the
payment  hereof or otherwise at the sole  discretion of the Bank. The failure to
exercise  any such right or remedy shall in no event be construed as a waiver or
release of such rights or  remedies  or the right to exercise  them at any later
time.

         10.  Forbearance.  Any  forbearance  of Bank in exercising any right or
remedy  hereunder  or  under  the  Loan  Documents,  or  otherwise  afforded  by
applicable  law,  shall not be a waiver of or preclude the exercise of any right
or remedy.  The acceptance by Bank of payment of any sum payable hereunder after
the due date of such  payment  shall not be a waiver  of Bank's  right to either
require  prompt  payment  when due of all other  sums  payable  hereunder  or to
declare a default for failure to make  prompt  payment.  Bank shall at all times
have the right to proceed  against any portion of the  security  held herefor in
such order and in such manner as Bank may deem fit,  without  waiving any rights
with respect to any other security.  No delay or omission on the part of Bank in
exercising any right hereunder shall operate as a waiver of such right or of any
other right under this Note.

         11. Right of Setoff.  In addition to all liens upon,  and the rights of
setoff  against,  the monies,  securities  and other property of Borrower or any
Co-Maker  given to the Bank,  the Bank shall  have a lien  upon,  and a right of
setoff  against,  all monies,  securities  and other  property of Borrower,  any
Co-Maker,  now  or  hereafter  in  the  possession  of  the  Bank,  whether  for
safekeeping  or otherwise.  In the event of a default under this Note,  the Bank
shall have the right to take amounts due from any deposit  balances  Borrower or
any  Co-Maker has with the Bank,  regardless  of any penalty that may apply when
the Bank  exercises  such  right,  and apply such  amounts  for the  outstanding
balance of amounts due under this Note.

         12.  Application  of Payments.  All payments made on this Note shall be
applied  first to any  collection  costs the Bank may have incurred by procuring
Borrower's performance  hereunder,  then to payment of the interest then accrued
and due on the unpaid principal balance of this Note, then to any other sums due
to the Bank  under  the  Loan  Documents,  then to the  Prepayment  Premium,  if
applicable,  and the  remainder  of all such  payments  shall be  applied to the
reduction of the unpaid principal.

         13.  Waivers.  Borrower and any sureties,  guarantors and endorsers and
Co-Makers  (severally  each called a "Surety")  waive  presentment,  protest and
demand, notice of protest,  demand and of dishonor and non-payment of this Note,
and expressly  agree that this Note, or any payment  hereunder,  may be extended
from time to time without in any way affecting the liability of the Borrower and
each Surety  hereof.  Borrower and any Surety further agree that at any time and
from time to time without  notice the terms of payment herein may be modified or
the security  described in the Loan  Documents  released in whole or in part, or
increased,  changed or exchanged by agreement  between the Bank and any owner of
the property  affected by said Loan Documents  without in anywise  affecting the
liability  of any party to this  instrument  or any  person  liable or to become
liable with respect to any indebtedness evidenced hereby.

                                       3
<PAGE>

         In addition,  Borrower and each Surety waives and agrees not to assert:
(a) any right to require holder to proceed against Borrower or any other Surety,
to proceed  against or exhaust any  security  for the Note,  to pursue any other
remedy  available to Bank,  or to pursue any remedy in any  particular  order or
manner;  (b) the benefit of any statute of  limitations  affecting its liability
hereunder or the enforcement  hereof; (c) the benefits of any legal or equitable
doctrine or principle of marshalling;  (d) notice of the existence,  creation or
incurring  of new or  additional  indebtedness  of  Borrower  to  Bank;  (e) the
benefits of any statutory  provision  limiting the liability of a surety, to the
extent applicable;  (f) any defense arising by reason of any disability or other
defense of  Borrower  or by reason of the  cessation  from any cause  whatsoever
(other than  payment in full) of the  liability  of Borrower  for payment of the
Note; and (g) the benefits of any statutory provision limiting the right of Bank
to recover a deficiency judgment,  or to otherwise proceed against any person or
entity  obligated for payment of the Note,  after any  foreclosure  or trustee's
sale of any security for the Note.  Until payment in full of the Note, no Surety
shall have any right of subrogation  and each hereby waives any right to enforce
any remedy which Bank now has, or may hereafter  have,  against  Borrower or any
other Surety,  and waives any benefit of, and any right to  participate  in, any
security now or hereafter held by Bank.

         14. Usury. In the event the interest provisions hereof or any exactions
provided for herein or in the Loan  Documents or any other  instrument  securing
this Note shall result, because of any reduction of principal, or for any reason
at any time  during the life of this Loan,  in any  effective  rate of  interest
which,  for any  month,  transcends  the  limit of the  usury or any  other  law
applicable  to the Loan,  all sums in excess of those  lawfully  collectible  as
interest for the period in question shall,  without further  agreement or notice
between or by any party  hereto,  be applied  upon  principal  immediately  upon
receipt  of such  moneys by Bank,  with the same  force and effect as though the
payor had specifically  designated such extra sums to be so applied to principal
and Bank had agreed to accept such extra payment as a  premium-free  prepayment.
In no event  shall any agreed to or actual  exaction as  consideration  for this
Loan  transcend  the limits  imposed or provided by the laws  applicable to this
transaction or the Borrower hereof in the  jurisdiction in which the Property is
located  for the use or  detention  of money or for  forbearance  in seeking its
collection.

         15. Loan Documents.  This Note is executed by Borrower and Co-Makers in
connection  with  that  certain  Line  of  Credit  Agreement  between  Borrower,
Co-Makers and Bank dated as of the date hereof (the "Line of Credit Agreement"),
and this Note is secured by, among other things,  (a) a Deed of Trust,  Security
Agreement,  Financing  Statement and Assignment of Rents and Revenues  ("Arizona
Deed of Trust")  dated as of the date  hereof,  on real  estate  situated in the
County of Maricopa, Arizona, and (b) a Mortgage,  Security Agreement,  Financing
Statement  and Absolute  Assignment of Rents and Revenues  ("Florida  Mortgage")
dated as of the date hereof, on real estate situated in the County of St. Lucie,
Florida,  and other documents and instruments  evidencing and securing repayment
of the Loan (collectively,  the "Loan Documents"). The Arizona Deed of Trust and
the Florida  Mortgage are  collectively  called the "Deed of Trust." The Line of
Credit  Agreement and the Deed of Trust contain  provisions for the acceleration
of the maturity of this Note. In the event of any conflict between any provision

                                       4
<PAGE>

of the Line of Credit  Agreement and any  provisions of this Note, the provision
of the Line of Credit Agreement shall control.

         16. Preferential Payment.  Borrower and each Co-Maker agree that to the
extent  Borrower or any Surety makes any payment to Bank in connection  with the
indebtedness  evidenced  by this  Note,  and all or any part of such  payment is
subsequently invalidated,  declared to be fraudulent or preferential,  set aside
or  required  to be repaid by Bank or paid over to a  trustee,  receiver  or any
other entity, whether under any bankruptcy act or otherwise (any such payment is
hereinafter referred to as a "Preferential  Payment"),  then the indebtedness of
Borrower and Co-Makers under this Note shall continue or shall be reinstated, as
the case may be, and, to the extent of such payment or  repayment  by Bank,  the
indebtedness  evidenced by this Note or part thereof intended to be satisfied by
such  Preferential  Payment  shall be revived  and  continued  in full force and
effect as if said Preferential Payment had not been made.

         17. Governing Law; Jurisdiction.  This Note is to be governed according
to the laws of  Colorado,  without  giving  effect to  principles  of  conflict.
Without limiting the right of the Bank to bring any action or proceeding against
Borrower  or any Surety or against  any  property  of Borrower or any Surety (an
"Action") arising out of or relating to this Note or any indebtedness  evidenced
hereby in the courts of other  jurisdictions,  Borrower  and each Surety  hereby
irrevocably submit to the jurisdiction,  process and venue of any Colorado State
or Federal court sitting in Denver,  Colorado, and hereby irrevocably agree that
any Action may be heard and  determined in such Colorado  State court or in such
Federal court.  Borrower and all Sureties each hereby irrevocably waives, to the
fullest extent it may  effectively  do so, the defenses of lack of  jurisdiction
over any person, inconvenient forum or improper venue, to the maintenance of any
Action in any jurisdiction.

         18.  Joint and  Several  Obligations.  If there  shall be more than one
maker of this Note, the  obligations of each maker under this Note are joint and
several.  The  obligations of each maker are  independent of the  obligations of
each of the other  makers or any  guarantor  who has  executed  and  delivered a
guarantee. Release of one or more of the makers shall not impair or diminish the
liability  of any  remaining  maker,  except to the  extent  of monies  actually
received by Bank from the released maker as a consequence of such release.  Each
maker waives any rights the maker might  otherwise  have under  C.R.S.  Sections
13-50-102 or 13-50-103 (or under any corresponding future statute or rule of law
in any  jurisdiction)  by reason of any release of fewer than all of the makers,
all in such manner and upon such terms as the Bank may deem proper,  and without
notice to or further  assent from the  makers,  and all  without  affecting  the
obligations of the makers hereunder.  In the event of any default thereunder,  a
separate  action or actions  may be brought  and  prosecuted  against any of the
makers, whether or not a maker is joined therein or a separate action or actions
are  brought  against  any of the other  makers.  Bank may  maintain  successive
actions for other defaults.  The Bank's rights  hereunder shall not be exhausted
by its  exercise  of any of its rights and  remedies or by any such action or by
any number of successive actions until and unless the Obligations have been paid
and fully performed.

                                       5
<PAGE>

         19.  Binding  Effect.  This Note shall be binding upon  Borrower,  each
Co-Maker and its  successors and assigns and shall inure to the benefit of Bank,
and any subsequent holders of this Note, and their successors and assigns.

         20. Notice.  All notices  required or permitted in connection with this
Note  shall be given at the  place  and in the  manner  provided  in the Line of
Credit Agreement for the giving of notices.

         21. Attorneys' Fees.  Borrower and Co-Makers further promise to pay all
reasonable  attorneys'  fees incurred by the Bank in connection with any Default
hereunder and in any proceeding brought to enforce any of the provisions of this
Note.

         22.  Interpretation and  Incorporation.  As used in this Note, the term
"Bank,"  shall  include each  subsequent  transferee  and/or owner of this Note,
whether  taking by  endorsement  or  otherwise.  As used in this Note,  the word
"include(s)"  means "include(s),  without  limitation," and the word "including"
means "including, but not limited to."

         23. Waiver of Jury Trial. Borrower and Co-Makers,  and by acceptance of
this Note, Bank hereby  irrevocably  waive,  to the fullest extent  permitted by
law, any and all right to trial by jury in any legal  proceeding  arising out of
or relating to this Note, the Line of Credit Agreement, the other Loan Documents
or the transactions contemplated thereby.

         IN WITNESS WHEREOF,  has duly executed this Note as of the day and year
first above written.

                                    BORROWER:

                                    ASSET INVESTORS OPERATING PARTNERSHIP, L.P.,
                                    a  Delaware limited partnership

                                    By:  ASSET INVESTORS CORPORATION,
                                         a Delaware corporation, General Partner

                                         By:  /s/David M. Becker
                                             --------------------------------
                                               David M. Becker
                                               Chief Financial Officer

                                       6
<PAGE>

                                  CO-MAKERS:

                                  COMMUNITY SAVANNA CLUB JOINT VENTURE, a
                                  Delaware general partnership

                                  By: AIOP FLORIDA PROPERTIES I, L.L.C.,
                                      a Delaware limited liability company,
                                      Managing General Partner

                                      By: ASSET INVESTORS OPERATING PARTNERSHIP,
                                          L.P., a Delaware limited partnership,
                                          Sole Member and Manager

                                          By: ASSET INVESTORS
                                              CORPORATION, a Delaware
                                              corporation, General Partner

                                              By:     /s/David M. Becker
                                                 ------------------------------
                                                   David M. Becker
                                                   Chief Financial Officer

                                  AIOP LOST DUTCHMAN NOTES, L.L.C., a Delaware
                                  limited liability company

                                  By: ASSET INVESTORS OPERATING PARTNERSHIP,
                                      L.P., a Delaware limited partnership,
                                      Sole Member and Manager

                                      By: ASSET INVESTORS CORPORATION, a
                                          Delaware corporation, General
                                          Partner

                                          By: /s/David M. Becker
                                              -------------------------
                                                David M. Becker
                                                Chief Financial Officer

                                       7

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