Document:

EX-10.1

REAL ESTATE PURCHASE AND SALE AGREEMENT

APARTMENTS AT CANYON RIDGE, LLC,

a Delaware limited liability company, SELLER

and

GRUBB & ELLIS REALTY INVESTORS, LLC,

a Virginia limited liability company, BUYER

1

INDEX TO

REAL ESTATE PURCHASE AND SALE AGREEMENT

	1.	 	Property Included in Sale	 

	2.	 	Purchase Price/Remedies	 

	3.	 	Title to the Property	 

	4.	 	Buyer’s Due Diligence	 

	5.	 	Buyer‘s Conditions to Closing	 

	6.	 	Seller’s Conditions to Closing	 

	7.	 	The Closing	 

	8.	 	Representations and Warranties	 

	9.	 	Covenants of Seller	 

	 	(a)	 	Operation of Property	 

	 	(b)	 	Execution of New Leases and Renewals	 

	 	(c)	 	Maintenance of Insurance	 

	 	(d)	 	Enforcement of Existing Leases	 

	 	(f)	 	Provide Copies of Notices	 

	 	(g)	 	No Encumbrances or Actions	 

	 	(h)	 	Service Contracts	 

	10.	 	Condition of Property	 

	11.	 	Possession	 

	12.	 	Miscellaneous	 

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REAL ESTATE PURCHASE AND SALE AGREEMENT

THIS REAL ESTATE PURCHASE AND SALE AGREEMENT (this “Agreement”), is made as of the      day
of July, 2008 (the “Agreement Date”) by and between APARTMENTS AT CANYON RIDGE, LLC, a Delaware
limited liability company, herein referred to as “Seller” and GRUBB & ELLIS REALTY INVESTORS, LLC,
a Virginia limited liability company, its permitted successors and/or assigns, collectively herein
referred to as “Buyer.”

R E C I T A L S:

WHEREAS, Seller desires to sell certain improved real property along with certain related
personal and intangible property, and Buyer desires to purchase said real, personal and intangible
property on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the foregoing and the mutual undertakings set forth
herein, and for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Buyer and Seller hereby agree as follows:

1. Property Included in Sale. Seller hereby agrees to sell and convey to Buyer, and
Buyer hereby agrees to purchase from Seller, the following:

(a) That certain real property commonly known as 3868 Central Pike Road, Hermitage, Tennessee,
and more particularly described in Exhibit A attached hereto (the “Real Property”);

(b) Seller’s interest in all rights, privileges and easements appurtenant to the Real
Property, including, without limitation, all minerals, oil, gas and other hydrocarbon substances as
well as all development rights, air rights, water, water rights (and water stock, if any) relating
to the Real Property and any easements, rights-of-way or other appurtenances used in connection
with the beneficial use and enjoyment of the Real Property;

(c) Seller’s interest in all improvements and fixtures located on the Real Property, including
all buildings and structures presently located on the Real Property, all apparatus, equipment and
appliances used in connection with the operation or occupancy of the Real Property, such as heating
and air conditioning systems and facilities used to provide any utility services, refrigeration,
ventilation, garbage disposal, recreation or other services on the Real Property (all of which are
collectively referred to as the “Improvements”);

(d) Seller’s interest in any tangible or intangible personal property owned by Seller and used
in the ownership, use and operation of the Real Property and Improvements, including, without
limitation, the right to use any trade name (excepting those including the name “Principal”),
trademarks, service marks, building and property names and building signs used in connection with
the Real Property and the Improvements, including the names “Canyon Ridge Apartments” and all
variations thereof (the “Personal Property”) and any contract or lease rights, agreements, utility
contracts, management, maintenance and service contracts or other rights relating to the ownership,
use and operation of the Real Property (the “Service Contracts”);

All of the items referred to in subparagraphs (a), (b), (c) and (d) above are hereinafter
collectively referred to as the “Property.”

2. Purchase Price/Remedies.

(a) The total purchase price (the “Purchase Price”) for the Property is Thirty-Six Million
Fifty Thousand and 00/100 Dollars ($36,050,000.00). The Purchase Price is payable by wire transfer
of immediately available funds in U.S. dollars via the federal bank wire transfer system
deliverable no later than 12:00 p.m. Central on the Closing Date (as defined herein) to LandAmerica
American Title Company — 1951, Attn: Debby S. Moore, 2505 N. Plano Road, Suite 3100, Richardson,
Texas 75082 (telephone: 214.570.0200 (x103); fax: 214.570.0210) (the “Title Company”) at Closing.

(b) Within two (2) business days of the Agreement Date, Buyer shall deposit into escrow with
the Title Company the sum of Three Hundred Sixty Thousand Five Hundred and 00/100 Dollars
($360,500.00) as the earnest money deposit (the “Initial Deposit”) payable by wire transfer of
immediately available funds in U.S. dollars via the federal bank wire transfer system. Provided
that Buyer has not terminated this Agreement prior to the Approval Date, Buyer shall deposit an
additional Three Hundred Sixty Thousand Five Hundred and 00/100 Dollars ($360,500.00) (the
“Additional Deposit”) within two (2) business days after the Approval Date. (The Initial Deposit
and the Additional Deposit are collectively referred to herein as the “Deposit”.) Any interest
earned by the Deposit shall be considered part of the Deposit. Except as otherwise provided in
this Agreement, the Deposit shall be held by the Title Company in a federally insured interest
bearing account and applied against the cash portion of the Purchase Price at Closing.

(c) In the event Buyer shall be in or alleged to be in default hereunder, Seller shall deliver
a written notice to Buyer within five (5) business days of learning of such default, stating with
particularity the alleged default of Buyer and the action required by Buyer to cure such default,
whereupon Buyer shall have ten (10) business days after receipt of such written notice in which to
cure the alleged default to Seller’s reasonable satisfaction (and the Closing Date shall be
delayed, if necessary, until the end of such ten (10) business day period). Seller shall not be
required to give notice of default, opportunity to cure or delay the Closing Date if Buyer’s
default is the failure to deliver the items required by paragraphs 2(b), 7(c) and 7(d) of this
Agreement. In the event after the expiration of the ten (10) business day cure period set forth
in the previous sentence, the purchase and sale provided for under this Agreement does not close
due to Buyer’s default and no fault of Seller, Buyer and Seller hereby agree that Seller will be
damaged thereby. Therefore, Seller and Buyer hereby agree that the Deposit shall represent and be
liquidated damages payable to Seller in such event as a fair and reasonable sum to recompense
Seller in light of Seller’s removal of the Property from the market and the costs incurred, labor
and services performed and the loss of its bargain, all of which are difficult to ascertain. These
liquidated damages shall constitute Seller’s sole and exclusive remedy except for those certain
indemnifications of Seller by Buyer otherwise provided for in this Agreement.

(d) In the event that Seller shall be in default hereunder, Buyer’s sole and exclusive remedy
shall be either: (i) deliver a written notice to Seller within five (5) business days of learning
of such default, stating with particularity the alleged default of Seller and the action required
by Seller to cure such default, and stating Buyer’s intent to terminate this Agreement if the
default is not cured, whereupon Seller shall have ten (10) business days after receipt of such
written notice in which to cure the alleged default to Buyer’s reasonable satisfaction and to
thereby prevent termination of this Agreement (and the Closing Date shall be delayed, if necessary,
until the end of such ten (10) business day period), or in the event such default is not cured
within such ten (10) business day period, terminate this Agreement by written notice to Seller and
the Title Company, in which case the Deposit shall be returned to Buyer; or (ii) if Seller’s
default results from its failure to transfer possession and title to the Property to Buyer at
Closing, enforce specific performance. In no event under (i) or (ii) above shall Seller be liable
to Buyer for any actual, punitive, speculative, consequential or other damages.

3. Title to the Property. At the Closing, Seller shall convey to Buyer and Buyer
shall accept from Seller marketable and insurable fee simple title to the Real Property, all
rights, privileges and easements appurtenant thereto, and to the Improvements, by duly executed and
acknowledged Special Warranty Deed attached hereto as Exhibit H (the “Deed”), subject only to the
Permitted Exceptions. Evidence of delivery of marketable and insurable fee simple title shall be
the issuance at Closing of a current ALTA Owner’s Policy of Title Insurance in the full amount of
the Purchase Price by the Title Company, dated the day of Closing, insuring fee simple title to the
Real Property, Improvements, and appurtenant rights, privileges and easements, in Buyer, subject
only to the Permitted Exceptions and together with such endorsements as are reasonably required by
Buyer (the “Title Policy”).

4. Buyer’s Due Diligence. Buyer shall be allowed to conduct the following due
diligence prior to purchasing the Property:

(a) Seller has provided Buyer with a copy of its existing title policy for review, and Buyer
shall order, at Buyer’s expense, a title commitment for the Property (the “Title Report”). Seller
has also provided Buyer with a copy of an existing as-built survey showing the location of all
improvements and recorded easements on the Property as of the date of such survey, and Buyer shall
also order, at Buyer’s expense, an updated survey of the Property sufficient to enable Buyer’s
title company to issue an ALTA owner’s policy of title insurance (the “Survey”). The Title Report
and the Survey are collectively referred to as the “Title Documents”. On or before 5:00 p.m.
Central on July 7, 2008, Buyer may approve or disapprove (in its sole and absolute discretion) the
Title Documents for the Property by delivering written notice to Seller (“Buyer’s Title Notice”)
specifying each title defect or matter for which Buyer is requesting a cure by Seller (“Title
Defect”) and each Title Company requirement (“Title Requirement”) which Buyer is requesting Seller
to satisfy in order for the Title Policy to be issued for the Property at Closing. Buyer’s failure
to deliver Buyer’s Title Notice to Seller within the time period specified above shall be a
conclusive presumption that Buyer has approved the Title Documents and this Agreement shall remain
in full force and effect. Within three (3) business days after receiving Buyer’s Title Notice,
Seller shall deliver to Buyer written notice (“Seller’s Title Notice”) of those Title Defects which
Seller covenants and agrees to either eliminate or cure to Buyer’s satisfaction by the Closing Date
and those Title Requirements which Seller agrees to satisfy by the Closing Date. Seller’s failure
to deliver Seller’s Title Notice to Buyer within the time period specified above shall be deemed to
constitute Seller’s election not to eliminate or cure any such Title Defect or to satisfy any such
Title Requirements; provided, however, that Seller shall in any case be obligated to remove
all monetary encumbrances at or prior to Closing without Buyer having to notify Seller of same. If
Seller elects (or is deemed to have elected) not to eliminate or cure any Title Defects or to not
satisfy any Title Requirements, Buyer shall have the right, by written notice delivered to Seller
within two (2) business days of Seller’s Title Notice (or the expiration of the three (3) business
days in which Seller must provide Seller’s Title Notice), to either (i) waive its prior notice as
to the Title Defects which Seller has elected (or is deemed to have elected) not to cure and those
Title Requirements which Seller has elected (or is deemed to have elected) not to satisfy, or (ii)
terminate this Agreement by delivering written notice to Seller, at which time the Deposit shall be
returned to Buyer and the parties shall have no further obligations hereunder except for those
which expressly survive termination. Buyer’s failure to deliver any written notice within such two
(2) business day period shall be a conclusive presumption that Buyer has approved the uncured Title
Documents and unsatisfied Title Requirements and this Agreement shall remain in full force and
effect.

(b) Buyer’s review of the operating statements of the Property only for the previous two (2)
calendar years as well as the current calendar year-to-date, provided same are available and in
Seller’s actual possession.

(c) Buyer’s review of copies of any site plans and building drawings and specifications
currently in the possession of Seller.

(d) Buyer’s review of copies of any maintenance and service agreements currently in force and
in the possession of Seller. Buyer shall provide written notice to Seller no less than three (3)
business days prior to the Approval Date of those agreements Buyer wishes to assume. In the
absence of such notice, Seller shall terminate all agreements.

(e) Buyer’s review of a certain environmental report prepared for Seller and currently in the
possession of Seller (as set forth on Exhibit K, the “Environmental Report”). Seller is providing
the Environmental Report to Buyer for informational purposes only and Buyer shall not rely on the
Environmental Report in determining whether to purchase the Property; provided, however,
that the foregoing statement shall not prohibit Buyer from exercising its right to terminate prior
to the Approval Date based on its own environmental due diligence. In the event the transaction
contemplated herein does not close for any reason whatsoever, Buyer shall immediately return the
Environmental Report to Seller.

(f) Buyer’s review of the Tenant files. Seller shall allow Buyer to review the tenant files
(including tenant leases) at the office of the property manager during normal business hours upon
one (1) business day’s notice. Files must be reviewed in the property manager’s office and no part
thereof may be removed, copied or duplicated prior to Closing.

The items referred to above in subparagraphs 4(a)-(f) , any other items provided by Seller to
Buyer in connection with Buyer’s inspection of the Property, or items reviewed at the Property by
Buyer (e.g. if applicable, tenant files, plans and specifications) shall be collectively referred
to as the “Due Diligence Items”; provided, however, that “Due Diligence Items” shall not
include any items ordered and paid by Buyer (e.g., the updated title commitment and updated
survey). Buyer acknowledges receipt of the Due Diligence Items on June 13, 2008.

The Due Diligence Items contain confidential material, data and information and by accepting
delivery of same Buyer hereby acknowledges that the Due Diligence Items will be relied upon at
Buyer’s own risk and further that as provided herein below will be kept confidential at all times
by Buyer and its agents, employees and representatives (“Confidentiality Requirement”).

Buyer agrees that it shall make no copies of the Due Diligence Items. It may, however, make
notes (such notes shall be deemed to be part of the Due Diligence Items). The Due Diligence Items
will be kept confidential and shall not, without Seller’s prior written consent (which consent
shall be granted or denied in Seller’s sole discretion), be disclosed by Buyer, or by its agents,
representatives or employees, except Seller’s prior written consent shall not be required in order
to disclose such information (i) to Buyer’s lender, (ii) its or their consultants, employees,
attorneys or other parties assisting Buyer with the transaction contemplated by this Agreement,
(iii) as required to be disclosed by applicable laws, rules or regulations, and (iv) to prospective
tenant-in-common investors of Buyer. If such consent is granted, the Due Diligence Items shall not
be disclosed prior to Seller’s receipt of an Acknowledgment and Disclaimer Agreement as attached
hereto as Exhibit E from the person or entity to whom the Due Diligence Items is being disclosed.
Moreover, Buyer agrees to reveal the Due Diligence Items only to those of its agents,
representatives and employees (“Representatives”) who need to know the Due Diligence Items and who
are informed by Buyer of the confidential nature of the Due Diligence Items. Buyer or its
Representatives will not volunteer or disclose in any way to any person (i) the fact that the Due
Diligence Items have been made available, (ii) any of the Due Diligence Items or any summaries or
notes thereof, or (iii) any of the terms, conditions or other facts with respect to the Agreement
except as otherwise provided herein.

Buyer hereby releases and discharges any and all claims it may have against Seller or its
consultant arising out of the delivery of the Due Diligence Items to Buyer or any inaccuracy of the
Due Diligence Items. Further, Buyer hereby agrees to indemnify and hold Seller harmless from any
and all claims arising out of the delivery to Buyer of the Due Diligence Items; provided,
however, that the foregoing indemnity excludes any claims arising out of the gross negligence
or willful misconduct of Seller, its agents, representatives and employees.

Buyer agrees that if it, its Representatives commit a breach of any of the provisions of this
Confidentiality Requirement, Seller shall have the right and remedy to institute proceedings to
obtain immediate injunctive relief for any breach or threatened breach hereof, it being hereby
acknowledged and agreed that any such breach or threatened breach may cause irreparable injury to
Seller and its affiliates and that money damages will not provide an adequate remedy to Seller and
its affiliates. This stipulation with respect to damages incurred by Seller upon a breach of this
Confidentiality Requirement by Buyer shall be limited to use in an action for injunctive relief.
Further, nothing herein shall be construed to limit any other remedy available to Seller.

(g) Buyer’s review of the physical, environmental, financial and all other characteristics and
condition of the Property. Seller agrees to provide Buyer access to the Property following the
Agreement Date for the purpose of performing, at Buyer’s sole cost and expense, studies, physical
inspections, investigations and tests on the Property (the “Tests”) provided that no such Tests
shall be conducted without at least one (1) business day’s prior written notice to Seller and
Seller’s prior approval of such Tests. Seller’s execution of this Agreement shall constitute its
consent to a non-invasive phase I environmental site assessment being performed on the Property.
All forms of invasive Tests are prohibited without Seller’s prior written consent, which consent
may be granted or withheld in Seller’s sole discretion. Invasive Tests hereunder include, but are
not limited to, any tests or testing beyond a Phase I environmental site assessment, such as
collecting or testing asbestos, water, radon, soil or air samples. Buyer’s access is further
conditioned on Buyer providing Seller with certificates of insurance listing Seller as an
additional insured on all insurance policies evidencing that Buyer’s agents or contractors
performing the Tests have insurance in types and amounts satisfactory to Seller as determined by
Seller in its reasonable discretion as more specifically set forth on Exhibit J attached hereto and
hereby made a part hereof. Seller hereby acknowledges receipt of certificates of insurance on June
30, 2008, and Seller further acknowledges that such insurance certificates are satisfactory to
Seller. Buyer shall be required to conduct such Tests in a manner as to not unreasonably disturb
or interfere with the current use of the Property and upon completion of such Tests, Buyer agrees
at its sole cost to restore the Property to the condition it was in immediately prior to such
Tests, including, but not limited to the immediate removal of anything placed on the Property in
connection with such Tests. Copies of any third-party reports, letters or other written
information generated as a result of such Tests shall be provided to Seller if the sale
contemplated by this Agreement does not close for any reason. Buyer shall indemnify, defend (with
counsel reasonably satisfactory to Seller), protect, and hold Seller harmless from and against any
and all liability, loss, cost, damage, or expense (including, without limitation, reasonable
attorney’s fees and costs) (“Losses”) which Seller may sustain or incur by reason of or in
connection with any Tests made by Buyer or Buyer’s agents or contractors relating to or in
connection with the Property, or entries by Buyer or its agents or contractors onto the Property
provided that, Buyer shall not be liable for any losses or liabilities resulting from Buyer’s
investigations uncovering the existence of any environmental contamination or any other defects or
conditions which adversely impact the Property, except to the extent that Buyer’s investigations
exacerbate such conditions and cause Losses to Seller, and Buyer shall not be liable for any losses
or liabilities resulting from the gross negligence or willful misconduct of Seller or its agents,
representatives or employees. Notwithstanding any provision to the contrary in this Agreement, the
indemnity obligations of Buyer under this Agreement shall survive any termination of this Agreement
or the delivery of the Deed and the transfer of title pursuant to this Agreement.

If on or before 5:00 p.m. Central on July 14, 2008 (the “Approval Date”), Buyer disapproves
any of the Due Diligence Items or the physical and environmental condition of the Property or
otherwise decides in its sole discretion not to acquire the Property for any or no reason by
providing Seller with written notice, this Agreement shall terminate without any further liability
on the part of either party (except for Buyer’s indemnity obligations set forth in paragraph 4
above). In the event of such termination, the Initial Deposit (which amount shall be credited to
Seller), shall be returned to Buyer after Buyer returns to Seller all Due Diligence Items and any
copies of same. If by 5:00 p.m. Central on the Approval Date Buyer approves the Due Diligence
Items and the physical and environmental condition of the Property by providing Seller with written
notice, then this Agreement shall remain in full force and effect, Buyer shall deposit the
Additional Deposit as set forth in paragraph 2(b) above, and the Deposit shall be held by the Title
Company and credited to Seller at Closing as provided herein. If by 5:00 p.m. Central on the
Approval Date Buyer does not waive or deem satisfied in writing the Due Diligence Items and the
physical and environmental condition of the Property, there shall be a conclusive presumption that
Buyer has approved the Due Diligence Items and the physical and environmental condition of the
Property, this Agreement shall remain in full force and effect, Buyer shall deposit the Additional
Deposit as set forth in paragraph 2(b) above, and the Deposit shall be held by the Title Company
and credited to Seller at Closing as provided herein.

5. Buyer’s Conditions to Closing. The following conditions are conditions precedent
to Buyer’s obligation to purchase the Property:

(a) Seller maintaining the Property in its present condition until Closing, reasonable wear
and tear excepted. In the event that, prior to Closing, the Property, or any part thereof, is
destroyed or materially damaged, and such damage exceeds Two Hundred Fifty Thousand and 00/100
Dollars ($250,000.00), or if condemnation proceedings are commenced against the Property, Buyer
shall have the right, exercisable by giving notice of such decision to Seller within ten (10)
business days after receiving written notice of such damage, destruction or condemnation
proceedings, to terminate this Agreement, in which case neither party shall have any further rights
or obligations hereunder. In the event of such termination, the Deposit shall be returned to
Buyer. If Buyer elects to accept the Property in its then condition, all proceeds of insurance or
condemnation awards payable to Seller by reason of such damage, destruction or condemnation shall
be paid or assigned to Buyer and Seller shall credit the Purchase Price to the extent of any
deductible under any policies of insurance, which credit shall not exceed the amount of such
damages, and Seller shall not compromise, settle or adjust any claims to such proceeds or awards
without Buyer’s prior written consent. In the event the casualty damage to the Property is Two
Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) or less, Seller shall have the option to
repair or replace such damage prior to Closing. In the event Seller is unwilling or unable to
repair or replace such damage, Seller shall, within three (3) business days of its determination of
the amount of such damage, notify Buyer of such fact (“Seller’s Notice”) and Buyer shall have the
right, exercisable by giving Seller notice within ten (10) business days after receiving Seller’s
Notice, either to (i) terminate this Agreement, in which case neither party shall have any further
rights or obligations hereunder except any indemnification obligations of Buyer, and the Deposit
shall be returned to Buyer and any documents shall be returned to the party depositing the same, or
(ii) to accept the Property in its then condition and proceed with the purchase, in which case
Buyer shall accept payment or assignment of applicable insurance proceeds, if any, from policies of
insurance maintained and paid for by Seller covering the Property up to the amount necessary to
make the necessary repairs or restorations and Seller shall credit the Purchase Price to the extent
of any deductible under any policies of insurance, which credit shall not exceed the amount of such
damages. If Buyer elects to proceed under clause (ii) above, Seller shall not compromise, settle
or adjust any claims to such proceeds or awards without Buyer’s prior written consent.

(b) Delivery by Seller at Closing of the Deed and the other items described in Section 7(b)
hereof.

(c) Performance by Seller as and when required by this Agreement of each and every term,
covenant, condition and agreement required to be performed by Seller pursuant to this Agreement.

(d) Neither Seller nor any agent, representative or employee of Seller shall have introduced
any hazardous substances on the Property other than those substances, if any, present as of the
Approval Date, or as the same may be found in standard office products or cleaning materials in
reasonable quantities and in compliance with all laws.

In the event that the conditions set forth above in this paragraph 5 are not satisfied (and
Buyer is not otherwise in default of this Agreement), Buyer may terminate this Agreement, subject
to paragraph 2(d) hereof, or waive satisfaction of the condition and close escrow in either
instance by giving written notice to Seller. In the event of such termination, for reasons
described in (b) – (c) above, the Deposit shall be returned to Buyer.

6. Seller’s Conditions to Closing. The following conditions are conditions precedent
to Seller’s obligation to sell the Property:

(a) The approval of the applicable committee of Seller (the “Committee”), which approval Buyer
acknowledges Seller will not seek until the Approval Date has passed and Buyer has failed to
exercise its right of termination of this Agreement under paragraph 4. Seller makes no
representation with regard to the likelihood of approval of this Agreement or the transaction
contemplated herein by its Committee. Seller shall have a period of ten (10) business days after
the Approval Date to obtain such approval by its Committee. If for any reason Seller’s Committee
does not approve this Agreement or the transaction contemplated herein, this Agreement shall
terminate, the Title Company shall return the Deposit to Buyer and neither party shall have any
further obligations or rights hereunder.

(b) Delivery by Buyer at Closing of the Purchase Price and the executed Assignment and
Assumption of Lessor’s Interest in Leases in the form attached hereto as Exhibit B.

(c) Performance by Buyer as and when required by this Agreement of each and every term,
covenant, condition and agreement required to be performed by Buyer pursuant to this Agreement.

In the event that the conditions in this paragraph 6 are not satisfied, Seller may elect, at
its sole discretion, to terminate this Agreement or waive satisfaction of the condition and close
escrow. In the event of such termination, for reasons described in (b) or (c) above, the Deposit
shall be retained by Seller and shall be non-refundable to Buyer.

7. The Closing.

(a) The Closing hereunder shall be held and delivery of all items to be made at the Closing
under the terms of this Agreement shall be made at the offices of the Title Company on August 15,
2008, or such other date prior thereto as Buyer and Seller may mutually agree in writing; provided,
however, should such date fall during the final two (2) business days of any calendar month, the
date shall automatically be extended to the first business day of the following calendar month such
that Closing will not occur during the final two (2) business days of any calendar month (the
“Closing Date”). Except as otherwise provided herein, such date may not be extended without the
prior written approval of both Seller and Buyer. In the event the Closing does not occur on or
before the Closing Date, the Title Company shall, subject to the provisions of paragraph 2, and
unless it is notified by both parties to the contrary, within three (3) business days after the
Closing Date, return to the depositor thereof items which may have been deposited pursuant to this
Agreement. Any such return shall not, however, relieve either party hereto of any liability it may
have for its wrongful failure to close.

(b) At or before the Closing, Seller shall deliver to escrow the following:

(i) the Deed conveying to Buyer the Property as required by paragraph 3 above;

(ii) originals or copies of all leases (and amendments thereto, if any) (the “Leases”) and
lease files in Seller’s actual and physical possession covering any portion of the Property, any
security deposits relating thereto in Seller’s possession, and an executed Assignment and
Assumption of Lessor’s Interest in Leases in the form attached hereto as Exhibit B;

(iii) Seller’s Non-Foreign Certification in the form attached as Exhibit C;

(iv) notices to the tenants at the Property in the form attached as Exhibit D, executed by
Seller;

(v) originals or copies of (i) the Service Contracts that have not been terminated and are in
Seller’s or its property manager’s possession (and amendments thereto, if any), (ii) certificates
of occupancy and other instruments evidencing applicable governmental approvals in Seller’s
possession and (iii) any and all guaranties and warranties used or made in connection with the
operation, construction, improvement, alteration or repair of the Property, and an original,
executed Assignment of Warranties, Guaranties and Service Contracts in the form attached hereto as
Exhibit G;

(vi) an executed Bill of Sale in the form attached hereto as Exhibit I;

(vii) any keys in the possession of Seller to all locks located in the Property;

(viii) reasonable proof of the due authorization, execution and delivery by Seller of this
Agreement and the documents delivered by Seller pursuant hereto;

(ix) a rent roll dated as of the business day immediately preceding the Closing Date, prepared
by Seller in the ordinary course of business for the ownership and operation of a residential
apartment complex;

(x) the Certificate (as defined in Section 8(a)).

Buyer may waive compliance on Seller’s part under any of the foregoing items by an instrument
in writing.

(c) At or before the Closing, Buyer shall deliver to escrow the balance of the Purchase Price
(as may be adjusted pursuant to this Agreement) and an executed Assignment and Assumption of
Lessor’s Interest in Leases in the form attached hereto as Exhibit B.

(d) Seller and Buyer shall each deposit such other instruments as are reasonably required by
the escrow holder to close the escrow and consummate the purchase of the Property in accordance
with the terms hereof.

(e) Prorations 

(i) In each proration set forth below, the portion thereof applicable to the period beginning
at 12:01 a.m. on the date the Deed is recorded shall be credited to Buyer and the portion thereof
applicable to the period ending at such time shall be credited to Seller. Prorations shall be
calculated on the basis of a 366-day year.

(A) Collected Rent. All collected rent and other collected income (and any applicable
state or local tax on rent) under Leases in effect on the Closing Date shall be prorated as of the
Closing. Buyer shall be credited with any rent and other income collected by Seller before Closing
but applicable to any period of time after Closing. Rents unpaid for the month in which Closing
occurs shall be prorated. Uncollected rent and other income that are more than thirty (30) or more
days past due shall not be prorated. Any rent received by Seller after the Closing with respect to
time periods after the Closing shall be delivered to Buyer within ten (10) days of Seller’s
receipt. Buyer shall apply rent and other income from tenants that are collected within ninety
(90) days after the Closing first to the obligations then owing to Buyer for its period of
ownership and to those reasonable attorney fees incurred by Buyer in collecting said amount,
remitting the balance, if any, to Seller. Buyer will make reasonable efforts, without suit, to
collect any rents from tenants in occupancy at Closing applicable to the period before Closing,
provided that at or prior to Closing Seller delivers a schedule of rent delinquencies to Buyer.
Seller may pursue collection as to any rent not collected by Buyer within six (6) months following
the Closing Date for rents that are due and owing to Seller for the period prior to Closing,
provided that Seller shall have no right to terminate any Lease or any tenant’s occupancy under any
Lease in connection therewith. Seller is not restricted in any way from collecting any rent or
other income owed by past tenants who are no longer in occupancy at Closing.

(B) Taxes and Assessments. Real estate taxes and assessments imposed by governmental
authority that are not yet due and payable shall be initially prorated as of the Closing based upon
the most recent ascertainable assessed values and tax rates, but subject to reproration upon
issuance of the actual bill therefor to effectuate the actual proration. Seller shall receive a
credit for any taxes and assessments paid by Seller and applicable to any period after the Closing.
All refunds or tax savings relating to real estate taxes shall inure to the benefit of Seller to
the extent such refunds or tax savings relate to any period for which Seller owned the Property.
Buyer shall remit to Seller any such refund or tax savings relating to such period within five (5)
business days of Buyer’s receipt, after deducting any amounts due to tenants under the Leases. Any
additional taxes relating to the year of Closing or prior years arising out of a change in the use
of the Property or a change in ownership shall be assumed by Buyer effective as of Closing and paid
by Buyer when due and payable, and Buyer shall indemnify Seller from and against any and all such
taxes, which indemnification obligation shall survive the Closing. Buyer shall receive a credit
for any taxes and assessments not paid as of the Closing covering any portion of the period prior
to Closing.

(C) Final Adjustment After Closing. If final prorations cannot be made at Closing for
any item being prorated under this subsection (e), then Buyer and Seller agree to allocate such
items on an accrual basis as soon as invoices or bills are available, with final adjustment to be
made as soon as practicable after Closing except for real estate taxes, which shall be reprorated
when final bills are issued. Income and expenses shall be received and paid by the parties on an
accrual basis with respect to their period of ownership. Payments in connection with the final
adjustment shall be due within thirty (30) days of written notice. Each party shall have
reasonable access to, and the right to review the other party’s supporting documentation to confirm
the final prorations (at the cost and expense of the first party); provided at least five (5)
business days advance notice is given by the reviewing party to the reviewed party.

(ii) Leasing Commissions. Seller shall pay any finder’s fee or leasing commissions
owed for the existing term of existing Leases or provide Buyer a credit at Closing.

(iii) Tenant Deposits. All tenant security deposits and pet, cleaning or similar
deposits paid under the Leases actually received by Seller (and interest thereon if required by law
or contract to be earned thereon) and not theretofore applied to tenant obligations under the
Leases shall be transferred or credited to Buyer at Closing or placed in escrow if required by law.
As of the Closing, Buyer shall assume Seller’s obligations related to such tenant security
deposits. Buyer will indemnify, defend, and hold Seller harmless from and against all demands and
claims made by tenants with respect to any security deposits that are actually transferred or
credited to Buyer as of the day of such transfer or credit, and will reimburse Seller for all
reasonable attorneys’ fees incurred as a result of any such claims or demands as well as for all
loss, expenses, verdicts, judgments, settlements, interest, costs and other expenses incurred or
that may be incurred by Seller as a result of any such claims or demands by tenants that arise
after such deposits are actually transferred or credited to Buyer.

(iv) Utility Deposits. Buyer shall take all steps necessary to effectuate the
transfer of all utilities to its name as of the Closing Date, and where necessary, post deposits
with the utility companies. Seller shall use good faith efforts to ensure that all utility meters
are read as of the Closing Date. Seller shall be entitled to recover any and all deposits posted
by Seller and held by any utility company as of the Closing Date.

(v) Insurance. The fire, hazard, and other insurance policies relating to the
Property shall be cancelled by Seller as of the Closing Date and shall not, under any
circumstances, be assigned to Buyer. All unearned premiums for fire and any additional hazard
insurance premium or other insurance policy premiums with respect to the Property shall be retained
by Seller.

(vi) Service Contracts and Other Expenses. The following other items shall be
adjusted, prorated and credited as applicable: (1) amounts due and prepayments under the Service
Contracts; (2) assignable license and permit fees; (3) any previously paid signing bonus or similar
payment relating to any laundry room, cable television, telephone or similar agreement in effect as
of the Closing; and (4) other expenses of operation and similar items.

(f) The costs incurred in this transaction shall be allocated as follows:

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

(ii) Buyer shall pay standard rates for the Title Policy. Buyer shall pay for any special
endorsements to the Title Policy and any extended coverage.

(iii) Buyer shall pay the cost of any transfer taxes and recording fees applicable to the
sale.

(iv) Buyer shall pay the cost of any update of the Survey.

(v) Buyer and Seller shall split any escrow fees and/or costs.

(vi) Seller shall pay all costs incurred to prepay and release any existing financing
(including any prepayment fees or penalties), if any. Buyer shall pay all costs and expenses
related to any financing procured by Buyer.

(vii) Each party shall pay its own legal fees and expenses.

8. Representations and Warranties.

(a) Seller hereby represents and warrants to Buyer as follows:

(i) Seller is a limited liability company duly organized and validly existing under the laws
of the State of Delaware and is in good standing under the laws of the State in which the Property
is located.

(ii) This Agreement and all closing documents executed by Seller which are to be delivered to
Buyer at the Closing are or at the Closing will be duly authorized, executed, and delivered by
Seller, are or at the Closing will be legal, valid, and binding obligations of Seller, are
sufficient to convey title, and do not violate any provisions of any agreement to which Seller is a
party or to which it is subject.

(iii) Seller and each person or entity owning an interest in Seller is (a) (i) not currently
identified on the Specially Designated Nationals and Blocked Persons List maintained by the Office
of Foreign Assets Control, Department of the Treasury (“OFAC”) and/or on any other similar list
maintained by OFAC pursuant to any authorizing statute, executive order or regulation
(collectively, the “List”), and (ii) not a person or entity with whom a citizen of the United
States is prohibited to engage in transactions by any trade embargo, economic sanction, or other
prohibition of United States law, regulation, or Executive Order of the President of the United
States, (b) none of the funds or other assets of Seller constitute property of, or are beneficially
owned, directly or indirectly, by any Embargoed Person (as hereinafter defined), (c) no Embargoed
Person has any interest of any nature whatsoever in Seller (whether directly or indirectly), and
(d) Seller has implemented procedures, and will consistently apply those procedures, to ensure the
foregoing representations and warranties remain true and correct at all times.

The term “Embargoed Person” means any person, entity or government subject to trade
restrictions under U.S. law, including but not limited to, the International Emergency Economic
Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and
any Executive Orders or regulations promulgated thereunder with the result that the investment in
Seller is prohibited by law or Seller is in violation of law.

Seller also shall require, and shall take reasonable measures to ensure compliance with the
requirement, that no person who owns any other direct interest in Seller is or shall be listed on
any of the Lists or is or shall be an Embargoed Person. This Section shall not apply to any person
to the extent that such person’s interest in Seller is through a U.S. Publicly-Traded Entity. As
used in this Agreement, “U.S. Publicly-Traded Entity” means a person (other than an individual)
whose securities are listed on a national securities exchange, or quoted on an automated quotation
system, in the United States, or a wholly-owned subsidiary of such a person.

(iv) Except as otherwise disclosed to Buyer in the Due Diligence Items, to Seller’s Knowledge
(as hereinafter defined), there are no liens, security interests, covenants, conditions,
restrictions, rights-of-way, easements or encumbrances of any kind or character whatsoever,
encumbering the Property other than those set forth in the Title Report and/or Survey.

(v) Except as set forth on Exhibit L, there is no pending (or to Seller’s knowledge,
threatened) litigation, action or other legal proceeding which materially affects the use and
operation of the Property or Seller’s ability to fulfill all of its obligations under this
Agreement.

(vi) Except as otherwise provided in the Due Diligence Items, to Seller’s Knowledge, Seller
has not received any written notice from a governmental entity indicating that the Property does
not comply with all laws, ordinances, codes, rules and regulations.

(vii) Seller is not a foreign corporation, foreign partnership, foreign trust or foreign
estate (as defined in the Internal Revenue Code (“Code”)).

(viii) Except as otherwise provided in the Due Diligence Items, to Seller’s Knowledge, there
is no existing or threatened condemnation action with respect to the Property.

(ix) At the Closing, there will be no outstanding contracts made by Seller for the
construction or repair of any improvements to the Improvements which have not been fully paid, and
Seller shall cause to be discharged all mechanics’ or materialmen’s liens arising from any labor or
materials furnished to the Improvements prior to Closing.

(x) To Seller’s Knowledge, Seller has provided true and correct copies of all leases and
amendments thereto pertaining to the Property. To Seller’s Knowledge, the rent roll dated June 18,
2008 and previously delivered to Buyer was prepared by Seller in Seller’s ordinary course of
business as the owner and operator of a residential apartment complex.

(xi) To Seller’s Knowledge, the Service Contracts that Buyer has reviewed or may review at
Seller’s office at the Property are in full force and effect, without material default by any party
and without any claims made for the right of setoff, except as expressly provided by the terms of
the Service Contracts or as disclosed to Buyer in writing by Seller. To Seller’s Knowledge, Seller
has made available to Buyer true and correct copies of all Service Contracts and amendments thereto
pertaining to the Property which have been made available to Seller by Seller’s property manager or
which are used and relied upon by Seller in its ordinary course of business in owning, operating
and managing the Property.

The foregoing representations and warranties shall be in full force and effect on the
Agreement Date and at the Closing. Such representations and warranties shall be reaffirmed and
restated by Seller as of the Closing Date on a certificate in the form attached hereto as Exhibit M
(the “Certificate”) updating the representations and warranties of Seller through Closing, which
Certificate Seller covenants to deliver to Buyer at Closing. If any material change in any of the
foregoing representations or warranties or any material breach thereof occurs, Seller shall, upon
discovery of same, give prompt written notice of such change or breach to Buyer in writing at any
time and from time to time prior to the Closing (each a “Disclosure” and collectively, the
“Disclosures”), which Disclosures shall thereafter be updated by Seller prior to the Closing Date
(and the Certificate shall at Closing be updated by such Disclosures, subject to Buyer’s
termination right described below). If any change in any of the foregoing representations or any
breach of any of the foregoing warranties or agreements is a material change or breach, and Seller
does not elect to cure such matters within twenty (20) business days after Seller’s receipt of a
written request from Buyer to do so, or does not agree in writing within said twenty (20) business
day period to indemnify Buyer against and hold Buyer harmless from any and all losses, liabilities,
claims, costs and expenses incurred by Buyer as a result thereof, then, notwithstanding anything
contained herein to the contrary, Buyer, at its sole option, and as its sole remedy, may either (a)
close and consummate the transaction contemplated by this Agreement, without reduction in the
Purchase Price or (b) terminate this Agreement by written notice to Seller, whereupon the Title
Company shall return the Deposit to Buyer and the parties shall have no rights or obligations
hereunder, except for those which expressly survive any such termination. Such election shall be
made by Buyer within five (5) business days after receipt of notice from Seller that Seller has
elected not to cure or indemnify Buyer with respect to such material change or breach. Failure of
Buyer to deliver to Seller a notice of such election of Buyer within such five (5) business days
period shall conclusively be construed as Buyer’s having elected alternative (a) above. The
Closing Date shall be postponed automatically, if necessary, to permit the full running of such
twenty-five (25) day period. Notwithstanding the foregoing, in the event Seller willfully caused
the material change or breach, Seller shall be in default hereunder and Buyer shall have the rights
and remedies set forth in Section 2(d) hereof. The term “Seller’s Knowledge” as used herein means
the actual knowledge (and not the implied or constructive knowledge) without any duty of
investigation or inquiry of the following person: Aaron Russell, Asset Manager. All
representations and warranties made by Seller in this Section 8(a) shall survive the Closing for
six (6) months and written notification of any claim arising therefrom must be received in writing
by Seller within such six (6) month period or such claim shall be forever barred and Seller shall
have no liability with respect thereto. The aggregate liability of Seller, with respect to all
claims made by Buyer under Section 8(a) of this Agreement, shall not exceed Five Hundred and 00/100
Dollars ($500,000.00). Notwithstanding the foregoing, no representation, warranty, covenant or
agreement made in this Agreement by Seller shall survive the Closing relative to any matters
disclosed in the Due Diligence Items or known to Buyer to be untrue or incorrect and of which
Seller is not notified by Buyer prior to or at the Closing. Buyer is deemed to have constructive
knowledge of all information contained in the Due Diligence Items that could be reasonably inferred
from such Due Diligence Items. Buyer further acknowledges it has a duty of investigation and
inquiry in determining whether or not the Property is suitable for its purpose.

(b) Buyer hereby represents and warrants to Seller as follows: (i) Buyer is a limited
liability company, duly organized and validly existing under the laws of the Commonwealth of
Virginia and is or will be in good standing under the laws of the State in which the Property is
located as of the Closing Date; (ii) all documents executed by Buyer which are to be delivered to
Seller at Closing are or at the Closing will be duly authorized, executed, and delivered by Buyer,
and are or at the Closing will be legal, valid, and binding obligations of Buyer, and do not and at
the Closing will not violate any provisions of any agreement to which Buyer is a party or to which
it is subject; (iii) Buyer shall furnish all of the funds for the purchase of the Property (other
than funds supplied by institutional lenders which will hold valid mortgage liens against the
Property) and such funds will not be from sources of funds or properties derived from any unlawful
activity by Buyer; and (iv) Buyer is a sophisticated investor with substantial experience in
investing in assets of the same type as the Property and has such knowledge and experience in
financial and business matters that Buyer is capable of evaluating the merits and risks of an
investment in the Property.

(c) Buyer represents and warrants that (a) Buyer (i) is not currently identified on the List,
and (ii) is not a person or entity with whom a citizen of the United States is prohibited to engage
in transactions by any trade embargo, economic sanction, or other prohibition of United States law,
regulation, or Executive Order of the President of the United States, (b) none of the funds or
other assets of Buyer constitute property of, or are beneficially owned, directly or indirectly, by
any Embargoed Person (as hereinafter defined), and (c) Buyer has implemented procedures, and will
consistently apply those procedures, to ensure the foregoing representations and warranties remain
true and correct at all times.

Buyer also shall require, and shall take reasonable measures to ensure compliance with the
requirement, that no person who owns any other direct interest in Buyer is or shall be listed on
any of the Lists or is or shall be an Embargoed Person. This Section shall not apply to any person
to the extent that such person’s interest in Buyer is through a U.S. Publicly-Traded Entity.

9. Covenants of Seller. Seller hereby covenants with Buyer, from the Agreement Date
until the Closing or earlier termination of this Agreement, as follows:

(a) Operation of Property. Seller shall use reasonable efforts to operate and
maintain the Property in a manner generally consistent with the manner in which Seller has operated
and maintained the Property prior to and on the date hereof. As of Closing, all
management contracts pertaining to the Property shall have been terminated by Seller. Prior to and
as of the Closing, Seller shall cause all vacant units to be made rent-ready and available for
occupancy based on standards and methods used by Seller prior to execution of this Agreement and
shall cause all appliances in all vacant units to be clean and in working order (the “Appliance
Standards”). Buyer shall receive a credit of Seven Hundred Fifty and No/100 Dollars ($750.00) for
each unit that became vacant on a date that is five (5) or more business days prior to Closing and
that is not rent-ready (as reasonably determined by Buyer based on standards customary in the
industry) and available for occupancy as of the day of Closing, provided that such $750.00 shall
not include any costs to cause the appliances to meet the Appliance Standards. For purposes of
this paragraph, “rent ready” shall mean maintaining the apartments in good condition and repair,
including the cleaning, replacement, and repair of all apartment components (such as carpets)
reasonably required in Seller’s discretion, considering Seller’s past practices for the Property,
to make each apartment ready for re-lease.

(b) Execution of New Leases and Renewals. Seller shall use reasonable efforts to
negotiate leases or Lease renewals for unrented apartment units in the Improvements and shall
maintain an advertising and marketing program for apartment units in the Improvements consistent
with Seller’s past practices at the Property. Unless Buyer agrees otherwise in writing, any new
leases or renewals for such apartment units entered into by Seller after the Agreement Date until
the Closing or earlier termination of this Agreement shall be on Seller’s standard apartment lease
or renewal form for the Property, and shall be for terms of no less than six (6) months and no more
than twelve (12) months. Following the Approval Date, no new leases or leases or lease renewals
shall be executed by Seller without the prior written consent of Buyer. In all cases, Seller shall
retain the discretion to set rent rates, concessions and other terms of occupancy, provided Seller
shall only enter into new leases or renewals in the ordinary course of business taking into account
Seller’s then-current good faith evaluation of market conditions. Each such new lease or renewal
entered into by Seller shall constitute a “Lease” for purposes of this Agreement.

(c) Maintenance of Insurance. Seller shall keep the Improvements insured against loss
or damage (including rental loss) by fire and all risks covered by Seller’s insurance that is
currently in force, provided that Seller may make adjustments in Seller’s insurance coverage for
the Property which are consistent with Seller’s general insurance program for Seller’s other
apartment properties as in effect from time to time. Seller shall give Buyer prompt notice of any
fire or other casualty affecting the Property.

(d) Enforcement of Existing Leases. Seller shall perform the landlord’s material
obligations arising prior to Closing to the tenants under the Leases and enforce the material
obligations of the tenants under the Leases, in each case accordance with the current management
standards of Seller for its apartment properties, provided that Seller shall not apply any security
deposits against rent delinquencies or other Lease defaults with respect to tenants who remain
tenants of the Property without notice to and the prior written consent of Buyer. Seller shall
terminate and modify Leases in accordance with Seller’s customary practices.

(e) Provide Copies of Notices. Seller shall furnish Buyer with a copy of all written
notices received by Seller from any governmental authority of any violation of any law, statute,
ordinance, regulation or order of any governmental or public authority relating to the Property
within five (5) business days following Seller’s receipt thereof.

(f) No Encumbrances or Actions. Seller shall not sell, mortgage, pledge, hypothecate
or otherwise transfer or dispose of all or any part of the Property or any interest therein, nor
shall Seller initiate, consent to, approve or otherwise take any action with respect to zoning or
any other governmental rules or regulations presently applicable to all or any part of the
Property. Seller shall make all payments of principal and interest required under any mortgages
encumbering the Property due prior to Closing.

(g) Service Contracts. Without the prior written consent of Buyer, Seller shall not
terminate, modify, extend, amend or renew any Service Contract or enter into any new Service
Contract except in accordance with Seller’s customary business practices and that will not be
cancelable by Buyer without penalty upon no greater than thirty (30) days notice.

(h) Operating Statements and Rent Rolls. Seller shall, upon Buyer’s written request,
deliver updated operating statements and rent rolls to Buyer no more frequently than once per month
until Closing.

10. Condition of Property. At or before the Approval Date, Buyer will have approved
the physical and environmental characteristics and condition of the Property, as well as the
economic characteristics of the Property. Buyer hereby waives any and all defects in the physical,
environmental and economic characteristics and condition of the Property which would be reasonably
disclosed by such inspection. Buyer further acknowledges that neither Seller nor any of Seller’s
officers or directors, nor Seller’s employees, agents, representatives, or any other person or
entity acting on behalf of Seller (hereafter, for the purpose of this paragraph, such persons and
entities are individually and collectively referred to as the “Seller”), except as otherwise
expressly provided in paragraph 8(a) herein, have made any representations, warranties or
agreements (express or implied) by or on behalf of Seller as to any matters concerning the
Property, the economic results to be obtained or predicted, or the present use thereof or the
suitability for Buyer’s intended use of the Property, including, without limitation, the following:
suitability of the topography; the availability of water rights or utilities; the present and
future zoning, subdivision and any and all other land use matters; the condition of the soil,
subsoil, or groundwater; the purpose(s) to which the Property is suited; drainage; flooding; access
to public roads; or proposed routes of roads or extensions thereof. Buyer acknowledges and agrees
that the Property is to be purchased, conveyed and accepted by Buyer in its present condition, “as
is” and that no patent or latent defect in the physical or environmental condition of the Property
whether or not known or discovered, shall affect the rights of either party hereto. Any documents
furnished to Buyer by Seller relating to the Property including, without limitation, rent rolls,
service agreements, management contracts, maps, surveys, studies, pro formas, reports and other
information, including but not limited to the Due Diligence Items, shall be deemed furnished as a
courtesy to Buyer but without warranty from Seller. All work done in connection with preparing the
Property for the uses intended by Buyer including any and all fees, studies, reports, approvals,
plans, surveys, permits, and any expenses whatsoever necessary or desirable in connection with
Buyer’s acquiring, developing, using and/or operating the Property shall be obtained and paid for
by, and shall be the sole responsibility of Buyer. Buyer has investigated and has knowledge of
operative or proposed governmental laws and regulations including land use laws and regulations to
which the Property may be subject and shall acquire the Property upon the basis of its review and
determination of the applicability and effect of such laws and regulations. Buyer has neither
received nor relied upon any representations concerning such laws and regulations from Seller.

Except for claims of fraud or willful misrepresentation on the part of Seller, and except for
those representations and warranties expressly set forth herein, Buyer, on behalf of itself and its
employees, agents, successors and assigns attorneys and other representatives, and each of them,
hereby releases Seller from and against any and all claims, demands, causes of action, obligations,
damages and liabilities of any nature whatsoever, whether alleged under any statute, common law or
otherwise, directly or indirectly, arising out of or related to the condition, operation or
economic performance of the Property.

The provisions of this Section 10 shall survive the Closing.

By signing in the space provided below in this paragraph 10, Buyer acknowledges that it has
read and understood the provisions of this paragraph 10.

	 
	BUYER:
	GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited liability company

By: /s/ Francene LaPoint

Francene LaPoint

Its: Chief Financial Officer

11. Possession. Buyer shall have the right of possession on the Closing Date,
provided, however, that Seller shall allow authorized representatives of Buyer reasonable access to
the Property prior to the Closing Date for the purposes of satisfying Buyer with respect to
satisfaction of any conditions precedent to the Closing contained herein.

12. Miscellaneous.

(a) Notices. Any notice required or permitted to be given under this Agreement shall
be in writing and shall be deemed to be an adequate and sufficient notice if given in writing and
service is made either by (i) personal delivery, in which case the service shall be deemed received
the date of such personal delivery, (ii) nationally recognized overnight air courier service, next
day delivery, prepaid, in which case the notice shall be deemed to have been received one (1)
business day following delivery to such nationally recognized overnight air courier service, or
(iii) at the time of being sent by facsimile if delivery thereof is confirmed by sender’s receipt
of a transmission report, generated by sender’s facsimile machine, which confirms that the
facsimile was successfully transmitted in its entirety and provided the facsimile was forwarded
prior to 5:00 p.m. Central, and to the following addresses or facsimile numbers:

	 
	If to Seller:

	 

	Apartments at Canyon Ridge, LLC
c/o Principal Real Estate Investors, LLC
801 Grand Avenue
Des Moines, Iowa 50392
Attn: Rick Massa
Fax: 866.850.4022
Phone: 515.248.2759

	with a copy to:

	Principal Real Estate Investors, LLC
801 Grand Avenue
Des Moines, Iowa 50392-5590
Attn: Johnna E. Donahue
Fax: 866.850.4019
Phone: 515.235.5443
and a copy to:

	Thompson Hine LLP
10 West Broad Street, Suite 700
Columbus, Ohio 43215-3435
Attn: Darrel R. Davison
Fax: 614.469.3361
Phone: 614.469.3231

	 
	If to Buyer:

	 

	Grubb & Ellis Realty Investors, LLC

1606 Santa Rosa Road, Suite 109

Richmond, Virginia 23229

Attn: Jorge De Figueiredo

Fax: 804.285.1376

Phone: 804.285.1082

	with a copy to:

	McGuire Woods LLP

101 West Main Street

Suite 9000

Norfolk, Virginia 23510

Attn: Karen L. Duncan

Fax: 757.640.3958

Phone: 757.640.3725

or such other address as either party may from time to time specify in writing to the other.

(b) Brokers and Finders. Neither party has had any contact or dealings regarding the
Property, or any communication in connection with the subject matter of this transaction, through
any licensed real estate broker, entity, agent, commission salesperson, or other person who will
claim a right to compensation or a commission or finder’s fee as a procuring cause of the sale
contemplated herein, except for Colliers International, whose commission shall be paid by Seller.
In the event that any company, firm, broker, agent, commission salesperson or finder perfects a
claim for a commission or finder’s fee based upon any such contract, dealings or communication, the
party through whom the company, firm, broker, agent, commission salesperson or finder makes his
claim shall be responsible for said commission or fee and all costs and expenses (including
reasonable attorneys’ fees) incurred by the other party in defending against the same. No
commission shall be paid or become payable unless the Closing actually occurs. The provisions of
this subparagraph (b) shall survive Closing and any termination, cancellation or rescission of this
Agreement.

(c) Successors and Assigns. This Agreement shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors, heirs, administrators and assigns
and may be assigned by Buyer to an affiliated entity provided that (i) Buyer shall remain jointly
and severally liable for the obligations contained in this Agreement; (ii) Buyer and any assignee,
by accepting assignment of this Agreement, expressly agrees to defend and indemnify Seller from any
litigation arising out of the assignment; (iii) no further assignment shall occur without the prior
written consent of Seller; (iv) written notice of the assignment, including the name of the
Assignee, is provided to Seller no fewer than five (5) business days prior to Closing; and (v)
Buyer shall provide to Seller at Closing an Assignment and Assumption of Real Estate Purchase and
Sale Agreement in the form attached hereto as Exhibit F, executed by both Buyer and Assignee (the
“Buyer Assignment”).

(d) Amendments and Terminations. Except as otherwise provided herein, this Agreement
may be amended or modified by, and only by, a written instrument executed by Seller and Buyer.

(e) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the state in which the Property is located.

(f) Merger of Prior Agreements. This Agreement supersedes all prior agreements and
understandings between the parties hereto relating to the subject matter hereof.

(g) Enforcement. In the event either party hereto fails to perform any of its
obligations under this Agreement or in the event a dispute arises concerning the meaning or
interpretation of any provision of this Agreement, the defaulting party or the party not prevailing
in such dispute, as the case may be, shall pay any and all costs and expenses incurred by the other
party in enforcing or establishing its rights hereunder, including, without limitation, court costs
and reasonable attorneys’ fees. Buyer and Seller both acknowledge each has been advised by counsel
as to their respective rights, duties and obligations in this Agreement and have had ample
opportunity to negotiate same. Thus, both Buyer and Seller acknowledge that any ambiguity in this
Agreement should not necessarily be resolved against the drafter of this Agreement.

(h) Time of the Essence. Time is of the essence of this Agreement.

(i) Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed to be an original, but such counterparts when taken together shall constitute but one
Agreement.

(j) Survivability. Except as otherwise provided herein, the covenants contained in
this Agreement shall survive the closing of the purchase and sale and shall not be deemed merged in
the Deed, but shall remain in full force and effect.

(k) No Recordation. Neither Seller nor Buyer shall record this Agreement or
memorandum thereof in or among the land or chattel records of any jurisdiction. The foregoing
shall not affect Buyer’s ability to exercise the remedy of specific performance pursuant to Section
2(d) hereof.

(l) Proper Execution. The submission by Seller to Buyer of this Agreement in unsigned
form shall have no binding force and effect, shall not constitute an option, and shall not confer
any rights upon Buyer or impose any obligations on Seller irrespective of any reliance thereon,
change of position or partial performance until Seller shall have executed this Agreement and the
Deposit shall have been received by the Title Company.

(m) Computation of Time. The time in which any act is to be done under this
Agreement is computed by excluding the first day, and including the last day, unless the last day
is a holiday or Saturday or Sunday, and then that day is also excluded. Unless expressly indicated
otherwise, (a) all references to time shall be deemed to refer to Central time, and (b) all time
periods shall expire at 5:00 p.m. Central time.

(n) Tax-Deferred Exchange. Buyer and Seller agree that, at either Buyer’s or Seller’s
sole election, this transaction shall be structured as an exchange of like-kind properties under
Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and
proposed regulations thereunder. The parties agree that if either wishes to make such election, it
must do so prior to the Closing Date. If either so elects, the other shall reasonably cooperate,
provided any such exchange is consummated pursuant to an agreement that is mutually acceptable to
Buyer and Seller and which shall be executed and delivered on or before the Closing Date. The
electing party shall in all events be responsible for all costs and expenses related to the Section
1031 exchange and shall fully indemnify, defend and hold the other harmless from and against any
and all liability, claims, damages, expenses (including reasonable attorneys’ and paralegal fees
and reasonable attorneys’ and paralegal fees on appeal), proceedings and causes of action of any
kind or nature whatsoever arising out of, connected with or in any manner related to such 1031
exchange that would not have been incurred by the non-electing party if the transaction were a
purchase for cash. The provisions of the immediately preceding sentence shall survive closing and
the transfer of title to subject Property to Buyer. Notwithstanding anything to the contrary
contained in this paragraph: any such Section 1031 exchange shall be consummated through the use of
a facilitator or intermediary so that Buyer shall in no event be requested or required to acquire
title to any property other than the Property.

(o) No Beneficiary. Nothing in this Agreement, expressed or implied, is intended to
confer any right, remedy or benefit upon any person other than the parties hereto and, subject to
any restrictions on assignment contained herein, their respective successors and assigns.

(p) Limitation of Liability. The liability of Principal Life Insurance Company
hereunder is limited to the assets of its Principal U.S. Property Separate Account.

(q) No Disclosure. Except as may be required by law, without the prior written
consent of the other party, neither party shall disclose to any third party the terms of this
Agreement (including, without limitation, purchase price). The provisions of this subsection (q)
shall survive Closing.

(r) Buyer Indemnification. Buyer hereby agrees, as of the Closing Date, to indemnify,
defend and hold Seller harmless from and against any and all Losses which Seller may suffer, incur
or be obligated to perform as a result of Buyer or its assignee converting the form of ownership of
the Real Property to a condominium form of ownership within five (5) years after the Closing Date
and subsequently selling residential condominium units in connection therewith, whether or not any
of such Losses are as a result of claims instituted by condominium unit owners, contract vendees of
condominium units, any condominium association or any other party and whether or not such Losses
relate to the construction of the Property or any other matter whatsoever. In the event Buyer
commences the conversion of the form of ownership of the Real Property to a condominium form of
ownership within five (5) years after the Closing Date, Buyer covenants and agrees to maintain a
minimum net worth of at least One Million and 00/100 Dollars ($1,000,000.00) for the remainder of
such five (5) year period.

(s) Permitted Assignments. Seller shall not assign any of its right, title, claim or
interest in, to or under this Agreement. Buyer may assign any or all of its rights and obligations
under this Agreement to any one or more persons or entities upon notice to Seller; provided,
however, that absent the express agreement of Seller, no such assignment shall release Buyer from
its liabilities hereunder. Buyer may not assign this Agreement except (a) to a Permitted Assignee
(as defined below), or (b) to a Registered Company (as defined below), provided that Buyer and the
Permitted Assignee or Registered Company, as applicable, execute the Buyer Assignment. A
“Permitted Assignee” shall mean any entity directly or indirectly owned or controlled by Buyer or
under common control with Buyer or Buyer’s principals. A “Registered Company” shall mean a
publicly registered company or the subsidiary of a publicly registered company that is managed by,
sponsored by or under common control with Buyer or Buyer’s principals. No assignment shall release
the obligations of Buyer named herein for any obligation under this Agreement prior to the date of
assignment, including but not limited to any such obligation which survives Closing. Seller
acknowledges that Buyer shall have the right, without assigning this Agreement, to cause Seller to
grant title to the Property to up to thirty-five (35) tenants-in-common (the “Nominees”) in lieu of
granting title to the Property to Buyer, provided that (i) Buyer notifies Seller, in writing, at
least ten (10) days prior to the Closing Date that Buyer wishes to cause Seller to grant title to
the Property to the Nominees, along with the names of the Nominees and any other information
reasonably required by Seller to prepare and complete the Deed and any other closing documents to
reflect the vesting of title to the Property in the Nominees, (ii) there is no additional cost,
liability or expense incurred by Seller in connection therewith, (iii) the Closing Date is not
delayed in connection therewith, and (iv) Buyer agrees to and hereby does indemnify and hold Seller
harmless from and against any and all liability, damage, and cost, including reasonably attorneys’
fees, incurred by Seller by virtue of Seller’s granting of title to the Property to the Nominees.
Seller further acknowledges that it has been advised that Buyer may assign this Agreement to a
publicly registered company or the subsidiary of a Registered Company and that in such event the
assignee will be required to make certain filings with the Securities and Exchange Commission (the
“SEC Filings”) that relate to the most recent pre-acquisition fiscal year (the “Audited Year”) and
the current fiscal year through the date of acquisition (the “Stub Period”) for the Property. To
assist the assignee in preparing the SEC Filings, Seller agrees to provide assignee with the
following: (i) rent roll as of the end of the Audited Year and Stub Period, (ii) operating
statements for the Audited Year and Stub Period (iii) cash receipts schedule for each month in the
Audited Year and Stub Period, (iv) access to invoices for expenses and capital improvements in the
Audited Year and Stub Period, (v) check register for the three (3) months following the Audited
Year and Stub Period, (vi) copies of the Leases, (vii) copies of accounts receivable aging as of
the end of the Audited Year and Stub Period along with an explanation for all accounts over thirty
(30) days past due as of the end of the Audited Year and Stub Period, and (vi) an executed
representation letter in the form attached hereto as Exhibit N one (1) business day prior to the
Closing Date. The provisions of the foregoing two (2) sentences shall survive Closing.

[The remainder of this page is intentionally left blank.]

3

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 
	SELLER:
	APARTMENTS AT CANYON RIDGE, LLC, a Delaware limited liability company

By: PRINCIPAL REAL ESTATE INVESTORS, LLC, a Delaware limited liability company,

its authorized signatory

By: /s/ Johnna Donahue

Johnna E. Donahue

Senior Acquisition Consultant

By: /s/ Donna H. Lutcavish

Donna H. Lutcavish

Assistant Managing Director Equity Closing

	BUYER:

	 

	GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited liability company

By: /s/ Francene LaPoint

Francene LaPoint

Its: Chief Financial Officer

	 	 	Buyer’s Tax Identification Number:

33-0802019

4EX-10.2

FIRST AMENDMENT TO

REAL ESTATE PURCHASE AND SALE AGREEMENT

THIS FIRST AMENDMENT TO REAL ESTATE PURCHASE AND SALE AGREEMENT (this “Amendment”) is made as
of this 15th day of August, 2008, by and between APARTMENTS AT CANYON RIDGE, LLC, a Delaware
limited liability company (“Seller”), and GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited
liability company (“Buyer”).

W I T N E S S E T H:

WHEREAS, Seller and Buyer have previously executed that certain Real Estate Purchase and Sale
Agreement dated as of July 10, 2008 (the “Agreement”), regarding certain real property commonly
known as Canyon Ridge Apartments, 3868 Central Pike Road, Hermitage, Tennessee and more
particularly described as set forth in Exhibit A thereto; and

WHEREAS, Seller and Buyer have agreed to make certain modifications to the Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, effective on the
date first set forth above, the parties agree to the foregoing recitals and as follows:

	1.	 	The Closing Date (as defined in paragraph 7(a) of the Agreement) is hereby amended to be
September 15, 2008.

	2.	 	Within two (2) business days of the date of this Amendment, (i) Buyer shall deposit with
Seller an additional non-refundable deposit in the amount of One Million Two Hundred
Seventy-nine Thousand and 00/100 Dollars ($1,279,000.00) by wire transfer of immediately
available funds in U.S. dollars via the federal bank wire transfer system and (ii) the Title
Company shall disburse the existing Deposit, in the amount of Seven Hundred Twenty-one
Thousand and 00/100 Dollars ($721,000.00), to Seller.

	3.	 	Unless otherwise defined in this Amendment, the defined terms used herein shall have the
meanings defined in the Agreement.

	4.	 	Except as modified by the terms of this Amendment, the Agreement shall remain in full force
and effect.

	5.	 	This Amendment may be executed in multiple counterparts via facsimile or other electronic
means via e-mail, each of which shall constitute an original, but all of which together shall
constitute but one instrument.

1

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.

	 
	SELLER:

	 

	APARTMENTS AT CANYON RIDGE, LLC, a Delaware limited liability company

By: PRINCIPAL REAL ESTATE INVESTORS, LLC, a Delaware limited liability company,

its authorized signatory

By: /s/ Johnna Donahue

Johnna E. Donahue

Senior Acquisition Consultant

By: /s/ Cara A. Underwood

Cara A. Underwood

Investment Director-Asset Management

	BUYER:

	 

	GRUBB & ELLIS REALTY INVESTORS, LLC, a Virginia limited liability company

By: /s/ Jeff Hanson

Its: President & CIO

2

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