Document:

Construction Loan Agreement
                                                                Exhibit 10.16.5

                           CONSTRUCTION LOAN AGREEMENT

DATE:             April 25, 2001.

LENDER:           Compass Bank
                  P.O. Box 10566
                  Birmingham, Alabama 35296
                  Attention:  Commercial Real Estate Department

BORROWER:         Roberts Properties Residential, L.P.

                  Type of entity:  Georgia limited partnership

                           Address: 8010 Roswell Road
                                            Suite 120
                             Atlanta, Georgia 30350

GUARANTORS:       Those Guarantors as may be specified in the Commitment Letter.

PROJECT:          250 unit Apartment  Project,  located in Gwinnett County,
                  Georgia on the real property described on Exhibit A hereto

LOAN AMOUNT:      $17,000,000

COMMITMENT
LETTER:           Commitment Letter from Lender to Borrower dated April 4, 2001.
                  A copy of the Commitment Letter is attached as Exhibit C
                  hereto and made a part hereof.
<PAGE>

Construction Loan Agreement

WHEREAS, Lender has agreed to make the Loan to Borrower in accordance with the
terms and conditions set forth in the Commitment Letter.

NOW THEREFOR, in consideration of premises, the mutual promises hereinafter
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties, intending to be legally bound
hereby, agree as follows:

1. Commitment Letter. The Loan shall be made, secured, guaranteed and disbursed
in accordance with the terms and conditions of the Commitment Letter, which
shall survive the closing of the Loan except to the extent modified in the Loan
Documents. Defined terms shall have the meanings given to them in the Commitment
Letter unless otherwise expressly set forth herein.

2. Construction. Borrower shall construct and complete the Project as set forth
in the Commitment Letter.

3. Conditions for Final Disbursement. In addition to the conditions contained in
the Commitment Letter, prior to and as a condition precedent to Lender's
obligation to make the final disbursement under the Loan, each of the following
conditions shall have been and continue to be fully satisfied:

         (a)      Final Certificates. Borrower shall have exhibited or
                  caused to be exhibited to Lender the final certificate of
                  approval of the various governmental authorities having
                  jurisdiction, including without limitation, a
                  certificate of occupancy, any necessary construction
                  certificates, and certificates of the full payment and
                  discharge of all costs, expenses, contract payments and
                  charges relating to construction; and

         (b)      Substantial Completion. Lender shall have received
                  certification from Lender's inspector of the substantial
                  completion of the Project.

4. Additional Requirements Regarding Disbursements. Lender may require five (5)
business days' notice in writing from Borrower prior to a disbursement under the
Loan. Unless otherwise agreed by Borrower and Lender, all disbursements are to
be made at the office of Lender or at such other place as Lender shall designate
and are to be credited to a construction account with Lender and disbursements
made therefrom upon written request of Borrower and satisfaction of all other
conditions precedent thereto.

5. Certain Disbursements. Prior to the satisfaction of the conditions set forth
herein and in the Commitment Letter, Lender may at its sole option, but shall
have no obligation to, disburse such sums as Lender may elect, including without
limitation amounts owed for expenses to Lender by Borrower.

6. Representations and Warranties of Borrower. In order to induce Lender to
enter into this Agreement and to make the Loan for which provision is made
herein, the Borrower represents and warrants to Lender that:

         (a)      Borrower's Organization and Authority. The Borrower, if not an
                  individual, is a legal entity of the type set forth at the top
                  of page 1 hereof, duly organized, validly existing and in good
                  standing in its state of organization and is qualified or
                  registered, as required by law, and in good standing in all
                  jurisdictions where qualification or registration is
                  necessary. The Borrower and any Guarantor have all requisite
                  corporate, partnership, association, trust, or other power and
                  authority, and have taken or caused to be taken all necessary
                  corporate, partnership, association, trust, or other action
                  (including any necessary shareholder, partner, member or
                  beneficiary action) necessary to execute, deliver, enter into
                  and perform in accordance with the Loan Documents. Upon
                  execution and delivery hereof and thereof, the Loan Documents
                  will constitute valid and binding obligations of the Borrower,
                  any Guarantor, and the other parties thereto, enforceable in
                  accordance with their respective terms, and the Note will be
                  entitled to the benefits of this Agreement, the Commitment and
                  the other Loan Documents.

         (b)      Adverse Change. There has been no material adverse change in
                  the business, properties, or condition (financial or
                  otherwise) of Borrower, any Guarantor or any of the Collateral
                  since the date of the last financial statements furnished to
                  Lender.

         (c)      Litigation. Except for any litigation or claims specifically
                  described on Exhibit B hereto, there is no action, suit or
                  proceeding at law or in equity or by or before any
                  governmental instrumentality or other agency now pending, or,
                  to the knowledge of the Borrower threatened or in prospect
                  against or affecting the Borrower, any Guarantor, or any
                  properties or rights of the Borrower or any Guarantor which,
                  if adversely determined, would materially or adversely affect
                  the business, properties, or financial condition of the
                  Borrower, any Guarantor or any of the Collateral. Borrower is
                  not currently affected by any strike or other labor
                  disturbance, nor is the Borrower or any Guarantor in default
                  in any respect under any judgment, order, injunction, rule,
                  ruling or regulation of any court or governmental commission,
                  agency or instrumentality.

         (d)      No Violations. Neither the execution nor delivery of this
                  Agreement, nor any of the other Loan Documents, nor the
                  consummation of the transactions contemplated hereby and
                  thereby, nor compliance with the terms and provisions hereof
                  and thereof, will conflict with, violate or result in a breach
                  of or default under, or result in the creation or imposition
                  of any

                                       2
<PAGE>

                  lien, charge or encumbrance of any nature whatsoever on any of
                  the assets of the Borrower or any Guarantor, pursuant to the
                  terms of any provision of any contract or agreement, charter,
                  bylaw, partnership agreement, trust indenture, or other
                  corporate, partnership or trust restriction, any law,
                  ordinance, rule, order, certificate, license, regulation or
                  decree of the United States or any state, territory or
                  political subdivision thereof, or any court, agency or other
                  tribunal under which the Borrower, any Guarantor or any of
                  Borrower's or Guarantor's assets are subject. Neither Borrower
                  nor any Guarantor is in default with respect to the
                  performance, observance or fulfillment of any of the
                  obligations, covenants or conditions contained in any of the
                  foregoing which are material to its financial condition.

         (e)      Payment of Taxes. The Borrower and, if Borrower is a
                  partnership, each of Borrower's general partners, have filed
                  or caused to be filed all federal, state and local tax
                  returns, which are required to be filed, and have paid or
                  caused to be paid all taxes as shown on said returns or on any
                  assessment received by them, to the extent that such taxes
                  have become due, except as otherwise permitted by the
                  provisions hereof. The Borrower has no reason to believe that
                  any additional taxes are due for prior calendar tax years that
                  have not been audited by the respective tax authorities beyond
                  the amounts provided in the financial statements heretofore
                  furnished to Lender.

         (f)      Location of Records. Upon request by Lender, the Borrower
                  shall give to Lender written notice of each office of the
                  Borrower at which records of the Borrower pertaining to the
                  Collateral are kept. Except as such notice is given, all
                  records of the Borrower pertaining to the Collateral are and
                  shall be kept at the Borrower's address set forth in this
                  Agreement.

         (g)      Permits; Governmental and Other Approvals. Borrower
                  possesses such licenses and permits as are required for the
                  conduct of its business. No approval, consent or authorization
                  of any governmental authority which has not heretofore been
                  obtained is necessary for the execution or delivery by
                  Borrower of this Agreement or the other Loan Documents or for
                  the performance by Borrower of any of the terms or conditions
                  hereof or thereof.

         (h)      Properties. The Borrower has good and marketable title
                  to all the Borrower's properties and assets; and all such
                  properties and assets are free and clear of Liens, except as
                  disclosed in the financial statements referred to in Section
                  6(b) and as otherwise permitted or required by the provisions
                  of this Agreement and the other Loan Documents.

         (i)      Consents, Registrations, Approvals, etc. No registration with
                  or consent or approval of, or other action by any Governmental
                  Authority is required for the execution, delivery and
                  performance of any Loan Document to which it is a party.

         (j)      Solvency. The Borrower is and will remain Solvent, taking into
                  account the consummation of the transactions provided in the
                  Loan Documents.

         (k)      Project. (a) The construction of the Project in accordance
                  with the Plans, and the use of the Property for the purposes
                  referenced herein will not violate any restrictive covenant,
                  any applicable governmental building law (herein "Building
                  Law"), or other governmental law, ordinance or regulation
                  applicable thereto; (b) the Property has convenient and
                  adequate access to all electric, gas, water, storm sewer,
                  sanitary sewer, telephone, cable television and other utility
                  services necessary for the construction of the Project and the
                  intended use of the Property, such utilities are available to
                  the Borrower in sufficient quantities to accommodate the
                  construction and intended use of the Property and to comply
                  with all Building Laws, and with all other applicable
                  governmental laws, rules, ordinances and codes (herein
                  "Governmental Requirements"), and the Borrower has all
                  easements, grants, permits, approvals and other rights
                  necessary to tie into and use such utilities; (c) the Property
                  has access to existing public roads and highways (including
                  all necessary rights and governmental approvals for related
                  ingress and egress) that is adequate for the intended use of
                  the Property; (d) when the Project is completed in accordance
                  with the Plans, the Property will have paved, off-street
                  parking adequate to comply with all building laws and other
                  governmental requirements applicable thereto; (e) when the
                  Project is completed in accordance with the Plans, the
                  Property will comply with all applicable Building Laws and
                  Governmental Requirements and will qualify for a certificate
                  of occupancy (or local equivalent) for all space in each
                  building on the Property); (f) the Plans are satisfactory to
                  the Borrower, comply with all applicable Governmental
                  Requirements, and have been approved by any required
                  Governmental Authorities and by all other persons whose
                  approval is required; (g) the Borrower has obtained all
                  material certificates, licenses, authorizations,
                  registrations, permits and other approvals of Governmental
                  Authorities and other persons necessary for the operation of
                  the Property, the conduct of the Borrower's business at the
                  Project, and the construction of the Project, including all
                  such certificates, licenses, authorizations, registrations,
                  permits and approvals required under applicable Building Laws;
                  (h) the present and contemplated use and occupancy of the
                  Property do not conflict with or violate any of the same; (i)
                  no portion of the Property is located within a special flood
                  hazard area; and (j) none of the improvements including in the
                  Project will create an encroachment over, across or onto any
                  boundary lines, rights-of-way, or easements, and no building
                  or improvement on any adjoining property encroaches onto the
                  Property.

         (l)      Information Regarding Loans; Purpose. All of the
                  information contained in the request for the Loans is true and
                  correct in all material respects and all statements,
                  representations and warranties contained therein and in any
                  other Loan Document signed in connection herewith are true and
                  correct in all material respects. The proceeds of the Loan
                  will be used solely for business or commercial purposes, and
                  none of such proceeds will be used for personal, family,
                  household or agricultural purposes.

                                       3

<PAGE>

         (m)      Changes in Management. The Borrower shall not permit any
                  change in the management of the Property without the prior
                  written consent of the Lender.

         (n)      Changes in Construction Documents. The Borrower shall not make
                  any changes in any of the construction contracts for the
                  Project, except as expressly permitted by the Loan Documents.

         (o)      Participation. The Borrower understands that the Lender may
                  from time to time enter into a participation agreement or
                  agreements with one or more participants pursuant to which
                  each such participant shall be given a participation in the
                  Loan and that any such participant may from time to time
                  similarly grant to one or more sub-participants
                  sub-participations in the Loan. The Borrower agrees that, to
                  the extent provided under the participation agreements, any
                  participant or sub-participant may exercise any and all rights
                  of banker's lien or set-off with respect to Borrower, as fully
                  as if such participant or sub-participant had made a Loan
                  directly to the Borrower in the amount of the participation or
                  sub-participation given to such participant or sub-participant
                  in the Loan. For the purposes of this Section 6(o) only, the
                  Borrower shall be deemed to be directly obligated to each
                  participant or sub-participant in the amount of its
                  participating interest in the amount of the Loan and any other
                  indebtedness arising under the Loan and the Loan documents.
                  Nothing contained in this Section 6(o) shall affect the
                  Lender's right of set-off (under Section 10 or applicable law)
                  with respect to the entire amount of the indebtedness
                  evidenced and/or secured by the Loan Documents,
                  notwithstanding any such participation or sub-participation.
                  The Lender may divulge to any participant or sub-participant
                  all information, reports, financial statements, certificates
                  and documents obtained by it from the Borrower or any other
                  person under any provision of this Agreement or otherwise.

7. Operating Account. Borrower shall establish and maintain a depository account
at Lender during the life of the Loan.

8. Events of Default. The occurrence of any of the following events, and, except
with respect to (i) payment defaults, (ii) defaults under ss.ss.8(a), (b), (c),
(h), (l) and (x), or (iii) where a different time is specified, the continuance
of such event for thirty (30) days or more after written notice thereof from
Lender to Borrower (or in the event said default cannot be cured within 30 days,
said period may be extended for up to an additional 60 days provided Borrower is
diligently attempting to cure same), shall constitute an Event of Default
hereunder ("Event of Default")

         (a)      If Borrower fails to make any payment of the principal
                  of or interest (together with premium thereon, if any) on the
                  Note when the same becomes due and payable and such failure is
                  not cured within (3) days after receipt of written notice
                  thereof;

         (b)      If the Deed to Secure Debt and the other Loan Documents
                  shall not provide Lender with a first priority security title
                  to and security interest in and to the Project and other real
                  and personal property covered thereby, satisfactory to Lender
                  and its counsel;

         (c)      If without the prior written consent of Lender, the Project or
                  the other collateral or any part thereof or any interest of
                  the Borrower therein, is sold, transferred, conveyed or
                  encumbered in any way, except for leases approved by Lender;
                  provided, that if the Project is a residential apartment
                  complex, Borrower may lease units in the Project so long as
                  such leases are executed in the ordinary course of business of
                  operating a residential apartment complex and are on a form
                  approved by Lender; provided further, Borrower shall have the
                  right, without Lender's prior consent but with written notice
                  to Lender, to transfer the Project to Roberts Realty
                  Investors, Inc.

         (d)      If the improvements on the Project shall encroach upon any
                  street or upon adjoining property;

         (e)      If in Lender's sole reasonable judgment, the Project cannot be
                  completed by the date for completion set forth in the
                  Commitment Letter;

         (f)      If the improvements on the Project are damaged or
                  destroyed by fire or otherwise to an extent such that the
                  Project cannot be completed on or before the date for
                  completion set forth in the Commitment Letter, or that there
                  are insufficient funds remaining in the construction budget to
                  complete the Project, taking into account any insurance
                  proceeds received because of the damage and any additional
                  funds provided by Borrower;

         (g)      If Borrower shall fail to comply with any of the
                  covenants, terms or conditions contained herein, in the
                  Commitment Letter, in the Note, or in any of the other Loan
                  Documents, giving consideration to any grace or cure period
                  specifically provided therefor;

         (h)      The filing by the Borrower or any Guarantor of a voluntary
                  petition in bankruptcy or the Borrower's adjudication as a
                  bankrupt or insolvent, or the filing by the Borrower or any
                  Guarantor of any petition or answer seeking or acquiescing in
                  any reorganization, arrangement, composition, readjustment,
                  liquidation, dissolution or similar relief for itself under
                  any present or future federal, state or other statute, law or
                  regulation relating to bankruptcy, insolvency or other relief
                  for debtors, or the Borrower's or any Guarantor's seeking or
                  consenting to or acquiescence in the appointment of any
                  trustee, receiver or liquidator of the Borrower or any
                  Guarantor or of all or any substantial part of the Project or
                  of any or all of the

                                       4

<PAGE>

                  rents, revenues, issues, earnings, profits or income thereof,
                  or the making of any general assignment for the benefit of
                  creditors or the admission in writing of its inability to pay
                  its debts generally as they become due; or

         (i)      The entry by a court of competent jurisdiction of any order,
                  judgment, or decree approving a petition filed against the
                  Borrower or any Guarantor seeking any reorganization,
                  arrangement, composition, readjustment, liquidation,
                  dissolution or similar relief under any present or future
                  federal, state or other statute, law or regulation relating to
                  bankruptcy, insolvency, or other relief for debtors, which
                  order, judgment or decree remains unvacated and unstayed for
                  an aggregate of sixty (60) days (whether or not consecutive)
                  from the date of entry thereof, or the appointment of any
                  trustee, receiver or liquidator of the Borrower or any
                  Guarantor or of all or any substantial part of the Project or
                  of any or all of the rents, revenues, issues, earnings,
                  profits or income thereof without the consent or acquiescence
                  of the Borrower or any Guarantor which appointment shall
                  remain unvacated and unstayed for an aggregate of sixty (60)
                  days (whether or not consecutive); or

         (j)      To the full extent not prohibited by applicable law, if
                  a final non-appealable judgment by a court of competent
                  jurisdiction is entered against Borrower or any Guarantor,
                  which judgment is material to Borrower's financial condition
                  or ability to pay the Loan;

         (k)      If Borrower does not construct the Project in material
                  accordance with the plans and specifications approved by
                  Lender (the "Plans"), except as the Plans may be changed by
                  mutual written consent of Borrower and Lender, or by change
                  orders not requiring the Lender's consent hereunder. For
                  purposes of the foregoing, Lender's consent shall not be
                  required for change orders in the individual amount of $50,000
                  or less, and provided that the aggregate amount of all change
                  orders does not exceed $250,000.

         (l)      If Borrower does not permit Lender, or representatives
                  of Lender, to enter upon the Project to inspect the Project at
                  all reasonable times and examine all detailed plans, shop
                  drawings, and specifications which are kept at the Project, or
                  if Borrower fails to furnish to Lender, when requested, copies
                  of such plans, drawings and specifications;

         (m)      If the construction of the Project is not commenced
                  within thirty (30) days from closing of the Loan, or is not
                  carried on with reasonable dispatch and completed within
                  eighteen (18) months of the date of closing of the Loan;

         (n)      If Borrower executes any security agreement, except to
                  Lender, covering any materials, fixtures or articles used in
                  the construction of the Project or covering articles of
                  personal property placed in the Project as a fixture;

         (o)      If Borrower fails to comply with any requirement of any
                  governmental authority having jurisdiction within thirty (30)
                  days after receipt of notice in writing of such requirement
                  shall have been given to Borrower or within the time specified
                  in such notice, whichever is greater;

         (p)      If Borrower fails to notify Lender of the filing of any
                  lien against the Project within ten (10) business days after
                  Borrower receives notice of such lien;

         (q)      If any representation or warranty made herein or in any of the
                  other Loan Documents shall prove to be false or misleading in
                  any material respect;

         (r)      If any report, certificate, financial statement or
                  other instrument furnished in connection with the Loan
                  Documents or the borrowing hereunder shall prove to be false
                  or misleading in any material respect;

         (s)      If Borrower or any other Person fails to observe or
                  perform any other covenant, condition or agreement under the
                  Loan Documents within any applicable cure period, or if there
                  shall occur a default or an Event of Default under the Loan
                  Documents;

         (t)      If Borrower is a partnership, if any of the general
                  partners of Borrower shall cease to be such partners, or any
                  action shall be taken or if there shall be any occurrence
                  which could or does have the effect of terminating,
                  dissolving, liquidating, or winding-up the business of any
                  such general partner;

         (u)      If any action whatsoever shall be taken, or if there
                  shall be any occurrence which could or does have the effect
                  of, terminating, dissolving, liquidating or winding-up the
                  business of the Borrower or any Guarantor;

         (v)      If any lease relating to the Project is modified,
                  amended, or terminated without Lender's prior written consent,
                  and as otherwise permitted herein or in the Loan Documents, or
                  if there shall occur any default under any such lease which is
                  not cured within the time specifically provided therefor;
                  provided, that if the Project is a residential apartment
                  complex, this paragraph shall not apply to leases modified,
                  amended or terminated in the ordinary course of business of
                  operating a residential apartment complex, or to defaults
                  under such leases;

                                       5

<PAGE>

         (w)      At the option of Lender, on the dissolution or
                  liquidation of any corporate Guarantor, or upon the death or
                  legal incapacity of any individual Borrower or Guarantor, or
                  if the Borrower or any Guarantor is a partnership, the death
                  or legal incapacity of any general partner of the Borrower or
                  such Guarantor.

         (x)      Any default by Borrower under any agreement between Borrower
                  and Lender or any affiliate of Lender, now existing or
                  hereafter entered into with respect to the Loan, which
                  provides for an interest rate or commodity swap, cap, floor,
                  collar, forward foreign exchange transaction, currency swap,
                  cross-currency rate swap, currency option, or any combination
                  of, or option with respect to, these or similar transactions,
                  for the purpose of hedging Borrower's exposure to fluctuations
                  in interest rates, currency calculations or commodity prices
                  (collectively the "Swap Agreement"), which default is not
                  cured within the cure period, if any, set forth in such
                  agreement.

9. Remedies. Upon the occurrence of any one or more of the above-listed Events
of Default, then, or at any time thereafter, Lender may, without notice to the
Borrower or any other Person, declare the unpaid principal of and interest and
other charges on the Loan immediately due and payable, together with any other
Liabilities (hereinafter defined) of the Borrower to Lender, and such amounts
thereupon shall become immediately due and payable, without presentment, demand,
protest, notice of protest or notice of any kind, all of which are hereby
expressly waived by Borrower, and if all such amounts are not immediately paid
in full, Lender may exercise all rights given to it under the laws of the State
of Georgia and any other state and under this Agreement and the other Loan
Documents, including without limitation, foreclosure of the Deed to Secure Debt
and/or the filing of actions in law or in equity. Upon the occurrence of any one
or more of the above-listed Events of Default, all obligations on the part of
Lender to make loans and advances hereunder shall, if Lender so elects, cease
and terminate; provided, however, that Lender may, in its sole discretion, make
additional advances without becoming liable to make any other advances,
notwithstanding anything to the contrary contained or implied herein, in the
Commitment Letter or in any other Loan Document.

10. Setoff. Lender is hereby given a continuing lien as additional security for
the Note and all other Liabilities and indebtedness of Borrower to Lender (as
defined herein and in the Deed to Secure Debt or in any other Loan Document)
upon any and all moneys, securities, and other property of Borrower, and the
proceeds thereof, now or hereafter held or received by or in transit to the
Lender from or for Borrower, whether for safekeeping, custody, pledge,
transmission, collection, or otherwise, and also upon any and all deposit
balances (general or special) and credits of Borrower with, and any and all
claims of Borrower against the Lender at any time existing, and upon the
occurrence of any Event of Default hereunder, the Lender may apply or set off
the same against the Indebtedness and Liabilities (as defined herein or in the
Deed to Secure Debt or other Loan Documents) secured by the Deed to Secure Debt
and other Loan Documents.

11. Borrower Defined; Successors and Assigns. The term "Borrower", wherever used
herein, shall mean the Borrower described on the first page of this Agreement,
whether one or more, and its or their respective successors, assigns, executors
and administrators, and all of the covenants, conditions, and agreements hereof
shall bind the successors, assigns, executors and administrators of Borrower and
shall inure to the benefit of and be available to the successors and assigns of
Lender.

12. Person and Liabilities Defined. The term "Person" shall include natural
persons, corporations (which shall be deemed to include business trusts),
associations, partnerships and all such similar entities. Except as otherwise
may be defined with respect to a particular Loan Document, the term
"Liabilities" shall mean all indebtedness, liabilities and obligations of
Borrower to Lender, whether joint or several, matured or unmatured, liquidated
or unliquidated, direct or indirect, primary or secondary, absolute or
contingent, now existing or hereafter arising and whether arising by contract,
operation of law or otherwise, and all extensions, modifications, amendments,
consolidations, renewals and replacements thereof, and whether incurred or given
as maker, endorser, guarantor, surety or otherwise, including without
limitation, the Loan and the indebtedness evidenced by the Note or any
extension, modification, amendment, consolidation, renewal or replacement
thereof or therefor.

13. Delay; No Waiver. No delay or failure of Lender to exercise any option or
right herein given or reserved shall constitute a waiver of such option or right
or estop Lender thereafter to exercise the same or any other option or right at
any time, and Lender's payment or contracting to pay anything Borrower has
herein agreed to pay shall not constitute a waiver of the default of Borrower in
failing to make any such payment. A waiver by Lender of any option or right
herein given or reserved on any one occasion shall not be deemed a waiver of
said option or right on any future occasion. Lender may in its discretion extend
the time of payment of the principal evidenced and secured by the Note and other
Loan Documents and any extension so granted shall be deemed to be made in
pursuance of this Agreement and not in modification thereof.

14. No Partnership or Joint Venture. Notwithstanding anything to the contrary
herein contained or implied, Lender, by this Agreement, or by any action
pursuant thereto or hereto, shall not be deemed a partner, joint venturer or
participant in the venture with Borrower, and Borrower hereby indemnifies and
agrees to defend and hold Lender harmless (including the payment of reasonable
attorneys' fees) from any and all damages resulting from such a construction of
the parties' relationship. The requirements herein, and the restrictions imposed
in this Agreement and the other Loan Documents, are for the sole protection and
benefit of Lender.

15. Assignments. Lender may assign this Loan or any parts hereof, including the
participation of all or any part of this Loan to one or more financial
institutions of its choice. Borrower shall not assign or delegate this Agreement
or any of its rights or duties hereunder without the prior written consent of
Lender. In the event of such assignment by Borrower with Lender's consent,
Borrower shall execute, or cause the execution of, all documents necessary or
appropriate to continue the full force and effect of the Note and other Loan
Documents.

16. Modifications; Waiver. Neither this Agreement nor any provision hereof may
be changed, modified, amended, waived, discharged, abandoned or terminated
except by an instrument in writing signed by the party against whom enforcement
of the change, modification,

                                       6

<PAGE>

amendment, waiver, discharge, abandonment or termination is sought. In the event
that Lender shall waive in writing any provision or requirement hereunder, such
waiver shall be effective only for the specific purposes, circumstances and
duration stated in said waiver.

17. Remedies Cumulative. No right or remedy conferred upon Lender in this
Agreement is intended to be exclusive of any other right or remedy contained in
the Note, this Agreement, or any other Loan Document, and every such right or
remedy shall be cumulative and in addition to every other right or remedy
contained herein or therein or now or hereafter available to the Lender at law,
in equity, by statute or otherwise.

18. Invalid Provisions; No Conflict. If any of the provisions of this Agreement
or the other Loan Documents or the application thereof to any Person or
circumstances, shall, to any extent, be invalid or unenforceable, the remainder
of said documents and instruments, or the application of such provision or
provisions to Persons or circumstances other than those as to whom or which it
is held invalid or unenforceable, shall not be affected thereby, and every
provision of this Agreement and the other Loan Documents shall be valid and
enforceable to the fullest extent permitted by law. No provision of this
Agreement or the other Loan Documents shall be deemed in conflict with any other
provision hereof or thereof, and the Borrower acknowledges that no such
provision or any interpretation thereof shall be deemed to diminish the rights
of the Lender, any assignee, or the holder of the Note under the terms and
conditions or any other provisions hereof or thereof. Lender may at its option
exhaust its remedies hereunder, under the Note, and under the other Loan
Documents, either concurrently or independently, and in such order as it may
determine.

19. Indemnification. Borrower shall and does hereby indemnify and hold harmless
Lender from and against any and all claims, charges, losses, expenses and costs,
including without limitation reasonable attorneys' fees, resulting from any
claims, actions or proceedings in connection with the execution, delivery and
performance of this Agreement or the other Loan Documents, except for claims,
charges, losses, expenses and costs resulting directly from the Lender's willful
misconduct or gross negligence. The indemnification provided in this section
shall survive the payment in full of the Loan.

20. Headings; Under Seal; Entire Agreement. Article and section headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement or be used to construe any provision hereof
or for any other purpose. This Agreement is intended to be under the seal of all
parties hereto and to have the effect of a sealed instrument in accordance with
the law. This Agreement, together with Commitment Letter and the other Loan
Documents, embodies the entire agreement and understanding between the parties,
supersedes all prior agreements and understandings related to the subject matter
hereof and thereof, and may not be amended except by written agreement between
Borrower and Lender.

21. No Third Party Beneficiaries. There are no third party beneficiaries to this
Agreement or to any of the other Loan Documents. All conditions to Lender's
obligations to make disbursements under this Agreement and the other Loan
Documents are imposed solely and exclusively for the benefit of Lender. Neither
Borrower nor any other Person shall have standing to require satisfaction of any
such condition or be entitled to assume that Lender will refuse to make
disbursements in the absence of strict compliance with any or all such
conditions, and neither Borrower nor any other Person shall, under any
circumstances, be deemed to be a beneficiary of any conditions hereof, any or
all of which conditions may be waived freely, in whole or in part by Lender at
any time if, in its sole discretion, Lender deems it advisable so to do. Lender
makes no representations or warranties and assumes no obligation or
responsibility with respect to the quality of the construction of the
improvements or any part of the Project. This Agreement and the other Loan
Documents shall not benefit, and may not be relied upon by, any Person other
than the Borrower and the Lender.

22. Notices. Any notice shall be deemed conclusively to have been received by a
party hereto and be effective on the earlier of the day on which delivered to
such party at the address set forth on page 1 hereof (or at any other address as
such party shall specify to the other party in writing) or on the third business
day after the date deposited in the U.S. mails, addressed to such party at said
address.

23. Governing Law; Place of Execution. This Agreement and the other Loan
Documents, and the rights and obligations of the parties hereunder and
thereunder shall be governed by and be construed in accordance with the laws of
the State of Georgia. Borrower acknowledges that the negotiation of the
provisions of this Agreement and the other Loan Documents took place in the
State of Georgia, that all such documents are being executed in the State of
Georgia, or if executed elsewhere, will become effective only upon Lender's
receipt and acceptance thereof in said State; provided, however, that Lender
shall have no obligation to give, nor shall Borrower or any other Person be
entitled to receive, any notice of such receipt and acceptance in order for said
Loan Documents to become effective and valid and binding obligations of the
Borrower. Borrower acknowledges further that all of such documents were or will
be executed and delivered to Lender to induce Lender to make the Loan to
Borrower. Borrower hereby submits itself to jurisdiction in the State of Georgia
for any action or cause of action arising out of or in connection with the Loan
or the Loan Documents, agrees that venue for any such action shall be in Fulton
County, Georgia, and waives any and all rights under the laws of any state to
object to jurisdiction or venue within Fulton County, Georgia. Notwithstanding
the foregoing, nothing contained in this section shall prevent Lender from
bringing any action or exercising any rights against Borrower, any Guarantor,
any security for the Loan, or any of Borrower's properties in any other county,
state or jurisdiction. Initiating such action or proceeding or taking any such
action in any other state shall in no event constitute a waiver by Lender of any
of the foregoing.

24. Inspections; Lender's Benefit Only. Lender shall have the right, and
Borrower shall allow Lender and any of its authorized representatives and
construction consultants, if any shall be employed, at all times after 24 hours
prior notice to inspect the Project and all Collateral, and the status of
construction, and to review all architectural and construction drawings and
other documents. The Borrower also shall permit Lender and any of its authorized
representatives to examine, inspect and make extracts from books and records of
the Borrower, and Borrower will discuss with Lender or its representatives the
affairs, finances and accounts of the Borrower, all at such reasonable times and
as often as may be reasonably requested by Lender. Any inspections and reports
made by, for or on behalf of Lender, including without
                                       7

<PAGE>

limitation, any inspections made by Lender or by its Construction Consultant, or
any approvals of inspection reports made by Lender or its Construction
Consultant pursuant to (i) the provisions hereof, (ii) Section 9 and 10 of
Addendum A to the Commitment Letter, or (iii) any other provisions of the Loan
Documents giving Lender a right of inspection of the Project, shall be solely
for the benefit of Lender, and neither Borrower nor any third party shall be
beneficiaries of the same, or shall be entitled to claim any loss or damage as a
result of such inspections, approvals, disapprovals or the failure of Lender to
make the same. Borrower acknowledges that Lender is not acting in a fiduciary
capacity for Borrower in any respect relative to the Loan, including without
limitation, in the making of any such inspections or in reviewing or approving
any such inspection reports.

25. Financial Statements, Reports, etc. The Borrower shall furnish to the
    Lender:

         (a)      Not later than 90 days after the end of each
                  semi-annual fiscal period, financial statements (including a
                  balance sheet and the related statements of income, cash flows
                  and retained earnings) of the Borrower prepared in accordance
                  with generally accepted accounting principles (or other
                  comprehensive basis of accounting acceptable to the Lender)
                  for such period and for the period beginning on the first day
                  of the fiscal year and ending on the last day of such period,
                  together with statements in comparative form for the
                  corresponding periods in the preceding fiscal year, and
                  certified by an authorized representative of the Borrower.

         (b)      Not later than 120 days after the end of each fiscal year,
                  financial statements (including a balance sheet and the
                  related statements of income, cash flows and retained
                  earnings) of the Borrower prepared in accordance with
                  generally accepted accounting principles (or other
                  comprehensive basis of accounting acceptable to the Lender)
                  for such fiscal year, together with statements in comparative
                  form for the preceding fiscal year, and accompanied by an
                  opinion of certified public accountants acceptable to the
                  Lender, which opinion shall state in effect that (1) such
                  financial statements (A) were audited using generally accepted
                  auditing standards, (B) were prepared in accordance with
                  generally accepted accounting principles (or other
                  comprehensive basis of accounting acceptable to the Lender,
                  applied on a consistent basis, and (C) present fairly the
                  financial condition and results of operations of the Borrower
                  for the periods covered and (2) except as disclosed in such
                  opinion, in making the examination necessary for such opinion,
                  such accountants have obtained no knowledge of (A) the
                  existence of any event of default under any Loan Document or
                  under any instrument evidencing or securing any other
                  indebtedness or liability, contingent or noncontingent, of the
                  Borrower and (B) the occurrence of any event which, with
                  notice or lapse of time or both, would constitute an Event of
                  Default under any of the Loan Documents or under any
                  instrument evidencing or securing any other indebtedness or
                  contingent liability of the Borrower.

         (c)      Together with the financial statements required by subsections
                  (a) and (b) above, a certificate of an authorized
                  representative of the Borrower stating that, except as
                  disclosed in such certificate, (1) no event of default exists
                  under any of the Loan Documents or under any instrument
                  evidencing or securing any other indebtedness or contingent
                  liability of the Borrower, and (2) no event has occurred and
                  is continuing which, with notice or lapse of time or both,
                  would constitute an event of default under any of the Loan
                  Documents or under any instrument evidencing or securing any
                  other indebtedness or contingent liability of the Borrower. If
                  any such event of default exists or any such event has
                  occurred and is continuing, such certificate shall contain a
                  description of the nature and extent thereof.

         (d)      Within ten (10) days after request therefor from
                  Lender, a rent schedule of the Project, certified by the
                  Borrower, showing the name of each tenant, and for each
                  tenant, the space occupied, the lease expiration date and the
                  rent paid.

         (e)      Not later than 120 days after the end of each fiscal
                  year, financial statements (including a balance sheet and the
                  related statements of income, cash flows and retained
                  earnings) of each Guarantor prepared in accordance with
                  generally accepted accounting principles (or other
                  comprehensive basis of accounting acceptable to Lender) for
                  such fiscal year, together with statements in comparative form
                  for the preceding fiscal year, and certified by the respective
                  Guarantor.

         (f)      Such other information regarding the property or the
                  financial condition or operations of the Borrower, the
                  Guarantors, or the Project as the Lender shall reasonably
                  request, including, without limitation, copies of Federal
                  income tax statements of the Borrower and/or the Guarantors.
                  The guaranties of the Guarantors may contain an acknowledgment
                  of their obligations to furnish the financial reports, records
                  and statements described therein.

26. Performance Covenant. Beginning April 25, 2003, the Guarantor shall be
subject to a minimum annual Debt Service Coverage ("DSC") of 1.20x. Within 90
days after the end of each fiscal year, Guarantor shall submit a compliance
statement showing the DSC calculation, based upon unqualified audited results.
For purposes of this provision, DSC shall be equal to "Net Operating Income"
divided by "Annual Debt Service". "Net Operating Income" shall be equal to
annual operating revenues less annual operating expenses. "Annual Debt Service"
shall be equal to annual interest and principal payments paid during the year,
but shall exclude any balloon payment required to be made on any loan during the
year.

27. Transfer and Assumption. Notwithstanding anything to the contrary in this
Agreement or in any of the other Loan Documents, Borrower shall have the right
to transfer the Project subject to the Loan to Roberts Realty Investors, Inc.
without consent but with prior written notice to the Lender, without payment of
a transfer fee. Additionally, Borrower shall have a one-time only right to sell,
transfer and convey the Project to a party other than Roberts Realty Investors,
Inc., subject to the Loan, provided that all of the following conditions

                                       8
<PAGE>

have been satisfied: (i) at the time the transfer is proposed there shall be no
Event of Default hereunder or under any of the Loan Documents, (ii) Borrower
shall obtain prior written approval by Lender of the terms of the sale and the
financial condition and management experience of the transferee, which approval
may be withheld in Lender's sole discretion, (iii) Borrower shall pay to Lender,
at the closing of the transfer and assumption, a transfer fee equal to 1% of the
then outstanding principal balance of the Note, and (iv) any such transfer shall
require the written assumption by the transferee, in form satisfactory to
Lender, of all of Borrower's obligations and liabilities under the Loan
Documents and the Swap Agreement, and the provision of a substitute Guarantor
satisfactory to Lender in its sole discretion. Lender reserves the right, upon
review of the proposed transfer and the financial and management experience of
the transferee, to modify the Loan in any respect including, without limitation,
changing the interest rate or term of the Loan and modifying the Swap Agreement,
based on Lender's underwriting criteria in effect at the time of the transfer.

IN WITNESS WHEREOF, Lender and Borrower have caused this Agreement to be duly
and properly executed as of the date first set forth above.

                                       LENDER:

WITNESS:                               COMPASS BANK

/s/ Joseph A. Fadus                       By:/s/ John L. Davis
-----------------------                   --------------------------------------
                                          John L. Davis, Senior Vice President

                                       BORROWER  (Mortgagor, Debtor):

WITNESS:                               ROBERTS PROPERTIES RESIDENTIAL, L.P.,
                                       a Georgia limited partnership

/s/ Lyssa Fagan                             By:  ROBERTS REALTY INVESTORS, INC.,
-----------------------                          a Georgia corporation,
                                                   its general partner

                                            By: /s/ Charles R. Elliott
                                            ------------------------------------
                                                    Charles R. Elliott
                                            Title: Chief Financial Officer

                                                     [CORPORATE SEAL]

                                       9Exhibit 10.18.1

                                 SALES CONTRACT
                                     between
                            ROBERTS PROPERTIES, INC.,
                        a Georgia corporation, as Seller
                                       and
                      ROBERTS PROPERTIES RESIDENTIAL, L.P.,
                   a Georgia limited partnership, as Purchaser

                               Dated: May 25, 2001

  Property consisting of approximately 9.5097 acres of unimproved real property
              located on Jones Bridge Road, Fulton County, Georgia

<PAGE>

                                TABLE OF CONTENTS

ARTICLE I -- PROPERTY TO BE CONVEYED.........................................1
------------------------------------

ARTICLE II -- PURCHASE PRICE.................................................1
----------------------------

ARTICLE III -- ITEMS TO BE DELIVERED BY SELLER AT CLOSING....................2
---------------------------------------------------------

ARTICLE IV -- ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING..................3
-----------------------------------------------------------

ARTICLE V -- TIME AND PLACE OF CLOSING AND CLOSING COSTS.....................3
--------------------------------------------------------

ARTICLE VI -- APPORTIONMENTS.................................................3
----------------------------

ARTICLE VII -- PURCHASER'S CONDITIONS PRECEDENT..............................4
-----------------------------------------------

ARTICLE VIII -- EMINENT DOMAIN...............................................4
------------------------------

ARTICLE IX -- SELLER'S REPRESENTATIONS AND WARRANTIES........................5
-----------------------------------------------------

ARTICLE X -- DEFAULT AND REMEDIES............................................6
---------------------------------

ARTICLE XI -- NOTICES........................................................6
---------------------

ARTICLE XII -- SETTLEMENT ITEMS..............................................7
-------------------------------

ARTICLE XIII -- ACCESS.......................................................8
----------------------

ARTICLE XIV -- BROKERS.......................................................8
----------------------

ARTICLE XV -- MISCELLANEOUS..................................................8
---------------------------

<PAGE>

                                 SALES CONTRACT

         THIS AGREEMENT is made and entered into this 25th day of May, 2001 by
and between ROBERTS PROPERTIES, INC., a Georgia corporation (hereinafter
referred to as the "Seller") and ROBERTS PROPERTIES RESIDENTIAL, L.P., a Georgia
limited partnership (hereinafter referred to as the "Purchaser").

                      ARTICLE I -- PROPERTY TO BE CONVEYED

         A. Seller shall sell to Purchaser, and Purchaser shall purchase from
Seller, upon the terms and conditions hereinafter set forth, that certain parcel
of land (hereinafter referred to as the "Land") described on Exhibit A attached
hereto with the buildings and improvements, if any, on the Land (hereinafter
referred to as the "Improvements") and the machinery and equipment, attached
thereto, if any (all of the foregoing real and personal property is hereinafter
collectively referred to as the "Property"). Seller will acquire the Property
prior to the Closing Date (hereinafter defined).

         B. The Property shall include all right, title and interest, if any, of
Seller in and to any land lying in the bed of any street, road, highway or
avenue, open or proposed, in front of or adjoining all or any part of the Land
and in all strips, gores or rights-of-way, riparian rights and easements, and
all right, title and interest of Seller, if any, in and to any award or payment
made or to be made (i) for any taking in condemnation or eminent domain of land
lying in the bed of any street, road, highway or avenue, open or proposed, in
front of or adjoining all or any part of the Land, (ii) for damage to the
Property or any part thereof by reason of change of grade or closing of any such
street, road, highway or avenue, (iii) for any taking in condemnation or eminent
domain of any part of the Property.

         C. The Property consists of approximately 9.5097 acres of unimproved
real property in Land Lot 231 of the 1st District, 1st Section, Fulton County,
Georgia, fronting on Jones Bridge Road.

                          ARTICLE II -- PURCHASE PRICE

         The purchase price (hereinafter referred to as the "Purchase Price")
for the Property shall be One Million Eight Hundred Four Thousand Four Hundred
Fifty-Five and 62/100 Dollars ($1,804,455.62), and subject to all prorations and
adjustments provided herein, shall be paid as follows:

         A. Concurrently with the execution of this Agreement, Purchaser shall
pay to Seller $100.00 (the "Deposit") by check subject to collection or by wire
transfer, such amount to be deposited in a non-interest bearing account. The
Deposit shall be applied toward the Purchase Price due at Closing (as
hereinafter defined) only if the Closing contemplated hereby is

<PAGE>

consummated as herein provided, or shall otherwise be applied as elsewhere
provided in this Agreement.

         B. The amount (which amount includes the amount of the Deposit) of
$1,447,841.62 shall be paid by Purchaser at Closing by certified, cashier or
federal funds check drawn to the order of Seller or by wire-transfer of
immediately available cash to Seller, and the $356,614.00 balance of the
Purchase Price will be paid by Purchaser's taking title to the Property subject
to a Non-Recourse Conditional Obligation to Pay Promissory Note in such amount
secured by a deed to secure debt covering the Property.

         C. Purchaser and Seller hereby expressly acknowledge and agree that
Purchaser is to acquire the Property in an "as-is" condition and that Seller
shall have no obligation or liability whatsoever to Purchaser in respect to the
quality, integrity, nature or condition of construction or merchantability or
habitability of the Improvements or any particular use which may be made
thereof. The substance of this Section II C shall survive the consummation of
the transaction contemplated herein and shall be included in the Special
Stipulations to the Closing Statement to be executed by Purchaser and Seller at
Closing.

            ARTICLE III -- ITEMS TO BE DELIVERED BY SELLER AT CLOSING

         At Closing Seller agrees to deliver the following items to Purchaser.
Drafts of all documents to be delivered at Closing as specified in this
Agreement shall be prepared by Seller's counsel.

         A. Title to the Land shall be conveyed by a limited warranty deed
(herein called the "Deed") which will (i) contain a limited warranty of title to
the effect that Seller will warrant title to the Purchaser as against any claim
by any person owning, holding or claiming by, through or under Seller, but not
otherwise, and (ii) be subject only to those title exceptions contained on
Exhibit B attached hereto and made a part hereof (herein called the "Permitted
Exceptions").

         B. A Title Affidavit of a corporate officer of Seller (in a form
customarily utilized in Atlanta, Georgia) showing that all debts for labor and
materials in respect of the Property have been paid in full and that there are
no outstanding claims, suits, debts, liens or judgments against the Property,
except for the Permitted Exceptions.

         C. A FIRPTA Affidavit and an Affidavit of Seller's Residence as
respects O.C.G.A.ss.48-7-128.

         D. An IRS form 1099, and a Designation of Reporting Agent and
Transferor Identification form.

         E. Such evidence as is required by the title insurance company (the
"Title Company") insuring the title to the Property for Purchaser as is required
by the Title Company to

                                       2

<PAGE>

delete any and all security deeds encumbering the Property from the title
insurance commitment to be marked at Closing.

         F. Such evidence as is required by the Title Company as to the
authority of those acting on behalf of the Seller in connection with the
transaction contemplated in this Agreement, which such evidence shall include a
current certificate of existence from the Secretary of State of Georgia and a
corporate resolution and incumbency certificate.

         G. Any other documents referred to or specified in this Agreement.

           ARTICLE IV -- ITEMS TO BE DELIVERED BY PURCHASER AT CLOSING

         At Closing, Purchaser agrees to deliver the following items to Seller:

         A. The Purchase Price as required by and in the manner specified in
Section II B hereof.

         B. Any other documents referred to or specified in this Agreement.

            ARTICLE V -- TIME AND PLACE OF CLOSING AND CLOSING COSTS

         A. The consummation of the transaction contemplated herein shall take
place on May 30, 2001 (the date such consummation occurs being herein referred
to as the "Closing" or "Closing Date") at the offices of Holt Ney Zatcoff &
Wasserman, LLP, Atlanta, Georgia commencing at 10:00 A.M.

         B. At Closing, Purchaser shall pay the transfer tax and recording fees
incident to the Deed, and all other closing expenses with respect to the closing
of the transaction contemplated herein, including, without limitation, survey
costs, recording fees, the premium incident to any title insurance policy to be
issued to Purchaser, except that Seller and Purchaser will each pay their own
attorney's fees.

         C. Possession of the Property will be delivered by Seller to Purchaser
on the Closing Date.

                          ARTICLE VI -- APPORTIONMENTS

         The following items shall be apportioned at Closing and as of
the Closing Date:

         A. All real property taxes, including the current installment for any
assessment (special, bond, or otherwise), and personal property ad valorem
taxes, if any. Seller shall be entitled to receive a return of all utility
deposits placed with any utility company, and Purchaser

                                       3

<PAGE>

shall be responsible to place its own deposit with any such utility company.
Seller shall be entitled to receive all income in respect of the Property and
shall be obligated to pay all expenses, including utility charges, in respect of
the Property for all time periods prior to and including the day prior to the
Closing Date. Purchaser shall be entitled to receive all such income and shall
be obligated to pay all such expenses, including utility charges, for all time
periods commencing with the Closing Date. In the event that any income or any
expense item relating to the period prior to the Closing Date is received or
appears after the Closing, such item(s) shall be adjusted between the Seller and
the Purchaser within ten (10) days after such is discovered. This Section VI A
shall survive the Closing of the transaction contemplated herein, but only for a
period of thirty (30) days after which all prorations and adjustments shall be
final as between Seller and Purchaser, except that because the proration for
real property taxes in respect of the Property shall be based on 2000 taxes
because the 2001 tax bill will not be available at Closing, taxes for 2001 shall
be reprorated between Seller and Purchaser immediately upon demand being made by
one party upon the other in the event there is any difference in the 2000 amount
of real property taxes with respect to the Property and the 2001 amount of such
taxes when the 2001 tax bill is available.

                 ARTICLE VII -- PURCHASER'S CONDITIONS PRECEDENT

         Purchaser shall not be required to purchase the Property unless the
following conditions precedent have been satisfied:

         A. The physical condition of the Property shall be substantially the
same on the Closing Date as on the date of full execution hereof, normal wear
and tear excepted.

         B. As of the Closing Date there shall be no administrative agency
action, litigation or other governmental proceeding of any kind pending or
threatened against the Seller or the Property which after the Closing would
materially, adversely affect the value of the Property.

                         ARTICLE VIII -- EMINENT DOMAIN

         A. If, prior to the Closing Date, all of the Property is taken by
condemnation or eminent domain or same is pending, this Agreement shall
terminate as of the day title to the Property or possession thereof vests in the
condemning authority, the Deposit shall be returned by Seller to Purchaser, and
upon such return this Agreement shall terminate and be null and void and of no
further force or effect and neither Purchaser nor Seller shall have any further
rights, remedies, duties, liabilities or obligations to the other hereunder. If,
prior to the Closing Date, there shall be any condemnation or eminent domain
proceedings instituted or pending against less than all of the Property, and
same would interfere with Purchaser's ability to develop the Property for
Purchaser's intended use, then Purchaser may elect to terminate this Agreement
by written notice given to Seller within three (3) days after Purchaser has
received notice from Seller of such proceedings. Upon such notice to Seller the
Deposit shall immediately be returned

                                       4

<PAGE>

to Purchaser by Seller, and upon such return this Agreement shall terminate and
be null and void and of no further force or effect and neither Purchaser nor
Seller shall have any further rights, remedies, duties or obligations to the
other hereunder. Failure of the Purchaser to so notify Seller within said three
(3) days that Purchaser has elected to terminate this Agreement shall be deemed
to mean that Purchaser has elected not to terminate this Agreement. If Purchaser
does not so elect to terminate this Agreement, then the Closing shall take place
as provided herein without abatement of the Purchase Price, and there shall be
assigned to the Purchaser at the Closing, all interest of the Seller in and to
any condemnation awards which may be payable to the Seller on account of such
occurrence.

              ARTICLE IX -- SELLER'S REPRESENTATIONS AND WARRANTIES

                Seller represents and warrants to Purchaser that:

         A. Seller has all requisite power and authority to execute this
Agreement, the closing documents listed in Article III hereof, and any other
documents required to be delivered by the Seller.

         B. To the best of Seller's knowledge, the conveyance of the Property to
Purchaser pursuant to this Agreement will not be a violation by Seller of any
applicable statute, ordinance, governmental restriction, or regulation, or any
private restriction or agreement.

         C. To the best of Seller's knowledge, as of the date of full execution
hereof, there is no administrative agency action, litigation or other
governmental proceeding of any kind pending or threatened against the Seller or
the Property which after the Closing would materially, adversely affect the
value of the Property.

         D. To the best of Seller's knowledge, no special assessments of any
kind (special, bond or otherwise) are levied against the Property which are
outstanding and unpaid.

         E. Seller has no knowledge of any pending or contemplated condemnation
proceedings affecting the Property or any part thereof. Seller will not sell,
assign or convey any right, title or interest whatever in or to the Property or
create or permit to exist any lien, encumbrance, or charge thereon without
promptly discharging the same, except as otherwise expressly provided for
herein.

         F. Seller will not willfully take any action, or willfully omit to take
any action, which action or omission would have the effect of violating any of
its representations, warranties, covenants and agreements contained herein.

         Seller's warranties and representations contained in this Agreement
shall not survive the Closing and shall be merged into the Deed and other
documents to be executed and delivered in connection with the transaction
contemplated herein.

                                       5

<PAGE>

                        ARTICLE X -- DEFAULT AND REMEDIES

         A. In the event that the transaction contemplated herein is not closed
and consummated because of Purchaser's failure or breach to perform its
obligations hereunder, Seller shall retain the Deposit as agreed-upon liquidated
damages and not a penalty, it being otherwise difficult or impossible to
estimate Seller's actual damages, and which liquidated damages shall be in lieu
of any other damages or the right to specific performance, and, upon such event,
this Agreement shall terminate and be null and void and of no further force or
effect, and neither Seller nor Purchaser shall have any further rights,
remedies, duties, liabilities or obligations to the other hereunder. Seller
hereby waives any right to specific performance, injunctive relief or any other
relief to cause Purchaser to perform its obligations under this Agreement, and
Seller hereby waives any right to damages in excess of said liquidated damages
occasioned by Purchaser's breach of this Agreement. Seller and Purchaser
acknowledge that it is impossible to estimate the actual damages Seller would
suffer from Purchaser's breach hereof, but that the liquidated damages provided
herein represent a reasonable pre-estimate of such damages and Seller and
Purchaser therefor intend to provide for liquidated damages as herein specified,
and that the agreed-upon liquidated damages are not punitive or penalties and
are just, fair and reasonable, all in accordance with O.C.G.A. ss. 13-6-7.

         B. In the event that the transaction contemplated herein is not closed
and consummated because of Seller's failure or breach to perform its obligations
hereunder or because of a breach by Seller of any of the representations and
warranties made herein by Seller, Purchaser shall have the right only (i) to
terminate this Agreement by giving notice thereof to Seller, and upon receipt of
such notice Seller shall return the Deposit to Purchaser and thereafter this
Agreement shall terminate and be null and void and of no further force or
effect, and neither Seller nor Purchaser shall have any further rights,
remedies, duties, liabilities or obligations to the others hereunder, or (ii) to
sue Seller for specific performance of its obligations under this Agreement;
which remedies specified in (i) and (ii) shall be in lieu of any other rights or
remedies for Purchaser, including, without limitation, any right or claim for
damages. If Purchaser consummates the transaction contemplated in this Agreement
it shall be conclusively deemed to have waived any breach by Seller of any
covenant, representation or warranty under this Agreement (but not under any of
the documents executed at Closing which shall continue in accordance with their
terms) which the Purchaser knew or should have known existed prior to the
Closing.

                              ARTICLE XI -- NOTICES

         Whenever any notice, demand, or request is required or permitted
hereunder, such notice, demand or request shall be in writing and shall be
hand-delivered in person or sent by United States mail, registered, certified or
Express Mail, postage prepaid, or by Federal Express or similar expedited
delivery service, to the addresses set forth below:

                                       6

<PAGE>

                         To Seller:
                         ---------

                         Roberts Properties, Inc.
                         8010 Roswell Road
                         Suite 120
                         Atlanta, Georgia 30350

                         To Purchaser:
                         ------------

                         Roberts Properties Residential, L.P.
                         c/o Roberts Properties, Inc.
                         8010 Roswell Road
                         Suite 120
                         Atlanta, Georgia 30350

                         With a Copy to:
                         --------------

                         Sanford H. Zatcoff, Esq.
                         Holt Ney Zatcoff & Wasserman, LLP
                         100 Galleria Parkway
                         Suite 600
                         Atlanta, Georgia  30339

Any notice, demand, or request which shall be served upon any of the parties in
the manner aforesaid shall be deemed sufficiently given for all purposes
hereunder (i) at the time such notice, demand or request is hand-delivered in
person, or (ii) on the day such notices, demands or requests are deposited in
the United States Mail or with such expedited delivery service in accordance
with the preceding portion of this Article XI. Either Purchaser or Seller shall
have the right from time to time to designate by written notice to the other
such other person or persons and at such other places in the United States as
Purchaser or Seller desires written notices, demands, or requests to be
delivered or sent in accordance herewith; provided, however, at no time shall
either party be required to send more than an original and two (2) copies of any
such notice, demand or request required or permitted hereunder.

                         ARTICLE XII -- SETTLEMENT ITEMS

         In addition to the items specifically mentioned in this Agreement to be
delivered at the Closing, Seller shall deliver the following items to Purchaser
at the Closing: any sewer, water and other utility bills and assessment bills
any part of which is to be paid by Purchaser; and a complete and accurate
statement setting forth the necessary information upon which any adjustment
shall be made at the Closing.

                                       7

<PAGE>

                             ARTICLE XIII -- ACCESS

         Purchaser and its agents and representatives shall have the right to
enter upon the Property at any reasonable time prior to the Closing Date, for
any lawful purpose, including, without limitation, investigations, tests and
studies, structural inspection, and survey purposes; provided, however,
Purchaser shall pay for all such work performed on the Property and shall not
permit the creation of any lien in favor of any contractor, subcontractor,
materialman, mechanic, surveyor, architect or laborer, and Purchaser hereby
expressly agrees to indemnify and hold Seller harmless with respect thereto; and
provided further, however, that Purchaser hereby expressly agrees to indemnify
and hold Seller harmless against any claim, damage or injury to either persons
or property arising out of Purchaser's or its agent's, employees' or
representatives' actions under this Article XIII. This Article XIII shall
survive the Closing of the transaction contemplated herein or any other
termination of this Agreement.

                             ARTICLE XIV -- BROKERS

         A. Purchaser and Seller hereby represent to each other that no real
estate broker or agent was involved in negotiating the transaction contemplated
herein. In the event any claim(s) for real estate commissions, fees or
compensation arise in connection with this Agreement and the transaction
contemplated herein, the party so incurring or causing such claim(s) shall
indemnify, defend and hold harmless the other party from any loss, claim or
damage which the other party suffers because of said claim(s).

                           ARTICLE XV -- MISCELLANEOUS

         A. This Agreement constitutes the entire agreement between the parties
hereto and cannot be changed or modified other than by a written agreement
executed by both Purchaser and Seller.

         B. There shall also be executed and delivered at Closing all other
documents and instruments reasonably required or necessary to effect the
transaction contemplated herein.

         C. Irrespective of the place of execution or performance, this
Agreement shall be governed by and construed in accordance with the laws of the
State of Georgia. This Agreement shall be construed without regard to any
presumption or other rule requiring construction against the party causing this
Agreement to be drafted. If any words or phrases in this Agreement shall have
been stricken out or otherwise eliminated, whether or not any other words or
phrases have been added, this Agreement shall be construed as if the words or
phrases so stricken out or otherwise eliminated were never included in this
Agreement and no implication or inference shall be drawn from the fact that said
words or phrases were so stricken out or otherwise eliminated. All terms and
words used in this Agreement regardless

                                       8

<PAGE>

of the number or gender in which they are used, shall be deemed to include any
other number and any other gender as the context may require.

         D. This Agreement may be executed in more than one counterpart, each of
which shall be deemed an original.

         E. The captions of this Agreement are inserted for convenience or
reference only and do not define, describe or limit the scope or intent of this
Agreement or any of the terms hereof.

         F. Time is of the essence of this Agreement and each term and provision
hereof.

         G. If any term, covenant or condition of this Agreement or the
application thereof to any person or circumstance shall, to any extent, be
invalid or unenforceable, the remainder of this Agreement and the application of
such terms, covenants and conditions to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected
thereby and each term, covenant and condition of this Agreement shall be valid
and be enforced to the fullest extent permitted by law.

         H. All rights, powers and privileges conferred hereunder upon the
parties unless otherwise provided shall be cumulative and not restricted to
those given by law.

         I. No failure of any party to exercise any power given such party
hereunder or to insist upon strict compliance by any other party to its
obligations hereunder, and no custom or practice of the parties in variance with
the terms hereof, shall constitute a waiver of any party's right to demand exact
compliance with the terms hereof.

         J. Purchaser shall have the right to waive any condition or contingency
herein in Purchaser's favor and Seller shall have the right to waive any
condition or contingency herein in Seller's favor.

         K. Anything contained in this Agreement to the contrary
notwithstanding, (i) except as specifically set forth in this Agreement to the
contrary, the terms and provisions of this Agreement shall not survive Closing
and shall be merged into the Deed; and (ii) except as specifically set forth in
this Agreement to the contrary, Seller does not make any warranties or
representations of any kind or character, expressed or implied, with respect to
the Property, its physical condition, income to be derived therefrom or expenses
to be incurred with respect thereto, or any other matter or thing relating to or
affecting the Property, and there are no oral or written agreements, warranties
or representations with respect to the Property, except as otherwise expressly
set forth in this Agreement.

         L. The provisions of this Agreement shall extend to, bind and inure to
the benefit of the parties hereto and their respective successors, assigns and
the legal representatives of their estates.

                                       9

<PAGE>

         M. This Agreement may be assigned by Purchaser only if (i) together
therewith, Purchaser assigns all of its right, title and interest in and to the
Deposit, (ii) prompt written notification of the Assignment signed by both the
assignor and the assignee is given to Seller, and (iii) the assignee is either a
corporation of which Charles S. Roberts owns a majority interest, or a limited
partnership of which Charles S. Roberts is a general partner, or is a qualified
intermediary as contemplated in Section XV N below.

         N. Purchaser may wish to acquire the Property as replacement property
in connection with an exchange by Purchaser of relinquished property of like
kind and have the transaction qualify as an exchange pursuant to Section 1031 of
the United States Internal Revenue Code, as amended, and the Regulations
promulgated thereunder. Seller agrees to cooperate with Purchaser in effecting
such an exchange, including through the use of a qualified intermediary,
provided that such cooperation shall be at no cost or expense whatsoever to
Seller, and such exchange shall not delay Seller in the Closing of its sale of
the Property, nor excuse Purchaser from performing its obligations under this
Agreement in the event that Purchaser is unable to or is delayed in effecting
such an exchange.

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed, sealed and delivered the day and year first above written.

                                SELLER:

                                ROBERTS PROPERTIES, INC., a Georgia
                                corporation

                                By:  /s/ Charles S. Roberts
                                   -----------------------------
                                     Charles S. Roberts
                                     President

                                            (CORPORATE SEAL)

                                PURCHASER:

                                ROBERTS PROPERTIES RESIDENTIAL, L.P.,
                                a Georgia limited partnership

                                By: Roberts Realty Investors, Inc., a Georgia
                                    corporation, its sole general partner

                                        By:  /s/ Charles R. Elliott
                                           -------------------------
                                            Charles R. Elliott, CFO

                                               (CORPORATE SEAL)

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]