Document:

EX-10.1

PURCHASE AND SALE AGREEMENT

by

and

between

BRAEMAR HOUSING LIMITED PARTNERSHIP,

an Ohio limited partnership

“Seller”

and

TRIPLE NET PROPERTIES, LLC,

a Virginia limited liability company

1

“Purchaser”

PURCHASE AND SALE AGREEMENT

INDEX

	 	 	 	 	 	 	 	 	 	 	 	 	 
	1.IDENTIFICATION OF PARTIES
	 	 	 	 	 	 	 	 	 	 	1	 
	2.DESCRIPTION OF THE PROPERTY
	 	 	 	 	 	 	 	 	 	 	2	 
	3.THE PURCHASE PRICE
	 	 	 	 	 	 	 	 	 	 	3	 
	4.TITLE
	 	 	 	 	 	 	 	 	 	 	5	 
	5.REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER
	 	 	 	 	 	 	6	 
	6.REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER
	 	 	 	 	 	 	11	 
	7.SELLER’S DELIVERIES
	 	 	 	 	 	 	 	 	 	 	11	 
	8.CONDITIONS PRECEDENT TO CLOSING
	 	 	 	 	 	 	17	 
	9.ADDITIONAL COVENANTS OF SELLER
	 	 	 	 	 	 	18	 
	10.SELLER’S CLOSING DOCUMENTS
	 	 	 	 	 	 	 	 	 	 	22	 
	11.PURCHASER’S CLOSING DOCUMENTS
	 	 	 	 	 	 	24	 
	12.PRORATIONS AND ADJUSTMENTS
	 	 	 	 	 	 	 	 	 	 	25	 
	13.CLOSING
	 	 	 	 	 	 	 	 	 	 	26	 
	14.CLOSING COSTS
	 	 	 	 	 	 	 	 	 	 	27	 
	15.LOSS BY FIRE, OTHER CASUALTY OR CONDEMNATION
	 	 	 	 	 	 	27	 
	16.DEFAULT
	 	 	 	 	 	 	 	 	 	 	30	 
	17.POST CLOSING INDEMNIFICATION
	 	 	 	 	 	 	30	 
	18.BROKERS
	 	 	 	 	 	 	 	 	 	 	31	 
	19.MISCELLANEOUS
	 	 	 	 	 	 	 	 	 	 	32	 
	EXHIBITS
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	EXHIBIT A
	 	 	—	 	 	Legal Description of the Land	 	 	 	 
	EXHIBIT A-1 -
	 	 	 	 	 	Due Diligence Delivery Documents	 	 	 	 
	EXHIBIT B
	 	 	—	 	 	Rent Roll	 	 	 	 
	EXHIBIT C
	 	 	—	 	 	List of Personal Property	 	 	 	 
	EXHIBIT D
	 	 	—	 	 	List of Intangible Personal Property	 	 	 	 
	EXHIBIT E
	 	 	—	 	 	Schedule of Commissions	 	 	 	 
	EXHIBIT F
	 	 	—	 	 	Schedule of Contracts	 	 	 	 
	EXHIBIT G
	 	 	—	 	 	Schedule of Litigation and Disclosure Items	 	 	 	 
	EXHIBIT H
	 	 	—	 	 	Form of Certification of Non-Foreign Status	 	 	 	 
	EXHIBIT I
	 	 	—	 	 	Form of Certificate Regarding Representations and Warranties	 	 	 	 
	EXHIBIT J
	 	 	—	 	 	Form of Bill of Sale	 	 	 	 
	EXHIBIT K
	 	 	—	 	 	Form of Contract Assignment	 	 	 	 
	EXHIBIT L
	 	 	—	 	 	Form of Lease Assignment	 	 	 	 
	EXHIBIT M
	 	 	—	 	 	Form of Notice to Tenants	 	 	 	 
	EXHIBIT N
	 	 	—	 	 	Form of Representation Letter	 	 	 	 

2

PURCHASE AND SALE AGREEMENT

1. IDENTIFICATION OF PARTIES

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is entered into as of April 26,
2007, between BRAEMAR HOUSING LIMITED PARTNERSHIP, an Ohio limited partnership (“Seller”)
and TRIPLE NET PROPERTIES, LLC, a Virginia limited liability company (“Purchaser”).

R E C I T A L S:

A. Seller owns that certain real property located in the County of Mecklenburg, State of North
Carolina (the “State”), consisting of approximately twelve (12) acres of land, commonly
known as “Residences at Braemar”, and more particularly described on Exhibit A attached
hereto and incorporated herein by this reference (the “Land”), together with the
improvements located thereon, containing one hundred sixty (160) apartments, and all other
improvements located thereon (the “Improvements”).

B. Seller desires to sell to Purchaser, and Purchaser desires to purchase from Seller, all of
Seller’s right, title and interest in and to the Property (hereinafter defined) for the price and
on the terms and conditions hereinafter set forth.

C. The date the Escrow Agent (hereinafter defined) receives a fully executed copy of this
Agreement shall be the “Effective Date.”

NOW, THEREFORE, in consideration of the foregoing, the covenants and agreements hereinafter
set forth, and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

2. DESCRIPTION OF THE PROPERTY

Seller hereby agrees to sell and convey to Purchaser and Purchaser hereby agrees to purchase
from Seller all of Seller’s right, title and interest in and to the following:

(a) The Land, together with the Improvements;

(b) All of Seller’s interest as lessor in all leases covering the Land and the Improvements
(said leases, together with any and all amendments, modifications or supplements thereto, are
hereinafter referred to collectively as the “Leases” and are identified in the Rent Roll
(hereinafter defined) attached hereto as Exhibit B);

(c) All rights, privileges, easements and appurtenances appertaining to the Land and the
Improvements including, without limitation, all easements, rights-of-way and other appurtenances
used, connected with or inuring to the beneficial use or enjoyment of the Land and the
Improvements. The Land, the Improvements and all such rights, privileges, easements and
appurtenances (including, without limitation, Seller’s interest as lessor under the Leases) are
sometimes hereinafter collectively referred to as the “Real Property;”

(d) All personal property, equipment, supplies and fixtures (collectively, the “Personal
Property”) owned by Seller and used in the operation of the Real Property including, without
limitation, all property described in Exhibit C attached hereto; and

(e) All intangible property used in connection with the foregoing including, without
limitation, all trademarks, trade names (including, without limitation, the exclusive right to use
the name “Residences at Braemar”), and the contract rights, licenses (to the extent transferable),
permits (to the extent transferable) and warranties (to the extent transferable), more particularly
described in Exhibit D attached hereto (the “Intangible Personal Property”). The
Real Property, the Personal Property and the Intangible Personal Property are sometimes hereinafter
collectively referred to as the “Property.”

3. THE PURCHASE PRICE

(a) The purchase price for the Property is Fifteen Million and No/100 Dollars ($15,000,000.00)
(the “Purchase Price”) and shall be paid to Seller by paying the balance of the Purchase
Price by wire transfer of immediately available funds at the Closing (hereinafter defined), net of
any mortgage loan Purchaser elects to assume pursuant to the terms of this Agreement and net of all
prorations and adjustments as provided herein.

(b) Within two (2) business days of the execution of this Agreement, Purchaser shall deliver
to LandAmerica American Title, 8201 Preston Road, Suite 280, Dallas, Texas 75225,
Attention: Debby S. Moore, as escrow agent (“Escrow Agent”), by wire transfer in
the amount of $150,000 (the “Initial Deposit” and together with the Extension Deposit,
hereinafter defined, collectively the “Deposit”), which Deposit Escrow Agent shall hold and
disburse in accordance with the terms and provisions of this Agreement and a written escrow
agreement (the “Escrow Agreement”). For purposes of this Agreement, the term
“Deposit” includes interest earned thereon, if any. All interest earned on the Deposit,
until Closing or payment to Seller, shall be attributed to Purchaser for federal income tax
purposes; Purchaser’s federal tax identification number is set forth on the signature page of this
Agreement. Escrow Agent shall pay the Deposit to Seller at Closing, and the Deposit shall be
applied as a credit to the Purchase Price and shall otherwise be held and disbursed in accordance
with the terms of this Agreement and the Escrow Agreement. If either Purchaser or Seller is
entitled under this Agreement to the payment of the Deposit, or any portion thereof, and requests
Escrow Agent to make such payment (whether to itself or the other party), the other party agrees
promptly to provide notice to Escrow Agent authorizing such payment, unless such other party
disagrees with such request in which event the provisions of the Escrow Agreement shall control.

(c) Purchaser, in its sole discretion, may elect to assume Seller’s obligations under that
certain loan (the “Assumed Loan”) made by Transamerica Occidental Life Insurance Company,
an Iowa corporation (the “Lender”), to Seller evidenced by a promissory note dated May 25,
2005 (the “Note”) in the original principal amount of Ten Million and No/100 Dollars
($10,000,000.00), the outstanding principal amount of which will be approximately Nine Million
Seven Hundred Fifty Thousand and No/100 Dollars ($9,750,000.00) after the monthly debt service
payment in May of 2007, which Note is secured by a Deed of Trust, Security Agreement and Fixture
Filing dated May 25, 2005 (the “Deed of Trust”), and the Purchase Price shall be adjusted
and reduced by the amount of the Assumed Loan. In the event Purchaser elects to assume the Assumed
Loan, Purchaser shall pay assumption fees and Lender’s counsel fees, in each case, payable to
Lender, and Seller shall cooperate, without charge to Purchaser, to facilitate such assumption and
it shall be a condition to Closing (notwithstanding Section 13 below) that (i) Purchaser
and the Lender (each in its sole and absolute discretion) shall be satisfied with all environmental
conditions related to the Real Property and any adjoining property in the vicinity of the Real
Property, which Purchaser shall be entitled to discuss with the Lender prior to Closing in such
detail as Purchaser shall deem appropriate, and (ii) Lender has approved the assumption of the
Assumed Loan in accordance with the terms of the Deed of Trust (including without limitation
Article 14 thereof) and the other “Loan Documents” (as defined in the Deed of Trust). In the event
Purchaser elects not to assume the Assumed Loan, the Assumed Loan and the Deed of Trust and other
documents related thereto shall be deemed to be “Disapproved Matters” (as hereinafter
defined), such loan shall be paid in full at Closing and such Deed of Trust and all other documents
evidencing and/or securing such loan shall be satisfied and released of record. Any prepayment fee
payable to Lender shall be borne by Purchaser in the case of a prepayment of such loan, and Seller
will cooperate, without charge to Purchaser, to facilitate such prepayment.

4. TITLE

(a) Promptly following the execution of this Agreement, Purchaser shall order, at Purchaser’s
expense, a title commitment on the Real Property (the “Commitment”), together with legible
copies of all documents relating to the title exceptions referred to in the Commitment.

(b) As soon as possible following the execution of this Agreement, Purchaser shall order, at
Purchaser’s own expense, an updated survey of the Real Property sufficient to enable title company
to issue an ALTA owner’s policy of title insurance (the “Survey”), showing lot lines and
monuments, building lines, easements both burdening and benefiting the Real Property, utilities,
including water and sewer lines to the point of connection with the public system, the Improvements
(including loading docks, if any, and parking spaces), encroachments, if any, on the Real Property
or over adjoining properties, and other matters located on or affecting the Real Property, together
with a certificate as to whether the Real Property lies within a flood zone as determined by the
U.S. Department of Housing and Urban Development. The Survey shall be certified as true and
correct by the surveyor for the benefit of Purchaser and title company.

Prior to the end of the Due Diligence Period (hereinafter defined), Purchaser shall give
notice (the “Title Notice”) to Seller of any objections Purchaser may have to title or
survey matters affecting the Real Property (“Disapproved Matters”). All title exceptions
set forth in the Commitment not objected to by Purchaser shall constitute the “Permitted
Encumbrances.” As a condition to the Closing, Seller shall use its best efforts to remove, or
cause to be removed, all Disapproved Matters or, in the alternative, obtain title insurance in a
form satisfactory to Purchaser insuring against the effect of such Disapproved Matters.
Notwithstanding the foregoing, Seller shall be obligated to remove all monetary encumbrances at or
prior to Closing other than the Assumed Loan in the event Purchaser, at its election, agrees to
assume the Assumed Loan. Within five (5) business days of receipt of the Title Notice, Seller
shall notify Purchaser in writing of any Disapproved Matters which Seller is unable to cause to be
removed or satisfactorily insured against. Purchaser shall, within five (5) business days after
receipt of such notice from Seller, elect, by giving written notice to Seller (i) to terminate this
Agreement, in which event the Deposit shall be returned to Purchaser, or (ii) to waive its
disapproval of such exceptions or survey matters, in which event such exceptions or survey matters
as to which Purchaser has waived its objections shall be deemed to be “Permitted
Encumbrances”). Failure by the Purchaser to give the Seller notice pursuant to the preceding
sentence shall constitute a determination by Purchaser to terminate this Agreement for title or
survey objections.

5. REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER

Seller hereby represents, warrants and covenants to Purchaser that the following matters are
true and correct as of the execution of this Agreement and will also be true and correct as of the
Closing:

(a) Seller is a limited partnership duly organized and validly existing under the laws of the
State of Ohio. This Agreement has been, and all the documents executed by Seller which are to be
delivered to Purchaser at the Closing will be, duly authorized, executed and delivered by Seller
and will be legal, valid and binding obligations of Seller enforceable against Seller in accordance
with their respective terms (except to the extent that such enforcement may be limited by
applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the
right of contracting parties generally), will be sufficient to convey title (if they purport to do
so) and will not violate any provisions of any agreement to which Seller is a party or to which the
Property or Seller is subject or bound. No consent, waiver or approval by any third party is
required in connection with the execution and delivery by Seller of this Agreement or the
performance by Seller of the obligations to be performed by Seller under this Agreement.

(b) Seller has not received notice (from any applicable governmental entity or otherwise) of
any violation of any applicable building codes, environmental, zoning, subdivision and land use
laws, and other local, state and federal laws and regulations affecting the use and/or operation of
the Property.

(c) (i) The plans and specifications, certificate(s) of occupancy, warranties, operating
statements, income and expense reports and all other contracts or documents required to be
delivered to Purchaser pursuant to this Agreement are true, correct and complete copies; and (ii)
the certificate(s) of occupancy and warranties are in full force and effect.

(d) The Rent Roll attached hereto as Exhibit B is true, correct and complete. As of
the Closing, the Rent Roll delivered at the Closing will be true, correct and complete. The copies
of the Leases delivered to Purchaser are true, correct and complete copies and, to the best of
Seller’s knowledge, are in full force and effect, without default by any party and without any
right of setoff, except as expressly provided by the terms of such Leases or as disclosed to
Purchaser in writing at the time of delivery or identified on the Rent Roll. The copies of the
Leases and other agreements with the tenants under the Leases (the “Tenants”) delivered to
Purchaser pursuant to this Agreement constitute the entire agreements with such Tenants relating to
the Real Property, have not been amended, modified or supplemented, except for such amendments,
modifications and supplements delivered to Purchaser, and there are no other leases or tenancy
agreements affecting the Real Property.

(e) Exhibit F attached hereto is a true and complete schedule of all of the Contracts
(as hereinafter defined in Section 7), true, complete and correct copies of which will have
been delivered to Purchaser for Purchaser’s approval within ten (10) business days hereof. To the
best of Seller’s knowledge, the Contracts, and all other documents required to be delivered to
Purchaser pursuant to this Agreement, 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 such Contracts or as disclosed to Purchaser in writing at the time of such delivery. The
Contracts constitute the entire agreements with such vendors relating to the Property, have not
been amended, modified or supplemented, except for such amendments, modifications and supplements
delivered to Purchaser, and there are no other agreements with any third parties (excluding,
however, the Leases and Permitted Encumbrances) affecting the Property which will survive the
Closing.

(f) Except as disclosed to Purchaser in writing, there are no condemnation, environmental,
zoning or other land-use regulation proceedings, either instituted or, to the best of Seller’s
knowledge, threatened to be instituted, which would detrimentally affect the value of the Real
Property or the use and operation of the Real Property for its intended purpose, and there are no
assessments affecting the Real Property other than as set forth in the Commitment or as disclosed
in Exhibit G attached hereto.

(g) Seller has received no notice advising that (i) any utility required for the present use
and operation of the Property has not been installed across public property or valid easements to
the boundary lines of the Real Property, or is not connected pursuant to valid permits, or (ii)
such facilities are inadequate to service the Property or are not in good operating condition.

(h) To the best of Seller’s knowledge, Seller has obtained all licenses, permits, easements,
and rights-of-way, including proof of dedication, required from all governmental authorities having
jurisdiction over the Real Property or from private parties for the present use and operation of
the Real Property and to assure vehicular and pedestrian ingress to and egress from the Real
Property at all access points currently being used.

(i) 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 for 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 the Closing.

(j) Seller does not use, treat, store or dispose of, and Seller has not permitted anyone else
to use, treat, store or dispose of, whether temporarily or permanently, any hazardous or toxic
materials (“Hazardous Materials”) at, on or beneath the Real Property in violation of any
federal, state or local law, regulation or ordinance. Seller has no knowledge of the presence,
use, treatment, storage, release or disposal of any Hazardous Materials at, on or beneath the Real
Property which has created or might create any liability of owners or occupants of the Real
Property under any federal, state or local law or regulation or which would require reporting to a
governmental agency. Except as disclosed in writing to Purchaser, to the best of Seller’s
knowledge, no asbestos or PCBs are contained in or stored on the Real Property. To the best of
Seller’s knowledge, there are no storage tanks located in, on or under the Real Property.

(k) Seller has not received any notice from any insurance carrier of any defects or
inadequacies in the Property, or in any portion thereof, which would adversely affect the
insurability thereof or the cost of such insurance. Except as set forth on Exhibit G,
there are no pending insurance claims.

(l) Except as set forth in Exhibit G attached hereto, there are no pending or, to the
best of Seller’s knowledge, threatened legal proceedings or actions of any kind or character
affecting the Property or Seller’s interest therein. Except as delivered to Purchaser, there are
no litigation documents relating to any of the matters set forth in Exhibit G other than
routine landlord-tenant proceedings (relating to evictions and/or recovery of rent) in the ordinary
course of business.

(m) Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”), and Seller will furnish to Purchaser, prior
to the Closing, an affidavit in the form attached hereto as Exhibit H.

The representations and warranties made in this Agreement by Seller shall be continuing and
shall be deemed made by Seller as of the Closing with the same force and effect as if in fact made
at that time. All representations and warranties made in this Agreement shall not merge into any
instrument or conveyance delivered at the Closing but shall survive the Closing for a period of one
(1) year, at which time Seller’s liability with respect to such representations and warranties
shall terminate except as otherwise provided herein or in any document or instrument entered into
or delivered in connection with the transactions contemplated by this Agreement (including, without
limitation, the deed) and except as to claims asserted in writing within such one (1) year period.

6. REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASER

Purchaser hereby represents and warrants to Seller that this Agreement has been, and all the
documents to be delivered by Purchaser to Seller at the Closing will be, duly authorized, executed
and delivered by Purchaser (and have been or will be executed by an individual authorized to do
so), are, and in the case of the documents to be delivered will be, legal and binding obligations
of Purchaser, are, and in the case of the documents to be delivered will be, enforceable in
accordance with their respective terms (except to the extent that such enforcement may be limited
by applicable bankruptcy, insolvency, moratorium and other principles relating to or limiting the
rights of contracting parties generally), and do not, and will not at the Closing, violate any
provisions of any material agreement to which Purchaser is a party.

7. SELLER’S DELIVERIES

(a) Seller has delivered, or will deliver to Purchaser no later than five (5) days following
the execution hereof by all parties, the following documents and the documents listed on
Exhibit A-1 (the “Due Diligence Documents”):

(i) A current rent roll pertaining to the Real Property (the “Rent Roll”)
setting forth in respect of each Tenant unit: the name of the Tenant occupying such unit,
the security deposit or other deposit paid by the Tenant, the term of the Lease for such
unit, the commencement date for the term of the Lease for such space, the annual rent for
each unit, and the expiration date of the term of such Lease.

(ii) A statement of insurance coverage and premiums by policy type and copies of
insurance policies for the fire, extended coverage and public liability insurance maintained
by or for the benefit of Seller (the “Existing Insurance Policies”); provided that
Seller need not deliver such Policies to the extent coverage is provided by Seller’s blanket
policies.

(iii) A copy of all income and expense statements, year end financial and monthly
operating statements for the Property (the “Operating Statements”) for the three (3)
most recent full calendar years prior to the Closing and, to the extent available, the
current year, and copies of operating budgets for the current fiscal year.

(iv) A copy of “as built” plans and specifications of the Improvements and any other
plans and specifications relating to the Real Property in the possession or control of
Seller.

(v) Copies of any inspection, soils, engineering, environmental or architectural
notices, plans, diagrams, studies or reports in the possession or control of Seller which
relate to the physical condition or operation of the Real Property or the Personal Property
or recommended improvements thereto.

(vi) A copy of the bill or bills issued for the most recent year for which bills have
been issued for all real estate taxes (including assessed value) and personal property
taxes, and a copy of any and all notices in the possession or control of Seller pertaining
to real estate taxes or assessments applicable to the Real Property or the Personal Property
(the “Tax Bills”).

(vii) A copy of all outstanding management, leasing, maintenance, repair, service, pest
control and supply contracts (including, without limitation, janitorial, scavenger and
landscaping agreements), equipment rental agreements, all contracts for repair or capital
replacement to be performed at the Real Property, all contracts in Seller’s possession or
control for repair or capital replacement covering work performed at the Real Property
during the three (3) years immediately preceding the date hereof if the contract price was
in excess of $10,000, and any other contracts relating to or affecting the Property (other
than Leases) which will be binding upon the Property or Purchaser subsequent to the Closing,
all as amended (collectively, the “Contracts”).

(viii) A copy of all Leases and any other agreements which are in effect thereto with
the Tenants of the Real Property, all as amended, together with any financial statements of
such Tenants to the extent such disclosure is not restricted by any applicable confidential
agreement and to the extent such financial statements are in the possession or control of
Seller.

(ix) Copies of all certificate(s) of occupancy, licenses, permits, authorizations and
approvals in the possession or control of Seller which were obtained by Seller with respect
to the Property, or any portion thereof, occupancy thereof or any present use thereof,
including, without limitation, such permits as are necessary for the present operation of
the Property with full use of all Improvements located thereon (the “Governmental
Approvals”).

(x) A copy of all third party guarantees and warranties relating to the Property in the
possession or control of Seller.

(xi) Copies of pending insurance claims or litigation documents relating to the
Property.

(xii) Any other documents and information in the possession or control of Seller
reasonably requested by Purchaser and used or useful in connection with Seller’s ownership
or operation of the Property, including, without limitation, all documents evidencing,
securing or otherwise relating to the Assumed Loan.

Notwithstanding anything to the contrary contained in this Agreement, in the event that
Seller, despite its good-faith efforts, shall be unable to fully perform its obligations to deliver
all of the documents and information as required under this Section 7, then Purchaser’s
sole remedy shall be the right to elect, by giving written notice to Seller, either (i) to
terminate this Agreement and have the Deposit returned to it or (ii) to waive such failure to
provide such documents and information and to consummate the transaction contemplated hereby with
no adjustment in the Purchase Price. If Purchaser elects to terminate this Agreement, the Deposit
shall be returned to Purchaser, and thereafter this Agreement shall become null and void with no
further obligation on the part of either party.

For a period of thirty (30) days after the Effective Date (the “Due Diligence Period”)
and with prior reasonable notification to Seller, Purchaser, its agents and representatives shall
be entitled: (i) to enter onto the Real Property during normal business hours to perform
inspections and tests of the Real Property or the Personal Property, including all leased areas
(subject to the rights of the Tenants) and structural and mechanical systems within the
Improvements; (ii) to examine and copy any and all books and records maintained by Seller or its
agents relating to receipts and expenditures pertaining to the Property; (iii) subject to the terms
of the Leases, to interview the Tenants during normal business hours; (iv) to examine for the
presence or absence of hazardous or toxic materials, substances or wastes (collectively,
“Hazardous Materials”); and (v) to review the documentation described in this subsection
(a). After making such tests and inspections, Purchaser agrees to promptly restore the Real
Property and the Personal Property to their condition prior to such tests and inspections.
Purchaser agrees to indemnify and hold harmless Seller from all loss, cost and expense (including
reasonable attorneys’ fees) incurred, suffered by, or claimed against Seller by reason of any
actual damage to the Real Property or the Personal Property or injury to persons caused by
Purchaser and/or its agents, employees or contractors in exercising its rights under clauses (i) or
(iv) above. The indemnification and hold harmless provisions of this Section 7 shall
survive any termination of this Agreement. All such investigations and inspections shall be done
in such a way as to minimize disruption of tenants’ business operations and interference with
tenants generally.

In the event that all aspects of the Property are not acceptable to Purchaser in its sole
discretion, Purchaser shall give written notice thereof to Seller and Escrow Agent prior to the
expiration of the Due Diligence Period, the Deposit shall be returned to Purchaser and this
Agreement shall terminate and both Seller and Purchaser shall thereafter be relieved from any and
all liability under this Agreement except the indemnification obligation described in the preceding
paragraph.

Failure of the Purchaser to give the Seller a letter objecting to any of the documentation
described in subsection (a) of this Section 7 within the Due Diligence Period shall
constitute a determination by Purchaser to terminate this Agreement because of the unacceptability
of these items.

Purchaser shall give Seller written notice of those Contracts Purchaser desires Seller to
terminate prior to Closing and Seller shall arrange to terminate those Contracts designated by
Purchaser as of the Closing.

(b) PURCHASER SPECIFICALLY ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY PROVIDED IN
SECTION 5 OR OTHERWISE IN THIS AGREEMENT, SELLER IS SELLING AND PURCHASER IS PURCHASING THE
PROPERTY ON AN “AS IS WITH ALL FAULTS” BASIS AND THAT PURCHASER IS NOT RELYING ON ANY
REPRESENTATIONS OR WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS OR IMPLIED, FROM SELLER, ITS AGENTS,
OR BROKERS AS TO ANY MATTERS CONCERNING THE PROPERTY, INCLUDING, WITHOUT LIMITATION: (i) the
quality, nature, adequacy and physical condition of the Property, including, but not limited to,
the structural elements, foundation, roof, appurtenances, access, landscaping, parking facilities
and the electrical, mechanical, HVAC, plumbing, sewage, and utility systems, facilities and
appliances, (ii) the quality, nature, adequacy, and physical condition of soils, geology and any
groundwater, (iii) the existence, quality, nature, adequacy and physical condition of utilities
serving the Property, (iv) the development potential of the Property, and the Property’s use,
habitability, merchantability, or fitness, suitability, value or adequacy of the Property for any
particular purpose, (v) the zoning or other legal status of the Property or any other public or
private restrictions on use of the Property, (vi) the compliance of the Property or its operation
with any applicable codes, laws, regulations, statutes, ordinances, covenants, conditions and
restrictions of any governmental or quasi-governmental entity or of any other person or entity,
(vii) the presence of Hazardous Materials on, under or about the Property or the adjoining or
neighboring property, (viii) the quality of any labor and materials used in any improvements on the
Real Property, (ix) the condition of title to the Property, (x) the Leases or Contracts and
(xi) the economics of the operation of the Property.

(c) Without limiting the above, except with respect to a breach by Seller of any of the
representations and warranties contained in Section 5 hereof or Seller’s obligations
hereunder, or Seller’s fraud, Purchaser (on behalf of itself and its successors and assigns) waives
its right to recover from, and forever releases and discharges, Seller, Seller’s affiliates,
Seller’s investment manager, the partners, trustees, shareholders, directors, officers, employees
and agents of each of them, and their respective heirs, successors, personal representatives and
assigns, from any and all demands, claims, legal or administrative proceedings, losses,
liabilities, damages, penalties, fines, liens, judgments, costs or expenses whatsoever (including,
without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown,
foreseen or unforeseen, that may arise on account of or in any way be connected with the physical
condition of the Property or any law or regulation applicable thereto, including, without
limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended (42 U.S.C. Section 9601 et seq.), the Resource Conservation and Recovery Act of 1976
(42 U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Section 1251 et seq.), the Safe
Drinking Water Act (42 U.S.C. Section 300f et seq.), the Hazardous Materials Transportation Act
(49 U.S.C. Section 1801 et seq.), and the Toxic Substances Control Act (15 U.S.C. Section 2601
et seq.).

(d) The provisions of this Section 7 shall survive the Closing.

8. CONDITIONS PRECEDENT TO CLOSING

The following shall be conditions precedent to Purchaser’s obligation to consummate the
purchase and sale transaction contemplated herein (“Purchaser’s Conditions Precedent”):

(a) Title shall have been approved by Purchaser under Section 4 with title company
standing ready to issue an owner’s policy of title insurance in the form customarily delivered in
the State insuring Purchaser’s interest in the Real Property, dated the day of the Closing, with
liability in the amount of the Purchase Price, subject only to the Permitted Encumbrances, together
with such endorsements as Purchaser reasonably may require (the “Title Policy”). Any
endorsements required by Purchaser for which the Title Company charges a fee shall be paid for by
Purchaser.

(b) Seller and Purchaser shall each have executed and delivered to the other a certificate
(the “Certificate”) in the form attached hereto as Exhibit I updating their
respective representations and warranties through Closing, which Certificate each party covenants
to deliver to the other unless new matters or knowledge of a defect arises, in which case such
party shall deliver a Certificate stating such matter. Purchaser may then (i) waive such matter
and consummate the transaction contemplated hereby or (ii) terminate this Agreement, in which case
the Deposit shall be returned to Purchaser and neither party shall have any further obligations or
liabilities hereunder and any documents shall be returned to the party depositing the same.

(c) There shall be no Hazardous Materials at the Property that were not present at the end of
the Due Diligence Period.

In the event that any Purchaser’s Condition Precedent is not satisfied, Purchaser shall give
written notice thereof to the Seller and Escrow Agent, the Deposit shall be returned to the
Purchaser and this Agreement shall terminate and both Seller and Purchaser shall thereafter be
relieved from any and all liability under this Agreement except for the indemnification and hold
harmless provisions contained in Section 7.

9. ADDITIONAL COVENANTS OF SELLER

Seller hereby covenants with Purchaser, as follows:

(a) Prior to the expiration of the Due Diligence Period, Seller shall not enter into any
Contract with respect to the Property without giving Purchaser written notice of its execution.
After the expiration of the Due Diligence Period and prior to the Closing, Seller shall not enter
into any Contract with respect to the Property which will survive the Closing or will otherwise
affect the use, operation or enjoyment of the Property after the Closing, unless Seller first shall
have obtained Purchaser’s prior written consent. If Purchaser has not notified Seller within five
(5) business days of receipt of a request for approval of its decision, Purchaser shall be deemed
to have approved the matter.

(b) The Existing Insurance Policies, or equivalent coverage, shall remain continuously in
force through the day of the Closing.

(c) At all times prior to the Closing, Seller shall (i) operate and manage the Property in the
same manner it presently operates and manages the Property, (ii) maintain present services, (iii)
maintain the Property in good repair and working order, reasonable wear and tear excepted, (iv)
keep on hand sufficient materials, supplies, equipment and other personal property for the
efficient operation and management of the Property in a first class manner, and (v) perform when
due all of Seller’s material obligations under the Leases, the instruments securing any mortgage
lien on the Property, Contracts, Governmental Approvals and other agreements relating to the
Property and otherwise in accordance with applicable laws, ordinances, rules and regulations
affecting the Property. 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”). Purchaser 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 days prior to Closing and that is not rent-ready (as reasonably determined by Purchaser
based on standards customary in the industry) and available for occupancy as of the day of Closing;
provided that such Seven Hundred Fifty and No/100 Dollars ($750.00) shall not include any costs to
cause the appliances to meet the Appliance Standards. After full execution of this Agreement and
until the Closing, Seller shall maintain all existing personnel on the Property in their current
employment positions at their current rates of compensation. In the event of the Closing of the
purchase of the Property, Purchaser shall not retain the existing employees and management agents
of Seller for the Property, and, accordingly, on the Closing, Seller shall (i) cause all employment
and management agreements respecting the Property to be terminated, and deliver evidence of such
termination to Purchaser, and (iii) remove all employees and management personnel from the
Property. Except for the obligation of Seller to use its reasonable efforts to fully enforce the
material obligations of Tenants under the Leases, nothing contained in this Section 9(c)
shall be deemed or construed as imposing any obligations of such Tenants onto Seller. Seller shall
take steps to terminate, as of the day of the Closing, those of the Contracts designated in writing
by Purchaser (no less than ten (10) days prior to Closing) which may by their terms be so
terminated. None of the Personal Property shall be removed from the Real Property, unless replaced
by Personal Property of equal or greater utility and value unless such Personal Property has no
value.

(d) Seller shall pay in full, prior to the Closing, all bills and invoices for labor, goods,
utility charges, material and services of any kind relating to the Property.

(e) Seller agrees to pay any brokerage or leasing fee or similar commission or other
compensation with respect to the Leases, if any (“Leasing Commissions”) which is or will
become due and payable prior to the Closing, except for lease renewals, or exercises of expansion
options, entered into after the date of this Agreement which shall be Purchaser’s obligation if the
Closing occurs. All other brokerage or leasing fees or similar commissions with respect to the
Leases which, on an absolute or contingent basis, will become due and payable after the Closing,
including fees or commissions or other compensation with respect to renewals are disclosed on
Exhibit E; the amount of such fees or commissions due on an absolute basis prior to Closing
will be credited against the Purchase Price payable by Purchaser at the Closing, however, all such
fees or commissions or other compensation due or payable after the Closing on an absolute or
contingent basis, to the extent disclosed on Exhibit E, shall become obligations of
Purchaser after the Closing.

(f) After the date hereof and prior to the Closing, except for leases in the ordinary course
of business above, no part of the Property, or any interest therein, shall be alienated, liened,
encumbered or otherwise transferred. Seller shall make all payments of principal and interest
required under any mortgages encumbering the Property due prior to the Closing.

(g) Seller agrees that it will, at any time and from time to time after the Closing, upon the
reasonable request of Purchaser and at Purchaser’s cost and expense, do, execute, acknowledge and
deliver, or cause to be done, executed, acknowledged and delivered, all such further acts, deeds,
assignments, transfers, conveyances and assurances as may be reasonably required for better
assigning, transferring and conveying the Property to Purchaser.

(h) Upon Purchaser’s request, for a period of six (6) months after the Closing, Seller shall
make all Seller’s records with respect to the Property available to Purchaser for inspection,
copying and audit by Purchaser’s designated accountants.

(i) Seller shall promptly notify Purchaser of any change in any condition with respect to the
Real Property or of any event or circumstance which makes any representation or warranty of Seller
to Purchaser under this Agreement materially untrue or misleading, or any covenant of Seller under
this Agreement incapable or less likely of being performed.

(j) Seller shall deliver to Purchaser on a monthly basis until Closing updated operating
statements and Rent Rolls.

(k) Seller shall not apply any tenant’s security deposit unless the tenant is out of its
premises as of Closing.

(l) Seller shall give Purchaser prompt notice of any fire or other casualty affecting the
Property.

(m) Seller shall give Purchaser prompt notice of any violation issued by any governmental
authorities with respect to the Property.

(n) Seller shall, at its sole cost and expense, remedy before Closing all violations of legal
requirements affecting or relating to the Real Property and known to the Seller.

10. SELLER’S CLOSING DOCUMENTS

At the Closing, Seller shall deliver to Purchaser the following, in form and substance
acceptable to Purchaser:

(a) A general warranty deed executed by Seller (the “Deed”), in recordable form,
conveying the Property to Purchaser, free and clear of all liens, encumbrances, security interests,
options and adverse claims of any kind or character except the Permitted Encumbrances.

(b) A Bill of Sale, executed by Seller (the “Bill of Sale”) in the form attached
hereto as Exhibit J, transferring, conveying and assigning and warranting to Purchaser, the
Personal Property, free and clear of all liens, encumbrances, security interests, options and
adverse claims of any kind or character other than the Permitted Encumbrances, together with the
original certificates of title thereto, if any.

(c) An assignment (the “Contract Assignment”) in the form attached hereto as
Exhibit K, executed by Seller, to Purchaser, of (i) those of the Contracts which Purchaser
has elected in writing to assume (the “Assigned Contracts”) with the agreement of Seller to
indemnify, protect, defend and hold Purchaser harmless from and against any and all claims,
damages, losses, costs and expenses (including attorneys’ fees) arising in connection with the
Assigned Contracts and related to the period prior to the Closing and a comparable indemnity from
Purchaser relating to the period following the Closing, (ii) any and all guarantees and warranties
used or made in connection with the operation, construction, improvement, alteration or repair of
the Property, and (iii) all right, title and interest of Seller and its agents in and to the
Intangible Personal Property (including the Governmental Approvals to the extent assignable).

(d) An assignment of lessor’s interest in the Leases (the “Lease Assignment”) in the
form attached hereto as Exhibit L executed by Seller, to Purchaser, together with an
agreement by Seller to indemnify, protect, defend and hold Purchaser harmless from and against any
and all claims, damages, losses, costs and expenses (including attorneys’ fees) arising in
connection with the Leases relating to the period prior to the Closing and a comparable indemnity
from Purchaser relating to the period following the Closing.

(e) To the extent not previously delivered to Purchaser, originals of the Leases, the
Contracts which have not been terminated pursuant to Section 9(c), certificate(s) of
occupancy and other instruments evidencing the Governmental Approvals in Seller’s possession or, if
such originals are not available, copies certified by Seller to be true, correct and complete
copies of such originals.

(f) Any keys in the possession of Seller to all locks located in the Property.

(g) Letters executed by Seller and Seller’s management agent, if any, addressed to all
Tenants, in form of Exhibit M attached hereto, notifying and directing payment of all rent
and other sums due from Tenants from and after the date of the Closing to be made at Purchaser’s
direction.

(h) Reasonable proof of the due authorization, execution and delivery by Seller of this
Agreement and the documents delivered by Seller pursuant hereto.

(i) A Rent Roll, prepared as of the day of the Closing, certified by Seller to be true and
correct through the day of the Closing.

(j) An affidavit from Seller in the form attached hereto as Exhibit H certifying that
such Seller is not a “foreign person” within the meaning of Section 1445(f)(3) of the Code.

(k) The Certificate.

(l) Any other documents, instruments or agreements called for hereunder which have not
previously been delivered or which may be required by Purchaser title insurance company to issue
the Title Policy.

11. PURCHASER’S CLOSING DOCUMENTS

At the Closing, Purchaser shall deliver to Seller:

(a) An executed counterpart of the Contract Assignment.

(b) An executed counterpart of the Lease Assignment.

(c) The Purchase Price, net of the Deposit and prorations and, if Purchaser elects to assume
the Assumed Loan, net of the Assumed Loan, by wire transfer and an amount.

(d) Reasonable proof of the authority of Purchaser’s signatories.

(e) Any other documents, instruments or agreements reasonably necessary to close the
transaction as contemplated by this Agreement.

12. PRORATIONS AND ADJUSTMENTS

The following shall be prorated and adjusted between Seller and Purchaser as of the day of the
Closing, except as otherwise specified:

(a) Collected Rents and other charges, other than for Tenants who owe Delinquent Rents (as
hereinafter defined), shall be prorated by credit to Purchaser. Prepaid rents and other charges
shall be credited to Purchaser. Rents unpaid for the month in which the Closing occurs, which are
uncollected as of Closing but which are received within the month in which the Closing occurs shall
be prorated. Rents and other charges which at the Closing are thirty (30) or more days past due
(“Delinquent Rents”) shall not be prorated. Rents and other amounts received by Purchaser
within thirty (30) days after the Closing from a Tenant owing Delinquent Rents shall be applied (i)
first, to all Purchaser’s costs of collection incurred with respect to such Tenant (including
reasonable attorneys’ fees); (ii) second, to rents due for the month in which such payment is
received by Purchaser; (iii) third, to rents attributable to any period after the Closing which are
past due on the date of receipt; and (iv) then, to Delinquent Rents. Seller shall promptly remit
to Purchaser all sums received by Seller from Tenants after the Closing other than for rents for
which Purchaser received credit hereunder.

(b) The amount of all security and other Tenant deposits and interest due thereon, if any,
shall be credited to Purchaser.

(c) Accrued general real estate, personal property and ad valorem taxes and assessments for
the current tax year shall be prorated on the basis of bills, if available prior to the Closing.

(d) Such other items that are customarily prorated in transactions of this nature (including,
without limitation, any utilities paid by Seller under the Leases) shall be prorated.

The provisions of this Section 12 shall survive the Closing.

Purchaser shall be deemed to be the owner of the Property and, therefore, entitled to the
income from the Property and responsible for the expenses of the Property for the entire day upon
which the Closing occurs. All such prorations shall be made on the basis of the actual number of
days of the month which shall have elapsed as of the day of the Closing. To the extent information
necessary to make such prorations is not available at the Closing, the amount of such prorations
shall be subject to adjustment in cash after the Closing as and when complete and accurate
information becomes available. Seller and Purchaser agree to cooperate and use their best efforts
to make such adjustments no later than sixty (60) days after the Closing. Except as set forth in
this Section 12, all items of income and expense for the period prior to the Closing Date
will be for the account of Seller and all items of income and expense for the period on and after
the Closing Date will be for the account of Purchaser, all as determined by the accrual method of
accounting. Bills received after the Closing Date which relate to expenses incurred, services
performed or other amounts allocable to the period prior to the Closing Date shall be paid by
Seller.

13. CLOSING

The purchase and sale contemplated herein shall close at the offices of Escrow Agent within
thirty (30) days after expiration of the Due Diligence Period or at such other time, date and place
as the parties shall mutually agree. As used herein, the terms “Closing” and “Closing
Date” shall mean the date on which Escrow Agent (i) has received all funds and all documents
(property executed and acknowledged, as necessary) as required hereunder, (ii) is in a position to
record the Deed and issue the Title Policy, and (iii) has taken all actions necessary to consummate
the transaction contemplated by this Agreement. Purchaser shall have the right to extend the
closing date for thirty (30) days (the “Extension”) upon (i) giving Seller notice to do so
at least three (3) business days prior to the originally scheduled Closing Date and (ii) payment to
Escrow Agent of an extension deposit (the “Extension Deposit”) of One Hundred Fifty
Thousand and No/100 Dollars ($150,000.00). Upon Purchaser’s exercise of the Extension in
accordance with this Section 13 the Initial Deposit shall become non-refundable to
Purchaser, except as otherwise expressly provided herein (including without limitation in the event
of a default by Seller under this Agreement or in the event that any of Purchaser’s Conditions
Precedent are not satisfied pursuant to Section 8 above, whereupon the Deposit shall be
returned to Purchaser in accordance with the terms of this Agreement).

14. CLOSING COSTS

Seller shall pay the cost of the title policy. In connection with the sale of the Property
contemplated under this Agreement, Seller shall be responsible for all transfer and recordation
taxes, including, without limitation, all transfer, sales or bulk transfer taxes or like taxes on
or in connection with the transfer of the Personal Property constituting part of the Property
pursuant to the Bill of Sale and all accrued taxes of Seller prior to Closing and income taxes and
other such taxes of Seller attributable to the sale of the Property to Purchaser. Each party shall
bear the expense of its own counsel.

15. LOSS BY FIRE, OTHER CASUALTY OR CONDEMNATION

(a) In the event that prior to the Closing, the Improvements, or any part thereof, are
destroyed or materially damaged (as defined in Section 15(e)), Purchaser shall have the
right, exercisable by giving notice to Seller within fifteen (15) business days after receiving
written notice of such damage or destruction, either (i) to terminate this Agreement, in which case
neither party shall have any further rights or obligations hereunder except any indemnification
obligations of Purchaser, and the Deposit shall be returned to Purchaser and any documents shall be
returned to the party depositing the same, or (ii) to accept the Improvements in their then
condition and to proceed with the Closing with an abatement or reduction in the Purchase Price in
the amount of the deductible for the applicable insurance coverage, and to receive an assignment of
all of Seller’s rights to any insurance proceeds payable by reason of such damage or destruction.
If Purchaser elects to proceed under clause (ii) above, Seller shall not compromise, settle or
adjust any claims to such proceeds without Purchaser’s prior written consent.

(b) In the event that prior to the Closing there is any non-material damage to the
Improvements, or any part thereof, Seller shall repair or replace such damage prior to the Closing.
Notwithstanding the preceding sentence, in the event Seller is unwilling or unable to repair or
replace such damage, Seller shall notify Purchaser of such fact (“Seller’s Notice”) and
Purchaser thereafter shall have the right, exercisable by giving Seller notice within fifteen (15)
days after receiving Seller’s Notice either (i) to terminate this Agreement, in which case neither
party shall have any further rights or obligations hereunder except any indemnification obligations
of Purchaser, and the Deposit shall be returned to Purchaser and any documents shall be returned to
the party depositing the same, or (ii) to accept the Improvements in their then condition with an
abatement or reduction in the Purchase Price in the amount of the deductible for the applicable
insurance coverage and proceed with the Closing, in which case Purchaser shall be entitled to an
assignment of all of Seller’s rights to insurance proceeds payable by reason of such non-material
damage. For purposes of contemplating any repairs or replacements under this Section
15(b), the Closing may be extended for a reasonable time to allow such repairs or replacements
to be made by Seller.

(c) In the event that prior to the Closing, all or any material portion (as defined in
Section 15(e)) of the Land and Improvements are subject to a taking by public authority,
Purchaser shall have the right, exercisable by giving notice to Seller within fifteen (15) business
days after receiving written notice of such taking, either (i) to terminate this Agreement, in
which case neither party shall have any further rights or obligations hereunder except any
indemnification obligations of Purchaser and the Deposit shall be returned to Purchaser and any
documents shall be returned to the party depositing the same, or (ii) to accept the Land and
Improvements in their then condition, without a reduction in the Purchase Price, and to receive an
assignment of all of Seller’s rights to any condemnation award payable by reason of such taking.
If Purchaser elects to proceed under clause (ii) above, Seller shall not compromise, settle or
adjust any claims to such award without Purchaser’s prior written consent.

(d) In the event that prior to the Closing, any non-material portion of the Land or
Improvements is subject to a taking, Purchaser shall accept the Property in its then condition and
proceed with the Closing, in which case Purchaser shall be entitled to an assignment of all of
Seller’s rights to any award in connection with such taking. In the event of any such non-material
taking, Seller shall not compromise, settle or adjust any claims to such award without Purchaser’s
prior written consent.

(e) For the purpose of this Section 15, damage to the Improvements or a taking of a
portion thereof shall be deemed to involve a material portion thereof if the reasonably estimated
cost of restoration or repair of such damage or the amount of the condemnation award with respect
of such taking shall exceed One Hundred Thousand and No/100 Dollars ($100,000.00), if the number of
parking spaces is reduced or the entrances and entrance signs are relocated.

(f) Seller agrees to give Purchaser prompt notice of any taking, damage or destruction of the
Land or Improvements.

(g) The provisions of this Section 15 shall survive the Closing subject to the
conditions and limitations set forth in this Section 15.

16. DEFAULT

(a) The parties agree that, in the event of a default by Purchaser under this Agreement, the
damages suffered by Seller would be difficult to ascertain. Seller and Purchaser agree that, in
the event of a default by Purchaser, Seller’s sole remedy shall be to terminate this Agreement and
retain the Deposit (including accrued interest thereon), as liquidated damages, and Seller hereby
specifically waives the right to seek specific performance of this Agreement by Purchaser or other
damages.

(b) In the event of a default hereunder by Seller, Purchaser shall have at its option either
to (i) bring an action for specific performance of this Agreement or (ii) terminate this Agreement,
and have the Deposit returned to it and be reimbursed for its actual out-of-pocket due diligence
expenses. In the event of a willful default by Seller, in addition to receiving the Deposit and
reimbursement for its actual out-of-pocket due diligence expenses, Purchaser shall be reimbursed
for any non-refundable fees paid to its lender, including, but not limited to fees for third party
reports, attorneys, rate lock, application and commitment fees in which case neither party shall
have any further rights or obligations hereunder except any indemnification obligations of
Purchaser.

17. POST CLOSING INDEMNIFICATION

(a) Seller hereby agrees to indemnify, hold harmless and defend Purchaser and any successor in
interest (the “Indemnified Parties”) from and against:

(i) any loss, liability or damage suffered or incurred by the Indemnified Parties
because any representation or warranty made by Seller in this Agreement was incorrect in any
material respect or as a result of any legal action filed against Purchaser as a result of
events arising at the Property prior to Closing and not caused by Purchaser; and

(ii) all costs and expenses (including reasonable attorneys’ fees and disbursements)
incurred by the Indemnified Parties in connection with any action, suit, proceeding, demand,
assessment or judgment incident to any of the matters indemnified against in this
Section 17(a).

(b) Purchaser hereby agrees to indemnify, hold harmless and defend Seller from and against:

(i) any loss, liability or damage suffered or incurred by Seller because any
representation or warranty made by Purchaser in this Agreement was incorrect in any material
respect; and

(ii) all costs and expenses (including reasonable attorneys’ fees and disbursements)
incurred by Seller in connection with any action, suit, proceeding, demand, assessment or
judgment incident to any of the matters indemnified against in this Section 17(b).

(c) The provisions of this Section 17 shall survive the Closing for a period of one
(1) year, at which time the indemnification obligations of Seller and Purchaser pursuant to this
Section 17 shall terminate except as to claims asserted within such one (1) year period.

18. BROKERS

(a) Seller represents and warrants to Purchaser that no brokerage commissions, finder’s fees
or other compensation is due or payable by reason of the actions of Seller with respect to the
transaction contemplated hereby. Seller agrees to indemnify and hold Purchaser harmless from and
against any losses, damages, costs and expenses (including attorneys’ fees) incurred by Purchaser
by reason of any breach or inaccuracy of the representation and warranty contained in this
Section 18(a).

(b) Purchaser represents and warrants to Seller that Purchaser has not entered into any
agreement or incurred any obligation which might result in the obligation to pay any brokerage
commission, finder’s fee or other compensation with respect to the transaction contemplated hereby.
Purchaser agrees to indemnify and hold Seller harmless from and against any losses, damages, costs
and expenses (including attorneys’ fees) incurred by Seller by reason of any breach or inaccuracy
of the representation and warranty contained in this Section 18(b).

(c) The provisions of this Section 18 shall survive the Closing.

19. MISCELLANEOUS

(a) Each individual and entity executing this Agreement hereby represents and warrants that he
or it has the capacity set forth on the signature pages hereof with full power and authority to
bind the party on whose behalf he or it is executing this Agreement to the terms hereof.

(b) This Agreement is the entire Agreement between the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements between the parties with respect to the
matters contained in this Agreement. Any waiver, modification, consent or acquiescence with
respect to any provision of this Agreement shall be set forth in writing and duly executed by or in
behalf of the party to be bound thereby. No waiver by any party of any breach hereunder shall be
deemed a waiver of any other or subsequent breach.

(c) This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but all of which when taken together shall constitute one and the same
instrument. The signature page of any counterpart may be detached therefrom without impairing the
legal effect of the signature(s) thereon provided such signature page is attached to any other
counterpart identical thereto except having additional signature pages executed by other parties to
this Agreement attached thereto.

(d) Any communication, notice or demand of any kind whatsoever which either party may be
required or may desire to give to or serve upon the other shall be in writing and delivered by
personal service (including express or courier service) or by registered or certified mail, postage
prepaid, return receipt requested, addressed as follows:

	 	 	 
	Seller:

	 	Braemar Housing Limited Partnership

3103 Camden Drive

Troy, MI  48084

Attn: Philip Levin
	With Copy to:

	 	Hertz, Schram & Saretsky, P.C.

1760 S. Telegraph Road, Suite 300

Bloomfield Hills, MI 48302

Attn: Kenneth F. Silver, Esq.
	Purchaser:

With Copy to:

	 	Triple Net Properties, LLC

c/o ROC Realty Advisors, LLC

1606 Santa Rosa Road, Suite 109

Richmond, VA 23229

Attn: Gus R. Remppies

McGuireWoods LLP

One James Center

901 E. Cary Street

Richmond, VA 23219

Attn: Nancy R. Little, Esq.

Any party may change its address for notice by written notice given to the other in the manner
provided in this Section. Any such communication, notice or demand shall be deemed to have been
duly given or served on the date personally served, if by personal service, or on the date shown on
the return receipt or other evidence of delivery, if mailed.

(e) The parties agree to execute such instructions to the Escrow Agent and such other
instruments and to do such further acts as may be reasonably necessary to carry out the provisions
of this Agreement.

(f) The making, execution and delivery of this Agreement by the parties hereto have been
induced by no representations, statements, warranties or agreements other than those expressly set
forth herein.

(g) Wherever possible, each provision of this Agreement shall be interpreted in such a manner
as to be valid under applicable law, but, if any provision of this Agreement shall be invalid or
prohibited thereunder, such invalidity or prohibition shall be construed as if such invalid or
prohibited provision had not been inserted herein and shall not affect the remainder of such
provision or the remaining provisions of this Agreement.

(h) The language in all parts of this Agreement shall be in all cases construed simply
according to its fair meaning and not strictly for or against any of the parties hereto. Section
headings of this Agreement are solely for convenience of reference and shall not govern the
interpretation of any of the provisions of this Agreement.

(i) This Agreement shall be governed by and construed in accordance with the laws of the State
in which the Property is located.

(j) This Agreement shall be binding upon and inure to the benefit of each of the parties
hereto and to their respective transferees, successors, and assigns; provided, however, that
neither this Agreement nor any of the rights or obligations of Seller hereunder shall be
transferred or assigned by Seller without the prior written consent of Purchaser. Purchaser shall
have the right to assign all of its right, title and interest under this Agreement without the
prior written consent of Seller to an entity managed or controlled by Purchaser or an affiliate of
Purchaser.

(k) All Exhibits attached hereto are incorporated herein by reference.

(l) Notwithstanding anything to the contrary contained herein, this Agreement shall not be
deemed or construed to make the parties hereto partners or joint venturers, or to render either
party liable for any of the debts or obligations of the other, it being the intention of the
parties to merely create the relationship of seller and purchaser with respect to the Property to
be conveyed as contemplated hereby.

(m) This Agreement shall not be recorded or filed in the public land or other public records
of any jurisdiction by either party and any attempt to do so may be treated by the other party as a
breach of this Agreement.

(n) Purchaser, during its inspection of the Real Property, agrees not to notify or advise of
the existing tenants of the Real Property that the Real Property is for sale until such time as all
conditions precedent to closing have been satisfied.

(o) During the period from the date of execution of this Agreement until the Closing or this
Agreement is terminated, Seller agrees not to market the Property for sale, accept any offer for
purchase, offer the Property for joint venture, apply for any financing, divulge to any potential
purchaser or joint venturer or lender any written material with respect to the Property nor divulge
nor communicate in any way to any potential purchaser or joint venturer or lender with respect to
the Property, any information with respect to the Property.

(p) Unless provided to the contrary in any particular provision, all time periods shall refer
to calendar days and shall expire at 5:00 p.m. Pacific Time on the last of such days; provided,
however, that if the time for the performance of any obligation expires on a day which is not a
“business day” (which term shall mean a Saturday, Sunday and days on which banks in the
state where the Property is located are closed), the time for performance shall be extended to the
next business day.

(q) The Seller acknowledges that Purchaser intends to assign all of its rights, title and
interest in and to this Agreement. The assignee may be a publicly registered company
(“Registered Company”) promoted by the Purchaser. The Seller acknowledges that it has been
advised that if the purchaser is a Registered Company, the assignee is 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”) for the Property. To assist
the assignee in preparing the SEC Filings, the Seller agrees to provide the assignee with the
following:

(1) Access to bank statements for the Audited Year;

(2) Rent Roll as of the end of the Audited Year;

(3) Operating Statements for the Audited Year;

(4) Access to the general ledger for the Audited Year;

(5) Cash receipts schedule for each month in the Audited Year;

(6) Access to invoice for expenses and capital improvements in the Audited
Year;

(7) Copies of all insurance documentation for the Audited Year;

(8) Copies of accounts receivable aging as of the end of the Audited Year and
an explanation for all accounts over 30 days past due as of the end of the Audited
Year; and

(9) Signed representation letter in the form attached hereto as Exhibit
N at the end of the field work.

The provisions of this document shall survive the Closing.

3

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed by their duly authorized representatives
as of the day and year first above written.

	 	 	 	 	 
	SELLER:	 	BRAEMAR HOUSING LIMITED	 	 
	 	 	PARTNERSHIP, an Ohio limited partnership
	
 
	 	By:
	 	TREYBURN HOUSING, LLC, an

Ohio limited liability company, its

General Partner
	
 
	 	 	 	By: /s/ Phillip Levin

Its: General Partner

	 	 	Federal Tax Identification Number: 31-1594467

	 	 	 	 	 
	PURCHASER:	 	TRIPLE NET PROPERTIES, LLC,	 	 
	 	 	a Virginia limited liability company
	
 
	 	By:

Its:
	 	/s/Richard Hutton 4/26/07

Executive Vice President

Federal Tax Identification Number: 33-0802019

4EX-10.2

ASSIGNMENT AND ASSUMPTION OF

REAL ESTATE PURCHASE AGREEMENT

This ASSIGNMENT AND ASSUMPTION OF PURCHASE AND SALE AGREEMENT (“Assignment Agreement”) is made
by and between TRIPLE NET PROPERTIES, LLC, a Virginia limited liability company (“Assignor”) and
APARTMENT REIT RESIDENCES AT BRAEMAR, LLC, a Delaware limited liability company (“Assignee”) as of
June 29, 2007 (“Effective Date”), with reference to the facts set forth below.

RECITALS

A. Assignor and Braemar Housing Limited Partnership (“Seller”) entered into that certain
Purchase and Sale Agreement dated April 26, 2007 (“Purchase Agreement”). Pursuant to the Purchase
Agreement, Assignor agreed to purchase from Seller that certain real property known as Residences
at Braemar in the City of Charlotte, Mecklenburg County, North Carolina, as more particularly
described in the Purchase Agreement (the “Property”).

B. Assignor desires to assign all of its rights and obligations under the Purchase Agreement
to Assignee and Assignee desires to assume such rights and obligations of Assignor under the
Purchase Agreement on the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the covenants contained herein, the premises set forth
above and for other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as set forth below.

1. Assignment and Assumption. In consideration of the covenants contained herein,
Assignor hereby assigns to Assignee all of its right, title, obligations, liabilities and interest
under the Purchase Agreement and in and to the Property, and Assignee hereby assumes all such
right, title, obligations, liabilities and interest under the Purchase Agreement and in and to the
Property, including, without limitation, all post-Closing obligations of Assignor under the
Purchase Agreement (“Assigned Rights and Obligations”). Assignor and Assignee agree to execute any
further documents or instruments reasonably required to effectuate the assignment of the Assigned
Rights and Obligations.

2. No Release of Assignor. Assignee’s assumption of the Assigned Rights and
Obligations shall not release Assignor of any liabilities or obligations under the Purchase
Agreement.

3. Successors and Assigns. Each and all of the covenants and conditions of this
Assignment Agreement shall inure to the benefit of and shall be binding upon the
successors-in-interest, assigns, and representatives of the parties hereto. Paragraphs 1 and 2 of
this Assignment Agreement also inure to the benefit of Seller and its successors and assigns.

4. Miscellaneous. Assignor and Assignee each hereby represents and warrants that it
has full right, power and authority to enter into this Assignment Agreement and that the person
executing this Assignment Agreement on behalf of Assignor and Assignee, respectively, is duly
authorized to do so. This Assignment Agreement may be executed in one or more counterparts, each
of which shall constitute an original and all of which when taken together shall constitute one and
the same instrument. This Assignment Agreement may be executed by facsimile transmission.

IN WITNESS WHEREOF, this Assignment Agreement has been made and executed as of the date first
above written.

ASSIGNOR:

TRIPLE NET PROPERTIES, LLC,

a Virginia limited liability company

	 	 	 
	By:

Name:

Title:

	 	/s/ Richard Hutton

Richard Hutton

Executive Vice President

	 	 	ASSIGNEE:

NNN APARTMENT REIT RESIDENCES AT

BRAEMAR, LLC, a North Carolina limited liability company

By: NNN Apartment REIT Holdings, L.P., a

Virginia limited partnership, its sole member

	 	 	 	By:
NNN Apartment REIT, Inc., a Maryland
	 
	 	 	 	corporation, its general partner

By: /s/ Shannon K S Johnson

Name: Shannon K.S. Johnson

Its: Chief Financial Officer

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