Document:

<PAGE>
                                                                 Exhibit 10.13.3
This instrument was prepared by and
following recordation should be returned to:

William E. Doster, Esquire
Lowndes, Drosdick, Doster,
   Kantor & Reed, P.A.
215 North Eola Drive
Post Office Box 2809
Orlando, Florida 32802

                         ASSIGNMENT OF RENTS AND LEASES

                           (STATE FARM LOAN NO. 13551)

         THIS ASSIGNMENT OF RENTS AND LEASES ("Assignment") made and executed
this 6th day of November, 2001 by ROBERTS PROPERTIES RESIDENTIAL, L.P., a
Georgia limited partnership, ("Borrower") whose mailing address for the purposes
of this instrument is c/o Roberts Realty Investors, Inc., Attn: Charles R.
Elliott, Chief Financial Officer, 8010 Roswell Road, Suite 120, Atlanta, Georgia
30350 to, in favor and for the benefit of STATE FARM LIFE INSURANCE COMPANY, an
Illinois corporation, ("State Farm") whose mailing address for purposes of this
instrument is One State Farm Plaza, E-3, Bloomington, Illinois 61710,

                                   WITNESSETH:

         WHEREAS, State Farm has made a loan to Borrower ("Loan") which is
evidenced by that certain Promissory Note executed by the Borrower to and in
favor of State Farm of even date herewith in the principal amount of Twenty-One
Million and 00/100 Dollars ($21,000,000.00) ("Note").

         WHEREAS, the Note is secured by (i) a Mortgage and Security Agreement
executed by Borrower and in favor of State Farm of even date herewith
("Mortgage") granting to State Farm, among other things, a first priority lien
and encumbrance upon the Real Estate (as defined in the Mortgage) and
Improvements (as defined in the Mortgage) legally described in Exhibit A
attached to this Assignment ("Premises"); and (ii) certain other Loan Documents
(as defined in the Mortgage), also executed by the Borrower to and in favor of
State Farm of even date herewith, the terms and provisions of which Mortgage and
other Loan Documents are by this reference thereto incorporated herein and made
a part hereof.

         WHEREAS, as a material inducement to State Farm to make the Loan and as
further security for the Loan, Borrower makes this Assignment.

         NOW, THEREFORE, for $10.00 and other good and valuable considerations,
the receipt and sufficiency of which are hereby acknowledged, Borrower agrees as
follows:

1.       ASSIGNMENT OF RENTS AND LEASES.

         1.1 DEFINITIONS. For purposes of this Assignment, the following
definitions shall apply:

                                       1
<PAGE>

         1.1.1 "CREDIT LEASES". The lease(s) on or with respect to the Premises,
including any sublease(s), assignment(s), and replacement lease(s) therefor,
listed and described on Exhibit B attached to this Assignment.

         1.1.2 "OTHER LEASES". Any lease(s) on or with respect to the Premises
other than the Credit Leases.

         1.1.3 "LEASES". Collectively, the Credit Leases and the Other Leases.

         1.1.4 "GUARANTEES". Any and all guarantees of the payment of rent by
and performance of all other obligations of the tenant(s) under the Leases.

         1.1.5 OTHER DEFINITIONS. Capitalized terms not otherwise defined in
this Assignment shall have the meanings ascribed to such terms in the Note, the
Mortgage and other Loan Documents.

         1.2 ASSIGNMENT OF RENTS. Subject to the terms and conditions of this
Assignment, Borrower hereby absolutely, unconditionally and irrevocably
transfers, conveys, assigns and grants to State Farm all of Borrower's right,
title and interest in and to all rents, issues, profits, proceeds, income,
revenues, royalties, advantages, avails, claims against guarantors, security and
other deposits (whether in cash or other form), advance rentals, damages,
insurance and condemnation proceeds and any and all other payments or benefits
now or hereafter derived, directly or indirectly, from the Real Estate and
Improvements, whether under the Leases or otherwise (collectively the "Rents").

         1.3 ASSIGNMENT OF LEASES. Subject to the terms and conditions of this
Assignment, Borrower hereby absolutely, unconditionally and irrevocably assigns
and grants to State Farm all of Borrower's right, title and interest as landlord
in, to and under all Leases, together with any and all Guarantees.

         1.4 ABSOLUTE ASSIGNMENTS. The foregoing assignments of Rents and Leases
are present and absolute assignments and not assignments for or as security
only. State Farm's right to the Rents and Leases is not contingent upon its
possession of the Premises.

         1.5 LICENSE. State Farm hereby grants to and confers upon Borrower a
revocable license to collect and retain the Rents as the same become due and
payable under the Leases, but not in excess of 30 days in advance, so long as,
and only so long as, no Event of Default (as herein defined) exists under this
Assignment, the Note, the Mortgage or any of the other Loan Documents (the
"License"). Upon the occurrence of an Event of Default under this Assignment,
the Note, the Mortgage or any of the other Loan Documents, the License granted
and conferred herein shall immediately and automatically be revoked, cease and
terminate without notice.

         Upon any such revocation and termination of the License, State Farm
shall have the right to notify all tenants under the Leases to pay the Rents
then due and thereafter coming due directly to State Farm. After such revocation
and termination of the License, any and all Rents

                                       2
<PAGE>

received by the Borrower, shall be remitted to State Farm not later than three
(3) business days following Borrower's receipt of the same.

         Borrower hereby authorizes and directs any tenant under the Leases,
upon receipt of written notice from State Farm stating that an Event of Default
has occurred or exists under the Note, the Mortgage or any of the other Loan
Documents, to pay directly to State Farm the Rents then due and thereafter
coming due under the Leases. Borrower agrees that any tenant shall have the
right to rely upon any such notice from State Farm without any obligation, and
without any right, to inquire as to whether any such Event of Default has
actually occurred or exists and notwithstanding any claim of Borrower to the
contrary. Borrower shall have no claim (and hereby waives any claim) against any
tenant for the Rents paid by such tenant directly to State Farm following its
receipt of any such notice from State Farm.

         1.6 COVENANTS.

         1.6.1 NEGATIVE COVENANTS. As to the Leases, generally, except as
provided in Section 1.6.3, Borrower hereby covenants and agrees that it shall
not, without the prior written consent of State Farm, (i) alter, modify, cancel,
terminate, discharge or compromise the Leases or the Rents due or to become due
thereunder or change the terms of any Guarantees; (ii) accept any Rents for more
than one installment in advance; (iii) waive, release, reduce, discount or
otherwise discharge or compromise any Rents; (iv) waive, release, reduce,
discount or otherwise discharge or compromise any Guarantees; or (v) execute any
other assignment of the Leases or the Rents, whether absolute or conditional.

         1.6.2 AFFIRMATIVE COVENANTS. As to the Credit Leases only, Borrower
shall: (i) promptly notify State Farm in writing of any default or of any
attempted termination, relocation or buyout, or any notice of the same given by
either the Borrower or any tenant; (ii) perform all of its covenants, agreements
and obligations as landlord under the Credit Leases, (iii) not suffer or permit
to occur any release of liability of any tenant or guarantor or the accrual of
any right in any tenant or guarantor to withhold payment of Rents; and (iv)
enforce the terms of the Credit Leases and all remedies available to the
Borrower as landlord under the Credit Leases against the tenants in any case of
any material default by any tenant under the Credit Leases.

         1.6.3 AS TO THE OTHER LEASES. As to the Other Leases, Borrower, so long
as Borrower is not in default under this Assignment or any other Loan Documents
and is otherwise acting in good faith and in a commercially reasonable manner,
shall have the right, should any tenant of one or more of the Other Leases
become insolvent, fail to perform its lease obligations or abandon the leased
premises, to (i) waive, release, reduce, discount or cancel any Rents due under
said Other Leases and/or (ii) make any commercially prudent modification to such
Other Leases.

2.       DEFAULT AND REMEDIES.

         2.1 DEFAULT.

         (a) It shall constitute an event of default ("Event of Default") of and
under this Assignment and, at the option of State Farm, under the other Loan
Documents, if

                                       3
<PAGE>

Borrower shall fail to perform or observe any of the covenants, agreements or
conditions of this Assignment and any such failure shall remain uncured for
thirty (30) days or more after written notice to Borrower of the occurrence of
such failure.

         (b) It shall constitute an Event of Default of and under this
Assignment if there shall occur under any of the Note, Mortgage or other Loan
Documents an Event of Default as defined in those Loan Documents.

         2.2 REMEDIES.

         (a) Upon the occurrence of an Event of Default, the License shall
automatically be revoked, cease and terminate without notice to the Borrower and
without regard to the adequacy or inadequacy of State Farm's security under this
Assignment, the Mortgage or the other Loan Documents. Thereupon, State Farm
shall be entitled to exercise any and all rights and remedies provided in this
Assignment, the Mortgage and the other Loan Documents or by law, including,
without limitation, those provided in Section 697.07 Florida Statutes. The
application of any Rents collected by State Farm shall be in accordance with the
terms of the Mortgage.

         (b) The rights and remedies provided in this Assignment shall not be
deemed exclusive of any rights or remedies granted to State Farm in the Mortgage
or by law, but shall be deemed special and additional rights and remedies and
shall be cumulative with those rights and remedies granted in the Mortgage or by
law.

3. MISCELLANEOUS.

         3.1 PERFECTION. This Assignment shall be perfected upon its recordation
among the public records of Palm Beach County, Florida. Neither possession of
the Rents nor the appointment of a Receiver of the Premises shall be required
for such perfection.

         3.2 ASSIGNMENT. State Farm may assign its rights in and under this
Assignment to any subsequent holder of the Note and Mortgage and to any person
acquiring title to the Premises through foreclosure of the Mortgage or
otherwise.

         3.3 OBLIGATIONS. State Farm shall not be obligated to perform or
discharge, nor, by its acceptance of this Assignment, does it undertake to
perform or discharge, any obligation, duty or liability of Borrower, as landlord
under the Leases, or otherwise. Nothing herein contained shall be construed as
causing State Farm to be a "Mortgagee in Possession" and State Farm shall have
no liability of a Mortgagee in Possession by exercising it rights under this
Assignment, all such liability being expressly waived and released by Borrower.

         3.4 OWNERSHIP. Borrower represents and warrants that it is the absolute
owner of the Rents and Leases with full right, power and authority to execute
and deliver this Assignment. Each of the Leases is legally valid, binding upon
and enforceable against the tenant named therein and has not been changed or
modified except as stated on Exhibit B. There is no outstanding assignment or
pledge of the Rents or Leases or any one thereof, nor are there any

                                       4
<PAGE>

existing defaults under the Leases or any one thereof. No tenant under any Lease
has any defenses, set offs or counterclaims against Borrower.

         3.5 NOTICES. Any Notice required to be given hereunder shall be given
in the manner specified in the Mortgage.

         3.6 CONFLICT. In the event of a conflict between the provisions of this
Assignment and any other Loan Documents, this Assignment shall control.

         3.7 COOPERATION. Borrower agrees to cooperate with any reasonable
request of State Farm to implement the provisions of this Assignment.

         3.8 SUCCESSORS AND ASSIGNS. Whenever the word "Borrower" is used
herein, it is agreed and understood that the same includes and shall be binding
upon the Borrower's successors and assigns and any party holding title to the
Premises by, through or under the Borrower. All of the rights, powers,
privileges and immunities herein granted and assigned to State Farm shall also
inure to its successors and assigns, including all holders of the Note and
Mortgage.

         3.9 WAIVER OF TRIAL BY JURY. Borrower hereby waives, to the fullest
extent permitted by Applicable Law, the right to trial by jury in any action,
proceeding or counterclaim filed by any party, whether in contract, tort or
otherwise, relating, directly or indirectly to this Assignment or any acts or
omissions of the Borrower in connection therewith or contemplated thereby.

         IN WITNESS WHEREOF, Borrower has caused this Assignment to be executed
by its undersigned officer(s) or other representative(s) thereunto duly
authorized as of the day and year first above written.

Signed, sealed and delivered in the
presence of the undersigned witnesses:      ROBERTS PROPERTIES RESIDENTIAL,
                                            L.P., a Georgia limited partnership

  /s/ Sherevone D. Wade                     By: ROBERTS REALTY INVESTORS,
-------------------------------------           INC., a Georgia corporation,
Signature of Witness                            its sole general partner

  /s/ Sherevone D. Wade
-------------------------------------
Print/Type Name of Witness                  By: /s/ Charles R. Elliott
                                               ---------------------------------
                                               Charles R. Elliott
                                               Its Secretary, Treasurer
/s/ Mal Sport                                  and Chief Financial Officer
-------------------------------------
Signature of Witness

  Mal Sport                                             (Corporate Seal)
-------------------------------------
Print/Type Name of Witness

                                       5
<PAGE>

STATE OF GEORGIA
COUNTY OF FULTON

         The foregoing instrument was acknowledged before me this 6th day of
November, 2001 by Charles R. Elliott, as Secretary, Treasurer and Chief
Financial Officer of Roberts Realty Investors, Inc., a Georgia corporation, on
behalf of said corporation in its capacity as sole general partner of Roberts
Properties Residential, L.P., a Georgia limited partnership. He [X] is
personally known to me or [__] has produced __________________________________
(insert type of identification) as identification.

                                     /s/ Joanne M. Roberts
                                     -------------------------------------------
                                     Name: Joanne M. Roberts
                                          --------------------------------------
                                     Notary Public
                                     Commission No.
                                                   -----------------------------
                                     My Commission Expires: August 16, 2002
                                                            --------------------

                                                   (NOTARIAL SEAL)

                                       6
<PAGE>

                                    EXHIBIT A

                          LEGAL DESCRIPTION OF PREMISES

TRACT ONE: All of TRG POLO OF PALM BEACH POLO AND COUNTRY CLUB - WELLINGTON
P.U.D., according to the map or plat thereof, recorded in Plat Book 87, Pages
160-163 of the Public Records of Palm Beach County, Florida.

TRACT TWO: TOGETHER WITH those non-exclusive rights and easements appurtenant to
and benefiting the above described Tract One created and/or granted in and
pursuant to the following instruments:

         (i) Declaration of Restrictive Covenants (North Berm Buffer) between
Palm Beach Polo and Country Club Property Owners' Association, Inc. and TRG-PC,
Ltd., recorded July 9, 1999 in O.R. Book 11222, Page 392, Public Records of Palm
Beach County, Florida, re-recorded February 3, 2000 in O. R. Book 11592, Page
520, aforesaid records, re-recorded on October 25, 2001 in O.R. Book 13022, Page
1686, aforesaid records.

         (ii) Declaration of Restrictive Covenants (South Berm Buffer) among
Palm Beach Polo, Inc., Acme Improvement District, Palm Beach Polo and Country
Club Property Owners' Association, Inc. and TRG-PC, Ltd., recorded July 9, 1999
in O.R. Book 11222, Page 397, aforesaid records, re-recorded on October 25, 2001
in O.R. Book 13022, Page 1672, aforesaid records.

         (iii) Declaration of Restrictive Covenants (East Buffer) between Palm
Beach Polo, Inc. and TRG-PC, Ltd., recorded July 9, 1999 in O.R. Book 11222,
Page 405, aforesaid records, re-recorded on October 25, 2001 in O.R. Book 13022,
Page 1680, aforesaid records.

         (iv) Those easements (and only those easements) created in and granted
pursuant to Article XIII, Section 13.2 and Article XIII, Section 13.5 of that
certain Declaration of Master Covenants, Conditions and Restrictions of Palm
Beach Polo and Country Club between Palm Beach Polo and Country Club Property
Owners' Association, Inc. and Landmark Land Company of Florida, Inc., dated June
22, 1987, recorded June 26, 1987 in O.R. Book 5331, Page 1589, aforesaid
records; as amended by First Amendment to the Declaration of Master Covenants,
Conditions and Restrictions of Palm Beach Polo and Country Club by Landmark Land
Company of Florida, Inc., dated October 16, 1987, recorded October 20, 1987 in
O.R. Book 5455, Page 523, aforesaid records; as further amended by Amendment to
Declaration of Master Covenants, Conditions and Restrictions to Palm Beach Polo
and Country Club by Palm Beach Polo and Country Club Property Owners'
Association, Inc. and Landmark Land Company of Florida, Inc., dated November 6,
1987, recorded November 12, 1987 in O.R. Book 5480, Page 1632, aforesaid
records; as further amended by Second Amendment to the Declaration of Master
Covenants, Conditions and Restrictions of Palm Beach Polo and Country Club by
Landmark Land Company of Florida, Inc., dated July 26, 1988, recorded in O.R.
Book

                                       7
<PAGE>

5755, Page 1305, aforesaid records; as further amended by Third Amendment to the
Declaration of Master Covenants, Conditions and Restrictions of Palm Beach Polo
and Country Club by Landmark Land Company of Florida, Inc., dated October 31,
1990, recorded in O.R. Book 6663, Page 782, aforesaid records; as further
amended by Fourth Amendment to Declaration of Master Covenants, Conditions and
Restrictions of Palm Beach Polo and Country Club by Landmark Land Company of
Florida, Inc., dated April 29, 1991, recorded May 17, 1991 in O.R. Book 6826,
Page 1150, aforesaid records; as affected by Assignment and Agreement between
Landmark Land Company of Florida, Inc. and Palm Beach Polo Development, L.P.,
dated as of November 21, 1988, recorded November 23, 1988 in O.R. Book 5882,
Page 657, aforesaid records; and as further affected by Partial Deannexation
from Covenants, Conditions and Restrictions of Palm Beach Polo and Country Club
by Palm Beach Polo Holdings, Inc., dated February 1, 2000, recorded February 3,
2000 in O.R. Book 11592, Page 513, aforesaid records, subject to the terms and
provisions of Article XIII, Section 13.2 and Article XIII, Section 13.5 of said
Declaration of Master Covenants, Conditions and Restrictions of Palm Beach Polo
and Country Club, as so amended.

                                       8
<PAGE>

                                    EXHIBIT B

                                 CREDIT LEASE(S)

                                      NONE

NOTE: All leases assigned by this Assignment are "Other Leases," as defined in
Section 1.1.2. of this Assignment.

                                       9<PAGE>
                                                                 Exhibit 10.13.4

                               GUARANTY AGREEMENT
                           (STATE FARM LOAN NO. 13551)

         THIS GUARANTY AGREEMENT ("Guaranty") made and executed this 6th day of
November, 2001 by ROBERTS REALTY INVESTORS, INC., a Georgia corporation,
("Guarantor"), whose address for purposes of this instrument is Attention:
Charles R. Elliott, Chief Financial Officer, 8010 Roswell Road, Suite 120,
Atlanta, Georgia 30350, to and in favor of STATE FARM LIFE INSURANCE COMPANY, an
Illinois corporation, ("State Farm"), whose address for purposes of this
instrument is Attention: Corporate Law-Investments, One State Farm Plaza, E-3,
Bloomington, Illinois 61710-0001;

                              W I T N E S S E T H:

         WHEREAS, Roberts Properties Residential, L.P., a Georgia limited
partnership, ("Borrower") has requested and made application to State Farm for a
mortgage loan in the principal amount of Twenty-One Million and 00/100 Dollars
($21,000,000.00); and

         WHEREAS, State Farm has approved and agreed to make and fund a mortgage
loan in that amount to Borrower ("Loan") on those terms and subject to those
conditions set forth with particularity in State Farm's Loan Commitment No.
13551 dated September 26, 2001, and all amendments thereto, (collectively,
"Commitment"), including, among others, the condition that Guarantor execute and
deliver this Guaranty to and in favor of State Farm; and

         WHEREAS, the Loan is evidenced by a certain Promissory Note executed by
Borrower to and in favor of State Farm in the principal sum of Twenty-One
Million and 00/100 Dollars ($21,000,000.00) of even date herewith ("Note") and
is secured by, among other documents and instruments, a Mortgage and Security
Agreement executed by Borrower to and in favor of State Farm of even date
herewith ("Mortgage") encumbering certain real property and other property,
rights and interests more particularly described therein ("Premises"); and

         WHEREAS, State Farm is unwilling to make the Loan to Borrower unless
Guarantor guarantees certain obligations of Borrower as hereinafter more
particularly provided; and

         WHEREAS, Guarantor is the sole general partner of and holds substantial
ownership interests, either directly or indirectly, in Borrower; and

         WHEREAS, Guarantor recognizes and acknowledges that the financial
success of the Borrower will directly benefit Guarantor and its shareholders and
Guarantor, therefore, deems it to be to the business and financial advantage and
benefit of Guarantor and its shareholders that Guarantor execute and deliver
this Guaranty as an inducement to State Farm to make and fund the Loan to
Borrower;

         NOW THEREFORE, for and in consideration of the premises hereof, and for
other good and valuable considerations, the receipt and sufficiency of which are
hereby acknowledged

                                       1
<PAGE>

by Guarantor, Guarantor does hereby, for the benefit of State Farm, covenant,
stipulate and agree as follows, to wit:

1.       RECITALS. The recitals hereinabove set forth in the premises of this
Guaranty are true and correct and are by this reference thereto incorporated in
this Guaranty.

2.       DEFINITION OF TERMS. Those capitalized terms not otherwise defined
herein shall have those definitions and meanings ascribed to such terms in the
Note, Mortgage and other Loan Documents (as that term is defined in the
Mortgage).

3.       GUARANTEED OBLIGATIONS. Guarantor does hereby unconditionally and
absolutely guarantee to State Farm the full and prompt payment to State Farm of
the following obligations of Borrower ("Guaranteed Obligations"), to wit:

                  A.       The payment to State Farm of all amounts due from
         time to time under the Note, the Mortgage and other Loan Documents and
         any and all renewals, replacements and extensions of and all
         modifications or amendments to the Loan Documents, including, without
         limitation, all Principal, accrued Interest, Prepayment Fees and other
         sums, including attorneys' and paralegals' fees, (collectively,
         "Indebtedness"). The Guaranteed Obligations guaranteed hereby are
         subject to reduction and termination as hereinafter provided in
         subparagraph B and C of this Paragraph 3; subject, however, to those
         conditions precedent to such reduction and termination hereinafter set
         forth in Paragraph 10 of this Guaranty.

                  B.       From and after the time that the gross income derived
         from the Premises (which gross income includes, without limitation,
         income from rental of apartment units, garage rental income, charges
         for water submetering, charges for waste removal, charges for alarm
         system and all miscellaneous income) has reached at least Two Hundred
         Sixty-Seven Thousand Three Hundred Ninety-Seven and 50/100 Dollars
         (267,397.50) per calendar month for a period of three (3) consecutive
         calendar months, the Guaranteed Obligations shall automatically be
         reduced to the amount of the Indebtedness due from time to time which
         is in excess of Fifteen Million Seven Hundred Fifty Thousand and 00/100
         Dollars ($15,750,000.00).

                  C.       From and after the time that the gross income derived
         from the Premises (as specified in subparagraph B immediately above)
         has reached at least Two Hundred Ninety-One Thousand Six Hundred
         Sixty-Six and 67/100 Dollars ($291,666.67) per calendar month for a
         period of three (3) consecutive calendar months, Guarantor shall
         automatically be released from the Guaranteed Obligations.

Guarantor hereby agrees that the Guaranteed Obligations shall be paid by
Guarantor to State Farm upon demand of State Farm in lawful money of the United
States of America in accordance with the terms and provisions of this Guaranty.

                                       2
<PAGE>

4.       INDEMNIFICATION. Guarantor shall, and does hereby absolutely and
unconditionally agree, to indemnify, defend and save and hold State Farm
harmless from and against any and all losses, damages, costs and expenses
(including reasonable attorneys' and paralegals' fees) suffered or incurred by
State Farm by reason, on account of or with respect to the Guaranteed
Obligations.

5.       GUARANTY OF PAYMENT. This Guaranty is a guarantee of payment and not of
collection. Accordingly, the obligations of Guarantor under this Guaranty shall
be absolute and unconditional, irrespective of the validity, legality or
enforceability of the Note, Mortgage or other Loan Documents and shall not be
affected by any action taken by State Farm under the Loan Documents in the
exercise of any right, power or remedy therein conferred, or by any failure or
omission on the part of State Farm to enforce any right conferred thereby, or by
any waiver on the part of State Farm of any covenant or condition therein
provided; it being the purpose and intent of this Guaranty that the obligations
of Guarantor hereunder shall be absolute and unconditional under any and all
circumstances and shall not be discharged except by Guarantor's payment of the
Guaranteed Obligations as herein provided.

6.       CHANGES OF STATUS. Guarantor hereby acknowledges and agrees that this
Guaranty and the obligations of Guarantor hereunder shall not be affected and
shall not be discharged by reason of any change in the status of Borrower,
including, without limitation, changes in name or structure of Borrower; merger
or consolidation of Borrower with any other entity or entities, or the transfer
of all or any part of Borrower's assets to another entity; termination or
dissolution of Borrower; the filing of a petition by or against Borrower under
the bankruptcy laws of the United States, or the voluntary or involuntary
takeover of Borrower by Borrower's creditors; additions or losses of partners of
Borrower by death, succession or otherwise; any change in the status of
Guarantor with respect to Borrower, including, without limitation, termination,
transfer or conveyance of Guarantor's ownership interest in Borrower or in any
partners of Borrower, whether general or limited, or termination or resignation
of Guarantor as the sole General Partner of Borrower; or changes in operating
procedures, management or in the nature or location of Borrower's business.

7.       GUARANTY IRREVOCABLE. Unless and until released as provided in this
Guaranty, this Guaranty shall be irrevocable by Guarantor.

8.       WAIVER OF SUBROGATION. Guarantor shall not exercise any rights which
Guarantor may acquire by way of subrogation under this Guaranty, by virtue of
any payment made hereunder or otherwise, until the entire indebtedness of
Borrower to State Farm evidenced and represented by the Note or otherwise
incurred pursuant to the Mortgage or any other Loan Document securing said
indebtedness shall have been paid in full.

9.       REMEDIES. In the enforcement of this Guaranty, State Farm shall have
and be entitled to exercise any and all remedies provided herein and otherwise
provided by law. All rights, powers and remedies of State Farm under this
Guaranty and under any agreement between Borrower and State Farm or between
Guarantor and State Farm, now, or at any time hereafter enforced, shall

                                       3
<PAGE>

be cumulative and not alternative and shall be in addition to all rights, powers
and remedies provided and available to State Farm by law. No exercise of, delay
in exercising, or omission to exercise, any rights, powers or remedies by State
Farm shall be deemed a waiver thereof, and every such right, power and remedy
may be exercised by State Farm any one or more times or on any one or more
occasions without exhaustion.

10.      CONDITIONS PRECEDENT TO REDUCTION AND RELEASE OF GUARANTEED
         OBLIGATIONS.

                  A.       In order for Guarantor to be entitled to the
         automatic reduction and/or release of the Guaranteed Obligations as
         hereinabove provided in Paragraph 3 of this Guaranty, State Farm shall
         have first received from Borrower a certified Rent Roll and a certified
         Income Statement (as those terms are used in the context of generally
         accepted accounting principles) in form and content acceptable to State
         Farm, in its sole discretion, certified by an executive officer (i.e.,
         the President, a Vice President or the Chief Financial Officer) of
         Borrower's sole general partner under oath as being true, correct,
         accurate and complete, which confirms the satisfaction and fulfillment
         of the gross income achievement requirements hereinabove specified in
         whichever of subparagraphs B or C of Paragraph 3 of this Guaranty is
         applicable.

                  B.       Any other provisions of this Guaranty to the contrary
         notwithstanding, Guarantor shall not be entitled to a release from the
         Guaranteed Obligations and/or a termination of this Guaranty (even
         having met the gross income achievement level set forth in subparagraph
         C of Paragraph 3 of this Guaranty) unless one of the following
         conditions (i) or (ii) shall have been satisfied and fulfilled:

                           (i)      State Farm shall have received from Borrower
                  written evidence satisfactory to State Farm that Borrower has
                  terminated the License as defined in that certain License
                  Agreement between and executed by each of TRG-PC, Ltd., as
                  Licensor, and Palm Beach Polo Holdings, Inc., as Licensee,
                  dated February 1, 2000 and recorded on February 3, 2000 in
                  Official Records Book 11592 at Pages 577 et seq. of the Public
                  Records of Palm Beach County, Florida as subsequently assigned
                  (as to the interest of the Licensor) by said Licensor to
                  Borrower on or about the date of this Guaranty (as so
                  assigned, the "License Agreement") and the License Agreement
                  and the License granted therein shall have been effectively
                  terminated of record by and pursuant to a written release
                  document/instrument acceptable to State Farm, which
                  document/instrument shall have been duly executed and
                  acknowledged by the Licensee (or its successor in interest and
                  title to the "Exhibit B Land," as defined in the License
                  Agreement) and duly recorded among the Public Records of Palm
                  Beach County, Florida; or

                           (ii)     Either of Borrower or Guarantor shall have
                  deposited an amount equal to the Termination Fee (i.e., in an
                  amount reasonably acceptable to and projected by State Farm
                  and providing for the annual increase of 8% per annum) into
                  escrow, as security for the future payment of the Termination
                  Fee, with an

                                       4
<PAGE>

                  escrowee (escrow agent) acceptable to State Farm and pursuant
                  to an escrow agreement acceptable in form and content to State
                  Farm, with all fees and expenses related to the preparation,
                  review, approval and processing of the escrow agreement,
                  including the attorneys' fees of State Farm's outside Selected
                  Counsel, if any, having been paid by either of Borrower or
                  Guarantor.

This Guaranty shall be cancelled and returned by State Farm to Guarantor in
accordance with the foregoing terms and provisions of this Guaranty. It is
expressly provided, however, that if it should subsequently be determined by
State Farm that any certified documents submitted to State Farm as evidence of
the satisfaction and fulfillment of the above-described rental achievement
conditions are false, incorrect, inaccurate or incomplete in any single material
respect, any purported release of Guarantor from its Guaranteed Obligations
under this Guaranty Agreement based upon such certified documents shall be null,
void and of no force and effect.

11.      APPLICATION OF SUMS RECEIVED UNDER GUARANTY. All sums paid to and
received by State Farm from Guarantor under and pursuant to this Guaranty shall
be applied by State Farm to the Indebtedness from time to time due under the
Loan Documents in such order of application as State Farm may elect from time to
time.

12.      ATTORNEYS' FEES. If this Guaranty is placed in the hands of an attorney
for enforcement on behalf of State Farm, Guarantor hereby agrees to pay all
costs thereof, including, without limitation, the reasonable fees and
disbursements of such attorney and/or his paralegal. Anything contained in this
Guaranty or in any of the other Loan Documents to the contrary notwithstanding,
whenever provision is made in this Guaranty or in any of the other Loan
Documents for payment of "reasonable attorney's fees" or "reasonable attorney's
and paralegal's fees" or words of similar import, the same shall mean and refer
to the payment of actual attorney's (or paralegal's) fees incurred based upon
the attorney's (or paralegal's) normal hourly rate and the number of hours
worked.

13.      MODIFICATIONS; RELEASES. This Guaranty may not be changed, amended or
modified and no obligation of Guarantor may be released or waived by State Farm
or any officer or agent of State Farm, except in writing signed by a duly
authorized officer of State Farm.

14.      WAIVERS. Guarantor waives notice of default, non-payment, partial
payment, presentment, demand, protest, notice of protest, dishonor, notice of
dishonor and all other notice to which Guarantor might otherwise be entitled, or
which might be required by law and require to be given by State Farm. Guarantor
further agrees that there are absolutely no conditions or limitations to the
undertakings on the part of Guarantor set forth in this Guaranty save those
expressly written therein.

15.      CLAIMS. Any claim or claims which State Farm may have against Guarantor
under this Guaranty at any time or time hereafter shall be asserted by State
Farm against Guarantor by written notice directed to Guarantor at the address of
Guarantor set forth in the preamble to this Guaranty.

                                       5
<PAGE>

16.      NOTICES. All notices required or permitted to be given by either party
hereto shall be sent by registered or certified mail, return receipt requested
or by nationally recognized overnight courier (e.g., Federal Express) to the
party intended to receive such notice at the address shown in the preamble to
this Guaranty.

17.      GOVERNING LAW. This Guaranty shall be governed by, construed and
enforced in accordance with the laws of the State of Florida.

18.      BINDING EFFECT. This Guaranty is and shall be binding upon Guarantor
and its successors and assigns and shall inure to the benefit of State Farm and
its successors and assigns.

         IN WITNESS WHEREOF, Guarantor has executed, sealed and delivered this
Guaranty in manner and form sufficient to legally bind him in accordance with
the terms hereof on and as of the day and year first above written.

Signed, sealed and delivered in the
presence of the undersigned witnesses:     ROBERTS REALTY INVESTORS, INC.,
                                                a Georgia corporation

  /s/ Sherevone D. Wade                    By:  /s/ Charles R. Elliott
--------------------------------------        ----------------------------------
Signature of Witness                          Charles R. Elliott
                                              Its Secretary, Treasurer and Chief
  Sherevone D. Wade                           Financial Officer
--------------------------------------
Print/Type Name of Witness
                                                           (Corporate Seal)
  /s/ Mal Sport
--------------------------------------
Signature of Witness
                                                            GUARANTOR
  Mal Sport
--------------------------------------
Print/Type Name of Witness

                                       6
<PAGE>

STATE OF GEORGIA
COUNTY OF FULTON

                  The foregoing instrument was acknowledged before me this 6th
day of November, 2001 by Charles R. Elliott, as Secretary, Treasurer and Chief
Financial Officer of Roberts Realty Investors, Inc., a Georgia corporation, on
behalf of said corporation. He [X] is personally known to me or [__] has
produced (insert type of identification) as identification.

                                      /s/ Joanne M. Roberts
                                    --------------------------------------------
                                    Name:  Joanne M. Roberts
                                         ---------------------------------------
                                    Notary Public
                                    Commission No.
                                                   -----------------------------
                                    My Commission Expires:  August 16, 2002
                                                          ----------------------

                                                 (NOTARIAL SEAL)

                                       7

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