Document:

Exhibit 10.2

 

ENVIRONMENTAL
INDEMNITY AGREEMENT

 

THIS
ENVIRONMENTAL INDEMNITY AGREEMENT (this "Agreement"), is made this 15th day of March, 2016 by and between
BR HENDERSON BEACH, LLC, a Delaware limited liability company, whose address is c/o Bluerock Real Estate, L.L.C., 712 Fifth
Avenue, 9th Floor, New York, NY 10019 (“Borrower”) and BLUEROCK RESIDENTIAL GROWTH REIT, INC.,
a Maryland corporation, whose address is c/o Bluerock Real Estate, L.L.C., 712 Fifth Avenue, 9th Floor, New York, NY
10019 (“Guarantor”) (Borrower and Guarantor are collectively referred to herein as, the "Indemnitor")
and WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, an Ohio corporation whose address is 400 Broadway, Cincinnati, OH 45202 ("Lender").

 

RECITALS

 

		A.	Effective as of the date hereof, Borrower has assumed secured financing obligations in the original
principal amount of $38,500,000.00 (the "Loan") from Lender with respect to certain premises (including all buildings,
improvements and appurtenant rights and easements) situated in Okaloosa County, Florida, and more fully described on attached Exhibit
A (the "Property"). The Loan is evidenced by an Amended and Restated Promissory Note (the "Note")
dated as of January 3, 2013, and is secured by, among other things, an Amended and Restated Open-End Mortgage, Security Agreement,
Assignment of Rents and Leases, and Fixture Filing dated as of January 3, 2013, encumbering the Property (the "Mortgage").

 

		B.	The Loan was assumed by Borrower from AHB Apartments, LLC,
a Delaware limited liability company (“Original Borrower”), as evidenced by the Loan Assumption and Mortgage
Modification Agreement dated of even date herewith, among Lender, Borrower and Original Borrower (the “Assumption”).
The Note, the Mortgage, this Agreement, the Assumption and all other documents executed by Borrower or Guarantor evidencing
or securing the Loan are collectively referred to as the "Loan Documents".

 

		C.	Lender will permit Borrower to assume the Loan on the condition
that Indemnitor agree to enter into this Agreement with Lender as further security for the Loan.

 

		D.	Capitalized terms used herein and not otherwise defined herein will have the meanings given such
terms in the Loan Documents.

 

NOW,
THEREFORE, in consideration of the Loan and for other good and valuable consideration, the receipt and sufficiency whereof are
hereby acknowledged, and in order to induce Lender to permit Borrower to assume the Loan, Indemnitor, intending to be legally bound,
hereby jointly and severally covenants, represents, warrants and agrees as follows:

 

     

     

    

 

		1.	Lender’s Rights. Lender’s rights under this Agreement shall be in addition to
all rights of Lender under the Loan Documents. Payments, if any, by the Indemnitor as required under this Agreement shall not reduce
the Indemnitor’s obligations and liabilities under any of the other Loan Documents. Any default by the Indemnitor under this
Agreement (including any breach of any representation or warranty made by the Indemnitor) shall, at Lender’s option, constitute
a default and an “Event of Default” under the Note, the Mortgage or any of the other Loan Documents after the expiration
of any applicable cure period set forth herein or in the other Loan Documents.

 

		2.	Definitions.

 

		2.1	“Environmental Laws” means (i) the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended from time to time, and any regulations
now or hereafter promulgated thereunder; (ii) the Comprehensive Environmental Response, Compensation and Liability Act of 1980
(42 U.S.C. Section 9601 et seq.), as amended from time to time, and any regulations now or hereafter promulgated thereunder;
(iii) the Toxic Substance Control Act, 15 U.S. C. Section 2601 et seq., as amended from time to time, and any regulations
now or hereafter promulgated thereunder; (iv) the Federal Water Pollution Prevention and Control Act, 33 U.S.C. Section 1251 et
seq., as amended from time to time, and any regulations now or hereafter promulgated thereunder; (v) the Clean Air Act, 42
U.S.C. Section 7401 et seq., as amended from time to time, and any regulations now or hereafter promulgated thereunder;
(vi) the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq. as amended from time to time, and any regulations now
or hereafter promulgated thereunder; (vii) the provisions of the Occupational Safety and Health Act, 29 U.S.C. Section 653 pursuant
to 29 U.S.C. Section 655 et seq. relating to hazardous chemicals, as amended from time to time, and any regulations now
or hereafter promulgated thereunder relating to hazardous chemicals; and (viii) the provisions of any statute or regulation of
the State of Florida having substantially the same subject matter as any of the foregoing.

 

		2.2	“Governmental Authority” means any federal, state or local governmental entity
having jurisdiction over the Property.

 

    	 	- 2 -	 

     

    

 

		2.3	“Hazardous Materials” means (i) any "hazardous waste" as now or hereafter
defined by the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended from time to
time, or in regulations now or hereafter promulgated thereunder; (ii) any "hazardous substance" as now or hereafter defined
by the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.), as
amended from time to time, or in regulations now or hereafter promulgated thereunder; (iii) any "toxic substance" as
now or hereafter defined by the Toxic Substance Control Act, 15 U.S.C. Section 2601 et seq., as amended from time to time,
or in regulations now or hereafter promulgated thereunder; (iv) any "toxic pollutant" as now or hereafter defined by
the Federal Water Pollution Prevention and Control Act, 33 U.S.C. Section 1251 et seq., as amended from time to time, or
in regulations now or hereafter promulgated thereunder; (v) any "air pollutant" as now or hereafter defined by the Clean
Air Act, 42 U.S.C. Section 7401 et seq., as amended from time to time, or in regulations now or hereafter promulgated thereunder;
(vi) any "contaminant" now or hereafter defined by the Safe Drinking Water Act, 42 U.S.C. Section 300f, et seq.,
as amended from time to time, or in regulations now or hereafter promulgated thereunder; (vii) asbestos or any other "hazardous
chemical" as now or hereafter defined by the Occupational Safety and Health Administration ("OSHA") pursuant to
29 U.S.C. Section 655 or in any other regulation or rule now or hereafter promulgated by OSHA; (viii) petroleum distillates; (ix)
polychlorinated biphenyls ("PCB's"); (x) underground storage tanks, whether empty, filled, or partially filled with any
substance; (xi) any substance the presence of which on the Property is now or hereafter prohibited by any Governmental Authority;
(xii) any sanitary, infectious or other waste; and (xiii) any other substance for which special handling or notification is now
or hereafter required for its collection, storage, treatment, use or disposal; provided, however, Hazardous Materials shall expressly
exclude any substance of a nature, quantity or concentration that is customarily used, stored or disposed as part of or incidental
to home or apartment use or to the operation or maintenance of vehicles used by tenants, prospective tenants, Indemnitor, any manager
of the Property or their respective invitees, employees, agents or contractors, or to the operation and maintenance of the applicable
portion of the Property in the ordinary course of Indemnitor’s business currently conducted at such portion of the Property,
or to operations for projects similar to the project on the Property, so long as such use, storage or disposal complies with applicable
Environmental Laws.

 

		2.4	“Hazardous Materials Contamination” means the contamination (whether currently
existing or hereafter occurring) of the buildings, improvements, facilities, soil, groundwater, air, or other elements on or of
the Property by Hazardous Materials, or the contamination of the buildings, improvements, facilities, soil, groundwater, air, or
other elements of any other property as a result of Hazardous Materials at any time (whether before or after the date of this Agreement)
emanating from the Property whether or not limited to the Property.

 

		3.	Representations, Warranties and Covenants of Indemnitor. In addition to the covenants and
indemnity of Indemnitor contained in the Mortgage, Indemnitor covenants, represents and warrants that:

 

    	 	- 3 -	 

     

    

 

		3.1	Except as disclosed to Lender in that certain Phase I Environmental Assessment Report dated December
17, 2015, and delivered to Lender by Indemnitor in connection with the Assumption, no Hazardous Materials (as defined in Section
2.3) are located on the Property, or to Indemnitor’s knowledge after Appropriate Inquiry (as defined below), have been released
into the environment, or deposited, discharged, placed, transported, or disposed of at, on, under or over, the Property. No portion
of the Property is being used or, to the Indemnitor’s knowledge, has been used at any previous time for the disposal, storage,
treatment, processing, transportation, or other handling of Hazardous Materials in violation of applicable law nor is the Property
affected by any Hazardous Materials Contamination (as defined in Section 2.4). As used herein, “Appropriate Inquiry”
shall mean a level of inquiry comparable to that used by other comparable owners of properties similar to the Property.

 

		3.2	Except as disclosed to Lender in that certain Phase I Environmental Assessment Report dated December
17, 2015, and delivered to Lender by Indemnitor in connection with the Assumption, no polychlorinated biphenyls are located on
or in the Property, in the form of electrical transformers, fluorescent light fixtures with ballasts, cooling oils, or any other
device or form.

 

		3.3	No proceeding, investigation, administrative order, consent order and agreement, litigation, or
settlement with respect to Hazardous Materials or Hazardous Materials Contamination is in existence with respect to the Property
or, to the best knowledge, after all Appropriate Inquiry, of Indemnitor, proposed, threatened or anticipated with respect to the
Property. There is no condition on the Property that is in material violation of any requirements of any Governmental Authority
relating to Hazardous Materials, and Indemnitor has received no communication from or on behalf of any Governmental Authority that
any such condition exists. Except as disclosed to Lender in that certain Phase I Environmental Assessment Report dated December
17, 2015, and delivered to Lender by Indemnitor in connection with the Assumption, the Property and its existing uses comply, and,
to Borrower’s knowledge after Appropriate Inquiry, at all times have complied with any applicable requirements of all Governmental
Authorities relating to Environmental Laws.

 

		3.4	Indemnitor at all times shall comply with, and shall maintain and operate the Property in compliance
with all applicable Environmental Laws. Further, Indemnitor shall maintain, repair, alter, and operate the Property so as to comply
with all applicable terms, provisions, requirements, and regulations of the Americans with Disabilities Act of 1990 and any applicable
state or local laws of similar intent, as the same may be promulgated, revised, and in effect from time to time (hereinafter referred
to collectively as the "ADA Related Laws").

 

    	 	- 4 -	 

     

    

 

		3.5	Indemnitor shall: (i) give notice to Lender immediately upon Indemnitor's acquiring knowledge of
the presence of any Hazardous Materials on the Property or of any Hazardous Materials Contamination; (ii) promptly, at Indemnitor's
sole cost and expense, comply with all requirements of any applicable Environmental Laws as to the removal, treatment, or disposal
of such Hazardous Materials or Hazardous Materials Contamination and provide Lender with satisfactory evidence of such compliance;
and (iii) provide Lender, within thirty (30) days after demand by Lender, with a bond, letter of credit, or similar financial assurance
evidencing to Lender's satisfaction that the necessary funds are available to pay the cost of removing, treating, and disposing
of such Hazardous Materials or Hazardous Materials Contamination and discharging any assessments that may be established against
the Property as a result thereof.

 

		3.6	Indemnitor shall not cause or suffer any liens to be recorded against the Property as a consequence
of, or in any way related to, the presence or disposal of Hazardous Materials in or about the Property, including any federal,
state, or local so-called "Superfund" lien relating to such matters; provided, however, Indemnitor will not be in default
of this Section 3.6 if an involuntary lien is filed against the Property and Indemnitor causes the lien to be removed within 30
days or provides a bond or other security reasonably satisfactory to Lender to protect its interest as mortgagee under the Mortgage.

 

		4.	Indemnification by Indemnitor. Indemnitor at all times shall defend, indemnify, and hold
Lender harmless from and against any and all liabilities (including strict liability), suits, actions, claims, demands, penalties,
damages (including, without limitation, lost profits, consequential damages, interest, penalties, fines, and monetary sanctions),
losses, costs, and expenses (including, without limitation, reasonable attorneys' fees and expenses, and remedial costs) (collectively,
"Liabilities") that may now or in the future be incurred or suffered by or imposed upon Lender because of, resulting
from, in connection with, or arising in any manner whatsoever out of the breach of any warranty or covenant or the inaccuracy of
any representation of Indemnitor contained or referred to in this Agreement or that may be asserted as a direct or indirect result
of the presence at, on, over or under, or the handling, treatment, storage, transportation, removal, disposal, escape, seepage,
leakage, spillage, discharge, emission, or release on or from the Property of any Hazardous Materials or any Hazardous Materials
Contamination, whether or not occasioned wholly or in part by any condition, accident, or event caused by any act or omission of
Lender; provided, however, Indemnitor shall not be liable for any of the foregoing to the extent the subject of the Liability is
caused by or arises out of the gross negligence or willful misconduct of Lender. Such Liabilities also shall include, without limitation:
(i) injury to or death of any person; (ii) damage to or loss of the use of any property; (iii) the cost of any demolition and rebuilding
of any buildings or improvements on the Property, repair or remediation and the preparation for and completion of any activity
required by any Governmental Authority; (iv) any lawsuit brought or threatened, good faith settlement reached, or governmental
order relating to the presence, disposal, release, or threatened release of any Hazardous Materials, on, from, or under the Property;
and (v) the imposition and removal of any lien on the Property which, with respect to each of the foregoing, results from, in connection
with, or arises in any manner whatsoever out of the breach of any warranty or covenant or the inaccuracy of any representation
of Indemnitor contained in this Agreement or is asserted as a direct or indirect result of the presence at, on, over or under,
or the handling, treatment, storage, transportation, removal, disposal, escape, seepage, leakage, spillage, discharge, emission,
or release on or from the Property of any Hazardous Materials or any Hazardous Materials Contamination.

 

    	 	- 5 -	 

     

    

 

		4.1	Any information provided to Lender by Indemnitor under this Agreement is intended to allow Lender
to protect its security interest in the Property and is not intended to create or impose upon Lender any obligations with respect
to the operation or ownership of the Property. Any rights, authority or approvals granted to Lender by Indemnitor under this Agreement
are given solely to protect Lender's security interest in the Property and are not intended to create any obligations upon Lender
with respect to the operation or ownership of the Property.

 

		4.2	Notwithstanding anything to the contrary contained in the Loan Documents, except as provided in
the immediately following sentences, the provisions of this Section 4 shall (i) survive the termination or expiration of
the Loan Documents, the full repayment of the indebtedness and other sums due and payable under the Loan Documents, or the acquiring
of title by Lender or its successors and assigns by foreclosure or otherwise, (ii) be fully enforceable against Indemnitor and
its successors and assigns, and (iii) constitute a separate undertaking by Indemnitor that serves as an inducement to Lender in
extending the Loan to Indemnitor. However, notwithstanding any contrary provision of this Agreement, Indemnitor will have no obligation
(including any obligation to indemnify any Lender indemnitee) with respect to any Hazardous Materials that are brought onto the
Property after the earlier of the following dates; (i) the date on which the Mortgage has been released or (ii) the date on which
the lien of the Mortgage is foreclosed or a conveyance by deed in lieu of such foreclosure is effective. Indemnitor hereby acknowledges
that Lender is acting in reliance upon the representations and warranties contained in Section 3 in making the Loan to Indemnitor.
Notwithstanding any contrary provision of this Agreement, the terms set forth in Section 2.2.26.5 of the Mortgage will apply to
any transfer permitted by the Loan Documents.

 

    	 	- 6 -	 

     

    

 

		5.	Duties of Indemnitor. Indemnitor shall not knowingly permit any tenant of the Property (a
"Tenant") to violate any ADA Related Laws or to use, generate, manufacture, store, release, or dispose of Hazardous
Materials in, on, about, or under the Property or the ground water, other than materials used in the ordinary course of a Tenant's
residential occupancy or business that are used, stored, handled, and disposed of strictly in compliance with all laws or used
in the ordinary course of managing, cleaning, renovating or repairing the Property strictly in compliance with all laws. Indemnitor
shall give Lender prompt written notice of any claim by any person or Governmental Authority involving Hazardous Materials present
at the Property. Indemnitor shall promptly and thoroughly investigate Hazardous Materials involved in such claims or other Hazardous
Materials identified by Lender and thereafter shall detoxify, repair, clean up or remove such Hazardous Materials from the Property
within a reasonable time, as required by law or as may be reasonably required or requested by Lender, whether or not Indemnitor
or any tenant was responsible for the existence of the Hazardous Materials.

 

		6.	Additional Indemnification by Indemnitor. Indemnitor shall indemnify, defend, and hold Lender,
Lender's agents, shareholders, directors, principals, partners, employees, successors, and assigns harmless from and against any
liability or expense, including reasonable attorneys' fees, court costs, and penalties, arising out of or relating to Hazardous
Materials affecting the Property, whether on account of personal injury to or death of any person, damage to property, or violation
of any legal requirement, including without limitation violation of any ADA Related Laws, that Lender may at any time hereafter
incur by reason of Indemnitor's failure or refusal to comply with the requirements set forth in this Agreement; provided, however,
Indemnitor shall not be liable for any of the foregoing to the extent the subject of the Liability is caused by or arises out of
the gross negligence or willful misconduct of Lender.

 

		7.	Lender’s Right to Conduct an Investigation. 

 

		7.1	Lender may, at any time and at its sole discretion,
commission an investigation into the presence of Hazardous Materials or Hazardous Materials Contamination on, from or affecting
the Property, or the compliance with all applicable laws and regulations at, or relating to, the Property. Such an investigation
performed by Lender shall be at the Indemnitor’s expense if the performance of the investigation is commenced (i) upon the
occurrence of a default hereunder or of a default or “Event of Default” under the Note, the Mortgage or any other Loan
Document; or (ii) because Lender has a reasonable belief that the Indemnitor has violated any provision of this Agreement (including
any representation, warranty or covenant). All other investigations performed by Lender shall be at Lender’s expense. In
connection with any such investigation, the Indemnitor, shall comply with all reasonable requests for information made by Lender
or its agents and the Indemnitor represents and warrants that all responses to any such requests for information will be correct
and complete to the best of Indemnitor’s knowledge after Appropriate Inquiry. The Indemnitor shall provide Lender and its
agents with rights of access to all areas of the Property and permit Lender and its agents to perform testing (including any invasive
testing) necessary or appropriate, in Lender’s reasonable judgment, to perform such investigation.

 

    	 	- 7 -	 

     

    

 

		7.2	Lender is under no duty, however, to conduct such investigations of the Property and any such investigations
by Lender shall be solely for the purposes of protecting Lender’s security interest in the Property and preserving its rights
under the Loan Documents. No site visit, observation, or testing by Lender shall constitute a waiver of any default of the Indemnitor
or be characterized as a representation regarding the presence or absence of Hazardous Materials or Hazardous Materials Contamination
at the Property. Lender owes no duty of care (other than the duty to not be grossly negligent or to not commit willful misconduct)
to protect the Indemnitor or any third party from the presence of Hazardous Materials, Hazardous Materials Contamination or any
other adverse condition affecting the Property nor shall Lender be obligated to disclose to the Indemnitor or any third party any
report or findings made in connection with any investigation done on behalf of Lender, subject to the obligations of Lender under
Section 3.2 of the Mortgage.

 

		8.	Lender’s Right to Cure. In addition to
the other remedies provided to Lender in the Mortgage and the other Loan Documents, should the Indemnitor fail to abide by any
material provisions of this Agreement, Lender may, should it elect to do so, perform any corrective work and any other such actions
as it, in its sole discretion, deems necessary to repair and remedy any damage to the Property caused by violation of any ADA Related
Laws or Hazardous Materials or Hazardous Materials Contamination or any such corrective work. In such event, all funds reasonably
expended by Lender in connection with the performance of any corrective work, including all reasonable attorneys’ fees, engineering
fees, consultant fees and similar charges, shall become a part of the obligation secured by the Mortgage and shall be due and payable
by the Indemnitor on demand. Each disbursement made by Lender pursuant to this provision shall bear interest at the Default Rate
(as defined in the Note) and shall be a part of the indebtedness secured by the Mortgage.

 

		9.	Liability of Indemnitor. Any liability, loss, damage, cost or expense that Lender may suffer
or incur as a result of any claim hereunder, including any reasonable costs, expenses and attorneys' fees, shall be due and payable
by Indemnitor to Lender immediately upon demand, in federal or other immediately available funds that at the time of such payment
shall be legal tender for the payment of public and private debts in the United States of America, shall bear interest from the
date such amount becomes due until paid at the Default Rate (as defined in the Note) and, if the Mortgage is still in effect, shall
be added to the obligations secured by the Mortgage and secured by the lien of the Mortgage.

 

		10.	Preservation of Rights. The failure of Lender to insist upon strict compliance with any
of the provisions hereof shall not be considered to be a waiver of any of such provisions nor shall it militate against the right
of Lender to insist upon strict compliance herewith at any time thereafter.

 

    	 	- 8 -	 

     

    

 

		11.	Notices. All notices hereunder shall be addressed to the party to receive same at its or
his address set forth above, and shall be given in accordance with the provisions of the Mortgage.

 

		12.	Illegality. If any provision of this Agreement shall be contrary to the laws of the jurisdiction
in which the same shall be sought to be enforced, the illegality or unenforceability of any such provision shall not affect the
other provisions hereof, and the same shall be binding upon Indemnitor with the same force and effect as though such illegal or
unenforceable provision were not contained herein.

 

		13.	Survival. If the Mortgage is foreclosed or if Lender acquires title to or possession of
any of the Property by deed in lieu of foreclosure or otherwise, or the Loan is paid and the indebtedness is cancelled, the provisions
of this Agreement shall survive the payment and performance of the obligations secured by the Mortgage, the cancellation of the
Note and the satisfaction of record of the Mortgage.

 

		14.	Successors and Assigns. The provisions of this Agreement shall be binding upon Indemnitor
and its successors and assigns, and shall inure to the benefit of Lender and its successors and assigns. As used in this Agreement,
the phrase "any of the Property" shall mean "the Property or any part thereof or interest therein," the word
"including" shall mean "including without limitation" and the word "provisions" shall mean "provisions,
terms, covenants and agreements." This Agreement may be executed in any number of counterparts and each such counterpart shall
be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. This Agreement shall
be governed by and construed in accordance with the laws of the state where the Property is located. The rights and benefits of
Lender under this Agreement are cumulative with, and not exclusive of, those contained in the other Loan Documents.

 

		15.	WAIVER OF JURY TRIAL.  THE INDEMNITOR
AND THE LENDER IRREVOCABLY WAIVE ANY AND ALL RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM OF ANY NATURE
RELATING TO THIS AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED IN ANY OF
SUCH DOCUMENTS. THE INDEMNITOR AND LENDER ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

 

[Signature
page follows]

 

    	 	- 9 -	 

     

    

 

[Signature
page to Environmental Indemnity Agreement]

 

	 	INDEMNITORS:
	 	 	 
	 	BR Henderson Beach, LLC, a Delaware limited liability company
	 	 	 
	 	By: 	/s/ Jordan B. Ruddy
	 	 	Jordan B. Ruddy, Authorized Signatory
	 	 	 
	 	Bluerock Residential Growth REIT, Inc.,
	 	a Maryland corporation
	 	 	 
	 	By: 	/s/ Michael Konig
	 	Print Name: 	/s/ Michael Konig
	 	Title:	Authorized Signatory
	 	 	 
	 	LENDER:
	 	 
	 

 	WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, 

                                                                   an Ohio corporation

	 	
	 	By:	/s/ Mario San Marco
	 	Print Name:	Mario San Marco
	 	Title:	Vice President
	 	 	 
	 	By:	Jeffery L. Stainton
	 	Print Name:	Jeffery L. Stainton
	 	Title: 	Vice President

 

 

    	 	- 10 -	 

     

    

 

	STATE OF NEW YORK	)	 
	 	)  SS:	ACKNOWLEDGMENT
	COUNTY OF NEW YORK	)	 

 

Before me, the undersigned,
a Notary Public in and for said state, personally appeared Jordan B. Ruddy, an Authorized Signatory, of
BR Henderson Beach, LLC, a Delaware limited liability company and Indemnitor under the foregoing instrument, who acknowledged
himself to be a duly authorized officer of such limited partnership, and who represented to me to be said person.

 

Witness my hand and seal,
at office, this 10th day of March, 2016.

 

	 	Dale Pozzi
	 	Notary Public
	SEAL	 
	 	My commission expires: 1/28/2017

 

	STATE OF NEW YORK	)	 
	 	)  SS:	ACKNOWLEDGMENT
	COUNTY OF NEW YORK	)	 

 

Before me, the undersigned, a Notary Public
in and for said state, personally appeared Michael Konig, the Authorized Signatory of BLUEROCK RESIDENTIAL GROWTH REIT, INC.,
a Maryland corporation and Indemnitor under the foregoing instrument, on behalf of said corporation, and who represented to
me to be said person.

 

Witness my hand and seal,
at office, this 10th day of March, 2016.

 

	 	Dale Pozzi
	SEAL	Notary Public
	 	 
	 	My commission expires: 1/28/2017

 

    	 	- 11 -	 

     

    

 

	STATE OF OHIO	)	 
	 	) SS:	ACKNOWLEDGMENT
	COUNTY OF HAMILTON	)	 

 

Before me, the undersigned,
a Notary Public in and for said state, personally appeared

 

Mario San Marco  and Jeffery L. Stainton,
who acknowledged themselves to be duly elected and authorized officers of WESTERN-SOUTHERN LIFE ASSURANCE COMPANY, Lender under
the foregoing instrument, on behalf of such company, who represented to me to be said persons.

 

Witness my hand and seal,
at office, this 10th day of March, 2016.

 

	 	David C. McChesney
	SEAL	Notary Public
	 	 
	 	My commission expires: November 2, 2020

 

    	 	- 12 -	 

     

    

 

EXHIBIT A

 

(Legal Description)

 

All that certain lot, piece or parcel of land,
with the buildings and improvements thereon erected, situate, lying and being in the City of Destin, County of Okaloosa, State
of Florida.

 

TRACT I - FEE SIMPLE:

Lot 2, ALEXAN HENDERSON BEACH SUBDIVISION, as
recorded in Plat Book 24, page 70, of the Public Records of Okaloosa County, Florida.

 

TOGETHER WITH THE FOLLOWING EASEMENTS:

 

EASEMENT 1:

 

Together with non-exclusive easements for drainage,
landscaping and construction of improvements contained in Drainage and Restriction Agreement by and between HBT, LLC, a Florida
limited liability company, and AHB APARTMENTS, LLC, a Delaware limited liability company, recorded in Official Records Book 2830,
page 2171, of the Public Records of Okaloosa County, Florida.

 

EASEMENT 2:

 

Together with non-exclusive easements for drainage,
utilities, vehicular and pedestrian, ingress and egress, signage and landscaping contained in Access, Utilities and Drainage Easement
Agreement by and between HBT, LLC, a Florida limited liability company, and AHB APARTMENTS, LLC, a Delaware limited liability company,
recorded in Official Records Book 2830, page 2186, of the Public Records of Okaloosa County, Florida.

 

EASEMENT 3:

 

Together with non-exclusive easements for vehicular
and pedestrian ingress and egress, and the installation, use, maintenance and removal of utilities contained in Operation and Easement
Agreement by and between HBT, LLC, a Florida limited liability company, and AHB APARTMENTS, LLC, a Delaware limited liability company,
recorded in Official Records Book 2830, page 2221, of the Public Records of Okaloosa County, Florida.

 

TRACT II - FEE SIMPLE:

 

Lot 2, ALEXAN HENDERSON BEACH PHASE 2, as recorded
in Plat Book 26, page 20, of the Public Records of Okaloosa County, Florida.Exhibit 10.3

 

LIMITED RECOURSE GUARANTY

 

THIS LIMITED RECOURSE
GUARANTY (this “Guaranty”), is made this 15th day of March, 2016 by and between BLUEROCK RESIDENTIAL GROWTH
REIT, INC., a Maryland corporation (the “Guarantor”) in favor of WESTERN-SOUTHERN LIFE ASSURANCE COMPANY,
an Ohio corporation whose address is 400 Broadway, Cincinnati, Ohio 45202 (“Lender”).

 

RECITALS

 

		A.	Guarantor desires that Lender permit the assumption by BR HENDERSON BEACH, LLC, a Delaware limited
liability company (the “Borrower”) of secured financing in the original principal amount of $38,500,000.00 (the
“Loan”) with respect to certain premises (including all buildings, improvements and appurtenant rights and easements)
situated in Okaloosa County, Florida, and more fully described on attached Exhibit A (the “Property”).
The Loan is evidenced by an Amended and Restated Promissory Note originally payable by AHB APARTMENTS, LLC, a Delaware limited
liability company (“Original Borrower”) (the “Note”) dated January 3, 2013, and is secured
by, among other things, an Amended and Restated Open-End Mortgage, Security Agreement, Assignment of Rents and Leases, and Fixture
Filing dated January 3, 2013, encumbering the Property (the “Mortgage”).

 

		B.	Effective as of the date hereof, Borrower has assumed the Loan, as evidenced by a Loan Assumption
and Mortgage Modification Agreement among Lender, Borrower and Original Borrower dated of even date herewith (the “Assumption”).
The Note, the Mortgage, this Guaranty, the Assumption and all other documents executed by Borrower or a Guarantor evidencing or
securing the Loan or entered into in connection with the Loan are collectively referred to as the “Loan Documents”.

 

		C.	Lender will permit Borrower to assume the Loan on the condition that Guarantor agrees to enter
into this Guaranty with Lender as further security for the Loan.

 

		D.	Capitalized terms used herein and not otherwise defined herein will have the meanings given such
terms in the Loan Documents.

 

NOW, THEREFORE, in
consideration of the Loan and for other good and valuable consideration, the receipt and sufficiency whereof are hereby acknowledged,
and in order to induce Lender to permit the assumption of the Loan by Borrower, Guarantor, intending to be legally bound, hereby
covenants, represents, warrants and agrees as follows:

 

     

     

    

 

		1.	GUARANTY OBLIGATION. In consideration of and as an inducement to Lender to permit
the assumption of the Loan by Borrower, and for other good and valuable consideration, the receipt of which is acknowledged, Guarantor
hereby unconditionally agrees, to defend, indemnify and hold Lender, Lender’s agents, shareholders, directors, principals,
employees, successors and assigns harmless from and against any and all liabilities (including strict liability), suits, actions,
claims, demands, penalties, damages (including, without limitation, lost profits, consequential damages, interest, penalties, fines,
and monetary sanctions), losses, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses)
(collectively, “Liabilities”) that may now or in the future be incurred or suffered by or imposed upon Lender
as a result of any of the following (each, an “Event of Default” hereunder):

 

		1.1	the Borrower misapplying, or, following an Event of Default, failing to remit to Lender, any condemnation
awards, casualty proceeds, or security deposits attributable to the Property, unless such awards, proceeds or deposits are required
to be escrowed or paid to an unaffiliated third party pursuant to a court order;

 

		1.2	any act of fraud or material breach of any representation or warranty of Borrower or any member
thereof, contained in the Loan Documents or any other agreement, certificate or instrument delivered pursuant to or in connection
with the Loan Documents;

 

		1.3	the collection by Borrower of rents more than one (1) month in advance, or the failure by Borrower
to apply the rents toward the normal and necessary operating expenses of the Property or the curing of any Event of Default, or
in the manner and for the purposes provided in the Mortgage or in any other Loan Documents;

 

		1.4	[Reserved];

 

		1.5	[Reserved];

 

		1.6	any diminution in value of the Property or other collateral or security for the Loan, arising from
the active waste of the Borrower;

 

		1.7	any casualty or loss affecting the Property that was self-insured risk or under-insured or deductible
amount under a policy of insurance relating to the Property, including without limitation those relating to terrorism and/or mold
coverage;

 

		1.8	the failure by Borrower to insure the Property as expressly set forth in any Loan Documents executed
in connection with the closing of the Loan, including without limitation the failure to carry terrorism and/or mold coverage;

 

		1.9	the failure by Borrower to pay any taxes or assessments on the Property; or

 

		1.10	the filing of any bankruptcy or other reorganization proceeding by Borrower.

 

In addition
to and notwithstanding the foregoing, Guarantor shall be fully liable for and Lender shall have full recourse against Guarantor
for all amounts of the Indebtedness in the event there shall occur an event of default under Section 2.2.26 of the Mortgage or
as a result of a voluntary encumbrance against the Property prohibited under Section 2.2.14 of the Mortgage. For purposes hereof,
residential leases for apartment units of the Property entered into in the ordinary course of business shall not constitute encumbrances
that would trigger full recourse to the Guarantor hereunder.

 

    - 2 -

     

    

  

		2.	NATURE OF GUARANTEE, WAIVERS. This is a guarantee of payment and not of collection.
It is the intention and agreement of the parties that upon the occurrence of an event described in Section 1 above, that Lender
shall not be required to make any expenditure for any loss or expense, and to the extent that it becomes aware of the amount of
any Liabilities, whether in whole or in part, it will notify Guarantor thereof, and Guarantor will immediately make payment to
Lender in such amount without setoff, counterclaim, presentment, demand, protest, and notice of demand, protest, and dishonor,
which hereby are expressly waived.

 

Subject to Section 1 above, this
is an absolute, unconditional, primary, and continuing obligation and will remain in full force and effect until the first to occur
of the following: (i) the Loan has been indefeasibly paid in full, and Lender has terminated this Guaranty; (ii) 30 days after
the date on which written notice of revocation is actually received by Lender; or (iii) the date on which written notice of the
death of Guarantor is actually received by Lender. No revocation (whether upon the death of Guarantor or otherwise) will affect:
(i) the then existing liabilities of the revoking Guarantor under this Guaranty; (ii) obligations under the Loan created, contracted,
assumed, acquired or incurred prior to the effective date of such revocation; (iii) obligations under the Loan created, contracted,
assumed, acquired or incurred after the effective date of such revocation pursuant to any agreement entered into or commitment
obtained prior to the effective date of such revocation; (iv) any obligations of Borrower then or thereafter arising under the
Loan Documents as then in effect; (v) renewals, extensions, consolidations and refinancings of any of the foregoing; (vi) principal,
interest, charges, fees, costs or expenses of any kind relating to any of the foregoing then existing or thereafter arising, or
(vii) any liabilities of any Guarantor other than the particular Guarantor that issues such notice of revocation (or, in the event
of the death of a Guarantor, is the subject of such death notice).

 

Guarantor desires that Lender
grant Borrower the credit described in the Loan Documents, and Guarantor deems it to be in the best business interests of Guarantor
that Borrower obtain such credit from Lender and understands that Lender is willing to grant such credit only on certain terms
and conditions, including, the condition that Guarantor execute this Guaranty.

 

    - 3 -

     

    

 

Unless otherwise expressly required
by applicable law, acceptance of this Guaranty, notice of extensions of credit to Borrower from time to time, notice of default,
diligence, presentment, protest, demand for payment, notice of demand or protest, and any defense based upon a failure of Lender
to comply with the notice requirements of the applicable version of Uniform Commercial Code Section 9-611, or any predecessor or
successor section thereto, are hereby waived, except for notices specifically provided for in this Guaranty or the other Loan Documents.
Lender at any time and from time to time, without the consent of or notice to Guarantor, and without impairing or releasing, discharging
or modifying the liabilities of Guarantor hereunder, may in its sole discretion: (i) change the manner, place or terms of payment
or performance of or interest rates on, or change or extend the time of payment or performance of, or other terms relating to the
Loan; (ii) renew, increase, substitute, modify, amend or alter, or grant consents or waivers relating to the Loan, any other guarantees
(other than this Guaranty) or other liabilities, or any collateral for the Loan or guarantees or other liabilities (other than
those created by this Guaranty); (iii) apply any and all payments from any source whatsoever including any proceeds of any collateral,
to any obligations of Borrower under the Loan in any order, manner and amount; (iv) deal or refrain from dealing with any person
or entity, in its sole discretion, with respect to any obligations under the Loan in such manner as Lender deems appropriate in
its sole discretion, and/or; (v) accept, sell, substitute, exchange, compromise, release, surrender, offset, realize upon or otherwise
deal with in any manner and in any order the Loan, any guarantee (other than this Guaranty) or other liability (other than those
created by this Guaranty) for the Loan, or any collateral for the Loan or for any guarantee or other liability relating to the
Loan. Irrespective of the taking of or refraining from taking any of the foregoing actions, the obligations of Guarantor will remain
in full force and effect in accordance with the terms of this Guaranty and will not be affected, impaired, discharged or released
in any manner, except pursuant to the terms of this Guaranty. Lender in its sole discretion may determine the reasonableness of
the period which may elapse prior to the making of demand for any payment upon Borrower and it need not pursue any of its remedies
against Borrower, any other guarantor or other person, or any collateral before having recourse against any Guarantor under this
Guaranty.

 

		3.	REPRESENTATIONS, WARRANTIES AND COVENANTS. Guarantor hereby represents, warrants
and covenants as follows (which covenants survive the execution and delivery of this Guaranty):

 

		3.1	This Guaranty is a legal, valid and binding obligation of Guarantor enforceable in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or similar
laws in effect from time to time and affecting the rights of creditors generally and except as such enforceability may be subject
to general principles of equity (regardless of whether such enforceability is considered in a proceeding in law or in equity).

 

		3.2	There does not now exist any default or violation by it of or under, and neither the execution,
delivery and performance of this Guaranty nor the consummation of any of the transactions contemplated hereby will result in any
default or violation, or give rise to any right of termination, amendment, cancellation or acceleration, of or under, any of the
terms, conditions or obligations of the articles of incorporation for Guarantor.

 

    - 4 -

     

    

		3.3	Neither the execution, delivery and performance of this Guaranty nor the consummation of any of
the transactions contemplated hereby will result in any material default or violation, or give rise to any right of termination,
cancellation or acceleration, of or under, any of the terms, conditions or obligations of (i) any note, bond, indenture, mortgage,
deed of trust, franchise, permit, lease or other agreement or instrument to which it is a party or by which it or any of its assets
is bound; or (ii) any law, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed
upon it by any law, court or governmental agency, authority or other body.

 

		3.4	There do not now exist any material defaults or violations under the following that would individually
or in the aggregate, materially adversely affect its ability to perform the obligations set forth in this Guaranty: (i) any note,
bond, indenture, mortgage, deed of trust, franchise, permit, lease or other agreement or instrument to which it is a party or by
which it or any of its assets is bound; or (ii) any law, regulation, ruling, order, injunction, decree, condition or other requirement
applicable to or imposed upon it by any law, court or governmental agency, authority or other body.

 

		3.5	Guarantor is fully aware of the financial condition of Borrower and is executing and delivering
this Guaranty based solely upon Guarantor’s own independent investigation of all matters pertinent hereto and is not relying
in any manner upon any representation or statement of Lender.

 

		3.6	Guarantor agrees that from the date of execution of this Guaranty and for so long as this Guaranty
is in full force and effect, it will comply with the following financial covenants and requirements.

 

(i)        Financial Covenants.
Guarantor shall maintain a “Net Worth” of at least $30,000,000.00. For purposes hereof, “Net Worth” shall
mean, as of any date, Guarantor’s total assets less total liabilities as determined in accordance with a tax basis method
of accounting

 

(ii)        Financial Statements.
Furnish the Lender the Guarantor’s Financial Statements (as defined herein) within ninety (90) days after the end of each
fiscal year. Such Financial Statements will be prepared in substantially the same form as Guarantor’s Financial Statements
provided to Lender in connection with the Assumption or such other form acceptable to Lender and shall be certified by a principal
of Guarantor. “Financial Statements” means the Guarantor’s consolidated balance sheets, income statements and
statements of cash flows for the year, together with year-to-date figures and comparative figures for the corresponding period
of the prior year.

 

    - 5 -

     

    

		4.	BANKRUPTCY, ETC. It is specifically understood that any modification, limitation
or discharge of the Loan arising out of or by virtue of any bankruptcy, reorganization or similar proceeding for relief of Borrower
under federal or state law will not affect, modify, limit or discharge the liability of Guarantor in any manner whatsoever, and
this Guaranty will remain and continue in full force and effect and will be enforceable against Guarantor to the same extent and
with the same force and effect as if any such proceeding had not been instituted. Guarantor waives all rights and benefits that
might accrue to it by reason of any such proceeding and will be liable to the full extent hereunder, irrespective of any modification,
limitation, or discharge of the liability of Borrower that may result from any such proceeding.

 

		5.	SUBROGATION AND SUBORDINATION. During the term of this Guaranty, Guarantor waives
any and all rights of subrogation, reimbursement or indemnity whatsoever and any and all right of recourse to security, whether
against Borrower or under or out of the property of Borrower or otherwise, for the debts and obligations of Borrower to Lender,
or any successor or assign thereof, with respect to the Loan; provided, however, that Guarantor shall be entitled to enforce or
receive payment, directly or indirectly, of any indebtedness of Borrower to Guarantor at times when no Event of Default (as defined
in the Note) by Borrower exists. Guarantor will not be deemed a “creditor” (as defined in the U.S. Bankruptcy Code)
of Borrower with respect to the Loan. No setoff, counterclaim, reduction or diminution of any obligation, or any defense of any
kind or nature, that Guarantor has or may have in the future against Borrower, or that Borrower has or may have in the future against
Lender, will be available hereunder to Guarantor against Lender. Any indebtedness, liability or other obligation of Borrower now
or hereafter owed to Guarantor hereby is subordinated to the Loan; and, unless otherwise agreed by Lender, during the continuance
of any Event of Default by Borrower, all payments or other transfers made under or on account of any such indebtedness, liability
or other obligation will be received by Guarantor as trustee for Lender and immediately paid over to Lender on account of the Loan
but without in any manner reducing or affecting the liability of Guarantor under this Guaranty.

 

		6.	COSTS. All reasonable costs or expenses incurred by Lender in protecting or enforcing
its rights under this Guaranty will be a direct and primary obligation of Guarantor.

 

		7.	GENERAL.

 

		7.1	Notices. All notices, demands, requests, consents, approvals and other communications
required or permitted hereunder must be in writing and will be effective upon receipt to the Lender or the Guarantor, as applicable.
Such notices and other communications may be hand-delivered, sent by facsimile transmission with confirmation of delivery and a
copy sent by first-class mail, or sent by nationally recognized overnight courier service, to the party’s address set forth
below or to such other address the Guarantor or the Lender may give to the other in writing for such purpose:

 

    - 6 -

     

    

  

	To Lender:	Western-Southern Life Assurance
    Company
	 	400 Broadway
	 	Cincinnati, OH 45202
	 	Attn:  General Counsel
	 	 
	To Guarantor:	BR Henderson Beach, LLC
	 	Bluerock Residential Growth
	 	REIT, Inc.
	 	c/o Bluerock Real Estate, L.L.C.
	 	712 Fifth Avenue, 9th Floor
	 	New York, NY  10019
	 	Attn:  Michael Konig, Esq.

 

All such communications, if personally
delivered, will be conclusively deemed to have been received by a party hereto and to be effective when so delivered, or if sent
by telex, facsimile or telegraphic means, on the day on which transmitted, or if sent by overnight courier service, on the day
after deposit thereof with such service.

 

		7.2	Remedies Cumulative, Etc. The terms of this Guaranty may be enforced as to any one
or more Liabilities either separately, successively, concurrently, independently or cumulatively from time to time and as often
and in such order as Lender may deem expedient, and no single or partial exercise of any right or remedy will preclude any further
exercise thereof. No right or remedy herein conferred upon or reserved to Lender hereunder is intended to be exclusive of any other
available right or remedy, but each and every such right or remedy will be cumulative and will be in addition to every other right
or remedy given under this Guaranty or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise
any right, remedy or power accruing upon any Event of Default or default, omission or failure of performance hereunder or under
the Loan with respect to any Liability will impair any such right, remedy or power or will be construed to be a waiver thereof
or an acquiescence therein, nor will it affect any subsequent Event of Default or default of the same or a different nature.

 

		7.3	Joint and Several Liability. If more than one person has executed this Guaranty as
Guarantor, the liability of all persons executing this Guaranty as a guarantor shall be joint and several as to all obligations
of Guarantor hereunder. Any reference to “Guarantor” will mean each such person or entity individually and collectively.

 

    - 7 -

     

    

		7.4	Waivers and Modifications. No delay or failure on the part of Lender to exercise
any right, remedy or power hereunder, under any of the Loan Documents, under the Loan or under applicable law will impair or waive
any such right, remedy or power (or any other right, remedy or power), be considered a waiver of or an acquiescence in any breach,
Default or Event of Default or affect any other or subsequent breach, Default or Event of Default of the same or a different nature.
No waiver of any breach, Default or Event of Default, nor any modification, waiver, discharge or termination of any provision of
this Guaranty or any of the Loan Documents, nor consent to any departure by any Guarantor therefrom, will be established by conduct,
custom or course of dealing; and no modification, waiver, discharge, termination or consent will in any event be effective unless
the same is in writing, signed by Lender and specifically refers to this Guaranty, and then such modification, waiver, discharge,
termination or consent will be effective only in the specific instance and for the specific purpose for which given. No notice
to or demand on any Guarantor in any case will entitle any Guarantor to any other or further notice or demand in the same or any
similar or other circumstance.

 

		7.5	Binding Effect, Assignability. This Guaranty will be binding upon Guarantor and Guarantor’s
heirs, administrators, successors and assigns and inure to the benefit of Lender and its successors and assigns; provided, however,
that Guarantor may not assign this Guaranty in whole or in part without the prior written consent of Lender, and Lender at any
time may assign this Guaranty in whole or in part in connection with a corresponding assignment of the Loan. If the Loan is assigned
in whole or in part by Lender, this Guaranty will inure to the benefit of Lender’s assignee, and to the benefit of any subsequent
assignee, to the extent of the assignment or assignments; provided that no assignment will operate to relieve Guarantor from any
duty to Lender hereunder with respect to any unassigned portion of the Loan.

 

		7.6	Gender, Etc. Whenever used herein, the singular number will include the plural, the
plural the singular and the use of the masculine, feminine or neuter gender will include all genders.

 

		7.7	Heading. The headings in this Guaranty are for convenience only and will not limit
or otherwise affect any of the terms hereof.

 

		7.8	Complete Agreement. This Guaranty constitutes the entire agreement among the Guarantor
and Lender and supersedes all prior oral and written negotiations, agreements and understandings regarding the subject matter of
this Guaranty.

 

		7.9	Counterparts. This Guaranty may be executed in one or more counterparts, each of
which will be deemed to be an original and all of which together will constitute one and the same instrument; provided, however,
that failure of any Guarantor to sign any or all counterparts will not affect the liability of any other Guarantor hereunder.

 

    - 8 -

     

    

 

		7.10	Illegality. If any provision of this Guaranty is prohibited by or invalid under applicable
law, such provision will be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder
of such provision and without invalidating any other provision herein; provided, however, that if the provision that is the subject
of such prohibition or invalidity pertains to payment, then, at the option of Lender, the Loan will become immediately due and
payable.

 

		7.11	Governing Law. This Guaranty will be deemed to have been made at Cincinnati, Ohio,
and will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State
of Florida, without regard to conflicts of law principles.

 

		8.	JURISDICTION AND WAIVER OF JURY TRIAL. Guarantor hereby irrevocably agrees and submits
to the exclusive jurisdiction of any state or federal court located within the state where the real estate that is the subject
of the Loan Documents is located, or, at the option of Lender in its sole discretion of any state or federal court(s) located within
any other county, state or jurisdiction in which Lender at any time or from time to time chooses in its sole discretion to bring
an action or otherwise exercise a right or remedy and where Guarantor is located or where any of its assets are located, and Guarantor
waives any objection based on forum non conveniens and any objection to venue of any such action or proceeding. Guarantor hereby
irrevocably consents that all service of process be made by certified mail directed to Guarantor at its address set forth herein
for notices and service so made will be deemed to be completed the earlier of Guarantor’s actual receipt thereof or five
(5) Business Days after the same has been deposited in U.S. Mails, postage prepaid. Nothing contained herein will prevent Lender
from serving process in any other manner permitted by law. Guarantor and Lender each waive any right to trial by jury in any action
or proceeding relating to this Guaranty, the Loan Documents, the Loan, the collateral or any actual or proposed transaction or
other matter contemplated in or relating to any of the foregoing.

 

[Signature page
follows]

 

    - 9 -

     

    

 

[Signature page to Limited Recourse
Guaranty]

 

	 

 	BLUEROCK RESIDENTIAL GROWTH REIT, INC., a Maryland
corporation
	 	 	 
	 	By:	/s/ Michael Konig
	 	 	 
	 	Print Name:	Michael Konig
	 	 	 
	 	Title:	Authorized Signatory
	 	 	 
	 	Dated as of March 10, 2016.

 

	STATE OF NEW YORK	§
	 	§SS:
	COUNTY OF NEW YORK	§

 

This instrument was acknowledged before
me on the 10th day of March, 2016, by Michael Konig, the Authorized Signatory of BLUEROCK RESIDENTIAL GROWTH REIT, INC., a
Maryland corporation and Guarantor under the foregoing instrument, on behalf of said corporation, and who represented to me to
be said person.

 

	 	/s/ Dale Pozzi
	 	 
	 	[SEAL]
	 	 
	 	Notary Public, State of New York
	 	 
	 	My Commission Expires:1/28/2017
	 	 
	 	Printed Name of Notary: Dale Pozzi

 

    - 10 -

     

    

 

EXHIBIT A

 

Legal Description of the Property

 

All that certain lot, piece or parcel of
land, with the buildings and improvements thereon erected, situate, lying and being in the City of Destin, County of Okaloosa,
State of Florida.

 

TRACT I - FEE SIMPLE:

 

Lot 2, ALEXAN HENDERSON BEACH SUBDIVISION,
as recorded in Plat Book 24, page 70, of the Public Records of Okaloosa County, Florida.

 

TOGETHER WITH THE FOLLOWING EASEMENTS:

 

EASEMENT 1:

 

Together with non-exclusive easements for
drainage, landscaping and construction of improvements contained in Drainage and Restriction Agreement by and between HBT, LLC,
a Florida limited liability company, and AHB APARTMENTS, LLC, a Delaware limited liability company, recorded in Official Records
Book 2830, page 2171, of the Public Records of Okaloosa County, Florida.

 

EASEMENT 2:

 

Together with non-exclusive easements for
drainage, utilities, vehicular and pedestrian, ingress and egress, signage and landscaping contained in Access, Utilities and Drainage
Easement Agreement by and between HBT, LLC, a Florida limited liability company, and AHB APARTMENTS, LLC, a Delaware limited liability
company, recorded in Official Records Book 2830, page 2186, of the Public Records of Okaloosa County, Florida.

 

EASEMENT 3:

 

Together with non-exclusive easements for
vehicular and pedestrian ingress and egress, and the installation, use, maintenance and removal of utilities contained in Operation
and Easement Agreement by and between HBT, LLC, a Florida limited liability company, and AHB APARTMENTS, LLC, a Delaware limited
liability company, recorded in Official Records Book 2830, page 2221, of the Public Records of Okaloosa County, Florida.

 

TRACT II - FEE SIMPLE:

 

Lot 2, ALEXAN HENDERSON BEACH PHASE 2, as
recorded in Plat Book 26, page 20, of the Public Records of Okaloosa County, Florida.

 

    - 11 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00256-of-00352.parquet"}]]