Document:

EXHIBIT 10.5.4

                         AGREEMENT OF PURCHASE AND SALE

                                     BETWEEN

                     IVEY BROOK APARTMENTS, INC., PURCHASER,

                                       AND

                  ROBERTS PROPERTIES RESIDENTIAL, L.P., SELLER

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                         LIST OF EXHIBITS AND SCHEDULES

EXHIBIT A                  LEGAL DESCRIPTION
EXHIBIT B                  PERSONAL PROPERTY
EXHIBIT B-1                EXCLUDED PERSONAL PROPERTY
EXHIBIT C                  EXISTING LOAN DOCUMENTS

Schedule 3.1               RENT ROLL
Schedule 3.2               ADDITIONAL DUE DILIGENCE ITEMS
Schedule 5.1.5             SERVICE CONTRACTS
Schedule 5.1.23            NAMES AND TRADEMARKS
Schedule 6.2               EXISTING LENDER'S REQUIREMENTS
Schedule 6.4.2.1           DEED
Schedule 6.4.2.2           FIRPTA
Schedule 6.4.2.3           ERISA AFFIDAVIT
Schedule 6.4.2.4           TITLE AFFIDAVIT
Schedule 6.4.2.5           ASSIGNMENT OF LEASES
Schedule 6.4.2.6           ASSIGNMENT OF INTANGIBLE PROPERTY
Schedule 6.4.2.9           BILL OF SALE
Schedule 6.4.2.11          REAFFIRMATION OF REPRESENTATIONS AND WARRANTIES
Schedule 6.4.2.17          AFFIDAVIT OF SELLER'S RESIDENCE

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                         AGREEMENT OF PURCHASE AND SALE

         This  Agreement of Purchase and Sale (this  "Agreement")  is made as of
the later of the dates on which the parties hereto have executed this Agreement,
as set forth below (the "Effective Date"), by and between IVEY BROOK APARTMENTS,
INC., a Delaware corporation ("Purchaser"),  and ROBERTS PROPERTIES RESIDENTIAL,
L.P., a Georgia limited partnership ("Seller").

         Purchaser agrees to purchase,  and Seller agrees to sell, the following
property (the  "Property"):  (i) that certain  improved real property (the "Real
Property"),  situated  in the  County of  Gwinnett,  State of  Georgia,  legally
described on Exhibit A attached  hereto and made a part  hereof,  located at 100
Ivey Park Lane, Norcross, Georgia 30092, and improved with that certain 146 unit
apartment complex containing approximately 196,935 rentable square feet of space
and  commonly  known as "Ivey  Brook"  (together  with all  amenities  and other
improvements located on the Real Property,  the  "Improvements"),  together with
all rights,  privileges,  easements and appurtenances thereto, including any and
all mineral rights,  development rights, air rights, and the like and all right,
title and  interest  of Seller in and to all strips and gores and any land lying
in the bed of any street,  road or alley,  open or proposed,  adjoining the Real
Property;  (ii) all right,  title and  interest of Seller in and to all tangible
personal  property  now or  hereafter  used in  connection  with the  operation,
ownership, maintenance, management or occupancy of the Real Property, including,
without  limitation,  the  equipment,  machinery,  furniture,   furnishings  and
supplies  listed on  Exhibit  B  attached  hereto  and made a part  hereof  (the
"Personal Property");  (iii) all the landlord's interest in the leases and other
occupancy  agreements  and all  amendments  and  modifications  thereto  and the
benefit  of any  guaranties  thereof  for space in the  Improvements,  including
leases which may be made by Seller after the date hereof and before  Closing (as
hereinafter  defined) in accordance with provisions  hereof  (collectively,  the
"Leases"),  and all of Seller's right, title and interest in and to all security
deposits, pet fees, cleaning fees and prepaid rent, if any thereunder;  and (iv)
Seller's  right title and interest in all intangible  personal  property used in
the  operation  and  management  of the Property  (the  "Intangible  Property"),
including, without limitation, all of the names under which the Real Property is
being operated, including those set forth in Schedule 5.1.23, provided, however,
(i) only the right to use the name "Ivey Brook  Apartments"  and any  associated
logos in Gwinnett  County,  Georgia is to be sold and  transferred  by Seller to
Purchaser,  Seller  retaining  the right to use such name and  associated  logos
outside of Gwinnett County,  Georgia, (ii) not transferred,  sold or conveyed to
Purchaser is Seller's trademark "Creating  Communities For Superior  Lifestyles"
which is  retained  by Seller  and which  Purchaser  agrees not to use either in
connection  with the Property or otherwise  (provided that Purchaser  shall have
the limited  right and license to use such name in  connection  with its use and
dissemination of existing  marketing  materials relating to the Property for the
thirty (30) day period following Closing), and, to the extent transferable,  any
of Seller's rights in and to the plans and specifications, all architectural and
engineering studies,  reports, drawings and prints relating to the Property, all
warranties  relating to the Real Property or the Personal Property,  all Service
Contracts (as hereinafter defined) to the extent transferable (and including any
bonuses  payable to Seller or other  income to be  derived  by Seller  under the
terms  thereof),  Seller's  rights  in and to all  licenses,  permits  and other
written authorizations necessary for the zoning, land use,

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operation, ownership, construction and maintenance of the Property to the extent
assignable,  and all goodwill associated with the Property, all tenant files and
all other files and  records  related to the  management  and  operation  of the
Property,  and all claims and causes of action  arising out of or in  connection
with the Property (other than claims solely related to Seller's ownership of the
Property  including  claims for delinquent rent for periods prior to the Closing
Date,  unless  otherwise   specifically   provided  below),  but  excluding  all
proprietary  information  of Seller and its managing  agent  including  computer
software  (but not the data  pertaining  to the  operation of the  Property) and
related licenses and appraisals.

1.       Consideration.
         -------------

         1.1 The purchase price for the Property shall be Fourteen  Million Five
Hundred  Fifty  Thousand  and No/100  Dollars  ($14,550,000.00)  (the  "Purchase
Price"),  which Purchase Price,  less the amount specified in the first sentence
of Paragraph  1.3 hereof (if Paragraph  1.3 is  applicable),  will be payable in
cash at  Closing,  plus or minus  prorations  and  subject  to the other  terms,
conditions  and  adjustments  set forth herein,  by wire transfer of funds to an
account designated by Seller.

         1.2 In  consideration  of the  Seller's  agreements  contained  herein,
Purchaser  shall  pay  Seller  the sum of One  Hundred  Dollars  ($100.00)  (the
"Contract  Consideration")  upon the Effective Date. The Contract  Consideration
shall be non-refundable, regardless of whether Purchaser purchases the Property,
but shall be a credit against the Purchase Price at Closing.

         1.3 Subject to Purchaser's  right to cause the Existing Loan to be paid
in full at Closing  pursuant to Paragraph  6.13  hereof,  an amount equal to the
unpaid principal  balance at Closing of those certain loans  (collectively,  the
"Existing  Indebtedness") evidenced by the loan documents described on Exhibit C
attached  hereto  and  made a part  hereof  (collectively,  the  "Existing  Loan
Documents")  shall be evidenced by Purchaser's  agreement to assume the Existing
Indebtedness in connection with the conveyance of the Property,  and such amount
of the unpaid principal balance of the Existing  Indebtedness shall constitute a
credit to Purchaser  against the  Purchase  Price.  As of the date  hereof,  the
unpaid  principal   balance  of  the  Existing   Indebtedness  is  approximately
$6,189,600.57.

         The credit of the  Existing  Indebtedness  against the  Purchase  Price
shall be subject to the following further provisions:

                  (a)   Assumption.   Purchaser   shall   assume  the   Existing
Indebtedness at Closing.  As part of the consideration for the purchase and sale
of the Property contemplated by this Agreement, Purchaser shall assume and agree
to pay the Real  Estate  Notes  described  on said  Exhibit C and other  amounts
payable under the other Existing Loan Documents in accordance  with the terms of
the Existing Loan Documents and shall assume and agree to comply with all of the
covenants,  terms and  obligations of the Existing Loan Documents  accruing from
and after the Closing,  but not before.  Purchaser's  assumption will be in form
acceptable to Nationwide  Life  Insurance  Company and West Coast Life Insurance
Company, the holders of the Existing Loan Documents (the "Existing Lenders").

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                  (b)  Estoppel   Certificate.   As  a  condition  precedent  to
Purchaser's  obligation  to purchase  the Property at Closing,  Purchaser  shall
receive at or prior to Closing an estoppel  certificate  executed by each of the
Existing  Lenders,  which estoppel  certificate shall be in the form customarily
provided  by each such  Existing  Lender and must be  reasonably  acceptable  to
Purchaser  (the "Lender  Estoppel").  Seller  shall  forward a copy of each such
Lender  Estoppel  to  Purchaser  in advance of Closing at such time as each such
Lender  Estoppel is received by Seller,  but not earlier  than fifteen (15) days
prior to the Closing (provided Seller shall use diligent,  good faith efforts to
forward same to Purchaser not later than three (3) days prior to Closing).

2.       Intentionally omitted.
         ---------------------

3.       Review of Property.
         ------------------

         3.1 On or before the Effective Date, Seller shall deliver to Purchaser:
(i) true and accurate  copies of monthly  operating  statements for the Property
for the year to date and for the most recently  completed  prior year and annual
operating  statements  for three  (3)  years  prior to the  current  year  (such
statements  shall  include,  in  addition to current  income and expense  items,
itemization of all capital expenditures made during the respective periods, and,
if a part of Seller's records,  tenant payment records and delinquent accounts);
(ii) the current  year's  operating  and capital  budget  with a  comparison  to
actuals; (iii) a current rent roll (the "Rent Roll") listing every tenant of the
Property,  lease commencement and termination dates,  rental amounts, a schedule
of rent concessions, rebates and offsets given on the Leases, security deposits,
pet fees,  cleaning fees and pre-paid  rent,  if any, and such other  applicable
information  as set forth in Paragraph  5.1.3 (which Rent Roll is to be attached
as Schedule 3.1 hereto upon delivery to Purchaser,  if not provided and attached
as of the Effective Date); (iv) a schedule of all on-site employees  employed by
Seller in the  operation of the Property,  setting forth the names,  salaries or
other compensation,  and other pertinent information  concerning such employees,
including the terms of all  contracts  with them, if any; (v) a list showing all
litigation instituted by or pending against Seller in regard to the Property, or
the  Property;  (vi)  documentary  evidence  of the  authority  of  the  persons
signatory  hereto on behalf of  Seller;  (vii) true and  accurate  copies of the
Existing  Loan  Documents;  (viii) any notice of any  statute or code  violation
pertaining  to the  Property  received  by Seller or its Agents (as  hereinafter
defined) in the previous  three (3) years and any  documents  pertaining  to the
resolution thereof;  and (ix) copies of the building permits and certificates of
occupancy for the Property.

         3.2 On or before the Effective Date,  Seller shall deliver to Purchaser
(or make  available  for  Purchaser's  inspection at the Property or at Seller's
corporate offices in Atlanta,  Georgia) copies of the following  documents if in
Seller's possession or control relating to the Property:  (i) surveys; (ii) real
and  personal  property  tax  bills for the  previous  three  (3)  years;  (iii)
mechanical,  electrical  and  structural  plans  and  specifications,  including
as-builts;  (iv)  applicable  flood  plain  map;  (v)  tenant  files,  including
correspondence  and the Leases,  (vi)  insurance  policies of Seller,  including
title insurance  policies;  (vii)  warranties;  (viii) Service  Contracts;  (ix)
management,  leasing and  commission  agreements;  (x) reports of an  engineer's
inspection of the structural aspects and mechanical systems of the Improvements;
(xi) soils and

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geotechnical reports; (xii) reports, studies, assessments, test results or other
documents  relating to the  environmental  condition  and/or the development and
improvement of the Property;  (xiii) audits,  inspections or reports determining
compliance  (or  non-compliance)   with  Laws,   including  the  Americans  with
Disabilities  Act;  (xiv) all other  contracts  or other  documents  of material
importance to the Property,  and (xv) to the extent not referenced  hereinabove,
those  items  listed  on  Schedule  3.2  attached  hereto  (including,   without
limitation,  a schedule of Personal  Property,  in the form of Exhibit B hereto,
revised and updated for accuracy, as necessary).

         3.3      Intentionally omitted.

         3.4.  Seller shall provide  Purchaser and its Agents with access to the
Property  (and,  following  reasonable  prior  notice to Seller,  each and every
apartment  unit  thereon) to inspect  and test the  Property  to  determine  its
present condition, provided Purchaser uses good faith, reasonable efforts not to
(i) unreasonably  interfere with tenants of the Property or (ii) disclose to the
tenants  of the  Property  Purchaser's  possible  acquisition  of the  Property.
Without limiting the foregoing, prior to any entry for invasive on-site testing,
Purchaser  shall give  Seller  notice  thereof,  including  the  identity of the
company or persons who will perform  such testing and the proposed  scope of the
testing.  Seller shall approve or disapprove  the scope and  methodology of such
proposed  invasive  testing  within one (1) business  day after  receipt of such
notice,  such  approval not to be  unreasonably  withheld;  Seller's  failure to
notify  Purchaser  of its  disapproval  shall be deemed to be Seller's  approval
thereof.  Purchaser shall assure that its contractors  maintain public liability
and property damage  insurance in amounts and in form and substance  adequate to
insure  against  all  liability  of  Purchaser  and its Agents  (as  hereinafter
defined) arising out of any entry or inspection of the Property  pursuant to the
provisions  hereof.  Anything  contained  in  this  Agreement  to  the  contrary
notwithstanding, Purchaser shall indemnify, defend and hold Seller harmless from
and  against  any  costs  damage,  liability,   loss,  expense,  lien  or  claim
(including,  without limitation,  reasonable attorney's fees) proximately caused
by any  entry  on the  Property  by  Purchaser  and  its  agents,  employees  or
contractors  (collectively either in the case of Purchaser or Seller,  "Agents")
in the course of performing the inspections,  testing or inquiries  provided for
in this Agreement,  including without limitation, damage to the Property, bodily
injury or release of Hazardous  Material onto the Property (but not discovery of
existing  Hazardous  Material),  but excluding  any costs  incurred by Seller in
supervising  Purchaser's  testing.  Anything  contained in this Agreement to the
contrary notwithstanding,  the foregoing indemnity shall survive the Closing, or
if the sale is not consummated, the termination of this Agreement.

         3.5  If,  for any  reason,  this  Agreement  is  terminated,  Purchaser
covenants  and  agrees  to  promptly  return  to  Seller  any and  all  Property
information  provided to Purchaser  pursuant to the  provisions of Paragraph 3.1
and 3.2 of this  Agreement  and any other  information  provided to Purchaser by
Seller pursuant to this Agreement.

         3.6 Purchaser shall have until 5:00 p.m.  Eastern Standard Time on June
21, 2000 (the "Review  Period") to determine in its sole discretion  whether the
Property  supports the proposed  Purchase  Price and is otherwise  acceptable to
Purchaser. If Purchaser shall conclude that such is the case, Purchaser shall so
notify Seller (the "Review Period Notice") prior to the

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expiration of the Review  Period.  If Purchaser  fails to give the Review Period
Notice within the Review Period or if Purchaser's  acceptance contains any terms
or conditions ("Purchaser's Conditional Response") and said terms and conditions
are not  accepted by Seller by notice given to Purchaser on or before 12:00 p.m.
Eastern Standard Time on the second (2nd) day after the expiration of the Review
Period ("Seller's  Conditional  Response Period"),  then this Agreement shall be
deemed  terminated  upon  the  expiration  of  the  Review  Period  or  Seller's
Conditional Response Period or, if earlier, upon Purchaser's receipt of Seller's
written rejection of any of the terms of Purchaser's  Conditional  Response,  as
the case may be, in which event this Agreement will terminate  without liability
on the part of Seller or Purchaser,  other than Purchaser's  indemnity contained
in  Paragraph  3.4 hereof.  In the event  Purchaser  timely  delivers the Review
Period Notice or Seller accepts Purchaser's Conditional Response within Seller's
Conditional Response Period, Purchaser will be deemed to have elected to proceed
with the transaction upon the terms and conditions  contained in this Agreement,
as so modified,  and this  Paragraph 3.5 shall have no further force and effect.
In the event Purchaser timely delivers the Review Period Notice, Purchaser shall
be  deemed  to have  agreed  to  assume  effective  as of the  Closing  Seller's
obligations  under the  Service  Contracts  accruing  from and after the Closing
Date.

4.       Title.
         -----

         4.1 Purchaser  shall have until the  expiration of the Review Period by
which to examine title to the Property,  at  Purchaser's  sole cost and expense,
and to give written notice to Seller of any objections  which Purchaser may have
to any exceptions  reported in any title commitment obtained by Purchaser from a
national title insurance  company selected by Purchaser (the "Title Insurer") or
matter shown on the Survey (as  hereinafter  defined).  Other than Curable Title
Exceptions  (as  hereinafter  defined) which Seller hereby  obligates  itself to
remove at its sole cost and expense and in a manner  reasonably  satisfactory to
Purchaser,  Seller may either cure any title or survey  defect so objected to by
Purchaser in a manner  reasonably  satisfactory  to Purchaser or promptly notify
Purchaser  that it is unable or unwilling (in its sole  discretion) to cure such
defects. Except in the case of Curable Title Exceptions,  Purchaser,  within one
(1) day of receipt of such notice,  shall,  as its  exclusive  remedy,  elect by
written notice to Seller one of the  following:  (i) waive such title and survey
objections  and  proceed to  Closing,  (ii) cure the same,  at its sole cost and
expense or (iii) terminate this  Agreement.  Failure to send a written notice to
Seller within such one (1) day period  exercising  such election shall be deemed
an election to terminate  this  Agreement.  If the objected to exceptions  which
Seller is unable or unwilling to remove relate to any (i) financing liens (other
than the Existing Loan Documents),  mechanics' and materialmen's liens caused by
Seller or its Agents,  (ii) liens  relating to ad valorem taxes for the Property
other  than for the  current  year  which  are not yet due and  payable  and any
possible  reassessment of prior years' ad valorem taxes, or (iii) liens or other
title exceptions resulting solely from acts of Seller or its Agents occurring on
or  after  the  Effective  Date  (collectively,   "Curable  Title  Exceptions"),
Purchaser  may  discharge  the same at Closing and deduct the cost to do so from
the Purchase  Price and Seller shall  cooperate  with Purchaser in doing so. All
title exceptions shown on Purchaser's  title commitment and survey matters shown
on the Survey (and all title  exceptions  and survey  matters shown on any title
policy or survey of the Property  delivered  by Seller to Purchaser  pursuant to
Paragraph 3.2

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hereof) that are not objected to pursuant to this Paragraph 4.1, and those which
notwithstanding  objection by Purchaser  Seller cannot or is unwilling to remove
(other than Curable  Title  Exceptions)  and to which  Purchaser  agrees to take
subject,   shall  be  deemed   permitted   exceptions  (the   "Permitted   Title
Exceptions").  Purchaser  shall  not have the  right  to  object  to title or to
terminate this Agreement by reason of any title  exceptions  which are caused by
Purchaser or its Agents.

         4.2 The Deed  shall  contain  the  legal  description  of the  Property
contained  in  Exhibit A  hereto.  Purchaser  shall  have the right to obtain an
as-built survey of the Property (the "Survey"), at its sole cost and expense. If
the legal description of the Property based on the Survey differs from Exhibit A
hereto,  then Seller  shall also convey the  Property to  Purchaser by quitclaim
deed pursuant to the new survey legal description of the Property, provided such
new description of the Property is reasonably acceptable to Seller.

5.       Representations and Warranties of Seller.
         ----------------------------------------

         5.1  Whenever  the  words  "to  Seller's  knowledge",  "to the  best of
Seller's knowledge", or "to Seller's actual knowledge" are used herein, the same
shall mean the current actual  knowledge of Charles S. Roberts and/or Charles R.
Elliott,  the two  executive  officers of Seller's  corporate  general  partner,
and/or of Ron Johnson, Seller's Vice President of Maintenance,  and not anything
which any one of them should have known but did not actually know, and shall not
include  constructive  knowledge.  Seller  hereby  warrants  and  represents  to
Purchaser as follows:

                  5.1.1 To Seller's knowledge,  except for (i) any matters which
Purchaser and its Agents have discovered  through their due diligence  conducted
prior to the Effective Date, and (ii) any matters which Purchaser and its Agents
should  reasonably  be expected to discover  through  reasonable  due  diligence
whether  conducted prior to or after the Effective  Date,  there are no material
physical,  structural, or mechanical defects currently existing on the Property,
nor  do  any  conditions  currently  exist  which  would  adversely  affect  the
insurability  of the Property.  Each apartment unit on the Property  contains an
oven, refrigerator,  disposal, dishwasher, and miniblinds on all windows, all of
which  are owned by Seller  free and clear of all liens and  encumbrances  other
than (i) the  Existing  Indebtedness  and  (ii) ad  valorem  real  and  personal
property  taxes not yet due and payable and the possible  reassessment  of prior
years' ad valorem real and personal property taxes. The foregoing representation
is made by Seller and  accepted by Purchaser  with the  knowledge on the part of
Purchaser  that the  Property  is  approximately  three to four years old and is
therefore subject to normal wear and tear and is not in "perfect" or "brand-new"
condition.

                  5.1.2 To the best of Seller's  knowledge,  the  documents  and
other items delivered to Purchaser pursuant to Paragraphs 3.1 and 3.2 are all of
the relevant documents pertaining to the condition and operation of the Property
in Seller's or Seller's Agent's  possession or control;  that said documents and
other  items  are  true,  correct  and  complete  as of the  date  delivered  to
Purchaser,  and will  continue to be true,  correct and  complete on the Closing
Date, as they may be updated,  modified or  supplemented in accordance with this
Agreement;  that, to Seller's  knowledge,  said documents and other items fairly
present the information set

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forth therein in a manner that is not misleading;  and that all Leases and other
agreements  delivered to  Purchaser  are in full force and effect,  without,  to
Seller's  knowledge,  default  by any party and  without  any right of  set-off,
except as  disclosed  in  writing  at the time of such  delivery,  and that,  to
Seller's knowledge,  all equipment leases and contracts for services relating to
the Property, including, without limitation, any service, maintenance,  utility,
vending  machine,  laundry  service  and  other  such  contracts  or  agreements
(collectively,  "Service  Contracts"),  are terminable in accordance  with their
respective  terms, and Seller has delivered  copies of all Service  Contracts as
part of its deliveries pursuant to Paragraph 3.2.

                  5.1.3 The Rent Roll is a true,  correct and  complete  list of
(x) all of the Leases,  all of which are in full force and effect, (y) the names
of all of the tenants or other persons (other than the vendors under the Service
Contracts) possessing contractual rights to occupy a portion of the Property and
(z) their rental and any other monetary obligations  thereunder;  and, except as
set forth on the Rent Roll,  (i) there are no options to terminate or renew,  or
any rent concessions,  rebates or offsets given to any of the tenants,  (ii) all
rental and other payments due under such Leases as of the date thereof have been
paid in full, (iii) Seller and, to the best of Seller's  knowledge,  the tenants
under the  Leases,  are not in default  under the  Leases,  and Seller has fully
complied with the terms and  conditions of all the Leases,  (iv) no tenant under
any Lease has  withheld  any  payment  under  its Lease for any  reason,  (v) to
Seller's  knowledge,  no tenant  under any Lease has  vacated or  abandoned  its
premises,  and Seller has no  knowledge  of that any  tenant  contemplates  such
action,  (vi) no rents or other payments have been collected more than one month
in advance and no rents or other  deposits are held by Seller,  except  security
deposits,  pet fees and cleaning fees described on the Rent Roll or prepaid rent
for the current month, (vii) there are no commissions or other fees payable with
regard to any of the Leases,  except for possible leasing commissions to on-site
personnel  paid in the  ordinary  course of  business,  which  shall be the sole
responsibility  of Seller and which shall be paid in full by Seller,  (viii) any
and  all  tenant  improvement  work,  decorating,   painting,   renovation,  and
construction  currently required to be done by the landlord under the provisions
of any agreement with any tenant has been fully completed and paid for, and (ix)
Seller and its  Agents  have not  entered  into any  agreements  with any of the
tenants except for the Leases delivered to Purchaser, and except as landlord and
tenant Seller has no business  relationship with any of the tenants (except that
one (1) courtesy  officer resides in apartment number 1211, and Seller's on-site
maintenance  supervisor  resides in  apartment  number 524, on a rent free basis
pursuant to Leases delivered to Purchaser).

                  5.1.4      Intentionally omitted.

                  5.1.5 All Service  Contracts are listed on Schedule 5.1.5. The
Property is  self-managed  by Seller and are not currently nor shall there be at
Closing any management or leasing agreements applicable to the Property.

                  5.1.6  To  Seller's  knowledge,   (i)  there  are  no  special
assessments, bonds, special tax districts or outstanding obligations (contingent
or  otherwise)  to  governmental  entities  (collectively,  "Assessments")  with
respect to the Property or any part thereof,  or any  contemplated or threatened
reassessment  of  prior  years'  ad  valorem  real or  personal  property  taxes
applicable to the Property,  (ii) there are no pending condemnation actions, nor
has Seller

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any knowledge of any Assessments or condemnation actions being contemplated; and
(iii) the Property is  separately  assessed for real estate tax purposes and not
combined with any other property for such purposes.

                  5.1.7 To  Seller's  knowledge,  all  water,  sewer,  electric,
telephone, cable, drainage facilities and all other utilities required by law or
by the normal  operation of the Property are installed across public property or
valid  easements to the property  lines of the Property;  to Seller's  knowledge
based upon the fact that building  permits and  certificates  of occupancy  have
been obtained for the  Property,  all such  utilities  are connected  with valid
permits and at Closing  will be adequate to service the  Property  and to permit
full  compliance  with all  requirements  of law;  and to Seller's  knowledge no
deposits or other fees are currently due and payable to the provider of any such
utilities.

                  5.1.8 To Seller's knowledge, Seller has obtained all licenses,
permits, easements, and rights-of-way,  including proof of dedication,  required
from all governmental  authorities having jurisdiction over the Property or from
private  parties  to  permit  the  present  use of the  Property  and to  insure
vehicular and pedestrian ingress and egress to the Property from public roads at
all access points currently being used.

                  5.1.9 The sale of the  Property is not subject to any federal,
state or local withholding  obligation of Purchaser under the tax law applicable
to Seller or the Property.

                  5.1.10 This Agreement has been duly  authorized,  executed and
delivered by Seller and is the legal,  valid,  and binding  obligation of Seller
enforceable  against Seller in accordance with its terms, and, subject to Seller
obtaining the approval from the Existing  Lender  contemplated by Paragraph 6.13
hereof, the execution and delivery thereof does not violate any provision of any
agreement or judicial order to which Seller is a party or to which Seller or the
Property is subject;  and that all the  documents  to be  delivered by Seller to
Purchaser  at  Closing  will,  at  Closing , be duly  authorized,  executed  and
delivered  by Seller and, to Seller's  knowledge,  will be the legal,  valid and
binding  obligations of Seller  enforceable  against  Seller in accordance  with
their respective terms and, to Seller's knowledge,  will be sufficient to convey
good and  marketable  fee simple  title to Purchaser  (subject to the  Permitted
Title  Exceptions),  and,  subject to Seller  obtaining  the  approval  from the
Existing  Lender  contemplated  by Paragraph  6.13  hereof,  the  execution  and
delivery  thereof will not violate any  provision  of any  agreement or judicial
order to which  Seller is a party or to which Seller or the Property is subject.
Except for the  approvals  contemplated  by Paragraph  6.13 hereof,  no consent,
approval,  order or  authorization  of any person not a party to this Agreement,
and no consent, approval,  declaration or filing with any governmental authority
on the part of Seller is required in connection  with the execution and delivery
of this  Agreement  by Seller or the  performance  by Seller of its  obligations
herein.

                  5.1.11  There are no  employees  of the Property or Seller who
must be employed by Purchaser in connection  with the  transaction  contemplated
hereby.

                                       8
<PAGE>

                  5.1.12 There are no collective  bargaining  agreements,  other
union  contracts  of any nature,  pension  plans or other  benefit  plans of any
nature in  existence to which Seller is a party and which affect the Property or
the operation thereof.

                  5.1.13  To  Seller's  knowledge,  there  are no facts  nor has
Seller  misrepresented  any fact which would  prevent  Purchaser  from using and
operating  the  Property  after  Closing in the manner in which the  Property is
currently being used and operated.

                  5.1.14  Seller  has not  dealt  with any  broker  or finder in
connection  with the  transaction  contemplated by this Agreement other than any
party to be paid a commission pursuant to Paragraph 6.12.

                  5.1.15 Except for personal  injury or property  damage actions
for which there is adequate  insurance  coverage and where the insurance carrier
has  accepted  the  tender  of the  defense  without  reservation,  to  Seller's
knowledge,  there is no pending action,  suit or proceeding against or affecting
the  Property  or relating to or arising  out of the  ownership,  management  or
operation of the Property in any court or before or by any  federal,  state,  or
municipal department,  commission, board, bureau or agency or other governmental
instrumentality  nor has Seller or its  property  manager  received  any written
notice threatening any such action, suit or proceeding against the Seller or the
Property.

                  5.1.16  Except as to the  occupancy  right of  tenants  as set
forth in the Leases,  and except as set forth in the Service  Contracts  and the
Permitted Title Exceptions, Seller has granted no rights, commitments,  options,
rights of first  refusal or rights of first offer to acquire any interest in the
Property or any  portion  thereof.  Seller has  granted no rights,  commitments,
options,  rights  of first  refusal  or rights of first  offer to  purchase  the
Property or any portion thereof.

                  5.1.17 To  Seller's  knowledge,  Seller has not  received  any
written notice from any party alleging that the Property or its current uses are
in violation of any zoning,  building,  health,  traffic,  flood  control or any
other  applicable  rules,  regulations,  codes,  ordinances,  or statutes of any
local,  state  or  federal  authority  or  any  other   governmental   authority
(collectively,  the "Laws")  asserting  jurisdiction  over the  Property,  which
violations, if any, have not heretofore been corrected in all material respects.

                  5.1.18 To Seller's  knowledge,  neither  Seller nor any of its
affiliates or partners is a  "disqualified  person" under Section 4975(e) of the
Internal Revenue Code of 1986, as amended (the "Code"), or a "party in interest"
within the meaning of Section 3(14) of the Employee  Retirement  Income Security
Act of 1974,  as amended  ("ERISA"),  with  respect to Purchaser or any investor
therein, and Seller has not entered into any leases or other agreements with any
party  which is a  "disqualified  person"  as defined in the Code or a "party in
interest"  within  the  meaning  of  Section  3(14) of ERISA,  with  respect  to
Purchaser.  At or prior to Closing,  Seller  shall  furnish  Purchaser  with any
certifications  of  Seller  or  other  information  which  Purchaser  reasonably
requests in order to insure compliance with the Code and ERISA. Without limiting
the foregoing,  Seller  acknowledges  that ERISA prohibits the sale or exchange,
directly  or  indirectly,   of  any  property  between  a  pension  plan  and  a
"party-in-interest"  or a

                                       9
<PAGE>

"disqualified  person" as to that plan,  as such terms are  defined in ERISA and
the Code,  respectively,  and that an  individual  or  organization  selling  or
exchanging property to a pension plan as to which it is a disqualified person is
subject to an excise tax under Section 4975 of the Code.  (If Purchaser  assigns
its rights hereunder to any nominee,  assignee or Separate Account in accordance
with  Paragraph  6.2, upon  notification  to Seller of any such  assignment,  to
Seller's knowledge,  Seller's  representations and warranties  contained in this
Paragraph  shall be deemed  remade  with  respect to such  assignee,  nominee or
Separate  Account,  as if such  assignee,  nominee or Separate  Account were the
original Purchaser hereunder).

                  5.1.19 To Seller's knowledge the Property,  including, without
limitation,  soil and  groundwater  conditions,  is not in  violation of any Law
relating to industrial  hygiene,  environmental  conditions,  hazardous waste or
toxic materials. Seller further represents and warrants that neither Seller nor,
to  Seller's  knowledge,  any  third  party has  used,  manufactured,  stored or
disposed  of, on,  under or about the  Property  or  transported  to or from the
Property, any flammable explosives,  petroleum or petroleum by-products, natural
gas,  natural gas liquids,  liquefied  natural gas, or synthetic  gas usable for
fuel or mixture  thereof,  radon,  radioactive  materials  or wastes,  hazardous
materials or wastes,  toxic materials or wastes,  asbestos,  asbestos-containing
materials,  PCBs, or other similar materials or wastes (collectively  "Hazardous
Materials")  in  violation  of any Law. To  Seller's  knowledge  no  underground
storage tanks to hold Hazardous Materials exist on or have been removed from the
Property, and, to Seller's knowledge, the Property has never been used as a dump
or landfill site.

                  5.1.20  To the best of  Seller's  knowledge,  Seller is not in
default under any reciprocal  easement  agreement or other recorded  restrictive
covenant affecting the Property.

                  5.1.21 Seller has not, (A) made a general  assignment  for the
benefit of creditors, (B) filed any voluntary petition in bankruptcy or suffered
the filing of any involuntary petition by Seller's, (C) suffered the appointment
of a receiver  to take  possession  of all,  or  substantially  all, of Seller's
assets which remains  pending,  (D) suffered the  attachment  or other  judicial
seizure of all, or  substantially  all of Seller's  assets,  as the case may be,
which remains pending, (E) admitted in writing its inability to pay its debts as
they come due, or (F) made an offer of  settlement,  extension or composition to
its creditors generally.

                  5.1.22  Seller is not a foreign  person  within the meaning of
Section  1445(f)(3)  of the Code,  and  Seller is, or is deemed to be, a Georgia
resident pursuant to O.C.G.A.ss.48-7-128.

                  5.1.23  Seller  has  not  conducted  business  related  to the
Property under any name other than those set forth on Schedule  5.1.23,  and the
only  trademarks  that  Seller is using in the  conduct of its  business  at the
Property  are those set forth on Schedule  5.1.23.  Seller has not  received any
written notice that it or the Property has infringed,  or may be infringing,  on
any name referred to in this Paragraph or any trademark  referred to in Schedule
5.1.23, and to Seller's knowledge,  there is no third party using any such names
or trademarks such that (i) such third party would have a legitimate  claim that
Seller is  infringing  upon the same or (ii) that Seller would have a claim that
such third party is infringing upon such names or trademarks.

                                       10
<PAGE>

                  5.1.24     With respect to the Existing Indebtedness:

                           (i) As of the  date  hereof,  the  principal  balance
outstanding under the Existing Indebtedness is approximately $6,189,600.57.

                           (ii) As of the  date  hereof,  all  payments  due and
payable by Seller under the Existing  Indebtedness,  including,  but not limited
to, all interest,  principal, fees and other charges (if any), have been paid in
full by Seller.

                           (iii) None of the Existing Loan  Documents  have been
modified or amended in any manner whatsoever except as set forth on said Exhibit
C.

                           (iv) To  Seller's  knowledge,  no  default  or events
which  would,  upon the  passage of time or the giving of notice or both,  ripen
into a default, exists under the Existing Loan Documents.

                           (v) Seller has no knowledge of any  assignment of any
of Existing  Lender's  right,  title or interest  under any of the Existing Loan
Documents to any other person or entity.

                           (vi)  Except  as  set  forth  in  the  Existing  Loan
Documents,  Seller  is not  prohibited  under the  Existing  Loan  Documents  or
otherwise from the execution and delivery of this  Agreement or the  performance
of each and  every  covenant  of  Seller  hereunder,  including  the sale of the
Property without repayment of the Existing Indebtedness.

         5.2 Purchaser hereby represents and warrants to Seller as follows which
representations  are  deemed to be  remade by  Purchaser  at  Closing  and shall
survive the Closing:

                  5.2.1  Purchaser  has not dealt  with any  broker or finder in
connection  with the  transaction  contemplated by this Agreement other than any
party to be paid a commission pursuant to Paragraph 6.12.

                  5.2.2 This  Agreement has been duly  authorized,  executed and
delivered  by  Purchaser  and is the legal,  valid,  and binding  obligation  of
Purchaser  enforceable  against  Purchaser in accordance with its terms, and the
execution  and delivery  thereof does not violate any provision of any agreement
or  judicial  order to which  Purchaser  is a party  or to  which  Purchaser  is
subject;  and that all the  documents  to be delivered by Purchaser to Seller at
Closing  will,  at  Closing , be duly  authorized,  executed  and  delivered  by
Purchaser  and will be the legal,  valid and binding  obligations  of  Purchaser
enforceable against Purchaser in accordance with their respective terms, and the
execution  and delivery  thereof will not violate any provision of any agreement
or  judicial  order to which  Purchaser  is a party  or to  which  Purchaser  is
subject.

         5.3 Each of the  representations  and warranties of Seller contained in
Paragraph  5.1:  (i) is made as of  Effective  Date;  (ii)  will be deemed to be
remade by Seller and be true in all

                                       11
<PAGE>

material  respects,  as  of  Closing  unless  Seller  notifies  Purchaser  of an
inaccuracy  occurring  after the Effective  Date as hereinafter  set forth;  and
(iii) will survive for a period of one (1) year after the  Closing,  except that
the  representations and warranties  contained in Paragraphs 5.1.10,  5.1.14 and
5.1.21 shall survive  Closing without any  limitation.  If Closing  occurs,  any
claim  that  Purchaser  may  have  against  Seller  for a  breach  of  any  such
representation  or  warranty  [including,  without  limitation,  an  Intentional
Warranty Breach (as hereinafter  defined)] in respect of any such representation
or  warranty  (other  than those  contained  in  Paragraphs  5.1.10,  5.1.14 and
5.1.21),  whether known or unknown, which is not asserted by the commencement of
a lawsuit  within one (1) year after the Closing will not be valid or effective,
and Seller will have no liability with respect thereto.  If the Closing does not
occur,  Seller shall have no  liability  whatsoever  to  Purchaser  respecting a
breach  of any  of  Seller's  representations  or  warranties,  except  for  any
Intentional  Warranty Breaches as hereinafter set forth. The continued  accuracy
in all material  respects of the aforesaid  representations  and warranties is a
condition precedent to Purchaser's  obligation to close. In the event that on or
prior to  Closing  either  Seller or  Purchaser  becomes  aware that any of such
representations  and warranties have become inaccurate since the Effective Date,
such party shall promptly  notify the other of such  inaccuracy.  If any of said
representations  and warranties has become inaccurate in any material respect as
of Closing (other than as a result of an Intentional  Warranty Breach) and on or
prior  to the  Closing  Purchaser  has  actual  knowledge  of  such  inaccuracy,
Purchaser  as its sole and  exclusive  remedies  may either (a)  terminate  this
Agreement  without  liability  on the part of Seller or  Purchaser,  other  than
Purchaser's  indemnity to Seller  contained in Paragraph  3.4, or (b) waive such
matter,  including the right to make any claim against Seller  post-Closing  and
proceed to Closing without reduction of the Purchase Price. Nothing herein shall
limit Purchaser's  right to sue Seller for damages  occasioned to Purchaser as a
result of (i) any "intentional  breach of  representation or warranty" of Seller
as of the Effective Date or as of the Closing Date (which,  for purposes hereof,
shall mean an intentional  false  statement  respecting a matter of fact made by
the Seller with the intent to deceive or mislead), or (ii) any inaccuracy in any
representation  or warranty of Seller  resulting  from any  intentional  acts or
omissions  of Seller  not  authorized  by the  express  terms of this  Agreement
undertaken  by Seller  with the intent to make such  representation  or warranty
untrue so as to prevent the consummation of the transaction  contemplated herein
(each  of (i) and  (ii)  constituting,  for  purposes  hereof,  an  "Intentional
Warranty Breach"), whether or not Purchaser elects to consummate the transaction
contemplated  hereby with  knowledge  thereof;  provided,  however,  that in all
events any lawsuit based on an Intentional  Warranty Breach must be filed within
one (1) year  after the later of the  Effective  Date (if the  Closing  does not
occur) or the Closing Date (if the Closing does occur)  failing  which any claim
Purchaser  may have for such  Intentional  Warranty  Breach will not be valid or
effective, and Seller will have no liability with respect thereto.

6.       Closing.
         -------

         6.1  The  purchase  and  sale  contemplated  herein  shall  close  (the
"Closing") at the local,  Atlanta,  Georgia  office of Alston & Bird LLP on June
23, 2000, or on such earlier date as may be selected by Purchaser and reasonably
acceptable to Seller (the "Closing  Date").  If the Closing does not occur on or
before the Closing  Date,  other than as a result of a default by either  party,
this  Agreement  shall  terminate  without  liability  on the part of  Seller or
Purchaser, other

                                       12
<PAGE>

than Purchaser's  indemnity contained in Paragraph 3.4 hereof. The Closing shall
occur by delivery of the documents set forth in Paragraph 6.4 and payment of the
Purchase Price to Seller. The sale may, at Purchaser's option, be closed through
escrow with the Title Insurer in accordance  with the general  provisions of the
usual form of escrow agreement used in similar  transactions by such holder with
special  provisions  inserted  (i) as may  be  required  to  conform  with  this
Agreement and (ii) to close on a so-called "New York Style" basis.

         6.2  Purchaser  reserves the right to take title to the Property in the
name  of a  nominee  or  assignee,  or in  the  name  of  one  or  more  of  the
institutional  investors  for which  Purchaser or one of its  affiliates is then
acting as investment  manager or advisor (a "Separate  Account") or a nominee or
assignee  of a Separate  Account.  In the event the rights  and  obligations  of
Purchaser  hereunder shall be assigned by Purchaser to a Separate  Account,  the
assignor  shall be released from any  obligation or liability  hereunder,  other
than its indemnity  contained in Paragraph 3.4, and such Separate  Account shall
be substituted as Purchaser  hereunder,  shall be entitled to the benefit of and
may enforce Seller's covenants,  representations and warranties  hereunder as if
such Separate Account were the original Purchaser hereunder (including the right
to terminate this Agreement pursuant to Paragraph 3.5, if then applicable),  and
shall assume all obligations and liabilities of Purchaser hereunder,  subject to
any limitations of such  liabilities  and  obligations  hereunder or provided by
law.   Upon   notification   to   Seller  of  any  such   assignment,   Seller's
representations and warranties  hereunder shall be deemed remade to the Separate
Account  as of the  date  of such  assignment.  The  foregoing  notwithstanding,
because of the necessity of obtaining the consent from the Existing Lender as to
the transaction  contemplated  herein,  and in respect thereof the submission to
the Existing Lender of the  information  and materials  required by the Existing
Lender as set forth in Schedule 6.2 hereof,  as applicable,  Purchaser's  rights
pursuant  to this  Paragraph  6.2 are  subject  to  Purchaser's  obligations  to
cooperate and assist,  reasonably and in good faith, in obtaining the consent of
the  Existing  Lender to the  transaction  contemplated  herein and  Purchaser's
timely  furnishing  the required  information  to the  Existing  Lender so as to
obtain such consent (all such  obligations of Purchaser  being  subject,  in any
event,  to  Purchaser's  right to cause the Existing  Loan to be paid in full at
Closing pursuant to Paragraph 6.13 hereof).

         6.3 Taxes,  rental and other income, and operating or other expenses of
the  Property  shall be prorated  as of 12:01 a.m.  on the day of Closing,  with
Purchaser receiving all income and responsible for all expenses commencing as of
such time provided that the amount specified in Paragraph 1.1 hereof is received
by Seller in the account designated by Seller in Atlanta,  Georgia no later than
1:00 p.m. EST on the Closing Date, failing which such items shall be apportioned
or  prorated  with the  Closing  Date  being  for the  account  of  Seller,  not
Purchaser.  At least five (5)  calendar  days prior to the  Closing  Date Seller
shall supply Purchaser with the necessary information to compute or estimate (as
provided in Paragraph  6.3.6 below) the  prorations,  including such  supporting
evidence as Purchaser reasonably requests.

                  6.3.1 All general real estate taxes ("Taxes") which constitute
a lien or charge on the  Property  for the tax period in which the Closing  Date
occurs but are not due and payable as of the  Closing  Date shall be prorated at
Closing. All Taxes for periods prior to the tax period in which the Closing Date
occurs shall be paid by Seller on or before Closing or if not yet due,

                                       13
<PAGE>

Purchaser  shall  receive  a  credit  therefor,   and  this  shall  include  any
reassessments for prior years (it being agreed that the obligations of Seller in
this sentence  shall survive  Closing  without  limitation)..  If Closing occurs
prior  to the  receipt  by  Seller  of the tax  bill  for the  Property  for the
applicable tax period,  credit for Taxes shall be based upon the estimated Taxes
calculated based upon the most recent  ascertainable  assessed valuation and tax
rates, but not less than the Taxes for the previous period with an adjustment to
be made  between  the parties as provided  in  Paragraph  6.3.6.  In the case of
Assessments  for which a lien has been  imposed on the Real  Property  as of the
Closing Date, Seller shall be responsible for all installments currently due and
one-half (1/2) of any  installments due subsequent to Closing (up to, but not to
exceed, $25,000.00).

                  6.3.2 Rental and other  income shall be prorated  based solely
upon collected amounts.  Any uncollected rent and other income shall be prorated
when received,  and the receiving party shall pay the amount due the other party
promptly  upon  receipt  less in the case of  delinquent  amounts  collected  by
Purchaser any  reasonable  costs of collection  (including,  but not limited to,
attorneys'  fees).  All  amounts  received  shall be first  applied  to  current
charges,  and the  balance  shall be  applied  to make up  delinquencies  in the
reverse order of maturity.  Seller shall give  Purchaser a credit for all tenant
deposits held pursuant to the Leases (including,  without  limitation,  security
deposits, pet fees, cleaning fees and all such other fees and deposits,  whether
or not refundable to the tenants) and all interest  payable to tenants which has
accrued up to Closing, if any.

                  6.3.3 As to delinquent  rent,  Purchaser will bill and attempt
to collect  such  amounts in the  ordinary  course of business  but shall not be
obligated to expend any money,  engage a collection  agency or take legal action
to collect any such amounts.  Seller shall have the right to seek  collection of
delinquent  amounts due Seller,  including the right to sue for amounts due, but
shall  not  have  the  right  to seek a  termination  of the  tenant's  right to
possession or to terminate the lease. In any event Seller agrees not to commence
any action against any delinquent tenant for ninety (90) days after Closing and,
then, only upon prior written notice to Purchaser.

                  6.3.4  Seller and  Purchaser  shall  endeavor to obtain  meter
readings and account  changeovers for the Property on the day before the Closing
Date,  and if such  readings and  changeovers  are  obtained,  there shall be no
proration of such items. In such event Seller shall pay the bills for the period
to and  including  the day before the Closing Date and  Purchaser  shall pay the
bills for day of Closing and  thereafter.  If meter readings  cannot be obtained
prior to the  Closing  Date,  utility  charges  shall  be  prorated  based  upon
historical  utility charges for such month adjusted for current rates and levels
of occupancy.

                  6.3.5  Fees  and  charges  for  Service   Contracts  shall  be
prorated, and any bonuses or other income paid to or derived by Seller from such
Service  Contracts   (including,   without   limitation,   any  laundry  service
agreements) shall also be prorated.

                  6.3.6 In the event that final calculations  cannot be made for
any expense item, including Taxes, prior to Closing Purchaser and Seller shall
estimate the proration at Closing

                                       14
<PAGE>

and shall  reprorate  such items as soon as adequate  information  is available.
Payments in  connection  with the final  adjustments  shall be made by Seller or
Purchaser, as the case may be, within ten (10) days after notice. If the parties
make any errors or omissions in the closing  prorations or if they  subsequently
determine any dollar amount prorated to be incorrect,  each agrees,  upon notice
from the other after the Closing,  to make any  adjustment  necessary to correct
the error,  including  payment of any amount to the other then  determined to be
owing. The terms and conditions of this Paragraph 6.3.6 shall expressly  survive
the Closing hereunder for ninety (90) days.

                  6.3.7 Accrued but unpaid interest on the Existing Indebtedness
shall be prorated at Closing  with Seller  being  responsible  for all  interest
through  the day  prior to  Closing  and  Purchaser  being  responsible  for all
interest accruing on and after the day of Closing (subject to Paragraphs 6.3 and
6.13 hereof).

                  6.3.8    Intentionally omitted.

                  6.3.9    Intentionally omitted.

                  6.3.10  Seller  shall  pay the  following  costs  incurred  in
connection with the sale of the Property:  (i) transfer taxes,  (ii) one-half of
the  escrow  fee  (provided   that  Seller's  share  thereof  shall  not  exceed
$3,000.00),  (iii)  the  fees  and  expenses  of its  own  attorneys,  (iv)  the
assumption  fee and any other  costs or  charges  attributable  to or payable in
connection with Purchaser's  assumption of the Existing  Indebtedness at Closing
(including, without limitation, Existing Lender's counsel's fees and the cost of
any title endorsement required by Existing Lender), and (v) all recording costs.
Purchaser  shall pay the following  costs incurred in connection  with the sale:
(i) all costs of performing its due diligence investigations, including, without
limitation,   costs  incurred  for  additional   environmental   or  engineering
investigations  other than in connection  with reports made available by Seller,
(ii) title examination costs and the cost to issue Purchaser's title commitment,
and the title premium for any owner title insurance  policy  Purchaser  obtains,
(iii) the cost of the Survey,  (iv)  one-half  the escrow fee,  (v) the fees and
expenses  of  Purchaser's  own  attorneys,   and  (vi)  any  prepayment  penalty
associated  with  Purchaser's  payoff of the Existing  Loan in  accordance  with
Paragraph 6.13 hereof,  if applicable.  The parties will execute and deliver any
required   transfer  or  other  similar  tax  declarations  to  the  appropriate
governmental entity at Closing.

                  6.3.11  All free  rent and  other  allowances  or  concessions
(collectively,   "Tenant  Allowances")   outstanding  as  of  the  Closing  Date
associated  with any of the Leases  executed as of the Effective  Date (it being
agreed that the fact that an apartment  is rented  below the street  rental rate
shall not be considered a Tenant Allowance for purposes of this Agreement) shall
be borne by Seller and paid or cashed  out in full at Closing  (in the form of a
credit to Purchaser or otherwise, as Purchaser may elect).

                  6.3.12 In addition, as part of Seller's obligation to maintain
the Property,  (i) all apartment  units which have been vacant for more than the
two (2) day period  immediately  preceding  the Closing Date shall have been, at
Seller's sole cost and expense,  made ready for immediate new tenant  occupancy,
including   completion  of  Seller's  standard   decorating   package

                                       15
<PAGE>

with the  replacement of carpeting and appliances  where in the normal course of
Seller's  operation of the Property  prior to the date hereof such carpeting and
appliances  would have  otherwise  been  replaced  prior to a new tenant  taking
occupancy,  and (ii) with respect to all  apartment  units which  become  vacant
during such two (2) day period, Seller shall have made any such replacements and
repaired any damage in excess of normal wear and tear, at Seller's sole cost and
expense, it being agreed that Purchaser shall bear the cost of painting,  carpet
shampooing and routine cleaning with respect to any such units.

         6.4      Closing Deliveries.

                  6.4.1  Possession  of the  Property,  subject to the rights of
tenants  under the Leases,  shall be delivered  to the  Purchaser on the date of
Closing and Seller shall thereupon deliver to Purchaser the originals of all the
Leases, Service Contracts and other documents delivered under Paragraph 3.2, all
correspondence   with  tenants  and  any  tenant  ledger  cards,   supplies  and
advertising materials,  booklets,  keys, and other items used in connection with
the management and operation of the Property.

                  6.4.2 At or before the Closing,  Seller  shall  deliver to the
Title Insurer (for delivery to Purchaser upon Closing) the following (other than
the materials described in Paragraph 6.4.2.14, which shall be delivered directly
to Purchaser by Seller substantially concurrent with the Closing):

                           6.4.2.1  Limited  Warranty Deed (the "Deed"),  in the
form of Schedule 6.4.2.1;

                           6.4.2.2 an affidavit  confirming that Seller is not a
foreign person within the meaning of Section 1445(e) of the Code, in the form of
Schedule 6.4.2.2;

                           6.4.2.3  an  ERISA  affidavit  in the  form  attached
hereto as Schedule 6.4.2.3;

                           6.4.2.4  a title  affidavit  in the form of  Schedule
6.4.2.4 [to include affidavit regarding brokers- Snyder to prepare exhibit];

                           6.4.2.5  an  assignment  of the Leases in the form of
Schedule 6.4.2.5 ("Lease Assignment");

                           6.4.2.6  an  assignment   of   Intangible   Property,
including  Service  Contracts,  in the form of  Schedule  6.4.2.6  ("Intangibles
Assignment");

                           6.4.2.7 letters, in form to be supplied by Purchaser,
to the tenants at the Property, instructing the tenants to pay rent to Purchaser
and to recognize Purchaser as landlord under the Leases;

                                       16
<PAGE>

                           6.4.2.8 letters, in form to be supplied by Purchaser,
to the  vendors  under  the  Service  Contracts,  instructing  such  vendors  to
recognize Purchaser as the owner under the Service Contracts;

                           6.4.2.9  a bill  of  sale  in the  form  of  Schedule
6.4.2.9 conveying the Personal Property of Seller listed on Exhibit B;

                           6.4.2.10  a current  Rent Roll,  certified  as of the
Closing Date, in the form previously  delivered to Purchaser and attached hereto
as Schedule 3.1;

                           6.4.2.11  a "bring  down  certificate"  stating  that
Seller's  representations  and warranties are true and correct as of the Closing
Date,  in the  form  of  Schedule  6.4.2.11,  or  stating  any  inaccuracies  as
contemplated in Paragraph 5.3 of this Agreement;

                           6.4.2.12 Intentionally omitted.

                           6.4.2.13 such resolutions,  authorizations, bylaws or
other corporate, limited liability company and/or partnership documents relating
to  Seller  as  shall  be  reasonably  required  by  the  Title  Insurer  and/or
Purchaser's counsel;

                           6.4.2.14  keys to all locks  located  in or about any
portion of the Property and all personal property  described in the Bill of Sale
to the extent in Seller's possession or reasonable control;

                           6.4.2.15  a waiver of any lien or lien right or claim
of lien  pursuant  to the  Georgia  Commercial  Real  Estate  Broker's  Lien Law
executed by The Westminster Group, Inc.;

                           6.4.2.16 Intentionally omitted;

                           6.4.2.17 An  Affidavit  of Seller's  Residence in the
form of Schedule 6.4.2.17;

                           6.4.2.18  the Lender  Estoppel in the event Seller is
able to obtain same after having used good faith reasonable efforts; and

                           6.4.2.19 all other documents, instruments or writings
which may be reasonably  required to consummate  the  transactions  contemplated
herein,  including any reasonable  closing documents  requested by Title Insurer
(provided  that in no event shall any such  document  increase the  liability of
Seller).

         6.5 At or before the Closing,  Purchaser shall deliver to Title Company
(for delivery to Seller upon Closing) the following:

                                       17
<PAGE>

                  6.5.1 good  federal  funds in an amount  equal to the Purchase
Price less the then outstanding principal balance of the Existing  Indebtedness,
and plus or minus  prorations as provided  herein,  and plus funds sufficient to
pay Purchaser's closing costs hereunder;

                  6.5.2 such  affidavits  as are  customarily  required by Title
Insurer in connection with issuance of the owner's title insurance policy;

                  6.5.3    counterpart of the Lease Assignment;

                  6.5.4    counterpart of the Intangibles Assignment;

                  6.5.5  such  resolutions,   authorizations,  bylaws  or  other
corporate,  limited liability company and/or partnership documents or agreements
relating to Purchaser as shall be reasonably  required by Title  Company  and/or
Seller's counsel;

                  6.5.6 all documents and  instruments  reasonably  necessary to
confirm the  assumption by Purchaser of all  obligations  arising from and after
the  Closing  Date under the  Existing  Loan  Documents  (the  "Loan  Assumption
Documentation"); and

                  6.5.7 all other  documents,  instruments or writings which may
be  reasonably  required to consummate  the  transactions  contemplated  herein,
including any reasonable closing documents  requested by Title Insurer (provided
that in no event shall any such document increase the liability of Purchaser).

         6.6 At the Closing,  Seller and  Purchaser  will execute and deliver to
the Title  Insurer  the  following  documents  in  proper  form:

                  6.6.1    Closing Statement; and

                  6.6.2    A Georgia state transfer tax declaration.

         6.7  Seller  and  Purchaser  hereby  designate  Title  Insurer  as  the
"Reporting  Person" for the transaction  pursuant to Section 6045(e) of the Code
and agree to execute such documentation as is reasonably necessary to effectuate
such designation.

         6.8      Intentionally omitted.

         6.9  Purchaser's  obligation to proceed to Closing shall be conditioned
upon Seller's performance of the following additional obligations, provided that
Purchaser may in its sole discretion elect to waive failure by Seller to perform
any particular obligation:

                  6.9.1  The  physical   condition  of  the  Property  shall  be
substantially  the  same  on the  Closing  Date as on the  date  of  Purchaser's
execution  of this  Agreement,  reasonable  wear and  tear and loss by  casualty
excepted (subject to the provisions of Paragraph 6.10.5).

                                       18
<PAGE>

                  6.9.2 All of Seller's representations and warranties contained
herein shall be true and correct in all material respects,  and Seller shall not
otherwise be in default of its obligations under this Agreement,  on the Closing
Date.

         6.10     Between the Effective Date and the Closing, Seller shall:

                  6.10.1  operate the  Property in the same manner as before the
making of this Agreement, the same as though Seller were retaining the Property,
including all commercially reasonable efforts to maintain the occupancy (defined
as physically  occupied units with  non-delinquent rent paying tenants) level of
the  Property at that which  exists on the date of this  Agreement  with all new
leases to be at the rent structure set forth in the Rent Roll attached hereto as
Schedule 3.1 (and with rents for  renewals to be in  accordance  with  Paragraph
6.11 hereof).  To the extent at Closing the Property's  occupancy  level is less
than  ninety-five  percent (95%) of the total units (i.e.,  less than 138 units,
which is 95% of the 145 units  available for occupancy)  (the "Target  Occupancy
Level"), Purchaser shall receive a credit at Closing for two (2) months rent for
each unit  necessary to bring the Occupancy  Level of the Property to the Target
Occupancy  Level (and the monthly rental rate used to calculate such rent credit
shall be the average of the rental rates applicable to the then unoccupied units
as set forth on Schedule 3.1).

                  6.10.2 keep and perform all of the obligations to be performed
by it as  landlord  under any  Lease or Laws,  and by it as  borrower  under the
Existing Loan Documents,

                  6.10.3 not permit or  consent to any new loans  affecting  the
Property,

                  6.10.4 not without  first  obtaining  the  written  consent of
Purchaser enter into any other service  contracts (unless such service contracts
may be terminated at or prior to Closing at no cost to Purchaser).

                  6.10.5   maintain  the  Property  and  Personal   Property  in
condition  at  least  as good as at the  time of  Purchaser's  inspection  under
Paragraph 3.4 above,

                  6.10.6 not deplete the supplies of the Property  other than in
the normal course,

                  6.10.7 not apply any security deposit, pet fee or cleaning fee
against  delinquent  rent  unless  the tenant is no longer in  occupancy  on the
Closing Date,

                  6.10.8   promptly  notify   Purchaser  of  any   condemnation,
environmental,  zoning or other land use regulation proceedings,  any notices of
violations  of any Laws and any  litigation  that arises out of the ownership of
the Property, in each case to the extent Seller obtains knowledge thereof,

                  6.10.9  maintain or cause to be  maintained,  at Seller's sole
cost and expense,  all polices of insurance  currently in effect with respect to
the Property (or comparable replacements thereof),

                                       19
<PAGE>

                  6.10.10 Intentionally omitted,

                  6.10.11  deliver to  Purchaser  copies of any bills  Taxes and
personal  property  taxes and copies of any  notices  pertaining  to real estate
taxes,  Assessments or other matters of material importance to the Property that
are received by Seller after the Effective Date, even if received after Closing,
and

                  6.10.12 not create any new  encumbrance  or lien affecting the
Property.

         6.11 Seller shall not,  after the  Effective  Date,  enter into any new
Leases or any  amendment of existing  Leases,  or waive any  material  rights of
landlord  under any Lease,  without  in each case  obtaining  Purchaser's  prior
written  consent  thereto;  provided,  however,  that  without  first  obtaining
Purchaser's written consent, Seller may (i) enter into tenant leases on Seller's
standard lease form without any material  adverse changes thereto  provided that
the lease term is for no less than six (6) months and no more than fourteen (14)
months,  and provided  further that the lease provides for a rental rate no less
than the then applicable  rental rate being charged as set forth in Schedule 3.1
[and  Tenant  Allowances  no  greater  than  those  being  given for  comparable
apartment units at the Property,  Seller hereby agreeing that Seller shall bear,
and  shall  pay or cash  out in full at  Closing  (in the  form of a  credit  to
Purchaser or otherwise,  as Purchaser may elect),  any such Tenant  Allowances],
and (ii) renew  existing  tenant leases  provided the renewal rental rate is not
less than the rental rate in effect  immediately prior to the renewal,  provided
that  Seller  shall use  diligent,  good  faith  efforts to obtain at least a 2%
increase in such rental rate with respect to the applicable  renewal (and Seller
shall use good faith efforts to promptly provide to Purchaser a copy of any such
lease,  contract or other  agreement  entered into by Seller after the Effective
Date). Notwithstanding anything to the contrary provided in this Paragraph 6.11,
if Purchaser  fails to  disapprove in writing any such new Lease or other action
requiring Purchaser's consent under this Paragraph 6.11 within five (5) business
days after Purchaser's receipt of such request and information,  Purchaser shall
be  deemed  to have  approved  such  new  Lease or other  action.  If  Purchaser
disapproves of such new Lease or other action,  Purchaser  shall provide Seller,
along with such  written  notice of  disapproval,  the reasons  for  Purchaser's
disapproval.  The Tenant Allowances relating to any new Lease or amendment shall
be paid as determined  by Seller and  Purchaser as part of the approval  process
with respect to any such new Lease or amendment  for which  Purchaser's  consent
was required pursuant hereto.

         6.12 Seller and Purchaser  each warrant and represent to the other that
it  has  not  had  any  contact  or  dealings  regarding  the  Property,  or any
communication in connection with the subject matter of this transaction, through
any real estate  broker or other person who can claim a right to a commission or
finder's fee in  connection  with the sale  contemplated  herein  except for The
Westminster  Group, Inc., whose commission and fees in the amount of $140,000.00
shall be paid by Seller.  In the event that any other  broker or finder  makes a
claim for a  commission  or  finder's  fee based upon any  contact,  dealings or
communication,  the party  whose  conduct  is the basis for the broker or finder
making its claim  shall  indemnify,  defend and hold  harmless  the other  party
against and from any  commission,  fee,  liability,  damage,  cost and  expense,
including without limitation,  attorneys' fees, arising out of or resulting from
any such claim. The

                                       20
<PAGE>

provisions of this  Paragraph  6.12 shall  survive the Closing,  or in the event
that the Closing does not occur, the termination of this Agreement.

         6.13 Seller and Purchaser shall use its diligent, good faith efforts to
obtain the  written  agreement  and consent of  Existing  Lender to  Purchaser's
acquisition  of the Property  subject to the Existing  Loan  Documents,  and the
approval  of Existing  Lender to all Loan  Assumption  Documentation,  all on or
before  the fifth  (5th) day after the  expiration  of the  Review  Period  (the
"Consent Period").  Purchaser agrees to promptly provide to Existing Lender such
financial  and  other  information  as is  contemplated  by  the  Existing  Loan
Documents or as Existing Lender may reasonably  require in order to determine if
Purchaser  satisfies the conditions set forth in the Existing Loan Documents for
a sale of the Property  subject to the Existing  Loan,  Purchaser  acknowledging
that the Existing Lender's general loan assumption requirements are set forth on
Schedule  6.2.  Purchaser's  and Seller's  obligation  to close the  transaction
contemplated hereby shall be expressly conditioned upon (i) Seller acquiring the
consents and approvals  contemplated  by this Paragraph 6.13 in form and content
reasonably  acceptable  to  Purchaser  prior to the  expiration  of the  Consent
Period,  and (ii)  Purchaser  and Existing  Lender  mutually  approving the Loan
Assumption  Documentation  prior to the  expiration of the Consent  Period,  and
(iii) the Loan  Assumption  Documentation  providing  a release to Seller of all
liability  prior  to the  Closing  Date  except  with  regard  to any  Hazardous
Materials located on the Property prior to the Closing Date. If Seller shall not
obtain such consents or Purchaser and Existing  Lender shall fail to approve the
Loan Assumption  Documentation during the Consent Period, then after the Consent
Period and up through the  occurrence of such events,  Purchaser or Seller shall
have the right to terminate  this  Agreement by providing  written notice to the
other party;  provided,  however,  that Purchaser may at any time elect,  at its
option,  to pay the entire Purchase Price (plus or minus  prorations) in cash at
Closing,  and to  direct  Seller  and/or  the  Title  Insurer  to pay  the  then
outstanding  balance of the Existing  Loan in full at Closing using the proceeds
delivered by Purchaser at Closing,  and upon any such  election by Purchaser the
contingencies and corresponding  termination rights respecting the Existing Loan
contained in this  Paragraph  6.13 and in any other  paragraph of this Agreement
shall be rendered  null and void and of no further  force or effect [even if any
such termination  right has been previously  exercised by Seller,  provided such
election  by  Purchaser  to  pay  the  entire  Purchase  Price  (plus  or  minus
prorations)  in cash at  Closing  is made in  writing  to Seller  within two (2)
business  days after any such  termination  by Seller].  In the event  Purchaser
shall elect to cause the payoff of the Existing  Loan as permitted  herein,  (i)
Purchaser shall and does hereby agree to pay, at its sole cost and expense,  any
prepayment penalty under the Existing Loan Documents associated  therewith,  and
(ii) the provisions of Paragraph 1.3 hereof shall not apply.

         6.14     Intentionally omitted.

7.       Default.
         -------

         7.1 If any action is brought by either  party  against the other party,
the  prevailing  party shall be entitled to recover  court costs and  reasonable
attorneys' fees and costs actually incurred.

                                       21
<PAGE>

         7.2 The  obligations  of  Purchaser  and  Seller  contained  herein are
intended to be binding only on the property of the  Purchaser or Seller  (and/or
Seller's corporate general partner), as applicable,  and shall not be personally
binding  upon,  nor shall any resort be had to the private  properties of any of
the members, managers, partners, employees or officers of any thereof.

         7.3 IF THE SALE  CONTEMPLATED  HEREIN IS NOT  CONSUMMATED  BECAUSE OF A
DEFAULT UNDER THIS AGREEMENT SOLELY ON THE PART OF SELLER, PURCHASER MAY, AS ITS
SOLE AND EXCLUSIVE REMEDIES  (SUBJECT,  HOWEVER,  TO PARAGRAPH 5.3 HEREOF),  (I)
TERMINATE  THIS  AGREEMENT,   OR  (II)  ENFORCE  SPECIFIC  PERFORMANCE  OF  THIS
AGREEMENT; PROVIDED, HOWEVER, IN THE EVENT THE REMEDY OF SPECIFIC PERFORMANCE IS
NOT  AVAILABLE  TO  PURCHASER  BECAUSE  SELLER HAS  CONVEYED OR  ENCUMBERED  THE
PROPERTY,  PURCHASER SHALL BE ENTITLED TO SUE SELLER FOR THE DAMAGES  OCCASIONED
TO PURCHASER BECAUSE OF SELLER'S DEFAULT BY SELLING OR ENCUMBERING THE PROPERTY.
IF SAID SALE IS NOT CONSUMMATED BECAUSE OF A DEFAULT UNDER THIS AGREEMENT SOLELY
ON THE PART OF PURCHASER, PURCHASER SHALL PAY TO SELLER $25,000.00 (THE "DEFAULT
PAYMENT"),  WITHIN TEN (10) DAYS  AFTER  WRITTEN  NOTICE  FROM  SELLER,  AS FULL
LIQUIDATED DAMAGES. THE PARTIES HAVE AGREED THAT SELLER'S ACTUAL DAMAGES, IN THE
EVENT  OF  SUCH  A  DEFAULT  BY  PURCHASER,  WOULD  BE  EXTREMELY  DIFFICULT  OR
IMPRACTICABLE TO DETERMINE.  THEREFORE, THE PARTIES ACKNOWLEDGE THAT THE DEFAULT
PAYMENT HAS BEEN AGREED UPON,  AFTER  NEGOTIATION,  AS THE  PARTIES'  REASONABLE
ESTIMATE OF SELLER'S DAMAGES AND AS SELLER'S EXCLUSIVE REMEDY AGAINST PURCHASER,
AT LAW OR IN EQUITY,  IN THE EVENT OF SUCH A DEFAULT UNDER THIS AGREEMENT SOLELY
ON THE PART OF PURCHASER.

         7.4      Intentionally omitted.

         7.5      Intentionally omitted.

8.       Miscellaneous.

         8.1  This  Agreement  supersedes  any and all  agreements  between  the
parties hereto  regarding the Property which are prior in time to this Agreement
and can be amended only in writing.

         8.2 If the  Improvements  are  destroyed or materially  damaged,  or if
condemnation  proceedings  are  commenced  against  the  Property,  between  the
Effective  Date and the Closing,  Purchaser may terminate  this  Agreement  upon
notice to Seller on or before fifteen (15) days after Seller notifies  Purchaser
of such damage or  condemnation.  If Purchaser  elects to accept the Property in
its then condition,  all proceeds of insurance or condemnation awards payable to
Seller by reason of such  damage or  condemnation  shall be paid or  assigned to
Purchaser other than the rent loss insurance  proceeds  applicable to the period
prior to the Closing Date which shall be paid to and retained by Seller;  Seller
shall also pay to Purchaser  the amount of any

                                       22
<PAGE>

deductible and/or co-insurance under any such policy and the estimated amount of
loss of rent from  existing  tenants  expected to be suffered by  Purchaser as a
result  of such  damage  and for  which  Purchaser  will not be  compensated  by
rent-loss  insurance  proceeds.  In the  event  of  non-material  damage  to the
Property, which damage Seller is unwilling to repair prior to Closing, Purchaser
shall  accept  the  Property  in its then  condition  and in doing so,  shall be
entitled to a reduction in the  Purchase  Price to the extent of (i) the cost of
repairing such damage, as determined by engineers  employed by Purchaser as part
of its due diligence as provided in Paragraph 3.4, and the (ii) estimated amount
of loss of rent from existing  tenants expected to be suffered by Purchaser as a
result  of such  damage  and for  which  Purchaser  will not be  compensated  by
rent-loss insurance  proceeds.  Material damage is defined to mean damage to the
Property which will cost in excess of $150,000.00 to repair.

         8.3 It is understood  that  Purchaser is acting as a principal and that
Purchaser is not  participating  in any sales commission in connection with this
transaction and has no fiduciary obligation to Seller.

         8.4      Time is of the essence of this Agreement.

         8.5 Any tender, notice, consent or approval required or permitted to be
given under this Agreement  shall be in writing and shall be deemed to have been
given  upon (i) hand  delivery,  or (ii) upon  delivery  to a  private  contract
carrier that  assures  same or next day delivery and provides a receipt,  and in
any case addressed as follows:

         If to Seller:              Roberts Properties Residential, L.P.
                                    8010 Roswell Road
                                    Suite 120
                                    Atlanta, Georgia 30350
                                    Attn: Mr. Charles R. Elliott
                                    Tel. No. (770) 394-6000
                                    Fax No. (770) 396-0706

         With a copy to:            Holt Ney Zatcoff & Wasserman, LLP
                                    100 Galleria Parkway
                                    Suite 600
                                    Atlanta, Georgia  30339
                                    Attn: Sanford H. Zatcoff, Esq.
                                    Tel. No. (770) 956-9600
                                    Fax No. (770) 988-8580

         If to Purchaser:           Ivey Brook Apartments, Inc.
                                    c/o PMRealty Advisors
                                    800 Newport Center Drive, Suite 300
                                    Newport Beach, CA  92660
                                    Attn:  Mr. Gary Goodman

                                       23
<PAGE>

                                    Mr. Carey Levy
                                    Mr. Jeff Cavanaugh

                                    Tel No. (949) 219-5000
                                    Fax No. (949) 219-5089

         With Copy to:              Alston & Bird LLP
                                    One Atlantic Center
                                    1201 West Peachtree Street
                                    Atlanta, Georgia  30309-3424
                                    Attn:  Joseph P. L. Snyder, Esq.
                                    Tel No. (404) 881-7678
                                    Fax No. (404) 881-7777

or such other addresses as either party may from time to time specify in writing
to the  other.  Seller  and  Purchaser  agree that  notices  hereunder  shall be
effective if executed and sent by the  respective  counsel of each in the manner
set forth above.

         8.6 This  Agreement  shall be binding  upon and inure to the benefit of
the successors and assigns of the parties hereto, provided Seller may not assign
its  rights or  obligations  hereunder  without  the prior  written  consent  of
Purchaser,  and  Purchaser may not assign its rights or  obligations  hereunder,
except as provided  in  Paragraph  6.2,  without  the prior  written  consent of
Seller,  which  consent  shall not, in either case,  be  unreasonably  withheld,
delayed or conditioned.

         8.7 The  performance  and  interpretation  of this  Agreement  shall be
controlled by the law of the state in which the Property is located.

         8.8 During the terms of this  Agreement,  Seller  shall not continue to
list the  Property  with any broker or  otherwise  solicit or make or accept any
offers to sell the Property,  engage in any discussions or negotiations with any
third party with  respect to the sale or other  disposition  or financing of the
Property,  or enter into any  contracts or agreements  (whether  binding or not)
regarding any disposition or financing of the Property and shall so instruct its
Agents, including the broker named in Paragraph 6.12.

         8.9 Each party agrees to maintain in confidence, and not to disclose to
any third party,  the  information  contained in this Agreement or pertaining to
the sale  contemplated  hereby and the  information  and data  furnished or made
available by Seller to Purchaser,  its Agents and  representatives in connection
with Purchaser's investigation of the Property and the transactions contemplated
by  the  Agreement;   provided,   however,  that  each  party,  its  Agents  and
representatives  may  disclose  such  information  and data (i) to such  party's
accountants,   attorneys,   prospective  lenders,  clients,  members,  partners,
consultants and other advisors in connection with the transactions  contemplated
by this  Agreement  (collectively  "Representatives")  to the  extent  that such
Representatives  reasonably need to know (in the respective  party's  reasonable
discretion) such  information and data in order to assist,  and perform services
on behalf of, such

                                       24
<PAGE>

party,  (ii)  to the  extent  required  by any  Law or  court  order,  (iii)  in
connection  with any  securities  filings,  registration  statements  or similar
filings undertaken by or required of Purchaser or Seller; and (iv) in connection
with any  litigation  that may arise between the parties in connection  with the
transactions contemplated by this Agreement,  except that after the consummation
of the  transaction  contemplated  herein,  Seller  shall be entitled to issue a
press  release  that  Seller has sold the  Property  provided  that  Purchaser's
identity is not  disclosed.  Both parties shall consult with each other prior to
making  any  press  release  intended  for  general  circulation  regarding  the
transactions  contemplated hereunder.  The provision of this Paragraph 8.9 shall
survive  the  Closing,  or in the event that the  Closing  does not  occur,  the
termination of this Agreement.

         8.10     Intentionally omitted.

         8.11     Intentionally omitted.

9.       As-Is Sale

         9.1 Purchaser acknowledges that except for Seller's representations and
warranties contained herein and except for the written disclosures  delivered to
Purchaser by Seller as set forth herein,  neither  Seller,  nor anyone acting or
claiming  to act for or on  behalf  of  Seller,  has made  any  representations,
warranties,  promises  or  statements  to  Purchaser  concerning  the  Property.
Purchaser further  acknowledges and agrees that all material matters relating to
the  Property  will  be   independently   verified  by  Purchaser  to  its  full
satisfaction  within the time provided under this Agreement,  that, except as to
Seller's  representations  and  warranties  contained in this Agreement and such
written disclosures,  Purchaser will be acquiring the Property based solely upon
and in reliance on its own inspections,  analyses and  conclusions,  and that if
Purchaser acquires the Property,  it will acquire the Property in the Property's
"AS-IS"  condition  and  "AS-IS"  state of repair  inclusive  of all  faults and
defects,  whether latent or patent, or known or unknown,  subject,  however,  to
Seller's  representations  and  warranties  contained in this Agreement and such
written disclosures.  Without limiting the scope or generality of the foregoing,
and  subject  to  Seller's  representations  and  warranties  contained  in this
Agreement and such written  disclosures,  Purchaser  expressly  assumes the risk
that the Property may not now or in the future comply with any  applicable  laws
now or hereafter in effect.

         9.2  Purchaser  further   acknowledges  and  agrees  that  any  written
disclosures given by Seller, except for Seller's  representations and warranties
set  forth  herein  and  except  as  otherwise  provided  herein,  are given for
disclosure  purposes  only and that they do not  constitute  representations  or
warranties  that the adverse  conditions  so disclosed to Purchaser are the only
adverse  conditions  that may exist at or  otherwise  affect the  Property  and,
without limiting the scope or generality of this Article 9, Purchaser  expressly
assumes  the risk that  adverse  physical,  environmental,  financial  and legal
conditions may not be revealed by  Purchaser's  inspection and evaluation of the
Property or any other material matters.

         9.3 Except as specifically provided herein,  Purchaser hereby fully and
forever waives,  and Seller hereby fully and forever  disclaims,  all warranties
and  representations  not expressly  set forth herein,  of whatever type or kind
with respect to the Property,  whether

                                       25
<PAGE>

express,  implied or otherwise including,  without limitation,  those of fitness
for a particular purpose, tenantability, habitability or use.

         9.4 Purchaser  further  acknowledges  that any  information  including,
without limitation, any engineering reports,  architectural reports, feasibility
reports,  marketing reports, soils reports,  environmental reports,  analyses or
data, or other similar third party  reports,  analyses,  data or  information of
whatever type or kind which Purchaser has received or may hereafter receive from
Seller, its agents, its consultants,  or anyone acting or claiming to act on its
behalf are furnished  without warranty of any kind and with no representation by
Seller as to their  completeness  or accuracy  (except  that Seller is providing
true,  correct  and  complete  copies  of such  third  party  reports  and other
information,  and except that Seller is providing such  information to Purchaser
in good faith and with no basis in Seller's  actual  knowledge  to believe  that
such  information  is inaccurate  or  misleading as provided  herein) and on the
express condition that Purchaser shall make its own independent  verification of
the accuracy,  reliability and sufficiency of such information. This Section 9.4
has application to third party  deliveries,  and does not apply to deliveries of
Seller's  documents  and  instruments,  such as, but not limited to, rent rolls,
leases,  service contracts and operating statements,  and has no application to,
and shall not limit the  effect of or  Purchaser's  recourse  with  respect  to,
Seller's  representations  and  warranties  contained  in this  Agreement or the
provisions of any documents delivered by Seller at Closing.

         9.5 Purchaser hereby fully and forever releases, acquits and discharges
Seller of and from, and hereby fully and forever waives:

                  9.5.1 Any and all claims,  actions,  causes of action,  suits,
proceedings,  demands,  rights,  damages,  costs, expenses or other compensation
whatsoever,  whether  known or  unknown,  direct  or  indirect,  foreseeable  or
unforeseeable,  absolute or  contingent,  that  Purchaser now has or may have or
which may arise in the future arising out of, directly or indirectly,  or in any
way  connected  with:  (a)  any  condition  of  environmental  contamination  or
pollution at the Property,  however and whenever occurring  (including,  without
limitation,  the  contamination or pollution of any surface or subsurface soils,
subsurface  media,  surfacewaters  or groundwaters  at the Property;  (b) to the
extent  not  already  included  in (a),  above,  the  prior,  present  or future
existence,  release  or  discharge,  or  threatened  release,  of any  Hazardous
Materials at the Property,  however and whenever occurring  (including,  without
limitation,  the release or discharge,  or threatened  release, of any Hazardous
Materials  into  the  air  at  the  Property,  or  into  any  soils,   subsoils,
surfacewaters  or  groundwaters  at the  Property);  (c)  the  violation  of any
applicable Law now or hereafter in effect, however and whenever occurring,  with
respect to the  Property;  (d) geologic and seismic  conditions at the Property,
and soil and subsoil  conditions  at the  Property;  or (e) the condition of the
Property  (including,  without  limitation,  any structural,  foundation,  roof,
plumbing, heating, air-conditioning, electrical, mechanical and other defects as
may exist  therein and any  non-compliance  thereof with building  codes,  other
applicable laws, and private restrictions).

                                       26
<PAGE>

                  9.5.2 Any and all damages; losses; costs; judgments; fines and
penalties;  fees;  expenses;  or other  compensation  whatsoever arising out of,
directly  or  indirectly,  or in any  way  connected  with,  any of the  matters
described in clauses (a) through (e) of Paragraph 9.5.1.

         This  Paragraph  9.5  has no  application  to  deliveries  of  Seller's
documents  and  instruments,  such as, but not limited  to, rent rolls,  leases,
service contracts and operating statements, and has no application to, and shall
not limit the  effect of or  Purchaser's  recourse  with  respect  to,  Seller's
representations and warranties  contained in this Agreement or the provisions of
any documents delivered by Seller at Closing.

         9.6 Without  limiting the scope or generality of the foregoing  release
and waiver provisions, those provisions shall specifically include and cover any
claim for or right to indemnification,  contribution or other compensation based
on or arising under the Comprehensive  Environmental Response,  Compensation and
Liability Act, as amended ("CERCLA"),  42 U.S.C.  ss.9601, et seq., the Resource
Conservation and Recovery Act, as amended ("RCRA"),  42 U.S.C. ss.6901, et seq.,
or any  similar  or  other  applicable  Law now or  hereafter  in  effect.  This
Paragraph  9.6 has no  application  to  deliveries  of  Seller's  documents  and
instruments,  such as, but not limited to, rent rolls, leases, service contracts
and operating  statements,  and has no  application  to, and shall not limit the
effect of or Purchaser's recourse with respect to, Seller's  representations and
warranties  contained  in this  Agreement  or the  provisions  of any  documents
delivered by Seller at Closing.

         9.7 The  provisions  of this  Paragraph 9 shall  survive  the  Closing.
Purchaser hereby acknowledges and agrees that the provisions of this Paragraph 9
are material and included as a material  portion of the  consideration  given to
Seller by Purchaser in exchange for Seller's  performance  under this  Agreement
and  that  Seller  has  given  Purchaser  material  concessions  regarding  this
transaction  in  exchange  for  Purchaser  agreeing  to the  provisions  of this
Paragraph 9.

                                       27
<PAGE>

         IN WITNESS  WHEREOF,  the parties  hereto have executed this  Agreement
under seal as of the dates set forth below.

Dated: June 19, 2000                        Dated: June 19, 2000
       ------------------------------              ----------------------------

SELLER:                                     PURCHASER:

ROBERTS PROPERTIES RESIDENTIAL,             IVEY BROOK APARTMENTS, INC., a
L.P., a Georgia limited partnership         Delaware corporation

By: Roberts Realty Investors, Inc., a       By: /s/ Jeffrey S. Cavanaugh
    Georgia corporation, its sole general       --------------------------------
      partner                               Name:   Jeffrey S. Cavanaugh
                                                 -------------------------------
                                            Title: Vice President

                                                [CORPORATE SEAL]
   By: /s/ Charles R. Elliott
       --------------------------------
        Name: Charles R. Elliott            By: /s/ Lawrence K. Sullivan
              -------------------------         --------------------------------
        Title: Chief Financial Officer              Lawrence K. Sullivan
              -------------------------     Its: Assistant Secretary

    [CORPORATE  SEAL]

                                       28EXHIBIT 10.14.09

                                 PROMISSORY NOTE

$22,500,000.00                                                  Atlanta, Georgia

                                                                  May 3, 2000

         FOR VALUE RECEIVED,  ROBERTS  PROPERTIES  RESIDENTIAL,  L.P., a Georgia
limited  partnership  (the  "Borrower"),  hereby promises to pay to the order of
FIRST UNION  NATIONAL  BANK (the "Bank"),  at its offices at 999 Peachtree  St.,
N.E., Ninth Floor,  Atlanta,  GA 30309, Attn: Real Estate Portfolio  Management,
Mail Code 9068, or such other place as Bank shall designate in writing from time
to time,  the  principal  sum of  Twenty-Two  Million Five Hundred  Thousand and
no/100  Dollars  ($22,500,000.00)  (the "Loan"),  or so much thereof as shall be
advanced  pursuant  to the  Construction  Loan  Agreement  of even date  between
Borrower and Bank (the "Loan  Agreement"),  in United States  Dollars,  together
with interest thereon as hereinafter provided.

1.      INTEREST RATE.  Interest shall be charged on the outstanding  principal
balance from the date hereof until the full amount of  principal  due  hereunder
has been paid at a rate equal to 1-month  LIBOR plus one and  one-half  per cent
(1.5%)  per annum  ("LIBOR-Based  Rate"),  as  determined  by Bank  prior to the
commencement of each Interest Period.  Interest shall be calculated daily on the
basis of the actual number of days elapsed over a 360 day year. The  LIBOR-Based
Rate  shall  remain  in  effect,  subject  to the  provisions  hereof,  from and
including the first day of the Interest  Period to and excluding the last day of
the Interest Period for which it is determined.

         "LIBOR" means a rate per annum for U.S.  dollar  deposits for a 1-month
maturity as reported on Telerate page 3750 as of 11:00 a.m., London time, on the
second London business day before the relevant Interest Period begins (or if not
so reported,  then as determined by the Bank from another  recognized  source or
interbank quotation).

         "Interest  Period"  means,  initially,  the period  commencing  on (and
including) the date hereof and ending on (but  excluding) the first Payment Date
(as  hereinafter  defined),  and  thereafter,  each  period  commencing  on (and
including) the last day of the immediately  preceding Interest Period and ending
on (but excluding) the next Payment Date, provided, (i) any Interest Period that
would  otherwise end on (but exclude) a day which is not a New York business day
shall be extended to the next  succeeding  New York  business  day,  unless such
extension  would carry such Interest  Period into the next month, in which event
such Interest  Period shall end on (but exclude) the preceding New York business
day;  (ii) any  Interest  Period  that ends in a month for which there is no day
which numerically corresponds to the Payment Date shall end on (but exclude) the
last New York  business day of such month,  and (iii) any  Interest  Period that
would  otherwise  extend past the Maturity  Date shall end on (but  exclude) the
Maturity Date.

         "Conversion Date" means May 1, 2002.

2.       PAYMENT OF PRINCIPAL AND INTEREST.

         2.1.  Construction  Loan.  Interest only on the  outstanding  principal
balance  at the  LIBOR-Based  Rate shall be due and  payable  monthly in arrears
commencing on the first (1st) day of May, 2000 and continuing on the first (1st)
day of each month (each, a "Payment Date") thereafter  through and including the
Conversion Date.

         2.2. Permanent Loan. After the Conversion Date,  principal and interest
shall be due and payable on the dates (each, a "Payment  Date") set forth in the
Repayment  Schedule  attached  hereto  and made a part  hereof  (the  "Repayment
Schedule") in consecutive monthly  installments in an amount equal to the sum of
(i) all then accrued and unpaid  interest at the  LIBOR-Based  Rate, plus (ii) a
principal payment in the amount set forth in the Repayment Schedule.

         2.3. Maturity Date. The entire unpaid principal amount hereof, together
with accrued and unpaid interest thereon and all other amounts payable hereunder
shall be due and payable on May 1, 2005 (the "Maturity Date" ).

                                       1
<PAGE>

3.      APPLICATION OF PAYMENTS.  Except as otherwise  specified  herein,  each
payment or prepayment, if any, made under this Note shall be applied to pay late
charges, accrued and unpaid interest, principal, escrows (if any), and any other
fees,  costs and expenses which Borrower is obligated to pay under this Note, in
such order as Bank may elect from time to time in its sole discretion.

4.      TENDER OF PAYMENT.  All  payments on this Note are payable on or before
2:00 p.m. on the due date  thereof,  at the office of Bank  specified  above and
shall be credited on the date the funds  become  available  lawful  money of the
United States.  All sums payable to Bank which are due on a day on which Bank is
not open for business shall be paid on the next succeeding business day and such
extended time shall be included in the computation of interest.

5.      LATE CHARGE. In the event that any installment of principal or interest
required to be made by Borrower under this Note shall not be received by Bank on
or before its due date,  Borrower shall pay to Bank, on demand, a late charge of
five percent (5%) of such delinquent payment. The foregoing right is in addition
to,  and not in  limitation  of,  any  other  rights  which  Bank may have  upon
Borrower's failure to make timely payment of any amount due hereunder.

6.       PREPAYMENT.  The Loan may be prepaid,  in whole or in part, at any time
and from time to time;  provided,  however,  that Borrower shall  indemnify Bank
against  Bank's loss or expense in employing  deposits as a  consequence  (a) of
Borrower's  failure  to make any  payment  when due under  the Note,  or (b) any
prepayment of the Loan on a date other than the last day of the Interest  Period
("Indemnified Loss or Expense").  The amount of such Indemnified Loss or Expense
shall be determined by Bank based upon the  assumption  that Bank funded 100% of
the Loan in the London  interbank  market.  Any prepayment shall include accrued
and unpaid  interest to the date of prepayment on the principal  amount  prepaid
and all other sums due and payable hereunder.  The monthly principal installment
shall not be reamortized following a partial prepayment. Nothing herein shall be
deemed to alter or affect any  obligations  that Borrower may have to Bank under
any interest rate swap agreements.

7.       SECURITY FOR THE NOTE.

         7.1.  This  Note  is  executed  and  delivered  in  accordance  with  a
commercial  transaction  described  herein.  As security  for the payment of the
monies  owing  under  this  Note,  Borrower  has  delivered  or has caused to be
delivered to Bank the following  (each a "Loan Document" and  collectively  with
this Note, and any other guaranty, document,  certificate or instrument executed
by Borrower or any other obligated  party in connection with the Loan,  together
with all amendments,  modifications,  renewals or extensions thereof,  the "Loan
Documents"):  a Deed to Secure Debt, Security Agreement and Assignment of Leases
and Rents  (the  "Mortgage")  on  certain  real  property  and the  improvements
situated  thereon  in Fulton  County,  Georgia as more  fully  described  in the
Mortgage (the "Property").

         7.2.  Borrower hereby grants to Bank a continuing  security interest in
all  property of  Borrower,  now or  hereafter  in the  possession  of Bank,  as
security for the payment of this Note and any other  liabilities  of Borrower to
Bank,  which  security  interest  shall be  enforceable  and  subject to all the
provisions  of  this  Note,  as  if  such  property  were  specifically  pledged
hereunder.

8.       DEFAULT  RATE.  From and after the Maturity  Date or from and after the
occurrence of an Event of Default hereunder,  irrespective of any declaration of
maturity, all amounts remaining unpaid or thereafter accruing hereunder,  shall,
at Bank's option, bear interest at a default rate of four percent (4%) per annum
above the interest rate then in effect as set forth herein (the "Default Rate"),
or the highest  permissible rate under applicable usury law,  whichever is less.
Such  default rate of interest  shall be payable  upon  demand,  but in no event
later than when scheduled  interest  payments are due, and shall also be charged
on the amounts  owed by Borrower to Bank  pursuant to any  judgments  entered in
favor of Bank with respect to this Note.

9.       COVENANTS

         9.1. Required Hedge.  Borrower shall hedge the Loan's floating interest
expense  for the full  term of the Loan by  maintaining  an  interest  rate swap
agreement  with  Bank or other  counterparty  acceptable  to Bank in a  notional
amount equal to the then principal balance of the Loan and providing for a fixed
rate  satisfactory  to Bank, and  containing  such other terms and conditions as
shall be reasonably acceptable to Bank.

                                       2
<PAGE>

10.      EVENTS OF DEFAULT.  Each of the following shall  constitute an event of
default hereunder (an "Event of Default"): (a) if Borrower shall fail, refuse or
neglect  to pay,  in  full,  any  installment  or  portion  of the  indebtedness
evidenced  hereby  within ten (10) days after  mailing of notice to  Borrower by
Lender of such  failure  to pay after the same  shall  become  due and  payable,
whether  at the due date  thereof  stipulated  herein,  or at a date  fixed  for
prepayment,  or by acceleration or otherwise;  provided,  however,  that if such
installment  or portion of the  indebtedness  evidenced  hereby  becomes due and
payable as a result of Bank's  accelerating  the maturity of this Note,  the ten
(10) day notice period for payment set forth in this  Paragraph  10(a) shall not
apply to the  accelerated  Maturity  Date;  (b) the  occurrence  of any Event of
Default under the Loan Agreement, the Mortgage or any other Loan Document.

11.      REMEDIES.  If an Event of Default exists,  Bank may exercise any right,
power  or  remedy  permitted  by law  or as  set  forth  herein  or in the  Loan
Agreement,   the  Mortgage  or  any  other  Loan  Document  including,   without
limitation,  the right to declare the entire unpaid  principal amount hereof and
all interest  accrued hereon,  and all other sums secured by the Mortgage or any
other Loan Document,  to be, and such  principal,  interest and other sums shall
thereupon become, immediately due and payable.

12.      MISCELLANEOUS.

         12.1. Disclosure of Financial Information. Bank is hereby authorized to
disclose any financial or other  information  about  Borrower to any  regulatory
body or  agency  having  jurisdiction  over Bank and to any  present,  future or
prospective  participant or successor in interest in any loan or other financial
accommodation  made by Bank to Borrower.  The information  provided may include,
without  limitation,  amounts,  terms,  balances,  payment history,  return item
history and any financial or other information about Borrower.

         12.2.  Integration.  This Note and the other Loan Documents  constitute
the sole agreement of the parties with respect to the  transaction  contemplated
hereby and  supersede  all oral  negotiations  and prior  writings  with respect
thereto.

         12.3.  Attorneys'  Fees and  Expenses.  If Bank retains the services of
counsel by reason of a claim of a default or an Event of  Default  hereunder  or
under any of the other Loan  Documents,  or on  account of any matter  involving
this Note, or for  examination of matters  subject to Bank's  approval under the
Loan  Documents,  all costs of suit and all reasonable  attorneys' fees and such
other  reasonable  expenses so incurred  by Bank shall be paid by  Borrower,  on
demand, and shall be deemed part of the obligations  evidenced hereby.  Whenever
reference is made to the payment of "attorneys'  fees",  "reasonable  attorney's
fees" or words of similar import in this Note, the Mortgage,  the Loan Agreement
and the other Loan  Documents,  the same shall mean and refer to the  payment of
actual attorney's fees incurred based upon the attorney's normal hourly rate and
the number of hours  worked,  and not the statutory  attorney's  fees defined in
O.C.G.A. ss. 13-1-11.

         12.4. No Implied  Waiver.  Bank shall not be deemed to have modified or
waived any of its rights or  remedies  hereunder  unless  such  modification  or
waiver  is in  writing  and  signed  by  Bank,  and  then  only  to  the  extent
specifically set forth therein.  A waiver in one event shall not be construed as
continuing  or as a waiver of or bar to such  right or  remedy  in a  subsequent
event.  After any  acceleration  of, or the entry of any judgment on, this Note,
the acceptance by Bank of any payments by or on behalf of Borrower on account of
the indebtedness  evidenced by this Note shall not cure or be deemed to cure any
Event of Default or reinstate  or be deemed to reinstate  the terms of this Note
absent an express written agreement duly executed by Bank and Borrower.

         12.5. Waiver. Borrower,  jointly and severally,  waives demand, notice,
presentment,  protest, demand for payment, notice of dishonor, notice of protest
and  diligence  of  collection  of this Note.  Borrower  consents to any and all
extensions of time,  renewals,  waivers, or modifications that may be granted by
Bank with respect to the payment or other  provisions  of this Note,  and to the
release of any collateral,  with or without  substitution.  Borrower agrees that
makers,  endorsers,  guarantors  and sureties  may be added or released  without
notice and without affecting Borrower's  liability  hereunder.  The liability of
Borrower  shall not be affected  by the failure of Bank to perfect or  otherwise
obtain or maintain  the  priority or  validity of any  security  interest in any
collateral.  The liability of Borrower shall be absolute and  unconditional  and
without regard to the liability of any other party hereto.

                                       3
<PAGE>

         12.6. No Usurious  Amounts.  Anything herein  contained to the contrary
notwithstanding,  Borrower  does not agree and  shall  not be  obligated  to pay
interest hereunder at a rate which is in excess of the maximum rate permitted by
law.  If by the terms of this  Note,  Borrower  is at any time  required  to pay
interest at a rate in excess of such maximum  rate,  the rate of interest  under
this Note shall be deemed to be  immediately  reduced to such maximum legal rate
and the portion of all prior  interest  payments in excess of such maximum legal
rate shall be applied to and shall be deemed to have been  payments in reduction
of the  outstanding  principal  balance.  Borrower  agrees  that in  determining
whether or not any  interest  payable  under this Note  exceeds the highest rate
permitted by law, any non-principal payment, including without limitation,  late
charges, shall be deemed to the extent permitted by law to be an expense, fee or
premium rather than interest.

         12.7. Partial Invalidity. The invalidity or unenforceability of any one
or more provisions of this Note shall not render any other provision  invalid or
unenforceable. In lieu of any invalid or unenforceable provision, there shall be
added  automatically  a valid and  enforceable  provision as similar in terms to
such invalid or unenforceable provision as may be possible.

         12.8. Binding Effect. The covenants,  conditions, waivers, releases and
agreements  contained in this Note shall bind,  and the benefits  thereof  shall
inure  to,  the  parties   hereto  and  their   respective   heirs,   executors,
administrators, successors and assigns; provided, however, that this Note cannot
be assigned by Borrower  without the prior written consent of Bank, and any such
assignment or attempted  assignment  by Borrower  shall be void and of no effect
with respect to Bank.

         12.9.  Modifications.  This  Note  may not be  supplemented,  extended,
modified or  terminated  except by an agreement  in writing  signed by the party
against whom enforcement of any such waiver,  change,  modification or discharge
is sought.

         12.10. Sales or Participations. Bank may from time to time pledge, sell
or assign, in whole or in part, or grant  participations in, the Loan, this Note
and/or  the  obligations  evidenced  thereby.  The  holder  of  any  such  sale,
assignment or participation,  if the applicable  agreement between Bank and such
holder so provides, shall be: (a) entitled to all of the rights, obligations and
benefits of Bank;  and (b) deemed to hold and may  exercise the rights of setoff
or  banker's  lien with  respect to any and all  obligations  of such  holder to
Borrower,  in each case as fully as though  Borrower were  directly  indebted to
such holder.  Bank may in its  discretion  give notice to Borrower of such sale,
assignment or participation;  however, the failure to give such notice shall not
affect any of Bank's or such holder's rights hereunder.

         12.11. Jurisdiction.  In addition to other agent for service of process
heretofore or hereafter  designated by Borrower,  Borrower  irrevocably appoints
its  general  partner as its  attorney  upon whom may be  served,  by regular or
certified mail at the address of Borrower set forth in the Mortgage, any notice,
process or pleading in any action or proceeding  against it arising out of or in
connection  with this Note or any  other  Loan  Document;  and  Borrower  hereby
consents that any action or proceeding against it be commenced and maintained in
any court within the State of Georgia by service of process on any such partner;
and Borrower agrees that the courts of such State shall have  jurisdiction  with
respect  to the  subject  matter  hereof  and the  person  of  Borrower  and all
collateral  securing the obligations of Borrower.  Borrower agrees not to assert
any defense to any action or  proceeding  initiated by Bank based upon  improper
venue or inconvenient forum.

         12.12. Notices. All notices and communications under this Note shall be
governed by the Mortgage.

         12.13.  Governing  Law. This Note shall be governed by and construed in
accordance with the substantive  laws of the State of Georgia without  reference
to conflict of laws principles.

         12.14. Joint and Several  Liability.  If Borrower consists of more than
one  person or  entity,  the word  "Borrower"  shall mean each of them and their
liability shall be joint and several.

         12.15. Continuing Enforcement.  If, after receipt of any payment of all
or any part of this Note, Bank is compelled or agrees, for settlement  purposes,
to  surrender  such  payment to any person or entity for any reason

                                       4
<PAGE>

(including,  without  limitation,  a determination  that such payment is void or
voidable as a preference or fraudulent conveyance, an impermissible setoff, or a
diversion of trust  funds),  then this Note and the other Loan  Documents  shall
continue  in full  force and  effect or be  reinstated,  as the case may be, and
Borrower shall be liable for, and shall indemnify, defend and hold harmless Bank
with respect to, the full amount so surrendered.  The provisions of this Section
shall  survive the  cancellation  or  termination  of this Note and shall remain
effective  notwithstanding the payment of the obligations  evidenced hereby, the
release of any security interest,  lien or encumbrance securing this Note or any
other  action  which Bank may have taken in  reliance  upon its  receipt of such
payment. Any cancellation,  release or other such action shall be deemed to have
been  conditioned  upon any payment of the obligations  evidenced  hereby having
become final and irrevocable.

         12.16. Time of the Essence. BORROWER AGREES THAT TIME IS OF THE ESSENCE
IN THE PERFORMANCE OF ALL OBLIGATIONS HEREUNDER.

         12.17.  Homestead.  Borrower hereby  transfers,  assigns and conveys to
Lender a  sufficient  amount  of  homestead  and  exemption  which  Borrower  or
Borrower's  family may have under or by virtue of the  Constitution  and laws of
the United States and of any state. In case of bankruptcy,  Borrower  authorizes
and directs the trustee to deliver to Lender a sufficient  amount of property or
money claims as exempt to pay this Note and Lender is appointed attorney-in-fact
for Borrower to claim any and all homestead exemptions allowed by law.

         12.18.  Loan for  Business  Purposes.  This Note is given for  business
purposes  and none of the  proceeds  of the Loan or this  Note  will be used for
personal, family or household purposes.

         12.19.  Waiver of Jury  Trial.  BORROWER  AND BANK AGREE  THAT,  TO THE
EXTENT  PERMITTED BY APPLICABLE  LAW, ANY SUIT,  ACTION OR  PROCEEDING,  WHETHER
CLAIM OR COUNTERCLAIM,  BROUGHT BY BANK OR BORROWER,  ON OR WITH RESPECT TO THIS
NOTE OR ANY OTHER LOAN  DOCUMENT OR THE  DEALINGS OF THE  PARTIES  WITH  RESPECT
HERETO OR  THERETO,  SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY.  BANK AND
BORROWER EACH HEREBY KNOWINGLY,  VOLUNTARILY,  INTENTIONALLY AND  INTELLIGENTLY,
AND WITH THE ADVICE OF THEIR RESPECTIVE COUNSEL,  WAIVE, TO THE EXTENT PERMITTED
BY  APPLICABLE  LAW,  ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH  SUIT,  ACTION OR
PROCEEDING.  FURTHER, BORROWER WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER,
IN ANY SUCH  SUIT,  ACTION OR  PROCEEDING,  ANY  SPECIAL,  EXEMPLARY,  PUNITIVE,
CONSEQUENTIAL  OR OTHER DAMAGES  OTHER THAN, OR IN ADDITION TO, ACTUAL  DAMAGES.
BORROWER  ACKNOWLEDGES  AND AGREES THAT THIS  SECTION IS A SPECIFIC AND MATERIAL
ASPECT OF THIS NOTE AND THAT BANK WOULD NOT  EXTEND  CREDIT TO  BORROWER  IF THE
WAIVERS SET FORTH IN THIS SECTION WERE NOT A PART OF THIS NOTE.

                                       5
<PAGE>

         IN WITNESS WHEREOF,  Borrower,  intending to be legally bound, has duly
executed and delivered this Note [under seal] as of the day and year first above
written.

                                          BORROWER

                                          ROBERTS PROPERTIES RESIDENTIAL, L.P.

                                          BY:ROBERTS REALTY INVESTORS, INC., its
                                             general partner

                                                   By: /s/ Charles S. Roberts
                                                       -------------------------
                                                      Its: ____________________

                                          [CORPORATE SEAL]

                                          Borrower's  Address:
                                          8010 Roswell Rd.
                                          Suite 120
                                          Atlanta, Georgia 30350

                                          Borrower's Telecopy Number:
                                          770-396-0706

                                          Borrower's Tax Identification Number:
                                          58-2122875

                                       6

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