Document:

EX-10.7

Freddie Mac Loan No. 940963698

GUARANTY

MULTISTATE

(for use in all Property jurisdictions except California)

REVISION DATE 05/06/05

This Guaranty (“Guaranty”) is entered into to be effective as of August 28, 2007, by the
undersigned person(s) (the “Guarantor” jointly and severally if more than one), for the benefit of
FEDERAL HOME LOAN MORTGAGE CORPORATION (the “Lender”).

RECITALS

A. FS TOWNE CROSSING, L.P., a Texas limited partnership (the “Original Borrower”) previously
obtained a loan from KEYCORP REAL ESTATE CAPITAL MARKETS, INC., an Ohio corporation (“Original
Lender”) in the amount of $15,760,000.00 (the “Loan”). The Loan is evidenced by a Multifamily Note
from Borrower to Original Lender dated as of October 31, 2005 (the “Note”). The Note is secured by
a Multifamily Deed of Trust, Assignment of Rents and Security Agreement and Fixture Filing dated
the same date as the Note (the “Security Instrument”), encumbering the real property described in
the Security Instrument (the “Mortgaged Property”). The Original Lender sold the Note, assigned
its rights in the Security Instrument and transferred the Loan to Federal Home Loan Mortgage
Corporation, which is now the holder of the Note and the owner of the Loan (the “Lender”).

B. As a condition to allowing the Original Borrower to transfer the Property to APARTMENT REIT
TOWNE CROSSING, LP, a Texas limited partnership (the “New Borrower”) and to allow New Borrower to
assume the Loan, Lender has required that NNN APARTMENT REIT, INC., a Maryland corporation (the
"New Guarantor”) execute this Guaranty.

C. All references to Borrower in this Guaranty will be deemed to refer to the New Borrower. All
references to Guarantor in this Guaranty will be deemed to refer to the New Guarantor.

NOW, THEREFORE, in order to induce Lender to make the Loan to Borrower, and in consideration
thereof, Guarantor agrees as follows:

1. Defined Terms. "Indebtedness,” “Loan Documents” and “Property Jurisdiction” and other
capitalized terms used but not defined in this Guaranty shall have the meanings assigned to them in
the Security Instrument.

2. Scope of Guaranty.

	 	(a)	 	Guarantor hereby absolutely, unconditionally and irrevocably guarantees to
Lender:

	 	(i)	 	the full and prompt payment when due, whether at the Maturity
Date or earlier, by reason of acceleration or otherwise, and at all times
thereafter, of each of the following:

	 	(A)	 	a portion of the Indebtedness equal to zero
percent (0%) of the original principal balance of the Note (the “Base
Guaranty”); and

	 	(B)	 	in addition to the Base Guaranty, all other
amounts for which Borrower is personally liable under Sections 9(c),
9(d) and 9(f) of the Note; and

	 	(C)	 	all costs and expenses, including reasonable
Attorneys’ Fees and Costs incurred by Lender in enforcing its rights
under this Guaranty; and

	 	(ii)	 	the full and prompt payment and performance when due of all of
Borrower’s obligations under Section 18 of the Security Instrument.

(b) If the Base Guaranty stated in Section 2(a)(i)(A) is 100 percent of the original principal
balance of the Note, then (i) the Base Guaranty shall mean and include the full and complete
guaranty of payment of the entire Indebtedness and the performance of all Borrower’s obligations
under the Loan Documents; and (ii) for so long as the Base Guaranty remains in effect (there being
no limit to the duration of the Base Guaranty unless otherwise expressly provided in this
Guaranty), the obligations guaranteed pursuant to Sections 2(a)(i)(B), 2(a)(i)(C) and Section 3
shall be part of, and not in addition to or in limitation of, the Base Guaranty.

If the Base Guaranty stated in Section 2(a)(i)(A) is less than 100 percent of the original
principal balance of the Note, then this Section 2(b) shall be completely inapplicable and shall be
treated as if not a part of this Guaranty.

(c) If Guarantor is not liable for the entire Indebtedness, then all payments made by Borrower
with respect to the Indebtedness and all amounts received by Lender from the enforcement of its
rights under the Security Instrument and the other Loan Documents (except this Guaranty) shall be
applied first to the portion of the Indebtedness for which neither Borrower nor Guarantor has
personal liability.

3. Additional Guaranty Relating to Bankruptcy.

(a) Notwithstanding any limitation on liability provided for elsewhere in this Guaranty,
Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full and
prompt payment when due, whether at the Maturity Date or earlier, by reason of acceleration or
otherwise, and at all times thereafter, the entire Indebtedness, in the event that:

	 	(i)	 	Borrower voluntarily files for bankruptcy
protection under the United States Bankruptcy Code; or

	 	(ii)	 	Borrower voluntarily becomes subject to any
reorganization, receivership, insolvency proceeding, or other similar
proceeding pursuant to any other federal or state law affecting debtor
and creditor rights; or

	 	(iii)	 	an order of relief is entered against Borrower
pursuant to the United States Bankruptcy Code or other federal or state
law affecting debtor and creditor rights in any involuntary bankruptcy
proceeding initiated or joined in by a “Related Party.”

(b) For purposes of this Section, the term “Related Party” means:

(i) Borrower or Guarantor; and

(ii) any person or entity that holds, directly or indirectly, any ownership
interest in or right to manage Borrower or Guarantor, including without
limitation, any shareholder, member or partner of Borrower or Guarantor; and

(iii) any person or entity in which any ownership interest (direct or
indirect) or right to manage is held by Borrower, Guarantor or any partner,
shareholder or member of, or any other person or entity holding an interest in,
Borrower or Guarantor; and

(iv) any other creditor of Borrower that is related by blood, marriage or
adoption to Borrower, Guarantor or any partner, shareholder or member of, or any
other person or entity holding an interest in, Borrower or Guarantor.

(c) If Borrower, Guarantor or any Related Party has solicited creditors to initiate or
participate in any proceeding referred to in this Section, regardless of whether any of the
creditors solicited actually initiates or participates in the proceeding, then such proceeding
shall be considered as having been initiated by a Related Party.

4. Guarantor’s Obligations Survive Foreclosure. The obligations of Guarantor under this
Guaranty shall survive any foreclosure proceeding, any foreclosure sale, any delivery of any deed
in lieu of foreclosure, and any release of record of the Security Instrument, and, in addition, the
obligations of Guarantor relating to Borrower’s obligations under Section 18 of the Security
Instrument shall survive any repayment or discharge of the Indebtedness. Notwithstanding the
foregoing, if Lender has never been a mortgagee-in-possession of or held title to the Mortgaged
Property, Guarantor shall have no obligation under this Guaranty relating to Borrower’s obligations
under Section 18 of the Security Instrument after the date of the release of record of the lien of
the Security Instrument as a result of the payment in full of the Indebtedness on the Maturity Date
or by voluntary prepayment in full.

5. Guaranty of Payment and Performance. Guarantor’s obligations under this Guaranty
constitute an unconditional guaranty of payment and performance and not merely a guaranty of
collection.

6. No Demand by Lender Necessary; Waivers by Guarantor. The obligations of Guarantor under
this Guaranty shall be performed without demand by Lender and shall be unconditional regardless of
the genuineness, validity, regularity or enforceability of the Note, the Security Instrument, or
any other Loan Document, and without regard to any other circumstance which might otherwise
constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a mortgagor.
Guarantor hereby waives, to the fullest extent permitted by applicable law:

(a) the benefit of all principles or provisions of law, statutory or otherwise, which are or
might be in conflict with the terms of this Guaranty and agrees that Guarantor’s obligations shall
not be affected by any circumstances, whether or not referred to in this Guaranty, which might
otherwise constitute a legal or equitable discharge of a surety, a guarantor, a borrower or a
mortgagor;

(b) the benefits of any right of discharge under any and all statutes or other laws relating
to a guarantor, a surety, a borrower or a mortgagor, and any other rights of a surety, a guarantor,
a borrower or a mortgagor under such statutes or laws;

(c) diligence in collecting the Indebtedness, presentment, demand for payment, protest, all
notices with respect to the Note and this Guaranty which may be required by statute, rule of law or
otherwise to preserve Lender’s rights against Guarantor under this Guaranty, including, but not
limited to, notice of acceptance, notice of any amendment of the Loan Documents, notice of the
occurrence of any default or Event of Default, notice of intent to accelerate, notice of
acceleration, notice of dishonor, notice of foreclosure, notice of protest, and notice of the
incurring by Borrower of any obligation or indebtedness;

(d) all rights to cause a marshalling of the Borrower’s assets or to require Lender to:

(i) proceed against Borrower or any other guarantor of Borrower’s payment or
performance under the Loan Documents (an “Other Guarantor”);

(ii)  proceed against any general partner of Borrower or any Other Guarantor
if Borrower or any Other Guarantor is a partnership;

(iii)  proceed against or exhaust any collateral held by Lender to secure the
repayment of the Indebtedness; or

(iv) pursue any other remedy it may now or hereafter have against Borrower,
or, if Borrower is a partnership, any general partner of Borrower;

(e) any right to object to the timing, manner or conduct of Lender’s enforcement of its rights
under any of the Loan Documents; and

(f) any right to revoke this Guaranty as to any future advances by Lender under the terms of
the Security Instrument to protect Lender’s interest in the Mortgaged Property.

7. Modification of Loan Documents. At any time or from time to time and any number of times,
without notice to Guarantor and without affecting the liability of Guarantor, Lender may:

(a) extend the time for payment of the principal of or interest on the Indebtedness or renew
the Indebtedness in whole or in part;

(b) extend the time for Borrower’s performance of or compliance with any covenant or agreement
contained in the Note, the Security Instrument or any other Loan Document, whether presently
existing or hereinafter entered into, or waive such performance or compliance;

(c) accelerate the Maturity Date of the Indebtedness as provided in the Note, the Security
Instrument, or any other Loan Document;

(d) with Borrower, modify or amend the Note, the Security Instrument, or any other Loan
Document in any respect, including, but not limited to, an increase in the principal amount; and/or

(e) modify, exchange, surrender or otherwise deal with any security for the Indebtedness or
accept additional security that is pledged or mortgaged for the Indebtedness.

8. Joint and Several Liability. The obligations of Guarantor (and each party named as a
Guarantor in this Guaranty) and any Other Guarantor shall be joint and several. Lender, in its
sole and absolute discretion, may:

(a) bring suit against Guarantor, or any one or more of the parties named as a Guarantor in
this Guaranty, and any Other Guarantor, jointly and severally, or against any one or more of them;

(b) compromise or settle with Guarantor, any one or more of the parties named as a Guarantor
in this Guaranty, or any Other Guarantor, for such consideration as Lender may deem proper;

(c) release one or more of the parties named as a Guarantor in this Guaranty, or any Other
Guarantor, from liability; and

(d) otherwise deal with Guarantor and any Other Guarantor, or any one or more of them, in any
manner, and no such action shall impair the rights of Lender to collect from Guarantor any amount
guaranteed by Guarantor under this Guaranty.

9. Subordination of Borrower’s Indebtedness to Guarantor. Any indebtedness of Borrower held
by Guarantor now or in the future is and shall be subordinated to the Indebtedness and Guarantor
shall collect, enforce and receive any such indebtedness of Borrower as trustee for Lender, but
without reducing or affecting in any manner the liability of Guarantor under the other provisions
of this Guaranty.

10. Waiver of Subrogation. Guarantor shall have no right of, and hereby waives any claim for,
subrogation or reimbursement against Borrower or any general partner of Borrower by reason of any
payment by Guarantor under this Guaranty, whether such right or claim arises at law or in equity or
under any contract or statute, until the Indebtedness has been paid in full and there has expired
the maximum possible period thereafter during which any payment made by Borrower to Lender with
respect to the Indebtedness could be deemed a preference under the United States Bankruptcy Code.

11. Preference. If any payment by Borrower is held to constitute a preference under any
applicable bankruptcy, insolvency, or similar laws, or if for any other reason Lender is required
to refund any sums to Borrower, such refund shall not constitute a release of any liability of
Guarantor under this Guaranty. It is the intention of Lender and Guarantor that Guarantor’s
obligations under this Guaranty shall not be discharged except by Guarantor’s performance of such
obligations and then only to the extent of such performance.

12. Financial Statements. Guarantor, from time to time upon written request by Lender, shall
deliver to Lender such financial statements as Lender may reasonably require.

13. Assignment. Lender may assign its rights under this Guaranty in whole or in part and upon
any such assignment, all the terms and provisions of this Guaranty shall inure to the benefit of
such assignee to the extent so assigned. The terms used to designate any of the parties herein
shall be deemed to include the heirs, legal representatives, successors and assigns of such
parties, and the term “Lender” shall also include any lawful owner, holder or pledgee of the Note.
Reference in this Guaranty to “person” or “persons” shall be deemed to include individuals and
entities.

14. Complete and Final Agreement. This Guaranty and the other Loan Documents represent the
final agreement between the parties and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements. There are no unwritten oral agreements between the
parties. All prior or contemporaneous agreements, understandings, representations, and statements,
oral or written, are merged into this Guaranty and the other Loan Documents. Guarantor
acknowledges that Guarantor has received a copy of the Note and all other Loan Documents. Neither
this Guaranty nor any of its provisions may be waived, modified, amended, discharged, or terminated
except by a writing signed by the party against which the enforcement of the waiver, modification,
amendment, discharge, or termination is sought, and then only to the extent set forth in that
writing.

15. Governing Law. This Guaranty shall be governed by and enforced in accordance with the
laws of the Property Jurisdiction, without giving effect to the choice of law principles of the
Property Jurisdiction that would require the application of the laws of a jurisdiction other than
the Property Jurisdiction.

16. Jurisdiction; Venue. Guarantor agrees that any controversy arising under or in relation
to this Guaranty may be litigated in the Property Jurisdiction, and that the state and federal
courts and authorities with jurisdiction in the Property Jurisdiction shall have jurisdiction over
all controversies which shall arise under or in relation to this Guaranty. Guarantor irrevocably
consents to service, jurisdiction and venue of such courts for any such litigation and waives any
other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise.
However, nothing herein is intended to limit Lender’s right to bring any suit, action or proceeding
relating to matters arising under this Guaranty against Guarantor or any of Guarantor’s assets in
any court of any other jurisdiction.

17. Guarantor’s Interest in Borrower. Guarantor represents to Lender that Guarantor has a
direct or indirect ownership or other financial interest in Borrower and/or will otherwise derive a
material financial benefit from the making of the Loan.

18. STATE-SPECIFIC PROVISIONS: N/A

19. Residence; Community Property Provision.

	 	 	 
	(a)

	 	Guarantor represents and warrants that his/her state of residence is N/A.
	
 
	 	(b)Guarantor warrants and represents that s/he is: N/A

[     ] single

[     ] married

20. GUARANTOR AND LENDER EACH (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY
ISSUE ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP BETWEEN THE PARTIES AS GUARANTOR AND LENDER
THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH
ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL
BY JURY IS SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT
LEGAL COUNSEL.

ATTACHED EXHIBIT. The following Exhibit is attached to this Guaranty:

|X| Exhibit A Modifications to Guaranty

[DOCUMENT EXECUTION AND ACKNOWLEDGMENT OCCUR ON THE FOLLOWING PAGE]

1

IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal or has caused this
Guaranty to be signed and delivered under seal by its duly authorized representative.

NNN APARTMENT REIT, INC.

a Maryland corporation

By: /s/ S. Jay Olander

S. Jay Olander

Chief Executive Officer

Date: August 23, 2007.

THE COMMONWEALTH OF VIRGINIA, RICHMOND CITY ss:

BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day
personally appeared S. Jay Olander, known to me to be the Chief Executive Officer of NNN Apartment
REIT, Inc., the corporation that executed the foregoing instrument, and known to me to be the

person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me
that the same was the act of the said corporation and that he executed the same as the act of such
corporation for the purposes and consideration therein expressed and in the capacity therein
stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE this 23 day of August, 2007.

/s/ Brenda M. Holmes

Notary Public in and for City of Richmond County, Virginia

Registration No.: 224930

My Commission Expires: 9-30-07

[Seal]

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Names and Address(es) of Guarantor(s):

	 	 	 
	Name:

Address:

	 	NNN Apartments REIT, Inc.

c/o Triple Net Properties, LLC

1551 N. Tustin Avenue, Suite 300

Santa Ana, California 93705

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EXHIBIT A

MODIFICATIONS TO GUARANTY

The following modifications are made to the text of the Guaranty that precedes this Exhibit:

1. Section 2(a)(i)(B) is deleted and the following substituted in its place:

“(B) in addition to the Base Guaranty, all other amounts for which Borrower is
personally liable under Sections 9(c) through (f) of the Note; and”

4EX-10.8

UNSECURED PROMISSORY NOTE (this “Note”)

$5,400,000

August 29, 2007 (the “Note Date”)

FOR VALUE RECEIVED, NNN Apartment REIT Holdings, L.P., a Virginia limited partnership
(“Borrower”), unconditionally promises to pay NNN Realty Advisors, Inc., a Delaware corporation
(“Lender”), in the manner and at the place hereinafter provided, the principal amount of Five
Million Four Hundred Thousand Dollars ($5,400,000).

Borrower also promises to pay interest on the unpaid principal amount hereof from the Note
Date until paid in full at a rate per annum equal to the Interest Rate (capitalized terms used
herein and not otherwise defined herein shall have the meanings provided in Schedule A
attached hereto), provided that any principal amount not paid when due and, to the extent permitted
by applicable law, any interest not paid when due, in each case whether at stated maturity,
declaration, acceleration, demand or otherwise (both before as well as after judgment), shall bear
interest payable upon demand at a rate per annum equal to the Default Interest Rate. Interest on
this Note shall be payable in arrears on the first day of each month beginning on the Commencement
Date, each date on which an installment of principal is due and payable hereunder, upon any
prepayment of this Note (to the extent accrued on the amount being prepaid) and at maturity. All
computations of interest shall be made by Lender on the basis of a 365-day year, for the actual
number of days elapsed in the relevant period (including the first day but excluding the last day).
In no event shall the interest rate payable on this Note exceed the maximum rate of interest
permitted to be charged under applicable law.

1. Maturity Date. The outstanding principal amount of the Note, and any accrued but
unpaid interest thereon, shall be automatically due and payable on the Maturity Date.

2. Payments. All payments of principal and interest in respect of this Note shall be
made in lawful money of the United States of America in same day funds at the office of Lender
located at 1551 N. Tustin Avenue, Suite 200, Santa Ana, California 92705, or at such other place as
Lender may direct. Whenever any payment on this Note is stated to be due on a day that is not a
Business Day (as defined herein), such payment shall instead be made on the next Business Day and
such extension of time shall be included in the computation of interest payable on this Note. Each
payment made hereunder shall be credited first to interest then due and the remainder of such
payment shall be credited to principal, and interest shall thereupon cease to accrue upon the
principal so credited. Each of Lender and any subsequent holder of this Note agrees, by its
acceptance hereof, that before disposing of this Note or any part hereof the Lender and any
subsequent holder of this Note will mutually agree on the amount of all principal payments
previously made hereunder and of the date to which interest hereon has been paid; provided,
however, that the failure to make a notation of any payment made on this Note shall not
limit or otherwise affect the obligation of Borrower hereunder with respect to payments of
principal or interest on this Note. “Business Day” means any day other than a Saturday, Sunday or
legal holiday under the laws of the State of California or any other day on which banking
institutions located in such state are authorized or required by law or other governmental action
to close.

3. Prepayments. Borrower shall have the right at any time and from time to time on or
prior to the Maturity Date to prepay the principal of this Note in whole or in part, without
premium or penalty. Any prepayment hereunder shall be accompanied by the payment of accrued
interest on the principal amount of the Note being prepaid to the date of prepayment.

4. Covenants. Borrower covenants and agrees that until this Note is paid in full it
will:

(a) promptly provide to Lender financial and operational information with respect to
Borrower or any of its subsidiaries as Lender may reasonably request;

(b) promptly after the occurrence of an Event of Default (as defined herein) or an
event, act or condition that, with notice or lapse of time or both, would constitute an
Event of Default, provide Lender with a certificate of the chief executive officer, chief
financial officer or general partner(s) of Borrower specifying the nature thereof and
Borrower’s proposed response thereto; and

(c) not merge or consolidate with any other Person (as defined herein), or sell, lease
or otherwise dispose of all or any substantial part of its property or assets to any other
Person.

“Person” means any individual, partnership, limited liability company, joint venture, firm,
corporation, association, bank, trust or other enterprise, whether or not a legal entity, or any
government or political subdivision or any agency, department or instrumentality thereof.

5. Representations and Warranties. Borrower hereby represents and warrants to Lender
that:

(a) it is a duly organized and validly existing corporation in good standing under the
laws of the jurisdiction of its organization and has the corporate power and authority to
own and operate its properties, to transact the business in which it is now engaged and to
execute and deliver this Note;

(b) this Note constitutes the duly authorized, legally valid and binding obligation of
Borrower, enforceable against Borrower in accordance with its terms;

(c) all consents and grants of approval required to have been granted by any Person in
connection with the execution, delivery and performance of this Note have been granted;

(d) the execution, delivery and performance by Borrower of this Note do not and will
not violate any law, governmental rule or regulation, court order or agreement to which it
is subject or by which its properties are bound or the charter documents or bylaws of
Borrower;

(e) there is no action, suit, proceeding or governmental investigation pending or, to
the knowledge of Borrower, threatened against Borrower or any of its subsidiaries or any of
their respective assets which, if adversely determined, would have a material adverse effect
on the business, operations, properties, assets, condition (financial or otherwise) or
prospects of Borrower and its subsidiaries, taken as a whole, or the ability of Borrower to
comply with its obligations hereunder; and

(f) the proceeds of the loan evidenced by this Note shall be used by Borrower for the
purpose of acquiring real property.

6. Events of Default. The occurrence of any of the following events shall constitute
an “Event of Default”:

(a) failure of Borrower to pay any Installment Payment or interest thereon due under
this Note within five business days after the date due, or failure of Borrower to pay any
principal, interest or other amount due under this Note when otherwise due, whether at
stated maturity, declaration, acceleration, demand or otherwise; or

(b) failure of Borrower to perform or observe any other term, covenant or agreement to
be performed or observed by it pursuant to this Note; or

(c) any representation or warranty made by Borrower to Lender in connection with this
Note shall prove to have been false in any material respect when made; or

(d) any order, judgment or decree shall be entered against Borrower decreeing the
liquidation, dissolution or split-up of Borrower; or

(e) suspension of the usual business activities of Borrower or the complete or partial
liquidation of Borrower’s business; or

(f) (i) a court having jurisdiction in the premises shall enter a decree or order for
relief in respect of Borrower in an involuntary case under Title 11 of the United States
Code entitled “Bankruptcy” (as now and hereinafter in effect, or any successor thereto, the
“Bankruptcy Code”) or any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, which decree or order is not stayed, or any other similar relief shall
be granted under any applicable federal or state law, or (ii) an involuntary case shall be
commenced against Borrower under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or
other officer having similar powers over Borrower or over all or a substantial part of its
property shall have been entered, or the involuntary appointment of an interim receiver,
trustee or other custodian of Borrower for all or a substantial part of its property shall
have occurred, or a warrant of attachment, execution or similar process shall have been
issued against any substantial part of the property of Borrower and, in the case of any
event described in this clause (ii), such event shall have continued for 60 days unless
dismissed, bonded or discharged; or

(g) an order for relief shall be entered with respect to Borrower or Borrower shall
commence a voluntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency
or other similar law now or hereafter in effect, or shall consent to the entry of an order
for relief in an involuntary case, or to the conversion of an involuntary case to a
voluntary case, under any such law, or shall consent to the appointment of or taking
possession by a receiver, trustee or other custodian for all or a substantial part of its
property, or Borrower shall make an assignment for the benefit of creditors, or Borrower
shall be unable or fail, or shall admit in writing its inability, to pay its debts as such
debts become due, or the board of directors or general partner(s) of Borrower (or any
committee thereof) shall adopt any resolution or otherwise authorize action to approve any
of the foregoing; or

(h) Borrower shall challenge, or institute any proceedings to challenge, the validity,
binding effect or enforceability of this Note or any endorsement of this Note or any other
obligation to Lender; or

(i) any provision of this Note or any provision hereof or thereof shall cease to be in
full force or effect or shall be declared to be null or void or otherwise unenforceable in
whole or in part.

7. Remedies. Upon the occurrence of any Event of Default specified in Section
6(g) or 6(h) above, and upon Borrower’s receipt of written notice of any Event of
Default from Lender, the principal amount of this Note, together with accrued interest thereon,
shall become immediately due and payable. Upon the occurrence and during the continuance of any
other Event of Default, Lender may, by written notice to Borrower, declare the principal amount of
this Note, together with accrued interest thereon, to be due and payable, and the principal amount
of this Note, together with such interest, shall thereupon immediately become due and payable
without presentment, further notice, protest or other requirements of any kind (all of which are
hereby expressly waived by Borrower). From and after any Event of Default until such time as the
Event of Default has been cured, the Default Interest Rate shall be applicable.

8. Miscellaneous.

(a) All notices and other communications provided for hereunder shall be in writing
(including telefacsimile communication) and mailed, telecopied or delivered by overnight
courier as follows: if to Borrower, at its address specified opposite its signature below
and, if to Lender, at Lender’s address in Section 2 above or, in each case, at such
other address as shall be designated by Lender or Borrower. All such notices and
communications shall, when mailed, telecopied or delivered by overnight courier, be
effective when deposited in the mails, sent by telecopier or delivered to the overnight
courier, as the case may be.

(b) Borrower shall indemnify Lender against any losses, claims, damages and liabilities
and related expenses, including counsel fees and expenses, incurred by Lender arising out of
or in connection with or as a result of the transactions contemplated by this Note. In
particular, Borrower shall pay all costs and expenses, including reasonable attorneys’ fees,
incurred in connection with the collection and enforcement of this Note.

(c) No failure or delay on the part of Lender or any other holder of this Note to
exercise any right, power or privilege under this Note and no course of dealing between
Borrower and Lender shall impair such right, power or privilege or operate as a waiver of
any default or an acquiescence therein, nor shall any single or partial exercise of any such
right, power or privilege preclude any other or further exercise thereof or the exercise of
any other right, power or privilege. The rights and remedies expressly provided in this
Note are cumulative to, and not exclusive of, any rights or remedies that Lender would
otherwise have. No notice to or demand on Borrower in any case shall entitle Borrower to
any other or further notice or demand in similar or other circumstances or constitute a
waiver of the right of Lender to any other or further action in any circumstances without
notice or demand.

(d) Borrower and any endorser of this Note hereby consent to renewals and extensions of
time at or after the Maturity Date, without notice, and hereby waive diligence, presentment,
protest, demand and notice of every kind and, to the full extent permitted by law, the right
to plead any statute of limitations as a defense to any demand hereunder.

(e) THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF BORROWER AND LENDER HEREUNDER SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF CALIFORNIA, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

(f) ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST BORROWER ARISING OUT OF OR RELATING TO
THIS NOTE MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE
STATE OF CALIFORNIA, AND BY EXECUTION AND DELIVERY OF THIS NOTE BORROWER ACCEPTS FOR ITSELF
AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS AND
IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS
NOTE. Borrower hereby agrees that service of all process in any such proceeding in any such
court may be made by registered or certified mail, return receipt requested, to Borrower at
its address set forth below its signature hereto, such service being hereby acknowledged by
Borrower to be sufficient for personal jurisdiction in any action against Borrower in any
such court and to be otherwise effective and binding service in every respect. Nothing
herein shall affect the right to serve process in any other manner permitted by law or shall
limit the right of Lender to bring proceedings against Borrower in the courts of any other
jurisdiction.

(g) BORROWER AND, BY THEIR ACCEPTANCE OF THIS NOTE, LENDER AND ANY SUBSEQUENT HOLDER OF
THIS NOTE HEREBY IRREVOCABLY AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE OR ANY DEALINGS BETWEEN THEM
RELATING TO THE SUBJECT MATTER OF THIS NOTE AND THE LENDER/BORROWER RELATIONSHIP THAT IS
BEING ESTABLISHED. The scope of this waiver is intended to be all-encompassing of any and
all disputes that may be filed in any court and that relate to the subject matter of this
transaction, including, without limitation, contract claims, tort claims, breach of duty
claims and all other common law and statutory claims. Borrower and, by their acceptance of
this Note, Lender and any subsequent holder of this Note each (i) acknowledges that this
waiver is a material inducement to enter into a business relationship, that each has already
relied on this waiver in entering into this relationship and that each will continue to rely
on this waiver in their related future dealings, and (ii) further warrants and represents
that each has reviewed this waiver with its legal counsel and that each knowingly and
voluntarily waives its jury trial rights following consultation with legal counsel. THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
OF THIS NOTE. In the event of litigation, this provision may be filed as a written consent
to a trial by the court.

(h) Borrower hereby waives the benefit of any statute or rule of law or judicial
decision, including without limitation California Civil Code § 1654, which would otherwise
require that the provisions of this Note be construed or interpreted most strongly against
the party responsible for the drafting thereof.

[Remainder of page intentionally left blank]

1

IN WITNESS WHEREOF, Borrower has executed
and delivered this Note as of the Note Date at Lender’s address.

“Borrower”

	 	 	 
	NNN APARTMENT REIT HOLDINGS, L.P., a Virginia limited partnership
	By:

	 	NNN APARTMENT REIT, INC.

a Maryland corporation, its general partner

	 	 	 
	/s/ Andrea R. Biller

	By:

Its:

	 	Andrea R. Biller

Secretary

Address: 1551 N. Tustin Avenue, Suite 200

Santa Ana, CA 92705

“Lender”

NNN REALTY ADVISORS, Inc.

a Delaware corporation

	 	 	 
	/s/ Francene LaPoint

	By:

	 	Francene LaPoint

Its: Chief Financial Officer

2

SCHEDULE A

DEFINED TERMS

The following terms used in the Note shall have the following meanings (and any of such terms
may, unless the context otherwise requires, be used in the singular or the plural depending on the
reference):

	 	 	 
	Defined Term	 	Definition
	Commencement Date

	 	October 1, 2007
	 

	 	 
	Maturity Date

	 	March 1, 2008
	 

	 	 
	Interest Rate

	 	6.85% per annum.
	 

	 	 
	Default Interest Rate

	 	The rate that is 2% per annum in excess of the Interest

Rate.
	 

	 	 

3

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