Document:

Exhibit 10.193

  

BRGF

 

REDEMPTION
AGREEMENT

 

THIS
REDEMPTION AGREEMENT (this “Agreement”) is hereby made as of December 9, 2014 by and among BR Stonehenge
23Hundred JV, LLC, a Delaware limited liability company (the “Company”), BR Berry Hill Managing Member, LLC,
a Delaware limited liability company (“Bluerock”), and BR Berry Hill Managing Member II, LLC a Delaware limited
liability company (“BR Newco”), and Bluerock Growth Fund, LLC, a Delaware limited liability company (“BRGF”
and, together with Bluerock, and BR Newco, the “Members”).

 

WITNESSETH

 

WHEREAS, the Members are
parties to that certain Operating Agreement of the Company, dated as of October 18, 2012 (as amended, the “Operating
Agreement”);

 

WHEREAS,
effective as of December 9, 2014, Bluerock assigned a 20.0% Interest in the Company to BR Newco as a contribution to the capital
of BR Newco as permitted by Section 12.02(b)(i) of the Operating Agreement, and BR Newco has been admitted as a Member of the
Company;

 

WHEREAS,
the Company owns the real property commonly known as 23Hundred, located in the City of Berry Hill, Davidson County, Tennessee,
and legally described on Exhibit A attached hereto (the “Property”);

 

WHEREAS, contemporaneously
with the execution of this Agreement, the Company has agreed to redeem one hundred percent (100%) of Stonehenge 23Hundred JV Member,
LLC's Interest in the Company in exchange for the transfer of a direct fee ownership interest in the Property to SH 23Hundred
TIC, LLC, a Tennessee limited liability company and wholly owned subsidiary of Stonehenge 23Hundred JV Member, LLC (“Stonehenge”),
and in connection with such redemption Stonehenge will cease to be a member of the Company;

 

WHEREAS,
the Company desires to redeem one hundred percent (100%) of BRGF's Interest in the Company (the “Redeemed Interest”),
in exchange for the transfer of a direct fee ownership interest in the Property to the BRGF SPE (as defined below), which is wholly
owned by BRGF, and in connection with such redemption BRGF will cease to be a member of the Company (the “Redemption”);

 

WHEREAS,
the Members have approved the Redemption of the Redeemed Interest by the Company in accordance with the terms and conditions set
forth in this Agreement.

 

NOW, THEREFORE,
in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties to this Agreement (collectively, the “Parties”) agree as follows:

 

1.            Redemption
of Redeemed Interest. Upon the terms and subject to the conditions of this Agreement, effective as of the Effective Date,
as defined below:

 

		a.	BRGF
                                         hereby assigns, grants, sells, conveys, transfers and sets over all of the Redeemed Interest,
                                         to the Company, together with all rights, title, benefits and interest of BRGF in and
                                         to the Redeemed Interest effective as of December 9, 2014 (the “Effective Date”),
                                         all in accordance with the provisions set forth in this Agreement; and

 

    	 

    	 

    

  

		b.	The
                                         Company hereby accepts such assignment, transfer, and conveyance of the Redeemed Interest
                                         and assumes those liabilities, obligations and responsibilities, if any, attributable
                                         to the Redeemed Interest that shall arise upon or after the Effective Date.

 

		c.	Bluerock
                                         specifically agrees and acknowledges that (a) as of the date hereof, BRGF has no outstanding
                                         obligations as a member or manager of the Company (including, without limitation, obligations
                                         to fund any capital contributions under the Operating Agreement), and (b) from and after
                                         the date hereof, BRGF shall have no further obligations, financial or otherwise, as a
                                         member or manager of the Company (except as to third-party claims pursuant to Section
                                         2(b) hereof).

 

		d.	As
                                         consideration for the assignment, transfer, and conveyance of the Redeemed Interest by
                                         BRGF to the Company, the Company shall grant, transfer and convey to BGF 23Hundred, LLC,
                                         a Delaware limited liability company and wholly owned subsidiary of BRGF (the “BRGF
                                         SPE”), as of the Effective Date, an undivided 22.9330 percent (22.9330%) interest
                                         as a tenant-in-common in the Property (the “TIC Interest”), pursuant
                                         to a deed, in the form attached hereto as Exhibit B, various other applicable
                                         conveyance documents and as set forth in more detail in that certain Tenant in Common
                                         Agreement, dated as of even date herewith, and attached hereto as Exhibit C (the
                                         “TIC Agreement”); provided , however, that the TIC Interest
                                         shall remain subject to any mortgages, deeds of trust, liens, loans or other encumbrances
                                         that encumber the Property as of the Effective Date, including but not limited to those
                                         liens created in connection with that certain loan in the original principal amount of
                                         $23,569,000.00, made October 18, 2012 by Fifth Third Bank (the “Lender”)
                                         in favor of 23Hundred, LLC, a Delaware limited liability company (“23Hundred”)
                                         (the “Existing Loan”), which Existing Loan will be assumed, on a joint
                                         and several basis, by BRGF SPE concurrent with the transfer of the TIC Interest to BRGF
                                         SPE. The Parties acknowledge that, to the extent required, the consent of the holder
                                         of the Existing Loan to the Redemption and the transfer of the TIC Interest has been
                                         obtained by the Company. The aforesaid conveyance shall be deemed full satisfaction and
                                         full consideration for the Redeemed Interest.

 

		      2.	Release
                                         and Indemnification.

 

		a.	For
                                         value received, BRGF, for itself and for each and all of its Successors-in- Interest
                                         (as defined in Section 2(e) below), forever releases the Company and each of the
                                         other Members, and relinquishes any right, title or interest in and to the Company, any
                                         limited liability company interest, membership interest, percentage interest or other
                                         interest or right in respect of the Company, any right to any capital account, return
                                         of capital or other capital or investment with respect to the Company, any distributions
                                         of cash or property of whatsoever nature from the Company or otherwise related thereto,
                                         other property rights, and/or any other income, revenue, benefit or privilege of whatsoever
                                         nature from the Company or otherwise relating thereto; provided , however, the
                                         Company shall not be released from any obligations or liabilities to BRGF or its affiliates
                                         (i) pursuant to the certificate of formation of the Company or the Operating Agreement
                                         solely limited to the indemnification of a manager or member of the Company as to matters
                                         arising out of the Company's acts or omissions occurring prior to the Effective Date,
                                         (ii) pursuant to the TIC Agreement, the Deed and the other conveyance documents executed
                                         in connection with the transfer of the TIC Interest, or (iii) as provided under this
                                         Agreement.

 

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		b.	For
                                         value received, to the fullest extent permitted by law, the Company, for itself and for
                                         each and all of its Successors-in-Interest, hereby and forever releases and discharges
                                         BRGF and agrees to indemnify and hold harmless BRGF and each and all of its Successors-in-Interest
                                         from any and all claims, demands, liens, causes of action, suits, obligations, controversies,
                                         debts, costs, expenses, damages, judgments and orders of whatever kind or nature, at
                                         law, in equity or otherwise, whether known or unknown, suspected or unsuspected, which
                                         have existed, presently exist or may exist, relating to the Company or its activities,
                                         assets, liabilities, or any obligations that BRGF may have to the Company or the other
                                         Members under the terms of the Operating Agreement; provided , however, BRGF shall
                                         not be released or indemnified from any and all claims, demands, liens, causes of action,
                                         suits, obligations, controversies, debts, costs, expenses, damages, judgments and orders
                                         of whatever kind or nature, at law, in equity or otherwise, whether known or unknown,
                                         suspected or unsuspected, that result from third party claims arising prior to the Effective
                                         Date (including, without limitation, any taxes due and owing to any taxing authority),
                                         which shall be governed and controlled exclusively by the Operating Agreement.

 

		c.	Subject
                                         to the provisions of this Section 2, from and after the Effective Date, to the
                                         fullest extent permitted by law, BRGF shall defend, indemnify, protect, and hold harmless,
                                         the Company and each of the other Members and their respective Successors-in-Interest,
                                         against and in respect of any and all losses, liabilities, damages, actions, suits, proceedings,
                                         claims, demands, orders, assessments, amounts paid in settlement, fines, costs or deficiencies,
                                         including without limitation, interest, penalties, and reasonable attorneys' fees and
                                         costs, including the cost of seeking to enforce this indemnity to the extent such enforcement
                                         is successful, caused by or resulting or arising from, or otherwise with respect to,
                                         (i) any failure to perform or comply in any material respect with BRGF' s covenants or
                                         obligations contained in this Agreement or the BRGF SPE's covenants or obligations under
                                         the TIC Agreement, the Deed and the other conveyance documents executed in connection
                                         with the transfer of the TIC Interest, or (ii) a breach of any of the representations
                                         or warranties of BRGF contained in this Agreement, excluding any liabilities to the extent
                                         caused by the gross negligence or willful misconduct of the Company.

 

		d.	Subject
                                         to the provisions of this Section 2 (including without limitation Section 2(c)),
                                         to the fullest extent permitted by law, from and after the Effective Date, the Company
                                         shall defend, indemnify, protect, and hold harmless BRGF and each and all of its Successors-in-Interest
                                         against and in respect of any and all losses, liabilities, damages, actions, suits, proceedings,
                                         claims, demands, orders, assessments, amounts paid in settlement, fines, costs or deficiencies,
                                         including without limitation, interest, penalties, and reasonable attorneys' fees and
                                         costs, including the cost of seeking to enforce this indemnity to the extent such enforcement
                                         is successful, caused by or resulting or arising from, or otherwise with respect to,
                                         (i) any failure to perform or comply in any material respect with the Company's covenants
                                         or obligations contained in this Agreement or the Company's covenants or obligations
                                         under the TIC Agreement, the Deed and the other conveyance documents executed in connection
                                         with the transfer of the TIC Interest, or (ii) a breach of any of the representations
                                         or warranties of the Company contained in this Agreement, excluding any liabilities to
                                         the extent caused by the gross negligence or willful misconduct of BRGF.

 

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		e.	For
                                         purposes of this Agreement, the term “Successors-in-Interest” shall mean,
                                         with respect to a person, such person's present, past and future successors, assigns,
                                         affiliates, licensees, transferees, principals, agents, members, partners, associates,
                                         employees, representatives, attorneys, insurers, beneficiaries, legal representatives,
                                         decedents, dependents, heirs, executors or administrators.

 

		     3.	Acknowledgment;
                                         New Manager; Amendment of Company Name.

 

		a.	By
                                         its execution hereof, BRGF confirms that it has, as of the Effective Date, withdrawn
                                         and ceased to be a Member of the Company, and that BRGF's representatives to the Management
                                         Committee as appointed pursuant to Section 5.03.2 of the Operating Agreement, as of the
                                         Effective Date, resigned their respective positions as representatives to the Management
                                         Committee. The other Members and the Company accept and acknowledge the withdrawal and
                                         cessation of BRGF as a Member as of the Effective Date.

 

		b.	The
                                         other Members and the Company hereby appoint Bluerock as the Manager of the Company effective
                                         immediately after the Effective Date for all purposes under the Operating Agreement.

 

		c.	The
                                         other Members and the Company covenant and agree that immediately following the Effective
                                         Date, (i) the name of the Company shall be amended and all corporate filings shall be
                                         filed with the appropriate governmental authorities to eliminate any reference to “Stonehenge”
                                         or any derivation thereof, and (ii) the Operating Agreement shall be amended to reflect
                                         that BRGF is no longer a member of the Company.

 

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		      4.	Tax
                                         Matters.

 

		a.	The
                                         distributive share of the Company's income, gain, loss, and deduction with respect to
                                         the Redeemed Interest for the taxable year of the Company that includes the Effective
                                         Date shall be determined based upon an interim closing of the Company's books as of the
                                         close of business on the Effective Date.

 

		b.	Except
                                         as otherwise prohibited by applicable law, the Parties shall each file all required federal,
                                         state and local income tax returns and related returns and reports in a manner consistent
                                         with the foregoing provisions of this Section 4. In the event a party does not
                                         comply with the preceding sentence, the non- complying party, to the fullest extent permitted
                                         by law, shall indemnify and hold the other parties and each and all of their Successors-in-Interest
                                         wholly and completely harmless from all cost, liability and damage that such other parties
                                         may incur (including, without limitation, incremental tax liabilities, legal fees, accounting
                                         fees and other expenses) to the extent that such costs, liabilities and damages exceed
                                         the amount of the same that such other parties would have incurred pursuant to the terms
                                         of the Operating Agreement as a consequence of such failure to comply.

 

		c.	The
                                         Parties shall cooperate to make all necessary reports and file all necessary tax returns,
                                         in connection with the Redemption substantially in accordance with the agreements relating
                                         to tax matters attached hereto as Exhibit D.

 

5.           Property
Management and Development. In connection with the transfer of the TIC Interest, BRGF SPE has assumed, on a joint and
several basis with the Company, (i) the rights and obligations of the owner of the Property under the existing Management Agreement
(as amended and assigned contemporaneously herewith, the “Property Management Agreement”) with Matrix Residential,
LLC, a Georgia limited liability company, and (ii) the rights and obligations of the owner of the Property under the existing
Development Agreement (as amended and assigned contemporaneously herewith, the “Development Agreement”) with
Stonehenge Real Estate Group, LLC, a Georgia limited liability company. BRGF SPE and the Company agree to execute any reasonably
necessary amendments to the Property Management Agreement and the Development Agreement as may be requested by any of the parties
thereto, to reflect the transfer of the TIC Interest and the assumption of the Property Management Agreement and the Development
Agreement by BRGF SPE.

 

		       6.	Representations
                                         and Warranties.

 

		a.	BRGF
                                         hereby represents and warrants to the Company as follows: (a) BRGF is the sole owner
                                         of the Redeemed Interest; (b) the Redeemed Interest is free and clear of any and all
                                         liens, claims and encumbrances of any nature, (c) BRGF has full power and authority to
                                         transfer said Redeemed Interest and to perform its obligations under this Agreement and
                                         (d) this Agreement has been duly executed and delivered by and constitutes the valid
                                         and binding obligation of BRGF, enforceable against BRGF in accordance with its terms.
                                         Notwithstanding the provisions of this Section 6(a), BRGF makes no representation or
                                         warranty to the Company or any other person relating to the Company's right to cause
                                         the transfer of the TIC Interest in redemption of the Redeemed Interest without the prior
                                         consent of any lender holding a security interest in the Property (including the holder
                                         of the Existing Loan) or the other Members' limited liability company interests.

 

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		b.	The
                                         Company represents and warrants to BRGF that the Company has all requisite power and
                                         authority to enter into this Agreement and to perform its obligations under this Agreement.
                                         This Agreement has been duly executed and delivered by and constitutes the valid and
                                         binding obligation of the Company, enforceable against the Company in accordance with
                                         its terms. The Company is not required to obtain any consent that has not been obtained
                                         from any person or entity in connection with the execution and delivery of this Agreement,
                                         the consummation or performance of any of the transactions contemplated hereby, or the
                                         purchase of the Redeemed Interest.

 

7.          Consents
and Waivers. Each Party hereto hereby (a) consents in all capacities to and approves (i) the transfer of the Redeemed
Interest described herein and the withdrawal and cessation of BRGF as a member of the Company, and (ii) each other action effected
pursuant to this Agreement, and (b) waives in all capacities any and all rights such party may have as a result of such actions
(i) to receive notice of assignment and transfer of the Redeemed Interests or any other action effected pursuant to this Agreement,
(ii) to purchase the Redeemed Interests, (iii) to exercise any right of first refusal or other purchase right or option or buy-sell
provision arising under or with respect to the Operating Agreement, or (iv) to claim that any action effected pursuant to this
Agreement does not comply with the provisions of the Operating Agreement.

 

8.          Survival
of Representations. The representations and warranties described in Section 6 shall survive for the two (2) year period
following the Effective Date. All other warranties, representations, covenants and agreements shall survive for the period indicated,
or if none, indefinitely.

 

9.            Costs
and Expenses. The Company shall pay, and to the fullest extent permitted by law, shall indemnify and hold BRGF and each
and all of its Successors-in-Interest harmless against, all reasonable out-of-pocket costs and expenses incurred by it in connection
with the transactions contemplated by this Agreement, including, without limitation, legal fees, any transfer review and/or assumption
fees charged by the Existing Lender, real estate transfer taxes, recording fees, title insurance premiums or similar charges,
costs or expenses relating to the transfer of the TIC Interest to BRGF, and such other costs or expenses that are required to
be paid by the Company or BRGF as a result of the transfer of the TIC Interest and the transactions described in this Agreement.
The foregoing is only intended to include costs and expenses in excess of the costs and expenses which reasonably would have been
incurred by BRGF had this Agreement not been entered into. To the extent that any such costs and expenses are not taken into account
in calculating the TIC Interest to be conveyed to the BRGF SPE pursuant to this Agreement or otherwise reimbursed by the Company
as part of the transfer of the TIC Interest, such costs and expenses shall be payable after the closing of the transfer of the
TIC Interest promptly upon receipt by the Company of a written statement from BRGF setting forth in reasonable detail the costs
and expenses to be paid pursuant to this Section 9. Subject to the foregoing, each party shall pay all costs and expenses
incurred by it in connection with the transactions contemplated by this Agreement.

 

10.            Notices.
Any notices or other communications required or permitted hereunder shall be given in writing by registered or certified mail,
postage prepaid, and shall be addressed, in the case of BRGF: c/o Bluerock Real Estate, L.L.C, 712 Fifth Avenue, 9th Floor, New
York, NY 10016; in the case of Stonehenge: c/o Stonehenge Real Estate Group, LLC, 3200 West End Avenue, Suite 500, Nashville,
TN 37203, Attention: Todd Jackovich; and in the case of the Company or any of the other Members: c/o Bluerock Real Estate, L.L.C,
712 Fifth Avenue, 9th Floor, New York, NY 10016. Any notice or other communication so addressed and mailed, postage prepaid, by
registered or certified mail (in each case, with return receipt requested) shall be deemed to be delivered and given when received
or refused.

 

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11.           Successors
and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the Successors-in-Interest, assigns, heirs,
executors, administrators, members, managers, agents and representatives of the Parties hereto.

 

12.          
 Governing Law; Exclusive Venue; Waiver of Jury Trial.

 

		a.	This Agreement and the transactions
                                         contemplated herein, and all disputes between the parties arising out of or related to
                                         this Agreement, the transactions contemplated herein or the facts and circumstances leading
                                         to its or their execution or performance, whether in contract, tort or otherwise, shall
                                         be governed by the laws of the State of Delaware, without reference to conflict of laws
                                         principles.

 

		b.	The
                                         parties hereby agree not to elect a trial by jury of any issue triable of right by jury,
                                         and waive any right to trial by jury fully to the extent that any such right shall now
                                         or hereafter exist with regard to this agreement or any claim, counterclaim or other
                                         action arising in connection herewith. This waiver of right to trial by jury is given
                                         knowingly and voluntarily by the parties, and is intended to encompass individually each
                                         instance and each issue as to which the right to a trial by jury would otherwise accrue.
                                         Each party is hereby authorized to file a copy of this section in any proceeding as conclusive
                                         evidence of this waiver by each other party, as applicable.

 

		c.	The
                                         parties hereby consent to the jurisdiction of any State or Federal court located within
                                         the State of New York, Borough of Manhattan or the State of Tennessee and irrevocably
                                         agree that all actions or proceedings arising out of or relating to this agreement shall
                                         be litigated in such courts. The parties accept for themselves and in connection with
                                         their properties, generally and unconditionally, the jurisdiction of the aforesaid courts
                                         and waive any defense of forum non conveniens, and irrevocably agree to be bound by any
                                         judgment rendered thereby in connection with this agreement. Each party hereby irrevocably
                                         waives, to the fullest extent permitted by law, any objection it may now or hereafter
                                         have to such venue as being an inconvenient forum.

 

13.          Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be contrary to law, the remaining provisions
of this Agreement will remain in full force and effect.

 

14.         Entire
Agreement; Amendment. This Agreement contains the entire understanding of the Parties and there are no representations,
understandings, or agreements, oral or otherwise, except as stated herein. This Agreement amends the Operating Agreement with
respect to the subject matter of this Agreement. References to “this Agreement” shall include all Exhibits attached
hereto and made a part hereof. This Agreement may not be amended except in writing by all of the Parties hereto.

 

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15.         Counterparts;
Signature Pages. This Agreement may be executed in counterparts, each of which when so executed and delivered shall constitute
a complete and original instrument but all of which taken together shall constitute one and the same agreement, and it shall not
be necessary when making proof of this Agreement or any counterpart thereof to account for any other counterpart. Signatures transmitted
by facsimile or e-mail, through scanned or electronically transmitted .pdf, .jpg or .tif files, shall have the same effect as
the delivery of original signatures and shall be binding upon and enforceable against the Parties hereto as if such facsimile
or scanned documents were an original executed counterpart. If the Parties exchange signatures by facsimile or electronic means,
then the Parties agree to exchange the original signatures as soon thereafter as is reasonably practical.

 

[Signature
pages follow. ]

 

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IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement to be effective as of the Effective Time.

 

	BR STONEHENGE 23HUNDRED
    JV, LLC
	a Delaware limited liability company

	By:	BR Berry Hill Managing Member, LLC,
	 	a Delaware limited liability company
	Its:	Manager
	 	 
	 	By:	BEMT Berry Hill, LLC.
	 	 	a Delaware limited liability company
	 	Its:	Member and Manager
	 	 	 
	 	 	By:	Bluerock Residential Holdings. LP,
	 	 	 	a Delaware limited partnership
	 	 	Its:	Sole Member
	 	 	 	 
	 	 	 	By:	Bluerock Residential Growth REIT, Inc.,
	 	 	 	 	a Maryland corporation
	 	 	 	Its:	General Partner
	 	 	 	 
	 	 	 	 	By:	 /s/
    Michael L. Konig	 
	 	 	 	 	Name:	Michael L. Konig
	 	 	 	 	Its:	Senior Vice President and Chief Operating Officer

 

[Signature Page
to BRGF Redemption Agreement]

 

    	 

    	 

    

  

	BLUEROCK GROWTH FUND, LLC,
	a Delaware limited liability company
	 	 
	By:	BR Fund Manager, LLC,
	 	a Delaware limited liability company
	Its:	Member and Manager
	 	 	 
	 	By:	/s/
    Jordan B. Ruddy	 	 
	 	Name:	Jordan B. Ruddy
	 	Its:	Authorized Signatory

  

	BR BERRY HILL MANAGING MEMBER, LLC,
	a Delaware limited liability company
	 	 
	By:	BEMT Berry Hill, LLC,
	 	a Delaware limited liability company
	Its:	Member and Manager
	 	 	 
	 	By:	Bluerock Residential Holdings,

    LP, a Delaware limited partnership
	 	Its:	Sole Member
	 	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc.,

        a Maryland corporation

	 	 	Its:	General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Michael
    L. Konig	 
	 	 	 	Name:	Michael L. Konig
	 	 	 	Its:	Senior Vice President and Chief Operating Officer

 

	BR BERRY HILL MANAGING MEMBER, LLC,	 
	a Delaware: limited liability company	 
	 	 	 
	By:	BEMT Berry Hill, LLC,	 
	 	a Delaware limited liability company	 
	Its:	Member and Manager	 
	 	 	 	 
	 	By:	Bluerock Residential Holdings,

    LP, a Delaware limited partnership	 
	 	Its:	Sole Member	 
	 	 	 	 	 
	 	 	By:	Bluerock Residential Growth REIT, Inc.,

        a Maryland corporation
	 
	 	 	Its:	General Partner	 
	 	 	 	 	 	 
	 	 	 	By:	/s/ Michael L. Konig	 
	 	 	 	Name:	Michael L. Konig	 
	 	 	 	Its:	Senior Vice President and Chief Operating Officer

 

[Signature
Page to BRGF Redemption Agreement]

 

    	 

    	 

    

 

 Exhibit
A

 

PROPERTY
DESCRIPTION

 

    	 

    	 

    

  

Exhibit
B

 

PROPERTY
DEED

 

    	 

    	 

    

  

Exhibit
C

 

TENANT
IN COMMON AGREEMENT

 

    	 

    	 

    

  

Exhibit
D

 

TAX
MATTERSExhibit 10.194

 

	This Instrument Prepared By 	Maximum Principal Indebtedness
	Jeffrey R. King, Esq.	for Tennessee recording tax purposes is
	
        Stites & Harbison, PLLC

        401 Commerce Street, Suite 800

        Nashville, TN 37219
	$23,569,000.00, Tennessee recording tax was paid on instrument recorded as Instrument No. 20121022-0096448, Office of Register of Deeds for Davidson County, Tennessee

 

ASSUMPTION AGREEMENT

 

THIS ASSUMPTION
AGREEMENT (the “Agreement”) is entered into by and among Fifth Third Bank, an Ohio banking corporation (the
“Lender”), 23Hundred, LLC, a Delaware limited liability company (the “Original Borrower”),
SH 23Hundred TIC, LLC, a Tennessee limited liability company (“SH”), and BGF 23Hundred, LLC, a Delaware limited
liability company (“BGF”) (collectively, the Original Borrower, SH and BGF shall be referred to collectively
as “Borrowers”).

 

WITNESSETH

 

WHEREAS:

 

A.           The
Original Borrower and Lender entered into a Construction Loan Agreement (the “Original Loan Agreement”), dated
as of October 18, 2012, for a loan in the original principal amount of $23,569,000.00. The Original Borrower and Lender subsequently
have amended the Original Loan Agreement pursuant to the First Amendment to Construction Loan Agreement, dated as of November 1,
2012 (the “First Amendment”), the Second Amendment to Construction Loan Agreement, dated as of March 12, 2014
(the “Second Amendment”), and the Third Amendment to Construction Loan Agreement, dated as of July 28, 2014
(the “Third Amendment”) (the Original Loan Agreement, as amended by the First Amendment, the Second Amendment
and the Third Amendment, is herein referred to as the “Loan Agreement”).

 

B.           In
connection with the Loan Agreement, the Original Borrower executed the documents listed on Exhibit A attached hereto (collectively
with the Loan Agreement, the “Loan Documents”).

 

C.           The
purpose of the Loan Agreement was to provide financing to the Original Borrower for the construction of an apartment building on
property located at 2300 Franklin Pike, Nashville, Tennessee (the “Property”).

 

D.           The
Original Borrower has requested that Lender consent to the transfers of portions of the Original Borrower's fee interest in the
Property to SH and BGF, which entities, along with the Original Borrower, would own fee title to the Property as tenants in common
following such transfers.

 

E.           Lender
has consented to the proposed transfers on the condition, among others, that SH and BGF enter into this Agreement.

 

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NOW, THEREFORE,
in consideration of the premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

1.          Lender
hereby consents to the conveyance of portions of the Property by the Original Borrower to SH and BFG, such that following the conveyance,
the Property will be owned by the parties as tenants in common as follows:

 

	Borrowers:	Percentage Ownership Interest
	Original Borrower	42.2287%
	SH	34.8383%
	BGF	22.9330%

 

 

2.          SH
and BGF hereby assume all of the obligations of the Original Borrower under the terms of the Loan Documents with the express intent
and understanding that each of the Borrowers shall be jointly and severally liable for all of the obligations of the Original Borrower
to Lender under the Loan Documents.

 

3.          The
Original Borrower joins in this Agreement for the purpose of agreeing that it remains fully obligated to the Lender under the Loan
Documents.

 

4.          This
Agreement cannot be changed orally, but only by an amendment in writing signed by all parties hereto.

 

5.          This
Agreement shall be governed by, and construed and interpreted in accordance with the laws of the State of Tennessee.

 

6.          If
any provision of this Agreement shall for any reason be determined to be invalid or unenforceable, the balance of such provision
and the remaining provisions of this Agreement shall nevertheless continue to be valid and enforceable as though the invalid or
unenforceable provision had not been a part hereof.

 

7.          This
Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument. The execution of a counterpart of the signature page of this Agreement
shall be deemed to be the execution of a counterpart of this Agreement.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE FOLLOWS

 

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SIGNATURE PAGE TO ASSUMPTION AGREEMENT

 

IN WITNESS WHEREOF, the Borrowers
have executed this Agreement as of the 9th day of December, 2014.

 

BORROWERS:

 

23HUNDRED, LLC, a Delaware limited liability
company

 

		By:	BR Stonehenge 23Hundred N, LLC, a Delaware limited liability company, its Sole Member

 

		By:	BR Berry Hill Managing Member, LLC, a Delaware limited liability company, its Member and Manager

 

		By:	BEMT Berry Hill, LLC, a Delaware limited liability company, its Member and Manager

 

		By:	Bluerock Residential Holdings, LP, a Delaware limited partnership, as its Member

 

		By:	Bluerock Residential Growth REIT, Inc., a Maryland corporation, its General Partner

 

		By:	/s/ Michael L. Konig
	 	 	Michael L. Konig,
	 	 	Senior Vice President and Chief Operating Officer

 

	STATE OF NEW YORK	)
	COUNTY OF NEW YORK	)

 

Before me, Dale Pozzi                         ,
of the state and county aforesaid, personally appeared Michael L. Konig, with whom I am personally acquainted (or proved to me
on the basis of satisfactory evidence), and who, upon oath, acknowledged himself to be the Senior Vice President and Chief Operating
Officer of Bluerock Residential Growth REIT, Inc., in its capacity as general partner of Bluerock Residential Holdings, LP, in
its capacity as sole member of BEMT Berry Hill, LLC, in its capacity as manager of BR Berry Hill Managing Member, LLC, in its capacity
as manager of BR Stonehenge 23Hundred JV, LLC, in its capacity as sole member of 23HUNDRED, LLC, a Delaware limited liability
company, the within named bargainor, and that he as such Senior Vice President and Chief Operating Officer, being authorized so
to do, executed the foregoing instrument for the purpose therein contained by signing the name of said Bluerock Residential Growth
REIT, Inc., in its capacity as the general partner of the member of the manager of the manager of the sole member of 23HUNDRED,
LLC.

 

WITNESS my hand and seal at office
this 3rd day of December, 2014.

 

	 	/s/ Dale Pozzi
	 	Notary Public

 

	My Commission Expires:	 

 

	DALE POZZI	 
	NOTARY PUBLIC-STATE OF NEW YORK	 
	No. 0lP06275397	 
	Qualified In New York County	 
	My Commission Expires January 28, 2017	 

 

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	 	SH 23HUNDRED TIC, LLC, a Tennessee limited liability company 

 

	 	By: 	Stonehenge 23Hundred N Member, LLC, a Tennessee
	 	 	limited liability company, its sole member

 

	 	By: 	Stonehenge 23Hundred Manager, LLC, a Tennessee
	 	 	limited liability company, its Manager

 

	 	By: 	Stonehenge Real Estate Group, LLC, a 
	 	 	Georgia limited liability company, its 
	 	 	Manager

 

	 	By: 	/s/ Todd Jackovich
	 	 	Todd Jackovich, its Manager

 

	STATE OF TENNESSEE	)
	COUNTY OF DAVIDSON	)

 

Before
me, Jeanette L. Ramer                       ,
a Notary Public of said County and State, personally appeared Todd Jackovich, with whom I am personally acquainted (or proved to
me on the basis of satisfactory evidence), and who, upon oath, acknowledged himself to be the Manager (or other officer authorized
to execute the instrument) of Stonehenge Real Estate Group, LLC, the Manager of Stonehenge 23Hundred Manager, LLC, the Manager
of Stonehenge23Hundred JV Member, LLC, the Sole Member of SH 23HUNDRED TIC, LLC, the within named bargainor, a limited liability
company, and that he as such Manager executed the foregoing instrument for the purposes therein contained, by signing the name
of the limited liability company by himself as its Manager.

 

Witness my hand and seal, at Office in Nashville, Tennessee,
this 8th day of December, 2014.

 

	 	/s/ Jeanette L. Ramer
	 	Notary Public

 

	My Commission Expires:	7/6/15	 

 

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SIGNATURE PAGE TO ASSUMPTION AGREEMENT

 

	 	BGF 23HUNDRED, LLC, a Delaware limited liability company

 

	 	By: 	Bluerock Growth Fund, LLC, a Delaware limited
	 	 	liability company, its Sole Member

 

	 	By: 	BR Fund Manager, a , a Delaware limited
	 	liability company, its Manager

 

	 	By: 	/s/ Jordan Ruddy
	 	 	Jordan Ruddy, Authorized Signatory

 

	 	/

 

	STATE OF NEW YORK	)
	COUNTY OF NEW YORK	)

 

Before me,
Dale Pozzi                             ,
of the state and county aforesaid, personally appeared Jordan Ruddy, with whom I am personally acquainted (or proved to me on the
basis of satisfactory evidence), and who, upon oath, acknowledged himself to be the Authorized Signatory of BR Fund Manager, LLC,
in its capacity as the manager of Bluerock Growth Fund, LLC, in its capacity as the sole member of BGF 23HUNDRED, LLC, a
Delaware limited liability company, the within named bargainor, and that he as such Authorized Signatory, being authorized so to
do, executed the foregoing instrument for the purpose therein contained by signing the name of said BR Fund Manager, LLC, in its
capacity as the manager of the sole member of BGF 23HUNDRED, LLC.

 

WITNESS my
hand and seal at office this 3rd day of December, 2014.

 

	 	/s/ Dale Pozzi
	 	Notary Public

 

	My Commission Expires:	 	 

 

	DALE POZZI	 	 
	NOTARY PUBLIC-STATE OF NEW YORK	 	 
	No. 0lP06275397	 	 
	Qualified In New York County	 	 
	My Commission Expires January 28, 2017	 	 

 

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	 	LENDER:
	 	 
	 	FIFTH THIRD BANK, an Ohio banking
	 	Corporation
	 	By: 	/s/ Grady Thurman
	 	 	Grady Thurman, Vice President

 

	STATE OF TENNESSEE	)
	 	)
	COUNTY OF DAVIDSON	)

 

Before me,
Vanessa Harrington             , Notary Public of
said County and State, personally appeared Grady Thurman, with who I am personally acquainted (or proved to me on the basis of
satisfactory evidence), and who, upon oath, acknowledged himself to be Vice President (or other officer authorized to execute the
instrument) of FIFTH THIRD BANK, the within named bargainor, an Ohio banking corporation, and that he as such Vice President executed
the foregoing instrument for the purposes therein contained, by signing the name of the corporation by himself as Vice President.

 

Witness my
hand and seal, at Office in Nashville, Tennessee, this 9th day of December, 2014.

 

	 	/s/ Vanessa Harrington
	 	Notary Public

 

	My Commission Expires: 	May 3, 2016	 

 

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EXHIBIT A

 

LOAN DOCUMENTS

 

		1.	Construction Loan Agreement dated October 18, 2012, executed by Original Borrower and Lender.

 

		2.	Promissory Note, dated October 18, 2012, executed by the Original Borrower.

 

		3.	First Amendment to Construction Loan Agreement, dated November 1, 2012, executed by the Original Borrower and Lender.

 

		4.	Second Amendment to Construction Loan Agreement, dated March 12, 2014, executed by the Original Borrower and Lender.

 

		5.	Third Amendment to Construction Loan Agreement, dated July 28, 2014, executed by the Original Borrower and Lender.

 

		6.	Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing, dated October 18, 2012, executed by the Original
Borrower, and recorded as Instrument No. 20121022-0096448 in the Office of the Register of Deeds for Davidson County, Tennessee.

 

		7.	Assignment of Leases and Rents, dated as of October 18, 2012, executed by the Original Borrower, and recorded as Instrument
No. 20121022-0096449 in the Office of the Register of Deeds for Davidson County, Tennessee.

 

		8.	Security Agreement, dated as of October 18, 2012, executed by the Original Borrower and Lender.

 

		9.	Environmental Indemnity Agreement, dated as of October 18, 2012, executed by the Original Borrower and Todd Jackovich.

 

		10.	Access Laws Indemnity Agreement, dated as of October 18, 2012, executed by the Original Borrower and Todd Jackovich.

 

		11.	Assignment of Plans, Specifications, Contracts, Agreements, Reports, Licenses and Permits, dated as of October 18, 2012, executed
by the Original Borrower.

 

		12.	Retainage Escrow Agreement, dated as of October 18, 2012, executed by Lender, Original Borrower and Cambridge Builders &
Contractors, LLC.

 

		13.	Assignment of Retainage Account, dated as of November 2, 2012, executed by the Original Borrower and Lender, and acknowledged
and agreed to by Cambridge Builders & Contractors, LLC.

 

    	A-1

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