Document:

EX-10.9

Assignment and Subordination of Management Agreement

This Assignment and Subordination of Management Agreement (this “Assignment”) is made as
of the 29th day of June, 2007, by and among APARTMENT REIT RESIDENCES AT BRAEMAR, LLC, a North
Carolina limited liability company (“Borrower”), TRIPLE NET PROPERTIES REALTY, INC., a California
corporation (“Triple Net” or “Manager”) and TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY, an Iowa
corporation (“Lender”).

W I T N E S S E T H:

WHEREAS, Borrower, as the owner, and Triple Net, as the property manager, entered into that
certain Management Agreement dated as of June 29, 2007 (the “Management Agreement”), with respect
to a parcel of improved real property in Mecklenburg County, North Carolina (the “Property”),
containing 160 multi-family apartment units and related amenities, the address of the rental office
for which is located at 8010 Woodsedge Drive, Charlotte, North Carolina 28216;

WHEREAS, Lender made a loan (hereinafter referred to as the “Loan”) to Braemar Housing Limited
Partnership, an Ohio limited partnership (“Original Borrower”), evidenced by a Secured Promissory
Note in the principal face amount of $10,000,000.00 dated May 25, 2005, which Borrower, as the
successor in title of Original Borrower, is assuming pursuant to the terms of a certain Loan
Assumption and Modification Agreement of even date herewith among Borrower, Original Borrower,
Lender and others (the “Assumption Agreement”; such Secured Promissory Note, as affected by the
Assumption Agreement, collectively referred to as the “Note”),

WHEREAS, the Loan is secured by, inter alia, a Deed of Trust dated May 25, 2005, recorded in
Deed Book 18849, Page 135, Registry of Mecklenburg County, North Carolina, encumbering the
Property, as modified by that certain Loan Assumption and Modification Agreement dated of even date
herewith (hereinafter referred to as the “Security Instrument”); and

WHEREAS, it is a condition of Lender’s execution of the Assumption Agreement that the
Management Agreement be subordinated to the lien of the Security Instrument and be collaterally
assigned to Lender;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as
follows:

1. Borrower hereby collaterally assigns and transfers to Lender all of Borrower’s right,
title, interest and privileges in the Management Agreement, together with any extensions or
renewals thereof and subcontracts thereunder.

2. The assignment herein granted is given for the purpose of securing the performance by
Borrower of all of its obligations and liabilities to Lender created or incurred under the Note,
the Security Instrument or under any other instrument or document given to evidence, secure or
support the Loan, whether now existing or hereafter arising, contracted or incurred (hereinafter
collectively referred to as the “Loan Documents”).

3. Borrower will not terminate the Management Agreement, or modify or amend any material terms
of the Management Agreement without the written consent of Lender.

4. Notwithstanding any presumption to the contrary, (i) so long as Lender has not succeeded to
the interest of Borrower under the Management Agreement as herein provided, Lender shall not be
obligated by reason of acceptance of the assignment herein granted to perform any obligation of
Borrower under the Management Agreement, and (ii) Lender shall have no duty or obligation under the
Management Agreement until such time as Lender gives Manager written notice of its election not to
terminate the Management Agreement.

5. Borrower hereby represents and warrants to Lender, as a material inducement to Lender to
accept the assignment, that:

(a) The Management Agreement is in full force and effect, free from any default, and has not
been amended or modified;

(b) Borrower has made no prior assignment of any of Borrower’s rights under the Management
Agreement and Borrower shall not make any such assignment; and

(c) Borrower has not done anything which might prevent Lender from or limit Lender in
operating under any of the provisions hereof.

6. A “Default” under the Security Instrument or the Note shall constitute a “Default”
hereunder.

7. Upon the occurrence of a Default, Borrower hereby authorizes Lender to give written notice
to Manager of Borrower’s default, and, if Lender gives affirmative notice that it desires the
benefits hereof, Lender shall be entitled to all benefits of Borrower under the Management
Agreement.

8. The Management Agreement and any extension, renewal, replacement or modification thereof,
and all of the right, title and interest (if any) of Manager in and to the Property are and shall
be subject and subordinate to the Security Instrument and to any renewals, modifications or
extensions thereof, and all rights of Manager, including but not limited to any right to collect
any management fees, leasing fees or other amounts accrued prior to any foreclosure under the
Security Instrument, are and shall be subject and subordinate to the rights and claims of Lender
under the Security Instrument.

9. In the event of the acceleration of the Note or the foreclosure of the Security Instrument,
or in the event Lender comes into possession of or acquires title to the Property by any other
means arising out of a Default by Borrower, Lender may, at its option, upon notice to Manager,
terminate the Management Agreement without obligation to Manager including, without limitation,
liability for any management, leasing or other fees or other amounts claimed by Manager; provided,
however, that at the option of Lender, Manager shall continue for a period determined by Lender, to
perform all of its obligations under the Management Agreement and shall receive compensation as
provided therein (excluding any compensation for or in connection with termination of the
Management Agreement) until such time as Lender terminates the Management Agreement or a substitute
manager shall have been approved by Lender and shall have commenced to manage the Property.
Notwithstanding anything herein to the contrary, in the event Lender continues the Management
Agreement, Lender shall be responsible only for obligations which first arise thereunder during the
period Lender keeps the Management Agreement in force. Under no circumstances will Lender have any
liability for any obligations under the Management Agreement accruing prior to or after the period
during which Lender retains Manager pursuant to the Management Agreement or for any termination or
similar charges provided for in the Management Agreement.

10. In the event Lender comes into possession of or acquires title to the Property as
described in Paragraph 9 above and elects in writing not to terminate the Management Agreement as
described in Paragraph 9 above, Manager agrees to attorn to Lender and be bound to Lender under all
of the terms, covenants and conditions of the Management Agreement for the period commencing on the
date when Lender succeeds to the interest of Borrower under the Management Agreement and ending
with Lender’s termination thereof, with the same force and effect as if Lender were a party to the
Management Agreement. Any such attornment shall be effective and self-operative as an agreement
between Manager and Lender without the execution of any further instruments on the part of any
party hereto. Nevertheless, Manager and Lender agree, upon the election of and written demand of
Lender, to execute an instrument in confirmation of the foregoing provision.

11. Manager hereby certifies to Lender that the Management Agreement is in full force and
effect, free from any default, and has not been amended or modified except to the extent, if any,
described herein. Without limiting the foregoing, Manager warrants that it has received payment in
full of all leasing commissions and similar compensation due in connection with all leases executed
with respect to the Property.

12. Manager hereby agrees with Lender as follows:

(a) Manager shall serve upon Lender notice of (i) any alleged default by Borrower under the
Management Agreement, (ii) any intention to terminate the Management Agreement pursuant to any of
the provisions set forth therein, or (iii) any proposed amendment of the Management Agreement,
along with a copy of such amendment.

(b) In the event Borrower defaults under any of the terms and conditions of the Management
Agreement, Lender shall have the right, but not the obligation, to cure such default. Manager
shall not take any action with respect to such default under the Management Agreement, including
without limitation any action in order to terminate, rescind or void the Management Agreement or to
withhold any payments thereunder, for a period of thirty days after the receipt of such written
notice from Manager to Lender (provided that in the case of any default which cannot be cured by
the payment of money and cannot with diligence be cured within such thirty-day period, if Lender
shall proceed promptly to cure the same and thereafter shall prosecute the curing of such default
with diligence and continuity, then the time within which such default may be cured shall be
extended for such period as may be necessary to complete the curing of the same).

(c) In no event shall Manager terminate the Management Agreement while Lender is proceeding
with the foreclosure of the Security Instrument or otherwise exercising its rights and/or remedies
as a result of a default of Borrower under the Security Instrument, the Note or any related
security instruments, except for the failure of Lender to perform its obligations pursuant to
Paragraph 9 above.

(d) Notwithstanding anything to the contrary contained in the Management Agreement, from and
after the occurrence of any Default by Borrower under any Loan Document, and for as long as such
Default continues uncured, Manager shall not retain any sums in excess of the amount due and owing
Manager as compensation to Manager under the Management Agreement. Any such excess sums received
by Manager attributable to the period during which a Default exists shall be held by Manager in
trust for Lender, and Manager shall deliver such excess sums to Lender immediately upon Manger’s
receipt of notice from Lender of Borrower’s default.

13. Manager hereby agrees with Lender that if Lender shall succeed to the interest of Borrower
under the Management Agreement, or if Lender shall give Manager notice of its intention to
foreclose the Security Instrument and to come into possession of the Property, as provided above,
Lender shall not be:

(a) liable for any omission of Borrower under the Management Agreement; or

(b) subject to any offsets or defenses which Manager might have against Borrower; or

(c) liable for any management fees or other amounts due to Manager from Borrower for any
period prior to the date when Lender succeeds to the interest of Borrower under the Management
Agreement; or

(d) bound by any amendment or modification of the Management Agreement made without Lender’s
prior written consent.

14. All rights and remedies of Lender expressed herein are in addition to all other rights and
remedies possessed by it, including those under any other Loan Document. No delay on the part of
Lender in the exercise of any right or remedy shall operate as a waiver thereof, and no single or
partial exercise by Lender of any right or remedy shall preclude other or future exercises thereof
or the exercise of any other right or remedy. No action of Lender permitted hereunder shall impair
or affect the rights of Lender in and to the Management Agreement.

15. This Agreement shall bind and inure to the benefit of the parties hereto, their successors
and assigns. The words “foreclosure” and “foreclosure sale” as used herein shall be deemed to
include the acquisition of Borrower’s estate in the Property by voluntary deed (or assignment) in
lieu of foreclosure, by power of sale, or otherwise. The word “Lender” shall include Lender as
herein specifically named and any of its successors and assigns, including any person or entity who
shall have succeeded to Borrower’s interest in the Property by, through or under foreclosure of the
Security Instrument. The word “Borrower” shall include Borrower as herein specifically named and
any of its successors and assigns.

16. This Agreement shall not be modified or amended except in a writing signed by all parties
hereto. This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter herein contained.

17. The use of the neuter gender in this Agreement shall be deemed to include any other
gender, and words in the singular number shall be held to include the plural, when the context
requires.

18. In order for any demand, consent, approval or other communication to be effective under
the terms of this Agreement, “Notice” must be provided under the terms of this Section. All Notices
must be in writing. Notices may be (a) delivered by hand, (b) transmitted by facsimile (with a
duplicate copy sent by first class mail, postage prepaid), (c) sent by certified or registered
mail, postage prepaid, return receipt requested, or (d) sent by reputable overnight courier
service, delivery charges prepaid. Notices shall be addressed as set forth below:

If to Borrower:

Apartment REIT Residences at Braemar, LLC

c/o Triple Net Properties, LLC

1606 Santa Rosa Drive, Suite 109

Richmond, Virginia 23229

Attention: Jorge Figueiredo

Fax Number: (804) 285-1376

If to Lender:

Transamerica Occidental Life Insurance Company

c/o AEGON USA Realty Advisors, Inc.

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499-5443

Attention: Mortgage Loan Department

Reference: Loan # 89441

Fax Number: (319) 369-2277

If to Manager:

Triple Net Properties, LLC

1606 Santa Rosa Drive, Suite 109

Richmond, Virginia 23229

Attention: Jorge Figueiredo

Fax Number: (804) 285-1376

Notices delivered by hand or by overnight courier shall be deemed given when actually received or
when refused by their intended recipient. Faxed Notices will be deemed delivered when a legible
copy has been received (provided receipt has been verified by telephone confirmation or one of the
other permitted means of giving Notices under this Section). Mailed Notices shall be deemed given
on the date of the first attempted delivery (whether or not actually received). Any party to this
Agreement may change its address for Notice by giving at least fifteen (15) Business Days’ (as
defined in the Security Instrument) prior Notice of such change to the other parties.

19. This instrument shall be governed by, construed and enforced according to the laws of the
State of North Carolina (without reference to any provision for choice of law). Wherever possible
each provision of this instrument shall be interpreted in such a manner as to be effective and
valid under applicable law, but if such provision of this instrument shall be prohibited by or
invalidated under such law, such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or the remaining provisions of
this instrument.

20. This instrument may be executed in any number of counterparts, each of which shall be
deemed to be an original and all of which together shall constitute but a single instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first
above written.

BORROWER:

APARTMENT REIT RESIDENCES AT BRAEMAR, LLC, a North
Carolina limited company

By:

Name:

Title:

MANAGER:

TRIPLE NET PROPERTIES REALTY, INC., a California

corporation

	 	 	 	By:
     , a
     , as      

     

By:

Name:

Title:

[Signatures continue on following pages.]

1

LENDER:

TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY, an
Iowa corporation

By:

2EX-10.10

UNSECURED PROMISSORY NOTE (this “Note”)

$3,300,000

June 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 Three
Million Three Hundred Thousand Dollars ($3,300,000).

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

	 	 	 
	By:

	 	/s/ Shannon K S Johnson
	
 
	 	 
	Its:

	 	Chief Financial Officer
	
 
	 	 

	 	 	Address: 1551 N. Tustin Avenue, Suite 200

Santa Ana, CA 92705

“Lender”

NNN REALTY ADVISORS, Inc., a Delaware
corporation

	 	 	 
	By:

	 	/s/ Francene La Point
	
 
	 	 
	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

	 	August 1, 2007.
	 

	 	 
	Maturity Date

	 	December 29, 2007.
	 

	 	 
	Interest Rate

	 	6.85% per annum.
	 

	 	 
	Default Interest Rate

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

Interest Rate.
	 

	 	 

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