Document:

EXHIBIT 10.5
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           ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTERESTS
           -------------------------------------------------

     THIS ASSIGNMENT (this "Assignment") is made and entered into as of
the 25th day of August, 2003, by and between THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA, a New Jersey corporation ("Assignor"), and AMLI
RESIDENTIAL PROPERTIES, L.P., a Delaware limited partnership ("Assignee").

                               RECITALS
                               --------

     A.    Assignor owns 80% of the membership interests, and Assignee
owns 20% of the membership interests, in Landmark on Spring Mill LLC, a
Delaware limited liability company (the "Company"), pursuant to that
certain Operating Agreement of Landmark on Spring Mill LLC dated as of
April 15, 1999 (the "Operating Agreement"; capitalized terms used herein
and not defined herein shall have the meanings given them in the Operating
Agreement).

     B.    The Company owns real property located in Washington Township,
Hamilton County, Indiana, upon which the Company owns, operates and manages
an apartment community known as Landmark on Spring Mill (the "Community").

     C.    Assignor desires to assign and Assignee desires to acquire all
of Assignor's right, title and interest in Assignor's membership interests
in the Company (the "Assigned Interests") and all interests, rights and
obligations under the Operating Agreement with respect to the Assigned
Interests only, as hereinafter provided.

           NOW, THEREFORE, in consideration of the foregoing Recitals, and
the warranties and mutual covenants set forth herein, Assignor and Assignee
hereby agree as follows:

           1.    ASSIGNMENT OF ASSIGNED INTERESTS.  Assignor hereby sells,
assigns, transfers, conveys and delivers to Assignee, free and clear from
any liens, encumbrances or defects of title, and Assignee hereby accepts,
acquires and takes assignment and delivery of, the Assigned Interests,
including, but not limited to, all right, title and interest in and to the
properties (real and personal), capital, cash flow distributions, profits
and losses of the Company relating or allocable to the Assigned Interests.

           2.    PURCHASE PRICE.  In consideration of the sale,
assignment, transfer, conveyance and delivery of the Assigned Interests,
upon execution hereof Assignee shall pay to Assignor cash in the amount of
$30,000,000 (the "Purchase Price"). The Purchase Price, plus or minus, as
applicable, the amount of the estimated prorations determined in accordance
with Section 5(a) below and as set forth on Schedule A. shall be paid by
wire transfer to such account as shall be provided in writing by Assignor;
provided, however, that such payment shall be deposited to Assignor's
designated account no later than 11:00 a.m., Chicago Time, on the Effective
Date; and provided further, that if such payment is not received by
Assignor prior to 11 a.m., Chicago Time, on the Effective Date, the parties
shall recalculate the proration amounts pursuant to Section 5(a) as of the
day following the Effective Date, and such later date shall be the
"Effective Date" for purposes of this Assignment.

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           3.    EFFECTIVE DATE.  The assignment herein made is effective
as of the date of this Assignment, as may be adjusted pursuant to Section 2
above (the "Effective Date").

           4.    CASH FLOW DISTRIBUTIONS.  On or before the Effective
Date, all Operating Cash Flow and Extraordinary Cash Flow of the Company
for periods ending prior to the Effective Date and which have not
previously been distributed, shall be distributed to Assignor in accordance
with the Operating Agreement.

           5.    PRORATIONS.

           (a)   On the Effective Date, Assignor and Assignee shall agree
     upon the estimated proration amounts determined in accordance with
     Section 5(b), and such estimated proration amounts shall be, as
     applicable, added to or deducted from, the Purchase Price as set
     forth in Schedule A hereto.

           (b)   On or before October 31, 2003, and in accordance with
     Sections 5(c) below, Assignor and Assignee shall agree upon final
     proration amounts for the items set forth in Sections 5(b)(2),
     5(b)(3) and 5(b)(4) below. As soon as practicable after final bills
     for Taxes (as defined below) become available, but in no event later
     than August 31, 2004, Assignor and Assignee shall agree upon the
     final proration amounts for Taxes, as determined in accordance with
     Section 5(b)(1) below. For purposes of making the prorations, the
     Effective Date shall belong to Assignee and all prorations
     hereinafter provided to be made as of the Effective Date shall each
     be made as of the end of the day before the Effective Date. In each
     such proration set forth below, the portion thereof applicable to
     periods beginning as of the Effective Date shall be credited or
     charged to Assignee and the portion thereof applicable to periods
     ending immediately prior to the Effective Date shall be credited or
     charged to Assignor. Assignor shall have reasonable access to, and
     the right to inspect and audit, at its own cost and expense, the
     Company's books to confirm the final prorations, and Assignee shall
     cooperate, and shall cause the Company to cooperate, with Assignor in
     good faith with respect to such inspections and audits.

                 1.   TAXES AND ASSESSMENTS.  General real estate taxes
           and assessments imposed by governmental authority and any
           assessments imposed by private covenant constituting a lien or
           charge on the Community for all tax periods through and
           including the then current calendar year or other current tax
           period (collectively, "Taxes") not yet due and payable shall be
           prorated, based upon the number of days in the applicable
           period.

                 2.   COLLECTED RENT.  All collected rent and other
           collected income (and any applicable state or local tax on
           rent) under apartment leases in effect on the Effective Date
           shall be prorated based upon the number of days in the month.
           Uncollected rent and other income shall not be prorated;
           provided, however, that rent collected after the Effective Date
           which relates to periods prior to the Effective Date shall be
           prorated. Assignee agrees to make all reasonable efforts to
           collect, and to cause the Company to collect, any rents
           applicable to the period prior to the Effective Date. Any
           prepaid rents for the period on or after the Effective Date
           shall be credited to Assignee.

                                   2

<PAGE>

                 3.   UTILITIES.  Utilities, including water, sewer,
           electric, and gas shall be prorated based upon usage of such
           utilities, as shown by the last reading of meters prior to the
           Effective Date. The Company shall endeavor to obtain meter
           readings on the day before the Effective Date, and if such
           readings are obtained, the proration of such items shall be
           based upon such readings.

                 4.   FEES AND CHARGES UNDER SERVICE CONTRACTS. Fees and
           charges under contracts for the provision of services to the
           Company based upon the periods to which such service contracts
           relate (e.g., telephone, internet services, lawn maintenance,
           cleaning, etc.) shall be prorated based upon the number of
           days in the applicable period. Fees and charges for services
           not in the nature of regular or periodic services (e.g.,
           building repairs) shall not be prorated.

                 5.   DEPOSITS.  Nonrefundable deposits held by the
           Company which have not yet been recognized as income by the
           Company (i.e., amounts received in the current month) shall be
           prorated based upon the number of days in the month. Items
           already recognized as income by the Company in prior periods
           shall not be prorated.

           (c)   After each of the final prorations is completed and
     agreed upon by the parties, the final proration amounts shall be
     reconciled with the estimated proration amounts that were added to or
     deducted from the Purchase Price on the Effective Date pursuant to
     Section 2. If as a result of such reconciliation: (i) amounts are
     owed by Assignor to Assignee in excess of the estimated proration
     amounts, then Assignor shall pay such amounts to Assignee; or (ii) if
     amounts are owed by Assignee to Assignor in excess of the estimated
     proration amounts, then Assignee shall pay such amounts to Assignor.
     In either case, payment shall be made as soon as practicable (but in
     no event later than 15 days) after such agreement is reached.

           (d)   With respect to the final proration of Taxes, in the
     event Assignee shall decide to appeal a final tax bill with the
     appropriate governmental agency, the parties shall nonetheless agree
     upon the proration of such final tax bill and shall reconcile such
     proration in accordance with Section 5(c) above. Thereafter,
     notwithstanding anything to the contrary contained in this Section 5,
     if such appeal results in a refund of Taxes paid by the Company, then
     such refund shall be prorated as agreed upon by the parties, and
     payment of Assignor's prorated portion of such refund shall be made
     as soon as practicable (but in no event later than 15 days) after
     such agreement is reached.

     6.    REPRESENTATIONS OF ASSIGNOR.  Assignor hereby represents and
warrants to Assignee that:

           (a)   Assignor is duly organized and validly existing under the
     laws of the state of its organization and has been duly authorized by
     all necessary and appropriate action to enter into this Assignment
     and to consummate the transactions contemplated hereby.   This
     Assignment is a valid and binding obligation of Assignor, enforceable
     against Assignor in accordance with its terms, except insofar as
     enforceability may be affected by bankruptcy, insolvency or similar
     laws affecting creditor's rights generally and the availability of
     any particular equitable remedy.

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<PAGE>

           (b)   Assignor is the record and beneficial owner of all of the
     Assigned Interests, free and clear of any lien, claim, option, call,
     right of first refusal, charge, encumbrance, restriction on transfer
     (other than any restriction under the Securities Act of 1933, as
     amended, or state securities or "blue sky" laws) or other right of
     any other party, except as expressly provided in the Operating
     Agreement. The Assigned Interests represent all of Assignor's
     ownership interest in the Company.

           (c)    Assignor's execution and delivery of this Assignment,
     its performance of its obligations hereunder and its consummation and
     the validity of the transactions contemplated hereby do not require
     it to obtain any consent, approval or action of, or make any filing
     with or give any notice to, any corporation, person or firm or any
     public, governmental or regulatory body or judicial authority, which
     has not previously been obtained.

           (d)   (i)  Assignor meets the requirements of a "qualified
     professional asset manager" as defined in Part V(a) of Prohibited
     Transaction Exemption 84-14 granted by the U.S. Department of Labor
     ("PTE 84-14"); (ii) Assignor is entering into this Assignment on
     behalf of an "investment fund" as described in Part V(b) of PTE
     84-14; (iii) the terms of this Assignment have been negotiated on
     behalf of the investment fund by the Assignor and the Assignor has
     made the decision on behalf of the investment fund to enter into this
     Assignment; (iv) the terms of this Assignment have been negotiated
     and determined at arm's length, as such terms would be negotiated and
     determined by unrelated parties; and (v) neither the Assignor nor any
     affiliate (as defined in Part V(d) of PTE 84-14) thereof, nor any
     owner, direct or indirect, of a five percent or more interest in the
     Assignor, has, within the previous ten years, been convicted or
     released from imprisonment as a result of the crimes set forth in
     Part I(g) of PTE 84-14.

     7.    REPRESENTATIONS OF ASSIGNEE.  Assignee hereby represents and
warrants to Assignor that:

           (a)   Assignee is duly organized and validly existing under the
     laws of the state of its organization and has been duly authorized by
     all necessary and appropriate action to enter into this Assignment
     and to consummate the transactions contemplated hereby. This
     Assignment is a valid and binding obligation of Assignee, enforceable
     against Assignee in accordance with its terms, except insofar as
     enforceability may be affected by bankruptcy, insolvency or similar
     laws affecting creditor's rights generally and the availability of
     any particular equitable remedy.

           (b)   Assignee's execution and delivery of this Assignment, its
     performance of its obligations hereunder and its consummation and the
     validity of the transactions contemplated hereby do not require it to
     obtain any consent, approval or action of, or make any filing with or
     give any notice to, any corporation, person or firm or any public,
     governmental or regulatory body or judicial authority, which has
     not previously been obtained.

           (c)     Neither Assignee nor any of its affiliates (within the
     meaning of Part V(c) of PTE 84-14) has, or during the immediately
     preceding year has exercised, the authority to appoint or terminate
     Assignor as investment manager of any assets of the employee benefit
     plans whose assets are held by Assignor or to negotiate the terms of
     any management agreement with Assignor on behalf of any such plan.

           (d)   The transaction contemplated by this Assignment is not
     specifically excluded by Part I(b) of PTE 84-14.

                                   4

<PAGE>

           (e)   Assignee is not a related party of Assignor (as defined
     in V(h) of PTE 84-14).

           (f)   The terms of this Assignment have been negotiated and
     determined at arm's length, as such terms would be negotiated and
     determined by unrelated parties.

     8.    ASSUMPTION BY ASSIGNEE.  Assignee hereby: (i) accepts the
Assigned Interests and all rights of Assignor under the Operating Agreement
in respect thereof; and (ii) assumes (A) all of the liabilities,
obligations and duties of Assignor and the Company as they relate to the
Assigned Interests accruing on or after the Effective Date and (B) all of
the liabilities, obligations and duties of Assignor and the Company under
the Operating Agreement in respect of the Assigned Interests, accruing on
or after the Effective Date, and agrees to be bound by the provisions
thereof with respect thereto. In no event shall the liabilities,
obligations or duties assumed by Assignee include any federal or state
income tax liabilities of Assignor relating to the Company or the Assigned
Interests incurred or accrued, whether known or unknown, as of the
Effective Date.

     9.    NO BROKERS.  No broker, finder or similar intermediary has
acted for or on behalf of, or is entitled to any broker's, finder's or
similar fee or other commission from, Assignor or Assignee or any of their
respective Affiliates in connection with this Assignment or the
transactions contemplated hereby.

     10.   FURTHER ASSURANCES.  Each party, at its sole cost and expense,
upon request of the other party, shall execute and deliver such further
instruments and do or cause to be done such further acts as may be
necessary to be done by such party to effectuate and confirm the assignment
of the Assigned Interests.

     11.   MUTUAL RELEASE.

           (a)   As of the Effective Date, except as explicitly provided
     in this Assignment, Assignor, on its behalf and on behalf of each of
     its Affiliates and each of their respective representatives, agents,
     successors, assigns, officers, directors, members, managers,
     employees and each of them (collectively, the "Assignor Parties")
     hereby irrevocably waives, releases and discharges, absolutely and
     forever, Assignee, the Company and each of their Affiliates from any
     and all liabilities to Assignor or the other Assignor Parties of any
     kind and nature whatsoever, fixed or contingent, known or unknown,
     asserted or unasserted (including in respect of any rights of
     contribution or indemnification), in respect of facts, events,
     circumstances or conditions arising from or relating to the Company,
     the Assigned Interests, the Community or the Operating Agreement.

           (b)   As of the Effective Date, except as explicitly provided
     in this Assignment, each of Assignee and the Company, on its behalf
     and on behalf of each of their respective Affiliates and each of
     their respective representatives, agents, successors, assigns,
     officers, directors, members, managers, employees and each of them
     (collectively, the "Assignee Parties") hereby irrevocably waives,
     releases and discharges, absolutely and forever, Assignor and each of
     its Affiliates, from any and all liabilities to Assignee, the Company
     or the other Assignee Parties of any kind and nature whatsoever,
     fixed or contingent, known or unknown, asserted or unasserted
     (including in respect of any rights of contribution or
     indemnification), in respect of facts, events, circumstances or
     conditions arising from or relating to the Company, the Assigned
     Interests, the Community or the Operating Agreement.

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<PAGE>

           (c)   Notwithstanding anything to the contrary in paragraphs
     (a) and (b) above, nothing in this Section 11 shall be construed as a
     waiver or release by or in favor of either party with respect to any
     rights either of them may have pursuant to this Assignment.

     12.   SUCCESSORS AND ASSIGNS.  This Assignment shall be binding upon
and inure to the benefit of Assignor and Assignee and the respective heirs,
legal representatives, successors and assigns of each.

     13.   SURVIVAL OF REPRESENTATIONS.  The representations, warranties,
covenants, indemnities and agreements of the parties contained in this
Assignment are the only such terms made or relied upon by the parties and
shall survive the consummation of the transactions contemplated hereby.

     14.   MODIFICATION AND WAIVER.  No supplement, modification, waiver
or termination of this Assignment or any provision hereof shall be binding
unless executed in writing by the parties to be bound thereby. No waiver of
any of the provisions of this Assignment shall constitute a waiver of any
other provision (whether or not similar), nor shall such waiver constitute
a continuing waiver unless otherwise expressly provided.

     15.   GOVERNING LAW. This Assignment shall be construed and enforced
in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed entirely within said state.

     16.   RECOURSE TO AMLI.  ANYTHING CONTAINED HEREIN TO THE CONTRARY
NOTWITHSTANDING, NO PERSONAL LIABILITY OR PERSONAL DEFICIENCY JUDGMENT
SHALL BE ASSERTED OR ENFORCED AGAINST ANY PARTNERS OF ASSIGNEE, AGAINST THE
TRUSTEES, OFFICERS, EMPLOYEES, AGENTS, PARTNERS, SHAREHOLDERS OR PRINCIPALS
OF SUCH PARTNERS, OR AGAINST THE ASSETS OF ANY SUCH PARTES, FOR PAYMENT OF
ANY AMOUNT HEREUNDER OR FOR OBSERVANCE OR PERFORMANCE OF ANY OF THE
OBLIGATIONS OF ASSIGNEE OR THE COMPANY. NOTHING CONTAINED ABOVE SHALL LIMIT
THE REMEDIES AGAINST ANY PERSON FOR SUCH PERSON'S FRAUD OR INTENTIONAL
MISCONDUCT, IN WHICH EVENT SUCH REMEDIES SHALL BE DETERMINED BY APPLICABLE
LAW.

     17.   TAX MATTERS.  On the Effective Date, there shall be an interim
closing of the Company's books and all items of the Company's Profits and
Losses for the current fiscal year up to (but not including) the Effective
Date shall be allocated to Assignor and Assignee in accordance with the
Operating Agreement. Assignee shall cause the Company to prepare the tax
return of the Company for the portion of the current fiscal year up to (but
not including) the Effective Date (the "Termination Tax Return") as a
result of the termination of the Company for tax purposes under Section
708(b)(l)(B) of the Internal Revenue Code of 1986, as amended. Assignee
shall provide Assignor with a copy of the Termination Tax Return for
Assignee's review and approval (which shall not be unreasonably withheld or
delayed) prior to filing such return with the Internal Revenue Service.
Assignor and Assignee shall each file all required federal, state and local
income tax returns and related returns and reports in a manner consistent
with the foregoing and as required by law. Assignee hereby waives its right
to indemnification under Section 10.1(c) of the Operating Agreement with
respect to the transfer of the Assigned Interests contemplated by this
Assignment.

     18.   OPERATING AGREEMENT PROVISIONS.  Assignor and Assignee and
agree that the assignment of the Assigned Interests contemplated by this
Assignment is not pursuant to Section 10.3, 10.4 or 10.5(d) of the
Operating Agreement, and that the provisions of Section 10.7 of the
Operating Agreement shall not apply to the assignment of the Assigned
Interests. With respect to the assignment of the Assigned Interests, in the
event of any inconsistency or conflict between the terms of the Operating
Agreement and the express terms of this Assignment, the terms of this
Assignment shall control.

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<PAGE>

     19.   INDEMNIFICATION.

           (a)   Assignee shall indemnify, defend and hold Assignor
     harmless for, from and against any and all actions, causes of action
     or suits brought against it by third parties (each, a "Third Party
     Claim") for liabilities, losses, costs, damages and expenses,
     including, without limitation, reasonable attorneys fees and other
     reasonable costs incurred in the investigation, defense and
     settlement of the matter (collectively, the "Damages") arising from
     such Third Party Claim, suffered or incurred by Assignor in respect
     of any facts, events, circumstances or conditions occurring, arising
     from or relating to the Company, the Assigned Interests, the
     Community or the Operating Agreement, except to the extent such
     Damages are caused by the gross negligence, willful misconduct or
     fraud of Assignor.

           (b)   Assignor shall notify Assignee in writing of a Third
     Party Claim as promptly as practicable; provided, that the failure of
     Assignor to give notice shall not relieve Assignee of its obligations
     under this Section 19 except to the extent (if any) that Assignee
     shall have been prejudiced thereby. Assignee may, at its election and
     own expense, upon notice to Assignor, assume the defense thereof. If
     Assignee assumes such defense, Assignor shall have the right (but not
     the obligation) to participate in the defense thereof and to employ
     counsel, at its own expense, separate from the counsel employed by
     Assignee. If Assignee assumes such defense, Assignor agrees to give
     Assignee full authority to defend the Third Party Claim; provided,
     however, that Assignee shall have no authority to enter into any
     settlement without Assignor's express prior written consent.  Whether
     or not Assignee chooses to defend or prosecute any such Third Party
     Claim, each of the parties hereto shall cooperate in the defense or
     prosecution thereof.

     20.   DISCLAIMER.  Assignor has not made, and Assignee acknowledges
that Assignor has not made, any warranty or representation, express or
implied, written or oral, statutory or otherwise concerning or relating to
the Company or Community, including, but not limited to, the following: (i)
the condition of title to the Community; (ii) the nature, physical
condition, safety or other aspect of the Community or any component
thereof, including without limitation, plumbing, sewer, heating,
ventilation, electrical systems, roofing, air conditioning, foundations,
soils and geology; (iii) the income or expense as generated, paid or
incurred in connection with the Community or Company, or other economic
status of the Community or the Company; (iv) the accuracy of any
statements, calculations or conditions stated or set forth in any
documents, instruments, agreements to which Company is a party, which are
binding on Company or the Community, or which relate or are applicable to
the Community or Company, including, but not limited to, title policies,
surveys, floor plans, leases, service contracts, vendor agreements,
reports, environmental assessments, soils reports, rent rolls, pro formas,
revenue and expense projections and other Company and Community books and
records (the "Company Materials"); (v) the suitability of the Community for
any intended use, including, without limitations, as depicted on the
Company Materials; (vi) the dimensions of the Community or lot size; (vii)
the status or compliance of the Company or Community with any of the
Company Materials; (viii) the status of and compliance with the current
zoning or governmental approvals of the Community; (ix) the compliance of
the Company with any federal, state or local laws, ordinances, statutes,
rules and regulations; (x) the existence or absence of Hazardous Materials
(as defined below) or mold or other microbial agent or matter in, on,
about, under or affecting the Community; (xi) the compliance of the
Community with Hazardous Waste Laws (as defined below) or any other
federal, state or local laws, ordinances, statutes, rules or regulations
including, without limitation the Fair Housing Act Amendments of 1988 and

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<PAGE>

the Americans with Disabilities Act; or (xii) the merchantability,
habitability or fitness of the Community or any portion thereof for any
particular purpose. The term "Hazardous Materials" shall mean any
substance, chemical, waste or material that is or becomes regulated by any
federal, state or local governmental authority because of its toxicity,
infectiousness, radioactivity, explosiveness, ignitability, corrosiveness
or reactivity including, without limitation, those substances regulated by
any hazardous waste laws. For purposes of this agreement, "Hazardous
Materials Laws" means any local, federal or state statute, ordinance, code,
law, rule or regulation relating to environmental contamination, petroleum
products, asbestos and pollutants. As a result. Assignee is acquiring the
Assigned Interests with the understanding that the Community and other
assets of the Company are in their "AS IS," "WHERE IS" and "WITH ALL
FAULTS" condition.

     21.   ATTORNEYS FEES.  If any suit is brought by either party to this
Assignment against the other regarding the subject matter hereof, the
prevailing party shall be entitled to recover, in addition to any other
relief granted, reasonable attorneys fees and expenses of litigation.

     22.   ENTIRE AGREEMENT.  This Assignment contains all of the
understandings and agreements of whatsoever kind and nature existing
between Assignor and Assignee with respect to the subject matter hereof,
and any and all other prior agreements between the parties with respect to
such subject matter are hereby superseded.

     23.   HEADINGS.  All headings used herein are inserted for
convenience and ease of reference only and shall not be considered in the
construction or interpretation of any provision of this Assignment.

     24.   SEVERABILITY. If any provisions of this Assignment shall be
held by a court of competent jurisdiction to be contrary to law or public
policy, or otherwise unenforceable, the remaining provisions shall remain
in full force and effect and a court of competent jurisdiction shall supply
a provision or provisions to replace the affected provision(s) which most
closely approximates the original intent of the parties.

                         *    *    *    *    *

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<PAGE>

     IN WITNESS WHEREOF, this Assignment is executed as of the day and
year first above written.

                      ASSIGNOR:
                      --------

                      THE PRUDENTIAL INSURANCE
                      COMPANY OF AMERICA

                      By:   /s/ Damian P. Manolis
                            ------------------------------
                            Name:  Damian P. Manolis
                            Title: Vice President

                      ASSIGNEE:
                      --------

                      AMLI RESIDENTIAL PROPERTIES, L.P.

                      By:   AMLI Residential Properties Trust,
                            Its general member

                            By:   AMLI Residential Properties Trust,
                                  Its general partner

                                  By:  /s/ Fred Shapiro
                                       ------------------------------
                                       Name:  Fred Shapiro
                                       Title: Senior Vice President

                      For purposes of Section 11(b) only:
                      ----------------------------------

                      LANDMARK ON SPRING MILL LLC

                      By:   The Prudential Insurance Company of America,
                            A member

                            By:
                                  ------------------------------
                                  Name:  Damian P. Manolis
                                  Title: Vice President

                                   9

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                              SCHEDULE A

                     Calculation of Purchase Price

Company Value                                       $30,000,000.00

Assignor's economic interest (1)                              100%

Purchase Price for Assignor's membership interest   $30,000,000.00

LESS:  Assignor's estimated pro rata share of the
       Company's income and expenses as of
       the Effective Date determined in accordance
       with Section 5(a) of the Assignment          $   669,476.96

Net cash amount to be paid to Assignor by
  Assignee on the Effective Date                    $29,330,523.04

     (1)    Assignor's percentage interest equals 80%.

                                  10EXHIBIT 10.6
------------

           ASSIGNMENT AND ASSUMPTION OF MEMBERSHIP INTERESTS
           -------------------------------------------------

     THIS ASSIGNMENT (this "Assignment") is made and entered into as of
the 31st day of October, 2003, by and between OTR, an Ohio general
partnership acting as duly authorized nominee on behalf of the State
Teachers Retirement Board of Ohio ("Assignor"), and AMLI RESIDENTIAL
PROPERTIES, L.P., a Delaware limited partnership ("Assignee").

                               RECITALS
                               --------

     A.    Assignor owns 90% of the membership interests, and Assignee
owns 10% of the membership interests, in Amli at Danada L.L.C, an Illinois
limited liability company (the "Company"), pursuant to that certain
Operating Agreement of Amli at Danada L.L.C. dated as of February 28, 1997
(the "Operating Agreement"); capitalized terms used herein and not defined
herein shall have the meanings given them in the Operating Agreement).

     B.    The Company owns real property located in Wheaton, Illinois,
upon which the Company owns, operates and manages an apartment community
known as Amli at Danada Farms (the "Community").

     C.    Assignor desires to assign and Assignee desires to acquire all
of Assignor's right, title and interest in Assignor's membership interests
in the Company (the "Assigned Interests") and all interests, rights and
obligations under the Operating Agreement with respect to the Assigned
Interests only, as hereinafter provided.

           NOW, THEREFORE, in consideration of the foregoing Recitals, and
the warranties and mutual covenants set forth herein, Assignor and Assignee
hereby agree as follows:

           1.    ASSIGNMENT OF ASSIGNED INTERESTS.  Assignor hereby sells,
assigns, transfers, conveys and delivers to Assignee, free and clear from
any liens, encumbrances or defects of title, and Assignee hereby accepts,
acquires and takes assignment and delivery of the Assigned Interests,
including, but not limited to, all right, title and interest in and to the
properties (real and personal), capital, cash flow distributions, profits
and losses of the Company relating or allocable to the Assigned Interests.

           2.    PURCHASE PRICE.  In consideration of the sale,
assignment, transfer, conveyance and delivery of the Assigned Interests,
upon the execution hereof Assignee shall pay to Assignor cash in the amount
of $41,890,453.10, determined in accordance with SCHEDULE A hereto (the
"Purchase Price"). The Purchase Price is based upon a total Company value
of $71,000,000, less outstanding debt as of the Effective Date and
Assignor's pro rata portion of real estate taxes and certain other costs
that relate to periods prior to the Effective Date that have been incurred
but not yet paid by the Company. The Purchase Price shall be paid by wire
transfer to such account as shall be provided in writing by Assignor.

           3.    EFFECTIVE DATE.  The assignment herein made is effective
as of the date of this Assignment (the "Effective Date"), For all periods
up to, but not including, the Effective Date, that portion of the net
profits or net losses of the Company that are allocable to the Assigned
Interests in accordance with the Operating Agreement shall be credited,
charged or distributed, as the case may be, to Assignor and not to Assignee
and, for all periods from and after the Effective Date, that portion of the
net profits or net losses of the Company allocable to the Assigned
Interests shall be credited, charged or distributed, as the case may be, to
Assignee and not to Assignor.

                                   1

<PAGE>

           4.    PRORATIONS.

           (a)   On or prior to February 26, 2004, Assignor and Assignee
     shall agree upon the prorations set forth in this Section 4. Any
     payments owing as a result of such prorations shall be made as soon
     as reasonably practicable after such agreement is reached. For
     purposes of making the prorations, the Effective Date shall belong to
     Assignee and all prorations hereinafter provided to be made as of the
     Effective Date shall each be made as of the end of the day before the
     Effective Date. In each such proration set forth below, the portion
     thereof applicable to periods beginning as of the Effective Date
     shall be credited or charged to Assignee and the portion thereof
     applicable to periods ending immediately prior to the Effective Date
     shall be credited or charged to Assignor.

                 1.   TAXES AND ASSESSMENTS.  General real estate taxes
           and assessments imposed by governmental authority and any
           assessments imposed by private covenant constituting a lien or
           charge on the Community for all tax periods through and
           including the then current calendar year or other current tax
           period (collectively, "Taxes") not yet due and payable shall
           be prorated; provided, however, that an initial estimated
           proration of Taxes for all periods prior to the Effective Date
           has been reflected in the Purchase Price as set forth on
           Schedule A hereto. If a final tax bill for any period is
           available prior to the proration under this Section 4(a), the
           Taxes for such period shall be allocated on a fair and
           equitable basis according to this Section 4(a) as a final
           proration, with a final and complete proration of Taxes for all
           other tax periods, for which final tax bills are not available
           prior to the proration under this Section 4(a), to be made
           pursuant to Section 4(b); provided, that, if the final tax
           bills for all periods are available prior to the proration
           under this Section 4(a), the Taxes and all other items to be
           prorated shall be allocated on a fair and equitable basis
           according to this Section 4(a) as a final proration.

                 2.   COLLECTED RENT.  All collected rent and other
           collected income (and any applicable state or local tax on
           rent) under apartment leases in effect on the Effective Date
           shall be prorated. Uncollected rent and other income shall not
           be prorated. Assignee agrees to make all reasonable efforts to
           collect, and to cause the Company to collect, any rents
           applicable to the period prior to the Effective Date. Such
           rents paid by tenants on or after the Effective Date relating
           to their occupancy of the Community prior to the Effective Date
           shall be prorated on an if, as and when collected basis.  Any
           amount collected by Assignee on or after the Effective Date
           from tenants who owe rent for periods prior to the Effective
           Date shall be applied (i) first, in payment of rent for the
           period (if any) after the month in which the Effective Date
           occurs through the end of the month in which such amount is
           collected if the rent for such month is then due and payable
           (ii) second, in payment of rent for the month in which the
           Effective Date occurs, and (iii) third, in payment of rent for
           the months preceding the month in which the Effective Date
           occurs to the extent rent for such months preceding the
           Effective Date remains unpaid. Any prepaid rents for the period
           on or after the Effective Date shall be credited to Assignee.

                 3.   UTILITIES.  Utilities, including water, sewer,
           electric, and gas based upon the last reading of meters prior
           to the Effective Date shall be prorated. The Company shall
           endeavor to obtain meter readings on the day before the
           Effective Date, and if such readings are obtained, the
           proration of such items shall be based upon such readings.

                                   2

<PAGE>

                 4.   FEES AND CHARGES UNDER SERVICE CONTRACTS.  Fees
           and charges under contracts for the provision of services to
           the Company based upon the periods to which such service
           contracts relate shall be prorated.

                 5.   DEPOSITS.  Nonrefundable deposits or other cash
           held by the Company which would be available for distribution
           to the Members if the Company were to be liquidated shall be
           prorated.

           (b)   If a final proration with respect to any Taxes cannot be
     made under this Section 4 on or before February 26, 2004, then
     Assignee and Assignor agree to perform a final proration of such
     Taxes and any other remaining undetermined items on a fair and
     equitable basis as soon as the applicable tax bills for such tax
     periods are available, with final adjustment to be made as soon as
     reasonably possible thereafter. Payments in connection with the final
     adjustment shall be made as soon as reasonably practicable after such
     final adjustment is agreed upon.

           (c)   Assignor shall have reasonable access to, and the right
     to inspect and audit, the Company's books to confirm the prorations.
     Any such audit shall be at Assignor's sole cost and expense.

     5.    REPRESENTATIONS OF ASSIGNOR.  Assignor hereby represents and
warrants to Assignee that:

           (a)   Assignor is duly organized and validly existing under the
     laws of the state of its organization and has been duly authorized by
     all necessary and appropriate action to enter into this Assignment
     and to consummate the transactions contemplated hereby. This
     Assignment is a valid and binding obligation of Assignor, enforceable
     against Assignor in accordance with its terms, except insofar as
     enforceability may be affected by bankruptcy, insolvency or similar
     laws affecting creditor's rights generally and the availability of
     any particular equitable remedy.

           (b)   Assignor is the record and beneficial owner of all of the
     Assigned Interests, free and clear of any lien, claim, option, call,
     right of first refusal, charge, encumbrance, restriction on transfer
     (other than any restriction under the Securities Act of 1933, as
     amended, or state securities or "blue sky" laws) or other right of
     any other party. The Assigned Interests represent all of Assignor's
     ownership interest in the Company,

           (c)   Assignor's execution and delivery of this Assignment,
     its performance of its obligations hereunder and its consummation
     and the validity of the transactions contemplated hereby do not
     require it to obtain any consent, approval or action of, or make any
     filing with or give any notice to, any corporation, person or firm,
     or any public, governmental or regulatory body or judicial authority,
     which has not previously been obtained, provided that Assignor makes
     no representation or warranty regarding any consent required to be
     obtained from the Prudential Insurance Company of America with
     respect to this Agreement.

     6.    REPRESENTATIONS OF ASSIGNEE.  Assignee hereby represents and
warrants to Assignor that:

           (a)   Assignee is duly organized and validly existing under the
     laws of the state of its organization and has been duly authorized by
     all necessary and appropriate action to enter into this Assignment
     and to consummate the transactions contemplated hereby. This
     Assignment is a valid and binding obligation of Assignee, enforceable
     against Assignee in accordance with its terms, except insofar as
     enforceability may be affected by bankruptcy, insolvency or similar
     laws affecting creditor's rights generally and the availability of
     any particular equitable remedy.

                                   3

<PAGE>

           (b)   Assignee's execution and delivery of this Assignment,
     its performance of its obligations hereunder and its consummation and
     the validity of the transactions contemplated hereby do not require
     it to obtain any consent, approval or action of, or make any filing
     with or give any notice to, any corporation, person or firm,
     including without limitation, The Prudential Insurance Company of
     America, the holder of a mortgage encumbering title to the Community,
     or any public, governmental or regulatory body or judicial authority,
     which has not previously been obtained.

           (c)   Assignee has obtained all consents required to be
     obtained from The Prudential Insurance Company of America with
     respect to this Agreement.

     7.    ASSUMPTION BY ASSIGNEE; INDEMNITY.  Assignee hereby: (i)
accepts the Assigned Interests and all rights of Assignor under the
Operating Agreement in respect thereof; and (ii) assumes (A) all of the
liabilities of the Company as they relate to the Assigned Interests
accruing on or after the Effective Date and (B) all obligations of Assignor
under the Operating Agreement in respect of the Assigned Interests,
accruing on or after the Effective Date, and agrees to be bound by the
provisions thereof with respect thereto. In no event shall the liabilities
or obligations assumed by Assignee include any federal or state income tax
liabilities of Assignor relating to the Company or the Assigned Interests
incurred or accrued, whether known or unknown, as of the Effective Date.
Assignee does hereby indemnify, defend, protect, save, and hold forever
harmless Assignor, its partners, affiliates, employees, and agents from and
against, any and all claims, demands, suits, causes of action,
controversies, liabilities, costs, expenses, and losses, including, without
limitation, reasonable attorneys' fees and expenses, arising from or
relating to any obligation whatsoever under the Operating Agreement due and
payable, or arising or accruing from events occurring, on the Effective
Date or at any time thereafter.

     8.    NO BROKERS.  No broker, finder or similar intermediary has
acted for or on behalf of, or is entitled to any broker's, finder's or
similar fee or other commission from Assignor or Assignee or any of their
respective Affiliates in connection with this Assignment or the
transactions contemplated hereby. Assignor agrees to indemnify and hold
Assignee free and harmless, and Assignee agrees to indemnify and hold
Assignor free and harmless, from and against any and all claims, demands,
suits, causes of action, controversies, liabilities, costs expenses, and
losses, including, without limitation, reasonable attorneys' fees and
expenses that the indemnified party may suffer as a result of any claims
made or suits brought by any broker, salesperson, agent or finder who
claims to have introduced or to have been retained by the indemnifying
party in connection with this transaction.

     9.    FURTHER ASSURANCES.  Each party, at its sole cost and expense,
upon request of the other party, shall execute and deliver such further
instruments and do or cause to be done such further acts as may be
reasonably necessary to be done by such party to effectuate and confirm the
assignment of the Assigned Interests.

     10.   MUTUAL RELEASE.

           (a)   As of the Effective Date, except as explicitly provided
     in this Assignment Assignor, on its behalf and on behalf of each of
     its Affiliates and each of their respective representatives, agents,
     successors, assigns, officers, directors, members, managers,
     employees and each of them (collectively, the "Assignor Parties")
     hereby irrevocably waives, releases and discharges, absolutely and
     forever, Assignee, the Company and each of their Affiliates from any
     and all liabilities to Assignor or the other Assignor Parties of any
     kind and nature whatsoever (including in respect of any rights of
     contribution or indemnification), in respect of facts, events,
     circumstances or conditions occurring or arising prior to the
     Effective Date.

                                   4

<PAGE>

           (b)   As of the Effective Date, except as explicitly provided
     in this Assignment, each of Assignee and the Company, on its behalf
     and on behalf of each of their respective Affiliates and each of
     their respective representatives, agents, successors, assigns,
     officers, directors, members, managers, employees and each of them
     (collectively, the "Assignee Parties") hereby irrevocably waives,
     releases and discharges, absolutely and forever, Assignor and each
     of its Affiliates, from any and all liabilities to Assignee, the
     Company or the other Assignee Parties of any kind and nature
     whatsoever (including in respect of any rights of contribution or
     indemnification), in respect of facts, events, circumstances or
     conditions occurring or arising prior to the Effective Date.

           (c)   Notwithstanding anything to the contrary in paragraphs
     (a) and (b) above, nothing in this Section 10 shall be construed as a
     waiver or release by or in favor of either party with respect to any
     rights either of them may have pursuant to this Assignment.

     11.   SUCCESSORS AND ASSIGNS.  This Assignment shall be binding upon
and inure to the benefit of Assignor and Assignee and the respective heirs,
legal representatives, successors and assigns of each.

     12.   SURVIVAL OF REPRESENTATIONS.  The representations, warranties,
covenants indemnities and agreements of the parties contained in this
Assignment are the only such terms made or relied upon by the parties and
shall survive the consummation of the transactions contemplated hereby.

     13.   MODIFICATION AND WAIVER.  No supplement, modification, waiver
or termination of this Assignment or any provision hereof shall be binding
unless executed in writing by the parties to be bound thereby. No waiver of
any of the provisions of this Assignment shall constitute a waiver of any
other provision (whether or not similar), nor shall such waiver constitute
a continuing waiver unless otherwise expressly provided.

     14.   GOVERNING LAW. This Assignment shall be construed and enforced
in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed entirely within said state.

     15.   RECOURSE TO AMLI. ANYTHING CONTAINED HEREIN TO THE CONTRARY
NOTWITHSTANDING, NO PERSONAL LIABILITY OR PERSONAL DEFICIENCY JUDGMENT
SHALL BE ASSERTED OR ENFORCED AGAINST ANY PARTNERS OF ASSIGNEE, AGAINST THE
TRUSTEES, OFFICERS, EMPLOYEES, AGENTS, PARTNERS, SHAREHOLDERS OR PRINCIPALS
OF SUCH PARTNERS, OR AGAINST THE ASSETS OF ANY SUCH PARTIES, FOR PAYMENT OF
ANY AMOUNT HEREUNDER OR FOR OBSERVANCE OR PERFORMANCE OF ANY OF THE
OBLIGATIONS OF ASSIGNEE OR THE COMPANY. NOTHING CONTAINED ABOVE SHALL LIMIT
THE REMEDIES AGAINST ANY PERSON FOR SUCH PERSON'S FRAUD OR INTENTIONAL
MISCONDUCT, IN WHICH EVENT SUCH REMEDIES SHALL BE DETERMINED BY APPLICABLE
LAW.

     16.   RECOURSE TO OTR. ANYTHING CONTAINED HEREIN TO THE CONTRARY
NOTWITHSTANDING, NO PERSONAL LIABILITY OR PERSONAL DEFICIENCY JUDGMENT
SHALL BE ASSERTED OR ENFORCED AGAINST ANY PRESENT OR FUTURE (A) PARTNERS OF
ASSIGNOR, (B) BOARD MEMBERS OR OFFICERS OF THE STATE TEACHERS RETIREMENT
SYSTEM OF OHIO, (C) RETIRANT, BENEFICIARY, INTERNAL INVESTMENT CONTRACTOR,
ATTORNEY OR AGENT THEREOF, (D) TRUSTEES, OFFICERS, EMPLOYEES, AGENTS,
PARTNERS, SHAREHOLDERS OR PRINCIPALS OF SUCH PARTNERS, OR (E) ASSETS OF ANY
SUCH PARTIES, FOR PAYMENT OF ANY AMOUNT HEREUNDER OR FOR OBSERVANCE OR
PERFORMANCE OF ANY OF THE OBLIGATIONS OF ASSIGNOR. NOTHING CONTAINED ABOVE
SHALL LIMIT THE REMEDIES AGAINST ANY PERSON FOR SUCH PERSON'S FRAUD OR
INTENTIONAL MISCONDUCT, IN WHICH EVENT SUCH REMEDIES SHALL BE DETERMINED BY
APPLICABLE LAW, AND THE FOREGOING SHALL NOT RELEASE THE BOARD OF THE STATE
TEACHERS RETIREMENT SYSTEM OF OHIO FROM LIABILITY FOR THE OBLIGATIONS OF
OTR HEREUNDER.

                                   5

<PAGE>

     17.   TAX MATTERS.  On the Effective Date, there shall be an interim
closing of the Company's books and all items of the Company's Profits and
Losses for the current fiscal year up to (but not including) the Effective
Date shall be allocated to Assignor and Assignee in accordance with the
Operating Agreement. Assignee shall cause the Company to prepare the tax
return of the Company for the portion of the current fiscal year up to (but
not including) the Effective Date (the "Termination Tax Return") as a
result of the termination of the Company for tax purposes under Section
708(b)(1)(B) of the Internal Revenue Code of 1986, as amended. Assignee
shall provide Assignor with a copy of the Termination Tax Return for
Assignee's review and approval (which shall not be unreasonably withheld or
delayed) prior to filing such return with the Internal Revenue Service.
Assignor and Assignee shall each file all required federal, state and local
income tax returns and related returns and reports in a timely manner
consistent with the foregoing and as required by law.

     18.   ENTIRE AGREEMENT.  This Assignment contains all of the
understandings and agreements of whatsoever kind and nature existing
between Assignor and Assignee with respect to the subject matter hereof,
and any and all other prior agreements between the parties with respect to
such subject matter are hereby superseded.

     19.   HEADINGS.  All headings used herein are inserted for
convenience and ease of reference only and shall not be considered in the
construction or interpretation of any provision of this Assignment.

     20.   SEVERABILITY.  If any provisions of this Assignment shall be
held by a court of competent jurisdiction to be contrary to law or public
policy, or otherwise unenforceable the remaining provisions shall remain in
full force and effect and a court of competent jurisdiction shall supply a
provision or provisions to replace the affected provision(s) which most
closely approximates the original intent of the parties.

                         *    *    *    *    *

                                   6

<PAGE>

     IN WITNESS WHEREOF, this Assignment is executed as of the day and
year first above written.

                      ASSIGNOR:
                      --------

                      OTR,
                      an Ohio general partnership

                      By:   /s/ Stephen A. Mitchell
                            ------------------------------
                            Name:  Stephen A. Mitchell
                            Title: General Partner

                      ASSIGNEE:
                      --------

                      AMLI RESIDENTIAL PROPERTIES, L.P.,
                      a Delaware limited partnership

                      By:   AMLI Residential Properties Trust,
                            a Maryland real estate investment trust,
                            its general partner

                            By:   /s/ Fred Shapiro
                                  ------------------------------
                                  Name:  Fred Shapiro
                                  Title: Senior Vice President

                      For purposes of Section 10(b) only:
                      ----------------------------------

                      AMLI AT DANADA L.L.C.,
                      an Illinois limited liability company

                      By:   /s/ Fred Shapiro
                            ------------------------------
                            Name:  Fred Shapiro
                            Title: Senior Vice President

                                   7

<PAGE>

                              SCHEDULE A

                     Calculation of Purchase Price

Company Value                                        $  71,000,000

LESS: Outstanding debt of the Company
  as of the Effective Date                           $  23,274,824
                                                     -------------

Company Equity Value                                 $  47,725,176

Assignor's percentage interest                                 90%

Value of Assignor's membership interest              $  42,952,658

LESS: Assignor's share of unpaid real estate
  taxes accrued by the Company and relating
  to all periods prior to the Effective Date (1)     $     784,479

LESS:  Assignor's share of accrued
  principal and interest                             $     123,826

LESS: Assignor's share of contractually committed
  cost for painting of portions of the Community     $     153,900
                                                     -------------

Total Deductions                                     $   1,062,205
                                                     -------------

Purchase Price to be paid to Assignor by Assignee
  on the Effective Date                              $  41,890,453

     (1)   This amount reflects the Assignor's pro rata portion of the
           Company's estimated real estate taxes for all periods prior to
           the Effective Date and which the Company has not yet paid as of
           the Effective Date. Because the Company makes distributions to
           its members on a cash basis, this amount reflects the excess
           distributions received by Assignor from the Company as a result
           of non-payment of the taxes. The Purchase Price is, therefore,
           reduced by this amount. A final proration of the real estate
           taxes will be completed in accordance with Section 4 of the
           Assignment upon receipt by the Company of the final tax bill.

                                   8

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