SUMMARY OF SUPPLEMENT TO PROSPECTUS
(SEE THE SUPPLEMENT FOR ADDITIONAL INFORMATION):
Supplement No. 1 dated February 10, 1997:
(1) Reports on the acquisition by the Company of three apartment complexes.
(2) Reports on the granting to Cornerstone Realty Income Trust, Inc. of a
right to acquire up to 9.8% of the Company's outstanding Shares.
As of January 31, 1997, the Company had closed the sale to investors of
1,666,666.67 Shares at $9 per Share, and 1,691,137.73 Shares at $10 per Share,
representing aggregate gross proceeds to the Company of $31,911,377 and proceeds
net of selling commissions of $28,720,239. The Company endeavors continually to
invest proceeds in the acquisition of additional apartment communities as
promptly as practicable after the receipt of such proceeds. As of January 31,
1997, substantially all of the proceeds of the offering available for investment
in properties had been so invested.
Apple Residential Advisors, Inc. and its Affiliates have received and are
expected to continue to receive fees and expense reimbursements in connection
with the Company's acquisitions and the management of the properties and the
Company. In connection with the three property acquisitions described in this
Supplement, Apple Realty Group, Inc., an Affiliate of the Advisor, will receive
property acquisition fees totaling $534,670.
