FILED PURSUANT TO RULE 424(B)(3)
REGISTRATION NO. 333-10635
STICKER SUPPLEMENT TO SUPPLEMENT NO.9 DATED APRIL 30, 1998 AND SUPPLEMENT NO.10
DATED JUNE 2, 1998; SUPPLEMENT NO.9 AND SUPPLEMENT NO. 10 ARE TO BE USED IN
CONJUNCTION WITH PROSPECTUS DATED NOVEMBER 19, 1996.
SUMMARY OF SUPPLEMENTS TO PROSPECTUS
(SEE THE SUPPLEMENTS FOR ADDITIONAL INFORMATION):
Supplement No. 9 dated April 30, 1998 (incorporating Supplements No. 1, No. 2,
No. 3, No. 4, No. 5, No. 6, No. 7 and No. 8):
(1) Reports on the acquisition by the Company of fifteen 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, and
on certain other relationships with Cornerstone Realty Income Trust,
Inc.
(3) Reports on the transfer of all of the Company's properties to a
limited partnership subsidiary indirectly wholly-owned by the Company
(the "Reorganization") and the adoption of certain amendments to the
Company's Bylaws related to the Reorganization.
(4) Provides 1997 financial statements and certain other updated
information concerning the Company and its properties.
(5) Reports on the possible future acquisition by the Company of up to six
additional properties.
Supplement No. 10 dated June 2, 1998:
(1) Reports on the acquisition by the Company of two additional apartment
complexes.
(2) Reports on the re-election of each director to an additional one-year
term.
(3) Provides unaudited financial statements for the three months ended
March 31, 1998, and certain other updated information concerning the
Company.
As of May 31, 1998 the Company had closed the sale of 2,084,444 Shares at
$9 per Share, and 16,876,566 Shares at $10 per Share, representing aggregate
gross proceeds to the Company of $187,525,662, and proceeds net of selling
commissions and marketing expense allowance of $169,149,095. 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 May 31, 1998, approximately $35 million was not invested or
committed to investment, although such amounts would be fully invested if the
Company acquired the properties described under "Possible Additional Property
Acquisitions" in Supplement No. 9.
Cornerstone Realty Income Trust, Inc. will 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 completed property
acquisitions described in the Supplements, Apple Realty Group, Inc., an
Affiliate of the Advisor, or Cornerstone Realty Income Trust, Inc., as
successor-in-interest to Apple Realty Group, Inc., received property acquisition
fees totaling $2,615,048.
