Berkshire Income Realty Completes Acquisition of 282 Unit Multifamily Apartment Community in Virginia and Arranges New Credit Facility.

BOSTON -- Berkshire Income Realty, Inc. (AMEX: BIR.PR.A), (AMEX: BIR_PA), (AMEX: BIRPRA), (AMEX: BIR-A), (AMEX: BIR.A), (AMEX: BIR/PRA) (the "Company") announced today that the Company has completed the acquisition of 100% of the fee simple interest of Lake Ridge Apartments, a 282 unit multifamily apartment community located in Hampton, Virginia from an unaffiliated third party. The acquisition of Lake Ridge Apartments bolsters the Company's growing ownership presence in the Baltimore/Washington, D.C. metropolitan area.

The purchase price of $34,344,000 was paid from cash held in escrow pursuant to the completion of a Section 1031 tax deferred exchange under the Internal Revenue Code of 1986, as amended, and borrowings under a newly established revolving credit agreement. The purchase price was subject to normal operating pro rations and adjustments as provided for in the purchase and sale agreement.

Additionally, the Company announced today that it has obtained a new credit facility in the form of a revolving credit agreement with an affiliate. The agreement makes available $20 million of revolving credit to the Company. The agreement provides for interest at a rate of 5% above the applicable LIBOR rate and has a maturity date of December 31, 2006, with a one-time six-month extension available at the option of the Company.

The Company is a REIT whose objective is to acquire, operate, and rehabilitate multifamily apartment communities. The Company owns interests in twenty-two such multifamily apartment communities, of which eight are located in the Baltimore/Washington, D.C. metropolitan area, four are located in Virginia, three are located in Houston, Texas, two are located in Dallas, Texas, one is located in Austin, Texas, two are located in the Chicago, Illinois area, one is located in the Ft. Lauderdale, Florida area and one is located in Charlotte, North Carolina.

This press release may contain "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, about the Company. These statements involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are the ones listed in the Company's periodic reports filed with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and Quarterly Report on Form 10-Q for the three months ended March 31, 2005.

Contact Information: Berkshire Income Realty, Inc. One Beacon Street, Suite 1500 Boston, Massachusetts 02108

Attention: James Juliano Telephone: [phone] E-mail: [e-mail] Facsimile: 1-617-423-8919