UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

April 28, 2005

CORNERSTONE REALTY FUND, LLC

(Exact name of registrant as specified in its charter)

California		333-63656		33-0827161
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

4590 MacArthur Blvd., Suite 610
Newport Beach, California 92660

(Address of principal executive offices)

(949) 852-1007

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

Section 1 — Registrant’s Business and Operations

Item 2.01 Completion of Acquisition or Disposition of Assets

On April 28, 2005, we purchased an existing multi-tenant industrial park known as Paramount Business Center, a single-story two building property built in 1985 consisting of approximately 30,157 square feet of leasable space on approximately 1.66 acres of land. The acquisition price was $3,100,000 plus approximately $55,000 of closing costs (which are not fully determined at this time). This equates to approximately $105 per square foot of leasable space. The property is currently 100% leased to 10 tenants whose spaces range in size from approximately 1,988 square feet to 4,336 square feet. Currently, there are no vacant spaces. We purchased this property for all cash, without debt financing.

The property’s historical occupancy rates and average effective annual rental per square foot for each of the last five years are as follows:

	Year Ending		Average Annual
	December 31		Occupancy (%)
	2000		N/A
	2001		98%
	2002		98%
	2003		100%
	2004		100%

Five tenants occupy more than 10% of the rentable square footage of the park. The following table sets forth certain information with respect to the leases of the five tenants with 10% or greater of the leasable square feet of the park.

	Current	Base rent
Total Square	Expiration	Renewal	Annual	per sq.ft.
Feet Leased	Date	Options	Rent ($)	per annum ($)
4,336	Dec. 31, 2007	N/A	35,336	8.15
3,608	June 30, 2008	N/A	28,200	7.82
3,608	Nov. 30, 2008	N/A	26,912	7.46
3,512	Dec. 31, 2006	N/A	26,058	7.42
3,758	Nov. 30, 2005	N/A	27,883	7.42

These tenants operate varying business, including service related businesses, warehouse storage and distribution and light assembly.

The following table sets forth lease expiration information for the next five years:

Year Ending Dec. 31	No of Leases Expiring	Approx. Amount of Expiring Leases (Sq. Feet)	Base Rent of Expiring Leases (Annual $)	Percent of Total Leasable Area Expiring (%)	Percent of Total Annual Base Rent Expiring (%)

2005	2	5,978	56,574	19.82	18.86
2006	3	8,480	81,815	28.12	27.27
2007	2	6,495	66,560	21.54	22.19
2008	3	9,204	95,051	30.52	31.68
2009	0	0	0	0.00	0.00
2010	0	0	0	0.00	0.00
2011	0	0	0	0.00	0.00
2012	0	0	0	0.00	0.00
2013	0	0	0	0.00	0.00
2014	0	0	0	0.00	0.00

In evaluating this property as a potential acquisition and determining the appropriate amount of consideration to be paid for the property, we considered a variety of factors including overall valuation of net rental income, location, demographics, physical condition, tenant mix, quality of tenants, length of leases, price per square foot, occupancy and analyzed how the property compares to comparable properties in its market. We believe that this property is well located, has good roadway access and will attract quality tenants. This property will be subject to competition from similar multi-tenant industrial parks within its market area, and its economic performance could be affected by changes in local economic conditions. We did not consider any other factors materially relevant to the decision to acquire this property. In the opinion of management, this property is adequately covered by insurance.

For federal income tax purposes, the depreciable basis of the property is estimated at approximately $2,100,000, which is subject to final adjustment. The depreciation expense will be calculated using the straight-line method, based upon an estimated useful life of 39 years for the building improvement costs and the related lease term for the tenant improvements. Leasing commissions will be amortized over the initial term of the related leases. The realty tax rate is 1.26% and the annual realty taxes are projected to be $32,587 for the initial year subsequent to the purchase.

Section 9 — Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(a) Financial statements of businesses acquired. We will file financial statements relating the acquisition of Paramount Business Center by amendment to this Current Report.

(b) Pro forma financial informatio. We will file unaudited pro forma financial statements relating to the acquisition of Paramount Business Center by amendment to this Current Report.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CORNERSTONE REALTY FUND, LLC

		By:	CORNERSTONE INDUSTRIAL PROPERTIES, LLC
			Its Managing Member

				By:	CORNERSTONE VENTURES, INC.
					Its Manager

						By:	/s/ TERRY G. ROUSSEL
							Terry G. Roussel, President


Dated: April 29, 2005