EXHIBIT 99.2





                                  EXHIBIT 99.2



           CORNERSTONE SECURES INTEREST RATE ON $73.5 MILLION OF DEBT

RICHMOND, Virginia, October 4, 1999 - Cornerstone Realty Income Trust (NYSE:TCR)
today announced that they have placed $73.5 million in financing with Prudential
Mortgage Capital  Corporation.  The seven-year  interest only loan bears a fixed
interest  rate of 7.29% per  annum  and is  secured  by 10 of the  Company's  87
properties.  Cornerstone  can request that the loan be considered for conversion
to unsecured  financing if it obtains an  investment  grade credit  rating.  Net
proceeds  from the loan  were used to pay down  existing  short  term  financing
including a substantial curtailment to the Company's unsecured Line of Credit.

"This transaction is consistent with our philosophy of maintaining a very strong
and  flexible   balance  sheet.   Post  closing,   our  debt  level  remains  at
approximately 25% of total market capitalization.  With recent volatility in the
financial markets, the transaction mitigates our variable interest rate risk and
creates greater borrowing capacity under our Line of Credit", said Glade Knight,
Chairman and Chief Executive Officer.

The  Company  has  total  debt  outstanding  of   approximately   $254  million.
Approximately $104 million, or 41% of total debt, is secured long-term debt with
an  average  interest  rate of 7.06%.  The  remaining  debt is a balance  on the
Company's  unsecured  Line of Credit that carries an interest  rate of 120 basis
points over LIBOR, currently 6.5%.

Certain statements contained herein may constitute "forward-looking  statements"
within the meaning of the Securities Act of 1933 and the Securities Exchange Act
of 1934.  Such  forward-looking  statements  involve  known and  unknown  risks,
uncertainties  and other factors that may cause the future results,  performance
or   achievements   of  the  Company  to  be  materially   different   from  any
forward-looking statements. Such factors include, among others, risks associated
with the timing of, costs associated with, and effects of property improvements,
financing commitments and general competitive factors.

Cornerstone  Realty Income Trust, Inc. is a fully  integrated,  self-managed and
self-advised  real estate  company that has  operated as a REIT since 1993.  The
Company  focuses on the ownership and management of  multi-family  properties in
select markets in Virginia, North Carolina,  South Carolina,  Georgia and Texas.
Currently,   the  Company  owns  87  multifamily  properties  containing  20,965
apartment  homes.  For  additional  information  please contact Glade M. Knight,
Chairman and Chief Executive  Officer,  S. J. Olander,  Executive Vice President
and Chief  Financial  Officer,  David S.  McKenney,  Senior  Vice  President  of
Corporate  Services or Krissy  Gathright,  Assistant Vice President of Corporate
Services at (804) 643-1761.  Further  information on Cornerstone may be found on
our web site at: http://www.cornerstonereit.com.