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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 18pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>the Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Date of Report (Date of earliest event reported):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>February 27, 2012</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 24pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>CORNERSTONE REALTY FUND LIQUIDATING TRUST</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Exact name of registrant as specified in its
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

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    <TD STYLE="width: 32%; text-autospace: none; font-weight: bold; text-align: center">California</TD>
    <TD STYLE="width: 3%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 31%; text-autospace: none; font-weight: bold; text-align: center">000-51868</TD>
    <TD STYLE="width: 3%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 31%; text-autospace: none; font-weight: bold; text-align: center">33-0827161</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">(State of Incorporation)</TD>
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD STYLE="text-autospace: none; text-align: center">(Commission File Number)</TD>
    <TD STYLE="text-autospace: none; text-align: center">&nbsp;</TD>
    <TD>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(I.R.S. Employer</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Identification Number)</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 100%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>1920 Main Street., Suite 400</B></P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Irvine, California 92614</B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none; text-align: center">(Address of principal executive offices)</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(949) 852-1007</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Registrant&rsquo;s telephone number, including
area code)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Cornerstone Realty Fund, LLC</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Former name or former address, if changed since
last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14d-2(b)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in"><FONT STYLE="font-family: Wingdings">&uml;</FONT></TD><TD>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 1.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry
into a Material Definitive Agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The information set forth in Item 8.01 of this Current Report on
Form 8-K is incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 2.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Completion
of Acquisition or Disposition of Assets.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The information set forth in Item 8.01 of this Current Report on
Form 8-K is incorporated by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 8.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Events.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On February 27, 2012 (the &ldquo;<B>Effective Date</B>&rdquo;),
Cornerstone Realty Fund, LLC (the &ldquo;<B>Fund</B>&rdquo;) completed its liquidation pursuant to the Plan of Liquidation and
Dissolution adopted pursuant to a majority vote of its members on May 29, 2011 (the &ldquo;<B>Plan</B>&rdquo;), which provided
for the formation of a liquidating trust for the purpose of completing the liquidation of the assets of the Fund followed by a
dissolution and cancellation of the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In furtherance of the Plan, the Fund entered into a Liquidating
Trust Agreement (the &ldquo;<B>Liquidating Trust Agreement</B>&rdquo;) with Cornerstone Industrial Properties, LLC, the managing
member of the Fund, as managing trustee (the &ldquo;<B>Managing Trustee</B>&rdquo;), in connection with the formation of the Cornerstone
Realty Fund Liquidating Trust (the &ldquo;<B>Liquidating Trust</B>&rdquo;), a California statutory trust.&nbsp;&nbsp;As of the
Effective Date, each of the holders of units of limited liability company interest in the Fund received a pro rata beneficial interest
in the Liquidating Trust in exchange for such holder&rsquo;s interest in the Fund.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">In accordance with the Plan and the Liquidating Trust Agreement,
the Fund has transferred all of its remaining assets and liabilities to the Liquidating Trust to be administered, disposed of or
provided for in accordance with the terms and conditions set forth in the Liquidating Trust Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The purpose of the Liquidating Trust is to wind up the Fund&rsquo;s
affairs and liquidate the Fund&rsquo;s remaining assets, including, but not limited to, the sale of its one remaining real estate
asset located in Glenview, Illinois, to make appropriate provision for the Fund&rsquo;s remaining obligations and to make special
distributions to the investors of available liquidation proceeds.&nbsp;&nbsp;Pursuant to the Liquidating Trust Agreement, the Managing
Trustee is entitled to receive the same compensation and expense reimbursements that the managing member of the Fund was entitled
to receive.&nbsp;&nbsp;The existence of the Liquidating Trust will terminate upon the earliest of (i) the distribution of all of
the Liquidating Trust&rsquo;s assets in accordance with the terms of the Liquidating Trust Agreement, or (ii) the expiration of
a period of three years from the Effective Date.&nbsp;&nbsp;The existence of the Liquidating Trust may, however, be extended beyond
the three year term if the Managing Trustee determines that an extension is reasonably necessary to wind up the affairs of this
Liquidating Trust.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">On the Effective Date, the Fund filed a Form 15 with the Securities
and Exchange Commission to terminate the registration of the units of limited liability company interest in the Fund under the
Securities Exchange Act of 1934.&nbsp;&nbsp;Accordingly, the Fund will cease filing reports under that act. However, the Managing
Trustee will cause the Liquidating Trust to file with the Securities and Exchange Commission annual reports on Form 10-K using
Fund&rsquo;s file number (File No. 000-51868) showing the assets and liabilities of the Liquidating Trust at the end of each calendar
year and describing the changes in the assets and liabilities of the Liquidating Trust and the actions taken by the Managing Trustee
during the period.&nbsp;&nbsp;The Managing Trustee will also cause the Liquidating Trust to file current reports on Form 8-K&nbsp;using
Fund&rsquo;s file number (File No. 000-51868) whenever an event occurs for which Form 8-K requires such report to be filed for
the Liquidating Trust or to disclose material events relating to the Liquidating Trust or its assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">The foregoing summary is qualified in its entirety by the Liquidating
Trust Agreement attached hereto as Exhibit 10.1, and a form of investor letter attached hereto as Exhibit 99.1 anticipated to be
mailed to the investors in the Fund on or about February 28, 2012, each of which is incorporated herein by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements and Exhibits.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 6%"></TD><TD STYLE="width: 6%">&nbsp;(b)</TD><TD STYLE="width: 88%">As a result of the transfer of the Fund&rsquo;s assets and liabilities to the Liquidating Trust, the impact on the pro forma
consolidated financial statements results in an ending balance of zero.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.75in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 6%"></TD><TD STYLE="width: 6%">&nbsp;(d)</TD><TD STYLE="width: 88%"><I>Exhibits.</I></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 12%"></TD><TD STYLE="width: 6%">&nbsp;10.1</TD><TD STYLE="width: 82%">Liquidating Trust Agreement</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 12%"></TD><TD STYLE="width: 6%">&nbsp;99.1</TD><TD STYLE="width: 82%">Form of Investor Letter</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in">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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse; font-family: Times New Roman, Times, Serif">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 40%; text-autospace: none; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 60%; text-autospace: none; font-size: 10pt">CORNERSTONE REALTY FUND LIQUIDATING TRUST</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none">By:</TD>
    <TD STYLE="width: 46%; text-autospace: none">CORNERSTONE INDUSTRIAL PROPERTIES, LLC</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; font-style: italic">Its Managing Trustee</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 6%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none">By:</TD>
    <TD STYLE="width: 40%; text-autospace: none">&nbsp;CORNERSTONE VENTURES, INC.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none; font-style: italic">Its Manager</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; text-autospace: none">&nbsp;Dated: February 27, 2012</TD>
    <TD STYLE="width: 10%; text-autospace: none">&nbsp;</TD>
    <TD STYLE="width: 4%; text-autospace: none">By:</TD>
    <TD STYLE="width: 36%; text-autospace: none; border-bottom: Black 1pt solid">/s/ Terry G. Roussel</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">Terry G. Roussel, President</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">(Principal Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">&nbsp;</TD>
    <TD STYLE="text-autospace: none">and Principal Financial Officer)</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.55in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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{"company-data": {"conformed-name": "CORNERSTONE REALTY FUND LLC", "cik": "0001073149", "assigned-sic": "6512", "irs-number": "330825254", "state-of-incorporation": "CA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51868", "film-number": "12644791"}, "business-address": {"street1": "1920 MAIN PLAZA", "street2": "SUITE 400", "city": "IRVINE", "state": "CA", "zip": "92614", "phone": "949 852-1007"}, "mail-address": {"street1": "1920 MAIN PLAZA", "street2": "SUITE 400", "city": "IRVINE", "state": "CA", "zip": "92614"}, "former-company": {"former-conformed-name": "CORNERSTONE INDUSTRIAL PROPERTIES INCOME & GROWTH FUND LLC", "date-changed": "19981106"}}
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
February 27, 2012
CORNERSTONE REALTY FUND LIQUIDATING TRUST
(Exact name of registrant as specified in its
charter)
California
000-51868
33-0827161
(State of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
1920 Main Street., Suite 400
Irvine, California 92614
(Address of principal executive offices)
(949) 852-1007
(Registrant's telephone number, including
area code)
Cornerstone Realty Fund, LLC
(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 obligations of the registrant under any of the following provisions.
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14d-2(b)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Item 1.01         Entry
into a Material Definitive Agreement.
The information set forth in Item 8.01 of this Current Report on
Form 8-K is incorporated by reference.
Item 2.01         Completion
of Acquisition or Disposition of Assets.
The information set forth in Item 8.01 of this Current Report on
Form 8-K is incorporated by reference.
Item 8.01         Other
Events.
On February 27, 2012 (the "
Effective Date
"),
Cornerstone Realty Fund, LLC (the "
Fund
") completed its liquidation pursuant to the Plan of Liquidation and
Dissolution adopted pursuant to a majority vote of its members on May 29, 2011 (the "
Plan
"), which provided
for the formation of a liquidating trust for the purpose of completing the liquidation of the assets of the Fund followed by a
dissolution and cancellation of the Fund.
In furtherance of the Plan, the Fund entered into a Liquidating
Trust Agreement (the "
Liquidating Trust Agreement
") with Cornerstone Industrial Properties, LLC, the managing
member of the Fund, as managing trustee (the "
Managing Trustee
"), in connection with the formation of the Cornerstone
Realty Fund Liquidating Trust (the "
Liquidating Trust
"), a California statutory trust.  As of the
Effective Date, each of the holders of units of limited liability company interest in the Fund received a pro rata beneficial interest
in the Liquidating Trust in exchange for such holder's interest in the Fund.
In accordance with the Plan and the Liquidating Trust Agreement,
the Fund has transferred all of its remaining assets and liabilities to the Liquidating Trust to be administered, disposed of or
provided for in accordance with the terms and conditions set forth in the Liquidating Trust Agreement.
The purpose of the Liquidating Trust is to wind up the Fund's
affairs and liquidate the Fund's remaining assets, including, but not limited to, the sale of its one remaining real estate
asset located in Glenview, Illinois, to make appropriate provision for the Fund's remaining obligations and to make special
distributions to the investors of available liquidation proceeds.  Pursuant to the Liquidating Trust Agreement, the Managing
Trustee is entitled to receive the same compensation and expense reimbursements that the managing member of the Fund was entitled
to receive.  The existence of the Liquidating Trust will terminate upon the earliest of (i) the distribution of all of
the Liquidating Trust's assets in accordance with the terms of the Liquidating Trust Agreement, or (ii) the expiration of
a period of three years from the Effective Date.  The existence of the Liquidating Trust may, however, be extended beyond
the three year term if the Managing Trustee determines that an extension is reasonably necessary to wind up the affairs of this
Liquidating Trust.
On the Effective Date, the Fund filed a Form 15 with the Securities
and Exchange Commission to terminate the registration of the units of limited liability company interest in the Fund under the
Securities Exchange Act of 1934.  Accordingly, the Fund will cease filing reports under that act. However, the Managing
Trustee will cause the Liquidating Trust to file with the Securities and Exchange Commission annual reports on Form 10-K using
Fund's file number (File No. 000-51868) showing the assets and liabilities of the Liquidating Trust at the end of each calendar
year and describing the changes in the assets and liabilities of the Liquidating Trust and the actions taken by the Managing Trustee
during the period.  The Managing Trustee will also cause the Liquidating Trust to file current reports on Form 8-K using
Fund's file number (File No. 000-51868) whenever an event occurs for which Form 8-K requires such report to be filed for
the Liquidating Trust or to disclose material events relating to the Liquidating Trust or its assets.
The foregoing summary is qualified in its entirety by the Liquidating
Trust Agreement attached hereto as Exhibit 10.1, and a form of investor letter attached hereto as Exhibit 99.1 anticipated to be
mailed to the investors in the Fund on or about February 28, 2012, each of which is incorporated herein by reference.
Item 9.01         Financial
Statements and Exhibits.
(b)
As a result of the transfer of the Fund's assets and liabilities to the Liquidating Trust, the impact on the pro forma
consolidated financial statements results in an ending balance of zero.
(d)
Exhibits.
10.1
Liquidating Trust Agreement
99.1
Form of Investor Letter
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 LIQUIDATING TRUST
By:
CORNERSTONE INDUSTRIAL PROPERTIES, LLC
Its Managing Trustee
By:
CORNERSTONE VENTURES, INC.
Its Manager
Dated: February 27, 2012
By:
/s/ Terry G. Roussel
Terry G. Roussel, President
(Principal Executive Officer
and Principal Financial Officer)