UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION~~

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~~Pursuant ofto ~~Report~~Section ~~(Date~~13 ofor ~~earliest event reported~~15(d)~~: September 8,~~ ~~2011~~of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

December 14, 2011

CORNERSTONE REALTY FUND, LLC

(Exact name of registrant as specified in its charter)

California		000-51868		33-0827161
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

1920 Main Street, Suite ~~400 Irvine,~~ ~~California 92614 (Address of principal executive offices)~~400

~~(949) 852-1007 (Registrant’s telephone number~~Irvine, ~~including~~California ~~area code)~~92614

~~Not Applicable~~ (~~Former~~Address ~~name~~of orprincipal ~~former~~executive ~~address, if changed since last report~~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 obligations 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 240.14d-2(b)

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)

ITEM 12.01 ~~ENTRY~~COMPLETION ~~INTO~~OF AACQUISITION ~~MATERIAL~~OR ~~DEFINITIVE~~DISPOSITION ~~AGREEMENT~~OF ASSETS.

On September 8, 2011, we became obligated under a purchase and sale agreement (the “Agreement”) ~~dated September 1, 2011~~ in connection with the sale of the Arrow Business Center in Irwindale, California, Normandie Business Center in Torrance, California, Paramount Business Center in Paramount, California, Shoemaker Industrial Park in Santa Fe Springs, California, Interstate Commerce Center in Tempe Arizona, and 500-560 Zenith Drive in Glenview, Illinois (the “Properties”) by Rexford Industrial Find V, L.P. (“Buyer”), a non-related party, for a purchase price of approximately $25.1 million. ~~Except with respect to specific contingencies, the Buyer does not have the right to terminate the agreement without our consent.~~

~~The~~During ~~material terms of~~ the ~~agreement~~property ~~provide~~inspection ~~for:~~period, ~~(i) an~~it ~~initial~~was ~~deposit~~determined ~~from~~that the ~~Buyer~~500-560 inZenith ~~the amount~~Drive, ~~of $500~~Glenview,~~000~~ ~~that~~Illinois ~~funded~~property ~~immediately~~(“Zenith”) ~~upon~~requires ~~execution~~additional ofenvironmental ~~the~~testing. ~~Agreement~~Consequently, ~~and shall be credited to~~ the ~~purchase~~sale ~~price~~ of the ~~property~~Arrow ~~and~~Business isCenter ~~non-refundable except~~ in ~~limited~~Irwindale, ~~circumstances;~~California, ~~(ii) a property~~Normandie ~~inspection~~Business ~~period~~Center ~~that~~in ~~expires~~Torrance, ~~on September 30~~California, ~~2011~~Paramount ~~during~~Business ~~which~~Center ~~time~~in ~~the~~Paramount, ~~Buyer~~California, ~~can terminate~~Shoemaker ~~the~~Industrial ~~Agreement~~Park atin ~~any~~Santa ~~time~~Fe ~~within~~Springs, ~~the~~California, ~~period~~and byInterstate ~~delivering~~Commerce ~~written~~Center ~~notice~~in toTempe ~~us;~~Arizona ~~(iii) an additional~~closed ~~deposit~~on ~~from~~December ~~the~~14, ~~Buyer~~2011 infor ~~the~~a ~~amount~~purchase price of approximately $~~500,000~~22.9 ~~due~~million. noThe ~~later~~proceeds ~~than~~from ~~two business days after~~ the ~~expiration~~sale of the ~~property~~properties ~~inspection~~were ~~period~~used, ~~provided~~in ~~the~~part, ~~Buyer~~to ~~does~~repay ~~not terminate~~ the ~~agreement~~ ~~within~~full ~~the~~$3.9 ~~property~~million ~~inspection~~balance ~~period, and (iv) a closing date for the sale~~ of the ~~Properties~~ ~~that~~loan ~~shall~~with ~~occur~~Farmers on& orMerchants ~~before~~Bank ~~October 14, 2011. The Agreement also contains additional covenants, representations and warranties that are customary~~ of ~~real~~Long ~~estate purchase and sale agreements~~Beach.

~~ITEM~~We 9have agreed, with the buyer, to use all commercially reasonable efforts to agree upon additional terms for the sale of the Zenith property.01 ~~FINANCIAL~~The ~~STATEMENTS~~outcome ~~AND~~of ~~EXHIBITS~~these efforts will depend on the outcome of the additional environmental testing being undertaken at the property.

d) Exhibits

10.1 Purchase and Sale Agreement dated September 1, 2011 by and between the Company and Rexford Industrial Fund V, L.P.

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/ Sharon C. Kaiser
		Sharon C. Kaiser, Chief Financial Officer

Dated: ~~September 12~~ December 19, 2011

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