SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C.  20549



                                 FORM 10-Q



                Quarterly Report Under Section 13 or 15(d)
                  of the Securities Exchange Act of 1934




For the quarter ended
March 31, 2001                            Commission file number 0-15962




               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
          (Exact name of registrant as specified in its charter)




                Illinois                        36-3256340
      (State of organization)          (IRS Employer Identification No.)




  900 N. Michigan Ave., Chicago, IL               60611
(Address of principal executive office)         (Zip Code)




Registrant's telephone number, including area code 312/915-1987




Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes [ X ]  No [   ]


<PAGE>


                             TABLE OF CONTENTS




PART I     FINANCIAL INFORMATION


Item 1.    Financial Statements. . . . . . . . . . . . . . . . .     3

Item 2.    Management's Discussion and
           Analysis of Financial Condition and
           Results of Operations . . . . . . . . . . . . . . . .    15



PART II    OTHER INFORMATION

Item 1.    Legal Proceedings . . . . . . . . . . . . . . . . . .    20

Item 3.    Defaults Upon Senior Securities . . . . . . . . . . .    21

Item 5.    Other Information . . . . . . . . . . . . . . . . . .    22

Item 6.    Exhibits and Reports on Form 8-K. . . . . . . . . . .    23






<PAGE>


PART I.  FINANCIAL INFORMATION

     ITEM 1.  FINANCIAL STATEMENTS

               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
                          (A LIMITED PARTNERSHIP)

                              BALANCE SHEETS
                   MARCH 31, 2001 AND DECEMBER 31, 2000

                                (UNAUDITED)


                                  ASSETS
                                  ------


                                            MARCH 31,        DECEMBER 31,
                                              2001              2000
                                          -------------      -----------

Current assets:
  Cash and cash equivalents. . . . . .     $  8,493,854        8,599,183
  Interest, rents and other
   receivables . . . . . . . . . . . .           51,096           59,586
  Receivable related to the termin-
    ation of the indemnification
    agreement. . . . . . . . . . . . .        2,871,407            --
  Receivable related to the sale
    of the indirect interest in
    1290 Partnership . . . . . . . . .          686,077            --
                                           ------------     ------------
        Total current assets . . . . .       12,102,434        8,658,769
                                           ------------     ------------

Investment in unconsolidated
  ventures, at equity. . . . . . . . .          908,081          895,930
Other assets . . . . . . . . . . . . .          210,375          210,375
                                           ------------     ------------
                                           $ 13,220,890        9,765,074
                                           ============     ============



<PAGE>


               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
                          (A LIMITED PARTNERSHIP)

                        BALANCE SHEETS - CONTINUED


           LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
           -----------------------------------------------------

                                            MARCH 31,        DECEMBER 31,
                                              2001              2000
                                          -------------      -----------

Current liabilities:
  Accounts payable and
   other current liabilities . . . . .     $     71,224           46,036
  Current portion of long-term debt. .       38,497,041            --
                                           ------------     ------------
        Total current liabilities. . .       38,568,265           46,036

Investment in unconsolidated
  ventures, at equity. . . . . . . . .        7,598,300        7,579,733
Partnership's share of the
  maximum unfunded obligation
  under the indemnification
  agreement. . . . . . . . . . . . . .            --           4,272,948
Distributions received in
  excess of recorded invest-
  ment . . . . . . . . . . . . . . . .        1,322,572        1,322,572
Long-term debt, less
  current portion. . . . . . . . . . .            --          37,562,558
                                           ------------     ------------
Commitments and contingencies

        Total liabilities. . . . . . .       47,489,137       50,783,847

Partners' capital accounts
 (deficits):
  General partners:
    Capital contributions. . . . . . .            1,000            1,000
    Cumulative net earnings
     (losses). . . . . . . . . . . . .      (14,624,565)     (14,894,586)
    Cumulative cash distributions. . .       (2,117,798)      (2,117,798)
                                           ------------     ------------
                                            (16,741,363)     (17,011,384)
                                           ------------     ------------
  Limited partners:
    Capital contributions,
     net of offering costs . . . . . .      351,746,836      351,746,836
    Cumulative net earnings
     (losses). . . . . . . . . . . . .     (267,797,442)    (274,277,947)
    Cumulative cash distributions. . .     (101,476,278)    (101,476,278)
                                           ------------     ------------
                                            (17,526,884)     (24,007,389)
                                           ------------     ------------
        Total partners' capital
          accounts (deficits). . . . .      (34,268,247)     (41,018,773)
                                           ------------     ------------
                                           $ 13,220,890        9,765,074
                                           ============     ============








              See accompanying notes to financial statements.


<PAGE>


               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
                          (A LIMITED PARTNERSHIP)

                         STATEMENTS OF OPERATIONS

                THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                (UNAUDITED)



                                               2001            2000
                                           -----------     -----------

Income:
  Interest income. . . . . . . . . . .     $   118,114         198,704
                                           -----------      ----------
                                               118,114         198,704
                                           -----------      ----------

Expenses:
  Mortgage and other interest. . . . .         934,483         934,483
  Professional services. . . . . . . .         119,725         127,611
  Management fees to
    Corporate General Partner. . . . .           --            222,536
  General and administrative . . . . .         137,396         314,748
                                           -----------      ----------
                                             1,191,604       1,599,378
                                           -----------      ----------
                                            (1,073,490)     (1,400,674)
Partnership's share of the reduction
  of the maximum unfunded obligation
  under and income related to
  termination of the indemnification
  agreement. . . . . . . . . . . . . .       7,144,354          44,734
Partnership's share of operations
  of unconsolidated ventures . . . . .          (6,415)       (184,900)
                                           -----------      ----------
      Earnings (loss) before gain on
        sale of indirect partnership
        interest . . . . . . . . . . .       6,064,449      (1,540,840)

Partnership's share of gain on sale
  of indirect partnership interest . .         686,077           --
                                           -----------      ----------
      Net earnings (loss). . . . . . .     $ 6,750,526      (1,540,840)
                                           ===========      ==========

Net earnings (loss) per limited
  partnership interest:

  Earnings (loss) before gain
    on sale of indirect partnership
    interest . . . . . . . . . . . . .     $     14.55           (3.69)

  Partnership's share of gain on
    sale of indirect partnership
    interest . . . . . . . . . . . . .            1.70           --
                                           -----------      ----------

      Net earnings (loss) per limited
       partnership interest. . . . . .     $     16.25           (3.69)
                                           ===========      ==========

      Cash distributions per limited
        partnership interest . . . . .     $     --              58.00
                                           ===========      ==========


              See accompanying notes to financial statements.


<PAGE>


               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
                          (A LIMITED PARTNERSHIP)

                         STATEMENTS OF CASH FLOWS

                THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                                (UNAUDITED)


                                               2001            2000
                                           -----------     -----------
Cash flows from operating activities:
  Net earnings (loss). . . . . . . . .     $ 6,750,526      (1,540,840)
  Items not requiring (providing)
   cash or cash equivalents:
    Long-term debt - deferred
      accrued interest . . . . . . . .         934,483         934,483
    Partnership's share of the
      reduction of the maximum
      unfunded obligation under
      and income related to the
      termination of the indemni-
      fication agreement . . . . . . .      (7,144,354)        (44,734)
    Partnership's share of
      operations of unconsolidated
      ventures . . . . . . . . . . . .           6,415         184,900
    Partnership's share of gain on
      sale of indirect partnership
      interest . . . . . . . . . . . .        (686,077)          --
  Changes in:
    Interest, rents and other
      receivables. . . . . . . . . . .           8,490           4,466
    Accounts payable and other
      current liabilities. . . . . . .          25,188         302,501
                                          ------------     -----------
          Net cash provided by
            (used in) operating
            activities . . . . . . . .        (105,329)       (159,224)
                                          ------------     -----------
Cash flows from investing
 activities:
  Partnership's distributions
    from unconsolidated ventures . . .           --         26,411,064
                                          ------------     -----------
          Net cash provided by
            (used in) investing
            activities . . . . . . . .           --         26,411,064
                                          ------------     -----------
Cash flows from financing activities:
  Distributions to General Partners. .           --           (133,522)
  Distributions to Limited Partners. .           --        (23,232,801)
                                          ------------     -----------
        Net cash provided by
          (used in) financing
          activities . . . . . . . . .           --        (23,366,323)
                                          ------------     -----------
        Net increase (decrease)
          in cash and cash equi-
          valents. . . . . . . . . . .        (105,329)      2,885,517
        Cash and cash equivalents,
          beginning of year. . . . . .       8,599,183       9,715,669
                                          ------------     -----------
        Cash and cash equivalents,
          end of period. . . . . . . .    $  8,493,854      12,601,186
                                          ============     ===========



              See accompanying notes to financial statements.


<PAGE>


               CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV
                          (A LIMITED PARTNERSHIP)

                       NOTES TO FINANCIAL STATEMENTS

                          MARCH 31, 2001 AND 2000

                                (UNAUDITED)

GENERAL

     Readers of this quarterly report should refer to the Partnership's
audited financial statements for the year ended December 31, 2000 which are
included in the Partnership's 2000 Annual Report on Form 10-K filed on
March 23, 2001 (File No. 0-15962) as certain footnote disclosures which
would substantially duplicate those contained in such audited financial
statements have been omitted from this report.  Capitalized terms used but
not defined in this quarterly report have the same meanings as in the
Partnership's 2000 Annual Report on Form 10-K.

     The preparation of financial statements in accordance with GAAP
requires the Partnership to make estimates and assumptions that affect the
reported or disclosed amount of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from those
estimates.

     The Partnership adopted Statement of Financial Accounting Standards
No. 121 ("SFAS 121") "Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of" ("SFAS 121") as required in
the first quarter of 1996.  The Partnership and its ventures' policy is to
consider a property to be held for sale or disposition when the Partnership
or venture has committed to a plan to sell or dispose of such property and
active marketing activity has commenced or is expected to commence in the
near term or the Partnership or venture has concluded that it may dispose
of the property by no longer funding operating deficits or debt service
requirements of the property thus allowing the lender to realize upon its
security.  In accordance with SFAS 121, any properties identified as "held
for sale or disposition" are no longer depreciated.  The unconsolidated
venture's commitment to a plan for sale or disposal of the Piper Jaffray
Tower had, as of June 30, 1999, not resulted in a sale or disposition.  As
a result, the unconsolidated venture made an adjustment to record
depreciation expense as of that date that would have been recognized had
the Piper Jaffray Tower not been considered "held for sale or disposition".

Further, the unconsolidated venture began to record depreciation expense
for this property commencing July 1, 1999.  However, as discussed below,
due to the commencement by the mortgage lender to realize upon its security
in the property, the unconsolidated venture reclassified the property as
held for sale or disposition as of July 1, 2000.

     In addition, the accompanying financial statements include for the
three month periods ended March 31, 2001 and 2000 operations of ($6,415)
and ($184,900), respectively, as the Partnership's share of total property
operations of ($366) and ($209,817) of unconsolidated properties which were
classified as held for sale or disposition or sold in the past two years.

TRANSACTIONS WITH AFFILIATES

     The Partnership, pursuant to the Partnership Agreement, is permitted
to engage in various transactions involving the Corporate General Partner
and its affiliates including the reimbursement for salaries and salary-
related expenses of its employees and certain of its officers, and for
other direct expenses relating to the administration of the Partnership and
the operation of the Partnership's investments.  Fees, commissions and
other expenses required to be paid by the Partnership to the General
Partners and their affiliates as of March 31, 2001 and for the three months
ended March 31, 2001 and 2000 were as follows:


<PAGE>


                                                              Unpaid at
                                                              March 31,
                                        2001       2000         2001
                                      -------     -------     ---------
Management fees to Corporate
  General Partner. . . . . . . . .    $  --       222,536         --
Reimbursement (at cost) for
  out-of-pocket salary and
  salary-related expenses and
  other costs for the Partner-
  ship and its investment
  properties . . . . . . . . . . .     18,969      49,196        14,500
                                      -------     -------       -------
                                      $18,969     271,732        14,500
                                      =======     =======       =======

     In connection with the distributions of cash flow from operations in
February and August 2000, the General Partners received distributions
aggregating approximately $134,000 and $167,000, respectively.  The
Corporate General Partner also received management fees aggregating
approximately $223,000 (reflected in the table above) and $278,000 in
February and August 2000, respectively.

     The manager of Piper Jaffray Tower (which was an affiliate of the
Corporate General Partner through November 1994) had agreed to defer
receipt of its property management fees pursuant to a loan modification.
Such fees deferred by the former affiliate were approximately $1,839,000
(of which approximately $919,500 was the Partnership's share) and the
former affiliate was to receive payment thereof out of the amount
available, if any, from the escrow of the management fees, which had been
required by the lender.  However, in conjunction with the default under the
mortgage loan and the subsequent appointment of the receiver for the Piper
Jaffray Tower, the escrowed funds were applied to the outstanding principal
balance of the mortgage loan, and the obligation to pay such deferred fees
was released.  As a result, such amounts were written off and are not
reflected in the unconsolidated venture's balance sheet at March 31, 2001
and December 31, 2000.

JMB/NYC

     As a result of the 1996 restructuring, JMB/NYC had an indirect limited
partnership interest which, before taking into account significant
preferences to other partners, equaled approximately 4.9% of the
reorganized and restructured ventures owning 237 Park and 1290 Avenue of
the Americas (the "Properties").  Neither O&Y nor any of its affiliates
retained any direct or indirect continuing interest in the Properties.  The
new ownership structure gave control of the Properties to an unaffiliated
real estate investment trust ("REIT") owned primarily by holders of the
first mortgage debt that encumbered the Properties prior to the bankruptcy.

JMB/NYC had, under certain limited circumstances, through January 1, 2001
rights of consent regarding sale of the Properties or the consummation of
certain other transactions that would have significantly reduced
indebtedness of the Properties.  In general, at any time on or after
January 2, 2001, an affiliate of the REIT had the right to purchase
JMB/NYC's interest in the Properties for an amount based on a formula
relating to the operations of the Properties (the "Formula Price").

     The restructuring and reorganization discussed above eliminated any
potential additional obligation of the Partnership in the future to provide
additional funds under its previous joint venture agreements (other than
that related to a certain indemnification agreement provided in connection
with such restructuring).



<PAGE>


     Pursuant to the indemnification agreement, the Affiliated Partners
were jointly and severally obligated to indemnify the REIT to the extent of
$25 million to ensure their compliance with the terms and conditions
relating to JMB/NYC's indirect limited partnership interest in the
restructured and reorganized joint ventures that owned the Properties.  The
Affiliated Partners contributed approximately $7,800,000 (of which the
Partnership's share was approximately $3,900,000) to JMB/NYC, which was
deposited into an escrow account as collateral for such indemnification.
These funds were invested in stripped U.S. Government obligations with a
maturity date of February 15, 2001.  Subsequent to that date, the remaining
escrowed funds were invested in short-term U.S. Government obligations.
Due to the Restructuring discussed below, the maximum potential obligation
was reduced to $14,285,000 and a portion of the collateral (approximately
$4,460,000 in face amount) was released in 1999 to JMB/NYC.  On March 23,
2001, JMB/NYC sold its indirect interest in the 1290 Partnership, and as a
result, the maximum potential obligation was reduced to $0 and the
remaining collateral (approximately $5,700,000 face amount) was released in
March 2001 to JMB/NYC.  The Partnership's share of the reduction of the
maximum unfunded obligation under the indemnification agreement recognized
as income, is a result of interest earned on amounts contributed by the
Partnership and held in escrow for JMB/NYC.  Interest income earned reduced
the Partnership's share of the maximum unfunded obligation under the
indemnification agreement, which was reflected as a liability in the
accompanying financial statements.

     In November 1999, JMB/NYC closed a transaction (the "Restructuring")
pursuant to which, among other things, JMB/NYC's interests in 237 Park
Avenue ("237 Park") and 1290 Avenue of the Americas ("1290 Avenue of the
Americas") were restructured.  Under the Restructuring, the partnership
that owns 237 Park has been converted to a limited liability company ("237
Park LLC").  The membership interest in 237 Park LLC owned by 237/1290
Upper Tier Associates, L.P. (the "Upper Tier Partnership"), in which
JMB/NYC is a limited partner with a 99% interest, was contributed to a
partnership (the "237 Partnership") that acquired the other membership
interests in 237 Park LLC from the REIT and one of its affiliates.  In
exchange for the interest in 237 Park LLC, the Upper Tier Partnership
received a limited partnership interest in the 237 Partnership having a
fair market value (determined in accordance with the partnership agreement
of the 237 Partnership) of approximately $500,000.  (JMB/NYC's total
investment in the 237 Partnership is significantly less than 1% of the 237
Partnership.)  The 237 Partnership owns a portfolio of investments in
addition to 237 Park.  JMB/NYC has the right, during the month of July of
each calendar year commencing with 2001, to cause a sale of the interest in
the 237 Partnership for a price equal to the greater of the fair market
value of such interest (determined in accordance with the partnership
agreement of the 237 Partnership) and a specified amount, of which
JMB/NYC's share would be $500,000.  In addition, the general partner of the
237 Partnership has the right, during the month of January of each calendar
year commencing with 2002, to purchase the interest in the 237 Partnership
for a price equal to the greater of the fair market value of such interest
(determined as described above) and a specified amount, of which JMB/NYC's
share would be $650,000.

     Although under the terms of the Restructuring JMB/NYC is not able to
cause a sale of the interest in the 237 Partnership prior to 2001, the
earliest date on which such interest may be purchased at the election of
the general partner of the 237 Partnership is January 2002.  In the absence
of JMB/NYC's earlier election to cause a sale of its interest in the 237
Partnership, this extends by a year (to January 2002 from January 2001) the
date on which JMB/NYC's indirect interest in 237 Park was previously
subject to purchase at the election of an affiliate of the REIT.



<PAGE>


     JMB/NYC's indirect interest through the Upper Tier Partnership in the
partnership (the "1290 Partnership") that owns 1290 Avenue of the Americas
was also modified, although the REIT continued to own the controlling
interest in the property. In general, the REIT had the right to sell 1290
Avenue of the Americas or engage in certain other transactions during the
period January 1, 2000 through February 28, 2001, provided that JMB/NYC
received the greater of (i) an amount based on a formula relating to the
operations of the property (the "1290 Formula Price") and (ii) $4,500,000.
No such transaction occurred during that period.  An affiliate of the REIT
also had the right, during the month of March of each calendar year
commencing with 2001, to purchase JMB/NYC's indirect interest in the 1290
Partnership for the greater of (x) the 1290 Formula Price and (y)
$1,400,000.  On March 2, 2001, JMB/NYC was notified that an affiliate of
the REIT intended to exercise its right to purchase JMB/NYC's indirect
interest in the 1290 Partnership and on March 23, 2001, the sale was
completed and JMB/NYC received approximately $1,400,000 at closing (of
which the Partnership's share is approximately $680,000 and is reflected in
the accompanying financial statements).  Such amount is payable to the
limited partners of JMB/NYC as holders of a tranche of the Purchase Note as
discussed below.  In addition, JMB/NYC received the remaining collateral
(approximately $5,700,000, of which the Partnership's share is
approximately $2,900,000 and is reflected in the accompanying financial
statements) held pursuant to the indemnification agreement, including
interest earned thereon, upon closing of the sale of its interest in the
1290 Partnership.  The sale and collateral amounts were received in May
2001.

     A portion of the purchase price for JMB/NYC's indirect interests in
the 1290 Avenue of the Americas and 237 Park Avenue office buildings is
represented by a certain promissory note (the "Purchase Note") bearing
interest at 12-3/4% per annum.  The Purchase Note is secured by JMB/NYC's
indirect interest in the 237 Partnership and the 1290 Partnership (prior to
its sale in March 2001) and is non-recourse to JMB/NYC.  The Purchase Note
requires payment of principal and interest out of distributions made to
JMB/NYC from the 1290 Partnership and the 237 Partnership.  Unpaid interest
accrues and is deferred, compounded monthly.  Unpaid principal and interest
were due at maturity on January 2, 2001.  As expected, JMB/NYC does not
have funds to pay the Purchase Note.  The limited partners of JMB/NYC, and
the holder of the Purchase Note have agreed to certain steps if the
Purchase Note is not repaid within one year of its maturity as discussed
below.  The outstanding principal and accrued and deferred interest on the
Purchase Note at March 31, 2001, was approximately $156,022,000, including
interest at the default rate (as defined) of 12-3/4% per annum.

     In December 1999, the Affiliated Partners advanced a total of
approximately $425,000 (of which the Partnership advanced approximately
$210,000) to the limited partners of JMB/NYC, which was used to acquire a
$5,425,000 tranche of the Purchase Note and the related security agreement
for the collateralization of such tranche.  As a result of this purchase,
such limited partners, as creditors of JMB/NYC, are entitled to receive up
to $5,425,000 in proceeds otherwise payable to JMB/NYC in respect of its
indirect interest in the 1290 Partnership or the 237 Partnership.  Such
amounts received by the limited partners will be distributed to the
Affiliated Partners in proportion to their respective advances made to
purchase the tranche (i.e., 50% to the Partnership and 50% in the aggregate
to the other Affiliated Partners).  In connection with their purchase of
the $5,425,000 tranche of the Purchase Note, the limited partners of
JMB/NYC agreed with the holder of the Purchase Note that in the event
JMB/NYC has not repaid all amounts due and owing under the Purchase Note
within one year after its maturity on January 2, 2001, the holder will take
the appropriate steps necessary to foreclose upon and obtain JMB/NYC's
interest in the Upper Tier Partnership in lieu of seeking any other
damages.



<PAGE>


JMB/PIPER

     U.S. Bancorp Piper Jaffray Inc. ("PJI"), which occupied 335,684 square
feet or approximately 46% of the building's rentable square feet vacated
the majority of its space (approximately 222,000 square feet) and moved to
a recently completed office tower upon expiration of its lease on May 31,
2000.  However, PJI extended a portion of its former space (approximately
114,000 square feet) through May 31, 2002, although the new rental rates,
while at market rates, were significantly less than rental rates under the
previous PJI lease.  Additionally, Piper executed new long-term leases
representing an additional approximately 170,000 square feet.  The property
manager had been actively pursuing replacement tenants for the balance of
the vacant space; however, given the extremely competitive nature of the
downtown Minneapolis market due to a significant amount of new office
construction, not all of the PJI space had been released quickly enough to
generate sufficient cash flow to fund the required debt service payments.
As a result, Piper did not make the required debt service payments under
the mortgage loan since June 1, 2000, and was in monetary default under
such loan.  Such default led to the appointment of a receiver and a
foreclosure sale of the property as described below.

     The mortgage loan had an original principal amount of $100,000,000.
Prior to the default, the lender was essentially entitled to all operating
cash flow (as defined) in excess of fixed interest and certain other costs.
During 2000 (prior to the default), no such cash flow was generated.  As of
March 31, 2001, aggregate amounts due to the lender were approximately
$109,000,000 including certain default interest.

     On a monthly basis, Piper was required to deposit the property
management fee into an escrow account to be used (including interest earned
thereon) for future leasing costs to the extent cash flow was not
sufficient to cover such items or to be applied to the outstanding loan
balance in the event of a default.  Prior to the execution of the
stipulation agreement (discussed below), approximately $339,000
representing property management fees was deposited and approximately
$970,000 was withdrawn from the escrow account for certain leasing costs in
2000.  The escrow balance as of July 20, 2000 was approximately $5,146,000.

Such balance was applied to the outstanding principal balance of the loan
on July 20, 2000, as a result of the default.  The manager of the property
(which was an affiliate of the Corporate General Partner through November
1994) had agreed to defer receipt of its management fee and receive the
payment thereof out of the amount available from the escrow account, if
any.  As of July 20, 2000, the manager had deferred approximately
$5,395,000 ($1,839,000 of which represented deferred fees due to an
affiliate of the Corporate General Partner through November 1994) of
management fees.  However, in conjunction with the appointment of the
receiver at the property and the application of the funds in the escrow
account to the outstanding loan balance, the obligation to pay the deferred
fees was released.  As a result, such fees were written off in the third
quarter of 2000.

     JMB/Piper, on behalf of Piper, had been negotiating with the lender to
transfer title to the property through a deed in lieu of foreclosure.
JMB/Piper and the lender were unable to reach an agreement related to such
a transaction.  Consequently, and as a result of the monetary default
discussed above, the lender began legal proceedings to realize upon its
security in the property.  In consideration for, among other things, Piper
and all of its constituent partners (collectively, the "Defendants") being
released under the loan documents upon the expiration of the redemption
period for foreclosure on the property and for payment of the Defendants'
expenses, within certain limitations, in connection with the transaction,
the Defendants executed a stipulation agreement consenting to a foreclosure


<PAGE>


sale of the property, including the fee interest in the land underlying the
building.  On July 20, 2000, the Court approved the stipulation and
appointed a receiver on behalf of the lender.  On September 26, 2000, a
sheriff's sale of the property occurred and on October 2, 2000, the
sheriff's sale received court approval.  Such sale was subject to
redemption of the property within six months of the date of such sale.  No
such redemption occurred and title to the property transferred to the
lender effective April 2, 2001.

     As a result of the monetary default on the mortgage loan, the property
had been classified as held for sale or disposition as of July 1, 2000, and
therefore, it has not been subject to continued depreciation beyond such
date for financial reporting purposes.

     As a result of the transfer of the property to the lender, the
Partnership expects to realize extraordinary gains related to its share of
the forgiveness of indebtedness and the write off of deferred fees of
approximately $7,600,000 for financial reporting purposes.  The Defendants
have no future liability for any representations, warranties and covenants
as a result of the transfer.

JMB/900

     During 1999, JMB/900, through Progress Partners, sold the 900 Third
Avenue Building to an unaffiliated third party.  As is customary in such
transactions, JMB/900 agreed to certain representations, warranties and
covenants with a stipulated survival period, which expired on September 15,
2000.  As required by the sale agreement, Progress Partners had placed
$2,000,000 into an escrow account for possible payment to the buyer in
event of a breach of such representations, warranties, covenants and for
certain other costs.  As a result of a claim made by the buyer under the
sale contract, in September 2000, Progress Partners received only a
portion, approximately $1,800,000, of such amount placed in escrow, plus
interest earned thereon.  Progress Partners was able to settle such claim
with the buyer and the remaining amount (approximately $200,000) held in
escrow, including interest earned thereon, was received by Progress
Partners in the first quarter of 2001.

     In February 2000, the Partnership received a distribution of
approximately $26,400,000 from JMB/900 representing the Partnership's share
of sales proceeds and cash flow generated from the operations of the 900
Third Avenue office building.  The Partnership's share of cash remaining at
the venture at March 31, 2001 (approximately $900,000) is expected to be
distributed to the Partnership in 2001.

WELLS FARGO CENTER

     The mortgage note secured by the property (with a balance of
approximately $181,000,000 as of March 31, 2001), as extended, bears
interest at 10% per annum and matures September, 2003.  All excess cash
flow is being escrowed for future tenant improvements and principal
payments.  In addition, upon sale or refinancing of the property subsequent
to September 1, 1999, the mortgage loan requires payment of participation
interest (as defined) of any excess proceeds.

     As modified, the amended and restated promissory note secured by the
Partnership's interest in the limited liability company, which has an
adjusted principal balance of approximately $21,988,000, and accrued
interest of approximately $16,509,000 at March 31, 2001, has a scheduled
maturity date in September 2003.  The note accrues interest at 17% per
annum and requires payments of cash flow distributed by the limited
liability company from either property operations or sales proceeds as well
as a portion of the property management fee paid to the unaffiliated member
in the limited liability company.  The loan is nonrecourse and secured
solely by the Partnership's interest in the limited liability company.



<PAGE>


     During April 2001, the Partnership received notice of default from the
lender under the amended and restated promissory note secured by the
Partnership's interest.  The Partnership is currently reviewing the alleged
defaults and the lender's rights to realize upon its security under the
loan agreements.  The lender may proceed to foreclose on the Partnership's
interest in the limited liability company in 2001.  In the event that the
Partnership's interest in the limited liability company is foreclosed upon
and transferred to the lender during 2001, the Partnership expects to
receive a significant amount of income for both Federal income tax and
financial reporting purposes in this year with no corresponding proceeds.
Due to the alleged default as discussed above, the Partnership has
reclassified the long-term debt to current portion of long-term debt at
March 31, 2001 in the accompanying financial statements.

     Due to the restructuring of the Partnership's interest in Wells Fargo
Center - South Tower in 1996, the Partnership has ceased loss recognition
relative to its real estate investment and has reversed those previously
recognized losses that the Partnership is no longer obligated to fund.  The
Partnership has no future funding obligation for its investment in Wells
Fargo Center - South Tower.  Accordingly, the Partnership has discontinued
the application of the equity method of accounting and additional losses
from the investment in Wells Fargo Center - South Tower will not be
recognized.

YERBA BUENA OFFICE BUILDING

     Due to the default of the joint venture that owned the Yerba Buena
Office Building (a partnership comprised of the Partnership, two other
partnerships sponsored by the Partnership's Corporate General Partner, and
four unaffiliated limited partners) in the payment of required debt
service, the former lender to such joint venture realized on its security
by taking title to the property in June 1992.  In return for a smooth
transition of title and management of the property (relative to which the
existing property manager that was affiliated with the Partnership's
Corporate General Partner agreed to continue to manage the property), the
joint venture was able to negotiate, among other things, a right of first
opportunity to purchase the property during the time frame from June 1995
through May 1998 should the lender wish to market the property for sale.
The lender sold the property in 1996.  However, the joint venture was not
given an opportunity to purchase the property on the same terms for which
it was sold.  As previously reported, the joint venture filed a lawsuit
against the lender for breach of its obligations.  In June 1998, the court
granted the lender's motion for summary judgment and dismissed the lawsuit.
The joint venture appealed the dismissal.  During the second quarter of
1999, the joint venture reached an agreement in principle with the lender
to settle the lawsuit.  In February 2000, the settlement was finalized and
the former lender paid $1,400,000 to the joint venture in resolution of the
dispute.  Simultaneously, the joint venture paid to its limited partners
$27,000 in settlement of any of their potential claims related to the
matter.  The Partnership's share of the settlement proceeds and cash held
at the joint venture was approximately $876,000, which the Partnership
received in the second quarter of 2000.




<PAGE>


UNCONSOLIDATED VENTURES - SUMMARY INFORMATION

     Summary income statement information for JMB/Piper, JMB/Piper II and
JMB/900 for the three months ended March 31, 2001 and 2000 are as follows:

                                                2001              2000
                                             -----------       ----------

  Total income from properties
    (unconsolidated) . . . . . . . . . . .   $ 3,882,257        5,290,504
                                             ===========       ==========

  Operating profit (loss) of ventures. . .   $      (366)        (209,817)
                                             ===========       ==========

  Partnership's share of
    operating profit (loss). . . . . . . .   $    (6,415)        (184,900)
                                             ===========       ==========


ADJUSTMENTS

     In the opinion of the Corporate General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of March 31,
2001 and for the three months ended March 31, 2001 and 2000.




<PAGE>


PART I.  FINANCIAL INFORMATION

     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     Reference is made to the notes (the "Notes") to the accompanying
consolidated financial statements for additional information concerning
certain of the Partnership's investment properties.

     At March 31, 2001, the Partnership had cash and cash equivalents of
approximately $8,494,000.  Such funds were available for working capital
requirements and potential future distributions to the General Partners and
Holders of Interests.  In addition, the Partnership expects to receive from
JMB/900 approximately $900,000 as its share of remaining proceeds from the
operations of the 900 Third Avenue Building.  As discussed below, JMB/NYC
sold its indirect interest in the 1290 Partnership in March 2001.  The
Partnership received its share of the proceeds from such sale
(approximately $686,000), as well as its share of the remaining funds
(approximately $2,871,000) held as collateral pursuant to the
indemnification in May 2001.  As discussed in more detail in the Notes, a
receiver was appointed for the Piper Jaffray Tower in July 2000 as a result
of the monetary default under the mortgage loan secured by the property and
cash flow generated by the property since then was under control of the
receiver.  Title transferred to the lender effective April 2, 2001, as
discussed below.  The Wells Fargo Center - South Tower investment property
is restricted as to the use of excess cash flows by an escrow agreement
negotiated pursuant to loan modifications.  Amounts held in escrow for a
particular property may be used for payment of tenant improvements and
other expenses related to the property.  Due to property specific concerns
discussed in the Notes, the Partnership does not consider its remaining
investment properties to be potential significant sources of future cash
generated from sales or operations.

     The Partnership has not budgeted any amounts for its share of tenant
improvements and other capital expenditures as it has no funding
obligations for its remaining investment properties.

     Pursuant to the indemnification agreement, the Affiliated Partners
were jointly and severally obligated to indemnify the REIT to the extent of
$25 million to ensure their compliance with the terms and conditions
relating to JMB/NYC's indirect limited partnership interest in the
restructured and reorganized joint ventures that owned the Properties.  The
Affiliated Partners contributed approximately $7,800,000 (of which the
Partnership's share was approximately $3,900,000) to JMB/NYC, which was
deposited into an escrow account as collateral for such indemnification.
These funds were invested in stripped U.S. Government obligations with a
maturity date of February 15, 2001.  Subsequent to that date, the remaining
escrowed funds were invested in short-term U.S. Government obligations.
Due to the Restructuring discussed below, the maximum potential obligation
was reduced to $14,285,000 and a portion of the collateral (approximately
$4,460,000 in face amount) was released in 1999 to JMB/NYC.  On March 23,
2001, JMB/NYC sold its indirect interest in the 1290 Partnership, and as a
result, the maximum potential obligation was reduced to $0 and the
remaining collateral (approximately $5,700,000 face amount) was released in
March 2001 to JMB/NYC.  The Partnership's share of the reduction of the
maximum unfunded obligation under the indemnification agreement recognized
as income, is a result of interest earned on amounts contributed by the
Partnership and held in escrow for JMB/NYC.  Interest income earned reduced
the Partnership's share of the maximum unfunded obligation under the
indemnification agreement, which was reflected as a liability in the
accompanying financial statements.



<PAGE>


     In November 1999, JMB/NYC closed a transaction (the "Restructuring")
closed pursuant to which, among other things, JMB/NYC's interests in 237
Park Avenue ("237 Park") and 1290 Avenue of the Americas ("1290 Avenue of
the Americas") were restructured.  Under the Restructuring, the partnership
that owns 237 Park has been converted to a limited liability company ("237
Park LLC").  The membership interest in 237 Park LLC owned by 237/1290
Upper Tier Associates, L.P. (the "Upper Tier Partnership"), in which
JMB/NYC is a limited partner with a 99% interest, was contributed to a
partnership (the "237 Partnership") that acquired the other membership
interests in 237 Park LLC from the REIT and one of its affiliates.  In
exchange for the interest in 237 Park LLC, the Upper Tier Partnership
received a limited partnership interest in the 237 Partnership having a
fair market value (determined in accordance with the partnership agreement
of the 237 Partnership) of approximately $500,000.  (JMB/NYC's total
investment in the 237 Partnership is significantly less than 1% of the 237
Partnership.)  The 237 Partnership owns a portfolio of investments in
addition to 237 Park.  JMB/NYC has the right, during the month of July of
each calendar year commencing with 2001, to cause a sale of the interest in
the 237 Partnership for a price equal to the greater of the fair market
value of such interest (determined in accordance with the partnership
agreement of the 237 Partnership) and a specified amount, of which
JMB/NYC's share would be $500,000.  In addition, the general partner of the
237 Partnership has the right, during the month of January of each calendar
year commencing with 2002, to purchase the interest in the 237 Partnership
for a price equal to the greater of the fair market value of such interest
(determined as described above) and a specified amount, of which JMB/NYC's
share would be $650,000.

     Although under the terms of the Restructuring JMB/NYC is not able to
cause a sale of the interest in the 237 Partnership prior to 2001, the
earliest date on which such interest may be purchased at the election of
the general partner of the 237 Partnership is January 2002.  In the absence
of JMB/NYC's earlier election to cause a sale of its interest in the 237
Partnership, this extends by a year (to January 2002 from January 2001) the
date on which JMB/NYC's indirect interest in 237 Park was previously
subject to purchase at the election of an affiliate of the REIT.

     JMB/NYC's indirect interest through the Upper Tier Partnership in the
partnership (the "1290 Partnership") that owns 1290 Avenue of the Americas
was also modified, although the REIT continued to own the controlling
interest in the property. In general, the REIT had the right to sell 1290
Avenue of the Americas or engage in certain other transactions during the
period January 1, 2000 through February 28, 2001, provided that JMB/NYC
received the greater of (i) an amount based on a formula relating to the
operations of the property (the "1290 Formula Price") and (ii) $4,500,000.
No such transaction occurred during that period.  An affiliate of the REIT
also had the right, during the month of March of each calendar year
commencing with 2001, to purchase JMB/NYC's indirect interest in the 1290
Partnership for the greater of (x) the 1290 Formula Price and (y)
$1,400,000.  On March 2, 2001, JMB/NYC was notified that an affiliate of
the REIT intended to exercise its right to purchase JMB/NYC's indirect
interest in the 1290 Partnership and on March 23, 2001, the sale was
completed and JMB/NYC received approximately $1,400,000 at closing (of
which the Partnership's share is approximately $680,000 and is reflected in
the accompanying financial statements).  Such amount is payable to the
limited partners of JMB/NYC as holders of a tranche of the Purchase Note as
discussed below.  In addition, JMB/NYC received the remaining collateral
(approximately $5,700,000, of which the Partnership's share is
approximately $2,900,000 and is reflected in the accompanying financial
statements) held pursuant to the indemnification agreement, including
interest earned thereon, upon closing of the sale of its interest in the
1290 Partnership.  The sale and collateral amounts were received in May
2001.



<PAGE>


     A portion of the purchase price for JMB/NYC's indirect interests in
the 1290 Avenue of the Americas and 237 Park Avenue office buildings is
represented by a certain promissory note (the "Purchase Note") bearing
interest at 12-3/4% per annum.  The Purchase Note is secured by JMB/NYC's
indirect interest in the 237 Partnership and the 1290 Partnership (prior to
its sale in March 2001) and is non-recourse to JMB/NYC.  The Purchase Note
requires payment of principal and interest out of distributions made to
JMB/NYC from the 1290 Partnership and the 237 Partnership.  Unpaid interest
accrues and is deferred, compounded monthly.  Unpaid principal and interest
were due at maturity on January 2, 2001.  As expected, JMB/NYC does not
have funds to pay the Purchase Note.  The limited partners of JMB/NYC, and
the holder of the Purchase Note have agreed to certain steps if the
Purchase Note is not repaid within one year of its maturity as discussed
below.  The outstanding principal and accrued and deferred interest on the
Purchase Note at March 31, 2001, was approximately $156,022,000, including
interest at the default rate (as defined) of 12-3/4% per annum.

     In December 1999, the Affiliated Partners advanced a total of
approximately $425,000 (of which the Partnership advanced approximately
$210,000) to the limited partners of JMB/NYC, which was used to acquire a
$5,425,000 tranche of the Purchase Note and the related security agreement
for the collateralization of such tranche.  As a result of this purchase,
such limited partners, as creditors of JMB/NYC, are entitled to receive up
to $5,425,000 in proceeds otherwise payable to JMB/NYC in respect of its
indirect interest in the 1290 Partnership or the 237 Partnership.  Such
amounts received by the limited partners will be distributed to the
Affiliated Partners in proportion to their respective advances made to
purchase the tranche (i.e., 50% to the Partnership and 50% in the aggregate
to the other Affiliated Partners).  In connection with their purchase of
the $5,425,000 tranche of the Purchase Note, the limited partners of
JMB/NYC agreed with the holder of the Purchase Note that in the event
JMB/NYC has not repaid all amounts due and owing under the Purchase Note
within one year after its maturity on January 2, 2001, the holder will take
the appropriate steps necessary to foreclose upon and obtain JMB/NYC's
interest in the Upper Tier Partnership in lieu of seeking any other
damages.

     As discussed in the Notes, JMB/Piper, on behalf of Piper, had been
negotiating with the lender to transfer title to the Piper Jaffray Tower
through a deed in lieu of foreclosure.  JMB/Piper and the lender were
unable to reach an agreement related to such a transaction.  Consequently,
and as a result of the monetary default under the mortgage loan secured by
the property, the lender began legal proceedings to realize upon its
security in the building.  In consideration for, among other things, Piper
and all of its constituent partners (collectively, the "Defendants") being
released under the loan documents upon the expiration of the redemption
period for foreclosure on the property and for payment of the Defendants'
fees in connection with the transaction, within certain limitations, the
Defendants executed a stipulation agreement consenting to a foreclosure
sale of the property, including the fee interest in the land underlying the
building.  On July 20, 2000, the Court approved the stipulation and
appointed a receiver on behalf of the lender.  On September 26, 2000, a
sheriff's sale of the property occurred at which the lender received a
sheriff's certificate of sale.  On October 2, 2000, the court approved such
sale subject to redemption of the property at any time within six months
from the date of such sale.  No such redemption occurred and title to the
property transferred to the lender effective April 2, 2001.  As a result of
the transfer, the Partnership expects to realize extraordinary gains
related to its share of the forgiveness of indebtedness and the write off
of deferred fees of approximately $7,600,000 for financial reporting
purposes.  The Defendants have no future liability for any representations,
warranties and covenants as a result of the transfer.



<PAGE>


     The Wells Fargo Center - South Tower continues to suffer from the
effects of the high level of debt secured by the property, and provides no
cash flow to the Partnership.  The lender has had discussions with the
Partnership regarding alleged defaults under the loan agreements secured by
the Partnership's interest in the limited liability company that owns the
property.  During April 2001, the Partnership received a notice of default
from the lender.  The Partnership is currently reviewing the alleged
defaults and the lender's rights to realize upon its security under the
loan agreements.  In the event that the Partnership's interest in the
limited liability company is foreclosed upon and transferred to the lender
during 2001, the Partnership expects to receive a significant amount of
income for both Federal income tax and financial reporting purposes in this
year with no corresponding proceeds.  In such event, the Partnership would
liquidate and terminate in 2001.  If such foreclosure does not occur in the
current year, the Partnership currently anticipates that its liquidation
and termination would occur no later than the end of 2002, barring any
unexpected circumstances.

     In connection with the sale of the 900 Third Avenue Building in
November 1999, Progress Partners agreed to certain representations,
warranties and covenants with a stipulated survival period, which expired
on September 15, 2000.  As required by the sale agreement, Progress
Partners had placed $2,000,000 into an escrow account for possible payment
to the buyer in the event of a breach of such representations, warranties,
covenants and for certain other costs.  As a result of a claim made by the
buyer under the sale contract, in September 2000, Progress Partners
received approximately $1,800,000 as a return of a portion of such amounts
placed in escrow, plus interest earned thereon.  Progress Partners was able
to settle such claim with the buyer and the remaining amount (approximately
$200,000) held in escrow, including interest earned thereon, was received
by Progress Partners in the first quarter of 2001.

     The Partnership's and its ventures' obligations generally are or have
been separate non-recourse loans secured individually by the investment
properties and are or were not obligations of the entire investment
portfolio, and the Partnership and its ventures are or were not personally
liable for the payment of the indebtedness.

     Although the Partnership expects to make minimal future cash
distributions, aggregate distributions received by Holders of Interest over
the entire term of the Partnership will be approximately one-fourth of
their original investment.  However, in connection with sales or other
dispositions (including transfers to lenders) of properties (or interests
therein) owned by the Partnership or its ventures, Holders of Interests
will be allocated gain for Federal income tax purposes, regardless of
whether any proceeds are distributed from such sales or other dispositions.

The remaining investment properties have high levels of debt secured by the
property and, in certain instances, by the Partnership's interest in the
property. Reference is made to the Notes for a description of such
indebtedness.

     The Partnership does not expect to receive any substantial proceeds
from operations or sales of its properties (or the Partnership's interests
in the properties).  However, upon disposition of each of these properties
or the Partnership's interest therein, the Partnership, and therefore the
Holders of Interests, will recognize a substantial amount of taxable income
with little or no distributable proceeds.  In this regard, the
Partnership's interest, through JMB/NYC, in 1290 Avenue of the Americas was
sold in March 2001.  Title to the Piper Jaffray Tower transferred to the
lender on April 2, 2001.  The Partnership's only remaining investment
properties are its indirect interest through JMB/NYC in the 237 Partnership
and its interest in Wells Fargo Center - South Tower.  The general partner
of the 237 Partnership has indicated that it intends to exercise its right
to purchase JMB/NYC's interest in the 237 Partnership in January 2002,
unless JMB/NYC has already exercised its right to sell its interest in July
2001.  In addition, the lender under the amended and restated promissory
note secured by the Partnership's interest in the limited liability company


<PAGE>


that owns Wells Fargo Center - South Tower has given the Partnership a
notice of default under the loan and is expected to seek to foreclose on
the Partnership's interest in the limited liability company.

     The Partnership estimates that, as a result of the sale of JMB/NYC's
interest in the 1290 Partnership, such taxable income will be approximately
$155 per interest.  Additionally, as a result of the disposition of the
Piper Jaffray Tower in 2001, the Partnership estimates that such taxable
income will be approximately $50 per interest.  Additional taxable income
of approximately $325 per interest could be recognized in 2001 as a result
of the exercise of certain purchase and sale rights with respect to
JMB/NYC's interest in the 237 Partnership.  Additionally, taxable income of
approximately $65 per interest could be recognized in 2001 as a result of a
sale or disposition of the Partnership's interest in the Wells Fargo Center
- South Tower in 2001.  For certain Holders of Interest, such taxable gain
may be offset by their suspended passive activity losses (if any).  Each
Holder's tax consequences will depend on such Holder's own tax situation.

RESULTS OF OPERATIONS

     The receivable related to the termination of the indemnification
agreement at March 31, 2001 is the amount due from an affiliate related to
the Partnership's share of the collateral returned to JMB/NYC upon
termination of the indemnification agreement in 2001.  The Partnership
received such amounts in May 2001.

     The receivable related to the sale of the indirect interest in 1290
Partnership at March 31, 2001 is the amount due from an affiliate related
to the Partnership's share of the proceeds of the March 23, 2001 sale of
JMB/NYC's indirect interest in 1290 Partnership.  The Partnership received
such amounts in May 2001.

     The increase in accounts payable at March 31, 2001 as compared to
December 31, 2000 is primarily due to the timing of payment for certain of
the administrative expenses of the Partnership.

     The increase in current portion of long-term debt and the
corresponding decrease in long-term debt, less current portion at March 31,
2001 as compared to December 31, 2000 is due to the reclassification of the
promissory note secured by the Partnership's interest in the limited
liability company that owns the Wells Fargo Center - South Tower as a
result of the notice of default received by the Partnership from the lender
in April 2001.

     The decrease in the Partnership's share of the maximum unfunded
obligation under the indemnification agreement as of March 31, 2001
compared to December 31, 2000 is primarily due to the termination of such
indemnification agreement upon sale of the indirect Partnership interest in
the 1290 Partnership on March 23, 2001.

     The decrease in interest income for the three months ended March 31,
2001 as compared to the same period in 2000 is primarily due to temporary
investment of the cash received from the sale of JMB/900 in November 1999.
Portions of such funds were distributed to the General Partners and Holders
of Interests in late February 2000 and August 2000.

     The decrease in management fees to Corporate General Partner for the
three months ended March 31, 2001 as compared to the same period in 2000 is
due to the distributions of cash flow from operations to the General
Partners and the Holders of Interest in February 2000.  The management fee
is based upon a percentage of the distributions of cash flow from
operations.



<PAGE>


     The decrease in general and administrative expenses for the three
months ended March 31, 2001 as compared to the same period in 2000 is
primarily due to the first quarter of 2000 payment by the Partnership for
state income taxes owed as a result of the sale of the Louis Joliet Mall in
July 1999.

     The Partnership's share of the reduction of the maximum unfunded
obligation under and income related to termination of the indemnification
agreement recognized as income during 2001 of $7,144,354 is a result of the
Partnership's share of the reduction of the maximum indemnification
obligation due to the sale of JMB/NYC's indirect interest in the 1290
Partnership in March of 2001 and release of the Partnership's and other
Affiliated Partners' indemnification obligation relating to the interest in
the 1290 Partnership as well as interest earned during 2001 on amounts
contributed by the Partnership and held in escrow by JMB/NYC.  Such
interest income earned reduced the Partnership's proportionate share of the
maximum unfunded obligation under the indemnification agreement.

     The increase in Partnership's share of operations of unconsolidated
ventures for the three months ended March 31, 2001 as compared to the same
period in 2000 is primarily due to the cessation of the recording of
depreciation for the Piper Jaffray Tower from July 1, 2000 as a result of
the property being reclassified as held for sale or disposition as of that
date.

     The Partnership's share of gain on sale of indirect partnership
interest for the three months ended March 31, 2001 is the Partnership's
share of JMB/NYC's sale of its indirect partnership interest in the 1290
Partnership on March 23, 2001.



PART II.  OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS

     On July 20, 2000, an action entitled TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA V. 222 SOUTH NINTH STREET LIMITED PARTNERSHIP, OB
JOINT VENTURE, JMB/PIPER JAFFRAY TOWER ASSOCIATES, CARLYLE REAL ESTATE
LIMITED PARTNERSHIP-XIV, JMB/PIPER JAFFRAY TOWER ASSOCIATES II, CAMPBELL-
MITHUN-ESTY, L.L.C., U.S. BANCORP PIPER JAFFRAY INC. JMB REALTY
CORPORATION, OB JOINT VENTURE II AND LHDL REALTY LIMITED PARTNERSHIP was
initiated in and an order for judgement entered by Minnesota District Court
of Hennepin County, Minnesota.  In the proceeding, Teachers Insurance and
Annuity Association of America ("Teachers"), as the holder of the mortgage
note secured by the Piper Jaffray Tower, sought the enforcement of its
security interest and the appointment of a receiver for the benefit of the
lender to take exclusive possession, control and operation of the property.

Due to a substantial amount of space vacated by a major tenant at the
expiration of its lease in May 2000, the property owning venture had not
made all of the scheduled debt service payments on the mortgage note since
June 1, 2000.  In consideration for, among other things, being released
under the mortgage loan documents upon the expiration of the redemption
period for foreclosure on the property and for payment of their fees in
connection with the transaction, within certain limitations, the defendants
listed above executed a stipulation consenting to the foreclosure sale of
the property.  In July 2000, the Court approved the stipulation agreement,
granted Teachers' application and entered an order for a receiver to take
exclusive possession, control and operation of the property.  Accordingly,
the receiver assumed control of the property and its operations.  In
September 2000, a sheriff's sale of the property was held, and in October
2000 the Court approved the sheriff's sale.  Such sale was subject to
redemption of the property within six months from the date of sale.  No
redemption of the property occurred, and title to the property transferred
to Teachers effective April 2, 2001.

     The Partnership is not subject to any other material legal
proceedings.


<PAGE>


     ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     The joint venture that owned the Piper Jaffray Tower had not made all
of the scheduled debt service payments on the mortgage note secured by the
property since June 1, 2000.  As of March 31, 2001, aggregate amounts due
to the lender were approximately $109,000,000, including certain default
interest.  Title transferred to the lender effective April 2, 2001 as a
result of the lender's foreclosure on the property.  Reference is made to
the subsection entitled "JMB/Piper" in the Notes to the Financial
Statements filed with this report for a further discussion of the default
under the mortgage loan secured by the Piper Jaffray Tower, which
discussion is hereby incorporated herein by reference.

     The lender of the loans secured by the Partnership's interest in the
limited liability company that owns the Wells Fargo Center - South Tower
has had discussions with the Partnership regarding alleged defaults under
the loan agreements secured by the Partnership's interest in the limited
liability company that owns the property.  During April 2001, the
Partnership received a notice of default from the lender.  The Partnership
is currently reviewing the alleged defaults and the lender's rights to
realize upon its security under the loan agreements.  As of March 31, 2001,
the promissory note secured by the Partnership's interest in the limited
liability company has an adjusted principal balance of approximately
$21,988,000 and accrued interest of approximately $16,509,000.  Reference
is made to the subsection entitled "Wells Fargo Center" in the Notes to the
Financial Statements filed with this report for a further discussion of the
alleged default under the loan agreements secured by the Partnership's
interest in the limited liability company that owns the Wells Fargo Center,
which discussion is hereby incorporated by reference.

     A portion of the purchase price for JMB/NYC's indirect interests in
the 1290 Avenue of the Americas and 237 Park Avenue office buildings is
represented by a certain promissory note (the "Purchase Note") bearing
interest at 12-3/4% per annum.  The Purchase Note is secured by JMB/NYC's
indirect interest in the 1290 Partnership (prior to its sale in March 2001)
and the 237 Partnership and is non-recourse to JMB/NYC.  The Purchase Note
requires payment of principal and interest out of distributions made to
JMB/NYC from the 1290 Partnership and the 237 Partnership.  Unpaid interest
accrues and is deferred, compounded monthly.  Unpaid principal and interest
were due at maturity on January 2, 2001.  As expected, JMB/NYC does not
have funds to pay the Purchase Note.  The limited partners of JMB/NYC, as
creditors, and the holder of the Purchase Note have agreed to certain steps
if the Purchase Note is not repaid within one year of its maturity.  The
outstanding principal and accrued and deferred interest on the Purchase
Note at March 31, 2001, was approximately $156,022,000 including interest
at the default rate (as defined) of 12-3/4% per annum.  Reference is made
to the subsection entitled "JMB/NYC" in the Notes to the Financial
Statements filed with this report for a further discussion of the default
under the Purchase Note, which discussion is hereby incorporated herein by
reference.




<PAGE>


<TABLE>

PART II.  OTHER INFORMATION

     ITEM 5.  OTHER INFORMATION
                                                     OCCUPANCY

     The following is a listing of approximate occupancy levels by quarter for the Partnership's investment
properties owned during 2001.

<CAPTION>
                                                     2000                                  2001
                                      -------------------------------------     ------------------------------
                                       At         At         At         At       At       At       At      At
                                      3/31       6/30       9/30      12/31     3/31     6/30     9/30   12/31
                                      ----       ----       ----      -----     ----     ----    -----   -----
<S>                                 <C>        <C>        <C>        <C>       <C>      <C>      <C>    <C>
 1. 237 Park Avenue Building
     New York, New York. . . . . .      *          *          *          *        *
 2. 1290 Avenue of the
     Americas Building
     New York, New York. . . . . .      *          *          *          *        *
 3. Piper Jaffray Tower
     Minneapolis, Minnesota. . . .     92%        65%        65%        82%      82%
 4. Wells Fargo Center
     South Tower
     Los Angeles, California . . .      *          *          *          *        *

<FN>
----------------

     An "*" indicates that the joint venture which owns the property was restructured, and therefore, such
information is not meaningful for the Partnership.  Reference is made to the Notes for further information
regarding the reorganized and restructured ventures.


</TABLE>


<PAGE>


     ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

        (a)  Exhibits

             3-A.*    Amended and Restated Agreement of Limited
Partnership.

             3-B.*    Assignment Agreement by and among the Partnership,
the General Partners and the Initial Limited Partner.

             3-C.     Acknowledgement of rights and duties of the General
Partners of the Partnership between ABPP Associates, L.P. (a successor
Associated General Partner of the Partnership) and JMB Realty Corporation
as of December 31, 1995 is incorporated herein by reference to the
Partnership's Report for September 30, 1996 on Form 10-Q (File No. 0-15962)
dated November 8, 1996.

             10-A.    Notice to Purchase Limited Partnership Interest of
237/1290 Upper Tier Associates, L.P. in 1290 Partners, L.P. dated March 2,
2001 is hereby filed herewith.


--------------

             *  Previously filed as Exhibits 3-B and 3-C, respectively, to
the Partnership's Report for December 31, 1992 on Form 10-K of the
Securities Exchange Act (File No. 0-15962) filed on March 30, 1993 and
hereby incorporated herein by reference.

        (b)  No reports on Form 8-K were filed during the period covered
by this report.




<PAGE>


                                SIGNATURES



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


                 CARLYLE REAL ESTATE LIMITED PARTNERSHIP - XIV

                 BY:   JMB Realty Corporation
                       (Corporate General Partner)




                       By:   GAILEN J. HULL
                             Gailen J. Hull, Senior Vice President
                       Date: May 9, 2001


     Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.




                             GAILEN J. HULL
                             Gailen J. Hull, Principal Accounting Officer
                       Date: May 9, 2001

1460: