SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(Mark One)

  X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 1997
                               ------------------
                                      OR

     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the transition period from              to             
                               ------------    ------------
Commission file number 0-13334
                       -------

                   BALCOR REALTY INVESTORS 84-SERIES II,
                     A REAL ESTATE LIMITED PARTNERSHIP         
          -------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Maryland                                       36-3223939    
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

2355 Waukegan Road
Bannockburn, Illinois                                     60015    
----------------------------------------            ------------------- 
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                  --------------
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>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                                BALANCE SHEETS
                     March 31, 1997 and December 31, 1996
                                  (Unaudited)

                                    ASSETS

                                                 1997            1996
                                           --------------  --------------
Cash and cash equivalents                  $   1,005,926   $   2,025,727
Escrow deposits                                  616,530         634,200
Accounts and accrued interest receivable         811,680         648,039
Prepaid expenses                                  11,194          44,776
Deferred expenses, net of accumulated
  amortization of $205,257 in 1997 and
  $187,891 in 1996                               183,057         200,423
                                           --------------  --------------
                                               2,628,387       3,553,165
                                           --------------  --------------
Investment in real estate:
  Land                                         2,714,509       2,714,509
  Buildings and improvements                  17,638,625      17,638,625
                                           --------------  --------------
                                              20,353,134      20,353,134
  Less accumulated depreciation                8,425,579       8,291,565
                                           --------------  --------------
Investment in real estate, net of
  accumulated depreciation                    11,927,555      12,061,569
                                           --------------  --------------
                                           $  14,555,942   $  15,614,734
                                           ==============  ==============

                     LIABILITIES AND PARTNERS' DEFICIT

Accounts payable                           $      35,981   $      66,808
Due to affiliates                                128,122         134,062
Accrued real estate taxes                        166,809         147,601
Security deposits                                129,886         125,211
Mortgage notes payable                        17,176,570      17,211,741
                                           --------------  --------------
    Total liabilities                         17,637,368      17,685,423
                                           --------------  --------------
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                                BALANCE SHEETS
                     March 31, 1997 and December 31, 1996
                                  (Unaudited)


                                                 1997            1996
                                           --------------  --------------


Commitments and contingencies

Limited Partners' deficit (87,037 Interests
  issued and outstanding)                     (2,352,788)     (1,343,455)

General Partner's deficit                       (728,638)       (727,234)
                                           --------------  --------------
    Total partners' deficit                   (3,081,426)     (2,070,689)
                                           --------------  --------------
                                           $  14,555,942   $  15,614,734
                                           ==============  ==============



The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the quarters ended March 31, 1997 and 1996
                                  (Unaudited)


                                                1997            1996
                                           --------------  --------------
Income:
  Rental and service                       $   1,090,432   $   3,860,871
  Interest on short-term investments              15,420          22,347
                                           --------------  --------------
    Total income                               1,105,852       3,883,218
                                           --------------  --------------

Expenses:
  Interest on mortgage notes payable             400,891       1,366,721
  Interest on short-term loans from an        
    affiliate                                                    127,718
  Depreciation                                   134,014         526,012
  Amortization of deferred expenses               17,366          51,299
  Property operating                             448,739       1,387,260
  Real estate taxes                              101,075         322,423
  Property management fees                        55,931         172,169
  Administrative                                  88,203         102,698
                                           --------------  --------------
    Total expenses                             1,246,219       4,056,300
                                           --------------  --------------
Loss before gain on sale of property
    and participation in joint ventures         (140,367)       (173,082)

Gain on sale of property                                       1,363,431

Affiliates' participation in income
  from joint ventures                                           (231,190)
                                           --------------  --------------
Net (loss) income                          $    (140,367)  $     959,159
                                           ==============  ==============
Net (loss) income allocated to
  General Partner                          $      (1,404)  $       9,592
                                           ==============  ==============
Net (loss) income allocated to
  Limited Partners                         $    (138,963)  $     949,567
                                           ==============  ==============
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the quarters ended March 31, 1997 and 1996
                                  (Unaudited)


                                                1997            1996
                                           -------------  --------------


Net (loss) income per Limited
  Partnership Interest (87,037
  issued and outstanding)                  $       (1.60)  $       10.91
                                           ==============  ==============
Distribution to Limited Partners           $     870,370            None
                                           ==============  ==============
Distribution per Limited 
  Partnership Interest                     $       10.00            None
                                           ==============  ==============



The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                             STATEMENTS OF CASH FLOWS
                for the quarters ended March 31, 1997 and 1996
                                  (Unaudited)

                                                1997            1996
                                           --------------  --------------
Operating activities:
  Net (loss) income                        $    (140,367)  $     959,159
  Adjustments to reconcile net (loss)
    income to net cash (used in) provided
    by operating activities:
      Gain on sale of property                                (1,363,431)
      Affiliates' participation in income
        from joint ventures                                      231,190
      Depreciation of properties                 134,014         526,012
      Amortization of deferred expenses           17,366          51,299
      Net change in:
        Escrow deposits                           17,670         229,852
        Accounts and accrued
          interest receivable                   (163,641)       (205,750)
        Prepaid expenses                          33,582         124,113
        Accounts payable                         (30,827)        (33,243)
        Due to affiliates                         (5,940)         78,196
        Accrued liabilities                       19,208        (139,887)
        Security deposits                          4,675         (18,151)
                                           --------------  --------------
  Net cash (used in) provided by operating
    activities                                  (114,260)        439,359
                                           --------------  --------------
Investing activities:
  Proceeds from sale of property                               5,915,000
  Costs incurred in connection with sale
    of property                                                 (190,517)
                                                           --------------
  Net cash provided by investing activities                    5,724,483
                                                           --------------
Financing activities:
  Distribution to Limited Partners              (870,370)
  Distributions to joint venture partners-
    affiliates                                                  (121,796)
  Repayment of loans payable-affiliate                          (350,000)
  Principal payments on mortgage notes
    payable                                      (35,171)       (198,124)
  Repayment of mortgage note payable                          (5,081,898)
                                           --------------  --------------
  Net cash used in financing activities         (905,541)     (5,751,818)
                                           --------------  --------------
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                             STATEMENTS OF CASH FLOWS
                for the quarters ended March 31, 1997 and 1996
                                  (Unaudited)

                                                1997            1996
                                           --------------  --------------


Net change in cash and cash equivalents       (1,019,801)        412,024

Cash and cash equivalents at beginning
  of year                                      2,025,727         419,227
                                           --------------  --------------
Cash and cash equivalents at end of period $   1,005,926   $     831,251
                                           ==============  ==============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS

1. Accounting Policy:

In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the quarter ended March 31,
1997, and all such adjustments are of a normal and recurring nature.

2. Partnership Termination:

The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1996, the Partnership sold six properties. Currently, the
Partnership has entered into a contract to sell the Park Colony Apartments and
is actively marketing the remaining property in its portfolio. The Partnership
has retained a portion of the cash from the property sales to satisfy
obligations of the Partnership as well as establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees stemming from litigation involving the Partnership including,
but not limited to, the lawsuits discussed below in Note 5. In the absence of
any such contingency, the reserves will be paid within twelve months of the
last property being sold. In the event a contingency exists, reserves may be
held by the Partnership for a longer period of time.

3. Interest Expense:

During the quarters ended March 31, 1997 and 1996, the Partnership incurred
interest expense on mortgage notes payable of $400,891 and $1,366,721 and paid
interest expense of $400,891 and $1,383,482, respectively.

4. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
quarter ended March 31, 1997 were:
                                               
                                      Paid        Payable
                                   ------------   ---------

   Reimbursement of expenses to
     the General Partner, at cost     $13,511    $128,122


During the first six months of 1996, the Partnership repaid the General Partner
loan, primarily with proceeds from the sales of the Seabrook, La Contenta and
Meadow Creek apartment complexes. During the quarter ended March 31, 1996 the
Partnership incurred interest expense of $127,718 and paid interest expense of
$173,043 on these loans. Interest expense was computed at the American Express
Company cost of funds rate plus a spread to cover administrative expenses.  The
interest rate was 5.911% at the date of the loan repayment.
<PAGE>
5. Contingencies:

The Partnership is currently involved in two lawsuits whereby the Partnership
and certain affiliates have been named as defendants alleging substantially
similar claims involving certain federal securities law violations with regard
to the adequacy and accuracy of disclosures of information concerning, as well
as marketing efforts related to, the offering of the Limited Partnership
Interests of the Partnership. The defendants continue to vigorously contest
these actions. A plaintiff class has not been certified in either action and,
no determinations of the merits have been made. It is not determinable at this
time whether or not an unfavorable decision in either action would have a
material adverse impact on the financial position, operations and liquidity of
the Partnership. The Partnership believes it has meritorious defenses to
contest the claims.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Realty Investors 84-Series II, A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1983 to invest in and operate
income-producing real property. The Partnership raised $87,037,000 through the
sale of Limited Partnership Interests and utilized these proceeds to acquire
fourteen real property investments. The Partnership has since disposed of
twelve of these properties. Currently, the Partnership continues to operate the
two remaining properties.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1996 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

The Partnership recognized a net loss during the quarter ended March 31, 1997
as compared to net income during the same period in 1996 primarily due to the
gain recognized on the February 1996 sale of the Seabrook Apartments. Further
discussion of the Partnership's operations is summarized below.

1997 Compared to 1996
---------------------

Discussions of fluctuations between 1997 and 1996 refer to the quarters ended
March 31, 1997 and 1996.

The Partnership sold the La Contenta, Meadow Creek, Ridgetree - Phase II,
Rosehill Pointe, Seabrook and Westwood Village apartment complexes during 1996.
As a result, rental and service income, interest expense on mortgage notes
payable, depreciation, amortization, property operating expenses, real estate
taxes and property management fees decreased during 1997 as compared to 1996. 

Due to the repayment in full of the short-term loan from an affiliate during 
June 1996 with proceeds from the sales of the Seabrook, La Contenta and Meadow
Creek apartment complexes, interest expense on short-term loans from an
affiliate ceased during 1996. 

Due to lower portfolio management and legal fees, administrative expenses
decreased during 1997 as compared to 1996. This decrease was partially offset
by higher accounting fees.
<PAGE>
The Partnership sold the Seabrook Apartments, which was owned by a joint
venture consisting of the Partnership and two affiliates in February 1996. As a
result, the Partnership recognized a gain of $1,363,431 during 1996 on the sale
of the property. Affiliates' participation in income from joint venture ceased
during 1996 as a result of the sale.

Liquidity and Capital Resources
-------------------------------

The cash position of the Partnership as of March 31, 1997 decreased by
approximately $1,020,000 when compared to December 31, 1996 primarily due to a
special distribution during January 1997 to the Limited Partners from proceeds
received from the 1996 property sales. The Partnership used cash of
approximately $114,000 to fund its operating activities. The revenue generated
by the Partnership's properties was fully offset by the payment of
administrative expenses and expenditures relating to the fire damage incurred
at the Spring Creek Apartments. The Partnership expects to be reimbursed by its
insurance carrier for the cost of the damage to this property, less the
deductible. The Partnership used cash to fund its financing activities which
consisted of a payment of a distribution totaling approximately $870,000 to the
Limited Partners and principal payments on mortgage notes payable of
approximately $35,000.

The Partnership classifies the cash flow performance of its properties as
either positive, a marginal deficit or a significant deficit, each after
consideration of debt service payments unless otherwise indicated. A deficit is
considered to be significant if it exceeds $250,000 annually or 20% of the
property's rental and service income. The Partnership defines cash flow
generated from its properties as an amount equal to the property's revenue
receipts less property related expenditures, which include debt service
payments. During 1997 and 1996, the Park Colony Apartments generated positive
cash flow. The Spring Creek Apartments, which had generated positive cash flow
during 1996, generated a marginal cash flow deficit during 1997 as a result of
higher repair and maintenance expenditures. The La Contenta, Meadow Creek,
Rosehill Pointe and Westwood Village apartment complexes, which were sold in
1996, generated positive cash flow prior to their sales. In addition, the
Seabrook and Ridgetree - Phase II apartment complexes, which were also sold in
1996, generated marginal cash flow deficits prior to their sales. As of March
31, 1997, the occupancy rates of Park Colony and Spring Creek apartment
complexes were 92% and 97%, respectively. 

During 1996, the Partnership sold six properties. The Partnership has entered
into a contract to sell the Park Colony Apartments for a sale price of
$14,500,000 and is actively marketing the remaining property for sale. The
Partnership expects to sell the remaining two properties during 1997. The
timing of the termination of the Partnership and final distribution of cash
will depend upon the nature and extent of liabilities and contingencies which
exist or may arise. The Partnership has retained a portion of the cash from the
property sales to satisfy obligations of the Partnership as well as establish a
reserve for contingencies. Such contingencies may include legal and other fees
stemming from litigation involving the Partnership including, but not limited
to, the lawsuits discussed in Note 5 of Notes to Financial Statements. 
<PAGE>
In the absence of any such contingency, the reserves will be paid within twelve
months of the last property being sold. In the event a contingency exists,
reserves may be held by the Partnership for a longer period of time. Both of
the Partnership's two remaining properties are owned through the use of
third-party mortgage loan financing and, therefore, the Partnership is subject
to the financial obligations required by such loans. As a result of the General
Partner's efforts to refinance the existing loans with new lenders, the
Partnership has no third-party, first mortgage financing which matures prior to
January 1999.

To date, Limited Partners have received distributions of Net Cash Proceeds
totaling $68 per $1,000 Interest, as well as certain tax benefits. The
Partnership expects to make distributions from available proceeds received from
the remaining two properties being marketed for sale, although there can be no
assurance in this regard. In light of results to date, investors will not
recover a substantial portion of their original investment. 

Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices
depending on general or local economic conditions. In the long-term, inflation
will increase operating costs and replacement costs and may lead to increased
rental revenues and real estate values.
<PAGE>
                     BALCOR REALTY INVESTORS 84-SERIES II,
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Maryland Limited Partnership)

                          PART II - OTHER INFORMATION

Item 5.  Other Information
--------------------------

Park Colony Apartments
----------------------

In 1983, the Partnership acquired the Park Colony Apartments, Gwinnett County,
Georgia, utilizing approximately $6,508,000 of offering proceeds. The property
was acquired subject to mortgage financing of $9,530,000. In 1986, the first
mortgage loan was refinanced with a new $10,285,000 first mortgage loan from an
unaffiliated lender. The Partnership received excess refinancing proceeds of
approximately $519,000.

On April 30, 1997, the Partnership contracted to sell the property for a sale
price of $14,500,000 to an unaffiliated party, Ambassador VIII, L.P., a
Delaware limited partnership. The purchaser has deposited $300,000 into an
escrow account as earnest money. The remainder of the sale price will be
payable in cash at closing, scheduled for June 2, 1997. From the proceeds of
the sale, the Partnership will repay the outstanding balance of the first
mortgage loan which is expected to be approximately $9,880,000 at closing  and
will pay $290,000 as a brokerage commission to an affiliate of the third party
providing property management services for the property. The Partnership will
receive the remaining proceeds of approximately $4,330,000, less closing costs.
Of such proceeds, $100,000 will be placed in escrow and will not be disbursed
to the Partnership until the later of the settlement of any claims presented
by the purchaser or August 1, 1997.  Neither the General Partner nor any
affiliate will receive a brokerage commission in connection with the sale of
the property.  The General Partner will be reimbursed by the Partnership for 
its actual expenses incurred in connection with the sale.

An affiliate of the General Partner has simultaneously contracted to sell one
property to the purchaser. Affiliates of the General Partner sold two
properties to the purchaser during 1996.

The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible the sale of the property may not occur.

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

(a) Exhibits:

(4) Form of Subscription Agreement set forth as Exhibit 4.1 to Amendment No. 2
of the Registrant's Registration Statement on Form S-11 dated May 16, 1984
(Registration No. 2-89319), and Form of Confirmation regarding Interests in the
Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form 10-Q for
the quarter ended June 30, 1992 (Commission File No. 0-13334) is incorporated
herein by reference.
<PAGE>
(10) Material Contracts:

(a)(i) Agreement of Sale and attachment thereto relating to the sale of
Ridgetree Apartments, Phase II, previously filed as Exhibit 2(a) to the
Registrant's Current Report on Form 8-K dated April 23, 1996, is incorporated
herein by reference.

(ii) Master Amendment and Agreement dated May 22, 1996 relating to the sale of
Ridgetree Apartments, Phase II and Rosehill Pointe Apartments, previously filed
as Exhibit 2(a)(i) to the Registrant's Current Report on Form 8-K dated May 31,
1996, is incorporated herein by reference.

(iii) Master Amendment and Agreement #2 dated May 22, 1996 relating to the sale
of Ridgetree Apartments, Phase II and Rosehill Pointe Apartments, previously
filed as Exhibit 2(a)(ii) to the Registrant's Current Report on Form 8-K dated
May 31, 1996, is incorporated herein by reference.

(b) Agreement of Sale and attachment thereto relating to the sale of Rosehill
Pointe Apartments, previously filed as Exhibit 2(b) to the Registrant's Current
Report on Form 8-K dated April 23, 1996, is incorporated herein by reference.

(c)(i) Agreement of Sale and attachment thereto relating to the sale of
Westwood Village Apartments, previously filed as Exhibit (2) to the
Registrant's Current Report on Form 8-K dated September 4, 1996, is
incorporated herein by reference.

(ii) Modification Agreement relating to the sale of Westwood Village
Apartments, previously filed as Exhibit (10)(c)(ii) to the Registrant's Report
on Form 10-Q for the quarter ended September 30, 1996, is incorporated herein
by reference.

(iii) Letter Agreement relating to the sale of Westwood Village Apartments,
previously filed as Exhibit (10)(c)(iii) to the Registrant's Report on Form
10-Q for the quarter ended September 30, 1996, is incorporated herein by
reference.

(d) (i) Agreement of Sale and attachment thereto relating to the sale of Park
Colony Apartments is attached hereto.

(ii) First Amendment to Agreement of Sale relating to the sale of Park Colony
Apartments is attached hereto.

(iii) Escrow Agreement relating to the sale of Park Colony Apartments is
attached hereto.

(27) Financial Data Schedule of the Registrant for the quarter ended March 31,
1997 is attached hereto.

(b) Reports on Form 8-K:  No reports were filed on Form 8-K during the quarter
ended March 31, 1997.
<PAGE>
SIGNATURES


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


                            BALCOR REALTY INVESTORS 84-SERIES II,
                            A REAL ESTATE LIMITED PARTNERSHIP



                            By:  /s/ Thomas E. Meador 
                                --------------------------------
                                Thomas E. Meador
                                President and Chief Executive Officer and 
                                Director (Principal Executive Officer) of 
                                Balcor Partners-84 II, Inc., the General 
                                Partner



                            By:  /s/ Jayne A. Kosik
                                ---------------------------------
                                Jayne A. Kosik
                                Managing Director and Chief
                                Financial Officer (Principal Accounting        
                                Officer) of Balcor Partners-84 II, Inc., the 
                                General Partner



Date:  May 14, 1997                       
      ---------------
<PAGE>