UNITED STATES 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, 2000
                              ------------------
                                   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 0-13357
                       -------

                      BALCOR EQUITY PROPERTIES-XVIII
                     A REAL ESTATE LIMITED PARTNERSHIP
          ------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Illinois                                      36-3274349
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                      Identification No.)

2333 Waukegan Road, Suite 100
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
    -----     -----

                      BALCOR EQUITY PROPERTIES - XVIII
                     A REAL ESTATE LIMITED PARTNERSHIP
                     (An Illinois Limited Partnership)

                              BALANCE SHEETS
                   March 31, 2000 and December 31, 1999
                                (Unaudited)

                                   ASSETS

                                            2000              1999
                                         ------------     ------------
Cash and cash equivalents                $  1,672,409     $  1,709,777
Accounts and accrued interest receivable        7,412            8,360
Prepaid expenses                                3,975
                                         ------------     ------------
                                         $  1,683,796     $  1,718,137
                                         ============     ============


                    LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                         $     65,422     $     64,765
Due to affiliates                              11,028           32,837
                                         ------------     ------------
    Total liabilities                          76,450           97,602
                                         ------------     ------------
Commitments and contingencies

Limited Partners' capital (52,811
  Interests issued and outstanding)         1,734,093        1,734,093
General Partner's deficit                    (126,747)        (113,558)
                                         ------------     ------------
    Total partners' capital                 1,607,346        1,620,535
                                         ------------     ------------
                                         $  1,683,796     $  1,718,137
                                         ============     ============

The accompanying notes are an integral part of the financial statements.

                        BALCOR EQUITY PROPERTIES - XVIII
                        A REAL ESTATE LIMITED PARTNERSHIP
                        (An Illinois Limited Partnership)

                        STATEMENTS OF INCOME AND EXPENSES
                 for the quarters ended March 31, 2000 and 1999
                                   (Unaudited)


                                                   2000               1999
                                                ------------      ------------
Income:
  Interest on short-term investments            $     23,373      $     20,566
                                                ------------      ------------
    Total income                                      23,373            20,566
                                                ------------      ------------
Expenses:
  Administrative                                      36,562            35,502
                                                ------------      ------------
    Total expenses                                    36,562            35,502
                                                ------------      ------------
Net loss                                        $    (13,189)     $    (14,936)
                                                ============      ============
Net loss allocated to General Partner           $    (13,189)     $    (14,936)
                                                ============      ============
Net loss allocated to Limited Partners                  None              None
                                                ============      ============
Net loss per Limited Partnership Interest
  (52,811 issued and oustanding) -
  Basic and Diluted                                     None              None
                                                ============      ============

The accompanying notes are an integral part of the financial statements.

                        BALCOR EQUITY PROPERTIES - XVIII
                        A REAL ESTATE LIMITED PARTNERSHIP
                        (An Illinois Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                 for the quarters ended March 31, 2000 and 1999
                                   (Unaudited)


                                                    2000              1999
                                                 ------------     ------------
Operating activities:
  Net loss                                       $    (13,189)    $    (14,936)
  Adjustments to reconcile net loss to net
    cash used in operating activities:
      Net change in:
        Accounts and accrued interest
          receivable                                      948              477
        Prepaid expenses                               (3,975)          (1,896)
        Accounts payable                                  657           (4,625)
        Due to affiliates                             (21,809)           2,795
                                                 ------------     ------------
  Net cash used in operating activities               (37,368)         (18,185)
                                                 ------------     ------------
Net change in cash and cash equivalents               (37,368)         (18,185)

Cash and cash equivalents at beginning
  of year                                           1,709,777        1,741,812
                                                 ------------     ------------
Cash and cash equivalents at end of period       $  1,672,409     $  1,723,627
                                                 ============     ============

The accompanying notes are an integral part of the financial statements.

                        BALCOR EQUITY PROPERTIES-XVIII
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois 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,
2000, 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 of its
interests in real estate. The Partnership sold its final real estate investment
in July 1997. The Partnership has retained a portion of the cash from the
property sales to satisfy obligations of the Partnership as well as to
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 and costs stemming from
litigation involving the Partnership including, but not limited to, the Masri
and Bruss lawsuits discussed in Note 4 of Notes to the Financial Statements.
Due to this litigation, the Partnership will not be dissolved and reserves will
be held by the Partnership until the conclusion of such contingencies. There
can be no assurances as to the time frame for the conclusion of all
contingencies.

3. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
quarter ended March 31, 2000 were:

                                        Paid      Payable
                                      ---------  ----------
   Reimbursement of expenses to
     the General Partner, at cost     $ 30,046   $ 11,028

4. Contingencies:

(a) The Partnership is currently involved in two related lawsuits, Masri vs.
Lehman Brothers, Inc., et al. and Bruss, et al. vs. Lehman Brothers, Inc., et
al., whereby the Partnership and certain affiliates have been named as
defendants alleging substantially similar claims involving certain state
securities and common law violations with regard to the property acquisition
process of the Partnership, and 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. With respect to the Masri case, no determinations
upon any significant issues have been made. The Bruss complaint was filed on
January 25, 1999. On September 24, 1999, the court granted the defendants'
motion to dismiss the complaint for failure to state a cause of action. An
amended complaint was filed on November 30, 1999. The defendants filed a new
Motion to Dismiss on January 31, 2000. The defendants continue to vigorously
contest these claims. The Partnership believes it has meritorious defenses to
contest the claims. It is not determinable at this time how the outcome of
either action will impact the remaining cash reserves of the Partnership.

(b) In May 1999, a lawsuit was filed, Madison Partnership Liquidity Investors
XX, et al. vs. The Balcor Company, et al. whereby the General Partner and
certain affiliates have been named as defendants. The plaintiffs are entities
that initiated tender offers to purchase and, in fact, purchased units in
eleven affiliated partnerships. The complaint alleges breach of fiduciary
duties and breach of contract under the partnership agreement and seeks the
winding up of the affairs of the Partnership, the establishment of a
liquidating trust, the appointment of an independent trustee for the trust and
the distribution of a portion of the cash reserves to limited partners. On June
1, 1999 a second lawsuit was filed and was served on August 16, 1999, Sandra
Dee vs. The Balcor Company, et al. The Dee complaint is virtually identical to
the Madison Partnership complaint and on September 20, 1999 was consolidated
into the Madison Partnership case. On January 19, 2000, a hearing was held on
the defendants' motion to dismiss; the motion to dismiss was denied as to the
Partnership. The defendants intend to vigorously contest these actions. It is
not determinable at this time how the outcome of these actions will impact the
remaining cash reserves of the Partnership.

                        BALCOR EQUITY PROPERTIES-XVIII
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Equity Properties-XVIII A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1984 to invest in and operate
income-producing real property. The Partnership raised $52,811,000 through the
sale of Limited Partnership Interests and utilized these proceeds to acquire
four real property investments and a minority joint venture interest in one
additional real property. As of March 31, 2000, the Partnership has no
properties remaining in its portfolio.

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 1999 for a more complete understanding of
the Partnership's financial position.

Operations
----------

2000 Compared to 1999
---------------------

The operations of the Partnership in 2000 and 1999 consisted of administrative
expenses which were partially offset by interest income earned on short-term
investments.

As a result of higher interest rates in 2000, interest income on short-term
investments increased during the quarter ended March 31, 2000 as compared to
the same period in 1999.

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

The cash position of the Partnership decreased by approximately $37,000 as of
March 31, 2000 when compared to December 31, 1999 primarily due to cash used in
operating activities for the payment of administrative expenses, which was
partially offset by interest income earned on short-term investments.

The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all of its
interests in real estate. The Partnership sold its final real estate investment
in July 1997. The Partnership has retained a portion of the cash from the
property sales to satisfy obligations of the Partnership as well as to
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 and costs stemming from
litigation involving the Partnership including, but not limited to, the Masri
and Bruss lawsuits discussed in Note 4 of Notes to the Financial Statements.
Due to this litigation, the Partnership will not be dissolved and reserves will
be held by the Partnership until the conclusion of such contingencies. There
can be no assurances as to the time frame for the conclusion of all
contingencies.

Limited Partners have received distributions of Net Cash Receipts of $288.00
and Net Cash Proceeds of $428.26, totaling $716.26 per $1,000 Interest, as well
as certain tax benefits. No additional distributions are anticipated to be made
prior to the termination of the Partnership. However, after paying final
partnership expenses, any remaining cash reserves will be distributed. Limited
Partners will not recover all of their original investment.

                        BALCOR EQUITY PROPERTIES-XVIII
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                          PART II - OTHER INFORMATION

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

(a) Exhibits:

(4) Form of Subscription Agreement, previously filed as Exhibit 4.1 to
Amendment No. 1 to Registrant's Registration Statement on Form S-11 dated May
15, 1984 (Registration No. 2-89380), 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. 0-13357)
are incorporated herein by reference.

(27) Financial Data Schedule of the Registrant for the quarter ended March 31,
2000 is attached hereto.

(b) Reports on Form 8-K:  No reports were filed on Form 8-K during the quarter
ended March 31, 2000.

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 EQUITY PROPERTIES - XVIII
                                    A REAL ESTATE LIMITED PARTNERSHIP


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




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




Date:May 9, 2000
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