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  September 30, 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

                September 30, 2000 and December 31, 1999
                              (Unaudited)


                                 ASSETS

                                                 2000           1999
                                              -----------   -----------
Cash and cash equivalents                     $1,659,702    $1,709,777
Accounts and accrued interest receivable           8,974         8,360
                                              -----------   -----------
                                              $1,668,676    $1,718,137
                                              ===========   ===========

                   LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                              $   67,205    $   64,765
Due to affiliates                                  7,194        32,837
                                              -----------   -----------
    Total liabilities                             74,399        97,602
                                              -----------   -----------
Commitments and contingencies

Limited Partners' capital (52,811
  Interests issued and outstanding)            1,734,093     1,734,093

General Partner's deficit                       (139,816)     (113,558)
                                              -----------   -----------
    Total partners' capital                    1,594,277     1,620,535
                                              -----------   -----------
                                              $1,668,676    $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 nine months ended September 30, 2000 and 1999
                              (Unaudited)

                                                2000           1999
                                           -----------     -----------
Income:
  Interest on short-term investments       $   76,011      $   61,745
                                           -----------     -----------
    Total income                               76,011          61,745
                                           -----------     -----------
Expenses:
  Administrative                              102,269         100,808
                                           -----------     -----------
    Total expenses                            102,269         100,808
                                           -----------     -----------
Net loss                                   $  (26,258)     $  (39,063)
                                           ===========     ===========
Net loss allocated to General Partner      $  (26,258)     $  (39,063)
                                           ===========     ===========
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 INCOME AND EXPENSES

           for the quarters ended September 30, 2000 and 1999
                              (Unaudited)


                                                2000           1999
                                            -----------    -----------
Income:
  Interest on short-term investments        $   27,108     $   21,196
                                            -----------    -----------
    Total income                                27,108         21,196
                                            -----------    -----------
Expenses:
  Administrative                                28,156         31,802
                                            -----------    -----------
    Total expenses                              28,156         31,802
                                            -----------    -----------
Net loss                                    $   (1,048)    $  (10,606)
                                            ===========    ===========
Net loss allocated to General Partner       $   (1,048)    $  (10,606)
                                            ===========    ===========
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 nine months ended September 30, 2000 and 1999
                              (Unaudited)


                                                 2000           1999
                                              -----------   -----------
Operating activities:
  Net loss                                    $  (26,258)   $  (39,063)
  Adjustments to reconcile net loss to net
    cash used in operating activities:

      Net change in:
        Accounts and accrued interest
          receivable                                (614)          286
        Accounts payable                           2,440         1,591
        Due to affiliates                        (25,643)        3,207
                                              -----------   -----------
  Net cash used in operating activities          (50,075)      (33,979)
                                              -----------   -----------
Net change in cash and cash equivalents          (50,075)      (33,979)

Cash and cash equivalents at beginning
  of year                                      1,709,777     1,741,812
                                              -----------   -----------
Cash and cash equivalents at end of period    $1,659,702    $1,707,833
                                              ===========   ===========

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 nine months and  quarter
ended September  30,  2000,  and all  such  adjustments  are of  a  normal  and
recurring nature.

2. Partnership Termination:

As previously reported, class  action litigation involving the Partnership  was
originally filed in  February 1996. This litigation  has existed over the  past
four and 1/2 years in three separate but related  cases and continues to  exist
today. Since inception of this litigation, the general partner has stated  that
the Partnership would not be dissolved until the conclusion of this  litigation
and that the general partner has  a contingent right to seek recovery from  the
Partnership of the legal fees it expends in defending against this  litigation.
The general partner believed that this litigation would have been completed and
resolved before now.  Despite the fact that  the general partner has  prevailed
twice on motions  to dismiss  the litigation for  failure to  state a cause  of
action, the  plaintiffs have  continued to  re-file the  litigation and  assert
claims and, in  so doing,  have protracted the  litigation. There is  presently
pending the general partner's and remaining defendants' third motion to dismiss
the litigation for failure to state a cause of action, on which the court heard
argument in April 2000. Defendants believe this motion to be meritorious. Given
the actions of plaintiffs' counsel to  date, at this point in time the  general
partner does not  believe that  the litigation will  be concluded  in the  near
future. As a result, the general  partner  has decided  that  it will
dissolve the  Partnership  in December 2000  and  distribute  all  remaining
cash reserves  to  the  limited partners.

The Partnership has accrued on its financial statements the legal fees expended
to date  by  the general  partner  in defending  against this  litigation.  The
general partner would be entitled to  place such amounts, along with an  amount
representing anticipated future legal fees, in a trust account to be held until
the conclusion of this litigation. Because the general partner believes such an
action would not be in the best interests of the limited partners, it has

decided not  to do  so and  will distribute  to limited  partners such  amounts
accrued for legal fees. The general partner does not in any way waive its claim
for indemnification  under  the  partnership agreement;  however,  the  general
partner will  not  seek  to  recover  from the  limited  partners  any  amounts
distributed  to   them  in  attempting   to  satisfy   the  general   partner's
indemnification rights.

The Madison Partnership litigation, which was filed in 1999, is still pending.
The general partner does not consider this litigation to be a matter that would
preclude dissolution of the Partnership.

3.  Transactions with Affiliates:

Fees and expenses  paid and payable  by the Partnership  to affiliates for  the
nine months and quarter ended September 30, 2000 are:

                                              Paid
                                   -------------------------
                                     Nine Months    Quarter    Payable
                                    ------------   --------- ----------

   Reimbursement of expenses to
     the General Partner, at cost    $ 48,159      $ 7,643    $ 7,194

                        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. The Partnership sold its final real estate investment
in July 1997.

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, interest income on short-term investments
increased during  the  nine months  and  quarter ended  September 30,  2000  as
compared to the same periods in 1999.

Primarily due  to  an  increase  in  printing  costs,  administrative  expenses
increased during the nine  months ended September 30,  2000 as compared to  the
same period  in 1999.  This increase  was  partially offset  by a  decrease  in
accounting fees and  resulted in a  decrease in administrative expenses  during
the quarter ended September 30, 2000 as compared to the same period in 1999.

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

The cash position of the  Partnership decreased by approximately $50,000 as  of
September 30, 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.

As previously reported, class  action litigation involving the Partnership  was
originally filed in  February 1996. This litigation  has existed over the  past
four and 1/2 years in three separate but related  cases and continues to  exist
today. Since inception of this litigation, the general partner has stated  that
the Partnership would not be dissolved until the conclusion of this  litigation
and that the general partner has  a contingent right to seek recovery from  the
Partnership of the legal fees it expends in defending against this  litigation.
The general partner believed that this litigation would have been completed and
resolved before now.  Despite the fact that  the general partner has  prevailed
twice on motions  to dismiss  the litigation for  failure to  state a cause  of
action, the  plaintiffs have  continued to  re-file the  litigation and  assert
claims and, in  so doing,  have protracted the  litigation. There is  presently
pending the general partner's and remaining defendants' third motion to dismiss
the litigation for failure to state a cause of action, on which the court heard
argument in April 2000. Defendants believe this motion to be meritorious. Given
the actions of plaintiffs' counsel to  date, at this point in time the  general
partner does not  believe that  the litigation will  be concluded  in the  near
future. As a result,the general  partner  has decided  that it will dissolve
the  Partnership  in December 2000  and  distribute  all  remaining  cash
reserves  to  the  limited partners.

The Partnership has accrued on its financial statements the legal fees expended
to date  by  the general  partner  in defending  against this  litigation.  The
general partner would be entitled to  place such amounts, along with an  amount
representing anticipated future legal fees, in a trust account to be held until
the conclusion of this litigation. Because the general partner believes such an
action would  not be  in the  best interests of  the limited  partners, it  has
decided not  to do  so and  will distribute  to limited  partners such  amounts
accrued for legal fees. The general partner does not in any way waive its claim
for indemnification  under  the  partnership agreement;  however,  the  general
partner will  not  seek  to  recover  from the  limited  partners  any  amounts
distributed  to   them  in  attempting   to  satisfy   the  general   partner's
indemnification rights.

The Madison Partnership litigation, which was filed in 1999, is still pending.
The general partner does not consider this litigation to be a matter that
would preclude dissolution of the Partnership.

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 nine  months  ended
September 30, 2000 is attached hereto.

(b) Reports on Form 8-K:  No reports were filed on Form  8-K during the quarter
ended September 30, 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: November 13, 2000
      ------------------