FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                        Quarterly or Transitional Report

                      U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   Form 10-QSB

(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


[ ] 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 0-14570

                             MCCOMBS REALTY PARTNERS

         (Exact name of small business issuer as specified in its charter)



         California                                         33-0068732
(State or other jurisdiction of                          (I.R.S. Employer
 incorporation or organization)                         Identification No.)

                          55 Beattie Place, PO Box 1089

                        Greenville, South Carolina 29602

                      (Address of principal executive offices)

                                 (864) 239-1000

                           (Issuer's telephone number)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act  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___

                         PART I - FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

a)

                             MCCOMBS REALTY PARTNERS

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

                               September 30, 2000

<TABLE>
<CAPTION>

Assets

<S>                                                             <C>          <C>
   Cash and cash equivalents                                                 $  669
   Receivables and deposits                                                      28
   Restricted escrows                                                            87
   Other assets                                                                 117
   Investment property:
       Land                                                   $  499
       Buildings and related personal property                 5,786
                                                               6,285
       Less accumulated depreciation                          (3,933)         2,352
                                                                            $ 3,253

Liabilities and Partners' Deficit
Liabilities

   Accounts payable                                                          $   43
   Tenant security deposit liabilities                                           18
   Accrued property taxes                                                        64
   Other liabilities                                                             86
   Mortgage note payable                                                      5,555

Partners' Deficit

   General partner                                             $ --
   Limited partners (17,196.39 units
      issued and outstanding)                                 (2,513)        (2,513)
                                                                            $ 3,253

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

b)

                             MCCOMBS REALTY PARTNERS

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                        Three Months Ended        Nine Months Ended
                                           September 30,            September 30,
                                         2000         1999         2000        1999
Revenues:                                          (Restated)               (Restated)
<S>                                     <C>          <C>         <C>          <C>
  Rental income                         $  374       $  368      $ 1,110      $ 1,037
  Other income                              32           21           84           82
       Total revenues                      406          389        1,194        1,119

Expenses:
  Operating                                156          147          494          430
  General and administrative                55           23          184           69
  Depreciation                              65           59          210          182
  Interest                                 118          119          352          358
  Property taxes                            21           21           64           65
       Total expenses                      415          369        1,304        1,104

(Loss) income before cumulative
  effect of a change in accounting
  principle                                 (9)          20         (110)          15
Cumulative effect on prior years
  of a change in accounting
  principle for the cost of
  exterior painting and
  landscaping                               --           --           --           25
Net (loss) income                       $   (9)      $   20       $ (110)      $   40

Net (loss) income allocated to
  general partner (1%)                  $   --       $   --       $   (1)      $   --
Net (loss) income allocated to
  limited partners (99%)                    (9)          20         (109)          40
                                        $   (9)      $   20       $ (110)      $   40
Per limited partnership unit:
  (Loss) income before cumulative
   effect of a change in
   accounting principle                $ (0.52)      $ 1.16       $(6.34)      $ 0.88
  Cumulative effect on prior years
   of a change in accounting
   principle for the cost of
   exterior painting and
   landscaping                              --           --           --         1.45
                                       $ (0.52)      $ 1.16      $ (6.34)      $ 2.33


            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


c)

                             MCCOMBS REALTY PARTNERS

          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                   (Unaudited)

                          (in thousands, except unit data)



<TABLE>
<CAPTION>
                                     Limited
                                   Partnership   General      Limited
                                      Units      Partner     Partners       Total

Partners' capital (deficit) at
<S>         <C> <C>                 <C>            <C>        <C>          <C>
   December 31, 1999                17,196.39      $ 1        $(2,404)     $(2,403)

Net loss for the nine months
   ended September 30, 2000                --         (1)        (109)        (110)

Partners' deficit at

   September 30, 2000               17,196.39      $ --       $(2,513)     $(2,513)

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


d)

                             MCCOMBS REALTY PARTNERS

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                   (in thousands)
<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,

                                                                   2000        1999
Cash flows from operating activities:                                       (Restated)
<S>                                                               <C>          <C>
  Net (loss) income                                               $ (110)      $ 40
  Adjustments to reconcile net (loss) income to net cash
     provided by operating activities:
     Depreciation                                                    210         182
     Amortization of loan costs                                       13          14
     Cumulative effect on prior years of a change in
       accounting principle                                           --         (25)
     Change in accounts:
       Receivables and deposits                                       86          15
       Other assets                                                  (10)        (17)
       Accounts payable                                              (16)         --
       Tenant security deposit liabilities                            (1)          2
       Accrued property taxes                                        (18)        (17)
       Other liabilities                                              13          (7)
         Net cash provided by operating activities                   167         187

Cash flows from investing activities:

  Property improvements and replacements                            (174)        (52)
  Net withdrawals from restricted escrows                            134          65
         Net cash (used in) provided by investing activities         (40)         13

Cash flows used in financing activities:

  Payments on mortgage note payable                                  (51)        (47)

Net increase in cash and cash equivalents                             76         153

Cash and cash equivalents at beginning of period                     593         350

Cash and cash equivalents at end of period                        $ 669        $ 503

Supplemental disclosure of cash flow information:

  Cash paid for interest                                          $ 339        $ 343


At December 31, 1999, $88,000 of property improvements and replacements included
in accounts payable were reported as non-cash activity.

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>


e)

                             MCCOMBS REALTY PARTNERS

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Going Concern

Under the Plan of Reorganization (the "Plan"; see "Note C" below) McCombs Realty
Partners (the "Partnership" or "Registrant"),  a California limited partnership,
was required to pay claims to limited  partners and  creditors of  approximately
$11,000,000 on October 20, 1998. These claims have not been paid as of September
30,  2000.  This raises  substantial  doubt about the  Partnership's  ability to
continue as a going concern. In order to attempt to satisfy the remaining claims
under  the  Plan,  the  Partnership  would be  required  to sell the  investment
property.  As an alternative to the sale of the property,  the Partnership could
attempt  to obtain  authorization  from the Court and the  limited  partners  to
extend the settlement date of October 20, 1998, to a future period.  The limited
partners were  approached  in August 1998 and asked to either  approve a sale of
the  Partnership's  sole investment  property or for CRPTEX,  Inc. ("the General
Partner") to petition the  Bankruptcy  Court for an extension of the  settlement
date. The required fifty-one percent response was not received. As a result, the
Partnership defaulted on its obligations which were due on October 20, 1998. The
General Partner continues to operate the Partnership's  business in the ordinary
course while it evaluates the best course of action to follow.  The consolidated
financial  statements do not include any adjustments  that might result from the
outcome of this uncertainty.

Note B - Basis of Presentation

The accompanying  unaudited consolidated financial statements of the Partnership
have been prepared in accordance with generally accepted  accounting  principles
for interim  financial  information and with the instructions to Form 10-QSB and
Item  310(b) of  Regulation  S-B.  Accordingly,  they do not  include all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial  statements.  In the opinion of the General Partner,  all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation  have been included.  Operating results for the three and nine
month periods ended  September  30, 2000 are not  necessarily  indicative of the
results that may be expected for the fiscal year ending  December 31, 2000.  For
further  information,   refer  to  the  consolidated  financial  statements  and
footnotes thereto included in the Partnership's Annual Report on Form 10-KSB for
the fiscal year ended December 31, 1999 for the Partnership.

Principles of Consolidation:

The  Partnership's  consolidated  financial  statements  include the accounts of
Pelham Place, L.P., a South Carolina limited partnership.  Pelham Place, L.P. is
the limited  partnership which holds title to Lakewood at Pelham (formerly known
as  Pelham  Place  Apartments).  Pelham  Place,  L.P.  is  wholly-owned  by  the
Partnership. All interpartnership transactions have been eliminated.

Change in Accounting Principle:

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping.  The Partnership
believes that this accounting principle change is preferable because it provides
a better matching of expenses with the related benefit of the  expenditures  and
it is consistent with industry practice and the policies of the General Partner.
This  accounting  change was first  reported  during the fourth quarter of 1999.
Accordingly,  net income for the three and nine months ended  September 30, 1999
has been restated to reflect the accounting  change as if it were reported then.
This  adjustment  decreased  net  income  before  the  cumulative  effect of the
accounting  change for the three and nine  months  ended  September  30, 1999 by
approximately $3,000 ($0.17 per limited partnership unit) and $10,000 ($0.58 per
limited  partnership  unit),  respectively.  The cumulative effect adjustment of
approximately  $25,000 is the result of applying  the  aforementioned  change in
accounting  principle  retroactively  and is  included  in income for 1999.  The
accounting  principle  change  will  not  have an  effect  on cash  flow,  funds
available  for   distribution  or  fees  payable  to  the  General  Partner  and
affiliates.

Note C - Plan of Reorganization

On March 9, 1987, the original general partners of the Partnership, on behalf of
the  Partnership,  filed a voluntary  petition  under  Chapter 11 of the Federal
Bankruptcy Code in U.S.  Bankruptcy Court,  Central District Court of California
("Court").  The  Partnership  continued as  Debtor-In-Possession  to operate its
business in the ordinary  course subject to control of the Court until the Court
confirmed  the  Partnership's  Plan  effective  October 25,  1988.  The Plan was
approved by all required classes of creditors.

The Plan required that the  Partnership  make the following  payments on October
20, 1998:

      1)    First, all existing creditors,  except  prebankruptcy Class 12
            creditors ($23,100), would be satisfied;

      2)    Limited Partners, both original and substitute,  who made additional
            capital  contributions  under the plan would  receive a repayment of
            the additional contributions totaling approximately $730,000;

      3)    Class 12 creditors would be paid claims aggregating $23,100;

      4)    Limited Partners who made additional capital  contributions and were
            original  Limited  Partners  would  receive  a  repayment  of  their
            original capital contributions totaling approximately $9,818,000;

      5)    Limited  Partners  who did not  make  additional  capital
            contributions would  receive  a  repayment  of  one-third  of their
            original  capital contributions (i.e., one-third of $1,200,000).

Additionally,  the Plan required CRPTEX, Inc. to make a capital  contribution of
$14,500 and loan or expend an additional  $117,500 on behalf of the  Partnership
on an as-needed basis. The Partnership received the $14,500 capital contribution
but has not required the additional $117,500.

The  payments  required  by  numbers 1 and 3 above  were  timely  satisfied.  In
addition,  all  other  claims  provided  for in the Plan then  outstanding  were
settled on June 25, 1995 when the  Partnership  refinanced the then  outstanding
mortgages  encumbering  the property.  However,  the  Partnership  was unable to
satisfy the amounts due to the limited partners indicated in numbers 2, 4, and 5
above and is in default on these obligations.

Note D - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving corporation.
As a result,  AIMCO acquired 100% ownership interest in the General Partner. The
General  Partner does not believe that this  transaction  has had or will have a
material effect on the affairs and operations of the Partnership.

Note E - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  Partnership  Agreement  provides  for certain  payments to  affiliates  for
services and as  reimbursement  of certain  expenses  incurred by  affiliates on
behalf of the Partnership.  The following  transactions with the General Partner
and its affiliates  were incurred during each of the nine months ended September
30, 2000 and 1999:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $ 59      $ 57
 Reimbursement for services of affiliates (included in
    general and administrative expenses and investment
    property)                                                       58        31

During the nine months  ended  September  30, 2000 and 1999,  affiliates  of the
General  Partner  were  entitled  to  receive  5% of  gross  receipts  from  the
Partnership's   investment  property  as  compensation  for  providing  property
management  services.  The  Partnership  paid to such  affiliates  approximately
$59,000  and  $57,000 for the nine  months  ended  September  30, 2000 and 1999,
respectively.

Affiliates  of  the  General  Partner  received  reimbursements  of  accountable
administrative  expenses amounting to approximately  $58,000 and $31,000 for the
nine months ended September 30, 2000 and 1999, respectively.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates currently own 2,474.5 limited partnership
units in the Partnership  representing  approximately  14.39% of the outstanding
units.  A number of these units were acquired  pursuant to tender offers made by
AIMCO or its  affiliates.  It is possible that AIMCO or its affiliates will make
one  or  more  additional  offers  to  acquire  additional  limited  partnership
interests in the  Partnership for cash or in exchange for units in the operating
partnership of AIMCO.  Under the Partnership  Agreement,  unitholders  holding a
majority of the Units are  entitled to take action with  respect to a variety of
matters, which would include without limitation, voting on certain amendments to
the Partnership  Agreement and voting to remove the General Partner. When voting
on matters, AIMCO would in all likelihood vote the Units it acquired in a manner
favorable to the interest of the General  Partner  because of their  affiliation
with the General Partner.

Note F - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment  derives its  revenues:  The  Partnership  has one  reportable  segment:
residential  properties.  The Partnership's  residential segment consists of one
apartment complex located in Greenville,  South Carolina.  The Partnership rents
apartment units to tenants for terms that are typically twelve months or less.

Measurement  of segment profit or loss: The  Partnership  evaluates  performance
based on segment profit (loss) before  depreciation.  The accounting policies of
the reportable  segment are the same as those of the Partnership as described in
the  Partnership's  Annual Report on Form 10-KSB for the year ended December 31,
1999.

Segment  information  for the three and nine month periods  ended  September 30,
2000  and 1999 is  shown  in the  tables  below.  The  "Other"  column  includes
Partnership administration related items and income and expense not allocated to
the reportable segment.

Three Months Ended September 30, 2000     Residential      Other        Totals
                                                      (in thousands)
Rental income                                 $ 374         $ --         $ 374
Other income                                     30             2           32
Interest expense                                118            --          118
Depreciation                                     65            --           65
General and administrative expense               --            55           55
Segment profit (loss)                            44           (53)          (9)

Nine Months Ended September 30, 2000       Residential     Other        Totals
                                                      (in thousands)
Rental income                                $ 1,110        $  --      $ 1,110
Other income                                      77            7           84
Interest expense                                 352           --          352
Depreciation                                     210           --          210
General and administrative expense                --          184          184
Segment profit (loss)                             67         (177)        (110)
Total assets                                   3,113          140        3,253
Capital expenditures for investment
  property                                        86           --           86

   Three Months Ended September 30, 1999     Residential     Other       Totals
                                                       (in thousands)
   Rental income                                $  368        $  --        $ 368
   Other income                                     19            2           21
   Interest expense                                119           --          119
   Depreciation                                     59           --           59
   General and administrative expense               --           23           23
   Segment profit (loss)                            41          (21)          20

   Nine Months Ended September 30, 1999    Residential     Other        Totals
                                                       (in thousands)
   Rental income                             $ 1,037        $  --       $ 1,037
   Other income                                   75            7            82
   Interest expense                              358           --           358
   Depreciation                                  182           --           182
   General and administrative expense             --           69            69
   Cumulative effect on prior years of
     change in accounting principle               25           --            25
   Segment profit (loss)                         102          (62)           40
   Total assets                                3,118          257         3,375
   Capital expenditures for investment
     property                                     52           --            52


ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions,   competitive  and  regulatory   matters,   etc.)  detailed  in  the
disclosures  contained  in this  Form  10-QSB  and the  other  filings  with the
Securities and Exchange  Commission made by the  Partnership  from time to time.
The  discussion  of  the  Partnership's  business  and  results  of  operations,
including  forward-looking  statements pertaining to such matters, does not take
into  account  the  effects of any  changes to the  Partnership's  business  and
results of operation.  Accordingly,  actual results could differ materially from
those  projected in the  forward-looking  statements  as a result of a number of
factors, including those identified herein.

The Partnership's  investment  property consists of one apartment  complex.  The
following  table sets forth the average  occupancy  of the property for the nine
months ended September 30, 2000 and 1999:

                                                   Average Occupancy

      Property                                      2000       1999

      Lakewood at Pelham                            97%        96%
        Greenville, South Carolina

Results of Operations

The Partnership reported net losses of approximately $9,000 and $110,000 for the
three and nine  months  ended  September  30,  2000 as compared to net income of
approximately  $20,000 and $40,000 for the three and nine months ended September
30,  1999.  The  decrease in net income for both the three and nine months ended
September  30, 2000 is primarily  due to an increase in total  expense which was
partially  offset by an increase in total  revenues.  The decrease in net income
for the nine months ended  September 30, 2000 is also due to the  recognition in
1999  of the  cumulative  effect  on  prior  years  of a  change  in  accounting
principle.  Total expenses  increased for the three and nine month periods ended
September 30, 2000  primarily  due to an increase in general and  administrative
expense  and,  to a lesser  extent,  increases  in  operating  and  depreciation
expenses.  Operating expense increased  primarily due to an increase in salaries
and related benefits,  and to a lesser extent, an increase in insurance expense.
Depreciation  expense increased due to an increase in depreciable  assets due to
property  improvements  and  replacements  completed in the last twelve  months.
Interest expense and property tax expense remained  relatively  constant for the
comparable periods.

General and administrative  expenses  increased  primarily due to an increase in
the services and the costs of such services  provided by the General Partner and
its  affiliates,  and  increased  professional  fees  necessary  to  manage  the
Partnership.  Included in general and  administrative  expense at both September
30, 2000 and 1999 are management  reimbursements  to the General Partner allowed
under the  Partnership  Agreement.  Also included are costs  associated with the
quarterly and annual  communications  with investors and regulatory agencies and
the annual audit required by the Partnership Agreement.

Total  revenues  for the nine month period ended  September  30, 2000  increased
primarily due to an increase in rental income.  For the three month period ended
September 30, 2000,  total revenues  increased due to increases in rental income
and other income.  Rental income  increased for the three and nine month periods
as a result of the  improved  occupancy  at the  property,  an  increase  in the
average  rental  rate,  as well  as a  decrease  in  concessions.  Other  income
increased  for the three month period  primarily  due to an increase in interest
income and tenant charges.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping.  The Partnership
believes that this accounting principle change is preferable because it provides
a better matching of expenses with the related benefit of the  expenditures  and
it is consistent with industry practice and the policies of the General Partner.
This  accounting  change was first  reported  during the fourth quarter of 1999.
Accordingly,  net income for the three and nine months ended  September 30, 1999
has been restated to reflect the accounting  change as if it were reported then.
This  adjustment  decreased  net  income  before  the  cumulative  effect of the
accounting  change for the three and nine  months  ended  September  30, 1999 by
approximately $3,000 ($0.17 per limited partnership unit) and $10,000 ($0.58 per
limited  partnership  unit),  respectively.  The cumulative effect adjustment of
approximately  $25,000 is the result of applying  the  aforementioned  change in
accounting  principle  retroactively  and is  included  in income for 1999.  The
accounting  principle  change  will  not  have an  effect  on cash  flow,  funds
available  for   distribution  or  fees  payable  to  the  General  Partner  and
affiliates.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market environment of its investment  property to assess the
feasibility of increasing rents,  maintaining or increasing occupancy levels and
protecting the Partnership from increases in expenses. As part of this plan, the
General  Partner  attempts  to  protect  the  Partnership  from  the  burden  of
inflation-related  increases in expenses by increasing  rents and  maintaining a
high overall occupancy level. However, due to changing market conditions,  which
can  result in the use of rental  concessions  and rental  reductions  to offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.

Liquidity and Capital Resources

At  September  30,  2000,  the  Partnership  had cash and  cash  equivalents  of
approximately  $669,000 as compared to  approximately  $503,000 at September 30,
1999. The increase in cash and cash equivalents of approximately $76,000 for the
nine months ended September 30, 2000, from the Partnership's  calendar year end,
is due to approximately $167,000 of cash provided by operating activities, which
was  partially  offset  by  approximately  $51,000  of cash  used  in  financing
activities and approximately $40,000 of cash used in investing activities.  Cash
used  in   investing   activities   consisted  of  property   improvements   and
replacements, which was partially offset by net withdrawals from escrow accounts
maintained by the mortgage lender. Cash used in financing  activities  consisted
of payments of principal  made on the  mortgage  encumbering  the  Partnership's
investment  property.  The Partnership invests its working capital reserves in a
money market account.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership including satisfaction of remaining
claims related to the Partnership's Plan of Reorganization,  as described below,
and to comply with Federal, state, and local legal and regulatory  requirements.
Capital  improvements  planned  at the  Partnership's  investment  property  are
detailed below.

Approximately  $88,000 has been budgeted for capital improvements at Lakewood at
Pelham for the year 2000,  consisting  primarily of floor covering  replacement,
lighting upgrades, structural improvements,  and appliance replacements.  During
the nine months ended September 30, 2000, the Partnership expended approximately
$86,000 on budgeted and unbudgeted  capital  improvements at Lakewood at Pelham,
consisting primarily of carpet and tile replacement, appliance replacements, air
conditioning  unit  replacements  and installing and painting  handrails.  These
improvements  were funded by  replacement  reserves and  operations.  Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the property.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  or  from  Partnership   reserves.   Partnership  reserves  are
sufficient to cover the estimated costs of the capital  improvements planned for
the year 2000.  However,  the  Partnership  does not have  sufficient  assets to
fulfill its  obligation  under the Plan of  Reorganization  ("Plan") and in fact
defaulted on its  obligations  due October 20, 1998.  See  discussion  below for
detail as to the Partnership's Plan with respect to meeting its short term needs
under the Plan. No distributions were declared or paid during either of the nine
months ended September 30, 2000 or 1999, and none are expected in the future.

On March 9, 1987, the original general partners of the Partnership, on behalf of
the  Partnership,  filed a voluntary  petition  under  Chapter 11 of the Federal
Bankruptcy  Code  in U.S.  Bankruptcy  Court,  Central  District  of  California
("Court").  The  Partnership  continued as  Debtor-In-Possession  to operate its
business in the ordinary course until the Court confirmed the Partnership's Plan
effective  October 25, 1988.  The Plan was  approved by all required  classes of
creditors.

The Plan required that the  Partnership  make the following  payments on October
20, 1998:

      1)    First, all existing creditors,  except  prebankruptcy Class 12
            creditors ($23,100), would be satisfied;

      2)    Limited Partners, both original and substitute,  who made additional
            capital  contributions  under the plan would  receive a repayment of
            the additional contributions totaling approximately $730,000;

      3)    Class 12 creditors would be paid claims aggregating $23,100;

      4)    Limited Partners who made additional capital  contributions and were
            original  Limited  Partners  would  receive  a  repayment  of  their
            original capital contributions totaling approximately $9,818,000;

      5)    Limited  Partners  who did not  make  additional  capital
            contributions would  receive  a  repayment  of  one-third  of their
            original  capital contributions (i.e., one-third of $1,200,000).

Additionally,  the Plan required CRPTEX, Inc. to make a capital  contribution of
$14,500 and loan or expend an additional  $117,500 on behalf of the  Partnership
on an as-needed basis. The Partnership received the $14,500 capital contribution
but has not required the additional $117,500.

The  payments  required  by  numbers 1 and 3 above  were  timely  satisfied.  In
addition,  all  other  claims  provided  for in the Plan then  outstanding  were
settled on June 25, 1995 when the  Partnership  refinanced the then  outstanding
mortgages  encumbering  the property.  However,  the  Partnership  was unable to
satisfy the amounts due to the limited partners indicated in numbers 2, 4, and 5
above and is in default on these obligations.

In order to satisfy these obligations, the Partnership would be required to sell
the  investment  property.  As  an  alternative,   the  Partnership  could  seek
authorization  from the Limited  Partners to extend the payment  date of October
20, 1998 to a future period. The limited partners were approached in August 1998
and asked to either approve a sale of the Partnership's sole investment property
or for the General Partner to petition the Bankruptcy  Court for an extension of
the settlement date. The required  fifty-one  percent response was not received.
As a result,  the  Partnership  defaulted on its  obligations  which were due on
October 20, 1998. The General  Partner is continuing to see that the Partnership
operates its business in the ordinary  course while it evaluates the best course
of action to follow.  Additionally,  the Partnership's  mortgage indebtedness of
approximately  $5,555,000 at September 30, 2000 matures in July 2005,  and would
require a property sale or  refinancing at that time.  However,  there can be no
assurance  that  these  courses  of  action  will be  successful  and  that  the
Partnership  will  have  sufficient  funds  to meet its  obligations  in 2000 or
beyond.

                           PART II - OTHER INFORMATION

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

            a)    Exhibits:

                  Exhibit 27, Financial Data Schedule, is filed as an exhibit to
                  this report.

            b)    Reports on Form 8-K:

                  None filed during the quarter ended September 30, 2000.


<PAGE>


                                   SIGNATURES

In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.

                                    MCCOMBS REALTY PARTNERS


                                    By:   CRPTEX, INC.
                                          General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President and
                                          Controller

                                    Date:  November 13, 2000