6

                                     
                                     
                                 FORM 10-Q
                                     
                                     
                                     
                               UNITED STATES
                    SECURITIES AND EXCHANGE COMMISSION
                         WASHINGTON, D.C.   20549



Six Months ended June 30, 1997      Commission File Number 2-96042



                 CAPITAL BUILDERS DEVELOPMENT PROPERTIES,
                     A CALIFORNIA LIMITED PARTNERSHIP
          (Exact name of registrant as specified in its charter)



     California                                   77-0049671
State or other jurisdiction of                  I.R.S. Employer
organization                                   Identification No.

4700 Roseville Road, Suite 206, North Highlands, California 95660
(Address of Principal executive offices)               (Zip Code)


Registrant's telephone number, including area code:  (916)331-8080


Former name, former address and former fiscal year, if changed since last
year:

N/A

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 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 1- FINANCIAL INFORMATION
<TABLE>
      Capital  Builders  Development
               Properties
  (A  California  Limited  Partnership)
      CONSOLIDATED  BALANCE  SHEET
<CAPTION>                                                      
                                          June 30, 1997  Dec 31,1996
<S>                                            <C>           <C>
ASSETS                                                                
  Cash and cash equivalents                 $     38,968   $    49,335
  Accounts receivable, net                                            
                                                 121,263      135,406
  Investment property, at cost, net of                                
    accumulated depreciation and                                      
    amortization of $1,196,820 and                                    
    $2,107,769 at June 30, 1997 and                                   
   December 31, 1996, respectively             4,006,339     7,252,601
                                                                      
  Lease commissions, net of accumulated                               
    amortization of $48,550 and $99,983                               
    at June 30, 1997, and December 31,                                
    1996, respectively                            72,719       126,701
                                                                      
  Other assets, net of accumulated                                    
    amortization of $6,276 and                                        
    $91,673 at June 30, 1997, and                                     
    December 31, 1996, respectively               77,431        66,404
                                                                      
 Minority Interest                             - - - - -       695,094
                                                                      
                    Total assets            $  4,316,720   $ 8,325,541
                                                                      
LIABILITIES AND PARTNERS' EQUITY                                      
  Loan payable to affiliate                 $  - - - - -   $ 1,514,788
  Notes payable                                3,504,337     6,838,732
  Accounts payable & accrued liabilities          42,569       160,718
  Tenant deposits                                 56,524       115,332
                                                                      
                    Total liabilities       $  3,603,430   $ 8,629,570
                                                                      
  Commitments and contingencies                                       
  Partners' Equity:                                                   
    General partner                             (50,691)      (60,864)
    Limited partners                             763,981     (243,165)
                                                                      
                   Total partners' equity   $    713,290  $ (304,029)
                                                                      
    Total liabilities & partner's equity    $  4,316,720   $ 8,325,541
                                                                      
See accompanying notes to the financial statements.                            
</TABLE>

<TABLE>
CONSOLIDATED STATEMENTS
     OF OPERATIONS
 FOR THE MONTHS ENDED
       JUNE 30,
<CAPTION>                                                               
                               1997                       1996         
                           Three        Six        Three          Six
                          Months      Months      Months        Months
                           Ended       Ended       Ended         Ended
<S>                         <C>         <C>         <C>           <C>
Revenues                                                                
  Rental and other               $           $   $  331,310            $
income                     291,611     645,802                   629,223
  Interest income                                                       
                               286         572          302          757
                                                                        
                                                                        
Total revenues             291,897     646,374      331,612      629,980
                                                                        
Expenses                                                                
  Operating expenses                                                      
                            49,729     120,782       63,047      125,939
  Repairs and                                                           
maintenance                 27,590      71,084       39,218       71,257
  Property taxes                                                        
                            16,144      39,561       24,372       48,744
   Interest                                                             
                           124,328     312,251      185,541      369,393
  General and                                                           
administrative              19,984      55,348       22,746       62,410
  Depreciation and                                                      
    amortization                                                        
                            74,178     180,747      120,938      242,022
                                                                        
                                                                        
Total expenses             311,953     779,773      455,862      919,765
                                                                        
  Loss before minority                                                  
interest                  (20,056)   (133,399)    (124,250)    (289,785)
                                                                        
Minority interest in                                                    
joint venture                3,930      22,806       19,731       46,235
Gain from disposition                             - - - - -      - - - -
of joint venture         1,127,913   1,127,913                         -
                                                                        
Net income/(loss)        1,111,787   1,017,320    (104,519)    (243,550)
                                                                        
Allocated to general        11,118      10,173      (1,045)      (2,435)
partners
                                                                        
Allocated to limited             $           $            $            $
partners                 1,100,669   1,007,147    (103,474)    (241,115)
                                                                        
Net income/(loss)                                                       
   per limited                   $           $            $            $
partnership unit             79.83       73.05       (7.51)      (17.50)
                                                                        
Average units               13,787      13,787       13,787       13,787
outstanding
                                                                        
See accompanying notes to the                                           
financial statements.
</TABLE>

<TABLE>
 CONSOLIDATED  STATEMENTS
      OF  CASH  FLOWS
 FOR MONTHS ENDED JUNE 30,
<CAPTION> 
                                    1997                     1996      
                              Three        Six        Three        Six
                              Months      Months      Months      Months
                              Ended       Ended       Ended       Ended
<S>                            <C>         <C>         <C>         <C>
Cash flows from operating                                               
activities:
  Net income/(loss)         $1,111,787  $1,017,320  ($104,519)  ($243,550)
  Adjustments to reconcile                                                
  net loss to cash flow
used
  in operating activities:
  Depreciation &                74,178     180,747     120,938     242,022
amortization
  Minority interest in                                                    
joint                          (3,930)   (22,806)   (19,731)   (46,235)
    venture
  Gain from Partnership                                                   
    Investment               (1,127,913 (1,127,913  - - - - - - - - - -
                                      )          )
  Unpaid Interest on Loan                                                 
    Payable to Affiliate        24,014     55,347     18,210     18,210
  Changes in assets and                                                   
    liabilities:
    Increase in accounts                                                  
      receivable              (34,986)   (20,605)    (8,581)    (7,087)
    Increase in leasing                                                   
      commissions            - - - - -   (15,771)   (20,788)   (43,953)
    Decrease/(Increase) in                                                
      other assets               8,838      1,899      (166)        342
    (Decrease)/Increase in                                                
      accounts and accrued                                             
      liabilities            (109,037)   (92,523)   (46,703)     37,296
    Increase/(Decrease) in                                                
      tenant deposits              186    (7,266)      2,928    (4,913)
                                                                          
  Net cash (used                                                          
in)provided
  by operating activities     (56,863)    (31,571)    (58,412)    (47,868)
                                                                          
Cash flows from investing                                                 
activities:
  Improvements to                                                         
investment                    (15,356)   (15,464)   (36,823)   (77,228)
    properties
  Proceeds from sale of                                                   
    partnership investment      14,380     14,380  - - - - -  - - - - -
                                                                          
  Net cash used in                                                        
investing                        (976)    (1,084)   (36,823)   (77,228)
  activities
                                                                          
Cash flows from financing                                                 
activities:
  Payments from notes         (12,612)    (36,020)    (19,904)    (38,707)
payable
  Proceeds from notes          141,583     141,583   - - - - -   - - - - -
payable
  Payment of loan fees        (83,275)    (83,275)   - - - - -   - - - - -
  Proceeds on loans payable                                               
   to affiliate              - - - - -  - - - - -    170,000    170,000
  Distribution to minority                                                
   interest                  - - - - -  - - - - -   (68,000)   (90,480)
                                                                          
  Net cash provided by                                                    
  financing activities          45,696     22,288     82,096     40,813
                                                                          
Net decrease in cash          (12,143)    (10,367)    (13,139)    (84,283)
                                                                          
Cash, beginning of period       51,111      49,335      19,255      90,399
                                                                          
Cash, end of period            $38,968     $38,968      $6,116      $6,116
                                                                          
See accompanying notes to the financial statements.                    

</TABLE>
               Capital Builders Development Properties
                 (A California Limited Partnership)


             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            June 30, 1997



NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND
         ORGANIZATION

A summary of the significant accounting policies applied in the
preparation of the accompanying consolidated financial statements
follows:

Basis of Accounting
The consolidated financial statements of Capital Builders
Development Properties (The "Partnership") are prepared on the
accrual basis and therefore revenue is recorded as earned and costs
and expenses are recorded as incurred.  Certain prior year amounts
have been reclassified to conform to current year classifications.

Principles of Consolidation
The consolidated financial statements include the accounts of the
company and its majority-owned subsidiary (60%), Capital Builders
Roseville Venture.  In May 1997 the Partnership sold its 60%
interest in Capital Builders Roseville Venture to its affiliate,
Capital Builders Development Properties II.  Capital Builders
Development Properties II, a California Limited Partnership, is an
affiliate of the Partnership as they have the same General Partner,
Capital Builders, Inc.  The financial statements represent financial
activity on a consolidated basis until the time of the disposition
of the majority-owned subsidiary.  All significant intercompany
accounts and transactions have been eliminated.  The General Partner
of Capital Builders Development Properties, Capital Builders, Inc,
has no direct ownership interest in the joint venture, and did not
receive any compensation for the sale of the subsidiary (See Note 2
for further discussion).

Organization
Capital Builders Development Properties, a California Limited
Partnership, is owned under the laws of the State of California.
The Managing General Partner is Capital Builders, Inc., a California
corporation (CB).

The Partnership is in the business of real estate development and is
not a significant factor in its industry.  The Partnership's
investment properties are located near major urban areas and,
accordingly, compete not only with similar properties in their
immediate areas but with hundreds of properties throughout the urban
areas.  Such competition is primarily on the basis of locations,
rents, services and amenities.  In addition, the Partnership
competes with significant numbers of individuals or organizations
(including similar companies, real estate investment trusts and
financial institutions) with respect to the purchase and sale of
land, primarily on the basis of the prices and terms of such
transactions.

Investment Properties
The Partnership adopted the provisions of SFAS No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to
Be Disposed Of, on January 1, 1996.  This Statement requires that
long-lived assets and certain identifiable intangibles be reviewed
for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable.
Recoverability of assets to be held and used is measured by a
comparison of the carrying amount of an asset to future net cash
flows expected to be generated by the asset.  If such assets are
considered to be impaired, the impairment to be recognized is
measured by the amount by which the carrying amount of the assets
exceed the fair value of the assets.  Assets to be disposed of are
reported at the lower of the carrying amount or fair value less
costs to sell.  Adoption of this Statement did not have a material
impact on the Partnership's financial position, results of
operations, or liquidity.

Prior to the adoption of SFAS No. 121, the Partnership recorded a
valuation allowance for losses which represented the excess carrying
value of individual properties over their estimated net realizable
value. During 1996, this valuation allowance was allocated against
the cost basis of the land and building and improvements to be
consistent with the methodology of SFAS No. 121.

The Partnership's investment property consists of commercial land,
buildings and leasehold improvements that are carried net of
accumulated depreciation.  Depreciation is provided for in amounts
sufficient to relate the cost of depreciable assets to operations
over their estimated service lives of three to forty years.  The
straight-line method of depreciation is followed for financial
reporting purposes.

Lease Commissions

Lease commissions are being amortized over the related lease terms.

Income Taxes

The Partnership does not provide for income taxes since all income
or losses are reported separately on the individual partners' tax
returns.

Revenue Recognition

Rental income is recognized on a straight-line basis over the life
of the lease, which may differ from the scheduled rental payments.

Net Income/(Loss) per Limited Partnership Unit

The net income/(loss) per Limited Partnership unit is computed based
on the weighted average number of units outstanding during the year
of 13,787 in 1997 and 1996.

Statement of Cash Flows

For purposes of statement of cash flows, the Partnership considers
all short-term investments with a maturity, at date of purchase, of
three months or less to be cash equivalents.

Use of Estimates

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period.  Actual results
could differ from those estimates.

NOTE 2 - CHANGES IN OPERATIONS AND UNUSUAL ITEMS

In May 1997, the Partnership sold its 60% interest in Capital
Builders Roseville Venture to its affiliate, Capital Builders
Development Properties II.  The sale was completed after an
independent property valuation of the joint venture property,
Capital Professional Center.  The sale resulted in a net gain of
$1,127,913 ($81.81 per limited partnership unit) and cash proceeds
of $51,068.  As of June 30, 1997, the Partnership's Consolidated
Statement of Operations included a net loss of $57,015 from Capital
Builders Roseville Venture, of which $22,806 was allocated to its
minority partner.  The transaction did not generate any sales
commissions, transaction fees, changes in management compensation or
any other direct or indirect benefit to the General Partner.

NOTE 3 - LIQUIDITY

During the second quarter of 1997, Management was successful in  its
plan  to  refinance Plaza de Oro's current Note  Payable.   The  new
financing consists of a $3,350,000, five year, mini-permanent, 9.25%
fixed interest rate loan, secured by Phase I (existing building  and
improvements), and a $200,000, six month, prime +1.5%  variable  loan
secured by Phase II (undeveloped pad).

The  new  lower  interest rate loans will improve the  Partnership's
ability  to  generate future cash flow, but future cash  flow  still
remains  dependent  upon  its ability to maintain  and  improve  the
occupancy of its investment properties.  Additionally, with the land
loan  becoming  due  prior  to year-end, it  will  be  necessary  to
refinance or extend the loan prior to year-end.


NOTE 4 - RELATED PARTY EXPENSE REIMBURSEMENT AND FEE ARRANGEMENT

The Managing General Partner (Capital Builders, Inc.) and the
Associate General Partners are entitled to reimbursement of expenses
incurred on behalf of the Partnership and certain fees from the
Partnership.  These fees include: a property management fee up to 6%
of gross revenues realized by the Partnership with respect to its
properties; a subordinated real estate commission of up to 3% of the
gross sales price of the properties; and a subordinated 25% share of
the Partnership's distributions of cash from sales or refinancing.
The property management fee currently being charged is 5% of gross
rental revenues collected.

All acquisition fees and expenses, all underwriting commissions, and
all offering and organizational expenses which can be paid are
limited to 20% of the gross proceeds from sales of Partnership units
provided the Partnership incurs no borrowing to develop its
properties.  However, these fees may increase to a maximum of 33% of
the gross offering proceeds based upon the total acquisition and
development costs, including borrowing.  Since the formation of the
Partnership, 27.5% of these fees were paid to the Partnership's
related parties, leaving a remaining maximum of 5.5% ($379,143) of
the gross offering proceeds.  The ultimate amount of these costs
will be determined once the properties are fully developed and
leveraged.

The total management fees paid to the Managing General Partner were
$31,058 and $30,383 for the six months ending June 30, 1997 and
1996, respectively, while total reimbursement of expenses were
$52,538 and $57,756, respectively.
                                  
NOTE 5 - INVESTMENT PROPERTIES

The components of the investment property account are as follows:

                                     June 30,   December 31,
                                         1997      1996
Land                               $1,353,177     $2,423,706
Building and Improvements           3,271,630      5,802,208
Tenant Improvements                   578,352      1,134,456
Investment properties, at cost      5,203,159      9,360,370

Less: accumulated depreciation
        and amortization          (1,196,820)    (2,107,769)

     Investment property, net      $4,006,339     $7,252,601


NOTE 6 - LOAN PAYABLE TO AFFILIATE
The loan payable represents funds advanced to the Roseville Joint
Venture from Capital Builders Development Properties II, a related
Partnership which has the same General Partner.  The loan was
settled in  conjunction with the sale of the 60% interest of the
Roseville joint venture.  The loan bore interest at approximately
the same rate charged to it by a bank for other borrowings, which
was 8.95% at the time of sale of the joint venture, May 1, 1997 and
June 30, 1996, respectively.  Interest expense incurred on the loan
was $55,347 and $51,839 in 1997 and 1996, respectively.

NOTE 7 - NOTES PAYABLE

Notes Payable consist of the following at:
                                           June 30,    December 31,
                                                1997           1996
Construction loan due April  1,  1997
was  refinanced with a mini-permanent
loan  with a fixed interest  rate  of
9.25%,    and    requiring    monthly
principal  and interest  payments  of
$28,689,   which  is  sufficient   to
amortize the loan over 25 years.  The
loan  is due April 1, 2002.  The note
is  collatoralized by a First Deed of
Trust on the land, buildings and
improvements.                             $3,341,337     $3,383,141

Mini-permanent loan on joint  venture
property  with a fixed interest  rate
of   8.24%   and  requiring   monthly
principal  and interest  payments  of
$27,541,   which  is  sufficient   to
amortize the loan over 25 years.  The
loan  is  due January 1,  2001.   The
note  is  collatoralized by  a  first
deed of trust on the land, buildings
and improvements.                         - - - - -       3,455,591

Land/Construction  loan  of  $200,000
due  September  24, 1997.   The  note
bears  interest  at bank  prime  rate
(8.50%  at  June 30, 1997) plus  1.5%
with a 9% floor.  The note is secured
by Plaza de Oro's separately parceled
Phase II land.                               163,000      - - - - -

Total Notes Payable                       $3,504,337     $6,838,732

NOTE 8 - LEASES

The Partnership leases its properties under long-term noncancelable
operating leases to various tenants.  The facilities are leased
through agreements for rents based on the square footage leased.
Minimum annual base rental payments under these leases for the years
ending December 31 are as follows:

                    1997                       $649,348
                    1998                        564,741
                    1999                        476,363
                    2000                        401,801
                    2001                        212,421
                    Thereafter                  109,614
                    Total                    $2,414,288



NOTE 9 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The following methods and assumptions were used by the Partnership
in estimating it's fair value disclosures for financial instruments.

     Cash and cash equivalents
     The carrying amount approximates fair value because of the
     liquid nature of the instrument.

     Note payable
     The fair value of the Partnership's note payable is estimated
     based on the quoted market prices for the same or similar
     issues or on the current rates offered to the Partnership for
     debt of the same remaining maturities.

The estimated fair values of the Partnership's financial instruments
are as follows:

                                    June 30,             December 31,
                                      1997                1996
                             Carrying    Estimated   Carrying   Estimated
                               Amount   Fair Value     Amount  Fair Value

Assets
Cash and cash equivalents     $38,968      $38,968    $49,335     $49,335

Liabilities
Loan payable to affiliate    $  - - -     $  - - - $1,514,788         (A)
Note payable               3,341,337     3,341,337  3,383,141   3,383,141
Note payable                  163,000      163,000  3,455,591   3,455,591


(A) It is not practicable to determine the fair value of the loan
    payable to affiliate due to the related party nature of the
    arrangement.
NOTE 10 - COMMITMENTS AND CONTINGENCIES

The  Partnership is involved in litigation primarily arising  in  the
normal  course  of its business.  In the opinion of  management,  the
Partnership's  recovery  or  liability, if  any,  under  any  pending
litigation  would  not materially affect its financial  condition  or
operations.


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

Liquidity and Capital Resources

The Partnership commenced operations on September 19, 1985 upon the
sale of the minimum number of Limited Partnership Units.  The
Partnership's initial source of cash was from the sale of Limited
Partnership Units.  Through the offering of Units, the Partnership
has raised $6,893,500 (represented by 13,787 Limited Partnership
Units).  Cash generated from the sale of Limited Partnership Units
has been used to acquire land and for the development of a mixed use
commercial project and a 60% interest in a commercial office
project.

During the six months ending June 30, 1997, the Partnership sold its
60% joint venture interest in Capital Builders Roseville Venture.
The Partnership was also successful in refinancing Plaza de Oro's
Note Payable, which became due April 1, 1997.

The Partnership's sale of its joint venture interest resulted in a
$1,127,913 non-cash gain and cash proceeds of $51,068.  The
refinancing of the Partnership's Note Payable also provided cash
proceeds amounting to $141,583.  The cash provided by these
transactions, along with cash flow from operations, was primarily
used to bring its accounts payable current, decreasing accounts
payable by $92,523, and was used to pay loan fees of $83,275 for the
Partnership's new financing.

The remaining cash proceeds were used to finance leasing commissions
of $15,771 and tenant improvements of $15,463 for the Partnership's
investment properties.  It is anticipated that approximately $50,000
in additional tenant improvements and leasing commissions will be
incurred during 1997 in order to maintain Plaza de Oro's current 97%
occupancy.  These costs will be funded by cash reserves and property
income.

The Partnership's ability to meet current year obligations has
improved during 1997 as a result of maintaining Plaza de Oro's
occupancy, as well as the refinancing of its current Note Payable as
of April 1, 1997.  The Partnership appears to be able to meet
current year obligations, provided it is successful in refinancing
or extending Plaza de Oro's undeveloped pad loan, which was obtained
April 1, 1997, but will be due September 24, 1997, as well as having
the property maintain its current occupancy rate and income stream.

It  is  Management's plan to actively market and attempt to locate  a
potential  tenant for the undeveloped 9,800 square foot  building  on
Plaza  de Oro's Phase II land.  If a tenant is identified and a lease
is  signed,  this  will  allow the Partnership to  obtain  additional
financing,  construct the building, and convert the loan to  a  mini-
permanent  loan.   Management  is also searching  for  new  potential
lenders  and  joint venture equity partners to paydown  the  existing
land loan and finance the additional construction costs.

Results of Operations

The  Partnership's total revenues increased by $16,394 (2.6%) for the
six  months ended June 30, 1997, as compared to June 30, 1996,  while
expenses  decreased  by  $139,692 (15.2%)  for  the  same  respective
period.  In addition, the minority interest in net loss has decreased
by  $23,429 (50.7%) in 1997 compared to 1996, and in 1997 a gain from
the  disposition of the joint venture of $1,127,913 was incurred, all
resulting in an increase in net income of $1,260,870 (517.7%) for the
months ended June 30, 1997 as compared to June 30, 1996.

The  increase in revenues is due primarily to the successful lease-up
of Plaza de Oro, which as of June 30, 1997 was 97% occupied.

Total  expenses decreased by $139,992 for the six months  ended  June
30,  1997,  as compared to June 30, 1996, due to the sale on  May  1,
1997  of its 60% interest of Capital Builders Roseville Venture.   As
of  June  30, 1997, the Statement of Operations included expenses  of
$299,645  from its joint venture, where as of June 30, 1996, expenses
of $439,856 from its joint venture were included.  As a result of the
sale,  only  four  months  of  the joint  venture's  operations  were
included  in  the June 30, 1997 Consolidated Statement of Operations,
where  as  of  June  30,  1996, six months  of  the  joint  venture's
operations were included.



                     PART II - OTHER INFORMATION

Item 1         -    Legal Proceeding
                         The Partnership is not a party to, nor is
               the Partnership's property the subject of, any
               material pending legal proceedings.

Item 2    -    Not applicable

Item 3    -    Not applicable

Item 4    -    Not applicable

Item 5    -    Not applicable

Item 6    -    Exhibits and Reports on Form 8-K

          (a)  Exhibits - None
          (b)  Reports on Form 8-K - None


                             SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of  1934,
the  registrant  has dully caused this report to  be  signed  on  its
behalf by the undersigned, hereunto dully authorized.

                              CAPITAL BUILDERS DEVELOPMENT PROPERTIES
                              a California Limited Partnership

                              By:  Capital Builders, Inc.
                              Its Corporate General Partner


Date: August 27, 1997         By:
                              Michael J. Metzger
                              President


Date: August 27, 1997         By:
                              Kenneth L. Buckler
                              Chief Financial Officer