4

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



Nine Months ended September 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
<TABLE>
      Capital  Builders  Development
                Properties
  (A  California  Limited  Partnership)
                                                             
       CONSOLIDATED  BALANCE  SHEET
<CAPTION>                                                    
                                           September 30 December 31
                                               1997        1996
<S>                                            <C>          <C>
ASSETS                                                       
  Cash and cash equivalents                 $    19,899    $    49,335
  Accounts receivable, net                      123,158        135,406
  Investment property, at cost,                                      
    net of accumulated depreciation                                  
    and amortization of $1,181,495                                   
    and $2,107,769 at September 30,                                  
   1997 and December 31, 1996,                                       
    respectively                              3,983,368      7,252,601
                                                                     
  Lease commissions, net of accumulated                              
    amortization of $51,127 and $99,983                              
    at September 30, 1997, and December                              
    31, 1996, respectively                       76,873        126,701
                                                                     
  Other assets, net of accumulated                                   
    amortization of $12,552 and                                      
    $91,673 at September 30, 1997, and                               
    December 31, 1996, respectively              72,810         66,404
                                                                     
 Minority Interest                             - - - -        695,094
                                                                     
                    Total assets            $ 4,276,108    $ 8,325,541
                                                                     
LIABILITIES AND PARTNERS' EQUITY                                     
  Loan payable to affiliate                    - - - -     1,514,788
  Notes payable                              3,520,844      6,838,732
  Accounts payable and accrued                                        
    liabilities                                 76,496        160,718
  Tenant deposits                               51,626        115,332
                                                                     
                    Total liabilities       $ 3,648,966    $ 8,629,570
                                                                     
  Commitments and contingencies                                      
  Partners' Equity:                                                  
    General partner                           (51,552)       (60,864)
    Limited partners                           678,694      (243,165)
                                                                     
                   Total partners' equity   $   627,142   $  (304,029)
                                                                     
    Total liabilities and partner's equity  $ 4,276,108    $ 8,325,541
                                                                     
   See accompanying notes to the financial                          
                               statements.
                                                                     
</TABLE>

<TABLE>
      Capital  Builders  Development
                Properties
  (A  California  Limited  Partnership)
             
 CONSOLIDATED
STATEMENTS OF
   OPERATIONS
FOR THE MONTHS
ENDED SEPTEMBER
          30,
<CAPTION>                                                           
                                                                    
                           1997                   1996              
                           Three        Nine      Three         Nine
                          Months       Months    Months       Months
                           Ended       Ended      Ended        Ended
<S>                         <C>         <C>        <C>           <C>
Revenues                                                            
  Rental and other                                                  
income                    $170,983    $816,785   $329,277   $958,500
  Interest income              250         822        322      1,079
                                                                    
      Total revenues       171,233     817,607    329,599    959,579
                                                                    
Expenses                                                            
  Operating expenses        40,595     161,377     67,865    193,804
  Repairs  & maintenance    42,603     113,687     28,665     99,922
  Property taxes            17,451      57,012     24,372     73,116
  Interest                  78,681     390,932    187,836    557,229
  General and                                                       
administrative              19,569      74,917     19,299     81,709
  Depreciation and                                                  
amortization                58,482     239,229    113,494    355,516
                                                                    
      Total expenses       257,381   1,037,154    441,531   1,361,296
                                                                    
  Loss before minority                                              
interest                  (86,148)   (219,547)  (111,932)   (401,717)
                                                                    
Minority interest in                                                
joint venture              - - - -      22,806     19,120     65,355
Gain from disposition of                                            
joint venture              - - - -   1,127,913    - - - -    - - - -
                                                                    
Net (loss)/income         (86,148)     931,172   (92,812)   (336,362)
                                                                    
Allocated to general                                                
partners                     (861)       9,312      (929)    (3,364)
                                                                    
Allocated to limited                                                
partners                 ($85,287)    $921,860  ($91,883)   ($332,998)
                                                                    
Net (loss)/income per                                               
limited partnership unit   ($6.19)      $66.86    ($6.66)   ($24.15)
                                                                    
Average units                                                       
outstanding                 13,787      13,787     13,787     13,787
                                                                    
                                                                    
  See accompanying notes                                                  
        to the financial
             statements.
</TABLE>

<TABLE>
      Capital  Builders  Development
                Properties
  (A  California  Limited  Partnership)
            
CONSOLIDATED  STATEMENTS
    OF  CASH  FLOWS
    FOR MONTHS ENDED
     SEPTEMBER 30,
<CAPTION>                                                              
                                                                       
                                  1997                    1996      
                           Three        Nine       Three        Nine
                           Months      Months      Months      Months
                           Ended       Ended       Ended       Ended
<S>                         <C>         <C>         <C>         <C>
Cash flows from                                                        
operating activities:
  Net (loss)/income       ($86,147)    $931,173   ($92,812)  ($336,362)
  Adjustments to                                                       
reconcile net loss to
cash flow used in
operating activities:
  Depreciation and                                                     
amortization                 58,482     239,229     113,494     355,516
  Minority interest in                                                 
joint venture               - - - -    (22,806)    (19,120)    (65,355)
  Gain from Partnership                                                
Investment                  - - - -  (1,127,913)    - - - -     - - - -
  Unpaid Interest on                                                   
Loan Payable to                                                        
Affiliate                   - - - -      55,347      10,584      28,794
  Changes in assets and                                                
liabilities
    (Increase)/decrease                                                
in accounts receivable      (1,895)    (22,500)       2,393     (4,694)
    Increase in leasing                                                
commissions                (10,290)    (26,061)    (18,759)    (62,712)
    (Increase)/decrease                                                
in other assets             (1,653)         246     (2,187)     (1,845)
     Increase/(decrease)                                               
in accounts payable and                                                
accrued liabilities          33,927    (58,596)      44,298      81,594
    (Decrease)/increase                                                
in tenant deposits          (4,898)    (12,164)       8,635       3,722
                                                                       
      Net cash (used in)                                               
provided by operating                                                  
activities                 (12,474)    (44,045)      46,526     (1,342)
                                                                       
Cash flows from                                                        
investing activities:
  Improvements to                                                      
investment properties      (23,102)    (38,566)    (17,879)    (95,107)
  Proceeds from sale of                                                
partnership investment      - - - -      14,380     - - - -     - - - -
                                                                       
      Net cash used in                                                 
investing activities       (23,102)    (24,186)    (17,879)    (95,107)
                                                                       
Cash flows from                                                        
financing activities:
  Payments on notes                                                    
payable                     (8,866)    (44,886)    (16,420)    (55,127)
  Proceeds from notes                                                  
payable                      25,373     166,956     - - - -     - - - -
  Payment of loan fees      - - - -    (83,275)     - - - -     - - - -
  Proceeds on loans                                                    
payable to affiliate        - - - -     - - - -     - - - -     170,000
  Distribution to                                                      
minority interest           - - - -     - - - -     (8,000)    (98,480)
                                                                       
     Net cash provided                                                 
by financing activities      16,507      38,795    (24,420)      16,393
                                                                       
Net (decrease)/increase                                                
in cash                    (19,069)    (29,436)       4,227    (80,056)
                                                                       
Cash, beginning of                                                     
period                       38,968      49,335       6,116      90,399
                                                                       
Cash, end of period         $19,899     $19,899     $10,343     $10,343
                                                                       
See accompanying notes to the financial statements.                    
</TABLE>

                Capital Builders Development Properties
                  (A California Limited Partnership)


              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                          SEPTEMBER 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 net cash proceeds of
$14,380.  As of September 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  land
loan  secured  by  Phase II (undeveloped pad).   The  land  loan  was
granted  an  additional six-month extension, extending  its  maturity
date to March 24, 1998.

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.


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
$39,053 and $46,013 for the nine months ending September 30, 1997 and
1996, respectively, while total reimbursement of expenses were
$75,283 and $86,618, respectively.
                                   
NOTE 5 - INVESTMENT PROPERTIES

The components of the investment property account are as follows:

                                September 30,   December 31,
                                         1997         1996
Land                               $1,353,177     $2,423,706
Building and Improvements           3,283,383      5,802,208
Tenant Improvements                   528,303      1,134,456
Investment properties, at cost      5,164,863      9,360,370

Less: accumulated depreciation
        and amortization          (1,181,495)    (2,107,769)

     Investment property, net      $3,983,368     $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 September 30,
1997, respectively.  Interest expense incurred on the loan was
$55,347 and $81,457 in 1997 and 1996, respectively.

NOTE 7 - NOTES PAYABLE

Notes Payable consist of the following at:
                                      September 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
collateralized  by  a  First  Deed  of
Trust on the land, buildings and
improvements.                             $3,332,471     $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
March,  24,  1998.   The  note   bears
interest at bank prime rate (8.50%  at
September 30, 1997) plus 1.5%  with  a
9%  floor.   The  note is  secured  by
Plaza de Oro's separately parceled
Phase II land.                               188,373      - - - - -

Total Notes Payable                       $3,520,844     $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                       $642,168
                    1998                        582,094
                    1999                        518,136
                    2000                        475,095
                    2001                        259,794
                    Thereafter                  104,178
                    Total                    $2,581,465



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:

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

Assets
Cash and cash equivalents     $19,899      $19,899    $49,335     $49,335

Liabilities
Loan payable to affiliate    $  - - -     $  - - - $1,514,788   1,514,788
Note payable               3,332,471     3,332,471  3,383,141   3,383,141
Note payable                  188,373      188,373  3,455,591   3,455,591


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 nine months ending September 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 $14,380.  The
refinancing of the Partnership's Note Payable also provided initial
cash proceeds amounting to $141,583 and subsequent draws of $25,373
for site planning performed on the Plaza de Oro pad.  The cash
provided by the sale of the joint venture and the initial funding for
the refinancing, along with cash flow from operations, was primarily
used to bring its accounts payable current, decreasing accounts
payable by $58,596, 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 $26,061, plus tenant and pad site improvements of $38,566 for the
Partnership's investment properties.  It is anticipated that
approximately $17,000 in additional tenant improvements and leasing
commissions will be incurred during 1997 in order to maintain Plaza
de Oro's stabilized 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, and extending its land loan until March 24, 1998.
The Partnership appears to be able to meet current year obligations,
provided it is able to maintain its properties current occupancy 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 decreased by $141,972 (14.8%) for the
nine  months  ended September 30, 1997, as compared to  September  30,
1996,  while expenses also decreased by $324,142 (23.8%) for the  same
respective period. In addition, the minority interest in net loss  has
decreased by $42,549 (65.1%) 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  $1,267,534
(376.8%)  for the nine months ended September 30, 1997 as compared  to
September 30, 1996.

The decrease in revenues is due to the sale of the Partnership's joint
venture  interest on May 1,1997.  The sale decreased reported revenues
by  $248,272 since only four months of the joint venture's  operations
were  included in the 1997 Consolidated Statement of Operations, where
as  the September 30, 1996 Statement included nine months of the joint
venture's operations.  The Partnership's remaining property, Plaza  de
Oro,  experienced  an increase in revenues of $106,300  for  the  nine
months ended September 30, 1997, compared to September 30 1996, due to
an increase in occupancy.

Total  expenses  decreased  by $324,142  for  the  nine  months  ended
September 30, 1997, as compared to September 30, 1996, due to the sale
on  May  1,  1997  of  its 60% interest of Capital Builders  Roseville
Venture.   As  of  September  30, 1997, the  Statement  of  Operations
included  expenses  of $299,645 from its joint venture,  where  as  of
September  30, 1996, expenses of $654,285 from its joint venture  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: November 17, 1997       By:
                              Michael J. Metzger
                              President


Date: November 17, 1997       By:
                              Kenneth L. Buckler
                              Chief Financial Officer