UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(x) QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2001

                                       OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934

For the transition period from          to

Commission File Number: 0-5537

                        INVESTMENT PROPERTIES ASSOCIATES
             ------------------------------------------------------
             (Exact Name of registrant as specified in its charter)

A New York Limited Partnership                            13-2647723
------------------------------                 ---------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
incorporation or organization)

                     60 East 42nd Street, New York, New York
                     ---------------------------------------
                    (Address of principal executive offices)

                                      10165
                                   ----------
                                   (Zip Code)

       Registrant's telephone number, including area code: (212) 687-6400

      Indicate by check mark  whether the  Registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes X          No ____

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

      Indicate by check mark whether the  registrant has filed all documents and
reports  required  to be  filed by  Section  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court.

Yes____        No ____

      820,000 Participation in Limited Partnership Interest.


<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                      INDEX
                                      -----

                                                                     Page Number

PART 1

Item 1:  Financial Statements

         Balance Sheets                                                   3

         Statements of Operations                                         4

         Statements of Cash flows                                         5

         Notes to Unaudited Financial Statements                          6

Item 2:  Management's Discussion and Analysis Of Financial

         Condition and Results of Operations                              7

Item 3:  Quantitative and Qualitative Disclosures about
         Market Risk                                                      8
PART II

Item 6:  Exhibits and Reports on Form 8-K                                 9

         Signatures                                                      10


                                      -2-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS

                   AS AT MARCH 31, 2001 AND DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                                   March 31, 2001           December 31, 2000
                                                                   --------------           -----------------
ASSETS                                                              (Unaudited)                   (Note)
------
<S>                                                                 <C>                       <C>
Real estate, at cost                                                $  8,033,347              $  8,033,347

  Less:  Accumulated depreciation and amortization                     5,880,040                 5,880,040
                                                                    ------------              ------------
                                                                       2,153,307                 2,153,307
Cash and cash equivalents                                              9,243,064                 9,514,349

Due from managing agent (Helmsley-Spear, Inc.)
  including tenants' security deposits of
  $230 (2001) and $230 (2000)                                            518,198                   730,578

Receivables, principally from rentals                                      8,215                     8,215

Other assets                                                             549,233                   553,350
                                                                    ------------              ------------
                                                                    $ 12,472,017              $ 12,959,799
                                                                    ============              ============

LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)

Accounts payable                                                    $     96,159              $    113,368

Accrued real estate taxes                                                  2,150                    11,086

Distributions payable to General Partners,
  Special Limited Partners and Limited Partners                        3,165,446                 3,915,446

Sundry liabilities and other accrued expenses                            268,178                   394,918
                                                                    ------------              ------------
                                                                    $  3,531,933              $  4,434,818
                                                                    ------------              ------------

Partners' Capital (Deficiency):

  General Partners                                                    (2,463,114)               (2,465,397)

  Special Limited Partners                                             6,171,655                 5,966,387

  Limited Partners (represented by the equivalent of
      820,000 Participation Interest)                                  5,231,543                 5,023,991
                                                                    ------------              ------------
                                                                       8,940,084                 8,524,981
                                                                    ------------              ------------
                                                                    $ 12,472,017              $ 12,959,799
                                                                    ============              ============
</TABLE>

Note: The balance  sheet at December  31, 2000 has been derived from the audited
      financial statements at that date.

See notes to financial statements


                                      -3-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                    UNAUDITED
                            STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                                          FOR THE THREE MONTHS ENDED
                                                                          --------------------------
                                                                   March 31, 2001           March 31, 2000
                                                                   --------------           --------------
<S>                                                                 <C>                       <C>
Revenues:
---------
Gross revenues from real estate                                     $     3,232               $ 4,057,422
Real estate tax refund                                                  517,038                        --
Interest                                                                132,830                   472,616
                                                                    -----------               -----------
                                                                        653,100                 4,530,038
                                                                    -----------               -----------

Expenses:
---------
Real estate taxes                                                        35,653                   431,170
Interest on mortgages                                                        --                    43,584
Other expenses                                                          173,219                 1,621,638
Depreciation and amortization of real estate                                 --                   313,832
                                                                    -----------               -----------
                                                                        208,872                 2,410,224
                                                                    -----------               -----------

Income before items shown below                                         444,228                 2,119,814
Gain on Sale of Real Estate                                                  --                37,489,074
                                                                    -----------               -----------
                                                                        444,228                39,608,888
                                                                    -----------               -----------

Payments required under the Limited
  Partnership Agreement:
  To the Limited Partners                                                 3,750                     3,750
  To the General and Special Limited Partners                            25,375                    47,875
                                                                    -----------               -----------
                                                                         29,125                    51,625
                                                                    -----------               -----------
Net income transferred to Partners'
  Capital Accounts                                                  $   415,103               $39,557,263
                                                                    ===========               ===========

Net income allocable as follows (based on terms
  of the  Limited  Partnership Agreement):
  General Partners                                                  $     2,283               $   233,163
  Special Limited Partners                                              205,268                20,963,468
  Limited Partner (represented by the equivalent of
     820,000 Participation Interests - unchanged during
     the periods)                                                       207,552                18,360,632
                                                                    -----------               -----------
                                                                    $   415,103               $39,557,263
                                                                    ===========               ===========
Per Participation Interest:
  Net Income                                                        $    0.2531               $   22.3910
                                                                    ===========               ===========

</TABLE>

See notes to financial statements.


                                      -4-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                    UNAUDITED
                            STATEMENTS OF CASH FLOWS

          FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND MARCH 31, 2000

<TABLE>
<CAPTION>
                                                                               2001                     2000
                                                                               ----                     ----
<S>                                                                      <C>                       <C>
OPERATING ACTIVITIES:
  Net income                                                             $     415,103             $  39,557,263
  Adjustments to reconcile net income to net
  cash provided (used) by operating activities:
     Depreciation and amortization of real estate                                   --                   313,832
     Gain of Sale of Real Estate                                                    --               (37,489,074)
     Amortization of deferred leasing commissions                                   --                   120,098
     Changes in operating assets and liabilities:
       Decrease (increase) in due from managing agent                          212,380                (3,884,867)
         Decrease in receivables                                                    --                   203,809
         Decrease in other assets                                                4,117                   288,653
         (Decrease) in accounts payable                                        (17,209)                 (189,986)
         (Decrease) increase in accrued real estate tax                         (8,936)                    2,150
         (Decrease) in sundry and other
           accrued  expenses                                                  (126,740)                 (263,195)
         (Decrease) in deposits and rents
           received in advance                                                      --                  (154,388)
                                                                         -------------             -------------
           Net Cash Provided (Used) by Operating
             Activities                                                        478,715                (1,495,705)
                                                                         -------------             -------------

INVESTING ACTIVITIES:
  Property Improvements                                                             --                  (137,966)
  Net proceeds from sale of real estate                                             --                40,994,457
                                                                         -------------             -------------
       Net Cash Provided by Investing Activities                                    --                40,856,491
                                                                         -------------             -------------

FINANCING ACTIVITIES:
  Distributions of net operating revenues and proceeds
     from sale of real estate to General Partners,
     Special Limited Partners and Limited Partners                            (750,000)             (111,632,257)
  Principal payments on mortgage payable                                            --                (4,000,000)
                                                                         -------------             -------------

         Net Cash (Used in) Financing Activities                              (750,000)             (115,632,257)
                                                                         -------------             -------------
           (Decrease) in Cash and Cash Equivalents)                           (271,285)              (76,271,471)

Cash and Cash Equivalents at Beginning of Period                             9,514,349                79,770,013
                                                                         -------------             -------------

Cash and Cash Equivalents at end of Period                               $   9,243,064             $   3,498,542
                                                                         -------------             -------------

Supplemental disclosure of cash flow information:
  Cash paid during the period for interest                               $          --             $      14,306
                                                                         =============             =============
</TABLE>


                                      -5-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1

      As permitted by the Securities and Exchange  Commission,  the accompanying
Unaudited Financial  Statements and footnotes have been condensed and therefore,
do not  contain  all  disclosures  required  by  generally  accepted  accounting
principles.  Reference  should be made to the Company's  Annual Report Form 10-K
for the year ended  December 31, 2000,  filed with the  Securities  and Exchange
Commission.

NOTE 2

      In the  opinion  of the  Company,  the  accompanying  Unaudited  Financial
Statements  contain  all  adjustments   (consisting  only  of  normal  recurring
accruals)  necessary to present  fairly its  financial  position as of March 31,
2001 and the results of operations for the three months ended March 31, 2001 and
2000.

NOTE 3

      The results of  operations  for the three  months ended March 31, 2001 and
2000 are not  necessarily  indicative of the results to be expected for the full
year.

NOTE 4 - Taxes

      The net income for Federal  income tax  purposes  is  $361,425  (March 31,
2001) and  $39,197,958  (March 31, 2000) as compared with net income of $415,103
and  $39,557,263  respectively,  as shown in the  statement of  operations.  The
differences result principally from (a) rents received in advance and recognized
currently for income tax purposes,  and (b) differences in depreciation  expense
and gains on sale of real estate resulting from differences in the basis of real
estate for tax and financial reporting purposes.


                                      -6-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF

                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Gross revenue from rentals for 2001 decreased  approximately 100% as compared to
2000.  The decrease was  primarily due to the sale of 1328  Broadway,  261 Fifth
Avenue and 245 Fifth Avenue Buildings which occurred during 2000. As a result of
these sales, the partnership's  properties consist of two parcels of undeveloped
land located in Houston,  Texas, and a vacant office property located in Newark,
New Jersey, none of which are currently generating any rental income.

The  decrease in interest  income was due to the  reduction  of  investments  in
Commercial  Paper as a result of the distribution of net proceeds from the sales
of properties to the partners.

The real estate tax refund was  attributable  to the settlement in 2001 of a tax
certiorari appeal,  filed in a prior year relating to the partnership's  Chicago
Properties which had been sold in 1998.

The decrease in Real Estate Taxes and other expenses is attributable to the sale
of the 1328 Broadway,  261 Fifth Avenue and 245 Fifth Avenue  properties,  which
occurred in 2000.

The decrease in interest expense was due to the repayment of mortgage  principal
balance in 2000 upon the sale of the 1328 Broadway property.

The decrease in depreciation and amortization of real estate was due to the sale
of the 1328  Broadway, 261 Fifth Avenue and 245 Fifth  Avenue  properties  in
2000. The Partnership's  remaining office property located in Newark, New Jersey
is being  held as  vacant  and is  currently  held  for  sale.  Accordingly,  no
depreciation is being recorded.


                                      -7-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                 Quantitative and Qualitative Disclosures About
                                   Market Risk

At  March  31,  2000,  Registrant  had  no  interest  bearing  indebtedness  and
accordingly  was not exposed to market risk with  respect to changes in interest
rates, and does not anticipate a need to seek additional borrowings.


                                      -8-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                        Exhibits and Reports on Form 8-K
                        --------------------------------

                                     -NONE-


                                      -9-
<PAGE>

                         INVESMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                   SIGNATURES
                                   ----------

      Pursuant  to the  requirements  of  Section 13 or 15(d) of the  Securities
Exchange Act of 1934, Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

                                      INVESTMENT PROPERTIES ASSOCIATES

                                      By:/s/ Irving Schneider
                                         ---------------------------------------
                                             Irving Schneider
                                             General and Special Limited Partner

Dated: June 15, 2001


                                      -10-