SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549


                                    FORM 10-Q

(X)                  QUARTERLY REPORT PURSUANT TO SECTION 13
                OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
                   For the quarterly period ended June 30, 2000

                                       OR

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


Commission file number:  0-17695
                        --------


                           HEALTHCARE PROPERTIES, L.P.
                           ---------------------------
             (Exact name of Registrant as specified in its charter)


            DELAWARE                                           62-1317327
            --------                                           ----------
State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                            Identification Number)


              14160 Dallas Parkway, Suite 300, Dallas, Texas 75240
              ----------------------------------------------------
                     (Address of principal executive office)


                                 (972) 770-5600
                                 --------------
              (Registrant's telephone number, including area code)


     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 at least the past 90 days. YES   x   NO
                                                        ---      ---


<PAGE>


PART I.  FINANCIAL INFORMATION


Item 1.  Financial Statements
         --------------------
<TABLE>
<CAPTION>

                                     HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                                            (A Delaware Limited Partnership)

                                               CONSOLIDATED BALANCE SHEETS
                                               ---------------------------

                                                                             June 30, 2000         December 31, 1999
                                                                             -------------         -----------------
                                                                              (Unaudited)
                                                                              -----------
                                     ASSETS
                                     ------
<S>                                                                        <C>                     <C>
Cash and cash equivalents                                                  $     16,486,294        $     13,723,936

Accounts receivable, less allowance for doubtful
  accounts of $354,942 in 2000 and $735,106 in 1999                                 627,789               1,620,943

Prepaid expenses and other                                                                -                     305

Assets held for sale, at the lower of carrying value or                           7,572,648               9,549,086
  fair value less estimated costs to sell

Property and improvements, net                                                    6,692,570               6,956,615

Deferred charges, less accumulated amortization
  of $988,536 in 2000 and $989,098 in 1999                                          145,807                 204,367
                                                                           ----------------        ----------------


                                                                           $     31,525,108        $     32,055,252
                                                                           ================        ================


                       LIABILITIES AND PARTNERSHIP EQUITY
                       ----------------------------------

Accounts payable and accrued expenses                                      $        387,458        $        454,772

Operating facility accounts payable                                                 143,481                 137,777

Mortgage loans payable                                                            4,899,078               5,173,281
                                                                            ---------------        ----------------

                                                                                  5,430,017               5,765,830
                                                                            ---------------        ----------------

Partnership equity:
  Limited partners (4,148,325 units outstanding in 2000 and 1999)                25,962,514              26,189,763
  General partner                                                                   132,577                  99,659
                                                                            ---------------        ----------------
                                                                                 26,095,091              26,289,422
                                                                            ---------------        ----------------

                                                                            $    31,525,108        $     32,055,252
                                                                            ===============        ================


</TABLE>

                        See notes to financial statements

                                        1

<PAGE>

<TABLE>
<CAPTION>

                                     HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                                            (A Delaware Limited Partnership)

                                        CONSOLIDATED STATEMENTS OF OPERATIONS
                                        -------------------------------------
                                                     (Unaudited)

                                                                    Three months ended,         Three months ended,
                                                                      June 30, 2000                June 30, 1999
                                                                      -------------                -------------
<S>                                                                   <C>                          <C>
Revenues:
   Rental                                                             $     1,029,476              $     1,102,271
   Net patient services                                                     1,415,679                    1,370,147
                                                                      ---------------              ---------------
                                                                            2,445,155                    2,472,418
                                                                      ---------------              ---------------


Expenses:
   Facility operating expenses                                              1,207,606                    1,149,654
   Depreciation                                                               133,178                      322,382
   Administrative and other                                                   278,968                      332,046
   Bad debts                                                                   15,000                       15,000
                                                                      ---------------              ---------------
                                                                            1,634,752                    1,819,082
                                                                      ---------------              ---------------
       Income from operations                                                 810,403                      653,336
                                                                      ---------------              ---------------


Other income (expenses):
   Interest income                                                            236,681                      131,049
   Interest expense                                                          (125,714)                    (147,677)
   Amortization                                                               (24,240)                     (26,284)
                                                                      ----------------             ---------------
                                                                               86,727                      (42,912)
                                                                      ---------------              ---------------


         Net income                                                   $       897,130              $       610,424
                                                                      ===============              ===============

Allocation of net income
   Limited partner                                                    $       879,187              $       598,216
   General partner                                                             17,943                       12,208
                                                                      ---------------              ---------------
                                                                      $       897,130              $       610,424
                                                                      ===============              ===============

NET INCOME PER LIMITED                                                $           .21              $           .14
  PARTNERSHIP UNIT                                                    ===============              ===============

WEIGHTED AVERAGE
   NUMBER OF UNITS                                                          4,148,325                    4,148,325
                                                                      ===============              ===============

</TABLE>


See notes to financial statements

                                       2
<PAGE>

<TABLE>
<CAPTION>


                                     HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                                           (A Delaware Limited Partnership)

                                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                          -------------------------------------
                                                       (Unaudited)

                                                                     Six months ended,           Six months ended,
                                                                      June 30, 2000                June 30, 1999
                                                                      -------------                -------------
<S>                                                                   <C>                          <C>
Revenues:
   Rental                                                             $     2,022,308              $     2,195,042
   Net patient services                                                     2,851,341                    2,585,654
                                                                      ---------------              ---------------
                                                                            4,873,649                    4,780,696
                                                                      ---------------              ---------------


Expenses:
   Facility operating expenses                                              2,434,489                    2,312,230
   Depreciation                                                               266,346                      644,620
   Administrative and other                                                   605,331                      729,070
   Bad debts                                                                   30,000                       30,000
                                                                      ---------------              ---------------
                                                                            3,336,166                    3,715,920
                                                                      ---------------              ---------------
       Income from operations                                               1,537,483                    1,064,776
                                                                      ---------------              ---------------


Other income (expenses):
   Gain on disposition of property                                            302,787                            -
   Interest income                                                            424,861                      264,514
   Interest expense                                                          (257,903)                    (298,176)
   Amortization                                                               (58,559)                     (52,568)
                                                                      ----------------             ---------------
                                                                              411,186                      (86,230)
                                                                      ---------------              ---------------


         Net income                                                   $     1,948,669              $       978,546
                                                                      ===============              ===============

Allocation of net income
   Limited partner                                                    $     1,915,751              $       958,975
   General partner                                                             32,918                       19,571
                                                                      ---------------              ---------------
                                                                      $     1,948,669              $       978,546
                                                                      ===============              ===============

NET INCOME PER LIMITED                                                $           .46              $           .23
  PARTNERSHIP UNIT                                                    ===============              ===============


WEIGHTED AVERAGE
   NUMBER OF UNITS                                                          4,148,325                    4,148,325
                                                                      ===============              ===============
</TABLE>


                       See notes to financial statements

                                       3
<PAGE>

<TABLE>
<CAPTION>

                                     HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                                           (A Delaware Limited Partnership)

                                     CONSOLIDATED STATEMENTS OF PARTNERSHIP EQUITY
                                     ---------------------------------------------
                                                     (Unaudited)


                                                       Limited              General
                                                       Partners            Partners               Total
<S>                                                <C>                 <C>                  <C>
EQUITY at
   December 31, 1999                               $   26,189,763      $     99,659         $   26,289,422

Distributions                                          (2,143,000)                0             (2,143,000)

Net Income - six months ended                           1,915,751            32,918              1,948,669
   June 30, 2000                                   --------------      ------------         --------------

EQUITY at
June 30, 2000                                      $   25,962,514      $    132,577         $   26,095,091
                                                   ==============      ============         ==============

</TABLE>


                       See notes to financial statements

                                       4



<PAGE>

<TABLE>
<CAPTION>


                                     HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                                           (A Delaware Limited Partnership)

                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
                                          -------------------------------------
                                                       (Unaudited)

                                                                                Six months ended           Six months ended
                                                                                  June 30, 2000              June 30, 1999
                                                                                  -------------              -------------
<S>                                                                               <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                                     $   1,948,669              $     978,546
   Adjustments to reconcile net income to
     net cash provided by operating activities:
         Bad debts                                                                       30,000                     30,000
         Depreciation and amortization                                                  324,905                    697,188
         Gain on disposition of property, net                                          (302,787)                         -
         Changes in assets and liabilities:
             Accounts receivable                                                        963,154                   (611,403)
             Prepaid expenses                                                               305                      1,206
             Accounts payable & accrued expenses                                        (61,610)                    59,657
                                                                                  --------------             -------------
                    NET CASH PROVIDED BY
                    OPERATING ACTIVITIES                                              2,902,636                  1,155,194
                                                                                  -------------              -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
         Proceeds from sale of property                                               2,279,225                          -
         Purchases of property and improvement                                           (2,300)                   (11,769)
                                                                                  -------------              -------------
                    NET CASH USED IN
                    INVESTING  ACTIVITIES                                             2,276,925                    (11,769)
                                                                                  -------------              -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Payments on mortgage loans payable                                              (274,203)                  (310,723)
       Distributions                                                                 (2,143,000)                  (499,975)
                                                                                  -------------              -------------
                    NET CASH USED IN
                    FINANCING ACTIVITIES                                             (2,417,203)                  (810,698)
                                                                                  -------------              -------------

NET INCREASE IN CASH
AND CASH EQUIVALENTS                                                                  2,762,358                    332,727

CASH AND CASH EQUIVALENTS
   Beginning of Period                                                               13,723,936                 11,971,405
                                                                                  -------------              -------------

CASH AND CASH EQUIVALENTS
   End of Period                                                                  $  16,486,294              $  12,304,132
                                                                                  =============              =============

CASH PAID FOR INTEREST                                                            $     267,593              $     298,176
                                                                                  =============              =============
</TABLE>


                       See notes to financial statements

                                       5
<PAGE>



                  HEALTHCARE PROPERTIES, L.P. AND SUBSIDIARIES
                        (A Delaware Limited Partnership)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                             June 30, 2000 AND 1999

                                   (Unaudited)

A.       ACCOUNTING POLICIES

         The accompanying  unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the  instructions to Form 10-Q and Article 10 of
Regulation  S-X.  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 management,  all adjustments (consisting
of normal recurring accruals) considered necessary have been included. Operating
results are not  necessarily  indicative of the results that may be expected for
the  year  ending  December  31,  2000.  The  unaudited  consolidated  financial
statements  should  be read  in  conjunction  with  the  consolidated  financial
statements and the footnotes  thereto included in Registrant's  annual report on
Form 10-K for the year ended December 31, 1999.

Net income  (loss) of the  Partnership  and taxable  income (loss) are generally
allocated  98  percent to the  limited  partners  and 2 percent  to the  general
partner. The net income of the Partnership from the disposition of a property is
allocated  (i) to partners  with deficit  capital  accounts on a pro rata basis,
(ii) to limited partners until they have been paid an amount equal to the amount
of their Adjusted  Investment,  as defined,  (iii) to the limited partners until
they  have  been  allocated  income  equal  to  their  12  percent   Liquidation
Preference,  and (iv)  thereafter,  80 percent to the  limited  partners  and 20
percent  to the  general  partner.  The net  loss of the  Partnership  from  the
disposition  of a property is allocated (i) to partners  with  positive  capital
accounts  on a pro rata basis and (ii)  thereafter,  98  percent to the  limited
partners and 2 percent to the general  partner.  Distributions of available cash
flow are generally  distributed 98 percent to the limited partners and 2 percent
to the general  partner,  until the  limited  partners  have  received an annual
preferential  distribution,  as  defined.  Thereafter,  available  cash  flow is
distributed  90 percent to the  limited  partners  and 10 percent to the general
partner.

B.        TRANSACTIONS WITH THE GENERAL PARTNER AND AFFILIATES OF THE GENERAL
          PARTNER

         Personnel  working at the  Cambridge  facility  and certain home office
personnel  who perform  services  for the  Registrant  are  employees of Capital
Senior Living,  Inc.  ("CSL"),  the managing agent of the Registrant,  which was
until June 10, 1998, an affiliate of Capital Realty Group Senior  Housing,  Inc.
("CRGSH"), the General Partner of the Registrant.  The Registrant reimburses CSL
for  the  salaries,  related  benefits,  and  overhead  reimbursements  of  such
personnel as reflected in the accompanying  consolidated  financial  statements.
Reimbursements and fees paid to CRGSH and CSL are as follows:

<TABLE>
<CAPTION>

                                                          Six months ended           Six months ended
                                                           June 30, 2000              June 30, 1999
                                                           -------------              -------------
<S>                                                        <C>                         <C>
Salary and benefit reimbursements                          $    1,733,884              $    1,513,483
Administrative reimbursements                                      77,281                      82,785
Asset management fees                                              79,452                     234,000
Property management fees                                          199,411                     178,053
General partner fees                                               48,648                      47,387
                                                           --------------              --------------
                                                           $    2,138,676              $    2,055,708
                                                           ==============              ==============
</TABLE>

                                       6

<PAGE>

         Currently,   Capital  Senior  Living  Properties,   Inc.,  formerly  an
affiliate of CRGSH,  holds  approximately  57% of the  outstanding  units of the
Registrant.  The Registrant is included in the consolidated financial statements
of Capital Senior Living Properties, Inc. and its parent company, Capital Senior
Living Corporation, a public company that files with the Securities and Exchange
Commission.

         On June 10, 1998, the sole owner of the General Partner, Capital Realty
Group  Corporation,  sold all of its shares of CRGSH common stock to  Retirement
Associates,  Inc.  ("Associates")  for  $855,000.  The source of the funds was a
Promissory  Note for  $855,000  with a  five-year  term and  bearing  an  earned
interest rate of 8% per annum.  The interest  accrues on the Promissory Note and
is payable at the maturity of the  Promissory  Note.  Associates is the maker of
the Note and Capital Realty Group  Corporation is the payee. Mr. Robert Lankford
is the  President of  Associates  and has brokered and  continues to broker real
estate as an independent  contractor  with Capital Realty Group  Corporation and
its affiliates.

C.       VALUATION OF RENTAL PROPERTY

         Generally  accepted  accounting  principles require that the Registrant
evaluate  whether an event or circumstance has occurred that would indicate that
the  estimated   undiscounted  future  cash  flows  of  its  properties,   taken
individually, will be less than the respective net book value of the properties.
If such a shortfall  exists and is material,  then a write-down to fair value is
recorded.  The Registrant performs such evaluations on an on-going basis. During
the six months ended June 30, 2000, based on the Registrant's  evaluation of the
properties, the Registrant did not record any impairment.

Item 2.          Management's Discussion and Analysis of Financial Condition and
                 Results of Operations

Liquidity and Capital Resources

         Registrant  commenced an offering to the public on August 31, 1987,  of
depository  units  representing  beneficial  assignments of limited  partnership
interests  ("Units").  On October 14,  1987,  Registrant  commenced  operations,
having previously accepted  subscriptions for more than the specified minimum of
120,000  Units.  As of August 30, 1989, the offering was closed except for Units
for sale to existing  investors  under the terms of a distribution  reinvestment
plan.  As  of  September  30,  1995,   Registrant  had  sold  Units  aggregating
approximately  $43.4  million.   Due  to  the  suspension  of  the  distribution
reinvestment  plan,  Registrant  does not anticipate  any  additional  inflow of
investment.

         All of the net proceeds of the offering were originally  invested in 12
properties  or used for  working  capital  reserves.  The  Registrant  partially
financed the acquisition of eight of its original  properties with  non-recourse
debt. Four properties  were initially  unleveraged.  As of June 30, 2000, six of
the  original  twelve  properties  had  either  been sold or deeded  back to the
lender,  leaving the  Registrant  with two  properties  secured by debt and four
properties unleveraged.  With the exception of the Cambridge facility,  which is
operated  by the  Registrant  and  consequently  not  leased  to a  third  party
operator,  the initial term of the five  properties with long-term net leases to
third party  operators are due to expire in the years 2000 and 2001. Such leases
are  subject  to  renewal  and  purchase  options.  As of  June  30,  2000,  the
Cedarbrook,  Sandybrook and McCurdy facilities are classified as assets held for
sale.

         Potential sources of liquidity for Registrant  include current holdings
of cash and cash  equivalents,  collection  of  outstanding  receivables  and/or
revenue  participation  related  to various  leased  facilities,  collection  on
defaulted  rent and/or  damage  settlements  related to leases in  default,  new
mortgage  financing on one or more of Registrant's  unencumbered  assets,  and a
potential sale of one or more of the Registrant's assets.

         As  of  June  30,  2000,  Registrant  had  cash  and  cash  equivalents
aggregating $16,486,294.  The cash and cash equivalents will be used for working
capital and emergency reserves.


                                       7

<PAGE>

         Registrant's  general  policy is to maintain  sufficient  cash and cash
equivalents  to address  disruptions  of its lease revenues and to have adequate
additional  funds for  investment in existing  assets for  improvements.  In the
event that  Registrant  deems it necessary to take over the operations of any of
its facilities  currently under  long-term net lease,  such action would require
additional  investment  in  working  capital  for  operating  reserves,  capital
expenditures  and  related  debt  payments.  Future cash  distributions  will be
dependent on the status of future operational control of these properties.  Cash
distributions  for the six months  ending June 30,2000 and 1999 were  $2,143.000
and $0,  respectively.  The Units are not  publicly  traded  and as a result the
liquidity of each Limited Partner's individual investment is limited.

Results of Operations

                  Discussion of Six Months Ending June 30, 2000
                  ---------------------------------------------

         Rental  revenues  for the six  months  ended  June 30,  2000  decreased
$172,734 from the  comparable  six months ended June 30, 1999,  due to decreased
revenue  participation from leased facilities.  Net patient services for the six
months ended June 30, 2000 increased $265,687 from the six months ended June 30,
1999,  and was  primarily due to increased  occupancy  and higher  reimbursement
rates at the Cambridge  facility.  Interest income for the six months ended June
30,  2000  increased  $160,347  from the six months ended June 30, 1999, and was
primarily due to increasing  cash available for  investment.  A gain of $302,787
was recognized for the sale of the Cane Creek facility on January 11, 2000.

         Facility  operating  expenses  for the six months  ended June 30,  2000
increased by $122,259  from the  comparable  1999 period and is primarily due to
increased professional fees at the Cambridge facility.  Depreciation for the six
months ended June 30, 2000,  decreased  $378,274 from the comparable 1999 period
due  to  the  sale  of  the  Cedarbrook  and  Cane  Creek   facilities  and  the
classification  of  certain  assets  as  assets  held for  sale.  Administrative
expenses decreased $123,739 for the six months ended June 30, 2000 in comparison
to 1999 and is primarily  due to  decreased  professional  and asset  management
fees.  There was no change in bad debt expense for the six months ended June 30,
2000 in comparison to the 1999 period. Interest expense for the six months ended
June 30, 2000 decreased by $40,273 from the comparable 1999 period and is due to
the sale of the Cane Creek  facility  and  retirement  of the related  mortgage.
Amortization  expense for the six months  ended June 30, 2000  increased  $5,991
from the comparable 1999 period and is due to the write-off of certain  deferred
charges upon the sale of the Cane Creek facility.

         For the three  months  ended June 30, 2000 as  compared  with the three
months ended June 30, 1999, Registrant's revenue was impacted by the same shifts
of revenue as discussed  above.  Similarly,  a comparison of second quarter 2000
operating  expenses  versus second  quarter 1999 reflects the same  variances as
discussed  above  with the  exception  of a decrease  of $2,044 in  amortization
expense.

         Cash and cash equivalents as of June 30, 2000 increased $2,762,358 over
the balance at December 31, 1999. Cash flows increased by $2,429,631 for the six
months ending June 30, 2000 in comparison to 1999 primarily due to cash proceeds
from the sale of the Cane Creek  facility,  collection  of a  $700,000  bad-debt
recovery  administrative  claim approved by the United States  Bankruptcy  Court
related to the Cambridge  facility and the bankruptcy  proceedings of the former
lessee of that facility,  and improved operating income. Net accounts receivable
of  $627,789  at June 30, 2000  reflected  an  decrease  of  $993,154  over 1999
year-end  balances and is due to the  collection of the $700,000  administrative
claim  noted  above  and  improved  collections  of  accounts  receivable  at on
Cambridge facility.  Accounts payable,  accrued expenses, and operating facility
accounts payable balances  decreased $61,610 at June 30, 2000, from December 31,
1999 and is primarily  due to the decrease in accrued  payroll at the  Cambridge
facility.

         The  following  is a brief  discussion  of the  status of  Registrant's
properties:

                                       8
<PAGE>


Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook Facilities

The  Registrant  has  a  non-cancelable  master  lease  with  Rebound,  Inc.,  a
subsidiary of HealthSouth Corporation  (HealthSouth).  The master lease included
the Cedarbrook, Cane Creek, Crenshaw Creek and Sandybrook facilities. Due to low
occupancy, HealthSouth closed the Sandybrook facility in 1994 and the Cedarbrook
facility  in 1997.  Effective  August 5, 1999,  HealthSouth  agreed to  transfer
control of the  Cedarbrook  and  Sandybrook  facilities to the Registrant and to
continue  making its full lease  payments under the terms of the master lease to
the Registrant.  On September 30, 1999, the Registrant sold the main facility of
the Cedarbrook  campus for $2,825,000,  resulting in a $772,286 gain on the sale
and  $2,308,734  in net cash  proceeds  after  payment of  settlement  costs and
mortgage  payable;  the two small  facilities on the Cedarbrook  campus were not
sold  and  were  held  for sale by the  Registrant,  along  with the  Sandybrook
facility, as of June 30, 2000.

On  January  11,  2000,  the Cane Creek  facility  was sold to a  subsidiary  of
HealthSouth  for  $2,350,000,  resulting  in a  $302,787  gain on the  sale  and
$2,143,400 in net cash proceeds  after payment of settlement  costs and mortgage
payable.  HealthSouth still leases the Crenshaw Creek facility,  but closed down
this facility in May 2000. On July 12, 2000,  one of the two  Cedarbrook  houses
was sold for $390,546 resulting in a gain on sale of approximately  $115,700 and
net cash proceeds of approximately  $360,380 after payment of settlement  costs.
On August 4, 2000 the Sandybrook facility was sold for $2,025,000 resulting in a
loss on sale of approximately  $768,400,  and net cash proceeds of approximately
$1,829,130  after  payment of  settlement  costs.  Even though  HealthSouth  has
transferred or shut down these  properties and some have been sold,  HealthSouth
continues to make its full lease payments under the terms of the master lease.

Two recourse loans,  Cedarbrook and Cane Creek,  were due in January 1996 in the
aggregate amount of approximately $2,400,000.  Both of these notes were callable
by the  lenders at any time  between  January  1, 1993 and  November  30,  1995;
however,  the lenders agreed not to exercise their call rights prior to maturity
on January 31, 1996 as long as the  Partnership  remained in compliance with the
loan  agreements.  On March 21, 1997,  one of the lenders agreed not to exercise
its call right until June 30, 1997. The  Registrant  paid off this loan upon the
sale of the Cedarbrook  facility's  main campus in September 1999. The lender of
the  other  loan  verbally  agreed to extend  the  maturity  date of its note to
December 1, 2001, pending completion of final loan documents. This loan was paid
off upon the sale of the Cane Creek facility in January 2000.

Cambridge Facility

The lessee of the  Cambridge  facility,  Nursing  Centers  of  America-Cambridge
(NCAC),  filed a voluntary  petition under Chapter 11 of the Federal  Bankruptcy
Code in February of 1992.  The  Registrant  commenced  litigation  against  NCAC
seeking full payment of future rentals under the lease of NCAC.

On August 1, 1996, the United States  Bankruptcy  Court approved the transfer of
the  operations of NCA Cambridge  Nursing Home to Cambridge LLC, a subsidiary of
the Registrant,  thereby releasing the operations of the Cambridge facility from
the  jurisdiction  of the  United  States  Bankruptcy  Court.  The  Registrant's
subsidiary now operates this property.

The Registrant had filed an administrative  claim with the trustee of the United
States  Bankruptcy  Court for unpaid lease  payments.  At December 31, 1999, the
Registrant  recorded a receivable  for $700,000  related to this  administrative
claim,  which was approved by the United States  Bankruptcy  Court. The $700,000
account  receivable was collected on March 1, 2000. It is unlikely that material
future disbursements will be made to the Registrant regarding this matter.

Trinity Hills, McCurdy, and Hearthstone Facilities

Except for the  Trinity  Hills  lessee,  the other  lessees are current in their
lease  obligations  to the  Registrant.  Trinity Hills is delinquent on two rent
participation  payments (though they have paid the minimum rental). In addition,
the Registrant  believes it likely that the lessee of the  Hearthstone  facility
will pay additional  rental amounts to the Registrant  during future years based
upon increased revenues at this facility.  However, there can be no assurance of
such increased revenue.  Based on the financial  statements of the lessees,  the
Hearthstone  and McCurdy  facilities are generating cash flow sufficient to fund
their lease  obligations,  but Trinity  Hills is, at this time,  not  generating
sufficient cash flow to fund its lease obligations from property operations.

                                       9

<PAGE>



On January 18, 2000 and February 2, 2000, the parent companies of the lessees of
the Hearthstone and Trinity Hills facilities, respectively, filed for Chapter 11
bankruptcy in the United States  Bankruptcy  Court for the District of Delaware.
At this time, it is uncertain if  bankruptcy  protection  would  disrupt  future
payments of lease obligations.  Unless renewed,  the Hearthstone  facility lease
expires on November 30, 2001 and the Trinity  Hills  facility  lease  expires on
June 30,  2000.  The  Hearthstone  and  Trinity  Hills  lessees  have  requested
extensions of their leases.  If the leases are not extended,  the  Registrant is
evaluating  its options for the  properties,  which  could  include  selling the
facilities, leasing the facilities to a third party or converting the facilities
to an alternative use.

Year 2000 Issue

The Registrant did not  experience  any business  interruptions  related to year
2000 issues.  The  Registrant is continuing to monitor its computer  systems and
equipment, and expects that the year 2000 issues will not have an adverse effect
on its business, financial condition or results of operations.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

The Registrant's  primary market risk exposure is from  fluctuations in interest
rates and the  effects of those  fluctuations  on the market  values of its cash
equivalent  short-term   investments.   These  short-term   investments  consist
primarily  of  overnight  investments  that  are not  significantly  exposed  to
interest  rate risk,  except to the extent that  changes in interest  rates will
ultimately affect the amount of interest income earned on these investments.

         PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings

The  Registrant was a defendant in a lawsuit  brought by AmHealth  (Evansville),
Inc.  in  the  Circuit  Court  of  Vanderburgh  County,  Indiana,  Cause  Number
82C01-9811-CP-0373  (Lawsuit), which concerned the McCurdy facility being leased
by AmHealth (Evansville), Inc. On December 10, 1999, the Registrant and AmHealth
(Evansville), Inc. entered into an Amendment of Lease whereby the parties agreed
to dismiss the lawsuit with  prejudice.  The  Stipulation and Order of Dismissal
with Prejudice was filed with the Court on January 21, 2000. The Registrant paid
no settlement  funds to AmHealth  (Evansville),  Inc.  and, in fact,  received a
letter of credit from the lessee as a safeguard to any future defaults.

Item 2.  Changes in Securities

         None.

Item 3.  Defaults Upon Senior Securities

         None.

Item 4.  Submission of Matters to a Vote of Security Holders

         None.

Item 5.  Other Information

         None.

                                       10
<PAGE>



Item 6.  Exhibits and Reports on Form 8-K

           (A)    Exhibit:

                  27.1     Financial Data Schedule

           (B)    Reports on Form 8-K

                  None.


                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  Registrant  has duly  caused  this report to be signed on its behalf by the
undersigned thereunto duly authorized.

HEALTHCARE PROPERTIES, L.P.

By:      CAPITAL REALTY GROUP SENIOR HOUSING, INC.
          General Partner

By:      /s/ Robert Lankford
         -------------------
         Robert Lankford
         President

Date:    August 14, 2000


                                       11