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 March 31, 1998

                                       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 oganization)                            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.
                             (A Limited Partnership)

                                 BALANCE SHEETS
                                 --------------

<S>                                                                 <C>                      <C> 


                                                                      March 31, 1998         December 31, 1997
                                                                      --------------         -----------------
                                                                       (Unaudited)               (Audited)
                                                                       -----------               ---------
                                     ASSETS
                                     ------

Cash and cash equivalents                                           $     11,130,809         $     10,722,118

Accounts receivable, less allowance for doubtful
  accounts of $316,042 in 1998 and $301,042 in 1997                          728,597                  800,029

Prepaid Expenses and other                                                    24,680                   50,221

Property and improvements, net                                            20,526,552               20,823,913

Deferred charges, less accumulated amortization
  of $900,243 in 1998 and $876,760 in 1997                                   388,652                  405,572
                                                                    ----------------         ----------------


                                                                    $     32,799,290         $     32,801,853
                                                                    ================         ================



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

 Accounts payable and accrued expenses                              $        911,895         $        818,252

Operating facility accounts payable                                           82,895                  114,211

Mortgage loans payable                                                     6,539,798                6,677,431
                                                                    ----------------         ----------------

                                                                           7,534,588                7,609,894
                                                                    ----------------         ----------------

Partnership equity:
  Limited partners (4,151,535 and 4,172,457 units outstanding             25,225,749               25,156,971
       in 1998 and 1997, respectively)
  General partner                                                             38,953                   34,988
                                                                    ----------------         ----------------
                                                                          25,264,702               25,191,959
                                                                    ----------------         ----------------

                                                                    $     32,799,290         $     32,801,853
                                                                    ================         ================

</TABLE>

                       See notes to financial statements
                                       1
<PAGE>

<TABLE>
<CAPTION>

                           HEALTHCARE PROPERTIES, L.P.
                             (A Limited Partnership)

                             STATEMENT OF OPERATIONS
                             -----------------------
                         
<S>                                                           <C>                           <C>    <C>    <C>    <C>    <C>

                                                            Three months ended,          Three months ended,
                                                              March 31, 1998               March 31, 1997
                                                              --------------               --------------

Revenues:
   Rental                                                     $     1,067,501               $     1,098,224
   Net patient services                                               984,920                     1,206,148
                                                              ---------------               ---------------
                                                                    2,052,421                     2,304,372
                                                              ---------------               ---------------


Expenses:
   Facility operating expenses                                      1,108,357                     1,134,952
   Depreciation                                                       325,364                       340,960
   Lease default expenses                                                   0                         4,650
   Administrative and other                                           329,923                       340,070
   Bad debts                                                           15,000                        13,217
                                                              ---------------               ---------------
                                                                    1,778,644                     1,833,849
                                                              ---------------               ---------------
       Income from operations                                         273,777                       470,523
                                                              ---------------               ---------------


Other income (expenses):
   Interest income                                                    113,444                        77,749
   Interest expenses                                                 (162,967)                     (172,601)
   Amortization                                                       (25,982)                      (26,851)
                                                              ---------------               ---------------
                                                                      (75,505)                     (121,703)
                                                              ---------------               ---------------


         Net income                                           $       198,272               $       348,820
                                                              ===============               ===============

NET EARNINGS PER UNIT                                         $           .05               $           .08
                                                              ===============               ===============

WEIGHTED AVERAGE
   NUMBER OF UNITS                                                  4,164,156                     4,172,457
                                                              ===============               ===============

</TABLE>

                       See notes to financial statements
                                       2
<PAGE>


<TABLE>
<CAPTION>





                           HEALTHCARE PROPERTIES, L.P.
                             (A Limited Partnership)

                        STATEMENTS OF PARTNERSHIP EQUITY
                        --------------------------------

<S>                                         <C>                     <C> 

                                               Limited                  General
                                               Partners                Partners                   Total
                                               --------                --------                   -----

Allocation of Net Earnings
   (Loss)                                          98 %                     2%                       100%
                                                   ====                     ==                       ====

EQUITY at
   December 31, 1997                        $   25,156,971          $     34,988             $   25,191,959

Net Income                                         194,307                 3,965                    198,272

Repurchased Limited Partner Units                 (125,529)                    -                   (125,529)
                                            --------------          ------------             --------------

EQUITY at
   March 31, 1998                           $   25,225,749          $     38,953             $   25,264,702
                                            ==============          ============             ==============
</TABLE>

                       See notes to financial statements
                                       3

<PAGE>

<TABLE>
<CAPTION>


                           HEALTHCARE PROPERTIES, L.P.
                             (A Limited Partnership)

                            STATEMENTS OF CASH FLOWS
                            ------------------------

<S>                                                                   <C>                        <C> 
                                                                   Three months ended         Three months ended
                                                                     March 31, 1998             March 31, 1997
                                                                     --------------             --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net Income                                                         $     198,272              $     348,820
   Adjustments to reconcile net loss to
     net cash provided by operating activities:
         Bad debts                                                           15,000                     13,217
         Depreciation and amortization                                      351,346                    367,811
         Changes in assets and liabilities:
             Accounts receivable                                             56,432                   (151,640)
             Prepaid expenses                                                25,541                     44,677
             Deferred charges                                                (9,062)                         0
             Accounts payable &
               accrued expenses                                              62,327                   (228,363)
                                                                      -------------              -------------

                    NET CASH PROVIDED BY
                    OPERATING ACTIVITIES                                    699,856                    394,522
                                                                      -------------              -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of property and improvement                                     (28,003)                   (29,250)
                                                                      -------------              -------------
                    NET CASH USED IN
                    INVESTING  ACTIVITIES                                   (28,003)                   (29,250)
                                                                      -------------              -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Payments on mortgage loans payable                                  (137,633)                  (129,521)
       Repurchased limited partner units                                   (125,529)                         0
                                                                      -------------              -------------
                    NET CASH USED IN
                    FINANCING ACTIVITIES                                   (263,162)                  (129,521)
                                                                      -------------              -------------

NET INCREASE IN CASH
AND CASH EQUIVALENTS                                                        408,691                    235,751

CASH AND CASH EQUIVALENTS
   Beginning of Period                                                   10,722,118                  8,995,455
                                                                      -------------              -------------

CASH AND CASH EQUIVALENTS
   End of Period                                                      $  11,130,809              $   9,231,206
                                                                      =============              =============

</TABLE>

                       See notes to financial statements
                                       4

<PAGE>

                           HEALTHCARE PROPERTIES, L.P.
                             (A Limited Partnership)

                          NOTE TO FINANCIAL STATEMENTS
                          ----------------------------
                        Three months ended March 31, 1998
                                   (Unaudited)

A.   ACCOUNTING POLICIES
     -------------------

     The  accompanying   unaudited  condensed  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, 1998. The 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, 1997.

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

     Effective July 1, 1993, Capital Realty Group Senior Housing, Inc. ("CRGSH")
replaced  Jacques-Miller,  Inc.  and  Jacques and  Associates,  L.P. as the sole
General Partner of the Registrant.

     Personnel  working at the Property sites and certain home office  personnel
who perform  services for the Registrant are employees of Capital Senior Living,
Inc.  (CSL),  an  affiliate  of CRGSH.  The  Registrant  reimburses  CSL for the
salaries,  related  benefits,  and overhead  reimbursements of such personnel as
reflected in the accompanying financial statements. Reimbursements and fees paid
to the general partner and affiliates of the general partner are as follows:

<TABLE>
<CAPTION>

                                                       Three months ended         Three months ended
                                                         March 31, 1998             March 31, 1997
<S>                                                       <C>                        <C>

Salary and benefit reimbursements                         $      759,247             $      787,281
Administrative reimbursements                                     29,529                     50,285
Asset management fees                                            117,000                    103,433
Property management fees                                          78,674                     84,285
General partner management fees                                   21,914                     23,023
                                                          --------------             --------------
                                                          $    1,006,364             $    1,048,307
                                                          --------------             --------------
</TABLE>

Currently,  Capital Senior Living Properties, Inc., an affiliate of CRGSH, holds
approximately 56% 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.  Capital
Senior Living Corporation also holds an option to purchase the stock of CRGSH at
fair market value.

C.   VALUATION OF RENTAL PROPERTY
     ----------------------------

Generally accepted  accounting  principles require that the Registrant  evaluate
whether it is probable that the estimated  undiscounted future cash flows of its
properties, taken individually,  will be less than the respective net book value


                                       5
<PAGE>

of the properties. If such a shortfall exists and is material, then a write-down
is warranted.  The Registrant  performs such  evaluations on an on-going  basis.
During  the  three  months  ended  March  31,  1998,  based on the  Registrant's
evaluation of the properties, the Registrant did not believe that any additional
write-down was warranted.

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 March 31, 1998, four of
the  original  twelve  properties  had  either  been sold or deeded  back to the
lender,  leaving the Registrant  with four  properties  secured by debt and four
properties  unleveraged.  The expiration  date of the initial term of the leases
are indicated below:

                               Property             Lease Expiration Date (Year)
                               --------             ----------------------------
                              Cedarbrook                         2000
                              Cane Creek                         2001
                              Crenshaw Creek                     2001
                              Sandy Brook                        2001
                              Cambridge                           N/A
                              Trinity Hills                      2000
                              Hearthstone                        2000
                              McCurdy                            2001

     Potential  sources  of  liquidity  for  Registrant  include  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 including sale to one or more of the lessees.

     As of March 31, 1998, Registrant had cash and cash equivalents  aggregating
$11,130,809.  The cash and cash equivalents will be used for working capital and
emergency reserves.

     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.  To the
extent 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.  As a consequence  of prior  defaults,
Registrant  suspended cash  distributions  on July 1, 1991,  pending  successful
resolution of the various problems within its portfolio.  Due to the uncertainty
of the  timing and  conditions  under  which the  Liquidity  Reserve  (which was

                                       6
<PAGE>

suspended in March of 1991) might be reactivated, on August 15, 1991, Registrant
ceased accepting additional  liquidation  requests. A $250,000 and $325,000 cash
distribution  was made in June 1993 and July  1997,  respectively.  Future  cash
distributions will be dependent upon improved  operational income and successful
refinancing on certain Registrant  mortgages.  The Units are not publicly traded
and as a result the liquidity of each Limited Partner's individual investment is
limited.

The General Partner  believes it is in the best interest of the Partnership that
once optimization of the asset value of the Partnership is reached, these assets
be converted to cash. An appraisal has been  conducted on this  Partnership  and
based on this appraisal, we believe we are close to optimizing the value of this
Partnership at approximately $24 million. Based on the appraisal, as well as the
General  Partner's  duty to further the best interests of the  Partnership,  the
General  Partner is  currently  evaluating  options,  which  could  include  the
potential sale or merger of the assets of the Partnership.

Results of Operations
---------------------

                Discussion of Three Months Ending March 31, 1998
                ------------------------------------------------

     Rental  revenues  for the three  months  ended  March 31,  1998,  decreased
$30,723 from the comparable  three months ended March 31, 1997, due to decreased
revenue participation from leased facilities. Net patient services for the three
months  ended March 31,  1998,  decreased  $221,228  from the three months ended
March 31, 1997, and was primarily due to a $139,000 Medicare reserve accrual and
decreased  ancillary revenues from the Cambridge  facility.  Interest income for
the three  months ended March 31, 1998  increased  $35,695 from the three months
ended March 31, 1997 primarily due to increasing cash available for investment.

     Facility  operating  expenses  for the three  months  ended March 31, 1998,
decreased by $26,595  from the  comparable  1997 period and is primarily  due to
decreased  therapy costs at the Cambridge  facility.  Depreciation for the three
months ended March 31, 1998,  decreased $15,596 from the comparable 1997 period.
Lease default expense decreased $4,650 for the three months ended March 31, 1998
from the  comparable  1997 period due to  decreasing  legal fees incurred on the
resolution of defaulted leases.  Administrative expenses,  including fees to the
General Partner,  decreased $10,147 for the three months ended March 31, 1998 in
comparison   to  1997  and  is  primarily   due  to   decreased   administrative
reimbursements  and asset management fees. Bad debt expense for the three months
ended March 31, 1998 increased  $1,783 from the comparable 1997 period primarily
due to  increasing  bad debt  provisions  at the  Cambridge  facility.  Interest
expense and  amortization for the three months ended March 31, 1998 decreased by
$9,634 and $869, respectively, from the comparable 1997 period.

     Cash and cash equivalents as of March 31, 1998 increased  $408,691 over the
balance at December 31, 1997.  Increased  cash for the three months ending March
31, 1998 in comparison to 1997 is primarily due to improved operating cash flow.
Net accounts  receivable  of $728,597 at March 31, 1998  reflected a decrease of
$71,432 over 1997 year-end  balances.  Accounts payable,  accrued expenses,  and
facility  accounts payable  balances  increased $ 62,327 at March 31, 1998, from
December 31, 1997, and is primarily due to a Medicare  reserve  provision at the
Cambridge facility.

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

     Cedarbrook, Cane Creek, Crenshaw Creek and Sandy Brook facilities. Rebound,
Inc. (a subsidiary  of  HealthSouth  Corporation)  leases the  Cedarbrook,  Cane
Creek, Crenshaw Creek and Sandy Brook properties pursuant to a master lease with
the Registrant.

     Due to low occupancy of the Sandybrook facility,  it was closed in 1994 and
at this  time the  lessee  has not  provided  any  information  on when it might
reopen. Rental payments in March and April 1995 were discontinued by HealthSouth
causing an interruption in the master lease. Registrant met with HealthSouth and
those payments were subsequently made in the second quarter of 1995.  Subsequent

                                       7
<PAGE>

to that time period,  all payments have been made on a timely basis. In February
1997,  the  Registrant  was  notified  by  HealthSouth  of  the  closing  of the
Cedarbrook  facility  due to the low  occupancy.  At this time,  the  Registrant
cannot  determine when this facility might reopen.  HealthSouth has continued to
make lease payments on a timely basis.

     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.  One of the lenders agreed to extend the maturity date
of its note to December 1, 2001, pending completion of final loan documents.  On
March 21, 1997,  the other  lender  agreed not to exercise its call rights until
June 30, 1997.  The  Partnership is currently  negotiating  the extension of the
note until December 1, 2001.

     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. 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 facility from the
jurisdiction of the United States Bankruptcy Court.  Registrant's subsidiary now
operates this property.

     Trinity Hills, McCurdy, and Hearthstone facilities.  The Registrant's other
facility  lessees are all current in their lease  obligations to the Registrant.
In addition,  the  Registrant  believes it likely that two of these lessees will
pay additional  rental amounts to the Registrant  during future years based upon
increased  revenues at those facilities.  However,  there can be no assurance of
such increased  revenue.  Two of these  facilities  appear to be 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.  However,  the lessee  continues to fund the deficit lease
cash flow.

Year 2000 Issue
---------------

     The Partnership  has developed a plan to modify its information  technology
to be ready for the year 2000. The Partnership  relies upon PC-based systems and
does not expect to incur  material  costs to transition  to Year 2000  compliant
systems in its internal operations. The Partnership does not expect this project
to have a significant  effect on operations.  The  Partnership  will continue to
implement  systems  and all new  investments  are  expected to be with Year 2000
compliant software.


                                       8

<PAGE>


         PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings
         -----------------

         Registrant  has been  engaged  in  litigation  in an attempt to recover
damages from  defaulting  lessees and their  guarantors.  Such  actions  involve
claims  against a prior  operator of the  Diablo/Tamarack  facility.  In certain
cases  counterclaims  against  Registrant have been either  threatened or filed.
Registrant  does not believe any materially  adverse  judgements are likely from
these counter claims.

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.

Item 6.  Exhibits and Reports on Form 8-K
         --------------------------------

         None.


                                       9

<PAGE>


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/ Keith Johannessen
        ------------------------------------------
        Keith Johannessen
        President

Date:   May 13, 1998



                                       10