SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                              FORM 10QSB

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




For the quarter ended September 30, 1996     Commission File Number 0-12210



                 PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)



          Maryland                                 04-2801764
(State or other jurisdiction of         (I.R.S. Employer Identification No.)
incorporation or organization


One International Place, Boston, MA                             02110
(Address of principal executive offices)                     (Zip Code)


Registrant's telephone number, including area code:        (617) 330-8600


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

<PAGE>

                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                                 BALANCE SHEETS

                                    (NOTE 1)

                                     ASSETS

<TABLE>

                                                                                    September 30,              December 31,
                                                                                         1996                     1995
                                                                                     (Unaudited)                (Audited)


<S>                                                                                    <C>                       <C>      
Cash and cash equivalents                                                              $ 190,895                 $ 121,409
Due from Operating Partnership                                                             4,149                     1,652
                                                                                       ---------                 ---------

         Total Assets                                                                  $ 195,044                 $ 123,061
                                                                                       =========                 =========



                        LIABILITIES AND PARTNERS' CAPITAL


Loans and fees due affiliates                                                          $   -                     $  20,082

Partners' Capital                                                                        195,044                   102,979
                                                                                       ---------                 ---------

         Total Liabilities and Partners' Capital                                       $ 195,044                 $ 123,061
                                                                                       =========                 =========
</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>



                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                            STATEMENTS OF OPERATIONS

                              (UNAUDITED) (NOTE 1)


<TABLE>

                                                            For the Three Months                     For the Nine Months
                                                             Ended September 30,                     Ended September 30,
                                                         1996                1995                 1996               1995
                                                      -------------------------------------------------------------------


EXPENSES:
<S>                                                                                           <C>                 <C>     
  Administration fee                                      -                   -               $    -              $ 37,414
  Other expenses                                          -                   -                     739                856
                                                      --------------------------------------------------------------------
                                                          -                   -                     739             38,270
                                                      --------------------------------------------------------------------
Net Loss before
  other income                                            -                   -                    (739)           (38,270)


OTHER INCOME
  Distribution from
    operating partnership                                 -                   -                  92,804               -
  Gain on Debt Extinguishm                                -                   -                    -               958,663
                                                     ---------------------------------------------------------------------

Net Income                                                -                   -               $  92,065          $ 920,393
                                                     =====================================================================

Net Income per unit
  of limited partnership
  interest outstanding                                    -                   -               $     154          $   1,544
                                                     =====================================================================
</TABLE>


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>




                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                             STATEMENTS OF CASH FLOW

                              (UNAUDITED) (NOTE 1)

<TABLE>

                                                                                                 For the Nine Months Ended
                                                                                                       September 30,
                                                                                                 1996                1995


<S>                                                                                           <C>                <C>      
Net Income                                                                                    $  92,065          $ 920,393
Adjustments to reconcile net income
  to net cash provided by (used in)
  operating activities:
         Gain on extinguishment of debt                                                            -              (958,663)
                                                                                              ----------------------------

Net Cash provided by (used in)
         Operating activities                                                                    92,065            (38,270)
                                                                                              ----------------------------

Cash flows from Investing Activities:

         Increase in due from Operating Partnership                                              (2,497)            (1,653)
                                                                                              ----------------------------

Net Cash used by Investing Activities                                                            (2,497)            (1,653)
                                                                                              ----------------------------

Cash flows from Financing Activities:

         Proceeds from loans from affiliates                                                       -                58,352
         Payment of loans from affiliates                                                       (20,082)               -
                                                                                              --------------------------

Net Cash provided by (used by
  Financing Activities                                                                          (20,082)            58,352
                                                                                              ----------------------------

Net increase in cash                                                                             69,486             18,429
                                                                                              ----------------------------

Cash, beginning of period                                                                       121,409                  0
                                                                                              ----------------------------

Cash, end of period                                                                           $ 190,895          $  18,429
                                                                                              ============================
</TABLE>



The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>



                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
              FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995

                              (UNAUDITED) (NOTE 1)

<TABLE>



                                                                     Linnaeus-
                                                                     Phoenix
                                               Winthrop              Associates           Investor              Total
                                               Financial             Limited              Limited               Partners'
                                               Co., Inc.             Partnership          Partners              Capital


Balance,
<S>                                            <C>                   <C>                  <C>                   <C>      
  December 31, 1995.........................   $(271,513)            $(573,422)           $  947,914            $ 102,979

Net Income..................................         460                   460                91,145               92,065
                                               ---------             ---------            ----------            ---------

Balance,
  September 30, 1996........................   $(271,053)            $(572,962)           $1,039,059            $ 195,044
                                               =========             =========            ==========            =========



Balance,
  December 31, 1994.........................   $(276,630)            $(578,539)           $  (65,224)           $(920,393)

Net Loss....................................       4,602                 4,602               911,189              920,393
                                               ---------             ---------            ----------            ---------

Balance,
  September 30, 1995........................   $(272,028)            $(573,937)           $  845,965            $       0
                                               =========             =========            ==========            =========
</TABLE>






The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

<PAGE>



                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                          NOTES TO FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1996
                                   (UNAUDITED)



1.        ACCOUNTING AND FINANCIAL REPORTING POLICIES

          The condensed financial  statements included herein have been prepared
          by  the  Partnership,   without  audit,  pursuant  to  the  rules  and
          regulations   of  the   Securities   and  Exchange   Commission.   The
          Partnership's  accounting  and  financial  reporting  policies  are in
          conformity with generally accepted  accounting  principles and include
          all  adjustments in interim  periods  considered  necessary for a fair
          presentation  of the results of operations.  Certain  information  and
          footnote   disclosures   normally  included  in  financial  statements
          prepared in accordance with generally accepted  accounting  principles
          have been condensed or omitted pursuant to such rules and regulations.
          It is suggested that these condensed  financial  statements be read in
          conjunction  with  the  financial  statements  and the  notes  thereto
          included in the Registrant's latest annual report on Form 10-K.

          The  accompanying   financial  statements  reflect  the  Partnership's
          results of operations  for an interim  period and are not  necessarily
          indicative of the results of operations  for the year ending  December
          31, 1996.


2.        INVESTMENT IN OPERATING PARTNERSHIP

          The Partnership  accounts for its investment in  Presidential  Towers,
          Ltd.  (the  "Operating   Partnership")  using  the  equity  method  of
          accounting.  Under  the  equity  method  of  accounting,  the  initial
          investment  is  recorded  at  cost,  increased  or  decreased  by  the
          Partnership's   share  of  income  or   losses,   and   decreased   by
          distributions.  Equity in the loss of the Operating  Partnership is no
          longer recognized once the investment balance reaches zero.

          The loss from the  Operating  Partnership,  not  recognized  since the
          investment   balance   reached  zero,   will  be  offset  against  the
          Partnership's share of future income from the Operating Partnership.


3.        TAXABLE INCOME (LOSS)

          The  Partnership's  taxable  loss for 1996 is  expected to differ from
          that for  financial  reporting  purposes  primarily  due to accounting
          differences  in the  recognition  of  construction  period  costs  and
          depreciation incurred by the Operating Partnership.

<PAGE>




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



This item should be read in conjunction with the financial  statements and other
items contained elsewhere in the report.


LIQUIDITY AND CAPITAL RESOURCES

The Partnership's primary source of liquidity is distributions from Presidential
Towers Ltd., an Illinois limited partnership (the "Operating Partnership").  The
Partnership is responsible for paying various  administrative  costs  associated
with monitoring the Partnership's  investment in the Operating Partnership,  and
paying various professional fees associated with the affairs of the Partnership.

During the nine months ended September 30, 1996, the Operating  Partnership made
a  distribution  of $92,804  to the  Partnership.  Pursuant  to the terms of the
Regulatory  Agreement  governing  the  Operating   Partnership,   the  Operating
Partnership is permitted to make semi-annual distributions from surplus cash. In
addition, the Partnership is entitled to receive an annual distribution from the
Operating  Partnership as a reimbursement  of the  Partnership's  administrative
expenses and  professional  fees up to an annual maximum of $30,000.  During the
three  months  ended  September  30,  1996,  the  Partnership  received  such  a
distribution  in the  amount  of  $23,183.  Any  future  distributions  from the
Operating  Partnership  are  subject to the terms of the  Regulatory  Agreement.
Based on information provided to the Partnership from the Operating Partnership,
the  Partnership   anticipates  receiving  a  distribution  from  the  Operating
Partnership of approximately $75,000 during the second half of 1996.

As a result of the  restrictions  set forth in the  Regulatory  Agreement on the
ability of the Operating Partnership to make distributions, the preferred return
required to be paid to TKI  Presidential  Partners and the Department of Housing
and  Urban  Development  from a sale of the  property,  it is  anticipated  that
limited  partners will not receive a return of their original  investment in the
Partnership.

The  Partnership's  liquidity  based on cash and cash  equivalents  increased to
$190,894 at September  30, 1996 as compared to $121,409 at December 31, 1995 due
to the distributions from the Operating Partnership. These were partially offset
by the  reimbursement  of  loans  from an  affiliate  totalling  $20,082.  It is
expected that so long as the Partnership's administrative expenses do not exceed
$30,000 in any year, the  Partnership's  cash and cash  equivalents  will remain
relatively constant until the Operating Partnership is liquidated.

RESULTS OF OPERATIONS

Operating  results  improved by $5,781 for the nine months ended  September  30,
1996 as compared to the nine months ended  September  30, 1995 due to a decrease
in  administrative  expenses of $6,164 which was partially offset by an increase
in other expenses.







                           PART II - OTHER INFORMATION


Item 6. EXHIBITS AND REPORTS ON FORM 8-K


A.        EXHIBITS

          Exhibit 27 - Financial Data Schedule


B.        REPORTS ON FORM 8-K

          No Report on Form 8-K was required to be filed during the period.





                                    SIGNATURE


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.


                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
                                  (Partnership)


                        By: Winthrop Financial Co., Inc.
                                A General Partner


                        By: /s/ Edward V. Williams
                                Edward V. Williams
                                Chief Financial Officer


                        By: /s/ Michael Ashner
                                Michael Ashner
                                Chief Executive Officer



Dated:  November 14, 1996


<PAGE>