SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(Mark One)

  X  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
-----
     EXCHANGE ACT OF 1934.

For the quarterly period ended September 30, 1996
                               ------------------ 
                                      OR

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

For the transition period from              to             
                               ------------    ------------
Commission file number 0-13349
                       -------

                         BALCOR REALTY INVESTORS-84         
          ------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Illinois                                      36-3215399    
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

2355 Waukegan Road
Bannockburn, Illinois                                     60015            
----------------------------------------            ------------------- 
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                   -------------- 

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>
                          BALCOR REALTY INVESTORS-84 
                       (An Illinois Limited Partnership)

                                BALANCE SHEETS
                   September 30, 1996 and December 31, 1995
                                  (Unaudited)

                                    ASSETS

                                                    1996             1995
                                             ---------------  ---------------
Cash and cash equivalents                    $   14,198,339   $      394,701
Escrow deposits                                     931,208        1,928,712
Accounts and accrued interest receivable            634,941          663,602
Prepaid expenses                                    241,208          316,982
Deferred expenses, net of accumulated
  amortization of $704,705 in 1996 
  and $1,167,664 in 1995                            287,051        1,070,357
                                             ---------------  ---------------
                                                 16,292,747        4,374,354
                                             ---------------  ---------------
Investment in real estate:
  Land                                            7,435,911       17,612,218
  Buildings and improvements                     51,304,081      118,352,136
                                             ---------------  ---------------
                                                 58,739,992      135,964,354
  Less accumulated depreciation                  26,810,380       55,896,633
                                             ---------------  ---------------
Investment in real estate, net of
  accumulated depreciation                       31,929,612       80,067,721
                                             ---------------  ---------------
                                             $   48,222,359   $   84,442,075
                                             ===============  ===============
<PAGE>
                          BALCOR REALTY INVESTORS-84 
                       (An Illinois Limited Partnership)

                                BALANCE SHEETS
                   September 30, 1996 and December 31, 1995
                                  (Unaudited)
                                  (Continued)

                  LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Loans payable - affiliate                                     $    6,623,202
Accounts payable                             $      254,460          255,150
Due to affiliates                                   127,765          122,609
Accrued liabilities, principally
  real estate taxes                                 570,197        1,133,571
Security deposits                                   276,901          557,128
Mortgage notes payable                           42,529,829      101,440,696
Mortgage notes payable - affiliate                  336,872        1,852,611
                                             ---------------  ---------------
    Total liabilities                            44,096,024      111,984,967
                                             ---------------  ---------------
Limited Partners' capital (deficit)
  (140,000 Interests issued 
  and outstanding)                                5,212,989      (26,027,546)

General Partner's deficit                        (1,086,654)      (1,515,346)
                                             ---------------  ---------------
    Total partners' capital (deficit)             4,126,335      (27,542,892)
                                             ---------------  ---------------
                                             $   48,222,359   $   84,442,075
                                             ===============  ===============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)

                                                    1996             1995
                                             ---------------  ---------------
Income:
  Rental and service                         $   16,137,962   $   21,110,659
  Interest on short-term investments                176,578          112,715
                                             ---------------  ---------------
    Total income                                 16,314,540       21,223,374
                                             ---------------  ---------------
Expenses:
  Interest on mortgage notes payable              4,799,068        6,707,588
  Interest on short-term loans from
    an affiliate                                     49,045          460,690
  Depreciation                                    2,195,723        2,914,461
  Amortization of deferred expenses                 144,485          219,772
  Property operating                              6,575,606        7,740,107
  Real estate taxes                               1,263,699        1,594,960
  Property management fees                          822,026        1,053,668
  Administrative                                    601,424          726,001
                                             ---------------  ---------------
    Total expenses                               16,451,076       21,417,247
                                             ---------------  ---------------

Loss before gains on sales of properties,
  affiliate's participation in joint
  venture and extraordiary items                   (136,536)        (193,873)
Gains on sales of properties                     42,257,478        4,080,592
Affiliate's participation in income
  from joint venture                                                (755,586)
                                             ---------------  ---------------
Income before extraordinary items                42,120,942        3,131,133
                                             ---------------  ---------------
Extraordinary items:
  Gain on forgiveness of debt                     1,708,945           90,359
  Debt extinguishment expense                      (960,660)
                                             ---------------  ---------------
  Total extraordinary items                         748,285           90,359
                                             ---------------  ---------------
Net income                                   $   42,869,227   $    3,221,492
                                             ===============  ===============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)
                                  (Continued)


                                                    1996             1995
                                             ---------------  ---------------
Income before extraordinary items
  allocated to General Partner               $      421,209   $       31,311
                                             ===============  ===============
Income before extraordinary items
  allocated to Limited Partners              $   41,699,733   $    3,099,822
                                             ===============  ===============
Income before extraordinary items
  per Limited Partnership Interest
  (140,000 issued and outstanding)           $       297.86   $        22.14
                                             ===============  ===============
Extraordinary items allocated
  to General Partner                         $        7,483   $          904
                                             ===============  ===============
Extraordinary items allocated
  to Limited Partners                        $      740,802   $       89,455
                                             ===============  ===============
Extraordinary items per Limited
  Partnership Interest (140,000
  issued and outstanding)                    $         5.29   $         0.64
                                             ===============  ===============
Net income allocated to General Partner      $      428,692   $       32,215
                                             ===============  ===============
Net income allocated to Limited Partners     $   42,440,535   $    3,189,277
                                             ===============  ===============
Net income per Limited Partnership 
  Interest (140,000 issued and outstanding)  $       303.15   $        22.78
                                             ===============  ===============
Distribution to Limited Partners             $   11,200,000             None
                                             ===============  ===============
Distribution per Limited 
  Partnership Interest                       $        80.00             None
                                             ===============  ===============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
              for the quarters ended September 30, 1996 and 1995
                                  (Unaudited)

                                                    1996             1995
                                             ---------------  ---------------
Income:
  Rental and service                         $    3,611,090   $    7,004,719
  Interest on short-term investments                118,452           28,705
                                             ---------------  ---------------
    Total income                                  3,729,542        7,033,424
                                             ---------------  ---------------
Expenses:
  Interest on mortgage notes payable              1,071,819        2,184,870
  Interest on short-term loans from
    an affiliate                                                     128,946
  Depreciation                                      493,967          949,472
  Amortization of deferred expenses                  34,667           64,831
  Property operating                              1,776,531        2,910,236
  Real estate taxes                                 281,881          555,169
  Property management fees                          193,289          357,900
  Administrative                                    168,875          224,130
                                             ---------------  ---------------
    Total expenses                                4,021,029        7,375,554
                                             ---------------  ---------------

Loss before gains on sales of properties
  and extraordinary items                          (291,487)        (342,130)

Gains on sales of properties                     16,371,626        2,265,622
                                             ---------------  ---------------
Income before extraordinary items                16,080,139        1,923,492
                                             ---------------  ---------------
Extraordinary items:
  Gain on forgiveness of debt                     1,708,945
  Debt extinguishment expense                      (534,366)
                                             ---------------
  Total extraordinary items                       1,174,579
                                             ---------------  ---------------
Net income                                   $   17,254,718   $    1,923,492
                                             ===============  ===============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
              for the quarters ended September 30, 1996 and 1995
                                  (Unaudited)
                                  (Continued)

                                                    1996             1995
                                             ---------------  ---------------
Income before extraordinary items
  allocated to General Partner               $      160,801   $       19,235
                                             ===============  ===============
Income before extraordinary items
  allocated to Limited Partners              $   15,919,338   $    1,904,257
                                             ===============  ===============
Income before extraordinary items
  per Limited Partnership Interest
  (140,000 issued and outstanding)           $       113.71   $        13.60
                                             ===============  ===============
Extraordinary items allocated
  to General Partner                         $       11,746             None
                                             ===============  ===============
Extraordinary items allocated
  to Limited Partners                        $    1,162,833             None
                                             ===============  ===============
Extraordinary items per Limited
  Partnership Interest (140,000
  issued and outstanding)                    $         8.31             None
                                             ===============  ===============
Net income allocated to General Partner      $      172,547   $       19,235
                                             ===============  ===============
Net income allocated to Limited Partners     $   17,082,171   $    1,904,257
                                             ===============  ===============
Net income per Limited Partnership 
  Interest (140,000 issued and outstanding)  $       122.02   $        13.60
                                             ===============  ===============
Distribution to Limited Partners             $   11,200,000             None
                                             ===============  ===============
Distribution per Limited
  Partnership Interest                       $        80.00             None
                                             ===============  ===============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)

                                                    1996             1995
                                             ---------------  ---------------
Operating activities:
  Net income                                 $   42,869,227   $    3,221,492
  Adjustments to reconcile net income to net
    cash provided by operating activities:
      Extraordinary items:
        Gain on forgiveness of debt              (1,708,945)         (90,359)
        Debt extinguishment expense                 960,660
      Gains on sales of properties              (42,257,478)      (4,080,592)
      Affiliate's participation in income 
        from joint venture                                           755,586
      Depreciation of properties                  2,195,723        2,914,461
      Amortization of deferred expenses             144,485          219,771
      Net change in:
        Escrow deposits                             976,433           83,472
        Accounts and accrued interest
          receivable                                 28,661          312,084
        Prepaid expenses                             75,774         (488,715)
        Accounts payable                             37,577          (55,693)
        Due to affiliates                             5,156         (107,889)
        Accrued liabilities                        (546,089)         188,348
        Security deposits                          (280,227)         (22,711)
                                             ---------------  ---------------
  Net cash provided by operating activities       2,500,957        2,849,255
                                             ---------------  ---------------

Investing activities:
  Proceeds from redemption of 
    restricted investment                                            700,000
  Proceeds from sales of properties              63,377,646       12,390,000
  Payment of selling costs                       (1,486,536)        (610,180)
                                             ---------------  ---------------
  Net cash provided by investing activities      61,891,110       12,479,820   
                                             ---------------  ---------------
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
             for the nine months ended September 30, 1996 and 1995
                                  (Unaudited)
                                  (Continued)

Financing activities:
  Distribution to Limited Partners              (11,200,000)
  Distributions to joint venture 
    partner - affiliate                                             (445,589)
  Repayment of loans payable - affiliate         (6,623,202)      (5,210,000)
  Proceeds from issuance of mortgage note
    payable - affiliate                             137,654
  Repayment of mortgage notes payable           (31,761,649)      (9,833,903)
  Principal payments on mortgage 
    notes payable                                  (840,464)      (1,084,835)
  Principal payments on mortgage                
    notes payable - affiliate                                       (114,600)
  Release of financing escrows                       21,071          416,948
  Payment of prepayment penalties                  (321,839)
                                             ---------------  ---------------
  Net cash used in financing activities         (50,588,429)     (16,271,979)
                                             ---------------  ---------------

Net change in cash and cash equivalents          13,803,638         (942,904)
Cash and cash equivalents at beginning
  of year                                           394,701        1,311,019
                                             ---------------  ---------------
Cash and cash equivalents at end of period   $   14,198,339   $      368,115
                                             ===============  ===============


The accompanying notes are an integral part of the financial statements.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS

1. Accounting Policy:

In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 1996, and all such adjustments are of a normal and
recurring nature.

2. Interest Expense:

During the nine months ended September 30, 1996 and 1995, the Partnership
incurred and paid interest expense on mortgage notes payable to non-affiliates
of $4,666,970 and $6,567,196, respectively.

3. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
nine months and quarter ended September 30, 1996 are:

                                           Paid
                                   -----------------------
                                    Nine Months    Quarter      Payable
                                    ------------  ---------    ----------     

   Reimbursement of expenses to
     the General Partner, at cost:   $ 132,300    $ 21,480     $ 127,765

 
During the quarter ended March 31, 1996, the Partnership repaid the entire
balance of the General Partner loan, which had an outstanding balance of
$6,623,202 at December 31, 1995, primarily with proceeds from the sale of
Chimney Ridge Apartments. (See Note 4 of Notes to Financial Statements for
additional information.) During the nine months ended September 30, 1996 and
1995, the Partnership incurred interest expense of $49,045 and $460,690 and
paid interest expense of $119,165 and $490,948 on these loans, respectively.
Interest expense was computed at the American Express Company cost of funds
rate plus a spread to cover administrative costs. The interest rate was 5.85%
at the date of the loan repayment. 

As of September 30, 1996, the Partnership had a $336,872 junior loan
outstanding from The Balcor Company ("TBC"), an affiliate of the General
Partner, relating to the Woodland Hills Apartments with accrued interest
payable on this loan totaling $2,948, which is included in accrued liabilities
on the balance sheet. In September 1996, the junior loan outstanding from TBC
relating to Chestnut Ridge - Phase II Apartments was increased by $137,654 in
order to provide the minimum net proceeds required from the sale of this
property. Subsequently, this $1,653,393 loan, along with accrued interest of
$55,552 was forgiven in connection with the sale. See Notes 4 and 5 of Notes to
Financial Statements for additional information. During the nine months ended
September 30, 1996 and 1995, the Partnership incurred interest expense on these
affiliate loans of $132,098 and $140,392 and paid interest expense of $111,865
and $155,554, respectively.
<PAGE>
4. Property Sales:

(a) In February 1996, the Partnership sold the Chimney Ridge Apartments in an
all cash sale for $13,650,000. The purchaser of the Chimney Ridge Apartments
took title subject to the existing first mortgage loan in the amount of
$7,242,788. From the proceeds of the sale, the Partnership paid $609,642 in
selling costs. The basis of the property was $4,427,342, which is net of
accumulated depreciation of $3,137,301. For financial statement purposes, the
Partnership recognized a gain of $8,613,016 from the sale of this property.

(b) In May 1996, the Partnership sold the Antlers Apartments in an all cash
sale for $15,000,000. The purchaser of the Antlers Apartments took title
subject to the existing first mortgage loan in the amount of $10,108,860. From
the proceeds of the sale, the Partnership paid $86,456 in selling costs. The
basis of the property was $8,395,037, which is net of accumulated depreciation
of $5,118,659. For financial statement purposes, the Partnership recognized a
gain of $6,518,507 from the sale of this property.

(c) In June 1996, the Partnership sold the Canyon Sands Apartments in an all
cash sale for $14,650,000. The purchaser of the Canyon Sands Apartments took
title subject to the existing first mortgage loan in the amount of $8,957,106.
From the proceeds of the sale, the Partnership paid $124,875 in selling costs.
The basis of the property was $6,253,071, which is net of accumulated
depreciation of $4,914,899. For financial statement purposes, the Partnership
recognized a gain of $8,272,054 from the sale of this property.

(d) In June 1996, the Partnership sold the Ridgetree - Phase I Apartments in an
all cash sale for $11,100,000. From the proceeds of the sale, the Partnership
paid $9,484,192 to the third party mortgage holder in full satisfaction of the
first and second mortgage loans, and paid $126,000 in selling costs. The basis
of the property was $8,491,725, which is net of accumulated depreciation of
$5,512,986. For financial statement purposes, the Partnership recognized a gain
of $2,482,275 from the sale of this property.

(e) In July 1996, the Partnership sold the Sunnyoak Village Apartments in an
all cash sale for $22,200,000. From the proceeds of the sale, the Partnership
paid $13,598,689 to the third party mortgage holder in full satisfaction of the
first mortgage loan, and paid $181,500 in selling costs. The basis of the
property was $10,571,735, which is net of accumulated depreciation of
$7,676,011. For financial statement purposes, the Partnership recognized a gain
of $11,446,765 from the sale of this property.

(f) In September 1996, the Partnership sold the Creekwood - Phase I Apartments
in an all cash sale for $8,389,800. From the proceeds of the sale, the
Partnership paid $5,604,985 to the third party mortgage holder in full
satisfaction of the first mortgage loan, $192,581 in selling costs and $168,150
in prepayment penalties. The basis of the property was $4,284,091, which is net
of accumulated depreciation of $2,758,600. For financial statement purposes,
the Partnership recognized a gain of $3,913,128 from the sale of this property.
<PAGE>
(g) In September 1996, the Partnership sold the Chestnut Ridge - Phase II
Apartments in an all cash sale for $4,696,600. From the proceeds of the sale,
the Partnership paid $3,073,783 to the third party mortgage holder in full
satisfaction of the first loan, $165,482 in selling costs and $153,689 in
prepayment penalties. The Partnership received net proceeds of $1,303,646 from
the sale. However, the terms of the 1994 refinancing of this property provided
that minimum net proceeds of $1,441,300 were to be received from the sale of
this property. As a result, $137,654 was contributed to the Partnership through
an increase to the balance of the junior loan outstanding from TBC. The basis
of the property was $3,519,385, which is net of accumulated depreciation of
$2,163,522. For financial statement purposes, the Partnership recognized a gain
of $1,011,733 from the sale of this property.

5. Extraordinary Items:

(a) In connection with the sales of the Chestnut Ridge - Phase II and the
Creekwood Phase I apartment complexes during 1996, the Partnership paid
$321,839 of loan prepayment penalties. In addition, the Partnership fully
amortized the remaining deferred financing fees in the amount of $638,821 as a
result of the sales of the Partnership's properties during 1996. These amounts
were recognized as extraordinary items and classified as debt extinguishment
expense.

(b) In connection with the sale of the Chestnut Ridge - Phase II Apartments,
the junior loan due to TBC, which had an outstanding balance of $1,708,945,
including accrued interest of $55,552, was forgiven which resulted in an
extraordinary gain on forgiveness of debt for financial statement purposes. 

6. Subsequent Events:

(a) In October 1996, the Partnership paid $11,200,000 ($80.00 per Interest) to
Limited Partners representing an initial quarterly distribution of Net Cash
Receipts of $4.00 per Interest for the third quarter of 1996 and a special
distribution of Net Cash Proceeds of $76.00 per Interest from proceeds received
in connection with the sales of the Canyon Sands, Ridgetree - Phase I, Sunnyoak
Village and Creekwood - Phase I apartment complexes.

(b) In November 1996, the Partnership sold the Quail Lakes Apartments in an all
cash sale for $10,500,000. From the proceeds of the sale, the Partnership paid
$6,683,238 to the third party mortgage holder in full satisfaction of the first
mortgage loan, $350,201 in selling costs and $267,330 in prepayment penalties.
For financial statement purposes, the Partnership will recognize a gain of
approximately $4,053,000 from the sale of this property during the fourth
quarter of 1996.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS


Balcor Realty Investors-84 (the "Partnership") was formed in 1982 to invest in
and operate income-producing real property. The Partnership raised $140,000,000
from sales of Limited Partnership Interests and utilized these proceeds to
acquire twenty-three real property investments and a minority joint venture
interest in one additional property. Six of these properties were sold in prior
years and eight were sold in 1996, including the Quail Lakes Apartments which
was sold in November 1996. Title to five properties, including the property in
which the Partnership held a minority joint venture interest, have been
relinquished through foreclosure in prior years. The Partnership continues to
operate the five remaining properties.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1995 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

The Partnership sold seven properties during the nine months ended September
30, 1996 and recognized significant gains on these sales for financial
statement purposes. As a result of these gains, the Partnership generated
substantially higher net income during the nine months and quarter ended
September 30, 1996 as compared to the same periods in 1995. Further discussion
of the Partnership's operations is summarized below.

1996 Compared to 1995
---------------------

Unless otherwise noted, discussions of fluctuations between 1996 and 1995 refer
to both the nine months and quarters ended September 30, 1996 and 1995.

The Partnership sold the Pinebrook and Drayton Quarter apartment complexes in
1995 and the Antlers, Canyon Sands, Chestnut Ridge - Phase II, Chimney Ridge,
Creekwood - Phase I, Ridgetree - Phase I and Sunnyoak Village apartment
complexes in 1996. As a result, the Partnership recognized gains of $4,080,592
on the 1995 sales and $42,257,478 on the 1996 sales during the nine months
ended September 30, 1995 and September 30, 1996, respectively. These sales also
resulted in decreases in rental and service income, interest expense on
mortgage notes payable, depreciation, amortization, property operating
expenses, real estate taxes and property management fees during 1996 as
compared to 1995. These decreases were partially offset by the events described
below.
<PAGE>
Five of the Partnership's six remaining properties at September 30, 1996
experienced higher rental rates in 1996 which resulted in increased rental and
service income and property management fees and partially offset the decreases
from the nine property sales. 

Proceeds received during the second and third quarters of 1996 in connection
with the sales of the Antlers, Canyon Sands, Chestnut Ridge - Phase II,
Creekwood - Phase I, Ridgetree - Phase I and Sunnyoak Village apartment
complexes were invested in short-term interest bearing investments prior to
their distribution to Limited Partners in July and October 1996 and resulted in
increased interest income on short-term investments during 1996 as compared to
1995.

Due to decreases in the short-term loan balance during 1995 and its repayment
in March 1996, interest expense on short-term loans from an affiliate decreased
during the nine months ended September 30, 1996 as compared to the same period
in 1995 and ceased during the quarter ended September 30, 1996.

Costs were incurred for repair and maintenance expenditures, which included
structural repairs, landscaping and replacement of floor coverings, at certain
of the Partnership's six remaining properties at September 30, 1996. These
costs resulted in increased property operating expense and partially offset the
decrease from the nine property sales.

Due to lower accounting fees and legal fees, administrative expenses decreased
during 1996 as compared to 1995. This decrease was partially offset by higher
consulting, printing and postage costs incurred in connection with the
Partnership's response to a tender offer during 1996. 

The Pinebrook apartment complex was owned by a joint venture consisting of the
Partnership and an affiliate. As a result of the property's sale in 1995,
affiliate's participation in income from joint venture ceased during 1996.

Due to the 1996 property sales, remaining unamortized deferred financing fees
in the amount of $638,821 were fully amortized. In addition, in connection with
the sales of the Chestnut Ridge - Phase II and the Creekwood - Phase I
apartment complexes, the Partnership paid $321,839 of loan prepayment
penalties. These amounts were recognized as an extraordinary item and
classified as debt extinguishment expense during 1996.

As a result of the sale of the Chestnut Ridge - Phase II  Apartments, the
Partnership recognized an extraordinary gain on forgiveness of debt of
$1,708,945 during 1996. During 1995, the Partnership recognized an
extraordinary gain on forgiveness of debt of $90,359 in connection with the
settlement reached with the seller of certain of the Partnership's properties.

Liquidity and Capital Resources
-------------------------------

The cash position of the Partnership increased by approximately $13,804,000 as
of September 30, 1996 when compared to December 31, 1995 primarily due to
proceeds received from the sales of the Chestnut Ridge - Phase II, Creekwood -
Phase I and Sunnyoak Village apartment complexes. The Partnership received cash
<PAGE>
totaling approximately $2,501,000 from its operating activities which consisted
primarily of cash flow generated from property operations which was partially
offset by the payment of administrative expenses. The Partnership also received
cash of approximately $61,891,000 from its investing activities relating to the
sales of the Antlers, Canyon Sands, Chestnut Ridge - Phase II, Chimney Ridge,
Creekwood - Phase I, Ridgetree - Phase I, and Sunnyoak Village apartment
complexes. The Partnership used cash to fund its financing activities which
consisted primarily of the payment of a distribution totaling $11,200,000 to
Limited Partners; the repayment of the $6,623,202 loan from the General
Partner; the repayment of the mortgage notes payable of approximately
$31,762,000 and the payment of loan prepayment penalties of approximately
$322,000 in connection with the sales of the Chestnut Ridge - Phase II,
Creekwood - Phase I, Ridgetree - Phase I, and Sunnyoak Village apartment
complexes; and principal payments on mortgage notes payable of approximately
$840,000. The Partnership also made a special distribution to Limited Partners
from Net Cash Proceeds in October 1996 as described below.

The Partnership classifies the cash flow performance of its properties as
either positive, a marginal deficit or a significant deficit, each after
consideration of debt service payments unless otherwise indicated. A deficit is
considered to be significant if it exceeds $250,000 annually or 20% of the
property's rental and service income. The Partnership defines cash flow
generated from its properties as an amount equal to the property's revenue
receipts less property related expenditures, which include debt service
payments. During the nine months ended September 30, 1996, five of the six
properties owned by the Partnership at September 30, 1996 generated positive
cash flow and one generated a marginal cash flow deficit. During the same
period in 1995, all six properties generated positive cash flow. The Courtyards
of Kendall Apartments, which had generated positive cash flow during 1995,
generated a marginal cash flow deficit during 1996 as a result of slightly
higher property operating expenses. As of September 30, 1996, the occupancy
rates of the Partnership's properties ranged from 94% to 99% except for the
Briarwood Apartments which had an occupancy rate of 89%.

The Antlers, Canyon Sands, Chestnut Ridge - Phase II, Chimney Ridge, Creekwood
- Phase I and Sunnyoak Village apartment complexes, which were sold in 1996,
all generated positive cash flow during 1995 and prior to their sales in 1996.
The Ridgetree - Phase I apartment complex, which was sold in June 1996,
generated a marginal deficit during 1995 and prior to its sale in 1996. The
Pinebrook apartment complex, which was sold in February 1995, generated a
marginal deficit prior to its sale in 1995 and the Drayton Quarter apartment
complex, which was sold in July 1995, generated positive cash flow prior to its
sale.

While the cash flow of certain of the Partnership's properties has improved,
the General Partner continues to pursue a number of actions aimed at improving
the cash flow of the Partnership's properties, including improving operating
performance and seeking rent increases where market conditions allow. 

The General Partner believes that the market for multifamily housing properties
is favorable to sellers of these properties and has accelerated the
Partnership's liquidation strategy. During 1996, the Partnership sold the
<PAGE>
Antlers, Canyon Sands, Chestnut Ridge - Phase II, Chimney Ridge, Creekwood -
Phase I, Quail Lakes, Ridgetree - Phase I and Sunnyoak Village apartment
complexes. Currently, the Partnership has entered into contracts to sell the
Chesapeake, Courtyards of Kendall, Somerset Pointe and Woodland Hills apartment
complexes for sales prices of $7,950,000, $11,310,000, $18,833,333 and
$7,500,000, respectively.  

The timing of the termination of the Partnership and final distribution of cash
will depend upon the nature and extent of liabilities and contingencies which
exist or may arise.  Such contingencies may include legal and other fees
stemming from litigation involving the Partnership.  In the absence of any such
contingency, the reserves will be paid within twelve months of the last
property being sold. In the event a contingency arises, reserves may be held by
the Partnership for a longer period of time.

In February 1996, the Partnership sold the Chimney Ridge Apartments in an all
cash sale for $13,650,000. The purchaser of the Chimney Ridge Apartments took
title subject to the existing first mortgage loan in the amount of $7,242,788.
From the proceeds of the sale, the Partnership paid $609,642 in selling costs.
The remainder of the proceeds were used to repay a significant portion of the
remaining General Partner loans. See Note 4 of Notes to Financial Statements
for additional information.

In May 1996, the Partnership sold the Antlers Apartments in an all cash sale
for $15,000,000. The purchaser of the Antlers Apartments took title subject to
the existing first mortgage loan in the amount of $10,108,860. From the
proceeds of the sale, the Partnership paid $86,456 in selling costs. The
remainder of the proceeds were distributed in a special distribution to the
Limited Partners in July 1996. See Note 4 of Notes to Financial Statements for
additional information.

In June 1996, the Partnership sold the Canyon Sands Apartments in an all cash
sale for $14,650,000. The purchaser of the Canyon Sands Apartments took title
subject to the existing first mortgage loan in the amount of $8,957,106. From
the proceeds of the sale, the Partnership paid $124,875 in selling costs.
Pursuant to the terms of the sale, the Partnership was required to holdback
$500,000 of the proceeds until October 1996. The full amount of the holdback
was released in October 1996. The remainder of the proceeds were distributed in
a special distribution to the Limited Partners in July 1996. See Note 4 of
Notes to Financial Statements for additional information.

In June 1996, the Partnership sold the Ridgetree - Phase I Apartments in an all
cash sale for $11,100,000. From the proceeds of the sale, the Partnership paid
$9,484,192 to the third party mortgage holder in full satisfaction of the first
and second mortgage loans, and paid $126,000 in selling costs. Pursuant to the
terms of the sale, the Partnership was required to holdback $500,000 of the
proceeds until October 1996. The full amount of the holdback was released in
October 1996. The remainder of the proceeds were distributed in a special
distribution to the Limited Partners in July 1996. See Note 4 of Notes to
Financial Statements for additional information.
<PAGE>
In July 1996, the Partnership sold the Sunnyoak Village Apartments in an all
cash sale for $22,200,000. From the proceeds of the sale, the Partnership paid
$13,598,689 to the third party mortgage holder in full satisfaction of the
first mortgage loan, and paid $181,500 in selling costs. Pursuant to the terms
of the sale, the Partnership was required to holdback $500,000 of the proceeds
until October 1996. The full amount of the holdback was released in October
1996. The remainder of the proceeds were distributed in a special distribution
to the Limited Partners in October 1996. See Note 4 of Notes to Financial
Statements for additional information.

In September 1996, the Partnership sold the Creekwood - Phase I Apartments in
an all cash sale for $8,389,800. From the proceeds of the sale, the Partnership
paid $5,604,985 to the third party mortgage holder in full satisfaction of the
first mortgage loan, $192,581 in selling costs and $168,150 of prepayment
penalties. The remainder of the proceeds were distributed in a special
distribution to the Limited Partners in October 1996. See Note 4 of Notes to
Financial Statements for additional information.

In September 1996, the Partnership sold the Chestnut Ridge - Phase II
Apartments in an all cash sale for $4,696,600. From the proceeds of the sale,
the Partnership paid $3,073,783 to the third party mortgage holder in full
satisfaction of the first mortgage loan, $165,482 in selling costs and $153,689
of prepayment penalties. The Partnership received net proceeds of $1,303,646
from the sale. However, the terms of the 1994 refinancing of this property
provided that minimum net proceeds of $1,441,300 were to be received from the
sale of this property. As a result, $137,654 was contributed to the Partnership
through an increase to the balance of the junior loan outstanding from TBC. The
entire balance of this junior loan was then forgiven by TBC.  Pursuant to the
terms of the sale, $250,000 of the proceeds will be retained by the Partnership
until December 1996. The proceeds will be distributed in a special distribution
to the Limited Partners in January 1997. See Note 4 of Notes to Financial
Statements for additional information.

In November 1996, the Partnership sold the Quail Lakes Apartments in an all
cash sale for $10,500,000. From the proceeds of the sale, the Partnership paid
$6,683,238 to the third party mortgage holder in full satisfaction of the first
mortgage loan, $350,201 in selling costs and $267,330 of prepayment penalties.
A majority of the proceeds will be distributed in a special distribution to the
Limited Partners in January 1997. See Note 6 of Notes to Financial Statements
for additional information.

Each of the Partnership's remaining properties is owned through the use of
third-party mortgage loan financing and, therefore, the Partnership is subject
to the financial obligations required by such loans. With the exception of the
loan collateralized by the Courtyards of Kendall Apartments, which matures in
June 1997, the Partnership has no third party financing which matures prior to
1998. As previously mentioned, this property is currently under contract to be
sold.
<PAGE>
During October 1996, the Partnership paid $11,200,000 ($80.00 per Interest) to
Limited Partners representing an initial quarterly distribution of Net Cash
Receipts of $4.00 per Interest for the third quarter of 1996 and a special
distribution of Net Cash Proceeds of $76.00 per Interest from proceeds received
in connection with the sales of the Canyon Sands, Ridgetree - Phase I, Sunnyoak
Village and Creekwood - Phase I apartment complexes. Including the October 1996
distribution, Limited Partners have received cumulative distributions totaling
$160.00 per $1,000 Interest, of which $4.00 represents Cash Flow from
operations and $156.00 represents a return of Original Capital. As the
remaining properties are sold, the Partnership will distribute the sale
proceeds to Limited Partners.  Additionally, the Partnership will distribute
the cash flow from property operations. The General Partner, however, does not
anticipate that investors will recover a substantial portion of their original
investment.

Inflation has several types of potentially conflicting impacts on real estate
investments. Short-term inflation can increase real estate operating costs
which may or may not be recovered through increased rents and/or sales prices
depending on general or local economic conditions. In the long-term, inflation
can be expected to increase operating costs and replacement costs and may lead
to increased rental revenues and real estate values.
<PAGE>
                          BALCOR REALTY INVESTORS-84
                       (An Illinois Limited Partnership)

                          PART II - OTHER INFORMATION

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

Proposed class action
---------------------

On August 30, 1996, a proposed class action complaint was filed, Lenore Klein
vs. Lehman Brothers, Inc., et al. (Superior Court of New Jersey, Law Division,
Union County, Docket No. Unn-L-5162-96). The Partnership, additional limited
partnerships which were sponsored by The Balcor Company (together with the
Partnership, the "Affiliated Partnerships"), American Express Company, Lehman
Brothers, Inc., additional limited partnerships sponsored by the predecessor of
Lehman Brothers, Inc. (together with the Partnership and the Affiliated
Partnerships, the "Defendant Partnerships") and Smith Barney Holdings, Inc. are
the named defendants in the action. The complaint was amended on October 18,
1996 to add additional plaintiffs. The amended complaint alleges, among other
things, common law fraud and deceit, negligent misrepresentation, breach of
contract, breach of fiduciary duty and violation of certain New Jersey statutes
relating to the disclosure of information in the offering of limited
partnership interests in the Defendant Partnerships. The amended complaint
seeks judgment for compensatory damages equal to the amount invested in the
Defendant Partnerships by the proposed class plus interest accrued thereon;
general damages for injuries arising from the defendants' actions; equitable
relief, including rescission, on certain counts; punitive damages; treble
damages on certain counts; recovery from the defendants of all profits received
by them as a result of their actions relating to the Defendant Partnerships;
attorneys' fees and other costs.

The defendants intend to vigorously contest this action. No class has been
certified as of this date. Management of each of the defendants believes they
have meritorious defenses to contest the claims. It is not determinable at this
time whether or not an unfavorable decision in this action would have a
material adverse impact on the Partnership.

Item 5. Other Information
-------------------------

Quail Lakes Apartments
----------------------

As previously reported, on October 21, 1996, the Partnership contracted to sell
the Quail Lakes Apartments, Oklahoma City, Oklahoma to an unaffiliated party,
NCH Corporation, an Arizona corporation, for a sale price of $10,500,000. The
sale closed on November 1, 1996. From the proceeds of the sale, the Partnership
repaid the outstanding balance of the first mortgage loan in the amount of
$6,683,238, prepayment penalties of $267,330, closing costs of $35,201, and
$210,000 to an unaffiliated party as a brokerage commission.  An affiliate of
the third party providing property management services for the property
received a fee of $105,000 for services rendered in connection with the sale of
the property. The Partnership received approximately $3,199,231, representing
the net proceeds.
<PAGE>
Somerset Pointe Apartments
--------------------------

In 1983, the Partnership acquired Somerset Pointe Apartments, Las Vegas,
Nevada, utilizing approximately $8,188,580 of offering proceeds. The property
was acquired subject to first mortgage financing of $12,187,000.

In September 1996, the Partnership contracted to sell the property to an
unaffiliated party AIMCO Properties, L.P., a Delaware limited partnership
("AIMCO"), for a sale price of $18,720,655. AIMCO was obligated under the
agreement of sale to deposit $321,937 into an escrow account as earnest money
upon completion of its due diligence review. AIMCO failed to make the deposit
and, as a result, the sale of the property to AIMCO was not consummated.  

On November 5, 1996, the Partnership contracted to sell the property for a sale
price of $18,833,333 to an unaffiliated party, DKS Associates. The purchaser
has deposited $321,937 into an escrow account as earnest money. The remainder
of the sale price will be payable in cash at closing, scheduled for December
16, 1996. Upon notice to the other party, no later than December 9, 1996, the
Partnership and purchaser each have the right to extend the closing to January
9, 1997. From the proceeds of the sale, the Partnership will repay the
outstanding balance of the first mortgage loan, which is expected to be
approximately $10,759,000 at closing, and $188,333 to an unaffiliated party as
a brokerage commission. The Partnership will receive the remaining proceeds of
approximately $7,886,000, less closing costs. Of such proceeds, $321,937 will
be retained by the Partnership and will not be available for use or
distribution by the Partnership until 90 days after closing. Neither the
General Partner nor any affiliate will receive a brokerage commission in
connection with the sale of the property. The General Partner will be
reimbursed by the Partnership for its actual expenses incurred in connection
with the sale.

The purchaser has simultaneously contracted to purchase two properties adjacent
to the property, one of which is owned by an affiliate of the General Partner
(the "Affiliate") and one of which is owned by an unaffiliated party. A default
by the purchaser, the Partnership or any other seller under any agreement of
sale will be considered a default under all three agreements. If the agreements
are terminated due to a default by the Partnership or another seller, the
purchaser will be entitled to receive a return of its earnest money and
interest accrued thereon plus additional damages in an amount equal to the
earnest money deposits. If the agreements are terminated due to a default by
the purchaser, the Partnership and other sellers will retain all earnest money
and interest accrued thereon. In the event the purchaser terminates any
agreement, other than by a default, the other agreements will also be
terminated, and the purchaser will receive a return of all earnest money
previously deposited plus interest accrued thereon. 

If the agreements are terminated due to a default by the unaffiliated seller,
such seller is obligated to reimburse the Partnership and the Affiliate for any
damages paid by them to the purchaser arising from the termination. If the
agreements are terminated due to a default by the Partnership or Affiliate,
such sellers are obligated to reimburse the unaffiliated seller for any damages
paid to the purchaser arising from the termination.
<PAGE>
The closing is subject to the satisfaction of numerous terms and conditions.
There can be no assurance that all of the terms and conditions will be complied
with and, therefore, it is possible the sale of the property may not occur.

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

(a) Exhibits:

(4) Form of Subscription Agreement, previously filed as Exhibit 4.1 to
Amendment No. 1 to the Registrant's Registration Statement on Form S-11 dated
December 16, 1983 (Registration No. 2-86317) and Form of Confirmation regarding
Interests in the Registrant set forth as Exhibit 4.2 to the Registrant's Report
on Form 10-Q for the quarter ended June 30, 1992 (Commission File No. 0-13349)
are incorporated herein by reference.

(10)(a)(i) Agreement of Sale and attachments thereto relating to the sale of
the Canyon Sands Village Apartments, Phoenix, Arizona previously filed as
Exhibit (2)(b) to the Partnership's Current Report on Form 8-K dated April 23,
1996 are incorporated herein by reference.

(ii) Master Amendment and Agreement dated May 22, 1996 relating to the sale of
the Canyon Sands Apartments, Phoenix, Arizona and Ridgetree Apartments, Phase
I, Dallas, Texas previously filed as Exhibit (2)(a)(i) to the Partnership's
Current Report on Form 8-K dated May 31, 1996 is incorporated herein by
reference.

(iii) Master Amendment and Agreement #2 dated May 22, 1996 relating to the sale
of the Canyon Sands Apartments, Phoenix, Arizona and Ridgetree Apartments,
Phase I, Dallas, Texas previously filed as Exhibit (2)(a)(ii) to the
Partnership's Current Report on Form 8-K dated May 31, 1996 is incorporated
herein by reference. 

(b)(i) Agreement of Sale and attachments thereto relating to the sale of
Ridgetree Apartments, Phase I, Dallas, Texas previously filed as Exhibit (2)(c)
to the Partnership's Current Report on Form 8-K dated April 23, 1996 are
incorporated herein by reference.

(c) Agreement of Sale and attachments thereto relating to the sale of the
Sunnyoak Village Apartments, Overland Park, Kansas previously filed as Exhibit
(2)(d) to the Partnership's Current Report on Form 8-K dated April 23, 1996 are
incorporated herein by reference.

(d)(i) Agreement of Sale relating to the sale of Antlers Apartments,
Jacksonville, Florida previously filed as Exhibit (2) to the Partnership's
Current Report on Form 8-K dated April 2, 1996 is incorporated herein by
reference.

(ii) Letter Agreements dated March 29, 1996, May 2, 1996 and May 3, 1996,
respectively, amending the Agreement of Sale relating to Antlers Apartments,
Jacksonville, Florida previously filed as Exhibit 10(vi) to the Partnership's
Report on Form 10-Q for the quarter ended March 31, 1996 are incorporated
herein by reference.   
<PAGE>
(e)(i) Agreement of Sale and attachments thereto relating to the sale of the
Woodland Hills Apartments, Irving, Texas, previously filed as Exhibit (2)(i) to
the Partnership's Current Report on Form 8-K dated August 27, 1996, are
incorporated herein by reference.

(ii) Letter dated September 9, 1996, relating to the sale of the Woodland Hills
Apartments, Irving, Texas, previously filed as Exhibit (2)(ii) to the
Partnership's Current Report on Form 8-K dated August 27, 1996, is incorporated
herein by reference.

(iii) Letter agreement dated September 12, 1996 relating to the sale of the
Woodland Hills Apartments, Irving, Texas, previously filed as Exhibit 99(c) to
the Partnership's Current Report on Form 8-K dated August 30, 1996, is
incorporated herein by reference.

(f) (i) Agreement of Sale and attachments thereto, dated September 25, 1996,
relating to the sale of the Somerset Pointe Apartments, Las Vegas, Nevada,
previously filed as Exhibit (2) to the Partnership's Current Report on Form 8-K
dated September 24, 1996, are incorporated herein by reference.

(ii) Agreement of Sale and attachments thereto, dated November 9, 1996,
relating to the sale of the Somerset Pointe Apartments, Las Vegas, Nevada, is
attached hereto.

(g)(i) Agreement of Sale and attachments thereto relating to the sale of the
Chesapeake Apartments, Harris County, Texas, previously filed as Exhibit
(2)(a)(i) to the Partnership's Current Report on Form 8-K dated October 18,
1996, are incorporated herein by reference.

(ii) First Amendment to Agreement of Sale relating to the sale of the
Chesapeake Apartments, Harris County, Texas, previously filed as Exhibit
(2)(a)(ii) to the Partnership's Current Report on Form 8-K dated October 18,
1996, is incorporated herein by reference.

(h) Agreement of Sale and attachments thereto relating to the sale of the Quail
Lakes Apartments, Oklahoma City, Oklahoma, previously filed as Exhibit (2)(b)
to the Partnership's Current Report on Form 8-K dated October 18, 1996, are
incorporated herein by reference.


(27) Financial Data Schedule of the Registrant for the quarter ending September
30, 1996, is attached hereto. 

(b) Reports on Form 8-K

(i) A Current Report on Form 8-K dated August 27, 1996 was filed reporting the
contract to sell the Woodland Hills Apartments in Irving, Texas, and the
termination of the contract to sell Courtyards of Kendall Apartments in Dade
County, Florida.
<PAGE>
(ii) A Current Report on Form 8-K dated August 30, 1996 was filed reporting the
contract to sell the Chestnut Ridge Apartments, Phase II, in Fort Worth, Texas,
the amendment and closing of the sale of Creekwood Apartments, Phase I in
Tulsa, Oklahoma, and the agreement to extend the closing of the sale of
Woodland Hills Apartments in Irving, Texas.

(iii) A Current Report on Form 8-K dated September 24, 1996 was filed reporting
the contract to sell the Somerset Pointe Apartments in Las Vegas, Nevada.

(iv) A Current Report on Form 8-K dated October 18, 1996 was filed reporting
each of the contracts to sell Chesapeake, Quail Lakes and Courtyards of Kendall
apartment complexes in Harris County, Texas; Oklahoma City, Oklahoma; and Dade
County, Florida, respectively and the letter agreement and closing of the sale
of Chestnut Ridge Apartments, Phase II, in Fort Worth, Texas.
<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.


                              BALCOR REALTY INVESTORS-84



                              By:  /s/ Thomas E. Meador
                                  -----------------------------
                                  Thomas E. Meador
                                  President and Chief Executive Officer
                                  (Principal Executive Officer) of Balcor
                                  Partners-XV, the General Partner



                              By:  /s/ Jayne A. Kosik
                                  -----------------------------
                                  Jayne A. Kosik
                                  Vice President, and Chief Financial Officer
                                  (Principal Accounting Officer) of Balcor
                                  Partners-XV, the General Partner



Date:  November 13, 1996                    
      ----------------------------
<PAGE>