UNITED
STATES
 SECURITIES
AND EXCHANGE COMMISSION
 Washington,
DC 20549
  FORM
10-Q
 (Mark
One)


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


For the
quarterly period ended September30,
2008
  [  
]  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          0-12210
  PRESIDENTIAL
ASSOCIATES I LIMITED PARTNERSHIP
 (Exact
name of registrant as specified in its charter)
  Maryland
                    04-2801764(State
      or other jurisdiction of incorporation or organization)
                    (IRS
      Employer Identification No.)
  1280
Massachusetts Avenue, 4th Floor,
Cambridge, MA 02138
 (Address
of principal executive offices)
  (617)
876-4800
 (Registrant’s
telephone number)
  
 (Former
name, former address and former fiscal year, if changed since last
report)
  Indicate
by check mark whether the registrant (1) filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 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 [  ]
  Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a small reporting
company.
   Large accelerated
      filer [  ]
                        Accelerated filer
      [  ]
                        Non-accelerated
      filer [  ]
                        Small
      reporting company [X]
  Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
 Yes
[  ] No [X]
  APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
 PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
  Check
whether the registrant filed all documents and reports required to be filed by
Section l2, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes [  ] No
[  ]
  APPLICABLE
ONLY TO CORPORATE ISSUERS
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
  PART I - FINANCIAL
INFORMATION
 Item
1.  Financial Statements.
 
 Balance
Sheets
 September
      30, 2008
                          (Unaudited)
                        
                        
                        December
      31, 2007
                          (Audited)AssetsCash
      and cash equivalents
                        
                        $
                        7,190,879
                        
                        
                        $
                        11,497,853Due
      from investor limited partners,net
      of allowance of $388,767 and $353,399
                        
                        
                        3,310
                        
                        
                        
                        —Due
      from affiliates
                        
                        
                        60,000
                        
                        
                        
                        60,000Total
      Assets
                        
                        $
                        7,254,189
                        
                        
                        $
                        11,557,853Liabilities and
      Partners’
      CapitalLiabilities:Accounts
      payable
                        
                        $
                        —
                        
                        
                        $
                        36,553Accrued
      state replacement tax
                        
                        
                        —
                        
                        
                        
                        1,572,376Due
      to investor limited partners
                        
                        
                        464,604
                        
                        
                        
                        737,946Due
      to affiliates
                        
                        
                        —
                        
                        
                        
                        2,850,000Total
      Liabilities
                        
                        
                        464,604
                        
                        
                        
                        5,196,875Partners’
      Capital:Partners’
      Capital
                        
                        
                        6,789,585
                        
                        
                        
                        6,360,978Total
      Liabilities and Partners’ Capital
                        
                        $
                        7,254,189
                        
                        
                        $
                        11,557,853
 
 
 
 See notes
to financial statements
 
 2
of 13
 PRESIDENTIAL ASSOCIATES I LIMITED
PARTNERSHIP
 FORM 10-Q SEPTEMBER 30, 2008
  Statements
of Operations (Unaudited)
 For
      The Three Months Ended
                        
                        
                        For
      The Nine Months EndedSeptember
      30,
                        
                        
                        September
      30,
                        
                        
                        September
      30,
                        
                        
                        September
      30,2008
                        
                        
                        2007
                        
                        
                        2008
                        
                        
                        2007Income:Distribution
      from operating partnership
                        
                        $
                        —
                        
                        
                        $
                        —
                        
                        
                        $
                        1,679,832
                        
                        
                        $
                        65,393,460Interest
      and dividends
                        
                        
                        63,365
                        
                        
                        
                        305,118
                        
                        
                        
                        249,840
                        
                        
                        
                        801,504Total
      income
                        
                        
                        63,365
                        
                        
                        
                        305,118
                        
                        
                        
                        1,929,672
                        
                        
                        
                        66,194,964Expenses:Legal
      and Professional Fees
                        
                        
                        30,456
                        
                        
                        
                        33,402
                        
                        
                        
                        94,620
                        
                        
                        
                        57,018Other
                        
                        
                        15,533
                        
                        
                        
                        6,418
                        
                        
                        
                        35,813
                        
                        
                        
                        10,044Total
      expenses
                        
                        
                        45,989
                        
                        
                        
                        39,820
                        
                        
                        
                        130,433
                        
                        
                        
                        67,062Net
      income (loss)
                        
                        $
                        17,376
                        
                        
                        $
                        265,298
                        
                        
                        $
                        1,799,239
                        
                        
                        $
                        66,127,902Net
      income (loss) per Unit of Limited Partnership Interest
      outstanding
                        
                        $
                        29.45
                        
                        
                        $
                        449.66
                        
                        
                        $
                        3,049.56
                        
                        
                        $
                        112,081.19
 
 
 See notes
to financial statements
 
 3
of 13
 PRESIDENTIAL ASSOCIATES I LIMITED
PARTNERSHIP
 FORM 10-Q  SEPTEMBER 30,
2008
 Statement
of Partners’ Capital (Unaudited)
  For
      the Nine Months Ended
                          September
      30, 2008
                          (Unaudited)
                        
                        Winthrop
                          Financial
      Co.,
                          Inc.
                        
                        
                        Linnaeus-
                          Phoenix
                          Associates
                          Limited
                          Partnership
                        
                        
                        Investor
                          Limited
                          Partners
                        
                        
                        TotalPartners’
                          CapitalBalance
      - December 31, 2007
                        
                        $
                        (264,134
                        )
                        
                        $
                        (566,043
                        )
                        
                        $
                        7,191,155
                        
                        
                        $
                        6,360,978Net
      income
                        
                        
                        8,996
                        
                        
                        
                        8,996
                        
                        
                        
                        1,781,247
                        
                        
                        
                        1,799,239Distributions
                        
                        
                        (34,266
                        )
                        
                        
                        (34,266
                        )
                        
                        
                        (1,302,100
                        )
                        
                        
                        (1,370,632
                        )Balance
      - September 30, 2008
                        
                        $
                        (289,404
                        )
                        
                        $
                        (591,313
                        )
                        
                        $
                        7,670,302
                        
                        
                        $
                        6,789,585
 
 
 
 See notes
to financial statements
 
 4
of 13
 PRESIDENTIAL ASSOCIATES I LIMITED
PARTNERSHIP
 FORM 10-Q  SEPTEMBER 30,
2008
  Statements
of Cash Flows (Unaudited)
 For
      The Nine Months EndedSeptember
      30,
                        
                        
                        September
      30,2008
                        
                        
                        2007Cash
      Flows From Operating Activities:Net
      income
                        
                        $
                        1,799,239
                        
                        
                        $
                        66,127,902Adjustments
      to reconcile net income to net cash(used
      in) provided by operating activities:Bad
      debts
                        
                        
                        35,368
                        
                        
                        
                        -Increase
      in interest income for adjustment to distributions
                        
                        
                        (46,403
                        )
                        
                        
                        (123,010
                        )Increase
      in due from affiliates
                        
                        
                        -
                        
                        
                        
                        (30,000
                        )Increase
      in amounts receivable from investor limited partner
                        
                        
                        (3,310
                        )
                        
                        
                        -Decrease
      in accounts payable
                        
                        
                        (36,553
                        )
                        
                        
                        (30,457
                        )Decrease
      in accrued state replacement tax
                        
                        
                        (1,572,376
                        )Decrease
      in liquidation fee expense,payable
      to an affiliate of the general partner
                        
                        
                        (2,850,000
                        )
                        
                        
                        -Net
      cash (used in) provided by continuing operations
                        
                        
                        (2,674,035
                        )
                        
                        
                        65,944,435Cash
      Flows From Investing Activities:Advances
      to affiliate
                        
                        
                        -
                        
                        
                        
                        (94,240
                        )Net
      cash used in investing activities
                        
                        
                        -
                        
                        
                        
                        (94,240
                        )Cash
      Flows From Financing Activities:Distributions
      to partners
                        
                        
                        (1,350,217
                        )
                        
                        
                        (56,270,964
                        )Payment
      of amounts due to partners
                        
                        
                        (282,722
                        )
                        
                        
                        -Repayments
      of advances from affiliates
                        
                        
                        -
                        
                        
                        
                        (759
                        )Net
      cash used in financing activities
                        
                        
                        (1,632,939
                        )
                        
                        
                        (56,271,723
                        )Net
      (decrease) increase in cash and cash equivalents
                        
                        
                        (4,306,974
                        )
                        
                        
                        9,578,472Cash
      and cash equivalents, beginning of period
                        
                        
                        11,497,853
                        
                        
                        
                        1,069,189Cash
      and cash equivalents, end of period
                        
                        $
                        7,190,879
                        
                        
                        $
                        10,647,661Significant
      noncash investing and financing activities:
  Due to
investor limited partners increased by $9,380 of distributions payable to
investor limited partners as of September 30, 2008 and expected to be paid
during the quarter ending December 31, 2008.
 Due from
investor limited partners decreased by $11,035 for adjustments to
distributions.
  
 See notes
to financial statements
 
 5
of 13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 1.
                        General
 
 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 financial statements be read
in conjunction with the financial statements and the notes thereto included in
the Partnership’s Annual Report on Form 10-KSB for the year ended December 31,
2007.
 
 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, 2008.
 
 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.
 
 3.
                        Taxable
      Income
 
 The
Partnership’s taxable income for 2008 is not expected to differ from that for
financial reporting purposes.
 
 No
provision or benefit for Federal income taxes has been included in these
financial statements since taxable income or loss passes through to, and is
reportable by, the partners individually.
 
 During
the nine months ended September 30, 2008, the Partnership has paid $1,572,376
for Illinois replacement tax.  The state tax was calculated on the
gain resulting from the Operating Partnership selling a building located in
Illinois.
 
 
 6 of
13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 Item
      2.
                        Management’s
      Discussion and Analysis or Plan of
  Operation
 
 The
matters discussed in this Form 10-Q contain certain forward-looking information
and involve risks and uncertainties (including changing market conditions,
competitive and regulatory matters, etc.)  The discussion of the
Partnership’s business and results of operations, including forward-looking
information pertaining to such matters does not take into account the effects of
any changes to the Partnership’s business and results of
operations.  Accordingly, actual results could differ materially from
those projected in the forward-looking statements as a result of a number of
factors, including those identified herein.
 
 This Item
should be read in conjunction with the financial statements and other items
contained elsewhere in the report.
 
 General
 
 On March
7, 2007 the Operating Partnership entered into an agreement to sell the
Project.  The sale closed on April 18, 2007, resulting in a cash
distribution of $65,393,460 to the Partnership.  The Managing General
Partner has reserved $5,000,000 intended to cover any unforeseen
liabilities.  After repayment of debt, expenses incurred by the
Operating Partnership in connection with the sale, and costs and fees payable by
the Partnership in connection with the transaction, the Managing General Partner
distributed cash proceeds to the limited partners on May 18, 2007, in the
aggregate amount of $56,227,336, which equates to $94,239.56 per investment unit
for individuals and $98,032.69 for non-individuals.
 
 On
January 24, 2008, the Partnership received a distribution from the Operating
Partnership of $1,679,832.  This leaves the Operating Partnership with
approximately $1,000,000 in its bank account to satisfy contingent
obligations.  Once these obligations are satisfied, it is expected
that the Operating Partnership will distribute any remaining funds and
liquidate.
 
 On
February 27, 2008, the Managing General Partner distributed cash proceeds to the
limited partners in the aggregate amount of $1,302,100 which equates to
$2,206.95 per investment unit.  As of September 30, 2008, there were
approximately 504 investor limited partners holding 590 outstanding units. An
additional distribution may occur upon dissolution of the Partnership, which is
expected to occur in late 2008 or early 2009.
 
 Liquidity and Capital
Resources
 
 The
Partnership’s primary source of liquidity is distributions from Presidential
Towers Ltd., an Illinois limited partnership (the “Operating
Partnership”).  As a result of a significant restructuring of the
ownership and debt of the Operating Partnership that was finalized in April
1995, the Partnership currently holds a 19.998% limited partnership interest in
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.
 
 
 7 of
13
 
 
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 Item
      2.
                        Management’s
      Discussion and Analysis or Plan of Operation
      (Continued)
 
 Liquidity and Capital
Resources (Continued)
 
 The
Operating Partnership made a distribution to the Partnership during the nine
months ended September 30, 2008 and 2007 of $1,679,832 and $65,393,460,
respectively.  In connection with the April 1995 restructuring, the
Partnership is entitled to receive a reimbursement from the Operating
Partnership for its administrative expenses and professional fees up to an
annual maximum of $30,000 as well as its allocable share of all distributions
after a preferred return to TKI Presidential Partners (“TKI”), which preferred
return was satisfied in 2001.  In addition, the Operating Partnership
distributes to the Partnership an amount equal to the amount of income allocated
to the Partnership by the Operating Partnership in each year. Accordingly,
depending on the
Operating Partnership’s operating results, it is expected that the Partnership
will receive annual distributions from the Operating Partnership.
 
 As of
September 30, 2008, the amounts receivable from the Operating Partnership for
annual reimbursement of expenses is $60,000, which is included in due from
affiliates in the balance sheet.
 
 The
Partnership issued distribution checks to two former investors who had not
notified the Partnership that they had sold their respective LP
interests.  As of September 30, 2008, amounts receivable from the
former investors is $3,310, which is included in due from investor limited
partners on the balance sheet.
 
 As of
September 30, 2008, the Partnership owed distributions to investor limited
partners in the amount of $464,604.  The liability is due to checks
that were issued to investors then voided.  The balance is expected to
be repaid during 2008.
 
 The
Partnership’s liquidity based on cash and cash equivalents decreased by
$4,306,974 to $7,190,879 at September 30, 2008, as compared to December 31,
2007.  This decrease was due to the payment of a liquidation fee in
the amount of $2,850,000 to an affiliate of the General Partner. The Partnership
also paid $1,572,376 for Illinois replacement tax on the gain from the sale of a
building by the Operating Partnership.  This decrease was reduced by
the distribution received from the operating partnership of $1,679,832, as
offset by distributions made to the Partnership’s investors of
$1,302,100.  Accounts payable and accrued expenses decreased by
$36,553 for payments made for audit and accounting fees.  It is
expected that so long as the Partnership’s administrative expenses do not exceed
$30,000 in any year, unless the Operating Partnership makes a distribution, the
Partnership’s cash and cash equivalents will remain relatively constant until
the Operating Partnership is liquidated.
 
 The
Partnership’s liquid assets are currently thought to be sufficient for any
near-term needs of the Partnership.  The Partnership did not have any
off-balance sheet arrangements in any of the years as presented.
 
 8 of
13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 
 Item
      2.
                        Management’s
      Discussion and Analysis or Plan of Operation
      (Continued)
 
 Results of Operations
(Continued)
 
 Net
income was $1,799,239 for the nine months ended September 30, 2008 as compared
to net income of $66,127,902 for the nine months ended September 30,
2007.  The decrease in net income is primarily due to the Partnership
receiving a distribution of $65,393,460 from the Operating Partnership during
the nine months ended September 30, 2007.
 
 Net
income was $17,376 for the three months ended September 30, 2008 as compared to
net income of $265,298 for the three months ended September 30,
2007.  The decrease in net income is primarily due to the decrease in
interest and dividend income of $241,753 compared to the interest and dividend
income earned during the three months ended September 30, 2007.
 
 The
Partnership is entitled to receive interest income at 18 percent per annum on
investor notes from defaulted investors.  Due to the uncertainty of
the collection of defaulted investor notes, the Partnership recognizes interest
income only as collections are made from the final anticipated distributions due
to defaulted investors. For the nine months ended September 30, 2008, the
Partnership earned $46,403 of interest income, of which $11,035 is treated as
distributions retained and disclosed as a noncash activity on the statements of
cash flows.
 
 Item
      3.
                        Quantitative and
      Qualitative Disclosures About Market
Risk
 
 None.
 
 Item
      4T.
                        Controls and
      Procedures
 
 As of the
end of the period covered by this report, the Partnership’s General Partner,
under the supervision and with the participation of the Chief Executive Officer
and Chief Financial Officer of the Partnership carried out an evaluation of the
effectiveness of the Fund’s “disclosure controls and procedures” as defined in
Securities Exchange Act of 1934 Rule 13a – 14(c). Based on that evaluation, the
Chief Executive Officer and Chief Financial Officer have concluded that as of
the end of the period covered by this report, the Partnership’s disclosure
controls and procedures were adequate and effective in timely alerting them to
material information relating to the Partnership required to be included in the
Partnership’s periodic SEC filings.
 
 Changes
in internal controls. There were no significant changes in the Partnership’s
internal control over financial reporting that occurred during the quarter ended
September 30, 2008 that materially affected, or are reasonably likely to
materially affect, the Partnership’s internal control over financial
reporting.
 
 
 9 of
13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 Part II - Other
Information
 
 Item
      1.
                        Legal
      Proceedings
 
 None.
 
 Item
      1A.
                        Risk
      Factors
 
 None.
 
 Item
      2.
                        Unregistered Sales of
      Equity Securities and Use of
Proceeds
 
 None.
 
 Item
      3.
                        Defaults Upon Senior
      Securities
 
 None.
 
 Item
      4.
                        Submission of Matters
      to a Vote of Security
Holders
 
 None.
 
 Item
      5.
                        Other
      Information
 
 On March
7, 2007 the Operating Partnership entered into an agreement to sell the
Project.  The sale closed on April 18, 2007, resulting in a cash
distribution of $65,393,460 to the Partnership.  The Managing General
Partner has reserved $5,000,000 intended to cover any unforeseen
liabilities.  After repayment of debt, expenses incurred by the
Operating Partnership in connection with the sale, and costs and fees payable by
the Partnership in connection with the transaction, the Managing General Partner
distributed cash proceeds to the limited partners on May 18, 2007, in the
aggregate amount of $56,227,336, which equates to $94,239.56 per investment unit
for individuals and $98,032.69 for non-individuals.  On January 24,
2008, the Partnership received a distribution from the Operating Partnership of
$1,679,832.  This leaves the Operating Partnership with approximately
$1,000,000 in its bank account to satisfy contingent obligations.  On
February 27, 2008, the Managing General Partner distributed cash proceeds to the
limited partners in the aggregate amount of $1,302,100 which equates to
$2,206.95 per investment unit.  However, as the dissolution of the
Partnership was not imminent as of September 30, 2008 the financial statements
are presented assuming that the Partnership will continue as a going
concern.
 
 10 of
13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 Item
      6.
                        Exhibits
 
 Exhibits
required by Item 601 of Regulation S-K are filed herewith and are listed in the
attached Exhibit Index.
             
 
 11 of
13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 
 SIGNATURES
 
 
 Pursuant
to the requirements of the Securities Exchange Act of 1934, the Issuer has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
 
 
 
 PRESIDENTIAL
      ASSOCIATES I
                            LIMITED
      PARTNERSHIPBy:
                          Winthrop
      Financial Co., Inc.
                            Managing General Partner
 By:
                          /s/ Eggert
      DagbjartssonEggert
      DagbjartssonChief
      Executive Officer
  By:
                            /s/ Andrew
      PragueAndrew
      PragueChief
      Financial Officer
 Dated:   November
      14, 2008
 
  
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13
 PRESIDENTIAL ASSOCIATES I
LIMITED PARTNERSHIP
 FORM 10-Q SEPTEMBER 30,
2008
 
 Exhibit
Index
 
 Exhibit
 
 31.1
                          Chief
      Executive Officer’s Certification, pursuant to Section 302 of theSarbanes-Oxley
      Act of 2002.
 
 31.2
                          Chief
      Financial Officer’s Certification, pursuant to Section 302 of theSarbanes-Oxley
      Act of 2002.
  32
                            Certification
      of Chief Executive Officer and Chief Financial Officer,pursuant
      to 18 U.S.C. Section 1350, as adopted pursuant to Section 906of
      the Sarbanes-Oxley Act of 
2002.
 
 
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