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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q


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

                  For the quarterly period ended June 30, 1997

                         Commission file number 0-14438

              INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


        CALIFORNIA                                              13-3239107
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)


                   411 West Putnam Avenue, Greenwich, CT 06830
                    (Address of principal executive offices)

                                 (203) 862-7000
              (Registrant's telephone number, including area code)

                                      None
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check 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>
                                      INDEX

                                                                           

         Part I. Financial Information:

         Balance Sheets -- June 30, 1997 and December 31, 1996             

         Statements of Operations -- Three and Six Months Ended
             June 30, 1997 and 1996                                        

         Statement of Partners' Equity -- Six Months Ended
             June 30, 1997                                                 

         Statements of Cash Flows -- Six Months Ended
             June 30, 1997 and 1996                                        

         Notes to Financial Statements                                     

         Management's Discussion and Analysis of Financial
             Condition and Results of Operations                           

         Part II. Other Information:

         Legal Proceedings, Exhibits and Reports on Form 8-K               
<PAGE>
<TABLE>
<CAPTION>
                 INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                              FORM 10-Q - JUNE 30, 1997

                                    BALANCE SHEETS

                                                   June 30, 1997   December 31, 1996
                                                   -------------   -----------------

ASSETS
<S>                                                 <C>              <C>
Real estate ..................................      $32,123,077      $32,154,253
Cash and cash equivalents ....................        5,211,732        4,870,517
Other assets .................................        2,144,382        2,107,211
Receivables ..................................          172,622          158,204
                                                    -----------      -----------

                                                    $39,651,813      $39,290,185
                                                    ===========      ===========

LIABILITIES AND PARTNERS' EQUITY


Accounts payable and accrued expenses ........      $ 1,329,176      $ 1,061,732
Distributions payable.........................          395,799          252,638
Due to affiliates.............................          284,668        1,164,121
                                                    -----------      -----------

                                                      2,009,643        2,478,491
                                                    -----------      -----------

Commitments and contingencies

PARTNERS' EQUITY:

     Limited partners' equity (400,010
         units issued and outstanding) .......       35,759,109       34,970,158

     General partners' equity ................        1,883,061        1,841,536
                                                    -----------      -----------

                                                     37,642,170       36,811,694
                                                    -----------      -----------

                                                    $39,651,813      $39,290,185
                                                    ===========      ===========


                        See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                       INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                                    FORM 10-Q - JUNE 30, 1997

                                     STATEMENTS OF OPERATIONS

                                           For the Three Months Ended   For the Six Months Ended
                                                   June 30,                      June 30,
                                           --------------------------   ------------------------
                                                1997          1996          1997         1996
                                            ----------    ----------    ----------    ----------
<S>                                         <C>           <C>           <C>           <C>
Rental Revenue .........................    $2,398,074    $2,150,499    $4,754,602    $4,563,889
                                            ----------    ----------    ----------    ----------

Costs and Expenses:

     Operating expenses ................       857,590       826,015     1,729,608     1,683,620
     Depreciation and amortization .....       309,935       319,365       619,870       638,730
     Partnership management fee ........       227,043       227,043       454,086       454,086
     Administrative expenses ...........       204,098       116,282       406,358       247,742
     Property management fee ...........        71,264        61,562       140,333       136,859
                                            ----------    ----------    ----------    ----------

                                             1,669,930     1,550,267     3,350,255     3,161,037
                                            ----------    ----------    ----------    ----------


Income before interest and other income        728,144       600,232     1,404,347     1,402,852

     Interest income ...................        48,429        25,897        91,095        53,183

     Other income ......................        31,340        15,360        46,630        29,810
                                            ----------    ----------    ----------    ----------

Net income .............................    $  807,913    $  641,489    $1,542,072    $1,485,845
                                            ==========    ==========    ==========    ==========


Net income attributable to:

     Limited partners ..................    $  767,517    $  609,415    $1,464,968    $1,411,553

     General partners ..................        40,396        32,074        77,104        74,292
                                            ----------    ----------    ----------    ----------

Net income .............................    $  807,913    $  641,489    $1,542,072    $1,485,845
                                            ==========    ==========    ==========    ==========

Net income per unit of limited
     partnership interest (400,010 units
     outstanding) ......................    $     1.92    $     1.52    $     3.66    $     3.53
                                            ==========    ==========    ==========    ==========




                                See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                         INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                                      FORM 10-Q - JUNE 30, 1997


                                    STATEMENT OF PARTNERS' EQUITY


                                                          General         Limited
                                                         Partners'        Partners'
                                                          Equity           Equity           Total
                                                      ------------     ------------     ------------
<S>                                                   <C>              <C>              <C>
Balance, January 1, 1997 .........................    $  1,841,536     $ 34,970,158     $ 36,811,694


Net income for the six
     months ended June 30, 1997 ..................          77,104        1,464,968        1,542,072


Distributions as a return of capital for the six
     months ended June 30, 1997 ($1.69 per limited
     partnership unit) ...........................         (35,579)        (676,017)        (711,596)
                                                      ------------     ------------     ------------


Balance, June 30, 1997 ...........................    $  1,883,061     $ 35,759,109     $ 37,642,170
                                                      ============     ============     ============


                        See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                             STATEMENTS OF CASH FLOWS

                                                                                                
                                                        For The Six Months Ended
                                                                 June 30,
                                                      ---------------------------
                                                           1997            1996
                                                      -----------     -----------
<S>                                                   <C>             <C>
Cash Flows From Operating Activities:


     Net income ..................................    $ 1,542,072     $ 1,485,845
     Adjustments to reconcile net income
     to net cash provided by operating activities:
         Depreciation and amortization ...........        619,870         638,730
         Straight-line adjustment for stepped
           lease rentals .........................        (26,456)        (20,884)
     Changes in assets and liabilities:
         Accounts payable and accrued expenses ...        267,444         265,753
         Receivables .............................        (14,418)         18,546
         Due to affiliates .......................       (879,453)        (71,100)
         Other assets ............................       (125,219)       (130,264)
                                                      -----------     -----------

     Net cash provided by operating activities ...      1,383,840       2,186,626
                                                      -----------     -----------


Cash Flows From Investing Activities:

     Improvements to real estate .................       (474,190)       (289,781)
                                                      -----------     -----------

Cash Flows From Financing Activities:

     Distributions to partners ...................       (568,435)       (505,276)
                                                      -----------     -----------

Increase In Cash And Cash Equivalents ............        341,215       1,391,569


Cash And Cash Equivalents, Beginning of Year .....      4,870,517       2,450,943
                                                      -----------     -----------


Cash And Cash Equivalents, End of Quarter ........    $ 5,211,732     $ 3,842,512
                                                      ===========     ===========

                        See notes to financial statements
</TABLE>
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997

                          NOTES TO FINANCIAL STATEMENTS

l.       GENERAL

         The accompanying financial statements,  notes and discussions should be
         read in conjunction  with the financial  statements,  related notes and
         discussions contained in the Partnership's annual report on Form 10-K/A
         for the year ended December 31, 1996.

         The financial  information  contained herein is unaudited;  however, in
         the opinion of management,  all adjustments  (consisting only of normal
         recurring  adjustments)  necessary  for a  fair  presentation  of  such
         financial information have been included.

2.       SIGNIFICANT ACCOUNTING POLICIES

         Impairment of Assets

         The Partnership  evaluates the recoverability of the net carrying value
         of its real estate and related assets at least annually, and more often
         if  circumstances  dictate.  If this review indicates that the carrying
         value of the property may not be recoverable, the Partnership estimates
         the future cash flows  expected to result from the use of the  property
         and  its  eventual  disposition,  generally  over a  five-year  holding
         period. In performing this review, management takes into account, among
         other things, the existing occupancy, the expected leasing prospects of
         the  property  and the  economic  situation  in the  region  where  the
         property is located.

         If the sum of the  expected  future cash flows,  undiscounted,  is less
         than the carrying amount of the property, the Partnership recognizes an
         impairment  loss,  and reduces the carrying  amount of the asset to its
         estimated fair value. Fair value is the amount at which the asset could
         be bought or sold in a current  transaction  between  willing  parties,
         that  is,  other  than in a  forced  or  liquidation  sale.  Management
         estimates fair value using discounted cash flows or market comparables,
         as most appropriate for each property. Independent certified appraisers
         are utilized to assist management, when warranted.

         Impairment  write-downs  recorded by the  Partnership do not affect the
         tax basis of the assets and are not  included in the  determination  of
         taxable income or loss.

         Because  the cash  flows used to  evaluate  the  recoverability  of the
         assets and their  fair  values  are based  upon  projections  of future
         economic  events,  such as  property  occupancy  rates,  rental  rates,
         operating cost inflation and market  capitalization  rates, the amounts
         ultimately  realized at disposition may differ  materially from the net
         carrying  values at the balance sheet dates.  The cash flows and market
         comparables  used in this process are based on good faith estimates and
         assumptions   developed  by   management.   Unanticipated   events  and
         circumstances  may  occur  and some  assumptions  may not  materialize;
         therefore,  actual results may materially vary from the estimates.  The
         Partnership  may in the future provide  additional  write-downs,  which
         could be material,  if real estate markets or local economic conditions
         change.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                          NOTES TO FINANCIAL STATEMENTS

 2.      SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Recently Issued Accounting Pronouncement

         The Financial  Accounting Standards Board issued Statement of Financial
         Accounting  Standards No. 128,  "Earning per Share" in February,  1997.
         This pronouncement  establishes  standards for computing and presenting
         earnings  per  share,  and is  effective  for  the  Partnership's  1997
         year-end  financial  statements.   The  Partnership's   management  has
         determined that this standard will have no impact on the  Partnership's
         computation  or   presentation  of  net  income  per  unit  of  limited
         partnership interest.

         Certain  reclassifications  were  made  to  the  prior  year  financial
         statements in order to conform them to the current period presentation.

         Results of  operations  for the six months  ended June 30, 1997 are not
         necessarily  indicative  of the results to be  expected  for the entire
         year.

 3.      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

         The Managing General Partner of the Partnership, Resources High Equity,
         Inc.  is  a   wholly-owned   subsidiary  of  Presidio   Capital  Corp.,
         ("Presidio")  See Part II Item 5,  Other  Events.  Presidio  AGP Corp.,
         which is a wholly-owned subsidiary of Presidio is the Associate General
         Partner  (together  with the  Managing  General  Partner,  the "General
         Partners"). The General Partners and affiliates of the General Partners
         are also engaged in businesses related to the acquisition and operation
         of real estate.  Presidio is also the parent of other corporations that
         are or may in the  future  be  engaged  in  businesses  that  may be in
         competition  with the Partnership.  Accordingly,  conflicts of interest
         may arise between the  Partnership and such other  businesses.  Wexford
         Management LLC ("Wexford")  has been engaged to perform  administrative
         services to Presidio and its direct and indirect  subsidiaries  as well
         as  the   Partnership.   During  the  quarter   ended  June  30,  1997,
         reimbursable  expenses  to  Wexford  by  the  Partnership  amounted  to
         $23,650.  Wexford  is engaged to  perform  similar  services  for other
         similar entities that may be in competition with the Partnership.

         The  Partnership  has a property  management  services  agreement  with
         Resources Supervisory  Management Corp. ("Resources  Supervisory"),  an
         affiliate  of  the  General  Partners,  to  perform  certain  functions
         relating to the  management  of the  properties of the  Partnership.  A
         portion  of the  property  management  fees were  paid to  unaffiliated
         management  companies  which are engaged for the purpose of  performing
         the management functions for certain properties. For the quarters ended
         June 30, 1997 and 1996,  Resources  Supervisory was entitled to receive
         $71,264 and  $61,562,  respectively,  of which  $51,139 and $44,572 was
         paid to unaffiliated management companies, respectively.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                          NOTES TO FINANCIAL STATEMENTS

 3.      CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

         For the administration of the Partnership, the Managing General Partner
         is  entitled  to receive  reimbursement  of expenses up to a maximum of
         $150,000 per year  (exclusive  of the  administrative  expenses paid to
         Wexford ). For each of the quarters  ended June 30, 1997 and 1996,  the
         Managing General Partner was entitled to receive $37,500.

         For  managing  the affairs of the  Partnership,  the  Managing  General
         Partner is entitled  to receive an annual  partnership  management  fee
         equal  to  1.05% of the  amount  of  original  gross  proceeds  paid or
         allocable to the acquisition of property by the  Partnership.  For each
         of the  quarters  ended June 30, 1997 and 1996,  the  Managing  General
         Partner was entitled to receive $227,043.

         The  General  Partners  are  allocated  5% of  the  net  income  of the
         Partnership,  which  amounted to $40,396  and $32,074 for the  quarters
         ended June 30, 1997 and 1996,  respectively.  They are also entitled to
         receive 5% of distributions,  which amounted to $19,789 and $12,632 for
         the quarters ended June 30, 1997 and 1996, respectively.

         During the liquidation  stage of the Partnership,  the Managing General
         Partner or an affiliate may be entitled to receive certain fees,  which
         are  subordinated  to the limited  partners  receiving  their  original
         invested  capital  and  certain  specified  minimum  returns  on  their
         investment.

         From July 1996 through July 1997,  Millenium Funding II Corp., a wholly
         owned indirect  subsidiary of Presidio,  purchased  21,517 units of the
         Partnership  from  various  limited  partners.  These  units  represent
         approximately 5.4% of the outstanding  limited partnership units of the
         Partnership.

4.       REAL ESTATE

         The following  table is a summary of the  Partnership's  real estate as
         of:
<TABLE>
<CAPTION>
                                                   June 30,         December 31,
                                                     1997               1996
                                               ------------        ------------
<S>                                            <C>                 <C> 
Land ...................................       $ 11,056,966        $ 11,056,966
Building and improvements ..............         35,291,272          34,817,081
                                               ------------        ------------
                                                 46,348,238          45,874,047
Less: Accumulated depreciation .........        (14,225,161)        (13,719,794)
                                               ------------        ------------
                                               $ 32,123,077        $ 32,154,253
                                               ============        ============
</TABLE>
         No write-downs were recorded for the six months ended June 30, 1997 or
1996.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                          NOTES TO FINANCIAL STATEMENTS

5.       DISTRIBUTIONS PAYABLE
<TABLE>
<CAPTION>
                                                         June 30,      December 31,
                                                           1997           1996
                                                         --------       --------
<S>                                                      <C>            <C>
Limited partners ($.94 and $.60 per unit) ........       $376,009       $240,006
General partners .................................         19,790         12,632
                                                         --------       --------

                                                         $395,799       $252,638
                                                         ========       ========
</TABLE>
         Such  distributions  were paid in the quarters  subsequent  to June 30,
         1997 and December 31, 1996, respectively.

6.       DUE TO AFFILIATES
<TABLE>
<CAPTION>
                                                               June 30,        December 31,
                                                                 1997             1996
                                                              ----------       ----------
<S>                                                           <C>              <C>
Partnership management fee ............................       $  227,043       $  227,044
Settlement and litigation cost  reimbursement  (Note 7)             --            824,510
Property management fee ...............................           20,125           75,067
Non-accountable expense reimbursement .................           37,500           37,500
                                                              ----------       ----------

                                                              $  284,668       $1,164,121
                                                              ==========       ==========

</TABLE>
         Such amounts were paid in the quarters  subsequent to June 30, 1997 and
         December 31, 1996, respectively.

7.       COMMITMENTS AND CONTINGENCIES

         On or about  May 11,  1993  High  Equity  Partners  L.P.  -  Series  86
         ("HEP-86"), an affiliated partnership,  was advised of the existence of
         an action (the  "California  Action')  in which a  complaint  (the "HEP
         Complaint") was filed in the Superior Court for the State of California
         for the County of Los  Angeles  (the  "Court") on behalf of a purported
         class  consisting  of all  of the  purchasers  of  limited  partnership
         interests in HEP-86. On April 7, 1994 the plaintiffs were granted leave
         to file an amended complaint (the "Amended Complaint").

         On  November  30,  1995,  after  the  Court  preliminarily  approved  a
         settlement of the California  Action but  ultimately  declined to grant
         final  approval and  after the Court granted  motions to intervene, the
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997

                          NOTES TO FINANCIAL STATEMENTS

 7       COMMITMENTS AND CONTINGENCIES (CONTINUED)

         original and  Intervening  Plaintiffs  filed a  Consolidated  Class and
         Derivative Action Complaint ( the "Consolidated Complaint") against the
         Administrative  and Investment General Partners of HEP-86, the managing
         general  partner of the  Partnership,  the managing  general partner of
         HEP-88 and the indirect  corporate parent of the General Partners.  The
         Consolidated   Complaint  alleges  various  state  law  class  and  and
         derivative  claims,  including  claims for breach of fiduciary  duties;
         breach of contract;  unfair and  fraudulent  business  practices  under
         California  Bus.  & Prof.  Code Sec.  17200;  negligence;  dissolution,
         accounting and  receivership;  fraud; and negligent  misrepresentation.
         The  Consolidated  Complaint  alleges,  among  other  things,  that the
         general partners caused a waste of HEP Partnership assets by collecting
         management fees in lieu of pursuing a strategy to maximize the value of
         the  investments  owned  by the  limited  partners;  that  the  general
         partners  breached  their duty of loyalty  and due care to the  limited
         partners by expropriating management fees from the partnerships without
         trying to run the HEP  Partnerships for the purposes for which they are
         intended;  that the general  partners are acting  improperly  to enrich
         themselves in their position of control over the HEP  Partnerships  and
         that their  actions  prevent  non-affiliated  entities  from making and
         completing  tender offers to purchase HEP  Partnership  Units;  that by
         refusing  to seek the  sale of the HEP  Partnerships'  properties,  the
         general  partners have  diminished  the value of the limited  partners'
         equity in the HEP Partnerships;  that the general partners have taken a
         heavily  overvalued  partnership asset management fee; and that limited
         partnership  units were sold and marketed  through the use of false and
         misleading statements.

         On February 24, 1997,  after the Court again  preliminarily  approved a
         settlement of the California  Action but again  ultimately  declined to
         grant final  approval,  the Court  recused  itself from  considering  a
         motion to intervene and to file a new complaint in  intervention by two
         of the objectors to the Revised Settlement,  granted the request of one
         plaintiffs' law firm to withdraw as class counsel and scheduled  future
         hearings on various matters.

         Thereafter,  the  Intervening  Plaintiffs  filed  and then  revised  an
         Amended  Consolidated Class Action and Derivative Action Complaint (the
         Second Amended Consolidated  Complaint) which asserts substantially the
         same claims as the  Consolidated  Complaint,  eliminates  certain legal
         infirmities  from  that  Consolidated  Complaint,   and  presents  more
         detailed  factual  allegations.  The General  Partners believe that the
         Second  Amended  Consolidated  Complaint  continues  to be  subject  to
         challenge  on legal  grounds and have filed  demurrers  and a motion to
         strike.  These matters likely will be heard and determined by the court
         in early September 1997.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997

                          NOTES TO FINANCIAL STATEMENTS

 7       COMMITMENTS AND CONTINGENCIES (CONTINUED)

         The Limited  Partnership  Agreement provides for indemnification of the
         General  Partners and their  affiliates in certain  circumstances.  The
         Partnership  has agreed to  reimburse  the General  Partners  for their
         actual costs  incurred in defending  this  litigation  and the costs of
         preparing settlement materials.  Through December 31, 1996, the General
         Partners had billed the Partnership a total of $824,510 for these costs
         which was paid in February 1997.

         The General  Partners  believe that each of the claims  asserted in the
         Consolidated   Complaint  are  meritless  and  intend  to  continue  to
         vigorously defend the California  Action. It is impossible at this time
         to predict  what the defense of the  California  Action will cost,  the
         Partnership's  financial  exposure  as a result of the  indemnification
         agreement  discussed  above,  and whether the costs of defending  could
         adversely affect the Managing General  Partner's ability to perform its
         obligations to the Partnership.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

Working capital reserves are temporarily invested in short-term instruments and,
together with cash flow from  operations,  are expected to be sufficient to fund
future capital  improvements  to the  Partnership's  properties.  As of June 30,
1997, total working capital reserves amounted to approximately  $3,426,000.  The
Partnership  intends to  distribute  to its partners less than all of its future
cash flow from  operations  in order to assure  adequate  reserves  for  capital
improvements and capitalized lease procurement costs.

During the six months ended June 30, 1997, cash and cash  equivalents  increased
$341,215  as a result of cash  provided  by  operations  in  excess  of  capital
expenditures and distributions to partners.  The Partnership's primary source of
funds is cash flow  from the  operation  of its  properties,  principally  rents
received from  tenants,  which  amounted to $1,383,840  for the six months ended
June 30, 1997. The Partnership used $474,190 for capital expenditures related to
capital and tenant improvements to the properties and $568,435 for distributions
to partners for the six months ended June 30, 1997.

The  Partnership  expects to continue to utilize a portion of its cash flow from
operations to pay for various capital and tenant  improvements to the properties
and leasing commissions. Capital and tenant improvements and leasing commissions
may in the future exceed the  Partnership's  cash flow from operations.  In that
event, the Partnership  would utilize the remaining  working capital reserves or
sell one or more properties.

RESULTS OF OPERATIONS

The  Partnership  experienced  an  increase  in net income for the six and three
months  ended June 30, 1997  compared to the same  periods in the prior year due
primarily to slightly higher rental revenues, interest income, and other income,
partially offset by higher costs and expenses during 1997.

Rental revenues increased at Southport and 568 Broadway during the six and three
months ended June 30, 1997 compared to 1996,  primarily due to higher percentage
rents  collected  during  the  second  quarter  of 1997 at  Southport  and lease
renewals at 568  Broadway at rates  higher than those in 1996.  These  increases
were  partially  offset by lower rental  revenues at Westbrook  for both current
periods, primarily due to lower occupancy rates in the current period.

Costs and expenses increased during the six and three months ended June 30, 1997
compared  to  the  same  periods  in  1996,  primarily  due  to an  increase  in
administrative expenses, which increased due to higher legal and accounting fees
related to ongoing litigation and the HEP settlement.

Interest  income  increased due to higher cash balances during the six and three
months ended June 30, 1997  compared to the same  periods in 1996.  Other income
increased  during the six and three months  ended June 30, 1997  compared to the
same periods in 1996 due to a greater number of investor transfers.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

Inflation  is not  expected  to  have a  material  impact  on the  Partnership's
operations or financial position.

Legal Proceedings

The  Partnership is a party to certain  litigation.  See Note 7 to the financial
statements for a description thereof.
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                           Part II. Other Information

Item 1 - Legal Proceedings

         (a)      See   Management's   Discussion   and  Analysis  of  Financial
                  Condition  and Results of  Operations  and Notes to  Financial
                  Statements - Note 7 which is herein incorporated by reference.

Item 5 - Other Events

         On July 25, 1997, Wexford Management LLC ("Wexford"), the administrator
         for  Presidio  Capital  Corp.  ("Presidio"),   the  parent  company  of
         Resources  High Equity,  Inc. and Presidio AGP Corp.,  the Managing and
         Associate General Partners,  respectively, of Integrated Resources High
         Equity  Partners,  Series 85, A California  Limited  Partnership,  (the
         "Partnership"),  received notice from Presidio  Holding  Company,  LLC,
         which stated that it was the holder of 63% of the  outstanding  Class A
         common shares of Presidio,  and that it was seeking to remove the three
         current Class A directors and replace them with Edward  Scheetz,  David
         Hamamoto  and David King  effective  as of 12:00 p.m. on  September  2,
         1997. There exists  substantial  doubt as to the  effectiveness of such
         notice.  On August 15, 1997,  Presidio applied to the Judge of the High
         Court in the British Virgin Islands for a declaration  that the written
         resolution of Presidio  Holding LLC dated July 25, 1997 was invalid and
         of no effect  insofar as it purports to be a written  resolution of the
         Class A Members of Presidio.

         As of August 18, 1997, there have been no changes in the composition of
         the  officers or directors of the general  partners.  In addition,  the
         administrative services agreement with Wexford remains in effect and is
         scheduled to terminate in November 1997.

Item 6   Exhibits and Reports on Form 8K

         (a)      Exhibits: There were no exhibits filed.

         (b)      Reports on Form 8K:  None
<PAGE>
               INTEGRATED RESOURCES HIGH EQUITY PARTNERS, SERIES 85
                            FORM 10-Q - JUNE 30, 1997


                                   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.



                                               Integrated Resources High Equity
                                               Partners, Series 85,
                                               A California Limited Partnership




                                         By:   Resources High Equity, Inc.,
                                               Managing General Partner




Dated:   August 18, 1997                 By:   /S/ Joseph M. Jacobs
                                               --------------------
                                               Joseph M. Jacobs
                                               President
                                               (Duly Authorized Officer)




Dated:   August 18, 1997                 By:   /S/ Jay L. Maymudes
                                               -------------------
                                               Jay L. Maymudes
                                               Vice President, Secretary
                                               and Treasurer
                                               (Principal Financial and
                                               Accounting Officer)