<PAGE>

================================================================================

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549-1004

                               -----------------

                                   FORM 10-Q

                               -----------------

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

    For the period ended March 31, 2002

                                      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 0-12538

                First Capital Institutional Real Estate, Ltd.-1
            (Exact name of registrant as specified in its charter)

<TABLE>
          <S>                                      <C>
                          Florida                      59-2197264
              (State or other jurisdiction of       (I.R.S. Employer
               incorporation or organization)      Identification No.)

                 Two North Riverside Plaza,            60606-2607
                         Suite 700,                    (Zip Code)
                     Chicago, Illinois
          (Address of principal executive offices)
</TABLE>

                                (312) 207-0020
             (Registrant's telephone number, including area code)

                                Not applicable
  (Former name, former address and former fiscal year, if changed since last
                                    report)

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 [_]

Documents incorporated by reference:

The First Amended and Restated Certificate and Agreement of Limited Partnership
filed as Exhibit A to the definitive Prospectus dated October 25, 1982,
included in the Registrant's Registration Statement on Form S-11 (Registration
No. 2-79092), is incorporated herein by reference in Part I of this report.

================================================================================

<PAGE>

BALANCE SHEETS
(All dollars rounded to nearest 00s)


<TABLE>
<CAPTION>
                                          March 31,
                                            2002     December 31,
                                         (Unaudited)     2001
               <S>                       <C>         <C>
               --------------------------------------------------

               ASSETS
               Cash and cash equivalents $4,120,400   $4,131,900
               Other assets                   6,600        7,800
               --------------------------------------------------
                                         $4,127,000   $4,139,700
               --------------------------------------------------
               LIABILITIES AND PARTNERS' CAPITAL
               Liabilities:
                Accounts payable and
                  accrued expenses       $   36,400   $   34,800
                Due to Affiliates             3,800        3,500
                Other liabilities             2,300        2,300
               --------------------------------------------------
                                             42,500       40,600
               --------------------------------------------------
               Partners'capital:
                General Partners            615,000      615,100
                Limited Partners (60,000
                  Units issued and
                  outstanding)            3,469,500    3,484,000
               --------------------------------------------------
                                          4,084,500    4,099,100
               --------------------------------------------------
                                         $4,127,000   $4,139,700
               --------------------------------------------------
</TABLE>

STATEMENTS OF PARTNERS' CAPITAL
For the quarter ended March 31, 2002 (Unaudited)
and the year ended December 31, 2001
(All dollars rounded to nearest 00s)

<TABLE>
<CAPTION>
                                     General    Limited
                                     Partners   Partners     Total
          <S>                        <C>       <C>         <C>
          ------------------------------------------------------------
          Partners' capital,
            January 1, 2001          $614,600  $3,434,700  $4,049,300
          Net income for the
            year ended
            December 31, 2001             500      49,300      49,800
          ------------------------------------------------------------
          Partners' capital,
            December 31, 2001         615,100   3,484,000   4,099,100
          Net (loss) for the quarter
            ended March 31, 2002         (100)    (14,500)    (14,600)
          ------------------------------------------------------------
          Partners' capital,
            March 31, 2002           $615,000  $3,469,500  $4,084,500
          ------------------------------------------------------------
</TABLE>

                                                                             3
   The accompanying notes are an integral part of the financial statements.

<PAGE>

STATEMENTS OF INCOME AND EXPENSES
For the quarters ended March 31, 2002 and 2001
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)

<TABLE>
<CAPTION>
                                                   2002     2001
             -----------------------------------------------------
             <S>                                 <C>       <C>
             Income:
              Interest                           $ 19,300  $55,900
             -----------------------------------------------------
             Expenses:
              General and administrative:
                Affiliates                          2,800    1,600
                Nonaffiliates                      31,100   24,800
             -----------------------------------------------------
                                                   33,900   26,400
             -----------------------------------------------------
             Net (loss) income                   $(14,600) $29,500
             -----------------------------------------------------
             Net (loss) income allocated to
               General Partners                  $   (100) $   300
             -----------------------------------------------------
             Net (loss) income allocated to
               Limited Partners                  $(14,500) $29,200
             -----------------------------------------------------
             Net (loss) income allocated to
               Limited Partners per Unit (60,000
               Units outstanding)                $  (0.24) $  0.49
             -----------------------------------------------------
</TABLE>

STATEMENTS OF CASH FLOWS
For the quarters ended March 31, 2002 and 2001
(Unaudited)
(All dollars rounded to nearest 00s)

<TABLE>
<CAPTION>
                                                 2002        2001
           ---------------------------------------------------------
           <S>                                <C>         <C>
           Cash flows from operating
             activities:
            Net (loss) income                 $  (14,600) $   29,500
            Adjustments to reconcile net
              (loss) income to net cash
              (used for) provided by
              operating activities:
              Changes in assets and
                liabilities:
                Decrease in other
                  assets                           1,200          --
                Increase in accounts
                  payable and accrued
                  expenses                         1,600      10,700
                Increase in due to
                  Affiliates                         300         600
           ---------------------------------------------------------
                  Net cash (used for)
                    provided by
                    operating activities         (11,500)     40,800
           ---------------------------------------------------------
                  Net cash from
                    investing activities              --          --
           ---------------------------------------------------------
                  Net cash from
                    financing activities              --          --
           ---------------------------------------------------------
           Net (decrease) increase in cash
             and cash equivalents                (11,500)     40,800
           ------------------------------------------------------
           Cash and cash equivalents at
             the beginning of the period       4,131,900   4,084,100
           ---------------------------------------------------------
           Cash and cash equivalents at
             the end of the period            $4,120,400  $4,124,900
           ---------------------------------------------------------
</TABLE>


4
   The accompanying notes are an integral part of the financial statements.

<PAGE>

NOTES TO FINANCIAL STATEMENTS
(Unaudited)
March 31, 2002



1. Summary of significant accounting policies:

Definition of special terms:
Capitalized terms used in this report have the same meaning as those terms have
in the Partnership's Registration Statement filed with the Securities and
Exchange Commission on Form S-11. Definitions of these terms are contained in
Article III of the First Amended and Restated Certificate and Agreement of
Limited Partnership, which is incorporated herein by reference.

Accounting policies:
The Partnership has disposed of its real estate properties. Upon resolution of
the environmental matter disclosed in Note 3, the Partnership will make a
liquidating distribution to Partners and dissolve.

The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States ("GAAP"). The Partnership
utilizes the accrual method of accounting. Under this method, revenues are
recorded when earned and expenses are recorded when incurred.

Preparation of the Partnership's financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.

The financial information included in these financial statements is unaudited;
however, in management's opinion, all adjustments (consisting of only normal,
recurring accruals) necessary for a fair presentation of the results of
operations for the periods included have been made. Results of operations for
the three months ended March 31, 2002 are not necessarily indicative of the
operating results for the year ending December 31, 2002.

Cash equivalents are considered all highly liquid investments with maturity of
three months or less when purchased.

The Partnership has one reportable segment as the Partnership is in the
disposition phase of its life cycle, wherein it is seeking to resolve
post-closing matters related to the properties sold by the Partnership.

Reference is made to the Partnership's annual report for the year ended
December 31, 2001, for a description of other accounting policies and
additional details of the Partnership's financial condition, results of
operations, changes in Partners' capital and changes in cash balances for the
year then ended. The details provided in the notes thereto have not changed
except as a result of normal transactions in the interim or as otherwise
disclosed herein.

2. Related party transactions:

In accordance with the Partnership Agreement, subsequent to March 31, 1983, the
Termination of the Offering, the General Partners are entitled to 10% of Cash
Flow (as defined in the Partnership Agreement) as their Subordinated
Partnership Management Fee, provided that Limited Partners first receive
specified non-cumulative annual rates of return on their Capital Investment.

In accordance with the Partnership Agreement, Net Profits (exclusive of
depreciation and Net Profits from the sale or disposition of Partnership
properties) are allocated: first, to the General Partners, in an amount equal
to the greater of the General Partners' Subordinated Partnership Management Fee
or 1% of such Net Profits; and second, the balance, if any, to the Limited
Partners. Net Profits from the sale or disposition of a Partnership property
are allocated: first, to the General Partners, in an amount equal to the
aggregate amount of depreciation previously allocated to them; second, to the
General Partners and the Limited Partners with negative balances in their
capital accounts pro rata in proportion to such respective negative balances,
to the extent of the total of such negative balances; third, to the General
Partners, in an amount necessary to make the aggregate amount of their capital
accounts equal to the greater of the Sale Proceeds to be distributed to the
General Partners with respect to the sale or disposition of such property or 1%
of such Net Profits; and fourth, the balance, if any, to the Limited Partners.
Net Losses (exclusive of depreciation and Net Losses from the sale, disposition
or provision for value impairment of Partnership properties) are allocated 1%
to the General Partners and 99% to the Limited Partners. All depreciation is
allocated 10% to the General Partners and 90% to the Limited Partners. Net
Losses from the sale, disposition or provision for value impairment of
Partnership properties are allocated: first, to the extent that the balance in
the General Partners' capital accounts exceeds their Capital Investment or the
balance in the capital accounts of the Limited Partners exceeds the amount of
their Capital Investment (collectively, the "Excess Balances"), to the General
Partners and the Limited Partners pro rata in proportion to such Excess
Balances until such Excess Balances are reduced to zero; second, to the General
Partners and the Limited Partners and among them (in the ratio which their
respective capital account balances bear to the aggregate of all capital
account balances) until the balance in their capital accounts shall be reduced
to zero; third, the balance, if any, 99% to the Limited Partners and 1% to the
General Partners. In all events there shall be allocated to the General
Partners not less than 1% of Net Profits and Net Losses from the sale,
disposition or provision for value impairment of a Partnership property. The
General Partners were not entitled to cash distributions for the three months
ended March 31, 2002 and 2001. For the three months ended March 31, 2002 and
2001, the General Partners were allocated Net (Losses) Profits of $(100) and
$300, respectively.

Fees and reimbursements paid and payable by the Partnership to Affiliates as of
March 31, 2002 were as follows:

<TABLE>
                    <S>                        <C>    <C>
                    Reimbursement of expenses,
                      at cost
                     --Accounting              $1,000 $1,500
                     --Investor communications  1,500  2,300
                    ----------------------------------------
                    Total                      $2,500 $3,800
                    ----------------------------------------
</TABLE>


                                                                             5

<PAGE>

3. Environmental matter:

In 1996, the Managing General Partner became aware of the existence of
hazardous substances in the soil and groundwater under Lakewood Square Shopping
Center ("Lakewood"). In connection with the 1997 sale of Lakewood, the
purchaser assumed the obligation to remedy the hazardous substances in the
manner required by law, which includes, but is not limited to, payment of all
costs in connection with the remediation work. In addition, the purchaser
provided the Partnership with certain indemnification protection in relation to
clean-up costs and related expenses arising from the presence of these
hazardous substances. At the present time, the Managing General Partner is
unaware of any claims or other matters referred to above against the
Partnership. The California Regional Water Quality Control Board has approved
the purchaser's revised remedial action plan (the "Plan") for the site. The
remediation is scheduled to begin in 2002, provided the proper permits are
obtained. There can be no assurance as to the timing of successful completion
of the Plan. The Managing General Partner continues to monitor the
documentation delivered by the purchaser regarding the purchaser's activities
to remedy the hazardous substances
at Lakewood.


TRANSFER AGENT AND REGISTRAR
The Bank of New York
P.O. Box 7090
Troy, Michigan 48007-7090
(800) 447-7364
                                                      [LOGO] First Capital
                                                      Institutional Real
                                                      Estate, Ltd.-1

                                                                [Graphic]



                                                      sponsored by FIRST
                                                      CAPITAL FINANCIAL LLC

                                                            Two North Riverside
                                                      Plaza

                                                            Chicago, Illinois
                                                      60606

<PAGE>

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

Reference is made to the Partnership's Annual Report for the year ended
December 31, 2001 for a discussion of the Partnership's business.

Statements contained in this Management's Discussion and Analysis of Financial
Condition and Results of Operations, which are not historical facts, may be
forward-looking statements. Such statements are subject to certain risks and
uncertainties, which could cause actual results to differ materially from those
projected. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.

The Partnership has substantially completed the disposition phase of its life
cycle. The Partnership has sold its remaining property investments and is
working toward resolution of post closing property sale matters.

Operations
Net income (loss) changed from $29,500 for the three months ended March 31,
2001 to $(14,600) for the three months ended March 31, 2002. The change was
primarily due to a decrease in interest earned on the Partnership's short-term
investments, which was due to a decrease in the rates earned on those
investments.

Liquidity and Capital Resources
The decrease in the Partnership's cash position of $11,500 during the three
months ended March 31, 2002 was due to net cash used for by operating
activities. Liquid assets, including cash and cash equivalents, as of March 31,
2002 were comprised of amounts reserved for the Lakewood environmental matter
(as hereafter discussed) and Partnership liquidation expenses.

Net cash provided by (used for) operating activities changed from $40,800 for
the three months ended March 31, 2001 to $(11,500) for the three months ended
March 31, 2002. The change was primarily the result of the change in net
results, as previously discussed. In addition the change was due to the timing
of the payment of certain Partnership expenses.

The Partnership has no financial instruments for which there are significant
market risks.

As described in Note 3 of Notes to Financial Statements, the Partnership is
awaiting resolution of an environmental matter at Lakewood. The Managing
General Partner is continuing to monitor the documentation delivered by the
purchaser of Lakewood regarding the purchaser's activities to remedy the
hazardous substances at Lakewood. There can be no assurance as to the actual
timeframe for the remediation or that it will be completed without cost to the
Partnership. As a result of this, it will be necessary for the Partnership to
remain in existence. When the environmental matter at Lakewood is
satisfactorily remediated, Limited Partners will receive a final liquidating
distribution of the remaining cash held by the Partnership, less amounts
reserved for administrative expenses and any amounts deemed necessary to
resolve, or provide for, any post closing matters.

2

<PAGE>

PART II. OTHER INFORMATION

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits: None

(b) Reports on Form 8-K:

There were no reports filed on Form 8-K for the three months ended March 31,
2002.

                                                                             7

<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.

                                          FIRST CAPITAL INSTITUTIONAL REAL
                                            ESTATE, LTD.-1

                                          By: FIRST CAPITAL FINANCIAL LLC
                                             MANAGING GENERAL PARTNER

                                                /s/  DOUGLAS CROCKER II
Date: May 10, 2002
                                          By: _______________________________
                                                     DOUGLAS CROCKER II
                                               President and Chief Executive
                                                          Officer

                                                 /s/  PHILIP G. TINKLER
Date: May 10, 2002
                                          By: _______________________________
                                                     PHILIP G. TINKLER
                                                Vice President--Finance and
                                                         Treasurer

8