SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                   FORM 10-Q
(Mark One)

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

For the quarterly period ended June 30, 1997
                               -------------
                                      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 0-16712
                       -------

                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
            -------------------------------------------------------
            (Exact name of registrant as specified in its charter)

          Delaware                                      36-3451878
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

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

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

Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes   X    No 
   ----      ----
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                                BALANCE SHEETS
                      June 30, 1997 and December 31, 1996
                                  (Unaudited)

                                    ASSETS

                                                  1997            1996
                                             -------------   -------------
Cash and cash equivalents                    $  1,402,848    $  1,166,719
Accounts and accrued interest receivable            5,921         287,012
                                             -------------   -------------
                                             $  1,408,769    $  1,453,731
                                             =============   =============

                       LIABILITIES AND PARTNERS' CAPITAL

Accounts payable                                             $      2,474
Due to affiliates                            $     17,749          37,570
                                             -------------   -------------
     Total liabilities                             17,749          40,044
                                             -------------   -------------

Commitments and contingencies

Unitholders' capital (996,146 Units
  issued and outstanding)                       1,471,687       1,479,687

General Partner's deficit                         (80,667)        (66,000)
                                             -------------   -------------
     Total partners' capital                    1,391,020       1,413,687
                                             -------------   -------------
                                             $  1,408,769    $  1,453,731
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the six months ended June 30, 1997 and 1996
                                  (Unaudited)

                                                  1997            1996
                                             -------------   -------------
Income:
  Rental and service                                         $  1,417,209
  Interest on short-term investments         $     33,265           5,378
                                             -------------   -------------
    Total income                                   33,265       1,422,587
                                             -------------   -------------
Expenses:
  Interest on mortgage note payable                               415,507
  Interest on short-term loan 
    payable - affiliate                                            30,771
  Depreciation                                                    391,877
  Amortization                                                     15,930
  Property operating                                              492,153
  Real estate taxes                                               119,684
  Property management fees                                         69,609
  Incentive partnership management fees                            11,206
  Administrative                                   55,932          79,833
                                             -------------   -------------
    Total expenses                                 55,932       1,626,570
                                             -------------   -------------
Loss before affiliate's participation 
  in joint venture                                (22,667)       (203,983)

Affiliate's participation in loss 
  from joint venture                                                  230
                                             -------------   -------------
Net loss                                     $    (22,667)   $   (203,753)
                                             =============   =============
Net loss allocated to General Partner        $    (14,667)   $     (2,038)
                                             =============   =============
Net loss allocated to Unitholders            $     (8,000)   $   (201,715)
                                             =============   =============
Net loss per Unit (996,146 issued
  and outstanding)                           $      (0.01)   $      (0.20)
                                             =============   =============
Distributions to General Partner                     None    $      1,246
                                             =============   =============
Distributions to Unitholders                         None    $    149,422
                                             =============   =============
Distributions per Unit                               None    $       0.15
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                 for the quarters ended June 30, 1997 and 1996
                                  (Unaudited)

                                                  1997            1996
                                             -------------   -------------
Income:
  Rental and service                                         $    715,441
  Interest on short-term investments         $     17,900           2,844
                                             -------------   -------------
    Total income                                   17,900         718,285
                                             -------------   -------------
Expenses:
  Interest on mortgage note payable                               207,520
  Interest on short-term                        
    loan payable - affiliate                                       15,367
  Depreciation                                                    195,938
  Amortization                                                      7,965
  Property operating                                              244,711
  Real estate taxes                                                51,097
  Property management fees                                         34,698
  Incentive partnership management fee                              5,603
  Administrative                                   34,453          42,003
                                             -------------   -------------
    Total expenses                                 34,453         804,902
                                             -------------   -------------
Loss before affiliate's participation 
  in joint venture                                (16,553)        (86,617)
                                                              
Affiliate's participation in loss
  from joint venture                                                   67
                                             -------------   -------------
Net loss                                     $    (16,553)   $    (86,550)
                                             =============   =============
Net loss allocated to General Partner        $     (8,553)   $       (866)
                                             =============   =============
Net loss allocated to Unitholders            $     (8,000)   $    (85,684)
                                             =============   =============
Net loss per Unit (996,146 issued
  and outstanding)                           $      (0.01)   $      (0.08)
                                             =============   =============
Distribution to General Partner                      None    $        623
                                             =============   =============
Distribution to Unitholders                          None    $     74,711
                                             =============   =============
Distribution per Unit                                None    $      0.075
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                           STATEMENTS OF CASH FLOWS
                for the six months ended June 30, 1997 and 1996
                                  (Unaudited)

                                                  1997            1996
                                             -------------   -------------
Operating activities:
  Net loss                                   $    (22,667)   $   (203,753)
  Adjustments to reconcile net loss to net
    cash provided by operating activities:
      Affiliate's participation in loss 
        from joint venture                                           (230)
      Depreciation of property                                    391,877
      Amortization of deferred expenses                            15,930
      Accrued interest expense due at
        maturity - affiliate                                       30,771
      Net change in:
        Accounts and accrued interest
          receivable                              281,091
        Escrow deposits                                            19,266
        Prepaid expense                                           (43,998)
        Accounts payable                           (2,474)         (5,939)
        Due to affiliates                         (19,821)         10,555
        Accrued liabilities                                       (11,661)
        Security deposits                                          (5,990)
                                             -------------   -------------
  Net cash provided by operating 
    activities                                    236,129         196,828
                                             -------------   -------------
Financing activities:
  Distributions to Unitholders                                   (149,422)
  Distributions to General Partner                                 (1,246)
  Distributions to joint venture partner - 
    affiliate                                                      (4,347)
  Principal payments on mortgage note
    payable                                                       (42,880)
                                                             -------------
  Net cash used in financing activities                          (197,895)
                                                             -------------

Net change in cash and cash equivalents           236,129          (1,067)
Cash and cash equivalents at beginning
  of period                                     1,166,719         229,105
                                             -------------   -------------
Cash and cash equivalents at end of period   $  1,402,848    $    228,038
                                             =============   =============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS


1. Accounting Policies:

(a) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the six months
and quarter ended June 30, 1997, and all such adjustments are of a normal and
recurring nature.

(b) For financial statement purposes, in previous years partners were allocated
income and loss in accordance with the profit and loss percentages in the
Partnership Agreement. In order for the capital accounts of the General Partner
and Unitholders to appropriately reflect their respective remaining economic
interests as provided for in the Partnership Agreement, the General Partner was
allocated additional loss in 1997 for financial statement purposes.

2. Partnership Termination:

The Partnership Agreement provides for the dissolution of the Partnership upon
the disposition of all its interests in real estate. The Partnership sold the
Autumn Woods Apartments in August 1996. A portion of the proceeds from the sale
were distributed to Unitholders in October 1996. The Partnership retained a
portion of the cash to satisfy obligations of the Partnership as well as
establish a reserve for contingencies.  The timing of the termination of the
Partnership and final distribution of cash will depend upon the nature and
extent of liabilities and contingencies which continue to exist and which may
also arise. Such contingencies currently consist primarily of legal and other
fees stemming from litigation involving the Partnership including the lawsuit
discussed in Note 5 of Notes to Financial Statements. Due to this litigation,
the Partnership will not be dissolved and reserves will be held by the
Partnership until the conclusion of all contingencies. There can be no
assurances as to the time frame for conclusion of these contingencies.

3. Interest Expense:

During the six months ended June 30, 1996, the Partnership incurred and paid
interest expense on the mortgage note payable of $415,507.
<PAGE>
4. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
six months and quarter ended June 30, 1997 are:   

                                           Paid
                                    ----------------------
                                     Six Months    Quarter      Payable
                                    ------------  ---------    ----------     
   Reimbursement of expenses to
     the General Partner, at cost   $31,855        $28,411     $17,749


In conjunction with the May 1993 financing of Autumn Woods Apartments, the
monthly debt service payments due on the first mortgage loan were required to
be funded by advances from the General Partner through December 16, 1994, at
which time the General Partner loan became due, and was extended. The General
Partner loan and accrued interest were repaid in full in August 1996 from
proceeds received in connection with the sale of Autumn Woods Apartments.
During the six months ended June 30, 1996, the Partnership incurred interest
expense on this loan of $30,771. Interest expense was computed at the American
Express Company cost of funds rate plus a spread to cover administrative costs.
As of June 30, 1996, this rate was 5.911%. 

5. Contingency:

The Partnership is currently involved in a lawsuit whereby the Partnership and
certain affiliates have been named as defendants alleging certain federal
securities law violations with regard to the adequacy and accuracy of
disclosures of information concerning, as well as the marketing efforts related
to, the offering of the Units of the Partnership. The defendants continue to
vigorously contest this action. A plaintiff class has not yet been certified,
and no determination of the merits have been made. It is not determinable at
this time whether or not an unfavorable decision in this action would have a
material adverse impact on the financial position, operations and liquidity of
the Partnership. The Partnership believes it has meritorious defenses to
contest the claims.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS

Balcor Current Income Fund-87 A Real Estate Limited Partnership (the
"Partnership") is a limited partnership formed in 1986 to invest in and operate
income-producing real property. The Partnership raised $14,942,190 from sales
of Limited Partnership Depositary Units and utilized these proceeds to acquire
a joint venture interest in Autumn Woods Apartments. Autumn Woods Apartments
was sold in August 1996.

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1996 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Property operations ceased during 1997 due to the sale of Autumn Woods
Apartments in August 1996 which was generating a loss for financial statement
purposes. As a result, the Partnership's net loss decreased during 1997 as
compared to 1996. Further discussion of the Partnership's operations is
summarized below.

1997 Compared to 1996
---------------------

Unless otherwise noted, discussions of fluctuations between 1997 and 1996 refer
to the six months and quarters ended June 30, 1997 and 1996.

As a result of the sale of Autumn Woods Apartments in August 1996, rental and
service income, interest expense on mortgage note payable, depreciation
expense, amortization expense, property operating expense, real estate tax
expense and property management fees ceased during 1996.

As a result of higher average cash balances due to proceeds retained by the
Partnership from the sale of the Autumn Woods Apartments, interest income on
short-term investments increased during 1997 as compared to 1996.

The General Partner loan was repaid in August 1996 from a portion of the
proceeds received from the sale of Autumn Woods Apartments. As a result,
interest expense on short-term loan payable - affiliate ceased during 1996.

Incentive partnership management fees earned by the General Partner, which were
based on Net Cash Receipts, ceased as a result of the sale of Autumn Woods
Apartments during 1996.
<PAGE>
Primarily as a result of decreased portfolio management fees, administrative
expenses decreased during 1997 when compared to 1996.

As a result of the sale of Autumn Woods Apartments in 1996, affiliate's
participation in loss of joint venture ceased in 1996.

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

The cash position of the Partnership increased by approximately $236,000 as of
June 30, 1997 when compared to December 31, 1996. Operating activities
generated cash of approximately $236,000 which consisted of the collection of
an account receivable related to property insurance proceeds and interest
income on short-term investments which were partially offset by the payment of
administrative expenses.  

Since inception, Unitholders have received distributions of Net Cash Receipts
of $6.73 and Net Cash Proceeds of $4.51 totaling $11.24 per $15.00 Unit as well
as certain tax benefits. Unitholders will not recover all of their original
investment. Since inception, the General Partner has received distributions of
Net Cash Receipts totaling $55,044. The General Partner has not and will not
receive any distributions of Net Cash Proceeds. 
 
The Partnership has retained a portion of the cash from the sale of the Autumn
Woods Apartments to satisfy obligations of the Partnership as well as establish
a reserve for contingencies. The timing of the termination of the Partnership
and final distribution of cash will depend upon the nature and extent of
liabilities and contingencies which continue to exist and which may also arise.
Such contingencies currently consist primarily of legal and other fees stemming
from litigation involving the Partnership including the lawsuit discussed in
Note 5 of Notes to Financial Statements. Due to this litigation, the
Partnership will not be dissolved and reserves will be held by the Partnership
until the conclusion of all contingencies. There can be no assurances as to the
time frame for conclusion of these contingencies.
<PAGE>
                         BALCOR CURRENT INCOME FUND-87
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (A Delaware Limited Partnership)

                          PART II - OTHER INFORMATION


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

(a) Exhibits:

(4) Form of Subscription Agreement set forth as Exhibit 4.1 to Amendment No. 2
to the Registrant's Registration Statement on Form S-11 dated December 17, 1986
(Registration No. 33-7858) and Form of Confirmation regarding Depositary Units
in the Registrant set forth as Exhibit 4.2 to the Registrant's Report on Form
10-Q for the quarter ended September 30, 1992 (Commission File No. 0-16712) are
incorporated herein by reference.

(10) Agreement of Sale and letter dated July 12, 1996 relating to the sale of
Autumn Woods Apartments previously filed as Exhibits (2)(a) and (b) to the
Registrant's Current Report on Form 8-K dated July 5, 1996, is incorporated
herein by reference.

(27) Financial Data Schedule of the Registrant for the six month period ended
June 30, 1997 is attached hereto.

(b)  Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended June 30, 1997.
<PAGE>
SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                              BALCOR CURRENT INCOME FUND-87
                              A REAL ESTATE LIMITED PARTNERSHIP



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



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


Date:  August 11, 1997
      ---------------------
<PAGE>