FORM 10-Q

                SECURITIES AND EXCHANGE COMMISSION
                        Washington, D.C. 20549
                          (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, 1999

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 0-768

                GARMENT CAPITOL ASSOCIATES
(Exact name of registrant as specified in its charter)

A New York Partnership                  13-6083208
(State or other jurisdiction of 	(I.R.S. Employer
incorporation or organization)          Identification No.)

        60 East 42nd Street, New York, New York 10165
        (Address of principal executive offices)
                        (Zip Code)

                        (212) 687-8700
(Registrant's telephone number, including area code)

                                N/A
(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 [   ].

        An Exhibit Index is located on Page 12 of this Report.
        Number of pages (including exhibits) in this filing: 12




                  PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements.

                    Garment Capitol Associates
                  Condensed Statement of Income
                        (Unaudited)

                                For the Three Months         For the Six Months
                                   Ended June 30,                Ended June 30,
                                1999       1998                1999        1998
Income:
  Basic rent income, from a
   related party (Note B)       $    -0-    $    -0-        $    -0-     $  -0-
  Dividend income                    -0-         -0-             -0-        -0-
  Interest income                  2,117         -0-           4,418        -0-
                                --------    --------        --------     ------
                Total income       2,117         -0-           4,418        -0-
                                --------    --------        --------     ------
Expenses:
  Interest on mortgage               -0-         -0-             -0-        -0-
  Supervisory services, to a
      related party (Note C)         -0-         -0-             -0-        -0-
  Amortization of mortgage
    refinancing costs                -0-         -0-             -0-        -0-
  Legal and Accounting fees       38,735         -0-          43,153        -0-
                                --------     --------        --------    ------
        Total expenses            38,735         -0-          43,153        -0-
                                --------     --------        --------    ------

Net loss for period             $(36,618)   $    -0-        $(38,735)   $  -0-
                                 ========    ========        ========   ======
Earnings per $5,000
 participation unit, based on
 1,050 participation units
 outstanding during the year    $ (34.87)   $    -0-        $ (36.89)   $  -0-
                                 ========    ========        ========   ======
Distributions per $5,000
 participation consisted of
 the following:

         Income                  $    -0-   $    -0-        $    -0-    $  -0-
                                 ========   ========        ========    ======

As of June 30, 1999, the investment of the Participants had been
repaid in full but the Participants continue to hold pro rata
interests in Registrant based on the original participating interests.






                        Garment Capitol Associates
                        Condensed Balance Sheet
                                (Unaudited)


Assets                                  June 30, 1999   December 31, 1998
Escrow Account held by
  Wien & Malkin LLP                      $  169,248      $   207,983
                                         ----------      -----------
        Total Assets                        169,248          207,983
                                         ==========      ===========

Liabilities
  Accrued legal costs reserved
   re: pending litigation
   concerning sale of real estate           169,248          207,983
                                         ----------      -----------
        Total liabilities                $  169,248      $   207,983
                                         ==========      ===========
Capital
  June 30, 1999                               -0-              -0-
  December 31, 1998                           -0-              -0-
                                         ----------      -----------
	Total liabilities and capital:
          June 30, 1999                    169,248              -0-
          December 31, 1998                    -0-          207,983
					==========	===========




                                 -2-

                        Garment Capitol Associates
                Condensed Statement of Cash Flow
                          (Unaudited)

                                             January 1, 1999   January 1, 1998
                                                through              through
                                              June 30, 1999      June 30, 1998
Cash flows from operating
  activities:
	Net loss				$  (38,735)	$	-0-
	Adjustments to reconcile
	  net income to cash provided
	  by operating activities:
Amortization of mortgage
  refinancing costs                                     -0-             -0-
Gain on sale of property                                -0-             -0-
Changes in operating liabilities:
Change in accrued legal cost reserve                38,735              -0-
                                                 ----------      ---------
	Net cash provided by
          operating activities                         -0-             -0-
                                                 ----------      ---------

Cash flows from investing activities:
        Advances to lessee                             -0-             -0-
        Payments from lessee                           -0-             -0-
        Proceeds from sale of property                 -0-             -0-
                                                ----------       ---------

	Net cash provided by investing
          activities                                   -0-             -0-
                                                ----------       ---------

Cash flows from financing activities:
        Cash distributions                             -0-             -0-
        Principal payments on first mortgage           -0-             -0-
                                                ----------       ---------
	Net cash used in financing
       activities                                      -0-             -0-
                                                ----------       ---------
        Net increase in cash                           -0-             -0-

Cash, beginning of period                              -0-             -0-
                                                ----------       ---------
Cash, end of period                                    -0-             -0-
                                                ==========       =========

January 1, 1999	January 1, 1998
through	through
June 30, 1999	June 30, 1998
Cash paid for:
        Interest                                $      -0-     $       -0-
                                                ==========       =========


                            -3-

Notes to Condensed Financial Statements (Unaudited)

Note A - Basis of Presentation

         The accompanying unaudited condensed financial statements
have been prepared in accordance with the instructions to Form 10-Q
and therefore do not include all information and footnotes necessary
for a fair presentation of financial position, results of operations
and statement of cash flows in conformity with generally accepted
accounting principles.  The accompanying unaudited condensed financial
statements include all adjustments (consisting only of normal
recurring accruals) which are, in the opinion of the partners in
Registrant, necessary for a fair statement of the results for such
interim periods.  The partners in Registrant believe that the
accompanying unaudited condensed financial statements and the notes
thereto fairly disclose the financial condition and results of
Registrant's operations for the periods indicated and are adequate to
make the information presented therein not misleading.


Note B - Interim Period Reporting

         The results for the interim period are not necessarily
indicative of the results to be expected for a full year.

        Registrant was organized on January 10, 1957.  On May 1,
1957, Registrant acquired fee title to the Garment Capitol Building
(the "Building") and the land thereunder, located at 498 Seventh
Avenue, New York, New York (the "Property").  Registrant's partners
are Peter L. Malkin, Thomas N. Keltner, Jr. and Richard A. Shapiro
(collectively the "Partners"), each of whom also acts as an agent for
holders of participations in their respective partnership interests in
Registrant (the "Participants").  As described below, the Property has
been sold, Registrant has been terminated for tax purposes, and
distributions from sale proceeds have been made to the Participants.

        Registrant did not operate the Property.  Registrant leased
the Property to 498 Seventh Avenue Associates (the "Original Lessee")
under a net operating lease (the "Operating Lease") which commenced as
of May 1, 1957 and was scheduled to expire on April 30, 2007.

        In 1994 and 1995, the Original Lessee made capital calls on
its partners in the aggregate amount of $1,300,000 to defray certain
operating expenses and improvement costs at the Property.  Despite
these new capital infusions, however, the Original Lessee concluded
that to return the Property to profitability would require a very
large additional capital investment, estimated by the Original Lessee
to be as high as $16,000,000.  Therefore, on December 29, 1995, in
accordance with the terms of the Operating Lease, the Original Lessee
assigned the Operating Lease to 4987 Corporation (the "New Lessee"),
thereby effectively terminating the liability of the Original Lessee
and its partners under the Operating Lease.  The shares in the New
Lessee were owned by the partners in the Original Lessee, except that
a substantial portion of the shares originally owned by Peter L.
Malkin is held for the benefit of members of his family but he retains
voting control.

                                -4-
        The New Lessee had paid basic rent under the Operating Lease
through March 27, 1997, the date of the sale of the Property, as
hereinafter described.  Registrant applied these rents to cover (1)
its monthly mortgage payments to the Apple Bank for Savings ("Apple
Bank") on Registrants' fee mortgage on the Property (the "Mortgage
Loan"), (2) its monthly fee for supervisory services and (3) its
distributions to the Participants in Registrant.  The New Lessee did
not pay the New York City real estate taxes and Business Improvement
District ("BID") assessments in the amounts of $936,180.00 and
$29,695.14, respectively, and certain other minor assessments and
charges aggregating less than $1,500, all of which were due on January
1, 1996 or shortly thereafter.  The New Lessee also failed to pay the
New York City real estate taxes and BID assessments in the amounts of
$1,053,254.50 and $28,529.26, respectively, which were due on July 1,
1996 and $740,845.50 and $28,529.26, respectively, which were due on
January 1, 1997.  As a result, although payment of the January 1, 1996
and July 1, 1996 and January 1, 1997 real estate taxes and BID
assessments has been made as described below, the New Lessee was in
default of the Operating Lease as of January 1, 1996.

        The New Lessee requested that Registrant forbear from
exercising its rights and remedies under the Operating Lease,
including termination of the Operating Lease, by reason of the failure
to pay the January 1, 1996 and July 1, 1996 real estate taxes and BID
assessments, while management of Registrant solicited the consent of
the Participants to a sale of the Property (the "Solicitation").  On
July 26, 1996, the Partners mailed to the Participants a STATEMENT
ISSUED BY THE AGENTS IN CONNECTION WITH THE SOLICITATION OF CONSENTS
OF THE PARTICIPANTS (the "Statement") requesting their authorization
for a sale of the Property and forbearance in favor of the New Lessee.
The details of the Partners' proposal are provided in the Definitive
Proxy Statement which was filed with the Securities and Exchange
Commission as Schedule 14-A on July 25, 1996, and is incorporated
herein by reference.  If Registrant did forbear, the New Lessee agreed
to cooperate fully with Registrant in connection with the sale of the
Property and to continue to perform its other obligations under the
Operating Lease, including payment of Basic Rent, to enable Registrant
to continue its monthly distributions to the Participants, pay its
supervisory fee and pay its monthly mortgage obligation.  The
continuation of the Operating Lease was also to serve to insulate
Registrant from third party liabilities attendant on property
operations.  Because the consent solicitation program included the
continuation of the Operating Lease with the New Lessee, Registrant
did not send a notice of default under the Operating Lease based on
the failure of the New Lessee to pay the January 1, 1996 and July 1,
1996 real estate taxes and BID assessments.

        Although the failure to pay the January 1, 1996, July 1,
1996 and January 1, 1997 real estate taxes and BID assessments also
constituted a breach of Registrant's obligations under the Mortgage
Loan, Apple Bank had agreed to forbear from exercising its rights and

                                -5-

remedies during the period of the solicitation of consents through a
sale of the Property based on arrangements consummated in March 1996
between the shareholders of the New Lessee (or designees on their
behalf) and Apple Bank to fund the January 1, 1996 real estate taxes
and BID assessments and certain future real estate taxes and BID
assessments on the Property (together with the January 1, 1996 real
estate taxes, the "Real Estate Taxes") through protective advances
under the Mortgage Loan.  The shareholders of the New Lessee (or
designees on their behalf) had personally borrowed from Apple Bank (a)
on April 2, 1996, the sum of $1,012,274.18, equal to the January 1,
1996 real estate taxes and BID assessments and interest thereon to the
date of the borrowing, and certain other minor city charges and
interest aggregating less than $1,500 and (b) on June 28, 1996, the
sum of $1,081,783.76 equal to the July 1, 1996 real estate taxes and
BID assessment and (c) on December 31, 1996, the sum of $769,374.76
equal to the January 1, 1997 real estate taxes and BID assessment.
The April 2, 1996 borrowing was used to fund a protective advance by
Apple Bank to pay the January 1, 1996 real estate taxes and BID
assessments, interest thereon and such minor charges, through the
purchase of a subordinate participating interest in the Mortgage Loan
in such amount.  The June 28, 1996 and December 31, 1996 borrowings
were used to fund protective advances by Apple Bank to pay,
respectively, the July 1, 1996 and January 1, 1997 Real Estate Taxes
and BID assessments through the purchase of additional subordinate
participating interests in the Mortgage Loan in such amounts.
Interest and principal required to be paid on the protective advances
and on any future protective advances have been paid by the New
Lessee.

        On January 29, 1997, Registrant received the consent of the
Participants for the sale and forbearance program and for the
liquidation of Registrant, as described in the Statement.  See Note C
and Item 2 hereof for a description of the services rendered by, and
compensation paid to, Counsel and for a discussion of certain
relationships which may pose actual or potential conflicts of interest
among Registrant, Original Lessee, New Lessee and certain of their
respective affiliates.

        Registrant, together with the New Lessee, entered into a
contract with George Comfort & Sons, Inc., as Agent, and Tirrem
Management Company, Inc., collectively as Purchasers, to sell the
Property to the Purchasers for $42,000,000, subject to adjustments
(the "Contract of Sale").  The sale closed as of March 27, 1997.
After priority allocation for certain payments, as more particularly
described in the Statement, net sale proceeds of $34,885,810 were
allocated between Registrant and the New Lessee pursuant to the
formula described in the Statement, as approved by the Participants.
From its share of the proceeds, Registrant had made an initial
distribution on June 30, 1997 of $27,000,000 to the Participants, and
each holder of an original $10,000 Participation, as reduced to
$5,000, received an initial distribution of sale proceeds of $25,714,
which included the return of the Participant's remaining original
capital investment.  On July 23, 1997, an additional distribution of
$800,000 ($761.90 per $5,000 participation unit) was made to the
Participants out of the proceeds of sale.

                               -6-
        Based on advice from legal counsel, the partnership was
terminated for tax purposes on November 30, 1997.  At the time of
termination, Registrant was still involved in litigation.  In order to
provide for the anticipated costs of the litigation and for any other
post-closing expenses, an escrow account, in the amount of $169,248,
is being held by counsel.

Note C - Supervisory Services

        Registrant paid Counsel for supervisory services and
disbursements (i) the basic payment of $42,500 per annum ("Basic
Payment"); (ii) an additional annual basic payment of the first
$37,500 of Additional Rent paid by Lessee in any lease year
("Additional Basic Payment"); and (iii) an additional payment of 10%
of all distributions to Participants in any year from Basic Rent and
Additional Rent in excess of the amount representing a return at the
rate of 18% per annum on their remaining cash investment in any year
(the "Additional Payment").  The Additional Basic Payment was payable
in each year only from Additional Rent received by Registrant from New
Lessee.  If Additional Rent in any year was inadequate to cover the
Additional Basic Payment, such deficiency was payable in the following
year in which Additional Rent was sufficient.

        No remuneration was paid during the six month period ended
June 30, 1999 and June 30, 1998 by Registrant to any of the Partners
as such.  Legal and accounting fees for the period ended June 30, 1999
included $36,210 for services rendered by Wien & Malkin LLP.

        The supervisory services provided to Registrant by Counsel
included legal, administrative and financial services.  The legal and
administrative services included acting as general counsel to
Registrant, maintaining all of its partnership and Participant
records, performing physical inspections of the Building, reviewing
insurance coverage and conducting annual partnership meetings.
Financial services included monthly receipt of rent from the New
Lessee, payment of monthly and additional distributions to the
Participants, payment of all other disbursements, confirmation of the
payment of real estate taxes, active review of financial statements
submitted to Registrant by the New Lessee and financial statements
audited by and tax information prepared by Registrant's independent
certified public accountant, and distribution of such materials to the
Participants.  Counsel also prepares quarterly, annual and other
periodic filings with the Securities and Exchange Commission and
applicable state authorities.

        Counsel did not receive a Supervisory Fee based on sale
proceeds allocated to Registrant but has been paid for its legal
services in connection with the Statement and in connection with the
sale.  Counsel has also been paid legal fees by the New Lessee for
various work in 1996 and 1997.

        The respective interests of Messrs. Malkin, Keltner, and
Shapiro, if any, in Registrant arose solely from the ownership of
their respective participations in Registrant and Mr. Malkin's
interests in the New Lessee.  The Partners receive no extra or
special benefit not shared on a pro rata basis with all other
Participants in Registrant or partners in the New Lessee.  However,
each of the Partners, by reason of his respective interest in Counsel,
is entitled to receive his share of payments in respect of supervisory
services and in respect of any legal fees or other remuneration paid
to Counsel for legal and supervisory services rendered to Registrant
and the New Lessee.
                           -7-
Item 2.	Management's Discussion and Analysis of
Financial Condition and Results of Operations.

        Registrant was organized solely for the purposes of
acquiring the Property subject to the Operating Lease.  Registrant was
required to pay from Basic Rent the mortgage charges and supervisory
services and to distribute the balance of such Basic Rent to the
Participants.  Pursuant to the Operating Lease, the holder of the
leasehold interest thereunder had sole responsibility for the
condition, operation, repair, maintenance and management of the
Property.  Registrant did not maintain substantial reserves or
otherwise maintain liquid assets to defray any operating expenses of
the Property.  Registrant's results of operations were affected
primarily by the amount of rent payable to it under the Operating
Lease.

        Registrant is aware of the following events.  The
Original Lessee operated the Property at a substantial loss during the
years ended December 31, 1995 and December 31, 1994.  In 1994 and
1995, the Original Lessee made capital calls on its partners in the
aggregate amount of $1,300,000 to defray certain operating expenses
and improvement costs at the Property.

        The downturn and changes in methods of operations in the
garment industry had a major impact on the Property and its operations
and profitability.  Registrant had been advised that the loss of
tenants at the Property and the related reduction in rent received
were primarily due to insolvencies affecting tenants in the garment
business and reduced demand for space.

        The New Lessee had the right to abandon or assign its
interest in the Operating Lease (see Item 1 above).

        As a result of the Sale, on July 23, 1997, Registrant made a
final distribution to the Participants of the remaining sales
proceeds.  At the closing of the sale pursuant to the Contract of
Sale, the interests of Registrant, as lessor, and the New Lessee, as
lessee, under the Operating Lease were assigned to the purchaser, and
the Operating Lease was terminated.  There were no additional regular
monthly distributions following the distribution on April 1, 1997 in
respect of March 1997 rent under the Operating Lease.

                              -8-
                Liquidity and Capital Resources

                              N/A

                            Inflation

        Inflationary trends in the economy did not directly affect
Registrant's operations, since, as noted above, Registrant did not
actively engage in the operation of the Property.  Inflation may have
affected the operations of the New Lessee.  The New Lessee was
required to pay Basic Rent, regardless of the results of its
operations.  Inflation and other operating factors affected only the
amount of Additional Rent payable by the New Lessee, which was based
on the New Lessee's net operating profit.



PART II.  OTHER INFORMATION

Item 1.  Legal Proceedings.

         The Property of Registrant is the subject of the following
pending litigation:

         On October 4, 1996, the alleged holder of six participation
interests in Registrant brought suit in the U.S. District Court for
the Southern District of New York against the New Lessee, the Original
Lessee, the partners in Registrant, and Counsel.  Registrant is a
nominal defendant.  The suit claims that defendants violated the anti-
fraud provisions of the federal securities laws and committed breaches
of fiduciary duty and fraud in relation to the Solicitation.  The suit
is styled as a class action, but the plaintiff has not applied for
class certification to date.  The suit seeks to enjoin the allocation
of sale proceeds to the New Lessee approved by the Participants, money
damages and related relief.  Defendants responded to the complaint
with a motion seeking dismissal of the action in its entirety.  The
Court granted that motion and dismissed the action by order and
decision dated December 8, 1997.  Upon plaintiff's appeal of that
order, the U.S. Court of Appeals affirmed in part and reversed in part
the dismissal of the action.   The complaint does not seek any relief
against Registrant, and, accordingly, Registrant's litigation counsel
is of the opinion that no material loss or other unfavorable outcome
of the action against Registrant is anticipated.  In accordance with
the Solicitation, sale proceeds were allocated to repay the Fee
Mortgagee the protective advances as well as all other sums then
outstanding on the Fee Mortgage.  Pursuant to an agreement between
counsel for the plaintiff in the 1996 proceeding and counsel for the
defendants, net sale proceeds allocated to the New Lessee in
accordance with the formula set forth in the Solicitation will not be
distributed to the New Lessee, except upon 30 days' notice to counsel
for the plaintiff.  Such allocated proceeds are currently being held
by Counsel.

        On March 13, 1997, the alleged holder of a fractional
participation interest in Registrant brought suit in the U.S. District
Court for the Southern District of New York against New Lessee,
Original Lessee, Registrant's Partners and Counsel.  Registrant is a
nominal defendant.  The suit is essentially similar to the legal
action described in the preceding paragraph, alleging that defendants
violated the Federal proxy rules, committed breaches of fiduciary duty
and fraud in relation to the Solicitation for the sale and forbearance

                                -9-

program and for liquidation of Registrant.  The suit seeks to enjoin
the allocation of sale proceeds to New Lessee approved by the
Participants, money damages and related relief.  Defendants responded
to the complaint with a motion seeking dismissal of the action in its
entirety.  The Court granted the motion and dismissed the action by
the same order and decision dated December 8, 1997 and referred to in
the preceding paragraph.  Upon plaintiff's appeal of the order, the
U.S. Court of Appeals affirmed in part and reversed in part the
dismissal of the action.  The complaint does not seek any relief
against Registrant, and, accordingly, Registrant's litigation counsel
is of the opinion that no loss or other unfavorable outcome of the
action against Registrant is anticipated.

        On July 24, 1997, a former holder of a 1.66% partnership
interest in the Original Lessee filed a complaint in New York Supreme
Court against Registrant, Original Lessee, New Lessee and Peter L.
Malkin, individually and as a partner or shareholder in those
entities.  As against Registrant, the complaint alleges a claim for
damages or other relief based on the sale of the Property and the
allocation of sale proceeds to Registrant.  An answer for Registrant
denying all allegations of liability and damages asserted by plaintiff
has been filed.  The action is now in the pretrial discovery stage.

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

	(a)	The exhibits hereto are being incorporated by reference.

	(b)	Registrant has not filed any report on Form 8-K during the
quarter for which this report is being filed.












                                 -10-

                               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.

        The individual signing this report on behalf of Registrant
is Attorney-in-Fact for Registrant and each of the Partners in
Registrant, pursuant to Powers of Attorney, dated April 10, 1996 and
May 14, 1998 (collectively, the "Power").



GARMENT CAPITOL ASSOCIATES
(Registrant)



By:  /s/ Stanley Katzman
     Stanley Katzman, Attorney-in-fact*


Date: August 13, 1999


	Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed by the undersigned as Attorney-in-
Fact for each of the Partners in Registrant, pursuant to the Power, on
behalf of Registrant and as a Partner in Registrant on the date
indicated.



By:  /s/ Stanley Katzman
     Stanley Katzman, Attorney-in-fact*


Date: August 13, 1999










__________________________
*	Mr. Katzman supervises accounting functions for Registrant.

                                -11-
                        EXHIBIT INDEX


Number          Document                         Page*

3 (a)           Registrant's Partnership Agreement, dated
                January 10, 1957, which was filed as Exhibit
                No. 1 to Registrant's Registration Statement
                on Form S-1 as amended (the "Registration
                Statement") effective February 13, 1957 and
                assigned File No. 2-13034, is incorporated by
                reference as an exhibit hereto.

3 (b)           Amended Business Certificate of Registrant
                effective as of January 1, 1996, reflecting a
                change in the partners of Registrant, which
                was filed as Exhibit 3(b) to Registrant's
                Annual Report on Form 10-K for the year ended
                December 31, 1995 and is incorporated by
                reference as an exhibit hereto.

24  		Powers of Attorney dated April 10, 1996
                and May 14, 1998 between Partners of
                Registrant and Stanley Katzman and Richard A.
                Shapiro which were filed as Exhibit 24 to
                Registrant's 10-Q for the quarter ended June
                30, 1998 and is incorporated by reference as
                an exhibit hereto.











_____________________
*  Page references are based on a sequential numbering system.


                           -12-