March 30, 2000



United States

Securities and Exchange Commission
Washington, D.C.  20549


RE:   McCombs Realty Partners
      Form 10-KSB
      File No. 0-14570

To Whom it May Concern:

The  accompanying  Form 10-KSB for the year ended  December 31, 1999 describes a
change in the method of  accounting to  capitalize  exterior  painting and major
landscaping,   which  would  have  been  expensed  under  the  old  policy.  The
Partnership believes that this accounting principle change is preferable because
it  provides a better  matching  of  expenses  with the  related  benefit of the
expenditures and it is consistent with industry practice and the policies of the
General Partner.

Please do not hesitate to contact the undersigned with any questions or comments
that you might have.

Very truly yours,



Stephen Waters
Real Estate Controller

                  FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER

                               SECTION 13 OR 15(d)

                                   Form 10-KSB

(Mark One)
[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934 [No Fee Required]

                    For the fiscal year ended December 31, 1999

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 [No Fee Required]

                For the transition period from _________to _________

                         Commission file number 0-14570

                              MCCOMBS REALTY PARTNERS
                   (Name of small business issuer in its charter)

         California                                              33-0068732
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                      (Address of principal executive offices)

                      Issuer's telephone number (864) 239-1000

           Securities registered under Section 12(b) of the Exchange Act:

                                      None

           Securities registered under Section 12(g) of the Exchange Act:

                      Units of Limited Partnership Interest

                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes X No___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  Partnership's  knowledge  in  definitive  proxy or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [ ]

State issuer's revenues for its most recent fiscal year.  $1,501,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 1999. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None

                                     PART I

Item 1.     Description of Business

McCombs Realty  Partners  ("Partnership"  or  "Registrant")  is a  publicly-held
limited  partnership  organized under the California Uniform Limited Partnership
Act on June 22, 1984. The Partnership's general partner is CRPTEX, Inc., a Texas
Corporation  (the "General  Partner" and formerly  known as Capital Realty Group
Property, Inc.). The General Partner is a subsidiary of Apartment Investment and
Management  Company  ("AIMCO").  The  Partnership  Agreement  provides  that the
Partnership  is to terminate on December 31, 2030,  unless  terminated  prior to
such date.

The Partnership sold 22,036 units of Limited Partnership  Interest ("Units") for
$11,018,000  in a public  offering that began  December 1984 and ended  December
1985.  Since its initial  offering,  the Registrant  has received  approximately
$730,000 of additional capital contributions from limited partners. In addition,
under the Partnership's  1988 Plan of Reorganization  (see "Item 6. Management's
Discussion  and  Analysis or Plan of  Operation"),  the General  Partner  made a
$14,500  capital  contribution.  The  Partnership  is engaged in the business of
operating  and  holding  real estate  property  for  investment.  All of the net
proceeds  from  the  offering  were  expended  in 1985 for the  acquisition  and
operation  of one  apartment  complex  (Lakewood at Pelham)  (formerly  known as
Pelham Place) located in Greenville, South Carolina, as well as office complexes
(Airport  Business  Center and Crown Center)  located in Georgia and California.
Airport Business Center was foreclosed upon by the lender in September 1987, and
Crown Center was  foreclosed  upon by the lender in April 1988.  At December 31,
1999, the  Partnership's  sole investment  property was Lakewood at Pelham.  See
"Item 2. Description of Property" for a further description of the Partnership's
investment property.

The  original  general  partners  of  the  Partnership  were  McCombs  Corp.,  a
California  corporation and EP Partners V, a California General Partnership (the
"Original  General   Partners").   Upon  final   confirmation  of  the  Plan  of
Reorganization  (effective  January 25, 1989),  CRPTEX,  Inc.  (then called A.B.
Capital  Property,  Inc.)  became the new  General  Partner  of the  Partnership
retroactively effective to January 1, 1988.

The Registrant has no employees. Property management and administrative services
are provided by the General Partner and affiliates.

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Partnership's  property.  The number and quality of competitive  properties,
including  those which may be managed by an affiliate of the General  Partner in
such  market  area  could have a  material  effect on the rental  market for the
apartments at the  Partnership's  property and the rents that may be charged for
such apartments. While the General Partner and its affiliates own and/or control
a  significant  number of  apartment  units in the  United  States,  such  units
represent an  insignificant  percentage of total  apartment  units in the United
States and competition for the apartments is local.

Both the income and expenses of operating the property owned by the  Partnership
are subject to factors outside of the Partnership's  control, such as changes in
supply  and  demand  for  similar  properties   resulting  from  various  market
conditions, increases/decreases in unemployment or population shifts, changes in
the  availability of permanent  mortgage  financing,  changes in zoning laws, or
changes in patterns or needs of users. In addition,  there are risks inherent in
owning  and  operating  residential   properties  because  such  properties  are
susceptible  to the  impact of  economic  and other  conditions  outside  of the
control of the Partnership.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations  might adversely  affect the property
owned by the Partnership.

The  Partnership  monitors its property for evidence of  pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further description of the Partnership's business is included in "Management's
Discussion and Analysis or Plan of Operation"  included in "Item 6" of this Form
10-KSB.

Transfer of Control

On September 21, 1994, Capital Realty Group, Corporation ("CRGC"), the parent of
the General Partner,  entered into a Stock Purchase Agreement ("Agreement") with
Insignia  Financial  Group,  Inc.  ("Insignia")  and  several of its  affiliates
whereby  Metropolitan  Asset  Enhancement,   L.P.,  an  affiliate  of  Insignia,
purchased  affiliates of CRCG including the General Partner of the  Partnership.
Under the terms of the  Agreement,  affiliates of Insignia  commenced  providing
property  management and  administrative  services to the  Partnership  upon HUD
approval of the Agreement. The Agreement became effective November 30, 1994, and
the name of the General Partner of the Partnership was changed to CRPTEX, Inc.

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia and Insignia  Properties Trust merged into AIMCO, a
publicly  traded real estate  investment  trust,  with AIMCO being the surviving
corporation (the "Insignia Merger").  As a result, AIMCO acquired 100% ownership
interest in the General Partner.  The General Partner does not believe that this
transaction has had or will have a material effect on the affairs and operations
of the Partnership.

Item 2.     Description of Property

The following table sets forth the Partnership's investment in property:

                                   Date of
Property                           Purchase      Type of Ownership        Use

Lakewood at Pelham                   01/85   Fee ownership subject to  Apartment
  Greenville, South Carolina                 first mortgage (1)        271 units

(1)   The  property is held by a limited  partnership  in which the  Partnership
      owns a 100% interest.

Schedule of Property:

Set forth  below for the  Partnership's  property is the gross  carrying  value,
accumulated depreciation,  depreciable life, method of depreciation, and Federal
tax basis.

<TABLE>
<CAPTION>

                           Gross
                          Carrying   Accumulated                         Federal
Property                   Value    Depreciation     Rate    Method     Tax Basis
                              (in thousands)                         (in thousands)
<S>                        <C>         <C>          <C>         <C>      <C>

Lakewood at Pelham
  Greenville, South

  Carolina                $ 6,199      $ 3,723       3-25      S/L       $1,501
</TABLE>

See  "Note B" to the  consolidated  financial  statements  included  in "Item 7.
Financial Statements" for a description of the Partnership's depreciation policy
and "Note I - Change in Accounting Principle".

Schedule of Property Indebtedness:

The  following  table  sets  forth  certain  information  relating  to the  loan
encumbering the Registrant's property.

<TABLE>
<CAPTION>

                         Principal                                        Principal
                         Balance At     Stated                             Balance
                        December 31,   Interest    Period    Maturity       Due At
Property                    1999         Rate     Amortized    Date      Maturity (2)
                       (in thousands)                                   (in thousands)
<S>                       <C>            <C>         <C>     <C>           <C>

Lakewood at Pelham

  1st mortgage            $ 5,606        8.1%        (1)     07/01/05      $ 5,151
</TABLE>

(1)  The principal balance is amortized over 30 years with a balloon payment due
     July 1, 2005.

(2)  See "Item 7. Financial Statements, Note  D" for information with respect to
     the  Partnership's  ability to  repay  this loan and other specific details
     about the loan.


<PAGE>


Schedule of Rental Rate and Occupancy:

Average  annual  rental rates and  occupancy  for 1999 and 1998 for the property
were as follows:

                                    Average Annual               Average Annual
                                      Rental Rate                  Occupancy
                                      (per unit)
 Property                         1999            1998          1999        1998

 Lakewood at Pelham             $5,634          $5,750          96%          90%

The General  Partner  attributes the increase in occupancy at Lakewood at Pelham
to increased marketing efforts and a stronger local economy.

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  The property of the  Partnership is subject to competition
from other  residential  apartment  complexes in the area.  The General  Partner
believes that the property is adequately  insured.  The property is an apartment
complex  which leases units for terms of one year or less.  No tenant leases 10%
or more  of the  available  rental  space.  The  property  is in  good  physical
condition,  subject to normal  depreciation and  deterioration as is typical for
assets of this type and age.

Schedule of Real Estate Taxes and Rates:

Real estate taxes and rates in 1999 for the property were as follows:

                                                1999            1999
                                               Billing          Rate
                                           (in thousands)

       Lakewood at Pelham                        $82            1.48%

Capital Improvements:

Lakewood at Pelham

During  1999,  the  Partnership  expended  approximately  $227,000  for  capital
improvements  at  Lakewood  at  Pelham,   consisting   primarily  of  structural
improvements, carpet and vinyl replacement, major landscaping, exterior building
painting, and tennis court improvements. These improvements were funded from the
Partnership's  operating  cash flow and reserves.  The  Partnership is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount to be  budgeted is expected to be $300 per unit or $81,300.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  or  from  Partnership   reserves.   Partnership  reserves  are
sufficient to cover the estimated costs of the capital  improvements planned for
the year 2000.  However,  the  Partnership  does not have  sufficient  assets to
fulfill its  obligation  under the Plan of  Reorganization  ("Plan") and in fact
defaulted on its  obligations  due October 20, 1998.  See "Item 6.  Management's
Discussion and Analysis or Plan of Operation" for detail as to the Partnership's
Plan  with  respect  to  meeting  its  short  term  needs  under  the  Plan.  No
distributions  were  declared or paid during  either of the twelve  months ended
December 31, 1999 or 1998, and none are expected in the future.

Item 3.     Legal Proceedings

The Partnership is unaware of any pending or outstanding  litigation that is not
of a routine nature arising in the ordinary course of business.

Item 4.     Submission of Matters to a Vote of Partners

During the quarter ended  December 31, 1999, no matters were submitted to a vote
of the Unit holders through the solicitation of proxies or otherwise.


<PAGE>


                                     PART II

Item 5.     Market for the Registrant's Units of Limited Partnership and Related
            Partner Matters

As of  December  31,  1999,  the number of  holders  of record of the  17,196.39
Limited Partnership Units ("Units") was 1,217. Affiliates of the General Partner
owned 744 units or 4.33% at December  31,  1999.  No public  trading  market has
developed  for the  Units,  and it is not  anticipated  that such a market  will
develop in the future.  No distributions  were made in 1999 or 1998, nor are any
expected  in the  future,  as certain  priority  claims  will be  required to be
satisfied per the Partnership's Plan of  Reorganization.  See further discussion
in "Item 6. Management's Discussion and Analysis or Plan of Operation" below.

Several tender offers were made by various parties,  including affiliates of the
General  Partner,  during the year ended December 31, 1999. As a result of these
tender  offers,  AIMCO and its  affiliates  currently  own 744 units of  limited
partnership  interest in the Partnership  representing  4.33% of the outstanding
units.  It is  possible  that  AIMCO  or its  affiliates  will  make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters.  When
voting on matters, AIMCO would in all likelihood vote the Units it acquired in a
manner  favorable  to the  interest  of the  General  Partner  because  of their
affiliation with the General Partner.

Item 6.     Management's Discussion and Analysis or Plan of Operation

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-KSB and the other  filings  with the  Securities  and
Exchange  Commission made by the Registrant from time to time. The discussion of
the Registrant's business and results of operations,  including  forward-looking
statements  pertaining to such matter, does not take into account the effects of
any changes to the Registrant's business and results of operation.  Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

This  item  should  be read  in  conjunction  with  the  consolidated  financial
statements and other items contained elsewhere in this report.

Results of Operations

The  Partnership's  net  income  for the  year  ended  December  31,  1999,  was
approximately  $54,000 compared to a net loss of  approximately  $95,000 for the
year ending December 31, 1998. The increase in net income for 1999 was due to an
increase  in total  revenues a decrease  in total  expenses  and the  cumulative
effect  on prior  years  of a  change  in  accounting  for the cost of  exterior
painting and major landscaping (see discussion below).  Total revenues increased
due to an increase in rental income, which was partially offset by a decrease in
other income.  Rental income increased as a result of the improved  occupancy at
the property,  which more than offset the decrease in the average  rental rates,
as well as a decrease in concessions.  Other income  decreased  primarily due to
decreases in corporate unit income and tenant charges.  Total expenses decreased
primarily due to decreases in operating and general and administrative expenses.
Operating  expense  decreased  primarily  due  to  a  decrease  during  1999  in
maintenance  expenses due to the completion of repair and  maintenance  projects
during 1998.  General and  administrative  expenses  decreased  primarily due to
reduced  reimbursements  to  the  General  Partner.   Included  in  general  and
administrative  expenses  for the years ended  December  31, 1999 and 1998,  are
reimbursements  to the General Partner  allowed under the Partnership  Agreement
associated with its management of the Partnership. In addition, costs associated
with the  quarterly and annual  communications  with  investors  and  regulatory
agencies and the annual audit  required by the  Partnership  Agreement  are also
included.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies  of the  General  Partner.  The  effect  of the  change  in 1999 was to
increase  net  income  before  the change by  approximately  $48,000  ($2.73 per
limited  partnership  unit). The cumulative  effect  adjustment of approximately
$25,000  is the  result of  applying  the  aforementioned  change in  accounting
principle  retroactively  and is  included  in income  for  1999.  The pro forma
amounts shown on the statements of operations  have been adjusted for the effect
of retroactive  application of this change. The accounting principle change will
not have an  effect on cash  flow,  funds  available  for  distribution  or fees
payable to the General Partner and affiliates.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market environment of its investment  property to assess the
feasibility of increasing rents,  maintaining or increasing occupancy levels and
protecting the Partnership from increases in expenses. As part of this plan, the
General  Partner  attempts  to  protect  the  Partnership  from  the  burden  of
inflation-related  increases in expenses by increasing  rents and  maintaining a
high overall occupancy level. However, due to changing market conditions,  which
can  result in the use of rental  concessions  and rental  reductions  to offset
softening market conditions, there is no guarantee that the General Partner will
be able to sustain such a plan.

Liquidity and Capital Resources

At  December  31,  1999,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $593,000 compared to approximately $350,000 at December 31, 1998.
Cash  and  cash   equivalents   increased   approximately   $243,000   from  the
Partnership's year ended December 31, 1998. The increase is due to approximately
$332,000 of cash provided by operating  activities which was partially offset by
approximately  $26,000 of cash used in investing  activities  and  approximately
$63,000 of cash used in financing activities.  Cash used in investing activities
consisted of property  improvements  and  replacements  partially  offset by net
receipts from escrow accounts  maintained by the mortgage  lender.  Cash used in
financing activities consisted of principal payments on the mortgage encumbering
the Partnership's property. The Partnership invests its working capital reserves
in money market accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating  needs of the Registrant and to comply with Federal,  state,
and local legal and regulatory  requirements.  The capital  improvements will be
incurred only if cash is available from operations or from Partnership reserves.
To the  extent  that such  budgeted  capital  improvements  are  completed,  the
Partnership's  distributable  cash flow,  if any, may be  adversely  affected at
least in the short term.  The  Partnership  is currently  evaluating the capital
improvement  needs of the property for the upcoming  year. The minimum amount to
be budgeted is expected to be $300 per unit or approximately $81,300. Additional
improvements may be considered and will depend on the physical  condition of the
property as well as replacement  reserves and anticipated cash flow generated by
the property.

The additional  capital  expenditures will be incurred only if cash is available
from  operations  or  from  Partnership   reserves.   Partnership  reserves  are
sufficient to cover the estimated costs of the capital  improvements planned for
the year 2000.  However,  the  Partnership  does not have  sufficient  assets to
fulfill its  obligation  under the Plan of  Reorganization  ("Plan") and in fact
defaulted on its  obligations  due October 20, 1998.  See  discussion  below for
detail as to the Partnership's Plan with respect to meeting its short term needs
under the Plan.  No  distributions  were  declared or paid during  either of the
twelve  months  ended  December  31, 1999 or 1998,  and none are expected in the
future.

On March 9, 1987, the original general partners of the Partnership, on behalf of
the  Partnership,  filed a voluntary  petition  under  Chapter 11 of the Federal
Bankruptcy  Code  in U.S.  Bankruptcy  Court,  Central  District  of  California
("Court").  The  Partnership  continued as  Debtor-In-Possession  to operate its
business in the ordinary course until the Court confirmed the Partnership's Plan
effective  October 25, 1988.  The Plan was  approved by all required  classes of
creditors.

The Plan required that the  Partnership  make the following  payments on October
20, 1998:

          1)   First,  all existing  creditors,  except  prebankruptcy  Class 12
               creditors ($23,100), would be satisfied;

          2)   Limited  Partners,   both  original  and  substitute,   who  made
               additional capital  contributions  under the plan would receive a
               repayment of the additional  contributions totaling approximately
               $730,000;

          3)   Class 12 creditors would be paid claims aggregating $23,100;

          4)   Limited Partners who made additional  capital  contributions  and
               were original Limited Partners would receive a repayment of their
               original capital contributions totaling approximately $9,818,000;

          5)   Limited   Partners   who  did   not   make   additional   capital
               contributions  would  receive a repayment  of  one-third of their
               original capital contributions (i.e., one-third of $1,200,000).

All other claims provided for in the Plan then  outstanding were settled on June
25,  1995  when  the  Partnership  refinanced  the  then  outstanding  mortgages
encumbering the property.

Additionally,  the Plan required CRPTEX, Inc. to make a capital  contribution of
$14,500 and loan or expend an additional  $117,500 on behalf of the  Partnership
on an as-needed basis. The Partnership received the $14,500 capital contribution
but has not required the additional $117,500.

To attempt to satisfy its remaining  obligations under the Plan, the Partnership
would be  required  to sell the  investment  property.  As an  alternative,  the
Partnership  could seek  authorization  from the Limited  Partners to extend the
payment date of October 20, 1998 to a future period.  The limited  partners were
approached  in  August  1998  and  asked  to  either   approve  a  sale  of  the
Partnership's  sole  investment  property or for the General Partner to petition
the  Bankruptcy  Court for an extension  of the  settlement  date.  The required
fifty-one  percent  response  was not  received.  As a result,  the  Partnership
defaulted on its  obligations  which were due on October 20,  1998.  The General
Partner is continuing to see that the  Partnership  operates its business in the
ordinary  course  while it  evaluates  the best  course  of  action  to  follow.
Additionally,   the   Partnership's   mortgage   indebtedness  of  approximately
$5,606,000  at December  31,  1999,  matures in July 2005,  and would  require a
property sale or  refinancing at that time.  However,  there can be no assurance
that these courses of action will be successful  and that the  Partnership  will
have sufficient funds to meet its obligations in 2000 or beyond.

Tender Offers

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender  offers,  AIMCO and its  affiliates  currently  own 744 units of
limited  partnership interest in the  Partnership   representing  4.33%  of  the
outstanding  units. It is possible that AIMCO or its affiliates will make one or
more additional offers to acquire  additional limited  partnership  interests in
the Partnership  for cash or in exchange for units in the operating  partnership
of AIMCO. Under the Partnership Agreement, unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters.  When
voting on matters, AIMCO would in all likelihood vote the Units it acquired in a
manner  favorable  to the  interest  of the  General  Partner  because  of their
affiliation with the General Partner.

Year 2000 Compliance

General Description

The Year 2000 issue is the result of computer  programs  being written using two
digits rather than four digits to define the applicable year. The Partnership is
dependent  upon the  General  Partner  and its  affiliates  for  management  and
administrative services ("Managing Agent"). Any of the Managing Agent's computer
programs or hardware that had  date-sensitive  software or embedded  chips might
have  recognized  a date using "00" as the year 1900  rather than the year 2000.
This  could  have  resulted  in a  system  failure  or  miscalculations  causing
disruptions of operations,  including, among other things, a temporary inability
to process  transactions,  send invoices,  or engage in similar normal  business
activities.

Computer Hardware, Software and Operating Equipment

In 1999,  the Managing  Agent  completed  all phases of its Year 2000 program by
completing  the  replacement  and repair of any  hardware or software  system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant.  To date, no material  failure or erroneous  results have occurred in
the Managing Agent's computer  applications  related to the failure to reference
the Year 2000.

Third Parties

To  date,  the  Managing  Agent  is not  aware of any  significant  supplier  or
subcontractor  (external agent) or financial institution of the Partnership that
has a Year 2000 issue that  would  have a material  impact on the  Partnership's
results of operations,  liquidity or capital  resources.  However,  the Managing
Agent  has no means of  ensuring  or  determining  the Year 2000  compliance  of
external  agents.  At this time, the Managing Agent does not believe that a Year
2000 issue of any  non-compliant  external agent will have a material  impact on
the Partnership's financial position or results of operations.

Costs

The total cost of the Managing Agent's Year 2000 project was approximately  $3.2
million and was funded from operating cash flows.

Risks Associated with the Year 2000

The Managing  Agent  completed all necessary  phases of its Year 2000 program in
1999,  and did not  experience  system or  equipment  malfunctions  related to a
failure to reference the Year 2000. The Managing  Agent or Partnership  have not
been  materially  adversely  effected by  disruptions  in the economy  generally
resulting from the Year 2000 issue.

At this  time,  the  Managing  Agent  does not  believe  that the  Partnership's
businesses,  results of  operations  or financial  condition  will be materially
adversely effected by the Year 2000 issue.

Contingency Plans Associated with the Year 2000

The  Managing  Agent has not had to implement  contingency  plans such as manual
workarounds or selecting new relationships for its banking or elevator operation
activities in order to avoid the Year 2000 issue.

Item 7.     Financial Statements

MCCOMBS REALTY PARTNERS

LIST OF FINANCIAL STATEMENTS


      Report of KPMG LLP, Independent Auditors

      Consolidated Balance Sheet - December 31, 1999

      Consolidated Statements of Operations - Years ended December 31, 1999 and
      1998

      Consolidated  Statements  of Changes in  Partners'  Capital (Deficit) -
      Years  ended December 31, 1999 and 1998

      Consolidated Statements of Cash Flows - Years ended December 31, 1999 and
      1998

      Notes to Consolidated Financial Statements


<PAGE>


                    Report of KPMG LLP, Independent Auditors

The Partners
McCombs Realty Partners:


We have audited the  accompanying  consolidated  balance sheet of McCombs Realty
Partners (a California  limited  partnership)  as of December 31, 1999,  and the
related  consolidated  statements of  operations,  changes in partners'  capital
(deficit)  and cash  flows for each of the years in the  two-year  period  ended
December  31,   1999.   These   consolidated   financial   statements   are  the
responsibility of the partnership's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We  conducted  our  audits  in  accordance  with  generally   accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all material  respects,  the  financial  position of McCombs  Realty
Partners as of December 31, 1999, and the results of its operations and its cash
flows for each of the years in the two-year  period ended  December 31, 1999, in
conformity with generally accepted accounting principles.

The accompanying  consolidated  financial statements have been prepared assuming
that McCombs Realty  Partners will continue as a going concern.  As discussed in
Note A to the consolidated  financial  statements,  the Partnership was required
under its Plan of Reorganization to pay claims to limited partners and creditors
of  approximately  $11,000,000  during 1998. The  Partnership  defaulted on this
obligation  in 1998.  This  raises  substantial  doubt  about the  Partnership's
ability to continue as a going  concern.  Management's  plans in regard to these
matters are also described in Note A. The consolidated  financial  statements do
not  include  any  adjustments  that  might  result  from  the  outcome  of this
uncertainty.

As discussed in Note I to the consolidated financial statements, the Partnership
changed its method of accounting to capitalize the cost of exterior painting and
major landscaping effective January 1, 1999.

                                                                     /s/KPMG LLP

Greenville, South Carolina
February 11, 2000


<PAGE>





                             MCCOMBS REALTY PARTNERS

                           CONSOLIDATED BALANCE SHEET

                          (in thousands, except unit data)

                                December 31, 1999
<TABLE>
<CAPTION>

Assets
<S>                                                           <C>           <C>

   Cash and cash equivalents                                                 $  593
   Receivables and deposits                                                     114
   Restricted escrows                                                           221
   Other assets                                                                 120
   Investment property (Notes D and G):
      Land                                                    $   499
      Buildings and related personal property                   5,700
                                                                6,199

      Less accumulated depreciation                            (3,723)        2,476
                                                                            $ 3,524

Liabilities and Partners' Capital (Deficit)

Liabilities

      Accounts payable                                                       $  147
      Tenant security deposit liabilities                                        19
      Accrued property taxes                                                     82
      Other liabilities                                                          73
      Mortgage note payable (Note D)                                          5,606

Partners' Capital (Deficit)

   General Partner                                              $ 1
   Limited partners (17,196.39 units issued and
      outstanding)                                             (2,404)       (2,403)
                                                                            $ 3,524

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>

<PAGE>


                             MCCOMBS REALTY PARTNERS

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                          (in thousands, except unit data)


<TABLE>
<CAPTION>
                                                           Years Ended December 31,
<S>                                                           <C>          <C>
                                                              1999         1998
Revenues:
   Rental income                                             $ 1,390      $ 1,265
   Other income                                                  111          131
      Total revenues                                           1,501        1,396

Expenses:
   Operating                                                     580          609
   General and administrative                                     85           97
   Depreciation                                                  249          224
   Interest                                                      475          481
   Property taxes                                                 83           80
      Total expenses                                           1,472        1,491

Income (loss) before cumulative effect of a change in
   accounting principle                                           29          (95)

Cumulative effect on prior years of a change in
   accounting for the costs of exterior painting and
   major landscaping (Note I)                                     25           --

Net income (loss) (Note E)                                    $   54        $ (95)

Net income (loss) allocated to general partner (1%)           $    1        $  (1)
Net income (loss) allocated to limited partners (99%)             53          (94)
                                                              $   54        $ (95)

Net income (loss) per limited partnership unit:
   Income (loss) before cumulative effect of a change in
      accounting principle                                   $  1.64       $ (5.47)
   Cumulative effect on prior years of a change in
      accounting for the costs of exterior painting and
      major landscaping                                         1.44           --

Net income (loss)                                            $  3.08      $ (5.47)

Proforma   amounts   assuming   the  new
 accounting   principle   was  applied
 retroactively:

      Net income (loss)                                      $   29       $  (109)
      Net income (loss) per limited partnership unit         $ 1.69       $ (6.28)

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>


<PAGE>


                             MCCOMBS REALTY PARTNERS

         CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                        Limited
                                       Partnership    General     Limited
                                          Units       Partner    Partners     Total
<S>                                     <C>            <C>         <C>      <C>

Partners' capital (deficit) at
  December 31, 1997                     17,199.69       $  1      $(2,363)   $(2,362)

Units abandoned                             (3.30)        --           --         --

Net loss for the year ended
  December 31, 1998                            --          (1)        (94)       (95)

Partners' deficit at

  December 31, 1998                     17,196.39          --      (2,457)    (2,457)

Net income for the year ended
  December 31, 1999                            --           1          53         54

Partners' capital (deficit) at
  December 31, 1999                     17,196.39       $   1     $(2,404)   $(2,403)

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>



                             MCCOMBS REALTY PARTNERS

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (in thousands)

<TABLE>
<CAPTION>


                                                              Years Ended December 31,
                                                                  1999        1998
Cash flows from operating activities:
<S>                                                               <C>         <C>

  Net income (loss)                                               $  54       $  (95)
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities:
     Depreciation                                                   249          224
     Amortization of loan costs                                      19           19
     Cumulative effect on prior years of change in
       accounting principle                                         (25)          --
     Change in accounts:
       Receivables and deposits                                       1          (73)
       Other assets                                                  (7)           1
       Accounts payable                                              46          (65)
       Tenant security deposit liabilities                            1           (8)
       Accrued property taxes                                         1           81
       Other liabilities                                             (7)           2

          Net cash provided by operating activities                 332           86

Cash flows from investing activities:

  Property improvements and replacements                           (139)         (56)
  Net receipts from (deposits to) restricted escrows                113          (73)

          Net cash used in investing activities                     (26)        (129)

Cash flows used in financing activities:

  Payments on mortgage note payable                                 (63)         (58)

Net increase (decrease) in cash and cash equivalents                243         (101)

Cash and cash equivalents at beginning of year                      350          451

Cash and cash equivalents at end of year                         $  593       $  350

Supplemental disclosure of cash flow information:

  Cash paid for interest                                         $  457       $  462

Supplemental disclosure of non-cash transaction:

  Property improvements and replacements in accounts              $  88       $   --
   payable

           See Accompanying Notes to Consolidated Financial Statements

</TABLE>



                             MCCOMBS REALTY PARTNERS

                     Notes to Consolidated Financial Statements

                                December 31, 1999

Note A - Going Concern

Under the Plan of Reorganization (the "Plan"; see "Note B" below) McCombs Realty
Partners (the "Partnership" or "Registrant"),  a California limited partnership,
was required to pay claims to limited  partners and  creditors of  approximately
$11,000,000 on October 20, 1998.  These claims have not been paid as of December
31,  1999.  This raises  substantial  doubt about the  Partnership's  ability to
continue as a going concern. In order to attempt to satisfy the remaining claims
under  the  Plan,  the  Partnership  would be  required  to sell the  investment
property.  As an alternative to the sale of the property,  the Partnership could
attempt  to obtain  authorization  from the Court and the  limited  partners  to
extend the settlement date of October 20, 1998, to a future period.  The limited
partners were  approached  in August 1998 and asked to either  approve a sale of
the  Partnership's  sole investment  property or for CRPTEX,  Inc. ("the General
Partner") to petition the  Bankruptcy  Court for an extension of the  settlement
date. The required fifty-one percent response was not received. As a result, the
Partnership defaulted on its obligations which were due on October 20, 1998. The
General Partner is continuing to see that the Partnership  operates its business
in the ordinary  course of business while it evaluates the best course of action
to follow. The consolidated  financial statements do not include any adjustments
that might result from the outcome of this uncertainty.

Note B - Organization and Significant Accounting Policies

Organization

The  Partnership is a  publicly-held  limited  partnership  organized  under the
California  Uniform Limited  Partnership Act on June 22, 1984. The Partnership's
general partner is CRPTEX, Inc., a Texas Corporation  (formerly known as Capital
Realty Group Property,  Inc.).  The General Partner is a subsidiary of Apartment
Investment and Management Company ("AIMCO").  The Partnership Agreement provides
that the  Partnership  is to terminate on December 31, 2030,  unless  terminated
prior to such date.

Under the Partnership  Agreement,  the maximum liability of the Limited Partners
is the amount of their capital  contributions.  Since its initial offering,  the
Partnership   has  received   approximately   $730,000  of  additional   capital
contributions from limited partners. In addition, per the Plan of Reorganization
(see below), the General Partner made a $14,500 capital contribution. There were
17,196.39 Limited Partnership units outstanding at December 31 1999 and 1998.

Prior to February 25, 1998, the General Partner was a wholly-owned subsidiary of
MAE GP Corporation  ("MAE GP").  Effective  February 25, 1998, MAE GP was merged
into  Insignia  Properties  Trust  ("IPT"),  which is an  affiliate  of Insignia
Financial  Group,  Inc.  ("Insignia").  Effective  October 1, 1998,  the General
Partner  became a subsidiary of AIMCO (see "Note C - Transfer of Control").  The
directors and officers of the General  Partner also serve as executive  officers
of AIMCO.

Plan of Reorganization

On March 9, 1987, the original general partners of the Partnership, on behalf of
the  Partnership,  filed a voluntary  petition  under  Chapter 11 of the Federal
Bankruptcy  Code  in U.S.  Bankruptcy  Court,  Central  District  of  California
("Court").  The  Partnership  continued as  Debtor-In-Possession  to operate its
business in the ordinary course until the Court confirmed the Partnership's Plan
effective  October 25, 1988.  The Plan was  approved by all required  classes of
creditors.

The Plan required that the  Partnership  make the following  payments on October
20, 1998:

          1)   First,  all existing  creditors,  except  prebankruptcy  Class 12
               creditors ($23,100), would be satisfied;

          2)   Limited  Partners,   both  original  and  substitute,   who  made
               additional capital  contributions  under the plan would receive a
               repayment of the additional  contributions totaling approximately
               $730,000;

          3)   Class 12 creditors would be paid claims aggregating $23,100;

          4)   Limited Partners who made additional  capital  contributions  and
               were original Limited Partners would receive a repayment of their
               original capital contributions totaling approximately $9,818,000;

          5)   Limited   Partners   who  did   not   make   additional   capital
               contributions  would  receive a repayment  of  one-third of their
               original capital contributions (i.e., one-third of $1,200,000).

All other claims provided for in the Plan then  outstanding were settled on June
25,  1995  when  the  Partnership  refinanced  the  then  outstanding  mortgages
encumbering the property.

Additionally,  the Plan required CRPTEX, Inc. to make a capital  contribution of
$14,500 and loan or expend an additional  $117,500 on behalf of the  Partnership
on an as-needed basis. The Partnership received the $14,500 capital contribution
but has not required the additional $117,500.

Allocation of Profits, Gains and Losses

Partnership income, gains, and losses are generally allocated 98% to the Limited
Partners,  1% to the  General  Partner,  and  1% to a  special  Limited  Partner
interest,  which percentage was subsequently  transferred to CRPTEX.  Losses are
not allocated to CRPTEX's General Partner capital balance or the special Limited
Partner capital  balance,  if the allocation of loss creates a negative  capital
balance.

Notwithstanding the above allocations,  gains from the sale or other disposition
of the Partnership's  property are allocated first to the General Partner to the
extent  distributions of sale or refinancing proceeds (as defined) are received;
next,  to  partners  with  deficit  balances  in  their  capital  accounts  and,
thereafter,  to the  partners in an amount  equal to their pro rata share of the
total capital balance.

Net income (loss) per Limited Partnership unit is based on the number of Limited
Partnership  units  outstanding  (17,196.39 in 1999 and 1998) and the net income
(loss)  allocated to the Limited  Partners in  accordance  with the  Partnership
Agreement as amended by the Plan of Reorganization.

Allocation of Cash Distributions

Prior to the effective date of the Partnership's Plan of Reorganization (October
25,  1988),  cash  available  for  distribution  (as defined in the  Partnership
Agreement)  was  distributed  90% to the Limited  Partners and 1% to the General
Partner for their  interest in profits and losses and 9% to the General  Partner
as a  partnership  management  fee,  which  was  considered  an  expense  of the
Partnership.  The  General  Partner  was  not  to  receive  the  9%  Partnership
management  fee during any year in which the  Limited  Partners  did not receive
cash   distributions   equal  to  4%  per  annum  on  their   adjusted   capital
contributions.  Adjusted capital  contributions  are defined as original capital
contributed,  less distributions constituting a return of unused capital or cash
proceeds from the sale or refinancing of Partnership  properties.  In accordance
with the Plan of  Reorganization,  CRPTEX  waived the  subordinated  Partnership
management fee in return for the ability to receive real estate commissions that
are not  subordinated  to the cumulative  return (as defined in the  Partnership
Agreement).  During  the  continuing  operations  of  the  Partnership,  if  all
transfers  contemplated by the Plan of Reorganization  are made and there exists
cash available for distribution, as defined in the Partnership Agreement, CRPTEX
shall receive 1% of same as a Partnership administration fee.

Net proceeds from the sale or refinancing of the Partnership's  property will be
distributed  in  cash  to the  Limited  Partners  who  made  additional  capital
contributions  pursuant  to  the  Partnership's  Plan  of  Reorganization  until
distributions  equal the  additional  capital  contributions.  Next, the Limited
Partners who made additional capital  contributions and who are original Limited
Partners will receive distributions equal to their capital contributions.  Next,
the Limited  Partners who did not make  additional  capital  contributions  will
receive distributions equal to one-third of their existing capital contribution.
Thereafter, 16% of the remaining proceeds shall be distributed to CRPTEX and 84%
to the Limited Partners.

Notwithstanding  the  above,  the  Plan  of  Reorganization  provides  that,  in
connection  with  distributions  resulting  from the sale or  refinancing of the
Partnership's  property,  1% of each such  distribution  that would otherwise be
paid  to the  Limited  Partners  and 1% of each  such  distribution  that  would
otherwise  be paid  to the  special  Limited  Partner  interest  will be paid to
CRPTEX.

In order to increase the  Partnership's  cash reserves to a level  sufficient to
meet  anticipated  liquidity   requirements,   CRPTEX  has  not  authorized  any
distributions to the partners during the years ended December 31, 1999 and 1998.

Principles of Consolidation

The consolidated financial statements of the Partnership include the accounts of
Pelham Place, L.P., a South Carolina limited partnership.  Pelham Place, L.P. is
the limited  partnership which holds title to Lakewood at Pelham (formerly known
as  Pelham  Place  Apartments).  Pelham  Place,  L.P.  is  wholly-owned  by  the
Partnership. All interpartnership transactions have been eliminated.

Use of Estimates

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial  statements and accompanying notes.
Actual results could differ from those estimates.

Investment Properties

The investment property is stated at cost. Acquisition fees are capitalized as a
cost of real estate.  In  accordance  with  "Statement  of Financial  Accounting
Standards  ("SFAS") No. 121,  Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to be Disposed of", the Partnership records impairment
losses on  long-lived  assets used in operations  when events and  circumstances
indicate  that the assets  might be  impaired  and the  undiscounted  cash flows
estimated to be generated by those assets are less than the carrying  amounts of
those assets.  No adjustments for impairment of value were recorded in the years
ended December 31, 1999 and 1998.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment  property and related personal  property.  For Federal income tax
purposes,  the  accelerated  cost recovery  method is used (1) for real property
over 18 years for additions after March 15, 1984, and before May 9, 1985, and 19
years for additions  after May 8, 1985,  and before January 1, 1987, and (2) for
personal  property  over 5 years for  additions  prior to January 1, 1987.  As a
result of the Tax Reform Act of 1986, for additions after December 31, 1986, the
modified  accelerated  cost recovery method is used for depreciation of (1) real
property additions over 27 1/2 years, and (2) personal property additions over 5
years.

Effective generally for property placed in service on or after May 13, 1993, the
Revenue  Reconciliation Act of 1993 increases the depreciation  period from 31.5
to 39 years,  although  transition  rules  apply to  property  placed in service
before 1994.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior painting and major landscaping (Note I).

Leases

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership recognizes income as earned on leases. The General Partner finds
it necessary to offer rental concessions  during  particularly slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged to income as incurred.

Segment Reporting

SFAS  No.  131,   "Disclosure  about  Segments  of  an  Enterprise  and  Related
Information"  established standards for the way that public business enterprises
report information about operating  segments in annual financial  statements and
requires that those  enterprises  report  selected  information  about operating
segments in interim financial reports. It also establishes standards for related
disclosures about products and services,  geographic areas, and major customers.
See "Note H" for required disclosure.

Loan Costs

Loan  costs  of  approximately  $193,000,   less  accumulated   amortization  of
approximately $87,000, are included in other assets and are being amortized on a
straight-line basis over the life of the loan.

Cash and Cash Equivalents

Cash and cash  equivalents  includes  cash on hand and in banks and money market
accounts.  At certain  times,  the amount of cash deposited at a bank may exceed
the limits on insured deposits.

Tenant Security Deposits

The Partnership  requires security deposits from lessees for the duration of the
lease and such deposits are included in receivables  and deposits.  Deposits are
refunded when the tenant vacates,  provided the tenant has not damaged its space
and is current on rental payments.

Advertising

The  Partnership  expenses the costs of  advertising  as  incurred.  Advertising
expense,  included in operating expenses,  was approximately $21,000 and $28,000
for the years ended December 31, 1999 and 1998, respectively.

Fair Value of Financial Instruments

SFAS No.  107,  "Disclosures  about Fair  Value of  Financial  Instruments",  as
amended by SFAS No. 119, "Disclosures about Derivative Financial Instruments and
Fair  Value  of  Financial  Instruments",  requires  disclosure  of  fair  value
information  about  financial  instruments,  whether  or not  recognized  in the
balance sheet, for which it is practicable to estimate fair value. Fair value is
defined in the SFAS as the amount at which the instruments could be exchanged in
a  current  transaction  between  willing  parties,  other  than in a forced  or
liquidation  sale.  The  Partnership  believes  that the carrying  amount of its
financial  instruments (except for long term debt) approximates their fair value
due to the short  term  maturity  of these  instruments.  The fair  value of the
Partnership's  long term debt, after  discounting the scheduled loan payments to
maturity, approximates its carrying balance.

Restricted Escrows

      Repair and  Remediation  Reserve:  At the time of the  refinancing  of the
      Lakewood at Pelham mortgage note payable in 1995,  $92,250 of the proceeds
      were designated for a repair and remediation  reserve for certain deferred
      maintenance. At December 31, 1999, the balance remaining in the escrow was
      approximately   $21,000.   Upon  completion  of  the  scheduled   deferred
      maintenance, any excess funds will be returned for property operations.

      Replacement Reserve: In addition to the repair and remediation reserve for
      Lakewood at Pelham, a replacement  reserve account was also established at
      the  time  of  refinancing.  This  reserve  is  to  be  used  for  capital
      replacements at the apartment  complex.  At December 31, 1999, the account
      balance was  approximately  $200,000,  which includes  interest  earned on
      these funds.

Note C - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia  Financial Group,  Inc. and Insignia Property Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation.  As a result,  AIMCO  acquired 100%  ownership
interest in the General Partner.  The General Partner does not believe that this
transaction has had or will have a material effect on the affairs and operations
of the Partnership.

Note D - Mortgage Note Payable

The principle terms of mortgage note payable is as follows:

<TABLE>
<CAPTION>

                        Principal     Monthly                            Principal
                       Balance At     Payment      Stated                 Balance
                      December 31,   Including    Interest  Maturity       Due At
Property                  1999        Interest      Rate      Date        Maturity
                            (in thousands)                             (in thousands)
<S>                        <C>           <C>        <C>      <C>          <C>

Lakewood at Pelham
  1st mortgage           $ 5,606        $ 43        8.1%    07/01/05      $ 5,151
</TABLE>

The mortgage  indebtedness  carries a stated  interest rate of 8.1% and is being
amortized over 30 years with a balloon  payment due July 1, 2005. The investment
property may not be sold subject to the existing indebtedness. Additionally, the
mortgage note requires a prepayment penalty if repaid prior to maturity.

Scheduled principal payments of the mortgage note payable subsequent to December
31, 1999 are as follows (in thousands):

                               2000             $    68
                               2001                  74
                               2002                  81
                               2003                  87
                               2004                  95
                            Thereafter            5,201
                                                $ 5,606

Note E - Income Taxes

The Partnership  received a ruling from the Internal  Revenue Service that it is
to be classified as a partnership for Federal income tax purposes.  Accordingly,
no provision for income taxes is made in the consolidated  financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The  following is a  reconciliation  of reported  net income  (loss) and Federal
taxable income (loss) (in thousands, except per unit data):

                                              1999         1998

Net income (loss) as reported               $    54       $ (95)
Add (deduct)
  Depreciation and amortization                  15         (253)
  Other                                          (1)           1

Federal taxable income (loss)               $    68       $ (347)

Federal taxable income (loss) per
 limited partnership unit                   $  3.91      $(19.97)

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of partners' deficit:

                                                       1999         1998
                                                         (in thousands)
Total partner's deficit - financial
  statement basis                                     $(2,403)    $(2,457)
Current year tax basis net income (loss)
  over financial statement net income (loss)               14        (252)
Prior year cumulative tax basis net loss
  over financial statement net income (loss)             (936)       (684)

Total partner's deficit - federal
  income tax basis                                    $(3,325)    $(3,393)

Note F - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  Partnership  Agreement  provides  for certain  payments to  affiliates  for
services and for  reimbursement  of certain  expenses  incurred by affiliates on
behalf of the Partnership.  The following  transactions with the General Partner
and its  affiliates  were incurred  during each of the years ended  December 31,
1999 and 1998 (in thousands):

                                                          1999      1998
Property management fees (included in operating
  expenses)                                               $ 76      $ 74
Reimbursement for services from affiliates
  (included in operating expenses, general and
  administrative expenses and investment properties)        46        56

During the years ended  December  31, 1999 and 1998,  affiliates  of the General
Partner were  entitled to receive 5% of gross  receipts  from the  Partnership's
investment property as compensation for providing property management  services.
The Partnership  paid to such affiliates  approximately  $76,000 and $74,000 for
the years ended December 31, 1999 and 1998, respectively.

Affiliates  of  the  General  Partner  received   reimbursement  of  accountable
administrative  expenses amounting to approximately  $46,000 and $56,000 for the
years ended December 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender  offers,  AIMCO and its  affiliates  currently  own 744 units of
limited  partnership  interest in  the Partnership  representing  4.33%  of  the
outstanding  units. It is possible that AIMCO or its affiliates will make one or
more additional offers to acquire  additional limited  partnership  interests in
the Partnership  for cash or in exchange for units in the operating  partnership
of AIMCO. Under the Partnership Agreement, unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters.  When
voting on matters, AIMCO would in all likelihood vote the Units it acquired in a
manner  favorable  to the  interest  of the  General  Partner  because  of their
affiliation with the General Partner.

Note G - Real Estate and Accumulated Depreciation

                                                  Initial Cost
                                                 To Partnership
                                                 (in thousands)
<TABLE>
<CAPTION>

                                                          Buildings
                                                         and Related        Cost
                                                                        Written Down
                                                           Personal     Subsequent to
Description                Encumbrances       Land         Property      Acquisition
                          (in thousands)                               (in thousands)
<S>                          <C>               <C>          <C>            <C>

Lakewood at Pelham           $ 5,606          $ 695        $ 6,730         $(1,226)
</TABLE>


             Gross Amount At Which Carried
                 At December 31, 1999
                    (in thousands)

<TABLE>
<CAPTION>

                       Buildings
                      And Related

                       Personal             Accumulated     Date of      Date    Depreciable
Description    Land    Property    Total    Depreciation  Construction Acquired   Life-Years
                                           (in thousands)
<S>            <C>       <C>       <C>        <C>            <C>       <C>         <C>

Lakewood at
  Pelham      $ 499     $ 5,700   $ 6,199     $ 3,723        1980       01/85       3-25
</TABLE>


Reconciliation of "Real Estate and Accumulated Depreciation":

                                              Years Ended December 31,
                                                 1999          1998
                                                   (in thousands)
Real Estate

Balance at beginning of year                    $ 5,947       $ 5,891
    Property improvements                           227            56
    Cumulative effect on prior years
      of change in accounting principle              25            --
Balance at end of year                          $ 6,199       $ 5,947

Accumulated Depreciation

Balance at beginning of year                    $ 3,474       $ 3,250
    Additions charged to expense                    249           224
Balance at end of year                          $ 3,723       $ 3,474

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  1999  and  1998,  is  approximately  $8,842,000  and  $8,615,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December  31, 1999 and 1998,  is  approximately  $7,341,000  and  $7,115,000,
respectively.

Note H - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The  Partnership  has  one  reportable  segment:   residential   property.   The
Partnership's  residential  property segment  consists of one apartment  complex
located in Greenville,  SC. The Partnership rents apartment units to tenants for
terms that are typically twelve months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those described in the summary of significant accounting policies.

Segment information for the years 1999 and 1998 is shown in the tables below (in
thousands). The "Other" column includes Partnership administration related items
and income and expense not allocated to the reportable segment.

                 1999                   Residential     Other      Totals

Rental income                             $ 1,390       $ --      $ 1,390
Other income                                  101           10        111
Interest expense                              475           --        475
Depreciation                                  249           --        249
General and administrative expense             --           85         85
Cumulative effort on prior years of
  change in accounting principle               25           --         25
Segment income (loss)                         129          (75)        54
Total assets                                3,278          246      3,524
Capital expenditures for investment
  property                                    227           --        227

                 1998                   Residential     Other      Totals

Rental income                             $ 1,265       $ --      $ 1,265
Other income                                  117           14        131
Interest expense                              481           --        481
Depreciation                                  224           --        224
General and administrative expense             --           97         97
Segment loss                                  (12)         (83)       (95)
Total assets                                3,080          324      3,404
Capital expenditures for investment
  property                                     56           --         56

Note I - Change in Accounting Principle

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies  of the  General  Partner.  The  effect  of the  change  in 1999 was to
increase  net  income  before  the change by  approximately  $48,000  ($2.73 per
limited  partnership  unit). The cumulative  effect  adjustment of approximately
$25,000  is the  result of  applying  the  aforementioned  change in  accounting
principle  retroactively  and is  included  in income  for  1999.  The pro forma
amounts shown on the statements of operations  have been adjusted for the effect
of retroactive  application of this change. The accounting principle change will
not have an  effect on cash  flow,  funds  available  for  distribution  or fees
payable to the General Partner and affiliates.

The  effect of the new  method  for each  quarter  of 1999 on net income and net
income per limited partnership unit before the cumulative effect is as follows:

                                  Increase/(decrease) in      Per limited
                                        Net income         partnership unit

         First Quarter                    $(2,000)              $(0.12)
         Second Quarter                    (2,000)               (0.12)
         Third Quarter                     (2,000)               (0.11)
         Fourth Quarter                    54,000                 3.08


Item 8.     Changes in and Disagreements  with  Accountants  on  Accounting  and
            Financial Disclosure

            None.

                                    PART III

Item 9.     Directors, Executive Officers,   Promoters   and  Control   Persons;
            Compliance with Section 16(a) of the Exchange Act

The  Partnership  has no directors  or  officers.  The names of the director and
executive  officers of CRPTEX,  Inc. (the "General Partner" and formerly Capital
Realty Group Properties,  Inc.), their ages and the nature of all positions with
CRPTEX,  Inc.  presently  held by them are set forth below.  There are no family
relationships between or among any officers or directors.

Name                        Age    Position

Patrick J. Foye              42    Executive Vice President and Director

Martha L. Long               40    Senior Vice President and Controller

Patrick J. Foye has been  Executive  Vice  President and Director of the General
Partner since October 1, 1998.  Mr. Foye has served as Executive  Vice President
of AIMCO since May 1998.  Prior to joining AIMCO,  Mr. Foye was a partner in the
law firm of Skadden,  Arps, Slate,  Meagher & Flom LLP from 1989 to 1998 and was
Managing Partner of the firm's  Brussels,  Budapest and Moscow offices from 1992
through  1994.  Mr.  Foye is also  Deputy  Chairman  of the  Long  Island  Power
Authority and serves as a member of the New York State Privatization Council. He
received a B.A.  from Fordham  College and a J.D.  from Fordham  University  Law
School.

Martha L. Long has been  Senior Vice  President  and  Controller  of the General
Partner and AIMCO since October 1998, as a result of the acquisition of Insignia
Financial Group,  Inc. From June 1994 until January 1997, she was the Controller
for Insignia, and was promoted to Senior Vice President - Finance and Controller
in January 1997,  retaining  that title until  October  1998.  From 1988 to June
1994,  Ms. Long was Senior Vice  President and  Controller for The First Savings
Bank, FSB in Greenville, South Carolina.

Based solely upon a review of Forms 3 and 4 and amendments  thereto furnished to
the Registrant  under Rule 16a-3(e) during the  Registrant's  most recent fiscal
year and Forms 5 and amendments thereto furnished to the Registrant with respect
to its most recent  fiscal year,  the  Registrant  is not aware of any director,
officer,  beneficial  owner of more than ten  percent  of the  units of  limited
partnership interest in the Registrant that failed to file on a timely basis, as
disclosed in the above Forms,  reports required by section 16(a) of the Exchange
Act during the most recent fiscal year or prior fiscal years.

Item 10.    Executive Compensation

No  remuneration  was paid to the General  Partner nor any of its  directors  or
officers during the year ended December 31, 1999.

Item 11.    Security Ownership of Certain Beneficial Owners and Management

Except as noted below, no person or entity was known by the Registrant to be the
beneficial  owner  of  more  than 5% of the  Limited  Partnership  Units  of the
Registrant as of December 31, 1999.

Entity                                  Number of Units      Percentage
AIMCO Properties L.P.
  (an affiliate of AIMCO)                     744               4.33%

AIMCO  Properties,  L.P. is indirectly  ultimately  owned by AIMCO. Its business
address is 2000 South Colorado Boulevard, Denver, Colorado 80222.

No officers or directors or CRPTEX,  Inc., own any Limited  Partnership Units in
the Partnership.

No general  partners  or  officers or  directors  of the General  Partner of the
Partnership possess the right to acquire a beneficial  ownership of interests of
the Partnership.

Item 12.    Certain Relationships and Related Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  Partnership  Agreement  provides  for certain  payments to  affiliates  for
services and for  reimbursement  of certain  expenses  incurred by affiliates on
behalf of the Partnership.  The following  transactions with the General Partner
and its  affiliates  were incurred  during each of the years ended  December 31,
1999 and 1998 (in thousands):

                                                         1999       1998

Property management fees                                 $ 76       $ 74

Reimbursement for services from affiliates                 46         56

During the years ended  December  31, 1999 and 1998,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's   investment  property  as  compensation  for  providing  property
management  services.  The  Partnership  paid to such  affiliates  approximately
$76,000  and  $74,000  for  the  years  ended   December   31,  1999  and  1998,
respectively.

Affiliates  of  the  General  Partner  received   reimbursement  of  accountable
administrative  expenses amounting to approximately  $46,000 and $56,000 for the
years ended December 31, 1999 and 1998, respectively.

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender  offers,  AIMCO and its  affiliates  currently  own 744 units of
limited  partnership  interest  in the  Partnership  representing  4.33%  of the
outstanding  units. It is possible that AIMCO or its affiliates will make one or
more additional offers to acquire  additional limited  partnership  interests in
the Partnership  for cash or in exchange for units in the operating  partnership
of AIMCO. Under the Partnership Agreement, unitholders holding a majority of the
Units are  entitled to take action  with  respect to a variety of matters.  When
voting on matters, AIMCO would in all likelihood vote the Units it acquired in a
manner  favorable  to the  interest  of the  General  Partner  because  of their
affiliation with the General Partner.

Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

            Exhibit 18, Independent Accountants' Preferability Letter for Change
            in Accounting Principle, is filed as an exhibit to this report.

            Exhibit 27, Financial Data Schedule,  is filed as an exhibit to this
            report.

      (b) Reports on Form 8-K filed in the fourth quarter of calendar year 1999:

            None.

                                   SIGNATURES

In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                    MCCOMBS REALTY PARTNERS


                                    By:   CRPTEX, Inc.
                                          General Partner


                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President and
                                          Controller

                                    Date: March 30, 2000


In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the Partnership and in the capacities and on the
dates indicated.

/s/Patrick J. Foye      Executive Vice President      Date: March 30, 2000
Patrick J. Foye         and Director


/s/Martha L. Long       Senior Vice President         Date: March 30, 2000
Martha L. Long          and Controller


                                  EXHIBIT INDEX

Exhibit

               2.1  Agreement  and Plan of Merger,  dated as of October 1, 1998,
                    by and  between  AIMCO and IPT;  filed in Current  Report on
                    Form 8-K on October 16, 1998.

10(a)             Mortgage  and Security  Agreement  dated June 29, 1995 between
                  Pelham  Place,  L.P.  and First Union  National  Bank of North
                  Carolina, securing Pelham Place Apartments, is incorporated by
                  reference  to Exhibit  10JJ(a) of the  Registrant's  Quarterly
                  Report on Form 10-QSB for the Quarter ended June 30, 1995.

  (b)             Promissory  Note dated June 29,  1995  between  Pelham  Place,
                  L.P., a South Carolina  limited  partnership,  and First Union
                  National   Bank  of  North   Carolina,   a  national   banking
                  association,  is  incorporated by reference to Exhibit 10JJ(b)
                  to the  Registrant's  Quarterly  Report on Form 10-QSB for the
                  Quarter ended June 30, 1995.

  (c)             Assignment  of Leases and Rents  dated June 29,  1995  between
                  Pelham  Place,  L.P.,  and First Union  National Bank of North
                  Carolina, securing Pelham Place Apartments, is incorporated by
                  reference  to Exhibit  10JJ(c) to the  Registrant's  Quarterly
                  Report on Form 10-QSB for the Quarter ended June 30, 1995.

  (d)             Agreement  of  Limited  Partnership  for Pelham  Place,  L.P.,
                  between   Pelham   Place,   GP,  a  South   Carolina   limited
                  partnership,  is  incorporated  by reference to Exhibit 28A to
                  the  Registrant's  Quarterly  Report on Current Report on Form
                  10-QSB for the Quarter ended June 30, 1995.

18                Independent Accountants' Preferability Letter  for  Change  in
                  Accounting Principle.

27                Financial Data Schedule.

                                                                      Exhibit 18

February 11, 2000


Mr. Patrick J. Foye
Executive Vice President
CRPTEX, Inc.
General Partner of McCombs Realty Partners
55 Beattie Place

P.O. Box 1089
Greenville, South Carolina 29602

Dear Mr. Foye:

Note I of Notes to the  Consolidated  Financial  Statements  of  McCombs  Realty
Partners  included  in its Form  10-KSB for the year  ended  December  31,  1999
describes a change in the method of accounting to capitalize  exterior  painting
and major landscaping,  which would have been expensed under the old policy. You
have advised us that you believe  that the change is to a  preferable  method in
your  circumstances  because it provides a better  matching of expenses with the
related benefit of the  expenditures  and is consistent with policies  currently
being used by your industry and conforms to the policies of the General Partner.

There are no authoritative criteria for determining a preferable method based on
the particular circumstances; however, we conclude that the change in the method
of accounting  for exterior  painting and major  landscaping is to an acceptable
alternative  method which,  based on your business  judgment to make this change
for the reasons cited above, is preferable in your circumstances.

                                                               Very truly yours,
                                                                     /s/KPMG LLP