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

                            FORM 10-Q



[X]    Quarterly Report Pursuant to Section 13 or 15(d) of the
       Securities Exchange Act of 1934

       For the quarterly period ended     March 31, 1997      

                                or

[ ]    Transition Report Pursuant to Section 13 or 15(d) of the
       Securities Exchange Act of 1934

       For the transition period from              to               


       Commission File Number   0-21536  

             Brauvin Corporate Lease Program IV L. P.          
      (Exact name of registrant as specified in its charter)

                   Delaware                         36 -3800611     
        (State or other jurisdiction of           (I.R.S. Employer
       incorporation or organization)           Identification No.)

  150 South Wacker Drive, Chicago, Illinois           60606  
  (Address of principal executive offices)          (Zip Code)

                          (312) 443-0922                     
       (Registrant's telephone number, including area code)

  Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.    Yes  X   No    .
<PAGE>             
                BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                 (a Delaware limited partnership)

                              INDEX
                                                                       Page
PART I Financial Information

Item 1. Consolidated Financial Statements . . . . . . . . .               3

        Consolidated Balance Sheets at March 31, 1997
        and December 31, 1996. . . . . . . . . . . . . . . .              4

        Consolidated Statements of Operations for the
        three months ended March 31, 1997 and 1996 . . . . .              5

        Consolidated Statements of Partners' Capital for
        the periods January 1, 1996 to March 31, 1997. . . .              6

        Consolidated Statements of Cash Flows for the
        three months ended March 31, 1997 and 1996 . . . . .              7

        Notes to Consolidated Financial Statements . . . . .              8

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations. . . . . . . . .             26

PART II Other Information

Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . .            35

Item 2. Changes in Securities. . . . . . . . . . . . . . . . .           39

Item 3. Defaults Upon Senior Securities. . . . . . . . . . . .           39

Item 4. Submissions of Matters to a Vote of Security Holders .           39

Item 5. Other Information . . . . . . . . . . . . . . . . . . .          39

Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . .         39

SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . .              40
<PAGE>                  
                        PART I - FINANCIAL INFORMATION



ITEM 1.  Consolidated Financial Statements

  Except for the December 31, 1996 Consolidated Balance Sheet, the
following Consolidated Balance Sheet as of March 31, 1997,
Consolidated Statements of Operations for the three months ended
March 31, 1997 and 1996, Consolidated Statements of Partners'
Capital for the periods January 1, 1996 to March 31, 1997 and
Consolidated Statements of Cash Flows for the three months ended
March 31, 1997 and 1996 for Brauvin Corporate Lease Program IV L.P.
(the "Partnership") are unaudited and have not been examined by
independent public accountants but reflect, in the opinion of the
management, all adjustments necessary to present fairly the
information required.  All such adjustments are of a normal
recurring nature.

  These consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Partnership's 1996 Annual Report on Form
10-K.

<PAGE>             
                BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                     (a Delaware limited partnership)

                   CONSOLIDATED BALANCE SHEETS

                                              March 31,  December 31,
                                               1997          1996   
ASSETS

Investment in real estate, (Note 4):
         Land                                  $ 3,991,040    $ 3,991,040     
         Buildings and improvements              9,460,590      9,460,590 
                                                13,451,630     13,451,630
         Less:  Accumulated depreciation          (965,003)      (902,615)
           Net investment in real estate        12,486,627     12,549,015
Investment in Brauvin Bay County
    Venture (Note 5)                               257,459        259,104
Cash and cash equivalents                          639,262        753,655
Investment in marketable securities                 83,240             --
Tenant receivables                                      --            325
Deferred rent receivable                           360,206        333,099
Prepaid offering costs                             175,163        175,163
Organization costs (net of
 accumulated amortization:
 1997-$29,500;1995-$28,000)                            500          2,000
Other assets                                        41,419         37,483
    Total Assets                               $14,043,876    $14,109,844     

LIABILITIES AND PARTNERS' CAPITAL

LIABILITIES:
Accounts payable and
 accrued expenses                              $    45,229    $    50,054
Rent received in advance                            46,822         47,146
   Total Liabilities                                 92,051        97,200     
MINORITY INTERESTS IN BRAUVIN 
 GWINNETT COUNTY VENTURE                            698,920       702,443     
PARTNERS' CAPITAL:
 General Partners                                    10,794        10,794
 Limited Partners                                13,242,111    13,299,407 
 Total Partners' Capital                         13,252,905    13,310,201
   Total Liabilities and 
   Partners' Capital                            $14,043,876   $14,109,844 

   See accompanying notes to consolidated financial statements.
<PAGE>             
                BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                   (a Delaware limited partnership)

             CONSOLIDATED STATEMENTS OF OPERATIONS
              For the Three Months Ended March 31,
     
                                                   1997            1996   
INCOME:
     Rental                                      $370,826        $388,593
     Interest                                      10,195           8,272
     Other                                         87,605           1,578
      Total income                                468,626         398,443

EXPENSES:
     General and administrative                    44,577          36,272
     Management fees (Note 3)                       3,984           3,645
     Amortization of organization costs             1,500           1,500
     Depreciation                                  62,388          66,034
     Valuation fees                                    --          13,500
     Transaction costs (Note 6)                     6,615              --
      Total expenses                              119,064         120,951

Income before minority and equity
     interests in joint venture                   349,562         277,492
Minority interests' share in Brauvin
     Gwinnett County Venture's net income         (15,847)        (15,843)
Equity interest in Brauvin Bay                                            
     County Venture                                 4,355              --

Net income                                       $338,070        $261,649

Net income allocated to the 
      Limited Partners                           $338,070        $261,649

Net income per Unit outstanding (a)              $   0.21        $   0.16

(a)Net income per Unit was based on the average Units outstanding
during the period since they were of varying dollar amounts and
percentages based upon the dates Limited Partners were admitted to
the Partnership and additional Units were purchased through the
distribution reinvestment plan (the "Plan").


   See accompanying notes to consolidated financial statements.

            BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                (a Delaware limited partnership)
                                
          CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
   For the periods from January 1,1996 through March 31, 1997
                                
                                       General      Limited
                                       Partners     Partners*     Total   

Balance, January 1, 1996               $10,794     $14,028,233  $14,039,027

Contributions, net                          --           5,982        5,982
Selling commissions and
 offering costs                             --          (4,918)      (4,918)
Net income                                  --         (97,221)     (97,221)
Cash distributions                          --        (632,669)    (632,669)

Balance, December 31, 1996              10,794      13,299,407   13,310,201

Net income                                  --         338,070      338,070
Cash distributions                          --        (395,366)    (395,366)

Balance March 31, 1997                 $10,794     $13,242,111  $13,252,905



*Total Units sold, including those raised through the Plan at March
31, 1997 and December 31, 1996 were 1,632,510. Cash distributions
to Limited Partners per Unit were $.24 and $0.39 for the three
months ended March 31, 1997 and the year ended December 31, 1996,
respectively.  Cash distributions to Limited Partners per Unit are
based on the average Units outstanding during the period since they
were of varying dollar amounts and percentages based upon the dates
Limited Partners were admitted to the Partnership and additional
Units were purchased through the Plan.

        See accompanying notes to consolidated financial statements.
                                 
            BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                 (a Delaware limited partnership)

              CONSOLIDATED STATEMENTS OF CASH FLOWS
               For the Three Months Ended March 31,
                                                      
                                                       1997         1996
Cash flows from operating activities:
 Net income                                         $338,070     $261,649     
 Adjustments to reconcile net income to net
 cash provided by operating activities:
  Depreciation and amortization                       63,888       67,534
  Minority interests in Brauvin Gwinnett 
   County Venture's net income                        15,847       15,843
  Equity interest in Brauvin Bay
   County Venture's net income                        (4,355)          --
  Increase in investment in
   marketable securities                             (83,240)          --
  Decrease (increase) in tenant receivable               325         (259)
  Increase in deferred rent receivable               (27,107)     (30,225)
  Decrease in due from affiliates                         --        7,627
  Increase in other assets                            (3,936)      (3,787)
  (Decrease) increase in accounts 
   payable and accrued expenses                       (4,825)       6,028
  (Decrease) increase in rent received
   in advance                                           (324)       5,867
  Decrease in due to affiliates                           --           --
  Net cash provided by operating activities          294,343      330,277

Cash flows from investing activities:
  Distribution from 
   Brauvin Bay County Venture                          6,000           --
  Cash provided by investing activities                6,000           --

Cash flows from financing activities:
  Sale of Units, net of liquidations, selling
   commissions and other offering costs                   --        1,885
  Cash distributions to Limited Partners            (395,366)    (327,397)
  Cash distribution to minority interest                               
   in Brauvin Gwinnett County Venture                (19,370)     (17,880)    
  Net cash used in financing activities             (414,736)    (343,392)
  Net decrease in cash and
   cash equivalents                                 (114,393)     (13,115)
  Cash and cash equivalents at beginning
   of period                                         753,655      711,167
  Cash and cash equivalents at end of period        $639,262    $ 698,052
                                 
  See accompanying notes to consolidated financial statements.
<PAGE>             
                BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                 (a Delaware limited partnership)

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

  ORGANIZATION

  Brauvin Corporate Lease Program IV L.P. (the "Partnership") is
a Delaware limited partnership formed on August 7, 1991 for the
purpose of acquiring debt-free ownership of existing,
income-producing retail and other commercial properties
predominantly all of which will be subject to "triple-net" leases. 
It is anticipated that these properties will be leased primarily to
corporate lessees of national and regional retail businesses,
service providers and other users consistent with "triple-net"
lease properties.  The leases will provide for a base minimum
annual rent and increases in rent such as through participation in
gross sales above a stated level, fixed increases on specific dates
or indexation of rent to indices such as the Consumer Price Index. 
The General Partners of the Partnership are Brauvin Realty Advisors
IV, Inc. and Jerome J. Brault. Brauvin Realty Advisors IV, Inc. is
owned by Messrs. Brault (beneficially)(50%) and Cezar M. Froelich
(50%).  Mr. Froelich resigned as a director of the Corporate
General Partner in December 1994 and as an Individual General
Partner effective as of September 17, 1996.  Brauvin Securities,
Inc., an affiliate of the General Partners, is the selling agent of
the Partnership.

  The Partnership filed a Registration Statement on Form S-11 with
the Securities and Exchange Commission which was declared effective
on December 12, 1991.  Per the terms of the Restated Limited
Partnership Agreement of the Partnership (the "Agreement"), the
minimum of $1,200,000 of limited partnership interests of the
Partnership (the "Units") necessary for the Partnership to commence
operations was achieved on April 27, 1992.  The Partnership's
offering was anticipated to close on December 11, 1992 but the
Partnership obtained an extension until December 11, 1993.  A total
of 1,600,831 Units were sold to the public through the offering at
$10 per Unit ($16,008,310).  Through March 31, 1997 and
December 31, 1996, the Partnership has sold $16,443,810 of Units. 
This total includes $435,100 of Units raised by Limited Partners
who utilized their distributions of Operating Cash Flow to purchase
additional Units through the Partnership's distribution
reinvestment plan (the "Plan").   Units valued at $118,706, have
been repurchased by the Partnership from Limited Partners
liquidating their investment in the Partnership and have been
retired as of March 31, 1997 and December 31, 1996.  As of March
31, 1997, the Plan participants own Units which approximate 3% of
the total Units sold.

     The Partnership has acquired the land and buildings underlying
a Steak n Shake restaurant, a Children's World Learning Center, two
Chuck E. Cheese's restaurants, a Mrs. Winner's Chicken and Biscuit
restaurant, a House of Fabrics store, a Volume ShoeSource store, an
East Side Mario's Restaurant, a Blockbuster Video Store, and a
Walden Books Store.  In addition, the Partnership has acquired a
70.2% and 24.0% equity interest in two joint ventures with three
entities affiliated with the Partnership.  These ventures own the
land and building underlying a CompUSA store and a Blockbuster
Video store.

     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Management's 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 reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period.  Actual results could differ from these estimates.

     Accounting Method

     The accompanying financial statements have been prepared using
the accrual method of accounting.


     Rental Income

     Rental income is recognized on a straight-line basis over the
life of the related leases.  Differences between rental income
earned and amounts due per the respective lease agreements are
credited or charged, as applicable, to deferred rent receivable.

     Federal Income Taxes

     Under the provisions of the Internal Revenue Code, the
Partnership's income and losses are reportable by the partners on
their respective income tax returns.  Accordingly, no provision is
made for Federal income taxes in the consolidated financial
statements.  However, in certain instances, the Partnership has
been required under applicable state law to remit directly to the
tax authorities amounts representing withholding from distributions
paid to partners.

     Consolidation of Joint Venture

     The Partnership owns a 70.2% equity interest in a joint venture,
which owns the land and the building underlying one CompUSA store. 
The accompanying financial statements have consolidated 100% of the
assets, liabilities, operations and partners' capital of Brauvin
Gwinnett County Venture.  All significant intercompany accounts
have been eliminated.

     Investment in Joint Venture

     The Partnership owns a 24% equity interest in a joint venture,
Brauvin Bay County Venture, which owns one Blockbuster Video store. 
The accompanying financial statements include the investment in
Brauvin Bay County Venture using the equity method of accounting.
     
        Investment in Real Estate

     At March 31, 1997 and December 31, 1996 the Partnership has
classified its real estate investments as held for sale in
recognition of the proposed transaction (See Note 6), and the
properties are stated at the lower of cost including acquisition
costs, or net realizable value.  Depreciation expense is computed
on a straight-line basis over approximately 39 years.

     In 1995, the Partnership adopted Statement of Financial
Accounting Standards No. 121, "Accounting for the Impairment of
Long-Lived Assets and Long-Lived Assets to be Disposed Of" (SFAS
121).  In 1996, the Partnership engaged Cushman & Wakefield
Valuation Advisory Services to prepare an appraisal of the
Partnership's properties. As a result of the reclassification of
the real estate investments to be held for sale, and based upon
this appraisal, the Partnership recorded a provision for the
impairment of assets of $857,000 (See Note 4).

     Organization and Offering Costs

     Organization costs represent costs incurred in connection with
the organization and formation of the Partnership.  Organization
costs are amortized over a period of five years using the straight-
line method.  Offering costs represent costs incurred in selling
Units, such as the printing of the Prospectus and marketing
materials, and have been recorded as a reduction of Limited
Partners' capital.

     Prepaid offering costs represent amounts in excess of the
defined percentages of the gross proceeds.  Prior to the
commencement of the Partnership's proxy solicitation (See Note 6),
gross proceeds were expected to increase due to the purchase of
additional Units through the Plan and the prepaid offering costs
would be transferred to offering costs and treated as a reduction
in Partners' Capital.
                     
     Cash and Cash Equivalents

     Cash and cash equivalents include all highly liquid debt
instruments with an original maturity within three months from date
of purchase.

     Investment in Marketable Securities

   The market value of stock received from the House of 
Fabrics, Inc. was approximately $83,200 at March 31, 1997. The
House of Fabrics stock is currently available for sale.

     Estimated Fair Value of Financial Instruments

     Disclosure of the estimated fair value of financial instruments
is made in accordance with the requirements of Statement of
Financial Accounting Standards No. 107, "Disclosures About Fair
Value of Financial Instruments."  The estimated fair value amounts
have been determined by using available market information and
appropriate valuation methodologies.  However, considerable
judgement is necessarily required in interpreting market data to
develop estimates of fair value.

     The fair value estimates presented herein are based on
information available to management as of March 31, 1997 but may
not necessarily be indicative of the amounts that the Partnership
could realize in a current market exchange.  The use of different
assumptions and/or estimation methodologies may have a material
effect on the estimated fair value amounts.  Although management is
not aware of any factors that would significantly affect the
estimated fair value amounts, such amounts have not been
comprehensively revalued for purposes of these financial statements
since that date, and current estimates of fair value may differ
significantly from amounts presented herein.

     The carrying amounts of the following items are a reasonable
estimate of fair value: cash and cash equivalents; tenant
receivables; accounts payable and accrued expenses and rent
received in advance.

     Reclassifications

     Certain reclassifications have been made to the 1996 financial 
statements to conform to classifications adopted in 1997.

(2)  PARTNERSHIP AGREEMENT

  Distributions

  All Operating Cash Flow, as defined in the Agreement, during the
period commencing with the date the Partnership accepts
subscriptions for Units totaling $1,200,000 and terminating on the
Termination Date, as defined in the Prospectus, shall be
distributed to the Limited Partners on a quarterly basis. 
Distributions of Operating Cash Flow, if available, shall be made
within 45 days following the end of each calendar quarter or are
paid monthly within 15 days of the end of the month, depending upon
the Limited Partner's preference, commencing with the first quarter
following the Termination Date.  Operating Cash Flow during such
period shall be distributed as follows:  (a) first, to the Limited
Partners until the Limited Partners receive an amount equal to a 9%
non-cumulative, non-compounded annual return on Adjusted
Investment, as defined in the Agreement, commencing on the last day
of the calendar quarter in which the Unit was purchased (the
"Current Preferred Return"); and (b) thereafter, any remaining
amounts will be distributed 98% to the Limited Partners (on a pro
rata basis) and 2% to the General Partners.

  The net proceeds of a sale or refinancing of a Partnership
property shall be distributed as follows:

    first, pro rata to the Limited Partners until each Limited
    Partner has received an amount equal to a 10% cumulative,
    non-compounded, annual return of Adjusted Investment (the
    "Cumulative Preferred Return");


    second, to the Limited Partners until each Limited Partner
    has received an amount equal to the amount of his Adjusted
    Investment, apportioned pro rata based on the amount of the
    Adjusted Investment; and

    thereafter, 95% to the Limited Partners (apportioned pro rata
    based on Units) and 5% to the General Partners.

  Profits and Losses

  Net profits and losses from operations of the Partnership
[computed without regard to any allowance for depreciation or cost
recovery deductions under the Internal Revenue Code of 1986, as
amended (the "Code")] for each taxable year of the Partnership
shall be allocated to each Partner in the same ratio as the cash
distributions received by such Partner attributable to that period
bears to the total cash distributed by the Partnership.  In the
event that there are no cash distributions, net profits and losses
from operations of the Partnership (computed without regard to any
allowance for depreciation or cost recovery deductions under the
Code) shall be allocated 99% to the Limited Partners and 1% to the
General Partners.  Notwithstanding the foregoing, all depreciation
and cost recovery deductions allowed under the Code shall be
allocated 2% to the General Partners and 98% to the Class A
Investors, as defined in the Agreement.

  The net profit of the Partnership from any sale or other
disposition of a Partnership property shall be allocated (with
ordinary income being allocated first) as follows:  (a) first, an
amount equal to the aggregate deficit balances of the Partners'
Capital Accounts, as such term is defined in the Agreement, shall
be allocated to each Partner who or which has a deficit Capital
Account balance in the same ratio as the deficit balance of such
Partner's Capital Account bears to the aggregate of the deficit
balances of all Partners' Capital Accounts;  (b) second, to the
Limited Partners until the Capital Account balances of the Limited
Partners are equal to any unpaid Cumulative Preferred Return as of
such date;  (c) third, to the Limited Partners until the Capital
Account balances of the Limited Partners are equal to the sum of
the amount of their Adjusted Investment plus any unpaid Cumulative
Preferred Return;  (d) fourth, to the General Partners until their
Capital Account balances are equal to any previously subordinated
fees; and (e) thereafter, 95% to the Limited Partners and 5% to the
General Partners.  The net loss of the Partnership from any sale or
other disposition of a Partnership property shall be allocated as
follows:  (a) first, an amount equal to the aggregate positive
balances in the Partners' Capital Accounts, to each Partner in the
same ratio as the positive balance in such Partner's Capital
Account bears to the aggregate of all Partners' positive Capital
Accounts balances; and (b) thereafter, 95% to the Limited Partners
and 5% to the General Partners.

(3)   TRANSACTIONS WITH RELATED PARTIES

     The Partnership pays an affiliate of the General Partners an
acquisition fee in the amount of up to 5% of the gross proceeds of
the Partnership's offering for the services rendered in connection
with the process pertaining to the acquisition of a property. 
Acquisition fees related to the properties not ultimately purchased
by the Partnership are expensed as incurred.

     The Partnership paid an affiliated entity a non-accountable
selling expense allowance in an amount equal to 2% of the gross
proceeds of the Partnership's offering, a portion of which may be
reallowed to participating dealers.

     In the event that the Partnership does not use more than 2% of
the gross proceeds of the offering for the payment of legal,
accounting, escrow, filing and other fees incurred in connection
with the organization or formation of the Partnership, the
Partnership may pay the General Partners any unused portion of the
2% of the gross proceeds of the offering allowed for organization
and offering expenses, not to exceed 1/2% of the gross proceeds of
the offering.  The General Partners will use such funds to pay
certain expenses of the offering incurred by them not covered by
the definition of organization and offering expenses.

     An affiliate of the General Partners provides leasing and
re-leasing services to the Partnership in connection with the
management of Partnership properties.  The property management fee
payable to an affiliate of the General Partners is 1% of the gross
revenues of each Partnership property.

     An affiliate of the General Partners or the General Partners
will receive a real estate brokerage commission in connection with
the disposition of Partnership properties.  Such commission will be
in an amount equal to the lesser of: (i) 3% of the sale price of
the property; or (ii) 50% of the real estate commission customarily
charged for similar services in the locale of the property being
sold; provided, however, that receipt by the General Partners or
one of their affiliates of such commission is subordinated to
receipt by the Limited Partners of their Current Preferred Return.

     An affiliate of one of the General Partners provided securities
and real estate counsel to the Partnership.

     Fees, commissions and other expenses paid or payable to the
General Partners or its affiliates for the three months ended March
31, 1997 and 1996, were as follows:

                                                  1997         1996  
        Selling commissions                     $    --      $ 4,098     
        Management fees                           3,984        3,645     
        Reimbursable operating
         expense                                 26,538       19,500     
        Legal fees                                   --          254   

(4) PROVISION FOR IMPAIRMENT

 During the fourth quarter of 1996, the Partnership recorded a
provision for impairment of $857,000 to adjust the carrying values 
of real estate for the Volume ShoeSource ($356,400), the Walden
Books Store ($303,600) and the investment in the Brauvin Gwinnett
County Venture ($197,000) to their estimated net realizable values. 
This provision for impairment has been recorded as a reduction of
each property's cost, and allocated to the land and building based
on the original acquisition percentages.

(5) INVESTMENT IN JOINT VENTURE

 The Partnership owns an equity interest in the Brauvin Bay County
Venture and reports its investment on the equity method.  The
following are condensed financial statements for the Brauvin Bay
County Venture:

                   BRAUVIN BAY COUNTY VENTURE
                                
                                   March 31, 1997    December 31, 1996
Land and buildings, net               $1,066,293          $1,069,277
Other assets                               8,506              13,531
                                      $1,074,799          $1,082,808

Liabilities                           $       --          $    1,155
Partners' capital                      1,074,799           1,081,653
                                      $1,074,799          $1,082,808


             For the three months ended March 31, 
                                      
                                           1997  

Rental income                            $27,914

Expenses:
Depreciation                               2,984
Management fees                              292
Operating and
 administrative                            6,493
                                           9,769
Net income                               $18,145




(6) SALE OF PROPERTIES AND LITIGATION

    Sale of Properties

  Pursuant to the terms of an agreement of purchase and sale of
assets dated as of June 14, 1996, as amended March 24, 1997 (the
"Sale Agreement"), the Partnership proposes to sell substantially
all of the Partnership's properties (the "Assets") to Brauvin Real
Estate Funds L.L.C., a Delaware limited liability company
affiliated with certain of the General Partners (the "Purchaser"),
for a purchase price of $12,489,100, in cash, which is
approximately $7.65 per Unit. If certain conditions of the
Transaction are met, the Partnership will be liquidated and the
Class A Limited Partners will receive a liquidating distribution of
approximately $6.95 to $7.50 per Unit in cash based upon the time
such Class A Limited Partners invested in the Partnership and Class
B Limited Partners will receive a liquidating distribution of
approximately $8.44 to $8.73 per Unit.  The Limited Partners
holding a majority of the Units approved the Sale on November 8,
1996.  In approving the Sale, the Limited Partners also approved
the adoption of an amendment to the Agreement, to allow the
Partnership to sell or lease property to affiliates (this
amendment, together with the Sale shall be referred to herein as
the "Transaction").  

  The sale price to be paid to the Limited Partners in connection
with the Sale is based on the fair market value of the Assets of
the Partnership which has been determined by Cushman & Wakefield
Valuation Advisory Services ("Cushman & Wakefield"), an independent
appraiser, the largest real estate valuation and consulting
organization in the United States, was engaged by the Partnership
to prepare an appraisal of the Assets, to satisfy the Partnership's
requirements under the Employee Retirement Income Security Act of
1974, as amended.  Cushman & Wakefield determined the fair market
value of the Assets to be $12,489,100, or $7.65 per Unit.  The
liquidating distribution also includes all remaining cash of the
Partnership, less net earnings of the Partnership from and after
August 1, 1996 through December 31, 1996, less the Partnership's
actual costs incurred and accrued through the effective time of
filing of the certificate of dissolution, including reasonable
reserves in connection with:  (i) the proxy solicitation; (ii) the
Sale (as detailed in the Sale Agreement); and (iii) the winding up
of the Partnership, including preparation of the final audit, tax
return and K-1s (collectively, the "Transaction Costs") and less
all other outstanding Partnership liabilities.  

  The General Partners will not receive any fees in connection with
the Transaction and will receive only a de minimis liquidating
distribution of less than $17,000 in the aggregate in accordance
with the terms of the Partnership Agreement.

  The Managing General Partner and his son, James L. Brault, an
executive officer of the Corporate General Partner, will have a
minority ownership interest in the Purchaser.

  The Sale has not been completed primarily due to certain
litigation, as described below, that is still pending.  The
Operating General Partners (as defined below) believe that these
lawsuits are without merit and, therefore, continue to vigorously
defend against them. The Purchaser is aware of these lawsuits and
is nonetheless willing to proceed with the Sale, subject to the
satisfaction of its due diligence as outlined below.

  Following receipt of Limited Partner approval, the Purchaser
commenced the finalization of the Purchaser's financing and its due
diligence review of the assets of the Partnership and those of the
Affiliated Partnerships (as defined below).  The due diligence
process has revealed certain concerns relating to potential
environmental problems at some of the properties of the Affiliated
Partnerships.  The due diligence review has also raised questions
regarding the interpretation of certain terms in the leases
governing some of the Affiliated Partnerships' properties.  A very
significant tenant of the Affiliated Partnerships is interpreting
certain purchase options contained in its leases in a way that
would cause the value of the properties leased by such tenant to be
significantly below the current appraised value.  Members of
management of the Partnership and the Affiliated Partnerships have
been working diligently with the Purchaser to assess these risks
and to resolve them in a way that will allow the Sale and the
related transactions to be consummated without any changes to the
terms or the sale price.  The Purchaser is continuing to assess
certain lease provisions, assess the costs and risks of the
litigation discussed below, and finalize its financing in the light
of these developments.

  In accordance with the terms of the Sale Agreement, the Operating
General Partners suspended all distributions to Limited Partners,
however, as a result of the unforeseen delays brought about by the
litigation and the due diligence issues highlighted above, the
Operating General Partners felt it was appropriate that an earnings
distribution be made to the Limited Partners.  Although the terms
of the Sale Agreement entered into by the Partnership and the
Purchaser provide that the Assets being acquired by the Purchaser
in connection with the Sale include all earnings of the Partnership
from and after August 1, 1996, the Purchaser has agreed to allow
the Partnership to make distributions to the Limited Partners of
net earnings for the period from and after January 1, 1997 until
the Sale is consummated.  In exchange, the Partnership has agreed
to extend the termination date of the Sale Agreement to June 30,
1997 to allow the Purchaser time to complete its due diligence. 
Notwithstanding the extension of the termination date, the
Partnership and the Purchaser continue to work through the due
diligence issues outlined above, with the intent of closing the
sale as soon as possible. 

  A distribution of the Partnership's net earnings for the period
January 1, 1997 to March 31, 1997 was made to the Limited Partners
on March 31, 1997 in the amount of approximately $597,600.  Net
earnings accruing after March 31, 1997 through the closing date
will be included with the final cash distribution to the Limited
Partners from the Sale.
  
  Litigation

  Two legal actions, as hereinafter described, were filed against
certain of the General Partners of the Partnership and affiliates
of such General Partners, as well as against the Partnership on a
nominal basis in connection with the Sale.  Each of these actions
was brought by limited partners of the Partnership.  The
Partnership and the named General Partners and their affiliates
deny all allegations set forth in the complaints and are vigorously
defending against such claims.

  A. The Florida Lawsuit

  On September 17, 1996, a lawsuit was filed in the Circuit Court
of the Seventeenth Judicial Circuit in and for Broward County,
Florida, styled Rebecca Scialpi and Helen Friedlander v. Jerome J.
Brault, Brauvin Realty Advisors, Inc., Brauvin Realty Advisors II,
Inc., Brauvin Realty Advisors III, Inc., and Brauvin Realty
Advisors IV, Inc., James L. Brault, and Brauvin Real Estate Funds,
L.L.C. and Brauvin High Yield Fund L.P., Brauvin High Yield Fund
II, L.P., Brauvin Income Plus L.P. III, and Brauvin Corporate Lease
Program IV, L.P., Docket No. 96012807.  The Partnership and the 
Affiliated Partnerships are each named as a "Nominal Defendant" in
this lawsuit.  Jerome J. Brault, the Managing General Partner of
the Partnership, and Brauvin Realty Advisors IV, Inc., the
Corporate General Partner of the Partnership, as well as the
corporate general partners of the Affiliated Partnerships have been
named as defendants.  James L. Brault, an officer of the Corporate
General Partner and the son of Jerome J. Brault, is also named as
a defendant.

  Plaintiffs filed an amended complaint on October 8, 1996.  The
amended complaint alleges a purported class action consisting of
claims for breach of fiduciary duties, fraud, breach of the 
Agreement, and civil racketeering.  The amended complaint seeks
injunctive relief, as well as compensatory and punitive damages,
relating to the proposed transactions with the Purchaser.  The
defendants have answered plaintiffs' amended complaint, and have
denied each of the plaintiffs' allegations of wrongful conduct.

  On October 2, 1996, the plaintiffs in this action requested that
the Circuit Court enjoin the special meetings of the limited
partners and the proposed transactions with the Purchaser.  This
motion was denied by the Circuit Court on October 8, 1996, and the
Florida appellate court denied plaintiffs' appeal of the Circuit
Court's October 8, 1996 ruling.  There have been no material
developments with respect to this lawsuit since October 8, 1996.

  B. The Illinois Lawsuit

  On September 18, 1996, a class action lawsuit was filed in the
United States District Court for the Northern District of Illinois,
styled M. Barbara Christman, Joseph Forte, Janet M. Toolson, John
Archbold, and Ben O. Carroll v. Brauvin Realty Advisors, Inc.,
Brauvin Realty Advisors II, Inc., Brauvin Realty Advisors III,
Inc., Brauvin Realty Advisors IV, Inc., Jerome J. Brault; Brauvin
Real Estate Funds, L.L.C. and Brauvin High Yield Fund L.P., Brauvin
High Yield Fund L.P. II, Brauvin Income Plus L.P. III, and Brauvin
Corporate Lease Program IV L.P., Docket No. 96C6025.  The
Partnership and the Affiliated Partnerships are each named as a
"Nominal Defendant" in the lawsuit.  Jerome J. Brault and the
Corporate General Partner of the Partnership, as well as the
corporate general partners of the Affiliated Partnerships, are
named as defendants.

  The plaintiffs filed an amended complaint on October 8, 1996,
which alleges claims for breach of fiduciary duties, breaches of
the Agreement, and violation of the Illinois Deceptive Trade
Practices Act.  The amended complaint seeks injunctive relief, as
well as compensatory and punitive damages, relating to the proposed
transaction with the Purchaser.

  On October 2, 1996, the District Court certified plaintiffs'
proposed class as all of the limited partners of the Partnership
and of the Affiliated Partnerships, and appointed plaintiffs'
counsel, The Mills Law Firm, as counsel for the class.  On October
2, 1996, the District Court also conducted a hearing on plaintiffs'
motion to preliminarily enjoin the special meetings of the limited
partners and the proposed transactions with the Purchaser.  The
District Court denied plaintiffs' motion for a preliminary
injunction at the conclusion of the October 2, 1996 hearing.

  On September 27, 1996, counsel for plaintiffs, The Mills Law
Firm, mailed a solicitation to all of the Limited Partners,
requesting that they revoke their previously-mailed proxies in
favor of the proposed transaction with the Purchaser.  On October
11, 1996, Operating General Partners filed a counterclaim against
plaintiffs and their counsel, The Mills Law Firm, alleging that
plaintiffs and The Mills Law Firm violated the federal securities
laws and proxy rules by sending their September 27, 1996 letter to
the Limited Partners.  The plaintiffs and The Mills Law Firm have
moved to dismiss this counterclaim.  The District Court has taken
this motion under advisement and has yet to issue a ruling.

  On October 10 and 11, 1996, the District Court conducted an
evidentiary hearing on the motion of the Operating General Partners
to invalidate revocations of proxies procured as a result of The
Mills Law Firm's September 27, 1996 letter.  In that evidentiary
hearing, The Mills Law Firm admitted that it violated the proxy
rules by sending its September 27, 1996 letter to the Limited
Partners without filing such letter with the Commission in
violation of the Commission's requirements.  At the conclusion of
the hearing on October 10 and 11, the District Court found that the
Operating General Partners have a likelihood of succeeding on the
merits with respect to their claim that the September 27, 1996
letter sent to the Limited Partners by plaintiffs and The Mills Law
Firm is false or misleading in several significant respects.

  Notwithstanding this finding, the District Court did not
invalidate the revocations of proxies resulting from The Mills Law
Firm's September 27, 1996 letter because it did not believe it
possessed the authority to do so under present law.  This ruling 
has been appealed to the Seventh Circuit Court of Appeals.  The
Seventh Court of Appeals subsequently dismissed this appeal on the
grounds that the appeal was rendered moot by the Limited Partners'
approval on November 8, 1996 of the Sale.
        
  On October 16, 1996 and on November 6, 1996, the parties filed
cross-motions for partial summary judgement addressing the
allegation in plaintiffs' amended complaint that the Agreement does
not allow the Limited Partners to vote in favor of or against the
proposed transaction with the Purchaser by proxy.  These cross-motions 
for partial summary judgement were taken under advisement
by the District Court, and the District Court has yet to issue a
ruling.

  On April 2, 1997, the Court granted plaintiffs' leave to again
amend their complaint.  In their second amended complaint,
plaintiffs have named the Partnership as a "Nominal Defendant." 
Plaintiffs have also added a new claim, alleging that the Operating
General Partners violated certain of the Commission's rules by
making false and misleading statements in the Proxy.  Plaintiffs
also allege that the Operating General Partners breached their
fiduciary duties, breached various provisions of the Agreement,
violated the Illinois Deceptive Trade Practice Act, and violated
section 17-305 of the Delaware Revised Uniform Limited Partnership
Act.  The Operating General Partners deny those allegations and
will continue to vigorously defend against these claims.

  On April 2, 1997, plaintiffs again requested that the District
Court enjoin the closing of the transaction with the
Purchaser.  After conducting a lengthy hearing on May 1, 1997, the
District Court denied plaintiffs' motion to enjoin
the closing of the transaction with the Purchaser.

  Pursuant to the Agreement and Delaware law, the Partnership will
advance to the defendants their defense costs.  The Corporate
General Partner has agreed to repay the Partnership for the
advances if it is ever determined that the parties were not
entitled to receive the advances.  No estimate can reasonably be
made at this time of any potential liability from the litigation or
the costs of defense.

<PAGE>
Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations.

General

  Certain statements in this Quarterly Report that are not
historical fact constitute "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Discussions containing forward-looking statements may be found in
this section.  Without limiting the foregoing, words such as
"anticipates," "expects," "intends," "plans," and similar
expressions are intended to indentify forward-looking statements.
These statements are subject to a number of risks and
uncertainties. Actual results could differ materially from those
projected in the forward-looking statements. The Partnership
undertakes no obligation to update these forward-looking statements
to reflect future events or circumstances.

Liquidity and Capital Resources

  The Partnership commenced an offering to the public on December
12, 1991 of 3,300,000 Units, 300,000 of which were available only
through the Plan.  The Offering was anticipated to close on
December 11, 1992, but was extended until December 11, 1993 with
the appropriate governmental approvals.  None of the Units were
subscribed and issued between December 12, 1991 and December 31,
1991, pursuant to the Offering.  The Offering was conditioned upon
the sale of $1,200,000, which was achieved on April 27, 1992.

  Prior to the commencement of the Partnership's proxy
solicitation, the Partnership raised a total of $16,008,310 through
the Offering and an additional $435,100 through the Plan as of
March 31, 1997 and December 31, 1996.  As of March 31, 1997 and
December 31, 1996, Units valued at $118,706 have been repurchased
by the Partnership from Limited Partners liquidating their original
investment and have been retired.

  The Partnership purchased the land and buildings underlying a
Steak n Shake restaurant and a Children's World Learning Center in
1992.  In 1993, the Partnership purchased the land and buildings
underlying two Chuck E. Cheese's restaurants, a Mrs. Winner's
Chicken & Biscuit restaurant, a House of Fabrics store, and a
Volume ShoeSource.  Additionally in 1993, the Partnership acquired
a 70.2% equity interest in a joint venture with affiliated public
real estate limited partnerships that acquired the land and
building underlying a CompUSA computer superstore.  The Partnership
acquired the land and buildings underlying an East Side Mario's
restaurant, a Blockbuster Video store and a Waldens Books Store in
1994.  In 1996, the Partnerhsip acquired a 24% equity interest in
a joint venture with affiliated public real estate limited
partnerships that acquired the land and building underlying a
Blockbuster Video store.

  The following is additional information regarding the Partnerhsip
acquisitions during the last three years:

  On  January 18, 1994, the Partnership purchased the land and the
6,240 square foot building (the "East Side Mario's Property")
underlying an East Side Mario's restaurant, located in Copley,
Ohio, from Morgan's Foods, Inc. for $1,435,000 plus closing costs. 
Morgan's Food is the East Side Mario's franchisee for the State of
Ohio.  During 1994, the franchisor, Prime Group of Canada, Inc.,
sold the East Side Mario's concept to Pizza Hut, Inc., a division
of Pepsico, Inc.  This sale has no effect on the existing lease. 
The store is leased to Morgan's Creative Concepts, Inc. and the
lease is guaranteed by the parent company, Morgan's Food, Inc. for
20 years expiring on January 31, 2014, plus two ten year options. 
The tenant is obligated to pay base minimum rent each month in the
amount of $13,453 plus minimum rent escalations of 15% of the then
minimum base rent every five years beginning in the sixth year of
the lease.  The tenant is also obligated to pay percentage rent of
5% of total annual sales which exceed a pre-established amount. 
The tenant leased the East Side Mario's Property under a triple-net
lease whereby the tenant pays for all expenses related to the East
Side Mario's Property including real estate taxes, insurance, and
maintenance and repair costs.  

  On February 23, 1994, the Partnership purchased the land and the
7,028 square foot building (the "Blockbuster Property") underlying
a Blockbuster Video store located in Eagan, Minnesota, from an
unaffiliated seller, for a purchase price of $905,000 plus closing
costs.  The Blockbuster Property is leased to Mid-America
Entertainment Company (the "Blockbuster Tenant"), a privately held
company under an existing lease for a ten year period expiring on
November 30, 2003.  The Blockbuster Tenant has the option to renew
the lease for two additional five year periods.  The Blockbuster
Tenant is the exclusive Blockbuster Video franchisee for most of
the State of Minnesota and parts of Iowa.  The Blockbuster Tenant
is obligated to pay base minimum rent each month in the amount of
$8,931 plus periodic increases beginning in the third lease year. 

  The Blockbuster Tenant leased the Blockbuster Property under a
triple-net lease whereby the Blockbuster Tenant pays for all
expenses related to the Blockbuster property including real estate
taxes, insurance premiums, maintenance and repair costs.  The
Partnership is responsible for repairs to the roof and structure. 
The General Partners believe that that the costs associated with
these items will be immaterial during the lease term as the
building was completed in November 1993 and the Partnership
obtained a roof guarantee for the duration of the lease term.  The
Partnership may reserve a portion of the rent for possible repairs
in the future.  

  On February 28, 1994, the Partnership purchased the land and the
8,500 square foot building (the "Walden Books Property") occupied
by a Walden Books store located in Miami, Florida, from an
unaffiliated seller, for a purchase price of $1,680,000 plus
closing costs.  The Walden Books Property was completed in November
1988 and is leased under a triple-net lease to Walden Books, Inc.
(the "Walden Books Tenant") for a minimum term ending January 31,
2009.  Walden Books, Inc. is one of the largest bookstore chains in
the country with approximately 1,150 stores and gross revenues of
over one billion dollars.  The Walden Books Tenant is obligated to
pay base minimum rent each month in the amount of $14,167 with
scheduled increases in rent beginning in February 1999.  The Walden
Books Tenant is also obligated to pay percentage rent based on the
total annual sales which exceed a pre-established amount.

  The Walden Books Tenant leased the Walden Books Property under
a triple-net lease whereby the Walden Books Tenant pays for all
expenses related to the Walden Books Property including real estate
taxes, insurance premiums and maintenance and repair costs.  The
Partnership is responsible for repairs to the roof and structure. 
The General Partners believe that the costs assciated with these
items will be minimal during the lease term as the building is in
good condition.  The Partnership may reserve a portion of the rent
for possible repairs in the future.

  On October 31, 1996, the Partnership purchased a 24% equity
interest in a joint venture with affiliated public real estate
limited partnerships, the Brauvin Bay County Venture.  The Brauvin
Bay County Venture purchased real property upon which is operated
a newly constructed Blockbuster Video store.  The property contains
6,466 square foot building located on a 40,075 square foot parcel
of land.

  During the fourth quarter of 1996, the Partnership recorded a 
provision for impairment of $660,000 to adjust the carrying value
of the real estate for the Volume ShoeSource ($356,400) and the
Walden Books Store ($303,600) to its estimated realizable value. 
These provisions have been recorded as reductions of each
property's cost, and allocated to the land and building based on
the original acquisition percentages for each property.

  During the fourth quarter of 1996, a provision for impairment of
$197,000 was recorded to adjust the carrying value of the
investment in real estate of the CompUSA property to its estimated
net realizable value.  This provision has been recorded as a
reduction of the property's cost, and allocated to the land and
building based on the original acquisition percentages of
approximately 37% (land) and 63% (building).

  Below is a table summarizing the historical data for distribution
rates per unit:

 Distribution
     Date        1997       1996      1995     1994       
    
February 15    $.2422(a)   $.2000    $.2000   $.1625

May 15                      .1875     .2000    .1750

August 15                      --     .2000    .2000 

November 15                    --     .2000    .2500

(a) The 1997 distribution was made on March 31, 1997.

  Should the Sale not occur, future increases in the Partnership's
distributions will depend on increased sales at the Partnership's
properties, resulting in additional percentage rent.  Rental
increases, to a lesser extent, may occur due to increases in
receipts from certain leases based upon increases in the Consumer
Price Index or scheduled increases of base rent.

  Pursuant to the terms of the Sale Agreement, the Partnership
proposes to sell substantially all of the Partnership's properties
for a purchase price of $12,489,100 in cash which is approximately
$7.65 per Unit. If certain conditions of the Transaction are met,
the Partnership will be liquidated and the Class A Limited Partners
will receive a liquidating distribution of approximately $6.95 to
$7.50 per Unit in cash based upon the time such Class A Limited
Partners invested in the Partnership and Class B Limited Partners
will receive a liquidating distribution of approximately $8.44 to
$8.73 per Unit.  The Limited Partners holding a majority of the
Units approved the Sale on November 8, 1996.

  The Partnership drafted a proxy statement, which required prior
review and comment by the Commission, to solicit proxies for use at
the Special Meeting originally to be held at the offices of the
Partnership on September 24, 1996.  As a result of various pending
legal issues, as described in legal proceedings, the Special
Meeting was adjourned to November 8, 1996 at 10:30 a.m. The purpose
of the Special Meeting was to vote upon the Sale and certain other
matters as described in the Proxy. 

  At the Special Meeting, Limited Partners were also asked to 
approve the adoption of an amendment to the Agreement, to allow the
Partnership to sell or lease property to affiliates.  Neither the
Delaware Revised Limited Partnership Act nor the Agreement provide
Limited Partners not voting in favor of the Transaction with
dissenters' appraisal rights.

  The sale price to be paid to the Limited Partners in connection
with the Sale is based on the fair market value of the properties
of the Partnership (the "Assets").  Cushman & Wakefield Valuation
Advisory Services ("Cushman & Wakefield"), an independent
appraiser, the largest real estate valuation and consulting
organization in the United States, was engaged by the Partnership
to prepare an appraisal of the Assets, to satisfy the Partnership's
requirements under the Employee Retirement Income Security Act of
1974, as amended.  Cushman & Wakefield determined the fair market
value of the Assets to be $12,489,100, or $7.65 per Unit.  The
liquidating distribution includes all remaining cash of the
Partnership, less net earnings of the Partnership from and after
August 1, 1996 through December 31, 1996, less the Partnership's
actual costs incurred and accrued through the effective time of
filing of the certificate of dissolution, including reasonable
reserves in connection with:  (i) the proxy solicitation; (ii) the
Sale (as detailed in the Sale Agreement); and (iii) the winding up
of the Partnership, including preparation of the final audit, tax
return and K-1s (collectively, the "Transaction Costs") and less
all other outstanding Partnership liabilities.  

  Cushman & Wakefield subsequently provided an opinion as to the
fairness of the Transaction to the Limited Partners from a
financial point of view. In its opinion, Cushman & Wakefield
advises that the price per Unit reflected in the proposed
Transaction is fair from a financial point of view to the Limited
Partners. Cushman & Wakefield's determination that a price is
"fair" does not mean that the price is the highest price which
might be obtained in the marketplace, but rather that based on the
appraised values of the properties, the price reflected in the
proposed transaction is believed by Cushman & Wakefield to be
reasonable.

  The General Partners of the Partnership are Mr. Jerome J. Brault,
the Managing General Partner, and Brauvin Realty Advisors IV, Inc.,
the Corprate General Partner.  Mr. Cezar M. Froelich resigned his
position as an Individual General Partner of the Partnership
effective as of September 17, 1996.  The General Partners will not
receive any fees in connection with the Transaction and will
receive only a de minimis liquidating distribution of less than
$17,000 in the aggregate in accordance with the terms of the
Agreement.

  The Managing General Partner and his son, James L. Brault, an
executive officer of the Corporate General Partner, will have a
minority ownership interest in the Purchaser. Therefore, the
Messrs. Brault have an indirect economic interest in consummating
the Transaction that is in conflict with the economic interests of
the Limited Partners.  Mr. Froelich has no affiliation with the
Purchaser.  

  Although the Special Meeting was held and the necessary
approvals received, the Sale has not been completed primarily due
to the lawsuits that are still pending.  The Operating General
Partners believe that these lawsuits are without merit and,
therefore, continue to vigorously defend against them. The
Purchaser is aware of these lawsuits and is nonetheless willing to
proceed with the Sale, subject to the satisfaction of its due
diligence as outlined below.

  Following receipt of Limited Partner approval, representatives of
the Purchaser commenced in earnest the finalization of the
Purchaser's financing and its due diligence review of the assets of
the Partnership and those of the Affiliated Partnerships.  The due
diligence process has revealed certain concerns relating to
potential environmental problems at some of the properties of the
Affiliated Partnerships.  The due diligence review has also raised
questions regarding the interpretation of certain terms in the
leases governing some of the Affiliated Partnerships' properties. 
A very significant tenant of the Affiliated Partnerships is
interpreting certain purchase options contained in its leases in a
way that would cause the value of the properties leased by such
tenant to be significantly below the current appraised value. 
Members of management of the Partnership and the Affiliated
Partnerships have been working diligently with tne Purchaser to
assess these risks and to resolve them in a way that will allow the
Sale and the related transactions to be consummated without any
changes to the terms or the sale price.  The Purchaser is
continuing to assess certain lease provisions, assess the costs and
risks of the litigation discussed below, and finalize its financing
in the light of these developments.

  In accordance with the terms of the Sale Agreement, the Operating
General Partners suspended all distributions to Limited Partners,
however, as a result of the unforeseen delays brought about by the
litigation and the due diligence issues highlighted above, the
Operating General Partners felt it was appropriate that an earnings
distribution be made to the Limited Partners.  Although the terms
of the Sale Agreement entered into by the Partnership and the
Purchaser provides that the assets being acquired by the Purchaser
in connection with the Sale include all earnings of the Partnership
from and after August 1, 1996, the Purchaser has agreed to allow
the Partnership to make distributions to the Limited Partners of
net earnings for the period from and after January 1, 1997 until
the Sale is consummated.  In exchange, the Partnership has agreed
to extend the termination date of the Sale Agreement to June 30,
1997 to allow the Purchaser time to complete its due diligence. 
Notwithstanding the extension of the termination date, the
Partnership and the Purchaser continue to work through the due
diligence issues outlined above, with the intent of closing the
Sale as soon as possible.  Net earnings accruing after March 31,
1997 through the closing date will be included with the final cash
distribution to the Limited Partners from the Sale.

  A distribution of the Partnership's net earnings for the period
January 1, 1997 to March 31, 1997 was made to the Limited Partners
on March 31, 1997 in the amount of approximately $395,400.
  
Results of Operation - Three months Ended March 31, 1997 and 1996

  Results of operations for the three months ended March 31, 1997
reflected net income of $338,070 compared to net income of $261,649
for the three months ended March 31, 1996, an increase of
approximately $76,400.                                            

  Total income for the three months ended March 31, 1997 was
$468,626 as compared to $398,443 for the period ended March 31,
1996, an increase of approximately $70,200. The increase in total
income is primarily the result of the receipt by the Partnership of
stock in the House of Fabrics, Inc. related to the House of Fabric's
reorganization and its prior default on its lease obligation to the
Partnership.  The decrease in rental income is due to 1996 rental income
reflecting a month of operations of the House of Fabrics property,
while 1997 reflects no rental income for the House of Fabrics
property.  Partially offsetting this decrease in rental income is
an increase in interest income, which was the result of higher
investment cash balances during 1997. 

  Total expenses for the three months ended March 31, 1997 were
$119,064 as compared to $120,951 for the period ended March 31,
1996, a decrease of approximately $1,900.  The decrease in expenses
was due to the 1996 expenses reflecting valuation fees of $13,500
while no such fees have been incurred in 1997.  Partially
offsetting the valuation fee decrease is an increase in transaction
costs of approximately $6,600 and an increase in general and
administrative expenses associated with the Partnership's attempt 
to resolve some of the due diligence issues and related items 
associated with the Merger, as discussed above. 

<PAGE>
                  PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings.
        Two legal actions, as hereinafter described, were filed
        against certain of the General Partners of the
        Partnership and affiliates of such General Partners, as
        well as, against the Partnership on a nominal basis in
        connection with the Sale.  Each of these actions was
        brought by limited partners of the Partnership.  The
        Partnership and the named General Partners and their
        affiliates deny all allegations set forth in the
        complaints and are vigorously defending against such
        claims.

        A. The Florida Lawsuit

        On September 17, 1996, a lawsuit was filed in the Circuit
        Court of the Seventeenth Judicial Circuit in and for
        Broward County, Florida, styled Rebecca Scialpi and Helen
        Friedlander v. Jerome J. Brault, Brauvin Realty Advisors,
        Inc., Brauvin Realty Advisors II, Inc., Brauvin Realty
        Advisors III, Inc., and Brauvin Realty Advisors IV, Inc.,
        James L. Brault, and Brauvin Real Estate Funds, L.L.C. and
        Brauvin High Yield Fund L.P., Brauvin High Yield Fund II,
        L.P., Brauvin Income Plus L.P. III, and Brauvin Corporate
        Lease Program IV, L.P., Docket No. 96012807.  The
        Partnership and the other affiliated partnerships named
        in this lawsuit (the "Affiliated Partnerships") that are
        proposed to be a party to a merger or sale with the
        Purchaser, are each named as a "Nominal Defendant" in this
        lawsuit.  Jerome J. Brault, the Managing General Partner
        of the Partnership, and Brauvin Realty Advisors IV, Inc.,
        the Corporate General Partner of the Partnership, as well
        as the corporate general partners of the Affiliated
        Partnerships have been named as defendants in this
        lawsuit.  James L. Brault, an officer of the Corporate
        General Partner and the son of Jerome J. Brault, is also
        named as a defendant.

        Plaintiffs filed an amended complaint on October 8, 1996. 
        The amended complaint alleges a purported class action
        consisting of claims for breach of fiduciary duties,
        fraud, breach of the  Agreement, and civil racketeering. 
        The amended complaint seeks injunctive relief, as well as
        compensatory and punitive damages, relating to the
        proposed transactions with the Purchaser.  The defendants
        have answered plaintiffs' amended complaint, and have
        denied each of the plaintiffs' allegations of wrongful
        conduct.

        On October 2, 1996, the plaintiffs in this action
        requested that the Circuit Court enjoin the special
        meetings of the limited partners and the proposed
        transactions with the Purchaser.  This motion was denied
        by the Circuit Court on October 8, 1996, and the Florida
        appellate court denied plaintiffs' appeal of the Circuit
        Court's October 8, 1996 ruling.  There have been no
        material developments with respect to this lawsuit since
        October 8, 1996.

        B. The Illinois Lawsuit

        On September 18, 1996, a class action lawsuit was filed
        in the United States District Court for the Northern
        District of Illinois, styled M. Barbara Christman, Joseph
        Forte, Janet M. Toolson, John Archbold, and Ben O. Carroll
        v. Brauvin Realty Advisors, Inc., Brauvin Realty Advisors
        II, Inc., Brauvin Realty Advisors III, Inc., Brauvin
        Realty Advisors IV, Inc., Jerome J. Brault; Brauvin Real
        Estate Funds, L.L.C. and Brauvin High Yield Fund L.P.,
        Brauvin High Yield Fund L.P. II, Brauvin Income Plus L.P.
        III, and Brauvin Corporate Lease Program IV L.P., Docket
        No. 96C6025.  The Partnership and the other Affiliated
        Partnerships are each named as a "Nominal Defendant" in
        the lawsuit.  Jerome J. Brault and the Corporate General
        Partner of the Partnership, as well as the corporate
        general partners of the Affiliated Partnerships, are named
        as defendants.

        The plaintiffs filed an amended complaint on October 8,
        1996, which alleges claims for breach of fiduciary duties,
        breaches of the Agreement, and violation of the Illinois
        Deceptive Trade Practices Act, 815 ILCS 505 et seq.  The
        amended complaint seeks injunctive relief, as well as
        compensatory and punitive damages, relating to the
        proposed transaction with the Purchaser.

        On October 2, 1996, the District Court certified
        plaintiffs' proposed class as all of the limited partners
        of the Partnership and of the Affiliated Partnerships, and
        appointed plaintiffs' counsel, The Mills Law Firm, as
        counsel for the class.  On October 2, 1996, the District
        Court also conducted a hearing on plaintiffs' motion to
        preliminarily enjoin the special meetings of the limited
        partners and the proposed transactions with the Purchaser. 
        The District Court denied plaintiffs' motion for a
        preliminary injunction at the conclusion of the October
        2, 1996 hearing.

        On September 27, 1996, counsel for plaintiffs, The Mills
        Law Firm, mailed a solicitation to all of the Limited
        Partners, requesting that they revoke their previously-mailed 
        proxies in favor of the Sale.  On October 11, 1996,
        Jerome J. Brault and the Corporate General Partner
        (collectively, the "Operating General Partners") of the
        Partnership filed a counterclaim against plaintiffs and
        their counsel, The Mills Law Firm, alleging that
        plaintiffs and The Mills Law Firm violated the federal
        securities laws and proxy rules by sending their September
        27, 1996 letter to the Limited Partners.  The plaintiffs
        and The Mills Law Firm have moved to dismiss this
        counterclaim.  The District Court has taken this motion
        under advisement and has yet to issue a ruling.

        On October 10 and 11, 1996, the District Court conducted
        an evidentiary hearing on the motion of the Operating
        General Partners to invalidate revocations of proxies
        procured as a result of The Mills Law Firm's September 27,
        1996 letter.  In that evidentiary hearing, The Mills Law
        Firm admitted that it violated the proxy rules by sending
        its September 27, 1996 letter to the Limited Partners
        without filing such letter with the Securities and
        Exchange Commission (the "Commission") in violation of the
        Commission's requirements.  At the conclusion of the
        hearing on October 10 and 11, the District Court found
        that the Operating General Partners have a likelihood of
        succeeding on the merits with respect to their claim that
        the September 27, 1996 letter sent to the Limited Partners
        by plaintiffs and The Mills Law Firm is false or
        misleading in several significant respects.

        Notwithstanding this finding, the District Court did not
        invalidate the revocations of proxies resulting from The
        Mills Law Firm's September 27, 1996 letter because it did
        not believe it possessed the authority to do so under
        present law.  This ruling  has been appealed to the
        Seventh Circuit Court of Appeals.  The Seventh Court of
        Appeals subsequently dismissed this appeal on the grounds
        that the appeal was rendered moot by the Limited Partners'
        approval on November 8, 1996 of the Sale.
        
        On October 16, 1996 and on November 6, 1996, the parties
        filed cross-motions for partial summary judgement
        addressing the allegation in plaintiffs' amended complaint
        that the Agreement does not allow the Limited Partners to
        vote in favor of or against the proposed transaction with
        the Purchaser by proxy.  These cross-motions for partial
        summary judgement were taken under advisement by the
        District Court, and the District Court has yet to issue
        a ruling.

        On April 2, 1997, the Court granted plaintiffs' leave to
        again amend their complaint.  In their second amended
        complaint, plaintiffs have named the Partnership as a
        "Nominal Defendant."  Plaintiffs have also added a new
        claim, alleging that the Operating General Partners
        violated certain of the Commission rules (15 U.S.C.
        section 78n(a), 17 C.F.R. sections 240.14a-9, 140.14a-4)
        by making false and misleading statements in the Proxy. 
        Plaintiffs also allege that the Operating General Partners
        breached their fiduciary duties, breached various
        provisions of the Agreement, violated the Illinois
        Deceptive Trade Practice Act, 815 ILCS 505 et seq., and
        violated section 17-305 of the Delaware Revised Uniform
        Limited Partnership Act.  The Operating General Partners
        deny those allegations and will continue to vigorously
        defend against these claims.

        On April 2, 1997, plaintiffs again requested that the        
        District Court enjoin the closing of the           
        transaction with the Purchaser.  After conducting a         
        lengthy hearing on May 1, 1997, the District Court denied        
        plaintiffs' motion to enjoin the closing of 
        the transaction with the Purchaser.

        Pursuant to the Agreement and Delaware law, the
        Partnership will advance to the defendants their defense
        costs.  The Corporate General Partner has agreed to repay
        the Partnership for the advances if it is ever determined
        that the parties were not entitled to receive the
        advances.  No estimate can reasonably be made at this time
        of the costs of defense.

ITEM 2. Changes in Securities.

        None.

ITEM 3. Defaults Upon Senior Securities.

        None.

ITEM 4. Submission Of Matters To a Vote of Security Holders.

        None.

ITEM 5. Other Information.

        None.

ITEM 6. Exhibits and Reports On Form 8-K.

        Exhibit 27.  Financial Data Schedule

<PAGE>                             
                                 SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

                      BRAUVIN CORPORATE LEASE PROGRAM IV L.P.
                        BY:  Brauvin Realty Advisors IV, Inc.
                             Corporate General Partner

                        By:  /s/ Jerome J. Brault             
                             Jerome J. Brault
                             Chairman of the Board of         
                             Directors, President and Chief          
                             Executive Officer 


                        By:  /s/ B. Allen Aynessazian         
                             B. Allen Aynessazian
                             Chief Financial Officer and
                             Treasurer

                                
                      INDIVIDUAL GENERAL PARTNER

                             /s/ Jerome J. Brault             
                             Jerome J. Brault                    
             
                                                
DATED: May 15, 1997            
<PAGE>