SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-KSB

                Annual Report Pursuant to Section 13 or 15(d) of
                         Securities Exchange Act of 1934

                                                            Commission File
For the year ended December 31, 1996                        Number  0-12210
                   -----------------                                -------


                 PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)

       Maryland                                        36-3110117
(State of organization)                       (IRS Employer Identification No.)

One International Place, Boston, Massachusetts               02110
(Address of principal executive offices)                  (Zip  Code)

Registrant's telephone number including area code:        (617) 330-8600
                                                          --------------

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act:

                      Units of Limited Partnership Interest
                                (Title of Class)

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

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-B is not contained  herein,  and will not be contained,  to the
best of registrant'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. [ ]

The Registrant's revenues for its most recent fiscal year were $231,071.

No market exists for the limited partnership  interests of the registrant,  and,
therefore, no aggregate market value can be computed.



                       DOCUMENTS INCORPORATED BY REFERENCE

                                      None

Transitional Small Business Disclosure Format:  Yes ___  No  X




<PAGE>



                                     PART I

Item 1.           Description of Business.

Organization

         Presidential  Associates I Limited  Partnership (the "Partnership") was
organized as a Maryland limited  partnership  under the Maryland Revised Uniform
Limited  Partnership  Act on July 20,  1983,  for the  purpose of  investing  in
Presidential  Towers Ltd. (the  "Operating  Partnership"),  an Illinois  limited
partnership  organized  for the  purpose of  building,  owning and  operating  a
residential apartment complex in downtown Chicago, Illinois (the "Project").

         The general  partners of the  Partnership  are Winthrop  Financial Co.,
Inc., a Massachusetts  corporation ("Winthrop Financial"),  and Linnaeus-Phoenix
Associates Limited Partnership  ("Linnaeus-Phoenix").  Winthrop Financial is the
Partnership's  managing general partner.  Collectively,  Winthrop  Financial and
Linnaeus-Phoenix  shall be referred to  hereinafter  as the "General  Partners."
Winthrop  Financial is a wholly-owned  subsidiary of First Winthrop  Corporation
which is wholly owned by Winthrop Financial  Associates,  A Limited  Partnership
("WFA"), a Maryland limited partnership. See "Change in Control."

         The only business of the  Partnership is investing as a limited partner
in the Operating Partnership. As of the date hereof, the general partners of the
Operating  Partnership are (i) McHugh Levin Associates Venture ("McHugh Levin"),
an Illinois limited  partnership  whose general partners are James P. McHugh and
Daniel E. Levin, (ii)  Madison-Canal  Company,  an Illinois limited  partnership
whose general partner is Daniel J. Shannon and (iii) TKI Presidential Partners.

         As of  the  date  hereof,  the  Partnership  holds  a  19.998%  limited
partnership interest in the Operating Partnership. In exchange for this interest
the  Partnership  made a capital  contribution  of  $33,172,524 to the Operating
Partnership. See "Restructuring of
Operating Partnership."

Development

     The Partnership was initially capitalized with contributions  totaling $300
from the General  Partners.  In  September  1983,  the  Partnership  completed a
private  offering of 590 units of limited  partnership  interest  (the  "Units")
pursuant to  Regulation  D under the  Securities  Act of 1933.  The  Partnership
raised  $59,000,000 in capital  contributions from 545 investor limited partners
(the "Limited Partners").  Of the $59,000,000 raised, $697,380 was received upon
the Limited Partners' admission to the Partnership,  and the balance was paid in
installments  pursuant to the terms of promissory  notes (the "Investor  Notes")
delivered to the Partnership by the Limited  Partners.  The last installment was
due on  January  15,  1990.  As of April 1, 1997,  $88,832  of this  installment
remains uncollected.

         Based on the  projected  occupancy  levels  and  rental  rates,  it was
expected that the Project would operate at a deficit until  approximately  1993.
Accordingly,  at the time of the offering the Operating  Partnership  designated
approximately  $21 million of the capital  contribution  from the Partnership as
operating reserves.

         The  General  Partners  and  the  general  partners  of  the  Operating
Partnership  projected that these reserves and deficit loans would be sufficient
to fund  operations  until the  Project  could  achieve  break-even  operations.
However,  due to lower than  projected  revenues and higher than  projected real
estate taxes,  the  Project's  cash flow deficit was  significantly  higher than
anticipated, and thus the reserves were depleted sooner than anticipated.

Restructuring of Operating Partnership

         After  failing to meet its mortgage  obligations,  the mortgage loan on
the Project was  assigned by the lender to the  Department  of Housing and Urban
Development  ("HUD") which had insured the mortgage.  The Operating  Partnership
and  HUD  entered  into  a  written  tentative   Restructuring   Agreement  (the
"Restructuring  Agreement") in December 1991. The Restructuring Agreement, which
was  implemented on April 18, 1995 and was approved by a majority in interest of
the limited  partners  of the  Partnership,  provided  for the split of the then
existing  mortgage note into two new mortgage notes. This was designed to afford
the  Project  achievable  debt  service   obligations  under  the  Restructuring
Agreement.  Both new  mortgage  notes  mature on the same  date as the  original
mortgage  loan,  September  1,  2028.  HUD  will,  however,  have  the  right to
accelerate  the  obligations  evidenced  by the notes at any time  after June 1,
2015.

     Each of the  notes is  prepayable  in whole or in part at any time  without
penalty.  The new first  mortgage  note,  in the amount of  $127,000,000,  bears
interest at an annual rate of 8.1%.  All  accrued  and unpaid  interest  will be
compounded annually at the rate of 8.1%. The first mortgage note consists of two
tiers. The first tier, in the principal  amount of $71,000,000,  is to be repaid
through level monthly  payments which amortizes the debt over the remaining loan
term.  A service  charge  payable  to HUD in the amount of 0.5% per annum of the
then  outstanding  principal  mortgage  balance  will be  payable  monthly.  The
secondary tier note is in the amount of $56,000,000. The secondary tier requires
semi-annual  payments of principal and interest in an amount equal to 80% of the
Project's  net cash  flow;  provided,  however,  that  commencing  on the  tenth
anniversary of the closing (June 1, 2005),  the semi-annual  payments will be in
an amount equal to the greater of (i) 80% of the Project's net cash flow or (ii)
a fixed minimum  payment of $164,025  that shall  increase each year between the
eleventh  year and  twentieth  year after  closing.  The annual HUD 0.5% service
charge will accrue on the then  outstanding  principal amount of the second tier
and be due only upon  prepayment in full of the first  mortgage note or maturity
of the first mortgage note. In addition,  the Operating Partnership is obligated
to reduce the secondary  tier's  principal by a total of $10,000,000  over a six
year period.


         The principal  amount of the new second  mortgage note is  $63,001,421.
The  second  mortgage  note bears no  interest  and is  payable  from  available
proceeds  from a sale or  refinancing  of the  Project.  While  the  new  second
mortgage note bears no interest,  after payment in full of the principal  amount
of the second  mortgage note from the proceeds of a sale or  refinancing  of the
Project, 40% of all additional sale or refinancing proceeds shall be paid to HUD
until HUD shall have received  $20,000,000 in excess of the principal  amount of
the second mortgage note. HUD has the right to call this second note at any time
on or  after  June 1,  2015.  The  Restructuring  Agreement  also  requires  the
Operating Partnership to establish a deficit escrow account of $3,000,000 over a
six year period from sources other than the operating revenues of the Project to
provide  additional  collateral  security  for the  mortgages.  The two  capital
requirements  described  above  necessitated  raising  $13,000,000 of new equity
(available over six years, as required).

     In order to implement the Restructuring Agreement and raise the $13,000,000
of new equity, a third party investor,  TKI Presidential  Partners ("TKI"),  was
admitted  to the  Operating  Partnership  as a general  partner.  TKI  agreed to
contribute  $14,000,000 over a six year period (as required by the Restructuring
Agreement  with HUD) in exchange for a 79% general  partnership  interest in the
Operating  Partnership,  79%  of  all  future  distributions  by  the  Operating
Partnership  of  operating  cash  flow,  a  preferential  return of its  capital
contribution  from the proceeds of a sale or refinancing,  79% of all additional
proceeds  of a sale  or  refinancing,  100%  of all  future  tax  losses  of the
Operating  Partnership  and  effective  control,  through  rights to  approve or
initiate  certain  actions,  over all major  business  decisions  affecting  the
Operating  Partnership.  As a result  of  TKI's  investment,  the  Partnership's
interest  in  the  Operating  Partnership  was  reduced  from a  94.99%  limited
partnership  interest  to a 19.998%  limited  partnership  interest  and certain
control rights over major business  decisions of the Operating  Partnership were
transferred to TKI.  Pursuant to the terms of the  Partnership  Agreement of the
Operation  Partnership,  the  Partnership  is entitled to receive a distribution
from the Operating  Partnership to reimburse it for its administrative  expenses
and  professional  fees up to an annual  maximum of $30,000.  In  addition,  the
Operating Partnership made distributions to the Partnership during 1995 and 1996
of approximately $102,980 and $229,049, respectively.  However, due to TKI being
entitled to a priority  return,  there can be no  assurance  that the  Operating
Partnership will be able to make additional distributions to the Partnership, if
at all, until the property is sold. However,  due to the preferred return to TKI
and HUD, it is possible that a sale will not generate sufficient funds to permit
a distribution to the Partnership.  Accordingly,  it is anticipated that limited
partners  will  not  receive  a  return  of  their  original  investment  in the
Partnership.




<PAGE>



Change in Control

     Until  December  22,  1994,  Arthur J.  Halleran,  Jr. was the sole general
partner of Linnaeus Associates Limited Partnership ("Linnaeus"). On December 22,
1994,  pursuant to an  Investment  Agreement  entered  into among  Nomura  Asset
Capital  Corporation  ("NACC"),  Mr. Halleran and certain other  individuals who
comprised  the senior  management  of WFA, the general  partnership  interest in
Linnaeus was transferred to W.L. Realty, L.P. ("W.L. Realty").  W.L. Realty is a
Delaware limited  partnership,  the general partner of which was, until July 18,
1995,  A.I.  Realty  Company,  LLC  ("Realtyco"),  an  entity  owned by  certain
employees  of  NACC.  On  July  18,  1995  Londonderry  Acquisition  II  Limited
Partnership ("Londonderry II"), a Delaware limited partnership, and affiliate of
Apollo Real Estate  Advisors,  L.P.  ("Apollo"),  acquired,  among other things,
Realtyco's  general  partner  interest in W.L.  Realty and a sixty four  percent
(64%) limited partnership  interest in W.L. Realty, and WFA acquired the general
partnership interest in Linnaeus-Phoenix.

         As a result of the foregoing  acquisitions,  Londonderry II is the sole
general  partner of W.L.  Realty which is the sole general  partner of Linnaeus,
and  which in turn is the  sole  general  partner  of WFA.  As a  result  of the
foregoing,  effective  July 18,  1995,  Londonderry  II, an affiliate of Apollo,
became the controlling  entity of Winthrop  Financial and  Linnaeus-Phoenix.  In
connection with the transfer of control,  the officers and directors of Winthrop
Financial resigned and Londonderry II appointed new officers and directors.  See
Item  9,  "Directors,   Executive  Officers,   Promoters  and  Control  Persons;
Compliance With Section 16(a) of the Exchange Act.

Employees

         The  Partnership  has no employees.  Affiliates  of Winthrop  Financial
provide administrative services for the Partnership.

Item 2.           Description of Properties.

         The  Partnership  has no  properties  other  than its  interest  in the
Operating  Partnership.  For a  description  of the  properties of the Operating
Partnership, see Item 1, Description of Business.



<PAGE>



Item 3.           Legal Proceedings.

         To the  best of the  Partnership's  knowledge,  there  are no  material
pending legal proceedings to which it is a party.

Item 4.           Submission of Matters to a Vote of Security Holders.

         No matter was submitted to a vote of security holders during the period
covered by this report.



<PAGE>



                                     PART II

Item 5.           Market for the Registrant's Common Stock and Related
                  Security Holder Matters.

         The Partnership is a limited  partnership and thus has no common stock.
There  is no  established  public  trading  market  for  the  Units  of  limited
partnership interest in the Partnership. Trading in Units is sporadic and occurs
solely through private transactions.

         As  of  March  1,  1997,  there  were  approximately   holders  of  590
outstanding Units.

         The  Partnership's  partnership  agreement  requires that Cash Flow (as
defined  therein) be  distributed  to the partners in specified  proportions  at
reasonable  intervals  during the fiscal  year and in any event no later than 60
days  after the close of each  fiscal  year.  There are no  restrictions  on the
Partnership's  present or future ability to make distributions of cash flow. For
the years ended  December  31, 1996 and 1995,  there were no cash  distributions
paid or accrued to the Limited Partners. In April 1997, however, the Partnership
made a distribution to its partners of $200,200  ($2,002 to the General Partners
and  $198,198  ($335.93  per  unit)  to  the  limited   partners.   See  Item  6
"Management's Discussion and Analysis or Plan of Operation" for the Registrant's
ability to make distributions in the future.



<PAGE>



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

Liquidity and Capital Resources

         The Partnership's primary source of liquidity is distributions from the
Operating  Partnership.  During 1996,  the  Partnership  received  distributions
totaling  $229,049  from the  Operating  Partnership  as compared to $102,980 in
1995.  Pursuant  to the  terms of the  Partnership  Agreement  of the  Operating
Partnership,  the  Partnership  is entitled to receive a  distribution  from the
Operating  Partnership  to  reimburse  it for its  administrative  expenses  and
professional fees up to an annual maximum of $30,000.  However, due to TKI being
entitled to a priority  return,  there can be no  assurance  that the  Operating
Partnership will be able to make additional distributions to the Partnership, if
at all, until the property is sold. However,  due to the preferred return to TKI
and HUD, it is possible that a sale will not generate sufficient funds to permit
a distribution to the Partnership.  Accordingly,  it is anticipated that limited
partners  will  not  receive  a  return  of  their  original  investment  in the
Partnership. See "Item 1, Business-Restructuring of Operating Partnership."

         The Partnership is responsible for paying various  administrative costs
associated  with  monitoring  the  Partnership's  investment  in  the  Operating
Partnership, and paying various professional fees associated with the affairs of
the Partnership.  In order to satisfy certain of these  administrative costs and
professional  fees,  Winthrop  Financial made non-interest  bearing loans to the
Partnership (collectively, the "WFC Loan"). In connection with the Restructuring
of the  Operating  Partnership,  the amount due on the WFC Loan was  forgiven in
1995. In addition,  the Partnership's  partnership agreement was amended in 1995
to delete the $125,000 annual  administration fee payable to Winthrop Financial.
As a result, the Partnership recognized forgiveness of debt income in the amount
of $921,249.

Results of Operations

         The  Partnership's  net income for the year ended December 31, 1996 was
$230,481 as compared to  $1,023,372  for the year ended  December 31, 1995.  The
decrease in net income is  attributable  to the  forgiveness of debt of $921,249
recognized  in 1995.  With respect to the  Partnership's  other items of income,
distributions from the Operating  Partnership increased from $102,980 in 1995 to
$229,049  in 1996 and  interest  income was 2,022 in 1996 as compared to zero in
1995.  The  increase in interest  income is due to the  Partnership  having cash
reserves in 1996.

         As discussed above,  future operation of the Partnership are subject to
the Operating  Partnership's  ability to make  distributions to the Partnership.
Expenses are expected to remain relatively constant for future periods.



<PAGE>




         The General Partners believe that the inflation rate did not materially
affect the  business or  operating  results of the  Partnership  during the last
three years;  however, as discussed in Item 1 above, general economic conditions
have had a substantial  effect on the  operations  of the Operating  Partnership
since  1988.  The  residential  market in Chicago is  expected to continue to be
competitive for the foreseeable future.



<PAGE>



Item 7.           Financial Statements.

                          INDEX TO FINANCIAL STATEMENTS
                  PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIP



Independent Auditors' Report

Balance Sheets as of December 31, 1996 and 1995

Statements of Operations for the years ended December 31,
         1996 and 1995

Statements of Partners' Equity (Deficit) for the years
         ended December 31, 1996 and 1995

Statements of Cash Flows for the years ended December 31, 1996 and 1995

Notes to Financial Statements





                          INDEPENDENT AUDITORS' REPORT



To the Partners
Presidential Associates I Limited Partnership

         We  have  audited  the  accompanying  balance  sheets  of  Presidential
Associates  I Limited  Partnership  as of December  31,  1996 and 1995,  and the
related statements of operations,  partners' equity (deficit) and cash flows for
the two years in the period ended December 31, 1996. These financial  statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these 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  financial  statements  referred to above  present
fairly,  in all  material  respects,  the  financial  position  of  Presidential
Associates  I Limited  Partnership  as of December  31,  1996 and 1995,  and the
results of its operations,  changes in partners'  equity  (deficit) and its cash
flows for the two years in the period ended  December 31,  1996,  in  conformity
with generally accepted accounting principles.



/s/ Reznick Fedder & Silverman

Bethesda, Maryland
February 21, 1997


<PAGE>


                  Presidential Associates I Limited Partnership


                                 BALANCE SHEETS

<TABLE>
                                                   December 31,



                                                                                        1996               1995
                                                                                      --------           ------


                                                      ASSETS


<S>                                                                                   <C>               <C>     
Cash and cash equivalents                                                             $319,440          $121,409
Due from operating partnership                                                          14,020             1,652
                                                                                      --------         ---------

                                                                                      $333,460          $123,061
                                                                                       =======           =======

                                         LIABILITIES AND PARTNERS' EQUITY


Loans from general partner                                                       $           -         $  20,082

PARTNERS' EQUITY                                                                       333,460           102,979
                                                                                       -------           -------

                                                                                      $333,460          $123,061
                                                                                       =======           =======
</TABLE>
                        See notes to financial statements
<PAGE>


                  Presidential Associates I Limited Partnership


                            STATEMENTS OF OPERATIONS

                             Year ended December 31,


<TABLE>

                                                                                  1996               1995
                                                                               ----------         -------

Expenses
<S>                                                                           <C>              <C>          
  Other                                                                       $       590      $         857
                                                                               ----------       ------------

      Loss before other income                                                       (590)              (857)

Other income
  Distribution from operating partnership                                         229,049            102,980
  Forgiveness of debt income                                                            -            921,249
  Interest income                                                                   2,022                  -
                                                                                ---------    ---------------

      NET INCOME                                                                 $230,481         $1,023,372
                                                                                  =======          =========


Units of investor limited partnership interest outstanding                            590                590
                                                                                      ===                ===

Net income allocated to general partner                                            $1,152             $5,117
                                                                                    =====              =====

Net income allocated to special limited partner                                    $1,152             $5,117
                                                                                    =====              =====

Net income allocated to investor limited partners                                $228,177         $1,013,138
                                                                                  =======          =========

Net income per unit of investor limited
  partnership interest outstanding                                                   $391             $1,735
                                                                                      ===              =====

</TABLE>


<PAGE>


                  Presidential Associates I Limited Partnership


                    STATEMENTS OF PARTNERS' EQUITY (DEFICIT)

                     Years ended December 31, 1996 and 1995
<TABLE>

                                                                    Special
                                                   General          limited
                                                  partner           partner
                                                                    Linnaeus
                                                  Winthrop          Phoenix
                                                 Financial         Associates         Investor
                                                   Company,         Limited            limited
                                                        Inc.       Partnership        partners           Total

<S>                                              <C>                <C>              <C>               <C>        
Partners' deficit, December 31, 1994             $(276,630)         $(578,539)       $   (65,224)      $ (920,393)

Capital contributions                                  100                  -             88,732           88,832

Less capital contributions
  not yet received                                    (100)                 -            (88,732)         (88,832)

Net income                                           5,117              5,117          1,013,138        1,023,372
                                                 ---------         ----------          ---------        ---------

Partners' equity (deficit),
  December 31, 1995                               (271,513)          (573,422)           947,914          102,979

Capital contributions                                  100                  -             88,732           88,832

Less capital contributions
  not yet received                                    (100)                 -            (88,732)         (88,832)

Net income                                           1,152              1,152            228,177          230,481
                                                ----------         ----------         ----------       ----------

Partners' equity (deficit),
  December 31, 1996                              $(270,361)         $(572,270)        $1,176,091      $   333,460
                                                  ========           ========          =========       ==========

</TABLE>

                        See notes to financial statements

<PAGE>


                  Presidential Associates I Limited Partnership


                            STATEMENTS OF CASH FLOWS

                             Year ended December 31,


<TABLE>

                                                                                 1996                1995
                                                                             -----------        ---------

Cash flows from operating activities
<S>                                                                             <C>                <C>       
  Net income                                                                    $230,481           $1,023,372
  Adjustments to reconcile net income to
  net cash provided by operating activities
    Forgiveness of debt income                                                         -             (921,249)
    Increase in due from operating partnership                                   (12,368)              (1,652)
                                                                                --------          -----------

        Net cash provided by operating activities                                218,113              100,471
                                                                                 -------           ----------


Cash flows from financing activities
  Loans from general partner                                                           -               20,938
  Repayment of general partner loans                                             (20,082)                   -
                                                                                --------      ---------------

        Net cash provided by (used in) financing activities                      (20,082)              20,938
                                                                                --------          -----------

        NET INCREASE IN CASH AND CASH
        EQUIVALENTS                                                              198,031              121,409

Cash and cash equivalents, beginning                                             121,409                    -
                                                                                 -------      ---------------

Cash and cash equivalents, ending                                               $319,440          $   121,409
                                                                                 =======           ==========
</TABLE>


                                         See notes to financial statements

<PAGE>


                  Presidential Associates I Limited Partnership


                          NOTES TO FINANCIAL STATEMENTS

                           December 31, 1996 and 1995


NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
                  POLICIES

    The Partnership was organized under laws of the State of Maryland on July 1,
    1983 to acquire a limited partnership  interest in Presidential Towers, Ltd.
    (the "operating partnership").

    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 revenue  and  expenses  during the
    reporting period. Actual results could differ from those estimates.

    Investment in the Operating Partnership

    The  investment in the operating  partnership  is reported  using the equity
    method of  accounting,  under  which the initial  investment  is recorded at
    cost, increased or decreased by the Partnership's share of income or losses,
    and decreased by distributions. The investment cannot be reduced below zero.

    Federal and State Income Taxes

    No  provision  or  benefit  for  income  taxes  has been  included  in these
    financial  statements since taxable income or loss passes through to, and is
    reportable by, the partners individually.

    Cash Equivalents

    For the purposes of the statement of cash flows,  the partnership  considers
    all highly  liquid  financial  instruments,  which consist of a money market
    account,  purchased  with a  maturity  of  three  months  or less to be cash
    equivalents.  The carrying  amount  approximates  fair value  because of the
    short maturity of this instrument.

NOTE B - INVESTMENT IN OPERATING PARTNERSHIP

    The Partnership  held a 94.99% interest in the operating  partnership  which
    constructed,  owns and operates four  49-story  residential  and  commercial
    towers in Chicago,  Illinois.  During 1995,  the  Partnership  agreed to the
    restructuring of the operating  partnership  which included the admission of
    an   additional   general   partner  and  an  amendment  to  the   operating
    partnership's   partnership   agreement.   The  amendment  resulted  in  the
    Partnership's  interest  in  the  operating  partnership  being  reduced  to
    19.998%. Further, all losses from the operating partnership are allocated to
    the new general partner.


<PAGE>


                  Presidential Associates I Limited Partnership


NOTE B - INVESTMENT IN OPERATING PARTNERSHIP (Continued)

    The  following  is a summary  of the  financial  position  of the  operating
    partnership  at December 31, 1996 and 1995,  and a summary of its results of
    operations  for each of the two years in the period ended December 31, 1996,
    prepared in conformity with generally accepted accounting principles.

<TABLE>
                                                  BALANCE SHEETS

                                                                              1996                    1995
                                                                       ------------------      -----------
<S>                                                                         <C>                     <C>          
Assets
  Buildings, improvements and personal property,
    net of accumulated depreciation of
    $68,493,872 and $62,249,876                                             $  81,659,639           $  86,196,802
  Land                                                                          7,798,111               7,798,111
  Other assets                                                                  8,514,187               8,336,270
                                                                            -------------           -------------

                                                                            $  97,971,937            $102,331,183
                                                                              ===========             ===========
Liabilities
  Mortgages payable                                                          $190,574,545            $188,551,650
  Other liabilities                                                             7,987,878               9,326,038
                                                                            -------------           -------------

                                                                              198,562,423             197,877,688
Partners' deficit                                                            (100,590,486)            (95,546,505)
                                                                              -----------             -----------

                                                                            $  97,971,937            $102,331,183
                                                                             ============             ===========
</TABLE>


                                             STATEMENTS OF OPERATIONS
<TABLE>

                                                                              1996                     1995
                                                                       ------------------       -----------
<S>                                                                           <C>                     <C>        
Revenue
  Rental                                                                      $24,999,329             $23,239,471
  Other                                                                         3,072,995               2,794,290
  Interest                                                                        192,068                 112,603
                                                                             ------------            ------------

                                                                               28,264,392              26,146,364
                                                                               ----------              ----------
Expenses
  Operating expenses                                                           27,846,040              27,019,082
  Amortization                                                                     72,979                 116,722
  Depreciation                                                                  6,243,996               6,190,654
                                                                              -----------             -----------

                                                                               34,163,015              33,326,458
                                                                               ----------              ----------

        Net loss                                                             $ (5,898,623)           $ (7,180,094)
                                                                              ===========             ===========
</TABLE>


<PAGE>


                  Presidential Associates I Limited Partnership


                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1996 and 1995


NOTE B - INVESTMENT IN OPERATING PARTNERSHIP (Continued)

    The  unrecognized  portion of cumulative  losses will be offset  against the
    Partnership's  share of future  income from  Presidential  Towers,  Ltd. The
    cumulative unrecognized loss at December 31, 1996 and 1995 is $87,999,502.

NOTE C - CAPITAL CONTRIBUTIONS

    Capital contributions receivable are recorded when received, and at December
    31, 1996 and 1995 are as follows:
<TABLE>

                                                                                  1996              1995
                                                                                --------          ------

<S>                                                                              <C>               <C>    
         Investor limited partners                                               $88,732           $88,732
         General partner                                                             100               100
                                                                                --------          --------

                                                                                 $88,832           $88,832
                                                                                  ======            ======
</TABLE>


NOTE D - RELATED PARTY TRANSACTIONS

    The  general  partner  had made  unsecured,  noninterest  bearing  operating
    deficit loans to the Partnership.  These loans were payable on demand and as
    of December 31, 1995,  $20,082 is due to WFC. During 1996,  these loans were
    paid in full.

    Management  believes it is not practicable to estimate the fair value of the
    advances from the general partner because loans with similar characteristics
    are not currently available to the partnership.

    During  1995,  the  partners  agreed to amend  the terms of the  partnership
    agreement.  The amendment  eliminated the annual  administration fee and the
    general  partner agreed to forgive the unpaid fees payable and the operating
    deficit loans. At December 31, 1995,  forgiveness of indebtedness  income of
    $921,249 is reflected in partnership income.

    As of December 31, 1996 and 1995, $14,020 and $1,652,  respectively,  is due
    from the operating  partnership for operating  expenses the Partnership paid
    on its behalf. The balance is due on demand.


<PAGE>


                  Presidential Associates I Limited Partnership


                    NOTES TO FINANCIAL STATEMENTS - CONTINUED

                           December 31, 1996 and 1995

NOTE E - RECONCILIATION OF NET LOSS

    The  Partnership's  income  for income  tax  purposes  for 1996 and 1995 was
calculated as follows:
<TABLE>

                                                            1996                   1995
                                                       ------------              --------

<S>                                                        <C>                 <C>        
       Net income for financial statement purposes         $230,481            $ 1,023,372
       Cancellation of indebtedness income                        -             52,381,829
       Amortization of construction period interest               -                (83,990)
            and taxes
       Accelerated depreciation                                   -               (148,285)
       Other                                                    (2)                 10,080
       Distribution from operating partnership
         recognized as income                             (229,049)               (102,980)
       Non-recognized portion of income (loss)
        from the operating partnership                      229,049             (2,241,636)
                                                            -------             ----------

       Income for income tax purposes                      $230,479            $50,838,390
                                                            =======             ==========
</TABLE>

<TABLE>

        In  addition,   the  net   difference   between   buildings   and
        improvements for tax purposes and financial statement purposes of
        the operating partnership for 1996 and 1995 is as follows:

                                                                                1996                   1995
                                                                          ----------------       ----------

<S>                                                                            <C>                    <C>        
           Buildings and improvements as reported                              $81,659,639            $86,196,802
           Buildings and improvements for tax purposes                          22,434,368             32,593,051
                                                                                ----------             ----------

                 Net difference                                                $59,225,271            $53,603,751
                                                                                ==========             ==========
</TABLE>


<PAGE>




<PAGE>



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


                  None.



<PAGE>



                                    PART III

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

         The  Partnership  has no  officers  or  directors.  Winthrop  Financial
manages  and  controls  substantially  all of the  Partnership  affairs  and has
general  responsibility  and  ultimate  authority in all matters  affecting  its
business.  As of March 1, 1997, names of the directors and executive officers of
Winthrop Financial and the position held by each of them, are as follows:
<TABLE>

                                                        Has Served as
                             Position Held with         a Director or
Name                         Winthrop Financial         Officer Since

<S>                          <C>                           <C> 
Michael L. Ashner            Chief Executive Officer       1-96
                             and Director

Richard J. McCready          President and                 7-95
                             Chief Operating Officer

Jeffrey Furber               Executive Vice President      7-95
                             and Clerk

Edward Williams              Chief Financial Officer       4-96
                             Vice President and
                             Treasurer

Peter Braverman              Senior Vice President          1-96
</TABLE>

         Michael  L.  Ashner,  age 45, has been the Chief  Executive  Officer of
Winthrop Financial  Associates,  A Limited Partnership ("WFA") since January 15,
1996.  From June 1994 until January 1996,  Mr. Ashner was a Director,  President
and  Co-chairman  of National  Property  Investors,  Inc.("NPI"),  a real estate
investment company.  Mr. Ashner was also a Director and executive officer of NPI
Property Management Corporation ("NPI Management") from April 1984 until January
1996. In addition,  since 1981 Mr. Ashner has been  President of Exeter  Capital
Corporation,  a firm which has organized and  administered  real estate  limited
partnerships.

         Richard J. McCready, age 38, is the President and Chief
Operating Officer of WFA and its subsidiaries.  Mr. McCready
previously served as a Managing Director, Vice President and Clerk
of WFA and a Director, Vice President and Clerk of the Managing
General Partner and all other subsidiaries of WFA.  Mr. McCready
joined the Winthrop organization in 1990.

         Jeffrey  Furber,  age 37, has been the Executive  Vice President of WFA
and the President of Winthrop  Management  since January 1996. Mr. Furber served
as a Managing  Director of WFA from January 1991 to December  1995 and as a Vice
President from June 1984 until December 1990.




<PAGE>



     Edward V. Williams,  age 56 , has been the Chief  Financial  Officer of WFA
since April 1996. From June 1991 through March 1996, Mr. Williams was Controller
of NPI and NPI  Management.  Prior to 1991, Mr.  Williams held other real estate
related positions including Treasurer of Johnstown American Companies and Senior
Manager at Price Waterhouse.

         Peter Braverman,  age 45, has been a Senior Vice President of WFA since
January  1996.  From June 1995 until  January  1996,  Mr.  Braverman  was a Vice
President  of NPI and NPI  Management.  From June 1991  until  March  1994,  Mr.
Braverman  was  President  of  the  Braverman  Group,  a  firm  specializing  in
management consulting for the real estate and construction industries. From 1988
to 1991, Mr. Braverman was a Vice President and Assistant Secretary of Fischbach
Corporation, a publicly traded, international real estate and construction firm.

         One or more of the above  persons are also  directors  or officers of a
general  partner (or  general  partner of a general  partner)  of the  following
limited partnerships which either have a class of securities registered pursuant
to Section 12(g) of the  Securities  and Exchange Act of 1934, or are subject to
the reporting  requirements of Section 15(d) of such Act:  Winthrop  Partners 79
Limited Partnership; Winthrop Partners 80 Limited Partnership; Winthrop Partners
81  Limited   Partnership;   Winthrop   Residential   Associates  I,  A  Limited
Partnership; Winthrop Residential Associates II, A Limited Partnership; Winthrop
Residential  Associates  III, A Limited  Partnership;  1626 New York  Associates
Limited Partnership; 1999 Broadway Associates Limited Partnership;  Indian River
Citrus  Investors  Limited  Partnership;  Nantucket  Island  Associates  Limited
Partnership; One Financial Place Limited Partnership;  Riverside Park Associates
Limited Partnership;  Springhill Lake Investors Limited Partnership;  Twelve AMH
Associates   Limited   Partnership;   Winthrop   California   Investors  Limited
Partnership;  Winthrop Growth Investors I Limited Partnership;  Winthrop Interim
Partners  I, A  Limited  Partnership;  Southeastern  Income  Properties  Limited
Partnership;  Southeastern  Income Properties II Limited  Partnership;  Winthrop
Miami Associates Limited  Partnership;  and Winthrop Apartment Investors Limited
Partnership.

         Except  as  indicated  above,  neither  the  Partnership  nor  Winthrop
Financial  has any  significant  employees  within the meaning of Item 401(b) of
Regulation  S-B.  There  are no family  relationships  among  the  officers  and
directors of Winthrop Financial.

     Based  solely  upon  a  review  of  Forms  3 and 4 and  amendments  thereto
furnished to the Partnership under Rule 16a-3(e) during the  Partnership's  most
recent  fiscal  year  and  Forms  5 and  amendments  thereto  furnished  to  the
Partnership  with respect to its most recent fiscal year, the Partnership is not
aware of any director, officer, beneficial owner of more than ten percent of the
units of imited partnership interest in the Partnership 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.

<PAGE>
Item 10.         Executive Compensation.

     The Partnership is not required to and did not pay any  compensation to the
officers or  directors  of the  General  Partner.  The  General  Partners do not
presently pay any  compensation  to any of its officers or directors.  (See Item
12, "Certain Relationships and Related Transactions.")

Item 11.          Security Ownership of Certain Beneficial Owners and
                  Management.

         (a)      Security ownership of certain beneficial owners.

         The  Partnership  is a  limited  partnership  and has  issued  Units of
limited partnership interest.  The Units are not voting securities,  except that
the consent of the Limited Partners is required to approve or disapprove certain
transactions  including the removal of a General Partner,  certain amendments to
the Partnership Agreement, the dissolution of the Partnership or the sale of all
or substantially  all of the assets of the Partnership.  No Limited Partner owns
beneficially more than 5% of the Units in the Partnership.

         No  other  person  or  group  is  known  by the  Partnership  to be the
beneficial owner of more than 5% of the outstanding  partnership  interest as of
the date of this Annual Report.

         (b)      Security Ownership of Management.

         One Unit of limited partnership  interest is owned by a limited partner
of Linnaeus  who is also a limited  partner of the general  partner of WFA and a
former  employee  and  officer of WFA,  Winthrop  Financial  and First  Winthrop
Corporation. In addition, WFA owns two units of limited partnership interest. No
other  officer,  director or partner of Winthrop  Financial or  Linnaeus-Phoenix
owns any Units as of the date hereof in his individual capacity.

         (c)      Changes in Control.

         As a result of the  implementation  of the  Restructuring  Agreement in
1995, TKI Presidential  Partners, in exchange for a commitment to make a capital
contribution of $14,000,000 to the Operating  Partnership over 6 years, acquired
certain   control  rights  over  major  business   decisions  of  the  Operating
Partnership  previously  held by the  Partnership,  or WFC Realty  Co.,  Inc. In
addition, as a result of the Restructuring  Agreement the Partnership's interest
in the Operating Partnership was reduced from 94.99% to 19.998%.



<PAGE>




Item 12.          Certain Relationships and Related Transactions.

         (a)      Transactions with Management and Others.

         Pursuant  to  the  terms  of the  Partnership  Agreement,  the  General
Partners and their affiliates are entitled to receive various fees, commissions,
cash   distributions,   allocations  of  taxable  income  or  loss  and  expense
reimbursements from the Partnership.

         In 1995,  the partners  agreed to amend the  Partnership's  partnership
agreement  to  eliminate  the annual  administration  fee  payable  to  Winthrop
Financial. In addition, Winthrop Financial agreed to forgive the unpaid fees and
operating deficit loans which had previously been made. As a result, at December
31,  1995,  $921,249 of  forgiveness  of  indebtedness  income is  reflected  in
partnership income.

         During April of 1997,  however,  the Partnership made a distribution to
its partners of $200,200 ($2,002 to the General  Partners and $198,198  ($335.93
per unit) to the limited partners.



<PAGE>




                                     PART IV

Item 13.          Exhibits, Financial Statement Schedules, and Reports on
                  Form 8-K.

(a)               Exhibits:

                  The Exhibits listed on the accompanying  Index to Exhibits are
                  filed as part of this Annual Report and  incorporated  in this
                  Annual Report as set forth in said Index.

(b)               Reports on Form 8-K - None




<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.

                        PRESIDENTIAL ASSOCIATES I LIMITED
                                   PARTNERSHIP

                        By: Winthrop Financial Co., Inc.,
                            Managing General Partner

                        By: /s/ Michael Ashner
                                Michael Ashner
                                Chief Executive Officer

                         Date:  April 14, 1997

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
registrant and in the capacities and on the dates indicated.

Signature/Name              Title                     Date

/s/ Michael Ashner       Chief Executive           April 14, 1997
------------------
Michael Ashner           Officer and Director


/s/ Edward V. Williams   Chief Financial Officer   April 14, 1997
Edward V. Williams



<PAGE>




                                  EXHIBIT INDEX

Exhibit No.                                                          

3.,4              Amended and Restate Limited Partnership             (1)
                  Agreement and Certificate of Amendment of
                  Presidential Associates I Limited Partnership

  (b)             Amendment to Amended and Restated Limited           (3)
                  Partnership Agreement and Certificate of
                  Limited Partnership of Presidential Associates
                  I Limited Partnership dated April 19, 1995

10(a)             Form of Investor Bond issued to the Partnership     (1)
                  by Continental Casualty Company

  (b)             Trust Agreement dated as of September 15,           (1)
                  1980 between the Operating Partnership and
                  LaSalle National Bank

  (c)             Letter of Credit and Reimbursement Agreement        (1)
                  dated as of July 21, 1983 between the Operating
                  Partnership and Citibank, N.A.

  (d)             Revolving Credit and Term Loan Agreement dated      (1)
                  as of September 30, 1983 between the Partnership
                  and Citibank, N.A.

  (e)             Regulatory Agreement for Multi-Family Housing       (1)
                  project dated as of July 1, 1983 between LaSalle
                  National Bank, as Trustee, the Operating
                  Partnership, the General Partners and the
                  Secretary of Housing and Urban Development

  (f)             Building Loan Agreement dated as of July 1, 1983    (1)
                  between LaSalle National Bank, as Trustee, and
                  American National Bank & Trust Company of Chicago,
                  as Trustee for the City of Chicago

  (g)             Mortgage Note dated as of July 1, 1983 in the       (1)
                  amount of $158,900,000 from LaSalle National
                  Bank, as Trustee, to American National Bank &
                  Trust Company of Chicago, as Trustee

  (h)             Mortgage dated as of July 1, 1983 between           (1)
                  LaSalle National Bank and Trust Company of
                  Chicago, as Trustee

  (i)             Architectural Services Agreement dated as of        (1)
                  July 1, 1983 between LaSalle National Bank,
                  as Trustee, and Solomon Cordwell Buenz &
                  Associates, Inc.



<PAGE>




  (j)             Construction Contract dated as of July 21,          (1)
                  1983 between LaSalle National Bank, as Trustee,
                  and James McHugh Development Co.

  (k)             Management Agreement dated as of July 14,           (1)
                  1983 between the Operating Partnership and
                  The Habitat Company

  (l)             Financing Agreement dated as of July 1, 1983        (1)
                  among the City of Chicago, the Operating
                  Partnership, LaSalle National Bank, as Trustee,
                  Madison-Canal Company, McHugh Levin Associates
                  Venture and American National Bank & Trust Company
                  of Chicago, as Trustee

  (m)             Security Agreement - (Chattel Mortgage) dated       (1)
                  July 1, 1983 between LaSalle National Bank,
                  as Trustee, and American National Bank & Trust
                  Company of Chicago, as Trustee

  (n)             Commitment Letter dated March 22, 1983 of           (1)
                  GNMA with respect to the Project

  (o)             Loan Agreement dated September 20, 1988 between     (2)
                  Presidential Towers, Ltd. and American National
                  Bank and Trust Company of Chicago

  (p)             Third Amended and Restated Limited Partnership      (3)
                  Agreement of Presidential Towers, Ltd., dated
                  April 19, 1995

  (q)             Amended and Restated Substitute Mortgage Note,      (3)
                  dated April 18, 1995 made by LaSalle National
                  Trust, N.A., as trustee, in favor of the Secretary
                  of Housing and Urban Development

  (r)             Third Modification to Mortgage, dated April 18,     (3)
                  1995, between LaSalle National Trust, N.A., as
                  Trustee the Secretary of Housing and Urban Development

  (s)             Amendment to Regulatory Agreement for Multifamily   (3)
                  Housing Projects, dated as of April 18, 1995,
                  between LaSalle National Bank, as Trustee, and
                  Presidential Towers, Ltd. and the Secretary of
                  Housing and Urban Development

  (t)             Restructuring Agreement, dated April 18, 1995,      (3)
                  among LaSalle National Trust, as Trustee,
                  Presidential Towers, Ltd. and the Secretary of
                  Housing and Urban Development.

  27.             Financial Data Schedule

--------------------
(1)      Incorporated herein by reference to the Partnership's
         Registration Statement on Form 10 (Commission Partnership
         file number 0-12210).
(2)      Incorporated  herein by reference to Exhibit 10(p) to the  Registrant's
         Annual Report on Form 10-K for the year ended December 31, 1985.
(3)      Incorporated  herein by reference to Registrant's Annual Report on Form
         10-K for the year ended December 31, 1995.