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                                  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

                         Commission file number: 0-25780

                             PRESIDIO CAPITAL CORP.

             (Exact name of registrant as specified in its charter)

      British Virgin Islands                                 N/A
(State or other jurisdiction of                       (I.R.S. Employer
 incorporation or organization)                      Identification No.)

c/o Hemisphere Management (Cayman) Limited
Zephyr House, Mary Street, Grand Cayman,
Cayman Islands, British West Indies                           N/A
(Address of principal executive offices)                  (Zip Code)


Registrant's telephone number, including area code: (441) 295-9166

Former name, former address and former fiscal year, if changed since last report
                                 N/A

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  and 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 the number of shares outstanding of each of the issuer's classes of
                common stock, as of the latest practicable date:

         As of May 2, 1997, there were 8,797,255 Class A Common Shares,
                       U.S. $0.01 par value, outstanding.
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<PAGE>
                     PRESIDIO CAPITAL CORP. AND SUBSIDIARIES

                                TABLE OF CONTENTS



PART I - FINANCIAL INFORMATION   
                                               
Item 1.      Financial Statements

                  Consolidated  Statements  of Net Assets in  Liquidation  as of
                  March 31, 1997 (unaudited) and December 31, 1996 (audited)  

                  Unaudited Consolidated  Statements of Changes in Net Assets in
                  Liquidation  for the Three Month  Periods Ended March 31, 1997
                  and 1996  

                  Notes to Consolidated Financial Statements  

Item 2.      Management's Discussion and Analysis of Financial Condition        
             and Liquidation Activities

Part II  - OTHER INFORMATION

Item 1.      Legal Proceedings                                                  

Item 6.      Exhibits and Reports on Form 8-K                                   


SIGNATURES
<PAGE>
<TABLE>
<CAPTION>
                        PRESIDIO CAPITAL CORP. AND SUBSIDIARIES

                 CONSOLIDATED STATEMENTS OF NET ASSETS IN LIQUIDATION

                   (Expressed in thousands of United States dollars)

                                                            March 31,    December 31,
                                                              1997           1996
                                                           (unaudited)     (audited)
                                                           -----------     ---------
<S>                                                          <C>           <C>
Assets:

Cash and cash equivalents (including restricted
    cash of $20,864 and $20,527 at March 31, 1997
    and December 31, 1996) ............................      $119,408      $ 78,639
Investments ...........................................        26,462        29,993
Contract rights .......................................         1,283        41,083
Notes and other receivables ...........................        20,903        22,467
Loans to affiliates ...................................        40,538        38,532
Other assets ..........................................         1,343         1,814
                                                             --------      --------

                      Total assets ....................      $209,937      $212,528
                                                             ========      ========


Liabilities:

Debt ..................................................      $    900      $    900
Dividends payable .....................................        16,523          --
Estimated costs of liquidation ........................        24,012        29,434
Estimated tax liability ...............................         5,363         5,970
                                                             --------      --------

                      Total liabilities ...............        46,798        36,304
                                                             --------      --------

                              Net Assets in Liquidation      $163,139      $176,224
                                                             ========      ========

                    See notes to consolidated financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                     PRESIDIO CAPITAL CORP. AND SUBSIDIARIES

                 UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN
                            NET ASSETS IN LIQUIDATION

                (Expressed in thousands of United States dollars)



                                                        Three Month Periods
                                                          Ended March 31,
                                                   -----------------------------
                                                      1997               1996
                                                   ---------          ---------
<S>                                                <C>                <C>
Net Assets in Liquidation,
    beginning of period ..................         $ 176,224          $ 385,228

    Dividends declared ...................           (16,523)           (52,572)

    Accretions of loans to
       affiliates ........................             2,006                109

    Increase from revaluation of
       assets and liabilities ............               380              1,349

    Interest income ......................             1,052              1,018
                                                   ---------          ---------

Net Assets in Liquidation,
    end of period ........................         $ 163,139          $ 335,132
                                                   =========          =========

                 See notes to consolidated financial statements 
</TABLE>
<PAGE>
                     PRESIDIO CAPITAL CORP. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     (All amounts in United States Dollars)

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Presidio Capital Corp. ("Presidio" and, collectively with its subsidiaries,  the
"Company") was organized on August 29, 1994, in the British Virgin Islands under
the International  Business  Companies Act (Cap. 291), to purchase,  directly or
through  its  subsidiaries,  substantially  all  of  the  assets  of  Integrated
Resources,  Inc.  ("Integrated") for the purpose of liquidation and distribution
of capital to shareholders.  The Company was formed in accordance with the Sixth
Amended  Plan  of  Reorganization   Submitted  by  the  Official   Committee  of
Subordinated Bondholders and the Steinhardt Group, (the "Plan") confirmed by the
United  States  Bankruptcy  Court  for the  Southern  District  of New York (the
"Bankruptcy  Court")  by order  dated  August 8, 1994.  The Plan was  officially
consummated on November 3, 1994 (the "Consummation Date").

The Plan gave  creditors of  Integrated  the right to receive 88% of  Presidio's
Class A shares in lieu of all or part of their cash  distribution  as defined in
the Plan. The remaining 12% of stock was issued to and purchased by IR Partners,
a general partnership among Steinhardt  Management Company Inc.,  ("Steinhardt")
certain of its affiliates and an affiliate of Charles E. Davidson, the principal
of Presidio Management Company, LLC ("Presidio  Management") and Chairman of the
Board of the  Company  and Joseph M.  Jacobs,  the Chief  Executive  Officer and
President of the Company, for approximately $35.8 million, under the terms of an
Asset Purchase Agreement.

Reference is made to the notes to the consolidated  financial statements for the
year ended  December 31, 1996,  included in the Company's  Annual Report on Form
10-K  (the  "Form  10-K")  for  information  with  regard  to the  organization,
significant  accounting  policies and disclosures made pursuant to the rules and
regulations of the Securities and Exchange Commission.

The interim financial data is unaudited;  however, in the opinion of management,
the Company's  interim financial data for the three month period ended March 31,
1997  includes all  adjustments  (consisting  of normal  recurring  adjustments)
necessary  for fair  presentation  of the results of the interim  period.  These
consolidated  interim  financial  statements and notes thereto should be read in
conjunction with the consolidated financial statements and notes to consolidated
financial statements included in the Form 10-K.

Liquidation Basis

The Company's  financial  statements are prepared under the liquidation basis of
accounting.  The liquidation basis of accounting is appropriate when liquidation
is imminent and the Company is no longer viewed as a going  concern.  Under this
method of accounting, assets are stated at their estimated net realizable values
and  liabilities  are  stated  at  their  anticipated  settlement  amounts.  The
valuations presented in these financial statements are presented in U.S. dollars
under U.S. Generally Accepted Accounting Principles.

The valuation of assets and liabilities  require many estimates and assumptions.
The actual  value of any  liquidating  distributions  depends  upon a variety of
factors  including,  among  others,  the  actual  market  prices  of any  assets
distributed in kind,  the proceeds from the sale of any of the Company's  assets
and the actual timing of distributions.
<PAGE>
The  valuations  presented  in the  accompanying  Statements  of Net  Assets  in
Liquidation  represent current estimates,  based on facts and circumstances,  of
the estimated net realizable value of assets and estimated costs of implementing
the Plan. The net values  ultimately  realized could be higher or lower than the
amounts recorded.

NOTE 2 - INVESTMENTS

During the quarter ended March 31, 1997, the Company  purchased units in certain
real estate limited  partnerships,  wherein  subsidiaries of the Company are the
General Partner,  for an aggregate cost of approximately  $0.5 million.  Through
March 31, 1997, the total  investments in real estate limited  partnerships were
approximately $4.2 million. These purchases were intended to be consistent with,
and incidental to the Company's  liquidation  strategy,  as these purchases will
protect and enhance the values of the respective general partnership positions.

NOTE 3 - CONTRACT RIGHTS

At December 31,  1996,  there were four  Contract  Rights  remaining,  which the
Company  estimated had an approximate net realizable value of $41.1 million.  On
March 12, 1997, a  Partnership  exercised  its option and prepaid  approximately
$40.0 million to the Company,  which represented the remaining balance due under
such Contract Right obligation.

NOTE 4 - DIVIDENDS

On March 19,  1997,  the Board of  Directors  of  Presidio  declared  a dividend
payable on April 3, 1997, of approximately $16.5 million, or $1.65 per share, to
all shareholders of record as of March 25, 1997. After payment of this dividend,
Presidio will have made liquidating distributions since consummation of the Plan
of $364.3 million or $36.38 per share.


NOTE 5 - REVALUATION OF ASSETS AND LIABILITIES

The increase in Net Assets in Liquidation  resulting from  revaluation of assets
and  liabilities for the three month periods ended March 31, 1997 and 1996 is as
follows:
<TABLE>
<CAPTION>
                                                                  (000's)
                                                            Three Month Periods
                                                              Ended March 31,
                                                         -----------------------
                                                           1997             1996
                                                           ----             ----
<S>                                                      <C>              <C>
Increase in estimated net
    realizable value of assets ...............           $   15           $ --

Realized gains on liquidation
    and other ................................              365            1,349
                                                         ------           ------

                                                         $  380           $1,349
                                                         ======           ======
</TABLE>
<PAGE>
NOTE 6 - LITIGATION

Mark Erwin, Trustee, et. al. v. Resources High Equity,  Inc.,et. al. On or about
May 11, 1993 the HEP  Partnerships  (the "HEP  Partnerships",  a series of three
public partnerships which invested in unleveraged commercial real estate between
1985-1989),  were advised of the  existence  of an action (the "HEP  Action") in
which a complaint (the "HEP  Complaint") was filed in the Superior Court for the
State of  California  for the County of Los Angeles (the "Court") on behalf of a
purported  class  consisting  of all of the  purchasers  of limited  partnership
interests in the HEP Partnerships.

In January, 1996, the parties to the HEP Action agreed upon a revised settlement
(the "Revised  Settlement").  The principal  features of the Revised  Settlement
were the  surrender  by the  General  Partners  of  certain  fees  that they are
entitled to receive,  the reorganization of the HEP Partnerships into a publicly
traded real estate  investment trust ("REIT"),  and the issuance of stock in the
REIT  to the  limited  partners  (in  exchange  for  their  limited  partnership
interests) and General Partners (in exchange for their existing  interest in the
HEP  Partnerships  and future  income).  The  principal  benefits of the Revised
Settlement were (1) substantially  increased  distributions to limited partners,
(2) market liquidity  through a NASDAQ listed security,  and (3) the opportunity
for growth and  diversification  that was not  permitted  under the  Partnership
structure. There were also other significant tax benefits,  corporate governance
advantages and other benefits of the Revised Settlement.

On July 18, 1996, the Court  preliminarily  approved the Revised  Settlement and
made a preliminary  finding that the Revised  Settlement was fair,  adequate and
reasonable to the class.  In August 1996, the Court approved the form and method
of  notice  regarding  the  Revised  Settlement  which  was sent to the  limited
partners.

Only approximately 2.5% of the limited partners of the HEP Partnerships  elected
to "opt out" of the Revised Settlement.  Despite this,  following the submission
of  additional  materials,  the  Court  entered  an order on  January  14,  1997
rejecting  the  Revised  Settlement  and  concluded  that  there had not been an
adequate  showing that the settlement was fair and reasonable.  Thereafter,  the
plaintiffs  filed a motion  seeking  to have the  Court  reconsider  its  order.
Subsequently, the defendants withdrew the Revised Settlement and at a hearing on
February  24,  1997,  the Court  denied the  plaintiffs'  motion.  Also,  at the
February 24, 1997 hearing, the Court recused itself from considering a motion to
intervene and to file a new complaint in intervention by one of the objectors to
the Revised  Settlement,  and granted the request of one plaintiffs' law firm to
withdraw as class counsel and scheduled future hearings on various matters.

The HEP  Partnerships  and the General  Partners believe that each of the claims
asserted in the  Consolidated  Complaint are meritless and intend to continue to
vigorously defend the HEP Action.

Presidio v. Koll Management Services,  Inc., Liquidity Financial Group, L.P. and
Liquidity Financial  Corporation.  On November 9, 1995, Presidio and the General
Partners  of the HEP  Partnerships,  commenced  an action in the  United  States
Bankruptcy Court for the Southern District of New York,  against Koll Management
Services,  Inc.  ("Koll"),  Liquidity  Financial  Group,  L.P. and the Liquidity
Financial  Corporation  (collectively,  "Liquidity").  The  plaintiffs  sought a
preliminary   and   permanent   injunction   to   prevent   violations   of  the
Confidentiality  and  Standstill  Agreement  (the  "Agreement")  which  had been
<PAGE>
entered  into  between  Koll  and   Integrated   in  1994  during   Integrated's
reorganization  proceeding  and damages in an amount to be proven at trial.  The
complaint alleged that Liquidity, which had become an affiliate of Koll and was,
for that reason,  bound by the Agreement,  was violating the Agreement by, among
other things, objecting to a settlement involving the HEP Partnerships which was
an integral part of the Integrated  Plan of  Reorganization,  and that Liquidity
was  otherwise   interfering  with  the  management  and  policies  of  the  HEP
Partnerships.

On November 21, 1995,  after a contested  hearing,  the Bankruptcy Court granted
plaintiffs' motion for a preliminary injunction.  The preliminary injunction has
been  extended  periodically  since its entry.  The  defendants  have denied the
material  allegations  of the  complaint,  and asserted  various  defenses.  The
parties are actively  engaged in  discovery.  On March 7, 1997,  the  defendants
filed a motion  seeking to dissolve  the  preliminary  injunction.  On April 11,
1997, the Bankruptcy Court denied the motion.
<PAGE>
ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND LIQUIDATION ACTIVITIES

The following section includes a discussion and analysis of financial  condition
and liquidation activities of the Company for the three month period ended March
31, 1997.

Liquidity and Capital Resources

The  Company's  primary  objectives  are to liquidate its assets in the shortest
time period  possible  while  realizing  the maximum  values for such assets and
reduction of operating costs. Although the Company considers its assumptions and
estimates as to the values and timing of such liquidations to be reasonable, the
period of time to  liquidate  the assets and  distribute  the  proceeds  of such
assets  is  subject  to   significant   business,   economic   and   competitive
uncertainties and contingencies, many of which are beyond the Company's control.

Cash  available for  distributions,  defined as cash and cash  equivalents  less
restricted cash,  increased by approximately $40.4 million for the quarter ended
March 31, 1997, primarily due to the prepayment of one of the Company's Contract
Right Receivables.

Restricted  cash at  March  31,  1997 was  approximately  $20.9  million  and is
primarily  comprised of reserves for  bankruptcy  claims of  approximately  $1.0
million and deposits  for escrow  accounts as security  for  indemnification  of
certain former officers and directors of Integrated and the Class A Directors of
Presidio of approximately $18.7 million (see A) and B) below).

A)       The  indemnity  for the former  officers and  directors  of  Integrated
         ("Qualified Indemnity") is collateralized by cash and all the stock and
         partnership interests in the Company's non-U.S.  subsidiaries under the
         Indemnification  Agreements  (the  "Indemnification  Agreements").  All
         distributions made by the Company are limited by a requirement that the
         Company have certain minimum net assets after distribution to discharge
         any pending and expected Qualified Indemnity  obligations.  The balance
         in the Qualified  Indemnity  escrow account at March 31, 1997 was $11.2
         million.

         Presidio's  ability  to  make  distributions  to  stockholders  remains
         limited in accordance with the terms of the indemnification obligations
         of the former officers and directors of Integrated and its subsidiaries
         under  the  Indemnification  Agreements.  Presidio  has  no  basis  for
         believing  that  any  of  those  indemnification  obligations  will  be
         material and, to date, no claim for such indemnification has been made.
         However,  pursuant  to the  terms  of the  Indemnification  Agreements,
         Presidio  is required to notify  beneficiaries  thereunder  of proposed
         dividends and certain other proposed  transfers of cash made by certain
         subsidiaries   of  Presidio  to  Presidio,   and  by  Presidio  to  its
         shareholders,  and to retain the value of certain collateral granted as
         security for such indemnification obligations. Presidio provided notice
         to  the  beneficiaries  of  the  Indemnification  Agreements  prior  to
         distribution of all dividends paid and declared during the three months
         ended March 31, 1997.
<PAGE>
B)       The Plan also provided for  indemnification of the Class A Directors of
         Presidio. The indemnification  amounts are secured by an initial escrow
         deposit made on the  Consummation  Date.  Presidio is also  required to
         make quarterly escrow deposits equal to the greater of (i) $750,000, or
         (ii) 1% of any amounts  distributed to  shareholders  of Presidio,  for
         additional indemnification security. In accordance therewith,  Presidio
         deposited  $750,000  during  the first  quarter of 1997.  The  escrowed
         amounts will not be available for  distribution to  shareholders  until
         the  indemnification  agreement  expires.  The  balance  in the Class A
         Directors escrow account at March 31, 1997 was $7.5 million.

Presidio  believes  that cash on hand,  revenues  generated  from  interests  in
businesses  that  continue  to operate  and  proceeds  from the  disposition  of
businesses  and  other  assets  will be  sufficient  to  support  the  Company's
operations and meet its obligations.
<PAGE>
Liquidation Activities

The Company's cash and cash equivalents increased by $40.8 million for the three
month period ended March 31, 1997, as compared to an increase of $134.4  million
for the same  periods of the prior  year.  Excess  cash was made  available  for
distribution  to  shareholders on March 19, 1997, when the Board of Directors of
Presidio  declared a dividend payable on April 3, 1997, of  approximately  $16.5
million, or $1.65 per share, to all shareholders of record as of March 25, 1997.
After  payment  of  this   dividend,   Presidio   will  have  made   liquidating
distributions  since  consummation  of the Plan of $364.3  million or $36.38 per
share.

The components of the change in cash and cash equivalents, are as follows:
<TABLE>
<CAPTION>
                                                                     (Millions)
                                                                    (unaudited)
                                                                Three Month Periods
                                                                     March 31,

                                                               1997          1996
                                                              ------       -------
<S>                                                           <C>          <C>
Cash Inflow
Contract rights securitization proceeds, net .......          $   --       $ 205.1
Other liquidating activities .......................            40.5           8.8
Operating cash inflows .............................             6.2           2.7
Interest income ....................................             1.1           1.0
                                                              ------       -------
     Total Cash Inflows ............................            47.8         217.6
                                                              ------       -------

Cash Outflows
Dividends paid .....................................              --          30.0
Loans to affiliates ................................              --          31.5
Legal and other expenses - contract rights .........              --          14.7
Legal, accounting and consulting fees ..............             1.7           1.9
General, administrative and other costs ............             4.1           4.5
Bankruptcy claims paid .............................             0.6            --
Management fees ....................................             0.6           0.6
                                                              ------       ------- 
     Total Cash Outflows ...........................             7.0          83.2
                                                              ------       -------
Increase in cash and cash equivalents ..............            40.8         134.4
Cash and cash equivalents, beginning of period .....            78.6         120.6
                                                              ------       -------
Cash and cash equivalents, end of period ...........          $119.4       $ 255.0
                                                              ======       =======
</TABLE>
Current Operations

Operating  cash  inflows  from  period to period are not  comparable  due to the
timing of liquidation activities, and the size of the remaining portfolio.

During the quarter ended March 31, 1997,  payments were made in connection  with
the  resolution  of  certain  remaining   disputed   bankruptcy  claims  against
Integrated of $0.6 million. The payments were made in accordance with the Plan.
<PAGE>
Legal,   accounting  and  consulting   fees,  and   miscellaneous   general  and
administrative  expenses  decreased  in the  quarter  ended March 31,  1997,  as
compared  to the  same  period  of the  prior  year  due to  timing  of  various
liquidating activities, and the reduction of the overall portfolio of assets.

For the three months ended March 31, 1997

Investments

During the quarter ended March 31, 1997, the Company  purchased units in certain
real estate limited  partnerships,  wherein  subsidiaries of the Company are the
General Partner,  for an aggregate cost of approximately  $0.5 million.  Through
March 31, 1997, the total  investments in real estate limited  partnerships were
approximately $4.2 million. These purchases were intended to be consistent with,
and incidental to the Company's  liquidation  strategy,  as these purchases will
protect and enhance the values of the respective general partnership positions.

Contract Rights

At December 31,  1996,  there were four  Contract  Rights  remaining,  which the
Company  estimated had an approximate net realizable value of $41.1 million.  On
March 12, 1997, a  Partnership  exercised  its option and prepaid  approximately
$40.0 million to the Company,  which represented the remaining balance due under
such Contract Right obligation.  The prepayment represented approximately 97% of
the Company's remaining investment in its Contract Right portfolio.
<PAGE>
                     PRESIDIO CAPITAL CORP. AND SUBSIDIARIES
                           PART II - OTHER INFORMATION

Item 1.   Legal Proceedings

The  following  information  should be read in  conjunction  with Item 3. "Legal
Proceedings" of the Company's December 31, 1996 Form 10-K.

Mark Erwin,  Trustee,  et al v.  Resources  High Equity,  Inc.,  et al (the "HEP
Action")

Presidio v. Koll Management Services,  Inc., Liquidity Financial Group, L.P. and
Liquidity Financial Corporation.

Reference is made to Note 6 of the Consolidated  Financial Statements in Part I,
Item 1, Financial Statements.

Item 6.  Exhibits and Reports on Form 8-K

         (a)    Not applicable

         (b)    The  Company  was not  required  to file any reports on Form 8-K
                during the quarter ended March 31, 1997.
<PAGE>

                                   SIGNATURES

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

                                                  PRESIDIO CAPITAL CORP.
                                                    (Registrant)

                                             By:  /s/Joseph M.  Jacobs
                                                  ----------------- 
                                                  Joseph M. Jacobs
                                                  Chief Executive Officer and
                                                  President

                                             By:  /s/Jay L. Maymudes
                                                  ------------------
                                                  Jay L. Maymudes
                                                  Vice President, Treasurer and 
Date: May 14, 1997                                Chief Financial Officer