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 JUNE 30, 1999

                                       or

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

           For the transition period from _________ to _________.

                          COMMISSION FILE NO. 33-98136

                      CHELSEA GCA REALTY PARTNERSHIP, L.P.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

       DELAWARE                                            22-3258100
   (STATE OR OTHER JURISDICTION                         (I.R.S. EMPLOYER
 OF INCORPORATION OR ORGANIZATION)                      IDENTIFICATION NO.)

                  103 EISENHOWER PARKWAY, ROSELAND, NEW JERSEY 07068
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES - ZIP CODE)

                                 (973) 228-6111
              (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 __.

There are no outstanding shares of Common Stock or voting securities.

<PAGE>

                      CHELSEA GCA REALTY PARTNERSHIP, L.P.

                                      INDEX


PART I.  FINANCIAL INFORMATION


Item 1. Financial Statements (Unaudited)                                   Page

        Condensed Consolidated Balance Sheets
          as of June 30, 1999 and December 31, 1998....................      3

        Condensed Consolidated Statements of Income for the
          three and six months ended June 30, 1999 and 1998............      4

        Condensed Consolidated Statements of Cash Flows for the
          six months ended June 30, 1999 and 1998......................      5

        Notes to Condensed Consolidated Financial Statements                 6

Item 2. Management's Discussion and Analysis of Financial Condition and
          Results of Operations.........................................    10

Item 3. Quantitative and Qualitative Disclosures about Market Risk......    16

PART II.  OTHER INFORMATION


Item 6.       Exhibits and Reports on Form 8-K..........................   17

Signatures..............................................................   18

<PAGE>

ITEM 1.  FINANCIAL STATEMENTS
                      CHELSEA GCA REALTY PARTNERSHIP, L.P.
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (IN THOUSANDS)
<TABLE>
<CAPTION>

                                                                                        JUNE 30          December 31,
                                                                                         1999               1998
                                                                                   ----------------     ---------------
                                                                                      (Unaudited)         (NOTE 1)
Assets
Rental properties:
<S>                                                                                    <C>                <C>
     Land.....................................................                         $108,600           $109,318
     Depreciable property.....................................                          704,446            683,408
                                                                                   -----------------    ---------------
Total rental property.........................................                          813,046            792,726
Accumulated depreciation......................................                         (120,110)          (102,851)
                                                                                   -----------------    ---------------

Rental properties, net........................................                          692,936            689,875
Cash and cash equivalents.....................................                           12,172              9,631
Notes receivable-related party................................                            1,400              4,500
Deferred costs, net...........................................                           15,588             17,766
Properties held for sale......................................                            4,125              8,733
Other assets..................................................                           52,452             42,847
                                                                                    -----------------    --------------

TOTAL ASSETS..................................................                        $ 778,673           $773,352
                                                                                    =================    ==============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
     Unsecured bank debt......................................                        $ 161,035           $151,035
     7.75% Unsecured Notes due 2001...........................                           99,865             99,824
     7.25% Unsecured Notes due 2007...........................                          124,727            124,712
     Construction payables....................................                            7,102             12,927
     Accounts payable and accrued expenses....................                           19,305             19,769
     Obligation under capital lease...........................                            9,530              9,612
     Accrued distribution payable.............................                           14,668              3,274
     Other liabilities........................................                           26,413             29,257
                                                                                   -----------------    ----------------
TOTAL LIABILITIES.............................................                          462,645            450,410

Commitments and contingencies

Partners' capital:
     General partner units outstanding, 15,742 in 1999 and
        15,608 in 1998........................................                          275,904            280,391
     Limited partners units outstanding, 3,370 in 1999 and
        3,429 in 1998.........................................                           40,124             42,551
                                                                                   ------------------   -----------------
     TOTAL PARTNERS' CAPITAL..................................                          316,028            322,942
                                                                                   ------------------   -----------------
     TOTAL LIABILITIES AND PARTNERS' CAPITAL..................                        $ 778,673          $ 773,352
                                                                                   ==================   =================
</TABLE>


THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

<PAGE>


                      CHELSEA GCA REALTY PARTNERSHIP, L.P.
                   CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998
                                   (UNAUDITED)
                      (IN THOUSANDS, EXCEPT PER UNIT DATA)

<TABLE>
<CAPTION>
                                                                      Three Months                     Six Months
                                                                     Ended June 30,                  Ended June 30,
                                                                 1999          1998              1999          1998
                                                             ------------  ------------      ------------  ------------
Revenues:
<S>                                                           <C>           <C>               <C>           <C>
   Base rent...............................................   $24,580       $20,815           $49,135       $40,081
   Percentage rent.........................................     2,644         1,951             5,015         3,737
   Expense reimbursements..................................     9,351         8,529            17,543        15,329
   Other income............................................     2,305           773             4,150         1,427
                                                             ----------   ------------      ------------  ------------
TOTAL REVENUES.............................................    38,880        32,068            75,843        60,574
                                                             ----------   ------------      ------------  ------------

EXPENSES:
   Interest................................................    6,404         4,708             12,687         8,833
   Operating and maintenance...............................   10,208        9,412              19,359        17,002
   Depreciation and amortization...........................    9,781         7,755             19,705        15,033
   General and administrative..............................    1,404         1,003              2,543         1,889
   Loss on writedown of asset..............................      -           4,894                -           4,894
   Other...................................................      700           667              1,118         1,295
                                                            ------------  ------------      ------------  ------------
TOTAL EXPENSES.............................................   28,497        28,439             55,412        48,946
                                                            ------------  ------------      ------------  ------------
   Net income..............................................   10,383         3,629             20,431        11,628
   Preferred unit requirement..............................   (1,047)       (1,047)            (2,094)       (2,094)
                                                            -----------   ------------      ------------  ------------
NET INCOME TO COMMON UNITHOLDERS                              $9,336        $2,582            $18,337        $9,534
                                                            ===========   ============      ============  ============
NET INCOME TO COMMON UNITHOLDERS:
   General partner.........................................   $7,671        $2,112            $15,051       $7,794
   Limited partners........................................    1,665           470              3,286        1,740
                                                            ------------  ------------      ------------  ------------
TOTAL......................................................   $9,336        $2,582            $18,337       $9,534
                                                            ============  ============      ============  ============
NET INCOME PER COMMON UNIT:
   General partner.........................................    $0.49         $0.14              $0.96        $0.51
   Limited partners........................................    $0.49         $0.14              $0.96        $0.51

Weighted average units outstanding:
   General partner.........................................   15,691        15,403             15,649       15,379
   Limited partners........................................    3,406         3,431              3,418        3,431
                                                            ------------  ------------      ------------  ------------
TOTAL......................................................   19,097        18,834             19,067       18,810
</TABLE>

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

<PAGE>


                      CHELSEA GCA REALTY PARTNERSHIP, L.P.
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
                                   (UNAUDITED)
                                 (IN THOUSANDS)
<TABLE>
<CAPTION>

                                                                                1999              1998
                                                                            ------------       ------------
       CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                                                            <C>                <C>
       Net income.............................................                 $20,431            $11,628
       Adjustments to reconcile net income to net cash
          provided by operating activities:
         Depreciation and amortization........................                  19,705             15,033
         Writedown of assets..................................                    -                 4,894
         Proceeds from non-compete receivable.................                   4,600                -
         Amortization of non-compete revenue..................                  (2,568)               -
         Additions to deferred lease costs....................                    (995)              (840)
         Other operating  activities..........................                     681                202
         Changes in assets and liabilities:
           Straight-line rent receivable......................                    (732)              (717)
           Other assets.......................................                   2,786              6,816
           Accounts payable and accrued expenses..............                    (423)               448
                                                                               ------------     ------------
       Net cash provided by operating activities..............                  43,485             37,464
                                                                               ------------     ------------
       Cash flows used in investing activities
       Additions to rental properties.........................                 (27,164)           (58,839)
       Additions to deferred development costs                                    (357)            (2,076)
       Proceeds from sale of center...........................                   4,483                -
       Payments from related party............................                   4,500                -
       Loan to related party..................................                  (1,400)               -
       Additions to investments in joint ventures.............                 (14,429)               -
       Other investing activities.............................                   -                   (407)
                                                                               ------------     ------------
       Net cash used in investing activities..................                 (34,367)           (61,322)
                                                                               ------------     ------------
       Cash flows from financing activities
       Distributions..........................................                 (18,167)           (17,424)
       Debt proceeds..........................................                  14,000             38,000
       Repayments of debt.....................................                  (4,000)            (4,000)
       Additions to deferred financing costs..................                    (626)            (1,143)
       Net proceeds from sale of common stock.................                   2,216              2,204
       Other financing activities.............................                    -                   (57)
                                                                               ------------     ------------
       Net cash (used in) provided by financing activities....                  (6,577)            17,580
                                                                               ------------     ------------

       Net increase (decrease) in cash and cash equivalents...                   2,541             (6,278)
       Cash and cash equivalents, beginning of period.........                   9,631             14,538
                                                                               ------------      ------------
       Cash and cash equivalents, end of period...............                 $12,172             $8,260
                                                                               ============      ============

</TABLE>

   THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.

<PAGE>

                      CHELSEA GCA REALTY PARTNERSHIP, L.P.
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.    ORGANIZATION AND BASIS OF PRESENTATION

Chelsea GCA Realty Partnership, L.P. (the "Operating Partnership" or "OP"),
which commenced operations on November 2, 1993, is engaged in the development,
ownership, acquisition, leasing and operation of manufacturers' outlet centers.
As of June 30, 1999, the Operating Partnership operated 19 centers in 11 states
(the "Properties") containing approximately 5.0 million square feet of gross
leasable area ("GLA"). The Properties are located near large metropolitan areas
including New York City, Los Angeles, San Francisco, Sacramento, Boston,
Atlanta, Washington DC, Portland (Oregon) and Cleveland, or at or near tourist
destinations including Honolulu, Napa Valley, Palm Springs and the Monterey
Peninsula. The Operating Partnership also has a number of properties under
development and expansion. The sole general partner in the Operating
Partnership, Chelsea GCA Realty, Inc. (the "Company"), is a self-administered
and self-managed Real Estate Investment Trust.

Ownership of the Operating Partnership as of June 30, 1999 was as follows:

         General Partner           82.4%                15,742,000   units
         Limited Partners          17.6%                 3,370,000   units
                               ----------------      ---------------
                     TOTAL        100.0%                19,112,000


The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
notes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for fair presentation have
been included. Operating results for the three and six month periods ended June
30, 1999 are not necessarily indicative of the results that may be expected for
the year ending December 31, 1999. The balance sheet at December 31, 1998 has
been derived from the audited financial statements at that date but does not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. These financial
statements should be read in conjunction with the consolidated financial
statements and accompanying notes included in the Operating Partnership's Annual
Report on Form 10-K for the year ended December 31, 1998.

Effective January 1, 1998, the Operating Partnership adopted the Financial
Accounting Standards Board's Statement of Financial Accounting Standards No.
131, Disclosures about Segments of an Enterprise and Related Information
("Statement 131"). Statement 131 superseded FASB Statement No. 14, Financial
Reporting for Segments of a Business Enterprise. Statement 131 establishes
standards for the way that public business enterprises report information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in interim
financial reports. Statement 131 also establishes standards for related
disclosures about products and services, geographic areas, and major customers.
The adoption of Statement 131 did not affect results of operations, financial
position or disclosure of segment information as the Operating Partnership is
engaged in the development, ownership, acquisition and operation of
manufacturers' outlet centers and has one reportable segment, retail real
estate. The Operating Partnership evaluates real estate performance and
allocates resources based on net operating income and weighted average sales per
square foot. The primary sources of revenue are generated from tenant base
rents, percentage rents and reimbursement revenue. Operating expenses primarily
consist of common area maintenance, real estate taxes and promotional expenses.
The retail real estate business segment meets the quantitative threshold for
determining reportable segments. The Operating Partnership's investment in
foreign operations is not material to the consolidated financial statements.


In June 1998, the Financial Accounting Standards Board issued Statement No. 133,
Accounting for Derivative Instruments and Hedging Activities, which is required
to be adopted in years beginning after June 15, 2000. Statement 133 permits
early adoption as of the beginning of any fiscal quarter after its issuance. The
Operating Partnership expects to adopt the new Statement effective January 1,
2001. The Statement will require the Operating Partnership to recognize all
derivatives on the balance sheet at fair value. Derivatives that are not hedges
must be adjusted to fair value through income. If a derivative is a hedge,
depending on the nature of the hedge, changes in the fair value of the
derivative will either be offset against the change in fair value of the hedged
asset, liability, or firm commitment through earnings, or recognized in other
comprehensive income until the hedged item is recognized in earnings. The
ineffective portion of a derivative's change in fair value will be immediately
recognized in earnings. The Operating Partnership does not anticipate that the
adoption of the Statement will have a significant effect on its results of
operations or financial position.

2.    PROPERTIES HELD FOR SALE

As of June 30, 1999, properties held for sale represented the fair value, less
estimated costs to sell, of Solvang Designer Outlets ("Solvang"). As of December
31, 1998, Lawrence Riverfront Plaza was also included in properties held for
sale and was sold on March 26, 1999 with no additional loss recognized.

During the second quarter of 1998, the Operating Partnership decided to sell
Solvang, a 51,000 square foot center in Solvang, California, for a net selling
price of $5.6 million. The center had a book value of $10.5 million, resulting
in a writedown of $4.9 million in the second quarter of 1998. During the fourth
quarter, the initial purchase offer was withdrawn and the Operating Partnership
received another offer for a net selling price of $4.1 million, requiring a
further writedown of $1.6 million. For the three and six month periods ended
June 30, 1999, Solvang accounted for less than 1% of the Operating Partnership's
revenues and net operating income.

3.  NON-COMPETE AGREEMENT

In October 1998, the OP signed a definitive agreement to terminate the
development of Houston Premium Outlets, a joint venture project with Simon
Property Group, Inc. Under the terms of the agreement, the OP has withdrawn from
the Houston development partnership and agreed to certain restrictions on
competing in the Houston market through the year 2002. The OP will receive
non-compete payments totaling $21.4 million from The Mills Corporation; $3.0
million was received at closing, the first of four annual installments of $4.6
million was received in January 1999 and the remaining installments are to be
received on each January 2, through 2002. The OP has also been reimbursed for
its share of land costs, development costs and fees related to the project. The
revenue is being recognized on a straight-line basis over the term of the
non-compete agreement and the OP recognized income of $2.6 million during the
six months ended June 30, 1999.

4.    DEBT

On March 30, 1998, the OP replaced its two unsecured bank revolving lines of
credit, totaling $150 million (the "Credit Facilities"), with a new $160 million
senior unsecured bank line of credit (the "Senior Credit Facility"). The Senior
Credit Facility expires on March 30, 2001 and the OP has an annual right to
request a one-year extension of the Senior Credit Facility which may be granted
at the option of the lenders. Lenders representing 84% of the Senior Credit
Facility have agreed to extend the Facility until March 30, 2002. The Facility
bears interest on the outstanding balance, payable monthly, at a rate equal to
the London Interbank Offered Rate ("LIBOR") plus 1.05% (6.30% at June 30, 1999)
or the prime rate, at the OP's option. The LIBOR rate spread ranges from 0.85%
to 1.25% depending on the Company's Senior Debt rating. A fee on the unused
portion of the Senior Credit Facility is payable quarterly at rates ranging from
0.15% to 0.25% depending on the balance outstanding. At June 30, 1999, $64
million was available under the Senior Credit Facility.

Also on March 30, 1998, the OP entered into a $5 million term loan (the "Term
Loan") which carries the same interest rate and maturity as the Senior Credit
Facility. The Term Loan has also been extended to March 30, 2002.

In November 1998, the OP obtained a $60 million term loan which expires April
2000 and bears interest on the outstanding balance at a rate equal to LIBOR plus
1.40% (6.40% at June 30, 1999). Proceeds from the loan were used to pay down
borrowings under the Senior Credit Facility.

In January 1996, the OP completed a $100 million public debt offering of 7.75%
unsecured term notes due January 2001 (the "7.75% Notes"), which are guaranteed
by the Company. The 7.75% Notes were priced at a discount of 99.592 to yield
7.85% to investors.

In October 1997, the OP completed a $125 million public debt offering of 7.25%
unsecured term notes due October 2007 (the "7.25% Notes"). The 7.25% Notes were
priced to yield 7.29% to investors, 120 basis points over the 10-year U.S.
Treasury rate.

Interest and loan costs of approximately $1.0 million and $3.0 million were
capitalized as development costs during the six months ended June 30, 1999 and
1998, respectively.

5.  PREFERRED STOCK

In October 1997, the Company issued 1.0 million shares of 8.375% Series A
Cumulative Redeemable Preferred Stock (the "Preferred Stock"), par value $0.01
per share, having a liquidation preference of $50.00 per share. The Preferred
Stock has no stated maturity and is not convertible into any other securities of
the Company. The Preferred Stock is redeemable on or after October 15, 2027 at
the Company's option. Net proceeds from the offering were used to repay
borrowings under the OP's Credit Facilities.

6.    DISTRIBUTIONS

On June 14, 1999, the Board of Directors of the Company declared a $0.72 per
unit cash distribution to unitholders of record on June 30, 1999. The
distribution, totaling $13.7 million, was paid on July 19, 1999.

7.    INCOME TAXES

No provision has been made for income taxes in the accompanying consolidated
financial statements since such taxes, if any, are the responsibility of the
individual partners.

8.    NET INCOME PER PARTNERSHIP UNIT

Net income per partnership unit is determined by allocating net income to the
general partner (including the general partner's preferred unit allocation) and
the limited partners based on their weighted average partnership units
outstanding during the respective periods presented.

9.    COMMITMENTS AND CONTINGENCIES

The OP has agreed under a standby facility to provide up to $22 million in
limited debt service guarantees for loans arranged by Value Retail PLC, an
affiliate, to construct outlet centers in Europe. The term of the standby
facility is three years and guarantees shall not be outstanding for longer than
five years after project completion. As of June 30, 1999, the Operating
Partnership has provided limited debt service guaranties of approximately $14
million for two projects.

<PAGE>

In June 1999, the OP signed a definitive agreement with Mitsubishi Estate Co.,
Ltd. and Nissho Iwai Corporation, to jointly develop, own and operate premium
outlet centers in Japan. Mitsubishi Estate is one of Japan's largest real estate
companies and Nissho Iwai is one of Japan's largest conglomerates. The joint
venture, known as Chelsea Japan Co., Ltd. ("Chelsea Japan") intends to develop
its initial project in the city of Gotemba (Shizuoka Prefecture) at a site on
the Tomei Expressway, approximately 60 miles west of Tokyo and midway between
Mount Fuji and the Hakone resort area. Groundbreaking for the 220,000
square-foot first phase is expected to take place later this year, with opening
scheduled for mid-2000. In conjunction with the agreement, the OP contributed
$1.7 million in equity to Chelsea Japan on July 2, 1999.

Construction is underway on Orlando Premium Outlets ("OPO"), a 430,000 square
foot 50/50 joint venture project between the OP and Simon. OPO is located on
Interstate 4, midway between Walt Disney World/EPCOT and Sea World in Orlando,
Florida and is scheduled to open in the first half of 2000. In February 1999,
the joint venture entered into a $82.5 million construction loan agreement that
is expected to fund approximately 75% of the costs of the project. The loan is
50% guaranteed by the OP and as of June 30, 1999 had $2.4 million outstanding.
The balance of construction costs will be funded by the construction loan and
guaranteed equally by the OP and Simon.

The OP is not presently involved in any material litigation nor, to its
knowledge, is any material litigation threatened against the Operating
Partnership or its properties, other than routine litigation arising in the
ordinary course of business. Management believes the costs, if any, incurred by
the OP related to this litigation will not materially affect the financial
position, operating results or liquidity of the OP.

10.        RELATED PARTY INFORMATION

During the second quarter of 1999, the OP entered into a secured loan facility
agreement with certain unitholders, whereby these unitholders may borrow up to a
total of $6 million from time to time until June 2004. Under the facility, in
June 1999, the OP lent $1.4 million to a unitholder that issued a note which is
secured by OP units, bears interest at a rate equal to three month LIBOR plus
200 basis points per annum, payable quarterly, and is due June 2004.

In September 1995, the OP transferred property with a book value of $4.8 million
to the Company's former President (a current unitholder) in exchange for a $4.0
million note secured by units in the Operating Partnership (the "Secured Note")
and an $0.8 million unsecured note receivable (the "Unsecured Note"). In January
1999, the Operating Partnership received $4.5 million as payment in full for the
two notes. The remaining $0.3 million write off was recognized in December 1998.

<PAGE>

                      CHELSEA GCA REALTY PARTNERSHIP, L.P.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The following discussion should be read in conjunction with the accompanying
unaudited condensed consolidated financial statements and notes thereto. These
financial statements include all adjustments which, in the opinion of
management, are necessary to reflect a fair statement of results for the interim
periods presented, and all such adjustments are of a normal recurring nature.

GENERAL OVERVIEW

The OP has grown by increasing rent at its existing centers, expanding its
existing centers, developing new centers and acquiring and redeveloping centers.
The OP operated 19 manufacturers' outlet centers at June 30, 1999 and 1998. The
OP's operating gross leasable area (GLA) at June 30, 1999 (which excludes a
property held for sale), increased 8.7% to 5.0 million square feet from 4.6
million square feet at June 30, 1998. Net GLA added since July 1, 1998 is
detailed as follows:

<TABLE>
<CAPTION>

                                                     12 mos ended           6 mos ended            6 mos ended
                                                        June 30,              June 30,             December 31,
                                                         1999                   1999                   1998
                                                     ------------           ------------           ------------
Changes in GLA (sf in 000's):
NEW CENTER DEVELOPED:
<S>                                                      <C>                                           <C>
    Leesburg Corner..............................        270                    -                      270
                                                     ------------           ------------           ------------
TOTAL NEW CENTER.................................        270                    -                      270

CENTERS EXPANDED:
    Wrentham Village.............................        119                    119                     -
    Woodbury Common..............................         51                     -                      51
    Camarillo....................................         45                     -                      45
    North Georgia................................         31                     -                      31
    Columbia Gorge...............................         16                     -                      16
    Other (net)..................................         17                     17                     -
                                                     ------------           ------------           ------------
TOTAL CENTERS EXPANDED...........................        279                    136                    143

CENTER SOLD:
    Lawrence Riverfront..........................       (146)                  -                      (146)
                                                     ------------           ------------           ------------
TOTAL CENTER SOLD................................       (146)                  -                      (146)

NET GLA ADDED DURING THE PERIOD                          403                    136                    267

GLA AT END OF PERIOD.............................      5,012                  5,012                  4,876

---------------------------------------------------------------------------------------------------------------
</TABLE>

RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1999 TO THE THREE MONTHS ENDED
JUNE 30, 1998.

Net income increased $6.8 million to $10.4 million for the three months ended
June 30, 1999 from $3.6 million for the three months ended June 30, 1998.
Increases in revenues, primarily the result of expansions and a new center
opening, were offset by higher interest expense and increases in depreciation
and amortization. In addition, 1998 net income was adversely affected by the
loss on writedown of asset.

Base rentals increased $3.8 million, or 18.1%, to $24.6 million for the three
months ended June 30, 1999 from $20.8 million for the three months ended June
30, 1998 due to expansions, a new center opened, and higher average rents on new
leases and renewals.

Percentage rents increased $0.7 million to $2.6 million for the three months
ended June 30, 1999, from $1.9 million for the three months ended June 30, 1998.
The increase was primarily due to the opening of one new center in 1998,
expansions, increased tenant sales and a higher number of tenants contributing
percentage rents.

Expense reimbursements, representing contractual recoveries from tenants of
certain common area maintenance, operating, real estate tax, promotional and
management expenses, increased $0.8 million, or 9.6%, to $9.3 million for the
three months ended June 30, 1999 from $8.5 million for the three months ended
June 30, 1998, due to the recovery of operating and maintenance costs from
increased GLA. The average recovery of reimbursable expenses was 91.6% in the
second quarter of 1999, compared to 90.6% in the second quarter of 1998.

Other income increased $1.5 million to $2.3 million for the three months ended
June 30, 1999, from $0.8 million for the three months ended June 30, 1998. The
increase is primarily the result of income from the agreement not to compete
with the Mills Corporation in the Houston, Texas area.

Interest in excess of amounts capitalized increased $1.7 million to $6.4 million
for the three months ended June 30, 1999 from $4.7 million for the three months
ended June 30, 1998 primarily due to higher debt balances from increased GLA in
operation.

Operating and maintenance expenses increased $0.8 million, or 8.5%, to $10.2
million for the three months ended June 30, 1999 from $9.4 million for the three
months ended June 30, 1998. The increase was primarily due to costs related to
expansions and a new center opening.

Depreciation and amortization expense increased $2.0 million, or 26.1%, to $9.8
million for the three months ended June 30, 1999 from $7.8 million for the three
months ended June 30, 1998. The increase was due to depreciation of expansions
and a new center opening in 1998.

General and administrative expenses increased $0.4 million to $1.4 million for
the three months ended June 30, 1999 from $1.0 million for the three months
ended June 30, 1998 primarily due to increased personnel, overhead costs and an
accrual for deferred compensation.

The loss on writedown of asset of $4.9 million for the three months ended June
30, 1998 is the result of valuing a center held for sale at its estimated fair
value.

COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1999 TO THE SIX MONTHS ENDED JUNE
30, 1998.

Net income increased $8.8 million to $20.4 million for the six months ended June
30, 1999, from $11.6 million for the six months ended June 30, 1998. Increases
in revenues, primarily the result of expansions and a new center opening, were
offset by higher interest expense and increases in depreciation and
amortization. In addition, 1998 net income was adversely affected by the loss on
writedown of asset.

Base rentals increased $9.1 million, or 22.6%, to $49.2 million for the six
months ended June 30, 1999, from $40.1 million for the six months ended June 30,
1998, due to expansions, a new center opening and higher average rents on new
leases and renewals.

Percentage rents increased $1.3 million to $5.0 million for the six months ended
June 30, 1999 from $3.7 million for the six months ended June 30, 1998. The
increase was primarily due to the opening of one new center, expansions of
existing centers and increases in tenants contributing percentage rents.

Expense reimbursements, representing contractual recoveries from tenants of
certain common area maintenance, operating, real estate tax, promotional and
management expenses, increased $2.2 million, or 14.4%, to $17.5 million for the
six months ended June 30, 1999 from $15.3 million for the six months ended June
30, 1998, due to the recovery of operating and maintenance costs from increased
GLA. The average recovery of reimbursable expenses was 90.6% in 1999 compared to
90.2% in 1998.

Other income increased $2.7 million to $4.1 million for the six months ended
June 30, 1999 from $1.4 million for the six months ended June 30, 1998. The
increase is primarily the result of income from the agreement not to compete
with the Mills Corporation in Houston, Texas.

Interest in excess of amounts capitalized increased $3.9 million to $12.7
million for the six months ended June 30, 1999 from $8.8 million for the six
months ended June 30, 1998 primarily due to higher debt balances from increased
GLA in operation.

Operating and maintenance expenses increased $2.4 million, or 13.9%, to $19.4
million for the six months ended June 30, 1999 from $17.0 million for the six
months ended June 30, 1998. The increase was primarily due to costs related to
expansions and a new center opening.

Depreciation and amortization expense increased $4.7 million, or 31.1%, to $19.7
million for the six months ended June 30, 1999 from $15.0 million for the six
months ended June 30, 1998. The increase was primarily due to depreciation of
expansions and a new center opening in 1998.

General and administrative expenses increased $0.6 million to $2.5 million for
the six months ended June 30, 1999 from $1.9 million for the six months ended
June 30, 1998. The increase was primarily due to increased personnel, overhead
costs and an accrual for deferred compensation.

The loss on writedown of asset of $4.9 million for the six months ended June 30,
1998 is from valuing a center held for sale at its estimated fair value.

Other expenses decreased $0.2 million to $1.1 million for the six months ended
June 30, 1999 from $1.3 million for the six months ended June 30, 1998. The
decrease was primarily due to reduced legal expenses.

LIQUIDITY AND CAPITAL RESOURCES

The Operating Partnership believes it has adequate financial resources to fund
operating expenses, distributions, and planned development and construction
activities. Operating cash flow during 1999 is expected to increase with a full
year of operations of the 776,000 square feet of GLA added during 1998,
including the opening of Leesburg Corner Premium Outlets in October 1998, and
expansions of approximately 355,000 square feet in 1999. In addition, at June
30, 1999 the Operating Partnership had $64.0 million available under its Senior
Credit Facility, access to the public markets through shelf registrations
covering $200 million of equity and $175 million of debt, and cash equivalents
of $12.2 million.

Operating cash flow is expected to provide sufficient funds for distributions.
In addition, the Operating Partnership anticipates retaining sufficient
operating cash to fund re-tenanting and lease renewal tenant improvement costs,
as well as capital expenditures to maintain the quality of its centers.

<PAGE>

Distributions declared and recorded during the six months ended June 30, 1999
were $13.7 million, or $1.44 per unit. The Operating Partnership's distribution
payout ratio as a percentage of net income before depreciation and amortization,
exclusive of amortization of deferred financing costs, minority interest and
extraordinary item ("FFO") was 74.0% during the six months ended June 30, 1999.
The Senior Credit Facility limits aggregate dividends and distributions to the
lesser of (i) 90% of FFO on an annual basis or (ii) 100% of FFO for any two
consecutive quarters.

On March 30, 1998, the OP replaced its two unsecured bank revolving lines of
credit, totaling $150 million (the "Credit Facilities"), with a new $160 million
senior unsecured bank line of credit (the "Senior Credit Facility"). The Senior
Credit Facility expires on March 30, 2001 and the OP has an annual right to
request a one-year extension of the Senior Credit Facility which may be granted
at the option of the lenders. Lenders representing 84% of the Senior Credit
Facility have agreed to extend the Facility until March 30, 2002. The Facility
bears interest on the outstanding balance, payable monthly, at a rate equal to
the London Interbank Offered Rate ("LIBOR") plus 1.05% (6.30% at June 30, 1999)
or the prime rate, at the OP's option. The LIBOR spread ranges from 0.85% to
1.25% depending on the Operating Partnership's Senior Debt rating. A fee on the
unused portion of the Senior Credit Facility is payable quarterly at rates
ranging from 0.15% to 0.25% depending on the balance outstanding.

The 120,000 square-foot third phase of Wrentham Village Premium Outlets
(Wrentham, Massachusetts) opened in May 1999. Other expansions totaling
approximately 285,000 square feet of GLA are under construction and scheduled to
open in the next 12 months, including the 100,000 square-foot fourth phase of
North Georgia Premium Outlets (Dawsonville, Georgia); the 90,000 square-foot
second phase of Leesburg Corner Premium Outlets (Leesburg, Virginia); the 50,000
square-foot fourth phase of Folsom Premium Outlets (Folsom, California); and the
45,000 square-foot fourth phase of Camarillo Premium Outlets (Camarillo,
California). These projects are under development and there can be no assurance
that they will be completed or opened, or that there will not be delays in
opening or completion. Excluding joint venture projects with Simon Property
Group, Inc. ("Simon"), the Company anticipates 1999 development and construction
costs of $50 million to $60 million. Funding is currently expected from
borrowings under the Senior Credit Facility, additional debt offerings, and/or
equity offerings.

Construction is also underway on Orlando Premium Outlets ("OPO"), a 430,000
square-foot upscale outlet center located on Interstate 4 midway between Walt
Disney World/EPCOT and Sea World in Orlando, Florida. OPO is a joint venture
project between the OP and Simon and is scheduled to open as a single phase in
mid-2000. In February 1999, the joint venture entered into a $82.5 million
construction loan agreement that is expected to fund approximately 75% of the
costs of the project. The loan is 50% guaranteed by the OP and as of June 30,
1999, there was $2.4 million outstanding on the loan. The balance of
construction costs will be funded by the construction loan and guaranteed
equally by the OP and Simon.

The OP announced in October 1998 that it sold its interest in and terminated the
development of Houston Premium Outlets, a joint venture project with Simon.
Under the terms of the agreement, the OP will receive non-compete payments
totaling $21.4 million from The Mills Corporation; $3.0 million was received at
closing, the first of four annual installments of $4.6 million was received in
January 1999 and the remaining installments are to be received on each January
2, through 2002. The OP has also been reimbursed for its share of land costs,
development costs and fees related to the project.

The Operating Partnership has minority interests ranging from 5% to 15% in
several outlet centers and outlet development projects in Europe. Two outlet
centers, Bicester Village outside of London, England and La Roca Operating
Partnership Stores outside of Barcelona, Spain, are currently open and operated
by Value Retail PLC and its affiliates. Three new European projects and
expansions of the two existing centers are in various stages of development and
are expected to open within the next two years. The OP's total investment in
Europe as of March 1999 are approximately $4.8 million. The OP has also agreed
under a standby facility to provide up to $22 million in limited debt service
guarantees for loans arranged by Value Retail PLC to construct outlet centers in
Europe. The term of the standby facility is three years and guarantees shall not
be outstanding for longer than five years after project completion. As of June
30, 1999, the OP has provided limited debt service guaranties of approximately
$14 million for two projects.

In June 1999, the OP signed a definitive agreement with Mitsubishi Estate Co.,
Ltd. and Nissho Iwai Corporation, to jointly develop, own and operate premium
outlet centers in Japan. Mitsubishi Estate is one of Japan's largest real estate
companies and Nissho Iwai is one of Japan's largest conglomerates. The joint
venture, known as Chelsea Japan Co., Ltd. (Chelsea Japan) intends to develop its
initial project in the city of Gotemba (Shizuoka Prefecture) at a site on the
Tomei Expressway, approximately 60 miles west of Tokyo and midway between Mount
Fuji and the Hakone resort area. Groundbreaking for the 220,000 square-foot
first phase is expected to take place later this year, with opening scheduled
for mid-2000. In conjunction with the agreement, the OP contributed $1.7 million
in equity to Chelsea Japan on July 2, 1999. The OP is currently negotiating a
yen denominated line of credit with certain members of its bank group to fund
its share of construction costs.

To achieve planned growth and favorable returns in both the short and long term,
the Operating Partnership's financing strategy is to maintain a strong, flexible
financial position by: (i) maintaining a conservative level of leverage; (ii)
extending and sequencing debt maturity dates; (iii) managing exposure to
floating interest rates; and (iv) maintaining liquidity. Management believes
these strategies will enable the Operating Partnership to access a broad array
of capital sources, including bank or institutional borrowings and secured and
unsecured debt and equity offerings, subject to market conditions.

Net cash provided by operating activities increased $6.0 million for the six
months ended June 30, 1999 compared to the corresponding 1998 period, primarily
due to the growth of the OP's GLA to 5.0 million square feet in 1999 from 4.6
million square feet in 1998 and receipt of payment on a non-compete receivable.
Net cash used in investing activities decreased $27.0 million for the six months
ended June 30, 1999 compared to the corresponding 1998 period, as a result of
decreased construction activity, proceeds from sale of a center and receipt of
payment on a note receivable. At June 30, 1999, net cash used in financing
activities increased by $24.2 million primarily due to higher borrowings for
construction during the 1998 first and second quarters.

YEAR 2000 COMPLIANCE

The year 2000 ("Y2K") issue refers generally to computer applications using only
the last two digits to refer to a year rather than all four digits. As a result,
these applications could fail or create erroneous results if they recognize "00"
as the year 1900 rather than the year 2000. The OP has taken Y2K initiatives in
three general areas which represent the areas that could have an impact on the
OP: information technology systems, non-information technology systems and
third-party issues. The following is a summary of these initiatives:

INFORMATION TECHNOLOGY: The OP has focused its efforts on the high-risk areas of
the corporate office computer hardware, operating systems and software
applications. The OP's assessment and testing of existing equipment revealed
that its hardware, network operating systems and most of the software
applications are Y2K compliant. The exceptions were the DOS-based accounting
systems which were upgraded and replaced at the beginning of 1999 to make them
compatible with Windows applications primarily used by the OP.

NON-INFORMATION TECHNOLOGY: Non-information technology consists mainly of
facilities management systems such as telephone, utility and security systems
for the corporate office and the outlet centers. The OP has reviewed the
corporate facility management systems and made inquiry of the building
owner/manager and concluded that the corporate office building systems including
telephone, utilities, fire and security systems are Y2K compliant. The OP has
identified date-sensitive systems and equipment including HVAC units,
telephones, security systems and alarms, fire and flood warning systems and
general office systems at its outlet centers. Assessment and testing of critical
systems has been substantially completed and deemed Y2K compliant. Virtually all
of the non-critical systems have been assessed and tested and are either Y2K
compliant or have manual control features that the OP can manipulate so that the
systems' dates are reflected accurately. Any non-critical systems that may be
identified as non-compliant will be replaced if necessary. Based on the OP's
assessment to date, no systems have been identified which would require
replacement. Therefore, the cost of replacement is not expected to be
significant.

THIRD PARTIES: The OP has third-party relationships with approximately 400
tenants and 4,000 suppliers and contractors. Many of these third parties are
publicly-traded corporations and subject to disclosure requirements. The OP has
begun assessment of major third parties' Y2K readiness including tenants, key
suppliers of outsourced services including stock transfer, debt servicing,
banking collection and disbursement, payroll and benefits, while simultaneously
responding to their inquiries regarding the OP's readiness. The majority of the
OP's vendors are small suppliers that the OP believes can manually execute their
business and are readily replaceable. Management also believes there is no
material risk of being unable to procure necessary supplies and services.
Third-party assessment is approximately 75% complete and expected to be
completed in all material respects by September 30, 1999. The OP continues to
monitor Y2K disclosures in SEC filings of publicly-owned third parties.

COSTS: The accounting software upgrade and conversion were executed under
maintenance and support agreements with software vendors. The total cost of the
accounting conversion which the OP had previously commenced during the 1998
third quarter has been approximately $200,000 including the Y2K portion of the
conversion that cannot be readily identified and is not material to the
operating results or financial position of the OP.

The identification and remediation of systems at the outlet centers is being
accomplished by in-house business systems personnel and outlet center general
managers whose costs are recorded as normal operating expense. The assessment of
third-party readiness is also being conducted by in-house personnel whose costs
are recorded as normal operating expenses. The OP is not yet in a position to
estimate the cost of third-party compliance issues, but has no reason to
believe, based upon its evaluations to date, that such costs will exceed
$100,000.

RISKS: The principal risks to the OP relating to information technology is
failure to correctly bill tenants by December 31, 1999 and to pay invoices when
due. Management believes it has adequate resources, or could obtain the needed
resources, to manually bill tenants and pay bills if necessary until the systems
became operational.

The principal risks to the OP relating to non-information technology at the
outlet centers are failure to identify time-sensitive systems and inability to
find a suitable replacement system. The OP's assessment of critical systems has
revealed Y2K compliance. The OP believes that adequate replacement components or
new systems are available, if necessary, at reasonable prices and are in good
supply.

The principal risks to the OP in its relationships with third parties are the
failure of third-party systems used to conduct business such as tenants being
unable to stock stores with merchandise, use cash registers and pay invoices;
banks being unable to process receipts and disbursements; vendors being unable
to supply needed materials and services to the centers; and processing of
outsourced employee payroll. Based on Y2K compliance work done to date, the OP
has no reason to believe that key tenants, banks and suppliers will not be Y2K
compliant in all material respects or can not be replaced within an acceptable
timeframe. The OP will continue to obtain compliance certification from
suppliers of key services as these certifications are available.

CONTINGENCY PLANS: The OP is in the process of establishing Y2K contingency
plans to further mitigate Y2K risks.

The OP's description of its Y2K compliance issue is based upon information
obtained by management through evaluations of internal business systems and from
tenant and vendor compliance efforts. No assurance can be given that the OP will
be able to address the Y2K issues for all its systems in a timely manner or that
it will not encounter unexpected difficulties or significant expenses relating
to adequately addressing the Y2K issue. If the OP or the major tenants or
vendors with whom the OP does business fail to address their major Y2K issues,
the OP's operating results or financial position could be materially adversely
affected.

FUNDS FROM OPERATIONS
Management believes that funds from operations ("FFO") should be considered in
conjunction with net income, as presented in the statements of income included
elsewhere herein, to facilitate a clearer understanding of the operating results
of the Company. Management considers FFO an appropriate measure of performance
for an equity real estate investment trust. FFO, as defined by the National
Association of Real Estate Investment Trusts ("NAREIT"), is net income
applicable to common unitholders, loss on writedown of asset and depreciation
and amortization, reduced by amortization of deferred financing costs,
depreciation of non-real estate assets, and preferred distributions. FFO does
not represent net income or cash flow from operations as defined by generally
accepted accounting principles and should not be considered an alternative to
net income as an indicator of operating performance or to cash from operations,
and is not necessarily indicative of cash flow available to fund cash needs.

<TABLE>
<CAPTION>

                                                             THREE MONTHS ENDED                SIX MONTHS ENDED
                                                                  JUNE 30,                         JUNE 30,
                                                          1999                 1998               1999                1998
                                                      --------------      ---------------     ------------        -----------
<S>                                                      <C>                  <C>               <C>                 <C>
Net income to common unitholders .....................   $9,336               $2,582            $18,337             $9,534
Add back:
  Depreciation and amortization.......................    9,781                7,755             19,705             15,033
  Amortization of deferred financing costs and
    depreciation of non-rental real estate assets.....     (476)                (329)              (911)              (729)
  Loss on writedown of asset..........................       -                 4,894                 -               4,894
                                                       --------------      -------------      -------------      ------------
FFO...................................................  $18,641              $14,902            $37,131             $28,732
                                                       ==============      ==============    ==============      ============
Average units outstanding.............................   19,097               18,834             19,067              18,810
Distributions declared per share......................    $0.72                $0.69              $1.44               $1.38

</TABLE>

Item 3.         Quantitative and Qualitative Disclosures about Market Risk

The Operating Partnership is exposed to changes in interest rates primarily from
its floating rate debt arrangements. The Operating Partnership currently does
not use interest rate derivative instruments to manage exposure to interest rate
changes. A hypothetical 100 basis-point adverse move (increase) in interest
rates along the entire rate curve would adversely affect the Operating
Partnership's annual interest cost by approximately $1.2 million annually.

<PAGE>


                      CHELSEA GCA REALTY PARTNERSHIP, L.P.

PART II.     OTHER INFORMATION

ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K

The Operating Partnership did not file any reports on Form 8-K during the three
months ended June 30, 1999.

<PAGE>

                      CHELSEA GCA REALTY PARTNERSHIP, L.P.



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.



                                 CHELSEA GCA REALTY PARTNERSHIP, L.P.

                                 By:  CHELSEA GCA REALTY, INC.
                                       Its General Partner


                                 By: /S/ MICHAEL J. CLARKE
                                    -------------------------------
                                    Michael J. Clarke
                                    Chief Financial Officer

Date:  August 12, 1999