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, 1998
                                    --------------------------------------------


                                       OR

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

     For the transition period from ______________ to_____________
     Commission file number  0-7162
                            --------


                       McNeil PACIFIC INVESTORS FUND 1972
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)



         California                                    94-6279375
--------------------------------------------------------------------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                         Identification No.)




              13760 Noel Road, Suite 600, LB70, Dallas, Texas 75240
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)



Registrant's telephone number, including area code      (972) 448-5800
                                                   -----------------------------


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 and (2) has been  subject to such  filing
requirements for the past 90 days. Yes X No
                                      ---  ---
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
------- --------------------

                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                     STATEMENTS OF NET ASSETS IN LIQUIDATION
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                           June 30,          December 31,
                                                                             1998                1997
                                                                       ---------------      --------------
ASSETS
------
<S>                                                                    <C>                  <C>           
Cash and cash equivalents...................................           $       396,372      $      451,506
                                                                        --------------       -------------

                                                                       $       396,372      $      451,506
                                                                        ==============       =============

LIABILITIES AND PARTNERS' EQUITY
--------------------------------

Other accrued expenses......................................           $         4,877      $       19,702
Payable to affiliates - General Partner.....................                    12,362              17,485
                                                                        --------------       -------------
                                                                                17,239              37,187
                                                                        --------------       -------------
Partners' equity:
   Limited  partners - 15,000 limited  partnership  units 
     authorized;  13,752.5 limited partnership units issued
     and outstanding at June 30, 1998 and December 31, 1997.                   379,133             414,319
   General Partner..........................................                         -                   -
                                                                        --------------       -------------
                                                                               379,133             414,319
                                                                        --------------       -------------

                                                                       $       396,372      $      451,506
                                                                        ==============       =============
</TABLE>





The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                            STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>

                                            Three Months Ended                     Six Months Ended
                                                  June 30,                              June 30,
                                      ---------------------------------    ---------------------------------
                                          1998               1997               1998                1997
                                      --------------    ---------------    --------------     --------------
Revenue:
<S>                                   <C>                <C>               <C>                <C>           
   Rental revenue................     $            -     $      452,128    $            -     $      898,707
   Interest......................              3,619              7,570             8,529             15,087
                                       -------------      -------------     -------------      -------------
     Total revenue...............              3,619            459,698             8,529            913,794
                                       -------------      -------------     -------------      -------------

Expenses:
   Interest......................                  -             46,162                 -             92,496
   Property taxes................                  -             28,974                 -             58,736
   Personnel expenses............                  -             57,735                73            145,518
   Utilities.....................                  -             15,822                 -             34,089
   Repair and maintenance........                  -             99,930             8,592            192,459
   Property management
     fees - affiliates...........                  -             26,671                 -             53,358
   Other property operating
     expenses....................                  -             22,490             1,494             63,132
   General and administrative....             21,538             15,336            37,106             25,425
   General and administrative -
     affiliates..................                  -             20,869            (3,550)            33,628
                                       -------------      -------------     -------------      -------------
     Total expenses..............             21,538            333,989            43,715            698,841
                                       -------------      -------------     -------------      -------------

Net income (loss)................     $      (17,919)    $      125,709    $      (35,186)    $      214,953
                                       =============      =============     =============      =============

Net income (loss) allocated
   to limited partners...........     $      (17,919)    $      125,709    $      (35,186)    $      214,953
Net income (loss) allocated
   to General Partner............                  -                  -                 -                  -
                                       -------------      -------------     -------------      -------------

Net income (loss)................     $      (17,919)    $      125,709    $      (35,186)    $      214,953
                                       =============      =============      ============      =============

Net income (loss) per limited
   partnership unit..............     $        (1.30)    $         9.14    $        (2.56)    $        15.63
                                       =============      =============     =============      =============

</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                         STATEMENTS OF PARTNERS' EQUITY
                                   (Unaudited)

                 For the Six Months Ended June 30, 1998 and 1997

<TABLE>
<CAPTION>
                                                                                                     Total
                                                     General                  Limited              Partners'
                                                     Partner                 Partners               Equity
                                                 --------------          ---------------       --------------
<S>                                              <C>                     <C>                   <C>           
Balance at December 31, 1996..............       $      309,944          $    4,509,477        $    4,819,521

Net income................................                    -                 214,953               214,953
                                                  -------------           -------------         -------------

Balance at June 30, 1997..................       $      309,944          $    4,724,530        $    5,034,474
                                                  =============           =============         =============


Balance at December 31, 1997..............       $            -          $      414,319        $      414,319

Net loss..................................                    -                 (35,186)              (35,186)
                                                  -------------           -------------         -------------

Balance at June 30, 1998..................       $            -          $      379,133        $      379,133
                                                  =============           =============         =============
</TABLE>









The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

                Increase (Decrease) in Cash and Cash Equivalents

<TABLE>
<CAPTION>
                                                        Six Months Ended
                                                            June 30,
                                                  ----------------------------
                                                    1998               1997
                                                  ---------        -----------
Cash flows from operating activities:
<S>                                               <C>              <C>       
   Cash received from tenants ............        $       -        $  901,228
   Cash paid to suppliers ................          (62,090)         (485,509)
   Cash paid to affiliates ...............           (1,573)          (90,233)
   Interest received .....................            8,529            15,087
   Interest paid .........................                -           (88,704)
   Property taxes paid and escrowed ......                -           (57,001)
                                                  ---------         ---------
Net cash provided by (used in) operating
   activities ............................          (55,134)          194,868
                                                  ---------         ---------

Cash flows from investing activities:
   Additions to real estate investments ..                -           (64,217)
                                                  ---------         ---------

Cash flows from financing activities:
   Principal payments on mortgage notes
     payable .............................                -           (73,446)
                                                  ---------         ---------

Net increase (decrease) in cash and
   cash equivalents ......................          (55,134)           57,205

Cash and cash equivalents at beginning
   of period .............................          451,506           581,031
                                                  ---------         ---------

Cash and cash equivalents at end of period        $ 396,372         $ 638,236
                                                  =========         =========
</TABLE>






The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.
 
                 See accompanying notes to financialstatements.
<PAGE>
                       MCNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                            STATEMENTS OF CASH FLOWS
                                   (Unaudited)

      Reconciliation of Net Income (Loss) to Net Cash Provided by (Used in)
                              Operating Activities

<TABLE>
<CAPTION>
                                                             Six Months Ended
                                                                 June 30,
                                                       ---------------------------
                                                          1998              1997
                                                       ----------        ---------
<S>                                                    <C>               <C>      
Net income (loss) .............................        $ (35,186)        $ 214,953
                                                       ---------         ---------

Adjustments to  reconcile  net income (loss) to
   net cash  provided by (used in) operating 
   activities:
   Amortization of deferred borrowing costs ...                -             4,327
   Changes in assets and liabilities:
     Cash segregated for security deposits ....                -              (625)
     Accounts receivable ......................                -             3,516
     Prepaid expenses and other assets ........                -            (6,467)
     Escrow deposits ..........................                -           (57,001)
     Accrued interest .........................                -              (535)
     Accrued property taxes ...................                -            58,736
     Other accrued expenses ...................          (14,825)          (19,499)
     Payable to affiliates - General Partner ..           (5,123)           (3,247)
     Security deposits and deferred rental
       revenue ................................                -               710
                                                       ---------         ---------
       Total adjustments ......................          (19,948)          (20,085)
                                                       ---------         ---------

Net cash provided by (used in) operating
   activities .................................        $ (55,134)        $ 194,868
                                                       =========         =========

</TABLE>



The  financial  information  included  herein has been  prepared  by  management
without audit by independent public accountants.

                 See accompanying notes to financial statements.
<PAGE>
                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                          Notes To Financial Statements
                                   (Unaudited)

                                  June 30, 1998


NOTE 1.
-------

McNeil Pacific Investors Fund 1972 (the  "Partnership") is a limited partnership
organized  under the laws of the State of California to invest in real property.
The general  partner of the Partnership is McNeil  Partners,  L.P. (the "General
Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil. The
principal place of business for the Partnership and the General Partner is 13760
Noel Road, Suite 600, LB70, Dallas, Texas 75240.

In the opinion of management,  the financial  statements reflect all adjustments
necessary for a fair  presentation of the Partnership's  financial  position and
results  of  operations.  All  adjustments  were of a normal  recurring  nature.
However,  the results of operations  for the six months ended June 30, 1998, are
not  necessarily  indicative  of the results to be expected  for the year ending
December 31, 1998.

At a meeting of the limited  partners on August 12, 1997,  the limited  partners
approved the sale of Palm Bay Apartments and the dissolution of the Partnership.
After the September 30, 1997 sale of Palm Bay  Apartments,  the General  Partner
commenced the  dissolution and  termination of the  Partnership.  The assets and
liabilities in the accompanying  statements of net assets in liquidation at June
30, 1998 and December 31, 1997 are valued at their estimated  realizable  values
and  estimated  settlement  amounts,  respectively.  The  Partnership  is in the
process of liquidating  its assets,  satisfying all creditors and claims against
the  Partnership,  distributing  its  remaining  assets  to  its  partners,  and
terminating its existence.

NOTE 2.
-------

The  financial  statements  should  be read in  conjunction  with the  financial
statements  contained in the  Partnership's  Annual  Report on Form 10-K for the
year  ended  December  31,  1997,  and the  notes  thereto,  as  filed  with the
Securities and Exchange  Commission,  which is available upon request by writing
to McNeil Pacific Investors Fund 1972, 13760 Noel Road, Suite 600, LB70, Dallas,
Texas 75240.

NOTE 3.
-------

The  Partnership  paid property  management fees equal to 6% of the gross rental
receipts of the Partnership's  property to McNeil Real Estate  Management,  Inc.
("McREMI"),  an  affiliate  of  the  General  Partner,  for  providing  property
management and leasing services for the Partnership's property.

The  Partnership  reimbursed  McREMI  for  its  costs,  including  overhead,  of
administering the Partnership's affairs.


<PAGE>
The General Partner is entitled to receive a partnership management fee equal to
9.5% of  distributions  of cash from  operations  when  distributable  cash from
operations is distributed  to the limited  partners.  No partnership  management
fees were  incurred or paid during the six month periods ended June 30, 1998 and
1997.

The General  Partner was entitled to receive a sales  commission as compensation
for selling Partnership property equal to the lesser of 4% of the sales price of
the  property  sold or the  customary  fee  charged by  independent  real estate
brokers in the area where the property was located.

The General  Partner was also entitled to a distribution  of cash from sales and
refinancings  and  cash  from  working  capital  reserves  equal to 9.5% of such
distributions.

Compensation and  reimbursements  accrued for the benefit of the General Partner
and its affiliates are as follows:

                                                            Six Months Ended
                                                                June 30,
                                                          ----------------------
                                                            1998         1997
                                                          -------     ----------

Property management fees - affiliates...............      $     -     $   53,358
Charged to general and administrative -
   affiliates:
   Partnership administration.......................       (3,550)        33,628
                                                          -------     ----------

                                                          $(3,550)    $   86,986
                                                          =======     ==========
NOTE 4.
-------

On  September  30,  1997,  the  Partnership  sold  Palm  Bay  Apartments  to  an
unaffiliated purchaser for a cash sales price of $6,849,500.  Cash proceeds from
the transaction, as well as the gain on sale, are detailed below.

<TABLE>
<CAPTION>
                                                                          Gain on Sale       Cash Proceeds
                                                                        ---------------     ---------------

<S>                                                                     <C>                 <C>           
Sales price.........................................                    $    6,849,500      $    6,849,500
Selling costs.......................................                          (374,785)           (374,785)
Basis of real estate sold...........................                        (6,323,574)
                                                                         -------------

Gain on sale........................................                    $      151,141
                                                                         =============       -------------

Proceeds from sale of real estate...................                                             6,474,715
Retirement of mortgage note.........................                                            (1,924,929)
                                                                                             -------------

Net cash proceeds...................................                                         $   4,549,786
                                                                                              ============
</TABLE>
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
-------  ---------------------------------------------------------------
         RESULTS OF OPERATIONS
         ---------------------

FINANCIAL CONDITION
-------------------

On September 30, 1997, the Partnership sold its last real estate asset, Palm Bay
Apartments.  Proceeds from the sale were distributed to the partners in December
1997. The Partnership's sole remaining asset consists of its $396,372 balance of
cash and cash  equivalents.  At June 30,  1998,  the  Partnership's  liabilities
consist of $17,239 of accrued  expenses,  $12,362 of which are due to affiliates
of the General Partner.

The  Partnership  remains subject to litigation as discussed in Part II, Item 1,
Legal  Proceedings.  The  General  Partner  intends  to  use  the  Partnership's
remaining funds for the payment of costs  associated with the litigation.  After
the  litigation is either  adjudicated or otherwise  settled,  and all legal and
other costs have been provided for, remaining Partnership funds, if any, will be
distributed to the partners.

RESULTS OF OPERATIONS
---------------------

Results of operations  for the first two quarters of 1998 are not  comparable to
results  reported for the first two quarters of 1997 due to the sale of Palm Bay
Apartments, and the subsequent distribution of sales proceeds to the partners.

Revenues:

Revenues for the first six months of 1998  consist  solely of $8,529 of interest
earned on the Partnership's funds invested in money market accounts.

Expenses:

Partnership  expenses  include $10,159 of expenses related to operations at Palm
Bay Apartments, all of which were incurred during the first quarter of 1998. The
Partnership  believes  that all  expenses  arising from  operations  at Palm Bay
Apartments are accrued or have been paid.

General and  administrative  expenses for the first six months of 1998 increased
$11,681 or 46% over  general and  administrative  expenses  incurred  during the
first six months of 1997. The  Partnership  has incurred  increased  legal costs
associated with the litigation discussed below.

General and administrative  expenses paid to affiliates for the first quarter of
1998  reflects  a  $3,550  credit  or  refund  from   affiliates.   General  and
administrative  expenses  for  1997  exceeded  the  limit  equal  to 2%  of  the
Partnership's   assets  established  by  the  Amended   Partnership   Agreement.
Consequently, in early 1998 the Partnership received a refund from an affiliate.








<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

At June 30, 1998, the  Partnership  held $396,372 of cash and cash  equivalents.
The  Partnership  owns no  other  assets.  The  Partnership  intends  to use its
remaining  funds to pay the accrued  expenses  owed by the  Partnership,  in the
amount of $17,239 as of June 30, 1998, to pay all remaining  expenses  connected
with the termination of the Partnership, and to provide a contingency reserve to
pay all costs associated with ongoing litigation  involving the Partnership as a
defendant.  After all expenses  have been  provided  for, and the  litigation is
resolved through either  adjudication or settlement,  all remaining  Partnership
funds  will be  distributed  to the  partners  in  accordance  with terms of the
Partnership Agreement. The General Partner considers the current balance of cash
and cash equivalents adequate for all of these purposes.

Distributions:

In December 1997, the Partnership  distributed $4,772,400 to its partners.  This
distribution  includes $4,549,786 of net cash proceeds from the sale of Palm Bay
Apartments,   as  well  as  $222,614  of  cash  reserves  of  the   Partnership.
Distribution of the remaining cash reserves of the Partnership will be made from
any remaining funds of the Partnership  after all liabilities of the Partnership
have been paid,  including costs associated with  terminating the  Partnership's
affairs,  and costs associated with adjudicating or settling litigation in which
the Partnership is involved.

Forward-Looking Information:

Within this document,  certain  statements  are made as to expected  Partnership
developments,  including the ultimate termination of the Partnership's business,
satisfaction  of the  Partnership's  creditors,  and  distributions  to  limited
partners.  All of these statements are forward-looking  statements made pursuant
to the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. These  statements are not historical and involve risks and  uncertainties.
The Partnership's  actual financial condition,  results of operations,  and cash
flows for future  periods may differ  materially due to several  factors.  These
factors include,  but are not limited to, the outcome of litigation in which the
Partnership is a defendant.


<PAGE>

                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS
-------  -----------------

James F.  Schofield,  Gerald C. Gillett,  Donna S. Gillett,  Jeffrey  Homburger,
Elizabeth Jung,  Robert Lewis, and Warren Heller et al. v. McNeil Partners L.P.,
McNeil Investors,  Inc., McNeil Real Estate Management,  Inc., Robert A. McNeil,
Carole J. McNeil,  McNeil Pacific  Investors Fund 1972, Ltd., McNeil Real Estate
Fund IX,  Ltd.,  McNeil Real  Estate  Fund X, Ltd.,  McNeil Real Estate Fund XI,
Ltd.,  McNeil  Real Estate Fund XII,  Ltd.,  McNeil Real Estate Fund XIV,  Ltd.,
McNeil Real Estate Fund XV, Ltd.,  McNeil Real Estate Fund XX, L.P., McNeil Real
Estate Fund XXI, L.P.,  McNeil Real Estate Fund XXII,  L.P.,  McNeil Real Estate
Fund XXIV,  L.P.,  McNeil Real Estate  Fund XXV,  L.P.,  McNeil Real Estate Fund
XXVI, L.P., and McNeil Real Estate Fund XXVII,  L.P., et al. - Superior Court of
the State of California for the County of Los Angeles,  Case No. BC133799 (Class
and Derivative Action Complaint).

The action involves  purported  class and derivative  actions brought by limited
partners of each of the fourteen limited partnerships that were named as nominal
defendants as listed above (the  "Partnerships").  Plaintiffs allege that McNeil
Investors, Inc., its affiliate McNeil Real Estate Management,  Inc. and three of
their senior officers and/or directors (collectively, the "Defendants") breached
their  fiduciary  duties and certain  obligations  under the respective  Amended
Partnership  Agreement.  Plaintiffs  allege that  Defendants  have rendered such
Units highly illiquid and  artificially  depressed the prices that are available
for Units on the resale market.  Plaintiffs also allege that Defendants  engaged
in a course of conduct to prevent the  acquisition  of Units by an  affiliate of
Carl  Icahn  by  disseminating  purportedly  false,  misleading  and  inadequate
information.  Plaintiffs  further allege that Defendants  acted to advance their
own personal  interests at the expense of the Partnerships'  public unit holders
by failing to sell Partnership  properties and failing to make  distributions to
unitholders.

On December 16, 1996, the Plaintiffs filed a consolidated and amended complaint.
Plaintiffs  are suing for breach of  fiduciary  duty,  breach of contract and an
accounting,  alleging,  among other things, that the management fees paid to the
McNeil affiliates over the last six years are excessive,  that these fees should
be reduced retroactively and that the respective Amended Partnership  Agreements
governing the Partnerships are invalid.

Defendants  filed a demurrer to the  consolidated  and amended  complaint  and a
motion to strike on February 14, 1997,  seeking to dismiss the  consolidated and
amended complaint in all respects.  A hearing on Defendant's demurrer and motion
to strike  was held on May 5,  1997.  The Court  granted  Defendants'  demurrer,
dismissing  the  consolidated  and  amended  complaint  with leave to amend.  On
October  31,  1997,  the  Plaintiffs  filed a second  consolidated  and  amended
complaint.  The case has  been  stayed  pending  settlement  discussions.  While
actively working toward a final resolution, there can be no assurances regarding
settlement.


<PAGE>



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K
-------  ---------------------------------

(a)      Exhibits.

         Exhibit
         Number                     Description
         -------                    ------------

         3.                         Restated  Certificate   and   Agreement   of
                                    Limited    Partnership  dated   of  March 8,
                                    1972. (1)

         4.                         Amendment   to   Restated   Certificate  and
                                    Agreement  of   Limited   Partnership  dated
                                    March 30, 1992. (2)

         11.                        Statement   regarding   computation  of  net
                                    income per  limited  partnership  unit:  Net
                                    income  per  limited   partnership  unit  is
                                    computed by dividing net income allocated to
                                    the  limited   partners  by  the  number  of
                                    limited  partnership units outstanding.  Per
                                    unit  information has been computed based on
                                    13,752.5    limited     partnership    units
                                    outstanding in 1998 and 1997.

         27.                        Financial   Data   Schedule  for the quarter
                                    ended June 30, 1998.

      (1)   Incorporated by reference to the Annual Report of Registrant on Form
            10-K for the period ended  December 31, 1990,  as filed on March 29,
            1991.

      (2)   Incorporated by reference to the Current Report on Form 8-K filed by
            the Registrant with the Securities and Exchange  Commission on April
            10, 1992.

(b)      Reports on Form 8-K. There were no reports on Form 8-K filed during the
         quarter ended  June 30, 1998.


<PAGE>


                       McNEIL PACIFIC INVESTORS FUND 1972
        (a California limited partnership in the process of liquidation)

                                   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:


                               McNEIL PACIFIC INVESTORS FUND 1972

                               By:  McNeil Partners, L.P., General Partner

                                    By: McNeil Investors, Inc., General Partner





August 14, 1998                     By: /s/  Ron K. Taylor
---------------                        -----------------------------------------
Date                                    Ron K. Taylor
                                        President and Director of McNeil 
                                          Investors, Inc.
                                        (Principal Financial Officer)





August 14, 1998                     By: /s/  Brandon K. Flaming
---------------                        -----------------------------------------
Date                                    Brandon K. Flaming
                                        Vice President of McNeil Investors, Inc.
                                        (Principal Accounting Officer)