<PAGE>   1

                                    FORM 10-Q
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                   QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended                    September 30, 1999
                  --------------------------------------------------------------

Commission file number                     0-13563
                       ---------------------------------------------------------

                     DAMSON/BIRTCHER REALTY INCOME FUND - I
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


             Pennsylvania                         13-3264491
--------------------------------------------------------------------------------
     (State or other jurisdiction of            (I.R.S. Employer
      incorporation or organization)           Identification No.)


   27611 La Paz Road, P.O. Box 30009, Laguna Niguel, California   92607-0009
--------------------------------------------------------------------------------
            (Address of principal executive offices)              (Zip Code)


                                 (949) 643-7700
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


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


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12(g), 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding twelve months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.


                               Yes  X      No
                                   ---        ---

<PAGE>   2

                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                          QUARTERLY REPORT ON FORM 10-Q
                  FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1999

                                      INDEX

<TABLE>
<CAPTION>
                                                                                     Page
                                                                                     ----
<S>                                                                                  <C>
PART I.  FINANCIAL INFORMATION

Item 1.  Financial Statements

         Statements of Net Assets in Liquidation - September 30, 1999
         (Unaudited)and December 31, 1998 (Audited).............................       3

         Statements of Changes of Net Assets in Liquidation -
         Three and Nine months Ended September 30, 1999 and 1998 (Unaudited)....       4

         Notes to Financial Statements (Unaudited)..............................       5

Item 2.  Management's Discussion and Analysis of
         Financial Condition and Results of Operations..........................      12

Item 3.  Quantitative and Qualitative Market Risk Disclosures...................      18


PART II. OTHER INFORMATION......................................................      18
</TABLE>


                                       2
<PAGE>   3

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                      DAMSON/BIRTCHER REALTY INCOME FUND-I
                     STATEMENTS OF NET ASSETS IN LIQUIDATION

<TABLE>
<CAPTION>
                                               September 30,    December 31,
                                                   1999             1998
                                               -------------    ------------

<S>                                            <C>              <C>
ASSETS (Liquidation Basis):                     (unaudited)
---------------------------

Properties                                      $13,929,000     $34,431,000

Cash and cash equivalents                        15,599,000         351,000
Cash held in escrow                                 512,000              --
Accounts receivable, net                             70,000         171,000
Other assets                                         44,000         121,000
                                                -----------     -----------

    Total Assets                                 30,154,000      35,074,000
                                                -----------     -----------

LIABILITIES (Liquidation Basis):
--------------------------------

Accounts payable and accrued liabilities            389,000         896,000
Secured loan payable                                     --       2,509,000
Accrued expenses for liquidation (including
  prepayment penalty at December 31, 1998)          173,000         873,000
                                                -----------     -----------

    Total Liabilities                               562,000       4,278,000
                                                -----------     -----------

Net Assets in Liquidation                       $29,592,000     $30,796,000
                                                ===========     ===========
</TABLE>


The accompanying notes are an integral part of these financial statements.


                                        3
<PAGE>   4

                      DAMSON/BIRTCHER REALTY INCOME FUND-I
               STATEMENTS OF CHANGES OF NET ASSETS IN LIQUIDATION
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                              Three Months Ended                   Nine Months Ended
                                                 September 30,                       September 30,
                                        ------------------------------      ------------------------------
                                            1999              1998              1999              1998
                                        ------------      ------------      ------------      ------------
<S>                                     <C>               <C>               <C>               <C>
Net assets in liquidation
 at beginning of period                 $ 29,344,000      $ 29,922,000      $ 30,796,000      $ 32,026,000
Increase (decrease) during period:
  Operating activities:
    Property operating income, net           979,000           922,000         2,445,000         2,514,000
    Interest income                           36,000             3,000            43,000             9,000
    General and administrative
     expenses                               (252,000)         (240,000)         (704,000)         (748,000)
    Interest expense on mortgage
     payable                                 (49,000)          (59,000)         (160,000)         (179,000)
    Leasing commissions                      (13,000)          (48,000)          (78,000)         (266,000)
                                        ------------      ------------      ------------      ------------

                                             701,000           578,000         1,546,000         1,330,000
                                        ------------      ------------      ------------      ------------
  Liquidating activities:
    Loss from sale of real estate           (425,000)               --          (425,000)               --
    Adjustment to the carrying
     value of real estate                         --                --        (1,717,000)       (2,600,000)
    Decrease in accrued liquidation
     expenses                                316,000                --           316,000                --
    Distributions to partners               (344,000)               --          (924,000)         (256,000)
                                        ------------      ------------      ------------      ------------

                                            (453,000)               --        (2,750,000)       (2,856,000)
                                        ------------      ------------      ------------      ------------

Net increase (decrease) in assets
in liquidation                               248,000           578,000        (1,204,000)       (1,526,000)
                                        ------------      ------------      ------------      ------------

Net assets in liquidation at
end of period                           $ 29,592,000      $ 30,500,000      $ 29,592,000      $ 30,500,000
                                        ============      ============      ============      ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       4
<PAGE>   5

                      DAMSON/BIRTCHER REALTY INCOME FUND-I



NOTES TO FINANCIAL STATEMENTS - UNAUDITED

(1)      Accounting Policies

         The financial statements of Damson/Birtcher Realty Income Fund-I (the
         "Partnership") included herein have been prepared by the General
         Partner, without audit, pursuant to the rules and regulations of the
         Securities and Exchange Commission. These financial statements include
         all adjustments which are of a normal recurring nature and, in the
         opinion of the General Partner, are necessary for a fair presentation.
         Certain information and footnote disclosures normally included in
         financial statements prepared in accordance with generally accepted
         accounting principles have been condensed or omitted, pursuant to the
         rules and regulations of the Securities and Exchange Commission. These
         financial statements should be read in conjunction with the financial
         statements and notes thereto included in the Partnership's annual
         report on Form 10-K for the year ended December 31, 1998.

         Liquidation Basis of Accounting

         On February 18, 1997, the Partnership mailed a Consent Solicitation to
         the Limited Partners which sought their consent to dissolve the
         Partnership and sell and liquidate all of its remaining properties as
         soon as practicable, consistent with selling the Partnership's
         properties to the best advantage under the circumstances. A majority in
         interest of the Limited Partners consented by March 14, 1997. As a
         result, the Partnership adopted the liquidation basis of accounting as
         of March 31, 1997. The liquidation basis of accounting is appropriate
         when liquidation appears imminent, the Partnership can no longer be
         classified as a going concern and the net realizable values of the
         Partnership's assets are reasonably determinable. The difference
         between the adoption of the liquidation basis of accounting as of March
         14, 1997 and March 31, 1997 was not material.

         Under the liquidation basis of accounting, assets are stated at their
         estimated net realizable values and liabilities are stated at their
         anticipated settlement amounts. The valuation of assets and liabilities
         necessarily requires many estimates and assumptions, and there are
         substantial uncertainties in carrying out the dissolution of the
         Partnership. The actual values upon dissolution and costs associated
         therewith could be higher or lower than the amounts recorded.

         Segment Reporting

         The Partnership adopted Statement of Financial Accounting Standards No.
         131, "Disclosures About Segments of an Enterprise and Related
         Information" ("SFAS 131"). SFAS 131 requires, among other items, that a
         public business enterprise report a measure of segment profit or loss,
         certain specific revenue and expense items, segment assets, information
         about the revenues derived from the enterprise's products or services
         and major customers. SFAS 131 also requires that the enterprise report
         descriptive information about the way that the operating segments were
         determined and the products and services provided by the operating
         segments. Given that the Partnership is in the process of liquidation,
         the Partnership has identified only one operating business segment
         which is the business of asset liquidation. The adoption of SFAS 131
         did not have an impact on the Partnership's financial reporting.


                                       5
<PAGE>   6

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENTS - UNAUDITED (Cont'd.)

(1)      Accounting Policies (Cont'd.)

         Segment Reporting (Cont'd.)

         Rental income from FISERV, Inc. (formerly d.b.a. Citicorp CIR, Inc.)
         totaled $160,000 and $147,000 for the three months ended September 30,
         1999 and 1998, or approximately 15% and 9%, respectively, of the
         Partnership's total rental income. For the nine months ended September
         30, 1999 and 1998, rental income totaled $470,000 and $431,000, or 12%
         and 10% of the Partnership's total rental income, respectively.

         Adjustment to the Carrying Value of Real Estate

         During the three months ended June 30, 1999, the General Partner
         determined that the carrying values of Ladera-I Shopping Center and
         Oakpointe were in excess of their respective estimated net realizable
         values, net of estimated selling costs. As a result, their carrying
         values were adjusted by $1,217,000 and $500,000, to $4,203,000, and
         $5,812,000, respectively.

         Earnings Per Unit

         The Partnership Agreement does not designate investment interests in
         units. All investment interests are calculated on a "percent of
         Partnership" basis, in part to accommodate original reduced rates on
         sales commissions for subscriptions in excess of certain specified
         amounts.

         A Limited Partner who was charged a reduced sales commission or no
         sales commission was credited with proportionately larger Invested
         Capital and therefore had a disproportionately greater interest in the
         capital and revenues of the Partnership than a Limited Partner who paid
         commissions at a higher rate. As a result, the Partnership has no set
         unit value as all accounting, investor reporting and tax information is
         based upon each investor's relative percentage of Invested Capital.
         Accordingly, earnings or loss per unit is not presented in the
         accompanying financial statements.

(2)      Transactions with Affiliates

         The Partnership has no employees and, accordingly, the General Partner
         and its affiliates perform services on behalf of the Partnership in
         connection with administering the affairs of the Partnership. The
         General Partner and affiliates are reimbursed for their general and
         administrative costs actually incurred and associated with services
         performed on behalf of the Partnership. For the three months ended
         September 30, 1999 and 1998, the Partnership incurred approximately
         $26,000 and $25,000, respectively.
         Such costs were $112,000 and $115,000 for the nine months there ended.

         An affiliate of the General Partner provides property management
         services with respect to the Partnership's properties and receives a
         fee for such services not to exceed 3% of the gross receipts from the
         properties under management. Such fees amounted to approximately
         $37,000 and $47,000 for the three months ended September 30, 1999 and
         1998, and $122,000 and $133,000, respectively for the nine


                                       6
<PAGE>   7

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(2)      Transactions with Affiliates (Cont'd.)

         months there ended. In addition, an affiliate of the General Partner
         received $71,000 and $76,000 for the three months ended September 30,
         1999 and 1998, respectively, as reimbursement of costs of on-site
         property management personnel and other reimbursable costs. For the
         nine months there ended, such reimbursements were $242,000 and
         $236,000, respectively.

         As previously reported, on June 24, 1993, the Partnership completed its
         solicitation of written consents from its Limited Partners. A majority
         in interest of the Partnership's Limited Partners approved each of the
         proposals contained in the Information Statement dated May 5, 1993.
         Those proposals were implemented by the Partnership as contemplated by
         the Information Statement as amendments to the Partnership Agreement,
         and are reflected in these financial statements as such.

         The amended Partnership Agreement provides for the Partnership's
         payment to the General Partner of an annual asset management fee equal
         to .45% for 1999 and .55% for 1998 of the aggregate appraised value of
         the Partnership's properties as determined by independent appraisal
         undertaken in January of 1998 and by the General Partner's estimate of
         fair value for 1999. Such fees for the three months ended September 30,
         1999 and 1998, amounted to $37,000 and $52,000, respectively. For the
         nine months there ended, these fees amounted to $116,000 and $157,000,
         respectively.

         In addition, the amended Partnership Agreement provides for payment to
         the General Partner of a leasing fee for services rendered in
         connection with leasing space in a Partnership property after the
         expiration or termination of leases. Fees for leasing services for the
         three months ended September 30, 1999 and 1998, amounted to $2,000 and
         $8,000, respectively. For the nine months there ended, such fees were
         $20,000 and $43,000, respectively.

(3)      Commitments and Contingencies

         Litigation

         So far as is known to the General Partner, neither the Partnership nor
         its properties are subject to any material pending legal proceedings,
         except for the following:

         Bigelow/Diversified Secondary Partnership's Fund 1990 Litigation
         ----------------------------------------------------------------

         On March 25, 1997, a limited partner named Bigelow/Diversified
         Secondary Partnership Fund 1990 filed a purported class action lawsuit
         in the Court of Common Pleas of Philadelphia County against
         Damson/Birtcher Partners, Birtcher Investors, Birtcher/Liquidity
         Properties, Birtcher Investments, L.F. Special Fund II, L.P., L.F.
         Special Fund I, L.P., Arthur Birtcher, Ronald Birtcher, Robert
         Anderson, Richard G. Wollack and Brent R. Donaldson alleging breach of
         fiduciary duty and breach of contract and seeking to enjoin the Consent
         Solicitation dated February 18, 1997. On April 18, 1997, the court
         denied the plaintiff's motion for a preliminary injunction. On June 10,
         1997, the court dismissed the plaintiff's complaint on the basis of
         lack of personal jurisdiction and forum non conveniens.


                                       7
<PAGE>   8

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(3)      Commitments and Contingencies (Cont'd.)

         Litigation (Cont'd.)

         Bigelow/Diversified Secondary Partnership's Fund 1990 Litigation
         -----------------------------------------------------------------
         (Cont'd.)

         On June 13, 1997, the Partnership's affiliated partnerships,
         Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners
         III, and their general partner, Birtcher/Liquidity Properties, filed a
         complaint for declaratory relief in the Court of Chancery in Delaware
         against Bigelow/Diversified Secondary Partnership Fund 1990 L.P. The
         complaint seeks a declaration that the vote that the limited partners
         of Damson/Birtcher Realty Income Fund-II and Real Estate Income
         Partners III took pursuant to the respective consent solicitations
         dated February 18, 1997 was effective to dissolve the respective
         partnerships and complied with applicable law, that the actions of the
         General Partner in utilizing the consent solicitations to solicit the
         vote of the limited partners did not breach any fiduciary or
         contractual duty to such limited partners, and an award of costs and
         fees to the plaintiffs. The defendant has answered the complaint. The
         parties have initiated discovery. No motions are pending at this time.

         In September 1998, Bigelow/Diversified Secondary Partnership 1990
         informed the Partnership that it was filing suit in the Delaware
         Chancery Court against Damson/Birtcher Partners, Birtcher Investors,
         Birtcher Liquidity Properties, Birtcher Investments, BREICORP, LF
         Special Fund I, LP, LF Special Fund II. LP, Arthur Birtcher, Ronald
         Birtcher, Robert Anderson, Richard G. Wollack and Brent R. Donaldson
         alleging a purported class action on behalf of the limited partners of
         Damson/Birtcher Realty Income Fund-I, Damson/Birtcher Realty Income
         Fund-II and Real Estate Income Partners III alleging breach of
         fiduciary duty and incorporating the allegations set forth in the
         previously dismissed March 25, 1997 complaint filed in the Court of
         Chancery of Philadelphia County. Plaintiff has engaged in preliminary
         discovery and the parties have held settlement discussions. No motions
         are pending at this time.

         Rex Garton, et al. v. Damson/Birtcher Partners, et al.
         ------------------------------------------------------

         This action was filed on September 25, 1998 in the District Court of
         Oklahoma County for the State of Oklahoma against the Partnership's
         general partner, Damson/Birtcher Partners, other related defendants and
         numerous unrelated defendants. Damson/Birtcher Partners and other
         related defendants were brought into the action in late December 1998,
         when they were served with the Second Amended Petition. The other
         related defendants are Birtcher Partners, Birtcher Properties, The
         Birtcher Group, Birtcher American Properties, Arthur B. Birtcher,
         Ronald E. Birtcher, LF Special Fund II, L.P., and Liquidity Fund Asset
         Management Inc., but The Birtcher Group and Birtcher American
         Properties have not been served with process and have not appeared in
         the action. The Partnership itself is not named as a defendant. The
         case is a class action brought on behalf of investors in the
         Partnership who purchased limited partnership interests from May 7,
         1984 to September 17, 1985. The Second Amended Petition alleges breach
         of contract, intentional and negligent misrepresentation, breach of
         fiduciary


                                       8
<PAGE>   9

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(3)      Commitments and Contingencies (Cont'd.)

         Litigation (Cont'd.)

         Rex Garton, et al. v. Damson/Birtcher Partners, et al. (Cont'd.)
         ------------------------------------------------------

         duties, and violations of various Oklahoma and federal statutes in
         connection with the sale of the limited partnership interests.
         Plaintiff seeks unspecified compensatory damages and $10 million in
         punitive damages.

         Damson/Birtcher Partners and the related defendants have removed the
         case to the United States District Court for the Western District of
         Oklahoma, and have filed a motion to dismiss the case for lack of
         personal jurisdiction or, alternatively, to transfer the action to the
         United States District Court for the Central District of California,
         for the convenience of the parties and witnesses and in the interests
         of justice. Plaintiff's motion to remand the case back to the Oklahoma
         state court was denied. The motion to dismiss or transfer is pending.
         Damson/Birtcher Partners and the related defendants intend to present a
         vigorous defense on the merits of plaintiff's claims, should this be
         necessary.

         Madison Partnership and ISA Partnership Litigation
         --------------------------------------------------

         On April 2, 1999, Madison Partnership Liquidity Investors XVI, LLC and
         ISA Partnership Liquidity Investors filed a purported class and
         derivative action in the California Superior Court in Orange County,
         California against Damson Birtcher Partners, Birtcher/Liquidity
         Properties, Birtcher Partners, Birtcher Investors, Birtcher
         Investments, Birtcher Limited, Breicorp LP Special Fund II, L.P.,
         Liquidity Fund Asset Management, Inc., Robert M. Anderson, Brent R.
         Donaldson, Arthur B. Birtcher, Ronald E. Birtcher, and Richard G.
         Wollack, Defendants, and Damson/Birtcher Realty Income Fund-I,
         Damson/Birtcher Realty Income Fund-II, and Real Estate Income Partners
         III, Nominal Defendants. The complaint asserts claims for breach of
         fiduciary duty and breach of contract. The gravamen of the complaint is
         that the General Partners of these limited partnerships have not
         undertaken all reasonable efforts to expedite liquidation of the
         Partnerships' properties and to maximize the returns to the
         Partnerships' limited partners. The complaint seeks unspecified
         monetary damages, attorneys' fees and litigation expenses, and an order
         for dissolution of the Partnerships and appointment of an independent
         liquidating trustee. The Partnership has moved to dismiss the case on
         the grounds that the pending Bigelow class action, discussed above,
         raises essentially the same claims. If the case is not stayed or
         dismissed, the Partnership intends to present a vigorous defense.

(4)      Accrued Expenses for Liquidation

         Accrued expenses for liquidation as of September 30, 1999, include
         estimates of costs to be incurred in carrying out the dissolution and
         liquidation of the Partnership. These costs include estimates of legal
         fees (exclusive of litigation costs), accounting fees, tax preparation
         and filing fees, and other professional services. During the three
         months ended September 30, 1999, a pre-payment penalty of $384,000
         associated with the early retirement of a mortgage loan secured by the
         Certified Distribution Center was incurred. The portion previously
         accrued as an estimate of the pre-payment


                                       9
<PAGE>   10

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(4)      Accrued Expenses for Liquidation (Cont'd.)

         penalty was eliminated as a result of the sale of that property. The
         difference between the estimated and actual pre-payment penalty
         incurred ($316,000) has been reflected as a decrease in accrued
         expenses for liquidation for the period ended September 30, 1999.

         The actual costs could vary significantly from the related provisions
         due to the uncertainty related to the length of time required to
         complete the liquidation and dissolution and the complexities which may
         arise in disposing of the Partnership's remaining assets.

(5)      Loss on Sale of Real Estate

         Loss from sale of real estate represents the net gains and losses from
         the sales of Washington Technical Center, Ladera-I shopping center,
         Oakpointe and Certified Distribution Center. Gains were generated by
         the sales of Washington Technical Center ($459,000) and Ladera-I
         shopping center ($20,000). Losses were generated by the sales of
         Oakpointe ($280,000) and Certified Distribution Center ($624,000).

         During the three month period ended September 30, 1999, the Partnership
         sold four of its six properties in two separate transactions, as set
         forth below:

         Ladera-I
         --------

         On September 22, 1999, the Partnership sold Ladera-I shopping center,
         in Albuquerque, New Mexico to CA New Mexico, LLC, a wholly-owned
         subsidiary of CenterAmerica Trust ("CenterAmerica"), a Houston-based
         real estate investment trust that is not affiliated in any way with the
         Partnership, its General Partner or any of its principals or
         affiliates. The sale price was $4,424,000.

         CenterAmerica and the Partnership were each represented by third-party
         brokers in the transaction. The brokers were paid an aggregate $186,803
         from the sale proceeds. The General Partner was not paid a disposition
         fee in connection with the transaction. CenterAmerica did not hire the
         General Partner or any affiliate to perform asset management or
         property management services for this property.

         The Rubin Pachulsky Dew Transaction
         -----------------------------------

         On September 23, 1999, the Partnership sold Certified Warehouse and
         Distribution Center, in Salt Lake City, Utah, Oakpointe Business
         Center, in Arlington Heights, Illinois, and Washington Technical
         Center, in Renton, Washington to Rubin Pachulsky Dew Properties, LLC
         ("Rubin Pachulsky Dew") for $5,100,000, $5,600,000 and $3,950,000,
         respectively, or an aggregate purchase price of $14,650,000. Rubin
         Pachulsky Dew is a third-party real estate investment entity that is
         not affiliated in any way with the Partnership, its General Partner or
         any of its principals or affiliates.

         Rubin Pachulsky Dew was represented by a third-party broker in the
         transaction. The broker was paid $146,500 from the sale proceeds. Since
         the sale price of


                                       10
<PAGE>   11

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


NOTES TO FINANCIAL STATEMENT - UNAUDITED (Cont'd.)

(5)      Loss on Sale of Real Estate

         Washington Technical Center exceeded the January 1, 1993 appraised
         value ($3,400,000), pursuant to the 1993 Amendment of the Partnership
         Agreement, the General Partner earned and was paid a property
         disposition fee of $98,750 in connection with the sale of that
         property.

         Rubin Pachulsky Dew has hired an affiliate of Birtcher as property
         manager for the properties for a fee that is approximately the same as
         the fee the Partnership previously paid to the General Partner for
         property management. In addition, Rubin Pachulsky Dew has hired an
         affiliate of Birtcher to provide certain asset management services for
         the properties, and will pay an incentive fee approximately equal to
         10% of the profits, if any, after Rubin Pachulsky Dew has received a
         15% cumulative annual return on its investment. The incentive fee, if
         earned, is not payable until the last property is sold or four years
         from date of purchase, whichever comes first. The property management
         agreement is cancelable at any time upon 60 days notice, but the
         incentive fee will survive termination of the contract.

         A portion of the proceeds from the sale of the properties to Rubin
         Pachulsky Dew continues to be held in escrow. A sum equal to two and
         one-half percent of the purchase price has been held back as a
         potential source of payment for any claims that may arise related to a
         Partnership breach of certain representations and warranties related to
         the sale and for any litigation costs that may arise for a one-year
         period. The remaining cash held in escrow relates to holdbacks for
         tenant improvements and tax prorations.

(6)      Subsequent Event

         On October 15, 1999, Damson/Birtcher Realty Income Fund-I (the
         "Partnership") sold The Cornerstone shopping center, in Tempe, Arizona
         to GDA Real Estate Services, LLC ("GDA"), a Denver-based real estate
         developer and operator that is not affiliated in any way with the
         Partnership, its General Partner or the General Partner's affiliates,
         for a sale price of $8,500,000.

         GDA was represented by two third-party brokers in the transaction. The
         brokers were paid $170,000 from the sale proceeds. The General Partner
         was not paid a disposition fee in connection with the transaction. GDA
         will not hire the General Partner or any affiliate to perform asset
         management or property management services for this property.


                                       11
<PAGE>   12

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

         Liquidity and Capital Resources
         -------------------------------

         Since the completion of its acquisition program in September 1985, the
         Partnership has been engaged in the operation of its properties. The
         Partnership's original objective had been to hold its properties as
         long-term investments. However, an Information Statement, dated May 5,
         1993, mandated that the General Partner seek a vote of the Limited
         Partners no later than December 31, 1996, regarding prompt liquidation
         of the Partnership in the event that properties with appraised values
         as of January 1993 which constituted at least one half of the aggregate
         appraised values of all Partnership properties as of that date were not
         sold or under contract for sale by the end of 1996. Given the mandate
         of the May 5, 1993 Information Statement, as of December 31, 1995, the
         General Partner decided to account for the Partnership's properties as
         assets held for sale, instead of for investment. In a Consent
         Solicitation dated February 18, 1997, the Partnership solicited and
         received the consent of the Limited Partners on March 14, 1997 to
         dissolve the Partnership and sell and liquidate all of its remaining
         properties as soon as practicable, consistent with selling the
         Partnership's properties to the best advantage under the circumstances.
         The Partnership's properties were held for sale throughout 1998 and
         continue to be held for sale.

         In November 1998, the Partnership entered into a definitive Purchase
         and Sale Agreement with Abbey Investments, Inc. to sell all the
         Partnership's properties for a range between $34,500,000 and
         $36,000,000, depending on final occupancy rates at the time of closing.
         However, in January 1999, the agreement was terminated because Abbey
         had requested a material reduction in the purchase price (approximately
         11%), which the Partnership did not agree to.

         On April 30, 1999, the Partnership and Praedium Performance Fund IV
         ("Praedium") executed a Purchase and Sale Agreement to sell all of the
         Partnership's properties except Terracentre to Praedium for
         $31,700,000. Praedium deposited $243,100 into escrow, pending
         completion of its due diligence inspection and review. Praedium's
         contingency period expired on June 14, 1999. During and after the
         contingency period, Praedium, in a series of negotiations with the
         Partnership, sought reductions in the purchase price of each of the
         properties and declined to include the Cornerstone, Ladera-I and
         Certified in its offers. During this time, the General Partner
         negotiated with Praedium, and also sought other purchasers for the
         properties, both individually and as a group. Finally, in late July
         1999, the Partnership declined Praedium's offer to purchase only
         Cornerstone, Oakpointe and Washington Tech for a materially reduced
         purchase price and terminated its dealings with Praedium.

         Sale of the Properties

         During the three month period ended September 30, 1999, the Partnership
         sold four of its six properties in two separate transactions, and
         subsequently sold The Cornerstone in another transaction on October 15,
         1999, as set forth below:


                                       12
<PAGE>   13

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Cont'd.)

         Liquidity and Capital Resources (Cont'd.)
         -------------------------------

         Sale of the Properties (Cont'd)

         Ladera-I
         --------

         On September 22, 1999, the Partnership sold Ladera-I shopping center,
         in Albuquerque, New Mexico to CA New Mexico, LLC, a wholly-owned
         subsidiary of CenterAmerica Trust ("CenterAmerica"), a Houston-based
         real estate investment trust that is not affiliated in any way with the
         Partnership, its General Partner or any of its principals or
         affiliates. The sale price was $4,424,000.

         CenterAmerica and the Partnership were each represented by third-party
         brokers in the transaction. The brokers were paid an aggregate $186,803
         from the sale proceeds. The General Partner was not paid a disposition
         fee in connection with the transaction. CenterAmerica did not hire the
         General Partner or any affiliate to perform asset management or
         property management services for this property.

         The Rubin Pachulsky Dew Transaction
         -----------------------------------

         On September 23, 1999, the Partnership sold Certified Warehouse and
         Distribution Center, in Salt Lake City, Utah, Oakpointe Business
         Center, in Arlington Heights, Illinois, and Washington Technical
         Center, in Renton, Washington to Rubin Pachulsky Dew Properties, LLC
         ("Rubin Pachulsky Dew") for $5,100,000, $5,600,000 and $3,950,000,
         respectively, or an aggregate purchase price of $14,650,000. Rubin
         Pachulsky Dew is a third-party real estate investment entity that is
         not affiliated in any way with the Partnership, its General Partner or
         any of its principals or affiliates.

         Rubin Pachulsky Dew was represented by a third-party broker in the
         transaction. The broker was paid $146,500 from the sale proceeds. Since
         the sale price of Washington Technical Center exceeded the January 1,
         1993 appraised value ($3,400,000), pursuant to the 1993 Amendment of
         the Partnership Agreement, the General Partner earned and was paid a
         property disposition fee of $98,750 in connection with the sale of that
         property.

         Rubin Pachulsky Dew has hired an affiliate of Birtcher as property
         manager for the properties for a fee that is approximately the same as
         the fee the Partnership previously paid to the General Partner for
         property management. In addition, Rubin Pachulsky Dew has hired an
         affiliate of Birtcher to provide certain asset management services for
         the properties, and will pay an incentive fee approximately equal to
         10% of the profits, if any, after Rubin Pachulsky Dew has received a
         15% cumulative annual return on its investment. The incentive fee, if
         earned, is not payable until the last property is sold or four years
         from date of purchase, whichever comes first. The property management
         agreement is cancelable at any time upon 60 days notice, but the
         incentive fee will survive termination of the contract.

         A portion of the proceeds from the sale of the properties to Rubin
         Pachulsky Dew continues to be held in escrow. A sum equal to two and
         one-half percent of the purchase price has been held back as a
         potential source of payment for any claims that may arise related to a
         Partnership breach of certain representations and warranties related to
         the sale and for any litigation costs that may arise for a one-year
         period. The remaining cash held in escrow relates to holdbacks for
         tenant improvements and tax prorations. The cash held in escrow has
         been included in the calculation of loss on sale of real estate.



                                       13
<PAGE>   14

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Cont'd.)

         Liquidity and Capital Resources (Cont'd.)
         -------------------------------

         Sale of the Properties (Cont'd)

         The Cornerstone
         ---------------

         On October 15, 1999, Damson/Birtcher Realty Income Fund-I (the
         "Partnership") sold The Cornerstone shopping center, in Tempe, Arizona
         to GDA Real Estate Services, LLC ("GDA"), a Denver-based real estate
         developer and operator that is not affiliated in any way with the
         Partnership, its General Partner or the General Partner's affiliates,
         for a sale price of $8,500,000.

         GDA was represented by two third-party brokers in the transaction. The
         brokers were paid $170,000 from the sale proceeds. The General Partner
         was not paid a disposition fee in connection with the transaction. GDA
         will not hire the General Partner or any affiliate to perform asset
         management or property management services for this property.

         Summary of Sale Proceeds
         ------------------------

         The Partnership realized approximately $22,744,000, or approximately
         $234 per $1,000 originally invested in the Partnership, in
         distributable cash proceeds from the sale of the four properties during
         the three months ended September 30, 1999 and from the sale of
         Cornerstone in October 1999, after paying off the Certified loan
         (approximately $2,747,000 including accrued interest and pre-payment
         penalty) and deducting for holdbacks associated with the Rubin
         Pachulsky Dew transaction (approximately $512,000), a parking lot
         repair associated with the GDA transaction (approximately $230,000),
         and closing costs and prorations totaling approximately $1,341,000.

         The General Partner's estimate of distributable cash proceeds does not
         take into account the expenditure of Partnership cash reserves,
         operating expenses or net income or loss of the Partnership for any
         period prior to the time the remaining property is sold or, the ongoing
         litigation, which could affect the amount of sales proceeds ultimately
         available for distribution. Therefore, the actual proceeds to be
         received by the limited partners may vary materially, up or down, from
         the estimate.

         Currently, three lawsuits are pending against the Partnership and its
         General Partner and certain of its affiliates that seek, among things,
         unspecified monetary damages. Since these cases are in the preliminary
         discovery phase, there is unavoidable uncertainty regarding their
         ultimate resolution. The Partnership Agreement mandates that the
         General Partner provide for all of the Partnership's liabilities and
         obligations, including contingent liabilities, before distributing
         liquidation proceeds to its partners. Therefore, the Partnership will
         not distribute liquidation proceeds until the uncertainty surrounding
         these lawsuits is sufficiently resolved. The amount and timing of any
         distribution of liquidation proceeds will be determined by the General
         Partner in light of these and other relevant considerations.

         Status of Terracentre
         ---------------------

         On March 24, 1999, the Partnership signed a Purchase and Sale Agreement
         to sell Terracentre for $6,450,000 to Halcyon Real Estate, Inc.
         ("Halcyon"), a local


                                       14
<PAGE>   15

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Cont'd.)

         Liquidity and Capital Resources (Cont'd.)
         -------------------------------

         Status of Terracentre (Cont'd.)
         ---------------------

         Denver real estate development company. During its due diligence period
         Halcyon asked to extend its contingency period to address zoning and
         land-use changes with the city of Denver (it apparently wanted to
         change the site from office to residential condominium use). The
         General Partner did not accept the request for extension. Halcyon
         thereupon asked to reduce the purchase price from $6,450,000 to
         $4,500,000. The Partnership rejected this request and terminated its
         dealings with Halcyon.

         Other Matters
         -------------

         On June 18, 1999, the Partnership entered into a Purchase and Sale
         Agreement to sell Terracentre to Charles Callaway ("Callaway"), an
         unaffiliated Denver real estate developer and operator, for $6,450,000.
         The purchaser deposited $200,000 into escrow on June 21, 1999, all but
         $50,000 of which is refundable pending completion of its due diligence
         investigation. Unfortunately, at a Denver city council meeting on
         August 10, 1999, certain council members discussed condemning
         Terracentre in order to expand the adjacent convention center. The
         Callaway transaction was subsequently terminated and the deposit
         returned. On November 2, 1999, Denver voters approved a referendum in
         favor of expanding the convention center. The disposition of the
         property is currently pending further action by the City of Denver.

         Regular distributions through September 30, 1999 represent cash flow
         generated from operations of the Partnership's properties and interest
         earned on the temporary investment of working capital net of capital
         reserve requirements.

         On July 30, 1993, the Partnership obtained a loan secured by a First
         Deed of Trust on the Certified Distribution Center in Salt Lake City,
         Utah. The loan, in the amount of $3,500,000, carried a fixed interest
         rate of 9% per annum over a 13-year fully amortizing term and a
         prepayment penalty feature. The loan was retired on September 23, 1999
         with the sale of the Certified Distribution Center. The actual
         pre-payment penalty incurred amounted to approximately $384,000.

         The Partnership is in the process of liquidating its remaining assets.
         Only one of the Partnership's properties (Terracentre) is expected to
         remain unsold at January 1, 2000, the balance of the Partnership's
         assets are expected to consist primarily of cash and receivables. It is
         the opinion of the General Partner that the value of those


                                       15
<PAGE>   16

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Cont'd.)

         Liquidity and Capital Resources (Cont'd.)
         -------------------------------

         Other Matters (Cont'd.)
         -------------

         assets is not subject to any valuation risk as a result of year 2000
         issues, other than general economic climate issues that may arise.
         Based on current information, the cost of addressing potential year
         2000 problems is not expected to have a material adverse impact on the
         Partnership's financial position, results of operations or cash flows
         in future periods. As of September 30, 1999, the Partnership's
         accounting systems and the investor services system used to track the
         limited partners' interests, distributions and tax information have
         been tested and appear to be free of year 2000 bugs. The Partnership's
         remaining property is under review utilizing the Building Owners and
         Managers Association ("BOMA") industry standards as a guideline for
         necessary corrections. The cost of the upgrades to the Partnership's
         accounting systems were borne by the General Partner and will not be
         reimbursed by the Partnership. In addition, the General Partner has
         made inquiries of its banks, all of which indicate that any problems
         have been addressed adequately by those institutions.

         Even if attempts to correct any deficiencies in the Partnership's
         software were unsuccessful, the General Partner anticipates that in the
         short term it could convert its systems to standard spreadsheet or data
         base programs at nominal costs.

         Results of Operations for the Three Months Ended September 30, 1999
         -------------------------------------------------------------------

         Because the Partnership is in the process of liquidating its remaining
         assets, a comparison of the results of operations is not practical. As
         the Partnership's assets (properties) are sold, the results of
         operations will be generated from a smaller asset base, and are
         therefore not comparable. The Partnership completed the sale of four of
         its six remaining properties in two separate transactions during
         September 1999. The Partnership's operating results have been reflected
         on the Statements of Changes of Net Assets in Liquidation.

         For the three months ended September 30, 1999, the Partnership
         generated $979,000 of net operating income from operation of its
         properties. The increase in net operating income for the three months
         ended September 30, 1999 when compared to the same period in 1998, was
         primarily attributable to a successful tax appeal at Oakpointe,
         partially offset by reduced revenue from the properties which were sold
         in September.

         Interest income resulted from the temporary investment of Partnership
         working capital. For the three months ended September 30, 1999,
         interest income was approximately $36,000. The increase in interest
         income was reflective of the increased cash and cash equivalent
         balances that were generated from the sale of the properties.

         Loss from sale of real estate represents the net gains and losses from
         the sales of Washington Technical Center, Ladera-I shopping center,
         Oakpointe and Certified Distribution Center. Gains were generated by
         the sale Washington Technical Center


                                       16
<PAGE>   17

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS (Cont'd.)

         Results of Operations for the Three Months Ended September 30, 1999
         -------------------------------------------------------------------
         (Cont'd.)

         ($459,000) and Ladera-I shopping center ($20,000). Losses were
         generated by the sale of Oakpointe ($280,000) and Certified
         Distribution Center ($624,000).

         General and administrative expenses for the three months ended
         September 30, 1999, include charges of $66,000 from the General Partner
         and its affiliates for services rendered in connection with
         administering the affairs of the Partnership and operating the
         Partnership's properties.

         Also included in general and administrative expenses for the three
         months ended September 30, 1999, are direct charges of $570,000,
         relating to audit fees, tax preparation fees, legal fees and
         professional services, costs incurred in providing information to the
         Limited Partners and other miscellaneous costs.

         During the three months ended June 30, 1999, the General Partner
         determined that the carrying values of Ladera-I Shopping Center and
         Oakpointe were in excess of their respective estimated net realizable
         values, net of estimated selling costs. As a result, their carrying
         values were adjusted by $1,217,000 and $500,000, to $4,203,000, and
         $5,812,000, respectively.

         Accrued expenses for liquidation as of September 30, 1999, include
         estimates of costs to be incurred in carrying out the dissolution and
         liquidation of the Partnership. These costs include estimates of legal
         fees, accounting fees, tax preparation and filing fees, and other
         professional services. During the three months ended September 30,
         1999, a pre-payment penalty of $384,000 associated with the early
         retirement of a mortgage loan secured by the Certified Distribution
         Center was incurred. The portion previously accrued as an estimate of
         the pre-payment penalty was eliminated as a result of the sale of that
         property. The difference between the estimated and actual pre-payment
         penalty incurred ($384,000) has been reflected as a decrease in accrued
         expenses for liquidation for the period ended September 30, 1999.

         The actual costs could vary significantly from the related provisions
         due to the uncertainty related to the length of time required to
         complete the liquidation and dissolution and the complexities which may
         arise in disposing of the Partnership's remaining assets.

         Interest expense resulted from interest on the first deed of trust on
         Certified Distribution Center. That mortgage was retired on September
         23, 1999 with the sale of Certified Distribution Center to Rubin
         Pachulsky Dew.


                                       17
<PAGE>   18

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 3.  QUANTITATIVE AND QUALITATIVE MARKET RISK DISCLOSURES

         Not applicable because the Partnership does not have any financial
         instruments subject to market risk.


                           PART II. OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         Bigelow Diversified Secondary Partnership Fund 1990 litigation
         --------------------------------------------------------------

         On March 25, 1997, a limited partner named Bigelow/Diversified
         Secondary Partnership Fund 1990 filed a purported class action lawsuit
         in the Court of Common Pleas of Philadelphia County against
         Damson/Birtcher Partners, Birtcher Investors, Birtcher/Liquidity
         Properties, Birtcher Investments, L.F. Special Fund II, L.P., L.F.
         Special Fund I, L.P., Arthur Birtcher, Ronald Birtcher, Robert
         Anderson, Richard G. Wollack and Brent R. Donaldson alleging breach of
         fiduciary duty and breach of contract and seeking to enjoin the Consent
         Solicitation dated February 18, 1997. On April 18, 1997, the court
         denied the plaintiff's motion for a preliminary injunction. On June 10,
         1997, the court dismissed the plaintiff's complaint on the basis of
         lack of personal jurisdiction and forum non conveniens.

         On June 13, 1997, the Partnership's affiliated partnerships,
         Damson/Birtcher Realty Income Fund-II and Real Estate Income Partners
         III, and their general partner, Birtcher/Liquidity Properties, filed a
         complaint for declaratory relief in the Court of Chancery in Delaware
         against Bigelow/Diversified Secondary Partnership Fund 1990 L.P. The
         complaint seeks a declaration that the vote that the limited partners
         of Damson/Birtcher Realty Income Fund-II and Real Estate Income
         Partners III took pursuant to the respective consent solicitations
         dated February 18, 1997 was effective to dissolve the respective
         partnerships and complied with applicable law, that the actions of the
         General Partner in utilizing the consent solicitations to solicit the
         vote of the limited partners did not breach any fiduciary or
         contractual duty to such limited partners, and an award of costs and
         fees to the plaintiffs. The defendant has answered the complaint. The
         parties have initiated discovery. No motions are pending at this time.

         In September 1998, Bigelow/Diversified Secondary Partnership 1990
         informed the Partnership that it was filing suit in the Delaware
         Chancery Court against Damson/Birtcher Partners, Birtcher Investors,
         Birtcher Liquidity Properties, Birtcher Investments, BREICORP, LF
         Special Fund I, LP, LF Special Fund II. LP, Arthur Birtcher, Ronald
         Birtcher, Robert Anderson, Richard G. Wollack and Brent R. Donaldson
         alleging a purported class action on behalf of the limited partners of
         Damson/Birtcher Realty Income Fund-I, Damson/Birtcher Realty Income
         Fund-II and Real Estate Income Partners III alleging breach of
         fiduciary duty and incorporating the allegations set forth in the
         previously dismissed March 25, 1997 complaint filed in the Court of
         Chancery of Philadelphia County. Plaintiff has engaged in preliminary
         discovery and the parties have held settlement discussions. No motions
         are pending at this time.


                                       18
<PAGE>   19

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 1.  LEGAL PROCEEDINGS (Cont'd.)

         Rex Garton, et al. v. Damson/Birtcher Partners, et al.
         ------------------------------------------------------

         This action was filed on September 25, 1998 in the District Court of
         Oklahoma County for the State of Oklahoma against the Partnership's
         general partner, Damson/Birtcher Partners, other related defendants and
         numerous unrelated defendants. Damson/Birtcher Partners and other
         related defendants were brought into the action in late December 1998,
         when they were served with the Second Amended Petition. The other
         related defendants are Birtcher Partners, Birtcher Properties, The
         Birtcher Group, Birtcher American Properties, Arthur B. Birtcher,
         Ronald E. Birtcher, LF Special Fund II, L.P., and Liquidity Fund Asset
         Management Inc., but The Birtcher Group and Birtcher American
         Properties have not been served with process and have not appeared in
         the action. The Partnership itself is not named as a defendant. The
         case is a class action brought on behalf of investors in the
         Partnership who purchased limited partnership interests from May 7,
         1984 to September 17, 1985. The Second Amended Petition alleges breach
         of contract, intentional and negligent misrepresentation, breach of
         fiduciary duties, and violations of various Oklahoma and federal
         statutes in connection with the sale of the limited partnership
         interests. Plaintiff seeks unspecified compensatory damages and $10
         million in punitive damages.

         Damson/Birtcher Partners and the related defendants have removed the
         case to the United States District Court for the Western District of
         Oklahoma, and have filed a motion to dismiss the case for lack of
         personal jurisdiction or, alternatively, to transfer the action to the
         United States District Court for the Central District of California,
         for the convenience of the parties and witnesses and in the interests
         of justice. Plaintiff's motion to remand the case back to the Oklahoma
         state court was denied. The motion to dismiss or transfer is pending.
         Damson/Birtcher Partners and the related defendants intend to present a
         vigorous defense on the merits of plaintiff's claims, should this be
         necessary.

         Madison Partnership and ISA Partnership Litigation
         --------------------------------------------------

         On April 2, 1999, Madison Partnership Liquidity Investors XVI, LLC and
         ISA Partnership Liquidity Investors filed a purported class and
         derivative action in the California Superior Court in Orange County,
         California against Damson Birtcher Partners, Birtcher/Liquidity
         Properties, Birtcher Partners, Birtcher Investors, Birtcher
         Investments, Birtcher Limited, Breicorp LP Special Fund II, L.P.,
         Liquidity Fund Asset Management, Inc., Robert M. Anderson, Brent R.
         Donaldson, Arthur B. Birtcher, Ronald E. Birtcher, and Richard G.
         Wollack, Defendants, and Damson/Birtcher Realty Income Fund-I,
         Damson/Birtcher Realty Income Fund-II, and Real Estate Income Partners
         III, Nominal Defendants. The complaint asserts claims for breach of
         fiduciary duty and breach of contract. The gravamen of the complaint is
         that the General Partners of these limited partnerships have not
         undertaken all reasonable efforts to expedite liquidation of the
         Partnerships' properties and to maximize the returns to the
         Partnerships' limited partners. The complaint seeks unspecified
         monetary damages, attorneys' fees and litigation expenses, and an order
         for dissolution of the Partnerships and appointment of an independent
         liquidating trustee. The Partnership has moved to dismiss the case on
         the grounds that the pending Bigelow class action, discussed above,
         raises essentially the same claims. If the case is not stayed or
         dismissed, the Partnership intends to present a vigorous defense.


                                       19
<PAGE>   20

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

         a)       Exhibits:

                  27 - Financial Data Schedule

         b)       Reports on Form 8-K:

                  Form 8-K filed on October 15, 1999 reporting the sales of
                  Certified Distribution Center, Oakpointe Business Center,
                  Ladera-I shopping center, Washington Technical Center,
                  incorporated by reference.

                  Form 8-K filed on October 19, 1999 reporting the sale of The
                  Cornerstone shopping center, incorporated by reference.


                                       20
<PAGE>   21

                      DAMSON/BIRTCHER REALTY INCOME FUND-I


                                   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.


<TABLE>
<S>                                     <C>
                                        DAMSON/BIRTCHER REALTY INCOME FUND-I


By: DAMSON/BIRTCHER PARTNERS            By:   BIRTCHER PARTNERS,
    (General Partner)                         a California general partnership

                                              By:    BIRTCHER INVESTMENTS,
                                                     a California general partnership,
                                                     General Partner of Birtcher Partners

                                                     By:   BIRTCHER LIMITED,
                                                           a California limited partnership,
                                                           General Partner of Birtcher Investments

                                                           By:    BREICORP,
                                                                  a California corporation,
                                                                  formerly known as Birtcher
                                                                  Real Estate Inc., General
                                                                  Partner of Birtcher Limited

Date:  November 15, 1999                                          By:   /s/Robert M. Anderson
                                                                        --------------------------
                                                                        Robert M. Anderson
                                                                        Executive Director
                                                                        BREICORP

                                        By:   LF Special Fund II, L.P.,
                                              a California limited partnership

                                              By:    Liquidity Fund Asset Management, Inc.,
                                                     a California corporation, General
                                                     Partner of LF Special Fund II, L.P.

Date:  November 15, 1999                             By:   /s/ Brent R. Donaldson
                                                           -----------------------------
                                                           Brent R. Donaldson
                                                           President
                                                           Liquidity Fund Asset Management, Inc.
</TABLE>



                                       21

<PAGE>   22

                                 EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number                  Description
------                  -----------
<C>         <S>
  27        Financial Data Schedule
</TABLE>