SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                   FORM 10-Q
(Mark One)

  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 0-14353
                       -------

                    BALCOR REALTY INVESTORS 85-SERIES I
                     A REAL ESTATE LIMITED PARTNERSHIP         
          -------------------------------------------------------
          (Exact name of registrant as specified in its charter)

          Illinois                                      36-3244978    
-------------------------------                     -------------------
(State or other jurisdiction of                      (I.R.S. Employer  
incorporation or organization)                      Identification No.)

2355 Waukegan Road
Bannockburn, Illinois                                      60015   
-----------------------------------------           -------------------
(Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code (847) 267-1600
                                                   --------------

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

Yes   X    No     
    -----     -----
<PAGE>
                     BALCOR REALTY INVESTORS 85 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                                BALANCE SHEETS
                      June 30, 1998 and December 31, 1997
                                 (Unaudited)

                                    ASSETS

                                                 1998            1997
                                            --------------  --------------
Cash and cash equivalents                   $   1,878,385   $   2,508,464
Accounts and accrued interest receivable            5,028          22,312
                                            --------------  --------------
                                            $   1,883,413   $   2,530,776
                                            ==============  ==============


                  LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)

Accounts payable                            $      22,779   $      17,255
Due to affiliates                                  45,234          34,766
                                            --------------  --------------
     Total liabilities                             68,013          52,021
                                            --------------  --------------

Commitments and contingencies

Limited Partners' capital (82,697  
  Interests issued and outstanding)             2,121,429       2,784,784
General Partner's deficit                        (306,029)       (306,029)
                                            --------------  --------------
     Total partners' capital                    1,815,400       2,478,755
                                            --------------  --------------
                                            $   1,883,413   $   2,530,776
                                            ==============  ==============
                                               
The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 85 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)


                                                 1998            1997
                                            --------------  --------------
Income:
  Rental and service                                        $     443,934
  Interest on short-term investments        $      52,523         192,432
  Other income                                                     39,758
                                            --------------  --------------
    Total income                                   52,523         676,124
                                            --------------  --------------
Expenses:
  Interest on mortgage notes payable                               99,717
  Lender participation                                          1,025,000
  Depreciation                                                     62,779
  Property operating                                6,519         263,437
  Real estate taxes                                                12,325
  Property management fees                                         17,151
  Administrative                                  132,961         163,376
  Participation in loss of joint
    venture with affiliate                                         11,792
                                            --------------  --------------
    Total expenses                                139,480       1,655,577
                                            --------------  --------------
(Loss) before gain on sale of property            (86,957)       (979,453)

Gain on sale of property                                       12,768,729
                                            --------------  --------------
Net (loss) income                           $     (86,957)  $  11,789,276
                                            ==============  ==============
Net income allocated to General Partner             None    $      58,126
                                            ==============  ==============
Net (loss) income allocated to Limited 
  Partners                                  $     (86,957)  $  11,731,150
                                            ==============  ==============
Net (loss) income per Limited Partnership
  Interest (82,697 issued and outstanding)
  - Basic and Diluted                       $       (1.05)  $      141.86
                                            ==============  ==============
Distributions to Limited Partners           $     576,398   $  23,899,433
                                            ==============  ==============
Distributions per Limited Partnership
  Interest (82,697 issued and outstanding)  $        6.97   $      289.00
                                            ==============  ==============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 85 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                       STATEMENTS OF INCOME AND EXPENSES
                 for the quarters ended June 30, 1998 and 1997
                                  (Unaudited)

                                                 1998            1997
                                            --------------  --------------
Income:
  Interest on short-term investments        $      24,745   $      68,427
  Other income                                                     39,758
                                            --------------  --------------
    Total income                                   24,745         108,185
                                            --------------  --------------
Expenses:
  Administrative                                   51,628          64,616
  Participation in loss of joint
    venture with affiliate                                         11,265
                                            --------------  --------------
    Total expenses                                 51,628          75,881
                                            --------------  --------------
Net (loss) income                           $     (26,883)  $      32,304
                                            ==============  ==============
Net income allocated to General Partner             None            None 
                                            ==============  ==============
Net (loss) income allocated to Limited 
  Partners                                  $     (26,883)  $      32,304
                                            ==============  ==============
Net (loss) income per Limited Partnership
  Interest (82,697 issued and outstanding)
  - Basic and Diluted                       $       (0.32)  $        0.39
                                            ==============  ==============
Distribution to Limited Partners                    None    $  10,419,822
                                            ==============  ==============
Distribution per Limited Partnership
  Interest (82,697 issued and outstanding)          None    $      126.00
                                            ==============  ==============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                     BALCOR REALTY INVESTORS 85 - SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                           STATEMENTS OF CASH FLOWS
                for the six months ended June 30, 1998 and 1997
                                  (Unaudited)

                                                 1998            1997
                                            --------------  --------------
Operating activities:
  Net (loss) income                         $     (86,957)  $  11,789,276
  Adjustments to reconcile net (loss) income 
    to net cash used in operating
    activities:
    Gain on sale of property                                  (12,768,729)
    Participation in loss of joint venture 
      with affiliate                                               11,792
    Depreciation of property                                       62,779
    Net change in:
      Accounts and accrued interest
        receivable                                 17,284         114,902
      Prepaid expenses                                             29,911
      Accounts payable                              5,524         (48,253)
      Due to affiliates                            10,468         (32,321)
      Accrued liabilities                                         (91,810)
      Security deposits                                           (62,326)
                                            --------------  --------------
  Net cash used in operating activities           (53,681)       (994,779)
                                            --------------  --------------
Investing activities:
  Distribution from joint venture
    with affiliate                                                 31,085
  Proceeds from sale of real estate                            23,300,000
  Payment of selling costs                                       (451,499)
                                                            --------------
  Net cash provided by investing activities                    22,879,586
                                                            --------------
Financing activities:
  Distributions to Limited Partners              (576,398)    (23,899,433)
  Repayment of mortgage note payable                          (11,458,759)
  Principal payments on mortgage
    note payable                                                  (36,575)
                                            --------------  --------------
  Cash used in financing activities              (576,398)    (35,394,767)
                                            --------------  --------------

Net change in cash and cash equivalents          (630,079)    (13,509,960)
Cash and cash equivalents at 
  beginning of period                           2,508,464      16,372,728
                                            --------------  --------------
Cash and cash equivalents at end of period  $   1,878,385   $   2,862,768
                                            ==============  ==============

The accompanying notes are an integral part of the financial statements.
<PAGE>
                      BALCOR REALTY INVESTORS 85-SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                         NOTES TO FINANCIAL STATEMENTS


1. Accounting Policies:

(a) For financial statement purposes, the capital accounts of the General
Partner and Limited Partners have been adjusted to appropriately reflect their
remaining economic interests as provided for in the Partnership Agreement.

(b) In the opinion of management, all adjustments necessary for a fair
presentation have been made to the accompanying statements for the six months
and quarter ended June 30, 1998, and all such adjustments are of a normal and
recurring nature.

2. Partnership Termination:

The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1997, the Partnership sold its remaining property and the
property in which the Partnership held a minority joint venture interest.  The
Partnership has retained a portion of the cash from the property sales to
satisfy obligations of the Partnership as well as to establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuits discussed in Note 5 of Notes to the
Financial Statements.  In the absence of any such contingencies, the reserves
will be paid within twelve months of the last property being sold. In the event
a contingency continues to exist or arises, reserves may be held by the
Partnership for a longer period of time.

3. Interest Expense:

During the six months ended June 30, 1997, the Partnership incurred and paid
interest expense on mortgage notes payable of $99,717.

4. Transactions with Affiliates:

Fees and expenses paid and payable by the Partnership to affiliates during the
six months and quarter ended June 30, 1998 are:

                                               
                                           Paid
                                   -------------------------
                                     Six Months     Quarter    Payable
                                    ------------   ---------  ---------
<PAGE>
   Reimbursement of expenses to
     the General Partner, at cost   $ 10,688       $ 4,519    $ 45,234


5. Contingencies: 

The Partnership is currently involved in two lawsuits whereby the Partnership
and certain affiliates have been named as defendants alleging substantially
similar claims involving certain state securities and common law violations
with regard to the property acquisition process of the Partnership, and to the
adequacy and accuracy of disclosures of information concerning, as well as the
marketing efforts related to the offering of the Limited Partnership Interests
of the Partnership. The defendants continue to vigorously contest these
actions. A plaintiff class has not yet been certified in either action and, no
determinations of the merits have been made. It is not determinable at this
time whether or not an unfavorable decision in either action would have a
material adverse impact on the financial position of the Partnership. The
Partnership believes that it has meritorious defenses to contest the claims.
<PAGE>
                      BALCOR REALTY INVESTORS 85-SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                     MANAGEMENT'S DISCUSSION AND ANALYSIS


Balcor Realty Investors 85 - Series I A Real Estate Limited Partnership (the
"Partnership") was formed in 1983 to invest in and operate income-producing
real property. The Partnership raised $82,697,000 through the sale of Limited
Partnership Interests and utilized these proceeds to acquire ten real property
investments and minority joint venture interests in three additional
properties. As of June 30, 1998, the Partnership has no properties in its
portfolio. 

Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1997 for a more complete understanding of
the Partnership's financial position.

Operations
----------

Summary of Operations
---------------------

Administrative expenses were higher than interest earned on short-term
investments during the six months and quarter ended June 30, 1998. This was the
primary reason the Partnership recognized a net loss for the six months and
quarter ended June 30, 1998. During February 1997, the Partnership recognized a
gain on the sale of the Templeton Park Apartments which was the reason the
Partnership recognized net income for the six months ended June 30, 1997.
During June 1997, the Partnership recognized other income due to an insurance
premium refund which was the primary reason the Partnership recognized net
income during the quarter ended June 30, 1997.  Further discussion of the
Partnership's operations is summarized below.

1998 Compared to 1997
---------------------
 
Unless otherwise noted, discussions of fluctuations between 1998 and 1997 refer
to both the six months and quarters ended June 30, 1998 and 1997.

During February 1997, the Partnership sold the Templeton Park Apartments and
recognized a gain of $12,768,729 in connection with the sale of the property.
As a result of the sale of the property, rental and service income, interest
expense on mortgage note payable, depreciation, real estate taxes and property
management fees ceased in 1997. 

Higher average cash balances were available for investment during 1997 due to
<PAGE>
proceeds received in connection with the 1996 and 1997 property sales prior to
distribution to Limited Partners in January and April 1997. As a result,
interest income on short-term investments decreased during 1998 as compared to
1997.

The Partnership recognized other income during the quarter ended June 30, 1997
relating to an insurance premium refund for one of the properties sold in 1996.

The Partnership paid $1,025,000 to the holder of the first mortgage loan in
connection with the sale of the Templeton Park Apartments during February 1997.
This amount was recorded as lender participation and represents additional
interest. This amount was calculated as a percentage of the sale price in
excess of an amount specified in the loan agreement.

Property operating expenses decreased during the six months ended June 30, 1998
as compared to the same period in 1997 due to the sale of the Templeton Park
Apartments.  During the six months ended June 30, 1998, the Partnership paid
its share of additional expenditures related to the North Hill Apartments, in
which the Partnership held a minority joint venture interest. This property was
sold in September 1997.

Primarily as a result of lower accounting and bank fees, administrative
expenses decreased during 1998 as compared to 1997.  This decrease was
partially offset by an increase in legal fees incurred in connection with the
litigation discussed in Note 5 of Notes to the Financial Statements.

Due to the sale of the North Hill Apartments in September 1997, participation
in loss of joint venture with affiliate ceased.

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

The cash position of the Partnership decreased by approximately $630,000 as of
June 30, 1998 as compared to December 31, 1997, primarily due to a distribution
paid to Limited Partners during January 1998 from remaining available Net Cash
Receipts reserves and from the Partnership's share of the sale holdback on the
North Hill Apartments. The Partnership used cash of approximately $54,000 in
its operating activities to pay administrative expenses and property operating
expenses related to a sold property, which were partially offset by interest
income earned on short-term investments. The Partnership used cash in its
financing activities of approximately $576,000 to pay a distribution to Limited
Partners.
       
The Partnership Agreement provides for the dissolution of the Partnership upon
the occurrence of certain events, including the disposition of all interests in
real estate. During 1997, the Partnership sold its remaining property and the
property in which the Partnership held a minority joint venture interest. The
Partnership has retained a portion of the cash from the property sales to
satisfy obligations of the Partnership as well as to establish a reserve for
contingencies. The timing of the termination of the Partnership and final
distribution of cash will depend upon the nature and extent of liabilities and
<PAGE>
contingencies which exist or may arise. Such contingencies may include legal
and other fees and costs stemming from litigation involving the Partnership
including, but not limited to, the lawsuit discussed in Note 5 of Notes to the
Financial Statements.  In the absence of any such contingencies, the reserves
will be paid within twelve months of the last property being sold. In the event
a contingency continues to exist or arises, reserves may be held by the
Partnership for a longer period of time.

To date, the Limited Partners have received cash distributions totaling $587.47
per $1,000 Interest as well as certain tax benefits. Of this amount, $98.79
represents Net Cash Receipts and $488.68 represents Net Cash Proceeds. No
additional distributions are anticipated to be made prior to the termination of
the Partnership.  However, after paying final partnership expenses, any
remaining cash reserves will be distributed. Limited Partners will not recover
all of their original investment.  
<PAGE>
                      BALCOR REALTY INVESTORS 85-SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
                       (An Illinois Limited Partnership)

                          PART II - OTHER INFORMATION


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

(a) Exhibits:

(4) Subscription Agreement as set forth as Exhibit 4.1 to Amendment No. 1 to
Registrant's Registration Statement on Form S-11 dated November 29, 1984
(Registration No. 2-92777) and Form of Confirmation regarding Interests in the
Partnership as set forth as Exhibit 4.2 to the Partnership's Report on Form
10-Q for the quarter ended June 30, 1992 are incorporated herein by reference.

(10) Material Contracts:

(a)(i) Agreement of Sale and attachments thereto relating to the sale of
Forestwood Apartments, East Baton Rouge Parish, Louisiana, previously filed as
Exhibit (2) to the Registrant's Current Report on Form 8-K dated October 14,
1996, is incorporated herein by reference.

(ii) First Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of Forestwood Apartments, East Baton Rouge, Louisiana previously filed as
Exhibit (10)(a)(ii) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1996, is incorporated herein by reference.

(iii) Second Amendment to Agreement of Sale relating to the sale of Forestwood
Apartments, East Baton Rouge, Louisiana previously filed as Exhibit
(10)(a)(iii) to the Registrant's Quarterly Report on Form 10-Q for the quarter
ended September 30, 1996, is incorporated herein by reference.

(b)(i) Agreement of Sale and attachment thereto relating to the sale of Boulder
Springs Apartments, Chesterfield County, Virginia, previously filed as Exhibit
(2)(a)(i) to the Registrant's Current Report on Form 8-K dated August 8, 1996,
is incorporated herein by reference.

(ii) Letter dated August 19, 1996 relating to the sale of Boulder Springs
Apartments, Chesterfield County, Virginia, previously filed as Exhibit
(2)(a)(ii) to the Registrant's Current Report on Form 8-K dated August 8, 1996,
is incorporated herein by reference.

(iii) Amendment to Agreement of Sale relating to the sale of Boulder Springs
Apartments, Chesterfield County, Virginia, previously filed as Exhibit
(99)(b)(i) to the Registrant's Current Report on Form 8-K dated October 14,
1996, is incorporated herein by reference.

(iv) Second Amendment of Agreement of Sale relating to the sale of Boulder
Springs Apartments, Chesterfield County, Virginia, previously filed as Exhibit
<PAGE>
(99)(b)(ii) to the Registrant's Current Report on Form 8-K dated October 14,
1996, is incorporated herein by reference.

(c)(i) Agreement of Sale and attachment thereto relating to the sale of
Timberlake Apartments, Phase I, Altamonte Springs, Florida, previously filed as
Exhibit (2)(b) to the Registrant's Current Report on Form 8-K dated August 8,
1996, is incorporated herein by reference.

(ii) Letter Agreement relating to the sale of Timberlake Apartments, Phase I,
Altamonte Springs, Florida, previously filed as Exhibit (99)(c) to the
Registrant's Current Report on Form 8-K dated October 14, 1996, is incorporated
herein by reference.

(d)(i) Agreement of Sale and Attachments thereto relating to the sale of
Templeton Park Apartments, Colorado Springs, Colorado, previously filed as
Exhibit (2) to the Registrant's Current Report on Form 8-K dated August 26,
1996, is incorporated herein by reference.

(ii) Letter agreements relating to the sale of the Templeton Park Apartments,
Colorado Springs, Colorado, previously filed as Exhibit (99)(a) to the
Partnership's Current Report on Form 8-K dated October 14, 1996, is
incorporated herein by reference.

(iii) Letter agreement and Notice of Disapproval dated October 25, 1996,
regarding the sale of Templeton Park Apartments, Colorado Springs, Colorado
previously filed as Exhibit (10)(e)(iii) to the Registrant's Quarterly Report
on Form 10-Q for the quarter ended September 30, 1996, is incorporated herein
by reference.

(iv) First Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of Templeton Park Apartments, Colorado Springs, Colorado previously filed
as Exhibit (10)(e)(iv) to the Registrant's Quarterly Report on Form 10-Q for
the quarter ended September 30, 1996, is incorporated herein by reference.

(v)  Letter Agreements dated November 21, 1996, December 6, 1996, December 11,
1996, December 13, 1996, December 20, 1996, and January 20, 1997, relating to
the sale of the Templeton Park Apartments, Colorado Springs, Colorado,
previously filed as Exhibit (99)(i) to the Registrant's Quarterly Report on
Form 8-K dated February 21, 1997, is incorporated herein by reference.

(vi) Second Amendment to Agreement of Sale and Escrow Agreement dated January
3, 1997, relating to the sale of the Templeton Park Apartments, Colorado
Springs, Colorado, previously filed as Exhibit (99)(ii) to the Registrant's
Current Report on Form 8-K dated February 21, 1997, is incorporated herein by
reference.

(e)(i) Agreement of Sale entered into May 22, 1997 relating to the sale of
North Hill Apartments previously filed as Exhibit (2) to the Registrant's
Current Report on Form 8-K dated May 22, 1997, is incorporated herein by
reference.

(ii) First Amendment to Agreement of Sale and Escrow Agreement relating to the
<PAGE>
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(ix) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1997, is incorporated herein by reference.

(iii) Second Amendment to Agreement of Sale and Escrow Agreement relating to
the sale of the North Hill Apartments, De Kalb County, Georgia, previously
filed as Exhibit (10)(f)(x) to the Registrant's Quarterly Report on Form 10-Q
for the quarter ended June 30, 1997, is incorporated herein by reference.

(iv) Third Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(xi) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1997, is incorporated herein by reference.

(v) Fourth Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(xii) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1997, is incorporated herein by reference.

(vi) Fifth Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(xiii) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1997, is incorporated herein by reference.

(vii) Sixth Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(xiv) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended June 30, 1997, is incorporated herein by reference.

(viii) Letter Agreement dated June 30, 1997, relating to the sale of the North
Hill Apartments, De Kalb County, Georgia, previously filed as Exhibit
(10)(f)(xv) to the Registrant's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1997, is incorporated herein by reference.

(ix) Seventh Amendment to Agreement of Sale and Escrow Agreement relating to
the sale of the North Hill Apartments, De Kalb County, Georgia, previously
filed as Exhibit (10)(f)(xvi) to the Registrant's Quarterly Report on Form 10-Q
for the quarter ended June 30, 1997, is incorporated herein by reference.

(x) Eighth Amendment to Agreement of Sale and Escrow Agreement relating to the
sale of the North Hill Apartments, De Kalb County, Georgia, previously filed as
Exhibit (10)(f)(x) to the Registrant's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1997, is incorporated herein by reference.

(27) Financial Data Schedule of the Partnership for the six months ended  June
30, 1998 is attached hereto.

(b) Reports on Form 8-K: No Reports on Form 8-K were filed during the quarter
ended June 30, 1998.
<PAGE>
SIGNATURES


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


                        BALCOR REALTY INVESTORS 85-SERIES I
                        A REAL ESTATE LIMITED PARTNERSHIP


                        By:   /S/ Thomas E. Meador                           
                              --------------------------------
                              Thomas E. Meador
                              President and Chief Executive Officer (Principal
                              Executive Officer) of Balcor Partners-XVI, the 
                              General Partner


                        By:   /s/ Jayne A. Kosik                           
                              --------------------------------
                              Jayne A. Kosik
                              Senior Managing Director and Chief Financial 
                              Officer (Principal Accounting Officer) of Balcor
                              Partners-XVI, the General Partner


Date:               
      -------------------------
<PAGE>