<PAGE>
                         UNITED STATES
               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 September 30, 1997
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:  0-13227

USAA Real Estate Income Investments I Limited Partnership
(Exact name of registrant as specified in its charter)

California                         74-2325025
(State or other jurisdiction of    (I.R.S. Employer
incorporation or organization)     Identification No.)

8000 Robert F. McDermott Fwy., IH 10 West, Suite 600,
San Antonio, Texas                          78230-3884
(Address of principal executive offices)    (Zip Code)

(210) 498-7391
(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  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.

[X]  Yes  [ ]  No

                                        1

<PAGE>
PART I
Item 1.  Financial Statements
<TABLE>
USAA Real Estate Income Investments I Limited Partnership
Condensed Balance Sheets
<CAPTION>
                                                      September 30,
                                                          1997      December 31,
                                                      (Unaudited)       1996
<S>                                                 <C>             <C>  
Assets
Rental properties, net                              $   9,527,836     9,964,683
Temporary investments, at cost which
approximates market value-
    Money market fund                                   1,012,287       926,892
Cash                                                       50,037        46,204
  Cash and cash equivalents                             1,062,324       973,096

Accounts receivable, net of allowance for
  doubtful accounts of $12,000 in 1997                     59,623        72,175
Deferred charges, at amortized cost, and
  other assets                                            354,644       386,325

                                                    $  11,004,427    11,396,279


Liabilities and Partners' Equity
Accounts payable, including amounts due
  to affiliates of $30,742 and $27,907              $      54,089        83,582
Accrued expenses and other liabilities                    135,076        35,634
Security deposits                                          65,320        66,616
         Total liabilities                                254,485       185,832

Partners' equity:
  General Partner:
    Capital contribution                                    1,000         1,000
    Cumulative net income                                  91,832        89,818
    Cumulative distributions                             (191,011)     (184,391)
                                                          (98,179)      (93,573)
  Limited Partners (54,610 units):
    Capital contributions, net of offering costs       25,666,700    25,666,700
    Cumulative net income                               9,091,446     8,892,025
    Cumulative distributions                          (23,910,025)  (23,254,705)
                                                       10,848,121    11,304,020
          Total Partners' equity                       10,749,942    11,210,447

                                                    $  11,004,427    11,396,279



</TABLE>
See accompanying notes to condensed financial statements.

                                        2
<PAGE>
<TABLE>
USAA Real Estate Income Investments I Limited Partnership
Condensed Statements of Income
(Unaudited)
<CAPTION>

                                                      Three Months  Three Months
                                                         Ended         Ended
                                                      September 30, September 30,
                                                          1997          1996
<S>                                                 <C>                 <C>
Income
Rental income                                       $     447,074       424,233
Interest income                                            13,998        14,355

     Total income                                         461,072       438,588

Expenses
Direct expenses, $22,641 and $28,221 to
  affiliate (note 1)                                      181,700       147,524
Depreciation                                              146,351       138,584
General and administrative, $30,627 and
   $31,529 to affiliates (note 1)                          51,525        49,985
Management fee to affiliate (note 1)                       17,339        19,629

     Total expenses                                       396,915       355,722

Net income                                          $      64,157        82,866

Net income per limited partnership unit             $        1.16          1.50
<CAPTION>

                                                      Nine Months   Nine Months
                                                         Ended         Ended
                                                      September 30, September 30,
                                                          1997          1996
<S>                                                 <C>               <C>
Income
Rental income                                       $   1,294,973     1,229,804
Interest from mortgage loan from affiliate                     --        52,124
Interest income                                            40,395        75,645

     Total income                                       1,335,368     1,357,573

Expenses
Direct expenses, $81,562 and $85,677 to
  affiliate (note 1)                                      452,263       413,618
Depreciation                                              438,771       420,385
General and administrative, $104,673 and
   $103,519 to affiliates (note 1)                        189,531       202,249
Management fee to affiliate (note 1)                       53,368        54,788

     Total expenses                                     1,133,933     1,091,040

Net income                                          $     201,435       266,533

Net income per limited partnership unit             $        3.65          4.83
</TABLE>

See accompanying notes to condensed financial statements.

                                        3

<PAGE>
<TABLE>
USAA Real Estate Income Investments I Limited Partnership
Condensed Statements of Cash Flows
Nine months ended September 30, 1997 and 1996
(Unaudited)
<CAPTION>

                                                          1997          1996
<S>                                                 <C>              <C>
Cash flows from operating activities:
  Net income                                        $     201,435       266,533
  Adjustments to reconcile net income to net cash
    provided by operating activities:
      Depreciation                                        438,771       420,385
      Amortization                                         33,951        33,573
      Decrease in accounts receivable                      12,552           936
      Increase in deferred charges and other assets        (2,270)       (6,503)
      Increase in accounts payable, accrued expenses
        and other liabilities                              68,653       169,384

        Cash provided by operating activities             753,092       884,308

Cash flows from investing activities:
  Additions to rental properties                           (1,924)      (84,342)
  Proceeds from mortgage loan receivable                       --     5,440,000

        Cash (used in) provided by investing activities    (1,924)    5,355,658

Cash flows used in financing activities-
  Distributions to Partners                              (661,940)   (5,496,440)

Net increase in cash and cash equivalents                  89,228       743,526

Cash and cash equivalents at beginning of period          973,096       366,837

Cash and cash equivalents at end of period          $   1,062,324     1,110,363


</TABLE>

See accompanying notes to condensed financial statements.

                                        4

<PAGE>
USAA Real Estate Income Investments I Limited Partnership
Notes to Condensed Financial Statements
September 30, 1997
(Unaudited)

1.   Transactions with Affiliates

     A  summary of transactions with affiliates follows for the
     nine-month period ended September 30, 1997:

                                           Quorum
                             USAA        Real Estate
                          Real Estate     Services
                            Company      Corporation

     Reimbursement of     
       expenses (a)       $  90,427        41,550
     Management fees         53,368        40,012
     Lease commissions           --        14,246

         Total            $ 143,795        95,808


  (a)  Reimbursement  of  expenses  represents  amounts  paid  or
       accrued  as reimbursement of expenses incurred on behalf  of
       the  Partnership  at actual cost and does  not  include  any
       mark-up or items normally considered as overhead.


2.    Other

      Reference  is  made to the financial statements in  the  Annual
      Report  filed  as  part of the Form 10-K  for  the  year  ended
      December  31,  1996 with respect to significant accounting  and
      financial  reporting  policies as well as  to  other  pertinent
      information concerning the Partnership.  Information  furnished
      in  this report reflects all normal recurring adjustments which
      are,  in  the  opinion  of management,  necessary  for  a  fair
      presentation of the results for the interim periods  presented.
      Further,  the  operating results presented  for  these  interim
      periods are not necessarily indicative of the results that  may
      occur  for  the  remaining three months of 1997  or  any  other
      future period.

      The  financial information included in this interim  report  as
      of  September  30, 1997 and for the three-month and  nine-month
      periods ended September 30, 1997 and 1996 has been prepared  by
      management  without  audit  by  independent  certified   public
      accountants  who  do  not  express  an  opinion  thereon.   The
      Partnership's   annual   report  includes   audited   financial
      statements.
 
      Certain 1996 balances have been reclassified to conform to  the
      1997 presentation.

                                        5

<PAGE>
PART I

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

Liquidity and Capital Resources

At  September 30, 1997, the Partnership had cash of  $50,037  and
temporary  investments of $1,012,287.  These funds were  held  in
the working capital reserve for the payment of obligations of the
Partnership.  Accounts receivable consisted of amounts  due  from
tenants  at both of the Partnership properties.  Deferred charges
and  other  assets consisted of deferred rent that resulted  from
recognition   of   income  as  required  by  generally   accepted
accounting  principles and lease commissions.   Accounts  payable
included  amounts  due  to  affiliates for  management  fees  and
reimbursable expenses and to third parties for expenses  incurred
for  operations. Accrued expenses and other liabilities consisted
of  property tax accruals, security deposits and prepaid  revenue
from tenants.

During  the  quarter  ended September 30, 1997,  the  Partnership
distributed  $218,440  to  Limited Partners  and  $2,207  to  the
General  Partner  for a total of $220,647.  Management  evaluates
reserves  and the availability of funds for distribution  to  the
Partners  on  a  continuing basis based  on  anticipated  leasing
activity   and   cash  flows  available  from   the   Partnership
investments.    As   a   result  of  this   analysis,   quarterly
distributions  were  increased from $3.00 to  $4.00  per  limited
partnership unit in the fourth quarter of 1996.

Due  to  the change in tenancy, the name of the Systech  building
was  changed  to  10505  Sorrento Valley  Road.  The  balance  of
approximately  $22,000 of the Partnership's  commitment  for  the
final  phase of tenant improvements at this property was expended
in  January 1997. The funding of these improvements was from  the
working capital reserve of the Partnership.

Systech   Computer  Corporation  currently  leases  approximately
22,600  of  the  54,094 square feet of space  at  10505  Sorrento
Valley  Road.  The terms of Systech Computer Corporation's  lease
amendment  in  July 1996 provided the tenant with  an  option  to
terminate their lease effective March 31, 1998 or to continue  to
lease approximately 7,600 square feet through February 2000.  Due
to  changes  in  their business requirements, they have  recently
expressed a need for additional space.

Integrated  Systems, Inc. ("ISI") leases the remaining  space  in
the  building.   While  ISI is obligated by their  lease  through
February 2000 for the space they currently occupy as well as  the
13,201  square  feet that was to be vacated by  Systech  Computer
Corporation  in  March 1998, discussions are  underway  with  the
tenants regarding their space requirements. At this time,  it  is
not known what actions will transpire.

                                        6

<PAGE>
On  June 10, 1997, the Partnership signed a letter of intent with
American  Industrial Properties REIT [NYSE:  IND]  (the  "Trust")
contemplating   the   merger   of  four   real   estate   limited
partnerships,  including the Partnership, into  the  Trust.   The
four real estate limited partnerships are USAA Real Estate Income
Investments  I  Limited  Partnership,  USAA  Real  Estate  Income
Investments  II  Limited Partnership, USAA Income Properties  III
Limited   Partnership  and  USAA  Income  Properties  IV  Limited
Partnership  (collectively, the "RELPs").  Each of the  RELPs  is
affiliated  with USAA Real Estate Company, which  currently  owns
approximately 13.74% of the outstanding shares of the Trust.
        
On  July  7,  1997, the Trust signed definitive merger agreements
with each of the RELPs pursuant to which the RELPs will be merged
into   the  Trust  (the  "Merger").   According  to  the   Merger
Agreement, the Trust will issue an aggregate of 4,412,829  shares
of beneficial interest at $13.125 per share (for a total value of
$57,918,385) in exchange for the limited partnership interests in
the  RELPs.   The number of Shares and the per Share amount  have
been  restated to reflect the impact of the one for five  reverse
split  approved  by the Trust shareholders on October  15,  1997.
The  number of Shares to be issued to each RELP will be equal  to
the  net  asset value for each RELP (as agreed by the  Trust  and
each  RELP)  divided  by $13.125.  The number  of  Shares  to  be
received  by  a Limited Partner in each RELP will be computed  in
accordance with such partner's percentage interest in  the  RELP.
The general partner of each RELP has waived any right it may have
to receive Shares to which it may be entitled in exchange for its
general   partnership  interest.   The  Merger   is   a   taxable
transaction to the partners in the RELPs.  Prudential Securities,
Inc., on behalf of the Trust, and Houlihan, Lokey, Howard & Zukin
on   behalf  of  the  RELPs,  have  rendered  opinions  to  their
respective parties that the transaction is fair from a  financial
point of view.

The Merger, which has been approved by the Trust's Board of Trust
Managers  and  the  Board of Directors of  each  of  the  general
partners  of  the  RELPs, is subject to  due  diligence  by  both
parties and certain other conditions, including approval  by  the
shareholders of the Trust and the Limited Partners of each of the
RELPs.  Accordingly, there can be no assurance  that  the  merger
will  ultimately  be  consummated.   A  meeting  of  the  Limited
Partners  is  tentatively scheduled for  early  January  1998  to
consider a vote on the proposed transaction.

On  August  20,  1997,  a  purported class  action  lawsuit  (the
"Lawsuit"), which was filed in the Superior Court of the State of
Arizona,   was  served  upon  USAA  Real  Estate  Company,   USAA
Properties I, Inc. ("RELP GP I"), USAA Properties II, Inc. ("RELP
GP  II"),  USAA  Properties  III,  Inc.  ("RELP  GP  III"),  USAA
Properties IV, Inc. ("RELP GP IV", together with RELP GP I,  RELP
GP  II and RELP GP III, the "RELP GPs"), certain other affiliated
entities and the individual members of the boards of directors of
each  of  the RELP GPs.  The Trust was also named as a defendant.

                                        7

<PAGE>
The  Lawsuit  was subsequently removed to federal court  and  has
been  transferred to the Western District of Texas,  San  Antonio
Division.   The  suit  alleges among other  things,  breaches  of
fiduciary  duty in connection with the transactions  contemplated
by  merger  agreements entered into by the RELPs and  the  Trust,
dated as of June 30, 1997, whereby each RELP would be merged with
and into the Trust.

The Lawsuit seeks, among other things, to enjoin the consummation
of   the  Merger  and  damages,  including  attorneys'  fees  and
expenses. The defendants believe that the plaintiffs' claims  are
without  merit  and  intend  to  defend  vigorously  against  the
Lawsuit.

Future  liquidity is expected to result from cash generated  from
operations  of the properties, interest on temporary  investments
and ultimately through the sale of the properties.

Results of Operations

For  the  three-month and nine-month periods ended September  30,
1997  and 1996, income was generated from rental income from  the
income  producing  properties and interest earned  on  the  funds
invested   in   temporary  investments.   Interest   income   and
participation  income earned on the mortgage loan  prior  to  the
January  31, 1996 payoff of the mortgage loan receivable is  also
included in income for the nine-month period ended September  30,
1996.   Expenses incurred during the same periods were associated
with operations of the Partnership's properties and various other
costs required for administration of the Partnership.

The  decrease  in  rental properties from December  31,  1996  to
September 30, 1997 was primarily attributable to depreciation  on
the  Partnership properties.  The decrease in accounts receivable
during  the  same time period reflects the $12,000 allowance  for
doubtful  accounts  for  Volusia Point.   Amortization  of  lease
commissions  caused  the  decrease  in  deferred  charges.    The
decrease  in  accounts  payable reflected timing  in  payment  of
property  operating  expenses and  the  reissue  of  stale  dated
distribution checks to Limited Partners.  An increase in  prepaid
revenue  and accrued property taxes for Volusia Point  and  10505
Sorrento  Valley  Road  accounted for  the  increase  in  accrued
expenses and other liabilities.

Rental  income  increased  from the  three-month  and  nine-month
periods ended September 30, 1996 to the same three-month and nine-
month   periods  in  1997  primarily  due  to  the  increase   in
reimbursement  of property operating expenses at  10505  Sorrento
Valley  Road subsequent to the tenants' base year.  The  increase
in  rental income for this nine-month period was further impacted
by   approximately  $13,000  as  a  result  of  the  increase  in
reimbursement  of current and prior year operating expenses  from
tenants  at Volusia Point.  The decrease in interest income  from
the  mortgage loan for the nine-month period ended September  30,
1997  was  the  result  of the January 31,  1996  payoff  of  the

                                         8
<PAGE>
receivable. Interest income was higher for the nine-month  period
in  1996  as  a result of interest earned on the cash temporarily
held  by  the  Partnership after the payoff of the mortgage  loan
receivable and prior to distribution of those proceeds to Limited
Partners.

The  increases in direct expenses from the three-month and  nine-
month  periods  ended September 30, 1996 to the  three-month  and
nine-month periods ended September 30, 1997 reflect increases  in
utility  and janitorial charges at 10505 Sorrento Valley Road  in
conjunction  with  the  increase in physical  occupancy  at  that
property  during  the  third quarter of 1996.   The  increase  in
depreciation during the three-month and nine-month periods  ended
September 30, 1997 over the same periods ended September 30, 1996
was  due to the addition of tenant improvements at 10505 Sorrento
Valley   Road,  and  was  partially  offset  by  a  decrease   in
depreciation  at  Volusia Point as some tenant improvements  were
fully depreciated in 1996.

General and administrative expenses were higher during the  nine-
month period ended September 30, 1996 than during the same period
in 1997 due to legal fees associated with the lease restructuring
that occurred at 10505 Sorrento Valley Road during 1996.  Savings
on  audit  fees  further impacted this decrease  in  general  and
administrative  expenses  from  1996  to  1997.   The   portfolio
management  fee  is  based on cash flow from  operations  of  the
Partnership,   adjusted   for  cash  reserves,   and   fluctuated
accordingly.
                                        9
<PAGE>
PART II

Item 6.  Exhibits and Reports on Form 8-K

(a) Exhibit.

                                                     Sequentially
Exhibit                                                Numbered
  No.              Description                           Page

  4   Restated Certificate and Agreement of Limited
      Partnership dated as of October 18, 1984,
      incorporated as Exhibit A to the Partnership's
      Prospectus dated November 16, 1984, filed
      pursuant to Rule 424(b), Regis. No. 2-92845
      and incorporated herein by this reference.            __

 27   Financial Data Schedule                               12

(b)   A  Current  Report  on  Form 8-K was filed  July  21,  1997
      regarding the signed definitive merger agreements between the
      Partnership and American Industrial Properties REIT (the "Trust")
      pursuant to which the Partnership will be merged into the Trust.
    
      A  Current Report on Form 8-K was filed September 2,  1997
      regarding  a purported class action lawsuit served  upon the
      Partnership seeking to enjoin the consummation of the  Merger
      with the Trust.

                                       10

<PAGE>
                           FORM 10-Q
                           SIGNATURES

   USAA REAL ESTATE INCOME INVESTMENTS I LIMITED PARTNERSHIP


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.




USAA REAL ESTATE INCOME INVESTMENTS I
LIMITED PARTNERSHIP (Registrant)

BY:  USAA INVESTORS I, INC.,
     General Partner



November 12, 1997   BY:  /s/Edward B. Kelley
                         Edward B. Kelley
                         Chairman, President and
                         Chief Executive Officer



November 12, 1997   BY:  /s/Martha J. Barrow
                         Martha J. Barrow
                         Vice President -
                         Administration and
                         Finance/Treasurer

                                        11