<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 June 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

<PAGE>
PART I
Item 1.  Financial Statements
<TABLE>
USAA Real Estate Income Investments I Limited Partnership
Condensed Balance Sheets
<CAPTION>
                                                     June 30,
                                                       1997      December 31,
                                                   (Unaudited)       1996
<S>                                              <C>             <C>                                                        
Assets
Rental properties, net                           $   9,676,309     9,964,683
Temporary investments, at cost which
approximates market value-
    Money market fund                                  968,288       926,892
Cash                                                    58,930        46,204
  Cash and cash equivalents                          1,027,218       973,096

Accounts receivable                                     34,695        72,175
Deferred charges, at amortized cost, and other
  assets                                               369,918       386,325

                                                 $  11,108,140    11,396,279


Liabilities and Partners' Equity
Accounts payable, including amounts due to
  affiliates of $29,605 and $27,907              $      46,346        83,582
Accrued expenses and other liabilities                  88,746        35,634
Security deposits                                       66,616        66,616
         Total liabilities                             201,708       185,832

Partners' equity:
  General Partner:
    Capital contribution                                 1,000         1,000
    Cumulative net income                               91,191        89,818
    Cumulative distributions                          (188,804)     (184,391)
                                                       (96,613)      (93,573)
  Limited Partners (54,610 units):
    Capital contributions, net of offering costs    25,666,700    25,666,700
    Cumulative net income                            9,027,930     8,892,025
    Cumulative distributions                       (23,691,585)  (23,254,705)
                                                    11,003,045    11,304,020
          Total Partners' equity                    10,906,432    11,210,447

                                                 $  11,108,140    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
                                                     June 30,      June 30,
                                                       1997          1996
<S>                                              <C>                 <C>
Income
Rental income                                    $     376,922       413,490
Interest income                                         13,455        13,244

     Total income                                      390,377       426,734

Expenses
Direct expenses, $25,138 and $26,370 to
  affiliate (note 1)                                   131,686       135,782
Depreciation                                           146,177       140,437
General and administrative, $31,893 and
   $35,589 to affiliates (note 1)                       61,140        66,117
Management fee to affiliate (note 1)                    15,906        13,371

     Total expenses                                    354,909       355,707

Net income                                       $      35,468        71,027

Net income per limited partnership unit          $        0.64          1.29


<CAPTION>
                                                    Six Months    Six Months
                                                      Ended         Ended
                                                     June 30,      June 30,
                                                       1997          1996
<S>                                              <C>                 <C>
Income
Rental income                                    $     847,899       805,571
Interest from mortgage loan from affiliate                  --        52,124
Interest income                                         26,397        61,290

     Total income                                      874,296       918,985

Expenses
Direct expenses, $58,921 and $57,456 to
  affiliate (note 1)                                   270,563       266,094
Depreciation                                           292,420       281,801
General and administrative, $74,046 and
   $71,990 to affiliates (note 1)                      138,006       152,264
Management fee to affiliate (note 1)                    36,029        35,159

     Total expenses                                    737,018       735,318

Net income                                       $     137,278       183,667

Net income per limited partnership unit          $        2.49          3.33
</TABLE>

See accompanying notes to condensed financial statements.

                                             3
<PAGE>
<TABLE>
USAA Real Estate Income Investments I Limited Partnership
Condensed Statements of Cash Flows
Six months ended June 30, 1997 and 1996
(Unaudited)
<CAPTION>

                                                       1997          1996
<S>                                                <C>           <C>       
Cash flows from operating activities:
  Net income
  Adjustments to reconcile net income to net cash  $   137,278       183,667
    provided by operating activities:
      Depreciation                                     292,420       281,801
      Amortization                                      22,723        22,209
      Decrease in accounts receivable                   37,480        21,249
      Increase in deferred charges and other assets     (6,316)      (24,302)
      Increase in accounts payable, accrued expenses
        and other liabilities                           15,876        89,990

        Cash provided by operating activities          499,461       574,614

Cash flows from investing activities:
  Additions to rental properties                        (4,046)       (9,031)
  Proceeds from mortgage loan receivable                    --     5,440,000

        Cash provided by (used in) investing activities (4,046)    5,430,969

Cash flows used in financing activities-
  Distributions to Partners                           (441,293)   (5,330,955)

Net increase in cash and cash equivalents               54,122       674,628

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

Cash and cash equivalents at end of period         $ 1,027,218     1,041,465

</TABLE>

See accompanying notes to condensed financial statements.

                                             4  

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

1.   Transactions with Affiliates

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

                                        Quorum
                          USAA       Real Estate
                       Real Estate     Services
                         Company     Corporation
Reimbursement 
    of expenses (a)  $     63,921        31,907
Management fees            36,029        27,014
Lease commissions              --        10,125
    Total            $     99,950        69,046

  (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 six months of 1997 or any other future
  period.

  The  financial information included in this interim  report  as
  of  June 30, 1997 and for the three-month and six-month periods
  ended  June  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  June  30,  1997,  the Partnership had  cash  of  $58,930  and
temporary investments of $968,288.  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  June  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.

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 31.8% of the outstanding shares of the Trust.
                                   6
<PAGE>
On  July  7,  1997, the Trust signed definitive merger agreements
with  the  RELPs pursuant to which the RELPs will be merged  into
the Trust (the "Merger").   The Trust will issue an aggregate  of
22,064,147 shares of beneficial interest at $2.625 per share (for
a  total  value  of  $57,918,385) in  exchange  for  the  limited
partnership interests in the RELPs.  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  $2.625.
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, 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  definitive
merger  agreements  will  be reached or  that  the  mergers  will
ultimately  be consummated.  The Merger is a taxable  transaction
to  the  partners  in  the  RELPs and  will  be  subject  to  the
completion of a joint proxy statement/prospectus filed on Form S-
4  with the Securities and Exchange Commission.  No date has been
scheduled  for the shareholder meeting for the Trust  or  limited
partner  meetings for each of the RELPs to vote on  the  proposed
transaction.  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.

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 six-month periods ended June 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  six-month  period  ended June 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.
                                  7
<PAGE>
The  decrease in rental properties from December 31, 1996 to June
30,  1997  was  primarily  attributable to  depreciation  on  the
Partnership  properties.   The decrease  in  accounts  receivable
during the same time period reflects the collection of rents  and
reimbursable  operating  expenses from tenants  at  both  of  the
Partnership properties.  Amortization of lease commissions caused
the  decrease  in  deferred charges.  The  decrease  in  accounts
payable  reflected  timing in payment of tenant  improvements  at
10505  Sorrento  Valley  Road  and the  reissue  of  stale  dated
distribution checks to Limited Partners.  Accrued property  taxes
for  Volusia Point accounted for the increase in accrued expenses
and other liabilities.

Rental  income  decreased at both of the  Partnership  properties
from the three-month period ended June 30, 1996 to the same three-
month  period  in  1997.  Approximately $33,000  of  the  $36,000
decrease  was attributable to an adjustment for prior  month  and
prior year operating expense reimbursements from tenants at 10505
Sorrento Valley Road. Conversely, rental income increased at both
of  the  Partnership properties from the six-month  period  ended
June 30, 1996 to the same six-month period in 1997.  The increase
at  Volusia Point of approximately $22,000 was due to an increase
in  percentage  rent  and operating expense  reimbursements  from
tenants.   The  increase  at  10505  Sorrento  Valley   Road   of
approximately  $20,000  resulted from the  increase  in  physical
occupancy  and utility reimbursements from tenants. The  decrease
in  interest  income  from the mortgage loan  for  the  six-month
period ended June 30, 1997 was the result of the January 31, 1996
payoff of the receivable. Interest income was higher for the six-
month period in 1996 as a result of the increase in cash and cash
equivalents temporarily held by the Partnership after the  payoff
of  the  mortgage  loan receivable and prior to  distribution  of
those proceeds to Limited Partners.

The increase in depreciation during the three-month and six-month
periods ended June 30, 1997 over the same periods ended June  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 three-
month  and six-month periods ended June 30, 1996 than during  the
same  periods in 1997.  Legal fees were higher during the  three-
month period in 1996 due to the lease restructuring that occurred
at  10505  Sorrento Valley Road.  Savings on  audit  fees  and  a
decrease in legal fees accounted for the decrease in general  and
administrative expenses from the six-month period ended June  30,
1996  to the six-month period ended June 30, 1997.  The portfolio
management  fee  is  based on cash flow from  operations  of  the
Partnership,   adjusted   for  cash  reserves,   and   fluctuated
accordingly.
                                  8
<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                               11

(b)   A  Current  Report  on  Form 8-K was filed  June  13,  1997
      regarding the agreement signed between the Partnership  and
      American Industrial Properties REIT (the "Trust") comtemplating a
      merger of the Partnership into the Trust.

                                   9
<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



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



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

                                     10