T. ROWE PRICE
REALTY INCOME
FUND I

AMERICA'S SALES-COMMISSION-FREE 
REAL ESTATE LIMITED PARTNERSHIP

QUARTERLY REPORT
FOR THE PERIOD ENDED
JUNE 30, 1997

For information on your
Realty Income Fund account, call:
1-800-962-8300 toll free
410-625-6500 Baltimore area

For information on your
mutual fund account, call:
1-800-225-5132 toll free
410-625-6500 Baltimore area

T. Rowe Price Real Estate Group
100 East Pratt Street
Baltimore, Maryland 21202

Invest With Confidence(registered trademark)
T. Rowe Price

FELLOW PARTNERS:

By now you should have received materials requesting your consent to sell T.
Rowe Price Realty Income Fund I's interests in its remaining five properties
to Glenborough Realty Trust Incorporated for $27,408,000, and also to
complete the liquidation of the Fund. A majority of the Fund's outstanding
units must be voted in favor of the proposal for the transaction to proceed.
      As mentioned previously, the Fund has held the properties for the
period anticipated when the Fund was organized, and current market conditions
appear favorable for a sale. The Fund expects to benefit substantially by
selling all of the properties in bulk instead of individually. In particular,
the costs of selling each property individually-including sales commissions
and other closing-related costs-could be materially higher. Our experience
indicates that there could be more negative price adjustments as a result of
each buyer's due diligence activities. Also considered was the advantage of
limited partners receiving their sales proceeds immediately rather than
having them spread over the next several years. 
      The price offered by Glenborough should allow the Fund to liquidate its
investment for an amount that exceeds the most recent adjusted estimated
aggregate value. 
      Under the heading "THE TRANSACTION-Recommendations of the General
Partner" in the consent materials you received, we discussed in detail the
advantages and disadvantages of the Glenborough transaction. After carefully
weighing the facts and circumstances associated with this transaction against
alternative courses of action, we concluded that the bulk sale to Glenborough
and subsequent liquidation of the Fund is an outstanding opportunity to
maximize value for investors. Therefore, we recommend that you consent to the
proposed transaction by voting now and returning the consent card in the
postage-paid envelope, if you have not already done so. Your participation
is extremely important, and your response to the solicitation will save your
Fund the substantial costs associated with a follow-up mailing. If you have
not received your materials, or if you need an additional consent card,
please call one of our real estate representatives at 1-800-962-8300. 

Real Estate Investments (Dollars in Thousands)
______________________________________________________________


                                         Average       Contri-
                              Leased      Leased      bution to
                              Status      Status     Net Income
                             _________    _______      _______
                                           Nine         Nine
                  Gross                   Months       Months
Properties      Leasable                   Ended        Ended
Held for          Area       June 30,    June 30,     June 30,
Sale            (Sq. Ft.)     1997     1996  1997   1996   1997
_______         ________      _____     ___   ___    ___    ___     
Airport 
   Perimeter       121,000     81%      72%  76%  $  18  $    179

Montgomery         116,300     90       72   71     (69) 226

Springdale         144,000    100      100   98     244       276

The Business 
   Park            157,200     97       96   99     168       488

Newport 
   Center           62,400    100       93   99     125       228
                  ________   ____     ____ ____   _____  ______

                   600,900     93       87   89     486     1,397

Properties Sold          -      -        -    -     578     1,769

Fund Expenses 
   Less Interest 
   Income                -      -        -    -    (334) (436)
                  ________   ____     ____ ____   _____    ______

Total              600,900     93%     87%  89%   $ 730  $  2,730

Cash Distributions 

Pending the completion of the sale to Glenborough, the Fund has suspended
cash distributions from operations. Net proceeds from the sale of Royal
Biltmore were distributed in May, and net proceeds from the disposition of
Van Buren were distributed on July 15. Deducting the combined distributions
of $108.92 per unit from the December 1996 estimated unit value of $398
results in $289. Assuming all remaining properties are sold during the next
few months, the General Partner will determine the amount it believes
sufficient for the payment of Fund liabilities; the balance of the assets
will then be promptly distributed. Based on the negotiated sales prices and
other information currently available, we expect total future distributions
to exceed the figure mentioned above.

Results of Operations

For the nine months ended June 30, 1997, the Fund's net income was
$2,730,000, an increase of $2,000,000 over the same period last year. Of the
increase, $1,210,000 was attributable to the gain for financial statement
purposes on Royal Biltmore, for which the Fund received proceeds of
$6,286,000. The Fund also received proceeds of $3,996,000 from the Van Buren
sale. The remaining increase in net income of $790,000 was due primarily to
the $925,000 decline in depreciation expense, which was a result of stopping
the depreciation of the Fund's remaining properties now Held for Sale. The
absence of net income from Spring Creek, which was sold last year, partly
offset the reduced expenses.
   Net income for the third quarter increased $1,947,000 over the third
quarter of 1996. Of this amount, $1,210,000 came from the gain on the Royal
Biltmore sale, while $487,000 resulted from ceased depreciation.
   At the property level, the average leased status of Fund properties
increased to 89% from 87% in the comparable 1996 nine-month period. During
the third quarter, a lease was signed at Montgomery for 16,879 square feet,
boosting occupancy 15% at the property.

Outlook 

As the real estate market has been improving in recent years, we have taken
advantage of the opportunity to capture higher prices for portfolio
properties. We believe it is in the best interests of investors to liquidate
the Fund's portfolio while real estate values continue to strengthen, since
the Fund is nearing the end of its planned lifespan. In the normal course of
events, as the real estate cycle runs its course, rising property prices
usually lead to an increased supply of new properties, which could lead to
softer prices sometime later.
   No one can forecast exactly when the real estate market will peak, but we
believe it is likely that there will be less capital available to real estate
investors in the future and that speculative construction may commence in
several markets in which the Fund owns properties. Each of these factors, if
they occur, could have a negative impact on the value of our properties.
   Once again we urge you to read the consent solicitation materials and
return the card as quickly as possible so that we can proceed with the
orderly liquidation of your investment.
   Thank you for your cooperation.

   Sincerely,

   James S. Riepe
   Chairman

August 7, 1997

CONDENSED BALANCE SHEETS
Unaudited
(In thousands)

                                            June 30,     September 30,
                                              1997             1996
                                           ___________     ____________

Assets

Real Estate Property 
   Investments
      Land. . . . . . . . . . . . . . .                  $      6,759
      Buildings and 
         Improvements . . . . . . . . .                        29,588
                                                             ________

                                                               36,347

   Less: Accumulated 
      Depreciation and 
      Amortization. . . . . . . . . . .                        (9,519)
                                                             ________

                                                               26,828
   Held for Sale. . . . . . . . . . . .   $     26,872          8,965
                                              ________       ________
      
                                                26,872         35,793

Cash and Cash Equivalents . . . . . . .          5,773          2,290

Accounts Receivable (less 
   allowances of $22 
   and $175). . . . . . . . . . . . . .             57            154
Other Assets. . . . . . . . . . . . . .             78            492
                                              ________       ________

                                          $     32,780   $     38,729
                                              ________       ________
                                              ________       ________

Liabilities and Partners' Capital

Security Deposits and 
   Prepaid Rents. . . . . . . . . . . .   $        411   $        418
Accrued Real Estate Taxes . . . . . . .            119            231
Accounts Payable and Other 
   Accrued Expenses . . . . . . . . . .            170            266
                                              ________       ________

Total Liabilities . . . . . . . . . . .            700            915
Partners' Capital . . . . . . . . . . .         32,080         37,814
                                              ________       ________
   
                                          $     32,780   $     38,729
                                              ________       ________
                                              ________       ________

See the accompanying notes to condensed financial statements. 

CONDENSED STATEMENTS OF OPERATIONS
Unaudited
(In thousands except per-unit amounts)

                                    Three Months          Nine Months
                                        Ended                Ended
                                      June 30,             June 30,
                                 1997      1996       1997       1996
                                 ____      ____       ____       ____
                                              
Revenues

Rental Income . . . . . .    $   1,402  $  1,495  $   4,369 $   4,517
Interest Income . . . . .           35        29         76        74
                              ________  ________   ________  ________

                                 1,437     1,524      4,445     4,591
                              ________  ________   ________  ________
Expenses
Property Operating 
     Expenses . . . . . .          366       465      1,195     1,322
Real Estate 
     Taxes. . . . . . . .          130       162        397       489
Depreciation and 
     Amortization . . . .            -       487        782     1,707
Decline (Recovery) 
     of Property 
     Values . . . . . . .           39       237         39      (66)
Partnership Management 
     Expenses . . . . . .          140       148        512       409
                              ________  ________   ________  ________

                                   675     1,499      2,925     3,861
                              ________  ________   ________  ________

Income from Operations 
     before Gain on 
     Real Estate 
     Sold . . . . . . . .          762        25      1,520       730
Gain on Real 
     Estate Sold. . . . .        1,210         -      1,210         -
                              ________  ________   ________ ________

Net Income. . . . . . . .    $   1,972  $     25  $   2,730 $     730
                              ________  ________   ________ ________
                              ________  ________   ________ ________

Activity per Limited 
     Partnership Unit
Net Income  . . . . . . .    $   19.58  $   0.25  $   27.11 $    7.25
                              ________  ________   ________  ________
                              ________  ________   ________  ________

Cash Distributions Declared
     from Sale 
        Proceeds. . . . .    $  108.92            $  108.92 $   17.79
     from 
        Operations. . . .            -  $   4.75       1.00     14.25
                              ________  ________   ________  ________

Total Distributions 
     Declared . . . . . .    $  108.92  $   4.75  $  109.92 $   32.04
                              ________  ________   ________  ________
                              ________  ________   ________  ________

Units 
     Outstanding. . . . .       90,622    90,622     90,622    90,622
                              ________  ________   ________  ________
                              ________  ________   ________  ________

See the accompanying notes to condensed financial statements. 

CONDENSED STATEMENT OF PARTNERS' CAPITAL
Unaudited
(In thousands)

     
                                       General     Limited
                                       Partner    Partners      Total
                                      ________    ________    ________

Balance, September 30, 
     1996 . . . . . . . . . . . . .    $  (4,342)$   42,156 $  37,814
Net Income. . . . . . . . . . . . .          273      2,457     2,730
Cash Distributions. . . . . . . . .         (386)    (8,078)   (8,464)
                                         _______    _______   _______

Balance, June 30, 
     1997 . . . . . . . . . . . . .    $  (4,455)$   36,535 $  32,080
                                         _______    _______   _______
                                         _______    _______   _______

See the accompanying notes to condensed financial statements.

CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)

                                                    Nine Months Ended
                                                       June 30,
                                                 1997          1996
                                               _________      _________

Cash Flows from Operating 
     Activities
Net Income. . . . . . . . . . . . . . . .    $     2,730    $     730
Adjustments to Reconcile Net 
     Income to Net Cash
  Provided by Operating Activities
     Depreciation and 
        Amortization. . . . . . . . . . .            782        1,707
     Decline (Recovery) of 
        Property Values . . . . . . . . .             39          (66)
     Gain on Real Estate Sold . . . . . .         (1,210)           -
     Decrease in Accounts 
        Receivable, Net of 
           Allowances . . . . . . . . . .             64           28
     Decrease in Other Assets . . . . . .            145           76
     Decrease in Security 
        Deposits and 
           Prepaid Rents. . . . . . . . .             (7)         (50)
     Decrease in Accrued Real 
        Estate Taxes. . . . . . . . . . .           (112)          (6)
     Decrease in Accounts Payable 
        and Other Accrued 
           Expenses . . . . . . . . . . .            (96)         (48)
                                                ________    ________
Net Cash Provided by Operating 
     Activities . . . . . . . . . . . . .          2,335        2,371
                                                ________    ________

Cash Flows from Investing Activities
Proceeds from Property 
     Dispositions . . . . . . . . . . . .         10,282        1,679
Investments in Real Estate. . . . . . . .           (670)        (455)
                                                ________    ________
Net Cash Provided by Investing 
     Activities . . . . . . . . . . . . .          9,612        1,224
                                                ________     ________

Cash Flows Used in Financing 
     Activities
Cash Distributions. . . . . . . . . . . .         (8,464)      (4,391)
                                                ________    ________

Cash and Cash Equivalents
Net Increase (Decrease) during 
     Period . . . . . . . . . . . . . . .          3,483         (796)
At Beginning of Year. . . . . . . . . . .          2,290        2,832
                                                ________     ________

At End of Period. . . . . . . . . . . . .    $     5,773    $   2,036
                                                ________     ________
                                                ________     ________

See the accompanying notes to condensed financial statements. 

NOTES TO CONDENSED FINANCIAL STATEMENTS
Unaudited

The unaudited interim condensed financial statements reflect
all adjustments which are, in the opinion of management,
necessary for a fair statement of the results for the interim
periods presented. All such adjustments are of a normal,
recurring nature.
     The unaudited interim financial information contained in
the accompanying condensed financial statements should be read
in conjunction with the financial statements contained in the
fiscal 1996 Annual Report to Partners.

NOTE 1 - TRANSACTIONS WITH RELATED PARTIES AND OTHER

As compensation for services rendered in managing the affairs
of the Partnership, the General Partner receives 10% of cash
available for distribution from operations and a portion of
the proceeds from property dispositions. The General Partner's
share of cash available for distribution from operations
totaled $10,000 and from property dispositions totaled
$411,000 for the first nine months of fiscal 1997.
     In accordance with the partnership agreement, certain
operating expenses are reimbursable to the General Partner.
The General Partner's reimbursement of such expenses totaled
$148,000 for communications and administrative services
performed on behalf of the Partnership during the first nine
months of fiscal 1997.
     An affiliate of the General Partner earned a normal and
customary fee of $2,000 from the money market mutual funds in
which the Partnership made its interim cash investments during
the first nine months of fiscal 1997.
     LaSalle Advisors Limited Partnership ("LaSalle") is the
Partnership's advisor and is compensated for its advisory
services directly by the General Partner. LaSalle is
reimbursed by the Partnership for certain operating expenses
pursuant to its contract with the Partnership to provide real
estate advisory, accounting and other related services to the
Partnership. LaSalle's reimbursement for such expenses during
the first nine months of fiscal 1997 totaled $113,000.
     An affiliate of LaSalle earned $190,000 in the first nine
months of fiscal 1997 for property management fees and leasing
commissions on tenant renewal and extensions for several of
the Partnership's properties.
     The partnership agreement includes provisions limiting the
maximum contribution the General Partner can be required to
fund upon the dissolution and termination of the Partnership
if, at that time, the General Partner's capital account has a
negative balance. The maximum contribution is approximately
$913,000. If after making such a contribution, the General
Partner's capital account still has a negative balance, a
reallocation of income equal to the remaining negative balance
will be made to the General Partner from the Limited Partners.

NOTE 2 - PROPERTY DISPOSITIONS

On April 30, 1997, the Partnership sold Royal Biltmore for net
proceeds of $6,286,000. The net book value of the property at
the date of sale was $5,076,000 after accumulated depreciation
expense and previously recorded permanent impairments.
Accordingly, the Partnership recognized a $1,210,000 gain on
the sale of this property in the third quarter of fiscal 1997.
     On June 26, 1997, the Partnership sold Van Buren for net
proceeds of $3,996,000. The net book value of the property at
the date of sale was also $3,996,000 after accumulated
depreciation expense and previously recorded property
valuation allowances. Therefore, no gain or loss was
recognized on the property sale. 

NOTE 3 - PROPERTIES HELD FOR SALE

On April, 11, 1997, the Partnership entered into a contract
with a buyer for the sale of all of its real estate property
investments at a price of $27,408,000 before selling expenses.
The transaction is subject to the approval of the Limited
Partners. If the transaction closes, the Partnership will have
sold all of its real estate properties and will begin
liquidation.

NOTE 4 - SUBSEQUENT EVENT

On July 15, 1997, the Partnership distributed the sales
proceeds from Van Buren-96% to the Limited Partners of record
at June 30, 1997 ($3,836,000) and 4% to the General Partner
($160,000).