<PAGE>   1
                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, 1999

                                       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: 0-11779


                         S/M REAL ESTATE FUND VII, LTD.
                         ------------------------------
              Exact Name of Registrant as Specified in its Charter


<TABLE>
<CAPTION>

                         Texas                                                     75-1845682
                         -----                                                     ----------
<S>                                                                    <C>
(State or other jurisdiction of incorporation of organization)        (I.R.S. Employer Identification No.)
</TABLE>

<TABLE>
<CAPTION>

     5520 LBJ Freeway, Suite 500, Dallas, Texas                                       75240
     ------------------------------------------                                       -----
<S>                                                                                 <C>
      (Address of principal executive offices)                                      (Zip code)
</TABLE>

                                 (972) 404-7100
                                 --------------
              (Registrant's telephone number, including area code)



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>   2



S/M REAL ESTATE FUND VII, LTD.

<TABLE>
<CAPTION>

-------------------------------------------------------------------------------
BALANCE SHEETS                                 AT SEPTEMBER 30,  AT DECEMBER 31,
                                                     1999              1998
                                                 (UNAUDITED)
--------------------------------------------------------------------------------
<S>                                                 <C>               <C>
ASSETS
Real estate, at cost:
   Land                                          $   962,216       $   962,216
   Building and improvements                       7,812,404         7,707,214
                                                 -----------       -----------
                                                   8,774,620         8,669,430
   Less accumulated depreciation                  (5,845,985)       (5,587,802)
                                                 -----------       -----------
                                                   2,928,635         3,081,628

Cash and cash equivalents                            193,025           274,735
Cash held in escrow                                  150,777            35,987
Restricted cash - replacement reserve                 35,583           114,375
Accounts receivable                                   23,668             6,311
Other assets                                          72,629            72,108
                                                 -----------       -----------
     TOTAL ASSETS                                $ 3,404,317       $ 3,585,144
                                                 ===========       ===========
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
   First mortgage note payable                   $ 6,357,004       $ 6,400,000
   Accounts payable:
     Trade                                            13,419            13,374
     Affiliates                                       40,665            60,070
   Accrued expenses and other liabilities            164,344            52,796
                                                 -----------       -----------
     Total Liabilities                             6,575,432         6,526,240
                                                 -----------       -----------
Partners' Deficit:
   General Partners                                 (118,323)         (116,023)
   Limited Partners (11,080 units outstanding)    (3,052,792)       (2,825,073)
                                                 -----------       -----------
     Total Partners' Deficit                      (3,171,115)       (2,941,096)
                                                 -----------       -----------
     TOTAL LIABILITIES AND PARTNERS' DEFICIT     $ 3,404,317       $ 3,585,144
                                                 ===========       ===========
</TABLE>





<TABLE>
<CAPTION>

-------------------------------------------------------------------------------
STATEMENT OF PARTNERS' DEFICIT (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
                                 GENERAL         LIMITED
                                 PARTNERS        PARTNERS         TOTAL
-------------------------------------------------------------------------------
<S>                             <C>           <C>             <C>
BALANCE AT DECEMBER 31, 1998    $  (116,023)   $(2,825,073)   $(2,941,096)
Net loss                             (2,300)      (227,719)      (230,019)
                                -----------    -----------    -----------
BALANCE AT SEPTEMBER 30, 1999   $  (118,323)   $(3,052,792)   $(3,171,115)
                                ===========    ===========    ===========
</TABLE>

                                                                               2



SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.
<PAGE>   3

S/M REAL ESTATE FUND VII, LTD.
<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (UNAUDITED)

                             THREE MONTHS ENDED SEPTEMBER 30,   NINE MONTHS ENDED SEPTEMBER 30,
                                    1999             1998            1999            1998
-----------------------------------------------------------------------------------------------
<S>                             <C>            <C>               <C>              <C>
INCOME
Rental                          $   348,700    $   339,265       $ 1,006,274      $ 1,003,588
Interest and other                    2,149          2,320             6,985            7,580
                                -----------    -----------       -----------      -----------
     Total Income                   350,849        341,585         1,013,259        1,011,168
                                -----------    -----------       -----------      -----------
EXPENSES
Property operating                  150,587        144,267           525,367          450,637
Interest                            116,490        152,835           346,427          459,717
Depreciation and amortization       106,258         97,975           307,038          289,813
General and administrative           25,512         12,471            64,446           80,597
                                -----------    -----------       -----------      -----------
     Total Expenses                 398,847        407,548         1,243,278        1,280,764
                                -----------    -----------       -----------      -----------
NET LOSS                        $   (47,998)   $   (65,963)      $  (230,019)     $  (269,596)
                                ===========    ===========       ===========      ===========
NET LOSS ALLOCATED:
To the General Partners         $      (480)   $      (660)      $    (2,300)     $    (2,696)
To the Limited Partners             (47,518)       (65,303)         (227,719)        (266,900)
                                -----------    -----------       -----------      -----------
                                $   (47,998)   $   (65,963)      $  (230,019)     $  (269,596)
                                ===========    ===========       ===========      ===========
PER LIMITED PARTNERSHIP UNIT
(11,080 OUTSTANDING)            $     (4.29)   $     (5.89)      $    (20.55)     $    (24.09)
                                ===========    ===========       ===========      ===========
</TABLE>


SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.


                                                                               3

<PAGE>   4
S/M REAL ESTATE FUND VII, LTD.

<TABLE>
<CAPTION>

-----------------------------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30,                                          1999         1998
-----------------------------------------------------------------------------------------------------
<S>                                                                           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                       $(230,019)  $(269,596)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
   Depreciation and amortization                                                 307,038     289,813
   Loss on retirement of asset                                                    14,410          --
   Increase (decrease) in cash arising from changes in operating assets and
   liabilities:
     Cash held in escrow                                                        (114,790)      6,842
     Accounts receivable                                                         (17,357)     (1,410)
     Other assets                                                                 (5,106)    (20,864)
     Accounts payable                                                            (19,360)      2,455
     Accrued expenses and other liabilities                                      111,548     (36,940)
                                                                               ---------   ---------
Net cash provided by (used in) operating activities                               46,364     (29,700)
                                                                               ---------   ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in restricted cash - replacement reserve                                 78,792      11,199
Additions to real estate                                                        (163,870)    (35,532)
                                                                               ---------   ---------
Net cash used in investing activities                                            (85,078)    (24,333)
                                                                               ---------   ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of principal on first mortgage note payable                             (42,996)    (48,786)
Amortization of discount on second mortgage note payable                              --        (344)
                                                                               ---------   ---------
Net cash used in financing activities                                            (42,996)    (49,130)
                                                                               ---------   ---------
Net decrease in cash and cash equivalents                                        (81,710)   (103,163)
Cash and cash equivalents, beginning of period                                   274,735     209,924
                                                                               ---------   ---------
CASH AND CASH EQUIVALENTS, END OF PERIOD                                       $ 193,025   $ 106,761
                                                                               =========   =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION -
Cash paid during the period for interest                                       $ 346,427   $ 459,717
                                                                               =========   =========
</TABLE>

                                                                               4




SEE ACCOMPANYING NOTES TO THE FINANCIAL STATEMENTS.

<PAGE>   5

S/M REAL ESTATE FUND VII, LTD.

NOTES TO THE FINANCIAL STATEMENTS

The quarterly unaudited financial statements for S/M Real Estate Fund VII, Ltd.
(the "Partnership") include all normal and recurring adjustments which are, in
the opinion of management, necessary to present a fair statement of financial
position as of September 30, 1999 and the results of operations for the three
and nine months ended September 30, 1999 and 1998, cash flows for the nine
months ended September 30, 1999 and 1998, and the statement of partners' deficit
for the nine months ended September 30, 1999. Results of operations for the
period are not necessarily indicative of the results to be expected for the full
year.

No significant events have occurred subsequent to fiscal year 1998, and no
material contingencies exist which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).

The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of income and expenses during the reporting period. Actual
results could differ from those estimates.

During the nine months ended September 30, 1999 and 1998, the General Partners
or their affiliates were reimbursed for Partnership administrative and operating
expenses, excluding property management fees, in the amounts of $7,438 and
$3,874, respectively. Property management fees earned by an affiliate of the
General Partners were $40,465 and $40,441 for the nine months ended September
30, 1999 and 1998, respectively.

The financial information included in this interim report as of September 30,
1999 and for the three and nine months ended September 30, 1999 and 1998 has
been prepared by management without audit by independent public accountants. The
Partnership's 1998 annual report contains audited financial statements including
the notes to the financial statements and should be read in conjunction with the
financial information contained in this interim report.

                                                                               5

<PAGE>   6



S/M REAL ESTATE FUND VII, LTD.

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

Liquidity and Capital Resources

In order to improve the financial condition of the Partnership and provide funds
for exterior improvements to the Partnership's sole portfolio property, Fifth
Avenue Apartments, located in San Antonio, Texas, on December 3, 1998, the
Partnership refinanced the mortgage note payable on Fifth Avenue (the
"Refinancing"). In accordance with the terms of the Loan Agreement between the
Partnership and General Electric Capital Corporation (the "Loan Agreement"), the
principal balance of the original mortgage totaling $6,400,000 is due January 1,
2009 and bears interest at a rate of 7.16% (the "New First Mortgage"). The
previous first and second mortgage (the "Previous Mortgage") had a combined
balance of $6,259,810 at an average interest rate of 8.97%. In spite of having a
slightly higher principal loan amount, the Partnership reduced the total debt
service payments in 1999 from $689,572 to $519,231, a reduction of $170,341.

Under the terms of the New First Mortgage with General Electric Capital
Corporation (the "Lender"), the Partnership is required to make fixed monthly
payments of principal and interest in the amount of $43,269 commencing on
February 1, 1999 until maturity on January 1, 2009, at which time the entire
outstanding principal balance and accrued interest is due. Under the terms of
the Loan Agreement, the Partnership was required to deposit certain amounts into
escrow for the completion of certain required repairs to Fifth Avenue.

Cash and cash equivalents totaled $193,025 at September 30, 1999, compared to
$274,735 at December 31, 1998. The $81,710 decrease is primarily attributable to
cash used for additions to real estate offset in part by the release of funds
from the replacement reserve in accordance with the terms of the Loan Agreement.

Cash held in escrow increased to $150,777 at September 30, 1999 from $35,987 at
December 31, 1998. The $114,790 increase is primarily attributable to
contributions to the insurance and real estate tax escrow, as required in the
Loan Agreement.

Restricted cash - replacement reserve decreased to $35,583 at September 30,
1999, from $114,375 at December 31, 1998. The $78,792 decrease is primarily
attributable to the release of funds for the completion of certain required
repairs offset in part by additional contributions to the replacement reserve in
accordance with the terms of the Loan Agreement.

Accounts receivable totaled $23,668 at September 30, 1999, compared to $6,311 at
December 31, 1998. The increase is primarily attributable to an insurance
premium refund due and the timing of tenant rental receipts. Accounts payable
totaled $54,084 at September 30, 1999, compared to $73,444 at December 31, 1998.
The decrease is primarily attributable to the timing of payments associated with
fixed asset expenditures, repairs and maintenance, and administrative expenses.

Accrued expenses and other liabilities totaled $164,344 at September 30, 1999,
compared to $52,796 at December 31, 1998. The change is primarily attributable
to the timing of payments for real estate taxes, audit and tax fees, and
administrative costs.

As a result of the recent Refinancing and anticipated reductions in general and
administrative expenses, the General Partners currently expect net cash from
operations to be sufficient to pay all obligations for 1999, including debt
service. In the event of any cash flow deficits, it is expected that such
deficits will be funded by the Partnership's existing cash balances. However,
there can be no assurance that the Partnership will have sufficient cash to fund
such deficits.

Results of Operations

Operations resulted in net losses of $47,998 and $230,019 for the three and
nine-month periods ended September 30, 1999, respectively, compared with net
losses of $65,963 and $269,596 for the three and nine-month periods ended
September 30, 1998, respectively. The decreases for the three and nine-months
ended September 30, 1999 from the corresponding periods in 1998 are primarily
attributable to decreases in interest expense associated with the Refinancing in
December 1998, offset in part by increases in property operating expenses.



                                                                              6

<PAGE>   7
S/M REAL ESTATE FUND VII, LTD.

Rental income totaled $348,700 and $1,006,274 for the three and nine-month
periods ended September 30, 1999, respectively, compared to $339,265 and
$1,003,588, respectively, for the corresponding periods in 1998. Occupancy at
Fifth Avenue averaged approximately 96% for the three-month periods ended
September 30, 1999 and 1998, respectively, and 95% for the nine-month periods
ended September 30, 1999 and 1998, respectively. The average rental income per
occupied square foot at Fifth Avenue was $8.60 and $8.40 for the three and nine
months ended September 30, 1999, respectively, compared to $8.29 and $8.35,
respectively, for the corresponding periods in 1998. The increase in the average
rental income per occupied square foot in 1999 is primarily attributable to an
increase in rental rates offset in part by an increase in rental concessions.

Total expenses for the three and nine-month periods ended September 30, 1999
were $398,847 and $1,243,278, respectively, compared to $407,548 and $1,280,764,
respectively, for the three and nine-month periods ended September 30, 1998. The
decreases for the three and nine-month periods in 1999 primarily are due to
lower interest and general and administrative expenses, partially offset by
higher property operating expenses.

Property operating expenses consisted primarily of on-site personnel expenses,
utility costs, repair and maintenance costs, property management fees,
advertising costs, insurance and real estate taxes. Property operating expenses
for the three and nine-month periods ended September 30, 1999 were $150,587 and
$525,367, respectively, compared to $144,267 and $450,637, respectively, for the
three and nine-month periods ended September 30, 1998. The increases for the
1999 periods are attributable to higher repair and maintenance costs primarily
for apartment preparation.

Interest expense totaled $116,490 and $346,427 for the three and nine-month
periods ended September 30, 1999, respectively, compared to $152,835 and
$459,717, respectively, for the corresponding periods in 1998. The decreases are
primarily attributable to the Refinancing.

General and administrative expenses for the three and nine-month periods ended
September 30, 1999 were $25,512 and $64,446, respectively, compared to $12,471
and $80,597, respectively, for the three and nine-month periods ended September
30, 1998. The decrease for the nine-month period in 1999 is primarily related to
lower accounting and administrative expenses, partially offset by higher legal
fees.

Year 2000 Issues

The Partnership recognizes that the arrival of the Year 2000 poses a unique
challenge to the ability of an information technology system and non-information
technology systems to recognize the date change from December 31, 1999 to
January 1, 2000. Through September 30, 1999, the Partnership has assessed and
made certain changes to provide for continued functionality of its systems and
has evaluated the readiness of the Partnership's external entities, such as
vendors, customers, payment systems and others. Due to the nature and extent of
the Partnership's operations that are potentially affected by Year 2000 issues,
the Partnership does not believe that Year 2000 issues will have a material
adverse effect on the business operation or the financial performance of the
Partnership. There can be no assurance, however, that Year 2000 issues will not
adversely affect the Partnership or its business. The Partnership believes that
the cost to make appropriate changes to its internal and external systems will
not be significant and that such costs will be funded completely through
operations.

General

Words or phrases when used in this Form 10-Q or other filings with the
Securities and Exchange Commission, such as "does not believe" and "believes",
or similar expressions are intended to identify "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.

PART I, ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Partnership's primary market risk exposure relates to changes in interest
rates related to its long-term debt. To limit the impact of interest rate
changes, the Partnership has entered into fixed rate debt of 7.16% that expires
in 2009. As a result, the Partnership's only interest rate risk is the
opportunity loss should interest rates decline. As the debt was refinanced in
December 1998, the Partnership believes the fair value approximates the carrying
amount as the rate of the debt represents borrowing rates currently available to
the Partnership for such loans with similar terms and maturities. Therefore, the
Partnership believes it is relatively unaffected by interest rate changes or
other market risks.


                                                                               7
<PAGE>   8


S/M REAL ESTATE FUND VII, LTD.

PART II                    OTHER INFORMATION

ITEMS 1-5                  Not applicable.

ITEM 6                     Exhibits and reports on Form 8-K.

                           (a) Exhibits -

                            2a        Voluntary Petition of Shearson-Murray Real
                                      Estate Fund VII, Ltd. to commence a case
                                      under Chapter 11 of the Federal Bankruptcy
                                      Code in the United States Bankruptcy Court
                                      for the Western District of Texas-Austin
                                      Division, as filed on June 6, 1989.
                                      Reference is made to Exhibit 2a to the
                                      Partnership's Annual Report on Form 10-K
                                      filed with the Securities and Exchange
                                      Commission on June 14, 1989.

                            2b        Modified First Amended Plan of
                                      Reorganization of Shearson-Murray Real
                                      Estate Fund VII, Ltd. in the United States
                                      Bankruptcy Court for the Western District
                                      of Texas-Austin Division Case No.
                                      89-11662-LC filed February 20, 1990.
                                      Reference is made to the Partnership's
                                      Annual Report on Form 10-K filed with the
                                      Securities and Exchange Commission on
                                      April 12, 1990.

                            3         Agreement of Limited Partnership of
                                      Shearson-Murray Real Estate Fund VII,
                                      Ltd., as amended as of September 30, 1983.
                                      Reference is made to Partnership's Form
                                      8-K filed with the Securities and Exchange
                                      Commission on October 26, 1983. Reference
                                      is made to Exhibit A to the Prospectus
                                      dated June 10, 1983 contained in Amendment
                                      No. 3 to Partnership's Form S-11
                                      Registration Statement filed with the
                                      Securities and Exchange Commission on June
                                      10, 1983.

                           10a        Assignment and Assumption Agreement
                                      between Murray Management Corporation and
                                      Anterra Management Corporation for
                                      property management and leasing services
                                      dated January 1, 1990. Reference is made
                                      to Exhibit 10u to the Partnership's Annual
                                      Report on Form 10-K filed with the
                                      Securities and Exchange Commission on May
                                      15, 1990.

                           10b        Loan Agreement between S/M Real Estate
                                      Fund VII, Ltd. and General Electric
                                      Capital Corporation, dated December 3,
                                      1998. Reference is made to Exhibit 10.1 to
                                      Partnership's Form 8-K filed with the
                                      Securities and Exchange Commission on
                                      December 14, 1998.

                           27         Financial Data Schedule.  Filed herewith.

                           28a        Pages A-16 to A-18 of Exhibit A to the
                                      Prospectus dated June 10, 1983, contained
                                      in Amendment No. 3 to Partnership's Form
                                      S-11 Registration Statement filed with the
                                      Securities and Exchange Commission on June
                                      10, 1983. Reference is made to Exhibit 28a
                                      to the Partnership's Annual Report on Form
                                      10-K filed with the Securities and
                                      Exchange Commission on May 12, 1988.

                           28b        Pages 10-18 of the Prospectus dated
                                      September 10, 1983, contained in Amendment
                                      No. 3 to Partnership's Form S-11
                                      Registration Statement filed with the
                                      Securities and Exchange Commission on June
                                      10, 1983. Reference is made to Exhibit 28b
                                      to the Partnership's Annual Report on Form
                                      10-K filed with the Securities and
                                      Exchange Commission on May 12, 1988.

                                                                               8
<PAGE>   9

S/M REAL ESTATE FUND VII, LTD.


                           99a        Compromise Settlement Agreement between
                                      S/M Real Estate Fund VII, Ltd. and Federal
                                      National Mortgage Association, dated May
                                      6, 1996. Reference is made to Exhibit 99.1
                                      to the Partnership's Quarterly Report on
                                      Form 10-Q for the quarter ended June 30,
                                      1996 filed with the Securities and
                                      Exchange Commission.

                           99b        $5,830,000 Multifamily Note and Addendum,
                                      dated May 30, 1996. Reference is made to
                                      Exhibit 99.2 to the Partnership's
                                      Quarterly Report on Form 10-Q for the
                                      quarter ended June 30, 1996 filed with the
                                      Securities and Exchange Commission.

                           99c        $681,142 Subordinate Multifamily Note and
                                      Addendum, dated May 30, 1996. Reference is
                                      made to Exhibit 99.3 to the Partnership's
                                      Quarterly Report on Form 10-Q for the
                                      quarter ended June 30, 1996 filed with the
                                      Securities and Exchange Commission.

                           99d        $6,400,000 Promissory Note, dated December
                                      3, 1998. Reference is made to Exhibit 99.1
                                      of the Partnership's Form 8-K filed with
                                      the Securities and Exchange Commission on
                                      December 14, 1998.

                           (b) Reports on Form 8-K - No reports on Form 8-K were
                               filed during the quarter ended September 30,
                               1999.



                                                                               9
<PAGE>   10





                                   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.



                                        S/M REAL ESTATE FUND VII, LTD.

                                BY:     SM7 APARTMENT INVESTORS INC.
                                        A General Partner


Date:  November 9, 1999         BY:      /s/ Richard E. Hoffmann
                                         -------------------------------
                                Name:    Richard E. Hoffmann
                                Title:   Director, President and Treasurer



                                BY:     MURRAY REALTY INVESTORS VII, INC.
                                        A General Partner


Date:  November 9, 1999                 BY:      /s/ Charles W. Karlen
                                                 -------------------------------
                                        Name:    Charles W. Karlen
                                        Title:   Vice President


                                                                              10
<PAGE>   11



                                INDEX TO EXHIBITS


Exhibit
 Number           Description
 ------           -----------


 2a               Voluntary Petition of Shearson-Murray Real Estate Fund VII,
                  Ltd. to commence a case under Chapter 11 of the Federal
                  Bankruptcy Code in the United States Bankruptcy Court for the
                  Western District of Texas-Austin Division, as filed on June 6,
                  1989. Reference is made to Exhibit 2a to the Partnership's
                  Annual Report on Form 10-K filed with the Securities and
                  Exchange Commission on June 14, 1989.

 2b               Modified First Amended Plan of Reorganization of
                  Shearson-Murray Real Estate Fund VII, Ltd. in the United
                  States Bankruptcy Court for the Western District of
                  Texas-Austin Division Case No. 89-11662-LC filed February 20,
                  1990. Reference is made to the Partnership's Annual Report on
                  Form 10-K filed with the Securities and Exchange Commission on
                  April 12, 1990.

  3               Agreement of Limited Partnership of Shearson-Murray Real
                  Estate Fund VII, Ltd., as amended as of September 30, 1983.
                  Reference is made to Partnership's Form 8-K filed with the
                  Securities and Exchange Commission on October 26, 1983.
                  Reference is made to Exhibit A to the Prospectus dated June
                  10, 1983 contained in Amendment No. 3 to Partnership's Form
                  S-11 Registration Statement filed with the Securities and
                  Exchange Commission on June 10, 1983.

10a               Assignment and Assumption Agreement between Murray Management
                  Corporation and Anterra Management Corporation for property
                  management and leasing services dated January 1, 1990.
                  Reference is made to Exhibit 10u to the Partnership's Annual
                  Report on Form 10-K filed with the Securities and Exchange
                  Commission on May 15, 1990.

10b               Loan Agreement between S/M Real Estate Fund VII, Ltd. and
                  General Electric Capital Corporation, dated December 3, 1998.
                  Reference is made to Exhibit 10.1 to the Partnership's Form
                  8-K filed with the Securities and Exchange Commission on
                  December 14, 1998.

27                Financial Data Schedule.

28a               Pages A-16 to A-18 of Exhibit A to the Prospectus dated June
                  10, 1983, contained in Amendment No. 3 to Partnership's Form
                  S-11 Registration Statement filed with the Securities and
                  Exchange Commission on June 10, 1983. Reference is made to
                  Exhibit 28a to the Partnership's Annual Report Form 10-K filed
                  with the Securities and Exchange Commission on May 12, 1988.

28b               Pages 10-18 of the Prospectus dated June 10, 1983, contained
                  in Amendment No. 3 to Partnership's Form S-11 Registration
                  Statement filed with the Securities and Exchange Commission on
                  June 10, 1983. Reference is made to Exhibit 28b to the
                  Partnership's Annual Report on Form 10-K filed with the
                  Securities and Exchange Commission on May 12, 1988.

99a               Compromise Settlement Agreement between S/M Real Estate Fund
                  VII, Ltd. and Federal National Mortgage Association, dated May
                  6, 1996. Reference is made to Exhibit 99.1 to the
                  Partnership's Quarterly Report on Form 10-Q for the quarter
                  ended June 30, 1996 filed with the Securities and Exchange
                  Commission.

99b               $5,830,000 Multifamily Note and Addendum, dated May 30, 1996.
                  Reference is made to Exhibit 99.2 to the Partnership's
                  Quarterly Report on Form 10-Q for the quarter ended June 30,
                  1996 filed with the Securities and Exchange Commission.

99c               $681,142 Subordinate Multifamily Note and Addendum, dated May
                  30, 1996. Reference is made to Exhibit 99.3 to the
                  Partnership's Quarterly Report on Form 10-Q for the quarter
                  ended June 30, 1996 filed with the Securities and Exchange
                  Commission.



                                                                              11
<PAGE>   12

99d               $6,400,000 Promissory Note, dated December 3, 1998. Reference
                  is made to Exhibit 99.1 to the Partnership's Form 8-K filed
                  with the Securities and Exchange Commission on December 14,
                  1998.

                                                                              12