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UNITED
    STATES
 SECURITIES
    AND EXCHANGE COMMISSION
 Washington, D.C.
    20549
 FORM
    10-Q
  (Mark
    one)
 x
    QUARTERLY
    REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934  For the quarterly
    period ended September 30, 2008.
  OR
  o
    TRANSITION
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
    EXCHANGE ACT OF 1934  For the
    transition period from
    
    to
     .
  Commission file
    no. 0-16191
  DEL
    TACO RESTAURANT PROPERTIES I
 a California
    limited partnership
 (Exact
    name of registrant as specified in its charter)
  California

95-3852699(State or other jurisdiction
    of
    incorporation or organization)

(I.R.S. Employer
    Identification Number)25521 Commercentre Drive, Lake Forest, California

92630(Address of principal executive
    offices)

(Zip Code)   (949) 462-9300
 (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 þ  No o
  Indicate by check
    mark whether the registrant is a large accelerated filer, an
    accelerated filer, a non-accelerated filer, or a smaller
    reporting company. See the definitions of large
    accelerated filer, accelerated filer and
    smaller reporting company in
    Rule 12b-2
    of the Exchange Act. (Check one):
  Large
    accelerated
    filer o
    Accelerated
    filer o
    Non-accelerated
    filer þ
    Smaller reporting
    company o (Do
    not check if a smaller reporting company)
  Indicate by check
    mark whether the registrant is a shell company (as defined in
    Rule 12b-2
    of the Exchange
    Act).  Yes o  No þ




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##### 



DEL TACO RESTAURANT PROPERTIES I
  
 PAGE NUMBERPART I. FINANCIAL INFORMATIONItem 1. Financial StatementsCondensed Balance Sheets at September 30, 2008 (Unaudited) and
December 31, 2007
    
    3Condensed Statements of Income for the three and nine months ended
September 30, 2008 and 2007 (Unaudited)
    
    4Condensed Statements of Cash Flows for the nine months ended
September 30, 2008 and 2007 (Unaudited)
    
    5Notes to Condensed Financial Statements (Unaudited)
    
    6Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operations
    
    9Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    11Item 4T. Controls and Procedures
    
    11PART II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    12Item 6. Exhibits
    
    12SIGNATURE
    
    13EX-31.1EX-31.2EX-32.1
  -2-




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PART I. FINANCIAL INFORMATION
 
 ITEM I. FINANCIAL STATEMENTS
 DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED BALANCE SHEETS
 September 30,
    
    
    December 31,2008
    
    
    2007(Unaudited)ASSETSCURRENT ASSETS:Cash
    
    $
    208,521
    
    
    $
    218,140Receivable from Del Taco LLC
    
    
    62,444
    
    
    
    62,093Deposits
    
    
    1,172
    
    
    
    986Total current assets
    
    
    272,137
    
    
    
    281,219PROPERTY AND EQUIPMENT:Land and improvements
    
    
    1,924,585
    
    
    
    1,852,482Buildings and improvements
    
    
    1,013,134
    
    
    
    1,013,134Machinery and equipment
    
    
    1,136,026
    
    
    
    1,136,0264,073,745
    
    
    
    4,001,642Lessaccumulated depreciation
    
    
    2,098,746
    
    
    
    2,077,0351,974,999
    
    
    
    1,924,607$
    2,247,136
    
    
    $
    2,205,826LIABILITIES AND PARTNERS EQUITYCURRENT LIABILITIES:Payable to limited partners
    
    $
    31,937
    
    
    $
    39,157Accounts payable
    
    
    6,597
    
    
    
    6,859Total
current liabilities
    
    
    38,534
    
    
    
    46,016PARTNERS EQUITY:Limited partners; 8,751 units outstanding at September 30, 2008
and December 31, 2007
    
    
    1,946,419
    
    
    
    1,898,115General partner-Del Taco LLC
    
    
    262,183
    
    
    
    261,6952,208,602
    
    
    
    2,159,810$
    2,247,136
    
    
    $
    2,205,826
  -3-




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DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007RENTAL REVENUES
    
    $
    189,942
    
    
    $
    188,813
    
    
    $
    559,806
    
    
    $
    543,869EXPENSES:General and administrative
    
    
    9,172
    
    
    
    10,682
    
    
    
    60,516
    
    
    
    64,124Depreciation
    
    
    7,237
    
    
    
    7,237
    
    
    
    21,711
    
    
    
    21,71116,409
    
    
    
    17,919
    
    
    
    82,227
    
    
    
    85,835Operating income
    
    
    173,533
    
    
    
    170,894
    
    
    
    477,579
    
    
    
    458,034OTHER INCOME:Interest
    
    
    331
    
    
    
    986
    
    
    
    1,400
    
    
    
    3,395Other
    
    
    225
    
    
    
    250
    
    
    
    2,475
    
    
    
    1,500Net income
    
    $
    174,089
    
    
    $
    172,130
    
    
    $
    481,454
    
    
    $
    462,929Net income per limited
partnership unit (Note 2)
    
    $
    19.69
    
    
    $
    19.47
    
    
    $
    54.47
    
    
    $
    52.37Number of units used in computing
per unit amounts
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
    
    
    
    8,751
  -4-




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DEL TACO RESTAURANT PROPERTIES I
 
 CONDENSED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2008
    
    
    2007CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    481,454
    
    
    $
    462,929Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation
    
    
    21,711
    
    
    
    21,711Changes in operating assets and liabilities:Receivable from Del Taco LLC
    
    
    (351
    )
    
    
    199Deposits
    
    
    (186
    )
    
    
    144Payable to limited partners
    
    
    (7,220
    )
    
    
    (39,416
    )Accounts payable
    
    
    (262
    )
    
    
    602Net cash provided by operating activities
    
    
    495,146
    
    
    
    446,169CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of land and improvements
    
    
    (72,103
    )
    
    
    CASH FLOWS FROM FINANCING ACTIVITIES:Cash distributions to partners
    
    
    (432,662
    )
    
    
    (472,681
    )Net decrease in cash
    
    
    (9,619
    )
    
    
    (26,512
    )Beginning cash balance
    
    
    218,140
    
    
    
    259,468Ending cash balance
    
    $
    208,521
    
    
    $
    232,956
  -5-




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DEL TACO RESTAURANT PROPERTIES I
 
 NOTES TO CONDENSED FINANCIAL STATEMENTS
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008
 UNAUDITED
 NOTE 1  BASIS OF PRESENTATION
  NOTE 2  NET INCOME PER LIMITED PARTNERSHIP UNIT
   NOTE 3  LEASING ACTIVITIES
  -6-




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DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008
 UNAUDITED
 NOTE 3  LEASING ACTIVITIES  continued
   NOTE 4  TRANSACTIONS WITH DEL TACO
    NOTE 5  DISTRIBUTIONS
  -7-




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DEL TACO RESTAURANT PROPERTIES I
 NOTES TO CONDENSED FINANCIAL STATEMENTS  CONTINUED
 FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008
 UNAUDITED
 NOTE 6  PAYABLE TO LIMITED PARTNERS
  NOTE 7  CONCENTRATION OF RISK
   NOTE 8  COMMITMENTS AND CONTINGENCIES
  -8-




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Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
 Liquidity and Capital Resources
   Results of Operations
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2008
    
    
    2007
    
    
    2008
    
    
    2007Riverside Avenue, Rialto, CA
    
    $
    29,541
    
    
    $
    29,604
    
    
    $
    86,009
    
    
    $
    86,944Elden Avenue, Moreno Valley, CA
    
    
    26,817
    
    
    
    27,120
    
    
    
    76,325
    
    
    
    79,051Foothill Boulevard, La Verne, CA
    
    
    44,028
    
    
    
    44,979
    
    
    
    132,283
    
    
    
    130,225Baseline & Archibald, Rancho Cucamonga, CA
    
    
    30,159
    
    
    
    31,007
    
    
    
    89,018
    
    
    
    90,818Elkhorn Boulevard, Sacramento, CA
    
    
    22,894
    
    
    
    20,871
    
    
    
    66,978
    
    
    
    59,317Haven Avenue, Rancho Cucamonga, CA
    
    
    36,503
    
    
    
    35,232
    
    
    
    109,193
    
    
    
    97,514Total
    
    $
    189,942
    
    
    $
    188,813
    
    
    $
    559,806
    
    
    $
    543,869
  -9-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations -
continued
  Percent of TotalGeneral & Administrative ExpenseThree Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2008
    
    2007
    
    2008
    
    2007Accounting fees
    
    
    65.53
    %
    
    
    53.60
    %
    
    
    75.62
    %
    
    
    69.72
    %Distribution of information
to limited partners
    
    
    36.47
    %
    
    
    46.40
    %
    
    
    24.38
    %
    
    
    30.28
    %102.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
    
    
    100.00
    %
   Significant Recent Accounting Pronouncements
  Off-Balance Sheet Arrangements
  Critical Accounting Policies and Estimates
  -10-




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Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations -
continued
 Revenue Recognition
  Property and Equipment:
   
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
  
 Item 4T. Controls and Procedures
 (a)
    
    Evaluation of disclosure controls and procedures:
 As of the end of the period covered by this quarterly report, we carried out an
evaluation, under the supervision and with the participation of the Companys management,
including the Companys Chief Executive Officer and Treasurer, of the effectiveness of the design and
operation of the Companys disclosure controls and procedures. Based upon that
evaluation, the Chief Executive Officer and Treasurer concluded that the Companys disclosure controls
and procedures are effective in timely alerting them to material information relating to
the Company required to be included in the Companys periodic Securities and Exchange
Commission filings.
 (b)
    
    Changes in internal controls:
 There were no significant changes in the Companys internal controls over financial
reporting that occurred during our most recent fiscal quarter that materially affected,
or is reasonably likely to materially affect, our internal control over financial
reporting.
 (c)
    
    Asset-backed issuers:
 Not applicable.
 -11-




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PART II. OTHER INFORMATION
  
   
  (a)
    
    Exhibits
 31.1
    
    Nick Shepherds Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 -12-




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SIGNATURE
  
 
 Date:  November 14, 2008
    /s/ Steven L. BrakeSteven L. BrakeTreasurer -13-




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EXHIBIT
INDEX
 Exhibits
    
    Description31.1
    
    Nick Shepherds Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200231.2
    
    Steven L. Brakes Certification pursuant to Section 302 of the
Sarbanes-Oxley Act of 200232.1
    
    Certification pursuant to subsections (a) and (b) of Section 1350,
Chapter 63 of Title 18, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002
 -14-