FORM 10-Q

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

[X]   QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934

For the quarterly period ended September 30, 2002.

                                       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: 0-5537

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
             (Exact name of registrant as specified in its charter)

   A New York Limited Partnership                       13-2647723
   ------------------------------                       ----------
   (State or other jurisdiction of         (I.R.S. Employer Identification No.)
   incorporation or organization)

                  60 East 42nd Street, New York, New York 10165
                  ---------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (212) 687-6400
                                 --------------
              (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.

[X] Yes   [ ] No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                  PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

      Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

[ ] Yes  [ ] No

             820,000 participations of Limited Partnership Interests
                     are outstanding as of the date hereof.


<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES

                                    FORM 10-Q
                 For the Fiscal Quarter Ended September 30, 2002

                                      INDEX

                                                                            Page
                                                                            ----

PART I.       FINANCIAL INFORMATION...........................................1

Item 1.       Financial Statements............................................1

              Balance Sheets..................................................1

              Statements of Operations........................................2

              Statements of Cash Flows........................................3

              Notes to Unaudited Financial Statements.........................4

Item 2.       Management's Discussion and Analysis
              of Financial Condition and Results of
              Operations......................................................5

Item 3.       Quantitative and Qualitative Disclosures About
              Market Risk.....................................................6

Item 4.       Controls and Procedures.........................................6

PART II.      OTHER INFORMATION...............................................7

Item 6.       Exhibits and Reports on Form 8-K................................7

              Signatures......................................................8

              Certifications..................................................9

                                      -i-


<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS

                    SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
<TABLE>
<CAPTION>

                                                         SEPTEMBER 30, 2002     DECEMBER 31, 2001
                                                         ------------------     -----------------
ASSETS                                                       (Unaudited)              (Note)
<S>                                                          <C>                    <C>
Real estate, at cost                                         $8,033,347             $8,033,347
     Less:  Accumulated depreciation and amortization         5,880,040              5,880,040
                                                             ----------             ----------
                                                              2,153,307              2,153,307

Cash and cash equivalents                                     1,335,079              2,788,292
Due from managing agent (Helmsley-Spear, Inc.)                  179,125                229,291
Receivables                                                       3,553                  3,553
Other assets                                                    462,294                457,515
                                                             ----------             ----------
                                                             $4,133,358             $5,631,958
                                                             ==========             ==========

LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)

Accounts payable                                             $   14,405             $    7,903
Distributions payable to General Partners,
     Special Limited Partners and Limited Partners                7,213                698,179
Sundry liabilities and other accrued expenses                   272,885                415,799
Deposits                                                             --              1,500,000
                                                             ----------             ----------
                                                                294,503              2,621,881
                                                             ----------             ----------

Partners' Capital (Deficiency)

     General Partners                                        (2,490,648)            (2,495,206)
     Special Limited Partners                                 3,696,123              3,286,292
     Limited Partners (represented by the equivalent
       of 820,000 Participation Interests)                    2,633,380              2,218,991
                                                             ----------             ----------
                                                              3,838,855              3,010,077
                                                             ----------             ----------

                                                             $4,133,358             $5,631,958
                                                             ==========             ==========
</TABLE>

Note: The balance sheet at December 31, 2001 has been derived from the audited
      financial statements at that date.

See accompanying notes to financial statements.


                                       1
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                      STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>

                                                           FOR THE NINE MONTHS ENDED       FOR THE THREE MONTHS ENDED
                                                          -----------------------------   -----------------------------
                                                          SEPT 30, 2002   SEPT 30, 2001   SEPT 30, 2002  SEPT 30, 2001
                                                          -------------   -------------   -------------   -------------
Revenues:
<S>                                                        <C>             <C>             <C>              <C>
Gross revenues from real estate                            $       --      $   62,788      $      --       $  51,536
Real estate tax refund                                             --       1,245,541             --         585,046
Other income                                                1,501,500          43,139             --          43,139
Interest                                                       24,682         212,988          6,164          16,897
                                                           ----------      ----------      ---------       ---------
                                                            1,526,182       1,564,456          6,164         696,618
                                                           ----------      ----------      ---------       ---------

Expenses:
Real estate taxes                                             231,714         187,258         77,772          68,693
Other expenses                                                378,315         641,554        104,172         242,044
                                                           ----------      ----------      ---------       ---------
                                                              610,029         828,812        181,944         310,737
                                                           ----------      ----------      ---------       ---------

Income (loss) before items shown below                        916,153         735,644       (175,780)        385,881
Gain (loss) on sale of real estate                                 --          95,096             --          95,096
                                                           ----------      ----------      ---------       ---------
                                                              916,153         830,740       (175,780)        480,977
                                                           ----------      ----------      ---------       ---------

Guaranteed payments required under the
Limited Partnership Agreement:
  To the Limited Partners                                      11,250          11,250          3,750           3,750
  To the General and Special Limited Partners                  76,125          76,125         25,375          25,375
                                                           ----------      ----------      ---------       ---------
                                                               87,375          87,375         29,125          29,125
                                                           ----------      ----------      ---------       ---------

Net income (loss) transferred to partners'
capital accounts                                           $  828,778      $  743,365      $(204,905)      $(451,852)
                                                           ==========      ==========      =========       =========


Net income (loss) allocable as follows (based
on terms of the Limited
Partnership Agreement):
  General Partners                                         $    4,558      $    4,088      $  (1,127)      $   2,485
  Special Limited Partners                                    409,831         367,594       (101,325)        223,441
  Limited Partners (represented by the
  equivalent of 820,000 Participation
  Interests - unchanged during the periods)                   414,389         371,683       (102,453)        225,926
                                                           ----------      ----------      ---------       ---------
                                                           $  828,778      $  743,365      $(204,905)      $ 451,852
                                                           ==========      ==========      =========       =========

Per Participation Interest:
  Net income (loss)                                        $   0.5054      $   0.4533      $ (0.1249)      $  0.2755
                                                           ==========      ==========      =========       =========
</TABLE>

See accompanying notes to financial statements.


                                       2
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                      STATEMENTS OF CASH FLOWS (UNAUDITED)

       FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001
<TABLE>
<CAPTION>

                                                                            2002            2001
                                                                         -----------     ----------
OPERATING ACTIVITIES:
<S>                                                                      <C>            <C>
     Net income                                                          $   828,778    $   743,365
     Adjustments to reconcile net income to net cash (used in)
     provided by operating activities:
        Gain on sale of real estate                                               --        (95,096)
        Changes in operating assets and liabilities:
        Decrease in due from managing agent                                   50,166        525,148
        (Increase) Decrease in other assets                                   (4,779)        42,209
        Increase (decrease) in accounts payable                                6,502        (69,906)
        Increase in accrued real estate taxes                                     --         59,757
        Decrease in sundry liabilities and other accrued expenses           (142,914)       (75,804)
        Decrease in deposits                                              (1,500,000)            --
                                                                         -----------    -----------

        Net cash (used in) provided by operating activities                 (762,247)     1,129,673
                                                                         -----------    -----------

INVESTING ACTIVITIES:
     Net proceeds from sale of real estate                                        --         95,583
                                                                         -----------    -----------

FINANCING ACTIVITIES:
     Distributions  of net  operating  revenues and  proceeds
     from sale of real estate to General Partners, Special
     Limited Partners and Limited Partners                                  (690,966)    (9,108,231)
                                                                         -----------    -----------

         Decrease in cash and cash equivalents                            (1,453,213)    (7,882,975)

Cash and cash equivalents at beginning of period                           2,788,292      9,514,349
                                                                         -----------    -----------

Cash and cash equivalents at end of period                               $ 1,335,079    $ 1,631,374
                                                                         ===========    ===========
</TABLE>

See accompanying notes to financial statements.


                                       3
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                     NOTES TO UNAUDITED FINANCIAL STATEMENTS

NOTE 1

As  permitted  by the  Securities  and  Exchange  Commission,  the  accompanying
unaudited financial  statements and footnotes have been condensed and therefore,
do not  contain all  disclosures  required by  accounting  principles  generally
accepted in the United States.  Reference should be made to the Company's Annual
Report Form 10-K for the year ended December 31, 2001, filed with the Securities
and Exchange Commission.

NOTE 2

In the opinion of the Company,  the accompanying  unaudited financial statements
contain all adjustments (consisting only of normal recurring accruals) necessary
to present  fairly its  financial  position  as of  September  30,  2002 and the
results of operations  for the three and nine month periods ended  September 30,
2002 and 2001.

NOTE 3

The results of operations  for the three and nine month periods ended  September
30, 2002 and 2001 are not  necessarily  indicative of the results to be expected
for the full year.

NOTE 4 - Taxes

The net income (loss) for Federal  income tax purposes is $667,743  (nine months
ended  September 30, 2002) and $(16,783)  (nine months ended September 30, 2001)
as compared with net income of $828,778 and $743,365  respectively,  as shown in
the  statements  of  operations.   The  differences   result   principally  from
differences  in  depreciation  expense which  continues to be recognized for tax
purposes.

NOTE 5 - Other Income

On October 22, 2001, the Company signed a contract,  subject to certain  closing
conditions,  to sell its only remaining  property,  a vacant  commercial  office
building located at 570 Broad Street,  Newark,  New Jersey, for a purchase price
of  $11,500,000.   In  connection  with  the  contract,   the  Company  received
non-refundable  deposits from the buyer in the amount of $1,500,000.  In January
2002,  due to the  buyer's  inability  to satisfy the  closing  conditions,  the
contract  expired and the Company resumed  marketing  activities with respect to
the Property. The Company retained the non-refundable deposits from the buyer in
the amount of $1,500,000.


                                       4
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

ITEM 2.

                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

As a result of the sales of the Company's remaining income producing  properties
in 2000,  the  Company no longer  derives  income from  rental  operations.  The
activity of the Company consists of marketing for sale its remaining  non-income
producing  property,  a vacant  office  property  located  at 570 Broad  Street,
Newark, New Jersey.

The real estate tax refund in 2001 was  attributable  to the  settlement  of tax
certiorari  appeals  filed in a prior year  relating  to the  Company's  Chicago
properties  which  had been  sold in 1998 and the 1328  Broadway  and 261  Fifth
Avenue properties which had been sold in 2000.

The  decrease in interest  income was due to the  reduction  of  investments  in
commercial paper as a result of the  distributions  made to partners during 2001
and 2002 of the net proceeds from the sales of properties.

The  increase  in real estate  taxes in 2002 as compared to 2001 is  principally
attributable to a tax refund received in 2001 for the 570 Broad Street property.

The  decrease  in other  expenses  in 2002 as  compared  to 2001 is  principally
attributable to a decrease in professional fees.

Other  income  in 2002  relates  principally  to the  Company's  retention  of a
non-refundable  deposit  in the  amount of  $1,500,000  received  in 2001 from a
prospective  buyer of the 570 Broad  Street  property  pursuant to a contract to
sell the 570  Broad  Street  property,  which was  subject  to  certain  closing
conditions.  As a result of the  prospective  buyer's  inability  to satisfy the
closing  conditions of the sales  contract,  the contract  expired in accordance
with its terms in January of 2002, and the buyer's  deposit was forfeited to the
Company. See Note 5 of the accompanying notes to the financial statements.

As of December  31,  2001,  the  Company  had accrued (i) a special  dividend of
$410,000 to its General  Partners  and Special  Limited  Partners and holders of
record of the PPI's as of the close of business  on  December  31, 2001 from its
available cash and (ii) a  distribution  in the amount of $280,965 in respect of
2001 net operating revenues. These amounts were paid during 2002.


                                       5
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

ITEM 3.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At September  30, 2002,  the Company had no interest  bearing  indebtedness  and
accordingly  was not exposed to market risk with  respect to changes in interest
rates, and does not anticipate a need to seek additional borrowings.

ITEM 4.

                             CONTROLS AND PROCEDURES

Within the 90-day period preceding the date of this report, an evaluation of the
effectiveness of the design and operation of the Company's  disclosure  controls
and procedures was carried out under the supervision and with the  participation
of the Company's management, including the Chief Executive Officer and the Chief
Financial  Officer (the "Certifying  Officers").  Based on that evaluation,  the
Certifying  Officers  concluded  that  the  Company's  disclosure  controls  and
procedures  are effective to bring to the attention of the Company's  management
the  relevant  information  necessary  to  permit an  assessment  of the need to
disclose material developments and risks pertaining to the Company's business in
its periodic  filings with the  Securities and Exchange  Commission.  There have
been no  significant  changes to the  Company's  internal  controls  or in other
factors that could significantly affect these controls subsequent to the date of
the evaluation.


                                       6
<PAGE>

PART II.   OTHER INFORMATION

ITEM 6.

                        EXHIBITS AND REPORTS ON FORM 8-K

(a)       Exhibits

          Exhibit 99.1  Section 906  Sarbanes-Oxley Act of 2002 certification of
                        Mr.  Irving  Schneider  as General and  Special  Limited
                        Partner and Chief Executive Officer

          Exhibit 99.2  Section 906  Sarbanes-Oxley Act of 2002 certification of
                        Mr. Robert Hecht as Chief Financial Officer

(b) Reports on Form 8-K

None.

Items 1, 2, 3, 4 and 5 are not applicable and have been omitted.


                                       7
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                   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.

                                     INVESTMENT PROPERTIES ASSOCIATES

                                     By: /s/ Irving Schneider
                                         ---------------------------------------
                                         Irving Schneider
                                         General and Special Limited Partner and
                                         Chief Executive Officer

                                     By: /s/ Robert Hecht
                                         ---------------------------------------
                                         Robert Hecht
                                         Chief Financial Officer

Dated: November 13, 2002


                                       8
<PAGE>

                            Section 302 Certification

I, Irving Schneider, certify that:

1.    I  have  reviewed  this  quarterly  report  on  Form  10-Q  of  Investment
      Properties Associates;

2.    Based on my knowledge,  this quarterly  report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the  circumstances  under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  quarterly  report,  fairly  present in all
      material respects the financial condition,  results of operations and cash
      flows of the  registrant  as of, and for,  the periods  presented  in this
      quarterly report;

4.    The  registrant's  other  certifying  officers and I are  responsible  for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)    designed  such  disclosure  controls and  procedures  to ensure that
            material  information  relating  to the  registrant,  including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those  entities,  particularly  during  the  period  in  which  this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented  in  this  quarterly  report  our  conclusions  about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed,  based on
      our most recent  evaluation,  to the  registrant's  auditors and the audit
      committee of  registrant's  board of directors (or persons  performing the
      equivalent function):

      a)    all significant  deficiencies in the design or operation of internal
            controls which could adversely  affect the  registrant's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified for the registrant's  auditors any material weaknesses in
            internal controls; and

      b)    any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal controls; and

6.    The registrant's  other  certifying  officers and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other  factors  that could  significantly  affect  internal
      controls  subsequent to the date of our most recent evaluation,  including
      any  corrective  actions  with  regard  to  significant  deficiencies  and
      material weaknesses.

Date: November 13, 2002

                                         /s/ Irving Schneider
                                         ---------------------------------------
                                         Irving Schneider

                                         General and Special Limited Partner and
                                         Chief Executive Officer


                                       9
<PAGE>

                            Section 302 Certification

I, Robert Hecht, certify that:

1.    I  have  reviewed  this  quarterly  report  on  Form  10-Q  of  Investment
      Properties Associates;

2.    Based on my knowledge,  this quarterly  report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the  circumstances  under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  quarterly  report,  fairly  present in all
      material respects the financial condition,  results of operations and cash
      flows of the  registrant  as of, and for,  the periods  presented  in this
      quarterly report;

4.    The  registrant's  other  certifying  officers and I are  responsible  for
      establishing  and  maintaining  disclosure  controls  and  procedures  (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we
      have:

      a)   designed  such  disclosure  controls and  procedures  to ensure that
            material  information  relating  to the  registrant,  including  its
            consolidated  subsidiaries,  is made  known to us by  others  within
            those  entities,  particularly  during  the  period  in  which  this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the registrant's  disclosure controls
            and  procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented  in  this  quarterly  report  our  conclusions  about  the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The registrant's other certifying officers and I have disclosed,  based on
      our most recent  evaluation,  to the  registrant's  auditors and the audit
      committee of  registrant's  board of directors (or persons  performing the
      equivalent function):

      a)    all significant  deficiencies in the design or operation of internal
            controls which could adversely  affect the  registrant's  ability to
            record,  process,  summarize  and  report  financial  data  and have
            identified for the registrant's  auditors any material weaknesses in
            internal controls; and

      b)    any fraud,  whether or not  material,  that  involves  management or
            other  employees  who have a  significant  role in the  registrant's
            internal controls; and

6.    The registrant's  other  certifying  officers and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other  factors  that could  significantly  affect  internal
      controls  subsequent to the date of our most recent evaluation,  including
      any  corrective  actions  with  regard  to  significant  deficiencies  and
      material weaknesses.

Date: November 13, 2002

                                                 /s/ Robert Hecht
                                                 -------------------------------
                                                 Robert Hecht
                                                 Chief Financial Officer


                                       10