THIS DOCUMENT IS A COPY OF THE FORM 10-Q FILED ON [DATE].

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D. C. 20549

                                    FORM 10-Q

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

For the Nine Months Ended June 30, 1996           Commission File Number 0-5537
---------------------------------------           -----------------------------

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

              NEW YORK                                     13-2647723
--------------------------------------------------------------------------------
 (State or other jurisdiction of                       (I.R.S. Employer
  incorporation or organization)                      identification No.)

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

Registrant's telephone number, including area code   (212) 880-0389
                                                     --------------

                                 NOT APPLICABLE
--------------------------------------------------------------------------------
              Former name, former address and former fiscal year,
                         if changed since last report.

     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.    YES  [X]    NO  [ ]


                                                  Total Number of Pages 9
                                     
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                    I N D E X
                                    ---------

                                                                    Page Number
                                                                    -----------

PART 1:  Financial Statements
-------  --------------------

         Balance Sheets                                                    3

         Statements of Operations                                          4

         Statements of Cash Flows                                          5

         Notes to Financial Statements                                     6

         Management's Discussion and Analysis
           of Financial Condition and
           Results of Operations                                           7



PART 2: Other Information                                                  8
-------------------------       



SIGNATURES                                                                 9
----------                                                                 






                                       -2-
<PAGE>


                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS
                 AS AT SEPTEMBER 30, 1996 AND DECEMBER 31, 1995


                                                   SEPTEMBER 30,   DECEMBER 31,
                                                       1996            1995
                                                   ------------    ------------
                                                   (Unaudited)        (Note)
ASSETS

Real estate, at cost ...........................    $142,546,202   $144,016,508
  Less: Accumulated depreciation and                 
         amortization ..........................      96,211,571     97,003,567
                                                    ------------   ------------
                                                      46,334,631     47,012,941
  Less: Allowance for loss on impairment of                      
         real estate ...........................       2,733,895      2,733,895
                                                    ------------   ------------
                                                      43,600,736     44,279,046
Cash and cash equivalents ......................         361,642      3,090,409
Due from managing agent (Helmsley-Spear, Inc.)                   
  including tenants' security deposits of                        
  $1,804,367 (1996) and $1,398,781 (1995) ......       1,843,533      2,740,657
Receivables, principally from rentals ..........       1,334,655      1,282,917
Other deferred charges including deferred                        
  leasing commissions ..........................       5,796,079      3,668,320
                                                    ------------   ------------
                                                    $ 52,936,645   $ 55,061,349
                                                    ============   ============
                                                                 
LIABILITIES AND PARTNERS' CAPITAL/DEFICIENCY                     
                                                                 
Accounts payable ...............................    $  3,916,999   $  2,529,484
Accrued real estate taxes ......................       3,678,190      4,564,270
Accrued Interest ...............................         385,163        434,526
Distributions payable to General Partners,                       
  Special Limited Partners and Limited Partner .      10,434,903     15,609,719
Sundry liabilities and other accrued expenses ..       3,648,390      3,658,532
Note payable to related parties ................      18,000,000     18,000,000
Mortgages payable (Note 5) .....................      40,827,150     43,363,342
Deposits and rents received in advance .........       1,905,042      1,720,896
                                                    ------------   ------------
                                                      82,795,837     89,880,769
                                                    ------------   ------------
                                                                 
Partners' Capital (Deficiency):                                  
                                                                 
  General Partners .............................      (8,264,949)    (7,597,996)
  Special Limited Partners .....................     (40,521,177)   (43,291,921)
  Limited Partner (represented by the equivalent                 
    of 820,000 Participation Interests) ........      18,926,934     16,070,497
                                                    ------------   ------------
                                                     (29,859,192)   (34,819,420)
                                                    ------------   ------------
                                                    $ 52,936,645   $ 55,061,349
                                                    ============   ============
                                                

Note: The balance sheets at December 31, 1995 has been derived from the audited
      financial statements at that date.

See notes to financial statements

                                      -3-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                             STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>

                                                         FOR THE NINE MONTHS ENDED      FOR THE THREE MONTHS ENDED
                                                      -----------------------------   -----------------------------
                                                      SEPTEMBER 30,    SEPTEMBER 30,   SEPTEMBER 30,    SEPTEMBER 30,
                                                          1996             1995            1996             1995
                                                      -------------    -------------   -------------    -------------
<S>                                                    <C>             <C>              <C>              <C>        
Revenues:                                             
Gross revenues from real estate .....................   $38,183,981     $41,210,732      $12,104,451     $14,430,373  
Interest ............................................        48,565          77,077            8,996          26,951  
                                                         -----------    -----------      -----------     -----------  
                                                         38,232,546      41,287,809       12,113,447      14,457,324  
                                                         -----------    -----------      -----------     -----------  
Expenses:                                                                                                             
Leasehold rentals ...................................       780,419         944,018          148,884         314,886  
Real estate taxes ...................................     7,645,222       8,092,653        2,234,378       2,343,632  
Interest on mortgages ...............................     3,701,729       4,105,790        1,196,937       1,318,489  
Other Expenses ......................................    17,467,555      17,315,798        5,658,964       6,117,027  
Co-owners share of income ...........................        38,142          51,349            4,576          24,445  
Depreciation and amortization of real estate ........     2,460,668       2,376,443          788,977         792,146  
Amortization of mortgage refinancing costs ..........       147,411         139,015           49,137          51,055  
                                                        -----------     -----------      -----------     -----------  
                                                         32,241,146      33,025,066       10,081,853      10,961,680  
                                                        -----------     -----------      -----------     -----------  
Income before items shown below                           5,991,400       8,262,743        2,031,594       3,495,644  
Loss on Ground Lease Termination.....................      (752,646)                        (752,646)               
                                                        -----------     -----------      -----------     -----------  
                                                          5,238,754       8,262,743        1,278,948       3,495,644
                                                        -----------     -----------      -----------     -----------  
Guaranteed payments required under the                                                                
  Limited Partnership Agreement:                                                                      
  To the Limited Partner ............................        11,250          11,250            3,750           3,750   
  To the General and Special Limited Partners .......       267,276         282,086           85,847          97,357             
                                                        -----------     -----------      -----------     -----------             
                                                            278,526         293,336           89,597         101,107 
                                                        -----------     -----------      -----------     -----------             
Net income transferred to Partners'                                                                   
  Capital Accounts ..................................   $ 4,960,228     $ 7,969,407      $ 1,189,351     $ 3,394,537   
                                                        ===========     ===========      ===========     ===========             
Net Income (loss) allocable as follows (based on                                                      
  terms of the Limited Partnership Agreement):                                                        
  General Partners ..................................   $  (666,953)    $   119,541      $  (723,517)    $    50,918         
  Special Limited Partners ..........................     2,770,744       3,865,163          941,869       1,646,351 
  Limited Partner (represented by the equivalent                                                                     
    of 820,000 Participation Interests - unchanged                                                                   
    during the periods) .............................     2,856,437       3,984,703          970,999       1,697,268 
                                                        -----------     -----------      -----------     ----------- 
                                                        $ 4,960,228     $ 7,969,407      $ 1,189,351     $ 3,394,537             
                                                        ===========     ===========      ===========     =========== 
Per Participation Interest:                                                                           
                                                                                                      
Net Income ..........................................   $    3.4835     $    4.8594      $    1.1842     $    2.0698  
                                                        ===========     ===========      ===========     ===========  
                                                                                                       
See notes to financial statements.                                                                 
</TABLE>
                                      -4-
                                                                              
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                    UNAUDITED
                             STATEMENT OF CASH FLOWS

       FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND SEPTEMBER 30, 1995

<TABLE>
<CAPTION>

                                                                  1996            1995
                                                                  ----            ----
<S>                                                           <C>             <C>        
OPERATING ACTIVITIES:
  Net income .............................................    $ 4,960,228     $ 7,969,407
  Adjustments to reconcile net income to net
  cash provided by operating activities:
    Depreciation and amortization of real estate .........      2,460,668       2,376,443
    Amortization of mortgage refinancing costs ...........        147,411         139,015
    Loss on ground lease termination .....................        752,646
    Amortization of deferred leasing commissions .........        831,376         817,317
    Changes in operating assets and liabilities:
      Decrease (Increase) in due from managing agent .....        897,124        (235,433)
      (Increase) in receivables ..........................        (51,738)       (432,574)
      (Increase) in other deferred charges ...............     (3,322,043)     (2,694,133)
      Increase in accounts payable .......................      1,387,515       1,100,385
      (Decrease) Increase in accrued real estate tax .....       (886,080)        797,445
      (Decrease) in accrued interest .....................        (49,363)       (106,421)
      Increase in sundry and other
        accrued expenses .................................        319,975         842,862
      Increase in deposits and rents
        received in advance ..............................        184,146          66,924
                                                             ------------    ------------
         Net Cash Provided by Operating Activities .......      7,631,865      10,641,237
                                                             ------------    ------------
INVESTING ACTIVITIES:
  Property improvements ..................................     (2,649,623)     (3,639,587)
                                                             ------------    ------------
FINANCING ACTIVITIES:
  Distributions of net operating revenues to General
   Partners, Special Limited Partners and Limited Partners     (5,174,816)     (5,366,517)
  Principal payments on mortgage payable .................     (2,536,193)     (3,033,736)
                                                             ------------    ------------
         Net Cash (Used in)
          Financing Activities ...........................     (7,711,009)     (8,400,253)
                                                             ------------    ------------
         (Decrease) in Cash and Cash Equivalents .........     (2,728,767)     (1,398,603)

Cash and Cash Equivalents at Beginning of Year ...........      3,090,409       4,138,916
                                                             ------------    ------------
Cash and Cash Equivalents at End of Year .................   $    361,642    $  2,740,313
                                                             ============    ============
Supplemental disclosure of cash flow information:
  Cash paid during the year for interest .................   $  3,751,092    $  4,212,210
                                                             ============    ============

</TABLE>

                                      -5-
<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 generally accepted accounting
principles. Reference should be made to the Company's Annual Report Form 10-K
for the year ended December 31, 1995, 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,
1996 and 1995, and the results of operations for the nine months then ended.

NOTE 3

     The results of operations for the nine months ended September 30, 1996 and
1995 are not necessarily indicative of the results to be expected for the full
year.

NOTE 4 - Taxes

     The net income for Federal income tax purposes is $4,912,470 (September 30,
1996) and $8,577,651 (September 30, 1995) as compared with net income of
$4,960,228 and $7,969,407 respectively, as shown in the statement of operations.
The differences result principally from (a) rents received in advance and
recognized currently for income tax purposes, and (b) differences in
depreciation expense resulting from differences in the basis of real estate for
tax and financial reporting purposes.

NOTE 5 - Mortgage Payable

     During the nine months ended September 30, 1996, IPA, in addition to a
regular mortgage amortization of $36,192, made a principal payment in the amount
of $2,500,000, reducing the mortgage balance from $43,363,342 as of January 1,
1996 to $40,827,150 as of September 30, 1996.

     On November 13, 1995, Registrant and First Fidelity Bank ("Fidelity")
entered into a modification of the mortgage note held by Fidelity on
Registrant's Federal Trust building in Newark, New Jersey. Effective January 1,
1996, the maturity date of the note was extended to June 30, 1997. Interest on
the amended note is based on the weekly average yield on U.S. Treasury
Securities plus 2% and the modification calls for the monthly payment of
principal and interest. The principal balance of the Fidelity loan at December
31, 1995 was $515,855.

NOTE 6  - Subsequent Event

     On July 1, 1996, IPA exercised its option to terminate the ground lease on
the 744 Broad Street Building. The capital loss arising from this lease
termination is $1,554,288 for federal income tax purposes as compared with
$752,646 for financial statement purposes. The lease which expires August 31,
2002, has an annual rental of $659,500. In addition, IPA is exploring the
possibility of similar action on other sub-performing properties.

                                       -6-
<PAGE>
                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

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

     Gross revenue from rentals for 1996 decreased approximately 7.34% as
compared to 1995. The decrease was due primarily to a decrease in occupancy in
One North Dearborn building in Chicago, New Jersey properties offset by the
increase in 261 Fifth Avenue and 1328 Broadway, New York, New York. 

     The increase in other expenses in 1996 as compared to 1995 is principally
attributable to the increase in security labor, heating cost, building repairs,
utility tax assessment offset by decrease in wages and cleaning expenses. 

     The decrease in real estate taxes was attributable primarily to decreases
in real estate assessments for properties located in New York City and Chicago.
Decrease in mortgage interest expense was due primarily to a reduction in
mortgage outstanding balance. 

     Liquidity and Capital Resources - IPA's cash generated from operations plus
its ability to refinance certain mortgage obligations provide it with the
resources needed to meet its anticipated obligations including operating
expenses, mortgage amortization and required distributions to partners.


                                      -7-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

PART 2 - OTHER INFORMATION


                                      NONE






                                        -8-
<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
                                                       (Registrant)


DATE   December 13, 1996
     --------------------
                                            /s/ Irving Schneider
                                            --------------------------------
                                                     (signature)
                                            IRVING SCHNEIDER
                                            General and Special Limited Partner



                                      -9-