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

                                    FORM 10-Q

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

For the quarterly period ended September 30, 2001.

                                       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)

       Registrant's telephone number, including area code: (212) 687-6400

      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
                        --------------------------------
                        (A New York Limited Partnership)

                                      INDEX

                                                                     Page Number

PART I.   FINANCIAL INFORMATION

Item 1:   Financial Statements
------
          Balance Sheets                                                   3

          Statements of Operations                                         4

          Statements of Cash Flows                                         5

          Notes to Unaudited Financial Statements                          6

Item 2:   Management's Discussion and Analysis
------    of Financial Condition and Results of
          Operations                                                       7

Item 3:   Quantitative and Qualitative Disclosures About Market Risk       8
------

PART II.  OTHER INFORMATION

Item 6:   Exhibits and Reports on Form 8-K                                 9
------
          Signatures                                                      10


                                      -2-
<PAGE>

                         PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
                        (A New York Limited Partnership)

                                 BALANCE SHEETS

                 AS AT SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                                       SEPTEMBER 30, 2001        DECEMBER 31, 2000
                                                                       ------------------        -----------------
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                                                    1,631,374                 9,514,349
Due from managing agent (Helmsley-Spear, Inc.)                                 205,430                   730,578
Receivables, principally from rentals                                            8,215                     8,215
Other assets                                                                   510,654                   553,350
                                                                          ------------              ------------
                                                                          $  4,508,980              $ 12,959,799
                                                                          ============              ============
LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)
----------------------------------------------

Accounts payable                                                          $     43,462              $    113,368
Accrued real estate taxes                                                       70,843                    11,086
Distributions payable to General Partners,
     Special Limited Partners and Limited Partners                               7,214                 3,915,446
Sundry liabilities and other accrued expenses                                  319,114                   394,918
                                                                          ------------              ------------
                                                                               440,633                 4,434,818
                                                                          ------------              ------------
Partners' Capital (Deficiency)

     General Partners                                                       (2,489,908)               (2,465,397)
     Special Limited Partners                                                3,762,581                 5,966,387
     Limited Partners (represented by the equivalent
       of 820,000 Participation Interests)                                   2,795,674                 5,023,991
                                                                          ------------              ------------
                                                                             4,068,347                 8,524,981
                                                                          ------------              ------------

                                                                          $  4,508,980              $ 12,959,799
                                                                          ============              ============
</TABLE>

Note: The balance sheet at December 31, 2000 has been derived from the
      audited financial statements at that date.

See accompanying notes to financial statements.


                                      -3-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
                        (A New York Limited Partnership)

                      STATEMENTS OF OPERATIONS (UNAUDITED)

<TABLE>
<CAPTION>
                                                                       FOR THE NINE MONTHS               FOR THE THREE MONTHS
                                                                       -------------------               --------------------
                                                                              ENDED                             ENDED
                                                                              -----                             -----
                                                                SEPT 30, 2001     SEPT 30, 2000     SEPT 30, 2001     SEPT 30, 2000
                                                                -------------     -------------     -------------     -------------
<S>                                                             <C>               <C>               <C>                <C>
Revenues:
---------
Gross revenues from real estate                                 $     62,788      $  5,726,371      $     51,536       $   (128,103)
Real estate tax refund                                             1,245,541                --           585,046                 --
Interest                                                             212,988         1,114,994            16,897            161,317
Other Income                                                          43,139                --            43,139                 --
                                                                ------------      ------------      ------------       ------------
                                                                   1,564,456         6,841,365           696,618             33,214
                                                                ------------      ------------      ------------       ------------

Expenses:
---------
Real estate taxes                                                    187,258           460,353            68,693           (181,384)
Interest on mortgages                                                     --            43,584                --                 --
Other expenses                                                       641,554         2,549,095           242,044            239,121
Depreciation and amortization of real estate                              --           536,818                --             59,669
                                                                ------------      ------------      ------------       ------------

                                                                     828,812         3,589,850           310,737            117,406
                                                                ------------      ------------      ------------       ------------

Income (loss) before items shown below                               735,644         3,251,515           385,881            (84,192)
Gain on sale of real estate                                           95,096       150,500,239            95,096           (881,100)
                                                                ------------      ------------      ------------       ------------
                                                                     830,740       153,751,754           480,977           (965,292)
                                                                ------------      ------------      ------------       ------------

Guaranteed payments required under the
Limited Partnership Agreement:
  To the Limited Partners                                             11,250             3,750             3,750                 --
  To the General and Special Limited Partners                         76,125            59,429            25,375              4,054
                                                                ------------      ------------      ------------       ------------
                                                                      87,375            63,179            29,125              4,054
                                                                ------------      ------------      ------------       ------------

Net income (loss) transferred to Partners'
Capital Accounts                                                $    743,365      $153,688,575      $    451,852       $   (969,346)
                                                                ============      ============      ============       ============

Net income (loss) allocable as follows (based
on terms of the Limited Partnership
Agreement):
  General Partners                                              $      4,088      $  1,102,331      $      2,485       $     (5,331)
  Special Limited Partners                                           367,594        99,109,540           223,441           (479,342)
  Limited Partners (represented by the equivalent
    of 820,000 Participation Interests
    - unchanged during the periods)                                  371,683        53,476,704           225,926           (484,673)
                                                                ------------      ------------      ------------       ------------

                                                                $    743,365      $153,688,575      $    451,852       $   (969,346)
                                                                ============      ============      ============       ============
Per Participation Interest:
  Net income (loss)                                             $     0.4533      $    65.2155      $     0.2755       $    (0.5911)
                                                                ============      ============      ============       ============
</TABLE>

See accompanying notes to financial statements.


                                      -4-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
                        (A New York Limited Partnership)

                      STATEMENTS OF CASH FLOWS (UNAUDITED)

       FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND SEPTEMBER 30, 2000

<TABLE>
<CAPTION>
                                                                                    2001                   2000
                                                                                    ----                   ----
<S>                                                                            <C>                    <C>
OPERATING ACTIVITIES:
     Net income                                                                $     743,365          $ 153,688,575
     Adjustments to reconcile net income to net cash provided
     by operating activities:
       Depreciation and amortization of real estate                                       --                536,818
       Gain on sale of real estate                                                  (138,235)          (150,500,239)
       Amortization of deferred leasing commissions                                       --                232,161
       Changes in operating assets and liabilities:
        Decrease in due from managing agent                                          525,148              2,237,301
        Decrease in receivables                                                           --                361,993
        Decrease in other assets                                                      42,209                232,294
        Decrease in accounts payable                                                 (26,767)              (475,621)
        Increase in accrued real estate taxes                                         59,757                 90,531
        Decrease in accrued interest                                                      --                (29,278)
        Decrease in sundry liabilities and other accrued expenses                    (75,804)              (648,684)
        Decrease in deposits and rents received in advance                                --             (1,696,853)
                                                                               -------------          -------------

        Net Cash Provided By Operating Activities                                  1,129,673              4,028,998
                                                                               -------------          -------------

INVESTING ACTIVITIES:
     Property improvements                                                                --             (1,477,097)
     Net proceeds from sale of real estate                                            95,583            165,952,915
                                                                               -------------          -------------
         Net Cash Provided By Investing Activities                                    95,583            164,475,818
                                                                               -------------          -------------

FINANCING ACTIVITIES:
     Distributions of net operating revenues to General
       Partners, Special Limited Partners and Limited Partners                    (9,108,231)          (234,979,781)
     Principal payments on mortgage payable                                               --             (4,000,000)
                                                                               -------------          -------------
         Net Cash Used in Financing Activities                                    (9,108,231)          (238,979,781)
                                                                               -------------          -------------

Decrease in Cash and Cash Equivalents                                             (7,882,975)           (70,474,965)

Cash and Cash Equivalents at beginning of period                                   9,514,349             79,770,013
                                                                               -------------          -------------

Cash and Cash Equivalents at end of period                                     $   1,631,374          $   9,295,048
                                                                               =============          =============

Supplemental disclosure of cash flow information:

   Cash paid during the period for interest                                    $          --          $      72,862
                                                                               =============          =============
</TABLE>

See accompanying notes to financial statements.


                                      -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  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, 2000, 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,  2001 and the
results of operations  for the three and nine month periods ended  September 30,
2001 and 2000.

NOTE 3

The results of operations  for the three and nine month periods ended  September
30, 2001 and 2000 are not  necessarily  indicative of the results to be expected
for the full year.

NOTE 4 - Taxes

The net (loss)  income for Federal  income tax purposes is $(16,783)  (September
30, 2001) and  $146,390,123  (September 30, 2000) as compared with net income of
$743,365  and  $153,688,575   respectively,   as  shown  in  the  statements  of
operations.  The  differences  result  principally  from (i) rents  received  in
advance and recognized  currently for income tax purposes,  and (ii) differences
in  depreciation  expense  and gain on the sale of real  estate  resulting  from
differences  in the  basis  of  real  estate  for tax  and  financial  reporting
purposes.

NOTE 5 - Sale of Property

On July 11, 2001 the Company  sold its  undeveloped  land in Houston,  Texas for
$100,000.  The  sales  proceeds  were  used  to  pay  closing  costs  and  other
commitments of  approximately  $5,000.  In connection with the sale, the Company
recognized a gain for financial reporting purposes of approximately $95,000.

NOTE 6 - Distributions to Partners

On July 18,  2001,  the Company  paid a special  dividend of  $5,200,000  to its
General and Special  Limited  Partners  and holders of record as of the close of
business on July 6, 2001 of its participations of Limited Partnership  Interests
from its available  cash. In accordance with the Company's  Limited  Partnership
Agreement,  one-half  of the net  proceeds  was  distributed  to the General and
Special Limited  Partners and one-half to the holders of its  participations  of
Limited Partnership Interests.

NOTE 7 - Subsequent Event

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.  However,  there  can be no  assurances  that such sale will be
consummated.


                                      -6-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
                        (A New York Limited Partnership)

ITEM 2.

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

Gross revenue from rentals for 2001 decreased  approximately 100% as compared to
2000. The decrease was primarily due to the sale of the 1328 Broadway, 261 Fifth
Avenue and 245 Fifth Avenue properties which occurred during 2000. Gross revenue
from  real  estate  in  2001  related  to  the  settlement  of  certain  closing
adjustments  relating  to the  sales of the  aforementioned.  As a result of the
aforementioned  property sales, in 2001 the Company's  properties consist of two
parcels of undeveloped  land located in Houston,  Texas (which were sold on July
11, 2001) and a vacant office property located at 570 Broad Street,  Newark, New
Jersey  (which  is  under  contract  for  sale,   subject  to  certain   closing
conditions), neither of which are currently generating any rental income.

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

The real estate tax refund was  attributable  to the  settlement  in 2001 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 real estate taxes and other expenses in 2001 as compared to 2000
is principally  attributable to the sale of the 1328 Broadway,  261 Fifth Avenue
and 245 Fifth Avenue properties, which occurred in 2000.

The decrease in interest expense was due to the repayment of mortgage  principal
balance in 2000 upon the sale of the 1328 Broadway property.

The decrease in depreciation and amortization of real estate was due to the sale
of the 1328 Broadway,  261 Fifth Avenue and 245 Fifth Avenue properties in 2000.
The Company's  remaining office property located in Newark,  New Jersey is being
held as vacant. Accordingly, no depreciation is being recorded.

On July 18,  2001,  the Company  paid a special  dividend of  $5,200,000  to its
General and Special  Limited  Partners  and holders of record as of the close of
business on July 6, 2001 of its participations of Limited Partnership  Interests
from its available  cash. In accordance with the Company's  Limited  Partnership
Agreement,  one-half  of the net  proceeds  was  distributed  to the General and
Special Limited  Partners and one-half to the holders of its  participations  of
Limited Partnership Interests.

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.  However,  there  can be no  assurances  that such sale will be
consummated.


                                      -7-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        --------------------------------
                        (A New York Limited Partnership)

ITEM 3.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At September  30, 2001,  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.


                                      -8-
<PAGE>

                           PART II. OTHER INFORMATION

ITEM 6.

                        EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

None.

(b)   Reports on Form 8-K

On October 24, 2001, the Registrant  filed a Current Report on Form 8-K relating
to the sale of its 570 Broad  Street,  Newark,  New  Jersey  property,  which is
subject to certain closing conditions.

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


                                      -9-
<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

Dated: December 4, 2001


                                      -10-