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 June 30, 2000

                                       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                (IRS Employer Identification No.)
Incorporation or organization)

                     60 East 42nd Street, New York, New York
                    (Address of principal executive offices)

                                      10165
                                   (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.

Yes |x|      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 Participation in Limited Partnership Interest.


                                      -1-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                      INDEX

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

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

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

         Signatures                                                      10
         ----------

                                      -2-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS

                    AS AT JUNE 30, 2000 AND DECEMBER 31, 1999

                                              June 30, 2000    December 31, 1999
                                              -------------    -----------------
ASSETS                                         (Unaudited)          (Note)

Real estate, at cost                          $   8,481,240     $  41,215,769
  Less: Accumulated depreciation
    and amortization                              5,759,015        26,391,697
                                              -------------     -------------
                                                  2,722,225        14,824,072
  Less: Allowance for loss on
    impairment of real estate                       565,809           565,809
                                              -------------     -------------
                                                  2,156,416        14,258,263
Cash and cash equivalents                        11,355,394        79,770,013
Due from managing agent (Helmsley-Spear,
  Inc.) including tenants' security
  deposits of $1,513,718 (2000) and
  $1,963,001 (1999)                               2,119,100         2,858,418
Receivables, principally from rentals               105,239           467,233
Other deferred charges including
  deferred leasing commissions                    3,358,254         5,257,104
                                              -------------     -------------
                                              $  19,094,403     $ 102,611,031
                                              =============     =============
LIABILITIES AND PARTNERS' CAPITAL
  (DEFICIENCY)
Accounts payable                              $     319,721     $     678,177
Accrued real estate taxes                         1,485,161         1,480,861
Accrued interest                                      --               29,278
Distributions payable to General
  Partners, Special Limited
  Partners and Limited Partners                   2,007,313        77,979,781
Sundry liabilities and other
  accrued expenses                                  507,034         1,142,546
Mortgages payable                                     --            4,000,000
Deposits and rents received
  in advance                                      1,513,718         1,696,853
                                              -------------     -------------
                                                  5,832,947        87,007,496
                                              =============     =============
Partners' Capital (Deficiency):

  General Partners                               (2,639,696)       (2,683,508)
  Special Limited Partners                       (9,704,660)      (13,643,808)
  Limited Partners (represented by
    the equivalent of 820,000
    Participation Interests)                     25,605,812        31,930,851
                                              -------------     -------------
                                                 13,261,456        15,603,535
                                              -------------     -------------
                                              $  19,094,403     $ 102,611,031
                                              =============     =============

Note:    The balance sheets at December 31, 1999 have 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)

                            STATEMENTS OF OPERATIONS
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                  For the six months ended            For the three months ended
                                                                  ------------------------            --------------------------
                                                              June 30, 2000      June 30, 1999      June 30, 2000      June 30, 1999
                                                              -------------      -------------      -------------      -------------
<S>                                                            <C>                <C>                <C>                <C>
Revenues:
---------
Gross revenues from real estate                                $  5,854,474       $ 15,743,510       $  1,797,052       $  7,849,392
Interest                                                            953,677            273,184            481,061            108,373
                                                               ------------       ------------       ------------       ------------
                                                                  6,808,151         16,016,694          2,278,113          7,957,765
                                                               ------------       ------------       ------------       ------------
Expenses:
---------
Real estate taxes                                                   641,737          2,375,592            210,567          1,165,818
Interest on mortgages                                                43,584            877,081              --               431,196
Other expenses                                                    2,309,974          4,878,407            688,336          2,421,479
Depreciation and amortization of real estate                        477,149            918,689            163,317            456,643
Amortization of mortgage refinancing costs                            --                 1,593              --                 --
                                                               ------------       ------------       ------------       ------------
                                                                  3,472,444          9,051,362          1,062,220          4,475,136
                                                               ============       ============       ============       ============
Income before items shown below                                   3,335,707          6,965,332          1,215,893          3,482,629
Gain on sale of real estate                                     151,381,339          5,621,956        113,892,265          5,621,956
                                                               ------------       ------------       ------------       ------------
Income before guaranteed payments required under the
Limited Partnership Agreement                                   154,717,046         12,587,288        115,108,158          9,104,585
                                                               ------------       ------------       ------------       ------------
Guaranteed Payments required under the Limited
Partnership Agreement:
To the Limited Partner                                                3,750              7,500              --                 3,750
To the General and Special Limited Partners                          55,375            126,972              7,500             63,486
                                                               ------------       ------------       ------------       ------------
                                                                     59,125            134,472              7,500             67,236
                                                               ------------       ------------       ------------       ------------
Net income transferred to Partners' Capital
Account                                                        $154,657,921       $ 12,452,816       $115,100,658       $  9,037,349
                                                               ============       ============       ============       ============
Net income allocable as follows (based on
terms of the Limited Partnership Agreement):
General Partners                                               $    907,312       $    186,792       $    674,149       $    135,560
Special Limited Partners                                         81,575,648          6,039,616         60,612,180          4,383,115
Limited Partner (represented by the equivalent
of 820,000 Participation Interests - unchanged
during the periods)                                              72,174,961          6,226,408         53,814,329          4,518,674
                                                               ------------       ------------       ------------       ------------
                                                               $154,657,921       $ 12,452,816       $115,100,658       $  9,037,349
                                                               ============       ============       ============       ============
Per Participation Interest:
Net income                                                     $    88.0182       $     7.5932       $    65.6272       $     5.5106
                                                               ============       ============       ============       ============
</TABLE>

See Notes to Financial Statements.


                                      -4-
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                             STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

            For The Six Months Ended June 30, 2000 And June 30, 1999

                                                     2000              1999
                                                     ----              ----
OPERATING ACTIVITIES:
Net Income                                      $ 154,657,921     $  12,452,816

Adjustments to reconcile net
income to net cash provided by
operating activities:

  Depreciation and amortization
  of real estate                                      477,149           918,689

  Gain on sale of real estate                    (151,381,339)       (5,621,956)
  Amortization of deferred leasing
  commissions                                         183,703           399,546
  Changes in operating assets and
  liabilities:
    Decrease (increase) in due
    from managing agent                               739,318        (2,159,929)
    Decrease (increase) in receivables                361,994          (486,981)
    (Increase) in other deferred charges             (635,735)         (779,374)
    (Decrease) in accounts payable                   (358,456)          (94,617)
    Increase (decrease) in accrued real
    estate tax                                          4,300        (1,492,449)
    (Decrease) in accrued interest                    (29,278)          (14,893)
    (Decrease) in sundry and other
    accrued expenses                                 (635,512)       (1,266,041)
    (Decrease) in deposits and rents
    received in advance                              (183,135)         (164,716)
                                                -------------     -------------
      Net cash provided by operating
      activities                                    3,200,930         1,690,095
                                                -------------     -------------
INVESTING ACTIVITIES:
  Property improvements                              (595,997)         (924,684)
  Net proceeds from sale of real
  estate                                          165,952,915         6,140,675
                                                -------------     -------------
      Net cash provided by investing
      activities                                  165,356,918         5,215,991
                                                -------------     -------------
FINANCING ACTIVITIES:
  Distributions to General Partners,
  Special Limited Partners and
  Limited Partners                               (232,972,467)      (10,802,646)
  Principal payments on mortgage
  payable                                          (4,000,000)       (2,000,000)
                                                -------------     -------------
      Net cash (used in) financing
      activities                                 (236,972,467)      (12,802,646)
                                                -------------     -------------
      Decrease in cash and cash
      equivalents                                 (68,414,619)       (5,896,560)

  Cash and cash equivalents at
  beginning of period                              79,770,013        13,831,031
                                                -------------     -------------
  Cash and cash equivalents at
  end of period                                 $  11,355,394     $   7,934,471
                                                =============     =============

  Supplemental disclosure of cash
  flow information:
      Cash paid during the period for
      interest                                  $      72,862     $     891,974
                                                =============     =============


                                      -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, 1999, 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 June 30, 2000
and 1999, and the results of operations for the three and six months then ended.
The results of  operations  for the three and six months ended June 30, 2000 are
not necessarily indicative of the results to be expected for the full year.

NOTE 3 - Taxes
--------------

      The net income for Federal income tax purposes is  $147,352,691  (June 30,
2000)  and  $12,026,369   (June  30,  1999)  as  compared  with  net  income  of
$154,657,921  and  $12,452,816  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 and gain on sales of properties resulting from differences
in the basis of real estate for tax and financial reporting purposes.

NOTE 4 - Sale of Properties
---------------------------

      On February  18,  2000,  IPA sold its 50%  undivided  interest in the 1328
Broadway  property for a sales price of  $43,500,000.  In  connection  with this
transaction,  IPA  recognized  a gain of  approximately  $36,930,406.  The sales
proceeds were used to repay IAP's $4,000,000 share of the outstanding  principal
balance of the Apple loan, sales  commissions of $1,646,168 paid to an affiliate
of one of  the  general  partners  and  other  closing  costs  of  approximately
$1,418,043. On January 18, 2000, IPA also declared a distribution of $37,000,000
to its  partners  using  the  proceeds  from the sale of 1328  Broadway  and the
remaining  proceeds from previous asset sales. An amount of $18,500,000 was paid
to the General  Partners  and  Special  Limited  Partners  in January,  2000 and
$18,500,000  was paid to the holders of  Participation  Interests  in  February,
2000.

      On May 8,  2000,  IPA sold  the 261  Fifth  Avenue  and 245  Fifth  Avenue
properties  for  $135,000,000.  The  sales  proceeds  were  used  to  pay  sales
commissions of $5,107,832  paid to an affiliate of one of the General  Partners,
closing costs of $4,375,042 and  distributions  of  $120,000,000  to the General
Partners, Special Limited Partners and Limited Partners. In connection with this
transaction, IPA recognized a gain of approximately $114,450,933.

      As a  result  of  these  sales,  IPA's  remaining  properties  consist  of
unimproved land at Edgewood Shopping Center and Bellway Shopping Center, both in
Houston,  Texas, and an office building located at 570 Broad Street, Newark, New
Jersey, which is currently vacant.


                                      -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 2000 decreased approximately 62.81% as compared
to 1999. The decrease was primarily due to the sale of the five New York
properties.

The increase in interest income was due to the proceeds received from the sale
of properties invested in Commercial Paper.

The decrease in Real Estate Taxes and other expenses in 2000 as compared to 1999
is principally attributable to the sale of the five New York properties.

The decrease in interest expense was due to the repayment of mortgage principal
balance.

The decrease in depreciation and amortization of real estate was due to the sale
of the five New York Properties and Midland Building.

Liquidity and Capital Resources -- IPA's cash generated from operations and from
the sale of properties provide it with the resources needed to meet its
anticipated obligations including operating expenses and required distributions
to partners.


                                      -7-
<PAGE>

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

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
           ----------------------------------------------------------

      Upon the repayment in January, 2000 of its sole remaining interest bearing
indebtedness  (related to its obligation for one-half of the $8 million mortgage
payable to Apple Bank which  bore  interest  at a fixed rate of 8 1/2  percent),
Registrant had  significantly reduced its exposure to interest rate risk. Should
Registrant elect to refinance any of its remaining properties,  Registrant would
seek to manage  its  interest  rate risk  through  the use of fixed rate debt or
interest rate  derivatives  in conjunction  with variable rate debt.  Registrant
believes that it can refinance its properties at commercially  reasonable rates,
although there can be no assurances in this regard.


                                      -8-
<PAGE>

                        Exhibits and Reports on Form 8-K

      (i)   On  May  10,  2000,  Registrant  filed  a  Current  Report  on  Form
8-K relating  to the completion  of the sale  of 245 Fifth Avenue  and 261 Fifth
Avenue, New York, N.Y. for $135,000,000

      (ii)  On April 25, 2000,  Registrant  filed a  Current  Report on Form 8-K
relating to the  contract  to sell 245 Fifth  Avenue and 261 Fifth  Avenue,  New
York, New York for $135,000,000.

      (iii) On April 13,  2000,  Registrant  filed a Current  Report on Form 8-K
relating to its  intention  to sell 245 Fifth Avenue and 261 Fifth  Avenue,  New
York, New York.

      (iv)  On February 15, 2000  Registrant  filed a Current Report on Form 8-K
relating to the sale of 1440 Broadway, New York, New York, for $152,000,000

      (v)   On January 21, 2000, Registrant  filed a Current  Report on Form 8-K
relating to the sale of 1328 Broadway, New York, New York for $43,500,000.


                                      -9-
<PAGE>

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

                                   SIGNATURES
                                   ----------

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, 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: October 13, 2000


                                      -10-