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 September 30, 1997       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 10
                                     
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                        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 & 7

         Management's Discussion and Analysis
           of Financial Condition and
           Results of Operations                                           8



PART 2: Other Information                                                  9

SIGNATURES                                                                10


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                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS
                 AS AT SEPTEMBER 30, 1997 AND DECEMBER 31, 1996


                                                   SEPTEMBER 30,   DECEMBER 31,
                                                       1997           1996
                                                   -------------   ------------
                                                   (Unaudited)        (Note)   
ASSETS

Real estate, at cost ...........................   $129,740,300    $138,214,361
  Less: Accumulated depreciation and             
         amortization ..........................     88,586,251      95,710,079
                                                   ------------    ------------
                                                     41,154,049      42,504,282

Cash and cash equivalents ......................      2,216,566       5,187,591
Due from managing agent (Helmsley-Spear, Inc.)   
  including tenants' security deposits of        
  $1,804,738 (1997) and $1,587,384 (1996) ......      2,202,476       2,081,585
Receivables, principally from rentals ..........      1,503,715       1,443,576
Other deferred charges including deferred        
  leasing commissions ..........................      5,983,486       4,304,324
                                                   ------------    ------------
                                                   $ 53,060,292    $ 55,521,358
                                                   ============    ============
                                                 
LIABILITIES AND PARTNERS' CAPITAL/DEFICIENCY     
                                                 
Accounts payable ...............................   $  2,913,809    $  2,755,221
Accrued real estate taxes ......................      3,680,499       4,630,585
Accrued Interest ...............................        375,094         396,153
Distributions payable to General Partners,       
  Special Limited Partners and Limited Partner .     16,384,184      20,889,097
Sundry liabilities and other accrued expenses ..      3,349,033       3,439,050
Note payable to related parties ................     18,000,000      18,000,000
Mortgages payable (Note 5) .....................     37,347,488      40,314,558
Deposits and rents received in advance .........      1,924,894       1,946,639
                                                   ------------    ------------
                                                     83,975,001      92,371,303
                                                   ------------    ------------
                                                 
Partners' Capital (Deficiency):                  
  General Partners .............................     (9,015,424)     (8,388,913)
  Special Limited Partners .....................    (40,867,486)    (44,098,397)
  Limited Partner (represented by the equivalent 
    of 820,000 Participation Interests) ........     18,968,201      15,637,365
                                                   ------------    ------------
                                                    (30,914,709)    (36,849,945)
                                                   ------------    ------------
                                                   $ 53,060,292    $ 55,521,358
                                                   ============    ============
                                                

Note: The balance sheets at December 31, 1996 has been derived from the audited
      financial statements at that date.

See notes to financial statements


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                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                             STATEMENT OF OPERATIONS
                                    (Note 1)
<TABLE>
<CAPTION>

                                                        FOR THE NINE MONTHS ENDED      FOR THE THREE MONTHS ENDED
                                                      -----------------------------   -----------------------------
                                                      SEPTEMBER 30,   SEPTEMBER 30,   SEPTEMBER 30,   SEPTEMBER 30,
                                                           1997           1996            1997            1996
                                                      -------------   -------------   -------------   -------------
<S>                                                    <C>             <C>             <C>             <C>        
Revenues:                                                                                        
Gross revenues from real estate .....................   $35,298,912     $38,183,981     $11,450,991    $12,104,451
Interest ............................................        85,049          48,565          20,558          8,996
                                                        -----------     -----------     -----------    -----------
                                                         35,383,961      38,232,546      11,471,549     12,113,447
                                                        -----------     -----------     -----------    -----------
Expenses:                                                                                                         
Leasehold rentals ...................................       430,446         780,419         135,083        148,884
Real estate taxes ...................................     7,172,221       7,645,222       2,398,918      2,234,378
Interest on mortgages ...............................     3,538,539       3,701,729       1,153,330      1,196,937
Other Expenses ......................................    14,969,149      17,457,555       4,948,368      5,658,964
Co-owners share of income ...........................        44,317          38,142          21,769          4,576
Depreciation and amortization of real estate ........     2,255,659       2,460,668         710,972        788,977
Amortization of mortgage refinancing costs ..........        47,623         147,411          22,186         49,137
                                                        -----------     -----------     -----------    -----------
                                                         28,457,954      32,241,146       9,390,626     10,081,853
                                                        -----------     -----------     -----------    -----------
Income before items shown below .....................     6,926,007       5,991,400       2,080,923      2,031,594
Loss on Lease Assignment ............................      (711,522)
Loss on Sale of Real Estate .........................       (14,913)                        (14,913)
Loss on Ground Lease Termination ....................                      (752,646)                      (752,646)         
                                                        -----------     -----------     -----------    -----------
                                                          6,199,572       5,238,754       2,066,010      1,278,948
                                                        -----------     -----------     -----------    -----------
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 .......       253,086         267,276          82,968         85,847
                                                        -----------     -----------     -----------    -----------
                                                            264,336         278,526          86,718         89,597
                                                        -----------     -----------     -----------    -----------
NET INCOME TRANSFERRED TO PARTNERS'                                                                               
  CAPITAL ACCOUNTS ..................................   $ 5,935,236     $ 4,960,228     $ 1,979,292    $ 1,189,351
                                                        ===========     ===========     ===========    ===========
Net Income (loss) allocable as follows (based on                                                                         
  terms of the Limited Partnership Agreement):                                                                    
  General Partners ..................................   $  (626,511)    $  (666,953)    $    14,999    $  (723,517)
  Special Limited Partners ..........................     3,230,911       2,770,744         967,190        941,869
  Limited Partner (represented by the equivalent                                                                  
    of 820,000 Participation Interests - unchanged                                                                
    during the periods) .............................     3,330,836       2,856,437         997,103        970,999
                                                        -----------     -----------     -----------    -----------
                                                        $ 5,935,236     $ 4,960,228     $ 1,979,292    $ 1,189,351
                                                        ===========     ===========     ===========    ===========
Per Participation Interest:                                                                                       
Net Income ..........................................   $    4.0620      $   3.4835     $    1.2160    $    1.1842
                                                        ===========     ===========     ===========    ===========
</TABLE>                                                                     

See notes to financial statements
                                                          

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<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                    UNAUDITED
                             STATEMENT OF CASH FLOWS
       FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996

<TABLE>
<CAPTION>

                                                                  1997              1996
                                                                  ----              ----
<S>                                                          <C>               <C>        
OPERATING ACTIVITIES:
  Net income .............................................   $ 5,935,236      $ 4,960,228 
  Adjustments to reconcile net income to net                                  
  cash provided by operating activities:                                      
    Depreciation and amortization of real estate .........     2,255,659        2,460,668
    Amortization of mortgage refinancing costs ...........        47,623          147,411 
    Loss on Lease Assignment..............................       711,522
    Loss on Sale of Real Estate ..........................        14,913         
    Loss on ground lease termination .....................                        752,646             
    Amortization of deferred leasing commissions .........       818,379          831,376 
    Changes in operating assets and liabilities:                              
      (Increase) Decrease in due from managing agent .....      (120,891)         897,124 
      (Increase) in receivables...........................       (60,139)         (51,738)
      (Increase) in other deferred charges ...............    (2,132,923)      (3,322,043)
      Increase in accounts payable .......................       158,588        1,387,515 
      (Decrease) in accrued real estate tax ..............      (950,086)        (886,080) 
      (Decrease)  in accrued interest ....................       (21,060)         (49,363)
      (Decrease) Increase in sundry and other accrued 
        expenses .........................................       (92,646)         319,975 
      (Decrease) Increase in deposits and rents received                                 
        in advance .......................................       (21,745)         184,146 
                                                             -----------      ----------- 
         Net Cash Provided by Operating Activities .......     6,542,430        7,631,865 
                                                             -----------      ----------- 
INVESTING ACTIVITIES:                                                         
  Property improvements...................................    (2,044,101)      (2,649,623)
                                                             -----------      ----------- 
FINANCING ACTIVITIES:                                                         
  Distributions of net operating revenues to General                          
   Partners, Special Limited Partners and Limited Partners    (4,502,284)      (5,174,816)
  Principal payments on mortgage payable .................    (2,967,070)      (2,536,193)
                                                             -----------      ----------- 
         Net Cash (Used in)                                                   
          Financing Activities ...........................    (7,469,354)      (7,711,009)
                                                             -----------      ----------- 
         (Decrease) in Cash and Cash Equivalents .........    (2,971,025)      (2,728,767)
                                                                              
Cash and Cash Equivalents at Beginning of Year ...........     5,187,591        3,090,409 
                                                             -----------      ----------- 
Cash and Cash Equivalents at End of Year .................   $ 2,216,566      $   361,642 
                                                             ===========      =========== 

Supplemental disclosure of cash flow information:                             
  Cash paid during the year for interest .................   $ 3,559,599      $ 3,751,092 
                                                             ===========      =========== 
</TABLE>                                                                      

                                                                              
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<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, 1996, 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,
1997 and 1996, and the results of operations for the nine months then ended.

NOTE 3

     The results of operations for the nine months ended September 30, 1997 and
1996 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 $6,538,067 (September 30,
1997) and $4,912,470 (September 30, 1996) as compared with net income of
$5,935,236 and $4,960,228 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, 1997, Investment Properties
Associates made amortization payments of $2,967,070. These included $25,816 of
regular quarterly scheduled mortgage reductions, $2,500,000 in reduction of the
Chase mortgage, and $441,254 to First Union National Bank.

     On July 14, 1997, as part of a workout with First Union National Bank, the
holder of the first mortgage on the property located at 24 Commerce Street,
Newark, N.J., IPA transferred title to the property to an unrelated entity. IPA
was relieved of liability for the outstanding balance of the mortgage loan
($441,254) and received a full release from any future liability with respect to
the mortgage loan. As of the date of the transfer, IPA was incurring losses of
approximately $30,000 per month and anticipated that the deficits would increase
in the coming months. The capital loss arising from this transaction is $65,573
for federal income tax purposes as compared with $14,913 for financial statement
purposes.


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

               NOTES TO UNAUDITED FINANCIAL STATEMENTS (Continued)


Note 6 - Lease Assignment

     On June 1, 1997 IPA assigned to an unrelated party its position as ground
tenant under its lease with the City of Newark, New Jersey on the property
located at 1180 Raymond Blvd. in Newark. As a consequence of the transaction,
IPA is relieved of liability for ground lease rent and real estate taxes on the
property from and after June 1, 1997. As of the date of the assignment of the
ground lease, IPA was incurring operating losses of approximately $65,000 per
month with respect to 1180 Raymond Blvd. For federal income tax purposes, the
capital loss arising from this transaction is $739,889 as compared with $711,52
for financial statement purposes.


                                      -7-
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                        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 1997 decreased approximately 7.56% as
compared to 1996. The decrease was due primarily to a ground lease termination
at 744 Broad Street, 1180 Raymond Blvd. Building sale of 24 Commerce Building
and all tenants vacating the 570 Broad Street building in Newark, New Jersey.

     The decrease in other expenses in 1997 as compared to 1996 is principally
attributable to the reduction of number of buildings in operation as described
above, decrease in security labor, heating cost, building repairs, cleaning and
electric.

     The decrease in real estate taxes was attributable primarily to decreases
in real estate assessments for properties located in New York City, ground lease
termination at 744 Broad Street building, 1180 Raymond Blvd. Building and sale
of 24 Commerce building offset by the increase in Chicago properties.

     The decrease in leasehold rentals was due to the ground lease termination
at 744 Broad Street building and 1180 Raymond Blvd. building.

     The decrease in interest expense was due to the reduction in mortgage
principal balance. The decrease in depreciation and amortization of real estate
was primarily due to the ground lease termination at 744 Broad Street building,
1180 Raymond Blvd. building and 24 Commerce building.

     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.


                                      -8-
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                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

PART 2 - OTHER INFORMATION

                                      None


                                        -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
                                                       (Registrant)

December 12, 1997

                                            /s/ Irving Schneider
                                            ------------------------------------
                                                      (Signature)
                                            IRVING SCHNEIDER
                                            General and Special Limited Partner


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