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, 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.



                                     - 1 -
<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>

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

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                                 BALANCE SHEETS

                    AS AT JUNE 30, 2001 AND DECEMBER 31, 2000

<TABLE>
<CAPTION>
                                                          JUNE 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                                    5,745,956          9,514,349
Due from managing agent (Helmsley-Spear, Inc.)                 687,768            730,578
Receivables, principally from rentals                           60,858              8,215
Other assets                                                   587,410            553,350
                                                           -----------        -----------
                                                           $ 9,235,299        $12,959,799
                                                           ===========        ===========

LIABILITIES AND PARTNERS' CAPITAL (DEFICIENCY)
----------------------------------------------

Accounts payable                                           $    92,031        $   113,368
Accrued real estate taxes                                        2,150             11,086
Distributions payable to General Partners,
   Special Limited Partners and Limited Partners                 7,214          3,915,446
Sundry liabilities and other accrued expenses                  317,410            394,918
                                                           -----------        -----------
                                                               418,805          4,434,818
                                                           -----------        -----------

Partners' Capital (Deficiency)

   General Partners                                         (2,463,794)        (2,465,397)
   Special Limited Partners                                  6,110,540          5,966,387
   Limited Partners (represented by the equivalent
      of 820,000 Participation Interests)                    5,169,748          5,023,991
                                                           -----------        -----------
                                                             8,816,494          8,524,981
                                                           -----------        -----------

                                                           $ 9,235,299        $12,959,799
                                                           ===========        ===========
</TABLE>

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

See notes to financial statements.


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<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, 2001   JUNE 30, 2000   JUNE 20, 2001   JUNE 30, 2000
                                                       -------------   -------------   -------------   -------------
<S>                                                       <C>          <C>               <C>            <C>
Revenues:
---------
Gross revenues from real estate                           $ 11,252     $  5,854,474      $   8,020      $  1,797,052
Real estate tax refund                                     660,495               --        143,457                --
Interest                                                   196,091          953,677         63,261           481,061
                                                          --------     ------------      ---------      ------------
                                                           867,838        6,808,151        214,738         2,278,113
                                                          --------     ------------      ---------      ------------

Expenses:
---------
Real estate taxes                                          118,565          641,737         82,912           210,567
Interest on mortgages                                           --           43,584             --                --
Other expenses                                             399,510        2,309,974        226,291           688,336
Depreciation and amortization of real estate                    --          477,149             --           163,317
                                                          --------     ------------      ---------      ------------
                                                           518,075        3,472,444        309,203         1,062,220
                                                          --------     ------------      ---------      ------------
Income (Loss) before items shown below                     349,763        3,335,707        (94,465)        1,215,893
Gain on sale of real estate                                     --      151,381,339             --       113,892,265
                                                          --------     ------------      ---------      ------------
                                                           349,763      154,717,046        (94,465)      115,108,158
                                                          --------     ------------      ---------      ------------
Payments required under the Limited
   Partnership Agreement:
   To the Limited Partners                                   7,500            3,750          3,750                --
  To the General and Special Limited Partners               50,750           55,375         25,375             7,500
                                                          --------     ------------      ---------      ------------
                                                            58,250           59,125         29,125             7,500
                                                          --------     ------------      ---------      ------------

Net income (Loss) transferred to Partners'
  Capital Accounts                                        $291,513     $154,657,921      $(123,590)     $115,100,658
                                                          ========     ============      =========      ============

Net income (Loss) allocable as follows (based on
terms of the Limited Partnership Agreement):
   General Partners                                       $  1,603     $  1,107,662      $    (680)     $    874,499
   Special Limited Partners                                144,153       99,588,882        (61,115)       78,625,414
   Limited Partner (represented by the equivalent
   of 820,000 Participation Interests - unchanged
   during the periods)                                     145,757       53,961,377        (61,795)       35,600,745
                                                          --------     ------------      ---------      ------------
                                                          $291,513     $154,657,921      $(123,590)     $115,100,658
                                                          ========     ============      =========      ============
Per Participation Interest:
  Net Income (Loss)                                       $ 0.1778     $    65.8066      $ (0.0753)     $    43.4155
                                                          ========     ============      =========      ============
</TABLE>

See notes to financial statements.


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<PAGE>

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

                      STATEMENTS OF CASH FLOWS (UNAUDITED)

            FOR THE SIX MONTHS ENDED JUNE 30, 2001 AND JUNE 30, 2000

<TABLE>
<CAPTION>
                                                                      2001             2000
                                                                      ----             ----
<S>                                                               <C>             <C>
OPERATING ACTIVITIES:
   Net income                                                     $   291,513     $ 154,657,921
   Adjustments to reconcile net income to net cash provided
   by operating activities:
      Depreciation and amortization of real estate                         --           477,149
      Gain on sale of real estate                                          --      (151,381,339)
      Amortization of deferred leasing commissions                         --           183,703
      Changes in operating assets and liabilities:
         Decrease in due from managing agent                           42,810           739,318
         (Increase) Decrease in receivables                           (52,643)          361,994
         (Increase) in other assets                                   (34,060)         (635,735)
         (Decrease) in accounts payable                               (21,337)         (358,456)
         (Decrease) Increase in accrued real estate tax                (8,936)            4,300
         (Decrease) in accrued interest                                    --           (29,278)
         (Decrease) in sundry liabilities and
           other accrued expenses                                     (77,508)         (635,512)
         (Decrease) in deposits and rents received in advance              --          (183,135)
                                                                  -----------     -------------
         Net Cash Provided By Operating Activities                    139,839         3,200,930
                                                                  -----------     -------------

INVESTING ACTIVITIES:
   Property improvements                                                   --          (595,997)
   Net proceeds from sale of real estate                                   --       165,952,915
                                                                  -----------     -------------
      Net Cash Provided By Investing Activities                            --       165,356,918
                                                                  -----------     -------------

FINANCING ACTIVITIES:

   Distributions of net operating revenues to General
      Partners, Special Limited Partners and Limited Partners      (3,908,232)     (232,972,467)
   Principal payments on mortgage payable                                  --        (4,000,000)
                                                                  -----------     -------------

      Net Cash Used in Financing Activities                        (3,908,232)     (236,972,467)
                                                                  -----------     -------------

      Decrease in Cash and Cash Equivalents                        (3,768,393)      (68,414,619)

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

Cash and Cash Equivalents at end of period                        $ 5,745,956     $  11,355,394
                                                                  ===========     =============

Supplemental disclosure of cash flow information:
   Cash paid during the period for interest                       $               $      72,862
                                                                  ===========     =============
</TABLE>

See notes to financial statements.


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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  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 June 30, 2001 and the results of
operations for the three and six month periods ended June 30, 2001 and 2000.

NOTE 3

The results of  operations  for the three and six month  periods  ended June 30,
2001 and 2000 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 $184,156  (June 30, 2001) and
$3,385,519  (June  30,  2000)  as  compared  with net  income  of  $291,513  and
$154,657,921  respectively,  as  shown  in the  statements  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 - Subsequent Events

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  $4,400.  In connection with the sale, the Company
recognized a gain for financial reporting purposes of approximately $95,500.

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.


                                     - 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  aforementioned  properties.  As a  result  of the
aforementioned  property sales, the Company's  properties consist of two parcels
of  undeveloped  land  located in Houston,  Texas and a vacant  office  property
located in Newark, New Jersey, none 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 other expenses and  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 and is currently held for sale.  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.


                                     - 7 -
<PAGE>

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

ITEM 3.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At  June  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 June 25, 2001,  Registrant filed a Current Report on Form 8-K relating to the
special  dividend of $5,200,000 paid on July 18, 2001 to its General and Special
Limited  Partners  and  holders of its  participations  of  Limited  Partnership
Interests.

On June 26, 2001,  Registrant  filed a Current  Report on Form 8-K/A relating to
the  special  dividend  of  $5,200,000  paid on July 18, 2001 to its General and
Special  Limited  Partners  and  holders  of  its   participations   of  Limited
Partnership Interests.

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:   September 10, 2001