FORM 10-Q

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

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

For the quarterly period ended June 30, 2002.

                                       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
incorporation or organization)                           Identification No.)

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

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

      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

                                    FORM 10-Q
                   For the Fiscal Quarter Ended June 30, 2002


                                      INDEX


                                                                            Page
                                                                            ----

PART I.   FINANCIAL INFORMATION...............................................1

Item 1.   Financial Statements................................................1

          Balance Sheets......................................................1

          Statements of Operations............................................2

          Statements of Cash Flows............................................3

          Notes to Unaudited Financial Statements.............................4

Item 2.   Management's Discussion and Analysis
          of Financial Condition and Results of
          Operations..........................................................5

Item 3.   Quantitative and Qualitative Disclosures About Market Risk..........6


PART II.  OTHER INFORMATION...................................................7

Item 6.   Exhibits and Reports on Form 8-K....................................7

          Signatures..........................................................8

                                      -i-


<PAGE>

                          PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                                 BALANCE SHEETS

                       JUNE 30, 2002 AND DECEMBER 31, 2001

                                               JUNE 30, 2002   DECEMBER 31, 2001
                                               -------------   -----------------
ASSETS                                          (Unaudited)         (Note)

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                         1,533,796          2,788,292
Due from managing agent
  (Helmsley-Spear, Inc.)                            233,184            229,291
Receivables                                           3,553              3,553
Other assets                                        442,988            457,515
                                                 ----------        -----------
                                                 $4,366,828        $ 5,631,958
                                                 ==========        ===========

LIABILITIES AND PARTNERS'
  CAPITAL (DEFICIENCY)

Accounts payable                                 $   17,085        $     7,903
Distributions payable to
  General Partners,
  Special Limited Partners
  and Limited Partners                                7,213            698,179
Sundry liabilities and
  other accrued expenses                            298,770            415,799
Deposits                                                 --          1,500,000
                                                 ----------        -----------
                                                    323,068          2,621,881
                                                 ----------        -----------
Partners' Capital (Deficiency)

  General Partners                               (2,489,521)        (2,495,206)
  Special Limited Partners                        3,797,448          3,286,292
  Limited Partners (represented
    by the equivalent of
    820,000 Participation Interests)              2,735,833          2,218,991
                                                 ----------        -----------
                                                  4,043,760          3,010,077
                                                 ----------        -----------

                                                 $4,366,828        $ 5,631,958
                                                 ==========        ===========

Note: The balance sheet at December 31, 2001 has been derived from the audited
      financial statements at that date.


See accompanying notes to financial statements.


                                       1
<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, 2002   JUNE 30, 2001   JUNE 30, 2002   JUNE 30, 2001
                                        -------------   -------------   -------------    -------------
<S>                                       <C>              <C>             <C>              <C>
Revenues:
Gross revenues from real estate           $       --       $ 11,252        $      --        $   8,020
Real estate tax refund                            --        660,495               --          143,457
Other income                               1,501,500             --            1,500               --
Interest                                      18,518        196,091            6,987           63,261
                                          ----------       --------        ---------        ---------
                                           1,520,018        867,838            8,487          214,738
                                          ----------       --------        ---------        ---------
Expenses:
Real estate taxes                            153,942        118,565           76,908           82,912
Other expenses                               274,143        399,510           88,976          226,291
                                          ----------       --------        ---------        ---------
                                             428,085        518,075          165,884          309,203
                                          ----------       --------        ---------        ---------
Income (loss) before items shown below     1,091,933        349,763         (157,397)         (94,465)
                                          ----------       --------        ---------        ---------
Guaranteed payments required
  under the Limited Partnership
  Agreement:
  To the Limited Partners                      7,500          7,500            3,750            3,750
  To the General and Special
    Limited Partners                          50,750         50,750           25,375           25,375
                                          ----------       --------        ---------        ---------
                                              58,250         58,250           29,125           29,125
                                          ----------       --------        ---------        ---------
Net income (loss) transferred to
  partners' capital accounts              $1,033,683       $291,513        $(186,522)       $(123,590)
                                          ==========       ========        =========        =========
Net income (loss) allocable as follows
  (based on terms of the Limited
Partnership Agreement):
  General Partners                        $    5,685       $  1,603        $  (1,026)       $    (680)
  Special Limited Partners                   511,156        144,153          (93,235)         (61,115)
  Limited Partners (represented by
    the equivalent of 820,000
    Participation Interests - unchanged
    during the periods)                      516,842        145,757          (93,261)         (61,795)
                                          ----------       --------        ---------        ---------
                                          $1,033,683       $291,513        $(186,522)       $(123,590)
                                          ==========       ========        =========        =========
Per Participation Interest:
  Net income (loss)                       $   0.6303       $ 0.1778        $ (0.1137)       $ (0.0753)
                                          ==========       ========        =========        =========
</TABLE>

See accompanying notes to financial statements.


                                       2
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

                      STATEMENTS OF CASH FLOWS (UNAUDITED)

            FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND JUNE 30, 2001

                                                         2002           2001
                                                         ----           ----
OPERATING ACTIVITIES:
  Net income                                         $ 1,033,683    $   291,513
  Adjustments to reconcile net
    income to net cash (used in)
    provided by operating activities:
      Changes in operating assets
        and liabilities:
      (Increase) decrease in due
        from managing agent                               (3,893)        42,810
      Increase in receivables                                 --        (52,643)
      Decrease (increase) in other assets                 14,527        (34,060)
      Increase (decrease) in accounts payable              9,182        (21,337)
      Decrease in accrued real estate taxes                   --         (8,936)
      Decrease in sundry liabilities and
        other accrued expenses                          (117,029)       (77,508)
      Decrease in deposits                            (1,500,000)            --
                                                     -----------    -----------
    Net cash (used in) provided by
      operating activities                              (563,530)       139,839
                                                     -----------    -----------
FINANCING ACTIVITIES:
  Distributions of net operating revenues
    and proceeds from sale of real
    estate to General Partners, Special
    Limited Partners and Limited Partners               (690,966)    (3,908,232)
                                                     -----------    -----------
      Decrease in cash and cash equivalents           (1,254,496)    (3,768,393)
Cash and cash equivalents at beginning
  of period                                            2,788,292      9,514,349
                                                     -----------    -----------
Cash and cash equivalents at end of period           $ 1,533,796    $ 5,745,956
                                                     ===========    ===========

See accompanying notes to financial statements.


                                       3
<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, 2001, 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, 2002 and the results of
operations for the three and six month periods ended June 30, 2002 and 2001.

NOTE 3

The results of operations for the three and six month periods ended June 30,
2002 and 2001 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 $926,327 (six months ended
June 30, 2002) and $184,156 (six months ended June 30, 2001) as compared with
net income of $1,033,683 and $291,513 respectively, as shown in the statements
of income. The differences result principally from depreciation expense which
continues to be recognized for tax purposes.

NOTE 5 - Other Income

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. In connection with the contract, the Company received
non-refundable deposits from the buyer in the amount of $1,500,000. In January
2002, due to the buyer's inability to satisfy the closing conditions, the
contract expired and the Company resumed marketing activities with respect to
the Property. The Company retained the non-refundable deposits from the buyer in
the amount of $1,500,000.


                                       4
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

ITEM 2.

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

As a result of the sales of the Company's remaining income producing properties
in 2000, the Company no longer derives income from rental operations. The
activity of the Company consists of marketing for sale its remaining non-income
producing property, a vacant office property located at 570 Broad Street,
Newark, New Jersey.

The real estate tax refund in 2001 was attributable to the settlement 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 interest income was due to the reduction of investments in
commercial paper as a result of the distributions made to partners during 2001
and 2002 of the net proceeds from the sales of properties.

The increase in real estate taxes in 2002 as compared to 2001 is principally
attributable to a tax refund received in 2001 for the 570 Broad Street property.

The decrease in other expenses in 2002 as compared to 2001 is principally
attributable to a decrease in professional fees.

Other income in 2002 relates principally to the Company's retention of a
non-refundable deposit in the amount of $1,500,000 received in 2001 from a
prospective buyer of the 570 Broad Street property pursuant to a contract to
sell the 570 Broad Street property, which was subject to certain closing
conditions. As a result of the prospective buyer's inability to satisfy the
closing conditions of the sales contract, the contract expired in accordance
with its terms in January of 2002, and the buyer's deposit was forfeited to the
Company. See Note 5 of the accompanying notes to the financial statements.

As of December 31, 2001, the Company had accrued (i) a special dividend of
$410,000 to its General Partners and Special Limited Partners and holders of
record of the PPI's as of the close of business on December 31, 2001 from its
available cash and (ii) a distribution in the amount of $280,965 in respect of
2001 net operating revenues. These amounts were paid during the six months ended
June 30, 2002.


                                       5
<PAGE>

                        INVESTMENT PROPERTIES ASSOCIATES
                        (A New York Limited Partnership)

ITEM 3.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

At June 30, 2002, 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.


                                       6
<PAGE>

                           PART II. OTHER INFORMATION

ITEM 6.

                        EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits

         Exhibit 99.1      Section 906 Sarbanes-Oxley Act of 2002 certification
                           of Mr. Irving Schneider as General Partner/Chief
                           Executive Officer

         Exhibit 99.2      Section 906 Sarbanes-Oxley Act of 2002 certification
                           of Mr. Robert Hecht as Chief Financial Officer

(b)      Reports on Form 8-K

None.

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


                                       7
<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

                                       By: /s/ Robert Hecht
                                           ------------------------------------
                                           Robert Hecht
                                           Chief Financial Officer

Dated: August 28, 2002


                                       8