FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


             [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended September 30, 1999

                                       OR

            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934


                         Commission file number: 0-14207


                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP
             (Exact name of registrant as specified in its charter)


                  California                                33-0016355
       (State or other jurisdiction of                   (I.R.S. Employer
       incorporation or organization)                  Identification  No.)

    400 South El Camino Real, Suite 1100
            San Mateo, California                           94402-1708
            (Address of principal                           (Zip Code)
             executive offices)


                                 (650) 343-9300
              (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.


                                Yes    X     No

       Total number of units outstanding as of September 30, 1999: 76,765




                                  Page 1 of 21
<PAGE>




PART I.             FINANCIAL INFORMATION


Item 1.             Financial Statements
<TABLE>
<CAPTION>

                                          RANCON REALTY FUND IV,
                                     A CALIFORNIA LIMITED PARTNERSHIP

                                        Consolidated Balance Sheets
                                    (in thousands, except unit amounts)


                                                                          September 30,     December 31,
                                                                               1999             1998
                                                                           (Unaudited)       (Audited)
                                                                         --------------   ---------------
<S>                                                                      <C>              <C>
Assets
Investments in real estate:
     Rental property, net of accumulated depreciation of
       $13,786 and $12,723 at September 30, 1999 and
       December 31, 1998, respectively                                   $      33,055    $       33,781
     Land held for development                                                   1,587             1,575
     Land held for sale                                                          2,481             2,741
                                                                         -------------    --------------

         Total real estate investments                                          37,123            38,097
                                                                         -------------    --------------

     Cash and cash equivalents                                                   4,646             4,297
     Restricted cash                                                               369               369
     Deferred financing costs and other fees, net of
       accumulated amortization of $1,413 and $1,195
       at September 30, 1999 and December 31, 1998,
       respectively                                                              1,325             1,312
     Prepaid expenses and other assets                                           1,224             1,434
                                                                         -------------    --------------

         Total assets                                                    $      44,687    $       45,509
                                                                         =============    ==============

Liabilities and Partners' Equity (Deficit)
Liabilities:
     Notes payable                                                       $      15,880    $       16,005
     Accounts payable and other liabilities                                        850               929
                                                                         -------------    --------------
       Total liabilities                                                        16,730            16,934
                                                                         -------------    --------------

Commitments and contingent liabilities (see Note 4)                                 --                --

Partners' Equity (Deficit):
     General partners                                                             (658)             (658)
     Limited partners, 76,765 and 76,767 limited partnership
       units outstanding at September 30, 1999 and December
       31, 1998, respectively                                                    28,615           29,233
                                                                         --------------   --------------
       Total partners' equity                                                   27,957            28,575
                                                                         -------------    --------------

           Total liabilities and partners' equity                        $      44,687    $       45,509
                                                                         =============    ==============


                              See accompanying notes to financial statements.
</TABLE>



                                  Page 2 of 21
<PAGE>


<TABLE>
<CAPTION>

                                         RANCON REALTY FUND IV,
                                    A CALIFORNIA LIMITED PARTNERSHIP

                                 Consolidated Statements of Operations
                     (in thousands, except per unit amounts and units outstanding)
                                              (Unaudited)


                                              Three months ended                Nine months ended
                                                September 30,                     September 30,
                                           --------------------------      ---------------------------
                                              1999             1998            1999             1998
                                           ----------      ----------      -----------      ----------
<S>                                        <C>             <C>             <C>              <C>
 Revenues:
   Rental income                           $    1,619      $    1,490      $     4,943      $    5,184
   Interest and other income                       40             129              150             152
   Gain on sale of rental property                 --              --               --           5,468
                                           ----------      ----------      -----------      ----------
      Total revenues                            1,659           1,619            5,093          10,804
                                           ----------      ----------      -----------      ----------

 Expenses:
   Operating                                      702             605            1,986           2,161
   Interest expense                               383             389            1,142           1,372
   Depreciation and amortization                  403             350            1,198           1,043
   Loss on sales of real estate                    --              --                4              11
   Expenses  associated  with
      undeveloped land                            121             115              339             395
   General and administrative                     250             313              749             939
   Proposed dissolution costs                     138              26              292              48
                                           ----------      ----------      -----------      ----------
      Total expenses                            1,997           1,798            5,710           5,969
                                           ----------      ----------      -----------      ----------

   Net income (loss)                       $     (338)     $     (179)     $      (617)     $    4,835
                                           ==========      ==========      ===========      ==========

 Net income (loss) per limited
   partnership unit                        $    (4.40)     $    (2.33)     $     (8.03)     $    59.36
                                           ==========      ==========      ===========      ==========

 Weighted average number of limited
   partnership units outstanding
   during each period used to compute
   net income (loss) per limited
   partnership unit
                                               76,765          76,784           76,765          76,849
                                           ==========      ==========      ===========      ==========
</TABLE>












                            See accompanying notes to financial statements.



                                  Page 3 of 21
<PAGE>



                             RANCON REALTY FUND IV,
                        A CALIFORNIA LIMITED PARTNERSHIP

              Consolidated Statement of Partners' Equity (Deficit)
                  For the nine months ended September 30, 1999
                                 (in thousands)
                                   (Unaudited)


                                             General    Limited
                                            Partners    Partners       Total
                                            --------   ----------   -----------

 Balance at December 31, 1998               $   (658)  $   29,233   $    28,575

 Retirement of limited partnership units          --           (1)           (1)

 Net loss                                         --         (617)         (617)
                                            --------   ----------   -----------

 Balance at September 30, 1999              $   (658)  $   28,615   $    27,957
                                            ========   ==========   ===========



































                 See accompanying notes to financial statements.



                                  Page 4 of 21
<PAGE>


<TABLE>
<CAPTION>

                                        RANCON REALTY FUND IV,
                                   A CALIFORNIA LIMITED PARTNERSHIP

                                Consolidated Statements of Cash Flows
                                            (in thousands)
                                             (Unaudited)


                                                                          Nine months ended
                                                                             September 30,
                                                                 ----------------------------------
                                                                      1999                  1998
                                                                 -------------         ------------
<S>                                                              <C>                   <C>
Cash flows from operating activities:
   Net income (loss)                                             $        (617)        $      4,835
   Adjustments to reconcile net income (loss)
     to net cash provided by operating activities:
       Net (gain) loss on sales of real estate                               4               (5,457)
       Depreciation and amortization                                     1,198                1,043
       Amortization of loan fees, included in
         interest expense                                                   82                   76
       Changes in certain assets and liabilities:
         Deferred financing costs and other fees                          (230)                (173)
         Prepaid expenses and other assets                                 210                  (95)
         Accounts payable and other liabilities                            (79)                 290
         Interest payable                                                   --                   (2)
                                                                 -------------         ------------

         Net cash provided by operating activities                         568                  517
                                                                 -------------         ------------

Cash flows from investing activities:
   Net proceeds from sales of land                                         296               15,847
   Net additions to real estate investments                               (389)              (1,128)
                                                                 -------------         ------------

         Net cash provided by (used for) investing activities              (93)              14,719
                                                                 -------------         ------------

Cash flows from financing activities:
   Notes payable principal payments                                       (125)              (5,960)
   Retirement of limited partnership units                                  (1)                 (95)
                                                                 -------------         ------------

         Net cash used for financing activities                           (126)              (6,055)
                                                                 -------------         ------------

Net increase in cash and cash equivalents                                  349                9,181

Cash and cash equivalents at beginning of period                         4,297                  788
                                                                 -------------         ------------

Cash and cash equivalents at end of period                       $       4,646         $      9,969
                                                                 =============         ============

Supplemental disclosure of cash flow information:
     Cash paid for interest                                      $       1,060         $      1,298
                                                                 =============         ============
</TABLE>






                           See accompanying notes to financial statements.



                                  Page 5 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


Note 1.     THE PARTNERSHIP AND ITS SIGNIFICANT ACCOUNTING POLICIES

In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the  "Sponsors"  or  "General  Partner")  and  Glenborough   Corporation,   the
Partnership's  asset and  property  manager  ("Glenborough"),  the  accompanying
unaudited consolidated financial statements contain all adjustments  (consisting
of only normal accruals)  necessary to present fairly the financial  position of
Rancon Realty Fund IV, A California Limited  Partnership (the  "Partnership") as
of  September  30,  1999  and  December  31,  1998,  and the  related  unaudited
consolidated  statements of operations  and cash flows for the nine months ended
September 30, 1999 and 1998.

Asset Sale and  Dissolution  Proposal - A Consent  Solicitation  Statement  (the
"Solicitation")   was  sent  to  the  holders  of  limited   partnership   units
("Unitholders"  or  "Limited  Partners")  on  July  6,  1999.  The  Solicitation
(incorporated  by reference to the Schedule 14A -  Preliminary  Proxy  Statement
filed with the United States Securities and Exchange  Commission  ("Commission")
in the second quarter of 1999), discussed the General Partner's proposal to sell
all of the  Partnership's  assets ("Asset  Sale") and liquidate the  Partnership
thereafter ("Dissolution Proposal"). The Partnership's properties consist of ten
rental  properties and approximately 23 acres of unimproved land in the Tri-City
Corporate Centre in San Bernardino,  California (the "Tri-City  Properties") and
an aggregate of  approximately  27 acres of unimproved land in Lake Elsinore and
Temecula, California (the "Remaining Properties"). The General Partner currently
intends to sell all of the  Partnership's  properties  within  approximately six
months after consent has been  obtained,  distribute  the proceeds and liquidate
the  Partnership  after  all of the  properties  are sold and the cash  proceeds
thereof  received.  The General Partner does not expect the Dissolution to occur
until at least  early  2000  (and  potentially  not  until  2001) as some of the
properties may be sold with the purchase price payable on an installment basis.

As of August 25, 1999,  the  expiration  of the voting  period,  76,765  limited
partnership  units ("Units") were outstanding.  Of the total Units  outstanding,
61,429  Unitholders,  or 80%,  have voted  ("Units  Voted") and no response  was
received  from the  remaining  20%.  A final  tabulation  of the  results of the
Solicitation  was made on August 25, 1999, with 54,010  Unitholders,  or 88%, of
the  Units  Voted  in  favor,  5,783  Unitholders,  or  9%,  against  and  1,636
Unitholders,  or 3%,  abstaining.

Subsequent  to  obtaining  the consent of the majority of the  Unitholders,  the
General  Partner  grouped the Tri-City  Properties  into two or more packages of
properties (such as separate  packages of retail  properties,  office properties
and unimproved  land) and included  properties in the Tri-City  Corporate Centre
which are owned by Rancon Realty Fund V ("Fund V"), a partnership also sponsored
by the  General  Partner.  Bidders  for any  package  of  properties  containing
Tri-City  Properties and Fund V properties will be required to specify how their
overall bid is allocated among the individual properties in the package, and the
proceeds  and expenses  from the sales of any such  package will be  apportioned
between  the  Partnership  and Fund V based upon such  allocation.  The  General
Partner hired an  independent  real estate firm to market the  properties and to


                                  Page 6 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


prepare  marketing  materials and  informational  brochures.  The  informational
brochures were presented to a number of prospective  buyers and as of the end of
September  1999,  the  General  Partner had  received 39 signed  confidentiality
agreements  requesting  offering  memorandums.  The General Partner is currently
assessing  all  offers on the  properties  in an effort to achieve  the  highest
possible sales price and return value for the  properties.  The General  Partner
currently  intends to close the bidding process by the end of November 1999. The
Remaining Properties will not be sold with the Tri-City Properties,  but will be
sold separately in a single or multiple sales.

The Partnership  has not, as of the date of the filing of this Quarterly  Report
on Form 10-Q with the Commission, entered into any agreement for the sale of its
Tri-City  Properties,   although  the  Partnership  has,  in  1997,  granted  to
Glenborough Realty Trust Incorporated,  a Maryland  corporation ("GLB"), a right
to match offers for the purchase of the Partnership's  properties ("GLB Matching
Right"). GLB is not an affiliate of the Partnership.

Pursuant to the GLB Matching Right and the right of first  refusal,  the General
Partner is required to give prompt  written notice to GLB of the price and other
terms and conditions of any offer,  received from an  unaffiliated  third party,
the  General  Partner  is  willing  to accept  to sell all or a  portion  of the
Partnership's  properties.  GLB has ten days after receipt of the  Partnership's
written  notice  to  accept or reject  the  purchase  price and other  terms and
conditions  of the sale.  If GLB  exercises  its  matching  right and  agrees to
purchase all or a portion of the Partnership's properties at the specified price
and on the other terms and  conditions,  the  Partnership  and GLB must promptly
execute a purchase agreement, which is to contain a reasonable feasibility study
period for GLB. If, on the other hand, GLB notifies the Partnership that it does
not intend to exercise its matching right or fails to respond within the ten-day
period,  then the  Partnership  has the  right to sell all or a  portion  of the
Partnership's  properties to the unaffiliated  third party buyer as set forth in
the Partnership's  notice to GLB. The GLB Matching Right applies to the Tri-City
Properties and the Remaining Properties.

Prior to the completion of the sale of all of the  Partnership's  properties and
the  receipt in cash of the  proceeds  thereof,  the General  Partner  currently
intends,  but is not  obligated,  to make interim  distributions  to the Limited
Partners,  from time to time,  of all or a portion of the net proceeds  from the
sale of the  properties.  The  General  Partner  will not receive any of the net
proceeds from the sale of the properties or upon  dissolution of the Partnership
with  respect to its general  partnership  interests.  The General  Partner also
intends to  distribute  in November  1999 the net proceeds from the January 1999
sale of the Perris land. See Note 3 below for further details.

Allocation  of Net Income and Net Loss - Allocation of net income and net losses
are made  pursuant to the terms of the  Partnership  Agreement.  Generally,  net
losses from  operations are allocated 99% to the limited  partners and 1% to the
general  partners until such time as a partner's  capital  account is reduced to
zero.  Additional  losses  will be  allocated  entirely to those  partners  with
positive capital account balances until such balances are reduced to zero.


                                  Page 7 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


Net income from  operations is allocated 90% to the limited  partners and 10% to
the general partners.  Net income other than net income from operations shall be
allocated as follows:  (i) first,  to the partners who have a deficit balance in
their capital account,  provided that, in no event shall the general partners be
allocated  more than 5% of the net income other than net income from  operations
until the earlier of sale or disposition of  substantially  all of the assets or
the distribution of cash (other than cash from operations)  equal to the limited
partner's  original  invested  capital;  (ii) second, to the limited partners in
proportion  to and to the  extent of the  amounts  required  to  increase  their
capital accounts to an amount equal to the sum of the adjusted  invested capital
of their units plus an additional cumulative  non-compounded 6% return per annum
(plus  additional  amounts  depending on the date units were  purchased);  (iii)
third,  to the partners in the minimum  amount  required to first equalize their
capital  accounts in proportion to the number of units owned, and then, to bring
the sum of the balances of the capital  accounts of the limited partners and the
general partners into the ratio of 4 to 1; and (iv) the balance,  if any, 80% to
the  limited  partners  and 20% to the general  partners.  In no event shall the
general  partners  be  allocated  less than 1% of the net income  other than net
income from operations for any period.

Management  Agreement - Effective January 1, 1995,  Glenborough  entered into an
agreement with the Partnership and other related Partnerships (collectively, the
"Rancon  Partnerships") to perform or contract on the Partnership's  behalf, for
financial,  accounting,  data processing,  marketing, legal, investor relations,
asset and development management and consulting services for the Partnership for
a period of ten years or until the  liquidation  of the  Partnership,  whichever
comes first.  Effective  January 1, 1998, the agreement was amended to eliminate
Glenborough's  responsibility  for  providing  investor  relations  services and
Preferred Partnership Services, Inc., a California Corporation unaffiliated with
the  Partnership,  contracted  to assume these  services.  In August  1998,  the
management agreement was further amended to provide Glenborough with a guarantee
of a specified amount of asset  management and property  management fees through
December 31, 1999, regardless of whether the Partnership sells any or all of its
properties  prior to such  date.  In  exchange,  Glenborough  waived any and all
claims  related to  liquidated  damages under the agreement to which it may have
otherwise been entitled.  According to the contract,  the  Partnership  will pay
Glenborough for its services as follows:  (i) a specified  asset  administration
fee which is fixed for five years subject to reduction in the year following the
sale of assets ($597,000 in 1999); (ii) sales fees of 2% for improved properties
and 4% for land;  (iii) a  refinancing  fee of 1%  ($49,750  in 1999) and (iv) a
management  fee of 5% of  gross  rental  receipts.  As part  of this  agreement,
Glenborough  will perform  certain duties for the General  Partner of the Rancon
Partnerships.  RFC  agreed to  cooperate  with  Glenborough  should  Glenborough
attempt to obtain a majority vote of the limited  partners to substitute  itself
as the Sponsor for the Rancon  Partnerships.  Glenborough is not an affiliate of
RFC or the Partnership.


                                  Page 8 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


Basis  of  Accounting  -  The  accompanying   unaudited  consolidated  financial
statements  have been  prepared on the accrual basis of accounting in accordance
with generally  accepted  accounting  principles  under the presumption that the
Partnership will continue as a going concern.

The  consent  of  the  Limited  Partners  to the  proposal  to  sell  all of the
Partnership's  properties  and  liquidate  the  Partnership  will not impact the
accounting  treatment  applied by the  Partnership  in its financial  statements
prepared in accordance  with  generally  accepted  accounting  principles as the
liquidation  proceeds and the timing  thereof are not currently  estimable.  The
Partnership  will classify as "held for use" or "held for  development",  all of
its operating and undeveloped  properties until such time as an acceptable buyer
is  identified  and an offer  which is  reasonably  assured of  consummation  is
obtained. At that time, the Partnership will reclassify the appropriate portions
of its  assets  to "held  for sale" and  depreciation  of those  assets  will be
discontinued.

When the sale  price and  timing of the last  property  disposal  is  reasonably
determinable,  the Partnership will adopt  liquidation  basis accounting in that
quarter.  At that time,  all assets and  liabilities  will be  adjusted to their
settlement  amounts  and  an  amount  to be  distributed  to the  partners  upon
liquidation will be estimated.

Consolidation  - In April 1996,  the  Partnership  formed  Rancon Realty Fund IV
Tri-City  Limited   Partnership,   a  Delaware  limited   partnership  ("RRF  IV
Tri-City").  As  required  by the  lender  (Bear,  Stearns  Funding,  Inc.) of a
$6,400,000 loan obtained by the Partnership in 1996, the Partnership contributed
three of its  operating  properties  to RRF IV Tri-City to provide a  bankruptcy
remote  borrower for the lender.  The loan,  secured by the properties in RRF IV
Tri-City,  has a principal  balance of  $6,220,000  at September  30, 1999,  and
matures  on May 1,  2006  with an  8.744%  fixed  interest  rate  and a  25-year
amortization  of  principal.  The  limited  partner  of RRF IV  Tri-City  is the
Partnership  and the general  partner is Rancon  Realty Fund IV, Inc.  ("RRF IV,
Inc."),  a corporation  wholly owned by the  Partnership.  Since the Partnership
owns 100% of RRF IV,  Inc.  and  indirectly  owns 100% of RRF IV  Tri-City,  the
financial  statements of RRF IV, Inc. and RRF IV Tri-City have been consolidated
with those of the Partnership.  All intercompany  balances and transactions have
been eliminated in the consolidation.

Reclassifications  - Certain  prior  year  balances  have been  reclassified  to
conform to the current year presentation.

Note 2. REFERENCE TO 1998 AUDITED FINANCIAL STATEMENTS

These unaudited  consolidated financial statements should be read in conjunction
with the Notes to Financial Statements included in the December 31, 1998 audited
consolidated financial statements.


                                  Page 9 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


Note 3.     SALE OF REAL ESTATE

On January 15, 1999, the Partnership sold approximately 17 acres of land located
in Perris, Riverside County,  California to an unaffiliated entity for $334,800.
The  Partnership  recognized  a $4,000 loss on the sale and the net  proceeds of
approximately $296,000 were added to the Partnership's  operating cash reserves,
pending distribution to the Limited Partners in November 1999.

Note 4.     COMMITMENTS AND CONTINGENT LIABILITIES

The Partnership is contingently  liable for subordinated real estate commissions
payable to the Sponsors in the  aggregate  amount of $643,000 at  September  30,
1999 for sales that transpired in previous years. The  subordinated  real estate
commissions   are  payable  only  after  the  Limited   Partners  have  received
distributions  equal  to  their  original  invested  capital  plus a  cumulative
non-compounded  return  of six  percent  per  annum on their  adjusted  invested
capital,  which is not expected to be achieved as a result of the Asset Sale. As
a result,  such  subordinated  real estate  commissions  will not be paid to the
General Partner and will be eliminated.

The Partnership is also  contingently  liable for a subordinated note payable in
connection  with  the  land  in  Temecula,   California,  that  the  Partnership
reacquired in June 1992 through a deed in lieu of foreclosure in satisfaction of
a $2,276,000 note receivable. The subordinated note payable and accrued interest
total $566,000 as of September 30, 1999. This amount is payable upon the sale of
the property  only after the  Partnership  receives the full amount of the prior
note receivable with accrued and unpaid interest, costs of development, costs of
sale,  and other amounts paid to obtain good title to the  property,  subject to
certain release  provisions.  Since the circumstances under which this liability
would be payable are  limited,  the note payable and accrued  interest  have not
been recorded in the accompanying  unaudited  consolidated financial statements;
however,  the amount will be recognized  prior to recording any gain on the sale
of the related land.

Note 5.     NOTES PAYABLE

Notes payable as of September 30, 1999 and December 31, 1998 were as follows (in
thousands):

                                                               1999        1998
                                                             -------     -------
Note payable secured by first deed of trust on Service
Retail Center, Promotional Retail Center and Carnegie
Business Center I. The loan, which matures May 1, 2006,
is a 10-year, 8.744% fixed rate loan with a 25-year
amortization requiring monthly payments of principal
and interest totaling $53.                                   $ 6,220     $ 6,290


                                 Page 10 of 21
<PAGE>


                             RANCON REALTY FUND IV,
                       A CALIFORNIA LIMITED PARTNERSHIP

                   Notes to Consolidated Financial Statements

                               September 30, 1999
                                   (Unaudited)


                                                               1999        1998
                                                             -------     -------
Note payable secured by first deed of trust on the IRC
building. Interest accrues at a fixed rate of 8.75% per
annum. Monthly payments of $21 of principal and interest
are due until the loan matures on April 23, 2001.              2,402       2,429

Note payable secured by first deed of trust on the One
Vanderbilt building. The note bears interest at a fixed
rate of 9% per annum. Monthly payments of $20 of principal
and interest are due until January 1, 2005, at which time
the unpaid principal and interest are payable in full.         2,258       2,286

Note payable secured by first deeds of trust on Circuit
City and TGI Friday's. Interest is payable monthly at one
percent(1%) per annum in excess of the lender's "Prime Rate"
until the loan matures on April 30, 2000, at which time the
unpaid principal and interest are due.                         5,000       5,000
                                                             -------     -------
Total notes  payable                                         $15,880     $16,005
                                                             =======     =======

Note 6.     PROPOSED DISSOLUTION COSTS

Costs totaling  $292,000 and $48,000,  related to the Solicitation and the Asset
Sale and Dissolution Proposal (as defined in Note 1), have been incurred and are
reflected in the accompanying  unaudited  consolidated  statements of operations
for the nine months ended September 30, 1999 and 1998, respectively. These costs
include expenses incurred for the preparation of the preliminary proxy materials
and charges for work performed by independent appraisers and other consultants.

Note 7.     SUBSEQUENT EVENTS

On October 6, 1999, the Partnership entered into a contract with an unaffiliated
third party buyer for the sale of one of the two parcels of  unimproved  land in
Temecula,  California  (referred to as Rancon Towne  Village) for $348,589.  The
sale is expected to close in December  1999.  The sale of a Rancon Towne Village
parcel is subject to the completion of due diligence,  property  inspections and
other  contingencies.  Thus,  there  is no  assurance  that  the  sale  will  be
completed.

On  October  13,  1999,  the  Partnership  executed  a letter of intent  with an
unaffiliated third party buyer for the sale of the 24.8 acres of unimproved land
in  Lake  Elsinore,   California  (referred  to  as  Lake  Elsinore  Plaza)  for
$2,450,000. The sale is expected to close in December 1999. The sale of the Lake
Elsinore  Plaza  is  subject  to  the  completion  of  due  diligence,  property
inspections and other  contingencies.  Thus, there is no assurance that the sale
will be completed.


                                 Page 11 of 21
<PAGE>


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

The following  discussion  addresses the  Partnership's  financial  condition at
September  30,  1999 and its  result of  operations  for the nine  months  ended
September 30, 1999 and 1998. This information should be read in conjunction with
the Partnership's  December 31, 1998 audited consolidated  financial statements,
notes thereto and other information contained elsewhere in this report.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 1999,  the  Partnership  had cash of  $4,646,000  (exclusive of
$369,000 in restricted cash). The remainder of the Partnership's  assets consist
primarily  of  its  net  investments  in  real  estate,  totaling  approximately
$37,123,000  at  September  30,  1999,  which  includes  $33,055,000  in  rental
properties,  $1,587,000 of land held for development and $2,481,000 of land held
for sale. The Partnership's primary liabilities include notes payable,  totaling
approximately  $15,880,000 at September 30, 1999,  which consist of four secured
loans  encumbering  properties with an aggregate net book value of approximately
$26,027,000  and maturity dates of April 30, 2000 and May 1, 2006.  Three of the
Partnership's notes payable require monthly principal and interest payments, and
bear interest  rates of 8.744% and 9%, while one note payable  requires  monthly
interest-only payments and bears interest at 1% over the lender's Prime Rate.

Operationally,  the  Partnership's  primary  source  of funds  consists  of cash
provided by its rental activities.  Other sources of funds may include permanent
financing,  property sales and interest income from invested cash balances. Cash
generated  from  property  sales is generally  added to the  Partnership's  cash
reserves,  pending use in the  development of properties or  distribution to the
partners.

Management  believes that the Partnership's  cash balance at September 30, 1999,
together with the cash from operations,  sales and financing, will be sufficient
to finance  the  Partnership's  and the  properties'  continued  operations  and
development  plans,  on a short-term  basis and for the  reasonably  foreseeable
future.  There can be no assurance that the Partnership's  results of operations
will not  fluctuate  in the future and at times  affect its  ability to meet its
operating requirements.

Aside  from  the  current  plan to  potentially  sell  all of the  Partnership's
properties and liquidate the Partnership (as discussed  below),  the Partnership
knows of no demands, commitments, events or uncertainties which might effect its
liquidity  or capital  resources  in any  material  respect.  In  addition,  the
Partnership  is not subject to any  covenants  pursuant to its secured debt that
would constrain its ability to obtain additional capital.

Operating Activities

During the nine months ended September 30, 1999, the Partnership's cash provided
by operating activities totaled $568,000.

The $210,000, or 15%, decrease in prepaid expenses and other assets at September
30, 1999,  compared to December 31, 1998, is due primarily to the  collection of


                                 Page 12 of 21
<PAGE>


approximately  $289,000 of December  31,  1998 tenant  receivables  in the first
quarter of 1999.  This  decrease was  slightly  offset by an increase due to the
prepayment  of  the  fourth  quarter  investor  relation  fees  and  the  annual
earthquake insurance premiums in September 1999.

The  $79,000,  or 9%,  decrease in accounts  payable  and other  liabilities  at
September  30,  1999,  compared to December 31,  1998,  is due  primarily to the
payment of December 31, 1998  accounts  payable  related to tenant  improvements
during the first half of 1999. The  construction of the tenant  improvements was
completed in May 1999. This decrease in accounts payable was partially offset by
an increase due to property tax accruals for the current  year.  Property  taxes
are paid in April and December of each year.

Investing Activities

During the nine months ended September 30, 1999, the Partnership's cash used for
investing  activities  totaled  $93,000,  which  includes  $296,000  of net cash
proceeds from sale of land and $389,000 cash used for additions to real estate.

The  Partnership  received net cash  proceeds of $296,000  from the January 1999
sale of  approximately  17  acres of  land,  referred  to as  Perris  land,  for
$334,800.  The  Partnership  added  the  sale  proceeds  to its  operating  cash
reserves,  pending  distribution  to the Limited  Partners in November 1999. The
$260,000,  or 9%, decrease in land held for sale at September 30, 1999, compared
to December 31, 1998, is due primarily to this sale.

The Partnership  invested,  by way of  improvements,  approximately  $337,000 in
rental properties, $12,000 in land held for development and $40,000 in land held
for sale.

Financing Activities

During the nine months ended September 30, 1999, the Partnership made a total of
$125,000 in principal payments on its four notes payable.

During  the  nine  months  ended  September  30,  1999,  a  total  of 2  limited
partnership units ("Units") were redeemed for approximately $1,000.

Asset Sale and Dissolution Proposal

The  Partnership's   business  strategy  has  been  to  focus  on  the  eventual
disposition  of its assets at the optimal time and sales price.  As discussed in
Note 1 of the Notes to Consolidated Financial Statements, a Consent Solicitation
Statement (the  "Solicitation")  was sent to the holders of limited  partnership
units  ("Unitholders")  on  July 6,  1999 . The  Solicitation  (incorporated  by
reference to the  Schedule  14A -  Preliminary  Proxy  Statement  filed with the
United States  Securities and Exchange  Commission  ("Commission") in the second
quarter of 1999),  discussed the General  Partner's  proposal to sell all of the
Partnership's  real estate assets ("Asset  Sale") and liquidate the  Partnership
thereafter ("Dissolution Proposal"). The Partnership's properties consist of ten
rental  properties and approximately 23 acres of unimproved land in the Tri-City
Corporate Centre in San Bernardino,  California (the "Tri-City  Properties") and
an aggregate of  approximately  27 acres of unimproved land in Lake Elsinore and
Temecula, California (the "Remaining Properties"). The General Partner currently
intends to sell all of the  Partnership's  properties  within  six months  after
consent has been obtained, distribute the proceeds and liquidate the Partnership


                                 Page 13 of 21
<PAGE>


after all of the properties are sold and the cash proceeds thereof received. The
General  Partner does not expect the  Dissolution  to occur until at least early
2000 (and potentially not until 2001) as some of the properties may be sold with
the purchase price payable on an installment basis.

As of August 25, 1999, the  expiration of the voting  period,  76,765 Units were
outstanding.  Of the total Units outstanding,  61,429 Unitholders,  or 80%, have
voted ("Units  Voted") and no response was received  from the  remaining  20%. A
final tabulation of the results of the Solicitation was made on August 25, 1999,
with 54,010 Unitholders, or 88%, of the Units Voted in favor, 5,783 Unitholders,
or 9%, against and 1,636  Unitholders,  or 3%,  abstaining.

Subsequent  to  obtaining  the consent of the majority of the  Unitholders,  the
General  Partner  grouped the Tri-City  Properties  into two or more packages of
properties (such as separate  packages of retail  properties,  office properties
and unimproved  land) and included  properties in the Tri-City  Corporate Centre
which are owned by Rancon Realty Fund V ("Fund V"), a partnership also sponsored
by the  General  Partner.  Bidders  for any  package  of  properties  containing
Tri-City  Properties and Fund V properties will be required to specify how their
overall bid is allocated among the individual properties in the package, and the
proceeds  and expenses  from the sales of any such  package will be  apportioned
between  the  Partnership  and Fund V based upon such  allocation.  The  General
Partner hired an  independent  real estate firm to market the  properties and to
prepare  marketing  materials and  informational  brochures.  The  informational
brochures were presented to a number of prospective  buyers and as of the end of
September  1999,  the  General  Partner had  received 39 signed  confidentiality
agreements  requesting  offering  memorandums.  The General Partner is currently
assessing  all  offers on the  properties  in an effort to achieve  the  highest
possible sales price and return value for the  properties.  The General  Partner
currently  intends to close the bidding process by the end of November 1999. The
Remaining Properties will not be sold with the Tri-City Properties,  but will be
sold in a single or multiple sales.

The Partnership  has not, as of the date of the filing of this Quarterly  Report
on Form 10-Q with the Commission, entered into any agreement for the sale of its
Tri-City  Properties,   although  the  Partnership  has,  in  1997,  granted  to
Glenborough Realty Trust Incorporated,  a Maryland  corporation ("GLB"), a right
to match offers for the purchase of the Partnership's  properties ("GLB Matching
Right"). GLB is not an affiliate of the Partnership.

Pursuant to the GLB Matching Right and the right of first  refusal,  the General
Partner is required to give prompt  written notice to GLB of the price and other
terms and conditions of any offer,  received from an  unaffiliated  third party,
the  General  Partner  is  willing  to accept  to sell all or a  portion  of the
Partnership's  properties.  GLB has ten days after receipt of the  Partnership's
written  notice  to  accept or reject  the  purchase  price and other  terms and
conditions  of the sale.  If GLB  exercises  its  matching  right and  agrees to
purchase all or a portion of the Partnership's properties at the specified price
and on the other terms and  conditions,  the  Partnership  and GLB must promptly
execute a purchase agreement, which is to contain a reasonable feasibility study
period for GLB. If, on the other hand, GLB notifies the Partnership that it does
not intend to exercise its matching right or fails to respond within the ten-day
period,  then the  Partnership  has the  right to sell all or a  portion  of the
Partnership's  properties to the unaffiliated  third party buyer as set forth in
the Partnership's  notice to GLB. The GLB Matching Right applies to the Tri-City
Properties and the Remaining Properties.

Prior to the completion of the sale of all of the  Partnership's  properties and
the  receipt in cash of the  proceeds  thereof,  the General  Partner  currently


                                 Page 14 of 21
<PAGE>


intends,  but is not  obligated,  to make interim  distributions  to the Limited
Partners,  from time to time,  of all or a portion of the net proceeds  from the
sale of the  properties.  The  General  Partner  will not receive any of the net
proceeds from the sale of the properties or upon  dissolution of the Partnership
with  respect to its general  partnership  interests.  The General  Partner also
intends to  distribute  in November  1999 the net proceeds from the January 1999
sale of the Perris land.

The  discussion  above  contains   forward-looking   statements   regarding  the
Partnership's plans, goals and expectations,  including statements regarding the
Partnership's  estimates of sales  proceeds and future  distributions  resulting
from the Asset Sale, estimates of the timing of the sale of the properties,  the
dissolution  of  the  Partnership  and  the   distribution  of  sales  proceeds.
Forward-looking  statements  are  necessarily  speculative,  there being certain
risks and  uncertainties  that could  cause  actual  events or results to differ
materially  from  those  referred  to in  the  forward-looking  statements.  All
forward-looking  statements  included in this document are based on  information
available to the  Partnership on the date hereof,  and reflect the best judgment
of the management of the Partnership.  The General  Partner's  current plans are
subject to change,  including  in the event of changes in general  business  and
economic  conditions  as well as changes in the local real estate  markets where
the  Partnership's  properties  are located.  There can be no assurance that the
Asset Sale and  Dissolution  Proposal  will be  consummated,  or if and when the
properties  will  be  sold,  the  proceeds  distributed,   and  the  Partnership
liquidated.  The  timing  of any  sale  of  the  Partnership's  properties,  the
distribution of proceeds,  and the liquidation of the Partnership are subject to
various   and   significant   uncertainties,   many  of  which  are  beyond  the
Partnership's  control  and  which  could  delay  any sale of the  Partnership's
properties,  liquidation  of  the  Partnership,  and  distribution  of  proceeds
significantly  beyond the time periods estimated above. Among such uncertainties
are the demand for the  Partnership's  properties by potential  purchasers,  the
availability  of  capital  for  potential  purchasers,  the  actual  dates  when
properties  are sold,  and the duration of any  installment  sales of any of the
properties.

Tri-City Properties

The majority of the Partnership's  assets are located in the Tri-City  Corporate
Centre,  in San Bernardino,  California.  Tri-City is in the heart of the Inland
Empire,  a submarket of Southern  California  and is the most densely  populated
area of San Bernardino and Riverside  counties.  As a result of Inland  Empire's
increasing  population and job growth,  Tri-City's office space and retail space
market  continues to improve and attract new tenants.  Management  believes that
Tri-City's  industrial  space market should  improve due to the demand for space
for both warehouse and  distribution  facilities.  Management also believes that
the overall real estate market in the Inland  Empire will remain strong  through
1999, with conditions beyond such time being less predictable.



                                 Page 15 of 21
<PAGE>


The  Partnership's  Tri-City  Properties  consist of  approximately  23 acres of
unimproved land and  approximately  451,903 square feet of improved  properties.
The Partnership's  improved  properties in the Tri-City  Corporate Centre are as
follows:

        Property                          Type                       Square Feet
--------------------------    ----------------------------------     -----------
One Vanderbilt                Four story office building                 73,730
Two Vanderbilt                Four story office building                 69,046
Carnegie Business Center I    Two R & D buildings                        62,539
Service Retail Center         Two retail buildings                       20,780
Promotional Retail Center     Four strip center retail buildings         66,265
Inland Regional Center        Two story office building                  81,079
TGI Friday's                  Restaurant                                  9,386
Circuit City                  Retail building                            39,123
Office Max                    Retail building                            23,500
Mimi's Cafe                   Restaurant                                  6,455

Remaining Properties

The Partnership's  Remaining  Properties  consist of approximately 24.8 acres of
undeveloped,  commercially  zoned  land  in  Lake  Elsinore,  Riverside  County,
California ("Lake Elsinore Plaza") and the remaining two parcels  (approximately
1.8  acres) of  undeveloped,  commercially  zoned  land in  Temecula,  Riverside
County,  California  ("Rancon Towne  Village").  The Lake Elsinore Plaza and the
Rancon  Towne  Village  properties  are  reflected  as land held for sale in the
accompanying consolidated balance sheets.

On October 6, 1999, the Partnership entered into a contract with an unaffiliated
third party buyer for the sale of one of the two Rancon  Towne  Village  parcels
for $348,589. The sale is expected to close in December 1999.  Additionally,  on
October  13,  1999,  the  Partnership  executed  a  letter  of  intent  with  an
unaffiliated  third  party  buyer  for  the  sale  of Lake  Elsinore  Plaza  for
$2,600,000. The sale is expected to close in February 2000. The sale of a Rancon
Towne Village parcel and the Lake Elsinore Plaza is subject to the completion of
due diligence,  property inspections and other contingencies.  Thus, there is no
assurance that the sales will be completed.

RESULTS OF OPERATIONS

Revenues

Rental income decreased $241,000,  or 5%, during the nine months ended September
30, 1999,  compared to the nine months ended September 30, 1998,  primarily as a
result of the loss of  rental  income  due to the June 1998 sale of  Shadowridge
Woodbend  Apartments  ("Shadowridge").  This  decrease  in  rental  revenue  was
partially  offset by an increase due to the commencement of operations of Office
Max and Mimi's Cafe in October  1998 and  January  1999,  respectively,  and the
overall  increase  in  occupancy  at  the  Tri-City  Properties.  Rental  income
increased  $129,000,  or 9%,  during the three months ended  September 30, 1999,
compared to the three months ended  September  30,  1998,  primarily  due to the
commencement  of  operations  at  Office  Max and  Mimi's  Cafe and the  overall
increase in occupancy at the Tri-City Properties.



                                 Page 16 of 21
<PAGE>


Occupancy  rates at the  Partnership's  Tri-City  Properties as of September 30,
1999 and 1998 were as follows:
                                                         September  30,
                                                       -----------------
                                                         1999      1998
                                                       -------   -------
One Vanderbilt                                            88%       91%
Two  Vanderbilt                                          100%       93%
Service Retail Center                                    100%       95%
Carnegie  Business  Center I                              77%       72%
Promotional  Retail Center                               100%       98%
Inland Regional Center                                   100%      100%
TGI Friday's                                             100%      100%
Circuit City                                             100%      100%
Office Max (commenced October 1998)                      100%       N/A
Mimi's Cafe (commenced January 1999)                     100%       N/A

As  of  September  30,  1999,  tenants  at  the  Tri-City  Properties  occupying
substantial  portions of leased rental space included:  (i) Inland Empire Health
Plan with a lease through March 2002;  (ii) CompUSA with a lease through  August
2003;  (iii) ITT Educational  Services with a lease through  December 2004; (iv)
PetsMart with a lease through  January 2009; (v) Inland  Regional  Center with a
lease through July 2009;  (vi) Circuit City with a lease  through  January 2018;
and (vii) Office Max with a lease through October 2013. These seven tenants,  in
the aggregate,  occupied  approximately 269,000 square feet of the 452,000 total
leasable  square feet at Tri-City and  accounted  for  approximately  56% of the
total rental income of the Partnership during the third quarter of 1999.

The 7  percentage  point  increase  in  occupancy  from  September  30,  1998 to
September  30, 1999 at Two  Vanderbilt  is  attributed  to the  expansion  of an
existing tenant's leased space.

The 5  percentage  point  increase  in  occupancy  from  September  30,  1998 to
September  30, 1999 at Service  Retail  Center is  attributed  to the leasing of
2,574 square feet of previously vacant space to three new tenants.

The 5  percentage  point  increase  in  occupancy  from  September  30,  1998 to
September 30, 1999 at Carnegie Business Center I is attributed to the leasing of
4,122 square feet of previously  vacant space to two new tenants.  Management is
currently  negotiating  lease expansion with two existing tenants for a total of
6,049 square feet of space.  Management is also  negotiating  lease terms with a
prospective tenant for approximately 9,700 square feet of space.

The  construction  of Office Max and Mimi's  Cafe,  23,500 and 6,455 square feet
build-to-suit   retail   buildings,   was  completed  during  1998,  with  lease
commencements in October 1998 and January 1999, respectively.

Interest and other income decreased $2,000,  or 1%, and $89,000,  or 69%, during
the nine and three months  ended  September  30, 1999,  compared to the nine and
three months ended September 30, 1998, respectively, due to a lower average cash
balance  in 1999 as a result  of the  $4,000,000  distribution  of cash from the
Shadowridge sale in the fourth quarter of 1998.

The gain on sale of rental  property of  $5,468,000  for the nine  months  ended
September 30, 1998 resulted from the June 1998 sale of Shadowridge.


                                 Page 17 of 21
<PAGE>


Expenses

Operating  expenses  decreased  $175,000,  or 8%,  for  the  nine  months  ended
September 30, 1999,  compared to the nine months ended  September 30, 1998,  due
primarily to the June 1998 sale of  Shadowridge.  This  decrease  was  partially
offset  by an  increase  in  property  operating  expenses  attributable  to the
commencement  of  operations of Office Max and Mimi's Cafe.  Operating  expenses
increased  $97,000,  or 16%,  for the three  months  ended  September  30, 1999,
compared to the three months ended  September  30, 1998,  due to the increase in
property  operating  expenses  attributable to the commencement of operations of
Office Max and Mimi's Cafe and the overall increase in occupancy at the Tri-City
Properties.

Interest expense decreased $230,000, or 17%, and $6,000, or 2%, for the nine and
three months  ended  September  30, 1999,  compared to the nine and three months
ended  September  30,  1998,  respectively,  due  primarily to the payoff of the
$5,800,000, 7.95% fixed rate loan secured by Shadowridge.

Depreciation and amortization  increased $155,000,  or 15%, and $53,000, or 15%,
for the nine and three months ended September 30, 1999, compared to the nine and
three  months  ended  September  30, 1998,  respectively,  due  primarily to the
commencement of operations of Office Max and Mimi's Cafe.

The loss on sale of real  estate of $4,000 for the nine months  ended  September
30, 1999  resulted  from the sale of the Perris  land.  The loss on sale of real
estate of $11,000 for the nine months ended September 30, 1998 resulted from the
sale of a Rancon Towne Village parcel.

Expenses  associated with  undeveloped land decreased  $56,000,  or 14%, for the
nine  months  ended  September  30,  1999,  compared  to the nine  months  ended
September  30,  1998,  due to: (i) the  reduction of expenses as a result of the
completion of construction of Office Max and Mimi's Cafe during the last quarter
of 1998;  and (ii) the  elimination of property taxes as a result of the sale of
the Perris land in January  1999.  Expenses  associated  with  undeveloped  land
increased $6,000, or 5%, for the three months ended September 30, 1999, compared
to the three  months  ended  September  30,  1998,  due to the receipt of a real
estate tax refund in September 1998.

General and administrative  expenses decreased $190,000, or 20%, and $63,000, or
20%,  for the nine and three months ended  September  30, 1999,  compared to the
nine and three months ended September 30, 1998, respectively, primarily due to a
decrease in asset management fees resulting from the 1998 sale of Shadowridge.

The proposed dissolution costs of $292,000 and $48,000 for the nine months ended
September 30, 1999 and 1998, respectively,  represent charges for work performed
and  expenses  incurred  relating  to the  Solicitation  and the Asset  Sale and
Dissolution Proposal.

Year 2000 Compliance

State of Readiness.  Glenborough Corporation ("Glenborough"),  the Partnership's
asset and property manager,  utilizes a number of computer software programs and
operating  systems.  These programs and systems primarily  comprise  information
technology  systems  ("IT  Systems")  (i.e.,   software  programs  and  computer


                                 Page 18 of 21
<PAGE>


operating   systems)  that  serve  the  management   operations.   Although  the
Partnership  does not  utilize  any  significant  IT Systems of its own, it does
utilize embedded systems such as devices used to control,  monitor or assist the
operation  of equipment  and  machinery  systems  (e.g.,  HVAC,  fire safety and
security) at its properties  ("Property  Systems").  To the extent that software
applications contain a source code that is unable to appropriately interpret the
upcoming  calendar  year  "2000"  and  beyond,  some  level of  modification  or
replacement of these IT Systems and Property Systems have been necessary.

IT  Systems.  Employing  a team made up of internal  personnel  and  third-party
consultants,   Glenborough  has  completed  an  identification  of  IT  Systems,
including hardware components that were not yet Year 2000 compliant. To the best
of Glenborough's knowledge based on available information and a reasonable level
of inquiry and  investigation,  such upgrading as appears to be called for under
the  circumstances  has been completed in accordance  with  prevailing  industry
practice.  Glenborough has completed a testing program during 1999. In addition,
the  Partnership  has  communicated   with  third  parties  with  whom  it  does
significant business,  such as financial  institutions,  tenants and vendors, to
determine their readiness for Year 2000 compliance.

Property Systems.  An identification  of Property  Systems,  including  hardware
components,  that were not yet Year  2000  compliant,  has also been  completed.
Upgrading  of such  systems as appears to be called for under the  circumstances
based  on  available   information  and  a  reasonable   level  of  inquiry  and
investigation,  and in accordance  with  prevailing  industry  practice has been
completed and tested.  To the best of Glenborough's  knowledge,  the Partnership
has no Property  Systems,  the failure of which would have a material  effect on
its operations.

Costs of Addressing Year 2000 issues.  Given the information  known at this time
about systems that are  non-compliant,  coupled with ongoing,  normal  course-of
business  efforts to upgrade or replace  critical  systems,  as  necessary,  the
Partnership has not incurred Year 2000 compliance costs that have had a material
adverse impact on its liquidity or ongoing  results of operations.  The costs of
assessment  and  remediation  of  the  Property  Systems  will  be  paid  by the
Partnership as an operating expense.

Risks of Year 2000 issues.  In light of the assessment and upgrading  efforts to
date,  and  completion of the planned,  normal  course-of-business  upgrades and
subsequent  testing,  the Partnership  believes that any residual Year 2000 risk
will be limited to non-critical business applications and support hardware,  and
to short-term  interruptions  affecting Property Systems which, if they occur at
all, will not be material to overall operations. Glenborough and the Partnership
believe that all IT Systems and Property Systems will be Year 2000 compliant and
that compliance  will not materially  adversely  affect its future  liquidity or
results  of  operations  or its  ability  to  service  debt.  However,  absolute
assurance that this is the case cannot be given.

Contingency  Plans.  The  Partnership  has developed a contingency  plan for all
operations  which  addresses  the most  reasonably  likely  worst case  scenario
regarding  Year  2000  compliance.  Such a plan,  however,  recognizes  material
limitations on the ability to respond to major  regional or industrial  failures
such as power outages or communications breakdowns.



                                 Page 19 of 21
<PAGE>


Part II.          OTHER INFORMATION


Item 1.           Legal Proceedings

                  None.

Item 2.           Changes in Securities and Use of Proceeds

                  Not applicable.

Item 3.           Defaults Upon Senior Securities

                  Not applicable.

Item 4.           Submission of Matters to a Vote of Security Holders

                  Incorporated  herein  by  reference to Note 1 of the Notes to
                  Consolidated Financial Statements.

Item 5.           Other Information

                  None.

Item 6.           Exhibits and Reports on Form 8-K

                  (a)  Exhibits:

                  (27)  Financial Data Schedule

                  (b)  Reports on Form 8-K (incorporated herein by reference):

                  None.




                                 Page 20 of 21
<PAGE>


                                   SIGNATURES


Pursuant to the  requirements  of Section 13 or Section 15(d) of the  Securities
Exchange Act of 1934, the  Partnership  has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                  RANCON REALTY FUND IV,
                                  a California limited partnership

                                  By:    Rancon Financial Corporation
                                         a California corporation,
                                         its General Partner



Date:    November 15, 1999                By:    /s/  DANIEL L. STEPHENSON
                                                --------------------------
                                                Daniel L. Stephenson, President

Date:    November 15, 1999        By:     /s/  DANIEL L. STEPHENSON
                                          --------------------------
                                          Daniel L. Stephenson, General Partner



                                 Page 21 of 21
<PAGE>