FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                        QUARTERLY OR TRANSITIONAL REPORT


                    U. S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-QSB


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


                 For the quarterly period ended March 31, 1998

                                       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 0-14578
                HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP
       (Exact name of small business issuer as specified in its charter)


         Massachusetts                                          04-2825863
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

                  One Insignia Financial Plaza, P.O. Box 1089
                       Greenville, South Carolina  29602
                    (Address of principal executive offices)

                                 (864) 239-1000
                           Issuer's telephone number

Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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



                         PART I - FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS


a)
                HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                                 BALANCE SHEET
                                  (Unaudited)
                        (in thousands, except unit data)

                                 March 31, 1998



Assets
  Cash and cash equivalents                                     $ 1,192
  Receivables and deposits (net of allowance                        381
   of $16 for doubtful accounts)
  Other assets                                                       68
  Investment properties:
    Land                                           $ 1,121
    Buildings and related personal property         14,323
                                                    15,444
    Less accumulated depreciation                   (5,070)      10,374

                                                                $12,015


Liabilities and Partners' Capital (Deficit)
Liabilities
  Accounts payable                                              $    48
  Tenant security deposit liabilities                               114
  Accrued property taxes                                            367
  Other liabilities                                                  99

Partners' Capital (Deficit)
  General partner                                  $   (52)
  Limited partners (15,698 units
     issued and outstanding)                        11,439       11,387

                                                                $12,015


                 See Accompanying Notes to Financial Statements


b)
                HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
                        (in thousands, except unit data)



                                                     Three Months Ended
                                                           March 31,
                                                      1998          1997
Revenues:
  Rental income                                      $  712       $  763
  Other income                                           37           39
     Total revenues                                     749          802

Expenses:
  Operating                                             392          297
  General and administrative                             67           69
  Depreciation                                          178          157
  Property taxes                                        108          102
     Total expenses                                     745          625

  Net income                                         $    4       $  177

Net income allocated to general partner (2%)         $   --       $    3
Net income allocated to limited partners (98%)            4          174

                                                     $    4       $  177

Net income per limited partnership unit              $  .25       $11.07


                 See Accompanying Notes to Financial Statements


c)
               HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

              STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                  (Unaudited)
                        (in thousands, except unit data)
<TABLE>
<CAPTION>
                                     Limited
                                   Partnership     General     Limited
                                      Units        Partner     Partners       Total
<S>                                <C>          <C>           <C>         <C>
Original capital contributions      15,698       $     --      $  15,698   $  15,698

Partners' (deficit) capital
  at December 31, 1997              15,698       $    (52)     $  11,435   $   11,383

Net income for the three months
  ended March 31, 1998                  --             --              4           4

Partners' (deficit) capital
  at March 31, 1998                 15,698       $    (52)     $  11,439   $  11,387
<FN>
                 See Accompanying Notes to Financial Statements
</FN>
</TABLE>


d)
                HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)


                                                           Three Months Ended
                                                                March 31,
                                                            1998         1997
Cash flows from operating activities:
  Net income                                              $    4       $  177
  Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation                                             178          157
    Amortization of leasing commissions                        1            1
    Change in accounts:
      Receivables and deposits                               (71)          43
      Other assets                                             9           (2)
      Accounts payable                                        (3)         (30)
      Tenant security deposit liabilities                      2           (7)
      Accrued property taxes                                 107          102
      Other liabilities                                      (21)         (10)

         Net cash provided by operating activities           206          431

Cash flows from investing activities:
  Property improvements and replacements                     (53)        (233)

         Net cash used in investing activities               (53)        (233)

Cash flows from financing activities:
  Distributions to partners                                 (300)          --

         Net cash used in investing activities              (300)          --

Net (decrease) increase in cash and cash equivalents        (147)         198

Cash and cash equivalents at beginning of period           1,339        1,392

Cash and cash equivalents at end of period                $1,192       $1,590

                 See Accompanying Notes to Financial Statements


e)
              HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP

                         NOTES TO FINANCIAL STATEMENTS
                                  (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of HCW Pension Real Estate Fund
Limited Partnership (the "Partnership") have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Article 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
The General Partner of the Partnership is HCW General Partners Ltd., whose sole
general partner is IH, Inc. (the "Managing General Partner").  In the opinion of
the Managing General Partner, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three month period ended March 31, 1998, are not
necessarily indicative of the results that may be expected for the fiscal year
ending December 31, 1998.  For further information, refer to the financial
statements and footnotes thereto included in the Partnership's annual report on
Form 10-KSB for the year ended December 31, 1997.

Certain reclassifications have been made to the 1997 information to conform to
the 1998 presentation.

NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. The Managing General Partner is a wholly-owned
subsidiary of Insignia Properties Trust ("IPT"), an affiliate of Insignia
Financial Group, Inc. ("Insignia").  The Partnership paid property management
fees for property management services as noted below for the three months ended
March 31, 1998 and 1997, respectively.  The Partnership Agreement ("Agreement")
provides that the Managing General Partner and its affiliates be paid asset
management fees based on "tangible asset value" as defined in the Agreement.
The Agreement also provides for reimbursement to the Managing General Partner
and its affiliates for costs incurred in connection with the administration of
Partnership activities.  The Managing General Partner and its affiliates
received reimbursements and fees as reflected in the following table:


                                                      Three Months Ended
                                                           March 31,
                                                     1998             1997
                                                        (in thousands)

Property management fees (included in
  operating expenses)                                $ 41             $ 42
Asset management fees (included in general
   and administrative expenses)                        34               34
Reimbursement for services of affiliates
  (included in operating, general and
  administrative and investment properties) (1)        23               36

(1)   Included in "reimbursements for services of affiliates" for the three
      months ended March 31, 1997, is approximately $10,000 in reimbursements 
      for construction oversight costs.

For the period January 1, 1997 to August 31, 1997, the Partnership insured its
properties under a master policy through an agency affiliated with the Managing
General Partner with an insurer unaffiliated with the Managing General Partner.
An affiliate of the Managing General Partner acquired, in the acquisition of a
business, certain financial obligations from an insurance agency which was later
acquired by the agent who placed the master policy.  The agent assumed the
financial obligations to the affiliate of the Managing General Partner, which
receives payments on these obligations from the agent.  The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
General Partner by virtue of the agent's obligations is not significant.

On March 17, 1998, Insignia entered into an agreement to merge its national
residential property management operations, and its controlling interest in IPT
with Apartment Investment and Management Company ("AIMCO"), a publicly traded
real estate investment trust.  The closing, which is anticipated to happen in
the third quarter of 1998, is subject to customary conditions, including
government approvals and the approval of Insignia's shareholders.  If the
closing occurs, AIMCO will then control both the General Partner and the
Managing General Partner of the Partnership.

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The Partnership's investment properties consist of one apartment complex and one
office building.  The following table sets forth the average occupancy of the
properties for the three months ended March 31, 1998 and 1997:




Property                                       1998        1997

Lewis Park Apartments
  Carbondale, Illinois                          90%         91%

Highland Professional Tower
  Kansas City, Missouri                         67%         77%

The Managing General Partner attributes the decrease in occupancy at Highland
Professional Tower to tenants not renewing their leases due to deferred
maintenance that needed to be performed at the property.  The Managing General
Partner renovated and repaired Highland Professional Tower's common areas during
the year ending December 31, 1997 in an attempt to attract and retain tenants;
however the trend has continued through March 1998 that as tenant leases expire
the tenants are only agreeing to month to month leases.

Results of Operations

The Partnership's net income for the three months ended March 31, 1998, was
approximately $4,000 versus approximately $177,000 for the three months ended
March 31, 1997.  The decrease in net income is primarily attributable to a
decrease in rental income, and increases in operating and depreciation expenses.
Rental income decreased due to the decrease in occupancy at Highland
Professional Tower as discussed above.  Operating expenses increased due to an
increase in maintenance expense as a result of parking lot and heating and air
conditioning repairs at Highland Professional Park. Depreciation expense
increased due to fixed asset additions related to the renovation project at
Highland Professional Park as discussed above.

Included in operating expenses at March 31, 1998 is approximately $82,000 of
major repairs and maintenance comprised primarily of parking lot repairs at
Highland Professional Tower.  Included in operating expenses at March 31, 1997
is approximately $7,000 of major repairs and maintenance comprised of exterior
building repairs.

As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses.  As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level.  However, due to changing market
conditions which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At March 31, 1998, the Partnership had cash and cash equivalents of
approximately $1,192,000 compared to approximately $1,590,000 for the three
months ended March 31, 1997.  The net (decrease) increase in cash and cash
equivalents for the three months ended March 31, 1998 and 1997 is ($147,000) and
$198,000, respectively.  Net cash provided by operating activities decreased due
to the decrease in net income as discussed above and an increase in receivables
and deposits as a result of an increase in required tax escrow accounts.  Net
cash used in investing activities decreased due to a decrease in property
improvements and replacements in 1998 as compared to 1997 as a result of the
1997 renovation project at Highland Professional Tower.  Net cash used in
financing activities increased due to the payment in January 1998 of
distributions to partners declared and accrued December 1997.

The sufficiency of existing liquid assets to meet future liquidity and capital
expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership.  Such assets are currently thought
to be sufficient for any near-term needs of the Partnership.  The Partnership
paid accrued cash distributions of $6,000 to the General Partner and $294,000 to
the limited partners during the three months ended March 31, 1998.  No cash
distributions were made during the three months ended March 31, 1997.  Future
cash distributions will depend on the levels of net cash generated from
operations, capital expenditure requirements, property sales, financing, and the
availability of cash reserves.

Year 2000

The Partnership is dependent upon the Managing General Partner and Insignia for
management and administrative services.  Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue").  The project is estimated to be completed
not later than December 31, 1998, which is prior to any anticipated impact on
its operating systems.  The Managing General Partner believes that with
modifications to existing software and conversions to new software, the Year
2000 Issue will not pose significant operational problems for its computer
systems. However, if such modifications and conversions are not made, or are not
completed timely, the Year 2000 Issue could have a material impact on the
operations of the Partnership.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements expressed or implied by such forward-looking statements.  Such
forward-looking statements speak only as of the date of this quarterly report.
The Partnership expressly disclaims any obligation or undertaking to release
publicly any updates of revisions to any forward-looking statements contained
herein to reflect any change in the Partnership's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.

                          PART II - OTHER INFORMATION


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

       a)    Exhibits:

             Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
             report.

       b)    Reports on Form 8-K:

             None filed during the quarter ended March 31, 1998.


                                   SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.



                                    HCW PENSION REAL ESTATE FUND
                                    LIMITED PARTNERSHIP

                               By:  HCW General Partner Ltd.,
                                    the General Partner

                               By:  IH, Inc.,
                                    the General Partner

                               By:  /s/Carroll D. Vinson
                                    Carroll D. Vinson
                                    President and Director

                               By:  /s/Robert D. Long, Jr.
                                    Robert D. Long, Jr.
                                    Vice President and Chief Accounting
                                    Officer

                               Date:  May 12, 1998