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

                                    FORM 10-Q

                                   (Mark One)


             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

                        For the transition period from to


                         Commission file number 0-14466

          CONNECTICUT  GENERAL REALTY INVESTORS III LIMITED  PARTNERSHIP  (Exact
             name of registrant as specified in its charter)

               Connecticut                             06-1115374
        (State of Organization)            (I.R.S. Employer Identification No.)


                     900 Cottage Grove Road, South Building
                          Bloomfield, Connecticut 06002
                    (Address of principal executive offices)


                        Telephone Number: (860) 726-6000



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


                                       1

<PAGE>



Part I - Financial Information
<TABLE>

          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

                                 Balance Sheets
<CAPTION>
                                                                                       September 30,               December 31,
                                                                                           1999                        1998
                                                               Assets                   (Unaudited)                  (Audited)
<S>                                                                                  <C>                          <C>
Property and improvements, at cost:
     Land and land improvements                                                      $      786,516               $    3,009,898
     Buildings                                                                            5,212,143                   16,661,970
     Furniture and fixtures                                                                 915,005                    1,462,984
                                                                                     --------------               --------------
                                                                                          6,913,664                   21,134,852
     Less accumulated depreciation                                                        3,316,164                    8,693,273
                                                                                     --------------               --------------
              Net property and improvements                                               3,597,500                   12,441,579

Cash and cash equivalents                                                                   373,017                      739,751
Accounts receivable (net of allowance of $0
   in 1999 and $8,956 in 1998)                                                                1,387                        7,185
Escrow deposits                                                                              40,257                      143,422
Prepaid insurance                                                                                 0                           --
Other asset                                                                                       0                        1,000
Deferred charges, net                                                                        17,598                      776,542
Escrowed debt service funds                                                                      --                      506,660
                                                                                     --------------               --------------
              Total                                                                  $    4,029,759               $   14,616,139
                                                                                     ==============               ==============

                   Liabilities and Partners' Capital (Deficit)

Liabilities:
     Notes and mortgages payable                                                     $    3,835,364               $   15,249,984
     Accounts payable and accrued expenses (including $27,702
       in 1999 and $18,906 in 1998 due to affiliates)                                       135,002                      241,892
     Tenant security deposits                                                                42,914                       82,092
     Unearned income                                                                          3,175                       26,611
                                                                                     --------------               --------------
              Total liabilities                                                           4,016,455                   15,600,579
                                                                                     --------------               --------------

Partners' capital (deficit):
     General Partner:
         Capital contributions                                                                1,000                        1,000
         Cumulative net income                                                               34,696                       27,513
         Cumulative cash distributions                                                      (37,268)                     (33,751)
                                                                                     --------------               --------------
                                                                                             (1,572)                      (5,238)
                                                                                     --------------               --------------
     Limited partners (24,856 Units)
         Capital contributions, net of offering costs                                    22,408,052                   22,408,052
         Cumulative net loss                                                             (9,869,606)                 (14,950,756)
         Cumulative cash distributions                                                  (12,523,570)                  (8,436,498)
                                                                                     --------------               --------------
                                                                                             14,876                     (979,202)
                                                                                     --------------               --------------
              Total partners' capital (deficit)                                              13,304                     (984,440)
                                                                                     --------------               --------------
              Total                                                                  $    4,029,759               $   14,616,139
                                                                                     ==============               ==============


The Notes to Financial Statements are an integral part of these statements.
</TABLE>

                                        2

<PAGE>
<TABLE>



          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

                            Statements of Operations
                                   (Unaudited)
<CAPTION>

                                                                           Three Months Ended                 Nine Months Ended
                                                                              September 30                      September 30
                                                                              ------------                      ------------
                                                                        1999               1998            1999             1998
                                                                        ----               ----            ----             ----
<S>                                                               <C>               <C>              <C>              <C>
Income:
     Rental income                                                $      313,267    $     816,488    $    1,516,816   $   2,410,696
     Other income                                                          8,147           18,645            40,280          49,052
     Interest income                                                       4,227           15,172            42,360          50,908
                                                                  --------------    -------------    --------------   -------------
                                                                         325,641          850,305         1,599,456       2,510,656
                                                                  --------------    -------------    --------------   -------------

Expenses:
     Property operating expenses                                         119,190          263,255           481,180         718,646
     General and administrative                                           45,442          115,156           272,221         357,676
     Fees and reimbursements to affiliates                                 8,698           31,750            54,876          87,264
     Interest expense                                                     76,978          231,411           405,937         697,011
     Depreciation and amortization                                        19,892          203,377           139,338         595,342
                                                                  --------------    -------------    --------------   -------------
                                                                         270,200          844,949         1,353,552       2,455,939
                                                                  --------------    -------------    --------------   -------------

         Income (loss) from operations                                    55,441            5,356           245,904          54,717

     Gain on sale of property                                                 --               --         4,842,430              --
                                                                   -------------    -------------    --------------   -------------

         Net income                                               $       55,441    $       5,356    $    5,088,334   $      54,717
                                                                  ==============    =============    ==============   =============

Net income:
     General Partner                                              $          554    $          53    $        7,183   $         547
     Limited partners                                                     54,887            5,303         5,081,151          54,170
                                                                  --------------    -------------    --------------   -------------
                                                                  $       55,441    $       5,356    $    5,088,334   $      54,717
                                                                  ==============    =============    ==============   =============

Net income per Unit                                               $         2.21    $        0.21    $       204.42   $        2.18
                                                                  ==============    =============    ==============   =============

Cash distribution per Unit                                        $         5.04    $        5.04    $       164.43   $       15.99
                                                                  ==============    =============    ==============   =============













The Notes to Financial Statements are an integral part of these statements.
</TABLE>

                                        3

<PAGE>
<TABLE>



          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

                            Statements of Cash Flows

              For the Nine Months Ended September 30, 1999 and 1998
                                   (Unaudited)
<CAPTION>

                                                                                         1999                      1998
                                                                                         ----                      ----
<S>                                                                               <C>                       <C>
Cash flows from operating activities:
     Net income                                                                   $     5,088,334           $        54,717
     Adjustment to reconcile net income to net cash
       provided by operating activities:
         Gain on sale of property                                                      (4,842,430)                       --
         Depreciation and amortization                                                    139,338                   595,342
         Accounts receivable                                                                5,798                     2,827
         Accounts payable and accrued expenses                                           (106,890)                  ( 4,870)
         Escrow deposits                                                                  103,165                   ( 3,899)
         Other, net                                                                       (61,614)                   15,017
                                                                                  ---------------           ---------------
              Net cash provided by operating activities                                   325,701                   659,134
                                                                                  ---------------           ---------------

Cash flows from investing activities:
     Proceeds from sale of property                                                    14,675,000                        --
     Payment of closing costs related to sale of property                                (286,215)                       --
     Purchase of property and improvements                                                (82,671)                 (124,023)
                                                                                  ---------------           ---------------
              Net cash provided by (used in) investing activities                      14,306,114                  (124,023)
                                                                                  ---------------           ---------------

Cash flows from financing activities:
     Proceeds from escrowed debt service funds                                            506,660                        --
     Distribution to limited partners                                                  (4,087,072)                 (397,448)
     Distribution to General Partner                                                       (3,517)                   (4,014)
     Repayment of notes and mortgage loans                                            (11,414,620)                 (160,050)
                                                                                  ---------------           ---------------
              Net cash used in financing activities                                   (14,998,549)                 (561,512)
                                                                                  ---------------           ---------------

Net decrease in cash and cash equivalents                                                (366,734)                  (26,401)
Cash and cash equivalents, beginning of year                                              739,751                   682,614
                                                                                  ---------------           ---------------
Cash and cash equivalents, end of period                                          $       373,017           $       656,213
                                                                                  ===============           ===============

Supplemental disclosure of cash information:
     Interest paid during period                                                  $       405,937           $       697,011
                                                                                  ===============           ===============









The Notes to Financial Statements are an integral part of these statements.
</TABLE>

                                        4

<PAGE>



          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

                          Notes to Financial Statements
                                   (Unaudited)


     Readers of this quarterly report should refer to CONNECTICUT GENERAL REALTY
INVESTORS  III  LIMITED  PARTNERSHIP'S  (the  "Partnership")  audited  financial
statements  for the year  ended  December  31,  1998 which are  included  in the
Partnership's  1998 Annual Report,  as certain footnote  disclosures which would
substantially  duplicate  those contained in such audited  financial  statements
have been omitted from this report.

1.   Summary of Significant Accounting Policies

a)   Basis of  Presentation:  The  financial  statements  have been  prepared in
     conformity  with  generally  accepted  accounting  principles,  and reflect
     management's estimates and assumptions that affect the reported amounts. It
     is the  opinion  of  management  that the  financial  statements  presented
     reflect  all  the  adjustments  necessary  for a fair  presentation  of the
     financial condition and results of operations.  All such adjustments are of
     a normal recurring nature.

b)   Cash and Cash Equivalents:  Short term investments with a maturity of three
     months or less at the time of purchase are reported as cash equivalents.

2.   Deferred Charges
<TABLE>
     Deferred charges consist of the following:

<CAPTION>
                                                                                     September 30,             December 31,
                                                                                         1999                      1998
<S>                                                                               <C>                       <C>
     Surety fee - Waterford Apartments mortgage note                              $            --           $       963,910
     Costs of obtaining financing                                                         143,660                   660,522
                                                                                  ---------------           ---------------
                                                                                          143,660                 1,624,432
     Accumulated amortization                                                            (126,062)                 (847,890)
                                                                                  ---------------           ---------------
                                                                                  $        17,598           $       776,542
                                                                                  ===============           ===============
</TABLE>

3.   Transactions with Affiliates
<TABLE>

     Fees and expenses  related to the General  Partner or its affiliates are as
follows:

<CAPTION>
                                                   Three Months Ended            Nine Months Ended               Unpaid at
                                                      September 30                  September 30               September 30
                                                      ------------                  ------------               ------------
                                                 1999              1998         1999             1998              1999
                                                 ----              ----         ----             ----              ----
<S>                                        <C>              <C>              <C>             <C>              <C>
     Property management fees (a)          $         --     $       5,235    $     5,732     $    15,264      $        --
     Partnership management fees                     --            12,291         19,517          37,842               --
     Reimbursement (at cost) for
      out-of-pocket expenses                      8,698            14,224         29,627          34,158           27,702
                                           ------------     -------------    -----------     -----------      -----------
                                           $      8,698     $      31,750    $    54,876     $    87,264      $    27,702
                                           ============     =============    ===========     ===========      ===========
</TABLE>


                                        5

<PAGE>




(a)  Does not include  on-site  property  management  fees earned by independent
     property  management  companies of $16,029 and $36,150 for the three months
     ended September 30, 1999 and 1998,  respectively,  and $68,219 and $106,853
     for the nine  months  ended  September  30,  1999 and  1998,  respectively.
     On-site property  management  services have been contracted by an affiliate
     of the General  Partner on behalf of the  Partnership and are paid directly
     by the Partnership to the third party companies.

4.   Sale of Property

     On April 14, 1999, the Partnership  completed the sale of its investment in
the Waterford  Apartments for a gross sales price of $14,675,000.  The purchaser
assumed the bond  financing of $11,355,000 as part of the sale. The property had
a depreciated cost of $9,546,354 as of the date of sale. After deducting closing
costs, the Partnership recorded a gain of $4,842,430.

     The Partnership  has entered into an agreement to sell  Versailles  Village
Apartments for a gross sales price of $7,200,000.  The closing is expected to be
November 15, 1999.  The  Partnership  expects to record a gain of  approximately
$3,300,000 based on an estimated depreciated cost of $3,625,000.

5.   Subsequent Event

     On November 15, 1999, the  Partnership  paid a distribution  of $125,274 to
the limited partners.
























                                        6

<PAGE>







          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

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

     Except for historical information provided in this Management's  Discussion
and Analysis,  statements made in this document are  forward-looking and contain
information about financial  results,  economic  conditions,  trends,  and known
uncertainties.  The  Partnership  cautions the reader that actual  results could
differ materially from those expected by the Partnership.

Liquidity and Capital Resources

     At  September  30,  1999,  the  Partnership  had  $373,017 in cash and cash
equivalents  which  was  available  for  working  capital   requirements,   cash
distributions,  and the  Partnership's  cash  reserves.  For the  three and nine
months ended September 30, 1999, the Partnership generated $125,274 and $467,406
respectively,  of adjusted  cash from  operations  after debt  service,  capital
improvements,   and  adjustments  to  the  Partnership's   cash  reserves.   The
Partnership's second quarter 1999 distribution of $125,274 or $5.04 per Unit was
paid on  August  13,  1999 and  represented  the  Partnership's  second  quarter
adjusted cash from  operations  including an adjustment  to cash  reserves.  The
Partnership  plans to distribute  cash quarterly to the extent cash is available
from operations after debt service,  capital  improvements,  and changes to cash
reserves  for  liabilities  and  capital  expenditures,  until  the  sale of the
Partnership's remaining property.

     On April 14, 1999, the Partnership  completed the sale of its investment in
the Waterford  Apartments to Case Ventures,  Inc., an Oklahoma Corporation for a
gross sales price of  $14,675,000.  The purchaser  assumed the bond financing of
$11,355,000  as part of the sale.  After return of the debt  escrows,  including
accrued  interest,   and  deducting   closing  costs,  the  Partnership   netted
approximately  $3,614,000.  On May 17, 1999, the Partnership distributed the net
proceeds  from the  sale to  limited  partners.  A gain  was  recorded  for book
purposes  of  $4,842,430.  The  Partnership  expects  to  record  a gain for tax
purposes.

     The  Partnership  has entered  into an  Agreement of Purchase and Sale with
Ronald Gottlieb to sell Versailles  Village  Apartments,  the Partnership's sole
remaining  investment  property.  The Agreement of Purchase and Sale states that
the closing will occur on or before November 15, 1999.  After estimated  closing
costs and payment of the outstanding debt obligation,  the Partnership estimates
that it will net approximately $3,100,000 from the sale. The Partnership expects
to record a gain for book and tax purposes.  Once the sale of Versailles Village
is complete,  the Partnership will liquidate and dissolve. The final liquidating
distribution will include the proceeds from the sale of Versailles Village.


Results of Operations

     Generally, decreases in the income statement accounts for 1999, as compared
with 1998, are the result of the sale of Waterford Apartments in April 1999. The
Partnership's  sole  remaining  property,   Versailles  Village,   had  improved
operations  for both the three and nine months  ended  September  30,  1999,  as
compared with the same periods in 1998.

     At Versailles Village, rental income increased $14,429 for the three months
and $28,038 for the nine months ended  September  30, 1999, as compared with the
same periods in 1998, due to an increase in rates.  Property  operating expenses
increased  $4,909 for the three months and  decrease  $1,002 for the nine months
ended  September 30, 1999.  Balcony and HVAC repairs  resulted in an increase to
maintenance expense for the third quarter. Year to date savings in utility
                                        7

<PAGE>


          CONNECTICUT GENERAL REALTY INVESTORS III LIMITED PARTNERSHIP
                       (a Connecticut limited partnership)

                Management's Discussion and Analysis of Financial
                 Condition and Results of Operations (Continued)


costs,  insurance  and cleaning  more than offset an increase in property  taxes
caused by a school levy. The Partnership  classified  Versailles Village as held
for  sale as of  August  1,  1999,  subsequently,  there  has  been  no  further
depreciation  and  amortization  expense  recorded.  There  were no  significant
fluctuations in other income,  general and  administrative  and interest expense
for Versailles Village for the three and nine months ended September 30, 1999 as
compared with the same periods in 1998.

Fees and  reimbursements  to affiliates  decreased for the three and nine months
ended September  30,1999,  as compared with the same periods in 1998,  primarily
due to lower partnership  management fees as a result of less cash available for
distribution  resulting  from the sale of  Waterford  Apartments  in April 1999.
There was no depreciation and amortization  expense for Waterford in 1999 as the
property was held for sale as of November 1998.


                                    Occupancy
<TABLE>
     The  following is a listing of  approximate  physical  occupancy  levels by
quarter for the Partnership's investment properties:

<CAPTION>
                                                                1998                                            1999
                                          --------------------------------------------------------   ------------------------------

                                            At 3/31    At 6/30    At 9/30       At 12/31             At 3/31   At 6/30   At 9/30
                                            -------    -------    -------       --------             -------   -------   -------
<S>                                           <C>       <C>          <C>          <C>                 <C>         <C>       <C>
1.   Versailles Village Apartments
     Forest Park, Ohio                        97%       100%         94%          94%                 99%         96%       95%

2.   Waterford Apartments
     Tulsa, Oklahoma                          94%        97%         94%          95%                 90%         N/A       N/A
</TABLE>

An N/A indicates  that the property was not owned by the  partnership at the end
of the quarter.

     (a) Waterford Apartments was sold April 14, 1999.

Part II- Other Information

     Item 6.  Exhibits and Reports on Form 8-K

     (a) Exhibits:

         10 (a) Agreement of Purchase and Sale for Versailles Village Apartments
         dated September 10, 1999 between the Registrant and Ronald Gottlieb.

         27 Financial Data Schedules.

     (b) No form 8-K's were filed during the three months  ended  September  30,
1999


                                        8

<PAGE>





                                   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.



                    CONNECTICUT GENERAL REALTY INVESTORS III
                    LIMITED PARTNERSHIP


                              By:      CIGNA Realty Resources, Inc. - Fifth,
                                       General Partner




Date: November 5, 1999        By:      /s/ John D. Carey
      -----------------               ------------------------------------------
                                      John D. Carey, President
                                      (Principal Executive Officer)



Date: November 5, 1999        By:      /s/ Randolph K. Rome
      ----------------                ------------------------------------------
                                      Randolph K. Rome, Controller
                                      (Principal Accounting Officer)


                                        9

<PAGE>