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

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

                                          FORM 10-Q

[X]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934

                         For the quarterly period ended June 30, 1997

                                              or

[ ]  Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
     of 1934


                      For the transition period from.........to.........

                                Commission file number 0-14187


                       CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3
                    (Exact name of registrant as specified in its charter)


         California                                          94-2940208
(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)                      (Zip Code)

                         Registrant's telephone number (864) 239-1000

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


                                PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

a)                     CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                        BALANCE SHEET
                               (in thousands, except unit data)
<TABLE>
<CAPTION>
                                                         June 30,      December 31,
                                                            1997           1996
                                                        (Unaudited)       (Note)
<S>                                                    <C>            <C>
Assets
  Cash and cash equivalents:
     Unrestricted                                       $ 10,389       $ 15,813
     Restricted - tenant security deposits                   456            432
  Accounts receivable                                        458            416
  Investments                                                105            109
  Escrows for taxes and insurance                            426            347
  Restricted escrows                                       1,979          2,174
  Other assets                                             1,084          1,059
  Investment properties:
     Land                                                 12,371         12,371
     Building and related personal property               50,155         49,450
                                                          62,526         61,821
     Less accumulated depreciation                       (14,016)       (12,634)
                                                          48,510         49,187
                                                        $ 63,407       $ 69,537

Liabilities and Partners' Capital (Deficit)
Liabilities
  Accounts payable                                      $    330       $    580
  Tenant security deposits                                   456            434
  Accrued taxes                                              296            183
  Other liabilities                                          435            519
  Mortgage notes payable                                  30,525         30,525
                                                          32,042         32,241
Partners' Capital (Deficit)
  General partner's                                         (440)          (443)
  Limited partners'(383,033 units outstanding)            31,805         37,739
                                                          31,365         37,296
                                                        $ 63,407       $ 69,537
<FN>
Note:The balance sheet at December 31, 1996, has been derived from the
     audited financial statements at that date but does not include all the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.

                        See Accompanying Notes to Financial Statements
</TABLE>

b)                        CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

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

<TABLE>
<CAPTION>
                                       For the Three Months        For the Six Months
                                          Ended June 30,             Ended June 30,
                                         1997          1996         1997          1996
<S>                                  <C>           <C>          <C>          <C>
Revenues:
  Rental income                       $ 3,447       $ 3,221      $ 6,805      $ 6,232
  Other income                            329           209          719          450
  Gain on casualty event                   (5)           --           16           --
       Total revenues                   3,771         3,430        7,540        6,682

Expenses:
  Operating                             1,142         1,056        2,269        2,205
  General and administrative              140           161          261          321
  Maintenance                             478           539          941          959
  Depreciation                            703           674        1,394        1,336
  Interest                                579           363        1,158          732
  Property taxes                          211           210          443          427
       Total expenses                   3,253         3,003        6,466        5,980

       Net income                     $   518       $   427      $ 1,074      $   702

Net income allocated
  to general partners (1%)            $     5       $     4      $    11      $     7

Net income allocated
  to limited partners (99%)               513           423        1,063          695
                                      $   518       $   427      $ 1,074      $   702
Net income per limited
  partnership unit                    $  1.34       $  1.10      $  2.78      $  1.81
<FN>
                           See Accompanying Notes to Financial Statements
</TABLE>

c)                        CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                        STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
                                            (Unaudited)

                                  (in thousands, except unit data)

<TABLE>
<CAPTION>
                                     Limited
                                   Partnership       General    Limited
                                      Units         Partner's   Partners'      Total
<S>                                 <C>            <C>          <C>          <C>
Original capital contributions       383,033        $     1      $95,758      $95,759

Partners' (deficit) capital at
  December 31, 1995                  383,033        $  (407)     $43,868      $43,461

Distributions to partners                 --            (18)      (4,302)      (4,320)

Net income for the six months
  ended June 30, 1996                     --              7          695          702

Partners' (deficit) capital
   at June 30, 1996                  383,033        $  (418)     $40,261      $39,843

Partners' (deficit) capital
   at December 31, 1996              383,033        $  (443)     $37,739      $37,296

Distributions to partners                 --             (8)      (6,997)      (7,005)

Net income for the six months
  ended June 30, 1997                     --             11        1,063        1,074

Partners' (deficit) capital at
  June 30, 1997                      383,033        $  (440)     $31,805      $31,365
<FN>
                           See Accompanying Notes to Financial Statements
</TABLE>

d)                        CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                      STATEMENTS OF CASH FLOWS
                                            (Unaudited)
                                           (in thousands)
<TABLE>
<CAPTION>
                                                               Six Months Ended
                                                                   June 30,
                                                             1997            1996
<S>                                                       <C>            <C>
Cash flows from operating activities:
  Net income                                               $ 1,074        $   702
  Adjustments to reconcile net income to
   net cash provided by operating activities:
    Depreciation                                             1,394          1,336
    Amortization of lease commissions and
      loan costs                                                71             28
    Gain on casualty event                                     (16)            --
    Loss on disposal of property                                41             61
    Change in accounts:
      Restricted cash                                          (24)            (5)
      Accounts receivable                                       77            137
      Escrows for taxes and insurance                          (79)          (139)
      Other assets                                             (94)            58
      Accounts payable                                        (379)          (323)
      Tenant security deposit liabilities                       22             11
      Accrued taxes                                            113            143
      Other liabilities                                        (84)            94

         Net cash provided by operating activities           2,116          2,103

Cash flows from investing activities:
  Property improvements and replacements                      (732)          (651)
  Deposits to restricted escrows                              (214)           (12)
  Receipts from restricted escrows                             409            299
  Cash received from borrower on foreclosed
    property                                                    --             74
  Dividends received                                             4             --

         Net cash used in investing activities                (533)          (290)

Cash flows from financing activities:
  Payments on mortgage notes payable                            --            (93)
  Loan costs paid                                               (2)           (86)
  Distributions to partners                                 (7,005)        (4,320)

         Net cash used in financing activities              (7,007)        (4,499)

Net decrease in cash and cash equivalents                   (5,424)        (2,686)

Cash and cash equivalents at beginning of period            15,813          9,871

Cash and cash equivalents at end of period                 $10,389        $ 7,185

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $ 1,098        $   683
<FN>
                           See Accompanying Notes to Financial Statements
</TABLE>

                          CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                STATEMENTS OF CASH FLOW (Continued)
                                            (Unaudited)


SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY

Acquisition

On February 14, 1996, Consolidated Capital Institutional Properties/3 foreclosed
on South City Business Center, the investment property collateralizing the note
receivable between Consolidated Capital Institutional Properties/3 and Lincoln
South City Business Center Limited Partnership.  As of June 30, 1996, in
connection with this transaction, the following accounts had been adjusted by
the amounts noted (in thousands):


Investment properties               $ 4,326
Notes receivable                     (4,400)

Casualty event

At June 30, 1997, as a result of a fire at Lake Villa, investment properties,
accounts receivable and accounts payable were adjusted $26,000, $119,000 and
$129,000, respectively for non-cash activity.



e)                        CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3

                                   NOTES TO FINANCIAL STATEMENTS
                                            (Unaudited)


NOTE A - BASIS OF PRESENTATION

The accompanying unaudited financial statements of Consolidated Capital
Institutional Properties/3 (the "Partnership") have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of ConCap Equities, Inc. (the "General Partner"), all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three and six month
periods ended June 30, 1997, are not necessarily indicative of the results that
may be expected for the fiscal year ending December 31, 1997.  For further
information, refer to the financial statements and footnotes thereto included in
the Partnership's annual report on Form 10-K for the fiscal year ended December
31, 1996.

Presentation of Accounts

Certain reclassifications have been made to the 1996 information to conform to
the 1997 presentation.

NOTE B - INVESTMENT PROPERTY ACQUIRED

During 1995, the debtor stopped making note payments on the note secured by the
South City Business Center.  An affiliate of the General Partner was appointed
receiver in September 1995, and the foreclosure proceedings were completed on
February 14, 1996, at which time the Partnership assumed operations at the
property. The estimated net realizable value at the time of acquisition was
$4,400,000 including cash of $74,000 which the Partnership received along with
the South City assets of approximately $4,326,000.

NOTE C - RELATED PARTY TRANSACTIONS

The Partnership has paid property management fees based on collected gross
rental revenues for property management services in each of the six month
periods ended June 30, 1997 and 1996.  Property management fees of approximately
$361,000 and $321,000 were paid to affiliates of the General Partner for the six
months ending June 30, 1997 and 1996, respectively.

The Partnership Agreement also provides for reimbursement to the General Partner
and its affiliates for costs incurred in connection with administration of
Partnership activities.  Reimbursements for services of affiliates of
approximately $167,000 and $182,000 were paid to the General Partner and
affiliates for the six months ended June 30, 1997 and 1996.  Additionally, the
Partnership paid $23,000 during each of the six month periods ended June 30,
1997 and 1996 to an affiliate of the General Partner for lease commissions at
the Partnership's commercial properties. These lease commissions are included in
other assets and are amortized over the term of the respective leases.

The Partnership insures its properties under a master policy through an agency
and insurer unaffiliated with the General Partner.  An affiliate of the 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 current year's master policy.  The agent assumed the financial
obligations to the affiliate of the General Partner who 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.

NOTE D - COMMITMENT

The Partnership is required by the Partnership Agreement to maintain working
capital reserves for contingencies of not less than 5% of Net Invested Capital,
as defined in the Partnership Agreement.  Cash, tenant security deposits and
investments, totaling approximately $11,000,000, were greater than the reserve
requirement of approximately $3,600,000 at June 30, 1997.

NOTE E - DISTRIBUTIONS

The Partnership made distributions of cash generated from operations of
approximately $838,000 and $1,823,000 for the six months ended June 30, 1997 and
1996.  The Partnership also made distributions of cash from surplus funds of
approximately $6,161,000 and $2,497,000 for the six months ended June 30, 1997
and 1996.

In April of 1997, the Partnership paid state withholding taxes of $6,000 for
non-resident limited partners.  This payment is reflected as a distribution to
the limited partners.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

The Partnership's investment properties consist of eight apartment complexes and
two commercial properties.  The following table sets forth the average occupancy
of the properties for each of the six months ended June 30, 1997 and 1996:

                                                    Average
                                                   Occupancy

Property                                        1997        1996

Cedar Rim Apartments                            94%          92%
  Renton, Washington
City Heights Apartments                         95%          96%
  Seattle, Washington
Corporate Center Office Complex                 97%          94%
  Tampa, Florida
Hidden Cove by the Lake Apartments              92%          92%
  Belleville, Michigan
Lamplighter Park Apartments                     95%          98%
  Belleview, Washington
Park Capitol Apartments                         98%          98%
  Salt Lake City, Utah
Tamarac Village Apartments                      94%          92%
  Denver, Colorado
Williamsburg Manor Apartments                   97%          95%
  Cary, North Carolina
Sandpiper Apartments                            95%          87%
  St. Petersburg, Florida
South City Business Center                      91%          86%
  Chula Vista, California

The General Partner attributes the increase in occupancy at Corporate Center to
current tenant expansions and several new tenants in previously vacant units.
The occupancy increase at Sandpiper is due to interior and exterior renovations
and improved market conditions.  South City Business Center's occupancy increase
is due to a stronger local market in 1997.

The Partnership realized net income of $1,074,000 for the six months ended June
30, 1997 compared to $702,000 for the six months ended June 30, 1996.  Net
income for the three months ended June 30, 1997 was $518,000 compared to
$427,000 for the three months ended June 30, 1996.  The increase in net income
for the six month period ended June 30, 1997 is primarily attributable to
increased rental income resulting from improved occupancy and increased rental
rates at several properties.  In addition, interest and other income increased
as a result of increased tenant charges at various properties as well as greater
interest earned on increased cash balances.  Total revenues were positively
affected by South City's revenue for the full six months ended June 30, 1997
compared to the period from February 14, 1996, the date of South City's
acquisition, to June 30, 1996.  Also contributing to the increase in net income
was a casualty gain of $16,000 relating to fire damage at Hidden Cove by the
Lake Apartments.  The January fire damaged ten units in one building at the
complex.  General and administrative expenses decreased due to a decrease in
professional fees and expense reimbursements.  Partially offsetting these
changes was an increase in interest expense.  The increase in interest expense
is due primarily to the refinancing of Tamarac Village and Lamplighter Park and
new debt on Hidden Cove, Cedar Rim and City Heights, whose debt balances
increased approximately $12,500,000 in November of 1996.

Included in maintenance expenses for the six months ended June 30, 1997 is
approximately $236,000 of major repairs and maintenance comprised primarily of
exterior renovations, major landscaping, exterior painting and swimming pool
repairs.  For the six months ended June 30, 1996, approximately $391,000 of
major repairs and maintenance comprised primarily of  exterior building
renovations, major landscaping, exterior painting  and parking lot
rehabilitation is included in maintenance expenses.

As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each 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 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
General Partner will be able to sustain such a plan.

At June 30, 1997, the Partnership held cash and cash equivalents of $10,389,000
compared to $7,185,000 at June 30, 1996.  Net cash provided by operating
activities increased primarily due to increased rental revenues and interest
income, partially offset by increased interest payments, as discussed above.
Net cash used in investing activities increased due to the funding of restricted
escrows required by the November 1996  refinancing.  Net cash used in financing
activities increased due to increased distributions to partners during the six
months ended June 30, 1997 compared to 1996.

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 various properties 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 notes payable of approximately $30,525,000 have maturity dates ranging from
2003 to 2005, at which time the individual properties will be refinanced or
sold.  The mortgage notes payable are nonrecourse and are secured by pledges of
the respective properties. All notes require prepayment penalties if repaid
prior to maturity and prohibit resale of the properties subject to existing
indebtedness.  Distributions of approximately $7,005,000 and $4,320,000 were
made to the partners during the six months ended June 30, 1997 and 1996,
respectively. Future cash distributions will depend on the levels of net cash
generated from operations or property sales, if any, and the availability of
cash reserves.




                                    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 June 30, 1997.



                                      SIGNATURES


  In accordance with 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.



                             CONSOLIDATED CAPITAL INSTITUTIONAL
                             PROPERTIES/3

                             By: CONCAP EQUITIES, INC.
                                 Its General Partner


                             By:/s/William H. Jarrard, Jr.
                                William H. Jarrard, Jr.
                                President


                             By:/s/ Ronald Uretta
                                Ronald Uretta
                                Vice President/Treasurer

   
                             Date: August 7, 1997