<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                    FORM 10-Q


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

                  For the Quarterly Period Ended MARCH 31, 1999

                         Commission File Number 33-22857

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A California Limited Partnership)

                  I.R.S. Employer Identification No. 95-4166241

                         9090 WILSHIRE BLVD., SUITE 201
                           BEVERLY HILLS, CALIF. 90211

                         Registrant's Telephone Number,
                       Including Area Code (310) 278-2191


Indicate by check mark whether the registrant (1) has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding twelve 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 []



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                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                               INDEX TO FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 1999

<TABLE>
<CAPTION>
<S>                                                                                        <C>
PART I. FINANCIAL INFORMATION

      Item 1.  Financial Statements and Notes to Financial Statements

                  Balance Sheets, March 31, 1999 and December 31, 1998 .....................1

                  Statements of Operations,
                        Three Months Ended March 31, 1999 and 1998..........................2

                  Statement of Partners' Capital (Deficiency)
                        Three Months Ended March 31, 1999 ..................................3

                  Statements of Cash Flows
                        Three Months Ended March 31, 1999 and 1998..........................4

                  Notes to Financial Statements ............................................5

      Item 2.  Management's Discussion and Analysis of Financial
                        Condition and Results of Operations ................................9


PART II. OTHER INFORMATION

      Item 1.  Legal Proceedings............................................................9

      Item 6.  Exhibits and Reports on Form 8-K.............................................9

      Signatures ..........................................................................10
</TABLE>




<PAGE>   3

                 CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 BALANCE SHEETS

                      MARCH 31, 1999 AND DECEMBER 31, 1998

ASSETS

<TABLE>
<CAPTION>
                                                     1999               1998
                                                 (Unaudited)          (Audited)
                                                -------------       --------------
<S>                                             <C>                  <C>
CASH DUE FROM ESCROW (Note 2)                   $        --          $57,836,152

CASH AND CASH EQUIVALENTS (Note 1)                1,510,342            5,505,534

RESTRICTED CASH (Notes 1)                           158,700              158,700

OTHER ASSETS (Note 5)                                84,542               94,363
                                                -----------          -----------

                                                $ 1,753,584          $63,594,749
                                                ===========          ===========

LIABILITIES AND PARTNERS' CAPITAL

ACCOUNTS PAYABLE AND ACCRUED
      LIABILITIES                               $     9,556          $   436,035


COMMITMENTS AND CONTINGENCIES (Note 4)

PARTNERS' CAPITAL (Note 1)                        1,744,028           63,158,714
                                                -----------          -----------

                                                $ 1,753,584          $63,594,749
                                                ===========          ===========
</TABLE>



   The accompanying notes are an integral part of these financial statements.



                                       1
<PAGE>   4

                  CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                              STATEMENTS OF INCOME
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                     1998                1998
                                                  ----------          ----------
<S>                                               <C>                 <C>
REVENUES
     Rental income                                $                   $1,492,831
     Interest and other income                       209,843              87,447
                                                  ----------          ----------
                                                     209,843           1,580,278
                                                  ----------          ----------

EXPENSES
     Operating                                        51,813             311,750
     Property taxes                                                       64,067
     Management fee                                                       45,213
     General and administrative (Note 3)             118,364              91,088
     Depreciation                                                        176,389
                                                  ----------          ----------

                                                     170,177             688,507
                                                  ----------          ----------

NET INCOME                                        $   39,666          $  891,771
                                                  ==========          ==========

NET INCOME PER DEPOSITORY UNIT                    $     0.01          $     0.12
                                                  ==========          ==========
</TABLE>


   The accompanying notes are an integral part of these financial statements.




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<PAGE>   5

                  CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                  STATEMENTS OF PARTNERS' CAPITAL (DEFICIENCY)
                        THREE MONTHS ENDED MARCH 31, 1999
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                Special Limited
                                        General               Limited               Partner
                                       Partners               Partners              (Note 1)                  Total
                                     ------------           ------------        ---------------           ------------
<S>                                  <C>                    <C>                   <C>                     <C>
PARTNERSHIP INTERESTS
                                                            ============

BALANCE, JANUARY 1, 1999             $    (18,942)          $ 61,605,222           $  1,572,434           $ 63,158,714

DISTRIBUTIONS (Note 2)                   (228,545)           (59,653,373)            (1,572,434)           (61,454,352)

NET INCOME FOR THE THREE
MONTHS ENDED MARCH 31, 1999                   397                 39,269                                        39,666
                                     ------------           ------------           ------------           ------------

BALANCE, MARCH 31, 1999              $   (247,090)          $  1,991,118           $          0           $  1,744,028
                                     ============           ============           ============           ============
</TABLE>



   The accompanying notes are an integral part of these financial statements.



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<PAGE>   6

                  CENTURY HILLCRESTE APARTMENTS INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                            STATEMENTS OF CASH FLOWS
                   THREE MONTHS ENDED MARCH 31, 1999 AND 1998


<TABLE>
<CAPTION>
                                                                                   1999                   1998
                                                                               ------------           ------------
<S>                                                                            <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net  income                                                               $     39,666           $    891,771
     Adjustments to reconcile net income to net
        cash (used in) provided by operating activities:
           Depreciation                                                                                    176,389
           Decrease (increase) in other assets                                        9,821                 28,477
           Increase (decrease) in accounts payable and
               accrued liabilities                                                 (426,479)                12,872
           Increase (decrease) in security deposits                                                          9,889
           Increase (decrease) in prepaid rent                                                              (4,431)
                                                                               ------------           ------------

                  Net cash (used in) provided by operating activities              (376,992)             1,114,967
                                                                               ------------           ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Cash proceeds from escrow                                                   57,836,152                     --
     Increase in rental property                                                         --                 (1,840)
                                                                               ------------           ------------

                  Net cash provided by (used in) investing activities            57,836,152                 (1,840)
                                                                               ------------           ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Distributions to partners                                                  (61,454,352)              (601,022)
                                                                               ------------           ------------


NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                             (3,995,192)               512,105

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                    5,505,534              4,100,537
                                                                               ------------           ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                                       $  1,510,342           $  4,612,642
                                                                               ============           ============
</TABLE>


   The accompanying notes are an integral part of these financial statements.



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<PAGE>   7


                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                          NOTES TO FINANCIAL STATEMENTS

                                 MARCH 31, 1999


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

        GENERAL

        The information contained in the following notes to the financial
        statements is condensed from that which would appear in the annual
        financial statements; accordingly, the financial statements included
        herein should be reviewed in conjunction with the financial statements
        and related notes thereto contained in the Annual Report for the year
        ended December 31, 1998 prepared by Century HillCreste Apartment
        Investors, L.P. (the "Partnership"). Accounting measurements at interim
        dates inherently involve greater reliance on estimates than at year end.
        The results of operations for the interim periods presented are not
        necessarily indicative of the results for the entire year.

        In the opinion of National Partnership Investments Corp. ("NAPICO"), the
        accompanying unaudited financial statements contain all adjustments
        (consisting primarily of normal recurring accruals) necessary to present
        fairly the financial position as of March 31, 1999, and the results of
        operations and changes in cash flows for the three months then ended.

        ORGANIZATION

        Century HillCreste Apartment Investors, L.P. (the "Partnership"), a
        California limited partnership, was formed on June 6, 1988, with
        National Partnership Investments Corp. (the "Managing General Partner"),
        and HillCreste Properties Inc. (the "Non-Managing General Partner") as
        the general partners (collectively, the "General Partners"). On October
        26, 1988, the Partnership issued to investors (the "Limited Partners")
        7,258,000 depositary units (each depositary unit being entitled to the
        beneficial interest of a limited partnership interest), for a total
        amount raised of $72,580,000, through a public offering.

        Prior to December 30, 1998, NAPICO was a wholly owned subsidiary of
        Casden Investment Corporation ("CIC"), which is wholly owned by Alan I.
        Casden. On December 30, 1998, Casden Properties Operating Partnership,
        L.P., (the "Operating Partnership"), a majority owned subsidiary of
        Casden Properties Inc., a real estate investment trust organized by Alan
        I. Casden, purchased a 95.25% economic interest in NAPICO.

        Concurrent with the issuance of the depositary units, the Partnership
        purchased a 315-unit apartment complex in the Century City area of Los
        Angeles, California (the "Property") from Casden Properties (the
        "Seller"). To complete the purchase of the Property, the Seller
        purchased a 10% special limited partnership interest in the Partnership
        for $6,855,000 and became the Special Limited Partner of the
        Partnership.

        Among other things, the Partnership Agreement provides that the 10%
        special limited partnership interest be subordinate to the other Limited
        Partners' specified priority return in the case of distributions of net
        cash flow from operations, plus the other Limited Partners' return of
        capital in the case of net sales or refinancing distribution proceeds.




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<PAGE>   8

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1999

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


        On December 30, 1998, the Partnership sold the Property for $58,500,000
        to the Operating Partnership. The partners intend to dissolve the
        Partnership in 1999.

        USE OF ESTIMATES

        The preparation of financial statements in conformity with generally
        accepted accounting principles requires management to make estimates and
        assumptions that affect the reported amounts of assets and liabilities
        and disclosure of contingent assets and liabilities at the date of the
        financial statements and reported amounts of revenues and expenses
        during the reporting period. Actual results could differ from those
        estimates.

        MINIMUM DISTRIBUTION GUARANTEE

        The minimum distribution guarantee payments from the seller have been
        reflected as a reduction in the carrying amount of the Property.

        CASH AND CASH EQUIVALENTS

        Cash and cash equivalents consists of cash and bank certificates of
        deposit with an original maturity of three months or less. The
        Partnership has its cash and cash equivalents on deposit primarily with
        one money market mutual fund. Such cash and cash equivalents are
        uninsured.

        RESTRICTED CASH

        Restricted cash consists of bank certificates of deposits assigned to
        the City of Los Angeles in lieu of purchasing a subdivision improvement
        bond to effectuate the privatization of city streets located within the
        Property's perimeter during 1998. The Partnership is in process of
        having the assignment released.

        INCOME TAXES

        No provision has been made for income taxes in the accompanying
        financial statements as such taxes, if any, are the liability of the
        partners.

        NET INCOME PER DEPOSITORY UNIT

        Net income per depository unit was computed by dividing the limited
        partners' share of net income (99 percent) by the number of depository
        units outstanding during the year. The number of depository units was
        7,258,000 for the periods presented.




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<PAGE>   9

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1999

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)


        IMPAIRMENT OF LONG-LIVED ASSETS

        The Partnership reviews long-lived assets to determine if there has been
        any permanent impairment whenever events or changes in circumstances
        indicate that the carrying amount of the asset may not be recoverable.
        If the sum of the expected future cash flows is less than the carrying
        amount of the assets, the Partnership recognizes an impairment loss.

NOTE 2 - RENTAL PROPERTY

        On December 30, 1998, the Partnership sold the Property for $58,500,000
        to the Operating Partnership, an affiliate of NAPICO. The sale resulted
        in net cash proceeds to the Partnership of $57,916,894 and a gain of
        $24,646,417. The cash proceeds were held in escrow at December 31, 1998
        and were collected in 1999.

        In March 1999, the Partnership made cash distributions of $59,653,373 to
        the limited partners, $1,572,434 to the special limited partner and
        $228,545 to the general partners, primarily using proceeds from the sale
        of the building.

NOTE 3 - FEES PAID TO GENERAL PARTNERS AND AFFILIATES

        In accordance with the Partnership Agreement certain fees and
        reimbursements are paid to the General Partners and their affiliates as
        follows:

        (a)     A Partnership management fee payable to the Managing General
                Partner of $50,000 annually. The fee is included in general and
                administrative expenses.

        (b)     The Managing General Partner is entitled to receive 1 percent of
                distributions (as defined in the Partnership Agreement). This is
                paid quarterly by the Partnership to the Managing General
                Partner.

NOTE 4 - COMMITMENTS AND CONTINGENCIES

        a.      The Managing General Partner of the Partnership is a plaintiff
                in various lawsuits and has also been named as a defendant in
                other lawsuits arising from transactions in the ordinary course
                of business. In the opinion of management and the Managing
                General Partner, the claims will not result in any material
                liability to the Partnership. In addition, the Partnership is
                involved in the actions described below:

        b.      The order concerns, in part, the treatment of Partnership funds
                deposited between September 1991 and July 1993 in a master
                disbursement





                                       7
<PAGE>   10

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                 MARCH 31, 1999

NOTE 4 - COMMITMENTS AND CONTINGENCIES (CONTINUED)


                account used by the Partnership's previous property management
                company. The Commission found that those funds should have been
                recorded on the Partnership's books and reported in its
                financial statements as related party accounts receivable rather
                than as cash as done so by the Partnership's auditors. Although
                the Commission found that this misclassification of current
                assets violated federal securities laws, the Commission did not
                find that these violations were intentional nor did the
                Commission find that limited partners had suffered any loss or
                damage as a result of these violations. Moreover, the
                Commission's order does not impose any cost, burden or penalty
                on the Partnership and does not impact NAPICO's ability to serve
                as the Partnership's Managing General Partner.


                The events that gave rise to the Commission's order occurred in
                or before 1993. Subsequent corrective action by the Partnership
                and its general partners precludes any recurrence of the cash
                management issues described in the Commission's order.

        c.      On February 13, 1997, J/B Investment Partners ("J/B") filed an
                action in the Los Angeles Superior Court (the "J/B Lawsuit"),
                against the Managing General Partner and its directors, and
                Casden Properties and certain of its affiliates (collectively,
                the "Defendants").

                By order dated November 25, 1997, the Los Angeles Superior Court
                dismissed the J/B Lawsuit with prejudice. No appeal has been
                taken.

                The J/B Lawsuit was styled as a class action brought against the
                Defendants on behalf of all limited partners of the Partnership,
                and a derivative action brought on behalf of the Partnership
                itself. The Partnership was named as a "nominal defendant." The
                complaint in the J/B Lawsuit contained four causes of action:
                (a) breach of fiduciary duty; (b) breach of contract; (c) unjust
                enrichment; and (d) equitable relief.

        d.      The Partnership has assessed the potential impact of the Year
                2000 computer systems issue on its operations. The Partnership
                believes that no significant actions are required to be taken by
                the Partnership to address the issue and that the impact of the
                Year 2000 computer systems issue will not materially affect the
                Partnership's future operating results or financial condition.

NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS

        Statement of Financial Accounting Standards No. 107, "Disclosure about
        Fair Value of Financial Instruments," requires disclosure of fair value
        information about financial instruments. The carrying amounts of assets
        and liabilities reported on the balance sheets that require such
        disclosure approximate fair value due to their short-term maturity.




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<PAGE>   11

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1999


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

        CAPITAL RESOURCES AND LIQUIDITY

        The Partnership raised proceeds of $72,580,000 from the sale of
        depository units, pursuant to a public offering and received additional
        capital contributions from the General Partners of $1,050 and from the
        special limited partner of $6,855,000. Currently, the only sources of
        Partnership income consist of income from rental operations at the
        Property and interest earned on Partnership reserves.

        The Partnership pledged a certificate of deposit in the amount of
        $158,700 to the City of Los Angeles, to secure an improvement guarantee
        on the construction of a storm drain and related improvement, which was
        completed in 1998. Upon final inspection, the Partnership will receive
        its deposit of $158,700.

        RESULTS OF OPERATIONS

        Due to the sale of the building on December 31, 1999, operations in 1999
        consist of interest and other income and general and administrative
        expenses. Included in the interest and other income is interest income
        earned on cash and cash equivalents of $206,756 and $58,000 for the
        three months ended March 31, 1999 and 1998, respectively. Interest
        income increased in 1998 as compared to 1998 as a result of interest
        earned on cash proceeds from the sale of the Property. The Partnership
        has its cash and cash equivalents on deposit primarily with one money
        market mutual fund.

        The Partnership has assessed the potential impact of the Year 2000
        computer systems issue on its operations. The Partnership believes that
        no significant actions are required to be taken by the Partnership to
        address the issue and that the impact of the Year 2000 computer systems
        issue will not materially affect the Partnership's future operating
        results or financial condition.

PART II - OTHER INFORMATION

        ITEM 1. LEGAL PROCEEDINGS

        As of March 31, 1999, NAPICO, the Managing General Partner, was a
        plaintiff or defendant in several lawsuits, which are unrelated to the
        Partnership. In addition, the Partnership is involved in the actions
        described below:

        ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a)     No reports on Form 8-K were filed during the quarter ended March
                31, 1999.




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<PAGE>   12

                  CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
                       (A CALIFORNIA LIMITED PARTNERSHIP)

                                 MARCH 31, 1999


                                   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.


           CENTURY HILLCRESTE APARTMENT INVESTORS, L.P.
           (a California limited partnership)


           By: National Partnership Investments Corp.
               Managing General Partner



               /s/ BRUCE NELSON
               ---------------------------------------
               Bruce Nelson
               President


           Date:           May 20, 1999
               ---------------------------------------



               /s/ CHARLES H. BOXENBAUM
               ---------------------------------------
               Charles H. Boxenbaum
               Chief Executive Officer


           Date:              May 20, 1999
                --------------------------------------



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