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

(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, 2000


[ ] 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 0-10273

                        CONSOLIDATED CAPITAL PROPERTIES III
         (Exact name of small business issuer as specified in its charter)



         California                                             94-2653686
(State or other jurisdiction of                              (I.R.S. Employer
 incorporation or organization)                             Identification No.)

                          55 Beattie Place, PO 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)

                       CONSOLIDATED CAPITAL PROPERTIES III

                           CONSOLIDATED BALANCE SHEET

                                   (Unaudited)

                          (in thousands, except unit data)

                               September 30, 2000
<TABLE>
<CAPTION>

Assets

<S>                                                           <C>             <C>
   Cash and cash equivalents                                                $   312
   Receivables and deposits                                                     370
   Restricted escrows                                                           123
   Other assets                                                                 204
   Investment properties:
      Land                                                   $   507
      Buildings and related personal property                 10,897
                                                              11,404
      Less accumulated depreciation                           (7,815)         3,589
                                                                            $ 4,598

Liabilities and Partners' (Deficit) Capital
Liabilities

   Accounts payable                                                         $    47
   Tenant security deposit liabilities                                           99
   Accrued property taxes                                                       132
   Other liabilities                                                            240
   Mortgage notes payable                                                     5,332

Partners' (Deficit) Capital

   General partner                                            $(1,840)
   Limited partners (158,582 units issued and
      outstanding)                                                588        (1,252)
                                                                            $ 4,598

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>



b)

                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                   (Unaudited)

                          (in thousands, except unit data)

<TABLE>
<CAPTION>

                                               Three Months              Nine Months
                                           Ended September 30,       Ended September 30,
                                            2000         1999         2000        1999
Revenues:
<S>                                        <C>          <C>         <C>          <C>
  Rental income                            $  742       $  722      $ 2,204      $ 2,143
  Other income                                 64           57          179          167
      Total revenues                          806          779        2,383        2,310

Expenses:
  Operating                                   373          362        1,086        1,096
  General and administrative                  111          128          284          272
  Depreciation                                140          116          417          339
  Interest                                    108           85          330          254
  Property taxes                               48           46          142          137
      Total expenses                          780          737        2,259        2,098

Income from continuing operations              26           42          124          212

(Loss) income from discontinued
  operations                                   --          (46)          --          175

Gain on sale of discontinued
  operations                                   --        2,161           --        2,161

Net income                                  $  26      $ 2,157       $  124      $ 2,548

Net income allocated to general
  partner (4%)                              $   1      $    86       $    5      $   102
Net income allocated to limited
  partners (96%)                               25        2,071          119        2,446

                                            $  26      $ 2,157        $ 124      $ 2,548
Per limited partnership unit:

  Income from continuing operations         $0.16      $  0.25       $ 0.75      $  1.28
  (Loss) income from discontinued
   operations                                  --        (0.27)          --         1.06
  Gain on sale of discontinued
    operations                                 --        13.08           --        13.08
Net income                                 $ 0.16      $ 13.06       $ 0.75      $ 15.42

Distributions per limited

  partnership unit                         $   --      $ 26.71       $ 6.74      $ 39.19

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

c)

                       CONSOLIDATED CAPITAL PROPERTIES III

          CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
                                   (Unaudited)

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                      Limited
                                     Partnership     General      Limited
                                        Units        Partners    Partners      Total


<S>                                    <C>             <C>       <C>          <C>
Original capital contributions         158,945         $ 1       $ 79,473     $ 79,474

Partners' (deficit) capital
   at December 31, 1999                158,582       $(1,828)     $ 1,538      $ (290)

Distributions to partners                  --            (17)      (1,069)     (1,086)

Net income for the nine months
   ended September 30, 2000                --              5          119          124

Partners' (deficit) capital
   at September 30, 2000               158,582       $(1,840)      $ 588      $(1,252)

            See Accompanying Notes to Consolidated Financial Statements
</TABLE>

d)
                       CONSOLIDATED CAPITAL PROPERTIES III

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                   (Unaudited)

                                 (in thousands)
<TABLE>
<CAPTION>

                                                                  Nine Months Ended
                                                                    September 30,

                                                                  2000         1999
Cash flows from operating activities:

<S>                                                               <C>         <C>
  Net income                                                      $  124      $ 2,548
  Adjustments to reconcile net income to net cash
   provided by operating activities:
   Depreciation                                                      417          365
   Amortization of lease commissions and loan costs                   24           32
   Gain on sale of discontinued operations                            --       (2,161)
   Change in accounts:
      Receivables and deposits                                      (188)        (151)
      Other assets                                                    (2)          13
      Accounts payable                                               (90)          (5)
      Due to general partner                                          --          160
      Tenant security deposit liabilities                              2          (40)
      Accrued property taxes                                         132          127
      Other liabilities                                              (19)          19

       Net cash provided by operating activities                     400          907

Cash flows from investing activities:

  Net proceeds from sale of discontinued operations                   --        3,426
  Property improvements and replacements                            (444)        (383)
  Net withdrawals from (deposits to) restricted escrows               10          (33)
       Net cash (used in) provided by investing activities          (434)       3,010

Cash flows from financing activities:

  Payment of loan costs                                              (10)          --
  Payments on mortgage note payable                                  (18)          --
  Distributions to partners                                       (1,086)      (2,204)

       Net cash used in financing activities                      (1,114)      (2,204)

Net (decrease) increase in cash and cash equivalents              (1,148)       1,713

Cash and cash equivalents at beginning of period                   1,460        2,883

Cash and cash equivalents at end of period                        $  312      $ 4,596

Supplemental disclosure of cash flow information:

  Cash paid for interest                                          $  298      $   231
Supplemental disclosure of non-cash financing activity:
  Distribution payable                                            $   --      $ 4,048

At December  31,  1999,  property  improvements  and  replacements  and accounts
payable were adjusted by approximately $167,000 for non-cash activity.

            See Accompanying Notes to Consolidated Financial Statements

</TABLE>


e)

                       CONSOLIDATED CAPITAL PROPERTIES III

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

Note A - Basis of Presentation

The accompanying  unaudited  consolidated  financial  statements of Consolidated
Capital Properties III (the "Partnership" or "Registrant") have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  to Form  10-QSB  and  Item  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.  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 nine month  periods  ended  September  30, 2000,  are not  necessarily
indicative  of the  results  that may be  expected  for the fiscal  year  ending
December 31, 2000. For further information,  refer to the consolidated financial
statements and footnotes thereto included in the Partnership's  Annual Report on
Form 10-KSB for the fiscal year ended December 31, 1999.

Consolidation

The Partnership's  financial  statements  include the accounts of ConCap Village
Green Associates,  Ltd. The Partnership owns a 99% interest in this partnership,
and it has the ability to control the major operating and financial  policies of
this partnership. All inter-entity transactions have been eliminated.

Certain  reclassifications  have been made to the 1999 information to conform to
the 2000 presentation.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into Apartment  Investment and Management Company  ("AIMCO"),  a publicly
traded real estate investment trust, with AIMCO being the surviving  corporation
(the "Insignia Merger").  As a result, AIMCO acquired 100% ownership interest in
the General Partner.  The General Partner does not believe that this transaction
has had or will have a material  effect on the  affairs  and  operations  of the
Partnership.

Note C - Discontinued Segment

On July 8, 1999,  Professional Plaza,  located in Salt Lake City, Utah, was sold
to an  unaffiliated  third  party  for  $3,600,000.  After  payment  of  closing
expenses,  the net  proceeds  received  by the  Partnership  were  approximately
$3,426,000.  For financial statement purposes, the sale of the property resulted
in a gain  on sale  of  discontinued  operations  of  approximately  $2,161,000.
Professional  Plaza  was the only  remaining  commercial  property  owned by the
Partnership and represented one segment of the Partnership's operations.  Due to
the sale of this property, the results of the commercial segment have been shown
as (loss) income from discontinued  operations on the consolidated  statement of
operations.  Revenues of this property were approximately  $425,000 for the nine
months  ended  September  30, 1999.  Income from  operations  was  approximately
$175,000 for the nine months  ended  September  30,  1999.  For the three months
ended  September  30, 1999 the property did not have any revenues and had a loss
from operations of approximately $46,000.

Note D - Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The  Limited  Partnership  Agreement  ("Partnership   Agreement")  provides  for
payments to affiliates of the General Partner for property  management  services
based on a percentage of revenue;  for a partnership  management fee equal to 9%
of the  total  distributions  made to  limited  partners  from  cash  flow  from
operations; and for reimbursements of certain expenses incurred by affiliates of
the General Partner on behalf of the Partnership.

The following  amounts were paid or accrued to the General Partner or affiliates
during  each of the nine  month  periods  ended  September  30,  2000 and  1999,
respectively:

                                                                  2000      1999
                                                                  (in thousands)

 Property management fees (included in operating expenses)        $117      $115

 Reimbursement for services of affiliates (included in
  investment properties and general and
  administrative expenses)                                         136        96

 Partnership management fees (included in general and
   administrative expenses)                                         41        88

 Real estate brokerage commission (included in due to
   general partner and gain on sale of discontinued
   operations)                                                      --       108

During the nine months  ended  September  30, 2000 and 1999,  affiliates  of the
General  Partner were  entitled to receive 5% of gross  receipts from all of the
Registrant's  residential  properties as  compensation  for  providing  property
management  services.  The  Registrant  paid  to such  affiliates  approximately
$117,000 and $115,000  for the nine months  ended  September  30, 2000 and 1999,
respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative  expenses amounting to approximately $136,000 and $96,000 for the
nine months ended September 30, 2000 and 1999, respectively.

The Limited  Partnership  Agreement  ("Partnership  Agreement")  provides  for a
special  management  fee  equal  to 9% of the  total  distributions  made to the
limited  partners  from  cash  flow from  operations  to be paid to the  General
Partner  for  executive  and  administrative  management  services.  Under  this
provision  of the  Partnership  Agreement,  fees of  approximately  $41,000  and
$88,000 were paid or accrued to the General Partner during the nine months ended
September 30, 2000 and 1999,  respectively.  At September 30, 1999 approximately
$52,000  was owed to the  General  Partner  and was  included in "Due to general
partner". This amount was paid subsequent to September 30, 1999.

Pursuant  to the  Partnership  Agreement,  the  General  Partner is  entitled to
receive a  commission  equal to 3% of the  aggregate  disposition  price of sold
properties. The Partnership paid a commission of $108,000 to the General Partner
related to the sale of Professional Plaza in 1999. This amount is subordinate to
the limited  partners  receiving  their original  capital  contributions  plus a
cumulative   preferred  return  of  6%  per  annum  of  their  adjusted  capital
investment,  as defined in the Partnership  Agreement.  If the limited  partners
have not received  these returns when the  Partnership  terminates,  the General
Partner will return this amount to the Partnership.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership, AIMCO and its affiliates currently own 75,694.5 limited partnership
units in the Partnership representing 47.732% of the outstanding units. A number
of these  units were  acquired  pursuant  to tender  offers made by AIMCO or its
affiliates.  It is possible that AIMCO or its  affiliates  will make one or more
additional offers to acquire  additional  limited  partnership  interests in the
Partnership  for cash or in exchange for units in the operating  partnership  of
AIMCO. Under the Partnership  Agreement,  unitholders  holding a majority of the
Units are  entitled to take action with  respect to a variety of matters,  which
would  include  without   limitation,   voting  on  certain  amendments  to  the
Partnership  Agreement and voting to remove the General Partner.  As a result of
its  ownership of 47.732% of the  outstanding  units,  AIMCO is in a position to
significantly  influence all voting  decisions  with respect to the  Registrant.
When voting on matters, AIMCO would in all likelihood vote the Units it acquired
in a manner  favorable to the interest of the General  Partner  because of their
affiliation with the General Partner.

Note E - Distributions

During the nine months ended  September 30, 2000,  the  Partnership  distributed
approximately  $1,086,000  (approximately  $1,069,000 to the limited partners or
$6.74  per  limited   partnership   unit),  of  which   approximately   $436,000
(approximately $419,000 to the limited partners or $2.64 per limited partnership
unit) was  attributable  to cash flow from  operations.  Approximately  $650,000
($4.10 per limited partnership unit) represented 1999 financing proceeds on West
Chase Apartments which was distributed entirely to the limited partners.  During
the nine months ended September 30, 1999, cash  distributions were paid totaling
approximately  $2,204,000  (approximately  $2,189,000 to the limited partners or
$13.80 per limited  partnership  unit) to the partners,  of which  approximately
$378,000  (approximately  $363,000  to the limited  partners,  $2.29 per limited
partnership  unit) was attributable to cash flow from operations.  Approximately
$1,826,000  ($11.51  per  limited  partnership  unit)  represented  a return  of
capital, all of which was paid to the limited partners.  Subsequent to September
30, 1999, a distribution of approximately $4,048,000  (approximately  $4,026,000
to the limited partners or $25.39 per limited  partnership unit) was paid to the
partners, of which approximately $550,000 (approximately $528,000 to the limited
partners or $3.33 per limited  partnership  unit) was attributable to cash flows
from operations and  approximately  $3,498,000  ($22.06 per limited  partnership
unit)  represented  sale proceeds from the sale of  Professional  Plaza,  all of
which was paid to the limited partners.

Note F - Financing of Investment Property

On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the amount of  $1,150,000.  The loan carries a stated  interest rate of 7.87%
and matures on December 1, 2019. The Partnership  received net proceeds from the
financing  in the amount of  approximately  $1,124,000.  The  Partnership  spent
approximately $29,000 on loan costs during the year ended December 31, 1999. The
Partnership spent approximately $10,000 on additional loan costs during the nine
months ended  September 30, 2000.  These loan costs are included in other assets
on the consolidated balance sheet.

Note G - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment  derives its revenues:  The  Partnership  had two  reportable  segments:
residential properties and commercial properties.  The Partnership's residential
property  segment  consists of three apartment  complexes,  one each in Orlando,
Florida;  Altamonte Springs,  Florida; and Lexington,  Kentucky. The Partnership
rents apartment  units to tenants for terms that are typically  twelve months or
less. On July 8, 1999, the commercial  property was sold to an unrelated  party.
Therefore,  the commercial  segment is reflected as discontinued  operations for
the 1999 period (see "Note C" for further discussion regarding the sale).

Measurement  of segment profit or loss: The  Partnership  evaluates  performance
based on segment profit (loss) before  depreciation.  The accounting policies of
the  reportable  segment are the same as those  described  in the  Partnership's
Annual Report on Form 10-KSB for the fiscal year ended December 31, 1999.

Factors  management used to identify the enterprise's  reportable  segment:  The
Partnership's reportable segments are investment properties that offer different
products and  services.  The  reportable  segments  are each managed  separately
because they provide  distinct  services  with  different  types of products and
customers.

Segment  information  for the three and nine month periods  ended  September 30,
2000 and 1999, is shown in the tables below (in  thousands).  The "Other" column
includes  Partnership  administration  related  items and income and expense not
allocated to the reportable segment.
<TABLE>
<CAPTION>

Three Months ended September 30, 2000               Residential      Other        Totals

<S>                                                    <C>            <C>           <C>
Rental income                                          $  742         $  --         $ 742
Other income                                               62             2            64
Interest expense                                          108            --           108
Depreciation                                              140            --           140
General and administrative expenses                        --           111           111
Segment profit (loss)                                     135          (109)           26
</TABLE>

<TABLE>
<CAPTION>

Nine Months ended September 30, 2000                Residential       Other        Totals

<S>                                                   <C>              <C>        <C>
Rental income                                         $ 2,204          $  --      $ 2,204
Other income                                              165             14          179
Interest expense                                          330             --          330
Depreciation                                              417             --          417
General and administrative expenses                        --            284          284
Segment profit (loss)                                     394           (270)         124
Total assets                                            4,373            225        4,598
Capital expenditures for investment
  properties                                              444             --          444
</TABLE>

<TABLE>
<CAPTION>

 Three Months ended September 30, 1999    Residential    Commercial      Other      Totals
                                                       (discontinued)
<S>                                          <C>             <C>           <C>       <C>
Rental income                                $  722          $  --         $ --      $ 722
Other income                                     45             --           12         57
Interest expense                                 85             --           --         85
Depreciation                                    116             --           --        116
General and administrative
  expenses                                       --             --          128        128
(Loss) from discontinued
  operations                                     --            (46)          --        (46)
Gain on sale of
  discontinued operations                        --          2,161           --      2,161
Segment profit (loss)                           158          2,115         (116)     2,157
</TABLE>

<TABLE>
<CAPTION>

  Nine Months ended September 30, 1999    Residential    Commercial      Other      Totals
                                                       (discontinued)
<S>                                         <C>              <C>          <C>      <C>
Rental income                               $ 2,143          $  --        $  --    $ 2,143
Other income                                    135             --           32        167
Interest expense                                254             --           --        254
Depreciation                                    339             --           --        339
General and administrative
  expenses                                       --             --          272        272
Income from discontinued
  operations                                     --            175           --        175
Gain on sale of discontinued
  operations                                     --          2,161           --      2,161
Segment profit (loss)                           452          2,336         (240)     2,548
Total assets                                  4,558            111        3,895      8,564
Capital expenditures for
  investment properties                         341             42           --        383
</TABLE>

Note H - Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   its  General  Partner  and  several  of  their   affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  The  plaintiffs  seek
monetary damages and equitable  relief,  including  judicial  dissolution of the
Partnership.  On June 25,  1998,  the  General  Partner  filed a motion  seeking
dismissal of the action.  In lieu of  responding to the motion,  the  plaintiffs
have filed an amended  complaint.  The General  Partner  filed  demurrers to the
amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  at
which time the Court set a final approval  hearing for December 10, 1999.  Prior
to the December 10, 1999 hearing,  the Court received various  objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case.  The Court is considering  applications  for lead counsel and has
currently  scheduled a hearing on the matter for November 20, 2000.  The General
Partner  does not  anticipate  that  costs  associated  with  this  case will be
material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

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

The  matters  discussed  in this Form  10-QSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-QSB and the other  filings  with the  Securities  and
Exchange Commission made by the Registrant from time to time. The discussions of
the Registrant's business and results of operations,  including  forward-looking
statements pertaining to such matters, does not take into account the effects of
any changes to the Registrant's business and results of operations. Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

The Partnership's  investment  properties consist of three apartment  complexes.
The following table sets forth the average  occupancy of the properties for each
of the nine month periods ended September 30, 2000 and 1999:

                                                   Average Occupancy

      Property                                      2000       1999

      Ventura Landing Apartments                    94%        94%
        Orlando, Florida

      Village Green Apartments                      94%        95%
        Altamonte Springs, Florida

      West Chase Apartments                         91%        94%
        Lexington, Kentucky

The  General  Partner  attributes  the  decrease  in  occupancy  at  West  Chase
Apartments to increased competition in the apartment rental market in Lexington,
Kentucky.

Results of Operations

The  Partnership's  net income for the nine months ended  September 30, 2000 was
approximately  $124,000  as compared to  approximately  $2,548,000  for the nine
months ended  September  30, 1999.  The  Partnership's  net income for the three
months ended  September 30, 2000, was  approximately  $26,000 as compared to net
income of  approximately  $2,157,000  for the three months ended  September  30,
1999.  The  decrease  in net income for the three and nine month  periods  ended
September  30,  2000 is  primarily  attributable  to the  gain on sale  from the
discontinued  operations of Professional  Plaza of  approximately  $2,161,000 in
addition  to the (loss)  income  from  discontinued  operations  included in net
income for the three and nine months  ended  September  30,  1999.  Professional
Plaza was sold July 8, 1999, as discussed below.

Excluding the impact of the operations of Professional Plaza, the Registrant had
income from continuing operations of approximately $124,000 and $212,000 for the
nine months  ending  September  30, 2000 and 1999,  respectively.  Excluding the
impact of the operations of Professional  Plaza,  the Registrant had income from
continuing  operations of approximately $26,000 and $42,000 for the three months
ending  September 30, 2000 and 1999,  respectively.  The decrease in income from
continuing operations for the three and nine months ended September 30, 2000 was
due to an increase in total  expenses  partially  offset by an increase in total
revenues.

Total expenses for the three and nine months ended  September 30, 2000 increased
primarily due to an increase in depreciation and interest expense.  Depreciation
expense  increased due to capital  improvements  completed  during the past year
which are now being depreciated. Interest expense increased due to the financing
of West Chase  Apartments in December 1999. Other expenses  remained  relatively
constant for both the three and nine months ended September 30, 2000.

Total  revenues  increased for the three and nine month periods ended  September
30, 2000 primarily due to an increase in rental income,  and to a lesser extent,
an increase in other income.  Rental income increased primarily due to increased
average  rental  rates  at  all  of the  Partnership's  residential  properties,
partially offset by a decrease in occupancy at West Chase Apartments and Village
Green  Apartments.  Other income increased  primarily due to increased  interest
income at all of the Partnership's residential properties.

On July 8, 1999,  Professional Plaza,  located in Salt Lake City, Utah, was sold
to an  unaffiliated  third  party  for  $3,600,000.  After  payment  of  closing
expenses,  the net  proceeds  received  by the  Partnership  were  approximately
$3,426,000.  The sale of the property resulted in a gain on sale of discontinued
operations  of  approximately  $2,161,000.   Professional  Plaza  was  the  only
remaining  commercial  property owned by the  Partnership  and  represented  one
segment of the Partnership's  operations.  Due to the sale of this property, the
results  of the  commercial  segment  have  been  shown as  (loss)  income  from
discontinued operations on the consolidated statement of operations. Revenues of
this property were  approximately  $425,000 for the nine months ended  September
30, 1999. Income from operations was approximately  $175,000 for the nine months
ended  September  30, 1999.  For the three months ended  September  30, 1999 the
property  did  not  have  any  revenues  and  had  a  loss  from  operations  of
approximately $46,000.

Included  in  general  and  administrative  expenses  for both of the nine month
periods  ended  September  30, 2000 and 1999 are  reimbursements  to the General
Partner allowed under the Partnership Agreement.  In addition,  costs associated
with the  quarterly and annual  communications  with  investors  and  regulatory
agencies and the annual audit  required by the  Partnership  Agreement  are also
included.

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.

Liquidity and Capital Resources

As of September 30, 2000,  the  Partnership  held cash and cash  equivalents  of
approximately  $312,000  compared to  approximately  $4,596,000 at September 30,
1999. The decrease in cash and cash equivalents of approximately $1,148,000 from
the Partnership's year ended December 31, 1999, is due to approximately $434,000
of cash used in investing  activities and approximately  $1,114,000 of cash used
in  financing  activities  partially  offset by  approximately  $400,000 of cash
provided by operating  activities.  Cash used in investing  activities consisted
primarily  of property  improvements  and  replacements  slightly  offset by net
withdrawals from escrow accounts  maintained by the mortgage lenders.  Cash used
in financing  activities  consisted  primarily of distributions to the partners,
and, to a lesser  extent,  loan costs and payments on the mortgage  note payable
encumbering West Chase  Apartments.  The Registrant  invests its working capital
reserves in a money market account.

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  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. Capital improvements planned
for each of the Registrant's properties are detailed below.

Village Green

During the nine months ended  September  30,  2000,  the  Partnership  completed
approximately  $129,000  of capital  improvements  at Village  Green  Apartments
consisting  primarily  of  parking  lot  improvements,  light  fixtures,  carpet
replacement,  exterior painting, and structural improvements. These improvements
were funded from cash  provided by  operations  and  replacement  reserves.  The
Partnership has evaluated the capital  improvement needs of the property for the
year 2000. The amount budgeted is approximately  $199,000,  consisting primarily
of  structural  improvements,   air  conditioning  unit  replacement,   plumbing
upgrades, and carpet replacements. Additional improvements may be considered and
will depend on the physical  condition  of the  property as well as  replacement
reserves and anticipated cash flow generated by the property.

West Chase

During the nine months ended  September  30,  2000,  the  Partnership  completed
approximately   $21,000  of  capital   improvements  at  West  Chase  Apartments
consisting  primarily of carpet and vinyl  replacement  and  plumbing  upgrades.
These improvements were funded from cash provided by operations. The Partnership
has evaluated the capital  improvement  needs of the property for the year 2000.
The amount budgeted is approximately $42,000, consisting primarily of appliances
and carpet and vinyl replacements. Additional improvements may be considered and
will depend on the physical  condition  of the  property as well as  replacement
reserves and anticipated cash flow generated by the property.

Ventura Landing

During the nine months ended  September  30,  2000,  the  Partnership  completed
approximately  $127,000 of budgeted and  non-budgeted  capital  improvements  at
Ventura Landing Apartments  consisting  primarily of carpet and tile replacement
and parking lot improvements.  These improvements were funded from cash provided
by  operations  and  replacement  reserves.  The  Partnership  has evaluated the
capital improvement needs of the property for the year 2000. The amount budgeted
is  approximately  $136,000,  consisting  primarily  of  air  conditioning  unit
replacement, plumbing upgrades, and carpet replacements. Additional improvements
may be considered  and will depend on the physical  condition of the property as
well  as  replacement  reserves  and  anticipated  cash  flow  generated  by the
property.

The  capital  expenditures  will be  incurred  only if  cash is  available  from
operations  or from  Partnership  reserves.  To the  extent  that such  budgeted
capital improvements are required, the Registrant's  distributable cash flow, if
any, may be adversely affected at least in the short term.

The  Registrant's  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Registrant.  The  mortgage
indebtedness  at Village  Green and Ventura  Landing  Apartments  of  $4,200,000
requires interest only payments with the principal balance due in November 2003.
On December 1, 1999, the Partnership obtained financing on West Chase Apartments
in the  amount  of  $1,150,000  and the  current  balance  of this  mortgage  is
approximately $1,132,000.  Payments are due on the first day of each month until
the loan  matures on  December  1, 2019.  The General  Partner  will  attempt to
refinance such  indebtedness  and/or sell the properties  prior to such maturity
dates. If the properties  cannot be refinanced or sold for a sufficient  amount,
the Registrant may risk losing such properties through foreclosure.

During the nine months ended  September 30, 2000,  the  Partnership  distributed
approximately  $1,086,000  (approximately  $1,069,000 to the limited partners or
$6.74  per  limited   partnership   unit),  of  which   approximately   $436,000
(approximately $419,000 to the limited partners or $2.64 per limited partnership
unit) was  attributable  to cash flow from  operations.  Approximately  $650,000
($4.10 per limited partnership unit) represented 1999 financing proceeds on West
Chase Apartments which was distributed entirely to the limited partners.  During
the nine months ended September 30, 1999, cash  distributions were paid totaling
approximately  $2,204,000  (approximately  $2,189,000 to the limited partners or
$13.80 per limited  partnership  unit) to the partners,  of which  approximately
$378,000  (approximately  $363,000  to the limited  partners,  $2.29 per limited
partnership  unit) was attributable to cash flow from operations.  Approximately
$1,826,000  ($11.51  per  limited  partnership  unit)  represented  a return  of
capital, all of which was paid to the limited partners.  Subsequent to September
30, 1999, a distribution of approximately $4,048,000  (approximately  $4,026,000
to the limited partners or $25.39 per limited  partnership unit) was paid to the
partners, of which approximately $550,000 (approximately $528,000 to the limited
partners or $3.33 per limited  partnership  unit) was attributable to cash flows
from operations and  approximately  $3,498,000  ($22.06 per limited  partnership
unit)  represented  sale proceeds from the sale of  Professional  Plaza,  all of
which was paid to the limited partners. Future cash distributions will depend on
the levels of net cash  generated  from  operations,  the  availability  of cash
reserves,   and  the  timing  of  debt  maturities,   property  sales,  and  /or
refinancings. The Partnership's distribution policy is reviewed on a semi-annual
basis.  There can be no assurance,  however,  that the Partnership will generate
sufficient funds from operations  after required capital  expenditures to permit
any  additional  distributions  to its partners  during the remainder of 2000 or
subsequent periods.

                           PART II - OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial  Group,  Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   its  General  Partner  and  several  of  their   affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging the acquisition of interests in certain general partner
entities by Insignia Financial Group, Inc. ("Insignia") and entities which were,
at one  time,  affiliates  of  Insignia;  past  tender  offers  by the  Insignia
affiliates to acquire limited  partnership units; the management of partnerships
by the  Insignia  affiliates;  and the  Insignia  Merger.  The  plaintiffs  seek
monetary damages and equitable  relief,  including  judicial  dissolution of the
Partnership.  On June 25,  1998,  the  General  Partner  filed a motion  seeking
dismissal of the action.  In lieu of  responding to the motion,  the  plaintiffs
have filed an amended  complaint.  The General  Partner  filed  demurrers to the
amended complaint which were heard February 1999.

Pending the ruling on such  demurrers,  settlement  negotiations  commenced.  On
November 2, 1999,  the parties  executed and filed a Stipulation  of Settlement,
settling claims,  subject to final court approval,  on behalf of the Partnership
and all limited  partners  who owned  units as of November 3, 1999.  Preliminary
approval of the settlement  was obtained on November 3, 1999 from the Court,  at
which time the Court set a final approval  hearing for December 10, 1999.  Prior
to the December 10, 1999 hearing,  the Court received various  objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement.  On
December  14,  1999,  the General  Partner  and its  affiliates  terminated  the
proposed settlement.  In February 2000, counsel for some of the named plaintiffs
filed a motion to disqualify plaintiff's lead and liaison counsel who negotiated
the settlement.  On June 27, 2000, the Court entered an order disqualifying them
from the case.  The Court is considering  applications  for lead counsel and has
currently  scheduled a hearing on the matter for November 20, 2000.  The General
Partner  does not  anticipate  that  costs  associated  with  this  case will be
material to the Partnership's overall operations.

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 filed during the quarter  ended  September
                  30, 2000:

                  None.

                                   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.

                                    CONSOLIDATED CAPITAL PROPERTIES III


                                    By:   CONCAP EQUITIES, INC.
                                          Its General Partner

                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President
                                          and Controller

                                    Date: November 8, 2000