<PAGE>
                                    FORM 10-Q

                        SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


(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, 1996

                                         OR

            ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                          SECURITIES EXCHANGE ACT OF 1934

                           Commission file number 0-17617


                        LUTHERAN BROTHERHOOD REALTY FUND I,
                          a California limited partnership
              (Exact name of registrant as specified in its charter)

California                                                       94-3046442
(State or other jurisdiction            (I.R.S. Employer Identification No.)
of incorporation or organization)

                             625 Fourth Avenue South
                           Minneapolis, Minnesota 55415
                   (Address of principal executive offices)


                                 (612) 339-8091
               (Registrant's telephone number, including area code)


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 _____



<PAGE>
                         PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

In the opinion of Lutheran Brotherhood Real Estate Products Company (the 
"General Partner"), the General Partner of Lutheran Brotherhood Realty Fund 
I, a California limited partnership (the "Partnership"), all adjustments 
necessary for a fair presentation of the Partnership's results have been 
made in the following financial statements for the interim periods 
presented.  All such adjustments are of a recurring nature.  However, such 
financial statements are unaudited and subject to any year-end adjustments 
that may be necessary.

<TABLE>
                      LUTHERAN BROTHERHOOD REALTY FUND I
                               BALANCE SHEET
                                (thousands)
<CAPTION>
                                         (Unaudited)
                                        September 30,    December 31,
                                             1996            1995     
                                        ------------     ------------
<S>                                         <C>            <C>
ASSETS

Real estate investment, at cost:
  Land                                      $  636         $  636
  Buildings                                  1,612          1,612
                                            ------         ------
                                             2,248          2,248
  Less:  Accumulated depreciation             (345)          (319)
                                            ------        -------
                                             1,903          1,929

Investments in joint ventures                1,560          2,105
Cash and cash equivalents                    1,970            610
Receivables from affiliates                                     6
Deferred charges (net) and other assets        216             56
                                            ------         ------
  Total Assets                              $5,649         $4,706
                                            ======         ======

LIABILITIES AND PARTNERS' EQUITY

Payables to affiliates                      $   72         $
Real estate taxes payable                       33
Other liabilities                                3              2
                                            ------         ------
  Total Liabilities                            108              2
                                            ------         ------

Partners' Equity
  Limited Partners' - 63,803 units
  outstanding in 1996 and 1995               5,520          4,693
  General Partner                               21             11
                                            ------         ------
  Total Partner's Equity                     5,541          4,704
                                            ------         ------
  Total Liabilities and Partners' Equity    $5,649         $4,706
                                            ======         ======

                           See accompanying notes.
</TABLE>



<PAGE>
<TABLE>
                                       LUTHERAN BROTHERHOOD REALTY FUND I
                                            STATEMENT OF OPERATIONS
                                                  (Unaudited)
                                     (thousands except per share amounts)

<CAPTION>
                                              Three Months Ended          Nine Months Ended
                                                  September 30,             September 30,
                                               1996       1995            1996         1995
                                               ----       ----            ----         ----

<S>                                          <C>         <C>             <C>         <C>
Revenue:
   Rental                                    $   128     $   126         $   389     $   389
   Interest                                       15           8              30          23
   Equity in Joint Venture Capital               (56)         42              29         131
   Gain on sale of Joint Venture                 956                         956            
                                             -------     -------         -------     -------
        Total revenue                          1,043         176           1,404         543
                                             -------     -------         -------     -------
Expenses:
   Property taxes                                 33          32              99          96
   Management fee                                  5           5              15          16
   Other property expenses                        12          55              36          74
   Depreciation and amortization                  34          23              79          68
   Administrative                                 42          15             146          58
                                             -------     -------         -------     -------
        Total expenses                           126         130             375         312
                                             -------     -------         -------     -------

Net income                                   $   917     $    46         $ 1,029     $   231
                                             =======     =======         =======     =======

Net income per weighted average number
of limited partnership units outstanding     $ 14.38     $   .72         $ 16.13     $  3.62
                                             =======     =======         =======     =======

Weighted average number of limited
partnership units outstanding                 63,803      63,803          63,803      63,803
                                             =======     =======         =======     =======

Distributions per weighted average
limited partnership units outstanding        $  1.00     $  1.00         $  3.00     $  3.00
                                             =======     =======         =======     =======

                                       See accompanying notes.
</TABLE>




<PAGE>
<TABLE>
                           LUTHERAN BROTHERHOOD REALTY FUND I
                             STATEMENT OF PARTNERS' EQUITY
                    FROM DECEMBER 31, 1993 THROUGH SEPTEMBER 30, 1996
                                    (in thousands)

<CAPTION>
                                                             Total
                                        General   Limited   Partners'
                                        Partner   Partners   Equity
                                        -------   --------  ---------

<S>                                    <C>        <C>        <C>
Balance at December 31, 1993                 5     4,633      4,638

  Net income                                 3       309        312

  Distributions to Limited Partners                 (255)      (255)
                                       -------    ------     ------

Balance at December 31, 1994                 8     4,687      4,695

  Net income                                 3       261        264

  Distributions to Limited Partners                 (255)      (255)
                                       -------    ------     ------

Balance at December 31, 1995                11     4,693      4,704

  Net income                                10     1,019      1,029

  Distributions to Limited Partners                 (192)     (192)
                                       -------    ------     ------

Balance at September 30, 1996          $    21    $5,520     $5,541
                                       =======    ======     ======

                              See accompanying notes.
</TABLE>


<PAGE>
<TABLE>
                       LUTHERAN BROTHERHOOD REALTY FUND I
                            STATEMENT OF CASH FLOW
                                 (Unaudited)
                                 (thousands)

<CAPTION>
                                                        Nine Months Ended
                                                           September 30
                                                        1996          1995
                                                        ----          ----

<S>                                                    <C>          <C>
Net Income                                             $1,029       $231

Adjustments to reconcile net income to net
  cash provided by (used in) operating activities:

Depreciation and amortization                              79         68
Distributions from joint ventures                         124        117
Equity in joint venture earnings                          (18)      (131)
Gain on sale of Worthington Green Associates             (956)

Changes in assets and liabilities:
  Receivable from affiliates                                6        (40)
  Other assets                                           (213)         6
  Payable to affiliates                                    72        (14)
  Property taxes payable                                   33         32
  Other accrued operating expenses                                    47
                                                        -----      -----
Net cash provided by operating activities                 156        316
                                                        -----      -----

Cash flows from investing activities:
  Capital improvements                                               (32)
  Tenant reimbursements - capital improvements                        23
  Capital infusion to Minnetonka 225                      (30)
  Capital infusion to Minnetonka 300/400                  (20)
  Proceeds from sale of Worthington Green Associates    1,445
                                                        -----      -----

Net cash provided by (used in) investing activities     1,395         (9)
                                                        -----      -----

Cash flows from financing activities:
   Distributions to partners                             (191)      (191)
                                                        -----      -----

Net cash used in financing activities                    (191)      (191)
                                                        -----      -----

Net increase in cash and cash equivalents               1,360        116

Cash and cash equivalents at beginning of period          610        521
                                                        -----      -----

Cash and cash equivalents at end of period             $1,970       $637
                                                       ======      =====


Supplemental Schedules:
  Interest paid                                         $   0      $   0
  Income taxes paid                                     $   0      $   0

                           See accompanying notes.
</TABLE>


<PAGE>
Note 1.  Organization and Partnership Matters

Termination of the Offering

The Partnership's offering expired on February 11, 1989, having raised a 
total of $6,365,000 in contributed capital (including Initial Limited 
Partner's Contribution) from which the Partnership netted $5,719,000 after 
underwriting commissions and registration expenses.

Note 2.  Net Income Per Partnership Unit

The Partnership Agreement of the Partnership ("Partnership Agreement") 
provides for net income and net losses from operations for financial 
reporting purposes to be allocated 99% to the Limited Partners and 1% to the 
General Partner.  Net income per weighted average number of Limited 
Partnership Units is computed by dividing net income allocated to the 
Limited Partners by the weighted average number of Limited Partnership Units 
outstanding.  Per unit information has been computed based on 63,803 
weighted average units outstanding at both September 30, 1996 and September 
30, 1995.

Note 3.  Real Estate Investments

On September 29, 1989, the Partnership restructured (the "Restructure") its 
investment portfolio by consummating the following agreements entered into 
as of June 30, 1989.  The Restructure completely eliminated the 
Partnership's debt.

     Worthington Green Associates

Pursuant to a joint venture agreement, Lutheran Brotherhood ("LB"), a 
Minnesota Fraternal Benefit Society and the parent of the General Partner 
contributed $6,161,595 cash for an 84% interest in a joint venture.  The 
Partnership deeded the Village at Worthington Green ("Village") to the joint 
venture for a 16% interest in the joint venture and $6,161,595 cash.  On 
December 1, 1989, the agreement was revised to increase the Partnership's 
interest in the joint venture to 19.3% in exchange for the Partnership's 
payment of an additional $200,000 in cash.

     Northwest Distribution Center

Pursuant to a purchase agreement with LB which was assigned to LB from the 
General Partner, the Partnership purchased the Northwest Distribution Center 
("NWDC"), a bulk warehouse/distribution center located in New Hope, 
Minnesota, for $2,256,750.

     Minnetonka 225 Associates

Pursuant to a joint venture agreement with LB, the Partnership contributed 
$606,430 cash for a 33% interest in a joint venture which owns and operates 
a multi-tenant office/warehouse facility located in Minnetonka, Minnesota.

     Minnetonka 300 & 400 Associates

Pursuant to a joint venture agreement with LB, the Partnership contributed 
$891,089 cash for a 33% interest in a joint venture which owns and operates 
two multi-tenant office/warehouse facilities located in Minnetonka, 
Minnesota.

<PAGE>
At September 30, 1996 the assets and liabilities of the joint ventures were 
as follows (in thousands):

<TABLE>
<CAPTION>
                                    Minnetonka   Minnetonka   Worthington
                                        225      300 & 400      Green
                                    Associates   Associates   Associates
                                    ----------   ----------   ----------

<S>                                  <C>          <C>          <C>
     Land                            $   369      $  687
     Property less depreciation        1,402       1,934
     Deferred charges (net)
             and other assets            112         269       $1,097
                                     -------       -----       ------
                                       1,883       2,890        1,097
     Liabilities                         (34)        (60)      (1,097)
                                      ------      ------       ------
     Net assets                       $1,849      $2,830       $    0
                                      ======      ======       ======
</TABLE>

Revenues and expenses of the joint ventures for the nine month periods 
ending September 30, 1996 and 1995 were as follows (in thousands):




<TABLE>
<CAPTION>
                                            Minnetonka              Minnetonka            Worthington
                                                225                  300 & 400               Green
                                            Associates              Associates             Associates
                                            ----------              ----------             ----------

                                           September 30,           September 30,          September 30,
                                        1996         1995       1996        1995        1996     1995
                                        ----         ----       ----        ----        ----     ----

<S>                                     <C>       <C>         <C>         <C>          <C>        <C>
     Revenues                           $  334    $  323      $   479     $   472      $  764     $  859
     Property taxes                        (64)      (88)        (116)       (102)        (88)      (103)
     Management fee                        (13)      (14)         (18)        (21)        (33)       (28)
     Other operating expenses              (37)      (51)        (191)        (92)       (252)      (277)
     Tenant improvement amortization      (144)      (24)        (194)        (30)
     Depreciation                          (28)      (35)         (66)        (95)       (140)      (196)
                                        ------    ------      -------      ------      ------     ------
     Net income                             48       111         (106)        132         251        255
               
     Partnership interest                33.3%     33.3%        33.3%       33.3%       19.3%      19.3%
                                        ------    ------      -------      ------      ------     ------
     Partnership income                 $   16    $   37      $   (35)     $   44      $   48     $   50
                                        ======    ======      =======      ======      ======     ======
</TABLE>




As a result of the Partnership's Limited Partners approving on July 3, 1996, 
a Liquidation Proposal contemplating the sale of the Partnership's property 
and the properties held by joint ventures in which the Partnership is a co-
venturer (the "Liquidation Proposal"), all of Partnership's real estate 
investments became classified as long-lived assets to be disposed of.  
Therefore, in the third quarter of 1996, these real estate investments were 
written down to net realizable value by amortizing the balance of capital 
leasehold improvements.  Additionally, depreciation was not recorded in the 
third quarter.

Note 4.  Commitments, Contingencies, and Subsequent Events

Commitments

Under the Partnership Agreement, the Partnership is required to maintain 
reasonable reserves for normal repairs, replacements, working capital, and 
contingencies in an amount equal to at least 3% of Capital Contributions.

<PAGE>
In the event expenditures are made from these reserves, a portion of the 
cash generated from operating revenue must be allocated to such reserves to 
the extent necessary to maintain the foregoing level.  Reserves, including 
cash on hand and short term securities, at September 30, 1996 and December 
31, 1995 were in excess of 3% of Capital Contributions.

Pending Litigation

The Partnership is not a party to, nor is any of the Partnership's property 
the subject of, any material legal proceedings.

Subsequent Distribution

Subsequent to quarter end, but as of September 30, 1996, the Partnership 
paid distributions totaling $63,803, to the Limited Partners reflecting a 
rate of 4% per annum on the Limited Partners' invested capital.

Subsequent Event

As previously reported in the notes to the Partnership's June 30, 1996 
financial statements as a subsequent event, the Limited Partners approved 
the Liquidation Proposal described in the Proxy Statement mailed to them on 
or about June 11, 1996.  The terms of the Liquidation Proposal included sale 
of the property owned by the Partnership and the properties owned by joint 
ventures in which the Partnership is a co-venturer ("the properties") over a 
period of time not to exceed two years from the date of Limited Partner 
approval, followed by the dissolution and winding up of the Partnership.

The property owned by the Worthington Green joint venture was sold during 
the current quarter on August 19, 1996 and the Partnership's interest in the 
sale proceeds is appropriately reflected in the financial statements.

All remaining properties (Minnetonka properties and the Northwest 
Distribution Center) were sold on October 16, 1996, completing the sales 
portion of the liquidation process.  The Partnership will distribute in 
December the net cash proceeds of the sales of all properties (together with 
interest earned on the proceeds from the date of sale) after deduction of 
expenses to complete the liquidation and winding up of the Partnership.

The Partnership will file a Certificate of Dissolution with the California 
Secretary of State before making this distribution and complete the winding 
up of the Partnership and file a Certificate of Cancellation.

Note 5.  Fees and Reimbursements

For the nine months ended September 30, 1996 and 1995, the Partnership was 
allocated $78,000 and $25,000, respectively, in partnership administrative 
expenses by the General Partner and other affiliated entities. 

Note 6.  Recently Issued Accounting Standards

Effective January 1, 1996, the Partnership adopted Statement of Financial 
Accounting Standards No. 121, "Accounting for Impairment of Long-Lived 
Assets and for Long-Lived Assets to Be Disposed Of" ("SFAS 121").

<PAGE>
As a result of the adoption, the Partnership reviews long-lived assets to be 
held and used on a quarterly basis for events or changes in circumstances 
which indicate that the carrying amount of the assets may not be 
recoverable.  As a result of this review, no material adjustments had been 
made to the carrying value of the Partnership's real estate investments 
through June 30, 1996.

However, as a result of the approval of the Liquidation Proposal, the 
Partnership's real estate investments have become classified as long-lived 
assets to be disposed of effective July 3, 1996.  As a result, these 
investments have been written down to net realizable value, as described 
more fully in note 3.


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

INTRODUCTION

The Partnership was formed to engage in the business of acquiring and 
operating income producing real properties and holding the properties for 
investment.  The Partnership's public offering commenced on December 4, 
1987, and expired on February 11, 1989.  The offering raised a total of 
$6,365,000 in contributed capital (including the Initial Partners' 
contributions) from which the Partnership netted $5,719,000 after 
underwriting and registration expenses.

At a special meeting of the Limited Partners held on July 3, 1996, the 
Limited Partners approved a liquidation proposal to begin the process of 
selling the Properties and winding up the Partnership.  The General Partner 
sold the Worthington Green property on August 19, 1996.  As indicated in the 
subsequent event note to the financial statements, the General Partner sold 
the remaining properties on October 16, 1996 and is currently in the process 
of winding up the Partnership.


RESULTS OF OPERATIONS

There continued to be little change in gross rental revenues for NWDC during 
both the third quarter and first nine months of 1996 compared to the same 
periods in 1995 because occupancy levels were at 100% during all periods.  
Administrative expenses for all periods increased substantially in 1996 
compared to 1995 due to legal fees and other costs incurred by the General 
Partner in conducting the liquidation approval process and in negotiating 
the sales of the properties.  Depreciation and amortization were also higher 
for both periods in 1996 compared to 1995 because the unamortized balance of 
tenant improvements was expensed when the property was made available for 
sale.  In contrast, other property expenses significantly declined for both 
periods in 1996 compared to 1995 due primarily to costs incurred in 1995 for 
painting the exterior of the building and partial replacement of the 
retaining wall.

The Partnership had a loss from joint ventures of $56,000 during the third 
quarter of 1996 compared to income of $42,000 during the third quarter of 
1995 and income of $29,000 during the first nine months of 1996 compared to 
$131,000 during the first nine months of 1995.  However, not included in the 
above figures for 1996 was the Partnership's share of the gain on the sale 
of Worthington Green apartment complex.

The Partnership's share of joint venture income from the Worthington Green 
joint venture declined to $11,000 for the third quarter of 1996 from $13,000 
during the third quarter of 1995 and to $48,000 during the first nine months 
of 1996 from $49,000 during the first nine months of 1995.  Revenues and 
expenses were significantly lower during 1996 compared to 1995 because the 
Worthington Green apartment complex was sold on August 19, 1996.  The 
Partnership's share of the gain from the sale was $956,000.

<PAGE>
The Minnetonka 225 joint venture had a net loss during the third quarter of 
1996 despite a slight increase in gross rental revenues.  This loss resulted 
from writing off the remaining balances for all tenant improvements when the 
property was made available for sale during the quarter.  The Partnership's 
share of the 1996 third quarter loss was $20,000 compared to net income of 
$12,000 during the third quarter of 1995.  For the first nine months of 
1996, the Partnership's share of joint venture income was $16,000 compared 
to $37,000 during the same period in 1995.

The Minnetonka 300/400 joint venture incurred losses during both the third 
quarter and first nine months of 1996 due to the write-off of tenant 
improvements together with parking lot improvements and exterior block 
repairs to the properties during the second and third quarters.  The 
Partnership's share of the net loss during third quarter of 1996 was $47,000 
compared to $17,000 of net income for the third quarter of 1995.  The 
comparative figures for the first nine months of 1996 and 1995 were a 
$35,000 net loss and $44,000 in net income, respectively.


INFLATION

The moderate inflation experienced in 1995 had little effect on the 
Partnership's operations.  It is anticipated that during 1996, inflation 
will continue at a moderate level and that the Partnership's operations will 
not be significantly influenced by inflation.


PROPERTY HIGHLIGHTS

Northwest Distribution Center

The property continued to be 100% occupied throughout the third quarter.  As 
indicated in the subsequent event note to the financial statements, this 
property was sold on October 16, 1996.

The Village at Worthington Green

The property was sold on August 19, 1996.  Income and expenses for the third 
quarter were pro-rated with the purchaser as of the date of closing.  A net 
gain of $956,000 was realized on the sale.

Minnetonka Industrial Properties

All properties were 100% occupied as of the end of the third quarter.  
During August, the owner completed the relocation of a tenant formerly at 
the Minnetonka 300 building into the remaining vacant space at the 
Minnetonka 400 building.  Another tenant at the Minnetonka 300 building 
expanded into the space vacated by the relocating tenant.  As indicated in 
the subsequent event note to the financial statements, these properties were 
also sold on October 16, 1996.


LIQUIDITY AND CAPITAL RESOURCES

At September 30, 1996, the Partnership held cash and cash equivalents of 
$1,970,000.  The Partnership improved its cash position by $1,360,000 during 
the first nine months as a result of net cash provided from operating 
activities of $156,000 and by investing activities of $1,395,000 offset by 
distributions to Partners of $191,000.

The Partnership has sufficient cash and cash equivalents to meet its 3% 
required reserve.


<PAGE>
                                    PART II

                               OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.

     (a)  No exhibits are filed as part of this report.

     (b)  A report on Form 8-K dated August 19, 1996 was filed by the 
          Partnership for purposes of reporting the sale of the property 
          held by the Worthington Green joint venture.

     (c)  A report on Form 8-K dated October 16, 1996 was filed by the 
          Partnership for purposes of reporting the sale of the Minnetonka 
          Properties and the NWDC property.


<PAGE>
                                     SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


                                         LUTHERAN BROTHERHOOD REALTY FUND I,
                                         a California limited partnership


                                         By:  Lutheran Brotherhood Real
                                              Estate Products Company,
                                              Its General Partner



Date:  November 14, 1996                 By:  /s/ Mitchell F. Felchle
       -----------------                    -------------------------------
                                              Mitchell F. Felchle
                                              President



Date:  November 14, 1996                  By:  /s/ Anita J. T. Young
       -----------------                     -------------------------------
                                               Anita J. T. Young
                                               Treasurer
                                               (Chief Financial Officer)


<PAGE>
                               INDEX TO EXHIBIT



EXHIBIT NUMBER                                        PAGE IN 
                                                      REGISTRATION
                                                      STATEMENT

      27          Financial Data Schedule