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

                                    FORM 10-Q

         [X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended March 31, 1998

                                                        OR

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

           For the transition period from __________ to ______________


                         Commission File Number: 0-19438


                           RANCON PACIFIC REALTY L.P.,
                         A DELAWARE LIMITED PARTNERSHIP
                         ------------------------------
             (Exact name of registrant as specified in its charter)

                       Delaware                           33-0270528
                       --------                           ----------
            (State or other jurisdiction of            (I.R.S. Employer
            incorporation or organization)            Identification No.)

         400 South El Camino Real, Suite 1100
                 San Mateo, California                      94402-1708
                 ---------------------                      ----------
       (Address of principal executive offices)             (Zip Code)

                                 (650) 343-9300
                                 ---------------
                         (Registrant's telephone number)

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
                                       ---
        Total number of units outstanding as of March 31, 1998: 2,822,828




                                  Page 1 of 12
<PAGE>




Part I.    FINANCIAL INFORMATION


Item 1.    Financial Statements.

                           RANCON PACIFIC REALTY L.P.

                           Consolidated Balance Sheets
                    (in thousands, except units outstanding)
                                   (Unaudited)


                                               March 31,      December 31,
                                                 1998             1997
                                           --------------   ---------------
Assets
------
Rental property:
    Land                                   $       14,213    $       14,213
    Buildings and improvements                     28,634            28,523
                                           --------------    --------------
                                                   42,847            42,736
       Less accumulated depreciation              (12,980)          (12,748)
                                           ---------------   --------------
           Net rental property                     29,867            29,988

Cash and cash equivalents                           1,891             1,876
Deferred financing costs, net of
    accumulated amortization of $225 and
    $207 at March 31, 1998 and
    December 31, 1997, respectively                   407               425
Other assets                                          233                87
                                           ---------------   ---------------
           Total assets                    $       32,398    $       32,376
                                           ==============    ==============















                                  - continued -


                                  Page 2 of 12
<PAGE>






                           RANCON PACIFIC REALTY L.P.

                     Consolidated Balance Sheets - continued
                    (in thousands, except units outstanding)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                  March 31,         December 31,
                                                                   1998                1997
                                                               --------------     --------------
<S>                                                            <C>                 <C>    

Liabilities and Partners' Equity (Deficit)
------------------------------------------
Liabilities:
    Notes payable                                              $       22,949      $      23,027
    Accounts payable and accrued expenses                                 158                 72
    Interest payable                                                      153                154
    Other liabilities                                                     272                275
                                                                -------------      -------------

       Total liabilities                                               23,532             23,528
                                                                -------------      -------------

Commitments and contingent liabilities (see Note 3)

Minority interest                                                         372                382
                                                                -------------      -------------

Partners' equity (deficit):
    General Partner                                                       (83)               (85)
    Limited Partners, 2,822,828 limited partnership units
       outstanding at March 31, 1998 and December 31,
       1997 (including  2,121,285 preferred units
       outstanding at March 31, 1998 and December 31, 1997)             8,577              8,551
                                                                -------------      -------------

           Total partners' equity                                       8,494              8,466
                                                                -------------      -------------

              Total liabilities and partners' equity            $      32,398      $      32,376
                                                                =============      =============
</TABLE>











           See accompanying notes to consolidated financialstatements.



                                  Page 3 of 12
<PAGE>




                           RANCON PACIFIC REALTY L.P.


                        Consolidated Statements of Income
                     (in thousands, except per unit amounts)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                               Three months ended
                                                                   March 31,
                                                               ------------------
                                                              1998              1997
                                                         -------------     -------------
<S>                                                      <C>               <C>    
Revenue:
    Rental income                                        $       1,608     $       1,484
    Interest and other income                                       38                24
                                                         -------------     -------------

        Total revenue                                            1,646             1,508
                                                         -------------     -------------
Expenses:
    Operating                                                      637               630
    Interest                                                       479               482
    Depreciation                                                   232               228
    General and administrative                                      84                79
                                                         -------------     -------------
        Total expenses                                           1,432             1,419
                                                         -------------     -------------

Income before minority interest                                    214                89

Minority interest                                                  (11)               (4)
                                                         --------------    -------------

Net income                                               $         203     $          85
                                                         =============     =============

Net income per limited partnership unit                  $        0.07     $        0.03
                                                         =============     =============

Distributions per preferred unit:
    From net income                                      $        0.07     $        0.03
    Representing return of capital                                0.01              0.05
                                                         -------------     -------------
        Total distributions per preferred unit           $        0.08     $        0.08
                                                         =============     =============

Weighted average number of limited
    partnership units outstanding during
    the period used to compute net
    income per limited partnership unit                      2,822,828         2,825,071
                                                         =============     =============

Weighted average number of preferred units
    outstanding during the period used to compute
    distributions per preferred unit                         2,121,285         2,121,285
                                                         =============     =============


           See accompanyingnotes to consolidated financial statements.

</TABLE>


                                  Page 4 of 12
<PAGE>


                           RANCON PACIFIC REALTY L.P.


              Consolidated Statements of Partners' Equity (Deficit)
                For the three months ended March 31,1998 and 1997
 
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>

                                       General           Limited    
                                       Partner           Partners          Total
                                    -------------     ------------   -------------
<S>                                 <C>               <C>            <C>    

Balance at December 31, 1997        $         (85)    $      8,551   $       8,466

Net income                                      2              201             203

Distributions                                  --             (175)           (175)
                                    --------------     -------------  ------------

Balance at March 31, 1998           $         (83)    $      8,577   $       8,494
                                    ==============     ============   =============



Balance at December 31, 1996        $         (90)    $      8,697   $       8,607

Net income                                      1               84              85

Distributions                                  --             (175)           (175)
                                    --------------     -------------   ------------

Balance at March 31, 1997           $         (89)    $      8,606   $       8,517
                                    ==============     =============   ============

</TABLE>












           See accompanying notes to consolidated financialstatements.



                                  Page 5 of 12
<PAGE>




                           RANCON PACIFIC REALTY L.P.


                      Consolidated Statements of Cash Flows
                                 (in thousands)
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                  Three months ended
                                                                     March 31,
                                                           ---------------------------- 
                                                              1998               1997
                                                           ----------------------------
<S>                                                        <C>             <C>    
Cash flows from operating activities:
  Net income                                               $     203       $         85
Adjustments to reconcile net income to net cash
provided by operating activities:
    Depreciation                                                 232                228
    Amortization of loan fees, included in interest expense       18                 18
    Minority interest in net income and distributions            (10)                (3)
Changes in certain assets and liabilities:
    Other assets                                                (146)               (62)
    Accounts payable and accrued expenses                         86                101
    Interest payable                                              (1)                (1)
    Other liabilities                                             (3)                25
                                                           -----------        ----------

       Net cash provided by operating activities                  379                391
                                                           ----------         ----------

Cash flows from investing activities:
    Additions to real estate                                     (111)               (19)
                                                           -----------        ----------

       Net cash used for investing activities                    (111)               (19)
                                                           -----------        ----------

Cash flows from financing activities:
  Note payable principal payments                                 (78)               (75)
  Distributions to partners                                      (175)              (175)
                                                           -----------        -----------

       Net cash used for financing activities                    (253)              (250)
                                                           -----------        -----------

Net increase in cash and cash equivalents                          15                122

Cash and cash equivalents at beginning of period                1,876              1,407
                                                           ----------         ----------

Cash and cash equivalents at end of period                 $    1,891         $    1,529
                                                           ==========         ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                   $      462         $      465
                                                           ==========         ===========
</TABLE>




           See accompanying notes to consolidated financialstatements.



                                  Page 6 of 12
<PAGE>




                           RANCON PACIFIC REALTY L.P.


                   Notes to Consolidated Financial Statements

                                 March 31, 1998
                                   (Unaudited)



Note 1.           ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
                  ------------------------------------------------
In the opinion of RC Pacific Realty Partners,  L.P. and Glenborough  Corporation
(successor   by   merger   with   Glenborough    Inland   Realty    Corporation)
("Glenborough"),  the accompanying  unaudited  consolidated financial statements
contain all  adjustments  (consisting  of only  normal  accruals)  necessary  to
present fairly the  consolidated  financial  position of Rancon Pacific  Realty,
L.P., a Delaware limited partnership, (the Partnership) as of March 31, 1998 and
December 31, 1997, and the related consolidated statements of income, changes in
partners'  equity  (deficit) and cash flows for the three months ended March 31,
1998 and 1997.

Effective January 1, 1995, Rancon Financial  Corporation  (RFC), an affiliate of
the Partnership,  entered into an agreement with Glenborough whereby RFC sold to
Glenborough the contract to perform the rights and responsibilities  under RFC's
agreement with the Partnership and other related Partnerships (collectively, the
Rancon  Partnerships)  to perform or  contract on the  Partnership's  behalf for
financial,  accounting,  data processing,  marketing, legal, investor relations,
asset and development management and consulting services for the Partnership for
a period of ten years or until the  liquidation  of the  Partnership,  whichever
comes first.  Effective  January 1, 1998 the  agreement was amended to eliminate
Glenborough's responsibility for providing investor relation services. According
to the  contract,  the  Partnership  will pay  Glenborough  for its  services as
follows: (i) a specified asset administration fee ($181,000 in 1998); (ii) sales
fees of 2% for improved  properties;  (iii) a  refinancing  fee of 1% and (iv) a
management  fee of 5% of  gross  rental  receipts.  As part  of this  agreement,
Glenborough will perform certain responsibilities for the General Partner of the
Rancon  Partnerships  and RFC  agreed  to  cooperate  with  Glenborough,  should
Glenborough  attempt  to  obtain a  majority  vote of the  limited  partners  to
substitute itself as the Sponsor for the Rancon Partnerships. Glenborough is not
an affiliate of RFC or the Partnership.

Consolidation - The  accompanying  consolidated  financial  statements of Rancon
Pacific Realty, L.P. include the accounts of Rancon Pacific Realty, L.P. and its
majority owned partnership Villa La Jolla Partners. All significant intercompany
balances and transactions have been eliminated in the consolidation.

Reclassification  - Certain 1997 balances have been  reclassified  to conform to
the current year presentation.

Note 2.           REFERENCE TO 1997 AUDITED FINANCIAL STATEMENTS
                  ----------------------------------------------

These  unaudited  financial  statements  should be read in conjunction  with the
consolidated  Notes  to  Financial  Statements  included  in  the  1997  audited
financial statements.


                                  Page 7 of 12
<PAGE>


                          RANCON PACIFIC REALTY, L.P.

                   Notes to Consolidated Financial Statements

                                 March 31, 1998
                                   (Unaudited)




Note 3.           COMMITMENT AND CONTINGENCY
                  --------------------------
Organizational and Transitional Management Fee
----------------------------------------------
Pursuant  to a plan of  exchange  which was  consummated  in 1988,  Glenborough,
through  an  Assignment  of Right to  Receive  Organizational  and  Transitional
Management  Fees  from  the  Sponsor,  is to  receive  a fee  of up to 6% of the
aggregate  appraised value of the property interests conveyed to the Partnership
in  consideration  for  organizational  and  transitional  management  services.
One-sixth  of this fee or  approximately  $350,000 was paid upon the exchange of
the property for Partnership Units. The remaining five-sixths of the fee was due
in 60 monthly  installments of $29,000.  Ten monthly  installments were paid for
the period from March 1, 1988 through  December  31,  1988.  The next 48 monthly
payments  related to the period from  January 1, 1989 to December  31, 1992 will
not be paid  unless  and  until  such time as (i) the  specified  amount of cash
distributions are made to the holders of the preferred units during any calendar
year or, (ii) the holders of the  preferred  units have received a return of the
full amount of their investment.  No monthly installments were paid during those
48  months.  Two  monthly  installments  of  $29,000  were paid in  January  and
February,  1993.  Payment of the balance of the fee of approximately  $1,395,000
related to the 48 monthly  installments will not be paid unless and until one of
the two criteria set forth above is met.












                                  Page 8 of 12
<PAGE>

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

INTRODUCTION
------------
The following  discussion  addresses the  Partnership's  financial  condition at
March 31, 1998 and its results of  operations  for the three  months ended March
31,  1998 and 1997.  This  information  should be read in  conjunction  with the
Partnership's audited December 31, 1997 Consolidated Financial Statements, notes
thereto and other information contained elsewhere in this report.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
As of June 23, 1989, the Partnership was fully funded from the sale of 2,122,500
Preferred  Units in the  amount  of  $14,857,500.  As of  March  31,  1998,  the
Partnership  had cash and cash  equivalents of $1,891,000.  The remainder of the
Partnership's  assets consists primarily of its investments in three residential
properties  which have a net book value  totaling  approximately  $29,867,000 at
March 31, 1998.

The Partnership currently owns three properties:  Pacific Bay Club Apartments (a
159 unit apartment complex in San Diego, California), La Jolla Canyon Apartments
(a 157 unit  apartment  complex  in San  Diego,  California)  and Villa La Jolla
Condominiums (a 385 unit condominium complex in San Diego, California).

Management believes that the Partnership's available cash together with the cash
generated by the operations of the Partnership's properties, as proven in recent
years,  will be sufficient to finance the  properties'  continued  operations as
well as meet future debt commitments. Management has continued to monitor market
conditions in order to sell its properties for the best  obtainable  price prior
to June 1999,  the date upon which the  Partnership  is due to terminate,  or as
soon as  practicable.  Due to the explosive San Diego apartment  market,  we are
currently   offering  the  assets  for  sale  at  a  gross   minimum   price  of
$54,7000,000.00, which is considerably higher than is reflected in our financial
statements.

The increase in other assets of $146,000,  or 168%, is due to a $73,000 decrease
in tenant  prepaid rent from December 31, 1997 to March 31, 1998 combined with a
$73,000 increase in impound accounts, as required by a lender.

Accounts  payable and accrued  expenses  increased  from $72,000 at December 31,
1997 to $158,000  at March 31,  1998 due to the accrual of property  taxes which
are payable in April 1998.

RESULTS OF OPERATIONS
---------------------
Rental  income for the three months ended March 31, 1998 as compared to the same
period in 1997 increased 8% or $124,000  primarily due to increased rental rates
at all of the Partnership's  properties and an increase in occupancy at Villa La
Jolla.  Occupancy  rates as of March 31, 1998 were 98%,  99% and 99% for Pacific
Bay Club, La Jolla Canyon and Villa La Jolla, respectively, compared to 98%, 99%
and 97%, respectively, as of the same date in 1997.



                                  Page 9 of 12
<PAGE>

The increase in interest  income and other income is due to a $7,000 increase in
laundry income and a $7,000  increase in interest income during the three months
ended March 31, 1998 compared to the three months ended March 31, 1997.

Operating expense and depreciation and amortization  expense remained consistent
during the three  months  ended March 31, 1998 and the three  months ended March
31, 1997.

Interest  expense  continues  to decline  due to the  decreasing  balance of the
Partnership's outstanding debt.

General and  administrative  costs  increased  $5,000 or 6% for the three months
ended March 31, 1998 compared to 1997  primarily due to an appraisal fee paid in
1998 rendered in connection with the valuation of the properties.

Year 2000 Compliance
--------------------
The Partnership  utilizes a number of computer  software  programs and operating
systems across its entire organization, including applications used in financial
business systems and various  administrative  functions.  To the extent that the
Partnership's  software  applications  contain  a source  code that is unable to
appropriately interpret the upcoming calendar year "2000" and beyond, some level
of  modification,  or replacement of such  applications  will be necessary.  The
Partnership has completed its  identification  of applications  that are not yet
"Year 2000"  compliant and has commenced  modification  or  replacement  of such
applications,  as necessary.  Given the information known at this time about the
Partnership's  systems that are  non-compliant,  coupled with the  Partnership's
ongoing,  normal  course-of-business  efforts to  upgrade  or  replace  critical
systems,  as necessary,  management does not expect "Year 2000" compliance costs
to have any material  adverse impact on the  Partnership's  liquidity or ongoing
results of  operations.  No  assurance  can be given,  however,  that all of the
Partnership's  systems will be "Year 2000" compliant or that compliance costs or
the  impact of the  Partnership's  failure to achieve  substantial  "Year  2000"
compliance will not have a material adverse effect on the  Partnership's  future
liquidity or results of operations.













                                 Page 10 of 12
<PAGE>

Part II. OTHER INFORMATION


Item 1.    Legal Proceedings

                  None.

Item 2.    Changes in Securities

                  Not applicable.

Item 3.    Defaults Upon Senior Securities

                  Not applicable.

Item 4.    Submission of Matters to a Vote of Security Holders

                  None.

Item 5.    Other Information

                  None.

Item 6.    Exhibits and Reports on Form 8-K

                  (a) Exhibits:

                  #27 - Financial Data Schedule.

                  (b) Reports on Form 8-K:

                  None.








                                 Page 11 of 12
<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.


                           RANCON PACIFIC REALTY, L.P.
                           A CALIFORNIA LIMITED PARTNERSHIP
                           (Registrant)


                           By: RC PACIFIC REALTY PARTNERS, L.P.
                           General Partner


Date: May 14, 1998         By:  /s/ Daniel L. Stephenson
                               -------------------------
                               Daniel L. Stephenson
                               Director, President,
                               Chief Executive Officer and
                               Chief Financial Officer of
                               RC Pacific Realty, Inc.,
                               General Partner of
                               RC Pacific Realty Partners, L.P.







                                 Page 12 of 12
<PAGE>