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, 1997

                                       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)

                                 (415) 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, 1997: 2,824,358





                                  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)

<TABLE>
<CAPTION>

                                                                         March 31,                December 31,
                                                                           1997                       1996
<S>                                                                  <C>                         <C>
Assets
Rental property:
    Land                                                             $       14,213              $       14,213
    Buildings and improvements                                               28,506                      28,487
                                                                     --------------              --------------
                                                                             42,719                      42,700
       Less accumulated depreciation                                        (12,160)                    (11,932)
                                                                     --------------              --------------
           Net rental property                                               30,559                      30,768

Cash and cash equivalents                                                     1,529                       1,407
Deferred financing costs, net of
    accumulated amortization of $152
    and $134 at March 31, 1997 and
    December 31, 1996, respectively                                             480                         498
Other assets                                                                    232                         170
                                                                     --------------              --------------

           Total assets                                              $       32,800              $       32,843
                                                                     ==============              ==============

</TABLE>














                                                   - 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,
                                                                           1997                       1996
<S>                                                                    <C>                       <C>
Liabilities and Partners' Equity (Deficit)
Liabilities:
    Notes payable                                                      $      23,262             $      23,337
    Accounts payable and accrued expenses                                        171                        70
    Interest payable                                                             154                       155
    Other liabilities                                                            276                       251
                                                                       -------------             -------------

       Total liabilities                                                      23,863                    23,813
                                                                       -------------             -------------

Commitments and contingent liabilities (see Note 3)

Minority interest                                                                420                       423
                                                                       -------------             -------------

Partners' equity (deficit):
    General Partner                                                              (89)                      (90)
    Limited Partners, 2,824,558 and 2,825,584
       limited  partnership units outstanding at 
       March 31, 1997 and December 31, 1996, respectively
       (including  2,121,285 preferred units outstanding at
       March 31, 1997 and December 31, 1996)                                   8,606                     8,697
                                                                       -------------             -------------

           Total partners' equity                                              8,517                     8,607
                                                                       -------------             -------------

              Total liabilities and partners' equity                   $      32,800             $      32,843
                                                                       =============             =============


</TABLE>







          See accompanying notes to consolidated financial statements.




                                  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,
                                                                              1997                    1996
                                                                       --------------            -------------
<S>                                                                    <C>                       <C>          
Revenue:
    Rental income                                                      $       1,484             $       1,385
    Interest and other income                                                     24                        24
                                                                       -------------             -------------

        Total revenue                                                          1,508                     1,409
                                                                       -------------             -------------

Expenses:
    Operating                                                                    630                       592
    Interest                                                                     482                       494
    Depreciation                                                                 228                       227
    General and administrative                                                    79                        86
                                                                       -------------             -------------

        Total expenses                                                         1,419                     1,399
                                                                       -------------             -------------

Income before minority interest                                                   89                        10

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

Net income                                                             $          85             $           6
                                                                       =============             =============

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

Distributions per preferred unit:
    From net income                                                    $        0.03             $         ---
    Representing return of capital                                              0.05                      0.08
                                                                       -------------             -------------
        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                                    2,825,071                 2,828,457
                                                                       =============             =============

Weighted average number of preferred units
    outstanding during the period used to compute
    distributions per preferred unit                                       2,121,285                 2,121,785
                                                                       =============             =============

</TABLE>

          See accompanying notes to consolidated financial statements.




                                  Page 4 of 12
<PAGE>



                           RANCON PACIFIC REALTY L.P.


                   Consolidated Statements of Partners' Equity
          (Deficit) For the three months ended March 31, 1997 and 1996
                                 (in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                             General               Limited
                                                             Partner               Partners             Total

<S>                                                       <C>                   <C>                 <C>          
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
                                                          =============         ============        =============



Balance at December 31, 1995                              $         (90)        $      9,381        $       9,291

Net income                                                ---                   6                   6

Distributions                                                       ---                 (175)                (175)

Adjustment to minority interest                                     (63)                 ---                  (63)
                                                          --------------        ------------        --------------

Balance at March 31, 1996                                 $        (153)        $      9,212        $       9,059
                                                          =============         ============        =============



</TABLE>










          See accompanying notes to consolidated financial statements.




                                  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,
                                                                                      1997               1996
<S>                                                                               <C>                <C>
Cash flows from operating activities:
  Net income                                                                      $        85        $         6
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Depreciation                                                                          228                227
    Amortization of loan fees, included in interest expense                                18                 18
    Minority interest in net income/loss and distributions                                 (3)                (8)
Changes in certain assets and liabilities:
    Other assets                                                                          (62)               (78)
    Accounts payable and accrued expenses                                                 101                131
    Interest payable                                                                       (1)                (1)
    Other liabilities                                                                      25                 (1)
                                                                                   ----------         ----------

       Net cash provided by operating activities                                          391                294
                                                                                   ----------         ----------

Cash flows from investing activities:
    Additions to real estate                                                              (19)               (13)
                                                                                   ----------         ----------

       Net cash used for investing activities                                             (19)               (13)
                                                                                   ----------         ----------

Cash flows from financing activities:
  Note payable principal payments                                                         (75)               (56)
  Distributions to partners                                                              (175)              (175)
                                                                                   ----------         -----------

       Net cash used for financing activities                                            (250)              (231)
                                                                                   ----------         ----------

Net increase in cash                                                                      122                 50

Cash and cash equivalents at beginning of period                                        1,407              1,331
                                                                                   ----------         ----------

Cash and cash equivalents at end of period                                         $    1,529         $    1,381
                                                                                   ==========         ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                           $      465         $      477
                                                                                   ==========         ==========

</TABLE>





          See accompanying notes to consolidated financial statements.




                                  Page 6 of 12
<PAGE>



                           RANCON PACIFIC REALTY L.P.


                   Notes to Consolidated Financial Statements

                        December 31, 1996, 1995 and 1994


Note 1.           ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of RC Pacific Realty Partners, L.P. and Glenborough Inland Realty
Corporation,   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, 1997 and
December 31, 1996, and the related consolidated statements of income, changes in
partners'  equity and cash flows for the three  months  ended March 31, 1997 and
1996.

In December,  1994,  Rancon  Financial  Corporation  (RFC),  an affiliate of the
Partnership,   entered  into  an  agreement  with   Glenborough   Inland  Realty
Corporation  (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.
According to the contract, the Partnership will pay Glenborough for its services
as follows: (i) a specified asset administration fee of $215,000 per year, which
is fixed for five years and subject to reduction in the year  following the sale
of assets;  (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.  This
agreement was effective January 1, 1995.  Glenborough is not an affiliate of RFC
or the Partnership.

During the quarter  ended March 31, 1997, a total of 1,026 units were  abandoned
as a result of partners  desiring to no longer receive  Partnership K-1's and to
give them the  ability to write off  investments  for income tax  purposes.  The
equity  (deficit)  balance of the abandoned units was allocated to the remaining
outstanding   units.  As  of  March  31,  1997,  there  were  2,824,558  limited
partnership units issued and outstanding.

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 1996 balances have been  reclassified  to conform to
the current year presentation.




                                  Page 7 of 12
<PAGE>


                           RANCON PACIFIC REALTY, L.P.

                   Notes to Consolidated Financial Statements

                                 March 31, 1997
                                   (Unaudited)


Note 2.           REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
consolidated  Notes  to  Financial  Statements  included  in  the  1996  audited
financial statements.

Note 3.           RELATED PARTY TRANSACTIONS

Pursuant to a plan of exchange which was  consummated in 1988, 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.

Note 4.           ADJUSTMENT TO MINORITY INVESTMENT

During the first quarter of 1996, it was determined  that a reallocation  in the
amount  of  $63,000  to  the  previous  years   allocations  of  losses  between
Transamerica La Jolla Partners  (TLJP) and the  Partnership was necessary.  This
amount appears as an adjustment to minority interest on the Partnership's  March
31, 1996 consolidated statement of partners' equity (deficit).



                                  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, 1997 and its results of  operations  for the three  months ended March
31,  1997 and 1996.  This  information  should be read in  conjunction  with the
Partnership's audited December 31, 1996 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,  1997,  the
Partnership  had cash and cash  equivalents of $1,529,000.  The remainder of the
Partnership's  assets consists primarily of its investments in three residential
properties,  with a net book value totaling  approximately  $30,559,000 at March
31, 1997.

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).

All of the Partnership's assets are located in San Diego County,  California and
have been directly affected by the economic  weakness of the region.  Management
believes,  however,  that the market has flattened  and is no longer  falling in
terms of sales  prices.  While  prices  have not  increased  significantly,  the
Southern  California  real estate  market  appears to be  improving.  Management
continues to evaluate the Southern California real estate market in an effort to
determine  the optimal time to dispose of the assets and realize  their  maximum
value.

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 will continue 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.

The increase in other assets of $67,000, or 41%, is due to a $24,000 increase in
prepaid  insurance  from  December 31, 1996 to March 31, 1997  combined  with an
increase in impound accounts, as required by the lender, of $43,000.

Accounts  payable and accrued  expenses  increased  from $70,000 at December 31,
1997 to $171,000  at March 31,  1997 due to the accrual of property  taxes which
are payable in April 1997.





                                 Page 9 of 12
<PAGE>


RESULTS OF OPERATIONS

Rental  income for the three  months  ended  March 31,  1997 as compared to 1996
increased 7% or $99,000  primarily  due to increased  rental rates at all of the
Partnership's properties. Occupancy rates as of March 31, 1997 were 98%, 99% and
97% for  Pacific  Bay Club,  La Jolla  Canyon and Villa La Jolla,  respectively,
compared to 99%, 94% and 96%, respectively, for the same period in 1996.

Operating expenses  increased  $38,000,  or 6%, for the three months ended March
31, 1997 compared to the same period in 1996. The increase is due to an increase
in  management  fees as a result  of the  increase  in  operating  revenues,  an
increase in repair and  maintenance  expenses at the Villa La Jolla property due
to aging of the  building and the  write-off  of bad debt  relating to the prior
year.

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

General and  administrative  costs  decreased  $7,000 or 8% for the three months
ended March 31, 1997 compared to 1996  primarily  due to a one-time  payment for
professional  services in 1996 rendered in connection  with the valuation of the
limited partner interests.




                                 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 15, 1997                   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