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 September 30, 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.
             (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 September 30, 1997: 2,823,687






                                  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>
                                                                       September 30,              December 31,
                                                                           1997                       1996
                                                                     --------------              --------------
<S>                                                                  <C>                         <C>
Assets
Rental property:
    Land                                                             $       14,213              $       14,213
    Buildings and improvements                                               27,113                      28,487
                                                                     --------------              --------------
                                                                             41,326                      42,700
       Less accumulated depreciation                                        (11,154)                    (11,932)
                                                                     --------------              --------------
           Net rental property                                               30,172                      30,768

Cash and cash equivalents                                                     1,758                       1,407
Deferred financing costs, net of
    accumulated amortization of $189
    and $134 at September 30, 1997 and
    December 31, 1996, respectively                                             443                         498
Other assets                                                                    196                         170
                                                                     --------------              --------------

           Total assets                                              $       32,569              $       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>
                                                                       September 30,              December 31,
                                                                           1997                       1996
                                                                       -------------             -------------
<S>                                                                    <C>                       <C>
Liabilities and Partners' Equity (Deficit)
Liabilities:
    Notes payable                                                      $      23,106             $      23,337
    Accounts payable and accrued expenses                                        182                        70
    Interest payable                                                             153                       155
    Other liabilities                                                            282                       251
                                                                       -------------             -------------
       Total liabilities                                                      23,723                    23,813
                                                                       -------------             -------------

Commitments and contingent liabilities (see Note 3)

Minority interest                                                                390                       423
                                                                       -------------             -------------

Partners' equity (deficit):
    General Partner                                                              (86)                      (90)
    Limited   Partners,   2,823,687   and
      2,825,584   limited    partnership   units
      outstanding  at  September  30,  1997  and
      December 31, 1996, respectively (including
      2,121,285  preferred units  outstanding at
      September 30, 1997 and December 31, 1996)                                8,542                     8,697
                                                                       -------------             -------------

           Total partners' equity                                              8,456                     8,607
                                                                       -------------             -------------

              Total liabilities and partners' equity                   $      32,569             $      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                       Nine months ended
                                                             September 30,                            September 30,
                                                   ------------------------------           -----------------------------
                                                         1997             1996                   1997               1996
                                                   -----------       ------------           -----------       -----------
<S>                                                <C>               <C>                    <C>               <C>
Revenue:
 Rental income                                     $     1,568       $      1,458           $     4,578       $     4,238
 Interest and other income                                  25                 29                    74                73
                                                   -----------       ------------           -----------       -----------

        Total revenue                                    1,593              1,487                 4,652             4,311
                                                   -----------       ------------           -----------       -----------

Expenses:
 Operating                                                 654                651                 1,906             1,885
 Interest                                                  479                485                 1,440             1,469
 Depreciation                                              225                228                   682               682
 General and administrative                                 72                 75                   233               254
                                                    ----------        -----------           -----------       -----------

        Total expenses                                   1,430              1,439                 4,261             4,290
                                                    ----------        -----------           -----------       -----------

Income before minority interest                            163                 48                   391                21

Minority interest                                          (11)                (1)                  (17)                1
                                                    ----------        -----------           -----------       -----------

Net income                                         $       152       $         47           $       374       $        22
                                                   ===========       ============           ===========       ===========

Net income per limited partnership unit            $      0.05       $       0.02           $       0.13      $       0.01
                                                   ===========       ============           ============      ============

Distributions per preferred unit:
 From net income                                   $      0.05       $       0.02           $       0.13      $      0.01
 Representing return of capital                           0.03               0.06                   0.11             0.23
                                                   -----------       ------------           ------------      -----------
    Total distributions per preferred unit         $      0.08       $       0.08           $       0.24      $      0.24
                                                   ===========       ============           ============      ===========

Weighted  average number of limited
 partnership  units  outstanding  during the
 period used to compute net income per limited
 partnership unit                                    2,823,687          2,827,135              2,824,341        2,827,892
                                                   ===========       ============           ============       ==========

Weighted average number of preferred units
 outstanding during the period used to
 compute distributions per preferred unit            2,121,285          2,121,285              2,121,285        2,121,585
                                                   ===========       ============           ============       ==========


          See accompanying notes to consolidated financial statements.

</TABLE>

                                  Page 4 of 12
<PAGE>


                           RANCON PACIFIC REALTY L.P.

                   Consolidated Statements of Partners' Equity
                (Deficit) For the nine months ended September 30,
                                  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                                                            4                  370                  374

Distributions                                                       ---                 (525)                (525)
                                                          -------------         ------------        -------------

Balance at September 30, 1997                             $         (86)        $      8,542        $       8,456
                                                          =============         ============        =============



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

Net income                                                          ---                   22                  22

Distributions                                                       ---                 (525)                (525)

Adjustment to minority interest                                      (1)                 (62)                 (63)
                                                         --------------         ------------        -------------
Balance at September 30, 1996                             $         (91)        $      8,816        $       8,725
                                                         ==============         ============        =============                 




</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>

                                                                                         Nine months ended
                                                                                           September 30,
                                                                                   -----------------------------
                                                                                      1997               1996
                                                                                   ----------         ----------
<S>                                                                           <C>    <C>
Cash flows from operating activities:
  Net income                                                                       $      374         $       22
Adjustments to reconcile net income to net cash
 provided by operating activities:
    Depreciation                                                                          682                682
    Amortization of loan fees, included in interest expense                                55                 55
    Minority interest in net income and distributions                                     (33)               (26)
Changes in certain assets and liabilities:
    Other assets                                                                          (26)               (79)
    Accounts payable and accrued expenses                                                 112                107
    Interest payable                                                                       (2)                (4)
    Other liabilities                                                                      31                 15
                                                                                   ----------         ----------

       Net cash provided by operating activities                                        1,193                772
                                                                                   ----------         ----------

Cash flows from investing activities:
    Additions to real estate                                                              (86)               (38)
                                                                                   ----------         ----------

Cash flows from financing activities:
  Notes payable principal payments                                                       (231)              (182)
  Distributions to partners                                                              (525)              (525)
                                                                                  -----------         ----------

       Net cash used for financing activities                                            (756)              (707)
                                                                                  -----------         ----------

Net increase in cash and cash equivalents                                                 351                 27

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

Cash and cash equivalents at end of period                                         $    1,758         $    1,358
                                                                                  ===========         ==========

Supplemental disclosure of cash flow information:
  Cash paid for interest                                                           $    1,387         $    1,418
                                                                                  ===========         ==========



</TABLE>


          See accompanying notes to consolidated financial statements.




                                  Page 6 of 12
<PAGE>


                           RANCON PACIFIC REALTY L.P.

                   Notes to Consolidated Financial Statements

                               September 30, 1997
                                   (Unaudited)


Note 1.           ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

In the opinion of RC Pacific Realty  Partners,  L.P., the general  partner,  and
Glenborough  Corporation  (successor  by merger with  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. (the  Partnership)  as of September 30, 1997 and December 31, 1996, and the
related  consolidated  statements  of income for the three and nine months ended
September 30, 1997 and 1996, and changes in partners'  equity (deficit) and cash
flows for the nine months ended September 30, 1997 and 1996.

In December,  1994,  Rancon  Financial  Corporation  (RFC),  an affiliate of the
Partnership,   entered   into  an   agreement   with   Glenborough   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 nine months  ended  September  30,  1997, a total of 1,897 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 September 30, 1997, there were 2,823,687
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 inter-company  balances
and transactions have been eliminated in the consolidation.

                                  Page 7 of 12
<PAGE>

                           RANCON PACIFIC REALTY, L.P.

                   Notes to Consolidated Financial Statements

                                 March 31, 1997
                                   (Unaudited)

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

Note 2.           REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS

These  unaudited  financial  statements  should be read in conjunction  with the
Notes  to  Consolidated  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 INTEREST

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
September 30, 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
September  30, 1997 and its  results of  operations  for the nine  months  ended
September 30, 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 September  30, 1997,  the
Partnership  had cash and cash  equivalents of $1,758,000.  The remainder of the
Partnership's  assets consists primarily of its investments in three residential
properties,  with  a  net  book  value  totaling  approximately  $30,172,000  at
September 30, 1997.

The  Partnership  currently owns the following three  properties,  all apartment
complexes in San Diego  County,  California:  Pacific Bay Club  Apartments  (159
units), La Jolla Canyon  Apartments (157 units) and Villa La Jolla  Condominiums
(385 condominium units).

Accounts payable and accrued expenses  increased  $112,000 or 160% primarily due
to the accrual of property taxes which are due December 10, 1997.

The  increase in other  liabilities  of $31,000 or 12% is  primarily  due to the
increase in security  deposits  collected.  In 1997, the Partnership  raised the
amount of the  required  security  deposit  at the  Villa La Jolla  Condominiums
property.

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.

RESULTS OF OPERATIONS

Rental  income for the nine months ended  September  30, 1997 as compared to the
same period in 1996 increased 8%, or $340,000, primarily due to increased rental
rates at all of the  Partnership's  properties.  Occupancy rates as of September
30, 1997 were 97%,  99% and 99% for Pacific Bay Club,  La Jolla Canyon and Villa
La Jolla,  respectively,  compared to 97%, 99% and 98%, respectively,  as of the
same date in 1996.

Operating  expenses  for the nine months  ended  September  30,  1997  increased
slightly (approximately 1%) over the same period in 1996.

                                  Page 9 of 12
<PAGE>


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

General and administrative  costs decreased $21,000,  or 8%, for the nine months
ended September 30, 1997 compared to 1996 primarily due to a one-time payment of
$6,000  for  professional  services  in 1996  rendered  in  connection  with the
valuation  of the  limited  partner  interests  and a  $12,000  decrease  in tax
preparation fees as a result of additional one-time services incurred in 1996.




                                 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.
                           (Registrant)


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


Date:  November 14, 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