Beverly Hills Medical Office Partners, L.P. (the "Partnership")
was formed in 1987 for the purpose of purchasing, operating,
refurbishing, and ultimately selling the Beverly Sunset Medical
Building located at 9201 Sunset Boulevard in West Hollywood,
California (the "Property").  The Partnership is managed by
Medical Office Properties Inc. (the "General Partner").  The
Property, constructed in 1964, is a nine-story medical office
building located approximately one block east of the City of
Beverly Hills on the border between the Cities of Los Angeles and
West Hollywood.  The Property contains 158,585 net rentable
square feet of space which is leased primarily to sole or
small-group medical practitioners.  Approximately 11% of the
Property's rentable square feet is ground floor retail space
currently occupied by a restaurant, pharmacy, real estate
brokerage firm, optometrist and an overnight package delivery
service.  The Property's parking facilities are leased to AMPCO
Parking through September 30, 1999.


                                  Contents

                      1   Message to Investors
                      4   Financial Statements
                      7   Notes to the Financial Statements
                     11   Independent Auditors' Report






         Administrative Inquiries       Performance Inquiries/Form 10-Ks
         Address Changes/Transfers      First Data Investor Services Group
         Service Data Corporation       P.O. Box 1527
         2424 South 130th Circle        Boston, Massachusetts  02104-1527
         Omaha, Nebraska  68144-2596    Attn.:  Financial Communications
         800-223-3464                   800-223-3464


                      Message to Investors


Presented for your review is the 1996 Annual Report for Beverly
Hills Medical Office Partners, L.P.  This report includes an
overview of the market conditions affecting the Beverly Sunset
Medical Building and provides an update on leasing progress and
capital improvements at the Property.  Also included in this
report are the Partnership's 1996 audited financial statements.

Overview
Operations at the Property remained relatively stable during 1996,
although leasing efforts were significantly hindered by strong
competition in the medical office space market and the ongoing
consolidation and transformation of the health care industry.
Overall, the Property posted a modest 3.2% increase in occupancy
at year-end 1996 compared to the previous year, primarily as a
result of expansions by existing tenants.

California continues to remain on the forefront of the national
shift of the health care industry away from independent fee-for-
service doctors towards health maintenance organizations ("HMOs")
and managed care networks.  It is estimated that approximately 85%
to 90% of Southern Californians with medical insurance are
enrolled in either an HMO or a managed care network.  The
continued consolidation of the health care industry has placed
increasing pressures on sole practitioners, who comprise the
majority of the Property's tenant base, to control expenses and
minimize risk in this uncertain business environment.  Therefore,
many sole practitioners have opted to reduce their office space
requirements by consolidating their practices with other doctors
or contracting with HMOs and managed care networks, thereby
reducing overall demand for medical office space.

As a result of such changes, the vacancy rate at year-end 1996 for
medical office space in West Los Angeles where the Property is
located was approximately 17%, as compared to 16% one year
earlier.  Since managed care networks and HMOs prefer to be
located in close proximity to hospitals, it has become even more
difficult for the Property to attract tenants due to its location
on the periphery of the "Golden Triangle", the submarket
surrounding the Cedars-Sinai Medical Center.  These factors have
further heightened competition which has depressed the Property's
rental rates and necessitated the use of rental concessions in
order to attract and retain tenants.

The Partnership has responded to these competitive pressures by
focusing on effectively managing the Property in order to retain
the existing tenant base and aggressively marketing the vacant
space.  As previously reported,  in an attempt to improve leasing
results, the General Partner retained CB Commercial Real Estate
Group, Inc. ("CB Commercial") as the Property's new leasing broker
in June 1996.  CB Commercial, one of the largest commercial real
estate brokerage firms in the country, has significant experience
in leasing medical office space in West Los Angeles.

Leasing Progress
The Partnership successfully renewed eight leases totaling 12,771
square feet which were scheduled to expire in 1996.  Furthermore,
one month-to-month tenant converted to a long-term lease in 1996.
Additionally, four tenants expanded their space by approximately
5,054 square feet.  As a result, the Property's occupancy level
increased to 72.8% at year-end 1996, as compared with 69.6% at
year-end 1995.  In 1997, 11 leases representing 21,107 square
feet, or approximately 13.3% of the Property's total rentable
area, are scheduled to expire.  One of these leases, representing
approximately 2,466 square feet, was already renewed in early 1997
with the tenant expanding by 1,223 square feet. Although we will
attempt to renew the remaining 10 leases, there can be no
assurance of success in light of the extremely competitive market
conditions.  In addition, CB Commercial will aggressively market
the Property's vacant space and has launched a direct mail
campaign highlighting the Property's designation as the "Medical
Office Building of the Year" by the Building Owners and Managers
Association in each of the Southern California, regional and
international competitions.

In November 1995, one of the Property's retail tenants occupying
10,351 square feet, the Hamburger Hamlet restaurant, filed for
protection under Chapter 11 of the U.S. Bankruptcy Code.  The date
by which Hamburger Hamlet must either assume or reject its lease
obligation to the Property was extended by the bankruptcy court at
the request of Hamburger Hamlet to April 1997.  The tenant, which
has remained current on its rental obligation since filing for
bankruptcy protection, has informally indicated its intention to
remain at the Property which is its flagship location.

Capital Improvements
During 1996, the General Partner continued to enhance the
Property's overall appearance and operating efficiency by making
selective capital improvements, including the installation of
security gates at the entrances to the parking garage and the
retrofit of the lighting in the common areas.  Additionally, as
part of the ongoing building maintenance program, the heating and
ventilation systems ("HVAC") retrofit of the second and fifth
floors is scheduled for 1997, thereby completing the entire HVAC
retrofit of the Property.

We continue to install sprinklers and other fire/life-safety
hardware in accordance with the safety codes of the City of West
Hollywood. As previously reported, the City of West Hollywood
adopted an ordinance which originally required the installation of
sprinklers and other fire/life-safety hardware in all existing
high-rise buildings by January 1992.  The deadline was
subsequently extended to February 3, 1997. Our initial plan, which
was approved by the City, involved performing the remaining
retrofit during the remodeling of tenant suites in connection with
new leases and renewals.  Under this plan, approximately 36% of
the tenant areas and 100% of all common areas have been brought
into compliance.  In late 1996, the Partnership received a further
extension of the sprinkler retrofit deadline  to December 7, 1998.
It is currently anticipated that any remaining retrofit work which
is not completed in the course of executing lease renewals and new
leases will be commenced in the second quarter of 1998.

Financial Highlights
The following chart presents selected financial results of the
Partnership for the years ended December 31, 1996 and 1995:
                                               1996           1995
          Total Income                   $4,096,162     $4,340,024
          Property Operating Expenses     1,774,810      1,824,269
          Net Loss                          900,981        669,862
          Net Cash Flow from Operations   1,207,676        675,539

-  Total Income decreased in 1996 by $243,862 primarily due to the
 recognition of real estate property tax refunds totaling
 approximately $315,000 in the previous year  in connection with
 the Partnership's successful appeal of the Property's 1992-93,
 1993-94 and 1994-95 real estate tax assessments.
-  Property Operating Expenses declined when compared to 1995
 primarily due to a decrease in insurance, advertising, utilities
 expenses and real estate and other taxes.  Such decreases were
 partially offset by an increase in miscellaneous expenses and
 professional fees.
-  The increase in Net Loss for 1996 of $231,119 is primarily due to
 the recognition of the real estate property tax refunds in 1995.
 Similarly, Net Cash Flow from Operations was higher in 1996
 primarily due to the receipt of the property tax refunds which
 were accrued in 1995 and an adjustment in the monthly funding of
 escrow amounts for real estate taxes.

Although the Property is generating positive cash flow from
operations after debt service and administrative costs, net cash
flow is being retained to replenish the Partnership's cash
reserves.  These reserves are necessary to fund, among other
things, the Property's leasing costs and the installation of
sprinkler and fire/life-safety equipment.

General Information
As you may be aware, there have been many recent attempts by third
parties for their own benefit, to purchase units of limited
partnerships similar to your Partnership.  Frequently, these third
parties use partial "tender offers" to purchase units at grossly
inadequate prices that do not reflect the underlying value of the
partnership's assets.  According to published industry sources, in
the overwhelming majority of such offers, most unitholders have
rejected them due to their inadequacy and have not tendered their
units.  Please be advised that if any tender offer is made for
your Units, we will endeavor to provide you with information
regarding our position with respect to such offer on a timely
basis.

Summary
As previously mentioned, the continued consolidation and
transformation of the health care industry has further intensified
the already competitive leasing conditions in the medical office
space market.  In view of the significant impact of on-going
changes in the health care industry, the General Partner intends
to carefully examine the possibility of marketing the Property for
sale in 1997.  In the interim, we intend to remain attentive to
the needs of our existing tenants and will attempt to renew the
leases scheduled to expire during the year.  However, we currently
anticipate that the Partnership is likely to continue to encounter
difficulty in leasing additional space at the Property.  We will
keep you apprised of developments affecting the Property in future
investor correspondence.

Very truly yours,

Medical Office Properties Inc.
The General Partner

/s/ Rocco F. Andriola

Rocco F. Andriola
President

March 28, 1997


Balance Sheets                              At December 31,  At December 31,
                                                      1996             1995
Assets
Real estate, at cost:
 Land                                          $ 8,379,434     $  8,379,434
 Building, building improvements
  and equipment                                 41,921,813       41,623,252
                                                50,301,247       50,002,686
 Less accumulated depreciation                 (14,031,118)     (12,281,843)
                                                36,270,129       37,720,843

Cash and cash equivalents                        1,648,513        1,026,560
Restricted cash                                    498,257          468,992
Accounts and other receivables                     105,552          363,192
Leasing commissions and prepaid expenses,
 net of accumulated amortization of
 $212,762 in 1996 and $206,634 in 1995             292,542          265,438
Other assets, net of accumulated amortization
 of $253,135 in 1996 and $223,060 in 1995           47,620           77,695
Deferred rent receivable                           388,464          479,913
  Total Assets                                 $39,251,077      $40,402,633
Liabilities and Partners' Capital (Deficit)
Liabilities:
 Accounts payable and accrued expenses         $   213,517      $   237,039
 Due to affiliates                                 337,765          337,139
 Security deposits payable                         179,725          168,836
 Secured note payable                           13,902,293       14,140,861
  Total Liabilities                             14,633,300       14,883,875
Partners' Capital (Deficit):
 General Partner                                  (206,331)        (206,331)
 Limited Partners (5,540,000 units outstanding) 24,824,108       25,725,089
  Total Partners' Capital                       24,617,777       25,518,758
  Total Liabilities and Partners' Capital      $39,251,077      $40,402,633



Statements of Partners' Capital (Deficit)
For the years ended December 31, 1996, 1995 and 1994
                                     General       Limited
                                     Partner       Partners        Total
Balance at December 31, 1993       $(206,331)   $27,371,368    $27,165,037
Net loss                                  --       (976,417)      (976,417)
Balance at December 31, 1994        (206,331)    26,394,951     26,188,620
Net loss                                  --       (669,862)      (669,862)
Balance at December 31, 1995        (206,331)    25,725,089     25,518,758
Net loss                                  --       (900,981)      (900,981)
Balance at December 31, 1996       $(206,331)   $24,824,108    $24,617,777


Statements of Operations
For the years ended December 31,           1996         1995         1994
Income
Rental                               $3,978,679   $3,922,449   $3,913,869
Interest                                100,343       94,943       55,477
Other                                    17,140      322,632      118,959
  Total Income                        4,096,162    4,340,024    4,088,305
Expenses
Depreciation and amortization         1,897,408    1,851,343    1,777,812
Property operating                    1,774,810    1,824,269    1,923,409
Interest                              1,087,561    1,105,295    1,121,714
General and administrative              187,364      178,979      182,357
Asset management fee                     50,000       50,000       50,000
Bad debt                                     --           --        9,430
  Total Expenses                      4,997,143    5,009,886    5,064,722
  Net Loss                           $ (900,981)  $ (669,862)   $(976,417)
Net Loss Allocated:
To the General Partner               $       --   $       --    $      --
To the Limited Partners               (900,981)     (669,862)    (976,417)
                                     $(900,981)   $ (669,862)   $(976,417)
Per limited partnership unit
(5,540,000 outstanding)               $(0.16)   $(0.12)   $(0.18)


Statements of Cash Flows
For the years ended December 31,                 1996         1995         1994
Cash Flows From Operating Activities:
Net loss                                    $(900,981)   $(669,862)   $(976,417)
Adjustments to reconcile net loss to
net cash provided by operating activities:
 Depreciation and amortization              1,897,408    1,851,343    1,777,812
 Increase (decrease) in cash arising from
 changes in operating assets and liabilities:
  Restricted cash                             (29,265)    (179,139)       2,996
  Accounts and other receivables              257,640     (322,612)     (19,100)
  Prepaid expenses                            (96,568)     (11,326)    (101,056)
  Deferred rent receivable                     91,449       10,391     (107,014)
  Accounts payable and accrued expenses       (23,522)     (42,378)      43,244
  Due to affiliates                               626       50,086       50,000
  Security deposits payable                    10,889      (10,964)       9,499
Net cash provided by operating activities   1,207,676      675,539      679,964
Cash Flows From Investing Activities:
Additions to real estate                     (327,651)    (645,980)    (358,973)
Accounts payable - real estate                (19,504)     (33,010)      55,876
Net cash used for investing activities       (347,155)    (678,990)    (303,097)
Cash Flows From Financing Activities:
Payments of principal on
 secured note payable                        (238,568)    (220,831)    (204,415)
Net cash used for financing activities       (238,568)    (220,831)    (204,415)
Net increase (decrease) in cash and
 cash equivalents                             621,953     (224,282)     172,452
Cash and cash equivalents,
 beginning of year                          1,026,560    1,250,842    1,078,390
Cash and cash equivalents,
 end of year                               $1,648,513   $1,026,560   $1,250,842
Supplemental Disclosure of
 Cash Flow Information:
Cash paid during the year for interest     $1,087,561   $1,105,295   $1,121,714
Supplemental Schedule of
 Non-Cash Investing Activities:
Write-off of fully depreciated
tenant improvements                        $   48,594   $       --   $  393,073


Notes to the Financial Statements
December 31, 1996, 1995 and 1994

1. Organization
Beverly Hills Medical Office Partners, L.P., formerly Shearson
Beverly Hills Medical Office Partners, L.P., a limited
partnership (the "Partnership"), was organized on March 16, 1987
under the laws of the State of Delaware for the purpose of
acquiring, upgrading, operating and ultimately disposing of the
Beverly Sunset Medical Building (the "Property").  The Property
was acquired with funds obtained from a $55,400,000 public
offering of 5,540,000 limited partnership securities ("Units").
The general partner is Medical Office Properties Inc. (the
"General Partner"), formerly Shearson Lehman Commercial
Properties Inc., a Delaware corporation affiliated with Lehman
Brothers Inc.  The General Partner manages the business affairs
and operations of the Partnership.  The Partnership will
terminate on December 31, 2037, or sooner, in accordance with the
terms of the Partnership Agreement.

On July 31, 1993, Shearson Lehman Brothers Inc. sold certain of
its domestic retail brokerage and asset management businesses to
Smith Barney, Harris Upham & Co. Incorporated ("Smith Barney").
Subsequent to the sale, Shearson Lehman Brothers Inc. changed its
name to Lehman Brothers Inc.  The transaction did not affect the
ownership of the General Partner.  However, the assets acquired
by Smith Barney included the name "Shearson."  Consequently,
effective October 29, 1993, Shearson Lehman Commercial Properties
Inc. changed its name to Medical Office Properties Inc. and
effective December 31, 1993, the Partnership changed its name to
Beverly Hills Medical Office Partners, L.P. to delete any
reference to "Shearson."

On February 14, 1996, based upon, among other things, the advice
of legal counsel, Skadden, Arps, Slate, Meagher & Flom, the
General Partner adopted a resolution that states, among other
things, if a Change of Control (as defined below) occurs, the
General Partner may distribute the Partnership's cash balances
not required for its ordinary course day-to-day operations.
"Change of Control" means any purchase or offer to purchase more
than 10% of the Units that is not approved in advance by the
General Partner.  In determining the amount of the distribution,
the General Partner may take into account all material factors.
In addition, the Partnership will not be obligated to make any
distribution to any partner, and no partner will be entitled to
receive any distribution, until the General Partner has declared
the distribution and established a record date and distribution
date for the distribution.

2. Significant Accounting Policies

Building, Building Improvements and Equipment - Building, building
improvements and equipment are stated at cost less accumulated
depreciation.  Depreciation is computed using the straight-line
method based upon estimated useful lives of thirty years for the
building and ten years for personal property.  Tenant
improvements are depreciated over the respective lives of the
leases using the straight-line method.

Acquisition fees and expenses have been added to the basis of the
Property and are depreciated over the lives of the building and
personal property.

Accounting for Impairment - In March 1995, the Financial
Accounting Standards Board issued Statement of Financial
Accounting Standards No. 121 "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of"
("FAS 121"), which requires impairment losses to be recorded on
long-lived assets used in operations when indicators of
impairment are present and the undiscounted cash flows estimated
to be generated by those assets are less than the assets'
carrying amount.  FAS 121 also addresses the accounting for long-
lived assets that are expected to be disposed of.  The
Partnership adopted FAS 121 during the fourth fiscal quarter of
1995.

The Partnership completed a review of recoverability of the
carrying amount of the Property based upon an estimate of
undiscounted cash flows expected to result from the Property's
use and eventual disposition. Based on current estimates, the
adoption of FAS 121 had no impact on the financial statements.
However, if long-term financing cannot be arranged in August 1998
or the Property is marketed for sale, it is reasonably possible
that a change in the Partnership's assessment of recoverability
could occur.

Loan Costs - Included in other assets are loan costs that are
being amortized using the straight-line method over the term of
the secured note payable.

Leasing Commissions - Leasing commissions are amortized using the
straight-line method over the terms of the respective leases.

Deferred Rent Receivable - Deferred rent receivable consists of
rental income which is recognized on a straight-line basis over
the non-cancelable term of the leases which will not be collected
until later periods as a result of rental concessions and/or
scheduled rent increases.

Income Taxes - No provision for income taxes has been made in the
financial statements since income, losses and tax credits are
passed through to the individual partners.

Cash and Cash Equivalents - Cash and cash equivalents consist of
short-term highly liquid investments which have maturities of
three months or less from the date of issuance.  The carrying
value approximates fair value because of the short maturity of
these instruments.

Restricted Cash - Restricted cash includes security deposits,
insurance and real estate tax escrows.

Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses
during the reporting period.  Actual results could differ from
those estimates.  Management's review of the recoverability of
the carrying amount of the Property and related accounts is one
such estimate.

Fair Value of Financial Instruments - Statement of Financial
Accounting Standards No. 107, "Disclosures about Fair Value of
Financial Instruments" ("FAS 107"), requires that the Partnership
disclose the estimated fair values of its financial instruments.
Fair values generally represent estimates of amounts at which a
financial instrument could be exchanged between willing parties
in a current transaction other than in forced liquidation.  Fair
value estimates are subjective and are dependent on a number of
significant assumptions based on management's judgment regarding
future expected loss experience, current economic conditions,
risk characteristics of various financial instruments, and other
factors.  In addition, FAS 107 allows a wide range of valuation
techniques, therefore, comparisons between entities, however
similar, may be difficult.

Reclassifications - Certain balances in the prior year financial
statements have been reclassified to conform to the 1996
presentation.

3. Partnership Allocations
Net income will generally be allocated based on the amounts of
cash distributions to each partner.  Net losses will be allocated
99% to the Unitholders and 1% to the General Partner.  However,
if either the Unitholders or the General Partner have a capital
deficit, the entire loss will be allocated to the partners with
positive capital accounts.

Under the terms of the Partnership Agreement, Partnership Net
Cash Flow from Operations, as defined, will be distributed 99% to
the Unitholders and 1% to the General Partner until such time as
the Unitholders receive a cumulative preferred return of 12% per
annum on their Unrecovered Capital, as defined.  Thereafter,
Partnership Net Cash Flow from Operations, as defined, will be
distributed 85% to the Unitholders and 15% to the General
Partner.  At December 31, 1996,  the Unitholders have not yet
received their cumulative preferred return.

4. Property
The Beverly Sunset Medical Building, which contains approximately
158,585 net rentable square feet of space, was acquired in 1987.
The Property is located at 9201 Sunset Boulevard in the City of
West Hollywood, California.  The Property was approximately 72.8%
and 69.6% occupied at December 31, 1996 and 1995, respectively.

In January 1989, the City of West Hollywood adopted Ordinance No.
214 (the "Ordinance") which required the installation of
sprinklers and other life-safety equipment in all existing high-
rise buildings by January 1992.  On April 20, 1992, the City of
West Hollywood extended the deadline for completing the sprinkler
retrofit of tenant areas to February 3, 1997.  In response, the
General Partner retained a building code consultant to analyze
the fire/life-safety requirements applicable to the Property and
to develop a plan to complete the sprinkler retrofit.  The
General Partner's initial plan, which was approved by the City of
West Hollywood, involved performing the remaining retrofit during
the course of remodeling tenant suites in connection with new
leasing and renewals.  Under this plan, approximately 36% of the
tenant areas and 100% of all common areas were brought into
compliance.  The General Partner approached the City of West
Hollywood to request an extension of the deadline for completion
of the required sprinkler retrofit project. In November 1996, the
City of West Hollywood granted such extension and advised that
the Partnership has until December 7, 1998 to complete the
sprinkler retrofit of the Property.

The Property also contains asbestos-containing materials ("ACM")
in certain areas, including the fireproofing material that covers
the steel structure of the Property.  Although the ACM has been
determined to be non-hazardous in its current condition, the
Partnership is required to abate such ACM to the extent that any
ACM is at risk of being disturbed in the process of installing
sprinklers or in the remodeling of tenant suites.  The General
Partner has retained an environmental consultant to provide
project management, air quality monitoring and project close-out
documentation in connection with the ACM abatement.  The
Partnership has no legal obligation to implement a full abatement
of the entire building at present.  The presence of ACM may or
may not impact the future value of the Property.

All tenant improvements, asbestos abatements and sprinkler
retrofit costs will be funded from cash and cash equivalents and
future cash flow from operations.  Approximately $125,000 and
$62,000 were expended on the sprinkler retrofit and asbestos
abatement in 1996 and 1995, respectively, which the Partnership
performed during the course of remodeling tenant suites in
connection with new leasing and renewals.  In addition,
approximately $182,000 and $335,000 were expended for tenant
improvements during 1996 and 1995, respectively.

5. Transactions With Related Parties

Annual Asset Management Fee - The General Partner is entitled to
an annual asset management fee equal to $50,000 per year.  The
unpaid asset management fees as of December 31, 1996 and 1995
aggregated $335,500 and $285,500, respectively.  As provided in
the Partnership Agreement, the annual asset management fee was
scheduled to increase to $115,000 per annum in 1991.  However,
the General Partner has voluntarily waived the $65,000 increase
in each year since 1991.

General Partner Distribution - Cumulative cash distributions
totaling $51,553, declared in prior years, were paid to the
General Partner on October 15, 1996.

Administrative Services - Under the terms of the Partnership
Agreement, the Partnership reimburses the General Partner and its
affiliates for travel expenses relating to the management of the
Partnership. For the years ended December 31, 1996, 1995, and
1994, costs of such expenses incurred were $15,987, $16,024 and
$11,361, respectively.  At December 31, 1996 and 1995, $2,265 and
$87 remained payable to the General Partner or its affiliates for
these expenses.

An affiliate of the General Partner paid for all travel expenses
relating to the management of the Partnership from 1991 until
April 1, 1994, at which time the Partnership began reimbursing
the General Partner for its travel expenses.

Certain cash and cash equivalents were on deposit with an
affiliate of a General Partner during a portion of 1996 and all
of 1995.  As of December 31, 1996, no cash and cash equivalents
were on deposit with an affiliate of the General Partner or the
Partnership.

6. Tenant Leases
The Property's leases have terms from one month to 10 years and
are leased primarily to sole or small group medical
practitioners.  The parking facilities in the Property are leased
to AMPCO Parking through September 30, 1999. The lease with AMPCO
Parking requires annual minimum rent payments  of $665,000 and
additional rent payments contingent upon a percentage of excess
gross cash receipts. The Partnership accounts for all leases as
operating leases.

The approximate minimum annual rental payments from existing
noncancellable operating leases as of December 31, 1996 are as
follows:

               1997                     $3,526,051
               1998                      3,045,720
               1999                      2,217,186
               2000                      1,297,169
               2001                        911,255
               Thereafter                  912,093
                                       $11,909,474

7. Secured Note Payable
On August 13, 1988, the Partnership obtained a $15,000,000 ten-
year loan (the "Loan") from American Savings Bank (the "Bank").
The Loan is secured by the Property and an assignment of the
leases.  The Loan had an interest rate of 9.5% per annum for the
first five years with monthly payments of interest only through
September 1990.  Monthly payments of $127,750 of principal and
interest were required through September 1993.  Thereafter, the
Loan was adjusted to a new fixed rate equal to 250 basis points
over the Federal Home Loan Bank's New York District Five-Year
Advance Rate and combined monthly payments of principal and
interest are based on a 25-year amortization schedule until
maturity on August 13, 1998.  Effective October 1, 1993, the Loan
interest rate was reset to 7.75% per annum and monthly payments
of principal and interest are $110,511.

On June 12, 1992, the Bank was declared insolvent and placed in
the hands of the Federal Deposit Insurance Corporation ("FDIC")
as receiver.  In late 1993, Colony NYRO Partners, L.P. ("Colony")
purchased the Loan in an FDIC loan auction sale.  Subsequently,
in December 1994, Colony sold the Loan to Fremont Investment &
Loan.  Although the Loan provides for maintenance of a real
estate tax escrow account with the lender, no amounts have been
deposited with the current lender.  However, the Partnership has
established its own escrow account, and has remitted all real
estate taxes for the period ended December 31, 1996 directly to
the taxing authority.

Future minimum principal payments on the Loan are as follows:

               1997                      $   257,728
               1998                       13,644,565
                                         $13,902,293

Based on the borrowing rates currently available to the
Partnership for mortgage loans with similar terms and average
maturities, the estimated fair value of the Loan approximates its
carrying value.

8. Reconciliation of Financial Statement Net Loss to Federal
Income Tax Net Loss
The Partnership's net loss reported in the financial statements
for the year ended December 31, 1996 exceeded the tax loss by
$622,596.  The net loss reported in the financial statements
exceeded the Federal Income tax loss for the years ended December
31, 1995 and 1994 by $389,786 and $320,995, respectively.  These
differences result primarily from the use of different
depreciation lives and methods for tax purposes than those used
for financial reporting purposes.  In addition, rental income is
recognized when received or recorded as a receivable when payment
is due for tax purposes and on a straight-line basis for
financial statement purposes.

The partners' capital account balance on a federal income tax
basis totaled $26,999,325, $27,277,710 and $27,557,786 in 1996,
1995 and 1994, respectively.


                  Independent Auditors' Report


The Partners
Beverly Hills Medical Office Partners, L.P.:

We have audited the accompanying balance sheets of Beverly Hills
Medical Office Partners, L.P. (a Delaware limited partnership)
as of December 31, 1996 and 1995, and the related  statements of
operations, partners' capital (deficit), and cash flows for each
of the years in the three-year period ended December 31, 1996.
These financial statements are the responsibility of the
Partnership's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted
auditing standards.  Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation.  We believe that
our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Beverly Hills Medical Office Partners, L.P. as of December 31,
1996 and 1995, and the results of its operations and its cash
flows for each of the years in the three-year period ended
December 31,  1996, in conformity with generally accepted
accounting principles.

                                  KPMG Peat Marwick LLP

Boston, Massachusetts
February 20, 1997


            Schedule III - Real Estate and Accumulated Depreciation
                               December 31, 1996

                                Beverly Sunset
Office Building:                Medical Building

Location                        West Hollywood, CA

Construction date               1964
Acquisition date                4-23-87
Life on which depreciation
in latest income statements
is computed                     (3)
Encumbrances                    $13,902,293
Initial cost to Partnership:    (1)
     Land                       8,379,434
     Buildings and
     improvements               32,803,390
Costs capitalized
subsequent to acquisition:
     Land, buildings
     and improvements           9,118,423

Gross amount at which
carried at close of period:
     Land                       $8,379,434
     Buildings and
     improvements               41,921,813
                                50,301,247

Accumulated depreciation(2)     14,031,118

(1)  The aggregate cost for Federal Income tax purposes is approximately
$51,724,069.
(2)  The amount of accumulated depreciation for Federal income tax purposes is
$12,646,084.
(3)  Buildings and improvements - 3 - 30 years.

A reconciliation of the carrying amount of real estate and
accumulated depreciation for the years ended
December 31, 1996, 1995, and 1994 follows:

                                         1996           1995          1994
Real estate investments:
Beginning of year                 $41,623,252    $40,944,262   $40,978,362
Additions                             347,155        678,990       358,973
Retirements                          (48,594)             --      (393,073)
End of year                       $41,921,813    $41,623,252   $40,944,262

Accumulated depreciation:
Beginning of year                 $12,281,843    $10,527,620   $ 9,264,246
Depreciation expense                1,797,869      1,754,223     1,656,447
Retirements                           (48,594)            --      (393,073)
End of year                       $14,031,118    $12,281,843   $10,527,620




                  INDEPENDENT AUDITORS' REPORT


The Partners
Beverly Hills Medical Office Partners, L.P.:

Under date of February 20, 1997, we reported on the balance
sheets of Beverly Hills Medical Office Partners, L.P. (a Delaware
limited partnership) as of December 31, 1996 and 1995, and the
related statements of operations, partners' capital (deficit),
and cash flows for each of the years in the three-year period
ended December 31, 1996, as contained in the 1996 annual report
to Unitholders.  These financial statements and our report
thereon are incorporated by reference in the annual report on
Form 10-K for the year 1996.  In connection with our audits of
the aforementioned financial statements, we also have audited the
related financial statement schedule as listed in the
accompanying index.  This financial statement schedule is the
responsibility of the Partnership's management.  Our
responsibility is to express an opinion on the financial
statement schedule based on our audits.

In our opinion, the financial statement schedule, when considered
in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information set
forth therein.

                                  KPMG Peat Marwick LLP

Boston, Massachusetts
February 20, 1997