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

                                   FORM 10-K

(Mark One)
[ X ]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE  SECURITIES
     EXCHANGE ACT OF 1934 [FEE REQUIRED]

                    FOR THE FISCAL YEAR ENDED  DECEMBER 31, 1996

                                       OR
[    ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
     EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
FOR THE TRANSITION PERIOD FROM                   TO

                         COMMISSION FILE NUMBER   0-24594

                       WEST COAST REALTY INVESTORS, INC.
             (Exact name of registrant as specified in its charter)

     DELAWARE                                    95-4246740
   State or other jurisdiction of                (IRS Employer
   incorporation or organization                 Identification)

         5933 WEST CENTURY BLVD., 9TH FLOOR, LOS ANGELES, CA 90045-5454
         (Address of principal executive offices)           (Zip Code)
    Registrant's telephone number,       including area code    (310) 670-0800

          Securities registered pursuant to Section 12(b) of the Act:
   Title of each class     Name of each exchange on which registered
          NONE                               NONE

          Securities registered pursuant to Section 12(g) of the Act:

                     SHARES OF COMMON STOCK $.01 PAR VALUE
                                (Title of class)

     Indicate by check mark whether the registrant (1) has filed all reports  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


     Indicate by check mark if disclosure of delinquent filers pursuant to  Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best  of  the  registrant's  knowledge,  in  definitive  proxy  or   information
statements incorporated  by reference  in Part  III  of this  Form 10-K  or  any
amendment to this
Form 10-K [  ]

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date:   1,675,442 shares outstanding,
as of  March 1, 1997


                                       1
<PAGE>

                                    PART I

ITEM 1.   BUSINESS

   West Coast Realty Investors,  Inc. (the "Company"), was organized in  October
1989 under the laws of the  State of Delaware.  The  Company is advised by  West
Coast Realty  Advisors,  Inc.  (the "Advisor"),  a  wholly-owned subsidiary  of
Associated Financial Group, Inc.   The Advisor will  oversee the investments  of
the Company, subject to the direction of the Company's Board of Directors.

 The  Company  was organized  for  the purpose  of  investing in,  holding,  and
managing income-producing retail or commercial  properties located primarily in
California and on the west coast of the United States. Properties have been  and
will be acquired  for cash  or on a  moderately leveraged  basis with  aggregate
mortgage indebtedness not to exceed fifty  percent of the purchase price of  all
properties on a combined basis, or eighty percent individually.

   The Company's principal goals are to:

     1.   Invest in properties which will preserve and protect capital;
     2.   Provide shareholders with cash dividends, a portion of which will not
          constitute taxable income;
     3.   Provide capital gains through potential appreciation of properties;
          and
     4.   Provide market liquidity through transferable shares of stock.

   The Company qualifies as a Real Estate Investment Trust ("REIT") for  federal
and state income tax purposes.

   On February 26,  1991, the Company acquired a  100% interest in a  commercial
building located in Huntington Beach, California.  On May 14, 1993, the  Company
acquired a 100% interest in a two tenant commercial building located in  Fresno,
California.  On September 15,  1993, the Company acquired  a 100% interest in  a
light industrial/office  building located  in Huntington  Beach, California.  On
March 4, 1994, the Company acquired a 100% interest in a light industrial/office
building located  in  Brea, California.    On  November 29,  1994,  the  Company
acquired a 100% interest in a six-plex cinema complex in Riverside,  California.
On May 22,  1995, the Company  acquired a 100%  interest in  an office  building
located in Tustin, California.  On October 31, 1995, the Company acquired a 100%
interest in a  light industrial  building located  in Fremont,  California.   On
August 2,  1996, the  Company acquired  100% interest  in two  light  industrial
buildings located in Sacramento, California.

   The ownership and operation of any income-producing real estate is subject to
those risks  inherent in  all real  estate investments,  including national  and
local economic  conditions, the  supply and  demand for  similar types  of  real
property, competitive marketing  conditions, zoning  changes, possible  casualty
losses, and increases in real estate taxes, assessments, and operating expenses,
as well as others.

                                      2

<PAGE>


    The Company is  subject to competitive  conditions that exist  in the  local
market where it operates rental real estate.  These conditions are discussed  in
Item 2: Properties.

   In addition to specific competitive conditions, the Company is subject to the
usual  competitive  factors  that  are  common  in  real  estate  including  new
construction, changes in the economy, and  vacancy factors at other rental  real
estate locations.

    The Company is operated by the Advisor, subject to the terms of the  Amended
Advisory Agreement dated January 1, 1992, which was renewed until June 30,  1997
by a  majority  vote of  the  shareholders,  and will  thereafter  be  renewable
annually with the approval of a majority  of the shareholders.  The Company  has
no employees, and all administrative services are provided by the Advisor.


ITEM 2.   PROPERTIES

BLOCKBUSTER VIDEO BUILDING

   On February 26, 1991, the Company purchased a commercial building, located in
Huntington Beach, California.

   Constructed in 1991, the building is one-story, has a total of 5,200 rentable
square feet  and is  located on  an 18,225  square  foot parcel  of land.    The
building is 100% occupied by one  tenant, Blockbuster Video, through 2001, on  a
triple net lease.   The tenant's lease calls for rental payments of $11,180  per
for the years one through five (1991-1995)  and $13,416 per month for years  six
through ten (1996-2000).  This is equivalent to $2.15 and $2.58 per square foot,
respectively.     This  lease  requires the  tenant  to  pay  insurance,  taxes,
maintenance, and all other operating costs.   During 1996, property taxes,  paid
by the tenant as part of its lease, were approximately $18,000.

    The  Building was  originally acquired  for all  cash in  1991 for  a  total
acquisition cost of $1,676,210. However, in February 1994, the Company  financed
the Building by incurring  mortgage debt secured by  the Building for  $600,000.
The loan is amortized over a  twenty-five year period and  is due in ten  years.
The monthly payment is currently $4,934 per month with the interest rate set  to
be adjusted at the end of the fifth year of  the loan to 350 basis points  above
the five-year Treasury Bond yield.  The current rate is 8.25%.

    The  building and  improvements  are depreciated  over  31.5 years  using  a
straight-line method for both financial and income tax reporting purposes.   The
financial and income tax bases for the property are the same.  In the opinion of
the General  Partner, the  property  is adequately  insured.   The  property  is
managed by West  Coast Realty  Management, Inc.  ("WCRM"), an  affiliate of  the
corporate General Partner.

   The building  is located in Orange  County, California, which has  maintained
one of the lowest unemployment rates in California, based on its stable base  of
employers ranging from big businesses to smaller retailers.  Management is aware
that future planned closures of military bases and aerospace firms could  soften
the business environment in the Orange County area.  The Advisor, however,  does
not expect these economic factors to have a significant impact on the ability of
the tenant to meet its lease obligation.

                                     3

<PAGE>


FRESNO VILLAGE SHOPPING CENTER BUILDING

   On May 14,  1993, the Company purchased  a free standing commercial  building
located in a shopping center in Fresno, California.

     Total  consideration paid  for  the  property was  $1,414,893.    Long-term
financing used to  acquire the property  was $665,000 and  matures in August  1,
2003.   Payments  are  made  at  the rate  of  8.25%  with  a  twenty-five  year
amortization schedule.  In 1998,  the interest rate on  the loan will adjust  to
3.25% above the five-year Treasury Bond yield at that time.

The  Fresno  Property  was  a  newly  developed  retail  building  (the  "Fresno
Building") with construction completed  in April 1993.   The Fresno Building  is
located at 1614 North  Blackstone, Fresno, California.   The Fresno Building  is
located close to  the center of  Fresno, California on  the northeast corner  of
Blackstone and McKinley.  Fresno is  located in Central California.  The  Fresno
Building is located on a lot size of 23,855 square feet, with a building size of
8,915 square feet.  The exterior of  the Fresno Building consists of stucco  and
glass construction.

The  Fresno  Building  is   100%  occupied  by  two   tenants  --     Wherehouse
Entertainment, Inc. ("The Wherehouse"  - a music and  video retailer), and  RTO,
Inc. (which stands for "Rent  To Own" - a home furnishing  and appliance rental
company) (collectively "Tenants").

   The building and improvements are depreciated over 39 years using a straight-
line method for both financial and income tax reporting purposes.  The financial
and tax bases for the property are the same. In the opinion of the Advisor,  the
property is adequately insured.  The property is managed by WCRM.

      As part  of a  larger neighborhood  shopping center  anchored by  a  major
department store, all  of the  tenants are dependent  upon the  vitality of  the
consumer market in the general area.  Although there are other shopping  centers
in the area, being located in a densely populated area north of downtown Fresno,
and across the  street from a  large community college,  the high daily  traffic
count provides a large customer base  for all the retail and service  businesses
in the  general  area.   Although  all areas  of  Central California  have  been
affected by the economic  slowdown, it is not  expected to significantly  impact
the occupancy of the Center.

The Wherehouse entered into a ten year  lease which commenced April 1, 1993  and
was to continue through March 31,  2003.  The Wherehouse occupies  approximately
6,000 square feet of the Fresno Building.

Prior to the modification of The  Wherehouse lease, as described below,  monthly
rental payments were to be as follows:

April, 1993 to March, 1998;                  $7,680 per month
                                             (1.28/sq.ft./month)
April, 1998 to March 2003;                   $8,820 per month
                                             (1.41/sq.ft./month)

As possible additional rent, The Wherehouse was scheduled to pay the Company  3%
of gross sales  after applying  a formula that  involves recapture  of rent  and
expenses that The Wherehouse would pay as a triple net lease tenant.  There were
no amounts due on this additional rent through December, 1996.

                                    4
<PAGE>

   On August 2,  1995, The Wherehouse filed for  protection under Chapter 11  of
the U.S. Bankruptcy Code.   The Wherehouse continued to  pay its rent under  the
terms of the original lease through January 1997.  In November 1996, the Company
and The Wherehouse agreed to the terms of  a new lease, subject to the  approval
of the Bankruptcy Court.  Under the terms  of the First Amendment to Lease  (the
"Amendment")  dated  November  30,  1996,  commencing  February  1,  1997,   The
Wherehouse's lease was converted from a  "net" lease to a  "gross" lease.  At  a
minimum, the Company will be  paid rent of $54,000  per year ($4,500 per  month)
until January 31, 1998  unless the Wherehouse exercises  its one time option  to
terminate the lease  on March 31,  1998.  If  the lease is  not terminated,  the
Company will be paid $82,800 per  year ($6,900 per month) thereafter to  January
31, 2003.   The Amendment also  provides that commencing  January 20, 1997,  the
gross rent will be adjusted to an amount equal  to 6.5% of gross sales from  the
previous eleven months, but  such rent shall  never be less  than the rent  paid
during the said period.  On April 20, 1998 and each three months thereafter, the
gross rent will be adjusted to an amount equal  to 8.2% of gross sales from  the
previous calendar quarter, but the rent shall  never be less than the rent  paid
during the said quarter.  At this time, the Company does not feel that the gross
rent calculation will  exceed the minimum  rental amount payable  in 1997.   The
Wherehouse will also pay for any percentage increase in property taxes over  and
above the amount  assessed for  calendar year  1996, on  its pro  rata share  of
occupied space of the property.  The terms and conditions pertaining to  options
to renew the lease remain unmodified and are described below.

As a result of the Amendment, the monthly rent payments (based on minimum rental
amounts) was decreased from $1.28  per square foot to  $.75 per square foot  (or
$4,500 per month) effective February 1, 1997.  In addition, the Company  expects
to absorb  an additional  $18,000 in  operating  expenses that  were  previously
allocated to The Wherehouse.  The  total decrease in income  as a result of  the
Amendment is therefore estimated to be  $38,160 per year until February 1,  1998
when the  total  decrease  will be  reduced  to  $28,800 per  year.    Based  on
approximately 1.6 million shares of the Company outstanding, the Amendment would
decrease distributable income by approximately $.02 per share per year, and thus
is not material to the operating results of the Company.

OPTO-22 BUILDING

   On September 15, 1993, the Company acquired the property described below (the
"OPTO-22 Property"  or "Building").    The funds  used  to acquire  the  OPTO-22
Property were obtained from  the sale of the  Company's shares and from  seller-
provided financing in connection with the acquisition of the OPTO-22 Property.

The OPTO-22  Property  is located  within  the master-planned  Huntington  Beach
Industrial Park at 15461  Springdale (at the  intersection of Springdale  Street
and McFadden Avenue), Huntington  Beach, California. The  Building was built  in
1977, and was occupied by a  company named OPTO-22 from  1979 through 1992.   In
August 1992, OPTO-22 subleased the Building to Claremont High School, a  private
school, whose sublease runs through April 1997.  The Building was deeded over to
the Seller in  May 1993  by the  John Lusk  Corporation via  a Deed  in Lieu  of
Foreclosure.
                                       5

<PAGE>

Situated on approximately 3.34 acres of fee land, the Building is concrete tilt-
up construction.   The Building has  approximately 25,866 square  feet of  fully
improved office area, 24 foot high clearance, is fully sprinklered, and has  two
overhead truck doors as well  as one exterior, two-bay  truck loading well.   In
addition, the site contains ample parking with approximately 201 spaces, and has
three separate driveway entrances for ingress and egress.

The Huntington Beach Industrial Park is a master-planned development of the Lusk
Company.  This industrial park contains  over 1.5 million square feet of  space,
and benefits from its close proximity to labor markets and desirable housing  as
well as access to the San Diego (405) Freeway.  Also located within one mile are
the Westminster Mall,  Golden West Community  College, and  a McDonnell  Douglas
Corporation facility.

The OPTO-22 Property  is currently being  occupied by Claremont  High School,  a
private school, under  a sublease that  commenced in August  1992 and  continues
until April 1997.  Claremont High  School in a non-profit, public-benefit,  tax-
exempt educational  institution that  serves students  in the  7th through  12th
grade levels, and has been in existence since 1975.  Claremont is accredited  by
the Western Association of  Schools and Colleges, and  is also certified by  the
University of  California  system.   Since  taking occupancy  of  the  Building,
Claremont has spent an  estimated $200,000 on improvements  and upgrades to  the
interior of the building.

The Building was previously occupied by  OPTO-22, the primary lease, which  took
occupancy in 1979, and subleased the Building to Claremont High School in August
1992.  OPTO-22's lease on the Building ends at the same time that Claremont High
School's sublease  ends  with  OPTO-22.   The  primary  lease  on  the  property
currently calls  for  rent of  $19,709.41  per  month.   Claremont  High  School
currently pays a sublease rent $3,690.59 per month higher than OPTO-22's rent.

At this  time, the  Company is  negotiating  with Claremont  High School  in  an
attempt to retain  the school  as a tenant.   The  Company expects  to at  least
retain the school  as a tenant  on a month-to-month  basis through August  1997.
Failure to re-negotiate  an extension of  the existing lease  could require  the
Company to expend $100,000 to $200,000  in capital refurbishing costs (in  order
to attract a qualified tenant) and result in  a vacancy at the property for  two
to four months.

The lease is "triple-net" with the Tenant responsible for all operating expenses
including utilities, maintenance, taxes and insurance.

The OPTO-22 Building was acquired from Glendale Federal Bank (the "Seller") - an
unrelated third party.   In determining the propriety  of the investment in  the
Building, the  Advisor  reviewed 1991  and  1992 sales  information  on  several
similar properties in the vicinity.  Based on the sales price of $2,350,000, the
OPTO-22's acquisition  price  was approximately  $38.90  per square  foot.    In
contrast, the comparative sales in  the area ranged from  $42 to $65 per  square
foot, with the average  of all the building  equal to $45 per  square foot.   In
addition, the Advisor took note that the monthly rental being paid by OPTO-22 is
less than the current market rents in the area, especially in comparison to  the
sub-lease rent being paid to OPTO-22 by Claremont High School for this property.
Based on (1) comparison of  the price per square  foot of the OPTO-22  Building,
and the comparative  recent sales price  per square foot  of several  properties
comparable in quality to the OPTO-22 Building, and (2) the comparison of current
rental revenue on the building to current  market rental rates for the area,  it
is the opinion of the Advisor that the acquisition price of the OPTO-22 Building
is reasonable.

                                        6
<PAGE>

The OPTO-22 Building is managed by  West Coast Realty Management, Inc.  ("WCRM")
(the "Property Manager"), an affiliate of the Company.  WCRM charges the Company
3% of the gross rents collected as  a management fee for managing the  Property,
as allowed by the Property Management Agreement.  In the opinion of the Advisor,
the OPTO-22 Building is adequately insured.  Although the tenant is obligated by
their leases to pay property taxes,  the property tax in 1996 was  approximately
$24,000.

Total  consideration  for  the  OPTO-22  Building   paid  by  the  Company   was
approximately $2,500,000.  The total  acquisition cost included $2,350,000  paid
to the  Seller, approximately  $7,000 in  legal,  appraisal, audit  and  closing
costs, and  a  $143,000  Acquisition Fee  paid  to  Descolin,  Incorporated,  an
affiliate of the Advisor.  Financing of $1,750,000 was obtained from the Seller,
with the remainder  of the acquisition  costs, approximately  $779,000, paid  in
cash.  The  $1,750,000 financing was  in the form  of a ten  year note, that  is
being amortized over a thirty year period.  The note has an adjustable  interest
rate that began at  approximately 7.0%, and will  adjust to three hundred  basis
points (3.00%) above the Federal Reserve  Board Eleventh District Cost of  Funds
Rate every year.  Payments on the note are currently $12,723 per month.

The purchase  price was  arrived at  through arms-length  negotiations with  the
Seller.  The source of funds  for the purchase were  proceeds from the sales  of
the Company's Shares, and Seller-provided financing (the Seller is a large  bank
and lender).

The computation of depreciation  is based on the  cost of the OPTO-22  Property,
including Acquisition Fees and Acquisition Expenses.  The allocation of the cost
of the OPTO-22 Property to the various asset is estimated, based on  allocations
in the appraisal  report.   Depreciation will be  computed on  a straight  -line
basis over the component useful life of the assets.

NORTH PALM STREET

       On  March  4, 1994,  the  Company  acquired  an  industrial/research  and
development building located in Brea, California.

    The Building was  acquired for total  consideration of  $2,248,343.   Seller
financing of $1,000,000 was provided in order  to allow for the purchase.   This
financing was in the form  of two purchase money  notes for $500,000 each,  with
one due an payable March 4, 1995 and the other due March 4, 1996.  Payments were
interest only  at the  rate of  8% and  totaled $6,667  per month.   The  seller
financing was refinanced in February 1995 with a $1,000,000 promissory note at a
variable rate amortized over 25 years,  secured by a Deed  of Trust on the  Brea
property, interest rate is 9.5% until  March 1, 2000 (and each succeeding  March
1st) when the interest  rate adjusts to the  Moody's corporate bond index  daily
rate plus 0.125%, monthly  principal and interest  payments vary depending  upon
interest rates and are currently $8,737, and due March 1, 2020.

    Constructed in 1989,  the building   contains approximately 42,000  rentable
square feet, and is located within a master-planned business park.  The building
is currently leased to two tenants.  M.L.E., which occupies 27,831 square  feet,
is a contract  office furniture supplier.   M.L.E., which  has been in  business
since 1982, commenced their lease on February 1, 1991, and the lease  terminates
on May 31, 1999.  The lease calls for  payments of $11,143 per month.   Surgical
Technologies ("Surgical"), which occupies 14,100 square feet, provides  contract
sterilization, assembly, and  packaging of  medical devices.   Surgical's  lease
runs from December 15, 1993 to December  14, 1999, with lease payments equal  to
$6,819 per month through December 14,1998 and $7,077 per month through  December
14, 1999.  Both  the M.L.E. and Surgical leases are triple net.

                                     7

<PAGE>

   The building is located in Brea, California in an established industrial area
of North Orange County.  Many of the economic factors pertaining to the  OPTO-22
and Blockbuster Video Buildings pertain to this property as well.

   The building and improvements are depreciated over 39 years using a straight-
line method for both financial and income tax reporting purposes.  The financial
and tax bases for the property are the same. In the opinion of the Advisor,  the
property is adequately insured.  The property is managed by WCRM.

RIVERSIDE MARKETPLACE

  On November 29, 1994, the Company  purchased a six-plex cinema located in  the
Riverside Marketplace in  Riverside, California.   Construction of the  property
was completed June 15, 1994, and it is located in a newly developed retail  area
containing various restaurants and retailers.   The tenant is Sanborn  Theaters,
Inc. which does business under the name of SoCal Cinemas.  The tenant's lease is
for twenty years, and is scheduled to expire on  December 31, 2014.   The  lease
is a triple-net lease.  The lease also has some provisions for the sharing of  a
certain percentage of gross sales, including concessions.

   The property was acquired for $3,655,500.  Long term financing of  $1,200,000
in the form of a first trust deed and note was used to facilitate the  purchase.
The note is amortized  over a fifteen year  period at the rate  of 9.25% and  is
fully due and payable November 8, 2004.

  The six screen theater has seating for 1,586 and contains 30,493 square  feet.
There is parking available for 483 cars in an adjacent parking lot.

   The building and improvements are depreciated over 39 years using a straight-
line method for both financial and income tax reporting purposes.  The financial
and tax bases for the property are the same. In the opinion of the Advisor,  the
property is adequately insured.  The property is managed by WCRM.


SAFEGUARD BUSINESS SYSTEMS

     On May  22,  1995, the  Company  acquired the  Safeguard  Business  Systems
Property, a two story office building  located in Tustin, California.  The  sole
tenant of the property is Safeguard Business Systems, which occupies 100% of the
property.   The tenant  is involved  in  the providing  office supply  and  data
services to small businesses.

     The property has  40,000 rentable square  feet, and was  built to suit  for
Safeguard Business Systems  in 1986.   The tenant's lease  commenced October  1,
1994 and is scheduled  to terminate eleven years  from that date (September  30,
2005).  The lease has provisions for  annual rental increases with the rent  for
the initial year (10/1/94 - 9/30/95) set  at $43,333 per month, and $44,633  for
the second  year (10/1/95-9/30/96),  and $45,972  for the  third year  (10/1/96-
9/30/97).  The average monthly rent over the life of the lease is $50,914.

      Total consideration  paid  for the  property  was $4,862,094.    Long-term
financing of $2,300,000, in the form of a first  trust deed and note,  was  used
to facilitate the purchase.  The note is amortized over a fifteen year period at
a fixed rate of 9.625%, and is fully due and payable February 1, 2005.

                                      8

<PAGE>

   The building and improvements are depreciated over 39 years using a straight-
line method for both financial and income tax reporting purposes.  The financial
and tax bases for the property are the same. In the opinion of the Advisor,  the
property is adequately insured.  The property is managed by WCRM.

TECHNOLOGY DRIVE PROPERTY

        On  October  31,  1995,  the  Company  acquired  a  single  story  light
industrial/research & development located in Fremont, California.  The  property
is a one  story building  that contains  58,727 divisible  rentable square  feet
located on 3.47  acres.  The  primary tenant of  the property is  CMS Welding  &
Machining.  The tenant is a manufacturer  of welded vacuum chambers used in  the
processing of semi-conductors.  Its lease runs from November 2, 1993 to February
28, 2005, with various levels of rent scheduled to be paid.  From April 1,  1995
to August 31, 1996, the  scheduled rent is $30,976  per month, and $32,596  from
September 1, 1996 to February 1, 1999.  The average rent scheduled on the lease,
beginning with the first  day of the Company's  ownership (October 31, 1995)  is
$32,191 per month.   The lease in a "triple net" lease, requiring CMS Welding  &
Machining to pay insurance, taxes, maintenance and all other operating costs.

    The  tenant has  subleased 20,000  square  feet of  its space  to  Macrotron
Systems.  This sublease  runs from March 1,  1995 to March  1, 1998.   Macrotron
pays its  rent directly  to the  Company,  and CMS  Welding &  Machining's  rent
obligation is reduced accordingly.

   The total consideration paid for  the property was $3,747,611.  Financing  of
$2,192,897 was assumed from the seller in connection with the transaction.  This
debt is fully amortized  over a twenty  year period at  a fixed rate  promissory
note secured by a Deed  of Trust on the  Fremont property, interest rate  equals
the 20-year Treasury rate at loan  close plus 1.65% or 8.24%, monthly  principal
and interest payments are currently $18,898.   The original balance of the  loan
was $2,200,000 and  was funded  July 1, 1995.   Loan  fully due  and payable  on
August 1, 2015.

 The building and improvements are  depreciated over 39 years using a  straight-
line method for both financial and income tax reporting purposes.  The financial
and tax bases for the property are the same. In the opinion of the Advisor,  the
property is adequately insured.  The property is managed by WCRM.

JAVA CITY PROPERTY

On August 2,  1996, the  Company acquired  the investment  described below  (the
"Java City Property" or  the "Property").   The funds to  acquire the Java  City
Property were available as the result of the sale of the Company's Shares in the
previous offering, and the  receipt of proceeds from  bank financing assumed  in
connection with the acquisition.

The Java City Property consists of  two single story light industrial  buildings
located in  the  Northgate  Industrial Park  in  Sacramento,  California.    The
addresses of  the two  properties are  717 and  721  West Del  Paso Road.    The
building sites are in the northern part of Sacramento, with access to Interstate
80, Interstate 5, and other major freeways.

                                       9
<PAGE>


The buildings are located on a site of approximately 62,173 square feet.   Total
building square footage for both buildings is approximately 20,000 square  feet.
The subject lot is zoned M-1 industrial by the City of Sacramento.  This  zoning
allows for a variety  of uses, including the  existing use.   721 West Del  Paso
Road consists of 8,964 total square feet and 717 West Del Paso Road consists  of
11,035 total square feet.  Per the provisions of the current lease, 721 West Del
Paso consists of 4,347  rental square feet of  warehouse space and 4,293  rental
square feet of office space.  Per the provisions of the current lease, 717  West
Del Paso consists of 5,398 rentable square feet of warehouse space and 5,802  of
rental square feet of office space.  The properties were originally  constructed
in 1988.  The Company believes that there are no deferred maintenance items that
need to be corrected or addressed.  The buildings are constructed using concrete
footings (foundation and  slab), wood frame  wall designs,  and flat/tar  gravel
roofs.  The building has  sprinklers for fire prevention  and safety.  There  is
adequate parking in  the general business  park area for  cars that utilize  the
Property.

The primary tenant of the  Property is Cucina Holdings,  Inc.  The company  owns
and operates forty-one  Java City Bakery  Cafes and five  La Petite  Boulangerie
cafes.  The Company is popularly  known as "Java City".   Java City outlets  are
located in various areas of California  and Arizona, and are generally in  high-
visibility, high-traffic locations.  These outlets sell high quality,  specialty
coffees in a pleasant  retail environment setting.   In addition, these  outlets
sell a  selection of  sandwiches and  baked goods  that complement  the sale  of
coffee.  Java City also operates a wholesale operation that serves approximately
seven hundred customer  accounts located primarily  in Northern California.  The
Company's wholesale customers include  supermarkets, gourmet shops,  convenience
stores, restaurants, universities, airports, and  offices, some of which  resell
the coffee in whole bean form for  home consumption, while others brew and  sell
coffee beverages.  Approximately 86% of the Company's sales are from its  retail
cafe operations  and  14%  from  its  wholesale  operations.    The  tenant  was
effectively formed in 1993 when Cucina Holdings, a corporation formed by current
management and InterWest  Partners (a Menlo  Park Based  venture capital  firm),
purchased the assets of la Petite  Boulangerie from a private investor group  in
June 1993, and then purchased Java City in September 1993.  Cucina Holdings  and
Java City are privately held, and not publicly traded companies.

Java City leases 100% of the rentable  square feet in the two buildings  located
on the Property.  Each building has a separate lease, and both leases are triple
net leases.  Both leases expire on August 1,  2003 and there are no options  for
extension or purchase of  the Property.  Java  City operates its  administrative
offices, coffee bean processing, warehousing facilities, and a Java City  retail
outlet out of these two buildings.

The computation of depreciation for the Java City Property is based on the  cost
of the  Property, including  Acquisition Fees  and  Acquisition Expenses.    The
allocation of the cost of the Property to various asset categories is estimated,
based on allocations  in the appraisal  report.  Depreciation  is computed on  a
straight-line basis over 39  years for both financial  and income tax  reporting
purposes.

                                        10

<PAGE>

TYCOM PROPERTY

   On  January 17, 1997, the  Company acquired the  Tycom Property--- two story
building, with  underground  parking, located  at  17862 Fitch  Street,  Irvine,
California.  Total building square footage  is approximately 63,225 square  feet
(both floors), while the property has 164 striped parking spaces.  The  building
is  approximately  twelve  years  old.     There  are  substantial  new   tenant
improvements that were substantially complete at  time of acquisition that  will
enhance the building for office usage.  These improvements include improved  air
conditioning, Americans  with  Disabilities  Act  compliance,  a  complete  fire
sprinkler system, new electrical, new restrooms, and new carpet.

    The  sole tenant  of the  Property  is Tycom  Corporation ("Tycom"  or  "the
Tenant").  Tycom, a privately held company, is a manufacturer of drill bits  and
assorted items used by the semi-conductor and dental industries, and has been in
business for  approximately ten  years.   The  Tenant initially  purchased  this
building and  has  invested  approximately  $1.4  million  in  improvements  and
renovations.   Tycom sold  the building  to Brutten/Reynolds/Shidler  Investment
Corp. (the property's seller) on December 19,  1996 for an unknown amount.   The
Tenant began occupying  the building  on December 19,  1996, at  which time  the
provisions of the  lease became  effective.   The term  of the  lease is  eleven
years, and  is  intended to  be  a "triple-net"  lease  with the  Tenant  paying
virtually all  taxes, insurance,  utilities, and  other operating  costs of  the
Property.  The base rent is $37,302.75 per month.

     Total  consideration  paid  by the  Company  for  the  Tycom  Property  was
$4,902,500.  Financing was  utilized in connection with  the acquisition of  the
Tycom Property.  A short-term 9.25% promissory note for $2,300,000 was  provided
by First  National Bank  of San  Diego.   The note  provides for  interest  only
payments of $17,729 and is due in full February  1, 1998.  The Company plans  on
replacing this financing prior to the due date with a first trust deed  mortgage
from a bank.

   The computation of depreciation for the  Tycom Property is based on the  cost
of the property, including Acquisition Fees and Expenses.  The allocation of the
cost of  the  Property  to  various asset  categories  is  estimated,  based  on
allocations in the appraisal  report.  Depreciation is  computed on a  straight-
line basis over the component useful life of the assets.  The financial and  tax
bases for  the property  are the  same.   In  the opinion  of the  Advisor,  the
Property is adequately insured.   The Property is  managed by West Coast  Realty
Management.


SUMMARY

   The acquisition costs and dates of acquisition were as follows:

                                        11

<PAGE>

             Description                   Acquisition      Acquisition
                                             Cost and          Date
                                           Improvements

     Blockbuster Video Building              $1,676,210       02/26/91
     Fresno Village Shopping Center           1,414,893       05/14/93
     OPTO-22 Building                         2,500,001       09/15/93
     Brea Property                            2,248,343       03/04/94
     Riverside Marketplace Theaters           3,655,500       11/29/94
     Safeguard Building                       4,862,094       05/22/95
     Technology Drive                         3,747,611       10/31/95

                                             20,104,652
   Subsequent to year end (12/31/96):
     Tycom                                    4,902,500       01/17/97

 Total Acquisition Cost & Improvements       25,007,152


As mentioned in the narrative above, all properties were 100% occupied by  their
respective tenants (or in the case  of Technology Drive and OPTO-22, tenant  and
sub-tenant).     There  are   no  significant   deferred  maintenance   projects
attributable to any of the properties.


ITEM 3.   LEGAL PROCEEDINGS

     None.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.

                                       12

<PAGE>

                                    PART II

ITEM  5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY
          AND RELATED STOCKHOLDER MATTERS

    The  Company has  had three  offerings of  shares.   The first  offering  of
1,500,000 shares commenced on April 20,  1990 and was completed on November  18,
1991 with 268,791  shares sold  for $2,672,586 in  gross proceeds.   The  second
offering of 2,000,000  shares commenced on May 14, 1992 and was completed on May
14, 1994 with 368,524 shares sold for  $3,681,147 in gross proceeds.  The  third
offering of 2,000,000 shares commenced on June 3, 1994 and was completed in  May
1996 with 813,841  shares sold  for $8,132,169 in  gross proceeds.   The  fourth
offering of 1,500,000 shares commenced in May 1996, and 221,258 shares had  been
sold resulting in $2,211,429 in gross proceeds as of December 31, 1996.

   At December 31, 1996, there were 1,550,607 Shares of Common Stock outstanding
and 820 stockholders  of record.   There is no  present trading  market for  the
Shares and none is expected to develop.  For a period of approximately two years
following the completion of this offering, the Company intends to use a crossing
arrangement  pursuant  to  which  Associated  Securities  Corp.  (the  "Crossing
Agency") will  match buy-and-sell orders  for Shares  at negotiated  markups or
commissions.

   The Company has established a dividend reinvestment plan (the "Plan") for its
Shareholders.   Shares acquired  under  the Plan  during  the offering  will  be
purchased at the $10.00  offering price.  After  the completion of the  offering
period, the Plan will acquire existing  Shares through the Crossing Agency at  a
maximum price  of  $10.00  per Share,  if  a  sufficient number  of  Shares  are
available at such price.

     Dividends totaling $1,128,597,  $804,595, and $522,614,  in 1996, 1995  and
1994 were declared for Shareholders of record, who owned Shares on the first day
of each month, and paid in the quarter following the record date.  The 1996  and
1995 dividend distributions are summarized below:

                                       13

<PAGE>

Dividends declared during 1996 were as follows:

                      OUTSTANDING           AMOUNT             TOTAL
RECORD DATE              SHARES            PER UNIT           DIVIDEND

January 1, 1996        1,325,404            0.0600             $79,524
February 1, 1996       1,371,794            0.0600              82,308
March  1, 1996         1,401,664            0.0600              84,100
April 1, 1996          1,413,736            0.0666              94,155
May 1, 1996            1,445,236            0.0666              96,253
June 1, 1996           1,448,836            0.0666              96,492
July 1, 1996           1,448,836            0.0666              96,492
August 1, 1996         1,448,836            0.0666              96,492
September 1, 1996      1,498,246            0.0666              99,784
October 1, 1996        1,498,246            0.0666              99,784
November 1, 1996       1,500,651            0.0666              99,943
December 1, 1996       1,550,607            0.0666             103,270

TOTAL                                                       $1,128,597


Dividends declared during 1995 were as follows:

                      OUTSTANDING           AMOUNT             TOTAL
RECORD DATE              SHARES            PER UNIT           DIVIDEND

January 1, 1995          911,986           $0.060             $54,719
February 1, 1995         945,136            0.060              56,708
March 1, 1995          1,009,084            0.060              60,545
April 1, 1995          1,069,217            0.060              64,153
May 1, 1995            1,109,374            0.060              66,562
June 1, 1995           1,109,874            0.060              66,592
July 1, 1995           1,116,891            0.060              67,013
August 1, 1995         1,151,911            0.060              69,115
September 1, 1995      1,204,517            0.060              72,271
October 1, 1995        1,225,398            0.060              73,524
November 1, 1995       1,261,859            0.060              75,712
December 1, 1995       1,294,683            0.060              77,681

TOTAL                                                        $804,595


Dividends  are  based  on  income   from  operations  before  depreciation   and
amortization, with appropriate allowances made for the reinvestment of dividends
into additional  shares and  the repayment  of note  principal.   Dividends  are
determined by management based on cash  flows and the liquidity position of  the
Company.  It is the intention of management to declare monthly dividends subject
to the maintenance of reasonable reserves.

                                       14

ITEM 6.   SELECTED FINANCIAL DATA

     The selected  financial  data  should  be  read  in  conjunction  with  the
financial statements and related notes and  Item 7-- "Management Discussion  and
Analysis of Financial Condition and  Results of Operations" appearing  elsewhere
in this  report.   This statement  is not  covered by  the accountants'  opinion
included elsewhere in this report.

<TABLE>
<CAPTION>
                          1996         1995        1994        1993        1992
<S>                          <C>        <C>         <C>         <C>         <C>
Operations for the
years ended December 31:
Revenues                 $2,474,627  $1,813,126   $ 903,167   $ 362,566  $ 158,306
Net Income                  705,636     649,605     247,068     158,490     40,287
Net Income/Share*               .49         .58         .35         .38       .15
Dividends/Share*               .779         .72         .74         .53       .27
Financial position at
December 31:
 Total Assets            23,571,838  21,392,898  13,228,888   7,483,308  2,786,923
 Long-term Debt          10,078,793   9,539,180   5,161,355   2,405,526      ---
 Stockholders' Equity    12,904,891  11,234,837   7,756,140   4,925,260  2,707,474

</TABLE>
[FN]
*Net income per Share and Dividends per Share were based on the weighted average
number of Shares outstanding.


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
     FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS - 1996 VS. 1995

Operations for  the year  ended December  31, 1996  represented a  full year  of
rental operations for all properties expect  Java City which was owned for  only
five months.

The net income for the year ended  December 31, 1996 ($705,636) was higher  than
the year ended  December 31, 1995  ($649,605) due to  the raising of  additional
funds and investment of  such funds in  additional income producing  properties.
The Company did  not have  any adverse  events that  significantly impacted  net
income during the  year ended December  31, 1996, and  all properties that  have
been purchased  by  the  Company  have  operated  at  levels  equal  to  current
expectations.  All tenants were current  on their lease obligations.

Rental revenue increased $685,354  (41%) due to a  full year's ownership of  the
Technology Drive and Safeguard Building properties (as compared to partial  year
ownership in  1995), and  partial year  ownership for  the Java  City  property.
Interest income decreased $23,853 (25%) due to a new escrow release procedure on
the current offering where  new investor funds come  into the Company  quarterly
rather than  daily,  thus lowering  the  amount  of excess  cash  available  for
investment.

                                       15


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

Operating expenses increased $133,179  (78%) as a  reflection of the  additional
properties owned during the year.  Interest expense increased $260,947 (42%)  as
a reflection  of  the  additional debt  incurred  in  connection  with  property
acquisition and refinancing activities.  Despite the amount of debt, the Company
remains below the  maximum 50%  debt maximum  allowed by  the Company's  by-laws
(debt was 48%  of property  cost (as  defined in  the by-laws)  as December  31,
1996).  General and administrative costs increased $106,587 (91%) due to  higher
accounting, taxes, and general insurance expense costs related to the  Company's
increased size.  General and administrative  costs increased as a percentage  of
revenue going from 6.5% in 1996 to 9.0% in 1996.   Much of this increase is  due
to $74,361 that the Advisor was  paid in 1996 due  to the revised provisions  of
the Advisor agreement.  No advisor fees  were earned in 1995.  Depreciation  and
amortization expense increased $104,757 (41%) as the result of the ownership  of
additional properties during 1995 as compared to 1996.

The average number of shares outstanding during 1996 was 1,447,366 vs. 1,117,494
in 1995. Partly  because of the  greater number of  shares outstanding, the  net
income per share decreased from $.58 in 1995 to $.49 in 1996.  If this figure is
analyzed using flow of funds  - that is net  income plus depreciation expense  -
then the amount in 1996 was $.75 per share vs. $.80 in 1995.

The decrease in the per share  figures is largely due  to the imposition of  the
Advisory Fee in 1996 ($74,361) which  effectively decreased net income and  flow
of funds per share by $.05 per share.  However, it should be noted that although
the full Advisory  fee is  recognized on the  Statement of  Income, the  Advisor
agreed to waive collection of $44,061 (59%) of these fees in 1996, and may elect
to waive  collection of  all or  a  portion of  the fees  in  the future.    The
Advisor's wavier of these fees  has been treated as  an infusion of equity  into
the Company, rather than as a reduction in expenses.

In addition to the added  Advisory Fee Expense, the  Company had a fairly  large
drop in interest income.   This was  due to relatively  lower interest rates  in
place for most  of 1996 as  compared to  1995, and a  slower level  of new  fund
raising from the sale  of shares in 1996  as compared to  1995.  $3,633,687  was
raised in net proceeds in 1995, while only $2,124,626 was raised in 1996.  Thus,
the Company had less funds on hand awaiting investment in 1996 than in 1995.

During the year ended December 31, 1996, the Company declared dividends totaling
$1,128,597, compared  to  dividends of  $804,595  declared for  the  year  ended
December 31, 1995.  Cash basis income for  the year ended December 31, 1996  was
$1,066,537.  This was derived by adding depreciation and amortization expense to
net income.  Thus, cash distributions this year were greater ($40,898) than cash
basis net income.  In contrast, distributions in 1995 were less ($101,154)  than
cash basis income.  In either event, the Company continues to qualify as a REIT.

In summary then, the operating performance  of the Company continued to  improve
as additional  funds were  raised, additional  property  was acquired,  and  all
properties were operating profitably.

                                       16

<PAGE>


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


RESULTS OF OPERATIONS - 1995 VS. 1994

   Operations for the  year ended December 31, 1995  represented a full year  of
rental operations for  the Blockbuster Video  Building, Fresno Village  Shopping
Center, OPTO-22  Building,  Riverside  Marketplace,  and  Brea  properties,  and
partial years  of operations  for the  Technology Drive  and Safeguard  Building
properties.

   The  net income for the  year ended December 31,  1995 ($649,605) was  higher
than the  year  ended  December  31,  1994 ($247,068)  due  to  the  raising  of
additional funds and  investment of such  funds in  additional income  producing
properties.  The  Company did  not have  any adverse  events that  significantly
impacted net income during the year ended December 31, 1995, and all  properties
that have  been  purchased by  the  Company have  operated  at levels  equal  to
expectations.  All tenants were current on their lease obligations.

Rental revenue increased $889,562 (111%) due  to a full year's ownership of  the
Riverside Marketplace and Brea properties (as compared to partial year ownership
in 1994), and  partial year  ownership for  the Technology  Drive and  Safeguard
Business Systems properties.  Interest income  increased $20,397 (20%) due to  a
greater amount of  cash held  during the  year awaiting  investment and  greater
amounts of profits held each quarter  awaiting distribution to investors on  the
normal distribution timeline.

Operating expenses increased  $73,042 (76%) as  a reflection  of the  additional
properties owned during the year.  Interest expense increased $317,907 (105%) as
a reflection  of  the  additional debt  incurred  in  connection  with  property
acquisition and refinancing activities. Despite the amount of debt, the  Company
remains below the  maximum 50%  debt maximum  allowed by  the Company's  by-laws
(debt was 49%  of property  cost (as  defined in  the by-laws)  at December  31,
1995).   General and administrative costs increased $46,777 (66%) due to  higher
accounting, taxes, and general insurance expense costs related to the  Company's
larger size.   General and  administrative costs  decreased as  a percentage  of
revenue from  7.8% in  1994 to  6.5%  in 1995.   Depreciation  and  amortization
expense increased $137,906 (117%) as the  result of the ownership of  additional
properties during 1995 as  compared to 1994.   1994's results  were hurt by  the
recognition of $68,210 in loss on  government securities investments during  the
year.  No  loss was  recorded in  1995.   Net income  of $649,605  for 1995  was
$402,537 (163%) higher than 1994.

The average number of shares outstanding  during 1995 was 1,117,494 vs.  706,684
in 1994.  Despite the greater number  of shares outstanding, the net income  per
share increased from $.35 in 1994 to $.58 in 1995.   If this figure is  analyzed
using flow of funds - that is net income plus  depreciation expense and loss on
government securities investments --  then the amount in 1995 was $.80 per share
vs. $.61  in 1994.   The  improvement in  results is  attributable to  a  larger
percentage of  the  Company's assets  being  invested in  income-producing  real
estate in  1995 than  in 1994,  as opposed  to investments  in relatively  lower
yielding money  market investments.    Although the  balance  of cash  and  cash
equivalents was higher at the end of 1995  ($1,450,022) than at the end of  1994
($495,829), the  average level  of cash  on  hand during  1995  was lower.    In
addition, the rate of increase in total revenues (111%) was much higher than the
rate of increase  in general  and administrative  expenses (66%).   General  and
administrative expenses represented  a smaller percentage  of total revenues  in
1995 than in 1994 (6.5% in 1995 vs. 7.8% in 1994).

                                       17

<PAGE>


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)


    During the  year ended  December 31,  1995, the  Company declared  dividends
totaling $804,095, compared to dividends of $522,614 declared for the year ended
December 31, 1994.  Cash basis income for  the year ended December 31, 1995  was
$905,749.  This was derived by  adding depreciation and amortization expense  to
net income.  Thus, cash distributions  this year were less ($101,154) than  cash
basis net income.   In contrast, distributions in  1994 were  greater  ($89,098)
than cash basis income.  In either event, the Company continues to qualify as  a
REIT.

In summary then, the operating performance  of the Company continued to  improve
as additional  funds were  raised, additional  property  was acquired,  and  all
properties were operated profitably.

LIQUIDITY AND CAPITAL RESOURCES

    During the  year ended  December 31,  1996, the  Company declared  dividends
totaling $1,128,597.  Dividends are determined by management based on cash flows
and the liquidity position of the Company.  It is the intention of management to
declare dividends, subject to the maintenance of reasonable reserves.

   During  the year ended December  31, 1996, the  Company raised an  additional
$2,048,554 in net proceeds as the  result of the sale  of shares from its  third
and fourth  public offering.   In  1995, the  Company raised  $3,633,687 in  net
proceeds as the result of the sale of shares from its third offering.  In  1994,
the Company raised a net $3,088,804 from  a combination of its second and  third
public offerings. The Company has used the net proceeds from these offerings  to
purchase additional income-producing properties and to  add to the cash  reserve
balances of the Company  as is prudent  given the amount  of property now  under
ownership.

Management uses cash  as its primary  measure of the  Company's liquidity.   The
amount of cash that represents adequate  liquidity for a real estate  investment
company, is dependent on several factors.  Among them are:

     1.   Relative risk of the Company's operations;
     2.   Condition of the Company's properties;
     3.   Stage in the Company's operating cycle (e.g., money-raising,
          acquisition, operating or disposition phase); and
     4.   Shareholders dividends.

     The Company is adequately liquid and management believes it has the ability
to generate  sufficient cash  to meet  both short-term and  long-term liquidity
need, based upon the above four points.

                                      18

<PAGE>


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

   The first point refers to the risk of the Company's investments.  At December
31, 1996, the Company's excess funds were invested in a short-term money m arket
fund.  The purchases  of rental properties have  been made either entirely  with
cash or the use of moderate leverage.  During the year ended December 31,  1996,
notes payable pertaining to  property acquisitions by  the Company increased  by
$755,000, while cash  used in principal  repayments of  notes totaled  $215,387.
Although the  notes are  set up  on an  amortization schedule  allowing for  the
repayment of principal over time, most of the  principal on the notes is due  in
balloon payments that come due in the years  2003 through 2005.  The Company  is
aware that prior to the time that these large payments come due, refinancing  of
the loans or the sale of the property(ies) will be necessary in order to protect
the interests  of  the Company's  shareholders.  (Please refer  to  "Properties"
information in Item 2 for more  detail as to leverage).    Furthermore, most  of
the properties'  tenants  are  nationally known  retailers  or  well-established
businesses under long-term leases.

     As to  the second  point, the Company's  properties are  in good  condition
without significant  deferred maintenance  obligations  and are  leased  through
"triple-net" leases, which  reduces the Company's  risk pertaining to  excessive
maintenance and operating costs.

   As to the third point, the Company  was liquid at year-end since the Company
is still operating in  the "money-raising" stage.    Virtually all funds raised
were invested in a short-term money market fund.  At  year-end, the Company has
allocated approximately $400,000  towards a "reserve"  fund (3%  of gross  funds
raised, as disclosed in the Company's latest prospectus), $303,000 of cash  held
pending distribution  to investors,  $114,000 of  cash to  be paid  for  current
mortgage and accounts payable commitments, $125,000 in tenant security deposits,
and  the  balance--$1,066,537--expected  to  be  invested  in  future   property
acquisitions.  The  Company's operations generated  $1,087,698 in net  operating
cash flow in 1996 (net income plus depreciation expense).  Thus, the Company  is
generating significant  amounts  of cash  flow  currently and  could  choose  to
withhold payment of all  or a portion  of dividends, if  necessary, in order  to
rebuild cash balances.

      Fourth, the  amount  of dividends  to shareholders  was  made at  a  level
consistent with the small  amount of net income  available after application  of
expenses.  The Advisor  is careful not  to make distributions  in excess of  the
income available.   The Advisor expects  to increase the  level of dividends  as
additional funds are raised, and overhead expenses are spread over a larger base
of investors' funds.

        Inflation and  changing prices  have not had  a material  effect on  the
Company's operations.  Operations in the near future may be materially  affected
as and when the Company acquires additional property.

      The  Company currently has  no external sources  of liquidity (other  than
funds that potentially could be received from the sale of additional Shares).

      The Company currently has no material capital commitments.

     The Tax Reform Acts of 1986 and 1987 and the Revenue Reconciliation Acts of
1990 and 1993 did not have a material impact on the Company's operations.

                                      19

<PAGE>


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

CASH FLOWS 1996 VS. 1995

Cash resources increased $567,172 during 1996  compared to $954,193 increase  in
1995.   This  was the  result  of normal  amounts  of investing,  financing  and
operating activities that  were expected to  take place during  the year.   Cash
provided  by  operating  activities  increased  by  $819,783  with  the  largest
contributor being  $1,066,537 in  cash  basis income.    In contrast,  1995  saw
$2,373,143 in cash  being provided by  operating activities due  to $905,749  in
cash basis  income  and  $1,240,190 being  received  from  the  sale  government
securities (such securities were purchased in  1993 primarily).  $1,128,597  was
declared as dividends during 1996; this  is noted as a  large use of cash  under
financing activities.  This  continues the Company's  trend of paying  virtually
all the cash basis income out to  investors in the form of quarterly  dividends.
Over the  last three  years, cash  basis income  has totaled  $2,337,592,  while
dividend declarations  have  totaled  $2,311,572 (98%  of  cash  basis  income).
Financing activities provided an additional $1,575,889 in cash resources to  the
Company via the  sale of  additional shares in  the Company  ($2,124,626 in  net
proceeds), and $724,465 in financing obtained in connection with the acquisition
of refinancing of properties, less dividends  paid of $1,128,597.  In  contrast,
1995's cash provided by financing activities was $7,228,140 due to $3,633,687 in
proceeds from the sale of additional shares, and a $4,469,647 gross increase  in
notes payable, net  of dividends  paid of $745,172.   The  sole use  of cash  in
investing activities in 1996 was $1,828,500 expended for the acquisition of  one
property during the year.   $755,000 of the  funds necessary for obtaining  this
property was obtained from debt financing.  In contrast, $8,647,090 were used to
purchase additional rental properties in 1995 with $4,469,647 in debt  financing
used to facilitate the purchases.

CASH FLOWS 1995 VS. 1994

Cash resources increased $954,193  during 1995 compared to  a $284,966 in  1994.
This was the  result of normal  amounts of investing,  financing, and  operating
activities that were expected to take place  during the year.  Cash provided  by
operating activities increased  $2,373,143 with the  largest contributors  being
$905,749 in  cash basis  income and  $1,240,190  in proceeds  from the  sale  of
government securities.  In contrast, 1994 saw $791,190 in cash being provided by
operating activities due  to only  $433,516 in  cash basis  income and  $372,104
being received from  the sale of   government securities  (such securities  were
purchased in  1993  primarily).   $804,595  (88.8%)  of the  cash  basis  income
($905,749) was declared as dividends during the  year; this is noted as a  large
use of cash under financing activities.   This continues the Company's trend  of
paying virtually all  the cash  basis income  out to  investors in  the form  of
quarterly dividends.  Financing activities provided an additional $7,228,140  in
cash resources to the Company via the  sale of additional shares in the  Company
($3,633,687 in net proceeds), and $4,469,647 in financing obtained in connection
with the acquisition or refinancing of  properties, less cash dividends paid  of
$745,172.   In  contrast,  1994's cash  provided  by  financing  activities  was
$5,360,233 due to $3,088,804 in proceeds from the sale of additional shares, and
a $2,800,000 gross increase in notes payable, net of dividends paid of $437,803.
The sole use of cash in investing activities in 1995 was $8,647,090 expended for
the acquisition of additional properties during  the year.  As mentioned  above,
$4,469,647 of  the  funds  necessary for  obtaining  these  new  properties  was
obtained from debt financing.  In  contrast, only $5,866,457 in funds were  used
to purchase additional rental  properties in 1994.   (Note: cash dividends  paid
were less than  dividends declared  due to  some dividends  being reinvested  in
additional shares of the Company).

                                      20

<PAGE>


ITEM 7.   MANAGEMENT DISCUSSION AND ANALYSIS OF
          FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)

NEW ACCOUNTING PRONOUNCEMENTS

     Statement  of  Financial Accounting  Standards  No.  125,  "Accounting  for
Transfers and Servicing of Financial Assets and Extinguishments of  Liabilities"
(SFAS No. 125)  issued by  the Financial  Accounting Standards  Board (FASB)  is
effective for transfers and servicing of financial assets and extinguishments of
liabilities  occurring  after  December   31,  1996,  and   is  to  be   applied
prospectively.  Earlier or  retroactive application is not  permitted.  The  new
standard provides accounting and reporting standards for transfers and servicing
of financial assets and  extinguishments of liabilities.   The Company does  not
expect adoption to have a material  effect on its financial position or  results
of operations.

                                      21


ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA


                                                                PAGE

     Report of Independent Certified Public Accountants          23

     Balance Sheets - December 31, 1996 and 1995                 24

     Statements of Income for the years ended
          December 31, 1996, 1995 and 1994                       25

     Statements of Stockholders' Equity for the years ended
          December 31, 1996, 1995 and 1994                       26

     Statements of Cash Flows for the years ended
          December 31, 1996, 1995 and 1994                       27-28

     Summary of Accounting Policies                              29-30

     Notes to Financial Statements                               31-38

     Financial Statement Schedules

     Schedule III - Real Estate and Accumulated Depreciation     45-46

     Schedule IV - Mortgage Loans on Real Estate                 47

                                       22

<PAGE>


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

West Coast Realty Investors, Inc.
Los Angeles, California

We have  audited the  accompanying consolidated  balance  sheets of  West  Coast
Realty Investors,  Inc.., as  of December  31,  1996 and  1995 and  the  related
statements of income, stockholders' equity, and cash flows for each of the three
years ended  December  31, 1996,  1995  and 1994.    We have  also  audited  the
schedules listed  in the  accompanying index.   These  financial statements  and
schedules  are   the  responsibility   of  the   Company's  management.     Our
responsibility is  to  express an  opinion  on these  financial  statements  and
schedules 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 and schedules  are
free of material misstatement.   An audit includes  examining, on a test  basis,
evidence supporting the amounts and disclosures in the financial statements  and
schedules.  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  West Coast Realty  Investors,
Inc., at December 31, 1996 and 1995, and the results of its operations and  its
cash flows for  each of  the years ended  December 31,  1996, 1995  and 1994  in
conformity with generally accepted accounting principles.

Also in our opinion, the schedules present fairly, in all material respects, the
information set forth therein.


                                                BDO SEIDMAN, LLP
Los Angeles, California
February 28, 1997

                                    23

<PAGE>
<TABLE>

                       WEST COAST REALTY INVESTORS, INC.
                                 BALANCE SHEETS

<CAPTION>

December 31,                                          1996              1995
<S>                                                   <C>               <C>
ASSETS
Rental real estate, less accumulated
   depreciation (Notes 2 and 3)                $21,118,203         $19,650,165
Cash and cash equivalents                        2,017,194           1,450,022
Accounts receivable                                247,948             132,148
Loan origination fees, net of accumulated
   amortization of $21,161 and $19,087             102,622             119,969
Other assets                                        85,871              40,594

Total assets                                   $23,571,838         $21,392,898


LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
   Accounts payable                                $13,922             $25,419
   Due to related party (Note 4)                    46,285             167,314
   Dividends payable (Note 7)                      302,760             226,649
   Security deposits and prepaid rent              124,734             109,068
   Other liabilities                               100,453              90,431
   Notes payable (Note 5)                       10,078,793           9,539,180

Total liabilities                               10,666,947          10,158,061

COMMITMENTS

STOCKHOLDERS' EQUITY
Common stock, $.01 par-shares authorized,
5,000,000 shares issued, 1,550,607 and
1,322,404 outstanding in 1996 and 1995              15,506              13,224
Additional paid-in capital                      13,861,763          11,771,030
Retained earnings                                (972,378)           (549,417)

Total stockholders' equity                      12,904,891          11,234,837

Total liabilities and stockholders'            $23,571,838         $21,392,898
equity

</TABLE>
[FN]
     See accompanying summary of accounting policies and notes to financial
                                  statements.

                                        24

<PAGE>
<TABLE>

                       WEST COAST REALTY INVESTORS, INC.
                              STATEMENTS OF INCOME

<CAPTION>

Years ended December 31,                 1996           1995           1994
<S>                                        <C>           <C>            <C>
REVENUES
   Rental (Notes 2 and 3)             $2,377,530     $1,692,176       $802,614
   Interest                               97,097        120,950        100,553

                                       2,474,627      1,813,126        903,167
COSTS AND EXPENSES
   Operating                             302,858        169,679         96,637
   Interest expense                      880,978        620,031        302,124
   General and administrative            224,254        117,667         70,890
   Depreciation and amortization         360,901        256,144        118,238
   Loss on government securities             ---            ---         68,210

                                       1,768,991      1,163,521        656,099

NET INCOME                              $705,636       $649,605       $247,068

NET INCOME PER SHARE (Note 7)               $.49           $.58           $.35

</TABLE>
[FN]

     See accompanying summary of accounting policies and notes to financial
                                  statements.

                                           25

<PAGE>
<TABLE>
                        WEST COAST REALTY INVESTORS, INC.
                       STATEMENTS OF STOCKHOLDERS' EQUITY
                  YEARS ENDED DECEMBER 31, 1996, 1995 AND 1995

<CAPTION>
                                                        Additional   Distributions
                               Common        Stock        Paid-in    in Excess of
                               Shares       Amount        Capital     Earnings
<S>                                <C>          <C>         <C>            <C>
BALANCE, January 1, 1994         562,885      $5,629     $5,038,512    (118,881)

Issuance of stock for cash,
net of costs and sales
commissions of $399,416          349,101       3,491      3,085,313         ---

Net income for the year             ---          ---            ---     247,068

Equity contribution by
Affiliates through  expense
reimbursements (Note 4b)            ---          ---         17,622         ---

Dividends declared  ($.762
per share-Note 7)                   ---          ---            ---    (522,614)

BALANCE, December 31, 1994       911,986       9,120      8,141,447    (394,427)

Issuance of stock for cash,
net of costs and sales
commissions of $423,603          410,418       4,104      3,629,583         ---

Net income for the year             ---          ---           ---      649,605

Dividends declared  ($.72
per share-Note 7)                   ---          ---           ---     (804,595)

BALANCE, December 31, 1995     1,322,404      13,224     11,771,030    (549,417)

Issuance of stock for cash,
net of costs and sales
commissions of $246,599          228,203       2,282      2,046,672         ---

Net income for the year             ---          ---           ---      705,636

Equity contribution by
Affiliates through expense
reimbursements (Note 4b)            ---          ---        44,061          ---

Dividends declared  ($.779
per share-Note 7)                   ---          ---           ---   (1,128,597)

BALANCE, December 31, 1996     1,550,607     $15,506    $13,861,763   $(972,378)

</TABLE>
[FN]
     See accompanying summary of accounting policies and notes to financial
                                  statements.

                                      26

<PAGE>
<TABLE>
                        WEST COAST REALTY INVESTORS, INC.
                            STATEMENTS OF CASH FLOW

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

<CAPTION>

Years ended December 31,                   1996          1995           1994

CASH FLOWS FROM OPERATING ACTIVITIES
<S>                                         <C>           <C>            <C>
Net income                               $705,636      $649,605       $247,068
Adjustments to reconcile  net income
to net  cash  provided  by operating
activities:
  Depreciation and amortization           360,901       256,144        118,238
  Interest expense  on amortization ofloan
       origination fees                    21,161        11,454          6,335
Increase (decrease) from changes in:
  Government securities                       ---     1,240,190        440,314
  Accounts receivable                   (115,800)      (62,784)       (19,001)
  Other assets                           (45,277)        30,469       (49,185)
  Accounts payable                       (11,497)        10,731         14,688
  Due to related party                  (121,029)       130,378       (16,412)
  Security deposits and prepaid rent       15,666        71,823         12,245
  Other liabilities                        10,022        35,133         36,900

Net cash provided by operating            819,783     2,373,143        791,190
activities

CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to rental real estate     (1,828,500)   (8,647,090)    (5,866,457)

Net cash (used in) investing          (1,828,500)   (8,647,090)    (5,866,457)
activities

</TABLE>
                                        27
<PAGE>
<TABLE>

                       WEST COAST REALTY INVESTORS, INC.
                        STATEMENTS OF CASH FLOW (CONT.)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

<CAPTION>

Years ended December 31,                       1996        1995        1994

CASH FLOWS FROM FINANCING ACTIVITIES
<S>                                             <C>         <C>          <C>
Proceeds from issuance of common
     stock, net                              2,048,954   3,633,687   3,088,804
Equity contribution by Affiliates through
     expense reimbursements                     44,061         ---      17,622
Dividends declared and paid                (1,052,925)   (745,172)   (437,803)
Increase in notes payable                      755,000   4,469,647   2,800,000
Payments on notes payable                    (215,387)    (91,822)    (44,171)
Increase in loan origination fees              (3,814)    (38,200)    (64,219)

Net cash provided by financing activities    1,575,889   7,228,140   5,360,233

NET INCREASE IN CASH AND CASH EQUIVALENTS      567,172     954,193     284,966

CASH AND  CASH EQUIVALENTS, beginning  of    1,450,022     495,829     210,863
year

CASH AND CASH EQUIVALENTS,  end of year     $2,017,194  $1,450,022    $495,829

</TABLE>
[FN]
     See accompanying summary of accounting policies and notes to financial
                                  statements.
                                       28
<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         SUMMARY OF ACCOUNTING POLICIES

BUSINESS       West Coast Realty Investors, Inc. (the "Company"), is a
               corporation formed on October 26, 1989 under the laws of the
               State of Delaware.  The Company exits as a Real Estate Investment
               Trust ("REIT") under Sections 856 to 860 of the Internal Revenue
               Service Code.  The Company has complied with all requirements
               imposed on REIT's for the 1996, 1995 and 1994 tax years; however
               qualification as a REIT for future years is dependent upon future
               operations of the Company.  The Company was organized to acquire
               interests in income-producing residential, industrial, retail or
               commercial properties located primarily in California and the
               west coast of the United States.  The Company intends to acquire
               property for cash on a moderately leveraged basis with aggregate
               mortgage indebtedness not to exceed fifty percent of the purchase
               price of all properties on a combined basis, or eighty percent
               individually and intends to own and operate such properties for
               investment over an anticipated holding period of five to ten
               years.

RENTAL REAL    Assets are  stated  at  lower  of  cost net  realizable  value.
ESTATE AND     Depreciation is  computed using  the straight-line  method over
DEPRECIATION   their estimated useful lives of 31.5 to  39 years for financial
               and income tax reporting purposes.

               In the  event that  facts and  circumstances indicate  that the
               cost  of   an  asset   may  be   impaired,  an   evaluation  of
               recoverability  would  be  performed.    If  an  evaluation  is
               required,  the   estimated  future   undiscounted  cash   flows
               associated with  the asset  would be  compared to  the carrying
               amount  to  determine  if  a  write-down  to  market  value  is
               required.

RENTAL         Rental revenue is  recognized on a  straight-line basis  to the
INCOME         extent that rental revenue is deemed  collectible.  Where there
               is uncertainty of  collecting higher scheduled  rental amounts,
               due to the tendency  of tenants to renegotiate  their leases at
               lower amounts, rental income  is recognized as the  amounts are
               collected.

INVESTMENTS    The difference  between historical  cost and  market  value are
               reported as  unrealized gains  or losses  in the  statements of
               income.

LOAN           Loan origination fees  are capitalized  and amortized  over the
ORIGINATION    life of the loan.
FEES

CASH AND       The Company  considers cash  in the  bank, liquid  money market
CASH           funds, and  all  highly liquid  certificates  of deposit,  with
EQUIVALENTS    original maturities of  three months  of less,  to be  cash and
               cash equivalents.


                                       29

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         SUMMARY OF ACCOUNTING POLICIES

USE OF         The preparation  of  financial  statements in  conformity  with
ESTIMATES      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.

RECLASSIF-     For comparative purposes, certain prior year  amounts have been
CATION         reclassified to conform to the current year presentation.

NEW ACCOUNTING Statement  of   Financial   Accounting   Standards   No.   125,
PRONOUNCE-     "Accounting for Transfers and Servicing of Financial Assets and
MENTS          Extinguishments of Liabilities"  (SFAS No.  125) issued  by the
               Financial Accounting  Standards Board  (FASB) is  effective for
               transfers and servicing of financial assets and extinguishments
               of liabilities occurring after December 31, 1996,  and is to be
               applied prospectively.   Earlier or retroactive  application is
               not permitted.    The  new  standard  provides  accounting  and
               reporting standards  for transfers  and servicing  of financial
               assets and extinguishments  of liabilities.   The  Company does
               not expect adoption to have a material  effect on its financial
               position or results of operations.

                                         30

<PAGE>
                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 1 - GENERAL

On October 30, 1989, West Coast Realty Advisors, Inc. (the "Advisor"), purchased
1,000 shares of the Company's common stock for $10,000.  On August 30, 1990, the
Company reached its minimum initial offering funding level of $1,000,000.  As of
December 31, 1996 the Company has raised $15,479,714 in capital.

Sales commissions and wholesaling  fees, representing 7%  of the gross  proceeds
from the  sale  of common  shares,  were  paid to  Associated  Securities  Corp.
("ASC"), a  member  of the  National  Association of  Securities  Dealers,  Inc.
("NASD") and an affiliate of the Advisor.

Dividends are  declared  and  accrued  based  approximately  upon  the  previous
quarter's income from operations before depreciation and amortization.

NOTE 2 - RENTAL PROPERTIES

The Company owns the following income-producing properties
                                                                ORIGINAL
LOCATION (PROPERTY NAME)      DATE PURCHASED                 ACQUISITION
                                                                    COST

Huntington Beach, California
(Blockbuster)                February 26, 1991               $ 1,676,210
Fresno, California             May 14, 1993                    1,414,893
Huntington Beach, California
(OPTO-22)                   September 15, 1993                 2,500,001
Brea, California               March 4, 1994                   2,248,343
Riverside, California         November 29, 1994                3,655,500
Tustin, California
(Safeguard)                     May 22, 1995                   4,862,094
Fremont, California
(Technology Drive)           October 31, 1995                  3,747,611
Sacramento, California
(Java City)                   August 2, 1996                   1,828,500

                                         31

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 2 - RENTAL PROPERTIES (CONTINUED)

The major categories of property are:

DECEMBER 31,                             1996                    1995

Land                                $  7,401,126            $  6,586,920
Buildings and improvements            14,532,025              13,517,732

                                      21,933,151              20,104,652
Less accumulated depreciation            814,948                 454,487

Net rental properties              $  21,118,203           $  19,650,165


A significant portion of  the Company's rental revenue  was earned from  tenants
whose individual  rents  represented more  than  10% of  total  rental  revenue.
Specifically:

     Five tenants accounted for 23%, 19%, 18% , 12% and 10%,  respectively, in
     1996;
     Four tenants accounted for 24%, 20%, 15% and 10%,  respectively, in 1995;
     Four tenants accounted for 29%, 18%, 17% and 14%,  respectively, in 1994;

The following unaudited pro  forma information are  presented to illustrate  the
effect of the three  properties acquired in during  1996 and 1995, as  discussed
above, and the property acquired in  1997,  as discussed in  Note 10, as if  the
acquisitions occurred on January 1st of each year presented.

<TABLE>

<CAPTION>

PRO FORMAS FOR THE YEARS ENDED              1996                    1995
      DECEMBER 31,
<S>                                         <C>                   <C>
Revenues:
         Rental Income              $  2,948,961            $  2,851,554
         Interest                          7,097                     950

                                       2,956,058               2,852,504
Costs and Expenses:
 Operating                               320,171                 214,359
 Interest                              1,130,255               1,032,764
 General & Administrative                224,254                 117,667
 Depreciation & Amortization             551,399                 553,696

                                       2,226,079               1,918,486

Net Income                              $729,979                $934,018

Net Income per Share                       $0.45                   $0.54

</TABLE>
                                           32

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS


NOTE 3- FUTURE MINIMUM RENTAL INCOME

As of December 31, 1996, future minimum rental income under the existing  leases
that have remaining noncancelable terms in excess of one year are as follows:

                                        DECEMBER 31,1996

      1997 .................................$2,123,959
      1998 ..................................2,037,591
      1999 ..................................1,976,664
      2000 ..................................1,864,724
      2001 ..................................1,771,212
      Thereafter .......................... 15,255,711

      Total                                $25,029,861

Future minimum rental income does not include lease renewals or new leases  that
may result after a noncancelable-lease expires.

NOTE 4 - RELATED PARTY TRANSACTIONS

The Advisor has an agreement with  the Company to provide advice on  investments
and to administer  the day-to-day operations  of the Company.   At December  31,
1996, the  Advisor owned  22,556 shares  of the  Company.   Property  management
services for  the  Company's  properties  are  provided  by  West  Coast  Realty
Management, Inc. ("WCRM"), an affiliate of the Advisor.

Certain officers and directors of the Company are also officers and directors of
the Advisor and its affiliates.

The following related party transactions are included in the statement of income

     (a)  In accordance with the advisory agreement, syndication fees earned  by
     the Advisor totaled $82,864, $150,429 and $173,874 in 1996, 1995 and 1994.

     (b)  Overhead expenses reimbursed to  the Advisor totaled $12,000,  $12,000
     and $2,000 in 1996, 1995 and 1994.  In 1994, the Advisor waived $10,000  of
     these costs which are included in additional paid-in capital.

     (c)  Sales commissions paid in accordance with the selling agreement to ASC
     totaled $163,735, $301,706 and $172,098 for 1996, 1995 and 1994.

     (d)   Acquisition fees  related  to the  purchase  of real  estate  totaled
     $78,177, $444,795 and $320,006 in 1996, 1995 and 1994 (Note 2).  These fees
     are split, in accordance with the  advisory agreement, between the  Advisor
     and an affiliate.

     (e) Property management fees  earned by WCRM  totaled $84,749, $46,947  and
     $24,077 in 1996, 1995 and  1994.  In 1994,  WCRM waived $7,622 in  property
     management fees.

     (f) Advisory fees earned  by WCRA  totaled $74,361  in 1996.   WCRA  waived
     collection of $44,061 of these fees which are included in additional  paid-
     in capital.

                                      33

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 4 - RELATED PARTY TRANSACTIONS (CONTINUED)

     (f)  The Corporation had related party accounts payable as follows:

                                                 1996                1995
DECEMBER 31,
    Associated Financial Group          $         ---              $ 40,143
    Associated Securities Corp.                   396                   ---
    West Coast Realty Management               24,839                15,369
    West Coast Realty Advisors                 21,050               111,802

                                              $46,285              $167,314


NOTE 5 - NOTES PAYABLE

Notes payable are made up of the following:

DECEMBER 31,                                               1996        1995

8.25% promissory note secured by a Deed of Trust
on the Fresno Property, monthly principal and interest
payments are $5,244 due August 1, 2003 ................  $ 628,471   $ 639,182

Variable rate promissory note secured by a Deed
of Trust on the OPTO-22 property, interest rate
adjustments are monthly and are based on the 11th
District cost of funds rate plus 3% (7.835% at
December 31, 1996), and may never go below 6.5%
or above 11.0%, monthly principal and interest
payments are $12,723, due October 1, 2003 ..............1,708,362    1,721,993

8.25% promissory note secured by a Deed of Trust on
the Blockbuster property, interest rate adjusts
to the 5-year Treasury rate plus 350 basis points
on February 1, 1999, monthly principal and interest
payments are $4,934, due February 1, 2004 ..............  569,132      579,923

9.25% promissory note secured by a Deed of Trust
on the Riverside property, monthly principal and
interest payments are $9,988, due November 8, 2004 ..   1,177,055    1,185,778

Variable rate promissory note secured by a Deed of Trust
on the Brea property, interest rate is 9.5% until March 1,
2000 (and each succeeding March 1st) when interest rate
adjusts to the Moody's corporate bond index daily rate
plus 0.125%, monthly principal and interest payments
vary depending upon interest rates and are currently
$8,737, due March 1, 2020 .........................       981,338      992,379

                                       34

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 5 - NOTES PAYABLE (CONT.)


DECEMBER 31,                                             1996            1995

9.625% promissory note secured by a Deed of Trust
on the Safeguard property, monthly principal and
interest payments are $24,191, due February 1,
2005 ...........................................       $2,155,575   $2,234,231

8.24% promissory note secured by a Deed of Trust
on the Fremont property, interest rate equaled the 20-year
Treasury rate plus 1.65% at loan closing, monthly principal
and interest payments are currently $18,898, due
August 1, 2015 ...............................          2,140,311    2,185,694

10% promissory note secured by a Deed of Trust on the
Java City property, monthly principal and interest payments
are $3,413, due November 1, 2001..............            336,272         ---

8% promissory note secured by a Deed of Trust on the
Java City property, monthly principal and interest payments
are $3,126, due June 1, 2018....................          382,277         ---

                                                      $10,078,793   $9,539,180

The above carrying amounts with the exception of the note on the Fresno property
are reasonable  estimates of  fair  values of  notes  payable based  on  current
lending rates  in  the  industry  for mortgage  loans  with  similar  terms  and
maturities.   The  fair value  of  the  Fresno note  is  approximately  $580,000
calculated by discounting the expected future  cash outflows on the note to  the
present based  on  a current  lending  rate of  10%,  which is  the  approximate
industry lending rate on properties of this type in this location.

The aggregate annual future maturities at December 31, 1996 are as follows:

      YEAR ENDING                        DECEMBER 31, 1996

      1997 ..................................$210,320
      1998 ...........................        228,391
      1999 ...........................        248,287
      2000 ...........................        269,435
      2001 ................................   582,090
      Thereafter .....................      8,540,268

      Total                               $10,078,793


NOTE 6 - DIVIDEND REINVESTMENT PLAN

The Company has established  a Dividend Reinvestment  Plan (the "Plan")  whereby
cash dividends will,  upon election  of the  shareholders, be  used to  purchase
additional shares of the Company.   The shareholders' participation in the  Plan
may be terminated at any time.

                                   35

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 7 - NET INCOME AND DIVIDENDS PER SHARE

Net Income  Per  Share   was  computed  using  the weighted  average  number  of
outstanding shares of 1,447,366,  1,117,494 and 706,684 for 1996, 1995 and 1994.

Dividends declared during 1996 were as follows:

                      OUTSTANDING           AMOUNT             TOTAL
RECORD DATE              SHARES            PER UNIT           DIVIDEND

January 1, 1996        1,325,404            0.0600             $79,524
February 1, 1996       1,371,794            0.0600              82,308
March  1, 1996         1,401,664            0.0600              84,100
April 1, 1996          1,413,736            0.0666              94,155
May 1, 1996            1,445,236            0.0666              96,253
June 1, 1996           1,448,836            0.0666              96,492
July 1, 1996           1,448,836            0.0666              96,492
August 1, 1996         1,448,836            0.0666              96,492
September 1, 1996      1,498,246            0.0666              99,784
October 1, 1996        1,498,246            0.0666              99,784
November 1, 1996       1,500,651            0.0666              99,943
December 1, 1996       1,550,607            0.0666             103,270

TOTAL                                                       $1,128,597

Dividends declared during 1995 were as follows:

                      OUTSTANDING           AMOUNT             TOTAL
RECORD DATE              SHARES            PER UNIT           DIVIDEND

January 1, 1995          911,986           $0.060             $54,719
February 1, 1995         945,136            0.060              56,708
March 1, 1995          1,009,084            0.060              60,545
April 1, 1995          1,069,217            0.060              64,153
May 1, 1995            1,109,374            0.060              66,562
June 1, 1995           1,109,874            0.060              66,592
July 1, 1995           1,116,891            0.060              67,013
August 1, 1995         1,151,911            0.060              69,115
September 1, 1995      1,204,517            0.060              72,271
October 1, 1995        1,225,398            0.060              73,524
November 1, 1995       1,261,859            0.060              75,712
December 1, 1995       1,294,683            0.060              77,681

TOTAL                                                        $804,595

                                     36

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS

NOTE 7 - NET INCOME AND DIVIDENDS PER SHARE (CONTINUED)

Dividends declared during 1994 were as follows:

                      OUTSTANDING           AMOUNT             TOTAL
RECORD DATE              SHARES            PER UNIT           DIVIDEND

January 1, 1994           562,888          $0.058             $32,648
February 1, 1994          568,404           0.060              34,104
March 1, 1994             590,966           0.062              36,640
April 1, 1994             610,195           0.063              38,442
May 1, 1994               620,421           0.064              39,707
June 1, 1994              637,315           0.065              41,426
July 1, 1994              637,315           0.065              41,426
August 1, 1994            688,203           0.065              44,733
September 1, 1994         747,876           0.065              48,612
October 1, 1994           811,034           0.065              52,717
November 1, 1994          844,800           0.065              54,913
December 1, 1994          880,700           0.065              57,246

TOTAL                                                        $522,614

Dividends are paid in the fiscal quarter following the record date.

The Company has followed the practice of making distributions to shareholders in
amounts approximately equal to its cash basis net income.  Since cash flows  are
sheltered from tax  by depreciation and  amortization expense, distributions  to
shareholders are in excess  of net income.   Accordingly, certain  distributions
result in a nontaxable  return of capital.   Distributions per beneficial  share
are reportable by shareholders on their  individual income tax returns as  shown
below:

YEARS ENDED DECEMBER 31,           1996         1995         1994

Taxable ordinary income          $0.487       $0.549       $0.469
Nontaxable return of capital      0.292        0.171        0.270

                                 $0.779       $0.720       $0.739


NOTE 8 - TAXES ON INCOME

For the taxable years 1996 and 1995, the Company elected to be treated as a REIT
on the filings  of the 1996  and 1995 tax  returns and will  elect the same  for
1997.

                                       37

<PAGE>

                       WEST COAST REALTY INVESTORS, INC.
                         NOTES TO FINANCIAL STATEMENTS


NOTE 9 - SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

The Company  had  a  noncash financing  activity  related  to  unpaid  dividends
declared of $302,996, $226,649 and $164,876 for 1996, 1995 and 1994.

Cash paid for interest during  the year ended December  31, 1996, 1995 and  1994
was $857,042, $569,746 and $277,288.

NOTE 10 - SUBSEQUENT EVENTS

(a) From January 2 to January 14, 1997,  a total of $1,179,423 in proceeds  from
the sale of shares in the Company's current offering was released from an escrow
account, and 117,987 shares were issued to investors.

(b)  On January 17, 1997, the Company acquired an industrial building located in
Irvine, California for $4,902,500.  The acquisition was accomplished with use of
$2,300,000 in debt financing, and the remainder with proceeds from the Company's
current offering.

(c)  On January 15, 1997, the Company paid dividends totaling $302,997  ($0.0666
per share per monthly record date), payable to shareholders of record on October
1, November 1, and December 1, 1996, respectively (Note 7).

                                        38

<PAGE>


ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
          ACCOUNTING AND FINANCIAL DISCLOSURE

          None.

                                       39

<PAGE>

                                  PART  III


ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

   The Company is  managed by West Coast  Realty Advisors, Inc., ("Advisor"),  a
California corporation.  The Shareholders are entitled to decide certain matters
by a majority vote  of Shares at a  Shareholders' meeting at  which a quorum  is
present, or by a written consent of a majority of the Shares without a  meeting.
The Company's  directors may  also make  certain decisions  without  Shareholder
approval.

   Resumes of the Company's and Advisor's principal officers and directors,  and
a description of the Advisor are set forth in the following paragraphs.

WEST COAST REALTY ADVISORS, INC.

   West Coast Realty Advisors, Inc. (WCRA) is a California corporation formed on
May 10, 1983 for the purpose of structuring  real estate programs and to act  as
general partner  or  Advisor  for  such  programs.   WCRA  is  a  subsidiary  of
Associated Financial Group, Inc.

   The officers and directors of the Company and the Advisor are as follows:


        NAME                    COMPANY                    ADVISOR

      Philip N.             Chairman of the            Chairman of the
    Gainsborough             Board/Director             Board/Director

 W. Thomas Maudlin,        President/Director         President/Director
         Jr.

  Neal E. Nakagiri           Executive Vice             Executive Vice
                          President/Secretary        President/Secretary

  Michael G. Clark      Vice President/Treasurer          Treasurer

    George Young                Director                     N/A

    Steve Bridges               Director                     N/A

  James W. Coulter              Director                     N/A



   The biographies for the above individuals are noted below:

                                       40

<PAGE>


   PHILIP N. GAINSBOROUGH  (Born 1938) is Chairman of  the Board of  Directors,
President and Director of Associated Financial Group, Inc.  He has been, and  he
currently serves as, Chairman of the Board of Directors, President and  Director
of Associated Securities Corp. since its  inception in 1982.   Mr.  Gainsborough
is also currently the Chairman  of the Board of  Directors and Director of  West
Coast Realty Advisors, Inc., and West Coast Realty Management, Inc.  He is  also
Chairman of the  Board of  Directors, a Director  and President   of  Associated
Planners Partnership Services, Inc., and Associated Planners Insurance Services,
Inc.  In addition, from January 1981 to the present, he has served as  President
of Gainsborough Financial Consultants, Inc.,  a financial planning firm  located
in  Los  Angeles,  California.    From  January  1981  to  December  1982,   Mr.
Gainsborough served  as  a  Registered Principal  of  Private  Ledger  Financial
Services, Inc.   From January 1977  to December 1980,  he was  employed by  E.F.
Hutton & Co. as a Registered Representative.  Mr. Gainsborough is a graduate  of
the University of Southern California.

   W. THOMAS MAUDLIN JR. (Born 1936) is a Director and President  of West Coast
Realty Advisors, Inc., and a Director of West Coast Realty Management, Inc.   He
has been  active  in  the  real  estate area  for  over  33  years,  serving  as
co-developer of high-rise office buildings and  shopping centers.   Mr. Maudlin
has structured transactions for syndicators in apartment housing, including sale
leasebacks, all-inclusive trust deeds, buying and restructuring transactions to
suit a particular buyer,  and as a buyer  acting as a principal.   From 1980  to
present, he has been  involved in the development  of real property in  numerous
parts of Southern California.   Mr. Maudlin is a  graduate of the University  of
Southern California.

     NEAL NAKAGIRI  (Born 1954 ) serves  as  Executive Vice  President,  General
Counsel, Chief Operating  Officer and Secretary  of Associated Financial  Group,
Inc.  He is Vice President for two subsidiaries, Associated Securities Corp. and
Associated Planners Investment Advisory, Inc.  He joined the "Associated"  group
of companies in March 1985.   He was Vice  President of Compliance with  Morgan,
Olmstead, Kennedy & Gardner from 1984 to 1985.  He was First Vice President  and
Director of Compliance with Jefferies and Co., Inc.  from 1981 to 1984.  He  was
Vice President and Director of Compliance at W & D Securities, Inc. from 1980 to
1983.   He was  an  Investigator with  the  National Association  of  Securities
Dealers, Inc. from 1976 to 1980.   He has a B.A.  degree in Economics from  UCLA
(1976) and a J.D. from Loyola Law School of Los Angeles (1991).  He is a  member
of the California Bar  and the Compliance and  Legal Division of the  Securities
Industry Association.

   MICHAEL G. CLARK (Born 1956) is Senior Vice President/Treasurer of Associated
Financial Group, Inc., Associated Planners Investment Advisory, Inc., Associated
Planners Insurance  Services, Inc.,  Associated Planners  Partnership  Services,
Inc., West Coast Realty Advisors, Inc.,  and Associated Securities Corp.   Prior
to joining Associated Financial  Group in 1986, Mr.  Clark served as  Controller
for Quest Resources, a Los Angeles-based syndicator and operator of alternative
energy projects from October 1984 to March 1986, and as Assistant Controller for
Valley Cable  T.V. from  March 1982  through September  1984.   In addition,  he
served as an auditor for Arthur  Young & Co. in Los  Angeles, from July 1978  to
March 1982.   Mr. Clark is  a graduate of  the University  of California,  Santa
Barbara and has a Masters of Science degree in Management from California  State
University at Northridge.

                                       41

   GEORGE YOUNG (Born 1937)  Since 1972 has been  president of his own  company,
now named  Internet  Link Corporation.    The firm  specializes  in  integrating
Internet and Intranet  communications into the  productive life of  enterprises.
They host  and  develop  sites on  the  World  Wide Web;  integrate  e-mail  and
interactive data  retrieval applications;  and  provide content  management  and
consulting services.   Internet  Link Corporation  is affiliated  with  Netscape
Communications,  Pacific  Bell  Internet   Services  and  InterNex   Information
Services.  Mr. Young is a graduate of the University of Southern California.

   STEVE BRIDGES (Born 1951) has served as Executive Vice  President of Pacific
Building Industries, a general building contractor from January 1995 to present.
From July 1986 to January 1995,  Mr. Bridges served as Executive Vice  President
of Pathfinder Mortgage, a mortgage brokerage firm, and was responsible for  loan
production and financing of  construction loans.  From  July 1984 to July  1986,
Mr. Bridges was the President of  The Muller Company, a real estate  development
company, and was  responsible for the  management of  that company,  developing,
financing, and joint  venture relationships, the  development of 800,000  square
feet of industrial and commercial real estate, and partnership management.   Mr.
Bridges is a graduate of the University of Southern California.

   JAMES  W. COULTER (Born 1938) has since 1988  been a principal in  Coulter &
Company, a firm which provides brokerage  services and invests in real  property
with an emphasis in retail, industrial and office properties.  From 1981 to 1988
Mr. Coulter was  a Vice  President of  the investment  division of  Bishop-Hawk,
Inc., a  firm which  specializes in  commercial  real estate.   He  started  the
investment division in Sacramento.  Prior  to 1981, Mr. Coulter was involved  in
real estate investments, property management and  development, and served as  an
officer of a real estate investment  trusts.  Mr. Coulter  is a graduate of  and
has a Masters of Business Administration degree from the University of  Southern
California.

Gainsborough, Maudlin, Clark, Coulter,  Young and Bridges  have served in  their
positions with the Company since inception.  Nakagiri was named Secretary of the
Company in  June 1996,  replacing Mr.  William  T. Haas,  who retired  from  the
Company.

ITEM 11.  EXECUTIVE COMPENSATION

   During 1996,  the Registrant paid  no direct or indirect compensation to  the
Company's officers.

   The Registrant has no annuity, pension or retirement plans, or existing  plan
or arrangement pursuant to which compensatory  payments are proposed to be  made
in the future to directors or officers.

   The Company's Independent  Directors are entitled to  receive up to $500  for
each meeting that they attend or participate  in via telephone.  During 1996,  a
total of $6,600 was paid.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
          AND MANAGEMENT

     As disclosed  in the  Prospectus,  the Advisor  made  a commitment  to  the
Company to purchase an amount of Shares, at the public offering price of $10 per
Share, which in  aggregate is equal  to the lesser  of 10% of  the adjusted  net
worth of the Company, upon completion of the initial offering, or $200,000.   As
of December 31,  1996, the Advisor  had purchased $225,561  worth of shares,  or
approximately 1.8% of the adjusted net worth.

                                     42
<PAGE>


ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

     The Registrant was  organized in October  1989 as  a Delaware  corporation.
Its Advisor is West Coast Realty Advisors, Inc.  Certain officers and  directors
of the Registrant are officers  and directors of the  Advisor as well (See  Item
10--  "Directors  and  Executive  Officers  of  the  Registrant").  The  Advisor
purchased 1,075 shares of common  stock for a net  amount of $10,000 in  October
1989 upon  formation of  the Company  and subsequently  purchased an  additional
21,481 shares of common stock for a net amount of $215,561.

     Other  transactions  involving  the   Registrant,  the  Advisor,  and   its
affiliates are summarized below:

     1.   As compensation for its services rendered in evaluation and  selection
of properties to the Company, the Advisor or Descolin Incorporated ("Descolin"),
an affiliate of the Advisor, are entitled  to an acquisition fee that shall  not
exceed 6% of  gross proceeds  allocated towards  the purchase  of any  property.
Descolin is wholly-owned  by W. Thomas  Maudlin, Jr.,  the Company's  president.
During the year  ended December 31,  1996, the Company  paid the Advisor  and/or
Descolin $78,177 related to the purchase of real estate.

     2.   The majority  of  the common  stock  was sold  by  representatives  of
Associated Securities Corp. ("ASC"),  an affiliate of the  Advisor.  During  the
year ended December  31, 1996, commissions  paid to ASC  for the  sale of  these
shares totaled $163,735 and  are included in additional  paid-in capital on  the
Company's balance sheet.

     3.   For property  management  services,  the Advisor  engaged  West  Coast
Realty Management, Inc. ("WCRM"), an affiliate of the Advisor.  During the  year
ended December 31,  1996, the Company  incurred $84,749  of property  management
fees.

                                      43

<PAGE>

                                   PART IV

ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES,
          AND REPORTS ON FORM 8-K

(A)  1.   FINANCIAL STATEMENTS

     The following financial statements of West Coast Realty Investors, Inc. are
included in PART II, ITEM 8:

                                                                      Page

      Report of Independent Certified Public Accountants ...............23
      Balance Sheets -- December 31, 1996 and 1995..................... 24
      Statements of Income for the years ended
            December 31, 1996, 1995 and 1994... ........................25
      Statements of Stockholders' Equity for the years ended
            December 31, 1996, 1995 and 1994............................26
      Statements of Cash Flows for the years ended
            December 31, 1996, 1995 and 1994....... .................27-28
      Summary of Accounting Policies ................................29-30
      Notes to Financial Statements.............. ...................31-38

      2. FINANCIAL STATEMENT SCHEDULES

      Schedule III --  Real Estate and Accumulated Depreciation .....45-46
      Schedule IV --   Mortgage Loans on Real Estate ...........        47

      All other  schedules  have  been  omitted  because  they  are  either  not
required, not applicable, or the information has been otherwise supplied.

(B)   REPORTS ON FORM 8-K

      None.

(C)   EXHIBITS

      None.

<PAGE>

<TABLE>

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 1996

INFORMATION REQUIRED BY RULE 12-28 IS AS FOLLOWS:

<CAPTION>

                                                Cost             Gross Amount at which                                  Life on
                       Initial Cost          Capitalized        Carried at Close of Period                              which

                               Building    Subsequent to       Building                                             Depreciation is
                                   &        Acquisition            &                                 Year               Computed
                              Improvements  Improvements      Improvements    Total   Accumulated Construction  Date     Building/
Description  Emcumbrance    Land                          Land                 Cost  Depreciation  Completed  Acquired Improvements
<S>                <C>      <C>    <C>           <C>       <C>      <C>         <C>      <C>          <C>         <C>       <C>
Retail
Building,
Huntington
Beach, CA      569,132  1,005,965  670,245        0     1,005,965  670,245   1,676,210   125,015       1991       2/91      31.5

Retail
Building,
Shopping
Center,
Fresno, CA     628,471    553,648  861,245       0        553,648  861,245   1,414,893     80,056       1993      5/93      39.0

Industrial
Building
Huntington
Beach,
CA           1,708,362  1,132,159 1,367,842      0      1,132,159 1,367,842  2,500,001     115,450      1976      9/93      39.0

Industrial
Building
Brea, CA       981,338    808,423 1,439,920     0         808,423 1,439,920  2,248,343     104,617      1989      3/94      39.0

Entertainment
Center
Riverside, CA 1,177,055   768,667 2,886,833     0         768,667 2,886,833  3,655,500     154,215      1994      11/94     39.0

Office
Building
Tustin, CA    2,155,575  1,089,796 3,772,298    0       1,089,796 3,772,298  4,862,094     153,145      1986      5/95      39.0

Light
Industrial
Bldg,         2,140,311  1,228,262 2,519,349    0       1,228,262 2,519,349  3,747,611       72,683     1993      10/95     39.0
Fremont, CA

Light
Industrial
Bldg,           336,272    489,182   609,397    0         489,182  609,397   1,098,579        5,868     1988      8/96      39.0
Sacramento,
CA

Light
Industrial
Bldg,           382,277    325,024   404,896    0         325,024  404,896     729,920        3,899     1988      8/96    39.0
Sacramento,
CA

TOTAL        10,078,793  7,401,126 14,532,025   0       7,401,126 14,532,0252  1,933,151    814,948

                                                      45
</TABLE>
<PAGE>

SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (CONTINUED)

DECEMBER 31, 1996

A reconciliation of the total cost for the years ending
December 31, 1994, 1995 and 1996 follows:

Balance at January 1, 1994.......    $ 5,591,104
1994 Additions...................      5,866,457
Balance at December 31, 1994 ....     11,457,561
1995 Additions ..................      8,647,091
Balance at December 31, 1995 ....     20,104,652
1996 Additions  .................      1,828,500
Balance at December 31, 1996.....    $21,933,152


A reconciliation of accumulated depreciation for the years ending
December 31, 1994, 1995 and 1996 follows:

Balance at January 1, 1994........   $    85,210
1994 Depreciation ................       115,372
Balance at December 31, 1994 .....       200,582
1995 Depreciation ................       253,905
Balance at December 31, 1995 .....       454,487
1996 Depreciation ................       360,461
Balance at December 31, 1996 .....    $  814,948


                                              46

<PAGE>

<TABLE>

SCHEDULE IV - MORTGAGE LOANS ON REAL ESTATE

DECEMBER 31, 1996

INFORMATION REQUIRED BY RULE 12-29 IS AS FOLLOWS:


                           Final   Periodic                            Delinquent
                Interest Maturity   Payment  Prior   Face   Carrying   Principal/
Description       Rate     Date      Terms   Liens  Amount   Amount    Interest

<S>                <C>       <C>      <C>     <C>     <C>       <C>       <C>
Retail Building                      Equal
                                    Monthly
Fresno, CA       8.25%   8/1/2003  Payments   None  $665,000  $628,471  None
                                      to
First Deed of                      Maturity
Trust                               Balloon
                                    Payment
                                      due
                                    8/2003

Industrial                         Variable
Building                            Monthly
Huntington      Variable 10/1/2003 Payments   None  $1,750,000 $1,708,362 None
Beach,                                to
California                         Maturity
First Deed of                       Balloon
Trust                               Payment
                                      due
                                    10/2003

Retail Building                    Variable
                                    Monthly
Huntington      Variable 2/1/2004  Payments   None   $600,000   $569,132 None
Beach,                                to
California                         Maturity
                                    ; 25 yr
First Deed of                      Amortiza
Trust                                tion;
                                    Balloon
                                    Payment
                                      due
                                    2/2004

Industrial                         Variable
Building                             Rate;
Brea, CA        Variable 3/1/2020    25 yr   None  $1,000,000  $981,338  None
First Deed of                      Amortiza
Trust                                tion;

Entertainment Center                Equal
                                    Monthly
Riverside, CA    9.25%   11/8/2004 Payments; None  $1,200,000 $1,177,055 None
First Deed of                      Amortized
Trust                               over 28
                                     yrs,3
                                    months;
                                    Balloon
                                    Payment
                                      due
                                    11/2004

Office Building                      Fixed
                                     Rate;
Tustin, CA       9.625%  2/2/2005   15 year  None  $2,300,000 $2,155,575 None
First Deed of                      Amortiza
Trust                                tion;
                                    Balloon
                                    Payment
                                      due
                                    2/2005

Light                                Fixed
Industrial Bldg.                    Monthly
Fremont, CA      8.240%  8/1/2015  Payments  None $2,200,000 $2,140,311  None
First Deed of                      20 years
Trust                              Amortization

Light                                Fixed
Industrial Bldg.                    Monthly
Sacramento, CA  10.000%  11/1/2001 Payments  None    $350,000  $336,272  None
First Deed of                      25 years
Trust                              Amortization

Light                                Fixed
Industrial Bldg.                    Monthly
Sacramento, CA   8.000%  6/1/2018  Payments  None     $405,000  $382,277 None
First Deed of                      25 years
Trust                            Amortization

                                                    10,470,000 10,078,793

</TABLE>

A reconciliation or mortgage loans payable for the years
ending December 31, 1994, 1995, and 1996 follows:

Balance at January 1,1994............          2,405,526
1994 Additions                      .          2,800,000
1994 Paydowns                       ..          (44,171)
Balance at December 31, 1994                   5,161,355
1995 Additions    .                .           4,469,647
1995 Paydowns ........................          (91,822)
Balance at December 31, 1995 .........         9,539,180
1996 Additions    .                .             755,000
1996 Paydowns ........................         (215,387)
Balance at December 31, 1996 .........       $10,078,793


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<PAGE>


                                   SIGNATURES

     Pursuant to the requirements of the 13 or 15(d) 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.


                       WEST COAST REALTY INVESTORS, INC.



                              W. THOMAS MAUDLIN JR.
                         (Director, President and Principal Executive Officer)



                              PHILIP N. GAINSBOROUGH
                              (Chairman of the Board of Directors)



                              MICHAEL G. CLARK
                         (Vice President/Treasurer, Controller, and Principal
                                   Financial Officer)



                              GEORGE YOUNG
                                   (Director)

  Date: March 17, 1997

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