UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 25049

                                   Form 10-KSB
(Mark One)
[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934


                 For the fiscal year ended December 31, 2004

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


             For the transition period from _________to _________

                         Commission file number 0-16684

                         MULTI-BENEFIT REALTY FUND '87-1
                 (Name of small business issuer in its charter)

         California                                              94-3026785
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

                          55 Beattie Place, PO Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                                (864)  239-1000
                 Issuer's telephone number, including area code

        Securities registered under Section 12(b) of the Exchange Act:

                                      None

        Securities registered under Section 12(g) of the Exchange Act:

                          Units of Limited Partnership
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 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___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the best of the  Partnership's  knowledge  in  definitive  proxy or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form [X]

State issuer's revenues for its most recent fiscal year.  $1,394,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests as of December 31, 2004. No market exists for the limited  partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.

                                     PART I

Item 1.     Description of Business

Multi-Benefit   Realty  Fund  '87-1  (the  "Partnership"  or  "Registrant")  was
organized on September 8, 1986, as a limited  partnership  under the  California
Revised Limited  Partnership Act. ConCap  Equities,  Inc. ("CEI") is the general
partner of the Partnership (see additional information below). CEI (the "General
Partner")  is a  subsidiary  of  Apartment  Investment  and  Management  Company
("AIMCO"), a publicly traded real estate investment trust.

Commencing December 10, 1986, the Registrant offered, pursuant to a Registration
Statement  filed with the  Securities  and Exchange  Commission,  $60,000,000 of
Units of  Depositary  Receipts  (collectively,  the "Units,"  and  individually,
"Unit").   Upon  the  closing  of  the  offering,   the   Partnership   received
subscriptions for 172,436 Units resulting in gross proceeds of $17,244,000.  The
Units were sold in two  different  classes,  ("A" Units and "B" Units) which are
entitled  to  different  rights  and  priorities  as to cash  distributions  and
Partnership allocations. The Units represent economic rights attributable to the
limited partnership  interests in the Partnership and entitle the holders ("Unit
holders") thereof to participate in certain allocations and distributions of the
Partnership.  The original  intent of the Partnership was that the "A" Units and
"B" Units be allocated  such that the "B" Units would not exceed 25% nor be less
than 20% of the total amount of the Units sold. Upon closing of the offering and
up through the current fiscal year, the "B" Units represented  approximately 44%
of the total amount of the Units sold. Several  alternative  procedures had been
considered  which  would  have  allowed  the  Partnership  to  conform  the unit
allocations  more  closely  to  the  original  intended  investment  objectives;
however,  no economically  feasible  alternatives  were determined to exist. The
corporate limited partner of the Partnership was Multi-Benefit  '87-1 Depositary
Corporation, an affiliate of the General Partner. The Partnership may repurchase
or retire any Units, at its absolute  discretion,  but is under no obligation to
do so.  Since its initial  offering,  1,000 Units have been  retired.  Since its
initial  offering,  the Partnership has not received,  nor are limited  partners
required to make, additional capital contributions.

Upon  the  Partnership's   formation  in  1986,  Consolidated  Capital  Equities
Corporation  ("CCEC"), a Colorado  corporation,  was the sole general partner of
the Partnership and the corporate limited partner, a wholly-owned  subsidiary of
CCEC, was the sole limited partner.  In 1988,  through a series of transactions,
Southmark Corporation  ("Southmark") acquired a controlling interest in CCEC. In
December  1988,  CCEC filed for  reorganization  under  Chapter 11 of the United
States  Bankruptcy  Code. In 1990, as part of CCEC's  reorganization  plan,  CEI
acquired  CCEC's general  partner  interest in the  Partnership  and in 15 other
affiliated public limited partnerships (the "Affiliated Partnerships"), acquired
the stock of the corporate  limited  partner,  and CEI replaced CCEC as managing
general  partner  in all  16  partnerships.  The  selection  of CEI as the  sole
managing  general  partner was approved by a majority of the Unit holders in the
Partnership and of the limited  partners in each of the Affiliated  Partnerships
pursuant to a solicitation of the Unit holders dated August 10, 1990. As part of
this  solicitation,   the  Unit  holders  also  approved  an  amendment  to  the
Partnership Agreement to limit changes of control of the Partnership.

All of CEI's outstanding  stock was owned by Insignia  Properties Trust ("IPT"),
which acquired the stock through two  transactions  in December 1994 and October
1995. Effective February 26, 1999, IPT was merged into AIMCO.

The  Partnership is engaged in the business of operating and holding real estate
properties for investment.  The Partnership  originally acquired three apartment
properties,  one of which was sold prior to the calendar  year 2002.  On October
28, 2003,  the  Partnership  sold another of its investment  properties,  Shadow
Brook  Apartments.  The Partnership  continues to own and operate one investment
property as of December 31, 2004.  See "Item 2.  Description  of Property".  The
Partnership  Agreement provides that the Partnership is to terminate on December
31, 2036, unless terminated prior to such date.

The Partnership  has no employees.  Management and  administrative  services are
provided by the General Partner and agents retained by the General  Partner.  An
affiliate of the General Partner provided such management services for the years
ended December 31, 2004 and 2003.

Risk Factors

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Partnership's  property.  The number and quality of competitive  properties,
including  those which may be managed by an affiliate of the General  Partner in
such  market  area,  could  have a  material  effect on the  rental  market  for
apartments at the  Partnership's  property and the rents that may be charged for
such apartments. While the General Partner and its affiliates own and/or control
a  significant  number of  apartment  units in the  United  States,  such  units
represent an  insignificant  percentage of total  apartment  units in the United
States and competition for the apartments is local. In addition, various limited
partnerships have been formed by the General Partner and/or affiliates to engage
in business which may be competitive with the Partnership.

Laws benefiting  disabled persons may result in the Partnership's  incurrence of
unanticipated  expenses.  Under the Americans with  Disabilities Act of 1990, or
ADA,  all places  intended to be used by the public are required to meet certain
Federal  requirements  related to access and use by disabled persons.  Likewise,
the Fair Housing Amendments Act of 1988, or FHAA, requires apartment  properties
first occupied after March 13, 1990 to be accessible to the  handicapped.  These
and other  Federal,  state  and  local  laws may  require  modifications  to the
Partnership's  property, or restrict renovations of the property.  Noncompliance
with these laws could result in the  imposition  of fines or an award of damages
to  private  litigants  and  also  could  result  in an  order  to  correct  any
non-complying  feature,  which could result in substantial capital expenditures.
Although  the  General  Partner  believes  that the  Partnership's  property  is
substantially in compliance with present requirements, the Partnership may incur
unanticipated expenses to comply with the ADA and the FHAA.


<PAGE>


Both the income and expenses of operating the property owned by the  Partnership
are subject to factors outside of the Partnership's  control, such as changes in
the supply  and  demand of similar  properties  resulting  from  various  market
conditions, increases/decreases in unemployment or population shifts, changes in
the availability of permanent mortgage funds, changes in zoning laws, or changes
in patterns or needs of users.  In addition,  there are risks inherent in owning
and operating residential  properties because such properties are susceptible to
the  impact of  economic  and other  conditions  outside  of the  control of the
Partnership.

From time to time, the Federal Bureau of  Investigation,  or FBI, and the United
States  Department  of  Homeland  Security  issue  alerts  regarding   potential
terrorist threats  involving  apartment  buildings.  Threats of future terrorist
attacks,  such as those  announced  by the FBI and the  Department  of  Homeland
Security,  could  have a  negative  effect on rent and  occupancy  levels at the
Partnership's  property.  The effect that future terrorist activities or threats
of such activities could have on the  Partnership's  operations is uncertain and
unpredictable. If the Partnership were to incur a loss at a property as a result
of an act of  terrorism,  the  Partnership  could  lose all or a portion  of the
capital  invested  in the  property,  as well as the  future  revenue  from  the
property.  In this regard, the Partnership has purchased insurance to cover acts
of terrorism. The General Partner does not anticipate that these costs will have
a negative  effect on the  Partnership's  consolidated  financial  condition  or
results of operations.

There have been, and it is possible there may be other, Federal, state and local
legislation  and  regulations   enacted   relating  to  the  protection  of  the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations  might adversely  affect the property
owned by the Partnership.

The  Partnership  monitors its property for evidence of  pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental  testing has been performed which resulted in no material  adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further  description  of the  Partnership's  business  is included in "Item 6.
Management's Discussion and Analysis or Plan of Operation" of this Form 10-KSB.

Item 2.     Description of Property

The following table sets forth the Partnership's investment in property:

                                   Date of
Property                           Purchase      Type of Ownership          Use

Hunt Club Apartments                 05/87   Fee ownership subject to  Apartment
  Indianapolis, Indiana                      first mortgage (1)        200 units

(1)   The  property is held by a limited  partnership  in which the  Partnership
      owns a 99% interest.

Sale of Property

On October  28,  2003,  the  Partnership  sold  Shadow  Brook  Apartments  to an
unrelated  third party for a gross sale price of  $14,750,000.  The net proceeds
realized by the  Partnership  were  approximately  $6,303,000  after  payment of
closing  costs and  assumption  of the  mortgage by the buyer.  The  Partnership
recognized  a gain of  approximately  $9,640,000  as a result  of the  sale.  In
addition,  the  Partnership  recognized  a loss  on  extinguishment  of  debt of
approximately $251,000 as a result of unamortized loan costs being written off.

Schedule of Property

Set forth  below for the  Partnership's  property is the gross  carrying  value,
accumulated depreciation,  depreciable life, method of depreciation, and Federal
tax basis.
<TABLE>
<CAPTION>

                             Gross
                            Carrying   Accumulated                        Federal
Property                     Value    Depreciation    Rate    Method     Tax Basis
                                (in thousands)                         (in thousands)

<S>                         <C>          <C>          <C>                 <C>
Hunt Club Apartments        $ 8,278      $ 6,013      5-30     S/L        $ 3,271
</TABLE>

See "Note A - Organization  and Summary of Significant  Accounting  Policies" of
the consolidated financial statements included in "Item 7. Financial Statements"
for a description of the Partnership's capitalization and depreciation policies.

Schedule of Property Indebtedness

The following  table sets forth certain  information  relating to the fixed rate
loan encumbering the Partnership's property.
<TABLE>
<CAPTION>

                       Principal                                         Principal
                       Balance At      Stated                             Balance
                      December 31,    Interest    Period    Maturity       Due At
Property                  2004          Rate     Amortized    Date      Maturity (1)
                     (in thousands)                                    (in thousands)
Hunt Club
<S>                     <C>            <C>       <C>          <C>           <C>
  1st mortgage          $ 3,501        8.05%     20 years     09/20         $ --
</TABLE>

(1)   See  "Note  B -  Mortgage  Note  Payable"  to the  consolidated  financial
      statements included in "Item 7. Financial Statements" for information with
      respect to the Partnership's ability to prepay the loan and other specific
      details about the loan.

Schedule of Rental Rates and Occupancy

Average annual rental rates and occupancy for 2004 and 2003 for the property are
as follows:

                                   Average Annual               Average Annual
                                    Rental Rates                  Occupancy
                                     (per unit)
Property                         2004           2003          2004          2003

Hunt Club Apartments            $7,017         $7,323          90%          92%

The General  Partner  attributes  the  decrease in average  rental  rates to the
competitive  market and weak economy in the  Indianapolis  area. Lower rents are
being offered in an effort to attract and retain tenants.

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly   competitive.   The  property  is  subject  to  competition  from  other
residential  apartment  complexes in the area. The General Partner believes that
the property is adequately  insured.  The property is an apartment complex which
leases units for terms of one year or less. No residential  tenant leases 10% or
more of the available rental space. The property is in good physical  condition,
subject to normal  depreciation  and  deterioration  as is typical for assets of
this type and age.

Schedule of Real Estate Taxes and Rate

Real estate taxes and rate in 2004 for the property were as follows:

                                                2004            2004
                                                Taxes           Rate
                                           (in thousands)

       Hunt Club Apartments                     $143            2.40%

During 2003, the state of Indiana implemented a reassessment of property values.
The Partnership  successfully appealed the reassessed property tax value of Hunt
Club Apartments. In the state of Indiana property tax bills are paid one year in
arrears.  Thus,  the 2003 property tax bills are received and paid in 2004. As a
result of the Partnership's  successful appeal of the reassessed  property value
an adjustment of approximately $16,000 related to 2002 taxes and $48,000 related
to 2003 taxes was recorded  during the year ended  December 31, 2004. The appeal
resulted in a lower  assessed  value  which  resulted in a refund for 2002 taxes
paid in  2003,  a refund  for 2003  taxes  paid in 2004 and a  reduction  in the
accrual for 2004 taxes to be paid in 2005.

Capital Improvements

Hunt Club

During the year ended December 31, 2004, the Partnership completed approximately
$256,000 of capital improvements at Hunt Club Apartments consisting primarily of
appliance  and  floor  covering  replacements,   interior  painting,  structural
improvements, plumbing enhancements, furniture and fixture improvements and HVAC
upgrades. These improvements were funded from Partnership reserves and operating
cash flow. The Partnership  regularly evaluates the capital improvement needs of
the property.  While the  Partnership  has no material  commitments for property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Item 3.     Legal Proceedings

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.

On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement  and the judgment  thereto.  The plaintiffs  have also
filed a brief in support of the  settlement.  On June 4, 2004,  Objector filed a
reply to the briefs submitted by the General Partner and Plaintiffs. In addition
both the Objector and  plaintiffs  filed  briefs in  connection  with the second
appeal.  The Court of Appeals  heard oral  argument on both appeals on September
22, 2004 and took the matters under submission.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

As previously disclosed,  AIMCO Properties L.P. and NHP Management Company, both
affiliates  of the General  Partner,  are  defendants in an action in the United
States  District Court,  District of Columbia.  The plaintiffs have styled their
complaint as a collective action under the Fair Labor Standards Act ("FLSA") and
seek to certify state  subclasses in California,  Maryland,  and the District of
Columbia. Specifically, the plaintiffs contend that AIMCO Properties L.P. failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  plaintiffs  allege AIMCO  Properties  L.P.  failed to
comply  with the FLSA in  compensating  maintenance  workers  for time that they
worked in responding to a call while  "on-call".  The  defendants  have filed an
answer to the amended complaint denying the substantive  allegations.  Discovery
relating  to the  certification  of the  collective  action  has  concluded  and
briefing on the matter is underway.  Although the outcome of any  litigation  is
uncertain,  AIMCO  Properties,  L.P. does not believe that the ultimate  outcome
will have a material  adverse  effect on its  financial  condition or results of
operations.  Similarly,  the General  Partner does not believe that the ultimate
outcome will have a material  adverse effect on the  Partnership's  consolidated
financial condition or results of operations.

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

During the quarter ended  December 31, 2004, no matters were submitted to a vote
of the Unit holders through the solicitation of proxies or otherwise.


<PAGE>




                                     PART II

Item 5.     Market for the Partnership's Units of Depository Receipts and
            Related Security Holder Matters

No  established  public trading market has developed for the Units of Depository
Receipts  ("Units") and it is not anticipated that such a market will develop in
the future.

      Title of Class:                     Number of Record Unit holders:

      Units of Depositary Receipts
               A Units                    365 as of December 31, 2004
               B Units                    508 as of December 31, 2004

The  Partnership  offered and sold  172,436 "A" and "B" Units.  At December  31,
2004,  the  Partnership  had 96,284 "A" Units and 75,152 "B" Units  outstanding.
Affiliates of the General  Partner held 63,163 "A" Units (65.60%) and 40,151 "B"
Units (53.43%) at December 31, 2004.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2004 and 2003.

                                                                   Distributions
                             Per Limited Per Limited
                    Aggregate Partnership "A" Partnership "B"

    01/01/03 - 12/31/03       $6,223,000 (1)          $54.07              $13.07
    01/01/04 - 12/31/04             --                  --                  --

(1)   Consists of $339,000 from  operations and $5,884,000 of cash from the sale
      proceeds of Shadow Brook Apartments (see "Item 6" for further details).

Upon distribution of sale proceeds from the sale of Carlin Manor during the year
ended  December  31,  2000,  the "A" Unit  holders  did not  receive the correct
priority  return.  As a result,  at December 31, 2002,  the "B" Unit holders had
received excess distributions of approximately $1,328,000  (approximately $17.67
per "B" Unit).  Approximately  $1,303,000 of this amount was due to the "A" Unit
holders (approximately $13.53 per "A" Unit) and approximately $25,000 was due to
the General Partner.

All future distributions  payable to the "B" Unit holders were to be paid to the
"A" Unit  holders  until the "A" Unit  holders  received  the  correct  priority
return.  During the year ended  December  31,  2002,  the "B" unit  holders were
entitled  to  approximately  $95,000  (approximately  $1.26  per  "B"  Unit  and
approximately $0.99 per "A" Unit) in distributions.  This amount was paid to the
"A" unit holders to reduce the  overpayment.  During the year ended December 31,
2003, the Partnership distributed approximately $5,884,000 of sale proceeds from
the sale of Shadow  Brook  Apartments  (see "Item 6" for  further  details)  and
approximately $339,000 from operations.  Due to the prior overpayment to the "B"
unit holders,  the "A" unit holders  received  approximately  $1,303,000 and the
General  Partner  received  approximately  $25,000 of funds that otherwise would
have been paid to the "B" unit holders during 2003.  There were no distributions
made during the year ended December 31, 2004.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the timing of the debt maturity,  property sale and/or refinancing.
The  Partnership's  cash  available  for  distribution  is reviewed on a monthly
basis.  There can be no assurance,  however,  that the Partnership will generate
sufficient funds from operations  after required capital  expenditures to permit
distributions  to its  partners  in 2005 or  subsequent  periods.  See  "Item 2.
Description of  Properties-Capital  Improvements"  for  information  relating to
anticipated capital expenditures at the property.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,151 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.43%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2004. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.43% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO as its sole stockholder.

Item 6.     Management's Discussion and Analysis or Plan of Operation

This item should be read in conjunction with the financial  statements and other
items contained elsewhere in this report.

The  Partnership's  financial  results depend upon a number of factors including
the  ability to attract  and  maintain  tenants at the  Partnership's  remaining
investment property, interest rates on mortgage loans, costs incurred to operate
the investment property, general economic conditions and weather. As part of the
ongoing  business  plan of the  Partnership,  the General  Partner  monitors the
rental market  environment of its investment  property to assess the feasibility
of increasing rents,  maintaining or increasing  occupancy levels and protecting
the  Partnership  from increases in expenses.  As part of this plan, the General
Partner attempts to protect the Partnership from the burden of inflation-related
increases  in  expenses  by  increasing  rents and  maintaining  a high  overall
occupancy  level.  However,  the General Partner may use rental  concessions and
rental rate reductions to offset softening market conditions, accordingly, there
is no  guarantee  that the General  Partner will be able to sustain such a plan.
Further,  a number of factors  that are outside the control of the  Partnership,
such as the local  economic  climate and weather,  can  adversely or  positively
affect the Partnership's financial results.

Results of Operations

The   Partnership's   net  loss  for  the  year  ended  December  31,  2004  was
approximately  $353,000,  as compared to net income of approximately  $9,096,000
for the year ended  December 31, 2003. The decrease in net income was due to the
recognition  of a gain  from  the  sale  of  discontinued  operations  in  2003,
partially  offset by decreases in losses from both  continuing and  discontinued
operations.

In accordance with the Statement of Financial  Accounting Standards ("SFAS") No.
144,  "Accounting  for the  Impairment  or Disposal of Long-Lived  Assets",  the
accompanying  consolidated  statements of operations  reflect the  operations of
Shadow  Brooks  Apartments,  which  sold on  October  28,  2003,  as  loss  from
discontinued  operations.  The results of the property's operations for the year
ended  December 31, 2003 are included in loss from  discontinued  operations  of
approximately  $91,000 and includes  revenues of  approximately  $1,757,000.  On
October 28, 2003, the Partnership  sold Shadow Brook  Apartments to an unrelated
third party for a gross sale price of $14,750,000.  The net proceeds realized by
the Partnership were approximately $6,303,000 after payment of closing costs and
assumption of the mortgage by the buyer.  The  Partnership  recognized a gain of
approximately  $9,640,000 as a result of the sale which is shown as gain on sale
of discontinued  operations.  In addition,  the Partnership recognized a loss on
extinguishment of debt of approximately $251,000 as a result of unamortized loan
costs being written off and is included in loss from discontinued operations.

The  Partnership's  net loss  from  continuing  operations  for the  year  ended
December  31, 2004 was  approximately  $353,000,  as compared to a net loss from
continuing operations of approximately  $453,000 for the year ended December 31,
2003.  The decrease in loss from  continuing  operations is due to a decrease in
total expenses partially offset by a decrease in total revenues. The decrease in
total  revenues is due to a decrease in other  income.  Other  income  decreased
primarily due to a decrease in late charges and lease  cancellation  fees offset
by an increase  in  utilities  reimbursements  at Hunt Club  Apartments.  Rental
income remained relatively constant for the comparable periods.

Total   expenses   decreased   due   primarily   to  decreases  in  general  and
administrative,  interest  and  property  tax  expenses  partially  offset by an
increase  in  operating  expenses.   Depreciation  expense  remained  relatively
constant for the  comparable  periods.  Interest  expense  decreased  due to the
payment  of  scheduled  principal  payments  on  the  mortgage  encumbering  the
Partnership's investment property, which reduced the average outstanding balance
during the period.  Property  tax  expense  decreased  due to the  Partnership's
appeal of the assessed value at Hunt Club Apartments by the taxing  authorities.
During 2003,  the state of Indiana  implemented a  reassessment  of property tax
values. The Partnership  successfully appealed the reassessed property tax value
of Hunt Club Apartments. In the state of Indiana property tax bills are paid one
year in arrears.  Thus,  the 2003  property  tax bills are  received and paid in
2004.  As a result of the  Partnership's  successful  appeal  of the  reassessed
property value an adjustment of approximately  $16,000 related to 2002 taxes and
$48,000  related to 2003 taxes was recorded  during the year ended  December 31,
2004.  The appeal  resulted in a lower assessed value which resulted in a refund
for  2002  taxes  paid in  2003,  a refund  for  2003  taxes  paid in 2004 and a
reduction in the accrual for 2004 taxes to be paid in 2005.  Operating  expenses
increased  primarily  due to increases in property and  administrative  expenses
partially  offset by a  decrease  in  maintenance  expenses.  Property  expenses
increased  due to  increases in utility  expense and salary and related  benefit
expenses  at the  Partnership's  investment  property.  Administrative  expenses
increased  due to increases in credit  collection  and eviction  efforts and tax
appeal services. Maintenance expenses decreased due to decreases in snow removal
expense,  contract services and plumbing repairs as a result of less water leaks
and a milder winter at the property.

General and administrative  expenses decreased as a result of the sale of Shadow
Brook  Apartments  during  2003,  which  resulted in a decrease  in  accountable
reimbursements  paid to an affiliate of the General Partner as allowed under the
Partnership  Agreement.  In  addition  fees  paid  to  the  General  Partner  in
connection with distributions made from operations  decreased and there was also
a decrease in audit fees. Also included in general and  administrative  expenses
are costs associated with the quarterly and annual communications with investors
and  regulatory  agencies  and the  annual  audit  required  by the  Partnership
Agreement.

Liquidity and Capital Resources

At  December  31,  2004,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $16,000 as compared  to  approximately  $303,000 at December  31,
2003. Cash and cash equivalents decreased  approximately  $287,000 from December
31,  2003 due to  approximately  $247,000,  $15,000  and $25,000 of cash used in
investing,  financing  and  operating  activities,  respectively.  Cash  used in
investing activities consisted of property  improvements and replacements.  Cash
used  in  financing  activities  consisted  of  principal  payments  made on the
mortgage  encumbering the  Partnership's  property  partially offset by advances
from an affiliate of the General  Partner.  The Partnership  invests its working
capital reserves in interest bearing accounts.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership and to comply with Federal,  state,
and local  legal and  regulatory  requirements.  The  General  Partner  monitors
developments in the area of legal and regulatory  compliance.  For example,  the
Sarbanes-Oxley Act of 2002 mandates or suggests  additional  compliance measures
with regard to governance,  disclosure, audit and other areas. In light of these
changes,  the Partnership  expects that it will incur higher expenses related to
compliance. The Partnership regularly evaluates the capital improvement needs of
the property.  While the  Partnership  has no material  commitments for property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.  To the extent  that such  capital  improvements  are  completed,  the
Partnership's  distributable  cash flow,  if any, may be  adversely  affected at
least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive  of  capital   improvements)   of  the   Partnership.   The  mortgage
indebtedness  encumbering  Hunt Club Apartments of  approximately  $3,501,000 is
amortized over 20 years and matures  September 1, 2020 at which time the loan is
scheduled to be fully amortized.

The following table sets forth the distributions made by the Partnership for the
years ended December 31, 2003 and 2004.

                                                                   Distributions
                             Per Limited Per Limited
                    Aggregate Partnership "A" Partnership "B"

    01/01/03 - 12/31/03       $6,223,000 (1)          $54.07              $13.07
    01/01/04 - 12/31/04               --                  --                  --

(1)   Consists of $339,000 from  operations and $5,884,000 of cash from the sale
      proceeds of Shadow Brook Apartments.


<PAGE>



Upon distribution of sale proceeds from the sale of Carlin Manor during the year
ended  December  31,  2000,  the "A" Unit  holders  did not  receive the correct
priority  return.  As a result,  at December 31, 2002,  the "B" Unit holders had
received excess distributions of approximately $1,328,000  (approximately $17.67
per "B" Unit).  Approximately  $1,303,000 of this amount was due to the "A" Unit
holders (approximately $13.53 per "A" Unit) and approximately $25,000 was due to
the General Partner.

All future distributions  payable to the "B" Unit holders were to be paid to the
"A" Unit  holders  until the "A" Unit  holders  received  the  correct  priority
return.  During the year ended  December  31,  2002,  the "B" unit  holders were
entitled  to  approximately  $95,000  (approximately  $1.26  per  "B"  Unit  and
approximately $0.99 per "A" Unit) in distributions.  This amount was paid to the
"A" unit holders to reduce the  overpayment.  During the year ended December 31,
2003, the Partnership distributed approximately $5,884,000 of sale proceeds from
the sale of Shadow Brook Apartments and approximately  $339,000 from operations.
Due to the prior overpayment to "B" unit holders,  the "A" unit holders received
approximately  $1,303,000 and the General Partner received approximately $25,000
of funds  that  otherwise  would have been paid to the "B" unit  holders  during
2003. There were no distributions made during the year ended December 31, 2004.

Future cash  distributions  will depend on the levels of net cash generated from
operations,  the timing of the debt maturity,  property sale and/or refinancing.
The  Partnership's  cash  available  for  distribution  is reviewed on a monthly
basis.  There can be no assurance,  however,  that the Partnership will generate
sufficient funds from operations  after required capital  expenditures to permit
distributions to its partners in 2005 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,151 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.43%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2004. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.43% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO as its sole stockholder.

Critical Accounting Policies and Estimates

A summary of the Partnership's  significant  accounting  policies is included in
"Note A - Organization and Summary of Significant  Accounting Policies" which is
included  in  the  consolidated  financial  statements  in  "Item  7.  Financial
Statements".  The General  Partner  believes that the consistent  application of
these  policies  enables the  Partnership  to provide  readers of the  financial
statements  with  useful  and  reliable   information  about  the  Partnership's
operating  results and financial  condition.  The  preparation  of  consolidated
financial statements in conformity with accounting principles generally accepted
in the United States requires the Partnership to make estimates and assumptions.
These  estimates  and  assumptions  affect  the  reported  amounts of assets and
liabilities at the date of the financial  statements as well as reported amounts
of revenues and expenses  during the  reporting  period.  Actual  results  could
differ from these  estimates.  Judgments and  assessments of  uncertainties  are
required in applying the  Partnership's  accounting  policies in many areas. The
Partnership believes that of its significant  accounting policies, the following
may involve a higher degree of judgment and complexity.

Impairment of Long-Lived Assets

Investment property is recorded at cost, less accumulated  depreciation,  unless
considered  impaired.  If events or  circumstances  indicate  that the  carrying
amount of a property may be impaired, the Partnership will make an assessment of
its recoverability by estimating the undiscounted  future cash flows,  excluding
interest charges, of the property.  If the carrying amount exceeds the aggregate
future cash flows,  the  Partnership  would  recognize an impairment loss to the
extent the carrying amount exceeds the fair value of the property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  property.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any  adverse  changes  in  these  factors  could  cause  an  impairment  in  the
Partnership's asset.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.


<PAGE>


Item 7.     Financial Statements

MULTI-BENEFIT REALTY FUND '87-1

LIST OF CONSOLIDATED FINANCIAL STATEMENTS

      Report of Independent Registered Public Accounting Firm

      Consolidated Balance Sheet - December 31, 2004

      Consolidated  Statements of  Operations - Years ended  December 31, 2004
      and 2003

      Consolidated  Statements  of Changes in Partners'  (Deficiency)  Capital -
      Years ended December 31, 2004 and 2003

      Consolidated  Statements  of Cash Flows - Years ended  December 31, 2004
      and 2003

      Notes to Consolidated Financial Statements


<PAGE>


           Report of Independent Registered Public Accounting Firm


The Partners
Multi-Benefit Realty Fund '87-1


We have audited the  accompanying  consolidated  balance sheet of  Multi-Benefit
Realty  Fund  '87-1  as of  December  31,  2004,  and the  related  consolidated
statements of operations,  changes in partners'  (deficiency)  capital, and cash
flows for each of the two years in the period ended  December  31,  2004.  These
financial statements are the responsibility of the Partnership's management. Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes consideration of
internal  control  over  financial  reporting  as a basis  for  designing  audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Partnership's internal control
over financial reporting. Accordingly, we express no such opinion. An audit also
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by management,  and 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  consolidated  financial  position of Multi-Benefit
Realty Fund '87-1 at December  31,  2004,  and the  consolidated  results of its
operations  and its cash  flows  for each of the two years in the  period  ended
December 31, 2004, in conformity with accounting  principles  generally accepted
in the United States.


                                                          /s/ERNST & YOUNG LLP


Greenville, South Carolina
March 10, 2005


<PAGE>






                         MULTI-BENEFIT REALTY FUND '87-1

                           CONSOLIDATED BALANCE SHEET
                        (in thousands, except unit data)

                                December 31, 2004

<TABLE>
<CAPTION>


Assets
<S>                                                                           <C>
   Cash and cash equivalents                                                  $ 16
   Receivables and deposits                                                      127
   Other assets                                                                  167
   Investment property (Notes B and E):
      Land                                                     $ 485
      Buildings and related personal property                    7,793
                                                                8,278
      Less accumulated depreciation                             (6,013)        2,265
                                                                            $ 2,575

Liabilities and Partners' (Deficiency) Capital
Liabilities
   Accounts payable                                                           $ 69
   Tenant security deposit liabilities                                            31
   Accrued property taxes (Note G)                                               144
   Other liabilities                                                             181
   Due to affiliates (Note D)                                                    122
   Mortgage note payable (Note B)                                              3,501

Partners' (Deficiency) Capital
   General Partner                                             $ (79)
   Limited Partner "A" Unit holders -
      96,284 units issued and outstanding                       (8,378)
   Limited Partner "B" Unit holders -
      75,152 units issued and outstanding                        6,984        (1,473)
                                                                            $ 2,575

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>



                         MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                      (in thousands, except per unit data)
<TABLE>
<CAPTION>

                                                          Years Ended December 31,
                                                            2004            2003

Revenues:
<S>                                                        <C>            <C>
  Rental income                                            $ 1,217        $ 1,223
  Other income                                                 177            206
      Total revenues                                         1,394          1,429

Expenses:
  Operating                                                    863            833
  General and administrative                                    95            212
  Depreciation                                                 383            387
  Interest                                                     298            306
  Property taxes (Note G)                                      108            144
      Total expenses                                         1,747          1,882

Loss from continuing operations                               (353)          (453)
Loss from discontinued operations                               --            (91)
Gain on sale of discontinued operations (Note F)                --          9,640

Net (loss) income                                          $ (353)        $ 9,096

Net (loss) income allocated to general partner (1%)         $ (4)           $ 91
Net (loss) income allocated to limited partners (99%)         (349)         9,005

                                                           $ (353)        $ 9,096
Per limited partnership unit:
  Loss from continuing operations                          $ (2.04)       $ (2.62)
  Loss from discontinued operations                             --          (0.52)
  Gain on sale of discontinued operations                       --          55.67

Net (loss) income per limited partnership unit             $ (2.04)       $ 52.53

Distributions per limited partnership "A" units             $ --          $ 54.07

Distributions per limited partnership "B" units             $ --          $ 13.07

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>



                         MULTI-BENEFIT REALTY FUND '87-1

     CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' (DEFICIENCY) CAPITAL
                        (in thousands, except unit data)


<TABLE>
<CAPTION>

                                                                               Total
                                                                             Partners'
                                        General       Limited Partners     (Deficiency)
                                        Partner    "A" Units    "B" Units     Capital

<S>                                       <C>       <C>          <C>         <C>
Original capital contributions            $ 1       $ 9,706      $ 7,538     $ 17,245

Limited partnership units at
  December 31, 2004 and
    December 31, 2003                       --       96,284       75,152      171,436

Partners' (deficiency) capital at
  December 31, 2002                     $ (131)     $(8,033)     $ 4,171     $ (3,993)

Distributions to partners                  (35)      (5,206)        (982)      (6,223)

Net income for the year ended
  December 31, 2003                         91        5,057        3,948        9,096

Partners' (deficiency) capital at
  December 31, 2003                        (75)      (8,182)       7,137       (1,120)

Net loss for the year ended
  December 31, 2004                         (4)        (196)        (153)        (353)

Partners' (deficiency) capital at
  December 31, 2004                      $ (79)     $(8,378)     $ 6,984     $ (1,473)

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>



                         MULTI-BENEFIT REALTY FUND `87-1

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)

<TABLE>
<CAPTION>

                                                                Years Ended December 31,
                                                                    2004         2003
Cash flows from operating activities:
<S>                                                                <C>          <C>
  Net (loss) income                                                $ (353)      $ 9,096
  Adjustments to reconcile net (loss) income to net cash
   (used in) provided by operating activities:
     Depreciation                                                      383          770
     Amortization of loan costs                                         12           24
     Bad debt expense                                                   42          169
     Gain on sale of investment property                                --       (9,640)
     Loss on early extinguishment of debt                               --          251
     Change in accounts:
      Receivables and deposits                                        (106)         (49)
      Other assets                                                     (31)          (2)
      Accounts payable                                                 (20)         (82)
      Tenant security deposit liabilities                              (11)         (21)
      Accrued property taxes                                           (14)          (4)
      Other liabilities                                                  3          (43)
      Due to affiliates                                                 30           --
          Net cash (used in) provided by operating activities          (25)         469

Cash flows from investing activities:
  Property improvements and replacements                              (247)        (180)
  Net proceeds from sale of investment property                         --        6,303
          Net cash (used in) provided by investing activities         (247)       6,123

Cash flows from financing activities:
 Advances from affiliates                                               92        --
 Payments on mortgage notes payable                                   (107)        (285)
 Distributions to partners                                              --       (6,223)
          Net cash used in financing activities                        (15)      (6,508)

Net (decrease) increase in cash and cash equivalents                  (287)          84
Cash and cash equivalents at beginning of year                         303          219
Cash and cash equivalents at end of year                            $ 16         $ 303

Supplemental disclosure of cash flow information:
  Cash paid for interest                                            $ 287        $ 838

Supplemental disclosure of non-cash activity:
  Property improvements and replacements included in
  accounts payable                                                $      9      $     --

During 2003, the net proceeds from sale of investment  property and repayment of
mortgage note payable have been reduced by  approximately  $8,328,000 due to the
assumption  of the  mortgage  note  payable by the buyer  related to the sale of
Shadow Brook Apartments.

        See Accompanying Notes to Consolidated Financial Statements
</TABLE>



<PAGE>




                         MULTI-BENEFIT REALTY FUND '87-1

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                December 31, 2004


Note A - Organization and Summary of Significant Accounting Policies

Organization

Multi-Benefit   Realty  Fund  '87-1  (the  "Partnership"  or  "Registrant")  was
organized  as a limited  partnership  under the laws of the State of  California
pursuant to a Certificate and Agreement of Limited  Partnership  filed September
8, 1986.  The  Partnership  commenced  operations  on  February  27,  1987.  The
Partnership   operated  one  property   located  in  Indiana  during  2004.  The
Partnership  operated two apartment  properties  during 2003, the one located in
Indiana  and one  located  in Utah,  which was sold  October  28,  2003.  ConCap
Equities,  Inc.  ("CEI" or the "General  Partner") is a subsidiary  of Apartment
Investment  and  Management  Company  ("AIMCO"),  a publicly  traded real estate
investment trust. The Partnership  Agreement provides that the Partnership is to
terminate on December 31, 2036, unless terminated prior to such date.

Upon  the  Partnership's   formation  in  1986,  Consolidated  Capital  Equities
Corporation  ("CCEC"), a Colorado  corporation,  was the sole general partner of
the Partnership and the corporate limited partner, a wholly-owned  subsidiary of
CCEC, was the sole limited partner.  In 1988,  through a series of transactions,
Southmark Corporation  ("Southmark") acquired a controlling interest in CCEC. In
December  1988,  CCEC filed for  reorganization  under  Chapter 11 of the United
States  Bankruptcy  Code. In 1990, as part of CCEC's  reorganization  plan,  CEI
acquired  CCEC's general  partner  interest in the  Partnership  and in 15 other
affiliated public limited partnerships (the "Affiliated Partnerships"), acquired
the stock of the  corporate  limited  partner,  and CEI replaced CCEC as General
Partner in all 16 partnerships. The selection of CEI as the sole General Partner
was  approved by a majority of the Unit  holders in the  Partnership  and of the
limited  partners  in  each  of  the  Affiliated   Partnerships  pursuant  to  a
solicitation  of the  Unit  holders  dated  August  10,  1990.  As  part of this
solicitation,  the Unit  holders also  approved an amendment to the  Partnership
Agreement to limit changes of control of the Partnership.

Principles of Consolidation

The consolidated financial statements of the Partnership include its 99% limited
partnership  interest in Hunt Club Associates,  Ltd. The general partner of Hunt
Club  Associates,  Ltd. is the General  Partner.  The Partnership may remove the
general partner of Hunt Club  Associates,  Ltd;  therefore,  this partnership is
controlled and consolidated by the Partnership. All significant interpartnership
balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States  requires  management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.

Partners' (Deficiency) Capital

The  Partnership  has  issued  two  classes  of  Units  of  Depositary  Receipts
("Units"),  "A" Units and "B" Units.  The two  classes of Units are  entitled to
different  rights  and  priorities  as to  cash  distributions  and  partnership
allocations.  The Units represent  economic  rights  attributable to the limited
partnership  interests in the Partnership and entitle the holders thereof ("Unit
holders") to participate in certain allocations of the Partnership.

The  Partnership  Agreement  provides for the  allocation  of net income and net
losses from operations for both financial and tax reporting purposes as follows:
net profits are first  allocated in the reverse order of any net losses then are
allocated 99% to the holders of "A" Units until they have been allocated  income
equal to their  priority  return,  and 1% to the General  Partner.  The priority
return  represents 9% per annum return on invested capital for the Partnership's
first  fiscal  year,  9.5% for the  second  year and 10% per  annum  thereafter.
Additional  net profits are  allocated 1% to the General  Partner and 99% to the
Unit holders.  Net losses are allocated 1% to the General Partner and 99% to the
Unit holders until their capital  accounts are depleted.  Additional  net losses
are allocated to the General Partner.  Net (loss) income per limited partnership
unit for both 2004 and 2003 was computed as 99% of net (loss) income  divided by
171,436 units outstanding.

Distributable  cash from  operations is allocated 1% to the General  Partner and
99% to the Unit holders with holders of "A" Units first receiving their priority
return,  then the balance is split equally  between holders of "A" Units and "B"
Units.  The General Partner  receives 1% of surplus funds and holders of "A" and
"B" Units will receive a return of their invested capital. Any remainder will be
allocated 10% to holders of "A" Units and 90% to holders of "B" Units.

Cash and Cash Equivalents

Includes  cash on hand and in  banks.  At  certain  times,  the  amount  of cash
deposited  at a bank may  exceed the limit on insured  deposits.  Cash  balances
include  approximately  $10,000 at December 31, 2004 that are  maintained  by an
affiliated   management  company  on  behalf  of  affiliated  entities  in  cash
concentration accounts.

Tenant Security Deposits

The Partnership  requires security deposits from lessees for the duration of the
lease.  Deposits are refunded when the tenant  vacates,  provided the tenant has
not damaged their space and is current on rental payments.

Investment Property

Investment  property  consists of one  apartment  complex and is stated at cost.
Acquisition  fees are  capitalized  as a cost of real  estate.  The  Partnership
capitalizes  all  expenditures  in  excess of $250  that  clearly  relate to the
acquisition and  installation of real and personal  property  components.  These
expenditures  include costs incurred to replace  existing  property  components,
costs  incurred  to add a material  new  feature to a  property,  and costs that
increase  the useful life or service  potential of a property  component.  These
capitalized   costs  are  depreciated   over  the  useful  life  of  the  asset.
Expenditures for ordinary repairs,  maintenance and apartment turnover costs are
expensed as  incurred.  In  accordance  with SFAS No. 144,  "Accounting  for the
Impairment or Disposal of Long-Lived Assets," the Partnership records impairment
losses on  long-lived  assets used in operations  when events and  circumstances
indicate  that the assets  might be  impaired  and the  undiscounted  cash flows
estimated to be generated by those assets are less than the carrying  amounts of
those assets.  No adjustments for impairment of value were recorded in the years
ended December 31, 2004 or 2003.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment  property and related personal  property.  For Federal income tax
purposes, the accelerated cost recovery method is used for real property over 19
years for additions after May 8, 1985 and before January 1, 1987. As a result of
the Tax  Reform  Act of  1986,  for  additions  after  December  31,  1986,  the
alternative  depreciation  system is used for  depreciation of (1) real property
additions over 40 years, and (2) personal property additions over 5-20 years.

Deferred Costs

Loan  costs  of  approximately   $162,000  less   accumulated   amortization  of
approximately  $53,000 are included in other assets and are  amortized  over the
term of the related loan  agreement.  Amortization  of loan costs is included in
interest  expense in the  accompanying  statements of  operations.  Amortization
expense  is  expected  to be  approximately  $11,000  for both 2005 and 2006 and
$10,000 for 2007, 2008 and 2009.

Leasing   commissions  and  other  direct  costs  incurred  in  connection  with
successful  leasing  efforts are  deferred and  amortized  over the terms of the
related leases. Amortization of these costs is included in operating expenses.

Leases

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.

Segment Reporting

SFAS  No.  131,   "Disclosure  about  Segments  of  an  Enterprise  and  Related
Information"  established standards for the way that public business enterprises
report information about operating  segments in annual financial  statements and
requires that those  enterprises  report  selected  information  about operating
segments  in  interim  financial  reports.  SFAS  No.  131 is  also  established
standards for related disclosures about products and services, geographic areas,
and major  customers.  As defined in SFAS No. 131, the  Partnership has only one
reportable segment.

Advertising

Advertising  costs of  approximately  $28,000  and  $60,000  for the years ended
December 31, 2004 and 2003, respectively, are charged to expense as incurred and
are included in operating expenses and loss from discontinued operations.

Fair Value of Financial Instruments

SFAS No.  107,  "Disclosures  about Fair  Value of  Financial  Instruments",  as
amended by SFAS No. 119, "Disclosures about Derivative Financial Instruments and
Fair  Value  of  Financial  Instruments",  requires  disclosure  of  fair  value
information  about  financial  instruments,  whether  or not  recognized  in the
balance sheet, for which it is practicable to estimate fair value. Fair value is
defined in the SFAS as the amount at which the instruments could be exchanged in
a  current  transaction  between  willing  parties,  other  than in a forced  or
liquidation  sale.  The  Partnership  believes  that the carrying  amount of its
financial  instruments (except for long term debt) approximates their fair value
due to the short term maturity of these instruments.  The Partnership  estimates
fair  value of its long term  debt by  discounting  future  cash  flows  using a
discount rate commensurate  with that currently  believed to be available to the
Partnership for similar term, fully amortizing long term debt. The fair value of
the Partnership's  long term debt, after discounting the scheduled loan payments
to maturity at the  Partnership's  incremental  borrowing rate was approximately
$3,931,000 at December 31, 2004.

Note B - Mortgage Note Payable

The principle terms of the mortgage note payable are as follows:

<TABLE>
<CAPTION>

                        Principal      Monthly                           Principal
                       Balance At      Payment    Stated                  Balance
                      December 31,    Including  Interest   Maturity       Due At
Property                  2004        Interest     Rate       Date        Maturity
                           (in thousands)                              (in thousands)
Hunt Club
<S>                      <C>            <C>        <C>      <C>   <C>       <C>
  1st mortgage           $ 3,501        $ 33       8.05%    09/01/20        $ --
</TABLE>

The mortgage note payable is a fixed rate mortgage that is  non-recourse  and is
secured  by a pledge of the  Partnership's  rental  property  and by a pledge of
revenues  from the  rental  property.  The  mortgage  note  payable  includes  a
prepayment penalty if repaid prior to maturity. Further, the property may not be
sold subject to existing indebtedness.

Scheduled principal payments of the mortgage note payable subsequent to December
31, 2004 are as follows (in thousands):

                               2005              $ 115
                               2006                 125
                               2007                 135
                               2008                 147
                               2009                 159
                            Thereafter            2,820
                                                $ 3,501

Note C - Income Taxes

The Partnership  received a ruling from the Internal  Revenue Service that it is
to be classified as a partnership for Federal income tax purposes.  Accordingly,
no provision for income taxes is made in the consolidated  financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

The  following is a  reconciliation  of reported  net (loss)  income and Federal
taxable (loss) income (in thousands, except per unit data):

                                              2004          2003
Net (loss) income as reported               $  (353)       $ 9,096
Add (deduct)
  Depreciation differences                       22            107
  Unearned income                               (17)           (74)
  Gain on sale of investment property            --           (249)
  Other                                         (23)            34
Federal taxable (loss) income                  (371)       $ 8,914
Federal taxable (loss) income per limited
  partnership unit:
    "A" Units                               $   .49        $ 75.86
    "B" Units                               $ (2.41)       $  9.33

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net (liabilities)  assets (in thousands) as of December 31,
2004:

Net liabilities as reported                   $ (1,473)
Land and buildings                                  88
Accumulated depreciation                           918
Syndication fees                                 1,975
Other                                               49

Net assets - tax basis                        $ 1,557



<PAGE>


Note D - Transactions with Affiliated Parties

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) payments to affiliates for services
and (ii)  reimbursement of certain expenses  incurred by affiliates on behalf of
the Partnership.

Affiliates of the General  Partner receive 5% of gross receipts from both of the
Partnership's  properties  as  compensation  for providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $69,000 and
$169,000 for the years ended December 31, 2004 and 2003, respectively, which are
included in operating expenses and loss from discontinued operations.

Affiliates  of the General  Partner  charged the  Partnership  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $72,000 and
$94,000 for the years ended December 31, 2004 and 2003,  respectively,  which is
included in general and  administrative  expenses and investment  property.  The
portion of these  reimbursements  included in  investment  property for the year
ended  December 31, 2004 are fees related to  construction  management  services
provided by an affiliate of the General Partner of approximately  $14,000. There
were no such  fees  for the year  ended  December  31,  2003.  The  construction
management  service fees are  calculated  based on a percentage  of current year
additions to investment property. At December 31, 2004, approximately $29,000 of
reimbursements  for services was accrued by the  Partnership  and is included in
due to affiliates on the accompanying consolidated balance sheet.

The Partnership  Agreement  provides for a fee equal to 9% of distributable cash
from  operations  (as  defined in the  Partnership  Agreement)  received  by the
limited   partners  to  be  paid  to  the  General  Partner  for  executive  and
administrative  management  services.  Fees of  approximately  $30,000 were paid
during the year ended  December 31, 2003 in association  with the  distributions
from operations and are included in general and administrative  expenses.  There
were no such fees for the year ended December 31, 2004.

In  accordance  with the  Partnership  Agreement,  an  affiliate  of the General
Partner  loaned  the  Partnership  approximately  $92,000  during the year ended
December  31,  2004  to  fund  capital  projects  and  accounts  payable  at the
Partnership's  sole property.  Interest accrues at the prime rate plus 2% (7.25%
at December 31, 2004).  Interest expense was less than $1,000 for the year ended
December 31, 2004.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2004 and 2003, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $20,000  and  $42,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,151 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.43%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2004. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.43% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO as its sole stockholder.

Note E - Investment Property and Accumulated Depreciation

<TABLE>
<CAPTION>

                                                  Initial Cost
                                                 To Partnership
                                                 (in thousands)
                                                         Buildings       Net Cost
                                                        and Related     Capitalized
                                                         Personal      Subsequent to
Description                  Encumbrances      Land      Property       Acquisition
                            (in thousands)                            (in thousands)
<S>                            <C>            <C>         <C>             <C>
Hunt Club Apartments           $ 3,501        $ 485       $ 5,673         $ 2,120
</TABLE>

<TABLE>
<CAPTION>

                 Gross Amount At Which
                        Carried
                  At December 31, 2004
                     (in thousands)
                       Buildings
                      And Related
                       Personal             Accumulated     Date of      Date    Depreciable
Description    Land    Property    Total    Depreciation  Construction Acquired  Life-Years
                                           (in thousands)
<S>            <C>      <C>       <C>         <C>             <C>        <C>        <C>
Hunt Club      $ 485    $ 7,793   $ 8,278     $ 6,013         1979       05/87      5-30
</TABLE>

Reconciliation of "investment property and accumulated depreciation"

                                              Years Ended December 31,
                                                 2004          2003
                                                   (in thousands)
Investment Property
Balance at beginning of year                    $ 8,022      $ 19,303
  Property improvements                             256           180
  Sale of investment property                        --       (11,461)
Balance at end of year                          $ 8,278       $ 8,022

Accumulated Depreciation
Balance at beginning of year                    $ 5,630      $ 11,403
  Additions charged to expense                      383           770
  Sale of investment property                        --        (6,543)
Balance at end of year                          $ 6,013       $ 5,630

The aggregate cost of the investment property for Federal income tax purposes at
December  31,  2004  and  2003,  is  approximately  $8,366,000  and  $8,110,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December  31, 2004 and 2003,  is  approximately  $5,095,000  and  $4,733,000,
respectively.

Note F - Disposition of Investment Property

On October  28,  2003,  the  Partnership  sold  Shadow  Brook  Apartments  to an
unrelated  third party for a gross sale price of  $14,750,000.  The net proceeds
realized by the  Partnership  were  approximately  $6,303,000  after  payment of
closing  costs and  assumption  of the  mortgage by the buyer.  The  Partnership
recognized a gain of  approximately  $9,640,000 as a result of the sale which is
shown as gain on sale of discontinued  operations.  In addition, the Partnership
recognized  a loss on  extinguishment  of debt of  approximately  $251,000  as a
result of unamortized  loan costs being written off and is included in loss from
discontinued  operations.  The results of the property's operations for the year
ended  December 31, 2003 are included in loss from  discontinued  operations  of
approximately $91,000 and includes revenues of approximately  $1,757,000 for the
year ended December 31, 2003.

Note G - Property Taxes

During 2003, the state of Indiana implemented a reassessment of property values.
During 2004, the Partnership  successfully  appealed the reassessed property tax
value of Hunt Club  Apartments.  In the state of Indiana  property tax bills are
paid one year in arrears.  Thus,  the 2003  property  tax bills are received and
paid  in  2004.  As a  result  of the  Partnership's  successful  appeal  of the
reassessed property value an adjustment of approximately $16,000 related to 2002
taxes and  $48,000  related  to 2003  taxes was  recorded  during the year ended
December 31, 2004. The appeal  resulted in a lower assessed value which resulted
in a refund of 2002 taxes paid in 2003, a refund for 2003 taxes paid in 2004 and
a reduction in the accrual for 2004 taxes to be paid in 2005.


<PAGE>



Note H - Contingencies

In March 1998, several putative unit holders of limited partnership units of the
Partnership  commenced an action  entitled  Rosalie  Nuanes,  et al. v. Insignia
Financial Group, Inc., et al. (the "Nuanes action") in the Superior Court of the
State of  California  for the  County  of San  Mateo.  The  plaintiffs  named as
defendants,  among others,  the Partnership,  its General Partner and several of
their affiliated  partnerships and corporate  entities.  The action purported to
assert  claims on behalf of a class of  limited  partners  and  derivatively  on
behalf of a number of limited partnerships  (including the Partnership) that are
named as nominal defendants, challenging, among other things, the acquisition of
interests in certain General Partner entities by Insignia  Financial Group, Inc.
("Insignia") and entities that were, at one time,  affiliates of Insignia;  past
tender offers by the Insignia  affiliates to acquire limited  partnership units;
management of the  partnerships  by the Insignia  affiliates;  and the series of
transactions  which  closed on October 1, 1998 and  February  26,  1999  whereby
Insignia and Insignia  Properties Trust,  respectively,  were merged into AIMCO.
The plaintiffs sought monetary damages and equitable relief,  including judicial
dissolution of the Partnership. In addition, during the third quarter of 2001, a
complaint captioned Heller v. Insignia Financial Group (the "Heller action") was
filed against the same  defendants  that are named in the Nuanes  action.  On or
about August 6, 2001,  plaintiffs  filed a first amended  complaint.  The Heller
action was brought as a purported  derivative  action,  and asserted claims for,
among other things,  breach of fiduciary duty, unfair  competition,  conversion,
unjust enrichment, and judicial dissolution.

On January 8, 2003,  the parties filed a  Stipulation  of Settlement in proposed
settlement of the Nuanes action and the Heller action.

In general  terms,  the  proposed  settlement  provides  for  certification  for
settlement  purposes of a settlement class consisting of all limited partners in
this  Partnership and others (the  "Partnerships")  as of December 20, 2002, the
dismissal  with  prejudice  and  release  of claims  in the  Nuanes  and  Heller
litigation,  payment by AIMCO of $9.9  million  (which shall be  distributed  to
settlement  class  members  after  deduction of attorney fees and costs of class
counsel and certain costs of settlement) and up to $1 million toward the cost of
independent  appraisals of the  Partnerships'  properties  by a court  appointed
appraiser.  An affiliate of the General Partner has also agreed to make at least
one round of tender offers to purchase all of the  partnership  interests in the
Partnerships within one year of final approval, if it is granted, and to provide
partners  with the  independent  appraisals  at the time of these  tenders.  The
proposed  settlement  also provided for the  limitation  of the allowable  costs
which the General  Partner or its  affiliates  will charge the  Partnerships  in
connection with this litigation and imposes limits on the class counsel fees and
costs in this litigation.  On April 11, 2003,  notice was distributed to limited
partners providing the details of the proposed settlement.

On June 13, 2003, the court granted final approval of the settlement and entered
judgment in both the Nuanes and Heller actions.  On August 12, 2003, an objector
("Objector") filed an appeal (the "Appeal") seeking to vacate and/or reverse the
order approving the settlement and entering  judgment  thereto.  On November 24,
2003,  the Objector  filed an  application  requesting  the court order AIMCO to
withdraw settlement tender offers it had commenced,  refrain from making further
offers  pending  the appeal and auction  any units  tendered  to third  parties,
contending  that the offers did not  conform  with the terms of the  settlement.
Counsel  for the  Objector  (on behalf of another  investor)  had  alternatively
requested the court take certain action  purportedly to enforce the terms of the
settlement agreement. On December 18, 2003, the court heard oral argument on the
motions  and denied them both in their  entirety.  The  Objector  filed a second
appeal challenging the court's use of a referee and its order requiring Objector
to pay those fees.

On January 28, 2004,  the  Objector  filed his opening  brief in the Appeal.  On
April 23, 2004, the General Partner and its affiliates filed a response brief in
support of the settlement  and the judgment  thereto.  The plaintiffs  have also
filed a brief in support of the  settlement.  On June 4, 2004,  Objector filed a
reply to the briefs submitted by the General Partner and Plaintiffs. In addition
both the Objector and  plaintiffs  filed  briefs in  connection  with the second
appeal.  The Court of Appeals  heard oral  argument on both appeals on September
22, 2004 and took the matters under submission.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs,  associated with these cases will be material
to the Partnership's overall operations.

As previously disclosed,  AIMCO Properties L.P. and NHP Management Company, both
affiliates  of the General  Partner,  are  defendants in an action in the United
States  District Court,  District of Columbia.  The plaintiffs have styled their
complaint as a collective action under the Fair Labor Standards Act ("FLSA") and
seek to certify state  subclasses in California,  Maryland,  and the District of
Columbia. Specifically, the plaintiffs contend that AIMCO Properties L.P. failed
to  compensate  maintenance  workers  for time  that they  were  required  to be
"on-call."  Additionally,  plaintiffs  allege AIMCO  Properties  L.P.  failed to
comply  with the FLSA in  compensating  maintenance  workers  for time that they
worked in responding to a call while  "on-call".  The  defendants  have filed an
answer to the amended complaint denying the substantive  allegations.  Discovery
relating  to the  certification  of the  collective  action  has  concluded  and
briefing on the matter is underway.  Although the outcome of any  litigation  is
uncertain,  AIMCO  Properties,  L.P. does not believe that the ultimate  outcome
will have a material  adverse  effect on its  financial  condition or results of
operations.  Similarly,  the General  Partner does not believe that the ultimate
outcome will have a material  adverse effect on the  Partnership's  consolidated
financial condition or results of operations.

The  Partnership  is unaware  of any other  pending  or  outstanding  litigation
matters involving it or its investment property that are not of a routine nature
arising in the ordinary course of business.

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions brought by government  agencies,  the presence of hazardous
substances  on a  property  could  result in claims by  private  plaintiffs  for
personal injury,  disease,  disability or other  infirmities.  Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In connection with the ownership and operation of its property,  the Partnership
could  potentially be liable for  environmental  liabilities or costs associated
with its property.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims  related  to  mold  exposure.  Affiliates  of the  General  Partner  have
implemented a national  policy and  procedures to prevent or eliminate mold from
its  properties  and the  General  Partner  believes  that these  measures  will
eliminate,  or at least minimize, the effects that mold could have on residents.
To date,  the  Partnership  has not incurred any material  costs or  liabilities
relating to claims of mold exposure or to abate mold conditions. Because the law
regarding  mold is unsettled and subject to change the General  Partner can make
no assurance that liabilities resulting from the presence of or exposure to mold
will  not have a  material  adverse  effect  on the  Partnership's  consolidated
financial condition or results of operations.

As  previously  disclosed,  the  Central  Regional  Office of the United  States
Securities  and  Exchange   Commission   (the  "SEC")  is  conducting  a  formal
investigation relating to certain matters.  Although the staff of the SEC is not
limited  in the  areas  that it may  investigate,  AIMCO  believes  the areas of
investigation include AIMCO's miscalculated monthly net rental income figures in
third quarter 2003,  forecasted  guidance,  accounts payable,  rent concessions,
vendor  rebates,  capitalization  of payroll and certain  other  costs,  and tax
credit  transactions.  AIMCO is cooperating  fully. AIMCO is not able to predict
when the matter  will be  resolved.  AIMCO does not  believe  that the  ultimate
outcome  will  have a  material  adverse  effect on its  consolidated  financial
condition  or results of  operations.  Similarly,  the General  Partner does not
believe that the ultimate  outcome  will have a material  adverse  effect on the
Partnership's consolidated financial condition or results of operations.


<PAGE>

Item 8.     Changes in and  Disagreements  with  Accountants on Accounting and
            Financial Disclosures

            None.

Item 8a.    Controls and Procedures

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b) Internal Control Over Financial  Reporting.  There have not been any changes
in the Partnership's  internal control over financial reporting (as such term is
defined in Rules  13a-15(f)  and  15d-15(f)  under the Exchange  Act) during the
fourth quarter of 2004 that have materially  affected,  or are reasonably likely
to  materially  affect,  the  Partnership's   internal  control  over  financial
reporting.

Item 8b.    Other Information

            None.


<PAGE>


                                    PART III

Item 9.     Directors,  Officers,  Promoters and Control  Persons;  Compliance
            with Section 16(a) of the Exchange Act

The general partner of Multi-Benefit Realty Fund `87-1 (the "Partnership" or the
"Registrant") is ConCap  Equities,  Inc. ("CEI" or the "General  Partner").  The
names of the directors and officers of the General  Partner,  their ages and the
nature of all positions with CEI presently held by them are as follows:

Name                        Age    Position

Martha L. Long               45    Director and Senior Vice President
Harry G. Alcock              42    Director and Executive Vice President
Miles Cortez                 61    Executive Vice President, General Counsel
                                     and Secretary
Patti K. Fielding            41    Executive Vice President
Paul J. McAuliffe            48    Executive Vice President and Chief
                                     Financial Officer
Thomas M. Herzog             42    Senior Vice President and Chief Accounting
                                     Officer
Stephen B. Waters            43    Vice President

Martha L. Long has been a Director  and Senior  Vice  President  of the  General
Partner since February 2004. Ms. Long has been with AIMCO since October 1998 and
has served in various  capacities.  From 1998 to 2001, Ms. Long served as Senior
Vice President and Controller of AIMCO and the General Partner.  During 2002 and
2003,  Ms. Long served as Senior Vice  President of Continuous  Improvement  for
AIMCO.

Harry G. Alcock was  appointed  as a Director of the General  Partner in October
2004 and was  appointed  Executive  Vice  President  of the  General  Partner in
February 2004 and has been Executive Vice President and Chief Investment Officer
of AIMCO since October  1999.  Prior to October 1999 Mr. Alcock served as a Vice
President  of AIMCO  from July 1996 to October  1997,  when he was  promoted  to
Senior Vice  President  Acquisitions  where he served until  October  1999.  Mr.
Alcock has had responsibility for acquisition and financing  activities of AIMCO
since July 1994.

Miles  Cortez was  appointed  Executive  Vice  President,  General  Counsel  and
Secretary of the General  Partner in February  2004 and of AIMCO in August 2001.
Prior to joining  AIMCO,  Mr. Cortez was the senior  partner of Cortez  Macaulay
Bernhardt  &  Schuetze  LLC,  a Denver  law firm,  from  December  1997  through
September 2001.

Patti K. Fielding was appointed  Executive  Vice President - Securities and Debt
of the General  Partner in  February  2004 and of AIMCO in  February  2003.  Ms.
Fielding was  appointed  Treasurer  of AIMCO in January  2005.  Ms.  Fielding is
responsible  for  debt  financing  and the  treasury  department.  Ms.  Fielding
previously  served as Senior Vice  President - Securities and Debt of AIMCO from
January 2000 to February 2003. Ms.  Fielding  joined AIMCO in February 1997 as a
Vice President.

Paul J. McAuliffe has been Executive Vice President and Chief Financial  Officer
of the General  Partner since April 2002. Mr.  McAuliffe has served as Executive
Vice  President of AIMCO since February 1999 and was appointed  Chief  Financial
Officer  of AIMCO in October  1999.  From May 1996  until he joined  AIMCO,  Mr.
McAuliffe was Senior Managing Director of Secured Capital Corp.


<PAGE>



Thomas M.  Herzog was  appointed  Senior  Vice  President  and Chief  Accounting
Officer of the General  Partner in February  2004 and of AIMCO in January  2004.
Prior to  joining  AIMCO in January  2004,  Mr.  Herzog  was at GE Real  Estate,
serving  as Chief  Accounting  Officer & Global  Controller  from  April 2002 to
January 2004 and as Chief Technical Advisor from March 2000 to April 2002. Prior
to joining GE Real  Estate,  Mr.  Herzog was at  Deloitte & Touche LLP from 1990
until 2000.

Stephen B. Waters was appointed Vice  President of the General  Partner in April
2004. Mr. Waters previously served as a Director of Real Estate Accounting since
joining AIMCO in September 1999. Mr. Waters has responsibilities for real estate
and partnership accounting with AIMCO.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act.  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The board of  directors of the General  Partner  does not have a separate  audit
committee.  As such, the board of directors of the General Partner  fulfills the
functions of an audit  committee.  The board of directors  has  determined  that
Martha L. Long meets the requirement of an "audit committee financial expert".

The  directors  and  officers of the General  Partner  with  authority  over the
Partnership are all employees of subsidiaries of AIMCO. AIMCO has adopted a code
of ethics that applies to such  directors and officers that is posted on AIMCO's
website  (www.AIMCO.com).  AIMCO's  website is not  incorporated by reference to
this filing.

Item 10.    Executive Compensation

Neither the  directors  nor the  officers of the General  Partner  received  any
remuneration  from the  Registrant  during the years ended December 31, 2004 and
2003.



<PAGE>


Item 11.    Security Ownership of Certain Beneficial Owners and Management

(a)   Security Ownership of Certain Beneficial Owners

Except as noted below,  no person or entity was known to CEI to own of record or
beneficially  more than 5% of the Units of the  Partnership  as of December  31,
2004.

                                               Number of         Percent
                                                 Units           of Total

      AIMCO Properties, L.P. (1)            34,280 A units        35.60%
        (an affiliate of AIMCO)             21,711 B units        28.89%

      AIMCO IPLP, L.P. (2)                   2,243 A units        2.33%
        (an affiliate of AIMCO)                210 B units        0.28%

      Madison River Properties, LLC (2)     21,457 A units        22.29%
        (an affiliate of AIMCO)             13,822 B units        18.39%

      Cooper River Properties, LLC (2)       5,183 A units        5.38%
        (an affiliate of AIMCO)              4,408 B units        5.87%

(1)   Entity is indirectly  ultimately controlled by AIMCO. Its business address
      is 4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

(2)   Entity is indirectly ultimately owned by AIMCO. Its business address is 55
      Beattie Place, Greenville, SC 29601.

(b)   Beneficial Owners of Management

      As of December 31, 2004,  neither CEI nor any of its directors or officers
      or  associates  of CEI own any  units  of the  Partnership  of  record  or
      beneficially.

(c)   Changes in Control

      Beneficial Owners of CEI

As of  December  31,  2004,  the  following  entity  was  known to CEI to be the
beneficial owner of more than 5 percent of its common stock:

              Name and address         Number of CEI SHARES   Percent of Total

      Insignia Properties Trust (1)           100,000               100%

(1)   Entity is indirectly ultimately owned by AIMCO. Its business address is 55
      Beattie Place, Greenville, SC 29601.



<PAGE>


Item 12.    Certain Relationships and Related Transactions

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) payments to affiliates for services
and (ii)  reimbursement of certain expenses  incurred by affiliates on behalf of
the Partnership.

Affiliates of the General  Partner receive 5% of gross receipts from both of the
Partnership's  properties  as  compensation  for providing  property  management
services.  The  Partnership  paid to such affiliates  approximately  $69,000 and
$169,000 for the years ended December 31, 2004 and 2003, respectively, which are
included in operating expenses and loss from discontinued operations.

Affiliates  of the General  Partner  charged the  Partnership  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $72,000 and
$94,000 for the years ended December 31, 2004 and 2003,  respectively,  which is
included in general and  administrative  expenses and investment  property.  The
portion of these  reimbursements  included in  investment  property for the year
ended  December 31, 2004 are fees related to  construction  management  services
provided by an affiliate of the General Partner of approximately  $14,000. There
were no such  fees  for the year  ended  December  31,  2003.  The  construction
management  service fees are  calculated  based on a percentage  of current year
additions to investment property. At December 31, 2004, approximately $29,000 of
reimbursements  for services was accrued by the  Partnership  and is included in
due to affiliates on the accompanying consolidated balance sheet.

The Partnership  Agreement  provides for a fee equal to 9% of distributable cash
from  operations  (as  defined in the  Partnership  Agreement)  received  by the
limited   partners  to  be  paid  to  the  General  Partner  for  executive  and
administrative  management  services.  Fees of  approximately  $30,000 were paid
during the year ended  December 31, 2003 in association  with the  distributions
from operations and are included in general and administrative  expenses.  There
were no such fees for the year ended December 31, 2004.

In  accordance  with the  Partnership  Agreement,  an  affiliate  of the General
Partner  loaned  the  Partnership  approximately  $92,000  during the year ended
December  31,  2004  to  fund  capital  projects  and  accounts  payable  at the
Partnership's  sole property.  Interest accrues at the prime rate plus 2% (7.25%
at December 31, 2004).  Interest expense was less than $1,000 for the year ended
December 31, 2004.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2004 and 2003, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $20,000  and  $42,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 63,163 "A" and 40,151 "B" Units of
Depository Receipts ("Units") in the Partnership  representing 65.60% and 53.43%
of the  outstanding  "A" and "B" Units,  respectively,  at December  31, 2004. A
number of these units were  acquired  pursuant to tender offers made by AIMCO or
its  affiliates.  It is  possible  that  AIMCO or its  affiliates  will  acquire
additional  Units in  exchange  for cash or a  combination  of cash and units in
AIMCO  Properties,  L.P.,  the operating  partnership  of AIMCO,  either through
private  purchases  or tender  offers.  Pursuant to the  Partnership  Agreement,
unitholders  holding a majority  of the Units are  entitled  to take action with
respect to a variety of matters that include,  but are not limited to, voting on
certain amendments to the Partnership Agreement and voting to remove the General
Partner.  As a result of its  ownership of 65.60% and 53.43% of the  outstanding
"A" and "B" Units,  respectively,  AIMCO and its affiliates are in a position to
control all such voting decisions with respect to the Partnership.  Although the
General  Partner  owes  fiduciary   duties  to  the  limited   partners  of  the
Partnership, the General Partner also owes fiduciary duties to AIMCO as its sole
stockholder. As a result, the duties of the General Partner, as general partner,
to the  Partnership  and its limited  partners may come into  conflict  with the
duties of the General Partner to AIMCO as its sole stockholder.

Item 13.    Exhibits

            See Exhibit Index.

Item 14.    Principal Accountant Fees and Services

The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial  statements of the  Partnership for 2005. The aggregate fees
billed  for  services  rendered  by  Ernst & Young  LLP for  2004  and  2003 are
described below.

Audit Fees. Fees for audit services  totaled  approximately  $29,000 and $41,000
for 2004 and 2003,  respectively.  Fees for audit services also include fees for
the reviews of the Partnership's Quarterly Reports on Form 10-QSB.

Tax Fees.  Fees for tax services  totaled  approximately  $8,000 and $12,000 for
2004 and 2003, respectively.


<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


                                    MULTI-BENEFIT REALTY FUND '87-1


                                    By:   CONCAP EQUITIES, INC.
                                          General Partner


                                    By:   /s/Martha L. Long
                                          Martha L. Long
                                          Senior Vice President

                                          /s/Stephen B. Waters
                                    By:   Stephen B. Waters
                                          Vice President

                                    Date: March 18, 2005


In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.


/s/Harry G. Alcock            Director and Executive        Date: March 18, 2005
Harry G. Alcock               Vice President


/s/Martha L. Long             Director and Senior Vice      Date: March 18, 2005
Martha L. Long                President


/s/Stephen B. Waters          Vice President                Date: March 18, 2005
Stephen B. Waters





<PAGE>



                                  EXHIBIT INDEX


Exhibit

 3.1              Agreement of Limited Partnership, incorporated by reference to
                  Exhibit A-5 to the Prospectus of the Registrant dated December
                  10, 1986 as filed with the Commission  pursuant to Rule 424(b)
                  under the Act.

 3.2              Certificate   of  Limited   Partnership   (incorporated   by
                  reference to Registration  Statement of Registrant (File No.
                  3-38908) filed December 10, 1986, as amended to date).

 4                Depositary   Agreement   (Incorporated   by   reference   to
                  Registration  Statement  of  Registrant  (File No.  33-8908)
                  filed December 10, 1986, as amended by date).

10.22             Multifamily  Note dated August 31, 2000, by and between Hunt
                  Club  Associates,  Ltd., a Texas  limited  partnership,  and
                  ARCS  Commercial  Mortgage Co.,  L.P., a California  limited
                  partnership relating to Hunt Club Apartments.  (Incorporated
                  by reference to the Quarterly  Report on Form 10-QSB for the
                  quarter ended September 30, 2000.)

10.24             Purchase and Sale Contract between  Multi-Benefit  Realty Fund
                  '87-1  and  RDO   Properties,   LLC,  dated  August  7,  2003.
                  (Incorporated  by reference to the Current  Report on Form 8-K
                  dated October 28, 2003.)

10.25             Amendment to Purchase and Sale Contract between  Multi-Benefit
                  Realty Fund '87-1 and RDO Properties, LLC, dated September 11,
                  2003. (Incorporated by reference to the Current Report on Form
                  8-K dated October 28, 2003.)

10.26             Second   Amendment  to  Purchase  and  Sale  Contract  between
                  Multi-Benefit Realty Fund '87-1 and RDO Properties, LLC, dated
                  September 18, 2003.  (Incorporated by reference to the Current
                  Report on Form 8-K dated October 28, 2003.)

10.27             Third   Amendment  to  Purchase  and  Sale  Contract   between
                  Multi-Benefit Realty Fund '87-1 and RDO Properties, LLC, dated
                  October 10,  2003.  (Incorporated  by reference to the Current
                  Report on Form 8-K dated October 28, 2003.)

31.1              Certification  of  equivalent  of  Chief  Executive  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

31.2              Certification  of  equivalent  of  Chief  Financial  Officer
                  pursuant     to     Securities     Exchange     Act    Rules
                  13a-14(a)/15d-14(a),  as Adopted  Pursuant to Section 302 of
                  the Sarbanes-Oxley Act of 2002.

32.1              Certification   Pursuant  to  18  U.S.C.  Section  1350,  as
                  Adopted  Pursuant to Section 906 of the  Sarbanes-Oxley  Act
                  of 2002.






<PAGE>




Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have reviewed this annual report on Form 10-KSB of Multi-Benefit  Realty
      Fund '87-1;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  March 18, 2005

                                    /s/Martha L. Long
                                    Martha L. Long
                                    Senior Vice President of ConCap
                                    Equities, Inc., equivalent of
                                    the chief executive officer of
                                    the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have reviewed this annual report on Form 10-KSB of Multi-Benefit  Realty
      Fund '87-1;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.    The  small  business  issuer's  other  certifying  officer(s)  and I  have
      disclosed,  based on our most recent  evaluation of internal  control over
      financial reporting, to the small business issuer's auditors and the audit
      committee of the small  business  issuer's  board of directors (or persons
      performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  March 18, 2005

                                    /s/Stephen B. Waters
                                    Stephen B. Waters
                                    Vice President of ConCap
                                    Equities, Inc., equivalent of
                                    the chief financial officer of
                                    the Partnership


<PAGE>


Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002



In connection with the Annual Report on Form 10-KSB of Multi-Benefit Realty Fund
'87-1 (the  "Partnership"),  for the year ended  December 31, 2004 as filed with
the Securities and Exchange Commission on the date hereof (the "Report"), Martha
L. Long, as the equivalent of the Chief  Executive  Officer of the  Partnership,
and Stephen B. Waters,  as the equivalent of the Chief Financial  Officer of the
Partnership,  each hereby  certifies,  pursuant to 18 U.S.C.  Section  1350,  as
adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002, that, to the
best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  March 18, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  March 18, 2005


This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.