March 20, 2000



United States

Securities and Exchange Commission
Washington, D.C.  20549


RE:   Multi-Benefit Realty Fun '87 - 1
      Form 10-KSB
      File No. 0-16684


To Whom it May Concern:

The  accompanying  Form 10-KSB for the year ended  December 31, 1999 describes a
change in the method of  accounting to  capitalize  exterior  painting and major
landscaping,   which  would  have  been  expensed  under  the  old  policy.  The
Partnership believes that this accounting principle change is preferable because
it  provides a better  matching  of  expenses  with the  related  benefit of the
expenditures and it is consistent with industry practice and the policies of the
General Partner.

Please do not hesitate to contact the undersigned with any questions or comments
that you might have.

Very truly yours,




Stephen Waters
Real Estate Controller


<PAGE>



                  FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER

                               SECTION 13 OR 15(d)

                                   Form 10-KSB

(Mark One)
[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934 [No Fee Required]

                    For the fiscal year ended December 31, 1999

[ ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
      OF 1934 [No Fee Required]

                For the transition period from _________to _________

                         Commission file number 0-16684

                          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)

                      Issuer's telephone number (864) 239-1000

           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 [ ]

State issuer's revenues for its most recent fiscal year.  $5,408,000

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, 1999. 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


                                     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").

The  Registrant  is engaged in the business of operating and holding real estate
properties for  investment.  By the end of the  Partnership's  fiscal year 1988,
three apartment  properties had been acquired.  The Registrant  continues to own
and operate these  properties.  See "Item 2.  Description  of  Properties".  The
Partnership  Agreement provides that the Partnership is to terminate on December
31, 2036, unless terminated prior to such date.

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").  Two  classes of Units ("A"  Units and "B"  Units,  herein so  called),
entitled  to  different  rights  and  priorities  as to cash  distributions  and
partnership  allocations,  were offered.  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  General  Partner  of  the  Partnership
intended  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.
At the end of the current fiscal year, the "B" Units  represented  approximately
44% of the total  amount of the Units  sold.  The General  Partner is  currently
considering several alternative  procedures to conform the unit allocations more
closely to the intended  investment  objectives.  The General Partner intends to
continue such consideration,  but has not yet determined a feasible alternative.
The  corporate  limited  partner  of the  Partnership  was  Multi-Benefit  '87-1
Depositary  Corporation,  an affiliate  of the General  Partner.  The  corporate
limited  partner  served as  depositary  for the Units  pursuant to a Depositary
Agreement  entered  into  with the  Partnership.  The sale of  Units  closed  on
September 30, 1988,  with 172,436 Units sold at $100 each, or gross  proceeds of
approximately $17,244,000 to the Partnership.  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 Units 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 (see "Transfer of
Control" below).

The Registrant has no employees. Property management and administrative services
are  provided  by the  General  Partner  and by agents  retained  by the General
Partner.  An affiliate of the General  Partner has been  providing such property
management services.

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 properties.  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 the
apartments at the Partnership's properties 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.

Both  the  income  and  expenses  of  operating  the  properties  owned  by  the
Partnership are subject to factors outside of the Partnership's control, such as
changes in the supply and demand for similar  properties  resulting from various
market  conditions,  increases/decreases  in unemployment or population  shifts,
changes in the availability of permanent mortgage  financing,  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.

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 properties
owned by the Partnership.

The Partnership  monitors its properties 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 "Management's
Discussion and Analysis or Plan of Operations" included in "Item 6" of this Form
10-KSB.


<PAGE>


Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia  Financial Group, Inc. and IPT merged into AIMCO, a
publicly  traded real estate  investment  trust,  with AIMCO being the surviving
corporation (the "Insignia Merger"). As a result, AIMCO ultimately acquired 100%
ownership interest in the General Partner.  The General Partner does not believe
that this  transaction has had or will have a material effect on the affairs and
operations of the Partnership.

Item 2.     Description of Properties

The following table sets forth the Partnership's investments in properties:

                                  Date of
Property                          Purchase    Type of Ownership           Use

Carlin Manor Apartments             11/87   Fee ownership subject to   Apartment
  Columbus, Ohio                            first mortgage             278 units

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

Shadow Brook Apartments             05/87   Fee ownership subject to   Apartment
  West Valley City, Utah                    first mortgage             300 units

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

Schedule of Properties

Set forth below for each of the  Partnership's  properties 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>       <C>

Carlin Manor Apartments     $ 7,285      $ 4,083      5-30     S/L        $ 5,326
Hunt Club Apartments          7,324        4,122      5-30     S/L          4,075
Shadow Brook Apartments      10,878        4,788      5-30     S/L          6,235

  Total                     $25,487      $12,993                          $15,636

</TABLE>


See  "Note A" to the  consolidated  financial  statements  included  in "Item 7.
Financial Statements" for a description of the Partnership's depreciation policy
and "Note K - Change in Accounting Principle".

Schedule of Property Indebtedness

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Registrant's properties.

<TABLE>
<CAPTION>

                       Principal                                         Principal
                       Balance At      Stated                             Balance
                      December 31,    Interest    Period    Maturity       Due At
Property                  1999          Rate     Amortized    Date      Maturity (2)
                     (in thousands)                                    (in thousands)
<S>                    <C>             <C>          <C>       <C>        <C>

Carlin Manor
  1st mortgage          $ 2,500        7.33%        (1)       11/03       $ 2,500

Hunt Club
  1st mortgage            3,637        8.30%      84 mo.      10/00         3,575

Shadow Brook
  1st mortgage            6,000        7.33%        (1)       11/03         6,000

                        $12,137                                           $12,075


(1)   Payments consist of interest only.

(2)   See "Item 7. Financial  Statements - Note C" for information  with respect
      to the  Partnership's  ability to prepay  these  loans and other  specific
      details about the loans.

</TABLE>

Schedule of Rental Rate and Occupancy

Average annual rental rates and occupancy for 1999 and 1998 for each property:

                                     Average Annual              Average Annual
                                      Rental Rate                   Occupancy
                                       (per unit)
Property                          1999             1998         1999        1998

Carlin Manor                     $6,129          $5,847          93%         92%
Hunt Club                         7,720           7,504          93%         95%
Shadow Brook                      7,187           7,156          98%         96%

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


<PAGE>


Schedule of Real Estate Taxes and Rates

Real estate taxes and rates in 1999 for each property were:

                                                1999            1999
                                               Billing          Rate
                                           (in thousands)

       Carlin Manor                             $111            5.58%
       Hunt Club                                 146            8.99%
       Shadow Brook                               89            1.48%

Capital Improvements

Carlin Manor

During the year ended December 31, 1999, the Partnership expended  approximately
$385,000 for capital improvements at Carlin Manor consisting primarily of carpet
and flooring replacement,  structural  improvements,  air conditioning upgrades,
swimming pool and recreational facility  improvements,  electrical upgrades, new
appliances, and other building enhancements. These improvements were funded from
operating  cash flow and  replacement  reserves.  The  Partnership  is currently
evaluating the capital  improvement needs of the property for the upcoming year.
The  minimum  amount to be  budgeted is expected to be $300 per unit or $83,400.
Additional  improvements  may be  considered  and will  depend  on the  physical
condition of the property as well as replacement  reserves and anticipated  cash
flow generated by the property.

Hunt Club

During the year ended December 31, 1999, the Partnership expended  approximately
$319,000  for capital  improvements  and  replacements  at Hunt Club  consisting
primarily of carpet and flooring replacement,  plumbing,  electrical and heating
upgrades,  major  landscaping,  fencing and  replacement of curbs and sidewalks.
These  improvements  were  funded  from  operating  cash  flow  and  replacement
reserves.  The Partnership is currently evaluating the capital improvement needs
of the  property  for the upcoming  year.  The minimum  amount to be budgeted is
expected  to be  $300  per  unit  or  $60,000.  Additional  improvements  may be
considered and will depend on the physical  condition of the property as well as
replacement reserves and anticipated cash flow generated by the property.

Shadow Brook

During the year ended December 31, 1999, the Partnership expended  approximately
$372,000 for capital  improvements  and  replacements at Shadow Brook consisting
primarily of roof  replacements,  carpet and flooring  replacement,  parking lot
upgrades,   recreational  facility  upgrades,  major  landscaping,   appliances,
plumbing  enhancements,  and structural  improvements.  These  improvements were
funded from operating cash flow and  replacement  reserves.  The  Partnership is
currently  evaluating  the capital  improvement  needs of the  property  for the
upcoming year. The minimum amount to be budgeted is expected to be $300 per unit
or $90,000.  Additional  improvements  may be considered  and will depend on the
physical  condition  of  the  property  as  well  as  replacement  reserves  and
anticipated cash flow generated by the property.

The  capital  improvements  planned  for  the  year  2000  at the  Partnership's
properties will be made only to the extent of cash available from operations and
Partnership  reserves. To the extent that such budgeted capital improvements are
completed,  the Registrant's  distributable  cash flow, if any, may be adversely
affected at least in the short term.

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. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   the  General  Partner  and  several  of  their   affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Item 7. Financial  Statements,  Note B - Transfer of Control").  The plaintiffs
seek monetary damages and equitable relief,  including  judicial  dissolution of
the  Partnership.  On June 25, 1998, the General  Partner filed a motion seeking
dismissal of the action.  In lieu of  responding to the motion,  the  plaintiffs
have filed an amended  complaint.  The General  Partner  filed  demurrers to the
amended  complaint  which were heard February  1999.  Pending the ruling on such
demurrers,  settlement  negotiations commenced. On November 2, 1999, the parties
executed and filed a Stipulation  of  Settlement,  settling  claims,  subject to
final court approval,  on behalf of the Partnership and all limited partners who
own units as of November 3, 1999.  Preliminary  approval of the  settlement  was
obtained on November 3, 1999 from the Superior Court of the State of California,
County of San Mateo,  at which time the Court set a final  approval  hearing for
December  10, 1999.  Prior to the  December 10, 1999 hearing the Court  received
various  objections  to the  settlement,  including a  challenge  to the Court's
preliminary  approval  based  upon  the  alleged  lack  of  authority  of  class
plaintiffs'  counsel to enter the settlement.  On December 14, 1999, the General
Partner  and  its  affiliates   terminated  the  proposed  settlement.   Certain
plaintiffs have filed a motion to disqualify some of the plaintiffs'  counsel in
the action.  The General Partner does not anticipate that costs  associated with
this case will be material to the Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.

Item 4.     Submission of Matters to a Vote of Partners

During the quarter ended  December 31, 1999, 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 Registrant's Units of Depository Receipts and Related
            Security Holder Matters

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

(B)   Title of Class:                     Number of Record Unit holders:

      Units of Depositary Receipts

                           A Units        405 as of December 31, 1999
                           B Units        549 as of December 31, 1999

      The  Partnership  offered and sold 172,436 "A" and "B" Units.  At December
      31,  1999,  the  Partnership  had  96,284  "A" Units and  75,152 "B" Units
      outstanding.  Affiliates  of the  General  Partner  held  59,995 "A" Units
      (62.31%) and 37,548 "B" Units (49.96%) at December 31, 1999.

(C)   The  following  table  sets  forth  the  distributions   declared  by  the
      Partnership  for the years ended  December 31, 1998 and 1999 (see "Item 6.
      Management's  Discussion  and  Analysis  or Plan of  Operation"  for  more
      details).

                                                 Distributions

                                                             Per Limited
                                        Aggregate       Partnership "A" Unit

       01/01/98 - 12/31/98             $594,000 (1)             $6.11

       01/01/99 - 12/31/99             $427,000 (1)             $4.39

(1)   Distribution was made from cash from operations.

Future cash  distributions  will depend on the levels of net cash generated from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,  refinancings, and/or property sales. The Partnership's distribution
policy is reviewed on a semi-annual 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 the
year 2000 or subsequent periods. See "Item 2. Description of  Properties-Capital
Improvements" for information  relating to anticipated  capital  expenditures at
the properties.

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender offers,  AIMCO and its  affiliates  currently own 59,995 "A" and
37,548 "B" limited partnership units in the Partnership  representing 62.31% and
49.96% of the outstanding units, respectively.  It is possible that AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the Units it acquired in a manner  favorable
to the interest of the General  Partner  because of their  affiliation  with the
General Partner.

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

The  matters  discussed  in this Form  10-KSB  contain  certain  forward-looking
statements  and  involve  risks and  uncertainties  (including  changing  market
conditions, competitive and regulatory matters, etc.) detailed in the disclosure
contained  in this Form 10-KSB and the other  filings  with the  Securities  and
Exchange  Commission made by the Registrant from time to time. The discussion of
the Registrant's business and results of operations,  including  forward-looking
statements  pertaining to such matter, does not take into account the effects of
any changes to the Registrant's business and results of operation.  Accordingly,
actual   results   could  differ   materially   from  those   projected  in  the
forward-looking  statements as a result of a number of factors,  including those
identified herein.

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

Results of Operations

The  Partnership's  net  income  as  reported  in  the  consolidated   financial
statements  for the year ended  December 31, 1999,  was  approximately  $582,000
compared to net income of  approximately  $246,000 for the year ending  December
31,  1998.  The increase in net income is  attributable  to an increase in total
revenues and a decrease in total  expenses.  The increase in total  revenues was
due to an increase in rental  income and the gain on sale of  equipment in 1999.
Rental income  increased  due to increases in average  rental rates at all three
properties and an increase in occupancy at Shadow Brook and Carlin Manor,  which
more than offset a decrease in occupancy at Hunt Club and  increased  concession
costs and bad debt expense at all the properties.  The gain on sale of equipment
was due to the sale of cable  equipment  at Shadow  Brook  during the year ended
December 31, 1999.

Total expenses decreased  primarily due to a decrease in operating expenses and,
to a lesser  extent,  a decrease in property tax expense.  These  decreases were
partially offset by an increase in general and administrative expense. Operating
expenses  decreased as a result of decreases in maintenance  expense,  insurance
expense and utilities.  Maintenance  expense  decreased at all three  investment
properties for the year ended December 31, 1999 due to the completion of parking
lot repairs during 1998, the completion of various projects performed to enhance
the appearance of the properties during the year ended December 31, 1998 and the
change in accounting  policy discussed below. The decrease in insurance  expense
is due to lower  premiums as a result of a change in insurance  carriers late in
1998.  Utility expense  decreased as a result of decreased gas charges at Carlin
Manor.  The  decrease  in  property  tax  expense is due to the receipt of a tax
refund on a prior tax payment for Hunt Club.

General and administrative  expense increased primarily due to the settlement of
a lawsuit as disclosed in the Partnership's  Form 10-KSB at December 31, 1998 as
well as  professional  fees  associated  with  managing  the  Partnership.  This
increase  was  partially   offset  by  reduced   management   fees  relating  to
distributions from operations.  Included in general and administrative  expenses
at both December 31, 1999 and 1998 are management  reimbursements to the General
Partner allowed under the Partnership Agreement.  In addition,  costs associated
with the  quarterly and annual  communications  with  investors  and  regulatory
agencies and the annual audit  required by the  Partnership  Agreement  are also
included.

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies  of the  General  Partner.  The  effect  of the  change  in 1999 was to
increase net income by approximately  $59,000 ($0.34 per limited partnership "A"
and "B" units).  The  cumulative  effect,  had this change been applied to prior
periods,  is not  material.  The  accounting  principle  change will not have an
effect on cash flow,  funds  available for  distribution  or fees payable to the
General Partner and affiliates.

As part of the ongoing  business plan of the  Partnership,  the General  Partner
monitors the rental market  environment of each of its investment  properties 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,  due to changing  market
conditions,  which  can  result  in the use of  rental  concessions  and  rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.

Liquidity and Capital Resources

At  December  31,  1999,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $2,280,000  compared to approximately  $1,291,000 at December 31,
1998. The net increase in cash and cash  equivalents for the year ended December
31, 1999 was  approximately  $989,000 from the prior year.  The increase in cash
and cash  equivalents  is due to  approximately  $2,020,000  of cash provided by
operating  activities which was partially  offset by  approximately  $954,000 of
cash used in  investing  activities  and  approximately  $77,000 of cash used in
financing  activities.  Cash used in investing activities consisted primarily of
property improvements and replacements  partially offset by net withdrawals from
escrow  accounts  maintained  by the  mortgage  lender.  Cash used in  financing
activities  consisted of principal  payments on the  mortgages  encumbering  the
Partnership's  properties.  The Partnership invests its working capital reserves
in money market 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  properties  to  adequately  maintain the physical
assets and other  operating  needs of the Registrant and to comply with Federal,
state, and local legal and regulatory requirements. The Partnership is currently
evaluating  the  capital  improvement  needs of each of its  properties  for the
upcoming year. The minimum amount to be budgeted for the Partnership is expected
to be $300 per unit or $233,400.  Additional  improvements may be considered and
will depend on the physical  condition  of the  property as well as  replacement
reserves and anticipated cash flow generated by the properties.

The  additional  capital  expenditures  for the year  2000 at the  Partnership's
properties will be made only to the extent of cash available from operations and
Partnership  reserves. To the extent that such budgeted 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  current assets are thought to be sufficient for any near-term
needs  (exclusive  of capital  improvements)  of the  Partnership.  The mortgage
indebtedness of approximately  $12,137,000 is amortized over varying periods and
requires  one  balloon  payment in October  2000 and two in November  2003.  The
General  Partner will attempt to refinance  and/or sell the properties  prior to
such  maturity  dates.  If the  properties  cannot be  refinanced  or sold for a
sufficient  amount,  the Partnership  will risk losing such  properties  through
foreclosure.

During the year ended December 31, 1999 the Partnership  declared a distribution
from operations of approximately $427,000 of which approximately $423,000 ($4.39
per limited partnership "A" unit) was due to the "A" unit limited partners. This
distribution  was accrued at December 31, 1999 and paid in January 2000.  During
the year ended December 31, 1998, the Partnership paid a cash  distribution from
operations of approximately  $594,000 of which approximately $588,000 ($6.11 per
limited  partnership  "A" Unit) was paid to the "A" unit limited  partners.  The
Partnership's  distribution  policy is reviewed on a semi-annual  basis.  Future
cash  distributions  will  depend  on the  levels  of net  cash  generated  from
operations,   the  availability  of  cash  reserves,  and  the  timing  of  debt
maturities,  refinancings,  and/or  property  sales.  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
the year 2000 or subsequent periods.

Tender Offer

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender offers,  AIMCO and its  affiliates  currently own 59,995 "A" and
37,548 "B" limited partnership units in the Partnership  representing 62.31% and
49.96% of the outstanding units, respectively.  It is possible that AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the Units it acquired in a manner  favorable
to the interest of the General  Partner  because of their  affiliation  with the
General Partner.

Year 2000 Compliance

General Description

The Year 2000 issue is the result of computer  programs  being written using two
digits rather than four digits to define the applicable year. The Partnership is
dependent  upon the  General  Partner  and its  affiliates  for  management  and
administrative services ("Managing Agent"). Any of the Managing Agent's computer
programs or hardware that had  date-sensitive  software or embedded  chips might
have  recognized  a date using "00" as the year 1900  rather than the year 2000.
This  could  have  resulted  in a  system  failure  or  miscalculations  causing
disruptions of operations,  including, among other things, a temporary inability
to process  transactions,  send invoices,  or engage in similar normal  business
activities.

Computer Hardware, Software and Operating Equipment

In 1999,  the Managing  Agent  completed  all phases of its Year 2000 program by
completing  the  replacement  and repair of any  hardware or software  system or
operating  equipment that was not yet Year 2000 compliant.  The Managing Agent's
hardware  and software  systems and its  operating  equipment  are now Year 2000
compliant.  No  material  failure or  erroneous  results  have  occurred  in the
Managing Agent's computer  applications  related to the failure to reference the
Year 2000 to date.

Third Parties

To  date,  the  Managing  Agent  is not  aware of any  significant  supplier  or
subcontractor  (external agent) or financial institution of the Partnership that
has a Year 2000 issue that  would  have a material  impact on the  Partnership's
results of operations,  liquidity or capital  resources.  However,  the Managing
Agent  has no means of  ensuring  or  determining  the Year 2000  compliance  of
external  agents.  At this time, the Managing Agent does not believe that a Year
2000 issue of any  non-compliant  external agent will have a material  impact on
the Partnership's financial position or results of operations.

Costs

The total cost of the Managing Agent's Year 2000 project was approximately  $3.2
million and was funded from operating cash flows.

Risks Associated with the Year 2000

The Managing  Agent  completed all necessary  phases of its Year 2000 program in
1999,  and did not  experience  system or  equipment  malfunctions  related to a
failure to reference the Year 2000. The Managing  Agent or Partnership  have not
been  materially  adversely  effected by  disruptions  in the economy  generally
resulting from the Year 2000 issue.

At this  time,  the  Managing  Agent  does not  believe  that the  Partnership's
businesses,  results of  operations  or financial  condition  will be materially
adversely effected by the Year 2000 issue.

Contingency Plans Associated with the Year 2000

The  Managing  Agent has not had to implement  contingency  plans such as manual
workarounds or selecting new relationships for its banking or elevator operation
activities in order to avoid the Year 2000 issue.

Item 7.     Financial Statements

MULTI-BENEFIT REALTY FUND '87-1

LIST OF CONSOLIDATED FINANCIAL STATEMENTS


Report of Ernst & Young LLP, Independent Auditors

Consolidated Balance Sheet - December 31, 1999

Consolidated Statements of Operations - Years ended December 31, 1999 and 1998

Consolidated  Statements of Changes in Partners' (Deficit) Capital - Years ended
December 31, 1999 and 1998

Consolidated Statements of Cash Flows - Years ended December 31, 1999 and 1998

Notes to Consolidated Financial Statements


<PAGE>


                 Report of Ernst & Young LLP, Independent Auditors

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,  1999,  and the  related  consolidated
statements of operations,  changes in partners' (deficit) capital and cash flows
for each of the two years in the period ended December 31, 1999. 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 auditing standards generally accepted
in the 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 examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made  by the  Partnership's  management,  as  well  as  evaluating  the  overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the  consolidated  financial  position of Multi-Benefit
Realty Fund '87-1 at December  31,  1999,  and the  consolidated  results of its
operations  and its cash  flows  for each of the two years in the  period  ended
December 31, 1999, in conformity with accounting  principles  generally accepted
in the United States.

As discussed in Note K to the consolidated financial statements, the Partnership
changed its method of accounting to capitalize the cost of exterior painting and
major landscaping effective January 1, 1999.

                                                            /s/ERNST & YOUNG LLP

Greenville, South Carolina
February 24, 2000


<PAGE>




                           MULTI-BENEFIT REALTY FUND '87-1

                            CONSOLIDATED BALANCE SHEET
                          (in thousands, except unit data)

                                December 31, 1999
<TABLE>
<CAPTION>

Assets
<S>                                                          <C>            <C>

   Cash and cash equivalents                                                 $ 2,280
   Receivables and deposits                                                      330
   Restricted escrows                                                            243
   Other assets                                                                  205
   Investment properties (Notes C and G):
      Land                                                    $  1,742
      Buildings and related personal property                   23,745
                                                                25,487

      Less accumulated depreciation                            (12,993)       12,494
                                                                            $ 15,552

Liabilities and Partners' (Deficit) Capital

Liabilities

      Accounts payable                                                       $   222
      Tenant security deposit liabilities                                         87
      Accrued property taxes                                                     336
      Distribution payable                                                       427
      Other liabilities                                                          422
      Mortgage notes payable (Note C)                                         12,137

Partners' (Deficit) Capital

   General Partner                                             $ (134)
   Limited Partner "A" Unit holders -
      96,284 units issued and outstanding                       (2,141)
   Limited Partner "B" Unit holders -
      75,152 units issued and outstanding                        4,196         1,921
                                                                            $ 15,552

</TABLE>

           See Accompanying Notes to Consolidated Financial Statements



<PAGE>


                          MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                          (in thousands, except unit data)


<TABLE>
<CAPTION>

                                                           Years Ended December 31,
                                                              1999         1998
<S>                                                        <C>           <C>

Revenues:
   Rental income                                            $ 4,997      $ 4,885
   Gain on sale of equipment                                    100           --
   Other income                                                 311          310
       Total revenues                                         5,408        5,195


Expenses:
   Operating                                                  2,176        2,319
   General and administrative                                   287          248
   Depreciation                                               1,059        1,037
   Interest                                                     991          995
   Property taxes                                               313          350

      Total expenses                                          4,826        4,949


Net income (Note D)                                          $  582       $  246


Net income allocated to general partner (1%)                 $    6       $    2
Net income allocated to limited partners (99%)                  576          244

                                                             $  582       $  246

Net income per limited partnership "A" and "B" units         $ 3.36       $ 1.42

Distributions per limited partnership "A" units              $ 4.39       $ 6.11

</TABLE>

           See Accompanying Notes to Consolidated Financial Statements



<PAGE>


                          MULTI-BENEFIT REALTY FUND '87-1

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


<TABLE>
<CAPTION>
                                                                              Total
                                                                            Partners'
                                         General       Limited Partners     (Deficit)
                                         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, 1999 and
  December 31, 1998                           --       96,284     75,152     171,436

Partners' (deficit) capital at
  December 31, 1997                       $ (132)     $(1,593)   $ 3,839     $ 2,114

Distribution to partners                      (6)        (588)        --        (594)

Net income for the year ended
  December 31, 1998                            2          137        107         246

Partners' (deficit) capital at
  December 31, 1998                         (136)      (2,044)     3,946       1,766

Distribution to partners                      (4)        (423)        --        (427)

Net income for the year ended
  December 31, 1999                            6          326        250         582

Partners' (deficit) capital at
  December 31, 1999                       $ (134)     $(2,141)   $ 4,196     $ 1,921

</TABLE>

           See Accompanying Notes to Consolidated Financial Statements


                          MULTI-BENEFIT REALTY FUND '87-1

                      CONSOLDIATED STATEMENTS OF CASH FLOWS

                                   (in thousands)

<TABLE>
<CAPTION>

                                                              Years Ended December 31,
                                                                  1999        1998

Cash flows from operating activities:
<S>                                                            <C>            <C>

  Net income                                                     $  582        $ 246
  Adjustments to reconcile net income to net
   cash provided by operating activities:
   Depreciation                                                   1,059        1,037
   Amortization of loan costs                                        64           61
   (Gain) loss on disposal of property                             (100)          23
   Change in accounts:
      Receivables and deposits                                       87          (50)
      Other assets                                                  (35)          13
      Accounts payable                                              143          (26)
      Tenant security deposit liabilities                           (24)          (7)
      Accrued property taxes                                         61            4
      Other liabilities                                             183           16

          Net cash provided by operating activities               2,020        1,317

Cash flows from investing activities:

  Property improvements and replacements                         (1,076)        (507)
  Net withdrawals from restricted escrows                           122            7

          Net cash used in investing activities                    (954)        (500)


Cash flows from financing activities:

  Payments on mortgage notes payable                                (77)         (71)
  Distributions to partners                                          --         (594)

          Net cash used in financing activities                     (77)        (665)

Net increase in cash and cash equivalents                           989          152

Cash and cash equivalents at beginning of year                    1,291        1,139

Cash and cash equivalents at end of year                        $ 2,280      $ 1,291

Supplemental disclosure of cash flow information:

  Cash paid for interest                                        $   928      $   935

Supplemental disclosure of non-cash activity
  Distribution payable                                          $   427      $    --


</TABLE>

           See Accompanying Notes to Consolidated Financial Statements


                          MULTI-BENEFIT REALTY FUND '87-1

                     Notes to Consolidated Financial Statements

                                December 31, 1999

Note A - Organization and 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 date on
which impound  requirements  were met. The Partnership  operates three apartment
properties located in the Mid-west and West. ConCap Equities, Inc. ("CEI" or the
"General  Partner")  is a  subsidiary  of Apartment  Investment  and  Management
Company  ("AIMCO")  (see "Note B - Transfer  of  Control").  The  directors  and
officers of the General Partner also serve as executive  officers of AIMCO.  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  Units  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 the
consolidated  partnership  is the General  Partner.  The General  Partner may be
removed  as  the  general  partner  of  the  consolidated   partnership  by  the
Registrant;   therefore,   the   consolidated   partnership  is  controlled  and
consolidated by the Registrant.  All significant  interentity balances have been
eliminated.

Use of Estimates

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

Partners' (Deficit) 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  ("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 income per
limited  partnership  unit for both  1999  and 1998 was  computed  as 99% of net
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" 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 and money market accounts.  At certain times,
the amount of cash deposited at a bank may exceed the limit on insured deposits.

Tenant Security Deposits

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

Escrows for Taxes

Escrows for Hunt Club are held by the  mortgagor.  Escrows for Carlin  Manor and
Shadow Brook are held by the Partnership.  All escrowed funds are designated for
the  payment of real  estate  taxes and  insurance.  The  escrows  for Hunt Club
totaling  approximately  $124,000 are included in receivables and deposits.  The
escrows for Carlin Manor and Shadow  Brook  totaling  approximately  $69,000 are
included in cash and cash equivalents.

Restricted Escrows

In relation to the mortgages at all three properties,  the mortgage lenders have
required a "replacement reserve" for certain capital  improvements.  At December
31, 1999, the balance was approximately $243,000.

Investment Properties

Investment  properties  consist of three  apartment  complexes and are stated at
cost.  Acquisition fees are capitalized as a cost of real estate.  In accordance
with Statement of Financial  Accounting  Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed
Of," 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, 1999 and 1998.

Depreciation

Depreciation is provided by the straight-line method over the estimated lives of
the investment properties and related personal property.  For Federal income tax
purposes,  the  accelerated  cost recovery  method is used (1) for real property
over 18 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.

Effective  January 1, 1999 the  Partnership  changed its method of accounting to
capitalize the costs of exterior painting and major landscaping (Note K).

Loan Costs

Loan  costs  of  approximately   $409,000  less   accumulated   amortization  of
approximately $246,000 are included in other assets and are being amortized on a
straight-line basis over the life of the respective loans.

Leases

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership  recognizes  income as earned on leases.  The General  Partner's
policy is to offer  rental  concessions  during  particularly  slow months or in
response  to  heavy  competition  from  other  similar  complexes  in the  area.
Concessions are charged against rental income as incurred.

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. It also establishes standards for related
disclosures about products and services,  geographic areas, and major customers.
See "Note I" for required disclosure.

Advertising

Advertising  costs of  approximately  $126,000  and $108,000 for the years ended
December 31, 1999 and 1998, respectively, are charged to expense as incurred and
are included in operating expenses.

Fair Value of Financial Statements

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 fair  value of the
Partnership's  long term debt, after  discounting the scheduled loan payments to
maturity  based on  borrowing  rates  currently  available  to the  Partnership,
approximates its carrying amount.

Note B - Transfer of Control

Pursuant  to a series  of  transactions  which  closed  on  October  1, 1998 and
February 26, 1999,  Insignia Financial Group, Inc. and Insignia Properties Trust
merged into AIMCO, a publicly traded real estate  investment  trust,  with AIMCO
being the surviving  corporation  (the "Insignia  Merger").  As a result,  AIMCO
acquired 100% ownership  interest in the General  Partner.  The General  Partner
does not believe that this transaction has had or will have a material effect on
the affairs and operations of the Partnership.

Note C - Mortgage Notes Payable

The principle terms of mortgage notes payable are as follows:

<TABLE>
<CAPTION>

                        Principal      Monthly                             Principal
                       Balance At      Payment      Stated                  Balance
                      December 31,    Including    Interest   Maturity      Due At
Property                  1999         Interest      Rate       Date       Maturity
                            (in thousands)                              (in thousands)
<S>                      <C>             <C>       <C>       <C>           <C>

Carlin Manor
  1st mortgage           $ 2,500         $ 15       7.33%     11/01/03      $ 2,500

Hunt Club
  1st mortgage             3,637           32       8.30%     10/01/00        3,575

Shadow Brook
  1st mortgage             6,000           37       7.33%     11/01/03        6,000

                         $12,137         $ 84                               $12,075
</TABLE>

The mortgage  notes  payable are  non-recourse  and are secured by pledge of the
respective  apartment  properties  and by pledge of revenues from the respective
apartment  properties.  Certain of the notes  require  prepayment  penalties  if
repaid  prior to  maturity  and  prohibit  resale of the  properties  subject to
existing indebtedness.

Scheduled  principal  payments  of the  mortgage  notes  payable  subsequent  to
December 31, 1999 are as follows (in thousands):

                               2000             $ 3,637
                               2001                  --
                               2002                  --
                               2003               8,500
                                                $12,137

Note D - 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 income and Federal  taxable
income (in thousands, except per unit data):

                                              1999         1998

Net income as reported                        $ 582        $ 246
Add (deduct)
  Write-downs of fixed asset values              --           23
  Depreciation differences                      (15)          41
  Change in prepaid rental                       18           27
  Other                                          (4)          40

Federal taxable income                        $ 581        $ 377

Federal taxable income per limited
  partnership unit                           $ 3.36       $ 2.18


The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and  liabilities  (in  thousands) as of December
31, 1999:

 Net assets as reported                        $ 1,921
 Land and buildings                              2,277
 Accumulated depreciation                          865
 Syndication fees                                1,975
 Other                                             175

 Net assets - tax basis                        $ 7,213


<PAGE>


Note E - Related Party Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii) for  reimbursement of certain expenses  incurred by affiliates
on  behalf of the  Partnership.  The  following  transactions  with the  General
Partner  and/or its  affiliates  were  incurred  during  each of the years ended
December 31, 1999 and 1998 (in thousands):

                                                   1999        1998

Property management fees (included in
   operating expenses)                            $ 266        $ 260
Reimbursement for services of affiliates
   (included in operating and general and
   administrative expenses, and investment
   properties)                                      105          113
Partnership management fees (included in
   general and administrative expense)               38           53


During the years ended  December  31, 1999 and 1998,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's  properties  as  compensation  for providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $266,000 and
$260,000 for the years ended December 31, 1999 and 1998, respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative expenses amounting to approximately $105,000 and $113,000 for the
years ended December 31, 1999 and 1998, respectively.

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.  These fees are  included  in general  and
administrative expenses. A fee of approximately $53,000 was paid during the year
ended  December 31, 1998. A fee of  approximately  $38,000 was earned during the
year ended December 31, 1999 and paid in January 2000.

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender offers,  AIMCO and its  affiliates  currently own 59,995 "A" and
37,548 "B" limited partnership units in the Partnership  representing 62.31% and
49.96% of the outstanding units, respectively.  It is possible that AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the Units it acquired in a manner  favorable
to the interest of the General  Partner  because of their  affiliation  with the
General Partner.

Note F - Commitments

The  Partnership is required by the  Partnership  Agreement to maintain  working
capital reserves of not less than 5% of Net Invested Capital,  as defined in the
Agreement.  In the event  expenditures  are made from  this  reserve,  operating
revenue  shall be allocated to such reserve to the extent  necessary to maintain
the foregoing  level.  Reserves,  including cash and cash  equivalents  totaling
approximately  $2,280,000,  exceeded the reserve  requirement  of  approximately
$759,000 at December 31, 1999.

Note G - Real Estate and Accumulated Depreciation

                                                  Initial Cost
                                                 To Partnership
                                                 (in thousands)

<TABLE>
<CAPTION>

                                                         Buildings       Net Cost
                                                        and Related     Capitalized
                                                         Personal      Subsequent to
Description                  Encumbrances      Land      Property       Acquisition
                            (in thousands)                            (in thousands)

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

Carlin Manor Apartments        $ 2,500       $   408      $ 6,582         $   295
Hunt Club Apartments             3,637           485        5,673           1,166
Shadow Brook Apartments          6,000           961        8,263           1,654

          Totals               $12,137       $ 1,854      $20,518         $ 3,115

</TABLE>


                 Gross Amount At Which
                        Carried
                  At December 31, 1999
                     (in thousands)
                       Buildings
                      And Related

<TABLE>
<CAPTION>

                       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>

Carlin Manor   $ 295    $ 6,990   $ 7,285     $ 4,083       Phase I     11/87      5-30
                                                              1967
                                                            Phase II
                                                              1972

Hunt Club        485      6,839     7,324       4,122         1979      05/87      5-30
Shadow Brook     962      9,916    10,878       4,788         1985      05/87      5-30

Totals        $1,742    $23,745   $25,487     $12,993

</TABLE>

Reconciliation of "Real Estate and Accumulated Depreciation"

                                              Years Ended December 31,
                                                 1999          1998
                                                    (in thousands)
Real Estate

Balance at beginning of year                    $24,411       $23,943
    Property improvements                         1,076           507
    Disposals of property                            --           (39)
 Balance at end of year                         $25,487       $24,411

Accumulated Depreciation

Balance at beginning of year                    $11,934       $10,913
    Additions charged to expense                  1,059         1,037
    Disposals of property                            --           (16)

Balance at end of year                          $12,993       $11,934

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  1999 and 1998,  is  approximately  $27,764,000  and  $26,688,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December 31, 1999 and 1998, is  approximately  $12,128,000  and  $11,053,000,
respectively.

Note H - Distributions

During  the  year  ended  December  31,  1998,  the  Partnership   paid  a  cash
distribution  from operations of approximately  $594,000 of which  approximately
$588,000  ($6.11  per  limited  partnership  "A"  Unit) was paid to the "A" unit
limited  partners.  During the year ended  December  31, 1999,  the  Partnership
declared a cash distribution from operations of approximately  $427,000 of which
approximately  $423,000 ($4.39 per limited partnership "A" Units) was due to the
"A" Unit limited  partners.  This  distribution was accrued at December 31, 1999
and paid in January 2000.

Note I - Segment Information

Description  of the types of products  and  services  from which the  reportable
segment derives its revenues:

The  Partnership  has  one  reportable  segment:   residential  properties.  The
Partnership's   residential   property   segment  consists  of  three  apartment
complexes,  one each in Ohio, Indiana, and Utah. The Partnership rents apartment
units to people for terms that are typically twelve months or less.

Measurement of segment profit or loss:

The  Partnership  evaluates  performance  based on segment  profit (loss) before
depreciation.  The accounting policies of the reportable segment are the same as
those described in the summary of significant accounting policies.

Factors management used to identify the Partnership's reportable segment:

The  Partnership's  reportable  segment  consists of investment  properties that
offer similar products and services.  Although each of the investment properties
are  managed  separately,  they have been  aggregated  into one  segment as they
provide services with similar types of products and customers.

Segment  information  for the years 1999 and 1998 is shown in the tables  below.
The "Other" column includes Partnership  administration related items and income
and expense not allocated to the reportable segment.

                 1999                   Residential     Other      Totals
                                                   (in thousands)
Rental income                             $ 4,997       $ --      $ 4,997
Gain on sale of equipment                     100           --        100
Other income                                  258           53        311
Interest expense                              991           --        991
Depreciation                                1,059           --      1,059
General and administrative expense             --          287        287
Segment profit (loss)                         816         (234)       582
Total assets                               13,926        1,626     15,552
Capital expenditures for investment
  properties                                1,076           --      1,076

                 1998                    Residential    Other      Totals
                                                  (in thousands)
Rental income                              $ 4,885       $ --     $ 4,885
Other income                                   262          48        310
Interest expense                               995          --        995
Depreciation                                 1,037          --      1,037
General and administrative expense              --         248        248
Segment profit (loss)                          446        (200)       246
Total assets                                13,589       1,095     14,684
Capital expenditures for investment
  properties                                   507          --        507

Note J - 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. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs  named as defendants,  among others,
the   Partnership,   the  General  Partner  and  several  of  their   affiliated
partnerships  and corporate  entities.  The action  purports to assert claims on
behalf of a class of limited  partners and derivatively on behalf of a number of
limited  partnerships  (including  the  Partnership)  which are named as nominal
defendants,  challenging  the  acquisition  by Insignia  Financial  Group,  Inc.
("Insignia")  and  entities  which  were,  at one time,  affiliates  of Insignia
("Insignia  Affiliates") of interests in certain general partner entities,  past
tender offers by Insignia  Affiliates to acquire limited  partnership units, the
management of partnerships  by Insignia  Affiliates and the Insignia Merger (see
"Note B - Transfer  of  Control").  The  plaintiffs  seek  monetary  damages and
equitable relief, including judicial dissolution of the Partnership. On June 25,
1998,  the General  Partner filed a motion seeking  dismissal of the action.  In
lieu  of  responding  to the  motion,  the  plaintiffs  have  filed  an  amended
complaint.  The General Partner filed  demurrers to the amended  complaint which
were heard  February  1999.  Pending  the ruling on such  demurrers,  settlement
negotiations  commenced.  On November 2, 1999, the parties  executed and filed a
Stipulation of Settlement,  settling claims, subject to final court approval, on
behalf of the Partnership and all limited  partners who own units as of November
3, 1999. Preliminary approval of the settlement was obtained on November 3, 1999
from the  Superior  Court of the State of  California,  County of San Mateo,  at
which time the Court set a final approval  hearing for December 10, 1999.  Prior
to the December 10, 1999 hearing the Court  received  various  objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the  alleged  lack of  authority  of class  plaintiffs'  counsel  to  enter  the
settlement.  On  December  14,  1999,  the General  Partner  and its  affiliates
terminated the proposed  settlement.  Certain  plaintiffs have filed a motion to
disqualify  some of the plaintiffs'  counsel in the action.  The General Partner
does not anticipate that costs associated with this case will be material to the
Partnership's overall operations.

The  Partnership is unaware of any other pending or outstanding  litigation that
is not of a routine nature arising in the ordinary course of business.


<PAGE>



Note K - Change in Accounting Principle

Effective  January 1, 1999, the Partnership  changed its method of accounting to
capitalize the cost of exterior  painting and major landscaping on a prospective
basis.  The  Partnership  believes  that  this  accounting  principle  change is
preferable  because it provides a better  matching of expenses  with the related
benefit of the expenditures and it is consistent with industry  practice and the
policies  of the  General  Partner.  The  effect  of the  change  in 1999 was to
increase net income by approximately  $59,000 ($0.34 per limited partnership "A"
and "B" units).  The  cumulative  effect,  had this change been applied to prior
periods,  is not  material.  The  accounting  principle  change will not have an
effect on cash flow,  funds  available for  distribution  or fees payable to the
General Partner and affiliates.


<PAGE>




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

            None.


<PAGE>


                                    PART III

Item 9.   Directors,   Executive   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 executive 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

Patrick J. Foye              42    Executive Vice President and Director

Martha L. Long               40    Senior Vice President and Controller

Patrick J. Foye has been  Executive  Vice  President and Director of the General
Partner since October 1, 1998.  Mr. Foye has served as Executive  Vice President
of AIMCO since May 1998.  Prior to joining AIMCO,  Mr. Foye was a partner in the
law firm of Skadden,  Arps, Slate,  Meagher & Flom LLP from 1989 to 1998 and was
Managing Partner of the firm's  Brussels,  Budapest and Moscow offices from 1992
through  1994.  Mr.  Foye is also  Deputy  Chairman  of the  Long  Island  Power
Authority and serves as a member of the New York State Privatization Council. He
received a B.A.  from Fordham  College and a J.D.  from Fordham  University  Law
School.

Martha L. Long has been  Senior Vice  President  and  Controller  of the General
Partner and AIMCO since October 1998, as a result of the acquisition of Insignia
Financial Group,  Inc. From June 1994 until January 1997, she was the Controller
for Insignia, and was promoted to Senior Vice President - Finance and Controller
in January 1997,  retaining  that title until  October  1998.  From 1988 to June
1994,  Ms. Long was Senior Vice  President and  Controller for The First Savings
Bank, FSB in Greenville, South Carolina.

Based solely upon a review of Forms 3 and 4 and amendments  thereto furnished to
the Registrant  under Rule 16a-3(e) during the  Registrant's  most recent fiscal
year and Forms 5 and amendments thereto furnished to the Registrant with respect
to its most recent  fiscal year,  the  Registrant  is not aware of any director,
officer,  beneficial  owner of more than ten  percent  of the  units of  limited
partnership interest in the Registrant that failed to file on a timely basis, as
disclosed in the above Forms,  reports required by section 16(a) of the Exchange
Act during the most recent  fiscal year or prior fiscal years except as follows:
AIMCO Properties,  L.P. and its joint filers failed to timely file a Form 3 with
respect to its  acquisition  of both Class A and Class B Units and AIMCO and its
joint filers failed to timely file a Form 4 with respect to its  acquisition  of
both Class A and Class B Units.

Item 10.    Executive Compensation

Neither  the  director  nor the  officers of the General  Partner  received  any
remuneration from the Registrant.


<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, 1999.

                                               Number of         Percent
                                                 Units           of Total

      AIMCO Properties LP (1)               31,112 A units        32.31%
         (an affiliate of AIMCO)            19,108 B units        25.42%

      Insignia Properties LP (2)             2,243 A units        2.33%
         (an affiliate of AIMCO)               210 B units         .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 2000 South Colorado Blvd., Denver, Colorado
            80222.

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

(b)   Beneficial Owners of Management

      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, 1999,  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.

Item 12.    Certain Relationships and Related Transactions

The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for (i) certain  payments to affiliates for
services and (ii) for  reimbursement of certain expenses  incurred by affiliates
on  behalf of the  Partnership.  The  following  transactions  with the  General
Partner  and/or its  affiliates  were  incurred  during  each of the years ended
December 31, 1999 and 1998 (in thousands):

                                                   1999        1998

Property management fees                          $ 266        $ 260
Reimbursement for services of affiliates            105          113
Partnership management fees                          38           53

During the years ended  December  31, 1999 and 1998,  affiliates  of the General
Partner  were  entitled  to  receive  5% of  gross  receipts  from  all  of  the
Partnership's  properties  as  compensation  for providing  property  management
services.  The Partnership  paid to such affiliates  approximately  $266,000 and
$260,000 for the years ended December 31, 1999 and 1998, respectively.

An  affiliate  of the General  Partner  received  reimbursement  of  accountable
administrative expenses amounting to approximately $105,000 and $113,000 for the
years ended December 31, 1999 and 1998, respectively.

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 be the  General  Partner  for  executive  and
administrative  management  services.  These fees are  included  in general  and
administrative expenses. A fee of approximately $53,000 was paid during the year
ended  December 31, 1998. A fee of  approximately  $38,000 was earned during the
year ended December 31, 1999.

Several tender offers were made by various parties,  including affiliates of the
General Partner,  during the years ended December 31, 1999 and 1998. As a result
of these tender offers,  AIMCO and its  affiliates  currently own 59,995 "A" and
37,548 "B" limited partnership units in the Partnership  representing 62.31% and
49.96% of the outstanding units, respectively.  It is possible that AIMCO or its
affiliates will make one or more additional offers to acquire additional limited
partnership  interests in the  Partnership  for cash or in exchange for units in
the  operating  partnership  of AIMCO.  Consequently,  AIMCO is in a position to
influence  all  voting  decisions  with  respect  to the  Registrant.  Under the
Partnership Agreement,  unitholders holding a majority of the Units are entitled
to take  action with  respect to a variety of  matters.  When voting on matters,
AIMCO would in all likelihood  vote the Units it acquired in a manner  favorable
to the interest of the General  Partner  because of their  affiliation  with the
General Partner.


<PAGE>


Item 13.    Exhibits and Reports on Form 8-K

      (a)   Exhibits:

            Exhibit 18, Independent Accountants' Preferability Letter for Change
            in Accounting Principle, is filed as an exhibit to this report.

            Exhibit 27, Financial Data Schedule,  is filed as an exhibit to this
            report.

      (b)   Reports on Form 8-K filed in the fourth quarter of calendar year
            1999: None.


<PAGE>


                                   SIGNATURES

In accordance  with Section 13 or 15(d) of the Exchange Act, the  Registrant has
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.
                                          Its General Partner

                                    By:   /s/Patrick J. Foye
                                          Patrick J. Foye
                                          Executive Vice President

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

                                    Date:


In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the Partnership and in the capacities and on the
dates indicated.

/s/Patrick J. Foye      Executive Vice President      Date:
Patrick J. Foye         and Director


/s/Martha L. Long       Senior Vice President         Date:
Martha L. Long          and Controller



<PAGE>


                                  EXHIBIT INDEX

Exhibit

     2.1  Agreement  and Plan of Merger,  dated as of  October  1, 1998,  by and
          between  AIMCO and IPT,  incorporated  by  reference  to  Registrant's
          Current Report on Form 8-K dated October 1, 1998.

     3    Certificate of Limited Partnership, 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).

     10.1 Property  Management  Agreement No. 310 dated October 23, 1990, by and
          between the  Partnership  and CCEC  (Incorporated  by reference to the
          Quarterly  Report on Form 10-Q for the  quarter  ended  September  30,
          1990).

     10.2 Bill of Sale and  Assignment  dated  October 23, 1990,  by and between
          CCEC and ConCap  Services  Company  (Incorporated  by reference to the
          Quarterly  Report on Form 10-Q for the  quarter  ended  September  30,
          1990).

     10.3 Assignment  and  Assumption  Agreement  dated October 23, 1990, by and
          between  CCEC and  ConCap  Management  Limited  Partnership  ("CCMLP")
          (Incorporated  by reference to the  Quarterly  Report on Form 10-Q for
          the quarter ended September 30, 1990).

     10.4 Assignment and Agreement as to Certain  Property  Management  Services
          dated  October  23,  1990,  by the  between  CCMLP and ConCap  Capital
          Company  (Incorporated  by reference to the  Quarterly  Report on Form
          10-Q for the quarter ended September 30, 1990).

     10.5 Assignment  and  Assumption  Agreement  dated October 23, 1990, by and
          between  CCMLP  and  Metro  ConCap,   Inc.  (300  Series  of  Property
          Management  Contracts)  (Incorporated  by reference  to the  Quarterly
          Report on Form 10-Q for the quarter ended September 30, 1990).

     10.6 Construction  Management Cost Reimbursement Agreement dated January 1,
          1991,  by  and  between  the  Partnership   and  Metro  ConCap,   Inc.
          (Incorporated  by reference to the Annual  Report on Form 10-K for the
          year ended December 31, 1991).

     10.9 Construction  Management Cost Reimbursement Agreement dated January 1,
          1991,  by  and  between  the   Partnership  and  The  Hayman  Company.
          (Incorporated  by reference to the Annual  Report on Form 10-K for the
          year ended December 31, 1991).

    10.10 Investor  Services  Agreement  dated  October 23, 1990, by and between
          the Partnership and CCEC  (Incorporated  by reference to the Quarterly
          Report on Form 10-Q for the quarter ended  September 30, 1990).

    10.11 Assignment  and Assumption  Agreement  (Investor  Services  Agreement)
          dated  October  23,  1990,  by and  between  CCEC and ConCap  Services
          Company  (Incorporated  by reference to the Annual Report on Form 10-K
          for the year ended December 31, 1990).

    10.12 Letter of Notice dated  December 20,  1991,  from  Partnership
          Services, Inc. ("PSI") to the Partnership regarding the change
          in  ownership  and  dissolution  of  ConCap  Services  Company
          whereby   PSI  assumed  the   Investor   Services   Agreement.
          (Incorporated  by reference to the Annual  Report on Form 10-K
          for the year ended December 31, 1991).

    10.13 Financial  Services  Agreement  dated  October  23,  1990,  by and
          between the  Partnership  and CCEC  (Incorporated  by reference to
          the Quarterly  Report on Form 10-Q for the quarter ended September
          30, 1990).

   10.14  Assignment   and   Assumption    Agreement   (Financial   Services
          Agreement)  dated October 23, 1990, by and between CCEC and ConCap
          Capital  Company  (Incorporated  by  reference  to  the  Quarterly
          Report on Form 10-Q for the quarter ended September 30, 1990).

   10.15  Letter of Notice  dated  December  20,  1991,  from PSI to the
          Partnership  regarding the change in ownership and dissolution
          of ConCap  Capital  Company  whereby PSI assumed the Financial
          Services  Agreement.  (Incorporated by reference to the Annual
          Report on Form 10-K for the year ended December 31, 1991).

  10.16   Property  Management  Agreement No. 518 dated June 1, 1993, by and
          between the Partnership and Coventry Management, Inc.

  10.17   Assignment   and   Assumption    Agreement   (Financial   Services
          Agreement)  dated October 23, 1990, by and between CCEC and ConCap
          Capital  Company  (Incorporated  by  reference  to  the  Quarterly
          Report on Form 10-Q for the quarter ended September 30, 1990).

  10.18   Letter dated December 8, 1994 reporting a change in control of
          the  General  Partner  of  the  Registrant.  (Incorporated  by
          reference to Form 8-K dated December 8, 1994).

  10.19   Multifamily  Note dated  November 1, 1996,  between  Multi-Benefit
          Realty Fund '87-1, a California  limited  partnership,  and Lehman
          Brokers Holdings,  Inc. d/b/a Lehman Capital, A Division of Lehman
          Brothers Holdings, Inc.

  10.20   Multifamily  Note dated  November 1, 1996,  between  Multi-Benefit
          Realty Fund '87-1, a California  limited  partnership,  and Lehman
          Brokers Holdings,  Inc. d/b/a Lehman Capital, A Division of Lehman
          Brothers Holdings, Inc.

  11      Statement  regarding   computation  of  Net  Income  per  Unit  of
          Depositary Receipt  (Incorporated by reference to Note 5 of Item 8
          - Financial Statements of this Form 10-K).

  16      Letter,  dated  August  12,  1992,  from  Ernst  &  Young  to  the
          Securities and Exchange Commission  regarding change in certifying
          accountant.  (Incorporated  by  reference to Form 8-K dated August
          6, 1992.)

  16.1    Letter dated May 3, 1995,  from Arthur  Anderson to the Securities
          and   Exchange   Commission   regarding   change   in   certifying
          accountant.  (Incorporated  by  reference to Form 8-K dated May 3,
          1995.)

  18      Independent  Accountants'   Preferability  Letter  for  Change  in
          Accounting Principle.

  27      Financial Data Schedule is filed as an Exhibit to this report.

                                                                      Exhibit 18


February 24, 2000


Mr. Patrick J. Foye
Executive Vice President
ConCap Equities, Inc.
General Partner of Multi-Benefit Realty Fund '87-1
55 Beattie Place
P.O. Box 1089
Greenville, South Carolina 29602

Dear Mr. Foye:

Note K of Notes to the Consolidated Financial Statements of Multi-Benefit Realty
Fund '87-1  included  in its Form  10-KSB for the year ended  December  31, 1999
describes a change in the method of accounting to capitalize  exterior  painting
and major landscaping,  which would have been expensed under the old policy. You
have advised us that you believe  that the change is to a  preferable  method in
your  circumstances  because it provides a better  matching of expenses with the
related benefit of the  expenditures  and is consistent with policies  currently
being used by your industry and conforms to the policies of the General Partner.

There are no authoritative criteria for determining a preferable method based on
the particular circumstances; however, we conclude that the change in the method
of accounting  for exterior  painting and major  landscaping is to an acceptable
alternative  method which,  based on your business  judgment to make this change
for the reasons cited above, is preferable in your circumstances.

                                                              Very truly yours,
                                                            /s/Ernst & Young LLP