##### Table of Contents



FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

|                                             |  |                                                                                          
|-------------------------------------------- |  | -----------------------------------------------------------------------------------------
|(Mark One)                                   |  |                                                                                          
|                                            
|                                            
|                                            
|                                            
|[X]                                          |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934  
|                                            
|For the quarterly period ended June 30, 2001
|                                            
|OR                                          
|                                            
|[   ]                                        |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number 0-24683

Brunner Companies Income Properties L.P. I
(Exact name of small business issuer as specified in its charter)

|                                                                        |  |                                                
|----------------------------------------------------------------------- |  | -----------------------------------------------
|Delaware
(State or other jurisdiction of
incorporation or organization) |  | 31-1266850
(I.R.S. Employer
Identification No.)

3632 Wheeler Road
P.O. Box 204227
Augusta, Georgia 30917-204227
(Address of principal executive offices)

(706) 863-2222
(Registrants telephone number, including area code)

(Former address since last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [  ]

Indicate the number of shares outstanding of each of the registrants classes
of common stock, as of the latest practicable date.

|                                                 |  |                                
|------------------------------------------------ |  | -------------------------------
|Title
Class A Units 552,000
Class B Units 61,333 |  | Outstanding as of
July 31, 2001





---

TABLE OF CONTENTS



|                              |                                                                    |                                                     |  |  |  |  |  | 
|----------------------------- | ------------------------------------------------------------------ | --------------------------------------------------- |  |  |  |  |  | 
|PART I  FINANCIAL STATEMENTS
|                              | ITEM 1. FINANCIAL STATEMENTS                                      
|                              |                                                                    | BALANCE SHEETS                                     
|                              |                                                                    | STATEMENTS OF OPERATIONS                           
|                              |                                                                    | STATEMENT OF CHANGES IN PARTNERS CAPITAL (DEFICIT)
|                              |                                                                    | STATEMENTS OF CASH FLOWS                           
|                              |                                                                    | NOTES TO FINANCIAL STATEMENTS                      
|                              | ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
|PART II  OTHER INFORMATION  
|                              | ITEM 3. DEFAULTS UPON SENIOR SECURITIES                           
|                              | ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K                          
|                              | SIGNATURES                                                        



---



##### Table of Contents






PART I  FINANCIAL STATEMENTS




ITEM 1. FINANCIAL STATEMENTS




BRUNNER COMPANIES INCOME PROPERTIES L.P. I
BALANCE SHEETS
(in thousands, except unit data)

|                                              |                                       |                                             |        |           |     |              |        |        |     | 
|--------------------------------------------- | ------------------------------------- | ------------------------------------------- | ------ | --------- | --- | ------------ | ------ | ------ | --- | 
|                                              |                                       |                                             |        | June 30,  |     | December 31,
|                                              |                                       |                                             |        |           |     |             
|                                              |                                       |                                             |        | 2001      |     | 2000        
|                                              |                                       |                                             |        |           |     |             
|                                              |                                       |                                             |        | Unaudited |     | Audited     
|                                              |                                       |                                             |        |           |     |             
|ASSETS                                        |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|                                              | Cash and cash equivalents             |                                             | $      | 474       |     |              | $      | 456    |    
|                                             
|                                             
|                                             
|                                             
|                                              | Accounts receivable  net             |                                             |        | 28        |     |              |        | 53     |    
|                                             
|                                             
|                                             
|                                             
|                                              | Restricted cash in escrow             |                                             |        | 747       |     |              |        | 729    |    
|                                             
|                                             
|                                             
|                                             
|                                              | Assigned rents held by lender  net   |                                             |        | 181       |     |              |        |       |    
|                                             
|                                             
|                                             
|                                             
|                                              | Other assets                          |                                             |        | 294       |     |              |        | 214    |    
|                                             
|                                             
|                                             
|                                             
|                                              | Investment properties  net           |                                             |        | 16,501    |     |              |        | 16,849 |    
|                                              |                                       |                                             |        |           |     |              |        |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|Total Assets                                  |                                       | $                                           | 18,225 |           |     | $            | 18,301 |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|LIABILITIES                                   |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|                                              | Accounts payable and accrued expenses |                                             |        | 171       |     |              |        | 180    |    
|                                             
|                                             
|                                             
|                                             
|                                              | Accrued property taxes                |                                             |        | 76        |     |              |        | 27     |    
|                                             
|                                             
|                                             
|                                             
|                                              | Tenant security deposit liabilities   |                                             |        | 16        |     |              |        | 18     |    
|                                             
|                                             
|                                             
|                                             
|                                              | Mortgage notes payable                |                                             |        | 17,510    |     |              |        | 17,603 |    
|                                              |                                       |                                             |        |           |     |              |        |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|Total Liabilities                             |                                       |                                             | 17,773 |           |     |              | 17,828 |       
|                                             
|                                             
|                                             
|                                             
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|PARTNERS CAPITAL (DEFICIT)
General partners |                                       | $                                           | (33    | )         |     | $            | (33    | )     
|                                             
|                                             
|                                             
|                                             
|                                              |                                       | Class A limited partners  (552,000
units) |        |           | 267 |              |        |        | 286 | 
|                                             
|                                             
|                                             
|                                             
|                                              |                                       | Class B limited partners  (61,333 units)  |        |           | 218 |              |        |        | 220 | 
|                                              |                                       |                                             |        |           |     |              |        |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|Total Partners Capital                       |                                       |                                             | 452    |           |     |              | 473    |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                              |                                       |                                             |        |           |     |              |        |       
|                                             
|                                             
|                                             
|                                             
|Total Liabilities and Partners Capital       |                                       | $                                           | 18,225 |           |     | $            | 18,301 |       
|                                              |                                       |                                             |        |           |     |              |        |       

See Accompanying Notes to Financial Statements

-2-



---



##### Table of Contents






BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)

|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |       | 
|------------------------------------------------------ | -------------------------- | - | ------------------ | --- | ---------------- | - | ---- | --- | ---- | - | ----- | ----- |  | - | ----- | ----- | 
|                                                       |                            |   | Three Months Ended |     | Six Months Ended
|                                                       |                            |   |                    |     |                 
|                                                       |                            |   | June 30,           |     | June 30,        
|                                                       |                            |   |                    |     |                 
|                                                       |                            |   | 2001               |     | 2000             |   | 2001 |     | 2000
|                                                       |                            |   |                    |     |                  |   |      |     |     
|Revenues:                                              |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Rental income              |   | $                  | 523 |                  |   | $    | 585 |      |   | $     | 1,144 |  |   | $     | 1,115 | 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Other income               |   |                    | 15  |                  |   |      | 33  |      |   |       | 27    |  |   |       | 36    | 
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|Total revenues                                         |                            |   | 538                |     |                  |   | 618  |     |      |   | 1,171 |       |  |   | 1,151 |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|Expenses:                                              |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Operating                  |   |                    | 44  |                  |   |      | 74  |      |   |       | 98    |  |   |       | 132   | 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | General and administrative |   |                    | 20  |                  |   |      | 37  |      |   |       | 54    |  |   |       | 79    | 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Depreciation               |   |                    | 175 |                  |   |      | 176 |      |   |       | 350   |  |   |       | 352   | 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Interest                   |   |                    | 307 |                  |   |      | 309 |      |   |       | 614   |  |   |       | 620   | 
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       | Property taxes             |   |                    | 47  |                  |   |      | 59  |      |   |       | 76    |  |   |       | 112   | 
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|Total expenses                                         |                            |   | 593                |     |                  |   | 655  |     |      |   | 1,192 |       |  |   | 1,295 |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|Net loss                                               |                            | $ | (55                | )   |                  | $ | (37  | )   |      | $ | (21   | )     |  | $ | (144  | )    
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|Net loss allocated to general
Partner (1.0%)           |                            |   | (1                 | )   |                  |   |     |     |      |   |      |       |  |   | (1    | )    
|                                                      
|                                                      
|                                                      
|                                                      
|Net loss allocated to Class A
limited partners (89.1%) |                            |   | (49                | )   |                  |   | (33  | )   |      |   | (19   | )     |  |   | (128  | )    
|                                                      
|                                                      
|                                                      
|                                                      
|Net loss allocated to Class B
limited partners (9.9%)  |                            |   | (5                 | )   |                  |   | (4   | )   |      |   | (2    | )     |  |   | (15   | )    
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|                                                       |                            | $ | (55                | )   |                  | $ | (37  | )   |      | $ | (21   | )     |  | $ | (144  | )    
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      
|                                                      
|                                                      
|                                                      
|                                                      
|Net loss per Class A limited
Partnership units         |                            | $ | (.09               | )   |                  | $ | (.06 | )   |      | $ | (.03  | )     |  | $ | (.23  | )    
|                                                       |                            |   |                    |     |                  |   |      |     |      |   |       |       |  |   |       |      

See Accompanying Notes to Financial Statements

-3-



---



##### Table of Contents



BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENT OF CHANGES IN PARTNERS CAPITAL (DEFICIT)
(Unaudited)
(in thousands, except unit data)




|                                                 |  |                   |     |         |  |         |       |       |  |   |     |   |  |   |       |  
|------------------------------------------------ |  | ----------------- | --- | ------- |  | ------- | ----- | ----- |  | - | --- | - |  | - | ----- | -
|                                                 |  | Limited Partners'
|                                                 |  |                  
|                                                 |  | General Partner's |     | Class A |  | Class B |       | Total
|                                                 |  |                   |     |         |  |         |       |      
|Original capital contributions                   |  | $                 | 1   |         |  | $       | 5,520 |       |  | $ | 613 |   |  | $ | 6,134 |  
|                                                 |  |                   |     |         |  |         |       |       |  |   |     |   |  |   |       |  
|Partners capital (deficit) at
December 31, 2000 |  | $                 | (33 | )       |  | $       | 286   |       |  | $ | 220 |   |  | $ | 473   |  
|                                                
|                                                
|                                                
|                                                
|Net loss for the six months
ended June 30, 2001  |  |                   |    |         |  |         | (19   | )     |  |   | (2  | ) |  |   | (21   | )
|                                                 |  |                   |     |         |  |         |       |       |  |   |     |   |  |   |       |  
|Partners capital (deficit) at
June 30, 2001     |  | $                 | (33 | )       |  | $       | 267   |       |  | $ | 218 |   |  | $ | 452   |  
|                                                 |  |                   |     |         |  |         |       |       |  |   |     |   |  |   |       |  

See Accompanying Notes to Financial Statements

-4-



---



##### Table of Contents






BRUNNER COMPANIES INCOME PROPERTIES L.P. I
STATEMENTS OF CASH FLOWS
(Unaudited)

|                                                                                                   |                                                    |                                           |     |                  |      |      |     |      |      |  
|-------------------------------------------------------------------------------------------------- | -------------------------------------------------- | ----------------------------------------- | --- | ---------------- | ---- | ---- | --- | ---- | ---- | -
|                                                                                                   |                                                    |                                           |     | Six Months Ended
|                                                                                                   |                                                    |                                           |     |                 
|                                                                                                   |                                                    |                                           |     | June 30,        
|                                                                                                   |                                                    |                                           |     |                 
|                                                                                                   |                                                    |                                           |     | 2001             |      | 2000
|                                                                                                   |                                                    |                                           |     |                  |      |     
|Cash flows from operating activities                                                               |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Net loss                                           |                                           | $   | (21              | )    |      | $   | (144 | )   
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|Adjustments to reconcile net loss to net cash provided
by
Operating activities
       Depreciation |                                                    |                                           | 350 |                  |      |      | 352 |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Amortization of loan costs and leasing commissions |                                           |     | 14               |      |      |     | 15   |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|Change
in deferred and accrued amounts
       Accounts receivable                                  |                                                    |                                           | 25  |                  |      |      | 14  |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Other assets                                       |                                           |     | (94              | )    |      |     | (115 | )   
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Accounts payable and accrued expenses              |                                           |     | (9               | )    |      |     | 57   |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Tenant security deposit liabilities                |                                           |     | (2               | )    |      |     |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Accrued property taxes                             |                                           |     | 49               |      |      |     | 112  |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   |                                                    | Net cash provided by operating activities |     |                  | 312  |      |     |      | 291  |  
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|Cash
flows used in investing activities
       Property improvements and replacements              |                                                    |                                           | (2  | )                |      |      | (84 | )   
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Net deposits to restricted escrows                 |                                           |     | (18              | )    |      |     | (120 | )   
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   | Assigned rents held by lender, net                 |                                           |     | (181             | )    |      |     |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                   |                                                    | Net cash used in investing activities     |     |                  | (201 | )    |     |      | (204 | )
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|Cash
used in financing activities
Payments on mortgage notes payable                               |                                                    |                                           | (93 | )                |      |      | (54 | )   
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|Net increase in cash and cash equivalents                                                          |                                                    |                                           | 18  |                  |      |      | 33  |     
|                                                                                                  
|                                                                                                  
|                                                                                                  
|                                                                                                  
|Cash and cash equivalents at beginning of the period                                               |                                                    |                                           | 456 |                  |      |      | 426 |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|Cash and cash equivalents at end of the period                                                     |                                                    | $                                         | 474 |                  |      | $    | 459 |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|Supplemental disclosure of cash flow information                                                   |                                                    |                                           |     |                  |      |      |     |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     
|Cash paid for interest                                                                             |                                                    | $                                         | 614 |                  |      | $    | 620 |     
|                                                                                                   |                                                    |                                           |     |                  |      |      |     |     

See Accompanying Notes to Financial Statements

-5-



---



##### Table of Contents






BRUNNER COMPANIES INCOME PROPERTIES, L.P. I
NOTES TO FINANCIAL STATEMENTS
(Unaudited)

Note A  Basis of Presentation

The accompanying unaudited financial statements of Brunner Companies Income
Properties L.P. I (the Partnership) have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of 104 Management, Inc. (the Managing General Partner), an
Ohio corporation, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three-month and the six-month periods ended June 30, 2001, are
not necessarily indicative of the results that may be expected for the fiscal
year ending December 31, 2001. For further information, refer to the financial
statements and footnotes thereto included in the Partnerships annual report on
Form 10-KSB for the fiscal year ended December 31, 2000.

The Partnerships continued ability to operate is dependent on its relationship
with New York Life Insurance Company (the Lender) and its ability to continue
to either restructure the terms of its existing debt or raise additional
capital. The Managing General Partner has negotiated with the Lender to extend
the terms of the existing notes through May 10, 2002. However, after that
date, there can be no assurance that a debt restructuring or a renegotiation of
terms will occur or that additional capital will be raised in a manner that
will allow the Partnership to continue its operations in its present form.
Alternative options currently being considered by the Managing General Partner
include the sale of one or more of its three retail shopping centers (the
Investment Properties) to a third party, liquidation of the Partnership,
transfer of the Investment Properties to the Lender in lieu of foreclosure or a
bankruptcy filing.

The Partnership records as an allowance for uncollectable rents 100% of
receivables over ninety days old, 50% of receivables over sixty but less than
ninety one days old and 100% of receivables from former tenants. Increases in
the allowance for uncollectable rents are included in the Statement of
Operations as a charge against rental income. Recoveries of rents previously
reserved are included in rental income as collected. For the six months ended
June 30, 2001, $104,000 of previously reserved rental income was collected and
included in current rental income

Certain reclassifications have been made to the 2000 information to conform to
the 2001 presentation.

-6-



---



##### Table of Contents



Note B  Proposed Disposition of Investment Properties

The Managing General Partner (Management) currently is contemplating a sale
of its three Investment Properties, which would lead to a dissolution of the
Partnership. Management is seeking approval from the Lender to list the three
Investment Properties through a national real estate broker to be marketed for
sale. Also, while seeking the Lenders approval, Management is diligently
seeking buyers for the Investment Properties with the intention of closing the
sales transactions on or before May 10, 2002, the date the notes payable become
due (the Extended Maturity Date). Should the Investment Properties not be
sold by the Extended Maturity Date, Management will have to renegotiate a new
loan extension agreement, surrender the Investment Properties to the Lender in
lieu of foreclosure or file bankruptcy proceedings.

Upon the ultimate sale or disposition of all assets and satisfaction of all
liabilities, any remaining cash will be distributed as provided for under the
partnership agreement.

Note C  Collection of Rents and Control of Restricted Escrow Account by the
Lender

In February 2001, the Lender, pursuant to an assignment of rents provision in
the mortgage note agreements, contacted each tenant of all three Investment
Properties and exercised its right to begin collecting rents directly from each
tenant. The Lender has agreed to provide funding from the rents collected on a
monthly basis to the Partnership for all ongoing expenses and obligations based
on a budget approved by the Lender. The Lender has not foreclosed on the
properties. The Lender has also agreed that the net cash flows after payment
of expenses, debt service and escrow will be deposited into the Restricted Cash
in Escrow account, on a quarterly basis. Also, in February of 2001, the Lender
and Management agreed to move the Restricted Cash in Escrow account from
Regions Bank to a money market fund account with Eclipse Investment Management,
LLC, a subsidiary of the Lender. At June 30, 2001, the balance of the
Restricted Cash in Escrow account was $747,000. Additionally, at June 30, 2001,
the balance of rents collected by the lender, net of disbursements made on
behalf of the partnership, was $181,000 and is reported in the Balance Sheet as
Assigned Rents Held by Lender- Net.

Note D  Transactions with Affiliated Parties

The Partnership has no employees and is dependent on the Managing General
Partner and its affiliates for the management and administration of all
partnership activities. All of the outstanding stock of the Managing General
Partner is owned by BCIP I & III, LLC, an affiliate of Hull/Storey Development,
LLC (Hull/Storey). The partnership agreement provides for payments to
affiliates for property management services based on a percentage of revenue
and for reimbursement of certain expenses incurred by affiliates on behalf of
the Partnership. The following payments were made to affiliates of the Managing
General Partner during the six months ended June 30, 2001 and 2000 (in
thousands):

|                                                                                           |  |      |    |      |  |   |    | 
|------------------------------------------------------------------------------------------ |  | ---- | -- | ---- |  | - | -- | 
|                                                                                           |  | 2001 |    | 2000
|                                                                                           |  |      |    |     
|Property management fees (included in
operating expenses)                                  |  | $    | 19 |      |  | $ | 33 | 
|                                                                                          
|                                                                                          
|                                                                                          
|                                                                                          
|Reimbursement for services of affiliates
(included in general and administrative
expenses) |  | $    | 13 |      |  | $ | 16 | 

-7-



---



##### Table of Contents



Additionally, the Partnership paid approximately $2,880 and $2,760 to an
affiliate of the Managing General Partner for lease commissions related to new
leases at the Partnerships Investment Properties during the six months ended
June 30, 2001 and 2000, respectively. These lease commissions are included in
other assets and amortized over the terms of the respective leases.

Note E  Mortgage Notes Payable

The Lender has extended the Partnerships three mortgage notes payable to May
10, 2002. The mortgage notes payable will continue to bear interest at the rate
of 7% per annum and the Partnership will continue to make monthly payments of
principal, interest and escrow of $131,261. Since the Lender presently is
collecting the rents directly from the tenants, the Lender is deducting the
monthly mortgage payments and has agreed to remit on a quarterly basis, the net
cash flow, after payment of partnership expenses, as defined, into the
Restricted Cash in Escrow account, which is controlled jointly by the Lender
and the Partnership.

The mortgage notes payable require a balloon payment at maturity for the
remaining principal balance. These notes are nonrecourse and are all
cross-collateralized and cross-defaulted and are secured by the properties and
by a pledge of revenues from the respective Investment Properties.




ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

The Partnerships Investment Properties consist of three retail shopping
centers. The following table sets forth the average occupancy of the Investment
Properties for the six months ended June 30, 2001 and 2000, based on actual
physical square footage occupancy of the Investment Properties during the
quarter:

|                                               |  |           |     |      |  |  |     |  
|---------------------------------------------- |  | --------- | --- | ---- |  |  | --- | -
|                                               |  | Average  
|                                               |  |          
|                                               |  | Occupancy
|                                               |  |          
|                                               |  | 2001      |     | 2000
|                                               |  |           |     |     
|Hitchcock
Plaza,
Aiken, South Carolina         |  |           | 80  | %    |  |  | 94  | %
|                                              
|                                              
|                                              
|                                              
|Whitehorse
Plaza,
Greenville, South Carolina   |  |           | 13  | %    |  |  | 16  | %
|                                              
|                                              
|                                              
|                                              
|Georgetown
Landing,
Georgetown, South Carolina |  |           | 100 | %    |  |  | 100 | %

Results of Operations

Three Months Ended June 30, 2001 and 2000

The Partnerships net loss for the three months ended June 30, 2001, was
$55,000 compared to a net loss of $37,000 for the corresponding period of 2000.
Total revenues decreased by $80,000 primarily

-8-



---



##### Table of Contents



because of an increase in the allowance for uncollectable rents and a decrease
in lease cancellation fee income.

Total expenses declined by $62,000 due to decreases in operating and general
and administrative expenses. Contributing to the decline in expenses were lower
management fees, lower legal and accounting fees and lower property tax
expense.

Six Months Ended June 30, 2001 and 2000

The Partnerships net loss for the six months ended June 30, 2001 was $21,000
compared to a loss of $144,000 for the six months ended June 30, 2000. The
$123,000 decrease in the net loss was due to increased rental income, decreased
operating expenses, decreased general and administrative expense and decreased
property tax expense. Rental income for 2001 increased by $29,000 from 2000
which was due to the collection of $104,000 of prior period rents which were
over 90 days past due from Kroger at Hitchcock Plaza. These rents had been
fully reserved for in prior periods in the Partnerships allowance for
uncollectable rents. Excluding the collection of past due rental income,
rental income declined by $75,000 due to increasing vacancies at both Hitchcock
Plaza and Whitehorse Plaza. The Partnerships accounting policy is to record
as an allowance for uncollectable rents 100% of receivables over ninety days
old, 50% of receivables over sixty but less than ninety-one days old and 100%
of receivables from former tenants.

Operating expenses declined due to decreased maintenance expense and management
fees. General and administrative expense declined due to decreased legal and
accounting fees. Property taxes declined due to lower tax accruals, which were
the result of lower property tax valuations caused by the vacancies at
Whitehorse Plaza and Hitchcock Plaza. The Partnership is continuing to appeal
the property tax assessment valuations of its Investment Properties.

Two major tenants, Wal-Mart Stores and Winn-Dixie Stores, vacated their space
at Whitehorse Plaza during 1999. Wal-Mart Stores continues to pay its lease
obligations for 81,922 square feet, although the space is vacant. The
Partnership is presently in litigation with Winn-Dixie Stores to collect rent
on its 35,922 square feet. Winn-Dixie has not paid since June 1999. Both the
Wal-Mart and Winn-Dixie leases extend into 2006. The balance due from
Winn-Dixie Stores at June 30, 2001 was $545,930, which, under the Partnerships
policy as discussed above, has been reserved for at 100%. The Winn-Dixie
Stores account receivable has been pledged as collateral for the Partnerships
mortgage notes payable.

Average occupancy at Hitchcock Plaza decreased due to the departure of Pic N
Pay and Goodys in 2000. During the first quarter of 2001, one new tenant,
Traditional Korean Martial Arts Studio was added at Hitchcock Plaza effective
April 1, 2001.

As part of the ongoing business plan of the Partnership, the Managing 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
expense. As part of this plan, the Managing General Partner attempts to protect
the Partnership from

-9-



---



##### Table of Contents



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 Managing General Partner will
be able to sustain such a plan.

At June 30, 2001, the Partnership held unrestricted cash of approximately
$474,000. No distributions were made in 2001 or 2000. Any future cash
distributions will depend on the levels of net cash generated from operations,
refinancing, property sales, and the availability of cash reserves after
restructuring the existing indebtedness or renegotiating its terms. Presently
no cash distributions are planned.

Other

Certain items discussed in this quarterly report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995 (the Reform Act) and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Partnership to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only as of
the date of this quarterly report. The Partnership expressly disclaims any
obligation or undertaking to release publicly any updates of revisions to any
forward-looking statements contained herein to reflect any change in the
Partnerships expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.




PART II  OTHER INFORMATION




ITEM 3. DEFAULTS UPON SENIOR SECURITIES

The Partnerships three mortgage notes payable, which were past due at March
31, 2001, have been extended by the Lender to May 10, 2002 and are no longer in
default.




ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K



| | (a)                                                                       |  | Exhibits:           
| | ------------------------------------------------------------------------- |  | --------------------
|
| | None                                                                     
|
| | (b)                                                                       |  | Reports on Form 8-K:
|
| | No reports on Form 8-K were filed during the quarter ended June 30, 2001.

-10-



---



##### Table of Contents






SIGNATURES

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

|                                           |  |                                                           
|------------------------------------------ |  | ----------------------------------------------------------
|BRUNNER COMPANIES INCOME PROPERTIES L.P. I
|                                          
|By:                                        |  | Brunner Management Limited Partnership
Its General Partner
|                                          
|By:                                        |  | 104 Management, Inc.
Its Managing General Partner         
|                                          
|By:                                        |  | /s/James M. HullJames M. Hull
President and Director      
|                                          
|By:                                        |  | /s/ Deborah MosleyDeborah Mosley
Chief Accounting Officer 
|                                          
|Date:  August 13, 2001                    

-11-