SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549

                                   FORM 8-K

                                CURRENT REPORT

                    PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

       Date of Report (date of earliest event reported)  April  23, 1996

                      BALCOR REALTY INVESTORS 85-SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
         ------------------------------------------------------------
                           Exact Name of Registrant

Illinois                                0-14353
- ---------------------------             -----------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3244978
- ---------------------------             -----------------------------
Address of principal                    I.R.S. Employer
executive offices                       Identification
                                        Number

60015
- ---------------------------
Zip Code

              Registrant's telephone number, including area code:
                                (847) 267-1600
<PAGE>
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
- -----------------------------------------------------------------------

Forest Ridge I Apartments

In 1983, the Partnership acquired the Forest Ridge I Apartments, Arlington,
Texas, utilizing approximately $6,119,435 in offering proceeds.  The property
was acquired subject to first mortgage financing of approximately $10,443,000.
In 1989, the mortgage financing on the property was refinanced with a
$6,741,000 first mortgage loan from an unaffiliated party and a $3,776,000
second mortgage loan and a $696,555 unsecured loan from an affiliate of the
General Partner.  In 1990 and 1991, respectively, the unsecured loan and second
mortgage loans were repaid from partnership funds.  In 1994, the first mortgage
loan was refinanced with a new mortgage loan (the "Loan") in the amount of
$7,690,000.  The Partnership received excess refinancing proceeds of $708,150.

On April 23, 1996, the Partnership contracted to sell the property for a sale
price of $11,600,000 to an unaffiliated party, ERP Operating Limited
Partnership (the "Purchaser"), an Illinois limited partnership.  The Purchaser
has deposited $300,000 into an escrow account as earnest money.  The Purchaser
has the option, to be exercised prior to May 22, 1996, to assume the Loan at
closing.  If the option is exercised, the Purchaser is obligated to deposit an
additional $200,000 into the escrow account no later than May 23, 1996.  At
closing, the Loan, which is expected to have a then outstanding balance of
approximately $7,594,000, will be either assumed by the Purchaser or repaid
from the sale proceeds, with the remainder of the purchase price paid in cash.
The Purchaser will pay all closing costs relating to the sale, including title
charges and prepayment or assumption fees relating to the Loan. Of the
remaining sale proceeds, an amount not to exceed $500,000 will be retained by
the Partnership and not be available until 120 days after the closing.  Neither
the General Partner, its affiliates nor any unaffiliated third party will
receive a brokerage commission in connection with the sale of the property.  An
affiliate of the third party providing property management services for the
Partnership and certain affiliates will receive a fee for services in
connection with the sale of the Property of $116,000.  The General Partner will
be reimbursed by the Partnership for actual expenses incurred in connection
with the sale, including the Partnership's legal fees.

If the Loan is to be repaid at closing, the closing will occur on the earliest
day the holder of the Loan will permit the Loan to be repaid, to be no earlier
than June 6, 1996.  If the Purchaser has exercised the option to assume the
Loan, the closing will be extended to a date no later than July 19, 1996.

Affiliates of the General Partner have simultaneously contracted to sell 18
other properties to the Purchaser.  One of the 18 properties, Forest Ridge II
Apartments, Arlington, Texas, which is owned by an affiliate of the General
Partner, is located adjacent to the property.    If a default occurs under the
agreement of sale for the property or the adjacent property, such action will
be considered a default under the other agreement.  In the event the Purchaser
terminates either agreement, the other agreement will also be deemed to be
terminated.

The closing is subject to the satisfaction of numerous terms and conditions,
including the sale of the adjacent property.  There can be no assurance that
all of the terms and conditions will be complied with and, therefore, it is
possible the sale of the property may not occur.
<PAGE>
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
- ----------------------------------------------------------------------

     (a)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)    Agreement of Sale and attachments thereto relating to the 
                   sale of the Forest Ridge I Apartments, Arlington, Texas.

No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.


Signature
- -------------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

                         BALCOR REALTY INVESTORS 85-SERIES I A 
                         REAL ESTATE LIMITED PARTNERSHIP

                         By:  Balcor Partners-XVI, an Illinois
                                general partnership, its general
                                partner

                         By:  RGF-Balcor Associates-II, an 
                                Illinois general partnership, a partner

                         By:  The Balcor Company,
                                 a Delaware corporation,
                                 a partner

                         By:  /s/Jerry M. Ogle
                            ------------------------------------
                                 Jerry M. Ogle, Vice President 
                                 and Secretary

Dated:  May 8, 1996
<PAGE>
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{"company-data": {"conformed-name": "BALCOR REALTY INVESTORS 85 SERIES I", "cik": "0000751341", "assigned-sic": "6500", "irs-number": "363244978", "state-of-incorporation": "IL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "002-92777", "film-number": "96557893"}, "business-address": {"street1": "4849 GOLF RD", "street2": "BALCOR PLZ", "city": "SKOKIE", "state": "IL", "zip": "60077", "phone": "7086772900"}, "mail-address": {"street1": "4849 GOLF ROAD", "city": "SKOKIE", "state": "IL", "zip": "60077"}}
SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, DC  20549

                                   FORM 8-K

                                CURRENT REPORT

                    PURSUANT TO SECTION 13 OR 15 (d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

       Date of Report (date of earliest event reported)  April  23, 1996

                      BALCOR REALTY INVESTORS 85-SERIES I
                       A REAL ESTATE LIMITED PARTNERSHIP
         ------------------------------------------------------------
                           Exact Name of Registrant

Illinois                                0-14353
- ---------------------------             -----------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3244978
- ---------------------------             -----------------------------
Address of principal                    I.R.S. Employer
executive offices                       Identification
                                        Number

60015
- ---------------------------
Zip Code

              Registrant's telephone number, including area code:
                                (847) 267-1600
ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS
- -----------------------------------------------------------------------

Forest Ridge I Apartments

In 1983, the Partnership acquired the Forest Ridge I Apartments, Arlington,
Texas, utilizing approximately $6,119,435 in offering proceeds.  The property
was acquired subject to first mortgage financing of approximately $10,443,000.
In 1989, the mortgage financing on the property was refinanced with a
$6,741,000 first mortgage loan from an unaffiliated party and a $3,776,000
second mortgage loan and a $696,555 unsecured loan from an affiliate of the
General Partner.  In 1990 and 1991, respectively, the unsecured loan and second
mortgage loans were repaid from partnership funds.  In 1994, the first mortgage
loan was refinanced with a new mortgage loan (the "Loan") in the amount of
$7,690,000.  The Partnership received excess refinancing proceeds of $708,150.

On April 23, 1996, the Partnership contracted to sell the property for a sale
price of $11,600,000 to an unaffiliated party, ERP Operating Limited
Partnership (the "Purchaser"), an Illinois limited partnership.  The Purchaser
has deposited $300,000 into an escrow account as earnest money.  The Purchaser
has the option, to be exercised prior to May 22, 1996, to assume the Loan at
closing.  If the option is exercised, the Purchaser is obligated to deposit an
additional $200,000 into the escrow account no later than May 23, 1996.  At
closing, the Loan, which is expected to have a then outstanding balance of
approximately $7,594,000, will be either assumed by the Purchaser or repaid
from the sale proceeds, with the remainder of the purchase price paid in cash.
The Purchaser will pay all closing costs relating to the sale, including title
charges and prepayment or assumption fees relating to the Loan. Of the
remaining sale proceeds, an amount not to exceed $500,000 will be retained by
the Partnership and not be available until 120 days after the closing.  Neither
the General Partner, its affiliates nor any unaffiliated third party will
receive a brokerage commission in connection with the sale of the property.  An
affiliate of the third party providing property management services for the
Partnership and certain affiliates will receive a fee for services in
connection with the sale of the Property of $116,000.  The General Partner will
be reimbursed by the Partnership for actual expenses incurred in connection
with the sale, including the Partnership's legal fees.

If the Loan is to be repaid at closing, the closing will occur on the earliest
day the holder of the Loan will permit the Loan to be repaid, to be no earlier
than June 6, 1996.  If the Purchaser has exercised the option to assume the
Loan, the closing will be extended to a date no later than July 19, 1996.

Affiliates of the General Partner have simultaneously contracted to sell 18
other properties to the Purchaser.  One of the 18 properties, Forest Ridge II
Apartments, Arlington, Texas, which is owned by an affiliate of the General
Partner, is located adjacent to the property.    If a default occurs under the
agreement of sale for the property or the adjacent property, such action will
be considered a default under the other agreement.  In the event the Purchaser
terminates either agreement, the other agreement will also be deemed to be
terminated.

The closing is subject to the satisfaction of numerous terms and conditions,
including the sale of the adjacent property.  There can be no assurance that
all of the terms and conditions will be complied with and, therefore, it is
possible the sale of the property may not occur.
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
- ----------------------------------------------------------------------

     (a)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (2)    Agreement of Sale and attachments thereto relating to the 
                   sale of the Forest Ridge I Apartments, Arlington, Texas.

No information is required under Items 1, 3, 4, 5, 6 and 8 and these items
have, therefore, been omitted.

Signature
- -------------

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.

                         BALCOR REALTY INVESTORS 85-SERIES I A 
                         REAL ESTATE LIMITED PARTNERSHIP

                         By:  Balcor Partners-XVI, an Illinois
                                general partnership, its general
                                partner

                         By:  RGF-Balcor Associates-II, an 
                                Illinois general partnership, a partner

                         By:  The Balcor Company,
                                 a Delaware corporation,
                                 a partner

                         By:  /s/Jerry M. Ogle
                            ------------------------------------
                                 Jerry M. Ogle, Vice President 
                                 and Secretary

Dated:  May 8, 1996