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)  January 14, 1997

                        BALCOR PENSION INVESTORS - VII
         ------------------------------------------------------------
                           Exact Name of Registrant


Illinois                                0-15528
-----------------------------------     -----------------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3390487
-----------------------------------     -----------------------------------
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
----------------------------------------------------------------------

US West Office Building
----------------------------------------

In  1987, the Partnership funded a $13,000,000 loan evidenced by a promissory
note and secured by a first mortgage on the US West Office Building, Murray,
Utah.  In 1991 the Partnership obtained title to the property through
foreclosure.

On January 14, 1997, the Partnership contracted to sell the property for a sale
price of $14,250,000 to an unaffiliated party, Office Opportunity Fund III,
L.P., a California limited partnership.  The purchaser has deposited $300,000
into an escrow account as earnest money.  The remainder of the sale price will
be payable in cash at closing, scheduled for February 14, 1997.  From the
proceeds of the sale, the Partnership will pay  a brokerage commission of  
$285,000 to an affiliate of the third party providing property management
services for the property.  The Partnership will receive the remaining proceeds
of approximately $13,965,000, less closing costs.  Neither the General Partner
nor any affiliate will receive a brokerage commission in connection with the
sale of the property.  The General Partner will be reimbursed by the
Partnership for actual expenses incurred in connection with the sale.

The closing is subject to the satisfaction of numerous terms and conditions.
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 5. OTHER INFORMATION
-------------------------------------------

Jonathan's Landing Apartments
-------------------------------------

As previously reported, on August 30, 1996, a limited partnership (the "Limited
Partnership") in which the Partnership and an affiliate hold interests and
which owns Jonathan's Landing Apartments, Kent, Washington, contracted to sell
the property to an unaffiliated party, Commercial Ventures, Inc., a Delaware
corporation.  The purchaser assigned its rights under the agreement of sale to
an affiliate, Jonathan's Landing LLC, a California limited liability company,
and the sale closed on November 21, 1996.  The sale price was $21,300,000.
From the proceeds of the sale, the Limited Partnership paid $266,250 to an
unaffiliated party as a brokerage commission, $325,890 of excise tax, closing
costs of $50,644, and a fee of $159,750 to an affiliate of the third party
providing property management services for the property for services rendered
in connection with the sale.  The Limited Partnership received the remaining
proceeds of  approximately $20,497,000, of which the Partnership's share was
approximately $10,966,000.
<PAGE>
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
----------------------------------------------------------------------

     (A)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (99) Agreement of Sale and attachment thereto relating to the 
               sale of the US West Office Building, Murray, Utah.

     No information is required under Items 1, 3, 4, 6 and 8 and these items
have, therefore, been omitted.
<PAGE>
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 PENSION INVESTORS-VII

                         By:  Balcor Mortgage Advisors-VII, an Illinois
                              general partnership, its general partner

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

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


Dated:  January 28, 1997
<PAGE>
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{"company-data": {"conformed-name": "BALCOR PENSION INVESTORS VII", "cik": "0000783456", "assigned-sic": "6500", "irs-number": "363390487", "state-of-incorporation": "IL", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-15528", "film-number": "97512179"}, "business-address": {"street1": "2355 WAUKEGAN ROAD", "street2": "SUITE A200", "city": "DEERFIELD", "state": "IL", "zip": "60015", "phone": "7086772900"}, "mail-address": {"street1": "2355 WAUKEGAN ROAD", "city": "DEERFIELD", "state": "IL", "zip": "60015"}}
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)  January 14, 1997

                        BALCOR PENSION INVESTORS - VII
         ------------------------------------------------------------
                           Exact Name of Registrant

Illinois                                0-15528
-----------------------------------     -----------------------------------
State or other jurisdiction             Commission file number

2355 Waukegan Road
Suite A200
Bannockburn, Illinois                   36-3390487
-----------------------------------     -----------------------------------
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
----------------------------------------------------------------------

US West Office Building
----------------------------------------

In  1987, the Partnership funded a $13,000,000 loan evidenced by a promissory
note and secured by a first mortgage on the US West Office Building, Murray,
Utah.  In 1991 the Partnership obtained title to the property through
foreclosure.

On January 14, 1997, the Partnership contracted to sell the property for a sale
price of $14,250,000 to an unaffiliated party, Office Opportunity Fund III,
L.P., a California limited partnership.  The purchaser has deposited $300,000
into an escrow account as earnest money.  The remainder of the sale price will
be payable in cash at closing, scheduled for February 14, 1997.  From the
proceeds of the sale, the Partnership will pay  a brokerage commission of  
$285,000 to an affiliate of the third party providing property management
services for the property.  The Partnership will receive the remaining proceeds
of approximately $13,965,000, less closing costs.  Neither the General Partner
nor any affiliate will receive a brokerage commission in connection with the
sale of the property.  The General Partner will be reimbursed by the
Partnership for actual expenses incurred in connection with the sale.

The closing is subject to the satisfaction of numerous terms and conditions.
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 5. OTHER INFORMATION
-------------------------------------------

Jonathan's Landing Apartments
-------------------------------------

As previously reported, on August 30, 1996, a limited partnership (the "Limited
Partnership") in which the Partnership and an affiliate hold interests and
which owns Jonathan's Landing Apartments, Kent, Washington, contracted to sell
the property to an unaffiliated party, Commercial Ventures, Inc., a Delaware
corporation.  The purchaser assigned its rights under the agreement of sale to
an affiliate, Jonathan's Landing LLC, a California limited liability company,
and the sale closed on November 21, 1996.  The sale price was $21,300,000.
From the proceeds of the sale, the Limited Partnership paid $266,250 to an
unaffiliated party as a brokerage commission, $325,890 of excise tax, closing
costs of $50,644, and a fee of $159,750 to an affiliate of the third party
providing property management services for the property for services rendered
in connection with the sale.  The Limited Partnership received the remaining
proceeds of  approximately $20,497,000, of which the Partnership's share was
approximately $10,966,000.
ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS
----------------------------------------------------------------------

     (A)  FINANCIAL STATEMENTS AND EXHIBITS:

            None

     (B)  PRO FORMA FINANCIAL INFORMATION:

            None

     (C)  EXHIBITS:

          (99) Agreement of Sale and attachment thereto relating to the 
               sale of the US West Office Building, Murray, Utah.

     No information is required under Items 1, 3, 4, 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 PENSION INVESTORS-VII

                         By:  Balcor Mortgage Advisors-VII, an Illinois
                              general partnership, its general partner

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

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

Dated:  January 28, 1997