SECURITIES AND EXCHANGE COMMISSION

                            Washington, D.C. 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)                 June 9, 1995 



                         BANYAN SHORT TERM INCOME TRUST             
            (Exact name of Registrant as specified in its charter)


  Massachusetts                 1-8820                       36-6801275   
(State of or other         (Commission File               (I.R.S. Employer
 jurisdiction of                Number)                     Identification  
 incorporation)                                                   Number)     



150 South Wacker Drive, Suite 2900, Chicago, IL                    60606      
(Address of principal executive offices)                         (Zip Code)   


Registrant's telephone number, including area code             (312) 553-9800 


Item 2.     Disposition of Assets.

      On June 9, 1995, Banyan Short Term Income Trust (the "Registrant")
entered into a contract to sell its interest in the Boca Marina Parcel through
a wholly owned subsidiary located in Boca Raton, Florida, consisting of a
seven acre parcel of undeveloped land located adjacent to the Boca Raton Hotel
and Resort (the "Property") to Boca Marina, Ltd., an unaffiliated third party
for a total purchase price of $14,000,000.  On September 21, 1995 the
Registrant completed the sale of the Property and received cash proceeds of
$13,895,000 net of closing costs in the amount of $98,000 for documentary
stamps and $4,500 in title costs.  The sales price of the Property was based
upon consideration of a number of factors including market studies, sale
comparison and other internal valuations and considerations.  The sale of the
Property resulted in a gain on disposition to the Registrant of approximately
$2,300,000.  The Registrant has no further interest in this Property.


                                  SIGNATURES


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.


Date:  October 6, 1995                  BANYAN SHORT TERM INCOME TRUST        
                                                (Registrant)                  


                                        By:   /s/ Joel L. Teglia              
                                              Joel L. Teglia                  
                                        Its:  Vice President, Chief Financial 
                                              and Accounting Officer