UNITED STATES
                       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) August 16, 2005

                       MULTI-BENEFIT REALTY FUND '87-1
            (Exact name of Registrant as specified in its charter)


            California                0-16684                94-3026785
      (State or other jurisdiction  (Commission            (I.R.S. Employer
         of incorporation or        File Number)        Identification Number)
           organization)
                                55 Beattie Place
                              Post Office Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)


                                 (864) 239-1000
                           (Issuer's telephone number)

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously satisfy the filing obligations of the registrant under any of the
following provisions:

[ ]   Written  communications  pursuant to Rule 425 under the  Securities  Act
      (17 CFR 230.425)

[ ]   Soliciting  material  pursuant to Rule 14a-12 under the Exchange Act (17
      CFR 240.14a-12)

[ ]   Pre-commencement  communications  pursuant  to Rule  14d-2(b)  under the
      Exchange Act (17 CFR 240.14d-2(b))

[ ]   Pre-commencement  communications  pursuant  to Rule  13e-4(c)  under the
      Exchange Act (17 CFR 240.13e-4(c))









Item 1.01   Entry into a Material Definitive Agreement.

Multi-Benefit  Realty  Fund  '87-1  (the  "Registrant"),  a  California  limited
partnership,   owns  a  99%  interest  in  Hunt  Club  Associates,   Ltd.,  (the
"Partnership").  The Partnership owns Hunt Club Apartments, a 200-unit apartment
complex located in Indianapolis,  Indiana ("Hunt Club"). On August 16, 2005, the
Partnership and four other partnerships that own apartment complexes  containing
a total of 1,324 units (the "Selling Partnerships"), entered into a Purchase and
Sale  Contract  (the  "Purchase  Agreement")  with a third  party,  Prime  Quest
Management,  LLC, an Illinois limited  liability  company,  (the "Purchaser") to
sell the five  apartment  complexes  owned by the  Selling  Partnerships  to the
Purchaser  for a total  sales  price  of  approximately  $39,131,000,  of  which
$4,911,500  represents  the sales  price for Hunt Club.  The  Purchaser  is also
purchasing two  additional  apartment  complexes from  affiliates of the general
partner  pursuant to two  separate  purchase  and sale  agreements.  Each of the
Selling Partnerships is affiliated with AIMCO Properties,  L.P., an affiliate of
the general partner of the Partnership.

The  following  is a  summary  of the  terms  and  conditions  of  the  Purchase
Agreement,  which  summary is  qualified  in its  entirety by  reference  to the
Purchase  Agreement,  a copy of which will be filed with the  Registrant's  Form
10-QSB for the quarterly period ended September 30, 2005.

PURCHASE PRICE. The total purchase price is approximately $39,131,000,  of which
$4,911,500  represents  the sales  price  allocation  to Hunt  Club,  subject to
certain  prorations and adjustments at the closing.  The Purchaser  delivered an
initial  deposit  of  approximately   $321,000.  The  Partnership  is  allocated
approximately  $40,000  of the  initial  deposit.  Until the  expiration  of the
feasibility  period,  the  Purchaser  has the  right,  in its sole and  absolute
discretion,  to recover the entire deposit. Within one day after the feasibility
period  expires,  the Purchaser is required to deposit an additional  payment of
approximately  $449,000.  The Partnership is allocated  approximately $56,000 of
the additional deposit. After the expiration of the feasibility period, both the
initial and the additional deposit become nonrefundable.

CLOSING.  The expected  closing date for the transaction is the earlier to occur
of 10 days  after  the  satisfaction  or  waiver of all  conditions  to  closing
contained  in  the  Purchase   Agreement  or  November  15,  2005.  The  Selling
Partnerships  have the  right to extend  the  closing  for up to thirty  days to
satisfy any condition to closing,  or such later date as is mutually  acceptable
to both  parties.  Additionally,  the  closing is  contingent  on the  Purchaser
closing on the two additional  apartment  complexes  mentioned above,  which are
being purchased pursuant to separate agreements.  The closing is also subject to
customary closing conditions and deliveries.

COSTS AND FEES.  With respect to Hunt Club, the Purchaser will pay any transfer,
sales,  use, gross receipts or similar taxes,  recording  costs, any premiums or
fees  required to be paid with  respect to the title  policy and one-half of the
customary  closing costs of the escrow agent.  The Partnership will pay the base
premium for its title policy and one-half of the customary  closing costs of the
escrow agent relating to Hunt Club.

REPRESENTATIONS AND WARRANTIES.  The Selling Partnerships and the Purchaser each
made limited representations and warranties to the other.

RISK OF LOSS.  The risk of loss or damage  to the five  apartment  complexes  by
reason of any  insured or  uninsured  casualty  during the  period  through  and
including  the  closing  date  will be borne by the  Selling  Partnerships.  The
Selling  Partnerships must maintain all of their existing  insurance coverage on
the five apartment complexes in full force and effect until the closing date.

ASSIGNMENT.  With  the  exception  of an  assignment  to  an  affiliate  of  the
Purchaser,  the Purchase  Agreement is not  assignable by the Purchaser  without
first obtaining the prior written approval of the Selling Partnerships.

DEFAULTS AND REMEDIES.  If the Purchaser  defaults in its obligations to deliver
when required any required  deposits,  the purchase price or any other specified
deliveries,  then,  immediately  and without notice or cure, the Purchaser shall
forfeit such  deposits to the Selling  Partnerships,  and neither party shall be
obligated to proceed with the purchase and sale of the five apartment complexes.
The Selling  Partnerships  expressly waive the remedies of specific  performance
and additional damages for any such defaults by the Purchaser.

If  the  Selling   Partnerships,   prior  to  the  closing,   default  on  their
representations,  warranties,  covenants, or obligations,  the Purchaser has the
option  of  (i)  seeking  specific  performance  of  the  Selling  Partnerships'
obligation  to  deliver  the  deed  pursuant  to  the  Purchase  Agreement  (ii)
terminating  the Purchase  Agreement,  having  returned any deposits made by the
Purchaser, and recovering, as its sole recoverable damages its documented direct
and  actual  out-of-pocket  expenses  and  costs in an  amount  not to exceed in
aggregate for all Selling  Partnerships of $32,000 of which approximately $4,000
would be allocated to the Partnership.







                                    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.



                                MULTI-BENEFIT REALTY FUND '87-1


                                By: ConCap Equities, Inc.
                                    General Partner


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


                              Date: August 22, 2005