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) September 23, 2005

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


              California               0-16684              94-3026785
      (State or other jurisdiction   (Commission          (I.R.S. Employer
            of incorporation)        File Number)       Identification Number)


                                55 Beattie Place
                              Post Office Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)


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

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 1.02   Termination of a Material Definitive Agreement.

On August 16, 2005 (the "Effective Date"),  Multi-Benefit Realty Fund '87-1 (the
"Registrant"),  a California  limited  partnership  which owns a 99% interest in
Hunt Club Associates,  Ltd., (the  "Partnership"),  and four other  partnerships
("Selling  Partnerships")  entered into an agreement (the "Purchase  Agreement")
with a third party,  Prime Quest Management,  LLC, an Illinois limited liability
company (the  "Purchaser"),  relating to the purchase and sale of five apartment
complexes,  each of which is owned by one of the Selling Partnerships and all of
which together contain a total of 1,324 units. Each of the Selling  Partnerships
is  affiliated  with AIMCO  Properties,  LP, an affiliate  of the  Partnership's
general partner. One of the properties subject to the Purchase Agreement is Hunt
Club  Apartments  ("Hunt  Club'),  a  200-unit   apartment  complex  located  in
Indianapolis,  Indiana that is owned by the Partnership.  Under the terms of the
Purchase  Agreement,  the  Purchaser  agreed  to  purchase  the  five  apartment
complexes  owned  by the  Selling  Partnerships  for a total  purchase  price of
approximately  $39,131,000,  of which  approximately  $4,911,500 is allocated to
Hunt Club (the  "Purchase  Price").  The  Purchaser  also agreed to purchase two
additional  apartment  complexes from  affiliates of the  Partnership's  general
partner pursuant to two separate  purchase and sale agreements.  The purchase of
these two  additional  apartment  complexes is contingent on the purchase of the
five properties covered by the Purchase Agreement.

Under the terms of the Purchase  Agreement,  the  Purchaser  may  terminate  the
Purchase Agreement at any time prior to the expiration of the feasibility period
as defined in the Purchase Agreement,  acting in the Purchaser's sole discretion
and for any reason or no reason,  upon delivery of written notice to the Selling
Partnerships  and the  escrow  agent.  On  September  23,  2005,  the  Purchaser
delivered written notice to the Selling Partnerships and the escrow agent of its
election to terminate the Purchase Agreement pursuant to its terms.







                                    SIGNATURE


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



                                 MULTI-BENEFIT REALTY FUND '97-1


                                 By:     ConCap Equities, Inc.
                                         General Partner

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

                                 Date:   September 29, 2005