8-K

==============================================================================




                       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 7, 2000



                         Commission File Number: 0-25878

                             ILM I LEASE CORPORATION
                             -----------------------
             (Exact name of registrant as specified in its charter)


        Virginia                                                 04-3248637
- --------------------------                                    ------------------
 (State of organization)                                      (I.R.S. Employer
                                                             Identification No.)


1750 Tysons Boulevard, Suite 1200, Tysons Corner, Virginia         22102
- ----------------------------------------------------------    ------------------
(Address of principal executive office)                         (Zip Code)


Registrant's telephone number, including area code:            (888) 257-3550





                               (Page 1 of 3 pages)
                         Exhibit Index Appears on Page 3





ITEM 5.  OTHER EVENTS

      On June 7, 2000, ILM I Lease Corporation (the "Company") received a notice
from ILM Holding, Inc. ("Holding") indicating that, pursuant to the terms of the
existing Facilities Lease Agreement by and between Holding (as lessor) and the
Company (as lessee) dated September 1, 1995, as amended (the "Facilities Lease
Agreement"), the Facilities Lease Agreement would terminate on the date of
consummation of the pending merger of ILM Senior Living, Inc. ("ILM"), an
affiliate of the Company, and Capital Senior Living Corporation ("Capital").
Subject to the satisfaction of certain conditions and the receipt of requisite
approvals, consummation of the merger is expected to occur on or about July 30,
2000.

      The term of the Facilities Lease Agreement is month-to-month, and may be
terminated at the election of Holding upon sale of Holding's senior living
communities to a non-affiliated third party. If the merger is consummated, the
Company's operations would not be expected to continue beyond the termination of
the Facilities Lease Agreement. As a result of the termination of the Facilities
Lease Agreement, it is currently expected that the Company would have nominal
value after payment of expenses and other costs, and the Board accordingly would
review the Company's status and continued existence.

ITEM 7.  FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

      (a) Not Applicable

      (b) Not Applicable

      (c) The following Exhibits are filed as part of this Current Report on
Form 8-K:

          99.1 Press Release of ILM I Lease Corporation dated June 14, 2000.



                                   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.


                                ILM I LEASE CORPORATION


                                By:  /s/ Jeffry R. Dwyer
                                   ------------------------
                                         Name:  Jeffry R. Dwyer
                                         Title: President


Dated:  June 14, 2000






                              (Page 2 of 3 pages)



                                  EXHIBIT INDEX

                                                                   Page No.

99.1    Press Release of ILM I Lease Corporation dated                4
        June 14, 2000.
















                              (Page 3 of 3 pages)

EX-99.1

                            ILM I LEASE CORPORATION
                               RECEIVES NOTICE OF
                                 TERMINATION OF
                           FACILITIES LEASE AGREEMENT

FOR IMMEDIATE RELEASE:

      June 14, 2000, Tysons Corner, Virginia: ILM I Lease Corporation announced
today that it received a notice from ILM Holding, Inc. indicating that, pursuant
to the terms of the existing Facilities Lease Agreement, the agreement would
terminate on the date of consummation of the pending merger by and between ILM
Senior Living, Inc., an affiliate of Lease I, Capital Senior Living Corporation
(NYSE: CSU) and certain Capital affiliates. Subject to the satisfaction of
certain conditions and the receipt of requisite approvals, consummation of the
merger is expected to occur on or about July 30, 2000. If the merger is
consummated, Lease I's operations would not be expected to continue beyond the
termination of the lease agreement. As a result of the lease agreement
termination, it is currently expected that Lease I would have nominal value
after payment of expenses and other costs, and the Board accordingly would
review Lease I's status and continued existence.

      If you have any questions regarding this press release, please call Lease
I, toll free at 1-888-257-3550.

                                     * * *

      THIS PRESS RELEASE CONTAINS "FORWARD-LOOKING STATEMENTS" BASED ON OUR
CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE FORWARD-LOOKING
STATEMENTS ARE SUBJECT TO A NUMBER OF RISKS AND UNCERTAINTIES WHICH COULD CAUSE
OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM HISTORICAL RESULTS OR THOSE
ANTICIPATED AND CERTAIN OF WHICH ARE BEYOND OUR CONTROL. THE WORDS "BELIEVE,"
"EXPECT," "ANTICIPATE" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING
STATEMENTS. WE UNDERTAKE NO OBLIGATION TO PUBLICLY UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.