UNITED STATES 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: September 3, 1996 CONSOLIDATED CAPITAL PROPERTIES III (Exact name of registrant as specified in its charter) CALIFORNIA 0-10273 94-2653686 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification Number) One Insignia Financial Plaza Post Office Box 1089 Greenville, South Carolina 29602 (Address of Principal Executive Office) Registrant's telephone number, including area code (864) 239-1000 Item 2. Acquisition or Disposition of Assets On September 3, 1996, State Street Bank and Trust Company, the lender, foreclosed on Mountain Plaza Apartments located in El Paso, New Mexico. The mortgage note payable had been in default since May 13, 1996. In the General Partner's opinion, it was not in the Partnership's best interest to contest the foreclosure action. Item 7. Financial Statements and Exhibits (c) Exhibits: EXHIBIT NO. DESCRIPTION 99.1 Substitute Trustee's Deed entered into as of September 3, 1996 by and between Mountain Plaza Associates, Ltd., a Texas limited partnership, and State Street Bank and Trust Company. 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. CONSOLIDATED CAPITAL PROPERTIES III By: CONCAP EQUITIES, INC. General Partner By: /s/ Carroll D. Vinson Carroll D. Vinson President By: /s/ Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: September 18, 1996