Exhibit (a)

Multi-Benefit Realty Fund '87-1
December 23, 1997


Dear Limited Partner:

         Enclosed is the Schedule 14D-9 which was filed by Multi-Benefit
Realty Fund '87-1 (the "Partnership") with the Securities and Exchange
Commission in connection with an offer (the "Offer") by Madison River
Properties, L.L.C., a Delaware limited liability company (the "Purchaser"),
Insignia Properties, L.P., a Delaware limited partnership ("IPLP"), Insignia
Properties Trust, a Maryland real estate investment trust ("IPT"), and
Insignia Financial Group, Inc., a Delaware corporation ("Insignia," and
together with IPLP, IPT and the Purchaser, the "Bidders"), to purchase Class A
units of limited partnership interest ("Class A Units") in the Partnership.

         The Partnership's sole general partner (the "General Partner") is
ConCap Equities, Inc., which is an affiliate of the Bidders. Due to the
affiliation between the General Partner of the Partnership and the Bidders,
the General Partner is subject to certain conflicts of interest in connection
with the response to the Offer.

         AS A RESULT OF THE EXISTING AND POTENTIAL CONFLICTS OF INTEREST,
NEITHER THE PARTNERSHIP NOR THE GENERAL PARTNER EXPRESSES ANY OPINION AS TO
THE OFFER AND EACH IS REMAINING NEUTRAL AND MAKING NO RECOMMENDATION AS TO
WHETHER LIMITED PARTNERS SHOULD TENDER THEIR CLASS A UNITS IN RESPONSE TO THE
OFFER.

         Limited Partners are advised to carefully read the enclosed Schedule
14D-9.


                                               Multi-Benefit Realty Fund '87-1