Exhibit (a)

Consolidated Capital Properties III
July 30, 1998


Dear Limited Partner:

     Enclosed is the Schedule 14D-9 which was filed by Consolidated Capital
Properties III (the "Partnership") with the Securities and Exchange Commission
in connection with an offer (the "Offer") by Cooper 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 units of limited partnership interest
("Units") in the Partnership.

     The Partnership's general partner is ConCap Equities, Inc. (the "General
Partner"), 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 UNITS IN RESPONSE TO THE OFFER.

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


                      Consolidated Capital Properties III