BALCOR REALTY INVESTORS 86-Series I
                       A Real Estate Limited Partnership
                                 P.O. Box 7190
                        Deerfield, Illinois 60015-7190

                               November 30, 1995

Dear Investor:

On November 16, 1995, Walton Street Capital Acquisition Co., L.L.C. ("Walton
Street") announced an unsolicited offer to purchase up to 45% of the
outstanding limited partnership interests ("Units") of Balcor Realty Investors
86-Series I A Real Estate Limited Partnership (the "Partnership").  Balcor
Partners-XIX ("Balcor"), your general partner, recommends that you not accept
this offer and not tender your Units to Walton Street.  You should keep the
following in mind:

1.   Balcor believes that Walton Street's offering price of $77.00 per Unit is
inadequate.  Balcor's financial advisor, Alex. Brown & Sons Incorporated
("Alex. Brown"), has advised Balcor that the current liquidation value (defined
below) for each Partnership Unit is between $209.00 and $273.00 (see attachment
to this letter).  The Walton Street offer is 36.8% to 28.2%, respectively, of
Alex. Brown's value range.  Alex. Brown's definition of current liquidation
value ("A.B. Value") assumes an orderly liquidation of the remaining assets of
the Partnership over twelve months.  No opinion of value is expressed by either
Alex. Brown or Balcor to those investors wanting to hold their Units through
the targeted liquidation of the Partnership as more fully described in
paragraph 4 below.

2.   By accepting the offer, you may not be able to fully realize the value of
your Units.  Balcor believes that Walton Street's primary motivation in making
its offer is Walton Street's desire to capitalize on the significant disparity
between the fair market value of the assets held by the Partnership and the
price that Walton Street is offering to you.

3.   As of December 31, 1995 the Partnership expects to have cash reserves of
approximately $34.00 per Unit, which represents approximately 44% of Walton
Street's offering price.  The Partnership expects to make a quarterly
distribution of $2.50 per Unit in mid-January, 1996.

4.   The Partnership has six remaining properties.  Balcor's strategy is to
sell these assets on an orderly basis over the next four to five year period,
although the timing of the liquidation may be lengthened or shortened in
response to changing market conditions, economic factors, interest rates and
unforseen events.  

5.   In general, acceptance of Walton Street's offer will constitute a
significant taxable event to you.  To the extent applicable to your personal
situation, a sale of your Units may cause you to recognize taxable income.  You
should consult your personal tax and legal advisors prior to accepting the
offer and tendering your Units.

Under the terms of Walton Street's offer, they cannot, until December 15, 1995,
purchase and pay for any Units tendered prior to that time, and you may
withdraw Units tendered to Walton Street at any time prior to 12:00 midnight on
December 15, 1995.  If you wish to retain your Units, you need not take any
action regarding the Walton Street offer.

Balcor will continue to act in the manner that Balcor believes is in the best
interests of the limited partners.

Balcor strongly urges you to read carefully the attached Schedule 14D-9 for a
more thorough discussion of the above and other factors.  We have omitted the
Exhibits to the Schedule 14D-9 but will deliver them to you at our expense if
you call 1-800-422-5267.

                                        Very truly yours,

                                        /s/Thomas E. Meador

                                        Thomas E. Meador
                                        Chairman, Balcor Partners-XIX