MCNEIL REAL ESTATE FUND XXI L P
8-K, 1998-06-05
REAL ESTATE
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                       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)             May 29, 1998
                                                  ------------------------------




                        McNEIL REAL ESTATE FUND XXI, L.P.
- --------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)





         California                    0-13356               33-0030615
- --------------------------------------------------------------------------------
(State or other jurisdiction of       (Commission           (I.R.S. Employer
incorporation or organization)         File Number)          Identification No.)




             13760 Noel Road, Suite 600, LB70, Dallas, Texas, 75240
- --------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip code)




Registrant's telephone number, including area code    (972)  448-5800
                                                   -----------------------------



<PAGE>




ITEM 2.  ACQUISITION OR DISPOSITION OF ASSETS

On May 29,  1998,  Wise County  Plaza,  a 147,848  square foot  shopping  center
located in Wise, Virginia,  was foreclosed on by the lender, Ocwen Federal Bank,
FSB. Debt on the foreclosed property totaled approximately $6.1 million.







<PAGE>



                        McNEIL REAL ESTATE FUND XXI, L.P.

                                   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 thereunto duly authorized:



                                     McNEIL REAL ESTATE FUND XXI, L.P.



June 5, 1998                         By:  /s/ Carol A. Fahs
- ---------------------                   ----------------------------------------
Date                                      Carol A. Fahs
                                          Chief Accounting Officer of McNeil
                                            Real Estate Management, Inc.







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