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):
                        March 23, 2004 (March 19, 2004)




              AMERICAN INSURED MORTGAGE INVESTORS - SERIES 85, L.P.
             (Exact name of registrant as specified in its charter)

        California                      1-11059                  13-3257662
(State or other jurisdiction          (Commission             (I.R.S. Employer
     of incorporation)                File Number)           Identification No.)







                              11200 Rockville Pike
                            Rockville, Maryland 20852
   (Address of principal executive offices, including zip code, of Registrant)

                                 (301) 816-2300
              (Registrant's telephone number, including area code)



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Item 7.  Financial Statements, Pro Forma Financial Information and Exhibits.

(c)  Exhibits. The following exhibit is filed with this report:

     Exhibit 99.1 - Press Release dated March 19, 2004.



Item 12. Results of Operations and Financial Condition

     On March 19, 2004, the General Parter issued a press release  reporting the
Partnership's  financial  results for the three and twelve months ended December
31, 2003. A copy of this press release is attached hereto as Exhibit 99.1.

     The information in this Form 8-K and the Exhibit  attached hereto shall not
be deemed  "filed" for purposes of Section 18 of the Securities Act of 1934, nor
shall it be deemed  incorporated by reference in any filing under the Securities
Act of 1933,  except as shall be  expressly  set forth by specific  reference in
such filing.


SIGNATURE

     Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, as
amended,  the  Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.



                                                    AMERICAN INSURED MORTGAGE
                                                    INVESTORS - SERIES 85, L.P.

                                                    By: CRIIMI, Inc.
                                                        General Partner




Dated:  March 23, 2004                                 By:/s/ Mark A. Libera
                                                       -------------------------
                                                       Mark A. Libera
                                                       Vice President
                                                       Senior Corporate Counsel

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                                  EXHIBIT INDEX

Exhibit
No.                                Description
--------------------------------------------------------------------------------

*    99.1 Press Release dated March 19, 2004.

*    Filed herewith.