----

----

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------|

| For the transition period from ____________ to ____________ |
|-------------------------------------------------------------|

| Delaware         |   | 16-1275925                        |
|----------------------------------------------------------|--------|-----------------------------------|
| (State of Formation)            |   | (IRS Employer Identification No.) |

| 2350 North Forest Road, Getzville, New York 14068 |
|---------------------------------------------------|
| (Address of Principal Executive Office)           |

| Registrant’s Telephone Number:                                 |   | (716) 636-9090                        |
|-------------------------------------------------------------------------------------|--------|---------------------------------------|
| Securities registered pursuant to Section 12(b) of the Act:     |   | None                                  |
| Securities registered pursuant to Section 12(g) of the Act:     |   | Units of Limited Partnership Interest |

----

----

| ·   | real estate related risks; |
|--------------------|----------------------------|

| ·   | financing risks; |
|--------------------|------------------|

| ·   | tax risks; |
|--------------------|------------|

| ·   | environmental and other legal risks; and |
|--------------------|------------------------------------------|

| ·   | risks for investors. |
|--------------------|----------------------|

| ·   | decrease the rental rates that we would be able to charge in the absence of such direct competition; and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | reduce the occupancy rates that we would otherwise be able to achieve. |
|--------------------|------------------------------------------------------------------------|

----

| ·   | the risk that our cash flow will be insufficient to meet required payments of principal and interest; and |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | the risk that we will not be able to renew, repay or refinance our debt when it matures or that the terms of any renewal or refinancing will not be as favorable as the existing terms of that debt. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | we may have to pay for property damage and for investigation and clean-up costs incurred in connection with the contamination; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | the law typically imposes clean-up responsibility and liability regardless of whether the owner or operator knew of or caused the contamination; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | even if more than one person may be responsible for the contamination, each person who shares legal liability under the environmental laws may be held responsible for all of the clean-up costs; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | governmental entities or other third parties may sue the owner or operator of a contaminated site for damages and costs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | properly manage and maintain the asbestos; |
|--------------------|--------------------------------------------|

| ·   | notify and train those who may come into contact with asbestos; and |
|--------------------|---------------------------------------------------------------------|

| ·   | undertake special precautions, including removal or other abatement, if asbestos would be disturbed during renovation or demolition of a building. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Property Name and Location           |   | General Character of Property                     |   | Purchase Date |
|----------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|---------------|
|                                                                                   |   |                                                        |   |          |
| Commercial Park West                                                         |   | Office complex consisting of one building    |   | June 1991     |
| Durham, NC                                                    |   | totaling 35,000 square feet.                                |   |          |

----

|                                                                                                                   |   | 2009   |       |   | 2008   |   |      | 2007   |   |   | 2006      |   |   | 2005   |          |
|------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|---------------|
| Balance sheet data                                                                                                     |   |   |       |   |   |   |      |   |   |   |      |   |   |   |          |
| Net rental property                              |   | $      | 1,218,137  |   |   |   | 1,218,137 |   |   |   | 1,218,137 |   |   |   | 1,218,137     |   |   |   | 5,891,292 |   |
| Total assets                                                                                                           |   |   | 1,269,413  |   |   |   | 1,261,636 |   |   |   | 1,231,862 |   |   |   | 1,248,564     |   |   |   | 6,233,361 |   |
| Mortgage loans payable                                                                                                 |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | -             |   |   |   | 5,670,597 |   |
| Partners' deficit                                                                                                      |   |   | (1,088,352 | )      |   |   | (763,568  | )      |   |   | (625,170  | )      |   |   | (387,786      | ) |   |   | (282,063 | ) |
| Operating data                                                                                                         |   |   |       |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |   |   |
| Rental income                                                                                                          |   |   | 306,026    |   |   |   | 468,993   |   |   |   | 473,450   |   |   |   | 1,236,456     |   |   |   | 848,057 |   |
| Other income                                                                                                           |   |   | 75         |   |   |   | 350       |   |   |   | 5,004     |   |   |   | 126,666       |   |   |   | 44,687 |   |
| Total revenue                                                                                                          |   |   | 306,101    |   |   |   | 469,343   |   |   |   | 478,454   |   |   |   | 1,363,122     |   |   |   | 892,744 |   |
| Property operating costs                                                                                               |   |   | 318,745    |   |   |   | 325,024   |   |   |   | 341,457   |   |   |   | 725,233       |   |   |   | 728,546 |   |
| Interest - affiliates                                                                                                  |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | 5,043         |   |   |   | - |   |
| Interest expense                                                                                                       |   |   | 115,973    |   |   |   | 107,370   |   |   |   | 104,401   |   |   |   | 535,520       |   |   |   | 472,614 |   |
| Administrative expenses Write-off of deferred mortgage costs                                                           |   |   | 196,167    |   |   |   | 175,347   |   |   |   | 269,980   |   |   |   | 290,95684,781 |   |   |   | 267,126 |   |
| Total expenses                                                                                                         |   |   | 630,885    |   |   |   | 607,741   |   |   |   | 715,838   |   |   |   | 1,641,533     |   |   |   | 1,468,286 |   |
| Net loss before gain on sale of property                                                                               |   |   | (324,784   | )      |   |   | (138,398  | )      |   |   | (237,384  | )      |   |   | (278,411      | ) |   |   | (575,542 | ) |
| Gain on sale of property                                                                                               |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | 172,688       |   |   |   | - |   |
| Net loss                          |   |   | (324,784   | )      |   |   | (138,398  | )      |   |   | (237,384  | )      |   |   | (105,723      | ) |   |   | (575,542 | ) |
| Cash flow data                                                                                                         |   |   |       |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |   |   |
| Net cash provided (used) by:                                                                                           |   |   |       |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |   |   |
| Operating activities                                                                                                   |   |   | (165,088   | )      |   |   | (24,243   | )      |   |   | (53,503   | )      |   |   | (375,763      | ) |   |   | (255,869 | ) |
| Investing activities                                                                                                   |   |   | -          |   |   |   | -         |   |   |   | -         |   |   |   | 4,845,843     |   |   |   | (40,821 | ) |
| Financing activities                                                                          |   | $      | (165,088   | )      |   |   | 24,243    |   |   |   | 53,503    |   |   |   | (4,545,924    | ) ) |   |   | 372,534 |   |
|          Net increase (decrease) incash and equivalents    |   |   |       |   |   |   |      |   |   |   |      |   |   |   | (75,844       |   |   |   | 75,844 |   |
| Per limited partnership unit:                                                                                          |   |   |       |   |   |   |      |   |   |   |      |   |   |   |          |   |   |   |   |   |
| Net loss                          |   | $      | (15.00     | )      |   |   | (6.39     | )      |   |   | (10.96    | )      |   |   | (5.70         | ) |   |   | (26.58 | ) |

----

----

----

----

|  Name          |   | Title of All Positions Held with the Corporate General Partner     |   |  Year First Elected to Position |
|------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------------------------------------|
|                               |   |                                                                                   |   |                                 |
| Joseph M. Jayson    |   | Chairman of the Board, President and Treasurer                                    |   |     1979         |
| Judith P. Jayson    |   | Vice President and Director                                                  |   |      1979   |

----

----

----

|                                                                                                                               |   | Page   |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| (a)   Consolidated Financial Statements                                                    |   |   |   |
|                                                                                                           |   |   |   |
| Independent Auditors’ Report                                                                                       |   |   | F-1    |   |
|                                                                                                                               |   |   |   |   |
| Consolidated Balance Sheets as of December 31, 2009 and 2008 Consolidated Statements of Operations for the years ended             |   |   | F-2    |   |
|                                                                                                                               |   |   |   |   |
| December 31, 2009, 2008 and 2007 Consolidated Statements of Partners’ Equity for the years                                   |   |   | F-3    |   |
|                                                                                                                               |   |   |   |   |
| ended December 31, 2009, 2008 and 2007 Consolidated Statements of Cash Flows for the years ended                              |   |   | F-4    |   |
|                                                                                                                               |   |   |   |   |
| December 31, 2009, 2008 and 2007                                                                               |   |   | F-5    |   |
|                                                                                                                               |   |   |   |   |
|   Notes to Consolidated Financial Statements                                                                        |   |   | F-6    |   |
|                                                                                                                               |   |   |   |   |
| FINANCIAL STATEMENT SCHEDULE                                                                                                       |   |   |   |   |
|                                                                                                                               |   |   |   |   |
| (i)  Schedule III - Real Estate and Accumulated Depreciation           |   |   | F-12   |   |

| All other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or the notes thereto. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Plan of acquisition, reorganization, arrangement, liquidation, or successio |
|--------|----|-----------------------------------------------------------------------------|

| (a)     | Stipulation of Settlement Agreement dated August 29, 2001 is incorporated herein by reference. |
|------------------------|------------------------------------------------------------------------------------------------|

| (b)     | Order and Final Judgment Approving Settlement and Awarding Fees and Expenses dated November 29, 2001 is incorporated herein by reference. |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Instruments defining the rights of security holder, including indenture |
|--------|----|-------------------------------------------------------------------------|

|          (a)     | Property Management Agreement with Realmark Corporation included with the Registration Statement, Form S-11, of the Registrant as filed and amended to date, is incorporated herein by reference. |
|------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 14. | Code of Ethics filed December 31, 2003 is incorporated herein by reference. |
|--------|-----|-----------------------------------------------------------------------------|

|   | 21. | Subsidiaries of the Partnership is filed herewith. |
|--------|-----|----------------------------------------------------|

|   | 31. | Certification Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, is filed herewith. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | 32. | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, is filed herewith. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   |                                        |
|----------------------|--------|---------------------------------------------|
|                 |   |                                        |   |
| Date: March 31, 2010 | By:    | /s/ Joseph M. Jayson    |   |
|                 |   | JOSEPH M. JAYSON,       |   |
|                 |   | Individual General Partner                  |   |
|                 |   |                                        |   |

|                       | REALMARK PROPERTIES, INC.Corporate General Partner |                                  |
|----------------------------|----------------------------------------------------|---------------------------------------|
|                       |                                               |                                  |   |
| Date:  March 31, 2010 | By:                                                | /s/ Joseph M. Jayson   |   |
|                       |                                               | JOSEPH M. JAYSON,           |   |
|                       |                                               | President, Treasurer and Director     |   |
|                       |                                               |                                  |   |

|                 | Company Name |                            |
|----------------------|--------------|---------------------------------|
|                 |         |                            |   |
| Date" March 31, 2010 | By:          | /s/ Judith P. Jayson  |   |
|                 |         | JUDITH P. JAYSON,          |   |
|                 |         | Vice President and Director     |   |
|                 |         |                            |   |

----

----

|                                                                                                                                                             |   | 2009   |       |          | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|---------------|--------|--------|
|                                                                                                                                                        |   |   |       |          |   |   |
|  Property and equipment, at cost, all held for sale:                                                                                                        |   |   |       |          |   |   |
|  Land                                                                                                                                                  |   | $      | 299,744    |          |   |   | 299,744 |   |
|  Buildings and improvements                                                                                                                       |   |   | 1,954,494  |          |   |   | 1,954,494 |   |
|                                                                                                                                                             |   |   | 2,254,238  |          |   |   | 2,254,238 |   |
|  Less accumulated depreciation                                                                                                                         |   |   | (1,036,101 | )        |   |   | (1,036,101 | ) |
|                 Net property and equipment                                  |   |   | 1,218,137  |          |   |   | 1,218,137 |   |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|  Accounts receivable                                                                                                                              |   |   | 47,869     |          |   |   | 36,771 |   |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|  Other assets                                                                                                                                          |   |   | 3,407      |          |   |   | 6,728 |   |
|                  Total assets                                     |   | $      | 1,269,413  |          |   |   | 1,261,636 |   |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|  Liabilities and Partners’ Deficit                                                                                                                    |   |   |       |          |   |   |   |   |
|  Liabilities:                                                                                                                                               |   |   |       |          |   |   |   |   |
|       Payables to affiliated parties                                                                                               |   |   | 1,805,007  |          |   |   | 1,639,919 |   |
|       Accounts payable and accrued expenses                                                                                        |   |   | 262,510    |          |   |   | 180,989 |   |
|       Accrued interest payable                                                                                                |   |   | 253,513    |          |   |   | 169,008 |   |
|       Security deposits and prepaid rents                                                                                               |   |   | 36,735     |          |   |   | 35,288 |   |
|                   Total liabilities                                    |   |   | 2,357,765  |          |   |   | 2,025,204 |   |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|  Partners’ deficit:                                                                                                                                   |   |   |       |          |   |   |   |   |
|       General partners                                                                                                   |   |   | (214,379   | )        |   |   | (204,636 | ) |
|       Limited partners                                                                                                             |   |   | (873,973   | )             |   |   | (558,932 | ) |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|                    Total partners’ deficit        |   |   | (1,088,352 | )   |   |   | (763,568 | ) |
|                                                                                                                                                             |   |   |       |          |   |   |   |   |
|                    Total liabilities and partners’ deficit  |   | $      | 1,269,413  |          |   |   | 1,261,636 |   |

----

|                                                                                                                                                                      |   | 2009   |     |          | 2008   |   |     | 2007          |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|---------------|--------|--------|----------|---------------|--------|
|  Income:                                                                                                                                                             |   |   |     |          |   |   |     |          |   |
|  Rental                                                                                                                                                    |   | $      | 306,026  |          |   |   | 468,993  |          |   |   | 473,450 |   |
|  Interest and other                                                                                                                                                  |   |   | 75       |          |   |   | 350      |          |   |   | 5,004 |   |
|                         Total income    |   |   | 306,101  |          |   |   | 469,343  |          |   |   | 478,454 |   |
|                                                                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|  Expenses:                                                                                                                                                           |   |   |     |          |   |   |     |          |   |   |   |   |
|  Property operations                                                                                                                                  |   |   | 318,745  |          |   |   | 325,024  |          |   |   | 341,457 |   |
|  Interest                                                                                                                                                       |   |   | 115,973  |          |   |   | 107,370  |          |   |   | 104,401 |   |
|  Administrative:                                                                                                                                                     |   |   |     |          |   |   |     |          |   |   |   |   |
|             Affiliated parties                                                                                |   |   | 57,545   |          |   |   | 69,525   |          |   |   | 95,622 |   |
|             Other                                                                                        |   |   | 138,622  |          |   |   | 105,822  |          |   |   | 174,358 |   |
|                                                                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|                         Total expenses       |   |   | 630,885  |          |   |   | 607,741  |          |   |   | 715,838 |   |
|                                                                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|                          Net loss                 |   | $      | (324,784 | )   |   |   | (138,398 | )   |   |   | (237,384 | ) |
|                                                                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|  Net loss per limited partnership unit                                                                                                                     |   | $      | (15.00   | )        |   |   | (6.39    | )        |   |   | (10.96 | ) |
|                                                                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|  Weighted average number of limited partnership                                                                                                                      |   |   |     |          |   |   |     |          |   |   |   |   |
|      units outstanding                                                                                                                      |   |   | 21,002.8 |          |   |   | 21,002.8 |          |   |   | 21,002.8 |   |

----

|                                                  |   |                        |     |          |  Limited Partners |   |
|-------------------------------------------------------|--------|-----------------------------|----------|---------------|------------------------|--------|
|                                                  |   |  General Partners |     |          | Units                  |   |   | Amount |   |
|  Balances at December 31, 2006                   |   |                        | (193,362 | )             |                   |   | 21,002.8 |   |   |   | (194,424 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Net loss                                   |   |                        | (7,122   | )        |                   |   | - |   |   |   | (230,262 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Balances at December 31, 2007    |   |                        | (200,484 | )   |                   |   | 21,002.8 |   |   |   | (424,686 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Net loss                                   |   |                        | (4,152   | )   |                   |   | - |   |   |   | (134,246 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Balances at December 31, 2008                   |   |                        | (204,636 | )   |                   |   | 21,002.8 |   |   |   | (558,932 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Net loss                         |   |                        | (9,743   | )        |                   |   | - |   |   |   | (315,041 | ) |
|                                                  |   |                        |     |          |                   |   |   |   |   |   |   |   |
|  Balances at December 31, 2009         |   | $                           | (214,379 | )        |                   |   | 21,002.8 |   |   |   | (873,973 | ) |

----

|                                                                                                                                                                       |   | 2009   |     |                | 2008   |   |     | 2007          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|---------------------|--------|--------|----------|---------------|--------|
|  Cash flows from operating activities:                                                                                                                                |   |   |     |                |   |   |     |          |   |
|    Net loss                                                                                                                                       |   | $      | (324,784 | )    |   |   | (138,398 | )        |   |   | (237,384 | ) |
|    Adjustments to reconcile net loss to net       cash used in operating activities:                                                    |   |   |     |                |   |   |     |          |   |   |   |   |
|            Changes in:                                                                                                   |   |   |     |                |   |   |     |          |   |   |   |   |
|                Accounts receivable                                |   |   | (11,098  | )              |   |   | (33,832  | )   |   |   | (484 | ) |
|                Other assets                                                           |   |   | 3,321    |                |   |   | 4,058    |          |   |   | 17,186 |   |
|                Accounts payable and accrued expenses                                            |   |   | 81,521   |                |   |   | 59,425   |          |   |   | 82,717 |   |
|                Accrued interest payable                                                              |   |   | 84,505   |                |   |   | 84,504   |          |   |   | 84,504 |   |
|                Security deposits and prepaid rents                                              |   |   | 1,447    |                |   |   | -        |          |   |   | (42 | ) |
|                        Net cash used in operating activities |   |   | (165,088 | )                   |   |   | (24,243  | )             |   |   | (53,503 | ) |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |
|  Cash flows from financing activities – payables to                                                                                                             |   |   |     |                |   |   |     |          |   |   |   |   |
|    affiliated parties                                                                                                                                            |   |   | 165,088  |                |   |   | 24,243   |          |   |   | 53,503 |   |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |
|  Net increase in cash and equivalents                                                                                                                  |   |   | -        |                |   |   | -        |          |   |   | - |   |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |
|  Cash and equivalents at beginning of year                                                                                                                       |   |   | -        |                |   |   | -        |          |   |   | - |   |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |
|  Cash and equivalents at end of year                                                                                                                             |   | $      | -        |                |   |   | -        |          |   |   | - |   |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |
|  Supplemental disclosure of cash flow information -                                                                                                                   |   |   |     |                |   |   |     |          |   |   |   |   |
|      cash paid during the year for interest                                                                                                  |   | $      | 31,468   |                |   |   | 22,866   |          |   |   | 19,897 |   |
|                                                                                                                                                                       |   |   |     |                |   |   |     |          |   |   |   |   |

----

|   | (1) | Formation and Operation of Partnership |
|--------|-----|----------------------------------------|

|   | Realmark Property Investors Limited Partnership - V (the Partnership) is a Delaware limited partnership formed on February 28, 1986, to invest in a diversified portfolio of income-producing real estate investments.  In 1986 and 1987, the Partnership sold, through a public offering, 21,002.8 units of limited partnership interest for $20,999,800.  The general partners are Realmark Properties, Inc. (the Corporate General Partner) and Joseph M. Jayson (the Individual General Partner) who is the sole shareholder of J.M. Jayson & Company, Inc. Realmark Properties, Inc. is a wholly-owned subsidiary of J.M. Jayson & Company, Inc.  Under the partnership agreement, the general partners and their affiliates can receive compensation for services rendered and reimbursement for expenses incurred on behalf of the Partnership (note 4). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Summary of Significant Accounting Policies |
|--------|-----|--------------------------------------------|

|   | (a)Basis of Accounting and Consolidation |
|--------|------------------------------------------|

|   | The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America and include the accounts of the Partnership and its two subsidiaries that are wholly-owned: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Realmark Camelot, LLC, a dormant company. |
|--------|-----|-------------------------------------------|

|   | (2) | Com Realmark mercial, LLC that owns  a 35,000 square foot building in Commercial Park West located in Durham, North Carolina. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Estimates |
|--------|-----|-----------|

|   | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (2) | Summary of Significant Accounting Policies, Continued |
|--------|-----|-------------------------------------------------------|

|   | (c) | Property and Equipment |
|--------|-----|------------------------|

|   | Property and equipment are recorded at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets, from 5 to 25 years.  Significant improvements are capitalized, while expenditures for maintenance, repairs and replacements are charged to expense as incurred.  Upon disposal of depreciable property, the appropriate property accounts are reduced by the related costs and accumulated depreciation and gains and losses are reflected in the consolidated statements of operations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  In determining whether there is an impairment of long-lived assets, the Partnership compares the sum of the expected future net cash flows (undiscounted and without interest charges) to the carrying amount of the assets.  At December 31, 2009, no impairment in value has been recognized. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnerships’ policy is to consider a property to be held for sale or disposition when the Partnership has committed to a plan to sell or dispose of such property and active marketing activity has commenced or is expected to commence in the near term or the Partnership has concluded that it may dispose of the property by no longer funding operating deficits or debt service requirements of the property thus allowing the lender to realize upon its security.  Any properties identified as “held for sale or disposition” are no longer depreciated.  The remaining property was for sale in 2009, 2008, and 2007.  Results of operations for property actively marketed for sale is recorded in continuing operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Cash and Equivalents |
|--------|-----|----------------------|

|   | Cash and equivalents include money market accounts and any highly liquid debt instruments purchased with a maturity of three months or less. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Rental Income |
|--------|-----|---------------|

|   | Rental income is recognized as earned according to the terms of the leases.  Leases for residential properties are generally for periods of one year or less, payable monthly.  Commercial leases are generally for periods of one to five years.  Delinquent residential property rent is not recorded. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (2) | Summary of Significant Accounting Policies, Continued |
|--------|-----|-------------------------------------------------------|

|   | (f) | Per Unit Data |
|--------|-----|---------------|

|   | Per limited partnership unit data is based on the weighted average number of limited partnership units outstanding for the year. |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Fair Value of Financial Instruments |
|--------|-----|-------------------------------------|

|   | The fair value of the Partnership’s financial instruments approximated their carrying values at December 31, 2009. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Income Allocation and Distributable Cash Flow |
|--------|-----|-----------------------------------------------|

|   | The partnership agreement provides that income not arising from sale and refinancing activities and all partnership losses are to be allocated 97% to the limited partners and 3% to the general partners.  Partnership income arising from sale or refinancing activities is allocated in the same proportion as distributions of distributable cash from sale proceeds.  In the event there is no distributable cash from sale proceeds, taxable income will be allocated 87% to the limited partners and 13% to the general partners.  The above is subject to tax laws that were applicable at the time of the formation of the Partnership and may be adjusted due to subsequent changes in the Internal Revenue Code. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The partnership agreement also provides for the distribution to the partners of net cash flow from operations.  In connection with the pending sale of the Partnership’s properties (note 6), it is anticipated that there will be no future distributions of net cash flow from operations.  Sale or refinancing proceeds are distributed to the extent available, 100% to the limited partners until there has been a return of the limited partners capital contribution plus an amount sufficient to provide a 7%, not compounded, return on their adjusted capital contributions for all years following the termination of the offering of the units.  It is anticipated that there will not be sufficient cash flow from the sale of the Partnership’s remaining properties to provide this return to the limited partners. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Recent Accounting Pronouncements |
|--------|-----|----------------------------------|

|   | In June 2009, the Financial Accounting Standards Board (FASB) issued the Accounting Standards Codification (Codification).  Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP).  The Codification is intended to reorganize, rather than change, exiting GAAP.  Accordingly, all reference to currently existing GAAP have been removed and have been replaced with plain English explanation of the Partnership’s accounting policies.  The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Subsequent Events |
|--------|-----|-------------------|

|   | The Partnership has evaluated events after December 31, 2009, and through March 31, 2010, which is the date the financial statements were available to be issued, and determined that any events or transactions occurring during this period that would require recognition or disclosure are properly addressed in these financial statements. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (2) | Summary of Significant Accounting Policies, Continued |
|--------|-----|-------------------------------------------------------|

|   | (k) | Income Taxes |
|--------|-----|--------------|

|   | In June 2006, the Financial Accounting Standards Board issued ASC 740-10-50 (FASB Interpretation No. 48 "FIN 48"), Accounting for Uncertainty in Income Taxes, which prescribed a comprehensive model for how a company should measure, recognize, present, and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return. The effective date for ASC 740-10-50 for entities other than public entities was revised to years beginning after December 15, 2008. The Company adopted ASC 740-10-50 as of January 1, 2009 and, thereafter, recognizes the tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. There was no impact to the Company's financial statements as a result of the implementation of ASC 740-10-50. Interest and/or penalties related to income tax matters, if incurred, are recognized as a component of income tax expense. The Company's income tax filings are subject to audit by various taxing authorities. The Company's open audit periods are 2006-2008. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Segment Information |
|--------|-----|---------------------|

|   | The Partnership’s operating segments all involve the ownership and operation of income-producing real property, and are aggregated into one reporting segment. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Investments in Real Estate |
|--------|-----|----------------------------|

|   | The carrying value of the property known as Commercial Park West amounted to $1,218,137 as of December 31, 2009 and 2008.  Depreciation expense not recorded amounted to $80,198 for each of the years ended December 31, 2009 and 2008.  Cumulative depreciation that has not been recorded amounting to $783,927 and $703,729 for the years ended December 31, 2009 and 2008, respectively. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Related Party Transactions |
|--------|-----|----------------------------|

|   | The Corporate General Partner and its affiliates earn fees, principally for property and partnership management and are reimbursed for services rendered to the Partnership, as provided for in the partnership agreement.  A summary of those items follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                      |   | 2009    |   |   | 2008   |   |   | 2007   |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|---------|
| Property management fees based on a percentage (generally 6%) of rental income                                                                                            |   |  $ | 17,059 |   |   |   | 26,110 |   |  $ |   | 28,394 |   |
| Reimbursement for costs of services to the Partnership that include investor relations, marketing of properties, professional fees, communications, supplies, accounting, |   |    | 40,486 |   |   |   | 43,415 |   |    |   | 67,228 |   |
| printing, postage and other items                                                                                                                                         |   |    | 57,545 |   |   |   | 69,525 |   |    |   | 95,622 |   |

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|   | (4) | Related Party Transactions, Continued |
|--------|-----|---------------------------------------|

|   | In addition to the above, other property specific expenses such as payroll, benefits, etc. are charged to property operations on the Partnership's consolidated statements of operations.  Payables to affiliated parties are payable on demand and bear interest at 8% in 2009, 2008 and 2007. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Payable to Affiliated Parties |
|--------|-------------------------------|

|   | Payable to affiliates amounted to $1,805,007 and $1,639,919 at December 31, 2009 and 2008, respectively.  Of this amount, $1,066,719 is payable to an affiliate under a Memorandum of Understanding Agreement dated December 8, 2006.  Under the terms of this agreement, the Partnership agrees to repay this loan plus interest at a rate of 8% per annum, upon the sale of the remaining building at Commercial Park West, 2327 Englert Drive, which is currently being marketed for sale. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Property Disposition Fees |
|--------|---------------------------|

|   | According to the terms of the partnership agreement, the general partners are also allowed to collect a property disposition fee upon the sale of acquired properties.  This fee is not to exceed the lesser of 50% of amounts customarily charged in arm’s-length transactions by others rendering similar services for comparable properties, or 2.75% of the sales price.  The property disposition fee is subordinate to payments to the limited partners of a cumulative annual return (not compounded) equal to 7% of their average adjusted capital balances and to repayment to the limited partners of an amount equal to their capital contributions.  Since these conditions described above have not been met, no disposition fees have been paid or accrued on properties sold in prior years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Distributions |
|--------|---------------|

|   | J. M. Jayson and Company, Inc. is an affiliated company in which the Individual General Partner is the Chairman, Director, and sole stockholder.  J. M. Jayson and Company, Inc. owned 1,642.3 units of limited partnership interest. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Leases |
|--------|-----|--------|

|   | In connection with its commercial property, the Partnership has entered into lease agreements until 2010.  Minimum future rentals to be received in 2010, under noncancelable operating leases amount to $164,690. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (6) | Settlement of Lawsuit |
|--------|-----|-----------------------|

|   | As previously reported, the Partnership, as a nominal defendant, the general partners of the Partnership and of affiliated public partnerships (the “Realmark Partnerships”) and the officers and directors of the Corporate General Partner, as defendants, had been involved in a class action litigation at the state court level regarding the payment of fees and other management issues. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On August 29, 2001, the parties entered into a Stipulation of Settlement (the “Settlement”).  On October 4, 2001, the Court issued an “Order Preliminary Approving Settlement” (the “Hearing Order”) and on November 29, 2001, the Court issued an “Order and Final Judgment Approving Settlement and Awarding Fees and Expenses” and dismissing the complaints with prejudice.  The Settlement provided, among other things, that all of the Realmark Partnerships’ properties be disposed of.  The general partners will continue to have primary authority to dispose of the Partnerships’ properties.  If either (i) the general partners have not sold or contracted to sell 50% of the Partnerships’ properties (by value) by April 2, 2002 or (ii) the general partners have not sold or contracted to sell 100% of the Partnerships’ properties by September 29, 2002, then the primary authority to dispose of the Partnerships’ properties will pass to a sales agent designated by plaintiffs’ counsel and approved by the Court.  On October 4, 2002, the Court appointed a sales agent to work with the general partners to continue to sell the Partnerships’ remaining properties. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The settlement also provided for the payment by the Partnerships of fees to the plaintiffs’ attorneys.  These payments, which are not calculable at this time but may be significant, are payable out of the proceeds from the sale of all of the properties owned by all of the Realmark Partnerships, following the sale of the last of these properties in each partnership.  Plaintiffs’ counsel will receive 15% of the amount by which the sales proceeds distributable to limited partners in each partnership exceeds the value of the limited partnership units in each partnership (based on the weighted average of the units’ trading prices on the secondary market as reported by Partnership Spectrum for the period May through June 2001).  In no event may the increase on which the fees are calculated exceed 100% of the market value of the units as calculated above. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (1) | Cost for Federal income tax purposes is $2,254,238 |
|-----|----------------------------------------------------|

| (2) | A reconciliation of the carrying amount of land and buildings for the years ended December 31, 2009, 2008 and 2007 follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------|

|                         |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                         |   |   |      |   |   |   |      |   |   |
| Balance at beginning of year |   | $      | 2,254,238 |   |   |   | 2,254,238 |   |   |   | 2,254,238 |   |
| Additions                    |   |   | -         |   |   |   | -         |   |   |   | - |   |
| Balance at end of year       |   | $      | 2,254,238 |   |   |   | 2,254,238 |   |   |   | 2,254,238 |   |

| (3) | A reconciliation of accumulated depreciation for the years ended December 31, 2009, 2008 and 2007 is as follows: |
|-----|------------------------------------------------------------------------------------------------------------------|

|                         |   | 2009   |      |   | 2008   |   |      | 2007   |   |
|------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                         |   |   |      |   |   |   |      |   |   |
| Balance at beginning of year |   | $      | 1,036,101 |   |   |   | 1,036,101 |   |   |   | 1,036,101 |   |
| Dispositions                 |   |   | -         |   |   |   | -         |   |   |   | - |   |
| Balance at end of year (4)   |   | $      | 1,036,101 |   |   |   | 1,036,101 |   |   |   | 1,036,101 |   |

| (4) | Balance applies entirely to buildings and improvements. |
|-----|---------------------------------------------------------|

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