5

                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.  20549

                            FORM 10-K

       [X]  Annual Report Pursuant to Section 13 or 15(d)
           of the Securities and Exchange Act of 1934


For the fiscal year ended               Commission File Number
December 31, 2000                                 33-4682


           CAPITAL BUILDERS DEVELOPMENT PROPERTIES II,
                A CALIFORNIA LIMITED PARTNERSHIP
     (Exact name of registrant as specified in its charter)


         California                          77-0111643
  (State or other jurisdiction               (I.R.S. Employer
of incorporation or organization)            Identification No.)

1130 Iron Point Road, Suite 170, Folsom, California  95630
(Address of principal executive offices)          Zip Code

Registrant's  telephone number, including area code:  (916)  353-
0500

Securities registered pursuant to Section 12(b) of the Act:  NONE

Securities registered pursuant to Section 12(g) of the Act:
  Limited Partnership Units

Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section  13  or  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or  such shorter period that the registrant was required to file
such   reports),  and  (2)  has  been  subject  to  such   filing
requirements for the past 90 days.    X Yes     No

As  of  December 31, 2000 the aggregate Limited Partnership Units
held by nonaffiliates of the registrant was 23,030.  There is  no
market for the Units.

Documents Incorporated by Reference

Limited  Partnership Agreement dated February 6, 1986,  filed  as
Exhibit  3.3,  and  the  Amendment  to  the  Limited  Partnership
Agreement dated May 22, 1986 filed as Exhibit 3.4 to Registration
Statement  No. 33-4682 of Capital Builders Development Properties
II, A California Limited Partnership, are hereby incorporated  by
reference into Part IV of this Form 10K.

Forward-Looking Statements

When   used   in  this  annual  report,  the  words   "believes,"
"anticipates"  and similar expressions are intended  to  identify
forward-looking  statements.   Such  statements  are  subject  to
certain  risks and uncertainties which could cause actual results
to  differ  materially from those projected, including,  but  not
limited  to, those set forth in the sections entitled  "Potential
Factors Affecting Future Operating Results" and "Qualitative  and
Quantitative Disclosures About Market Risks" below.  Readers  are
cautioned  not  to place undue reliance on these  forward-looking
statements  which  speak  only  as  of  the  case  hereof.    The
Partnership  undertakes  no obligation to  publicly  release  the
result of any revisions to these forward-looking statements which
may  be  made to reflect events or circumstances after  the  date
hereof or to reflect the occurrence of unanticipated events.


                             PART I

ITEM 1.   BUSINESS

(a)  General Development of Business

Capital Builders Development Properties II (the "Partnership") is
a   publicly  held  limited  partnership  organized   under   the
provisions  of  the  California Revised Limited  Partnership  Act
pursuant  to the Limited Partnership Agreement dated February  6,
1986, as amended (the "Agreement").  The Partnership commenced on
May  22,  1986 and shall continue in full force and be  effective
until December 31, 2021 unless dissolved sooner by certain events
as  described in the Agreement.  The Managing General Partner  is
Capital  Builders,  Inc.,  a California  Corporation  (CB).   The
Associate  General  Partners are the sole shareholder,  President
and Director of CB, and two founders of CB.

On October 6, 1986 the Partnership sold 2,407 Limited Partnership
Units  for a total of $1,203,500.  From October 6, 1986,  through
May 21, 1988, the Partnership sold an additional 20,623 Units for
a  total  of 23,030 Units.  On May 21, 1988, the Partnership  was
closed  to  capital raising activity with a total of  $11,515,000
proceeds  raised  from the offering.  The General  Partners  have
contributed  capital in the amount of $1,000 to  the  Partnership
for  a  1%  interest  in  the profits, losses,  tax  credits  and
distributions of the Partnership.

(b)  Financial Information about Industry Segments

The Partnership is in the business of real estate development and
is  not  a significant factor in its industry.  The Partnership's
investment  properties are located near major  urban  areas  and,
accordingly,  compete not only with similar properties  in  their
immediate  areas but with hundreds of properties  throughout  the
urban  areas.   Such competition is primarily  on  the  basis  of
locations,  rents,  services  and amenities.   In  addition,  the
Partnership competes with significant numbers of individuals  and
organizations  (including  similar  partnerships,   real   estate
investment trusts and financial institutions) with respect to the
purchase  and sale of land, primarily on the basis of the  prices
and terms of such transactions.

(c)  Narrative Description of the Business

The   Partnership's  business  objective  is  to   complete   the
development of its existing land with light industrial and office
buildings  for  lease and eventual sale.  The primary  investment
objective  of  the Partnership is to realize capital appreciation
from  the  sale of the Properties developed by it some  three  to
five  years after such Properties have been placed in service.  A
secondary  investment  objective is to  generate  cash  from  the
leasing   of  Partnership  Properties  pending  their  sale   for
distribution  to  the  Limited  Partners,  although  it  is   not
presently anticipated that the amount of such cash available  for
distribution to the Limited Partners will be significant.   Since
the  Partnership has not sold its investment properties,  it  has
not  achieved  its  investment goals as yet.   Although  investor
returns  cannot  be  accurately determined until  the  investment
properties are sold, due to the additional time required to lease
up  the  investment properties, the decline in real estate values
during  the  California recession, and although the  real  estate
market has shown recovery from the previous California recession,
it  is  anticipated  that  ultimate returns  will  be  less  than
initially projected.  Funds obtained by the Partnership from  the
sale  of  Limited Partnership Units were used to  acquire  equity
interest  in one piece of land for development and a  40%  equity
interest  in  another  for development  in  accordance  with  its
investment objective.

On  April 10, 1987, the Partnership entered into a joint  venture
called  Capital  Builders Roseville Venture ("JV")  with  Capital
Builders  Development Properties ("CBDP"), a  California  limited
partnership.   The  Partnership and CBDP are affiliates  as  they
have   the  same  General  Partner,  but  there  are  no   direct
transactions   between   the   respective   Partnerships.     The
Partnership  contributed $900,000 resulting in a 40% interest  in
the  profits, losses and cash distributions of the JV.   CB,  the
Managing General Partner of the Partnership, had the same  rights
and   obligations  with  respect  to  the  JV's  operations   and
management  as it could exercise as Managing General  Partner  of
the Partnership.  The JV was dissolved as of May 1, 1997 when the
Partnership purchased the remaining 60% interest in the JV.

The  acquisition  of  the  real estate  is  consistent  with  the
Partnership  objectives  which are  to  acquire,  develop,  hold,
maintain,  lease,  sell, or otherwise dispose  of  real  property
within  the  Western  United  States  (including  the  states  of
California,  Oregon,  Washington, Arizona,  Nevada,  New  Mexico,
Utah,   Colorado,   Hawaii,   and  Alaska),   including   without
limitation,  the acquisition of undeveloped land for  development
and  construction of research and development, light  industrial,
commercial/retail,   or  office  buildings   thereon,   and   the
acquisition  of  partially  completed  commercial  real  property
developments for completion of development.

Although  the Associate General Partners, Officers, and Directors
of the Managing General Partners are experienced in real property
operation  and  management,  they also  may  utilize  independent
advisors,  agents,  and workers, in addition to  the  Partnership
employees,  to assist them in the operation, leasing, maintenance
and improvement of the Partnership's properties.

The  Partnership has no full time employees but is managed by CB,
the Managing General Partner.

ITEM 2.   PROPERTIES

The  Partnership  owns 100% equity interest  in  two  properties,
Highlands  80  Commerce Center ("H80") and  Capital  Professional
Center ("CPC").  H80 is a  three phase development.  Phase I is a
109,000 square foot office/industrial project consisting of  five
multi-tenant  buildings.   Phase  II  consists  of  approximately
45,921  square  feet  of  two, one-story light  industrial/office
space  buildings and Phase III will consist of one, 27,663 square
foot, two-story office building.  Phase III is scheduled to start
construction by the end of the second  quarter of 2001.

CPC  is  a  40,400 square foot office project consisting  of  two
multi-tenant  buildings which are completely developed  and  have
achieved a stabilized occupancy.

Additional information about the individual properties follows:

                                          H80                 CPC

  Ownership Percentage:                  100%                100%

  Acquisition Date:            April 30, 1987        Apr 10, 1987
                                                    40% Ownership

                                                      May 1, 1997
                                                     60%Ownership

  Location:                  North Highlands,          Roseville,
                                  California           California
  Present Monthly
       Effective Average
       Base Rent Per Square Foot:       $1.05               $1.71

  Square Footage Mix:
       Office                          21,967              40,397
       Industrial                     132,890

  Leased Occupancy at
               December 31:
                         2000             83%                100%
                         1999             80%                100%
                         1998             68%                 91%
                         1997             75%                100%
                         1996             78%                 95%

  Current Year Depreciation:         $359,928             $94,598

  Method of Depreciation:       Straight Line       Straight Line

  Depreciation Life:                 40 Years            40 Years
                           Bldg. Improvements  Bldg. Improvements
                               Life of Lease        Life of Lease
                          Tenant Improvements Tenant Improvements

  Total cost:                      $9,960,246          $4,596,131

  Encumbrances:                    $6,050,908          $4,200,000

  Tenant occupying more                Valley    Coldwell Banker
  than 10% of square           Communications         Residential
  footage and nature                                  Real Estate
  of business:                                         Brokerage)
                                                  First American
                                                   Title Ins. Co.
                                                 Martin, Rivett &
                                                      Olson, Inc.

H80  and  CPC  are subject to encumbrances which are  more  fully
described  under Note 4 of the Partnership's financial statements
included under Item 8 which is incorporated herein by reference.

Both properties are being leased to a wide variety of tenants  in
a  diversity of industries.  Leases are typically three  to  five
years  in  term and provide for free rent periods, at  inception,
equal  to approximately one month per three years of lease  term.
Some leases contain options to extend the term of the lease.

The  Partnership's  investment properties are  located  in  major
urban  areas  and,  therefore, must compete  with  properties  of
greater  and lesser quality.  Such competition is based primarily
on  rent,  location, services and amenities.  The properties  are
suitable for their current and anticipated use.

ITEM 3.   LEGAL PROCEEDINGS

NONE

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

NONE

                             PART II

ITEM 5.   MARKET  FOR REGISTRANT'S LIMITED PARTNERSHIP  INTERESTS
          AND RELATED SECURITY HOLDER MATTERS

There  is no public trading market for the Partnership's  Limited
Partnership Units and it is not anticipated that a public trading
market  will  develop.   Furthermore, the  Partnership  Agreement
prohibits  Limited Partners from transferring Limited Partnership
Interests  if  such transfers would result in the dissolution  of
the  Partnership  for  tax  purposes under  Section  708  of  the
Internal Revenue Code.

As  of  December  31, 2000, there were 1,599 holders  and  23,030
Limited Partnership Units outstanding.

ITEM 6.   SELECTED FINANCIAL DATA

The  following  constitutes a summary of selected financial  data
for  the  following periods (000's omitted except  net  loss  per
Limited Partnership Unit):
                       2000     1999     1998     1997     1996
Revenues             $2,414   $2,145   $1,985   $1,728   $1,224
Net Loss             ($102)   ($247)   ($323)   ($217)   ($268)
Net Loss per Limited
 Partnership Unit   ($4.37) ($10.63) ($13.90)  ($9.33) ($11.54)
Total Assets        $13,626  $12,808  $12,799  $13,077   $9,953
Notes and Loans
  Payable           $10,251   $9,313   $9,094   $8,950   $4,928
(See ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA)

ITEM 7.   MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF   FINANCIAL
          CONDITION AND RESULTS OF OPERATIONS

Accounting Pronouncements

On  December 3, 1999, the U.S. Securities and Exchange Commission
staff   issued   Staff  Accounting  Bulletin  No.  101,   Revenue
Recognition   in  Financial  Statements  (SAB  101).    SAB   101
summarizes  certain  of the staff's views in  applying  generally
accepted   accounting  principles  to  revenue   recognition   in
financial  statements.  SAB 101 was adopted on January  1,  2000.
The  adoption  of SAB 101 did not have a material impact  on  the
financial statements.

Liquidity and Capital Resources

The  Partnership commenced operations on May 22,  1986  upon  the
sale  of  the minimum number of Limited Partnership  Units.   The
Partnership's initial source of cash was from the sale of Limited
Partnership   Units.   Through  the  offering   of   Units,   the
Partnership  raised $11,515,000 (represented  by  23,030  Limited
Partnership  Units).   Cash generated from the  sale  of  Limited
Partnership  Units  was  used  to  acquire  land  and   for   the
development of a mixed use commercial project and a 40%  interest
in  a commercial office project.  In May 1997, the remaining  60%
interest in the project was acquired.

The  Partnership's primary current sources of cash are from  cash
balances,  property rental income and construction financing  for
Phase  II improvements.  As of December 31, 2000, the Partnership
had  $1,232,514  in  cash and $515,820 in available  construction
loan  draws  for  Highlands  80  Phase  II.   The  Highlands   80
construction loan was extended and now has an expiration date  of
June 3, 2002.  It is the Partnership's investment goal to utilize
existing  capital  resources  for  continued  leasing  operations
(tenant   improvements  and  leasing  commissions)  and   further
development of Highlands 80 Phase III.  Additionally,  Management
was   successful  in  securing  a  new  mortgage  loan  for   the
Partnership's  Capital  Professional  Center  project.   Of   the
$1,232,514  in cash, approximately $950,000 was obtained  through
the  refinancing  of Capital Professional Center.   Both  of  the
Partnership's projects have achieved occupancy and  rental  rates
sufficient  to meet its expected current and future debt  service
obligations.

The  Partnership's  scheduled  principal  and  interest  payments
during   2001,   2002,  2003,  2004,  2005  and  thereafter   are
$2,303,644,   $5,312,497,  $387,996,   $387,996,   $387,996   and
$3,900,355, respectively.

Management intends to begin development of Highlands 80 Phase III
(a  27,663  square  foot, 2-story full service  office  building)
during  the first quarter of 2001.  The project's site and  shell
are  estimated to be completed by the third quarter of 2001.  The
initial  construction of Highlands 80 Phase III  will  be  funded
with  a portion of its existing cash balance.  It is Management's
intention  to modify the project's existing Phase II construction
loan with the current lender to include the additional costs  for
Phase III.  Management is still in the process of finalizing  the
construction contract with the General Contractor, and  therefore
the total costs have not yet been determined.

During  the  year  ended  December 31, 2000,  cash  increased  by
$1,016,245.  This was primarily the result of cash obtained  from
the  refinancing  of Capital Professional Center  ($950,000)  and
cash flow from operations from the Partnership's projects.

During  the  year  ended December 31, 2000, the Partnership  paid
$115,635  in  management  fees to its Managing  General  Partner.
Management fees are classified on the Statements of Operations as
an  Operating Expense.  These fees are not recorded as  a  contra
account  against revenue due to the fact that they are  a  normal
property operating expense.  These fees would be incurred whether
they  are  charged  by the affiliate General  Partner  or  by  an
outside  management  company.  The General Partner  is  currently
charging 5% of collected revenue.

Management anticipates cash provided from operations to  continue
to improve in future quarters with the additional lease-up of the
Highlands  80  Phase  II and III.  The Partnership's  properties'
occupancy rates as of December 31, 2000 are 83% for Highlands  80
and 100% for Capital Professional Center.  Subsequent to December
31,  2000,  Management  was successful in leasing  an  additional
9,000  square feet in one of the Highlands 80 Phase II buildings.
This will bring Highlands 80 to a 89% occupancy.

The  Partnership will continue to incur improvement costs as  its
properties are leased up.  The total projected tenant improvement
costs  expected  to be incurred during 2001 are estimated  to  be
$354,500.   These  costs  will be funded with  construction  loan
draws.

The  Partnership's ability to maintain or improve  cash  flow  is
dependent  upon its ability to maintain and improve the occupancy
of   its   investment   properties.   Management   believes   the
Partnership's  financial resources should  be  adequate  to  meet
2001's  obligations  and  no  adverse  change  in  liquidity   is
foreseen.   The  Partnership's properties' current market  values
are  in  excess of its total liabilities.  The Partnership should
therefore meet its current and long-term obligations so  long  as
the properties' occupancy and rental rates are maintained and the
real estate investment market remains stable.

Results of Operations

2000 vs 1999

During  the year ended December 31, 2000 as compared to  December
31,  1999, the Partnership's total revenues increased by $268,276
(12.5%),  while  its expenses also increased by $122,690  (5.1%),
resulting in a decrease in net loss of $145,586 (58.9%).

The  increase  in  revenue is primarily due  to  an  increase  in
occupancy  for  Highlands 80 ($185,914)  and  rent  increases  at
Capital Professional Center ($78,083).

Expenses  increased  for the year ended  December  31,  2000,  as
compared to December 31, 1999, due to the net effect of:
a)   $15,461 (3.7%) increase in operating expenses due to general
inflation for utility costs.
b)   $14,680  (4.9%) increase in repairs and maintenance  due  to
suite turnover costs incurred for lease renewals at Highlands 80;
c)   $11,790 (8.1%) increase in property taxes primarily  due  to
the additional buildout of Highlands 80 tenant improvements;
d)   $44,978  (5.6%)  increase  in interest  due  to  loan  costs
associated with Highlands 80 and Phase II tenant improvement loan
draws;
e)   $4,037 (2.3%) increase in general and administrative due  to
general cost/wage inflation; and
f)   $31,744 (5.8%) increase in amortization and depreciation due
to an increase in amortized loan fees related to the Highlands 80
Phase II loan extensions.

1999  vs 1998

During  the year ended December 31, 1999 as compared to  December
31,  1998, the Partnership's total revenues increased by $160,059
(8.1%), while its expenses increased by $83,957 (3.6%), resulting
in a decrease in net loss of $76,102 (23.5%).

The  increase  in  revenue is primarily due  to  an  increase  in
occupancy  for  Highlands 80 ($139,806)  and  rent  increases  at
Capital  Professional Center ($27,129).  Interest income for  the
Partnership decreased by $6,876.

Expenses  increased  for the year ended  December  31,  1999,  as
compared to December 31, 1998, due to the net effect of:
a)   $20,256  (5%)  increase  in operating  expenses  due  to  an
increase in utility and marketing costs;
b)  $12,717  (4.4%)  increase in repairs and maintenance  due  to
parking  lot  resurfacing, lobby repainting  and  recarpeting  at
Capital  Professional  Center,  plus  suite  turnover  costs   at
Highlands 80 for space leased during the first quarter;
c)  $8,238 (6%) increase in property taxes primarily due  to  the
additional buildout of Highlands 80 tenant improvements;
d)  $18,456  (2.4%)  increase  in  interest  due  to  loan  costs
associated with Highlands 80, Phase II completion;
e)  $5,807 (3.2%) decrease in general and administration  due  to
cost reductions; and
f) $30,097 (5.8%) increase in depreciation at Highlands 80 due to
the Phase II completion.

ITEM 7A.  QUANTITATIVE  AND QUALITATIVE DISCLOSURE  ABOUT  MARKET
          RISKS

The  Partnership  does not have a material  market  risk  due  to
financial instruments held by the Partnership.  The Partnership's
only variable rate instrument consists of a construction loan  in
the  amount of $1,414,180 and $1,289,781 at December 31, 2000 and
December 31, 1999, respectively.  The increase from 1999 to  2000
is due to additional draws for construction


ITEM 8.   FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                                                      Page Number

INDEPENDENT AUDITORS' REPORT                                10

FINANCIAL STATEMENTS
                                                            11
     BALANCE SHEETS
     AS OF DECEMBER 31, 2000 AND 1999

     STATEMENTS OF OPERATIONS                               12
     FOR THE YEARS ENDED
     DECEMBER 31, 2000, 1999, AND 1998

     STATEMENTS OF PARTNERS' EQUITY                         13
     FOR THE YEARS ENDED
     DECEMBER 31, 2000, 1999, AND 1998

     STATEMENTS OF CASH FLOWS                               14
     FOR THE YEARS ENDED
     DECEMBER 31, 2000, 1999, AND 1998

      NOTES TO FINANCIAL STATEMENTS                         15-21
SUPPLEMENTAL SCHEDULES

     SCHEDULE III                                           25
     REAL ESTATE AND ACCUMULATED DEPRECIATION
Financial  schedules not included have been omitted  because  of
the  absence  of  conditions under which they  are  required  or
because the information is included elsewhere in this report.

                  Independent Auditors' Report


The Partners
Capital Builders Development Properties II:

We  have  audited  the accompanying balance  sheets  of  Capital
Builders   Development  Properties  II,  a  California   Limited
Partnership, as of December 31, 2000 and 1999, and  the  related
statements  of operations, partners' equity and cash  flows  for
each  of  the years in the three-year period ended December  31,
2000.    In   connection  with  our  audits  of  the   financial
statements,  we  also  have  audited  the  financial   statement
schedule  as listed in the accompanying index.  These  financial
statements   and   financial   statement   schedule   are    the
responsibility    of   the   partnership's   management.     Our
responsibility  is  to  express an opinion  on  these  financial
statements and financial statement schedule based on our audits.

We  conducted  our audits in accordance with auditing  standards
generally  accepted  in  the United States  of  America.   Those
standards  require that we plan and perform the audit to  obtain
reasonable assurance about whether the financial statements  are
free of material misstatement.  An audit includes examining,  on
a test basis, evidence supporting the amounts and disclosures in
the  financial statements.  An audit also includes assessing the
accounting  principles used and significant  estimates  made  by
management,   as  well  as  evaluating  the  overall   financial
statement  presentation.  We believe that our audits  provide  a
reasonable basis for our opinion.

In  our  opinion,  the financial statements  referred  to  above
present fairly, in all material respects, the financial position
of Capital Builders Development Properties II as of December 31,
2000  and  1999, and the results of its operations and its  cash
flows  for  each  of  the years in the three-year  period  ended
December  31,  2000  in  conformity with  accounting  principles
generally accepted in the United States of America.  Also in our
opinion,   the   related  financial  statement  schedule,   when
considered  in relation to the basic financial statements  taken
as  a  whole,  presents  fairly, in all material  respects,  the
information set forth therein.




Sacramento, California                            KPMG LLP
February 2, 2001




 PART 1 - FINANCIAL INFORMATION

<TABLE>
    Capital Builders Development
            Properties II
 (A California Limited Partnership)

           BALANCE SHEETS
<CAPTION>
                                       December 31,  December 31,
                                           2000          1999
<S>                                        <C>           <C>
ASSETS
  Cash                                   $1,232,514     $216,269
  Accounts receivable, net                  177,630      144,583
  Investment property, at cost, net
of accumulated depreciation of
$2,648,467 and $2,714,863 at
December 31, 2000 and 1999,
respectively                             11,907,910   12,202,875

  Lease commissions, net of
accumulated amortization of $198,454
and $284,126 at December 31, 2000 and
1999, respectively                          167,767      170,305

  Other assets, net of accumulated
amortization of $115,668 and $66,264
at December 31, 2000 and 1999,
respectively                                140,547       74,337

        Total assets                    $13,626,368  $12,808,369

LIABILITIES AND PARTNERS' EQUITY
  Notes payable                         $10,250,908   $9,312,934
  Accounts payable and accrued
liabilities                                  30,058       46,045
  Tenant deposits                           112,289      114,613

        Total liabilities                10,393,255    9,473,592

  Commitments and contingencies
  Partners' Equity:
    General Partners                       (63,500)     (62,483)
    Limited Partners                      3,296,613    3,397,260

        Total Partners' equity            3,233,113    3,334,777

        Total liabilities and
Partners' equity                        $13,626,368  $12,808,369

See accompanying notes to the financial statements.
</TABLE>

<TABLE>
Capital Builders Development
        Properties II
    (A California Limited
        Partnership)

  STATEMENTS OF OPERATIONS
  YEARS ENDED DECEMBER 31,
<CAPTION>
                                  2000       1999         1998
<S>                               <C>         <C>         <C>
Revenues
  Rental and other income      $2,398,711   $2,134,714  $1,967,779
  Interest income                  14,932       10,653     17,529

Total revenues                  2,413,643    2,145,367  1,985,308

Expenses
  Operating expenses              437,631      422,170    401,914
  Repairs and maintenance         313,326      298,646    285,929
  Property taxes                  156,686      144,896    136,658
  Interest                        847,882      802,904    784,448
  General and administrative      181,409      177,372    183,179
  Depreciation and
amortization                      578,373     546,629    516,532

Total expenses                  2,515,307    2,392,617  2,308,660

Net loss                        (101,664)    (247,250)  (323,352)

Allocated to General Partners     (1,017)      (2,473)    (3,233)

Allocated to Limited Partners  ($100,647)   ($244,777)  ($320,119)

Net loss per Limited
Partnership Unit                  ($4.37)    ($10.63)   ($13.90)

Average Units outstanding          23,030       23,030     23,030

See accompanying notes to the financial statements.
</TABLE>

<TABLE>
            Capital Builders Development Properties II
                (A California Limited Partnership)

                  STATEMENTS OF PARTNERS' EQUITY
           YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998

<CAPTION>
                                                          Total
                                 General     Limited  Partners'
                                Partners    Partners     Equity
<S>                                <C>       <C>          <C>

Balance at December 31, 1997   ($56,777)  $3,962,156  $3,905,379

     Net Loss                    (3,233)   (320,119)   (323,352)

Balance at December 31, 1998    (60,010)   3,642,037   3,582,027

     Net Loss                    (2,473)   (244,777)   (247,250)

Balance at December 31, 1999    (62,483)   3,397,260   3,334,777

      Net loss                   (1,017)   (100,647)   (101,664)

Balance at December 31, 2000   ($63,500)  $3,296,613  $3,233,113

See accompanying notes to the financial statements.
</TABLE>

<TABLE>
 Capital Builders Development
         Properties II
     (A California Limited
         Partnership)

   STATEMENTS OF CASH FLOWS
   YEARS ENDED DECEMBER 31,
<CAPTION>
                                   2000        1999       1998
<S>                                <C>          <C>        <C>
Cash flows from operating
activities:
  Net loss                      ($101,664)  ($247,250)  ($323,352)
    Adjustments to reconcile
net loss to cash flow provided
by operating activities:
  Depreciation and amortization    578,373     546,629     516,532
  Changes in operating assets
and liabilities:
  (Increase) Decrease in
accounts receivable               (33,047)    (13,708)     32,863
  Increase in leasing
commissions                       (71,905)    (86,307)   (67,353)
  Decrease (Increase) in other
assets                               1,260    (33,064)    (7,753)
  (Decrease) Increase in
accounts payable
    and accrued liabilities       (15,987)      17,443    (99,175)
  (Decrease) Increase in tenant
deposits                           (2,324)      19,520      1,403

      Net cash provided by
operating activities               354,706     203,263     53,165

Cash flows from investing
activities:
  Improvements to investment
properties                       (159,561)   (494,303)  (163,044)

      Net cash used in
investing activities             (159,561)   (494,303)  (163,044)

Cash flows from financing
activities:
  Proceeds from issuance of
debt                             1,074,407     352,123    260,600
  Payments of debt               (136,433)   (132,706)   (117,455)
  Payments of loan fees          (116,874)   - - - - -   - - - - -

      Net cash provided by
financing activities               821,100     219,417    143,145

Net increase (decrease) in cash  1,016,245    (71,623)      33,266

Cash, beginning of  period         216,269     287,892     254,626

Cash, end of period             $1,232,514    $216,269    $287,892

Cash paid for Interest            $847,882    $802,904    $784,448

Non cash financing activity:
  Refinance of mini-permanent
loan with mortgage loan         $3,249,992   - - - - -   - - - - -

See accompanying notes to the financial statements.
</TABLE>


            Capital Builders Development Properties II
               (A California Limited Partnership)

                  NOTES TO FINANCIAL STATEMENTS
                DECEMBER 31, 2000, 1999 AND 1998

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND
         ORGANIZATION

A  summary of the significant accounting policies applied in  the
preparation of the accompanying financial statements follows:

Basis of Accounting

The   financial   statements  of  Capital  Builders   Development
Properties  II  (The "Partnership") are prepared on  the  accrual
basis  of accounting and therefore revenue is recorded as  earned
and costs and expenses are recorded as incurred.

Organization

Capital  Builders Development Properties II, a California Limited
Partnership, is owned under the laws of the State of  California.
The  Managing  General  Partner  is  Capital  Builders,  Inc.,  a
California corporation (CB).

The Partnership is in the business of real estate development and
is  not  a significant factor in its industry.  The Partnership's
investment  properties are located near major  urban  areas  and,
accordingly,  compete not only with similar properties  in  their
immediate  areas but with hundreds of properties  throughout  the
urban  areas.   Such competition is primarily  on  the  basis  of
locations,  rents,  services  and amenities.   In  addition,  the
Partnership competes with significant numbers of individuals  and
organizations   (including   similar   companies,   real   estate
investment trusts and financial institutions) with respect to the
purchase  and sale of land, primarily on the basis of the  prices
and terms of such transactions.

Investment Properties

Long-lived  assets  and  certain  identifiable  intangibles  are
reviewed   for   impairment  whenever  events  or   changes   in
circumstances indicate that the carrying amount of an asset  may
not  be  recoverable.  Recoverability of assets to be  held  and
used  is measured by a comparison of the carrying amount  of  an
asset  to future net cash flows expected to be generated by  the
asset.   If  such  assets are considered  to  be  impaired,  the
impairment to be recognized is measured by the amount  by  which
the  carrying amount of the assets exceed the fair value of  the
assets.   Assets to be disposed of are reported at the lower  of
the carrying amount or fair value less costs to sell.

The  Partnership's  investment property consists  of  commercial
land, buildings and leasehold improvements that are carried  net
of  accumulated depreciation.  Depreciation is provided  for  in
amounts  sufficient to relate the cost of depreciable assets  to
operations over their estimated service lives of three to  forty
years.  The straight-line method of depreciation is followed for
financial reporting purposes.

Other Assets

Included  in other assets are loan fees.  Loan fees are amortized
over the life of the related note.

Lease Commissions

Lease commissions are costs associated with obtaining leases with
terms  in excess of one year.  The Partnership capitalizes  these
costs  and  amortizes them on a straight line  basis  over  their
related lease term.

Income Taxes

The  Partnership  has  no provision for income  taxes  since  all
income  or  losses  are  reported separately  on  the  individual
Partners' tax returns.

Revenue Recognition

Rental  income  is recognized on a straight-line basis  over  the
life  of  the  lease, which may differ from the scheduled  rental
payments.

Net Loss per Limited Partnership Unit

The  net  loss per Limited Partnership Unit is computed based  on
the weighted average number of Units outstanding of 23,030 during
the years ending December 31, 2000 , 1999 and 1998.

Statement of Cash Flows

For  purposes  of  the statement of cash flows,  the  Partnership
considers all short-term investments with a maturity, at date  of
purchase, of three months or less to be cash equivalents.

Use of Estimates

The  preparation  of  financial  statements  in  conformity  with
accounting principles generally accepted in the United States  of
America  requires  management to make estimates  and  assumptions
that  affect  the reported amounts of assets and liabilities  and
disclosure  of contingent assets and liabilities at the  date  of
the financial statements and the reported amounts of revenues and
expenses  during  the  reporting period.   Actual  results  could
differ from those estimates.

NOTE 2 - RELATED PARTY EXPENSE REIMBURSEMENT AND FEE ARRANGEMENT

The  Managing  General Partner (Capital Builders, Inc.)  and  the
Associate  General  Partners  are entitled  to  reimbursement  of
expenses  incurred on behalf of the Partnership and certain  fees
from  the  Partnership.  These fees include:  a  portion  of  the
sales commissions payable by the Partnership with respect to  the
sale  of the Partnership Units; an acquisition fee of up to 12.5%
of  gross  proceeds  from the sale of the  Partnership  Units;  a
property  management  fee  up  to 6%  of  gross  rental  revenues
realized  by  the Partnership with respect to its  properties;  a
subordinated  real estate commission of up to  3%  of  the  gross
sales  price of the properties; and a subordinated 25%  share  of
the   Partnership's   distributions  of  cash   from   sales   or
refinancing.  The property management fee currently being charged
is 5% of gross rental revenues collected.

All  acquisition fees and expenses, all underwriting commissions,
and  all  offering and organizational expenses which can be  paid
are  limited  to  20%  of  the  gross  proceeds  from  sales   of
Partnership Units provided the Partnership incurs no borrowing to
develop  its properties.  However, these fees may increase  to  a
maximum  of  33%  of the gross offering proceeds based  upon  the
total  acquisition  and development costs,  including  borrowing.
Since the formation of the Partnership, 27.5% of these fees  were
paid  to  the Partnership's related parties, leaving a  remaining
maximum  of 5.5% ($633,325) of the gross offering proceeds.   The
ultimate  amount  of  these costs will  be  determined  once  the
properties are fully developed and leveraged.

The  total  management fees paid to the Managing General  Partner
were  $115,635, $104,642 and $97,913 for the years ended December
31,  2000, 1999 and 1998, respectively, while total reimbursement
of expenses was $226,652, $194,584 and $190,533 respectively.

Management fees are classified on the Statements of Operations as
an  Operating Expense.  These fees are a normal cost of  property
operations and would be incurred whether they are charged by  the
affiliate  General  Partner  or an  outside  management  company.
Reimbursement of expenses are also a normal operating cost of the
Partnership.  These expenses are primarily for investor services,
preparation  of  SEC  filings,  audit  coordination   and   other
Partnership  management  functions.  Expense  reimbursements  are
classified  as  General  and  Administrative  expenses   on   the
Statement of Operations.

In accordance with the Partnership Agreement, the General Partner
may hire outside consultants or perform the necessary accounting,
reporting  and  investor service functions internally,  and  pass
through  the  associated costs.  It has been determined  that  if
outside  consultants were to perform these functions, the related
costs would be substantially higher to the Partnership.

The Managing General Partner will reduce its future participation
in  proceeds  from sales by an amount equal to the  loss  on  the
abandonment of option fees in 1988 ($110,000) and interest on the
amount  at  a  rate equal to that of the borrowed funds  rate  as
determined  by  construction or permanent funds utilized  by  the
Partnership.

NOTE 3 - INVESTMENT PROPERTY

The components of the investment property account at December 31,
are as follows:

                                    2000             1999
Land                           $ 4,053,799       $ 4,053,799
Building and Improvements        9,201,129         9,132,132
Tenant Improvements              1,301,449         1,731,807
Investment property, at cost    14,556,377        14,917,738
Less: accumulated depreciation
     and amortization          (2,648,467)       (2,714,863)

Investment property, net       $11,907,910       $12,202,875


NOTE 4 - NOTES PAYABLE

Notes Payable consist of the following at December 31,:

                                            2000        1999
A  mini-permanent loan of  $5,000,000
with  a  fixed  8.95% interest  rate.
The  loan  requires monthly principal
and   interest  payments  of  $41,789
which  is sufficient to amortize  the
loan over 25 years.  The loan is  due
October   1,  2002.   The   note   is
collateralized  by a  First  Deed  Of
Trust  on Highlands 80 Phase I  land,
buildings and improvements.              $4,636,728  $4,720,104

A  construction  loan  of  $1,930,000
with  a  variable  interest  rate  of
prime  plus 1.5% (11% as of  December
31, 2000).  The loan requires monthly
interest only payments, and  its  due
date  was  extended to June 3,  2001.
The   Note  provides  for  a   future
extension  date of June 3,  2002  and
future  draws of $515,820 for  tenant
improvement  construction  costs  and
leasing commissions for future lease-
up   of   Phase  II.   The  note   is
collateralized  by a  First  Deed  of
Trust  on Highlands 80 Phase II land,
buildings and improvements.               1,414,180   1,289,781

A  mortgage loan of $4,200,000 with a
fixed  interest  rate  of  7.97%  and
requiring   monthly   principal   and
interest  payments of $32,333,  which
is  sufficient to amortize  the  loan
over  25  years.   The  loan  is  due
January   10,  2006.   The  note   is
collateralized  by a  First  Deed  Of
Trust    on    Capital   Professional
Center's  (CPC) land,  buildings  and
improvements.                             4,200,000   - - - - -

A  mini-permanent  loan  that  had  a
fixed  interest  rate  of  8.24%  and
required   monthly   principal    and
interest  payments of $27,541,  which
was  sufficient to amortize the  loan
over  25  years.  The  loan  was  due
January   1,  2001.   The  note   was
collateralized  by a  First  Deed  of
Trust    on    Capital   Professional
Center's  (CPC) land,  buildings  and
improvements.  This loan was paid off
with  proceeds obtained from the  new
$4,200,000 mortgage loan.                 - - - - -   3,303,049

Total Notes Payable                     $10,250,908  $9,312,934

The  Partnership  is  in  compliance with  all  restrictive  debt
covenants as of December 31, 2000.

Scheduled principal payments during 2001, 2002, 2003, 2004,  2005
and  thereafter  are  $1,559,229, $4,606,724,  $64,324,  $70,106,
75,904 and $3,874,621, respectively.

NOTE 5 - LEASES

The   Partnership   leases  its  properties   under   long   term
noncancelable   operating  leases  to   various   tenants.    The
facilities are leased through agreements for rents based  on  the
square footage leased.  Minimum annual base rental payments under
these leases for the years ended December 31 are as follows:
                         2001     $ 2,078,074
                         2002       1,546,675
                         2003       1,032,251
                         2004         550,826
                         2005         119,326
                         Total    $ 5,327,152


NOTE 6 - SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

YEAR 2000           March 31    June 30 September 30 December 31

Revenues            $575,903   $601,934     $582,473    $653,333

Net (loss)/income  ($54,671)    $20,439    ($65,018)    ($2,414)

Net (loss)/income
per limited
partnership unit     ($2.35)      $0.88      ($2.80)     ($0.10)


YEAR 1999           March 31    June 30 September 30 December 31

Revenues            $494,299   $548,363     $538,699    $564,006

Net loss          ($141,382)  ($24,362)    ($33,809)   ($47,697)

Net loss per
limited
partnership unit     ($6.08)    ($1.05)      ($1.45)     ($2.05)


NOTE 7 - RECONCILIATION TO INCOME TAX METHOD OF ACCOUNTING

A   reconciliation  of  the  net  loss  as  reflected   on   the
accompanying Statements of Operations to that reflected  on  the
Federal income tax return for the years ended December 31 is  as
follows:
                                      2000        1999       1998

Net loss - Statements
  of Operations               ($101,664)  ($247,250)  ($323,352)

Adjustments
  resulting from:
  Difference in depreciation
  and amortization                 5,276      90,987      87,705

  Net loss - tax return        ($96,388)  ($156,263)  ($235,648)

Partners' equity - Statements
  of Partners' Equity         $3,233,113  $3,334,777  $3,582,027

Increases
  resulting from:
  Difference in depreciation
  and amortization and
  valuation allowance          2,968,812   2,963,536   2,872,549

  Selling expenses for
  Partnership units            1,713,666   1,713,666   1,713,666

  Partners' equity - tax
  return                      $7,915,591  $8,011,979  $8,168,242

Taxable loss per Limited
  Partnership unit after
  giving effect to the
  taxable loss allocated
  to the General Partner          ($4.18     ($6.72)    ($10.13)


NOTE 8 - FAIR VALUE OF FINANCIAL INSTRUMENTS

The   following  methods  and  assumptions  were  used   by   the
Partnership   in  estimating  its  fair  value  disclosures   for
financial instruments.

     Notes payable
     The  fair  value  of  the Partnership's  Notes  Payable  are
     estimated based on the quoted market prices for the same  or
     similar  issues  or  on  the current rates  offered  to  the
     Partnership for debt of the same remaining maturities.

The   estimated  fair  values  of  the  Partnership's   financial
instruments are as follows:

                  December 31, 2000         December 31, 1999
                Carrying    Estimated     Carrying   Estimated
                  Amount    Fair Value      Amount   Fair Value
Liabilities
Note payable    $4,636,728  $4,636,728   $4,720,104  $4,720,104
Note payable    $1,414,180  $1,414,180   $1,289,781  $1,289,781
Note payable    $4,200,000  $4,200,000   $3,303,049  $3,303,049


NOTE  9  -  ACCOUNTING  FOR  DERIVATIVE INVESTMENTS  AND  HEDGING
ACTIVITIES

In  June  1998,  the  FASB issued SFAS No.  133,  Accounting  for
Derivative Instruments and Hedging Activities.  SFAS No.  133  as
amended  is  effective for all fiscal quarters  of  fiscal  years
beginning  after  June 15, 2000.  Management  believes  that  the
adoption of SFAS No. 133 will not have a material impact  on  the
financial statements due to the Partnership's inability to invest
in such instruments as stated in the Partnership agreement.

NOTE 10 - COMMITMENTS AND CONTINGENCIES

The  Partnership is involved in litigation arising in the  normal
course  of  its  business.   In the opinion  of  management,  the
Partnership's  recovery or liability if any,  under  any  pending
litigation would not materially affect its financial condition or
results of operations.

ITEM 9.   CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  AND
          FINANCIAL DISCLOSURE

NONE



                            PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The Partnership has no directors.  The Partnership is managed  by
Capital Builders, Inc. ("CB"), the Managing General Partner.  The
following  are  the names and other information relating  to  the
Managing  General Partner.  No expiration date has been  set  for
the term during which the Managing General Partner is to serve.

MANAGING GENERAL PARTNER

The  Partnership  is  being managed by CB, the  Managing  General
Partner.   CB is a California corporation organized in May  1978.
CB  relocated on  October 8, 1999 and moved its executive offices
at  1130  Iron  Point Road, Suite 170, Folsom,  California  95630
(telephone  number 916-353-0500).  To date, CB has organized  ten
partnerships to engage in commercial real estate development.  As
the   General   Partner,  CB  may  be  responsible  for   certain
liabilities that a partnership it manages is unable to pay.

The officers, directors, and key personnel of CB are as follows:

           Name                          Office
           Michael J. Metzger            President and Director
           Mark J. Leggio                Director
           Ellen Wilcox                  Director

Michael  J. Metzger:  Mr. Metzger is responsible for the  general
management  of  CB.  Mr. Metzger assumed responsibility  for  the
management of CB in December 1986.  He was formerly the Executive
Vice   President  of  The  Elder-Nelson  Company  (EN)  and   its
subsidiary,  the Elder-Nelson Equities Corporation  -  affiliated
companies which provided underwriting and administrative services
to   CB.    Prior  to  joining  EN  in  1977,  Mr.  Metzger   was
Partner/General Manager for two years in his family's real estate
contracting, development and syndication business.   Mr.  Metzger
has also had five years of experience in manufacturing management
and  served as an Army Officer for four years.  Mr. Metzger holds
a  B.S. degree in Business and Industrial Management as well as a
license  in  Real Estate, and former licenses in  Securities  and
Insurance.

Ellen Wilcox:  Ellen Wilcox is a Registered Investment Advisor in
California  and  the  former Owner/Manager  of  Wilcox  Financial
Services.   She  is licensed in General Securities and  Insurance
through  Linsco/Private Ledger, an NASD Registered Broker/Dealer.
As  an Investment Advisor and Broker, Ms. Wilcox provides a  full
range  of  investment products and services  to  individuals  and
small  business  owners.   She has been actively  providing  such
services  since 1986.  Ms. Wilcox teaches classes  on  retirement
planning, investment strategies, and basic money management.  She
is  a  popular  speaker  and lecturer on  financial  topics,  has
authored  many  published articles, and has appeared  on  several
radio shows.

Mark J. Leggio:  Mark Leggio is the Owner of Mark J. Leggio, CPA.
He  provides tax accounting and business consultation services to
a  wide  variety of small and mid-size businesses. From  1978  to
1995 he worked for KPMG LLP and was a partner when he left.   Mr.
Leggio holds a Bachelor of Science degree in Accounting from  the
University of Southern California, where he graduated cum laude.

ITEM 11.  EXECUTIVE COMPENSATION

The  Partnership  does not have any officers  or  employees  and,
therefore,  does  not  pay compensation  to  such  persons.   The
Partnership's  business  is conducted  by  the  Managing  General
Partner  which  is entitled under Article IV of  the  Partnership
Agreement to receive underwriting commissions, acquisition  fees,
property  management fees, subordinated real  estate  commission,
share  of  distribution and an interest in the Partnership.   The
Managing  General  Partner's  fees  totaled  $115,635  in   2000,
consisting  entirely  of  property  management  fees  which   are
calculated as 5% of gross rental revenues collected.

In  addition to the fees described above, the General Partner  is
entitled to reimbursement for out of pocket expenses incurred  on
behalf of the Partnership.  Such expenses aggregated $226,652  in
2000.

ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
           MANAGEMENT

The   Managing   General  Partner  contributed  $1,000   to   the
Partnership Capital accounts, however, no securities were  issued
in respect thereof.  No person is known to the Partnership to own
beneficially more than 5% of the Units.

ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The  Partnership agreement (see Part IV, Item 14(a)(4)  Exhibits)
which was executed in 1985, authorized the compensation set forth
below  to  be  paid  to  the  Managing  General  Partner  and  to
affiliates of the Managing General Partner.

During  the  year  ended December 31, 2000, the Managing  General
Partner  and/or its affiliate received $226,652 for reimbursement
of  administrative services and $115,635 for property  management
and administrative fees.


                             PART IV

ITEM 14.  EXHIBITS FINANCIAL STATEMENT SCHEDULES, AND REPORTS  ON
FORM 8-K

     EXHIBIT
     NUMBER    EXHIBIT

(a)            1,2   See  Item  8  of  this  Form  10-K  for  the
               Consolidated   Financial   Statements    of    the
               Partnership,   Notes  thereto,  and  Supplementary
               Schedules.   An index to Financial Statements  and
               Schedules  is included and incorporated herein  by
               reference.

               4     Limited Partnership Agreement dated February
               6,  1986 filed as exhibit 3.3 and the Amendment to
               the  Limited Partnership Agreement dated  May  22,
               1986,   filed   as  exhibit  3.4  to  Registration
               Statement   No.   2-96042  of   Capital   Builders
               Development  Properties II, a  California  Limited
               Partnership are hereby incorporated by reference.

               11    Statement regarding computation of per  Unit
               earnings  is  not included because the computation
               can   be  clearly  determined  from  the  material
               contained in this report.

(b)            Reports on Form 8-K

                     The  Partnership filed an 8-K dated November
               11, 1992.
                           SIGNATURES

Pursuant  to  the requirements of Section 13 or 15(d)  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.

  Capital Builders Development Properties II
  a California Limited Partnership

  By CAPITAL BUILDERS, INC.,
  The Managing General Partner,
  For and On Behalf of the
  Capital Builders Development Properties II
  A California Limited Partnership



Michael J. Metzger, President                      Date

Pursuant to the requirements of the Securities Exchange Act  of
1934,  this  report  has  been signed below  by  the  following
persons  on behalf of the registrant and in the capacities  and
on the date indicated.

Signature                      Title               Date

                          Associate General
Michael J. Metzger        Partner; President and
                          Director of Capital Builders,
                          Inc. ("CB")

                          Chief Financial
Kenneth L. Buckler        Officer of CB


SUPPLEMENTAL INFORMATION TO BE FURNISHED WITH REPORTS PURSUANT TO
SECTION 15(d) OF THE ACT BY REGISTRANTS WHICH HAVE NOT REGISTERED
SECURITIES PURSUANT TO SECTION 12 OF THE ACT.

The Partnership has not sent an annual report or proxy statements
to  the  Limited  Partners and does not intend to  send  a  proxy
statement to the Limited Partners.  The Partnership will send the
Limited Partners an annual report and will furnish the Commission
with copies of the annual report on or before April 30, 2001.

<TABLE>
   Capital
   Builders
 Development
Properties II
 A California
   Limited
 Partnership
and Subsidiary

SCHEDULE III -
 REAL ESTATE
     AND
 ACCUMULATED
 DEPRECIATION
 December 31,
     2000
<CAPTION>
   Column A      Column B     Column C    Column D
     <S>           <C>          <C>         <C>          <C>
                                            Cost
                                        Capitalized
 Description   Encumbrances Initial Cost Subsequent
                                             to
                                        Acquisition

                                        Improvements   Carrying
                              Land (1)           (1)    Costs

Commercial
Office Bldg.
  Highlands 80   $6,050,908  $2,115,148   $7,794,874      $50,225

Roseville         4,200,000     986,715    3,520,089       89,326

Commercial
Office Bldg.    $10,250,908  $3,101,863  $11,314,963     $139,551


Balance at
beginning of
period

Additions

Deletions (2)

Balance at end
  of period



   Column A      Column E
     <S>           <C>          <C>         <C>

 Description          Gross
                   Carrying
                  Amount at
                     End of
                     Period

                            Buildings &
                            Improvements
                 Land(1)        (1)      Total (1)

Commercial
Office Bldg.
  Highlands 80   $2,622,014  $7,338,233   $9,960,247

Roseville         1,431,785   3,164,345    4,596,130

Commercial
Office Bldg.     $4,053,799 $10,502,578  $14,556,377


                 Column E
                  Total

                   1998         1999        2000

Balance at
beginning of
period          $14,493,041 $14,423,435  $14,917,738

Additions           163,044      494,303      159,561

Deletions (2)     (232,650)           0    (520,922)

Balance at end
of period       $14,423,435 $14,917,738  $14,556,377




   Column A      Column F     Column G    Column H     Column I
     <S>           <C>          <C>         <C>          <C>
               Accumulated    Date of       Date     Depreciation
 Description   Depreciation Construction  Acquired       Life


Commercial
Office Bldg.
                                                     40 Years
Highlands 80     $2,074,876        1987         1987 (Bldg.)

                                                     40 Years
Roseville           573,591        1987         1987 (Bldg.)

                                                     Life of
Commercial                                           Lease Tenant
Office Bldg.     $2,648,467                          Imp.)


                              Column F
                               Total

                                   1998         1999         2000

Balance at
beginning of
period                       $2,061,160   $2,280,524   $2,714,863

Additions                       452,014      434,339      454,526

Deletions (2)                 (232,650)            0    (520,922)

Balance at end
of period                    $2,280,524   $2,714,863   $2,648,467



  1) Valuation
 allowance for
      possible
    investment
       loss of
   $469,000 at
  December 31,
      1995 was
       charged
   against the
 cost basis of
  the land and
  building and
  improvements
 on a pro rata
      basis in
    accordance
      with the
 provisions of
  SFAS No. 121
     which was
    adopted on
    January 1,
         1996.

  2) Deletions
 represent the
  write-off of
         fully
     amortized
        tenant
   improvement
        costs.

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