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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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(Mark One)



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

For the quarterly period ended September 30, 2006 or



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

For the transition period from
 to

Commission file number 0-23656



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WELLS REAL ESTATE FUND VI, L.P.

(Exact name of registrant as specified in its
charter)



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|                                                               |  |                                        
|-------------------------------------------------------------- |  | ---------------------------------------
|Georgia                                                        |  | 58-2022628                             
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification Number)
|                                                               | 
|6200 The Corners Pkwy., Norcross, Georgia                      |  | 30092-3365                             
|(Address of principal executive offices)                       |  | (Zip Code)                             
|                                                               | 
|Registrants telephone number, including area code             |  | (770) 449-7800                         

N/A

(Former name, former address, and former fiscal year, if changed since last report)

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 for 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.    Yes  x    No ̈

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated
filer ̈Accelerated filer ̈Non-accelerated filer  x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ̈No  x



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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this Form 10-Q of Wells Real Estate Fund VI, L.P. (the Partnership or the Registrant) other
than historical facts may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, in particular, statements
about our plans, strategies, and prospects and are subject to certain risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Therefore, such statements
are not intended to be a guarantee of our performance in future periods. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as may, will, expect,
intend, anticipate, estimate, believe, continue, or other similar words. Specifically, we consider, among others, statements concerning future operating results and cash flows, our ability
to meet future obligations, and the amount and timing of any future distributions to limited partners to be forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the
date this report is filed with the Securities and Exchange Commission. We make no representations or warranties (express or implied) about the accuracy of any such forward-looking statements contained in this Form 10-Q, and we do not intend to
publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Any such
forward-looking statements are subject to unknown risks, uncertainties, and other factors and are based on a number of assumptions involving judgments with respect to, among other things, future economic, competitive, and market conditions, all of
which are difficult or impossible to predict accurately. To the extent that our assumptions differ from actual results, our ability to meet such forward-looking statements, including our ability to generate positive cash flow from operations,
provide distributions to partners, and maintain the value of our remaining real estate asset, may be significantly hindered. See Item 1A in the Partnerships Annual Report on Form 10-K for the year ended December 31, 2005 for a
discussion of some of the risks and uncertainties, although not all risks and uncertainties, which could cause actual results to differ materially from those presented in our forward-looking statements.



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WELLS REAL ESTATE FUND VI, L.P.



TABLE
OF CONTENTS



|         |  |                       |  |                                                                                                                               |  |         
|-------- |  | --------------------- |  | ----------------------------------------------------------------------------------------------------------------------------- |  | --------
|         |  |                       |  |                                                                                                                               |  | Page No.
|         |  |                      
|PART I.  |  | FINANCIAL INFORMATION |  |                                                                                                                              
|         |  |                       | 
|         |  | Item 1                |  | Financial Statements                                                                                                          |  |         
|         |  |                       | 
|         |  |                       |  | Balance SheetsSeptember 30, 2006 (unaudited) and December 31, 2005                                                           |  | 5       
|         |  |                       | 
|         |  |                       |  | Statements of Operations for the Three Months and Nine Months Ended September 30, 2006 (unaudited) and 2005 (unaudited)       |  | 6       
|         |  |                       | 
|         |  |                       |  | Statements of Partners Capital for the Year Ended December 31, 2005 and the Nine Months Ended September 30, 2006 (unaudited) |  | 7       
|         |  |                       | 
|         |  |                       |  | Statements of Cash Flows for the Nine Months Ended September 30, 2006 (unaudited) and 2005 (unaudited)                        |  | 8       
|         |  |                       | 
|         |  |                       |  | Condensed Notes to Financial Statements (unaudited)                                                                           |  | 9       
|         |  |                       | 
|         |  | Item 2.               |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                         |  | 16      
|         |  |                       | 
|         |  | Item 3.               |  | Quantitative and Qualitative Disclosures about Market Risk                                                                    |  | 21      
|         |  |                       | 
|         |  | Item 4.               |  | Controls and Procedures                                                                                                       |  | 21      
|         |  |                      
|PART II. |  | OTHER INFORMATION     |  |                                                                                                                              
|         |  |                       | 
|         |  | Item 1.               |  | Legal Proceedings                                                                                                             |  | 22      
|         |  |                       | 
|         |  | Item 1A.              |  | Risk Factors                                                                                                                  |  | 22      
|         |  |                       | 
|         |  | Item 2.               |  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                   |  | 22      
|         |  |                       | 
|         |  | Item 3.               |  | Defaults Upon Senior Securities                                                                                               |  | 22      
|         |  |                       | 
|         |  | Item 4.               |  | Submission of Matters to a Vote of Security Holders                                                                           |  | 22      
|         |  |                       | 
|         |  | Item 5.               |  | Other Information                                                                                                             |  | 22      
|         |  |                       | 
|         |  | Item 6.               |  | Exhibits                                                                                                                      |  | 22      



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|PART I. | FINANCIAL STATEMENTS
|------- | --------------------

The information furnished in
the Partnerships accompanying balance sheets and consolidated statements of operations, partners capital, and cash flows reflects all adjustments that are, in managements opinion, necessary for a fair and consistent presentation of
the aforementioned financial statements.

The accompanying financial statements should be read in conjunction with the notes to the
Partnerships financial statements and Managements Discussion and Analysis of Financial Condition and Results of Operations included both in this report on Form 10-Q and in the Partnerships Annual Report on Form 10-K for the year
ended December 31, 2005. The Partnerships results of operations for the three months and nine months ended September 30, 2006 are not necessarily indicative of the operating results expected for the full year.



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WELLS REAL ESTATE FUND VI, L.P.



BALANCE SHEETS

ASSETS



|                                                 |  |                                |           |                  |   |          
|------------------------------------------------ |  | ------------------------------ | --------- | ---------------- | - | ---------
|                                                 |  | (Unaudited) September 30, 2006 |           | December 31,2005
|Investment in joint ventures                     |  | $                              | 211,895   |                  | $ | 2,081,633
|Cash and cash equivalents                        |  |                                | 4,823,506 |                  |   | 622,252  
|Due from joint ventures                          |  |                                | 0         |                  |   | 40,163   
|Other assets                                     |  |                                | 20,709    |                  |   | 566      
|                                                 |  |                                |           |                  |   |          
|Total assets                                     |  | $                              | 5,056,110 |                  | $ | 2,744,614
|                                                 |  |                                |           |                  |   |          
|                                                
|LIABILITIES AND PARTNERS CAPITAL               
|                                                
|                                                
|                                                 |  |                               
|LIABILITIES:                                     |  |                                |           |                  |   |          
|Accounts payable and accrued expenses            |  | $                              | 20,190    |                  | $ | 63,530   
|Due to affiliates                                |  |                                | 4,712     |                  |   | 7,799    
|                                                 |  |                                |           |                  |   |          
|Total liabilities                                |  |                                | 24,902    |                  |   | 71,329   
|                                                 |  |                               
|PARTNERS CAPITAL:                               |  |                                |           |                  |   |          
|Limited partners                                 |  |                                |           |                  |   |          
|Class A  2,310,358 units issued and outstanding |  |                                | 2,813,063 |                  |   | 1,988,878
|Class B  189,642 units issued and outstanding   |  |                                | 2,217,600 |                  |   | 684,407  
|General partners                                 |  |                                | 545       |                  |   | 0        
|                                                 |  |                                |           |                  |   |          
|Total partners capital                          |  |                                | 5,031,208 |                  |   | 2,673,285
|                                                 |  |                                |           |                  |   |          
|Total liabilities and partners capital          |  | $                              | 5,056,110 |                  | $ | 2,744,614
|                                                 |  |                                |           |                  |   |          

See accompanying notes.



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WELLS REAL ESTATE FUND VI, L.P.



STATEMENTS OF OPERATIONS



|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|------------------------------------------------------------ |  | -------------------------------------------- | --------- | - | ------------------------------------------- | - | --------- | ---- |  | ---- | --------- |  | - | ---------
|                                                             |  | (Unaudited) Three Months Ended September 30, |           |   | (Unaudited) Nine Months Ended September 30,
|                                                             |  | 2006                                         |           |   | 2005                                        |   |           | 2006 |  | 2005
|EQUITY IN INCOME (LOSS) OF JOINT VENTURES                    |  | $                                            | (3,525    | ) |                                             | $ | 60,529    |      |  | $    | 2,382,637 |  | $ | 2,054,915
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|                                                             |  |                                              |           |  
|EXPENSES:                                                    |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|Partnership administration                                   |  |                                              | 21,322    |   |                                             |   | 34,318    |      |  |      | 78,092    |  |   | 103,253  
|Legal and accounting                                         |  |                                              | 16,453    |   |                                             |   | 23,758    |      |  |      | 45,408    |  |   | 48,968   
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|Total expenses                                               |  |                                              | 37,775    |   |                                             |   | 58,076    |      |  |      | 123,500   |  |   | 152,221  
|                                                             |  |                                              |           |  
|INTEREST AND OTHER INCOME                                    |  |                                              | 61,865    |   |                                             |   | 35,860    |      |  |      | 98,786    |  |   | 90,407   
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|NET INCOME                                                   |  | $                                            | 20,565    |   |                                             | $ | 38,313    |      |  | $    | 2,357,923 |  | $ | 1,993,101
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|NET INCOME (LOSS) ALLOCATED TO:                              |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS A LIMITED PARTNERS                                     |  | $                                            | 20,352    |   |                                             | $ | 70,686    |      |  | $    | 824,185   |  | $ | 697,130  
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS B LIMITED PARTNERS                                     |  | $                                            | 8         |   |                                             | $ | (32,373   | )    |  | $    | 1,533,193 |  | $ | 1,295,971
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|GENERAL PARTNERS                                             |  | $                                            | 205       |   |                                             | $ | 0         |      |  | $    | 545       |  | $ | 0        
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|NET INCOME (LOSS) PER WEIGHTED-AVERAGE LIMITED PARTNER UNIT: |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS A                                                      |  | $                                            | 0.01      |   |                                             | $ | 0.03      |      |  | $    | 0.36      |  | $ | 0.30     
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS B                                                      |  | $                                            | 0.00      |   |                                             | $ | (0.17     | )    |  | $    | 8.08      |  | $ | 6.81     
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|WEIGHTED-AVERAGE LIMITED PARTNER UNITS OUTSTANDING:          |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS A                                                      |  |                                              | 2,310,358 |   |                                             |   | 2,310,358 |      |  |      | 2,310,358 |  |   | 2,309,825
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          
|CLASS B                                                      |  |                                              | 189,642   |   |                                             |   | 189,642   |      |  |      | 189,642   |  |   | 190,175  
|                                                             |  |                                              |           |   |                                             |   |           |      |  |      |           |  |   |          

See accompanying notes.



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WELLS REAL ESTATE FUND VI, L.P.



STATEMENTS OF PARTNERS CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2005

AND THE NINE MONTHS ENDED SEPTEMBER 30, 2006 (UNAUDITED)



|                                                                                                                      |  |                  |  |         |                  |   |                         |         |   |         |   |           |   |  |        |  |   |            |  
|--------------------------------------------------------------------------------------------------------------------- |  | ---------------- |  | ------- | ---------------- | - | ----------------------- | ------- | - | ------- | - | --------- | - |  | ------ |  | - | ---------- | -
|                                                                                                                      |  | Limited Partners |  |         | General Partners |   | Total Partners Capital |        
|                                                                                                                      |  | Class A          |  |         | Class B          |   |                         |        
|                                                                                                                      |  | Units            |  | Capital |                  |   | Units                   |         |   | Capital |   |           |  
|BALANCE, December 31, 2004                                                                                            |  | 2,307,758        |  | $       | 8,839,140        |   |                         | 192,242 |   |         | $ | 1,178,837 |   |  | $    0 |  | $ | 10,017,977 |  
|                                                                                                                      |  |                  |  |         |                  |  
|Class B conversion elections                                                                                          |  | 2,600            |  |         | 15,573           |   |                         | (2,600  | ) |         |   | (15,573   | ) |  | 0      |  |   | 0          |  
|Net income                                                                                                            |  | 0                |  |         | 1,830,666        |   |                         | 0       |   |         |   | 230,194   |   |  | 0      |  |   | 2,060,860  |  
|Distributions of operating cash flow ($0.05 per weighted-average Class A Unit)                                        |  | 0                |  |         | (105,552         | ) |                         | 0       |   |         |   | 0         |   |  | 0      |  |   | (105,552   | )
|Distributions of net sale proceeds ($3.72 and $3.73 per weighted-average Class A Unit and Class B Unit, respectively) |  | 0                |  |         | (8,590,949       | ) |                         | 0       |   |         |   | (709,051  | ) |  | 0      |  |   | (9,300,000 | )
|                                                                                                                      |  |                  |  |         |                  |   |                         |         |   |         |   |           |   |  |        |  |   |            |  
|BALANCE, December 31, 2005                                                                                            |  | 2,310,358        |  |         | 1,988,878        |   |                         | 189,642 |   |         |   | 684,407   |   |  | 0      |  |   | 2,673,285  |  
|                                                                                                                      |  |                  |  |         |                  |  
|Net income                                                                                                            |  | 0                |  |         | 824,185          |   |                         | 0       |   |         |   | 1,533,193 |   |  | 545    |  |   | 2,357,923  |  
|                                                                                                                      |  |                  |  |         |                  |   |                         |         |   |         |   |           |   |  |        |  |   |            |  
|BALANCE, September 30, 2006                                                                                           |  | 2,310,358        |  | $       | 2,813,063        |   |                         | 189,642 |   |         | $ | 2,217,600 |   |  | $545   |  | $ | 5,031,208  |  
|                                                                                                                      |  |                  |  |         |                  |   |                         |         |   |         |   |           |   |  |        |  |   |            |  

See accompanying notes.



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WELLS REAL ESTATE FUND VI, L.P.



STATEMENTS OF CASH FLOWS



|                                                                                            |  |                                            |            |   |      |   |            |  
|------------------------------------------------------------------------------------------- |  | ------------------------------------------ | ---------- | - | ---- | - | ---------- | -
|                                                                                            |  | (Unaudited) Nine Months EndedSeptember 30, |           
|                                                                                            |  | 2006                                       |            |   | 2005 |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                       |  |                                            |            |   |      |   |            |  
|Net income                                                                                  |  | $                                          | 2,357,923  |   |      | $ | 1,993,101  |  
|Operating distributions received from joint ventures                                        |  |                                            | 45,851     |   |      |   | 197,432    |  
|Adjustments to reconcile net income to net cash (used in) provided by operating activities: |  |                                            |            |   |      |   |            |  
|Equity in income of joint ventures                                                          |  |                                            | (2,382,637 | ) |      |   | (2,054,915 | )
|Changes in assets and liabilities:                                                          |  |                                            |            |   |      |   |            |  
|Decrease in due from affiliate                                                              |  |                                            | 0          |   |      |   | 61         |  
|Increase in other assets                                                                    |  |                                            | (20,143    | ) |      |   | 0          |  
|Decrease in accounts payable and accrued expenses                                           |  |                                            | (43,340    | ) |      |   | (22,522    | )
|(Decrease) increase in due to affiliates                                                    |  |                                            | (3,087     | ) |      |   | 2,394      |  
|                                                                                            |  |                                            |            |   |      |   |            |  
|Net cash flows (used in) provided by operating activities                                   |  |                                            | (45,433    | ) |      |   | 115,551    |  
|                                                                                            |  |                                           
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                       |  |                                            |            |   |      |   |            |  
|Investment in joint ventures                                                                |  |                                            | (171,252   | ) |      |   | (9,153     | )
|Net sale proceeds received from joint ventures                                              |  |                                            | 4,417,939  |   |      |   | 8,001,063  |  
|                                                                                            |  |                                            |            |   |      |   |            |  
|Net cash flows provided by investing activities                                             |  |                                            | 4,246,687  |   |      |   | 7,991,910  |  
|                                                                                            |  |                                           
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                       |  |                                            |            |   |      |   |            |  
|Net sale proceeds distributions paid to limited partners                                    |  |                                            | 0          |   |      |   | (5,600,000 | )
|Operating distributions paid to limited partners                                            |  |                                            | 0          |   |      |   | (226,709   | )
|                                                                                            |  |                                            |            |   |      |   |            |  
|Net cash flows used in financing activities                                                 |  |                                            | 0          |   |      |   | (5,826,709 | )
|                                                                                            |  |                                            |            |   |      |   |            |  
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                   |  |                                            | 4,201,254  |   |      |   | 2,280,752  |  
|                                                                                            |  |                                           
|CASH AND CASH EQUIVALENTS, beginning of period                                              |  |                                            | 622,252    |   |      |   | 1,873,477  |  
|                                                                                            |  |                                            |            |   |      |   |            |  
|CASH AND CASH EQUIVALENTS, end of period                                                    |  | $                                          | 4,823,506  |   |      | $ | 4,154,229  |  
|                                                                                            |  |                                            |            |   |      |   |            |  

See accompanying notes.



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WELLS REAL ESTATE FUND VI, L.P.



CONDENSED NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2006 (unaudited)



|1. | ORGANIZATION AND BUSINESS
|-- | -------------------------

Wells Real Estate Fund VI, L.P. (the Partnership) is a Georgia public limited partnership with Leo F. Wells, III and Wells Partners, L.P. (Wells Partners), a Georgia nonpublic limited partnership, serving as its
general partners (collectively, the General Partners). Wells Capital, Inc. (Wells Capital) serves as the corporate general partner of Wells Partners. Wells Capital is a wholly owned subsidiary of Wells Real Estate Funds, Inc.
Leo F. Wells, III is the president and sole director of Wells Capital and the president, sole director, and sole owner of Wells Real Estate Funds, Inc. The Partnership was formed on December 1, 1992 for the purpose of acquiring, developing,
constructing, owning, operating, improving, leasing, and managing income-producing properties for investment purposes. Upon subscription, limited partners elected to have their units treated as Class A Units or Class B Units. The limited
partners have the right to change their prior elections to have some or all of their units treated as Class A Units or Class B Units one time every five years and may vote to, among other things: (a) amend the Partnership agreement,
subject to certain limitations; (b) change the business purpose or investment objectives of the Partnership; and (c) add or remove a general partner. A majority vote on any of the above-described matters will bind the Partnership without
the concurrence of the General Partners. Each limited partnership unit has equal voting rights regardless of class.

On April 5, 1993,
the Partnership commenced a public offering of its limited partnership units pursuant to a Registration Statement filed on Form S-11 under the Securities Act of 1933. The Partnership commenced active operations upon receiving and accepting
subscriptions for 125,000 units on May 17, 1993. The offering was terminated on April 4, 1994, at which time the Partnership had sold approximately 1,933,218 Class A Units and 566,782 Class B Units representing capital contributions
of $25,000,000.

The Partnership owns interests in all of its real estate assets through joint ventures with other entities affiliated with
the General Partners. During the period presented, the Partnership owned interests in the following joint ventures (the Joint Ventures) and properties:



|                                                                      |  |                                                                                                                                         |  |                                                  
|--------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------
|Joint Venture                                                         |  | Joint Venture Partners                                                                                                                  |  | Properties                                       
|Fund II, III, VI and VII Associates (Fund II-III-VI-VII Associates) |  |   Fund II and Fund III Associates (Fund II-III Associates)(1)   Wells
Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P. |  | No properties owned during the periods presented.
|Fund V and Fund VI Associates (Fund V-VI Associates)                |  |   Wells Real Estate Fund V, L.P.   Wells Real Estate Fund VI, L.P.                                                                    |  | No properties owned during the periods presented.
|Fund V, Fund VI and Fund VII Associates (Fund V-VI-VII Associates)  |  |   Wells Real Estate Fund V, L.P.   Wells Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P.                                |  | No properties owned during the periods presented.
|Fund VI and Fund VII Associates (Fund VI-VII Associates)            |  |   Wells Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P.                                                                  |  | No properties owned during the periods presented.



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|                                                                           |  |                                                                                                             |  |                                                                                                                                                                                          
|-------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Joint Venture                                                              |  | Joint Venture Partners                                                                                      |  | Properties                                                                                                                                                                               
|Fund VI, Fund VII and Fund VIII Associates (Fund VI-VII-VIII Associates) |  |   Wells Real Estate Fund VI, L.P.   Wells Real Estate Fund VII, L.P.   Wells Real Estate Fund VIII, L.P. |  | 1. BellSouth Building(2) A four-story office building
located in Jacksonville, Florida  2. Tanglewood Commons(3) A retail center in Clemmons, North Carolina, and four outparcels of land



| | (1) | Fund II-III Associates is a joint venture between
Fund II and Fund II-OW and Wells Real Estate Fund III, L.P.
| | --- | -------------------------------------------------------------------------------------------------------------



| | (2) | This property was sold in May 2006.
| | --- | -----------------------------------



| | (3) | One outparcel of land was sold in October 2002;
the shopping center and one outparcel of land were sold in April 2005; a portion of an outparcel of land was condemned by the North Carolina Department of Transportation in October 2005; two outparcels of land remain unsold as of September 30,
2006.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Wells Real Estate Fund II, Wells Real Estate Fund II-OW, Wells Real Estate Fund III, L.P., Wells
Real Estate Fund V, L.P., Wells Real Estate Fund VII, L.P., and Wells Real Estate Fund VIII, L.P. are affiliated with the Partnership through one or more common general partners. Each of the properties described above was acquired on an
all-cash basis. For further information regarding the Joint Ventures and foregoing properties, refer to the Partnerships Annual Report on Form 10-K for the year ended December 31, 2005.

On April 21, 2005, Fund VI-VII-VIII Associates sold the Tanglewood Commons shopping center and one outparcel of land to an unrelated third party for
a gross sales price of $11,500,000. As a result of the sale, the Partnership received net proceeds of approximately $3,848,000 and was allocated a gain of approximately $1,857,000. On October 12, 2005, a portion of one of the remaining
outparcels of land was condemned by the North Carolina Department of Transportation. As a result of the land condemnation, the Partnership received net proceeds of approximately $18,000 and was allocated a gain of approximately $11,000.

On May 15, 2006, Fund VI-VII-VIII Associates and another Wells-affiliated joint venture sold the BellSouth Building and a second office property
owned by the other Wells-affiliated joint venture to an unaffiliated third party for an aggregate gross sales price of $24,000,000, less agreed-upon credits of approximately $228,000. As a result of the sale, the Partnership received net sale
proceeds of approximately $4,400,000 and was allocated a gain of approximately $2,303,000.



|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|-- | ------------------------------------------

Basis of Presentation

The financial statements of the Partnership have been prepared in accordance with the rules and
regulations of the Securities and Exchange Commission, including the instructions to Form 10-Q and Article 10 of Regulation S-X, and in accordance with such rules and regulations, do not include all of the information and footnotes required by U.S.
generally accepted accounting principles (GAAP) for complete financial statements. In the opinion of the General Partners, the statements for the unaudited interim periods presented include all adjustments that are of a normal and
recurring nature and necessary to fairly and consistently present the results for these periods. Results for interim periods are not necessarily indicative of full-year results. For further information, refer to the financial statements and
footnotes included in the Partnerships Annual Report on Form 10-K for the year ended December 31, 2005.

Investment in Joint Ventures

The Partnership has evaluated the Joint Ventures and concluded that none are variable interest entities under the provisions of
Financial Accounting Standards Board Interpretation (FIN) No. 46(R), Consolidation of Variable Interest Entities, which supersedes FIN No. 46 and is an interpretation of Accounting Research Bulletin (ARB)
No. 51, Consolidated Financial Statements. The Partnership does not have control over the operations of the



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##### Table of Contents

Joint Ventures; however, it does exercise significant influence. Approval by the Partnership as well as the other joint venture partners is required for any
major decision or any action that would materially affect the Joint Ventures, or their real property investments. Accordingly, upon applying the provisions of Statement of Financial Accounting Standard (SFAS) No. 94,
Consolidation of All Majority-Owned Subsidiaries, ARB No. 51, and Statement of Position No. 78-9, Accounting for Investments In Real Estate Ventures, the Partnership accounts for its investments in the Joint Ventures using
the equity method of accounting, whereby original investments are recorded at cost and subsequently adjusted for contributions, distributions, and net income (loss) attributable to the Partnership. Pursuant to the terms of the joint venture
agreements, all income (loss) and distributions are allocated to joint venture partners in accordance with their respective ownership interests. Distributions of net cash from operations, if available, are generally distributed to the joint venture
partners on a quarterly basis.

Other Assets

As of September 30, 2006 and December 31, 2005, other assets is comprised of the following items:



|                            |  |                   |  |                 
|--------------------------- |  | ----------------- |  | ----------------
|                            |  | September 30,2006 |  | December 31,2005
|Interest income receivable  |  | $20,422           |  | $    0          
|Insurance refund receivable |  | 287               |  | 566             
|                            |  |                   |  |                 
|Total                       |  | $20,709           |  | $566            
|                            |  |                   |  |                 

Distribution of Net Cash from Operations

Net cash from operations, if available, is generally distributed quarterly to the limited partners as follows:



| |  |  | First, to all Class A limited partners until such limited partners have received distributions equal to a 10% per annum return on their respective
adjusted capital contributions, as defined.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Second, to the General Partners until the General Partners have received distributions equal to 10% of the total distributions paid by the Partnership for such
year.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Third, to the Class A limited partners and the General Partners allocated on a basis of 90% and 10%, respectively.
| | - |  | ------------------------------------------------------------------------------------------------------------------

No distributions of net cash from operations will be made to the limited partners holding Class B Units.

Distribution of Net Sale Proceeds

Upon the sale of
properties, unless reserved, net sale proceeds are distributed in the following order:



| |  |  | In the event that the particular property sold is sold for a price that is less than its original property purchase price, to the limited partners holding
Class A Units until they have received an amount equal to the excess of the original property purchase price over the price for which the property was sold, limited to the amount of depreciation, amortization, and cost recovery deductions taken
by the limited partners holding Class B Units with respect to such property;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To all limited partners, on a per-unit basis, until the limited partners have received 100% of their respective adjusted capital contributions, as defined;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners holding units, which at any time have been treated as Class B Units, until the limited partners have received an amount equal to the net cash
from operations previously received by the limited partners holding Class A Units on a per-unit basis;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To all limited partners, on a per-unit basis, until the limited partners have received a cumulative 10% per annum return on their respective adjusted
capital contributions, as defined;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | To limited partners holding Class B Units on a per-unit basis, until such limited partners have received a cumulative 15% per annum return on their
respective adjusted capital contributions, as defined;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



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| |  |  | To the General Partners until they have received 100% of their respective capital contributions, as defined;
| | - |  | ------------------------------------------------------------------------------------------------------------



| |  |  | Thereafter, 80% to the limited partners and 20% to the General Partners.
| | - |  | ------------------------------------------------------------------------

Liquidating Distributions

Liquidating distributions will be made to the limited partners following
the sale of substantially all of the real estate assets in which the Partnership owns interests. Pursuant to the partnership agreement, after satisfying all debts and liabilities and establishing reserves deemed reasonably necessary in the sole
discretion of the General Partners, liquidating distributions will be allocated to the limited partners in accordance with their respective positive tax capital balances, as adjusted for allocations of gain or loss on the sale of properties.

Allocations of Net Income, Net Loss, and Gain on Sale

For the purpose of determining allocations per the partnership agreement, net income is defined as net income recognized by the Partnership, excluding deductions for depreciation, amortization, and cost recovery and
the gain on the sale of assets. Net income, as defined, of the Partnership is generally allocated each year in the same proportions that net cash from operations is distributed to the limited partners holding Class A Units and the General
Partners. To the extent the Partnerships net income in any year exceeds net cash from operations, it will be allocated 99% to the limited partners holding Class A Units and 1% to the General Partners.

Net loss, depreciation, and amortization deductions for each fiscal year will be allocated as follows: (a) 99% to the limited partners holding Class
B Units and 1% to the General Partners until their capital accounts are reduced to zero; (b) then, to any partner having a positive balance in his capital account in an amount not to exceed such positive balance; and (c) thereafter, to the
General Partners.

Gain on the sale or exchange of the Partnerships properties will be allocated generally in the same manner that
the net proceeds from such sale are distributed to partners after the following allocations are made, if applicable: (a) allocations made pursuant to a qualified income offset provision in the partnership agreement; (b) allocations to
partners having negative capital accounts until all negative capital accounts have been restored to zero; (c) allocations to Class B limited partners in amounts equal to deductions for depreciation and amortization previously allocated to
them with respect to the specific partnership property sold, but not in excess of the amount of gain on sale recognized by the Partnership with respect to the sale of such property; and (d) allocations to Class A limited partners and
General Partners in amounts equal to deductions for depreciation and amortization previously allocated to them with respect to the specific partnership property sold, but not in excess of the amount of gain on sale recognized by the Partnership with
respect to the sale of such property.

Recent Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board issued SFAS No. 157, Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value,
and expands disclosures required for fair value measurements under GAAP. SFAS No. 157 emphasizes that fair value is a market-based measurement, as opposed to an entity-specific measurement. SFAS No. 157 will be effective for the
Partnership beginning January 1, 2008. The Partnership is currently assessing provisions and evaluating the financial impact of SFAS No. 157 on its financial statements.

In September 2006, the SEC issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial
Statements(SAB No. 108), which provides interpretive guidance on the consideration of the effects of prior year misstatements in quantifying current year misstatements for the purpose of a materiality assessment. SAB
No. 108 is effective for fiscal years ending after November 15, 2006, and will be effective for the Partnership beginning December 31, 2006. The Partnership is currently assessing provisions and evaluating the financial statement
impact of SAB No. 108 on its financial statements.



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##### Table of Contents

|3. | INVESTMENT IN JOINT VENTURES
|-- | ----------------------------

Summary of
Financial Information

Condensed financial information for the Joint Ventures for the three months and nine months ended
September 30, 2006 and 2005, respectively, is presented below:



|                              |  |                                 |  |                                 |  |              |                                           |  |           |                                 |  |                  |  |              |   |  |                  |   |  |              |  
|----------------------------- |  | ------------------------------- |  | ------------------------------- |  | ------------ | ----------------------------------------- |  | --------- | ------------------------------- |  | ---------------- |  | ------------ | - |  | ---------------- | - |  | ------------ | -
|                              |  | Total Revenues                  |  | Loss From Continuing Operations |  |              | Income From Discontinued Operations       |  |           | Net Income (Loss)               | 
|                              |  | Three Months EndedSeptember 30, |  | Three Months EndedSeptember 30, |  |              | Three Months EndedSeptember 30,           |  |           | Three Months EndedSeptember 30, | 
|                              |  | 2006                            |  | 2005                            |  | 2006         |                                           |  | 2005      |                                 |  | 2006             |  | 2005         |   |  | 2006             |   |  | 2005         |  
|Fund II-III-VI-VII Associates |  | $0                              |  | $0                              |  | $          0 |                                           |  | $  (1,720 | )                               |  | $       0        |  | $    3,668   |   |  | $          0     |   |  | $    1,948   |  
|Fund V-VI Associates          |  | 0                               |  | 0                               |  | 0            |                                           |  | (1,602    | )                               |  | 0                |  | 605          |   |  | 0                |   |  | (997         | )
|Fund V-VI-VII Associates      |  | 0                               |  | 0                               |  | 0            |                                           |  | (2,722    | )                               |  | 0                |  | 0            |   |  | 0                |   |  | (2,722       | )
|Fund VI-VII Associates        |  | 0                               |  | 0                               |  | 0            |                                           |  | (83       | )                               |  | 0                |  | 5,000        |   |  | 0                |   |  | 4,917        |  
|Fund VI-VII-VIII Associates   |  | 0                               |  | 0                               |  | (13,236      | )                                         |  | (11,535   | )                               |  | 2,944            |  | 185,227      |   |  | (10,292          | ) |  | 173,692      |  
|                              |  |                                 |  |                                 |  |              |                                           |  |           |                                 |  |                  |  |              |   |  |                  |   |  |              |  
|                              |  | $0                              |  | $0                              |  | $(13,236     | )                                         |  | $(17,662  | )                               |  | $2,944           |  | $194,500     |   |  | $(10,292         | ) |  | $176,838     |  
|                              |  |                                 |  |                                 |  |              |                                           |  |           |                                 |  |                  |  |              |   |  |                  |   |  |              |  
|                              |  |                                 |  |                                
|                              |  | Total Revenues                  |  | Loss From Continuing Operations |  |              | Income (Loss) FromDiscontinued Operations |  |           | Net Income (Loss)               | 
|                              |  | Nine Months EndedSeptember 30,  |  | Nine Months EndedSeptember 30,  |  |              | Nine Months EndedSeptember 30,            |  |           | Nine Months EndedSeptember 30,  | 
|                              |  | 2006                            |  | 2005                            |  | 2006         |                                           |  | 2005      |                                 |  | 2006             |  | 2005         |   |  | 2006             |   |  | 2005         |  
|Fund II-III-VI-VII Associates |  | $0                              |  | $0                              |  | $          0 |                                           |  | $  (9,928 | )                               |  | $              0 |  | $     93,697 |   |  | $              0 |   |  | $     83,769 |  
|Fund V-VI Associates          |  | 0                               |  | 0                               |  | 0            |                                           |  | (8,311    | )                               |  | 0                |  | (5,989       | ) |  | 0                |   |  | (14,300      | )
|Fund V-VI-VII Associates      |  | 0                               |  | 0                               |  | 0            |                                           |  | (13,994   | )                               |  | 0                |  | (3,430       | ) |  | 0                |   |  | (17,424      | )
|Fund VI-VII Associates        |  | 0                               |  | 0                               |  | 0            |                                           |  | (16,303   | )                               |  | 0                |  | 1,172        |   |  | 0                |   |  | (15,131      | )
|Fund VI-VII-VIII Associates   |  | 0                               |  | 0                               |  | (31,364      | )                                         |  | (27,810   | )                               |  | 6,987,907        |  | 6,027,001    |   |  | 6,956,543        |   |  | 5,999,191    |  
|                              |  |                                 |  |                                 |  |              |                                           |  |           |                                 |  |                  |  |              |   |  |                  |   |  |              |  
|                              |  | $0                              |  | $0                              |  | $(31,364     | )                                         |  | $(76,346  | )                               |  | $6,987,907       |  | $6,112,451   |   |  | $6,956,543       |   |  | $6,036,105   |  
|                              |  |                                 |  |                                 |  |              |                                           |  |           |                                 |  |                  |  |              |   |  |                  |   |  |              |  

The Partnership allocates its share of earnings generated by the properties owned by the Joint
Ventures to its Class A and Class B limited partners pursuant to the partnership agreement provisions outlined in Note 2 for net income, net loss, and gain on sale, respectively. The components of income (loss) from discontinued operations
recognized by the Joint Ventures are provided below:



|                              |  |                                      |  |                                      |  |                  |  |                        |   |  |              |     |  |              |  
|----------------------------- |  | ------------------------------------ |  | ------------------------------------ |  | ---------------- |  | ---------------------- | - |  | ------------ | --- |  | ------------ | -
|                              |  | Nine Months Ended September 30, 2006 |  | Nine Months Ended September 30, 2005 | 
|                              |  | OperatingIncome                      |  | Gain on Sale                         |  | Total            |  | OperatingIncome (Loss) |   |  | Gain on Sale |     |  | Total        |  
|Fund II-III-VI-VII Associates |  | $           0                        |  | $              0                     |  | $              0 |  | $   (6,489             | ) |  | $   100,186  | (1) |  | $     93,697 |  
|Fund V-VI Associates          |  | 0                                    |  | 0                                    |  | 0                |  | (5,989                 | ) |  | 0            |     |  | (5,989       | )
|Fund V-VI-VII Associates      |  | 0                                    |  | 0                                    |  | 0                |  | (3,430                 | ) |  | 0            |     |  | (3,430       | )
|Fund VI-VII Associates        |  | 0                                    |  | 0                                    |  | 0                |  | 1,172                  |   |  | 0            |     |  | 1,172        |  
|Fund VI-VII-VIII Associates   |  | 262,702                              |  | 6,725,205                            |  | 6,987,907        |  | 604,025                |   |  | 5,422,976    |     |  | 6,027,001    |  
|                              |  |                                      |  |                                      |  |                  |  |                        |   |  |              |     |  |              |  
|                              |  | $262,702                             |  | $6,725,205                           |  | $6,987,907       |  | $589,289               |   |  | $5,523,162   |     |  | $6,112,451   |  
|                              |  |                                      |  |                                      |  |                  |  |                        |   |  |              |     |  |              |  



| | (1) | Represents additional gain recognized on the sale of the Holcomb
Bridge Property, which was deferred at closing related to a rental guarantee for certain space at the Holcomb Bridge Property.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Due from Joint Ventures

As presented in the accompanying balance sheets, due from joint ventures as of September 30,
2006 and December 31, 2005 represents operating cash flow generated by the Joint Ventures for the three months ended September 30, 2006 and December 31, 2005, respectively, which is attributable to the Partnership.



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|4. | RELATED-PARTY TRANSACTIONS
|-- | --------------------------

Management
and Leasing Fees

The Partnership entered into a property management and leasing agreement with Wells Management Company, Inc.
(Wells Management), an affiliate of the General Partners. In accordance with the property management and leasing agreement, Wells Management receives compensation for the management and leasing of the Partnerships properties owned
through the Joint Ventures, equal to (a) of the gross revenues collected monthly, 3% for management services and 3% leasing services, plus a separate fee for the one-time lease-up of newly constructed properties in an amount not to exceed the
fee customarily charged in arms-length transactions by others rendering similar services in the same geographic area for similar properties, which is assessed periodically based on market studies, or (b) in the case of commercial
properties leased on a long-term net basis (ten or more years), 1% of the gross revenues except for initial leasing fees equal to 3% of the gross revenues over the first five years of the lease term. Management and leasing fees are paid by the Joint
Ventures and, accordingly, included in equity in income of joint ventures in the accompanying statements of operations. The Partnerships share of management and leasing fees and lease acquisition costs incurred though the Joint Ventures is $0
and $3,573 for the three months ended September 30, 2006 and 2005, respectively, and $6,237 and $24,047 for the nine months ended September 30, 2006 and 2005, respectively.

Administration Reimbursements

Wells Capital, the corporate general partner of Wells Partners, one of
the Partnerships general partners, and Wells Management perform certain administrative services for the Partnership, relating to accounting and other partnership administration, and incur the related expenses. Such expenses are allocated among
other entities affiliated with the General Partners based on estimates of the amount of time dedicated to each fund by individual administrative personnel. In the opinion of the General Partners, this allocation is a reasonable estimation of such
expenses. The Partnership reimbursed Wells Capital and Wells Management for administrative expenses of $13,513 and $20,283 for the three months ended September 30, 2006 and 2005, respectively, and $42,519 and $65,351 for the nine months ended
September 30, 2006 and 2005, respectively. In addition, Wells Capital pays for certain operating expenses of the Partnership (bill-backs) directly and invoices the Partnership for the reimbursement thereof. As of September 30,
2006 and December 31, 2005, the due to affiliates balances represent administrative reimbursements and bill-backs due to Wells Management and/or Wells Capital.

Economic Dependency

We have engaged Wells Capital and Wells Management to provide certain essential
services, including supervision of the management and leasing of our properties, asset acquisition and disposition services, as well as other administrative responsibilities for us including accounting services and investor communications and
relations. These agreements are terminable by either party upon 60 days written notice. As a result of these relationships, we are dependent upon Wells Capital and Wells Management.

Wells Capital and Wells Management are all owned and controlled by Wells Real Estate Funds, Inc. (WREF). The operations of Wells Capital and Wells Management represent substantially
all of the business of WREF. Accordingly, we focus on the financial condition of WREF when assessing the financial condition of Wells Capital and Wells Management. In the event that WREF was to become unable to meet its obligations as they become
due, we might be required to find alternative service providers.

Future net income generated by WREF will be largely dependent upon the
amount of fees earned by Wells Capital and Wells Management based on, among other things, the level of investor proceeds raised from the sale of common stock for certain WREF-sponsored programs and the volume of future acquisitions and dispositions
of real estate assets by WREF-sponsored programs. As of September 30, 2006, the General Partners believe that WREF generates adequate cash flow from operations and has adequate liquidity available in the form of cash on hand and current
receivables necessary to meet its current and future obligations as they become due.



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|5. | COMMITMENTS AND CONTINGENCIES
|-- | -----------------------------

The Partnership and its General Partners are from time to time a party to legal proceedings, which arise in the ordinary course of its business. The Partnership is not currently involved in any legal proceedings of which the outcome is
reasonably possible to have a material adverse effect on results of operations or financial condition. The Partnership is not aware of any legal proceedings contemplated by governmental authorities.



|6. | SUBSEQUENT EVENT
|-- | ----------------

The 2005
sale of the Tanglewood Commons shopping center, the 2005 Tanglewood Commons land condemnation, and the 2006 sale of the BellSouth Building generated aggregate net sale proceeds to the Partnership of approximately $8,266,000, of which approximately
$177,000 has been utilized and approximately $3,346,000 has been previously distributed to limited partners through September 30, 2006. In accordance with the terms of the partnership agreement, in November 2006, the General Partners
distributed net sale proceeds of approximately $4,300,000 to the limited partners of record as of September 30, 2006, which, under the terms of the partnership agreement does not include limited partners acquiring units after June 30,
2006. Upon evaluating the Partnerships obligations, our General Partners have determined that reserves of net sale proceeds of approximately $444,000 will be required to fund the Partnerships ongoing operations and eventual liquidation
and dissolution costs.



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##### Table of Contents

|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- | -------------------------------------------------------------------------------------

The following discussion and analysis should be read in conjunction with the accompanying financial statements and notes thereto. See also Cautionary Note Regarding Forward-Looking
Statements preceding Part I, as well as the notes to our financial statements and Managements Discussion and Analysis of Financial Condition and Results of Operations provided in our Annual Report on Form 10-K for the year ended
December 31, 2005.

Overview

Management believes that the Partnership typically operates through the following five key life cycle phases. The duration of each phase is dependent upon various economic, industry, market, and other internal/external factors. Some overlap
naturally exists in the transition from one phase to the next.



| |  |  | Fundraising phase
| | - |  | -----------------

The period during which the Partnership is raising capital through the sale and issuance of limited partner units to the public;



| |  |  | Investing phase
| | - |  | ---------------

The period during which the Partnership invests the capital raised during the fundraising phase, less upfront fees, into the acquisition of real estate assets;



| |  |  | Holding phase
| | - |  | -------------

The period during which the Partnership owns and operates its real estate assets during the initial lease terms of the tenants;



| |  |  | Positioning-for-sale phase
| | - |  | --------------------------

The period during which the leases in place at the time of acquisition expire and, thus, the Partnership expends time, effort, and funds to re-lease such space to existing and/or new tenants. Following the holding
phase, the Partnership continues to own and operate the real estate assets, evaluate various options for disposition, and market the real estate assets for sale; and



| |  |  | Disposition-and-liquidation phase
| | - |  | ---------------------------------

The period during which the Partnership sells its real estate investments, distributes net sale proceeds to the partners, liquidates, and terminates the Partnership.

Portfolio Overview

We are in the
disposition-and-liquidation phase of our life cycle. The only remaining real estate assets owned by the Partnership are two outparcels of land located at Tanglewood Commons.

The General Partners distributed net sale proceeds to limited partners in November 2006 of approximately $4,300,000 from the sale of the Tanglewood Commons shopping center, the Tanglewood Commons
land condemnation, and the sale of the BellSouth Building. The remainder of these net sale proceeds and operating cash are being reserved to fund ongoing operations and eventual liquidation and dissolution costs. These expenses include, but are not
limited to, legal fees, audit and tax fees, printing and postage costs, potential liabilities under the final purchase and sale agreement, and other administrative expenses. Due to a reduction in operating cash flow resulting from recent property
sales, operating distributions to limited partners will continue to be reserved.

Property Summary

Information relating to the properties owned, or previously owned, by joint ventures is provided below:



| |  |  | The Cherokee Commons property was sold on October 1, 2001.
| | - |  | ----------------------------------------------------------



| |  |  | The Hartford Building was sold on August 12, 2003.
| | - |  | --------------------------------------------------



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##### Table of Contents

| |  |  | The Stockbridge Village II, III, and I Expansion properties were sold on April 29, 2004.
| | - |  | ----------------------------------------------------------------------------------------



| |  |  | The Holcomb Bridge Property was sold on July 1, 2004.
| | - |  | -----------------------------------------------------



| |  |  | The Marathon Building was sold on December 29, 2004.
| | - |  | ----------------------------------------------------



| |  |  | The Tanglewood Commons shopping center was sold on April 21, 2005. On October 12, 2005, a portion of one of the remaining outparcels of land was
condemned. We retain an ownership interest in two remaining outparcels of land.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The BellSouth Building was sold on May 15, 2006.
| | - |  | ------------------------------------------------

Liquidity and Capital Resources

Overview

Our operating strategy has entailed funding expenditures related to the recurring operations of the Joint Ventures properties and the portfolio with operating cash flows, including current and prior period
operating distributions received from the Joint Ventures, and assessing the amount of remaining cash flows that will be required to fund known future re-leasing costs and other capital improvements. Historically, residual operating cash flows were
generally considered available for distribution to the Class A limited partners and, unless reserved, were generally paid quarterly. To the extent that operating cash flows have been insufficient to fund our recurring operations, net sale
proceeds have been utilized. As a result, the ongoing monitoring of our cash position has been critical to ensuring that adequate liquidity and capital resources are available.

Short-Term Liquidity

During the nine months ended September 30, 2006, we used net operating
cash flows, which includes operating distributions received from the Joint Ventures, of approximately $45,000, as compared to generating net operating cash inflows of approximately $116,000 for the nine months ended September 30, 2005. The 2006
decrease, as compared to 2005, is primarily attributable to a decrease in operating distributions received from the Joint Ventures, as further described below. Operating distributions from the Joint Ventures are generally representative of rental
revenues and tenant reimbursements, less property operating expenses, management fees, general administrative expenses, and capital expenditures.

Operating distributions received from the Joint Ventures have declined in 2006, primarily as a result of a decrease in cash flows from the sales of properties in the previous periods. We expect operating distributions from the Joint
Ventures to cease, as we sold our last remaining rental property in the second quarter of 2006. Future operating distributions paid to limited partners are expected to be reserved as a result of having sold all of the real estate assets in which we
owned interests other than two outparcels of land at Tanglewood Commons.

We believe that cash on hand is sufficient to cover our working
capital needs, including liabilities of approximately $25,000, as of September 30, 2006.

Long-Term Liquidity

We have sold all of the rental real estate assets in which we owned interests and do not anticipate acquiring additional properties. Accordingly, sources
of capital will be primarily derived from the reserves of net sale proceeds from the sale of properties in the current and previous periods.

Capital
Resources

The Partnership is an investment vehicle formed for the purpose of acquiring, owning, and operating income-producing real
properties, or investing in joint ventures formed for the same purpose, and has invested all of the partners original capital contributions. Thus, it is unlikely that we will acquire interests in any additional properties or joint ventures.
Historically, our investment strategy has generally involved acquiring properties on an all-cash basis that are pre-leased to creditworthy tenants through joint ventures with affiliated partnerships.



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##### Table of Contents

Historically, the Joint Ventures funded capital expenditures primarily related to building improvements
for the purpose of maintaining the quality of our properties, and tenant improvements for the purpose of readying our properties for re-leasing. As leases expired, the Joint Ventures would attempt to re-lease space to an existing tenant or market
the space to prospective new tenants. Generally, tenant improvements funded in connection with lease renewals required less capital than those funded in connection with new leases. However, external conditions, such as the supply of and demand for
comparable space available within a given market, drive capital costs as well as rental rates. Any capital or other expenditures not provided for by the operations of the Joint Ventures will be required to be funded by the Partnership and respective
joint venture partners on a pro-rata basis.

Operating cash flows, if available, are generally distributed from the Joint Ventures to the
Partnership approximately one month following calendar quarter-ends. Our cash management policy typically includes first utilizing current period operating cash flow until depleted, at which point operating reserves are utilized to fund capital and
other required expenditures. In the event that current and prior period accumulated operating cash flows are insufficient to fund such costs, net property sale proceeds reserves would then be utilized.

As of September 30, 2006, we had received, used, distributed, and held net sale proceeds allocated to the Partnership from the sale of properties as
presented below:



|                                                   |  |                   |  |                                       |   |         |                                                |  |                          |  |                                                                                     |  |                                                         |  |                 
|-------------------------------------------------- |  | ----------------- |  | ------------------------------------- | - | ------- | ---------------------------------------------- |  | ------------------------ |  | ----------------------------------------------------------------------------------- |  | ------------------------------------------------------- |  | ----------------
|Property Sold                                      |  | Net Sale Proceeds |  | Partnerships Approximate Ownership % |   |         | Net Sale Proceeds Allocated to the Partnership |  | Use of Net Sale Proceeds |  | Net Sale Proceeds Distributed toPartners as of September 30, 2006                   |  | Undistributed NetSale Proceeds as of
September 30, 2006
|                                                   |  |                   |  | Amount                                |   | Purpose |                                                | 
|                                                   |  |                   |  |                                       |   |         |                                               
|Cherokee Commons(sold in 2001)                     |  | $8,414,089        |  | 10.5                                  | % |         | $     886,212                                  |  | $212                     |  |   Partnership operating expenses (2004)                                            |  | $     886,000                                           |  | $              0
|                                                   |  |                   |  |                                       |   |         |                                               
|Tanglewood Commons Outparcel(sold in 2002)         |  | $524,398          |  | 34.3                                  | % |         | 179,606                                        |  | 179,606                  |  |   Re-leasing the Marathon Building (2004)   Partnership operating expenses (2004) |  | 0                                                       |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Hartford Building(sold in 2003)                    |  | $8,146,900        |  | 53.6                                  | % |         | 4,366,494                                      |  | 19,116                   |  |   Re-leasing the Marathon Building (2004)                                          |  | 4,347,378                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Stockbridge Village II(sold in 2004)               |  | $2,705,451        |  | 53.6                                  | % |         | 1,450,040                                      |  | 0                        |  |                                                                                    |  | 1,450,040                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Stockbridge Village III(sold in 2004)              |  | $2,909,853        |  | 44.8                                  | % |         | 1,303,606                                      |  | 0                        |  |                                                                                    |  | 1,303,606                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Stockbridge Village I Expansion(sold in 2004)      |  | $4,108,277        |  | 44.8                                  | % |         | 1,840,496                                      |  | 0                        |  |                                                                                    |  | 1,840,496                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Holcomb Bridge Property(sold in 2004)              |  | $6,889,379        |  | 26.2                                  | % |         | 1,801,573                                      |  | 0                        |  |                                                                                    |  | 1,801,573                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Marathon Building(sold in 2004)                    |  | $9,927,330        |  | 41.8                                  | % |         | 4,152,602                                      |  | 0                        |  |                                                                                    |  | 4,152,602                                               |  | 0               
|                                                   |  |                   |  |                                       |   |         |                                               
|Tanglewood Commons(sold in 2005)                   |  | $11,236,283       |  | 34.3                                  | % |         | 3,848,461                                      |  | 176,726                  |  |   Partnership operating expenses (2005 and 2006)                                   |  | 3,345,824                                               |  | 325,911         
|                                                   |  |                   |  |                                       |   |         |                                               
|Tanglewood Commons land condemnation(sold in 2005) |  | $52,050           |  | 34.3                                  | % |         | 17,827                                         |  | 0                        |  |                                                                                    |  | 0                                                       |  | 17,827          
|                                                   |  |                   |  |                                       |   |         |                                               
|BellSouth Building(sold in 2006)                   |  | $12,846,928       |  | 34.3                                  | % |         | 4,400,111                                      |  | 0                        |  |                                                                                    |  | 0                                                       |  | 4,400,111       
|                                                   |  |                   |  |                                       |   |         |                                                |  |                          |  |                                                                                     |  |                                                         |  |                 
|                                                   |  |                   |  |                                       |   |         |                                               
|Total                                              |  |                   |  |                                       |   |         | $24,247,028                                    |  | $375,660                 |  |                                                                                     |  | $19,127,519                                             |  | $4,743,849      
|                                                   |  |                   |  |                                       |   |         |                                                |  |                          |  |                                                                                     |  |                                                         |  |                 



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Upon evaluating the Partnerships obligations, our General Partners have determined that reserves of
net sale proceeds of approximately $444,000 will be required to fund the Partnerships ongoing operations and eventual liquidation and dissolution costs. Accordingly, in November 2006, net sale proceeds of approximately $4,300,000 from the sale
of the Tanglewood Commons shopping center, the Tanglewood Commons land condemnation, and the sale of the BellSouth Building were distributed to the limited partners of record as of September 30, 2006, which, under the terms of the partnership
agreement, did not include limited partners acquiring units after June 30, 2006.

Results of Operations

Equity in Income (Loss) of Joint Ventures

Equity in
income (loss) of Joint Ventures was $(3,525) and $60,529 for the three months ended September 30, 2006 and 2005, respectively. The decrease for the three months ended September 30, 2006, as compared to the three months ended
September 30, 2005, is primarily attributable to a decrease in operating income resulting from the sale of the BellSouth Building in the second quarter of 2006.

Equity in income of Joint Ventures was $2,382,637 and $2,054,915 for the nine months ended September 30, 2006 and 2005, respectively. The increase in equity in income of Joint Ventures for the nine months ended
September 30, 2006, as compared to the nine months ended September 30, 2005, is primarily attributable to (i) the gain recognized on the sale of the BellSouth Building in the second quarter of 2006, partially offset by (ii) the
gain recognized on the sale of the Tanglewood Commons shopping center in the second quarter of 2005, and (iii) a decrease in operating income resulting from the aforementioned sales.

We expect equity in income of Joint Ventures to remain at similar levels going forward until we are able to sell the two remaining outparcels of land at Tanglewood Commons.

Expenses

Our total expenses were $37,775 and $58,076
for the three months ended September 30, 2006 and 2005, respectively, and $123,500 and $152,221 for the nine months ended September 30, 2006 and 2005, respectively. The 2006 decreases, as compared to 2005, are primarily attributable to a
decline in administrative costs relative to the decrease in the size of the portfolio as a result of the sales of properties.

We
anticipate increases in our administrative expenses and legal fees in future periods resulting from increased legal fees and administrative costs relating to compliance with reporting and regulatory requirements.

Interest and Other Income

Interest and other income
was $61,865 and $35,860 for the three months ended September 30, 2006 and 2005, respectively, and $98,786 and $90,407 for the nine months ended September 30, 2006 and 2005, respectively. The 2006 increases, as compared to 2005, are a
result of (i) an increase in the average amount of net sale proceeds held during 2006, primarily as a result of the net sale proceeds received from the sale of the BellSouth Building in May 2006 and (ii) an increase in the daily interest
yield.

Future levels of interest income are expected to decrease resulting from the decline in net sale proceeds held following the
distribution of net sale proceeds in November 2006.

Application of Critical Accounting Policies

Summary

Our accounting policies have been established
to conform with GAAP. The preparation of financial statements in conformity with GAAP requires management to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported
amounts of assets and liabilities and



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disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the
reporting periods. If managements judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a
different presentation of the financial statements. Additionally, other companies may utilize different estimates that may impact comparability of our results of operations to those of companies in similar businesses.

Below is a discussion of the accounting policies used by the Partnership and the Joint Ventures, which are considered to be critical in that they may
require complex judgment in their application or require estimates about matters that are inherently uncertain.

Investment in Real Estate Assets

We are required to make subjective assessments as to the useful lives of our depreciable assets. We have considered the period of
future benefit in determining the appropriate useful lives for our real estate assets. These assessments have a direct impact on net income. We depreciated real estate assets owned through the Joint Ventures during the periods presented over the
following estimated useful lives:



|                      |  |                                       
|--------------------- |  | --------------------------------------
|Buildings             |  | 40 years                              
|Building improvements |  | 5-25 years                            
|Land improvements     |  | 20 years                              
|Tenant improvements   |  | Shorter of lease term or economic life

In the event that the Joint Ventures utilized inappropriate useful lives or methods of
depreciation, our net income would be misstated.

Valuation of Real Estate Assets

We continually monitor events and changes in circumstances that could indicate that the carrying amounts of the real estate assets in which we have an ownership interest through investments in
the Joint Ventures may not be recoverable. When indicators of potential impairment are present which indicate that the carrying amounts of real estate assets may not be recoverable, management assesses the recoverability of the real estate assets by
determining whether the carrying value of the real estate assets will be recovered through the undiscounted future operating cash flows expected from the use of the assets and their eventual disposition. In the event that such expected undiscounted
future cash flows do not exceed the carrying value, management adjusts the real estate assets to the fair value, as defined by SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, and recognizes an impairment
loss. Estimated fair values are calculated based on the following information, dependent upon availability, in order of preference: (i) recently quoted market prices, (ii) market prices for comparable properties, or (iii) the present
value of undiscounted cash flows, including estimated salvage value. We have determined that there has been no impairment in the carrying value of the remaining real estate asset in which the Partnership held an interest as of September 30,
2006.

Projections of expected future cash flows require management to estimate future market rental income amounts subsequent to the
expiration of current lease agreements, property operating expenses, discount rates, the number of months it takes to re-lease the property, and the number of years the property is held for investment. The use of inappropriate assumptions in the
future cash flow analysis would result in an incorrect assessment of the propertys future cash flows and fair value, and could result in the overstatement of the carrying value of real estate assets held by the Joint Ventures and net income of
the Partnership.

Related-Party Transactions and Agreements

We have entered into agreements with Wells Capital and Wells Management, affiliates of our General Partners, and their affiliates, whereby we pay certain fees and expense reimbursements to Wells Capital, Wells
Management, and their affiliates for asset management; the management and leasing of our properties;



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administrative services relating to accounting, property management, and other partnership administration; and incur the related expenses. See Note 4 to
our financial statements included in this report for a description of these fees and expense reimbursements we have incurred.

Potential Tax Impact on
Limited Partners Holding Class B Units  American Jobs Creation Act of 2004

The American Jobs Creation Act of 2004 added
Section 470 to the Internal Revenue Code, which provides for certain limitations on the utilization of losses by investors that are attributable to leased property owned by a partnership having both taxable and tax-exempt partners such as the
Partnership. If Section 470 were deemed to apply to the Partnership, passive losses allocable to limited partners holding Class B Units could only be utilized to offset passive income generated from the same property or potentially from
properties owned by the same partnership. In March 2005, the Internal Revenue Service (IRS) announced that the IRS would not apply Section 470 to partnerships for the taxable year 2004 based solely on the fact that a partnership had
both taxable and tax-exempt partners, and in December 2005, the IRS extended the period for transitional relief through the 2005 tax year. In addition, pursuant to Section 403(ff) of the Gulf Opportunity Zone Act of 2005, the effective date
provisions regarding the applicability of Section 470 were amended to provide that, in the case of leased property treated as tax-exempt use property by reason of its being owned by a partnership having both taxable and tax-exempt partners,
Section 470 will apply only to property acquired after March 12, 2004. Since the Partnership acquired all of its properties prior to March 12, 2004, and is not expected to acquire interests in any additional properties in the future,
we do not believe that the provisions of Section 470 should apply to limit the utilization of losses attributable to the properties owned by the Partnership; however, due to the uncertainties and lack of guidance relating to this provision, it
is unclear as to whether the acquisition of a limited partnership interest in the Partnership after the March 12, 2004 effective date may be deemed to be an acquisition of property within the meaning of the effective date provisions of
Section 470.



|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | ----------------------------------------------------------

Since we do not borrow any money, make any foreign investments, or invest in any market risk-sensitive instruments, we are not subject to risks relating to interest rates, foreign current exchange rate fluctuations, or the other market
risks contemplated by Item 305 of Regulation S-K.



|ITEM 4. | CONTROLS AND PROCEDURES
|------- | -----------------------

We carried out an
evaluation, under the supervision and with the participation of management of Wells Capital, our corporate General Partner, including the Principal Executive Officer and the Principal Financial Officer of Wells Capital, of the effectiveness of the
design and operation of the Partnerships disclosure controls and procedures as defined in rule 13a-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based upon that evaluation, the Principal
Executive Officer and the Principal Financial Officer of Wells Capital concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report in providing a reasonable level of assurance
that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the time periods specified in applicable SEC rules and forms, including
providing a reasonable level of assurance that information required to be disclosed by us in such reports is accumulated and communicated to our management, including the Principal Executive Officer and the Principal Financial Officer of Wells
Capital, as appropriate, to allow timely decisions regarding required disclosure.

There were no significant changes in our internal
control over financial reporting during the quarter ended September 30, 2006 that have materially affected, or are likely to materially affect, our internal control over financial reporting.



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|PART II. | OTHER INFORMATION
|-------- | -----------------



|ITEM 1. | LEGAL PROCEEDINGS
|------- | -----------------

We are from time to time a party
to other legal proceedings, which arise in the ordinary course of our business. We are not currently involved in any litigation the outcome of which would, in managements judgment based on information currently available, have a material
adverse effect on our results of operations or financial condition, nor is management aware of any such litigation threatened against us during the quarter ended September 30, 2006, requiring disclosure under Item 103 of Regulation S-K.



|ITEM 1A. | RISK FACTORS
|-------- | ------------

There have been no material changes
from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2005.



|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|------- | -----------------------------------------------------------



|(a) | We did not sell any equity securities that were not registered under the Securities Act of 1933 during the quarter ended September 30, 2006.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



|(c) | We did not redeem any securities during the quarter ended September 30, 2006.
|--- | -----------------------------------------------------------------------------



|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------



|(a) | We were not subject to any indebtedness and, therefore, did not default with respect to any indebtedness during the quarter ended September 30, 2006.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



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

No matters were submitted to a vote of our limited partners during the quarter ended September 30, 2006.



|ITEM 5. | OTHER INFORMATION
|------- | -----------------



|(a) | During the quarter ended September 30, 2006, there was no information required to be disclosed in a report on Form 8-K which was not disclosed in a report
on Form 8-K.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(b) | Not applicable.
|--- | ---------------



|ITEM 6. | EXHIBITS
|------- | --------

The Exhibits to this report are set forth
on Exhibit Index to Third Quarter Form 10-Q attached hereto.



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SIGNATURES

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



|                  |  |  |  |                                                                                                    |  |                            
|----------------- |  |  |  | -------------------------------------------------------------------------------------------------- |  | ---------------------------
|                  |  |  |  | WELLS REAL ESTATE FUND VI, L.P. (Registrant)                                                      
|                  |  |  | 
|                  |  |  |  | By:                                                                                                |  | WELLS PARTNERS, L.P.       
|                  |  |  |  |                                                                                                    |  | (General Partner)          
|                  |  |  | 
|                  |  |  |  | By:                                                                                                |  | WELLS CAPITAL, INC.        
|                  |  |  |  |                                                                                                    |  | (Corporate General Partner)
|                  |  | 
|November 13, 2006 |  |  |  | /s/    LEO F. WELLS,
III                                                                          
|                  |  |  |  | Leo F. Wells, III President, Principal Executive Officer, and Sole Director of Wells Capital, Inc.
|                  |  | 
|November 13, 2006 |  |  |  | /s/    DOUGLAS P.
WILLIAMS                                                                        
|                  |  |  |  | Douglas P. Williams Principal Financial Officer of Wells Capital, Inc.                            



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WELLS REAL ESTATE FUND VI, L.P.



EXHIBIT INDEX

TO THIRD QUARTER FORM 10-Q

OF

WELLS REAL ESTATE FUND VI, L.P.



|            |  |                                                                                                                               
|----------- |  | ------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                   
|31.1        |  | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|31.2        |  | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                        
|            | 
|32.1        |  | Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002