FORM 10-Q


                    SECURITIES AND EXCHANGE COMMISSION
                          Washington D.C.   20549




                Quarterly Report Under Section 13 or 15(d)
                  of the Securities Exchange Act of 1934




For the quarter ended June 30, 2004              Commission file #0-16976




                         ARVIDA/JMB PARTNERS, L.P.
          (Exact name of registrant as specified in its charter)



                Delaware                         36-3507015
      (State of organization)           (IRS Employer Identification No.)



  900 N. Michigan Avenue., Chicago, IL             60611
 (Address of principal executive office)          (Zip Code)




Registrant's telephone number, including area code 312/440-4800




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 (the "Exchange Act") during the preceding 12 months (or for such a
shorter period that 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 an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).  Yes [   ]   No [ X ]



<PAGE>


                             TABLE OF CONTENTS




PART I     FINANCIAL INFORMATION


Item 1.    Financial Statements. . . . . . . . . . . . . . . . .     3


Item 2.    Management's Discussion and Analysis of
           Financial Condition and Results of
           Operations. . . . . . . . . . . . . . . . . . . . . .    18

Item 4.    Controls and Procedures . . . . . . . . . . . . . . .    21



PART II    OTHER INFORMATION


Item 1.    Legal Proceedings . . . . . . . . . . . . . . . . . .    22

Item 6.    Exhibits and Reports on Form 8-K. . . . . . . . . . .    27



<PAGE>


PART I.  FINANCIAL INFORMATION

     ITEM 1.  FINANCIAL STATEMENTS


                         ARVIDA/JMB PARTNERS, L.P.
                          (A LIMITED PARTNERSHIP)
                         AND CONSOLIDATED VENTURES

                        CONSOLIDATED BALANCE SHEETS




                                  ASSETS
                                  ------

                                               JUNE 30,      DECEMBER 31,
                                                2004            2003
                                             (Unaudited)     (See Note)
                                            -------------    ------------

Cash and cash equivalents. . . . . . . . .   $ 54,388,634    $ 65,450,117
Restricted cash. . . . . . . . . . . . . .      1,031,333       1,126,317
Trade and other accounts receivable. . . .          --            295,469
Property and equipment, net. . . . . . . .        136,616         144,916
Investments in and advances to
  joint ventures, net. . . . . . . . . . .        165,417         182,437
Amounts due from affiliates, net . . . . .          --            308,613
Prepaid expenses and other assets. . . . .        136,217         236,704
                                             ------------    ------------

          Total assets . . . . . . . . . .   $ 55,858,217    $ 67,744,573
                                             ============    ============



<PAGE>


                         ARVIDA/JMB PARTNERS, L.P.
                          (A LIMITED PARTNERSHIP)
                         AND CONSOLIDATED VENTURES

                  CONSOLIDATED BALANCE SHEETS (CONTINUED)



                LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS
                ------------------------------------------

                                               JUNE 30,      DECEMBER 31,
                                                2004            2003
                                             (Unaudited)     (See Note)
                                            -------------    ------------
Liabilities:
  Accounts payable . . . . . . . . . . . .   $     21,352    $     27,265
  Accrued expenses and other
    liabilities. . . . . . . . . . . . . .      6,341,127      17,242,147
  Amounts due to affiliates, net . . . . .        130,480           --
                                             ------------    ------------

  Commitments and contingencies

          Total liabilities. . . . . . . .      6,492,959      17,269,412
                                             ------------    ------------

Partners' capital accounts:
  General Partner and
   Associate Limited Partners:
    Capital contributions. . . . . . . . .         20,000          20,000
    Cumulative net income. . . . . . . . .    103,546,229     103,568,427
    Cumulative cash distributions. . . . .    (97,244,327)    (97,244,327)
                                             ------------    ------------
                                                6,321,902       6,344,100
                                             ------------    ------------
  Limited Partners:
    Capital contributions,
      net of offering costs. . . . . . . .    364,841,815     364,841,815
    Cumulative net income. . . . . . . . .    378,152,578     379,240,283
    Cumulative cash distributions. . . . .   (699,951,037)   (699,951,037)
                                             ------------    ------------
                                               43,043,356      44,131,061
                                             ------------    ------------
          Total partners' capital
            accounts . . . . . . . . . . .     49,365,258      50,475,161
                                             ------------    ------------

          Total liabilities and
            partners' capital. . . . . . .   $ 55,858,217    $ 67,744,573
                                             ============    ============


NOTE: The consolidated balance sheet at December 31, 2003 has been derived
from the audited consolidated financial statements at that date but does
not include all of the information and footnotes required by accounting
principles generally accepted in the United States for complete financial
statements.









                The accompanying notes are an integral part
                of these consolidated financial statements.


<PAGE>


<table>
                                             ARVIDA/JMB PARTNERS, L.P.
                                              (A LIMITED PARTNERSHIP)
                                             AND CONSOLIDATED VENTURES

                                       CONSOLIDATED STATEMENTS OF OPERATIONS

                                 THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                                    (UNAUDITED)

<caption>
                                                         THREE MONTHS ENDED              SIX MONTHS ENDED
                                                               JUNE 30                        JUNE 30
                                                      --------------------------    --------------------------
                                                          2004           2003           2004           2003
                                                      -----------    -----------    -----------    -----------

                                                   <c>            <c>            <c>            <c>
Revenues:
  Housing. . . . . . . . . . . . . . . . . . . . .    $     --       $11,737,627    $    --        $23,417,982
  Brokerage and other operations . . . . . . . . .         14,298        222,716        145,082        438,157
                                                      -----------    -----------    -----------    -----------
      Total revenues . . . . . . . . . . . . . . .         14,298     11,960,343        145,082     23,856,139
                                                      -----------    -----------    -----------    -----------
Cost of revenues:
  Housing. . . . . . . . . . . . . . . . . . . . .          --        10,943,620          --        21,614,839
  Operating properties . . . . . . . . . . . . . .          --             --             --            16,929
  Brokerage and other operations . . . . . . . . .         15,568        123,591         39,554        315,626
                                                      -----------    -----------    -----------    -----------
      Total cost of revenues . . . . . . . . . . .         15,568     11,067,211         39,554     21,947,394
                                                      -----------    -----------    -----------    -----------
Gross operating (loss) profit. . . . . . . . . . .         (1,270)       893,132        105,528      1,908,745
Selling, general and administrative expenses . . .       (555,352)    (1,997,338)    (1,346,681)    (4,191,948)
                                                      -----------    -----------    -----------    -----------
      Net operating loss . . . . . . . . . . . . .       (556,622)    (1,104,206)    (1,241,153)    (2,283,203)

Interest income. . . . . . . . . . . . . . . . . .         99,527        193,766        180,490        420,883
Equity in (losses) gains of unconsolidated
  ventures . . . . . . . . . . . . . . . . . . . .        (15,091)        16,929        (28,526)        (2,706)
Interest and real estate taxes, net of
  amounts capitalized. . . . . . . . . . . . . . .        (10,660)       215,507        (20,714)       215,262
                                                      -----------    -----------    -----------    -----------
      Loss from continuing operations. . . . . . .       (482,846)      (678,004)    (1,109,903)    (1,649,764)

Discontinued Operations:
  Net income from assets held for sale . . . . . .          --            36,410          --           353,491
  Gain on sale of assets held for sale . . . . . .          --            64,091          --         1,542,099
                                                      -----------    -----------    -----------    -----------
      Net (loss) income. . . . . . . . . . . . . .    $  (482,846)   $  (577,503)   $(1,109,903)   $   245,826
                                                      ===========    ===========    ===========    ===========



<PAGE>


                                             ARVIDA/JMB PARTNERS, L.P.
                                              (A LIMITED PARTNERSHIP)
                                             AND CONSOLIDATED VENTURES

                                 CONSOLIDATED STATEMENTS OF OPERATIONS - CONTINUED

                                 THREE AND SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                                    (UNAUDITED)


                                                         THREE MONTHS ENDED              SIX MONTHS ENDED
                                                               JUNE 30                        JUNE 30
                                                      --------------------------    --------------------------
                                                          2004           2003           2004           2003
                                                      -----------    -----------    -----------    -----------

      Net loss before discontinued operations
        per Limited Partnership Interest . . . . .    $     (1.17)   $     (1.66)   $     (2.69)   $     (4.04)
      Discontinued operations per Limited
        Partnership Interest . . . . . . . . . . .          --               .24          --              4.64
                                                      -----------    -----------    -----------    -----------
      Net (loss) income per Limited
        Partnership Interest . . . . . . . . . . .    $     (1.17)   $     (1.42)   $     (2.69)   $       .60
                                                      ===========    ===========    ===========    ===========
      Cash distributions per
        Limited Partnership Interest . . . . . . .    $     --       $     --       $     --       $     50.00
                                                      ===========    ===========    ===========    ===========





















<fn>
              The accompanying notes are an integral part of these consolidated financial statements.
</table>


<PAGE>


                         ARVIDA/JMB PARTNERS, L.P.
                          (A LIMITED PARTNERSHIP)
                         AND CONSOLIDATED VENTURES

                   CONSOLIDATED STATEMENTS OF CASH FLOWS

                  SIX MONTHS ENDED JUNE 30, 2004 AND 2003
                                (UNAUDITED)

                                                 2004            2003
                                             ------------    ------------
Net loss from continuing operations. . . .   $ (1,109,903)   $ (1,649,764)
Charges (credits) to net loss
 from continuing operations not
 requiring (providing) cash:
  Depreciation . . . . . . . . . . . . . .          8,300         415,658
  Equity in losses of unconsolidated
    ventures . . . . . . . . . . . . . . .         28,526           2,706
Changes in:
  Restricted cash. . . . . . . . . . . . .         94,984       1,868,621
  Trade and other accounts receivable. . .        295,469         416,697
  Real estate inventories:
    Additions to real estate
      inventories. . . . . . . . . . . . .          --        (12,869,211)
    Cost of sales. . . . . . . . . . . . .          --         21,056,583
    Capitalized interest . . . . . . . . .          --            (84,676)
  Amounts due to/from affiliates, net. . .        439,093          40,520
  Prepaid expenses and other assets. . . .        100,487       1,387,341
  Accounts payable, accrued expenses
    and other liabilities. . . . . . . . .    (10,485,439)     (5,880,326)
  Deposits and unearned income . . . . . .          --         (2,472,029)
                                             ------------    ------------
          Net cash (used in)
            provided by operating
            activities of continuing
            operations . . . . . . . . . .    (10,628,483)      2,232,120
                                             ------------    ------------
Investing activities:
  Joint venture distributions. . . . . . .         17,000          37,386
                                             ------------    ------------
          Net cash provided by
            investing activities of
            continuing operations. . . . .         17,000          37,386
                                             ------------    ------------
Financing activities:
  Distributions to General Partner
    and Associate Limited Partners . . . .       (450,000)     (2,244,444)
  Distributions to Limited Partners. . . .          --        (20,200,000)
                                             ------------    ------------
          Net cash used in
            financing activities of
            continuing operations. . . . .       (450,000)    (22,444,444)
                                             ------------    ------------
Net cash provided by
  discontinued operations. . . . . . . . .          --         20,495,805
                                             ------------    ------------
(Decrease) increase in Cash and
  cash equivalents . . . . . . . . . . . .    (11,061,483)        320,867
Cash and cash equivalents,
  beginning of period. . . . . . . . . . .     65,450,117      88,968,513
                                             ------------    ------------
Cash and cash equivalents,
  end of period. . . . . . . . . . . . . .   $ 54,388,634    $ 89,289,380
                                             ============    ============



                The accompanying notes are an integral part
                of these consolidated financial statements.


<PAGE>


                         ARVIDA/JMB PARTNERS, L.P.
                          (A LIMITED PARTNERSHIP)
                         AND CONSOLIDATED VENTURES

                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               JUNE 30, 2004
                                (UNAUDITED)



     Readers of this quarterly report should refer to the Partnership's
audited financial statements for the fiscal year ended December 31, 2003,
which are included in the Partnership's 2003 Annual Report on Form 10-K
(File No. 0-16976) filed on March 30, 2004, as certain footnote disclosures
which would substantially duplicate those contained in such audited
financial statements, and which are required by accounting principles
generally accepted in the United States for complete financial statements,
have been omitted from this report.  Capitalized terms used but not defined
in this quarterly report have the same meanings as in the Partnership's
2003 Annual Report.


GENERAL

     In the opinion of the General Partner, all adjustments (consisting
solely of normal recurring adjustments) necessary for a fair presentation
have been made to the accompanying consolidated financial statements as of
June 30, 2004 and December 31, 2003 and for the three and six months ended
June 30, 2004 and 2003.  The results of operations for the three and six
month periods ended June 30, 2004 are not necessarily indicative of the
results to be expected for the fiscal year ending December 31, 2004.

     In May 2003, the Financial Accounting Standards Board ("FASB") issued
Statement of Accounting Standards No. 150, Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity
("FAS 150").  FAS 150 affects the accounting for certain financial
instruments, including requiring companies having consolidated entities
with specified termination dates to treat minority owner's interests in
such entities as liabilities in an amount based on the fair value of the
entities.  Although FAS 150 was originally effective July 1, 2003, the FASB
has indefinitely deferred certain provisions related to classification and
measurement requirements for mandatorily redeemable financial instruments
that become subject to FAS 150 solely as a result of consolidation.  The
Partnership has no financial instruments that are affected by FAS 150.

     In December 2003, the FASB issued Interpretation No. 46(R) ("FIN
46R"), Consolidation of Variable Interest Entities, to replace
Interpretation No. 46 ("FIN 46") which was issued in January 2003.  FIN 46R
addresses how a business enterprise should evaluate whether it has a
controlling financial interest in an entity through means other than voting
rights and whether it should consolidate the entity.  FIN 46R is applicable
immediately to variable interest entities created after January 31, 2003
and as of the first interim period ending after March 15, 2004 to those
created before February 1, 2003 and not already consolidated under FIN 46
in previously issued financial statements.  The Partnership did not create
any variable interest entities after January 31, 2003.  The Partnership has
adopted FIN 46R, analyzed the applicability of this interpretation to its
structures, and determined that the Partnership is not a party to any
variable interest entities that should be consolidated.




<PAGE>


     Warranty Reserves

     In the normal course of business, the Partnership will incur warranty
related costs associated with homes which have previously closed.  Warranty
reserves are established by charging cost of sales and recognizing a
liability for the estimated warranty costs for each home that is closed.
The Partnership monitors this reserve on a quarterly basis by evaluating
the historical warranty experience and the reserve is adjusted as
appropriate for current quantitative and qualitative factors.  Actual
future warranty costs could differ from the currently estimated amounts.

     For the six months ended June 30, 2004 and 2003, changes in the
warranty accrual consisted of the following:

                                              2004              2003
                                          -----------       -----------
Accrued warranty costs,
  January 1. . . . . . . . . . . . .      $ 1,569,000       $ 2,162,000
Estimated liability recorded . . . .            --            1,928,000
Payments made. . . . . . . . . . . .         (563,000)       (1,724,000)
                                          -----------       -----------
Accrued warranty costs,
  June 30. . . . . . . . . . . . . .      $ 1,006,000       $ 2,366,000
                                          ===========       ===========

     Accrued warranty costs are included in Accrued expenses and other
liabilities on the accompanying consolidated balance sheets.

     Obligations Under Sale Agreements

     In connection with the sale of The Shoppes of Town Center (the
"Shoppes") in Weston on February 7, 2003, certain consolidated entities of
the Partnership undertook certain indemnity obligations to the purchaser or
its lender.  In general, these obligations relate to indemnification
against loss, costs or expenses arising out of a breach of representation
or warranty, possible claims of tenants, certain rent obligations,
restrictions on the leasing or use of the property, litigation relating to
the property, claims occurring or accruing prior to the closing and certain
other usual and customary matters.  Some of these indemnity obligations
terminate as to claims made after the first anniversary date of the sale
while other of these indemnity obligations have no specified termination.
In accordance with such indemnification, the seller deposited $100,000 and
the buyer deposited $50,000 in escrow to secure the obligation to indemnify
the buyer's lender for such claims.  The Partnership received $50,000 of
the $100,000 noted above during 2003.  The seller also deposited $50,000 in
escrow as security for completion of remediation work for compliance with
the Americans with Disabilities Act.  The remediation work has been
completed, and the Partnership anticipates the release of this deposit
shortly.  Release to the seller of its remaining amount held in escrow may
depend upon the resolution of certain disputes involving the buyer and a
tenant at the Shoppes, and there is no assurance as to when, or whether,
such amount will be released to the seller.  Due to the different
circumstances that could cause the indemnity obligations to arise, the
Partnership is not able to estimate the maximum potential amount of these
indemnity obligations, although the Partnership currently does not believe
that individually or collectively these indemnity obligations will have a
material adverse effect on its financial condition.  The Partnership has no
liability recorded at June 30, 2004.




<PAGE>


     In connection with the sale of the Weston Hills Country Club (the
"Country Club") on October 1, 2002, certain consolidated entities of the
Partnership (i) made certain representations, warranties and covenants for
the benefit of the purchaser concerning the sellers and the Country Club
and its business and operations and (ii) agreed to indemnify the purchaser
against third party claims or causes of actions in connection with the
sellers' ownership or operation of the Country Club and occurring or
accruing prior to the closing as well as against certain other usual and
customary matters.  In general, the representations, warranties and
covenants survived for one year from the date of closing while the
indemnity obligations have no express termination.  The maximum potential
amount of these obligations is generally $1,000,000.  In accordance with
the sale and purchase agreement, $1,000,000 of the sale price was placed in
escrow to pay possible claims or demands of the purchaser arising from the
sale during the one-year period after the sale.  The Partnership received
the $1,000,000 in escrowed funds during December 2003.

     Indemnification of Certain Persons

     Under certain circumstances, the Partnership indemnifies the General
Partner and certain other persons performing services on behalf of the
Partnership for liability they may incur arising out of the indemnified
persons' activities conducted on behalf of the Partnership.  There is no
limitation on the maximum potential payments under these indemnification
obligations, and, due to the number and variety of events and circumstances
under which these indemnification obligations could arise, the Partnership
is not able to estimate such maximum potential payments.  However,
historically the Partnership has not made payments in material amounts
under such indemnification obligations, and no amount has been accrued in
the accompanying consolidated financial statements for these
indemnification obligations of the Partnership.

     Discontinued Operations

     Effective January 1, 2002, the Partnership adopted SFAS No. 144
Accounting for the Impairment or Disposal of Long-Lived Assets.  SFAS No.
144 requires that long-lived assets that are to be disposed of by sale be
measured at the lower of book value or fair value less cost to sell.
Additionally, SFAS No. 144 expands the scope of discontinued operations to
include all components of an entity with operations that (1) can be
distinguished from the rest of the entity and (2) will be eliminated from
the ongoing operations of the entity in a disposal transaction.
Accordingly, operations of the Shoppes, the Country Club, the AOK Group,
which owned an approximate 46 acre parcel (the "Ocala Parcel") near Ocala,
Florida, Waterways II, an approximate 4.6 acre parcel in Weston (the
"Waterways II Parcel") on which a shopping center containing approximately
31,300 square feet of rentable space was being constructed, commercial
office units in Weston and certain land parcels, which met the criteria for
assets held for sale, have been accounted for as net income from operations
of assets held for sale, and the results of operations for those assets
have been excluded from continuing operations in the consolidated
statements of operations for all periods presented.  As of June 30, 2004,
all assets previously classified as assets held for sale have been sold.

     Capitalized Interest and Real Estate Taxes

     Interest, including the amortization of loan fees, of $0 and $84,676
was incurred for the six months ended June 30, 2004 and 2003, respectively,
all of which was capitalized.  Interest payments, including amounts
capitalized, of $0 and $47,011 were made during the six months ended June
30, 2004 and 2003, respectively.  The decrease in interest incurred and
paid during the six month period ending June 30, 2004 compared to the same
period in 2003 is due to the payment in February 2003 of the outstanding
principal balance on the mortgage loan secured by the Shoppes.



<PAGE>


     Real estate taxes of $20,714 and a net real estate tax credit of
$215,262 were incurred for the six months ended June 30, 2004 and 2003,
respectively.  No real estate taxes were capitalized during either period.
Real estate tax payments of $20,469 and $56,074 were made during the six
months ended June 30, 2004 and 2003, respectively.  In addition, real
estate tax reimbursements totaling $2,875 and $279,397 were received from
the Partnership's escrow agent during the six months ended June 30, 2004
and 2003, respectively.  Real estate taxes of $10,660 and a net real estate
tax credit of $236,300 were incurred for the three months ended June 30,
2004 and 2003.  During the three months ended March 31, 2003, $20,793 was
capitalized and subsequently adjusted due to a tax credit received in the
second quarter of 2003.  Real estate tax payments of $20,469 and $35,519
were made during the three months ended June 30, 2004 and 2003,
respectively.  In addition, real estate tax reimbursements totaling $1,736
and $6,501 were received from the Partnership's escrow agent during the
three months ended June 30, 2004 and 2003, respectively.  The preceding
analysis of real estate taxes does not include real estate taxes incurred
or paid with respect to the Partnership's club facilities and other
operating properties as these taxes are included in Net income from assets
held for sale as described in Discontinued Operations.

     Property and Equipment and Other Assets

     At December 31, 2003, the Partnership recorded an asset impairment of
approximately $524,000 to the carrying value of the remaining furniture and
equipment at its corporate office in Boca Raton.  This loss was determined
based upon an analysis by an unaffiliated appraiser and recorded based upon
the difference between the carrying value of the assets as compared to
their appraised fair value.

     Depreciation expense of $8,300 and $415,658 was recorded for the six
months ended June 30, 2004 and 2003, respectively.  There was no
amortization of loan fees recorded for the six months ended June 30, 2004
and 2003.  Depreciation expense of $4,025 and $130,057 was recorded for the
three months ended June 30, 2004 and 2003, respectively.  There was no
amortization of loan fees recorded for the three months ended June 30, 2004
and 2003.  The decrease in depreciation expense incurred during the six
month period ending June 30, 2004 as compared to the same period in 2003 is
due to the continued orderly liquidation of the remaining Partnership
assets and the impairment noted in the preceding paragraph.

     Partnership Distributions

     During February 2003, the Partnership made a distribution of
$20,200,000 to its Holders of Interest ($50.00 per Interest) and $2,244,444
to the General Partner and Associate Limited Partners, collectively.

     Reclassifications

     Certain reclassifications have been made to the 2003 financial
statements to conform to the 2004 presentation.

     Use of Estimates

     The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to
make estimates and assumptions that affect the amounts reported or
disclosed in the financial statements and accompanying notes.  Actual
results could differ from those estimates.

RESTRICTED CASH

     Restricted cash are amounts restricted under escrow agreements, and
cash which collateralizes both letters of credit and outstanding
performance bonds.



<PAGE>


NOTES AND MORTGAGES PAYABLE

     In May 2000, the Partnership closed on a $20 million loan with First
Union National Bank for the development and construction of the Shoppes, a
mixed use retail/office plaza consisting of approximately 158,000 net
leasable square feet.  Interest on the loan (as modified effective May 31,
2001 and further modified effective December 31, 2001) was based on the
relevant LIBOR rate plus 1.8% per annum.  Monthly payments of interest only
were required during the first twenty-five months of the loan.  On July 1,
2002, the maturity date for the loan was extended for eleven months and
monthly payments of principal and interest were due based upon a 25-year
loan amortization schedule and an assumed interest rate based on the ten-
year treasury bond rate plus 2.5% per annum.  The outstanding principal
balance and accrued and unpaid interest of approximately $13,848,000 were
paid in February 2003 out of the proceeds from the sale of the Shoppes.

TRANSACTIONS WITH AFFILIATES

     The Partnership, subject to certain limitations, may engage affiliates
of the General Partner for insurance brokerage and certain other
administrative services to be performed in connection with the
administration of the Partnership and its assets.  The total of such costs
for the six months ended June 30, 2004 was approximately $2,000 all of
which was paid as of August 1, 2004.  The total of such costs for the six
months ended June 30, 2003 was approximately $86,600.  In addition, the
General Partner and its affiliates are entitled to reimbursements for
salaries and salary-related costs relating to the administration of the
Partnership and the operation of the Partnership's properties.  Such costs
were approximately $104,800 and $244,100 for the six months ended June 30,
2004 and 2003, respectively, all of which were paid as of August 1, 2004.

     The Partnership receives reimbursements from or reimburses other
affiliates of the General Partner engaged in real estate activities for
certain general and administrative costs including, and without limitation,
salaries and salary-related costs relating to work performed by employees
of the Partnership and certain out-of-pocket expenditures incurred on
behalf of such affiliates.  For the six month period ended June 30, 2004,
there were no such costs incurred by the Partnership.  At June 30, 2003,
the amount of such costs incurred by the Partnership on behalf of these
affiliates totaled approximately $43,300.

     For the six month periods ended June 30, 2004 and 2003, the
Partnership reimbursed St. Joe/Arvida Company, L.P. ("St. Joe/Arvida") or
its affiliates approximately $2,312,000 and $5,186,000, respectively, for
the services provided to the Partnership by St. Joe/Arvida pursuant to a
sub-management agreement for development and management supervisory and
advisory services (and personnel with respect thereto).  At June 30, 2004,
the Partnership owed St. Joe/Arvida approximately $130,500 for services
provided pursuant to this agreement, all of which was paid as of August 1,
2004.  The Partnership also receives reimbursement from St. Joe/Arvida and
its affiliates for certain general and administrative costs including, and
without limitation, salaries and salary-related costs relating to work
performed by employees of the Partnership on behalf of St. Joe/Arvida and
its affiliates.  For the six month periods ended June 30, 2004 and 2003,
the Partnership was entitled to reimbursement of such costs totaling
approximately $0 and $2,583,000, respectively, from St. Joe/Arvida and its
affiliates.

      In May 2004, Arvida/JMB Partners, which is a consolidated subsidiary
of the Partnership, made a $450,000 distribution to Arvida/JMB Managers,
Inc. ("Managers"), which is also the General Partner of the Partnership,
for previously deferred amounts distributable with respect to Managers's
..1% general partner interest in Arvida/JMB Partners.

     In February 2003, the General Partner and Associate Limited Partners,
collectively, received cash distributions in the aggregate amount of
$2,244,444.



<PAGE>


     All amounts receivable from or payable to the General Partner or its
affiliates do not bear interest and are expected to be paid in future
periods.

COMMITMENTS AND CONTINGENCIES

     As security for performance of certain development obligations, the
Partnership is contingently liable under letters of credit and performance
bonds for approximately $3,055,000 at June 30, 2004.  Also, the Partnership
is contingently liable under standby letters of credit, which are secured
by cash deposits, for approximately $931,000 for insurance and development
obligations.  The amount of cash deposits is included in restricted cash at
June 30, 2004.  In addition, a joint venture in which the Partnership holds
an interest is also contingently liable under bonds for approximately
$306,000 at June 30, 2004.

     On August 29, 2002, the Partnership entered into an agreement with St.
Joe/Arvida for the prospective assignment to and assumption by St.
Joe/Arvida of the Partnership's rights and obligations under the lease for
its offices (approximately 19,100 rentable square feet of space) in Boca
Raton, Florida.  The assignment and assumption of the lease was made
effective January 1, 2004.

     Rental expense of $91,900 and $546,500 was incurred for the six month
period ended June 30, 2004 and 2003, respectively.

     The Partnership was named a defendant in a number of homeowner
lawsuits, certain of which purported to be class actions, that allegedly in
part arose out of or related to Hurricane Andrew, which on August 24, 1992
resulted in damage to a former community development known as Country Walk.

     Other than the Juarez lawsuit discussed below, these lawsuits have
been settled, and United States Fire Insurance Company (whether acting on
its own behalf or for its affiliates, "U.S. Fire"), one of the
Partnership's insurance carriers that has paid for settlements of certain
of these lawsuits, has in some, but not all, instances, provided the
Partnership with written reservation of rights letters.  The aggregate
amount of the settlements funded by this carrier is approximately $10.1
million.  U.S. Fire has stated that it has funded these settlements
pursuant to various non-waiver agreements.  U.S Fire's position was that
these non-waiver agreements permitted the carrier to fund the settlements
without preventing it from raising insurance coverage issues or waiving
such coverage issues.  On May 23, 1995, U.S. Fire rescinded the various
non-waiver agreements in effect regarding certain of these lawsuits,
allegedly without waiving any future coverage defenses, conditions,
limitations, or rights.  For this and other reasons, the extent to which
U.S. Fire may recover any of its settlement payments or associated fees and
costs from the Partnership is uncertain.  The Partnership believes that a
material loss for the Partnership as a result of U.S. Fire's reservations
of rights and its funding of the settlement payments is remote, although
there is no assurance that the Partnership will not ultimately pay or
reimburse the insurance carrier for some portion of the settlement payments
or associated fees or costs.  The accompanying consolidated financial
statements do not reflect any accrual related to this matter.

     The Partnership is a defendant in an insurance subrogation matter.  On
or about May 10, 1996, a subrogation claim entitled Juarez v. Arvida
Corporation et al., Case No. 96-09372 CA13 was filed in the Circuit Court
of the Eleventh Judicial Circuit in and for Miami-Dade County, Florida.
Plaintiffs filed this suit for the use and benefit of American Reliance
Insurance Company ("American Reliance").  In this suit, plaintiffs seek to
recover damages, pre-and post-judgment interest, costs and any other relief
the court may deem just and proper in connection with $3,200,000 American
Reliance allegedly paid on specified claims at Country Walk in the wake of
Hurricane Andrew.  The Walt Disney Company (n/k/a Disney Enterprises, Inc.,
"Disney") is also a defendant in this suit.  The Partnership filed a motion
to dismiss this action that has been pending since 1996.  The Partnership
is advised that the amount of this claim (including prejudgment interest)


<PAGE>


that allegedly relates to units it sold is a range of approximately
$360,000 to $800,000.  The Partnership is being defended by U.S. Fire.  The
Partnership believes that a material loss for the Partnership as a result
of this lawsuit is remote.  The accompanying consolidated financial
statements do not reflect any accruals related to this matter.

     The Partnership was named a defendant in a purported class action
entitled Lakes of the Meadow Village Homes Condominium Nos. One, Two,
Three, Four, Five, Six, Seven, Eight and Nine Maintenance Associations,
Inc., v. Arvida/JMB Partners, L.P. and Walt Disney World Company, Case No.
95-23003-CA-08, filed in the Circuit Court of the Eleventh Judicial Circuit
in and for Miami-Dade County, Florida.  The original complaint was filed on
or about November 27, 1995 and an amended complaint, which purported to be
a class action, was filed on or about February 28, 1997.  In the amended
complaint, plaintiffs sought unspecified damages, attorneys' fees and
costs, recission of specified releases, and all other relief that
plaintiffs might be entitled to at equity or at law on behalf of the 460
building units they allegedly represented for, among other things, alleged
damages discovered in the course of making Hurricane Andrew repairs.
Plaintiffs alleged that Walt Disney World Company was responsible for
liabilities that might arise in connection with approximately 80% of the
buildings at the Lakes of the Meadow Village Homes and that the Partnership
was potentially liable for the approximately 20% remaining amount of the
buildings.  In the three count amended complaint, plaintiffs alleged breach
of building codes and breach of implied warranties.  In addition,
plaintiffs sought recission and cancellation of various general releases
obtained by the Partnership allegedly in the course of the turnover of the
Community to the residents.  Plaintiffs indicated that they might seek to
hold the Partnership responsible for the entire amount of alleged damages
owing as a result of the alleged deficiencies existing throughout the
entire development.  The Partnership tendered this matter to Disney
pursuant to the Partnership's indemnification rights and filed a third-
party complaint against it pursuant to the Partnership's rights of
contractual indemnity.  The Partnership also answered the amended complaint
and filed a cross-claim against Disney's affiliate, Walt Disney World
Company, for common law indemnity and contribution.  The Partnership
completed settlements in this case with the condominium associations and
their members during the second quarter of 2004, as discussed below.  The
Partnership was defended by counsel paid for by U.S. Fire as well as
additional counsel engaged by the Partnership.

     In a matter related to the Lakes of the Meadow development, the Miami-
Dade County Building Department ("Building Department") retained the
services of an engineering firm, All State Engineering, to inspect the
condominiums that are the subject of the lawsuit.  On February 27, 2002,
the Building Department apparently advised condominium owners throughout
the development that it found serious life-safety building code violations
in the original construction of the structures and on May 29, 2002, issued
notices of violation under the South Florida Building Code.  The
condominium owners were further advised that the notices of violation would
require affirmative action on their part to respond to the notices through
administrative proceedings and/or by addressing the alleged deficiencies.

     On August 8, 2002, the Partnership attended a mediation with
representatives of Lakes of the Meadow Village Homes Condominium Nos. One
through Seven and Nine Maintenance Associations (collectively, "Association
Nos. 1-7 and 9").  As a result of this and subsequent mediation sessions
and other discussions among the parties, and without admitting any
liability, the Partnership entered into an agreement with Association Nos.
1-7 and 9 and their members for a settlement that received preliminary
approval of the Court on February 12, 2004.  On April 30, 2004, the Court
gave its final approval of the settlement as fair, reasonable and adequate
and in the best interest of Association Nos. 1-7 and 9 and their members.
The Court's order giving its final approval was subject to the filing of an
appeal during the 30-day period following the entry of the order of
approval, and that 30-day period expired without an appeal being filed.
The settlement was completed in June 2004.  The settlement agreement
provides, among other things, for a release by Association Nos. 1-7 and 9
and their members of all manner of actions, claims, and damages arising out


<PAGE>


of or relating to the following:  the subject matters of the lawsuit; any
order of the Miami-Dade County, Florida Unsafe Structures Board relating to
the units in the condominiums of Association Nos. 1-7 and 9; any
remediation action undertaken in regard to those units; the failure of any
of Association Nos. 1-7 and 9 to undertake appropriate or timely
remediation; or the past, present or future governance of Association Nos.
1-7 and 9.  Each of Association Nos. 1-7 and 9, on behalf of itself and its
members, also entered into separate agreements indemnifying the Partnership
and its affiliates under certain circumstances against certain claims,
including claims released in the settlement, claims for subrogation and
claims of former condominium owners.  In addition, the Court dismissed the
claims of Association Nos. 1-7 and 9 and their members against the
Partnership, each side bearing its own fees and costs.  The Partnership
paid $5.5 million to Association Nos. 1-7 and 9 as part of the settlement.

     The Partnership continues to reserve its right to pursue claims for
indemnity or contribution against Disney or its affiliates in connection
with the condominium units that were constructed in whole or in part prior
to September 10, 1987 (the date that the Partnership acquired the assets of
Arvida Corporation from Disney) but were sold by the Partnership on or
after that date.  The Partnership's claims for indemnity and contribution
have been severed for separate proceedings and trial from the remaining
case-in-chief in the Lakes of the Meadow litigation.

     During 2001, the Partnership settled the claims brought in the lawsuit
by Lakes of the Meadow Village Homes Condominium No. Eight Maintenance
Association, Inc. ("Association No. 8") for a payment of $155,000 funded by
U.S. Fire.  Representatives of the Partnership discussed with
representatives of Association No. 8 issues raised by the Building
Department's notices of violations for that Association's condominium
units.  Association No. 8 submitted construction plans to address the
issues raised by the Building Department notices of violations and comments
received by the plan reviewers for that Association's units.  On
February 7, 2003, Association No. 8 received permits approving its plans
for most of its condominium units.  Association No. 8 asked the Partnership
to pay the cost to remediate the units in its condominium.  On March 9,
2004, the Partnership entered into a separate settlement agreement with
Association No. 8 and its members.  This settlement was completed in May
2004 with the Partnership paying $1,385,000 in exchange for a release of
all of the claims of Association No. 8 and its members.  Association No. 8,
on behalf of itself and its members, also entered into an agreement
indemnifying the Partnership and its affiliates under certain circumstances
against certain claims, including claims released in the settlement, claims
for subrogation and claims of former condominium owners.  In addition, the
Court entered an order dismissing the claims of Association No. 8 and its
members in the lawsuit, and the time for appealing that order has expired.
The Partnership intends to pursue claims for indemnity or contribution
against Disney or its affiliates in connection with the units in the
condominium of Association No. 8 that were constructed in whole or in part
prior to September 10, 1987 but were sold by the Partnership on or after
that date.  As noted above, these claims are now pending in Circuit Court
in Miami-Dade County under the same case number.  No discovery, cutoff or
trial date has been set for these claims.

     The Partnership applied the accounting rules concerning loss
contingencies in regard to the treatment of the Lakes of the Meadow
litigation for financial reporting purposes.

     The Partnership is seeking payment or reimbursement of the foregoing
settlement amounts from U.S. Fire, which issued a reservation of rights
letter with respect to the claims in the lawsuit against the Partnership,
and from the Partnership's excess insurance carrier, The Home Insurance
Company, which is subject to a liquidation proceeding.  The Partnership can
give no assurances as to the ultimate portion of the expenses, fees and
damages allegedly relating to the Lakes of the Meadow matter, if any, which
will be covered by its insurance.  Reference is made to Item 1, Legal
Proceedings, in Part II - Other Information elsewhere in this report for
further information concerning the Partnership's insurance and the Lakes of
the Meadow matter.


<PAGE>


     The Partnership, the General Partner and certain related parties as
well as other unrelated parties have been named defendants in an action
entitled Rothal v. Arvida/JMB Partners Ltd. et al, Case No. 03010709, filed
in the Circuit Court of the 17th Judicial Circuit in and for Broward
County, Florida.  In this suit that was filed on or about June 20, 2003,
plaintiff purports to bring a class action allegedly arising out of
construction defects occurring during the development of Camellia Island in
Weston, which has approximately 150 homes.  Plaintiff has filed a fourteen
count complaint seeking unspecified general damages, special damages,
statutory damages, prejudgment and post-judgment interest, costs,
attorneys' fees, and such other relief as the court may deem just and
proper.  Plaintiff complains, among other things, that the homes were not
built of high quality and adequate construction, that the homes were not
built in conformity with the South Florida Building Code and plans on file
with Broward County, Florida, that the roofs were not properly attached or
were inadequate, that the truss systems and installation were improper, and
that the homes suffer from improper shutter storm protection systems.  The
Partnership filed a motion to dismiss, which was denied.  The Partnership
has filed an answer and affirmative defenses to the complaint.  The Arvida
defendants believe that they have meritorious defenses and intend to
vigorously defend themselves.  Due to, among other things, the early stage
of the litigation, the Partnership is not able to determine what, if any,
loss exposure that it may have for this matter, and the accompanying
consolidated financial statements do not reflect any accruals related to
this matter.  This case has been tendered to one of the Partnership's
insurance carriers, Zurich American Insurance Company (together with its
affiliates collectively, "Zurich") for defense and indemnity.  Zurich is
providing a defense of this matter under a purported reservation of rights.

The Partnership has also engaged other counsel in connection with this
lawsuit.  The Partnership is unable to determine the ultimate portion of
the expenses, fees and damages, if any, which will be covered by its
insurance.

     The following three lawsuits in large part allegedly arise out of
landscaping issues at certain subdivisions in the Weston Community.  These
lawsuits are collectively referred to as the "landscape cases."

     The Partnership has been named a defendant in a lawsuit entitled, The
Ridges Maintenance Association, Inc. v. Arvida/JMB Partners, Arvida/JMB
Managers, Inc., Arvida Management Limited Partnership, and CCL Consultants,
Inc., Case No. 0310189 (the "Ridges Case"), filed on or about June 6, 2003
in the Circuit Court of the 17th Judicial Circuit in and for Broward
County, Florida.  Plaintiff is alleged to be a homeowners' association
representing the owners of approximately 1,500 homes and extensive common
areas in the Ridges subdivision in Weston.  In this six count complaint for
breach of implied warranty of merchantability, breach of implied warranty
of fitness, breach of express warranty, fraudulent misrepresentation and
concealment, negligent design, construction and/or maintenance and breach
of fiduciary duty, plaintiff seeks an unspecified dollar amount of
compensatory damages, interest, court costs and such other relief as the
court may deem just and proper.  Plaintiff alleges that it evaluated the
condition of the common areas after the turnover of the community in
January 2000 and discovered numerous construction, design and maintenance
defects and deficiencies including, but not limited to, improper planting
of inferior quality/grade of landscaping contrary to prevailing government
codes, shallow planting of landscaping, landscape planting in inappropriate
areas, and the planting of landscaping that would uproot sidewalks.
Plaintiff also alleges that prior to the turnover of the community, the
Arvida defendants engaged in a series of actions that amounted to a breach
of their fiduciary duties to plaintiff by, among other things, improperly


<PAGE>


failing to pay for all of the common expenses actually incurred prior to
turnover in excess of the assessment for common expenses and any other
funds including working capital, executing pre-turnover amendments to the
declarations of the association for the Arvida defendants' sole benefit and
to the financial detriment of the plaintiff, engaging in acts which
constituted a conflict of interest, and allegedly improperly transferring
funds by and between plaintiff and a non-party, The Town Foundation, Inc.,
which was also allegedly under the control of one or more of the Arvida
defendants, all in breach of defendants' alleged fiduciary duties.  The
Arvida defendants have filed a motion to dismiss or in the alternative for
a more definite statement that is pending for hearing.  The Arvida
defendants believe that they have meritorious defenses and intend to
vigorously defend themselves.

     The Partnership has been named a defendant in a case entitled The
Falls Maintenance Association, Inc. v. Arvida/JMB Partners, Arvida/JMB
Managers, Inc., CCL Consultants, Inc. and Stiles Corporation f/k/a Stiles
Landscape Service Co., Case No. 0302577 (the "Falls Maintenance Case"),
filed on or about February 10, 2003, in the 17th Judicial Circuit in and
for Broward County, Florida.  Plaintiff is alleged to be the homeowners'
association responsible for the maintenance, repair, and replacement of the
common areas within the Falls subdivision in Weston, which contains
approximately 600 homes.  Plaintiff complains that on turnover of the Falls
subdivision, it discovered numerous construction, design and maintenance
defects and deficiencies including, but not limited to, the quality/grade
of the landscaping, landscaping planted too shallow, landscaping planted
too deep, landscaping planted in narrow swale areas, landscaping planted in
shallow soil areas, poor fertility of road rock under locations where
landscaping is planted and poor maintenance.  Plaintiff has filed a six
count complaint with five counts against the Partnership for breach of
implied warranty of merchantability, breach of implied warranty of fitness,
breach of express warranty, fraudulent misrepresentation/concealment, and
negligent design, construction and/or maintenance.  Plaintiff seeks an
unspecified amount of compensatory damages, interest, costs, and such other
and further relief as is just and equitable.  The Partnership has filed an
answer to the complaint denying substantive liability and raising various
defenses.  The Arvida defendants believe that they have meritorious
defenses and intend to vigorously defend themselves.

     On October 22, 2003, a case entitled Weston Lakes Maintenance
Association v. Arvida/JMB Partners and Arvida/JMB Managers, Inc., Case No.
0318490, was filed in the Circuit Court of the Seventeenth Judicial Circuit
in and for Broward County, Florida Civil Division.  In the four-count
complaint, which was served on the Partnership in February 2004, plaintiff,
Weston Lakes Maintenance Association, alleges that defendants negligently
selected and installed inferior landscaping materials in the common areas
and elements of the Weston Lakes subdivision, which contains approximately
570 homes.  Plaintiff alleges that defendants' actions have caused higher
than expected maintenance fees and that the landscaping is causing injury
and damage to sidewalks and roadways that must be repaired or replaced.
Plaintiff alleges that an unspecified large sum of money will be required
to replace the alleged substandard landscaping and that significant expense
for remedial maintenance, repair and replacement of elements throughout the
community will be incurred.  The four-count complaint is for negligent
construction and design of landscaping allegedly based on a violation of a
Broward County ordinance regarding plant materials, common law negligence,
breach of implied warranty of fitness, and breach of implied warranty of
merchantability.  Plaintiff seeks a judgment in an unspecified amount and
type of damages, attorney's fees and such other relief as the court may
deem proper.  Defendants have filed a motion to dismiss that is scheduled
for hearing on August 18, 2004.  Defendants believe they have meritorious
defenses and intend to vigorously defend themselves.  The case is in its
preliminary stages.



<PAGE>


     Due to, among other things, the early stages of litigation, the
Partnership is not able to determine what, if any, loss exposure that it
may have for the landscape cases, and the accompanying consolidated
financial statements do not reflect any accruals related to the landscape
cases.  Each of the landscape cases has been tendered to Zurich for defense
and indemnity.  Zurich is providing a defense of each of the landscape
cases.  The Partnership has also engaged other counsel in connection with
the landscape cases.  Zurich has issued letters purporting to reserve its
rights in the Ridges and Falls Maintenance Cases.  The Partnership is
unable to determine the ultimate portion of the expenses, fees and damages
allegedly relating to the landscape cases, if any, which will be covered by
its insurance.

     The Partnership is also a defendant in several other actions brought
against it arising in the normal course of business.  It is the belief of
the General Partner, based on knowledge of facts and advice of counsel,
that the claims made against the Partnership in such actions will not
result in any material adverse effect on the Partnership's consolidated
financial position.



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     Reference is made to the notes to the accompanying consolidated
financial statements ("Notes") contained in this report for additional
information concerning the Partnership and its operations.

     This report, including this Management's Discussion and Analysis of
Financial Condition and Results of Operations, contains forward-looking
statements.  Words like "believes," "expects," "anticipates," "likely," and
similar expressions used in this report are intended to identify forward-
looking statements.  These forward-looking statements give the
Partnership's current estimates or expectations of future events,
circumstances or results, including statements concerning possible future
distributions and the amount of time and money that may be involved in
completing the liquidation, winding up and termination of the Partnership
and, if applicable, a Liquidating Trust as a successor to the Partnership.
Any forward-looking statements made in this report are based upon the
Partnership's understanding of facts and circumstances as they exist on the
date of this report, and therefore such statements speak only as of the
date of this report.  In addition, the forward-looking statements contained
in this report are subject to risks, uncertainties and other factors that
may cause the actual events or circumstances, or the results or
performances of the Partnership, to be materially different from those
estimated or expected, expressly or implicitly, in the forward-looking
statements.  In particular, but without limitation, the accuracy of
statements concerning possible future distributions to the Holders of
Interests or the timing or costs associated with completion of a
liquidation, winding up and termination may be adversely affected by, among
other things, various factors discussed below.

     Pending the completion of the liquidation, winding up and termination
of the Partnership (or if applicable, the Liquidating Trust), it is
anticipated that the Partnership (or the Liquidating Trust, as the case may
be) will retain a substantial amount of funds in reserve to provide for the
payment of, the defense against, or other satisfaction or resolution of
obligations, liabilities (including contingent liabilities) and current and
possible future claims, including those for possible construction repairs,
homeowner warranty claims, completion of work for certain homeowner
associations and master associations and pending and possible future
litigation and environmental matters.  The amount of funds to be retained


<PAGE>


in reserve for these purposes has not yet been determined.  However, the
Partnership intends to take a cautious approach in determining the amount
of funds to be retained in reserve since it is not possible to estimate
with preciseness the amount of time or money that it will take to effect
the Partnership's (and, if applicable, the Liquidating Trust's)
liquidation, winding up and termination.  The Partnership currently expects
that those available funds in excess of the amount determined to be held in
reserve would be distributed during 2004 and 2005 to the partners and
Holders of Interests.  That portion, if any, of the funds held in reserve
that are not ultimately used to pay, defend or otherwise resolve or satisfy
obligations, liabilities or claims would subsequently be distributed to the
partners and Holders of Interests as a final liquidating distribution at a
later date.

     Various factors may affect the timing of completing the liquidation,
winding up and termination of the Partnership (and, if applicable, the
Liquidating Trust) and the amount of distributions of funds.  These factors
include the time and expense to resolve all obligations, liabilities and
claims, including contingent liabilities and claims that are not yet
asserted but may be made in the future.  Among other things, additional or
unanticipated remedial construction or development costs, contingencies
(including, without limitation, contingencies relating to potential
homeowner warranty or other homeowner or homeowners' association claims),
delays in resolving pending or threatened litigation or other asserted
claims, delays in satisfying conditions or obligations under permits
obtained by the Partnership, including those for mitigation for the Weston
Increment III area, a delay in obtaining an acknowledgement from the City
of Weston of its responsibility for maintenance of the Weston Increment III
mitigation area, currently unasserted claims that arise in the future and
other factors could require increases in reserves and a reduction in future
distributions to Holders of Interests and could extend the time, and
significantly increase the cost, to complete the liquidation, winding up
and termination.

     At December 31, 2003, the Partnership recorded an asset impairment of
$523,721 to the carrying value of the furniture and equipment remaining at
its corporate office in Boca Raton, Florida.  This loss was determined
based upon an analysis by an unaffiliated appraiser and recorded based upon
the difference between the carrying value of the assets as compared to
their appraised fair value.

     On February 7, 2003, the Partnership through certain consolidated
entities, closed on the sale of The Shoppes of Town Center (the "Shoppes").

The gross sale price for the Shoppes was $34,330,000.  Net cash proceeds
received from the sale, after prorations, credits, closing costs, amounts
escrowed  and the settlement of the outstanding loan balance totaled
approximately $18,198,000.  The outstanding principal and interest on the
mortgage loan secured by the property was approximately $13,848,000.
Proceeds of the mortgage loan had been used to pay construction and
development costs for the Shoppes.  The net book value and net cash
proceeds received from the sale represented approximately 22% and 13%,
respectively, of the Partnership's total consolidated assets for financial
reporting purposes at December 31, 2002.  The sale resulted in a gain of
approximately $1,990,000 for financial reporting purposes and a gain of
approximately $2,460,000 for Federal income tax purposes.

     During February 2003, the Partnership made a distribution totaling
approximately $22,444,000, of which $20,200,000 was distributed to the
Holders of Interests ($50 per Interest), and approximately $2,244,000 was
distributed to the General Partner and Associate Limited Partners,
collectively.



<PAGE>


     At June 30, 2004 and December 31, 2003, the Partnership had
unrestricted Cash and cash equivalents of approximately $54,389,000 and
$65,450,000, respectively.  At July 31, 2004, the Partnership had
unrestricted Cash and cash equivalents of approximately $54,111,373.  Cash
and cash equivalents are available for remaining operations (including
warranty work), payment of liabilities, costs of winding up, reserves and
distributions to partners and Holders of Interests.  The source of both
short-term and long-term future liquidity generally is expected to be
derived from cash on hand since the Partnership has no continuing business
operations.  In addition, the Partnership believes that it has certain
rights of indemnification or contribution as well as insurance coverage for
certain claims that are or have been the subject of litigation, including
rights of indemnification or contribution and insurance coverage for the
settlement payments made in the Lakes of the Meadow litigation discussed
below.  These rights of indemnification or contribution and insurance
coverage may be an additional source of liquidity.

     In the first quarter of 2004 the Partnership entered into two separate
agreements to settle the claims made in litigation of certain Lakes of the
Meadow Village Homes condominium associations and their members for
aggregate payments of approximately $6.9 million.  The Partnership
completed one of these settlements in May 2004 for a payment of
approximately $1.4 million.  In June 2004, the Partnership completed the
other settlement for a payment of $5.5 million.  As part of these
settlements, the Partnership received releases from the condominium
associations and their members and indemnification under certain
circumstances against certain claims that could possibly be asserted in the
future.  The Partnership is seeking in the litigation to recover from The
Walt Disney Company or its affiliates at least a portion of the amounts
paid for these settlements.  The Partnership is also seeking to recover
from its insurance carriers the amounts the Partnership paid for the
settlements and has initiated a lawsuit against them for this purpose.
Reference is made to Item 1., Legal Proceedings, in Part II -- Other
Information elsewhere in this report for further information concerning the
Lakes of the Meadow litigation, the settlements and the Partnership's
insurance coverage.  There is no assurance regarding what amounts, if any,
will be recovered by the Partnership from The Walt Disney Company or its
affiliates or under the Partnership's policies of insurance.

     At December 31, 2003, the Partnership's largest remaining operating
lease was its lease of office space in Boca Raton, Florida.  Effective
January 1, 2004, the Partnership assigned its rights and obligations in the
office lease to St. Joe/Arvida.  The assignment reduced the Partnership's
contractual obligations by $335,700, (out of a total of $438,200) $707,000,
(out of a total of $736,100) and $403,300, (out of a total of $403,300)
during the periods of less than one year, one to three years and three to
five years, respectively.

RESULTS OF OPERATIONS

     The decrease in balance sheets components such as trade and other
accounts receivable and prepaid expenses and other assets at June 30, 2004
as compared to December 31, 2003 is attributable to the ongoing orderly
liquidation of the Partnership's assets as previously discussed.
Approximately $6,900,000 of the decrease in Accrued expenses and other
liabilities is due to the payment of the litigation settlements involving
the Lakes of the Meadow Village Homes Condominiums.  The remaining decrease
is primarily due to the payment of accrued bonus and incentive
compensation, a distribution from a consolidated subsidiary to Arvida/JMB
Managers, Inc. previously deferred in respect of its minority interest, and
warranty costs and other expenses relating to the Weston Community during
the six months ended June 30, 2004.



<PAGE>


     For the three and six months ended June 30, 2004, the Partnership
(including its consolidated and unconsolidated ventures) had no closings as
all housing units were closed as of June 30, 2003.  This compares to
closings in the second quarter of 2003 of 64 housing units in addition to
the remaining two commercial office building units, and a land parcel in
Weston (the "Town Center parcel").  The Partnership's remaining assets
include, in addition to its cash and cash equivalents, tangible personal
property including vehicles and furniture, fixtures and equipment used in
the Partnership's operations, and certain contract rights, including an
interest in a joint venture that owns a 2.5 acre parcel in Ocala, Florida.
The Partnership expects to sell all of its remaining tangible saleable
assets in 2004, although there is no assurance that this will occur.

     There were no housing revenues for the three and six months ended
June 30, 2004 as compared with $11,737,627 and $23,417,982 for the same
periods in 2003.  Revenues generated from the closing of the remaining
townhomes in the Partnership's Weston Community account for the housing
revenues recognized for the three and six months ended June 30, 2003.  The
gross operating profit margin for housing for the three and six months
ended June 30, 2003 was $794,007 and $1,803,143, respectively.

     The decrease in revenues from Brokerage and other operations for the
three and six months ended June 30, 2004 as compared to the same periods in
2003 is due to no brokerage commissions being earned from the Partnership's
mortgage brokerage operations in 2004.  The brokerage and other operations
revenue for the three and six months ended June 30, 2004 is due primarily
to the receipt of a payment for the release of a deed restriction.

     Selling, general and administrative expenses decreased for the three
and six months ended June 30, 2004 as compared to the same periods in 2003
due primarily to decreased support service costs and project administrative
costs resulting from the end of the Partnership's continuing business
operations.

     Interest income decreased during the three and six months ended
June 30, 2004 as compared to the same periods in 2003 due primarily to a
decrease in cash available for investment and the decline in interest rates
on invested funds.

     Net income from assets held for sale for the three and six months
ended June 30, 2003, was generated by the Shoppes prior to its sale in
February 2003.

     Gain on sale of assets held for sale during the six months ended
June 30, 2003 is due to gain from the sale of the Town Center parcel and
the Shoppes, partially offset by a loss on the sale of two commercial
office building units in Weston.


     ITEM 4. CONTROLS AND PROCEDURES

     Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-15 of
the Securities Exchange Act of 1934 (the "Exchange Act") promulgated
thereunder, the principal executive officer and the principal financial
officer of the Partnership have evaluated the effectiveness of the
Partnership's disclosure controls and procedures as of the end of the
period covered by this report.  Based on such evaluation, the principal
executive officer and the principal financial officer have concluded that
the Partnership's disclosure controls and procedures were effective as of
the end of the period covered by this report to ensure that information
required to be disclosed in this report was recorded, processed, summarized
and reported within the time period specified in the applicable rules and
form of the Securities and Exchange Commission for this report.




<PAGE>


PART II - OTHER INFORMATION

     ITEM 1.  LEGAL PROCEEDINGS

     The Partnership was named a defendant in a purported class action
entitled Lakes of the Meadow Village Homes Condominium Nos. One, Two,
Three, Four, Five, Six, Seven, Eight and Nine Maintenance Associations,
Inc., v. Arvida/JMB Partners, L.P. and Walt Disney World Company, Case No.
95-23003-CA-08, filed in the Circuit Court of the Eleventh Judicial Circuit
in and for Miami-Dade County, Florida.  The original complaint was filed on
or about November 27, 1995 and an amended complaint, which purported to be
a class action, was filed on or about February 28, 1997.  In the amended
complaint, plaintiffs sought unspecified damages, attorneys' fees and
costs, recission of specified releases, and all other relief that
plaintiffs might be entitled to at equity or at law on behalf of the 460
building units they allegedly represented for, among other things, alleged
damages discovered in the course of making Hurricane Andrew repairs.
Plaintiffs alleged that Walt Disney World Company was responsible for
liabilities that might arise in connection with approximately 80% of the
buildings at the Lakes of the Meadow Village Homes and that the Partnership
was potentially liable for the approximately 20% remaining amount of the
buildings.  In the three count amended complaint, plaintiffs alleged breach
of building codes and breach of implied warranties.  In addition,
plaintiffs sought recission and cancellation of various general releases
obtained by the Partnership allegedly in the course of the turnover of the
Community to the residents.  Plaintiffs indicated that they might seek to
hold the Partnership responsible for the entire amount of alleged damages
owing as a result of the alleged deficiencies existing throughout the
entire development.  The Partnership tendered this matter to The Walt
Disney Company (n/k/a Disney Enterprises, Inc., "Disney") pursuant to the
Partnership's indemnification rights and filed a third-party complaint
against it pursuant to the Partnership's rights of contractual indemnity.
The Partnership also answered the amended complaint and filed a cross-claim
against Disney's affiliate, Walt Disney World Company, for common law
indemnity and contribution.  The Partnership completed settlements in this
case with the condominium associations and their members during the second
quarter of 2004, as discussed below.  The Partnership was defended by
counsel paid for by U.S. Fire as well as additional counsel engaged by the
Partnership.

     In a matter related to the Lakes of the Meadow development, the Miami-
Dade County Building Department ("Building Department") retained the
services of an engineering firm, All State Engineering, to inspect the
condominiums that are the subject of the lawsuit.  On February 27, 2002,
the Building Department apparently advised condominium owners throughout
the development that it found serious life-safety building code violations
in the original construction of the structures and on May 29, 2002, issued
notices of violation under the South Florida Building Code.  The
condominium owners were further advised that the notices of violation would
require affirmative action on their part to respond to the notices through
administrative proceedings and/or by addressing the alleged deficiencies.

     On August 8, 2002, the Partnership attended a mediation with
representatives of Lakes of the Meadow Village Homes Condominium Nos. One
through Seven and Nine Maintenance Associations (collectively, "Association
Nos. 1-7 and 9").  As a result of this and subsequent mediation sessions
and other discussions among the parties, and without admitting any
liability, the Partnership entered into an agreement with Association Nos.
1-7 and 9 and their members for a settlement that received preliminary
approval of the Court on February 12, 2004.  On April 30, 2004, the Court
gave its final approval of the settlement as fair, reasonable and adequate
and in the best interest of Association Nos. 1-7 and 9 and their members.
The Court's order giving its final approval was subject to the filing of an
appeal during the 30-day period following the entry of the order of
approval, and that 30-day period expired without an appeal being filed.
The settlement was completed in June 2004.  The settlement agreement
provides, among other things, for a release by Association Nos. 1-7 and 9
and their members of all manner of actions, claims and damages arising out


<PAGE>


of or relating to the following:  the subject matters of the lawsuit; any
order of the Miami-Dade County, Florida Unsafe Structures Board relating to
the units in the condominiums of Association Nos. 1-7 and 9; any
remediation action undertaken in regard to those units; the failure of any
of Association Nos. 1-7 and 9 to undertake appropriate or timely
remediation; or the past, present or future governance of Association Nos.
1-7 and 9.  Each of Association Nos. 1-7 and 9, on behalf of itself and its
members, also entered into separate agreements indemnifying the Partnership
and its affiliates under certain circumstances against certain claims,
including claims released in the settlement, claims for subrogation and
claims of former condominium owners.  In addition, the Court dismissed the
claims of Association Nos. 1-7 and 9 and their members against the
Partnership, each side bearing its own fees and costs.  The Partnership
paid $5.5 million to Association Nos. 1-7 and 9 as part of the settlement.

     The Partnership continues to reserve its right to pursue claims for
indemnity or contribution against Disney or its affiliates in connection
with the condominium units that were constructed in whole or in part prior
to September 10, 1987 (the date that the Partnership acquired the assets of
Arvida Corporation from Disney) but were sold by the Partnership on or
after that date.  The Partnership's claims for indemnity and contribution
have been severed for separate proceedings and trial from the remaining
case-in-chief in the Lakes of the Meadow litigation.

     During 2001, the Partnership settled the claims brought in the lawsuit
by Lakes of the Meadow Village Homes Condominium No. Eight Maintenance
Association, Inc. ("Association No. 8") for a payment of $155,000 funded by
U.S. Fire.  Representatives of the Partnership discussed with
representatives of Association No. 8 issues raised by the Building
Department's notices of violations for that Association's condominium
units.  Association No. 8 submitted construction plans to address the
issues raised by the Building Department notices of violations and comments
received by the plan reviewers for that Association's units. On February 7,
2003, Association No. 8 received permits approving its plans for most of
its condominium units.  Association No. 8 asked the Partnership to pay the
cost to remediate the units in its condominium.  On March 9, 2004, the
Partnership entered into a separate settlement agreement with Association
No. 8 and its members.  This settlement was completed in May 2004 with the
Partnership paying $1,385,000 in exchange for a release of all of the
claims of Association No. 8 and its members.  Association No. 8, on behalf
of itself and its members, also entered into an agreement indemnifying the
Partnership and its affiliates under certain circumstances against certain
claims, including claims released in the settlement, claims for subrogation
and claims of former condominium owners.  In addition, the Court entered an
order dismissing the claims of Association No. 8 and its members in the
lawsuit, and the time for appealing that order has expired.  The
Partnership intends to pursue claims for indemnity or contribution against
Disney or its affiliates in connection with the units in the condominium of
Association No. 8 that were constructed in whole or in part prior to
September 10, 1987 but were sold by the Partnership on or after that date.
As noted above, these claims are now pending in Circuit Court in Miami-Dade
County under the same case number.  No discovery cutoff or trial date has
been set for these claims.

     The Partnership applied the accounting rules concerning loss
contingencies in regard to the treatment of the Lakes of the Meadow
litigation for financial reporting purposes.

     The Partnership is seeking payment or reimbursement of the foregoing
settlement amounts from U.S. Fire and an excess insurance carrier.  On
August 9, 2002, the Partnership received a reservation of rights letter
from U.S. Fire, by which it purports to limit its exposure with regard to
the Lakes of the Meadow matter and to reserve its rights to deny coverage
and/or defense under the policy and/or applicable law and with respect to
defense costs to be reimbursed and/or obtain an allocation of attorney's
fees and expenses if it is determined there is no coverage.



<PAGE>


     As a result of, among other things, this reservation of rights letter
on November 20, 2002, the Partnership filed a four count complaint,
Arvida/JMB Managers, Inc. on behalf of Arvida/JMB Partners, L.P. v. United
States Fire Insurance Company in the Circuit Court of Cook County,
Illinois, Chancery Division, 02CH21001, for declaratory relief and damages
("Illinois action").  In the complaint, the Partnership seeks, among other
things, a declaration that U.S. Fire is obligated to indemnify the
Partnership for the Lakes of the Meadow litigation including amounts
expended in connection with the complete resolution of the construction
issues for Association No. 8 (hereinafter, the "Lakes of the Meadow
Matter"); actual damages, including full indemnification for the Lakes of
the Meadow Matter; such other direct and consequential damages as are
proven at trial; prejudgment interest as permitted by law; and any other
legal and equitable relief that the court deems just and proper under the
circumstances.

     In a December 20, 2002 letter, the Partnership's excess insurance
carrier, The Home Insurance Company (the "Home"), and its agent, Risk
Enterprise Management Limited ("REM"), advised the Partnership of Home's
position that the Home policy provides coverage for the Lakes of the Meadow
Matter only in the event that the U.S. Fire policy provides coverage and
that U.S. Fire pays the limits under its policy.  Given Home's position,
the Partnership amended its Illinois action to add Home and REM as
defendants in order to obtain, among other things, a declaration that Home
is obligated to defend and indemnify the Partnership for the Lakes of the
Meadow Matter; actual damages; such other direct and consequential damages
as proven at trial; prejudgment interest; and any other legal and equitable
relief that the court deems just and proper under the circumstances.

     In a separate proceeding on March 5, 2003, a superior court judge for
the State of New Hampshire entered an order placing Home under an order of
rehabilitation in order to preserve and protect the interests and assets of
Home.  Subsequently, the court overseeing the rehabilitation issued an
order to liquidate Home.  The order provides, among other things, for the
appointment of a liquidator, the cancellation of all in-force contracts of
insurance, the securing of all of Home's assets, the abatement of all
actions and all proceedings against Home, whether pending in the State of
New Hampshire or elsewhere, and an injunction against the commencement or
continuance of actions against Home.  The Partnership is evaluating the
effect, if any, that this order may have on the continued prosecution of
the Illinois action as well as the existence of coverage provided by Home,
generally.  The Partnership has filed a proof of claim in the liquidation
proceeding in an attempt to preserve an opportunity to recover various
amounts under its policies with Home.  Given the pending liquidation, the
Partnership believes that it is doubtful that any substantial recoveries
from Home will be obtained.

     The Partnership strongly disagrees with the positions taken by U.S.
Fire and Home regarding coverage under the relevant insurance policies and
believes that it is covered under the terms of those policies.  However,
for reasons cited above, and others, the Partnership can give no assurances
as to the ultimate portion of the expenses, fees and settlement amounts
relating to the Lakes of the Meadow Matter, if any, which will be covered
by its insurance.

     The Partnership, the General Partner and certain related parties as
well as other unrelated parties have been named defendants in an action
entitled Rothal v. Arvida/JMB Partners Ltd. et al, Case No. 03010709, filed
in the Circuit Court of the 17th Judicial Circuit in and for Broward
County, Florida.  In this suit that was filed on or about June 20, 2003,
plaintiff purports to bring a class action allegedly arising out of
construction defects occurring during the development of Camellia Island in
Weston, which has approximately 150 homes.  Plaintiff has filed a fourteen
count complaint seeking unspecified general damages, special damages,
statutory damages, prejudgment and post-judgment interest, costs,
attorneys' fees, and such other relief as the court may deem just and
proper.  Plaintiff complains, among other things, that the homes were not
built of high quality and adequate construction, that the homes were not
built in conformity with the South Florida Building Code and plans on file


<PAGE>


with Broward County, Florida, that the roofs were not properly attached or
were inadequate, that the truss systems and installation were improper, and
that the homes suffer from improper shutter storm protection systems.  The
Partnership filed a motion to dismiss, which was denied.  The Partnership
has filed an answer and affirmative defenses to the complaint.  The Arvida
defendants believe that they have meritorious defenses and intend to
vigorously defend themselves.  Due to, among other things, the early stage
of the litigation, the Partnership is not able to determine what, if any,
loss exposure that it may have for this matter, and the accompanying
consolidated financial statements do not reflect any accruals related to
this matter.  This case has been tendered to one of the Partnership's
insurance carriers, Zurich American Insurance Company (together with its
affiliates collectively, "Zurich"), for defense and indemnity.  Zurich is
providing a defense of this matter under a purported reservation of rights.

The Partnership has also engaged other counsel in connection with this
lawsuit.  The Partnership is unable to determine the ultimate portion of
the expenses, fees and damages, if any, which will be covered by its
insurance.

     The following three lawsuits in large part allegedly arise out of
landscaping issues at certain subdivisions in the Weston Community.  These
lawsuits are collectively referred to as the "landscape cases."

     The Partnership has been named a defendant in a lawsuit entitled, The
Ridges Maintenance Association, Inc. v. Arvida/JMB Partners, Arvida/JMB
Managers, Inc., Arvida Management Limited Partnership, and CCL Consultants,
Inc., Case No. 0310189 (the "Ridges Case"), filed on or about June 6, 2003
in the Circuit Court of the 17th Judicial Circuit in and for Broward
County, Florida.  Plaintiff is alleged to be a homeowners' association
representing the owners of approximately 1,500 homes and extensive common
areas in the Ridges subdivision in Weston.  In this six count complaint for
breach of implied warranty of merchantability, breach of implied warranty
of fitness, breach of express warranty, fraudulent misrepresentation and
concealment, negligent design, construction and/or maintenance and breach
of fiduciary duty, plaintiff seeks an unspecified dollar amount of
compensatory damages, interest, court costs and such other relief as the
court may deem just and proper.  Plaintiff alleges that it evaluated the
condition of the common areas after the turnover of the community in
January 2000 and discovered numerous construction, design and maintenance
defects and deficiencies including, but not limited to, improper planting
of inferior quality/grade of landscaping contrary to prevailing government
codes, shallow planting of landscaping, landscape planting in inappropriate
areas, and the planting of landscaping that would uproot sidewalks.
Plaintiff also alleges that prior to the turnover of the community, the
Arvida defendants engaged in a series of actions that amounted to a breach
of their fiduciary duties to plaintiff by, among other things, improperly
failing to pay for all of the common expenses actually incurred prior to
turnover in excess of the assessment for common expenses and any other
funds including working capital, executing pre-turnover amendments to the
declarations of the association for the Arvida defendants' sole benefit and
to the financial detriment of the plaintiff, engaging in acts which
constituted a conflict of interest, and allegedly improperly transferring
funds by and between plaintiff and a non-party, The Town Foundation, Inc.,
which was also allegedly under the control of one or more of the Arvida
defendants, all in breach of defendants' alleged fiduciary duties.  The
Arvida defendants have filed a motion to dismiss or in the alternative for
a more definite statement that is pending for hearing.  The Arvida
defendants believe that they have meritorious defenses and intend to
vigorously defend themselves.



<PAGE>


     The Partnership has been named a defendant in a case entitled The
Falls Maintenance Association, Inc. v. Arvida/JMB Partners, Arvida/JMB
Managers, Inc., CCL Consultants, Inc. and Stiles Corporation f/k/a Stiles
Landscape Service Co., Case No. 0302577 (the "Falls Maintenance Case"),
filed on or about February 10, 2003, in the 17th Judicial Circuit in and
for Broward County, Florida.  Plaintiff is alleged to be the homeowners'
association responsible for the maintenance, repair, and replacement of the
common areas within the Falls subdivision in Weston, which contains
approximately 600 homes.  Plaintiff complains that on turnover of the Falls
subdivision, it discovered numerous construction, design and maintenance
defects and deficiencies including, but not limited to, the quality/grade
of the landscaping, landscaping planted too shallow, landscaping planted
too deep, landscaping planted in narrow swale areas, landscaping planted in
shallow soil areas, poor fertility of road rock under locations where
landscaping is planted and poor maintenance.  Plaintiff has filed a six
count complaint with five counts against the Partnership for breach of
implied warranty of merchantability, breach of implied warranty of fitness,
breach of express warranty, fraudulent misrepresentation/concealment, and
negligent design, construction and/or maintenance.  Plaintiff seeks an
unspecified amount of compensatory damages, interest, costs, and such other
and further relief as is just and equitable.  The Partnership has filed an
answer to the complaint denying substantive liability and raising various
defenses.  The Arvida defendants believe that they have meritorious
defenses and intend to vigorously defend themselves.

     On October 22, 2003, a case entitled Weston Lakes Maintenance
Association v. Arvida/JMB Partners and Arvida/JMB Managers, Inc., Case No.
0318490, was filed in the Circuit Court of the Seventeenth Judicial Circuit
in and for Broward County, Florida Civil Division.  In the four-count
complaint, which was served on the Partnership in February 2004, plaintiff,
Weston Lakes Maintenance Association, alleges that defendants negligently
selected and installed inferior landscaping materials in the common areas
and elements of the Weston Lakes subdivision, which contains approximately
570 homes.  Plaintiff alleges that defendants' actions have caused higher
than expected maintenance fees and that the landscaping is causing injury
and damage to sidewalks and roadways that must be repaired or replaced.
Plaintiff alleges that an unspecified large sum of money will be required
to replace the alleged substandard landscaping and that significant expense
for remedial maintenance, repair and replacement of elements throughout the
community will be incurred.  The four-count complaint is for negligent
construction and design of landscaping allegedly based on a violation of a
Broward County ordinance regarding plant materials, common law negligence,
breach of implied warranty of fitness, and breach of implied warranty of
merchantability.  Plaintiff seeks a judgment in an unspecified amount and
type of damages, attorney's fees and such other relief as the court may
deem proper.  Defendants have filed a motion to dismiss that is scheduled
for hearing on August 18, 2004.  Defendants believe they have meritorious
defenses and intend to vigorously defend themselves.  The case is in its
preliminary stages.

     Due to, among other things, the early stages of litigation, the
Partnership is not able to determine what, if any, loss exposure that it
may have for the landscape cases, and the accompanying consolidated
financial statements do not reflect any accruals related to the landscape
cases.  Each of the landscape cases has been tendered to Zurich for defense
and indemnity.  Zurich is providing a defense of each of the landscape
cases.  The Partnership has also engaged other counsel in connection with
the landscape cases.  Zurich has issued letters purporting to reserve its
rights in the Ridges and Falls Maintenance Cases.  The Partnership is
unable to determine the ultimate portion of the expenses, fees and damages
allegedly relating to the landscape cases, if any, which will be covered by
its insurance.

     Other than as described above, the Partnership is not subject to any
material legal proceedings, other than ordinary routine litigation
incidental to the business of the Partnership.




<PAGE>


    ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibits

    3.1.    Amended and Restated Agreement of Limited Partnership.*

    3.2.    Acknowledgment and Amendment of Partnership Agreement.*

    3.3.    Assignment Agreement by and among the General Partner, the
            Initial Limited Partner and the Partnership.*

    10.1.   Mutual General Release by Lakes of the Meadow Village Homes
            Condominium No. Eight Maintenance Association, Inc., on behalf
            of itself and its members, and Arvida/JMB Partners, L.P.,
            dated as of May 5, 2004, is filed herewith.

    10.2.   Indemnification Agreement by Lakes of the Meadow Village Homes
            Condominium No. Eight Maintenance Association, Inc., on behalf
            of itself and its members, and Arvida/JMB Partners, L.P.,
            dated as of May 5, 2004, is filed herewith.

    10.3    Mutual General Release by Lakes of the Meadow Village Homes
            Condominium Nos. One, Two, Three, Four, Five, Six, Seven and
            Nine Maintenance Associations, on behalf of themselves and
            their members, and Arvida/JMB Partners, L.P., dated as of
            June 8, 2004, is filed herewith.

    10.4    Indemnification Agreement by Lakes of the Meadow Village Homes
            Condominium No. One Maintenance Association, Inc., on behalf
            of itself and its members, and Arvida/JMB Partners, L.P.,
            dated as of June 8, 2004, is filed herewith.  Substantially
            identical separate Indemnification Agreements by each of Lakes
            of the Meadow Village Homes Condominium Nos. Two, Three, Four,
            Five, Six, Seven and Nine Maintenance Associations, each on
            behalf of itself and its members, and Arvida/JMB Partners,
            L.P. were also executed as of June 8, 2004, and are listed on
            a schedule to this Exhibit.

    31.1.   Certification of the Principal Executive Officer pursuant to
            Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
            1934, as amended, is filed herewith.

    31.2.   Certification of the Principal Financial Officer pursuant to
            Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
            1934, as amended, is filed herewith.

    32.     Certifications of Chief Executive Officer and Chief Financial
            Officer pursuant to 18 U.S.C. Section 1350, as adopted
            pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are
            filed herewith.

            ------------------------------

            *  Previously filed with the Securities and Exchange
            Commission as Exhibits 3.1, 3.2 and 3.3, respectively, to the
            Partnership's Form 10-Q/A Report (File No. 0-16976) filed on
            June 6, 2002 and incorporated herein by reference.


       (b)         No reports on Form 8-K have been filed during the
              quarter for which this report is filed.





<PAGE>


                                SIGNATURES


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


                 ARVIDA/JMB PARTNERS, L.P.

                 BY:   Arvida/JMB Managers, Inc.
                       (The General Partner)




                       By:   GAILEN J. HULL
                             Gailen J. Hull, Vice President
                       Date: August 16, 2004


     Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed on behalf of Arvida/JMB Partners, L.P. by the
following person in the capacities and on the date indicated.




                       By:   GAILEN J. HULL
                             Gailen J. Hull, Chief Financial Officer
                             and Principal Accounting Officer
                       Date: August 16, 2004