----

----

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

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

| For the transition period from _______________________________ to __________________________________ |
|------------------------------------------------------------------------------------------------------|

|  Delaware                                                                                                                    | 16-1212761                                 |
|-----------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
| (State or other jurisdiction of       incorporation or organization)       |  (I.R.S. Employer Identification No.) |

|  Title of each class       |   |  Name of each exchange on which registered |
|---------------------------------------------------------------|--------|-------------------------------------------------|
|                                                          |   |                                            |
|                                                     |   |                                            |

|                   |
|------------------------|
|  (Title of class) |

|                   |
|------------------------|
|  (Title of class) |

----

----

----

----

| ●   | real estate related risks; |
|---------------------|----------------------------|

| ●   | financing risks; |
|---------------------|------------------|

| ●   | tax risks; |
|---------------------|------------|

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

| ●   | risks for investors. |
|---------------------|----------------------|

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

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

----

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

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

----

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

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

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

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

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

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

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

----

----

----

|                                           | At or for the years ended December 31,                                                                              |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|                                           | 2010                                                                                                                |   | 2009 |   | 2008 |   | 2007 |   | 2006 |
| Balance sheet data                             |                                                                                                                |   | (Restated) |   | (Restated) |   | (Restated) |   |  (Restated) |
| Net rental property                            |  $  1,045,585                                                                                        |   |     1,073,652 |   |     1,102,539 |   |    1,247,729 |   |    1,399,257 |
| Total assets                                   |      3,170,269                                                                             |   |     3,194,755 |   |     3,193,581 |   |    2,828,524 |   |    3,005,551 |
| Partners' equity                               |      3,047,000                                                                             |   |     3,066,765 |   |     3,104,521 |   |    2,753,263 |   |    2,898,464 |
|                                           |                    - |   |   |   |   |   |   |   |   |
| Operating data                                 |                                                                                                                |   |   |   |   |   |   |   |   |
| Rental income                                  |         644,108                                                             |   |        663,437 |   |        870,192 |   |      837,250 |   |       793,915 |
| Other income                                   |           12,311                                                  |   |            9,830 |   |            5,509 |   |        34,410 |   |           6,030 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Total revenue                                  |         656,419                                                             |   |        673,267 |   |        875,701 |   |      871,660 |   |       799,945 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Property operating costs                       |         493,713                                                             |   |        523,574 |   |        583,058 |   |      617,846 |   |       548,886 |
| Administrative expenses                        |         194,709                                                             |   |        200,352 |   |        253,403 |   |      254,362 |   |       218,464 |
| Depreciation expense                           |           28,066                                                  |   |          28,887 |   |        145,190 |   |      151,528 |   |       148,491 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Total expenses                                 |         716,488                                                             |   |        752,813 |   |        981,651 |   |    1,023,736 |   |       915,841 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Loss before joint venture                      |                                                                                                                |   |   |   |   |   |   |   |   |
|   operations and gain on sale of property |                                                                                                                |   |   |   |   |   |   |   |
|   of property                             |         (60,069)                                                            |   |         (79,546) |   |       (105,950) |   |     (152,076) |   |      (115,896) |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Equity in earnings of unconsolidated           |                                                                                                                |   |   |   |   |   |   |   |
| joint ventures                                 |           40,304                                                  |   |          41,790 |   |        457,208 |   |          6,875 |   |      (207,541) |
| Gain on sale of property                       |                    - |   |                   - |   |                   - |   |                 - |   |    2,378,002 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Net income (loss)                              |         (19,765)                                                            |   |         (37,756) |   |        351,258 |   |     (145,201) |   |    2,054,565 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Cash flow data                                 |                                                                                                                |   |   |   |   |   |   |   |   |
| Net cash provided (used) by:                   |                                                                                                                |   |   |   |   |   |   |   |   |
| Operating activities                           |         (17,884)                                                            |   |          (5,533) |   |       (404,818) |   |       (23,409) |   |       699,496 |
| Investing activities                           |                    - |   |                   - |   |                   - |   |                 - |   |       (95,971) |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash                |                                                                                                                |   |   |   |   |   |   |   |   |
| and equivalents                                |         (17,884)                                                            |   |          (5,533) |   |       (404,818) |   |       (23,409) |   |       603,525 |
|                                           |                                                                                                                |   |   |   |   |   |   |   |   |
| Per limited partnership unit:                  |                                                                                                                |   |   |   |   |   |   |   |   |
| Net income (loss)                              |  $         (1.92)                                                 |   |            (3.66) |   |            34.07 |   |         (14.08) |   |         199.29 |

----

----

| For Year Ended December 31, 2009:     |                                                                |                                                                                                      |                                                                     |
|---------------------------------------|---------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                  |                                                                | December 31,                                                                                              |                                                                     | December 31, |
|                                  |                                                                | 2009                                                                                                      |                                                                     | 2009 |
|                                  |                                                                | (As previouslyreported)                                                                                   |                                                                     | (As restated) |
| Condensed Balance Sheet               |                                                                |                                                                                                      |                                                                     |
|                                  |                                                                |                                                                                                      |                                                                     |   |
| Accumulated depreciation              |  $  2,531,480                                        |                                                                                                      |      3,789,704                                  |
| Total assets                          |                                                                |  $  4,452,979                                                                              |                                                                     |      3,194,755 |
| Partners' equity                      |                                                                |  $  4,324,989                                                                              |                                                                     |      3,066,765 |
|                                  |                                                                |                                                                                                      |                                                                     |   |
|                                  |                                                                |                                                                                                      |                                                                     |   |
|                                  |                                                                | December 31,                                                                                              |                                                                     | December 31, |
|                                  |                                                                | 2009                                                                                                      |                                                                     | 2009 |
|                                  |                                                                |                                                                                                      |
|                                  |                                                                | (As previouslyreported)                                                                                   |                                                                     | (As restated) |
| Condensed Statements of Operations    |                                                                |                                                                                                      |                                                                     |
|                                  |                                                                |                                                                                                      |                                                                     |   |
| Depreciation                          |                                                                |  $                 - |                                                                     |          28,887 |
| Net loss                              |                                                                |  $       (8,869)                                                  |                                                                     |         (37,756) |
| Net loss per limited partnership unit |  $         (0.86) |                                                                                                      |            (3.66) |
|                                  |                                                                |                                                                                                      |                                                                     |   |
|                                  |                                                                |                                                                                                      |                                                                     |   |
|                                  |                                                                | December 31,                                                                                              |                                                                     | December 31, |
|                                  |                                                                | 2009                                                                                                      |                                                                     | 2009 |
|                                  |                                                                |                                                                                                      |
|                                  |                                                                | (As previouslyreported)                                                                                   |                                                                     | (As restated) |
| Condensed Statements of Cash Flows    |                                                                |                                                                                                      |                                                                     |
|                                  |                                                                |                                                                                                      |                                                                     |   |
| Net loss                              |                                                                |  $       (8,869)                                                  |                                                                     |         (37,756) |
| Depreciation                          |                                                                |  $                 - |                                                                     |          28,887 |
|                                  |                                                                |                                                                                                      |                                                                     |   |

----

| For Year Ended December 31, 2008:       |                                                               |                                                                                                           |                                                                          |
|-----------------------------------------|--------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                    |                                                               | December 31,                                                                                                   |                                                                          | December 31, |
|                                    |                                                               | 2008                                                                                                           |                                                                          | 2008 |
|                                    |                                                               |                                                                                                           |
|                                    |                                                               | (As previouslyreported)                                                                                        |                                                                          | (As restated) |
| Condensed Statements of Operations      |                                                               |                                                                                                           |                                                                          |
|                                    |                                                               |                                                                                                           |                                                                          |   |
| Depreciation                            |                                                               |  $                 - |                                                                          |         145,190 |
| Net income                              |                                                               |  $     496,448                                                                   |                                                                          |         351,258 |
| Net income per limited partnership unit |  $         48.16 |                                                                                                           |             34.07 |
|                                    |                                                               |                                                                                                           |                                                                          |   |
|                                    |                                                               |                                                                                                           |                                                                          |   |
|                                    |                                                               | December 31,                                                                                                   |                                                                          | December 31, |
|                                    |                                                               | 2008                                                                                                           |                                                                          | 2008 |
|                                    |                                                               |                                                                                                           |
|                                    |                                                               | (As previouslyreported)                                                                                        |                                                                          | (As restated) |
| Condensed Statements of Cash Flows      |                                                               |                                                                                                           |                                                                          |
|                                    |                                                               |                                                                                                           |                                                                          |   |
| Net income                              |                                                               |  $     496,448                                                                   |                                                                          |         351,258 |
| Depreciation                            |                                                               |  $                 - |                                                                          |         145,190 |

----

----

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

----

----

----

| (a)  Consolidated Financial Statements                                                                   |   |   Page |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------|
|                                                                                                               |   |             |
| Independent Auditors’ Report                                                                                 |   |  F-1        |
|                                                                                                               |   |             |
| Consolidated Balance Sheets as of December 31, 2010 and 2009                                                  |   |  F-2        |
|                                                                                                               |   |             |
| Consolidated Statements of Operations for the years ended  December 31, 2010, 2009 and 2008                   |   |   F-3       |
|                                                                                                               |   |             |
| Consolidated Statements of Partners’ Equity for the years  ended December 31, 2010, 2009 and 2008  |   |  F-4        |
|                                                                                                               |   |             |
| Consolidated Statements of Cash Flows for the years ended  December 31, 2010, 2009 and 2008         |   |   F-5  |
|                                                                                                               |   |             |
| Notes to Consolidated Financial Statements                                                               |   |  F-6        |

| (i) | Schedule III - Real Estate and Accumulated Depreciation |   |   F-16 |
|-----|---------------------------------------------------------|--------|------------------|

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

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

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

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

|   | (a) | First Amended and Restated Agreement and Certificate of Limited Partnership filed with the Registration Statement of the Registrant Form S-11, filed September 30, 1982 and subsequently amended, is incorporated herein by reference. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10. | Material contracts |
|--------|-----|--------------------|

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

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

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

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

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

----

| By: /s/Joseph M. Jayson  |   |  March 31, 2011 |   |
|-------------------------------|--------|----------------------|--------|
| JOSEPH M. JAYSON,   |   |   Date     |   |
| Individual General Partner    |   |                 |   |

| /s/Joseph M. Jayson                    |   |  March 31, 2011 |   |
|----------------------------------------|--------|----------------------|--------|
| JOSEPH M. JAYSON,            |   |   Date     |   |
| President, Treasurer and Director |   |                 |   |

| /s/Judith P. Jayson             |   |  March 31, 2011 |   |
|-------------------------------------------|--------|----------------------|--------|
| JUDITH P. JAYSON,     |   |   Date     |   |
| Vice President and Director               |   |                 |   |

----

----

| Assets                                              |   | 2010                                                                                |   | 2009                                                                                |   |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|
|                                                |   |                                                                                |   | (As restated)                                                                       |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Property and equipment, at cost:                    |   |                                                                                |   |                                                                                |   |
| Land                                                |   |  $      518,481                                  |   |  $      518,481                                  |   |
| Buildings and improvements                          |   |       4,334,925                                       |   |       4,334,925                                       |   |
| Furniture and equipment                             |   |              9,950 |   |              9,950 |   |
|                                                |   |                                                                                |   |                                                                                |   |
|                                                |   |       4,863,356                                       |   |       4,863,356                                       |   |
| Less accumulated depreciation                       |   |      (3,817,770)                                           |   |      (3,789,704)                                           |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Net property and equipment                          |   |       1,045,586                                       |   |       1,073,652                                       |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Equity interest in unconsolidated                   |   |                                                                                |   |                                                                                |   |
|    joint ventures in excess of investment |   |       1,173,349                                       |   |       1,133,045                                       |   |
| Cash and equivalents                                |   |          324,006                       |   |          341,890                       |   |
| Accounts receivable                                 |   |            15,058            |   |              9,854 |   |
| Receivables from affiliates                         |   |          581,089                       |   |          604,589                       |   |
| Other assets                                        |   |            31,181            |   |            31,725            |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Total assets                                        |   |  $   3,170,269                                                  |   |  $   3,194,755                                                  |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Liabilities and Partners' Equity                    |   |                                                                                |   |                                                                                |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Liabilities:                                        |   |                                                                                |   |                                                                                |   |
| Accounts payable and accrued expenses               |   |       $       54,425    |   |            39,964            |   |
| Security deposits and prepaid rents                 |   |            68,844            |   |            88,026            |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Total liabilities                                   |   |          123,269                       |   |          127,990                       |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Partners' equity:                                   |   |                                                                                |   |                                                                                |   |
| General partners                                    |   |          660,693                       |   |          661,286                       |   |
| Limited partners                                    |   |       2,386,307                                       |   |       2,405,479                                       |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Total partners' equity                              |   |       3,047,000                                       |   |       3,066,765                                       |   |
|                                                |   |                                                                                |   |                                                                                |   |
| Total liabilities and partners' equity              |   |  $   3,170,269                                                  |   |  $   3,194,755                                                  |   |

----

|                                           | 2010                                                                            |   | 2009                                                                                       |   | 2008                                                                                      |
|------------------------------------------------|---------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|
|                                           |                                                                            |   | (As restated)                                                                              |   | (As restated)                                                                             |
| Income:                                        |                                                                            |   |                                                                                       |   |                                                                                      |
| Rental                                         |  $       644,108                        |   |          663,437                              |   |           870,192                       |
| Interest and other                             |             12,311  |   |              9,830        |   |               5,509 |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Total income                                   |           656,419             |   |          673,267                              |   |           875,701                       |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Expenses:                                      |                                                                            |   |                                                                                       |   |                                                                                      |
| Property operations                            |           493,713             |   |          523,574                              |   |           583,058                       |
| Administrative:                                |                                                                            |   |                                                                                       |   |                                                                                      |
| Affiliates                                     |             80,966  |   |            94,769                   |   |           118,430                       |
| Other                                          |           113,743             |   |          105,583                              |   |           134,973                       |
| Depreciation expense                           |             28,066  |   |            28,887                   |   |           145,190                       |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Total expenses                                 |           716,488             |   |          752,813                              |   |           981,651                       |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Loss before equity in earnings of              |                                                                            |   |                                                                                       |   |                                                                                      |
|   unconsolidated joint ventures           |           (60,069)            |   |           (79,546)                       |   |         (105,950)                                 |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Equity in earnings of unconsolidated           |                                                                            |   |                                                                                       |   |
|   joint ventures                          |             40,304  |   |            41,790                   |   |           457,208                       |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Net income (loss)                              |  $       (19,765)                       |   |           (37,756)                       |   |           351,258                       |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Net income (loss) per limited partnership unit |  $           (1.92) |   |               (3.66) |   |               34.07 |
|                                           |                                                                            |   |                                                                                       |   |                                                                                      |
| Weighted average number of limited partnership |                                                                            |   |
|   units outstanding                  |             10,000  |   |            10,000                   |   |             10,000            |

----

|                                           |                                                    | General                                                                       |                                                         | Limited Partners                                                                                              |
|------------------------------------------------|---------------------------------------------------------|-------------------------------------------------------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                           |                                                    | Partners                                                                      |                                                         | Units                                                                                                         |   | Amount |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Balances at December 31, 2007  (Restated) |  $     651,881            |                                                                          |          10,000 |                                                                                                          |      2,101,382 |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Net income                                     |                                                    |          10,538                  |                                                         |                   - |   |         340,720 |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Balances at December 31, 2008  (Restated) |         662,419 |                                                                          |          10,000 |                                                                                                          |      2,442,102 |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Net loss                                       |                                                    |           (1,133)           |                                                         |                   - |   |         (36,623) |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Balances at December 31, 2009 (Restated)       |         661,286 |                                                                          |          10,000 |                                                                                                          |      2,405,479 |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Net loss                                       |                                                    |             (593) |                                                         |                   - |   |         (19,172) |
|                                           |                                                    |                                                                          |                                                         |                                                                                                          |   |   |
| Balances at December 31, 2010                  |  $     660,693            |                                                                          |          10,000 |                                                                                                          |      2,386,307 |

----

|                                                                                                                  | 2010                                                                                                |   | 2009                                                                                                |   | 2008                                                                                |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                  |                                                                                                |   |  (As restated)                                                                                 |   |     (As restated)                                                    |   |   |   |
| Cash flows from operating activities:                                                                                 |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
| Net income (loss)                                                                                                     |  $      (19,765)                                                 |   |          (37,756)                                      |   |          351,258                       |   |   |   |
| Adjustments to reconcile net income (loss)                                                                            |                                                                                                |   |                                                                                                |   |                                                                                |   |   |
|      to net cash used in operating activities:                                                    |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
|        Depreciation                                                                     |            28,066                            |   |            28,887                            |   |          145,190                       |   |   |   |
|        Equity in earnings of joint ventures                                             |          (40,304)                                      |   |          (41,790)                                      |   |        (457,208)                                 |   |   |   |
|        Changes in:                                                                      |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
|            Accounts receivable                                      |            18,296                            |   |                 548 |   |              6,883 |   |   |   |
|            Other assets                                             |                 544 |   |              5,648                 |   |        (456,311)                                 |   |   |   |
|            Accounts payable and accrued expenses                    |            14,461                            |   |            28,332                            |   |          (19,174)                      |   |   |   |
|            Security deposits and prepaid rents                      |          (19,182)                                      |   |            10,598                            |   |            24,544            |   |   |   |
|                                                                                                                  |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
|                 Net cash used in operating |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
|                   activities     |          (17,884)                                      |   |            (5,533)                           |   |        (404,818)                                 |   |   |   |
|                                                                                                                  |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
| Net decrease in cash and equivalents                                                                                  |          (17,884)                                      |   |            (5,533)                           |   |        (404,818)                                 |   |   |   |
|                                                                                                                  |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
| Cash and equivalents at beginning of year                                                                             |          341,890                                       |   |          347,423                                       |   |          752,241                       |   |   |   |
|                                                                                                                  |                                                                                                |   |                                                                                                |   |                                                                                |   |   |   |
| Cash and equivalents at end of year                                                                                   |  $      324,006                                                  |   |          341,890                                       |   |          347,423                       |   |   |   |

----

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

|   | Realmark Property Investors Limited Partnership - II (the Partnership) is a Delaware limited partnership formed on March 25, 1982, to invest in a diversified portfolio of income producing real estate investments. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In 1982 and 1983, the Partnership sold, through a public offering, 10,000 units of limited partnership interest.  The general partners are Realmark Properties, Inc. (the Corporate General Partner) and Joseph M. Jayson (the Individual General Partner) who is the sole shareholder of J.M. Jayson & Company, Inc.  Realmark Properties, Inc. is a wholly-owned subsidiary of J.M. Jayson & Company, Inc. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Under the partnership agreement, the general partners and their affiliates can receive compensation for services rendered, and reimbursement for expenses incurred on behalf of the Partnership (note 5). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | The accompanying consolidated financial statements have been prepared on the accrual basis of accounting and include the accounts of the Partnership and its subsidiary, Realmark/Foxhunt Limited Partnership, a dormant company.  The Partnership owns Northwind Office Park. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In consolidation, all intercompany accounts and transactions have been eliminated. |
|--------|------------------------------------------------------------------------------------|

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

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

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

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

----

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

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

|   | The Partnership reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  In determining whether there is an impairment of long-lived assets, the Partnership compares the sum of the expected future net cash flows (undiscounted and without interest charges) to the carrying amount of the assets.  At December 31, 2010, no impairment in value has been recognized. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (e) | Concentrations of Credit Risk |
|--------|-----|-------------------------------|

|   | Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash and cash equivalent accounts in financial institutions.  Although the accounts exceed the federally insured deposit amount, management does not anticipate nonperformance by the financial institution. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Unconsolidated Joint Ventures |
|--------|-----|-------------------------------|

|   | The Partnership’s investment in Research Triangle Industrial Park Joint Venture and Research Triangle Land Joint Venture are unconsolidated joint ventures, which are accounted for on the equity method.  These joint ventures are not consolidated in the Partnership’s financial statements because the Partnership is not the majority owner. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Rental Income |
|--------|-----|---------------|

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

|   | (h) | Per Unit Data |
|--------|-----|---------------|

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

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

|   | The fair value of the Partnership’s financial instruments approximated their carrying values at December 31, 2010. |
|--------|--------------------------------------------------------------------------------------------------------------------------|

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

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

----

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

|   | (j) | Income Allocation and Distributable Cash Flow, Continued |
|--------|-----|----------------------------------------------------------|

|   | The partnership agreement also provides for the distribution to the partners of net cash flow from operations.  In connection with the pending sale of the Partnership’s properties (note 8), it is anticipated that there will be no future distributions of net cash flow from operations.  Sale or refinancing proceeds are distributed to the extent available, 100% to the limited partners until there has been a return of the limited partner’s capital contribution plus an amount sufficient to provide a 7%, not compounded, return on their adjusted capital contributions for all years following the termination of the offering of the units.  It is anticipated that there will not be sufficient cash flow from the sale of the Partnership’s remaining properties to provide this return to the limited partners.  There were no distributions to partners made in 2010, 2009, or 2008. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | (l) | Segment Information |
|--------|-----|---------------------|

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

----

|   | We are restating earnings to record depreciation expense for the years ended December 31, 2008 and 2009 as if the property had been held for use during those periods According to generally accepted accounting principles, the partnership has not met the available for sale criteria for its properties marketed for sale.  Generally accepted accounting principles require that property be reclassified as held and used if the property is not available for sale at a price that is reasonable in relation to its current fair value. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The following tables summarize the effect of the restatement on the specific items presented for the year ended December 31, 2009. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

| For Year Ended December 31, 2009:     |                                                                                  |                                                                                                                        |                                                                                             |
|---------------------------------------|---------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
|                                  |                                                                                  | December 31,                                                                                                                |                                                                                             | December 31, |
|                                  |                                                                                  | 2009                                                                                                                        |                                                                                             | 2009 |
|                                  |                                                                                  |                                                                                                                        |
|                                  |                                                                                  | (As previouslyreported)                                                                                                     |                                                                                             | (As restated) |
| Condensed Balance Sheet               |                                                                                  |                                                                                                                        |                                                                                             |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
| Accumulated depreciation              |  $     2,531,480                                        |                                                                                                                        |         3,789,704                                        |
| Total assets                          |                                                                                  |  $     4,452,979                                                                              |                                                                                             |         3,194,755 |
| Partners' equity                      |                                                                                  |  $     4,324,989                                                                              |                                                                                             |         3,066,765 |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
|                                  |                                                                                  | December 31,                                                                                                                |                                                                                             | December 31, |
|                                  |                                                                                  | 2009                                                                                                                        |                                                                                             | 2009 |
|                                  |                                                                                  |                                                                                                                        |
|                                  |                                                                                  | (As previouslyreported)                                                                                                     |                                                                                             | (As restated) |
| Condensed Statements of Operations    |                                                                                  |                                                                                                                        |                                                                                             |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
| Depreciation                          |                                                                                  |  $                    - |                                                                                             |             28,887 |
| Net loss                              |                                                                                  |  $          (8,869)                                                  |                                                                                             |            (37,756) |
| Net loss per limited partnership unit |  $            (0.86) |                                                                                                                        |                (3.66) |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
|                                  |                                                                                  | December 31,                                                                                                                |                                                                                             | December 31, |
|                                  |                                                                                  | 2009                                                                                                                        |                                                                                             | 2009 |
|                                  |                                                                                  |                                                                                                                        |
|                                  |                                                                                  | (As previouslyreported)                                                                                                     |                                                                                             | (As restated) |
| Condensed Statements of Cash Flows    |                                                                                  |                                                                                                                        |                                                                                             |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |
| Net loss                              |                                                                                  |  $          (8,869)                                                  |                                                                                             |            (37,756) |
| Depreciation                          |                                                                                  |  $                    - |                                                                                             |             28,887 |
|                                  |                                                                                  |                                                                                                                        |                                                                                             |   |

----

|                                    |                                                                                 |                                                                                                                        |                                                                                            |                                                                      |
|-----------------------------------------|--------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|
| For Year Ended December 31, 2008:       |                                                                                 |                                                                                                                        |                                                                                            |
|                                    |                                                                                 | December 31,                                                                                                                |                                                                                            | December 31,                                                              |
|                                    |                                                                                 | 2008                                                                                                                        |                                                                                            | 2008                                                                      |
|                                    |                                                                                 |                                                                                                                        |
|                                    |                                                                                 | (As previouslyreported)                                                                                                     |                                                                                            | (As restated)                                                             |
| Condensed Statements of Operations      |                                                                                 |                                                                                                                        |                                                                                            |
|                                    |                                                                                 |                                                                                                                        |                                                                                            |                                                                      |
| Depreciation                            |                                                                                 |  $                    - |                                                                                            |            145,190 |
| Net income                              |                                                                                 |  $        496,448                                                              |                                                                                            |            351,258 |
| Net income per limited partnership unit |  $            48.16 |                                                                                                                        |                34.07 |
|                                    |                                                                                 |                                                                                                                        |                                                                                            |                                                                      |
|                                    |                                                                                 |                                                                                                                        |                                                                                            |                                                                      |
|                                    |                                                                                 | December 31,                                                                                                                |                                                                                            | December 31,                                                              |
|                                    |                                                                                 | 2008                                                                                                                        |                                                                                            | 2008                                                                      |
|                                    |                                                                                 |                                                                                                                        |
|                                    |                                                                                 | (As previouslyreported)                                                                                                     |                                                                                            | (As restated)                                                             |
| Condensed Statements of Cash Flows      |                                                                                 |                                                                                                                        |                                                                                            |
|                                    |                                                                                 |                                                                                                                        |                                                                                            |                                                                      |
| Net income                              |                                                                                 |  $        496,448                                                              |                                                                                            |            351,258 |
| Depreciation                            |                                                                                 |  $                    - |                                                                                            |            145,190 |

|   | (4) | Investments in Real Estate |
|--------|-----|----------------------------|

|   | Effective January 1, 2001, the Partnership entered into a plan to dispose of the property of Northwind Office Park.  The carrying value of the assets of Northwind Office Park amounted to $1,045,585 and $1,073,652 at December 31, 2010 and 2009, respectively.  The property generated a net loss of $19,765 and $37,756 for the years ended December 31, 2010 and 2009, respectively. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Partnership has a 50% interest in a Joint Venture with Realmark Property Investors Limited Partnership - VI A (RPILP-VIA), an entity affiliated through common general partners.  The Joint Venture owned and operated the Research Triangle Industrial Park Joint Venture, an office/warehouse complex located in Durham, North Carolina. The Joint Venture agreement provides that any income, loss, gain, cash flow, or sale proceeds be allocated 50% to the Partnership and 50% to RPILP – VI A. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Summary financial information of the Joint Venture follows: |
|--------|-------------------------------------------------------------|

|                                         |                                                                                                                       | December 31,                                                        |
|----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|
| Assets                                       |                                                                                                                       | 2010                                                                |   | 2009 |
|                                         |                                                                                                                       |                                                                |   |   |
| Cash and equivalents                         |                                                                                                                       |  $   1,237,924                                  |   |        1,344,645 |
| Receivable from affiliates                   |                                                                                                                       |        1,080,298                 |   |        1,012,490 |
| Accrued interest receivable                  |                                                                                                                       |           338,017 |   |           253,513 |
|                                         |                                                                                                                       |                                                                |   |   |
| Total assets                                 |                                                                                                                       |  $   2,656,239                                  |   |        2,610,648 |
|                                         |                                                                                                                       |                                                                |   |   |
|                                         |                                                                                                                       |                                                                |   |   |
| Liabilities and Partners' Equity             |                                                                                                                       |                                                                |   |   |
|                                         |                                                                                                                       |                                                                |   |   |
| Liabilities:                                 |                                                                                                                       |                                                                |   |   |
|   Accounts payable and accrued expenses |                     25 |                                                                |                        - |
|   Payables to affiliates                |                                                                                                                       |           521,624 |   |           556,666 |
|                                         |                                                                                                                       |                                                                |   |   |
| Total liabilities                            |                                                                                                                       |           521,649 |   |           556,666 |
|                                         |                                                                                                                       |                                                                |   |   |
| Partners' Equity:                            |                                                                                                                       |                                                                |   |   |
|   The Partnership                       |                                                                                                                       |        1,067,295                 |   |        1,026,991 |
|   RPILP - VI A                          |                                                                                                                       |        1,067,295                 |   |        1,026,991 |
|                                         |                                                                                                                       |                                                                |   |   |
| Total partners' equity                       |                                                                                                                       |        2,134,590                 |   |        2,053,982 |
|                                         |                                                                                                                       |                                                                |   |   |
| Total liabilities and partners' equity       |  $   2,656,239                                                                                         |                                                                |        2,610,648 |

----

|                                    |   | Years ended December 31,                                                                                                              |   |                                                                                                                                  |   |                                                                                |
|-----------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|
|                                    |   | 2010                                                                                                                                  |   | 2009                                                                                                                                  |   | 2008                                                                                |   |   |   |   |
| Income:                                 |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|   Interest                         |   |  $        84,504                                                                         |   |            84,504                                                              |   |            84,504            |   |   |   |   |
|   Other                            |   |                       - |   |                       - |   |       1,654,339                                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|      Total income   |   |            84,504                                                              |   |            84,504                                                              |   |       1,738,843                                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
| Expenses:                               |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|   Property operations              |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|   Interest                         |   |                  642                             |   |                  892                             |   |              1,071 |   |   |   |   |
|   Administrative:                  |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|   Affiliates                       |   |                       - |   |                       - |   |            93,092            |   |   |   |   |
|   Other                            |   |              3,254                                                   |   |                    32                  |   |          730,264                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|      Total expenses |   |              3,896                                                   |   |                  924                             |   |          824,427                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|      Net income     |   |  $        80,608                                                                         |   |            83,580                                                              |   |          914,416                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
| Allocation of net income:               |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|   The Partnership             |   |            40,304                                                              |   |            41,790                                                              |   |          457,208                       |   |   |   |   |
|   RPILP - VI A                     |   |            40,304                                                              |   |            41,790                                                              |   |          457,208                       |   |   |   |   |
|                                    |   |                                                                                                                                  |   |                                                                                                                                  |   |                                                                                |   |   |   |   |
|      Total          |   |  $        80,608                                                                         |   |            83,580                                                              |   |          914,416                       |   |   |   |   |

|                                      |   |                                                                           |   |                                                                           |   |                                                                |   |   |
|-------------------------------------------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|--------|--------|
|                                      |   | 2010                                                                           |   | 2009                                                                           |   | 2008                                                                |   |   |
| Investment in Joint Venture at            |   |                                                                           |   |                                                                           |   |                                                                |   |
|     beginning of year |   |  $    1,026,991                                       |   |           985,201            |   |           527,993 |   |   |
| Allocated net income                      |   |             40,304 |   |             41,790 |   |           457,208 |   |   |
|                                      |   |                                                                           |   |                                                                           |   |                                                                |   |   |
| Equity interest in excess of investment   |   |                                                                           |   |                                                                           |   |                                                                |
|     at end of year    |   |  $    1,067,295                                       |   |        1,026,991                            |   |           985,201 |   |   |

----

|   | (5) | Investments in Unconsolidated Joint Ventures, Continued |
|--------|-----|---------------------------------------------------------|

|   | In 1992, the Partnership entered into an agreement with the Adaron Group to form the Research Triangle Land Joint Venture.  The primary purpose of this joint venture is to develop the undeveloped land on the site of Research Triangle Industrial Park West.  This land was placed into the Land Joint Venture by Research Triangle Industrial Park West.  The ownership of the joint venture is 50% attributable to Adaron Group and 50% to the Partnership.  The value allocated to the land in this joint venture upon acquisition was $412,500.  In 2001, a portion of the land was sold for a gain of $180,199.  The Partnership’s remaining investment in the land amounted to $108,997 at December 31, 2005.  In July 2006, the land was sold for a purchase price of $1,371,704.  The Partnership received a distribution in the amount of $711,314 related to the sale of the land.  There are two purchase money notes totaling $143,312.  The Partnership’s basis in the investment in the land has been adjusted to approximately 67% of the remaining partner’s equity, which amounted to $106,054 at December 31, 2010 and 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                                   |   | 2010                                                                     |   | 2009                                                                     |   | 2008                                                                     |   |   |   |
|--------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------|--------|
| Property management fees based on a percent-           |   |                                                                     |   |                                                                     |   |                                                                     |   |   |
|   age (generally 5%) of the rental income         |   |  $        38,713            |   |            40,145 |   |            54,424 |   |   |   |
|                                                   |   |                                                                     |   |                                                                     |   |                                                                     |   |   |   |
| Reimbursement for cost of services to the              |   |                                                                     |   |                                                                     |   |                                                                     |   |   |   |
|   Partnership that include investor relations,    |   |                                                                     |   |                                                                     |   |                                                                     |   |   |   |
|   marketing of properties, supplies, professional |   |                                                                     |   |                                                                     |   |                                                                     |   |   |
|   fees, communications, accounting, printing,     |   |                                                                     |   |                                                                     |   |                                                                     |   |   |
|   postage and other items                         |   |            42,252 |   |            54,624 |   |            64,006 |   |   |   |
|                                                   |   |                                                                     |   |                                                                     |   |                                                                     |   |   |   |
|                                                   |   |  $        80,965            |   |            94,769 |   |          118,430            |   |   |   |

|   | In addition to the above, other property specific expenses such as payroll, benefits, etc. are charged to property operations on the Partnership’s consolidated statements of operations.    Receivables from affiliated parties are payable on demand and bear interest at 8% in 2010, 2009 and 2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Loan placement fees are paid or accrued to an affiliate of the general partners.  The fee is calculated at 1% of the mortgage loan amounts.  No such fees were paid during the years ended December 31, 2010, 2009 and 2008. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (6) | Related Party Transactions, Continued |
|--------|-----|---------------------------------------|

|   | Memorandum of Understanding |
|--------|-----------------------------|

|   | The Partnership has a 50% interest in the unconsolidated joint venture in Realmark Research, LLC (know as Research Triangle Industrial Park Joint Venture).  Realmark Research, LLC (Research) advanced a portion of its sales proceeds in the amount of $1,066,719 to an affiliate under a Memorandum of Understanding Agreement dated December 8, 2006.  Under the terms of this agreement, the affiliate agrees to repay this loan plus interest at a rate of 8% per annum, upon the sale of a remaining property, which is currently being marketed for sale. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Property Disposition Fee |
|--------|--------------------------|

|   | According to the terms of the partnership agreement, the general partners are also allowed to collect a property disposition fee upon sale of acquired properties.  This fee is not to exceed the lesser of 50% of amounts customarily charged in arm’s-length transactions by others rendering similar services for comparable properties or 3% of the sales price.  The property disposition fee is subordinate to payments to the limited partners of a cumulative annual return (not compounded) equal to 7% of their average adjusted capital balances and to repayment to the limited partners of an amount equal to their original capital contributions.  Since these conditions described above have not been met, no disposition fees have been paid or accrued on properties sold in prior years. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Leases |
|--------|-----|--------|

|   | In connection with the operation of Northwind, a commercial property, the Partnership has entered into numerous operating leases with terms from 1 to 5 years.  Future rentals to be received on non-cancelable operating leases with terms of more than one year are as follows: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |                                                               |
|--------|--------|--------------------------------------------------------------------|
|   |   |                                                               |
| 2011   |   |  $     520,190                       |
| 2012   |   |         402,391            |
| 2013   |   |         220,548            |
| 2014   |   |           38,935 |
| 2015   |   |           16,275 |
|   |   |                                                               |
|   |   |  $   1,198,339                                 |

|   | (8) | Settlement of Lawsuit |
|--------|-----|-----------------------|

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

----

|   | Notes to Consolidated Financial Statements, Continued |
|--------|-------------------------------------------------------|

|   | (8) | Settlement of Lawsuit, Continued |
|--------|-----|----------------------------------|

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

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

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|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |   Schedule III                                                                                                                   |                      |   |
|------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------|--------|
| REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - II |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |
| AND SUBSIDIARY                                       |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Real Estate and Accumulated Depreciation             |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |
| December 31, 2010                                    |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |  Initial Cost to                             |  Cost                                                                                                    |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |
|                                                 |                                                                                                                                        |       Partnership   |  capitalized                                                                                             |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            | Date                                                                                                                                  |                      |   |   |   |
| Property                                             |                                                                                                                                        |                                              |                                                                                                          |  subsequent to                                                                  |                                                                                                                                  |    Buildings and                                                                                    |   Accumulated                                                                                                                     | of                                                                                                            |                                                                                                                            | Date                                                                                                                                  |                      | Date   |
| Description                                          |  Encumbrances                                                                                                                          |  Land                                        |  Buildings                                                                                               |  acquisition                                                                    |  Retirements                                                                                                                     |  Land                                                                                                    |  improvements                                                                                                                          |  Total                                                                                                   |  depreciation*                                                                                                             |  Retirements                                                                                                                     | construction              |   | acquired |   | sold |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Northwind                                            |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Office Park                                          |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| E. Lansing, MI                                       |  $                    -            |        518,481 |     3,415,895                                                                             |            928,980            |                       - |        518,481                                                             |         4,334,925                                                                                   |     4,853,406                                                                             |       3,817,770                                                                                   |                       - | 1973                      |   | 12/83 |   | N/A |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Research                                             |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Triangle JV                                          |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Raleigh, NC                                          |                        - |        750,612 |     4,920,738                                                                             |            336,053            |      (6,007,403)                                                                                             |                   - |                        - |                   - |       3,794,811                                                                                   |      (3,794,811)                                                                                             | 1983                      |   | 12/83 |   | 12/06 |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Research Triangle                                    |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |
| Land JV                                              |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
| Raleigh, NC                                          |                        - |        412,500 |                   - |              20,484 |         (432,984)                                                                             |                   - |                        - |                   - |                      - |                       - |     - |   | 8/92 |   | 7/06 |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |  $                    -            |     1,163,112                 |     4,920,738                                                                             |            356,537            |      (6,440,387)                                                                                             |                   - |                        - |                   - |       3,794,811                                                                                   |      (3,794,811)                                                                                             |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |
|                                                 |                                                                                                                                        |                                              |                                                                                                          |                                                                                 |                                                                                                                                  |                                                                                                          |                                                                                                                                        |                                                                                                          |                                                                                                                            |                                                                                                                                  |                      |   |   |   |   |

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| (1) | Cost for Federal income tax purposes is $4,863,406 |
|-----|----------------------------------------------------|

| (2) | A reconciliation of the carrying amount of land and buildings as of December 31, 2010, 2009 and 2008 follows: |
|-----|---------------------------------------------------------------------------------------------------------------|

|                         | Partnership Properties                                                                                                          |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
|                         | 2010                                                                                                                            |   | 2009 |   | 2008 |
|                         |                                                                                                                            |   | (As restated) |   | (As restated) |
|                         |                                                                                                                            |   |   |   |   |
| Balance at beginning of year |  $ 4,863,406                                                                                                               |   |    4,863,406 |   |     4,863,406 |
| Additions                    |                      - |   |                     - |   |                     - |
|                         |                                                                                                                            |   |   |   |   |
| Balance at end of year       |  $ 4,853,406                                                                                                               |   |    4,853,406 |   |     4,853,406 |

| (3) | A reconciliation of accumulated depreciation for buildings and improvements for the years ended December 31, 2010, 2009 and 2008 follows: |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|                             | Partnership Properties |
|----------------------------------|------------------------|
|                             | 2010                   |   | 2009 |   | 2008 |
|                             |                   |   | (As restated) |   | (As restated) |
|                             |                   |   |   |   |   |
| Balance at beginning of year (4) |  $ 3,817,770      |   |      3,789,704 |   |     3,760,817 |

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