<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   FORM 10-Q




(Mark One)

[X]    Quarterly report pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

For the quarterly period ended             June 30, 2000                    or
                               --------------------------------------------
[_]    Transition report pursuant to Section 13 or 15(d) of the Securities
       Exchange Act of 1934

For the transition period from                                to
                               ------------------------------    -------------

Commission file number                     0-16518
                       -------------------------------------------------------

                           WELLS REAL ESTATE FUND II
------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

          Georgia                                        58-1678709
---------------------------------                  ----------------------
(State or other jurisdiction                          (I.R.S. Employer
of incorporation or organization)                  Identification Number)


6200 The Corners Pkwy., Norcross, Georgia                   30092
-----------------------------------------          ----------------------
(Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code      (770) 449-7800
                                                   ----------------------

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

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes    X        No
    ------         ------
<PAGE>

                                   FORM 10-Q

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                                     INDEX



                                                                        Page No.
                                                                        --------
PART I.    FINANCIAL INFORMATION
  Item 1.  Financial Statements

           Balance Sheets--June 30, 2000 and December 31, 1999             3

           Statements of Income for the Three Months and Six Months
             Ended June 30, 2000 and 1999                                  4

           Statements of Partners' Capital for the Year
             Ended December 31, 1999 and the Six Months
             Ended June 30, 2000                                           5

           Statements of Cash Flows for the Six Months
             Ended June 30, 2000 and 1999                                  6

           Condensed Notes to Financial Statements                         7

  Item 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations                          11

PART II.   OTHER INFORMATION                                              19

                                      -2-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                                 BALANCE SHEETS

<TABLE>
<CAPTION>


                                                              June 30,          December 31,
                                                                2000                1999
                                                             -----------        ------------
<S>                                                          <C>                <C>
ASSETS:
  Investment in joint venture (Note 2)                       $20,005,728        $20,666,589
  Cash and cash equivalents                                       40,211             90,558
  Due from affiliate                                             494,388            451,788
                                                             -----------        -----------
        Total assets                                         $20,540,327        $21,208,935
                                                             ===========        ===========
LIABILITIES AND PARTNERS' CAPITAL:
  Liabilities:
    Accounts payable                                         $       484        $     3,385
    Partnership distributions payable                            500,119            483,167
                                                             -----------        -----------
       Total liabilities                                         500,603            486,552
                                                             -----------        -----------
  Partners' capital:
    Limited partners:
     Class A--108,572 units                                   20,039,724         20,722,383
     Class B--30,221 units                                             0                  0
                                                             -----------        -----------
       Total partners' capital                                20,039,724         20,722,383
                                                             -----------        -----------
       Total liabilities and partners' capital               $20,540,327        $21,208,935
                                                             ===========        ===========
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -3-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)



                              STATEMENTS OF INCOME

<TABLE>
<CAPTION>
                                                                 Three Months Ended              Six Months Ended
                                                              ------------------------       ------------------------
                                                              June 30,        June 30,       June 30,        June 30,
                                                                2000           1999            2000            1999
                                                              --------        --------       --------        --------
<S>                                                           <C>             <C>            <C>             <C>
REVENUES:
  Equity in income of joint venture (Note 2)                  $130,169        $71,997        $284,107        $135,324
  Interest income                                                  193             89             231             145
                                                              --------        -------        --------        --------
                                                               130,362         72,086         284,338         135,469
                                                              --------        -------        --------        --------
EXPENSES:
  Partnership administration                                         0              0               0               0
                                                              --------        -------        --------        --------
NET INCOME                                                    $130,362        $72,086        $284,338        $135,469
                                                              ========        =======        ========        ========

NET INCOME ALLOCATED TO CLASS A LIMITED PARTNERS              $130,362        $72,086        $284,338        $135,469
                                                              ========        =======        ========        ========

NET LOSS ALLOCATED TO CLASS B LIMITED PARTNERS                $   0.00        $  0.00        $   0.00        $   0.00
                                                              ========        =======        ========        ========

NET INCOME PER CLASS A LIMITED PARTNER UNIT                   $   1.20        $  0.66        $   2.62        $   1.25
                                                              ========        =======        ========        ========

NET LOSS PER CLASS B LIMITED PARTNER UNIT                     $   0.00        $  0.00        $   0.00        $   0.00
                                                              ========        =======        ========        ========

CASH DISTRIBUTION PER CLASS A LIMITED PARTNER UNIT            $   4.53        $  3.43        $   8.91        $   7.15
                                                              ========        =======        ========        ========
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -4-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                        STATEMENTS OF PARTNERS' CAPITAL

                      FOR THE YEAR ENDED DECEMBER 31, 1999

                     AND THE SIX MONTHS ENDED JUNE 30, 2000



<TABLE>
<CAPTION>


                                                                Limited Partners
                                         ------------------------------------------------------
                                                  Class A                           Class B             Total
                                         ---------------------------          -----------------        Partners'
                                          Units            Amounts             Units    Amounts         Capital
                                         -------         -----------          -------   -------      -------------
<S>                                      <C>             <C>                  <C>       <C>          <C>
BALANCE, December 31, 1998               108,572         $22,044,258          30,221       $0         $22,044,258

  Net income                                   0             371,178               0        0             371,178
  Partnership distributions                    0          (1,693,053)              0        0          (1,693,053)
                                         -------         -----------          ------       --         -----------
BALANCE, December 31, 1999               108,572          20,722,383          30,221        0          20,722,383

  Net income                                   0             284,338               0        0             284,338
  Partnership distributions                    0            (966,997)              0        0            (966,997)
                                         -------         -----------          ------       --         -----------
BALANCE, June 30, 2000                   108,572         $20,039,724          30,221       $0         $20,039,724
                                         =======         ===========          ======       ==         ===========
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -5-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                            STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>


                                                                                              Six Months Ended
                                                                                      --------------------------------
                                                                                        June 30,             June 30,
                                                                                         2000                 1999
                                                                                      ----------             ---------
<S>                                                                                   <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                                                                          $  284,338             $ 135,469
                                                                                      ----------             ---------
  Adjustments to reconcile net income to net cash (used in)
    provided by operating activities:
      Equity in income of joint venture                                                 (284,107)             (135,324)
      Changes in assets and liabilities:
        Accounts payable                                                                  (2,901)                1,034
                                                                                      ----------             ---------
          Total adjustments                                                             (287,008)             (134,290)
                                                                                      ----------             ---------
          Net cash (used in) provided by operating activities                             (2,670)                1,179
                                                                                      ----------             ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Distributions received from joint ventures                                             902,369               740,626
                                                                                      ----------             ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Distributions to partners                                                             (950,046)             (733,168)
                                                                                      ----------             ---------

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                     (50,347)                8,637

CASH AND CASH EQUIVALENTS, beginning of year                                              90,558                27,011
                                                                                      ----------             ---------
CASH AND CASH EQUIVALENTS, end of period                                              $   40,211             $  35,648
                                                                                      ==========             =========
</TABLE>



           See accompanying condensed notes to financial statements.

                                      -6-
<PAGE>

                           WELLS REAL ESTATE FUND II

                     (A Georgia Public Limited Partnership)


                    CONDENSED NOTES TO FINANCIAL STATEMENTS

 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     (a) General

     Wells Real Estate Fund II (the "Partnership") is a Georgia public limited
     partnership having Leo F. Wells, III and Wells Capital, Inc., a
     Corporation, as General Partners. The Partnership was formed on June 23,
     1986, for the purpose of acquiring, developing, constructing, owning,
     operating, improving, leasing, and otherwise managing for investment
     purposes income-producing commercial or industrial properties.

     On September 8, 1986, the Partnership commenced a public offering of its
     limited partnership units pursuant to a Registration Statement filed on
     Form S-11 under the Securities Act of 1933. The Partnership terminated its
     offering on September 7, 1988 and received gross proceeds of $34,948,250
     representing subscriptions from 4,440 Limited Partners, composed of two
     classes of limited partnership interests, Class A and Class B limited
     partnership units.

     The Partnership owns equity interests in properties through its ownership
     in the following joint ventures: (i) Fund II-Fund II-OW Joint Venture, a
     joint venture between the Partnership and Wells Real Estate Fund II-OW (the
     "Fund II-Fund II-OW Joint Venture"); (ii) Fund II-Fund III Joint Venture, a
     joint venture between the Fund II-Fund II-OW Joint Venture and Wells Real
     Estate Fund III, L.P. ("Fund II-Fund III Associates"); (iii) Fund II-III-
     VI-VII Joint Venture, a joint venture among the Fund II-Fund III Joint
     Venture, Wells Real Estate Fund VI, L.P., and Wells Real Estate Fund VII,
     L.P. ("Fund II, III, VI, VII Associates"); (iv) Fund I-Fund II Joint
     Venture, a joint venture between the Fund II-Fund II-OW Joint Venture and
     Wells Real Estate Fund I ("Tucker Joint Venture"); and (v) Fund I, II, II-
     OW, VI, VII Joint Venture, a joint venture among Wells Real Estate Fund I,
     the Fund II-Fund II-OW Joint Venture, Wells Real Estate Fund VI, L.P., and
     Wells Real Estate Fund VII, L.P. ("Fund I, II, II-OW, VI, VII Joint
     Venture").

     As of June 30, 2000, the Partnership owned interests in the following
     properties through its ownership of the foregoing joint ventures: (i) a
     two-story office building located in Charlotte, North Carolina ("First
     Union at Charlotte"); (ii) a four-story office building located in
     metropolitan Houston, Texas (the "Atrium"); (iii) a restaurant located in
     Fulton County, Georgia (the "Brookwood Grill"); (iv) an office/retail
     center in Fulton County, Georgia ("Holcomb Bridge Road"); (v) a retail
     shopping and commercial office complex located in Tucker, Georgia
     ("Heritage Place at Tucker"); and (vi) a shopping center located in
     Cherokee County, Georgia ("Cherokee Commons"). All of the foregoing
     properties were acquired on an all cash basis. For further information
     regarding these joint ventures and properties, refer to the Partnership's
     Form 10-K for the year ended December 31, 1999.

                                      -7-
<PAGE>

     (b) Basis of Presentation

     The financial statements of the Partnership have been prepared in
     accordance with instructions to Form 10-Q and do not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements. These quarterly statements
     have not been examined by independent accountants, but in the opinion of
     the General Partners, the statements for the unaudited interim periods
     presented include all adjustments, which are of a normal and recurring
     nature, necessary to present a fair presentation of the results for such
     periods.

 2.  INVESTMENT IN JOINT VENTURE

     The Partnership owned interests in six properties as of June 30, 2000
     through its interest in the Fund II-Fund II-OW Joint Venture. The
     Partnership does not have control over the operations of the joint
     ventures; however, it does exercise significant influence. Accordingly,
     investment in the joint venture is recorded on the equity method.

     Fund II-Fund II-OW Joint Venture

     The Partnership owns all of its properties through a joint venture (the
     "Fund II-Fund II-OW Joint Venture") formed on March 1, 1988 between the
     Partnership and Wells Real Estate Fund II-OW ("Wells Fund II-OW"). Wells
     Fund II-OW is a Georgia public limited partnership affiliated with the
     Partnership through common general partners. The investment objectives of
     Wells Fund II-OW are substantially identical to those of the Partnership.
     As of June 30, 2000, the Partnership's equity interest in Wells Fund II-
     Fund II-OW Joint Venture was approximately 95%, and the equity interest of
     Wells Fund II-OW was approximately 5%. The Partnership does not have
     control over the operations of the joint venture; however, it does exercise
     significant influence. Accordingly, investment in the joint venture is
     recorded using the equity method.

                                      -8-
<PAGE>

Following are the financial statements for Fund II-Fund II-OW:

                               FUND II-FUND II-OW

                           (A Georgia Joint Venture)


                                 BALANCE SHEETS

<TABLE>
<CAPTION>


                                                                       June 30,            December 31,
                                                                         2000                 1999
                                                                      -----------          ------------
<S>                                                                   <C>                  <C>
ASSETS:
  Real estate, at cost:
    Land                                                              $ 1,367,856          $ 1,367,856
    Building and improvements, less accumulated depreciation of
      $3,175,284 in 2000 and $2,991,452 in 1999                         4,595,834            4,779,666
                                                                      ------------         -----------
        Total real estate assets                                        5,963,690            6,147,522
                                                                      ------------         -----------
  Investments in joint ventures                                        15,149,509           15,654,420
  Cash and cash equivalents                                               119,422              162,241
  Due from affiliates                                                     402,135              312,901
  Accounts receivable                                                           0                2,149
  Prepaid expenses and other assets                                        16,019               24,473
                                                                      -----------          -----------
        Total assets                                                  $21,650,775          $22,303,706
                                                                      ===========          ===========
LIABILITIES AND PARTNERS' CAPITAL:
  Liabilities:
    Partnership distributions payable                                 $   522,111          $   477,122
                                                                      -----------          -----------
  Partners' capital:
    Wells Real Estate Fund II                                          20,005,728           20,666,589
    Wells Real Estate Fund II-OW                                        1,122,936            1,159,995
                                                                      -----------          -----------
        Total partners' capital                                        21,128,664           21,826,584
                                                                      -----------          -----------
        Total liabilities and partners' capital                       $21,650,775          $22,303,706
                                                                      ===========          ===========
</TABLE>



          See accompanying condensed notes to financial statements.

                                      -9-
<PAGE>

                              FUND II-FUND II-OW

                           (A Georgia Joint Venture)


                             STATEMENTS OF INCOME

<TABLE>
<CAPTION>


                                                           Three Months Ended            Six Months Ended
                                                         -----------------------      ----------------------
                                                         June 30,       June 30,       June 30,     June 30,
                                                           2000           1999           2000         1999
                                                         --------       --------       --------     --------
<S>                                                      <C>            <C>            <C>           <C>
REVENUES:
  Rental income                                           $211,018      $127,682       $422,036      $242,399
  Equity in income of joint ventures                        83,998        99,337        187,043       190,034
  Interest income                                               46           (13)           184            92
                                                          --------      --------       --------      --------
                                                           295,062       227,006        609,263       432,525
                                                          --------      --------       --------      --------
EXPENSES:
  Management and leasing fees                               12,661         7,541         25,451        14,424
  Lease acquisition costs                                    4,588         4,588          9,177         9,177
  Operating costs--rental property                           4,360         4,168          8,126        11,060
  Depreciation                                              91,916        91,916        183,833       183,833
  Legal and accounting                                       9,865        24,813         32,472        28,497
  Computer costs                                             3,426         1,077          6,493         2,741
  Partnership administration                                30,777        16,869         43,672        39,881
                                                          --------      --------       --------      --------
                                                           157,593       150,972        309,224       289,613
                                                          --------      --------       --------      --------
NET INCOME                                                $137,469      $ 76,034       $300,039      $142,912
                                                          ========      ========       ========      ========

NET INCOME ALLOCATED TO WELLS REAL ESTATE FUND II         $130,169      $ 71,997       $284,107      $135,324
                                                          ========      ========       ========      ========

NET INCOME ALLOCATED TO WELLS REAL ESTATE FUND II-OW      $  7,300      $  4,037       $ 15,932      $  7,588
                                                          ========      ========       ========      ========
</TABLE>



           See accompanying condensed notes to financial statements.

                                     -10-

<PAGE>

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

     The following discussion and analysis should be read in conjunction with
     the accompanying financial statements of the Partnership and notes thereto.
     This Report contains forward-looking statements, within the meaning of
     Section 27A of the Securities Act of 1933 and Section 21E of the Securities
     Exchange Act of 1934, including discussion and analysis of the financial
     condition of the Partnership, anticipated capital expenditures required to
     complete certain projects, amounts of cash distributions anticipated to be
     distributed to Limited Partners in the future and certain other matters.
     Readers of this Report should be aware that there are various factors that
     could cause actual results to differ materially from any forward-looking
     statement made in this Report, which include construction costs which may
     exceed estimates, construction delays, lease-up risks, inability to obtain
     new tenants upon the expiration of existing leases, and the potential need
     to fund tenant improvements or other capital expenditures out of operating
     cash flow.

1.   RESULTS OF OPERATIONS AND CHANGES IN FINANCIAL CONDITIONS

     General

     As of June 30, 2000, the developed properties owned by the Fund II-Fund II-
     OW Joint Venture were 97.4% occupied, as compared to 97.5% occupied as of
     June 30, 1999.

     Gross revenues of the Partnership increased to $284,338 for the six months
     ended June 30, 2000 from $135,469 for the six months ended June 30, 1999
     due to increased rental renewal rates at the Charlotte Property. Total
     administrative expenses of the Partnership which are incurred at the joint
     venture level increased slightly due to increased management and leasing
     fees which are charges based on rental income. As a result, net income
     increased to $284,338 as of June 30, 2000 as compared to $135,469 for the
     same period of 1999.

     The Partnership's net cash provided by investing activities and net cash
     used in financing activities increased in 2000, compared to 1999, due to
     increases in distributions from joint ventures as net income increased at
     the Charlotte property.

     Fund II-Fund II-OW Joint Venture distributions accrued to the Partnership
     as of June 30, 2000 and June 30, 1999 were $494,387 and $372,688,
     respectively.

     The Partnership made cash distributions to the Limited Partners holding
     Class A Units for the second quarter of 2000 in the amount of $4.53 per
     Unit as compared to $3.43 for the second quarter of 1999. No cash
     distributions were made by the Partnership to the Limited Partners holding
     Class B Units or to the General Partner.

     As of June 30, 2000, the Fund II-Fund II-OW Joint Venture had used all of
     the remaining funds available for investment in properties.

     The Partnership is unaware of any known demands, commitments, events, or
     capital expenditures other than that which is required from the normal
     operations of its properties that will result in the Partnership's
     liquidity increasing or decreasing in any material way. The Partnership
     expects to meet liquidity requirements and budget demands through cash flow
     from operations.

                                     -11-
<PAGE>

     At this time, four properties are being marketed for sale. CB Richard Ellis
     is marketing the sale of 880 Holcomb Bridge, Brookwood Grill, and Cherokee
     Commons. The marketing piece is being broadly distributed to investors
     throughout the country. The Heritage Place at Tucker property is being
     marketed by The First Fidelity Companies. To maximize the disposition
     value, the management team is separating the retail and creating a
     condominium for the office buildings. The legal and site work should be
     complete so that the management team can market this property to investors
     in early fall. The Partnership's goal is to have these properties sold by
     the end of 2002. As the properties are sold, all proceeds will be returned
     to the Limited Partners in accordance with the Partnership's prospectus.
     Management estimates that the fair market value of each of the properties
     exceeds the carrying value of the corresponding real estate assets;
     consequently, no impairment loss has been recorded. In the event that the
     net sales proceeds are less than the carrying value of the property sold,
     the Partnership would recognize a loss on the sale. Management is not
     contractually or financially obligated to sell any of its properties, and
     it is management's current intent to fully realize the Partnership's
     investment in real estate. The success of the Partnership's future
     operations and the ability to realize investment in its assets will be
     dependent on the Partnership's ability to maintain rental rates, occupancy,
     and an appropriate level of operating expenses in future years. Management
     believes that the steps that it is taking will enable the Partnership to
     realize its investment in its assets.

                                     -12-
<PAGE>

2.   PROPERTY OPERATIONS

     As of June 30, 2000, the Partnership owned interests in the following
     properties through the Fund II-Fund II-OW Joint Venture:

           First Union at Charlotte/Fund II-Fund II-OW Joint Venture

<TABLE>
<CAPTION>


                                                                        Three Months Ended      Six Months Ended
                                                                        -------------------    -------------------
                                                                        June 30,   June 30,    June 30,   June 30,
                                                                         2000       1999        2000       1999
                                                                        --------   --------    --------   --------
     <S>                                                                <C>        <C>         <C>        <C>
     Revenues:
       Rental income                                                    $211,018   $127,682    $422,036   $242,399
                                                                        --------   --------    --------   --------
     Expenses:
       Depreciation                                                       91,916     91,916     183,833    183,833
       Management and leasing expenses                                    17,250     12,129      34,629     23,601
       Other operating expenses                                            4,315      4,180       7,942     10,968
                                                                        --------   --------    --------   --------
                                                                         113,481    108,225     226,404    218,402
                                                                        --------   --------    --------   --------
     Net income                                                         $ 97,537   $ 19,457    $195,632   $ 23,997
                                                                        ========   ========    ========   ========

     Occupied percentage                                                     100%       100%        100%       100%
                                                                        ========   ========    ========   ========

     Partnership's ownership percentage                                     94.7%      94.7%       94.7%      94.7%
                                                                        ========   ========    ========   ========

     Cash distributed to the Fund II-Fund II-OW Joint Venture*          $194,043   $121,163    $388,643   $237,612
                                                                        ========   ========    ========   ========

     Net income generated to the Fund II-Fund II-OW Joint Venture*      $ 97,537   $ 19,457    $195,632   $ 23,997
                                                                        ========   ========    ========   ========

</TABLE>

     *The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint
      Venture.

     Rental income, net income, and cash distributions increased for the three
     months and six months ended June 30, 2000, as compared to the same period
     in 1999, due to an increased renewal rental rate beginning in May 1999.
     Expenses increased as compared to the same periods in 1998 due primarily to
     increased management and leasing fees which are charges based on rental
     income.

                                     -13-
<PAGE>

            Boeing at the Atrium/Fund II and Fund III Joint Venture

<TABLE>
<CAPTION>


                                                                   Three Months Ended        Six Months Ended
                                                                  --------------------     --------------------
                                                                   June 30,   June 30,     June 30,    June 30,
                                                                    2000       1999         2000        1999
                                                                  ---------   --------     --------    --------
<S>                                                               <C>         <C>          <C>         <C>
Revenues:
  Rental income                                                   $366,176    $367,536     $ 733,712   $ 735,072
                                                                  --------    --------     ---------   ---------
Expenses:
  Depreciation                                                     218,290     219,755       435,220     433,860
  Management and leasing expenses                                   48,478      44,869        93,538      89,643
  Other operating expenses                                         168,391     117,325       318,573     313,495
                                                                  --------    --------     ---------   ---------
                                                                   435,159     381,949       847,331     836,998
                                                                  --------    --------     ---------   ---------
Net loss                                                          $(68,983)   $(14,413)    $(113,619)  $(101,926)
                                                                  ========    ========     =========   =========

Occupied percentage                                                    100%        100%          100%        100%
                                                                  ========    ========     =========   =========

Partnership's ownership percentage                                      58%         58%           58%         58%
                                                                  ========    ========     =========   =========

Cash distributed to the Fund II-Fund II-OW Joint Venture*         $100,775    $130,417     $ 187,755   $ 220,049
                                                                  ========    ========     =========   =========

Net loss allocated to the Fund II-Fund II-OW Joint Venture*       $(42,292)   $ (8,835)    $ (69,648)  $ (62,481)
                                                                  ========    ========     =========   =========

</TABLE>
*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income remained relatively stable for the three months and six months
ended June 30, 2000 as compared to the same period in 1999. Other operating
expense increased slightly due primarily to increased expenditures in
electricity, landscape repairs, and property tax accruals.

                                     -14-
<PAGE>

             The Brookwood Grill/Fund II and Fund III Joint Venture

<TABLE>
<CAPTION>


                                                                   Three Months Ended        Six Months Ended
                                                                  --------------------     --------------------
                                                                   June 30,   June 30,     June 30,    June 30,
                                                                    2000       1999         2000        1999
                                                                  ---------   --------     --------    --------
<S>                                                               <C>         <C>          <C>         <C>
Revenues:
  Rental income                                                     $56,238   $56,187      $112,425    $112,375
  Equity in income of joint venture                                  16,415    21,813        33,318      39,304
                                                                    -------   -------      --------    --------
                                                                     72,653    78,000       145,743     151,679
                                                                    -------   -------      --------    --------
Expenses:
  Depreciation                                                       13,503    13,503        27,006      27,006
  Management and leasing expenses                                     5,327     7,955        12,031      16,683
  Other operating expenses                                            1,233       805        11,325       6,330
                                                                    -------   -------      --------    --------
                                                                     20,063    22,263        50,362      50,019
                                                                    -------   -------      --------    --------
Net income                                                          $52,590   $55,737      $ 95,381    $101,660
                                                                    =======   =======      ========    ========

Occupied percentage                                                     100%      100%          100%        100%
                                                                    =======   =======      ========    ========

Partnership's ownership percentage                                       59%       59%           59%         59%
                                                                    =======   =======      ========    ========

Cash distributed to the Fund II-Fund II-OW Joint Venture*           $63,820   $49,986      $121,530    $115,431
                                                                    =======   =======      ========    ========

Net income allocated to the Fund II-Fund II-OW Joint Venture*       $32,790   $34,752      $ 59,470    $ 63,385
                                                                    =======   =======      ========    ========

</TABLE>

* The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.


Other operating expenses increased for the six months ended June 30, 2000 as
compared to the same period last year due to appraisal fees for this property
which is currently being marketed for sale.


                                     -15-
<PAGE>

          Holcomb Bridge Road/Fund II, III, VI, and VII Joint Venture

<TABLE>
<CAPTION>


                                                                   Three Months Ended        Six Months Ended
                                                                  --------------------     --------------------
                                                                   June 30,   June 30,     June 30,    June 30,
                                                                    2000       1999         2000        1999
                                                                  ---------   --------     --------    --------
<S>                                                               <C>         <C>          <C>         <C>
Revenues:
  Rental income                                                   $222,699    $227,761     $444,856    $457,824
                                                                  --------    --------     --------    --------
Expenses:
  Depreciation                                                     104,130      94,128      208,260     188,257
  Management and leasing expenses                                   26,480      42,063       57,066      80,937
  Other operating expenses                                          23,890         387       41,108      24,781
                                                                  --------    --------     --------    --------
                                                                   154,500     136,578      306,434     293,975
                                                                  --------    --------     --------    --------
Net income                                                        $ 68,199    $ 91,183     $138,422    $163,849
                                                                  ========    ========     ========    ========

Occupied percentage                                                    100%         94%         100%         94%
                                                                  ========    ========     ========    ========

Partnership's ownership percentage                                    14.2%       14.2%        14.2%       14.2%
                                                                  ========    ========     ========    ========

Cash distributed to the Fund II-Fund III Joint Venture*           $ 45,459    $ 46,181     $ 91,406    $ 81,600
                                                                  ========    ========     ========    ========

Net income allocated to the Fund II-Fund III Joint Venture*       $ 16,415    $ 21,813     $ 33,318    $ 39,304
                                                                  ========    ========     ========    ========
</TABLE>

*The Partnership holds a 59.1% ownership in the Fund II-Fund III Joint Venture.

Rental income remained relatively stable for the three months ended June 30,
2000 as compared to the same period in 1999.  Management and leasing fees
decreased in 2000, as compared to 1999, due to a catch-up of 1998 management
fees in 1999.  Other operating expenses increased for the three month and six
month period, as compared to the same period last year, due to appraisal fees
for this property which is currently being marketed for sale and monthly common
area maintenance billings were increased in 1999 to offset 1998 underpayment.
Tenants are billed an estimated amount for the current year common area
maintenance which is then reconciled the following year and the difference
billed to the tenant.

Cash contributions to the Fund II-Fund III Joint Venture were increased for six
month period as compared to the same period in 1999 even though there is a
decrease in net income this year due to lease acquisition fees and procurement
fees paid in 1999.

                                     -16-
<PAGE>

         Heritage Place at Tucker Property/Fund I-Fund II Joint Venture

<TABLE>
<CAPTION>


                                                                   Three Months Ended        Six Months Ended
                                                                  --------------------     --------------------
                                                                   June 30,   June 30,     June 30,    June 30,
                                                                    2000       1999         2000        1999
                                                                  ---------   --------     --------    --------
<S>                                                               <C>         <C>          <C>         <C>
Revenues:
  Rental income                                                    $350,916   $343,044     $688,060     $679,903
  Interest income                                                       207        137          349          273
                                                                   --------   --------     --------     --------
                                                                    351,123    343,181      688,409      680,176
                                                                   --------   --------     --------     --------
Expenses:
  Depreciation                                                      123,226    120,456      245,562      229,252
  Management and leasing expenses                                    31,803     43,482       60,381       87,966
  Other operating expenses                                          113,712    103,404      242,751      198,948
                                                                   --------   --------     --------     --------
                                                                    268,741    267,342      548,694      516,166
                                                                   --------   --------     --------     --------
Net income                                                         $ 82,382   $ 75,839     $139,715     $164,010
                                                                   ========   ========     ========     ========

Occupied percentage                                                      88%        91%          88%          91%
                                                                   ========   ========     ========     ========

Partnership's ownership percentage                                     42.5%      42.5%        42.5%        42.5%
                                                                   ========   ========     ========     ========

Cash distributed to the Fund II-Fund II-OW Joint Venture*          $ 88,841   $ 31,293     $123,604     $ 90,742
                                                                   ========   ========     ========     ========

Net income allocated to the Fund II-Fund II-OW Joint Venture*      $ 36,998   $ 34,059     $ 62,746     $ 73,657
                                                                   ========   ========     ========     ========

</TABLE>

*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income increased in 2000, as compared to 1999, even though there was a
decrease in the occupancy level of the property.  This was due to existing
tenant renewals at a higher rate.  Total expenses increased in 2000, as compared
to 1999, due primarily to increased depreciation expense on additional
capitalized tenant improvement, property taxes and repairs to the air condition
system.  Management and leasing expenses decreased in 2000, as compared to 1999,
due to a decrease in leasing commissions and lease acquisition fees.

                                     -17-
<PAGE>

         Cherokee Property/Fund I, II, II-OW, VI, and VII Joint Venture

<TABLE>
<CAPTION>


                                                                   Three Months Ended        Six Months Ended
                                                                  --------------------     --------------------
                                                                   June 30,   June 30,     June 30,    June 30,
                                                                    2000       1999         2000        1999
                                                                  ---------   --------     --------    --------
<S>                                                               <C>         <C>          <C>         <C>
Revenues:
  Rental income                                                    $240,192   $237,232     $483,053     $464,615
  Interest income                                                        40         19           47           39
                                                                   --------   --------     --------     --------
                                                                    240,232    237,251      483,100      464,654
                                                                   --------   --------     --------     --------
Expenses:
  Depreciation                                                      110,563    111,415      221,125      221,527
  Management and leasing expenses                                    19,938     26,135       36,293       51,129
  Other operating expenses                                            6,183      9,772      (20,785)     (19,643)
                                                                   --------   --------     --------     --------
                                                                    136,684    147,322      236,633      253,013
                                                                   --------   --------     --------     --------
Net income                                                         $103,548   $ 89,929     $246,467     $211,641
                                                                   ========   ========     ========     ========

Occupied percentage                                                      97%        96%          97%          96%
                                                                   ========   ========     ========     ========

Partnership's ownership percentage                                     51.7%      51.7%        51.7%        51.7%
                                                                   ========   ========     ========     ========

Cash distributed to the Fund II-Fund II-OW Joint Venture*          $118,700   $103,538     $259,064     $227,662
                                                                   ========   ========     ========     ========

Net income allocated to the Fund II-Fund II-OW Joint Venture*      $ 56,497   $ 49,066     $134,475     $115,473
                                                                   ========   ========     ========     ========
</TABLE>
*The Partnership holds a 95% ownership in the Fund II-Fund II-OW Joint Venture.

Rental income increased in 2000, as compared to 1999, due to increased occupancy
and increased rental renewal rates.  Management and leasing expenses decreased
in 2000, as compared to 1999, due to increased leasing commissions for 1999 and
a catch-up of 1998 management fees in 1999.  Other operating expenses remain
negative for the six months ended June 30, 2000 and 1999 due to the billing of
common area maintenance to tenants.  Tenants are billed an estimate amount for
the current year common area maintenance which is then reconciled in the
following year and the difference billed to the tenant.

                                     -18-
<PAGE>

                          PART II.  OTHER INFORMATION

ITEM 6 (b.)  No reports on Form 8-K were filed during the second quarter of
2000.

                                   SIGNATURES

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

                                      WELLS REAL ESTATE FUND II
                                      (Registrant)
Dated:  August 11, 2000               By: /s/ Leo F. Wells, III
                                          ---------------------
                                      Leo F. Wells, III, as Individual
                                      General Partner, and as President
                                      and Chief Financial Officer
                                      of Wells Capital, Inc.,
                                      the Corporate General Partner

                                     -19-