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

                                   FORM 10-KSB

(Mark One)
[X] Annual Report Under Section 13 or 15(d) of the Securities Exchange Act of
      1934

                    For the fiscal year ended December 31, 2004

[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act
     of 1934

                   For the transition period from_______to_______

                         Commission file number 2-85829

                  DREXEL  BURNHAM  LAMBERT  REAL ESTATE  ASSOCIATES  II (Name of
                   small business issuer in its charter)

New York                                                       13-3202289
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

                         55 Beattie Place, P.O. Box 1089
                        Greenville, South Carolina 29602
                    (Address of principal executive offices)

                    Issuer's telephone number (864) 239-1000

           Securities registered under Section 12(b) of the Exchange Act:

                                      None

           Securities registered under Section 12(g) of the Exchange Act:

                            Limited Partnership Units
                                (Title of class)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act of 1934 during the past 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 ___

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure  will be contained,  to
the  best  of  Registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. [X]

State issuer's revenues for its most recent fiscal year $1,765,000

State the aggregate  market value of the voting  partnership  interests  held by
non-affiliates  computed  by  reference  to the price at which  the  partnership
interests  were sold,  or the average bid and asked  prices of such  partnership
interests, as of December 31, 2004. No market exists for the limited partnership
interests of the Registrant,  and,  therefore,  no aggregate market value can be
determined.

                       DOCUMENTS INCORPORATED BY REFERENCE
                                      None


<PAGE>

The matters discussed in this report contain certain forward-looking statements,
including, without limitation, statements regarding future financial performance
and the effect of government  regulations.  Actual results may differ materially
from those described in the forward-looking statements and will be affected by a
variety of risks and factors including,  without limitation:  national and local
economic  conditions;  the terms of  governmental  regulations  that  affect the
Registrant and interpretations of those regulations; the competitive environment
in which the Registrant operates;  financing risks, including the risk that cash
flows from operations may be insufficient to meet required payments of principal
and interest;  real estate risks, including variations of real estate values and
the general  economic  climate in local markets and  competition  for tenants in
such markets;  litigation,  including  costs  associated  with  prosecuting  and
defending  claims  and  any  adverse   outcomes,   and  possible   environmental
liabilities.   Readers  should  carefully  review  the  Registrant's   financial
statements and the notes thereto,  as well as the risk factors  described in the
documents  the  Registrant  files  from  time to time  with the  Securities  and
Exchange Commission.


                                     PART I

Item 1.     Description of Business

Drexel  Burnham  Lambert  Real  Estate  Associates  II  (the   "Partnership"  or
"Registrant")  was  organized  on  November  2,  1983  as  a  New  York  limited
partnership  pursuant to the Limited  Partnership Laws of the State of New York.
The general partner of the Partnership is DBL Properties  Corporation  ("DBL" or
the "General  Partner"),  an affiliate of Apartment  Investment  and  Management
Company  ("AIMCO"),   a  publicly  traded  real  estate  investment  trust.  The
Partnership  Agreement provides that the Partnership is to terminate on December
31, 2032, unless terminated prior to such date.

The  Partnership's  primary business is to operate and hold existing real estate
properties for investment. The Partnership acquired interests in five properties
during  1984  and  1985.  The  Partnership  continues  to own  and  operate  one
residential property, Presidential House Apartments.

Commencing in February 1984 pursuant to the Prospectus,  the Partnership offered
20,000 Limited  Partnership  Units (the  "Units").  A total of 37,273 Units were
sold to the public at $500 per Unit aggregating to approximately $18,637,000. In
addition,  the  General  Partner  contributed  $1,000 for its 1% interest in the
Partnership.  The offering  closed on October 10, 1984.  No Limited  Partner has
made any additional  capital  contribution after that date. The Limited Partners
of the Partnership share in the benefits of ownership of the Partnership's  real
estate property investments according to the number of Units held.

The Partnership  has no employees.  Management and  administrative  services are
provided by the General Partner and by agents  retained by the General  Partner.
An affiliate of the General Partner has been providing such property  management
services.

Risk Factors

The  real  estate  business  in which  the  Partnership  is  engaged  is  highly
competitive.  There are other  residential  properties within the market area of
the Partnership's  property.  The number and quality of competitive  properties,
including those which may be managed by an affiliate of the General Partner,  in
such  market  area  could have a  material  effect on the rental  market for the
apartments at the  Partnership's  property and the rents that may be charged for
such apartments. While the General Partner and its affiliates own and/or control
a  significant  number of  apartment  units in the  United  States,  such  units
represent an  insignificant  percentage of total  apartment  units in the United
States and competition for the apartments is local.

Laws benefiting  disabled persons may result in the Partnership's  incurrence of
unanticipated  expenses.  Under the Americans with  Disabilities Act of 1990, or
ADA,  all places  intended to be used by the public are required to meet certain
Federal  requirements  related to access and use by disabled persons.  Likewise,
the Fair Housing Amendments Act of 1988, or FHAA, requires apartment  properties
first occupied after March 13, 1990 to be accessible to the  handicapped.  These
and other  Federal,  state  and  local  laws may  require  modifications  to the
Partnership's  property, or restrict renovations of the property.  Noncompliance
with these laws could result in the  imposition  of fines or an award of damages
to  private  litigants  and  also  could  result  in an  order  to  correct  any
non-complying  feature,  which could result in substantial capital expenditures.
Although  the  General  Partner  believes  that the  Partnership's  property  is
substantially in compliance with the present  requirements,  the Partnership may
incur unanticipated expenses to comply with the ADA and the FHAA.

Both the income and expenses of operating the property owned by the  Partnership
are subject to factors outside of the Partnership's  control, such as changes in
the supply and demand for  similar  properties  resulting  from  various  market
conditions, increases/decreases in unemployment or population shifts, changes in
the  availability of permanent  mortgage  financing,  changes in zoning laws, or
changes in patterns or needs of users. In addition,  there are risks inherent in
owning  and  operating  residential   properties  because  such  properties  are
susceptible  to the  impact of  economic  and other  conditions  outside  of the
control of the Partnership.

From time to time, the Federal Bureau of  Investigation,  or FBI, and the United
States  Department  of  Homeland  Security  issue  alerts  regarding   potential
terrorist threats  involving  apartment  buildings.  Threats of future terrorist
attacks,  such as those  announced  by the FBI and the  Department  of  Homeland
Security,  could  have a  negative  effect on rent and  occupancy  levels at the
Partnership's  property.  The effect that future terrorist activities or threats
of such activities could have on the  Partnership's  operations is uncertain and
unpredictable.  If the  Partnership  were to incur a loss at the  property  as a
result of an act of terrorism,  the  Partnership  could lose all or a portion of
the capital  invested in the  property,  as well as the future  revenue from the
property.  In this regard, the Partnership has purchased insurance to cover acts
of terrorism. The General Partner does not anticipate that these costs will have
a  negative  effect on the  Partnership's  financial  condition  or  results  of
operations.

There have been,  and it is possible  there may be other,  Federal,  state,  and
local  legislation  and  regulations  enacted  relating to the protection of the
environment.  The Partnership is unable to predict the extent,  if any, to which
such new  legislation  or  regulations  might occur and the degree to which such
existing or new legislation or regulations  might adversely  affect the property
owned by the Partnership.

The  Partnership  monitors its property for evidence of  pollutants,  toxins and
other dangerous substances, including the presence of asbestos. In certain cases
environmental testing has been performed,  which resulted in no material adverse
conditions or liabilities.  In no case has the Partnership  received notice that
it is a potentially  responsible party with respect to an environmental clean up
site.

A further  description  of the  Partnership's  business  is included in "Item 6.
Management's Discussion and Analysis or Plan of Operation".

Item 2.     Description of Property

The following table sets forth the Partnership's investment in property:
<TABLE>
<CAPTION>

                                  Date of
Property                          Purchase      Type of Ownership           Use

<S>                               <C>   <C>
Presidential House Apartments     10/22/84  Fee ownership subject         Apartments
  North Miami Beach, FL                     to first mortgage             203 units
</TABLE>

Schedule of Property

Set forth  below for the  Partnership's  property is the gross  carrying  value,
accumulated  depreciation,  depreciable life, method of depreciation and Federal
tax basis.
<TABLE>
<CAPTION>

                        Gross                                    Method
                       Carrying   Accumulated    Depreciable       Of          Federal
Property                Value     Depreciation      Life      Depreciation    Tax Basis
                           (in thousands)                                    (in thousands)

<S>                      <C>          <C>        <C>                           <C>
Presidential House       $8,931       $6,781     5-31.5 yrs        SL          $ 2,110
</TABLE>

See  "Note  A" to the  financial  statements  included  in  "Item  7.  Financial
Statements"  for  a  description  of  the   Partnership's   capitalization   and
depreciation policies.

Schedule of Property Indebtedness

The  following  table  sets  forth  certain  information  relating  to the loans
encumbering the Partnership's property.
<TABLE>
<CAPTION>

                   Principal
                   Balance At                                          Principal
                  December 31,   Interest    Period     Maturity       Balance At
Property              2004        Rate(1)   Amortized     Date    Due at maturity (2)
                 (in thousands)                                      (in thousands)

<S>                  <C>           <C>       <C>        <C>   <C>      <C>
Presidential         $3,747        7.96%     20 yrs     07/01/20       $     --
 House
 2nd mortgage         1,323        5.55%     17 yrs     07/01/20             --
  Total              $5,070                                            $     --
</TABLE>

 (1)  Fixed rate mortgage.

 (2)  See "Item 7. Financial Statements - Note C" for specific details about the
      loans and information with respect to the Partnership's  ability to prepay
      these loans.

On May 30, 2003, the Partnership entered into a second mortgage for Presidential
House   Apartments.   The  second  mortgage  is  in  the  principal   amount  of
approximately  $1,400,000  and has a stated  interest  rate of 5.55% per  annum.
Payments of principal and interest of approximately $11,000 are due on the first
day of each month  commencing  July 2003 until July 2020, at which time the note
is scheduled to be fully amortized.  Capitalized loan costs,  which are included
in other assets,  incurred with the second mortgage were approximately  $50,000,
and are being amortized over the life of the mortgage note payable.

Rental Rates and Occupancy

Average  annual  rental rates and  occupancy  for 2004 and 2003 for the property
were:

                                     Average Annual              Average Annual
                                      Rental Rates                  Occupancy
                                   (per unit)
Property                          2004            2003          2004        2003

Presidential House               $8,832          $8,610          94%         95%

As noted under "Item 1.  Description of Business",  the real estate  industry is
highly  competitive.  The Partnership's  property is subject to competition from
other  properties in the area. The General Partner believes that the property is
adequately insured.  The property is an apartment complex which leases units for
lease terms of one year or less. No residential tenant leases 10% or more of the
available rental space. The property is in good physical  condition,  subject to
normal  depreciation and deterioration as is typical for assets of this type and
age.

Real Estate Taxes and Rates

Real estate tax and rate in 2004 for the property were:

                                         2004                 2004
                                        Billing               Rate
                                    (in thousands)

       Presidential House                $171                 2.08%

Capital Improvements

Presidential House

During the year ended December 31, 2004, the Partnership completed approximately
$292,000 of capital  improvements at Presidential House consisting  primarily of
plumbing  enhancements,   fire  safety  upgrades,  building  improvements,   air
conditioning  replacements,  elevator  repair,  and appliance and floor covering
replacements.  These  improvements  were  funded  from  operating  cash flow and
insurance proceeds.  The Partnership regularly evaluates the capital improvement
needs of the property.  While the  Partnership  has no material  commitments for
property improvements and replacements, certain routine capital expenditures are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.

Capital  expenditures will be incurred only if cash is available from operations
or from  Partnership  reserves.  To the extent  that  capital  improvements  are
completed,  the Partnership's  distributable cash flow, if any, may be adversely
affected at least in the short term.

Item 3.     Legal Proceedings

As a result of a previously  disclosed  complaint filed on August 8, 2003 and an
amended  complaint filed March 5, 2004, AIMCO Properties L.P. and NHP Management
Company,  both affiliates of the General Partner, are defendants in an action in
the United States  District  Court,  District of Columbia.  The plaintiffs  have
styled their complaint as a collective action under the Fair Labor Standards Act
("FLSA") and seek to certify state subclasses in California,  Maryland,  and the
District of Columbia. Specifically, the plaintiffs contend that AIMCO Properties
L.P. failed to compensate  maintenance  workers for time that they were required
to be "on-call." Additionally, plaintiffs allege AIMCO Properties L.P. failed to
comply  with the FLSA in  compensating  maintenance  workers  for time that they
worked in responding to a call while  "on-call."  The  defendants  have filed an
answer to the amended complaint denying the substantive  allegations.  Discovery
relating to the certification of the collective  action has concluded.  Briefing
concerning the  certification  of the  collective  action will commence in March
2005.  Although the outcome of any  litigation is uncertain,  AIMCO  Properties,
L.P.  does not believe  that the ultimate  outcome will have a material  adverse
effect on its  financial  condition  or results of  operations.  Similarly,  the
General Partner does not believe that the ultimate  outcome will have a material
adverse  effect  on  the  Partnership's   financial   condition  or  results  of
operations.

The  General  Partner  does not  anticipate  that any costs to the  Partnership,
whether legal or settlement costs, associated with this case will be material to
the Partnership's overall operations.

Item 4.     Submission of Matters to a Vote of Security Holders

During the quarter ended December 31, 2004, no matter was submitted to a vote of
unit holders through the solicitation of proxies or otherwise.

                                     PART II

Item 5.     Market for the Partnership's Equity and Related Partner Matters

The Partnership,  a publicly-held  limited partnership,  offered and sold 37,273
Limited  Partnership  Units (the  "Units")  during its offering  period  through
October 1984.  The  Partnership  currently has 1,007 holders of record owning an
aggregate of 37,273 Units.  Affiliates of the General Partner owned 16,647 Units
or 44.66% at December 31, 2004. No public  trading  market has developed for the
Units, and it is not anticipated that such a market will develop in the future.

The  Partnership  distributed  the  following  amounts  during  the years  ended
December 31, 2004 and 2003 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                       Year Ended      Per Limited      Year Ended      Per Limited
                      December 31,     Partnership     December 31,     Partnership
                          2004             Unit            2003             Unit

<S>                     <C>              <C>             <C>               <C>
Operations              $   --           $   --          $  440            $11.81
Financing (1)               --               --           1,330             35.68
Total                   $   --           $   --          $1,770            $47.49
</TABLE>

(1)   Distribution  from the  proceeds  received  from the  second  mortgage  of
      Presidential House Apartments.

Future cash  distributions  will depend on the levels of net cash generated from
operations and the timing of the debt  maturity,  refinancing,  and/or  property
sale. The Partnership's cash available for distribution is reviewed on a monthly
basis.  There can be no assurance,  however,  that the Partnership will generate
sufficient  funds  from  operations  after  capital  expenditures  to permit any
distributions to its partners in the year 2005 or subsequent periods.  See "Item
2. Description of Property - Capital  Improvements" for information  relating to
anticipated expenditures at the property.

As of December 31, 2004, the remaining unpaid preferred return arrearage totaled
approximately $10,798,000 or approximately $290 per Unit.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its  affiliates  owned 16,647  Units in the  Partnership
representing  44.66% of the outstanding  units at December 31, 2004. A number of
these  Units  were  acquired  pursuant  to  tender  offers  made by AIMCO or its
affiliates.  It is possible that AIMCO or its affiliates will acquire additional
Units  in  exchange  for  cash or a  combination  of cash  and  units  in  AIMCO
Properties,  L.P., the operating  partnership of AIMCO,  either through  private
purchases  or  tender  offers.  In this  regard,  on  February  16,  2005  AIMCO
Properties, L.P. commenced a tender offer to purchase 17,572.22 Units at a price
of $146.00 per Unit. Such offer expired March 28, 2005.  Pursuant to this offer,
AIMCO acquired 1,736 units. Pursuant to the Partnership  Agreement,  unitholders
holding a majority of the Units are  entitled  to take action with  respect to a
variety of matters  that  include,  but are not  limited  to,  voting on certain
amendments  to the  Partnership  Agreement  and  voting  to remove  the  General
Partner.  As a result of its  ownership  of 44.66% of the  outstanding  Units at
December 31, 2004,  AIMCO and its  affiliates are in a position to influence all
voting decisions with respect to the  Partnership.  Although the General Partner
owes fiduciary duties to the limited  partners of the  Partnership,  the General
Partner  also  owes  fiduciary  duties  to AIMCO as its sole  stockholder.  As a
result,  the  duties  of  the  General  Partner,  as  general  partner,  to  the
Partnership  and its limited  partners may come into conflict with the duties of
the General Partner to AIMCO as its sole stockholder.

Item 6.     Management's Discussion and Analysis or Plan of Operation

This item should be read in conjunction with the financial  statements and other
items contained elsewhere in this report.

The  Partnership's  financial  results depend upon a number of factors including
the ability to attract and maintain tenants at the investment property, interest
rates on mortgage  loans,  costs  incurred to operate the  investment  property,
general economic conditions and weather. As part of the ongoing business plan of
the Partnership,  the General Partner monitors the rental market  environment of
its  investment   property  to  assess  the  feasibility  of  increasing  rents,
maintaining or increasing  occupancy  levels and protecting the Partnership from
increases in expenses.  As part of this plan,  the General  Partner  attempts to
protect  the  Partnership  from the  burden of  inflation-related  increases  in
expenses by increasing  rents and  maintaining a high overall  occupancy  level.
However,  the  General  Partner  may use  rental  concessions  and  rental  rate
reductions  to offset  softening  market  conditions,  accordingly,  there is no
guarantee that the General Partner will be able to sustain such a plan. Further,
a number of factors that are outside the control of the Partnership  such as the
local  economic  climate and  weather can  adversely  or  positively  affect the
Partnership's financial results.

Results of Operations

The Partnership  realized net income of approximately  $160,000 and $258,000 for
the years ended  December 31, 2004 and 2003,  respectively.  The decrease in net
income was due to an increase in total expenses  partially offset by an increase
in total revenues.  Total revenues increased due to an increase in rental income
and the recognition of a casualty gain in 2004.  Rental income  increased due to
an increase in average rental rate and a decrease in bad debt expense  partially
offset by a decrease in occupancy.  Other income  decreased due to a decrease in
late charges.

In December  2003,  Presidential  House  Apartments  suffered fire damage to six
apartments  units.  Insurance  proceeds of  approximately  $37,000 were received
during the year ended December 31, 2004. The  Partnership  recognized a casualty
gain of  approximately  $37,000  during the year ended  December 31, 2004 as the
damaged assets were fully depreciated.

Total   expenses   increased  due  to  increases  in   operating,   general  and
administrative  and interest expenses partially offset by a decrease in property
tax expense. Depreciation remained comparable.  Operating expenses increased due
to increases in advertising,  property and administrative expenses.  Advertising
expense  increased  due to  increases in referral  fees and resident  relations.
Property expense increased due to an increase in payroll and related benefits at
the  investment  property.  Administrative  expense  increased due to ad valorem
taxes  and  temporary  agency  help  partially  offset by a  decrease  in office
supplies. Interest expense increased due to the addition of a second mortgage in
May 2003  that has  increased  the  average  outstanding  mortgage  balance  and
interest on advances  from an  affiliate  of the General  Partner.  Property tax
expense  decreased  due to a lower  assessed  value as a result  of an appeal in
2004.

General and  administrative  expenses  increased  due to  approximately  $15,000
charged to expense to correct  distributions to a limited  partner.  Included in
general and  administrative  expenses for the years ended  December 31, 2004 and
2003 are management  reimbursements to the General Partner, as allowed under the
Partnership Agreement.  Also included in general and administrative expenses are
costs associated with the quarterly and annual communications with investors and
regulatory agencies and the annual audit required by the Partnership Agreement.

Capital Resources and Liquidity

At  December  31,  2004,  the  Partnership  had  cash and  cash  equivalents  of
approximately  $99,000 compared to approximately  $122,000 at December 31, 2003.
For the year  ended  December  31,  2004,  cash and cash  equivalents  decreased
approximately  $23,000.  The  decrease  in cash and cash  equivalents  is due to
approximately  $255,000 of cash used in investing activities partially offset by
approximately   $188,000  of  cash   provided  by   operating   activities   and
approximately  $44,000 of cash  provided by financing  activities.  Cash used in
investing  activities  consisted  of  property   improvements  and  replacements
partially  offset by insurance  proceeds  received.  Cash  provided by financing
activities  consisted of  borrowings  from an  affiliate of the General  Partner
partially  offset by payments on the  mortgages  encumbering  the  Partnership's
investment  property.  The Partnership  invests its working capital  reserves in
interest-bearing accounts.

On May 30, 2003, the Partnership entered into a second mortgage for Presidential
House   Apartments.   The  second  mortgage  is  in  the  principal   amount  of
approximately  $1,400,000  and has a stated  interest  rate of 5.55% per  annum.
Payments of principal and interest of approximately $11,000 are due on the first
day of each month  commencing  July 2003 until July 2020, at which time the note
is scheduled to be fully amortized.  Capitalized loan costs,  which are included
in other assets,  incurred with the second mortgage were approximately  $50,000,
and are being amortized over the life of the mortgage note payable.

The sufficiency of existing  liquid assets to meet future  liquidity and capital
expenditure   requirements   is  directly   related  to  the  level  of  capital
expenditures  required at the property to adequately maintain the physical asset
and other operating needs of the Partnership and to comply with Federal,  state,
and local  legal and  regulatory  requirements.  The  General  Partner  monitors
developments  in the area of legal and  regulatory  compliance.  For example the
Sarbanes-Oxley Act of 2002 mandates or suggests  additional  compliance measures
with regard to governance,  disclosure, audit and other areas. In light of these
changes,  the Partnership  expects that it will incur higher expenses related to
compliance.  The  Partnership  evaluates  the capital  improvement  needs of the
property.  While  the  Partnership  has no  material  commitments  for  property
improvements  and  replacements,   certain  routine  capital   expenditures  are
anticipated  during 2005. Such capital  expenditures will depend on the physical
condition  of the  property as well as  anticipated  cash flow  generated by the
property.  The capital  expenditures  will be incurred only if cash is available
from operations or from  Partnership  reserves.  To the extent that such capital
improvements are completed,  the Partnership's  distributable cash flow, if any,
may be adversely affected at least in the short term.

The  Partnership's  assets are thought to be sufficient for any near-term  needs
(exclusive of capital  improvements) of the  Partnership.  At December 31, 2004,
the  first  and  second  mortgage  indebtedness  encumbering  the  Partnership's
investment  property of approximately  $5,070,000 requires monthly principal and
interest  payments  until July 1, 2020 when the notes are  scheduled to be fully
amortized.

The  Partnership  distributed  the  following  amounts  during  the years  ended
December 31, 2004 and 2003 (in thousands, except per unit data):
<TABLE>
<CAPTION>

                       Year Ended      Per Limited      Year Ended      Per Limited
                      December 31,     Partnership     December 31,     Partnership
                          2004             Unit            2003             Unit
<S>                     <C>              <C>             <C>               <C>
Operations              $   --           $   --          $  440            $11.81
Financing (1)               --               --           1,330             35.68
Total                   $   --           $   --          $1,770            $47.49
</TABLE>

(1)   Distribution  from the  proceeds  received  from the  second  mortgage  of
      Presidential House Apartments.

Future cash  distributions  will depend on the levels of net cash generated from
operations and the timing of the debt  maturity,  refinancing,  and/or  property
sale. The Partnership's cash available for distribution is reviewed on a monthly
basis.  There can be no assurance,  however,  that the Partnership will generate
sufficient  funds  from  operations  after  capital  expenditures  to permit any
distributions to its partners in the year 2005 or subsequent periods.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 16,647 limited  partnership  units
(the "Units") in the Partnership representing 44.66% of the outstanding units at
December  31,  2004.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  In this regard, on February
16, 2005, AIMCO Properties,  L.P. commenced a tender offer to purchase 17,572.22
units at a price of  $146.00  per Unit.  Such offer  expired on March 28,  2005.
Pursuant to this offer, AIMCO acquired 1,736 units.  Pursuant to the Partnership
Agreement,  unitholders  holding a majority  of the Units are  entitled  to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove  the  General  Partner.  As a result  of its  ownership  of 44.66% of the
outstanding  Units at December  31,  20004,  AIMCO and its  affiliates  are in a
position to influence  all voting  decisions  with  respect to the  Partnership.
Although the General  Partner owes fiduciary  duties to the limited  partners of
the Partnership,  the General Partner also owes fiduciary duties to AIMCO as its
sole  stockholder.  As a result,  the duties of the General Partner,  as general
partner, to the Partnership and its limited partners may come into conflict with
the duties of the General Partner to AIMCO as its sole stockholder.

Critical Accounting Policies and Estimates

A summary of the Partnership's  significant  accounting  policies is included in
"Note A - Organization and Significant Accounting Policies" which is included in
the financial statements in "Item 7. Financial Statements".  The General Partner
believes  that  the  consistent   application  of  these  policies  enables  the
Partnership  to provide  readers of the  financial  statements  with  useful and
reliable  information  about the  Partnership's  operating results and financial
condition. The preparation of financial statements in conformity with accounting
principles  generally  accepted in the United States requires the Partnership to
make  estimates and  assumptions.  These  estimates and  assumptions  affect the
reported  amounts  of  assets  and  liabilities  at the  date  of the  financial
statements  as well as reported  amounts of  revenues  and  expenses  during the
reporting  period.  Actual results could differ from these estimates.  Judgments
and  assessments  of  uncertainties  are required in applying the  Partnership's
accounting  policies in many areas. The following may involve a higher degree of
judgment and complexity.

Impairment of Long-Lived Assets

The  Partnership's  investment  property is recorded at cost,  less  accumulated
depreciation,  unless considered impaired.  If events or circumstances  indicate
that the carrying amount of the property may be impaired,  the Partnership  will
make an assessment of its  recoverability by estimating the undiscounted  future
cash flows,  excluding interest charges, of the property. If the carrying amount
exceeds the aggregate  future cash flows,  the  Partnership  would  recognize an
impairment  loss to the extent the carrying amount exceeds the fair value of the
property.

Real  property  investments  are  subject  to varying  degrees of risk.  Several
factors  may  adversely  affect  the  economic  performance  and  value  of  the
Partnership's  investment  property.  These factors include, but are not limited
to,  changes  in the  national,  regional  and  local  economic  climate;  local
conditions,  such as an oversupply of multifamily  properties;  competition from
other available  multifamily property owners and changes in market rental rates.
Any adverse changes in these factors could cause impairment of the Partnership's
asset.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.


<PAGE>


Item 7.     Financial Statements

DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

LIST OF FINANCIAL STATEMENTS


Report of Independent Registered Public Accounting Firm

Balance Sheet - December 31, 2004

Statements of Operations - Years ended December 31, 2004 and 2003

Statements of Changes in Partners'  Capital  (Deficiency) - Years ended December
31, 2004 and 2003

Statements of Cash Flows - Years ended December 31, 2004 and 2003

Notes to Financial Statements

              Report of Independent Registered Public Accounting Firm



The Partners
Drexel Burnham Lambert Real Estate Associates II


We have audited the  accompanying  balance sheet of Drexel Burnham  Lambert Real
Estate  Associates  II as of December 31, 2004,  and the related  statements  of
operations,  changes in partners' capital (deficiency),  and cash flows for each
of the two  years  in the  period  ended  December  31,  2004.  These  financial
statements  are  the  responsibility  of  the  Partnership's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  We were not engaged to perform an
audit of the Partnership's internal control over financial reporting.  Our audit
included  consideration of internal control over financial  reporting as a basis
for designing audit  procedures that are appropriate in the  circumstances,  but
not for the  purpose  of  expressing  an  opinion  on the  effectiveness  of the
Partnership's internal control over financial reporting. Accordingly, we express
no such opinion.  An audit also includes  examining,  on a test basis,  evidence
supporting the amounts and  disclosures in the financial  statements,  assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Drexel Burnham  Lambert Real
Estate Associates II at December 31, 2004, and the results of its operations and
its cash flows for each of the two years in the period ended  December 31, 2004,
in  conformity  with  accounting  principles  generally  accepted  in the United
States.


                                                            /s/Ernst & Young LLP


Greenville, South Carolina
March 29, 2005


<PAGE>





                  DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

                                  BALANCE SHEET
                        (in thousands, except unit data)

                                December 31, 2004
<TABLE>
<CAPTION>

Assets
<S>                                                                       <C>
  Cash and cash equivalents                                               $ 99
  Receivables and deposits                                                   128
  Other assets                                                               208
  Restricted escrows                                                          15
  Investment property (Notes C and F):
       Land                                               $ 1,287
       Buildings and related personal property              7,644
                                                            8,931
       Less accumulated depreciation                       (6,781)         2,150
                                                                         $ 2,600

Liabilities and Partners' Capital (Deficiency)

Liabilities
  Tenant security deposit liabilities                                     $ 81
  Other liabilities                                                           61
  Due to affiliates (Note B)                                                 283
  Mortgage notes payable (Note C)                                          5,070

Partners' Capital (Deficiency)
  General partner                                           $ 46
  Limited partners (37,273 units issued
       and outstanding)                                    (2,941)        (2,895)
                                                                         $ 2,600

                   See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>



                  DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

                            STATEMENTS OF OPERATIONS
                      (in thousands, except per unit data)
<TABLE>
<CAPTION>

                                                                     Years Ended
                                                                    December 31,
                                                                2004          2003

Revenues:
<S>                                                           <C>           <C>
  Rental income                                               $ 1,649       $ 1,602
  Other income                                                     79            94
  Casualty gain (Note H)                                           37            --
     Total revenues                                             1,765         1,696

Expenses:
  Operating                                                       761           609
  General and administrative                                      110           107
  Depreciation                                                    161           160
  Interest                                                        392           366
  Property taxes                                                  181           196
     Total expenses                                             1,605         1,438

Net income (Note E)                                            $ 160         $ 258

Net income allocated to general partner (1%)                    $ 2           $ 3
Net income allocated to limited partners (99%)                    158           255
                                                               $ 160         $ 258

Net income per limited partnership unit                        $ 4.24        $ 6.84

Distributions per limited partnership unit                      $ --        $ 47.49

                   See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>


                  DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

              STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIENCY)
                        (in thousands, except unit data)

<TABLE>
<CAPTION>


                                        Limited
                                       Partnership    General      Limited
                                          Units       Partner     Partners      Total

<S>                                       <C>           <C>        <C>         <C>
Original capital contributions            37,273        $ 1        $18,637     $18,638

Partners' capital (deficiency) at
  December 31, 2002                       37,273        $ 41       $(1,584)    $(1,543)

Distributions to limited partners             --           --       (1,770)     (1,770)

Net income for the year
  ended December 31, 2003                     --            3          255         258

Partners' capital (deficiency) at
  December 31, 2003                       37,273           44       (3,099)     (3,055)

Net income for the year
  ended December 31, 2004                     --            2          158         160

Partners' capital (deficiency) at
  December 31, 2004                       37,273        $ 46       $(2,941)    $(2,895)

                   See Accompanying Notes to Financial Statements
</TABLE>



<PAGE>


                  DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

                            STATEMENTS OF CASH FLOWS
                                 (in thousands)
<TABLE>
<CAPTION>

                                                                   Years Ended December 31,
                                                                       2004         2003

Cash flows from operating activities:
<S>                                                                    <C>          <C>
  Net income                                                           $ 160        $ 258
  Adjustments to reconcile net income to net cash provided
   by operating activities:
     Depreciation                                                         161          160
     Amortization of loan costs                                            11           10
     Casualty gain                                                        (37)          --
     Change in accounts:
      Receivables and deposits                                           (116)           3
      Other assets                                                         --           (5)
      Accounts payable                                                    (41)          26
      Tenant security deposit payable                                     (15)          16
      Due to affiliates                                                    53           17
      Other liabilities                                                    12           24
          Net cash provided by operating activities                       188          509

Cash flows from investing activities:
  Property improvements and replacements                                 (292)        (114)
  Net deposits to restricted escrow accounts                               --          (15)
  Insurance proceeds received                                              37           --
          Net cash used in investing activities                          (255)        (129)

Cash flows from financing activities:
  Payments on mortgage notes payable                                     (169)        (133)
  Proceeds from mortgage note payable                                      --        1,400
  Loan costs paid                                                          --          (50)
  Distributions to partners                                                --       (1,770)
  Advances from affiliates                                                213           --
          Net cash provided by (used in) financing activities              44         (553)

Net decrease in cash and cash equivalents                                 (23)        (173)

Cash and cash equivalents at beginning of year                            122          295
Cash and cash equivalents at end of year                               $ 99         $ 122

Supplemental disclosure of cash flow information:
  Cash paid for interest                                               $ 379        $ 351

                 See Accompanying Notes to Financial Statements
</TABLE>

<PAGE>

                  DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II

                          NOTES TO FINANCIAL STATEMENTS

                                December 31, 2004


Note A - Organization and Significant Accounting Policies

Organization:

Drexel  Burnham  Lambert  Real  Estate  Associates  II  (the   "Partnership"  or
"Registrant") was organized as a limited partnership under the laws of the State
of New York pursuant to a Certificate of Limited  Partnership  dated November 2,
1983. The Partnership Agreement provides that the Partnership is to terminate on
December 31, 2032,  unless terminated prior to such date. The general partner of
the Partnership is DBL Properties  Corporation ("DBL" or the "General Partner"),
an  affiliate  of Apartment  Investment  and  Management  Company  ("AIMCO"),  a
publicly traded real estate investment trust.

As of December 31, 2004, the Partnership  owns and operates  Presidential  House
Apartments,  a  residential  apartment  complex  located in North  Miami  Beach,
Florida.

Use of Estimates:

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

Fair Value of Financial Instruments:

SFAS No.  107,  "Disclosures  about Fair  Value of  Financial  Instruments",  as
amended by SFAS No. 119, "Disclosures about Derivative Financial Instruments and
Fair  Value  of  Financial  Instruments",  requires  disclosure  of  fair  value
information  about  financial  instruments,  whether  or not  recognized  in the
balance sheet, for which it is practicable to estimate fair value. Fair value is
defined in the SFAS as the amount at which the instruments could be exchanged in
a  current  transaction  between  willing  parties,  other  than in a forced  or
liquidation  sale.  The  Partnership  believes  that the carrying  amount of its
financial  instruments (except for long-term debt) approximates their fair value
due to the short term maturity of these instruments.  The Partnership  estimates
the fair value of its long-term  debt by  discounting  future cash flows using a
discount rate commensurate  with that currently  believed to be available to the
Partnership for similar term, fully amortizing long-term debt. The fair value of
the Partnership's long term debt at the Partnership's incremental borrowing rate
is approximately $5,502,000.

Cash and Cash Equivalents:

Cash and cash  equivalents  include cash on hand and in banks. At certain times,
the amount of cash deposited at a bank may exceed the limit on insured deposits.
Cash  balances  included  approximately  $86,000 at  December  31, 2004 that are
maintained by an affiliated  management company on behalf of affiliated entities
in cash concentration accounts.

Restricted Escrows:

At the time the second mortgage on Presidential  House  Apartments was obtained,
the  Partnership  was  required to  establish a repair  escrow of  approximately
$15,000 with the lender in order to complete listed repairs at the property. The
balance in the repair  escrow  account at  December  31,  2004 is  approximately
$15,000.

Tenant Security Deposits:

The Partnership  requires security deposits from lessees for the duration of the
lease and such deposits are included in receivables  and deposits.  Deposits are
refunded when the tenant vacates,  provided the tenant has not damaged the space
and is current on rental payments.

Investment Property:

Investment  property  consists of one  apartment  complex and is stated at cost.
Acquisition  fees are  capitalized  as a cost of real  estate.  The  Partnership
capitalizes  all  expenditures  in  excess of $250  that  clearly  relate to the
acquisition and  installation of real and personal  property  components.  These
expenditures  include costs incurred to replace  existing  property  components,
costs  incurred  to add a material  new  feature to a  property,  and costs that
increase  the useful life or service  potential of a property  component.  These
capitalized   costs  are  depreciated   over  the  useful  life  of  the  asset.
Expenditures for ordinary repairs,  maintenance and apartment turnover costs are
expensed as incurred.

In accordance  with SFAS No. 144,  "Accounting for the Impairment or Disposal of
Long-Lived  Assets," the  Partnership  records  impairment  losses on long-lived
assets used in operations when events and circumstances indicate that the assets
might be impaired and the  undiscounted  cash flows estimated to be generated by
those assets are less than the carrying amounts of those assets.  No adjustments
for  impairment of value were  recorded in the years ended  December 31, 2004 or
2003.

Depreciation:

Depreciation is calculated by the straight-line  method over the estimated lives
of the investment property and related personal property. For Federal income tax
purposes, the accelerated cost recovery method is used for real property over 19
years for additions  after May 8, 1985,  and before January 1, 1987. As a result
of the Tax Reform Act of 1986,  for  additions  after  December  31,  1986,  the
modified  accelerated  cost recovery method is used for depreciation of (1) real
property  additions over 27.5 years, and (2) personal property  additions over 5
years.

Deferred Costs:

Loan  costs  of  approximately  $208,000,   less  accumulated   amortization  of
approximately $41,000, are included in other assets. The loan cost are amortized
over the terms of the  related  loan  agreements.  Amortization  expense for the
years ended  December 31, 2004 and 2003 was  approximately  $11,000 and $10,000,
respectively, and is included in interest expense on the accompanying statements
of operations.  Amortization expense is expected to be approximately $11,000 for
each of the years 2005 through 2009.

Leasing   commissions  and  other  direct  costs  incurred  in  connection  with
successful  leasing  efforts are  deferred and  amortized  over the terms of the
related leases. Amortization of these costs is included in operating expenses.

Leases:

The Partnership generally leases apartment units for twelve-month terms or less.
The Partnership will offer rental concessions during particularly slow months or
in response  to heavy  competition  from other  similar  complexes  in the area.
Rental income attributable to leases, net of any concessions, is recognized on a
straight-line  basis over the term of the lease.  The Partnership  evaluates all
accounts  receivable  from  residents and  establishes  an allowance,  after the
application of security deposits,  for accounts greater than 30 days past due on
current tenants and all receivables due from former tenants.

Advertising Costs:

Advertising  costs of  approximately  $37,000  in 2004 and  $22,000 in 2003 were
charged to expense as incurred and are included in operating expenses.

Segment Reporting:

SFAS  No.  131,   "Disclosure  about  Segments  of  an  Enterprise  and  Related
Information"  established standards for the way that public business enterprises
report information about operating  segments in annual financial  statements and
requires that those  enterprises  report  selected  information  about operating
segments in interim financial reports.  SFAS No. 131 also established  standards
for related disclosures about products and services, geographic areas, and major
customers.  As defined in SFAS No. 131, the  Partnership has only one reportable
segment.

Note B - Transactions with Affiliated Parties

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for payments to affiliates for services and
for  reimbursement  of certain  expenses  incurred by  affiliates of the General
Partner on behalf of the Partnership.

Affiliates  of the  General  Partner  receive  5% of  gross  receipts  from  the
Partnership's  residential  property for providing property management services.
The Partnership  paid to such affiliates  approximately  $86,000 and $84,000 for
the years ended December 31, 2004 and 2003,  respectively,  which is included in
operating expenses.

An affiliate of the General  Partner charged the  Partnership  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $80,000 and
$64,000 for the years ended December 31, 2004 and 2003, respectively,  which are
included in general and  administrative  expenses and investment  property.  The
portion of these  reimbursements  included in investment  property for the years
ended  December  31, 2004 and 2003 are fees related to  construction  management
services  provided  by an  affiliate  of the  General  Partner of  approximately
$22,000 and $1,000 for the years ended December 31, 2004 and 2003, respectively.
The construction management service fees are calculated based on a percentage of
current   additions  to  the   investment   property.   At  December  31,  2004,
approximately  $68,000 was owed for accountable  administrative  expenses and is
included in due to affiliates.

During the year ended  December  31, 2004,  an affiliate of the General  Partner
advanced the  Partnership  approximately  $213,000.  These advances were made in
accordance with the terms of the Partnership  Agreement.  The advances were made
to cover real estate taxes and  accounts  payable.  At December  31,  2004,  the
balance of the advances was approximately  $215,000,  including accrued interest
of  approximately  $2,000,  which  is  included  in  due  to  affiliates  on the
accompanying balance sheet. Interest is charged at the prime rate plus 2% (7.25%
at December 31, 2004).  Interest expense of approximately  $2,000 was recognized
during the year ended  December  31,  2004.  There were no advances  outstanding
during 2003.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2004 and 2003, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $25,000  and  $27,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 16,647 limited  partnership  units
(the "Units") in the Partnership representing 44.66% of the outstanding units at
December  31,  2004.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  In this regard, on February
16, 2005 AIMCO Properties,  L.P.  commenced a tender offer to purchase 17,572.22
Units at a price of  $146.00  per Unit.  Such offer  expired on March 28,  2005.
Pursuant to this offer, AIMCO acquired 1,736 units.  Pursuant to the Partnership
Agreement  unitholders  holding a  majority  of the Units are  entitled  to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove  the  General  Partner.  As a result  of its  ownership  of 44.66% of the
outstanding  Units at  December  31,  2004,  AIMCO and its  affiliates  are in a
position to influence  all voting  decisions  with  respect to the  Partnership.
Although the General  Partner owes fiduciary  duties to the limited  partners of
the Partnership,  the General Partner also owes fiduciary duties to AIMCO as its
sole  stockholder.  As a result,  the duties of the General Partner,  as general
partner, to the Partnership and its limited partners may come into conflict with
the duties of the General Partner to AIMCO as its sole stockholder.

Note C - Mortgage Notes Payable

The principal terms of the mortgage notes payable are as follows:
<TABLE>
<CAPTION>

                                Principal Monthly
                               Balance At Payment
                          December 31,       Including      Interest       Maturity
Property                      2004           Interest         Rate           Date
                                 (in thousands)
<S>                         <C>                 <C>           <C>          <C>   <C>
Presidential House          $ 3,747             $   35        7.96%        07/01/20
Presidential House
 2nd mortgage                 1,323                 11        5.55%        07/01/20
  Total                     $ 5,070             $   46
</TABLE>

The mortgage notes payable are fixed rate mortgages  that are  non-recourse  and
are secured by a pledge of the Partnership's  rental property and by a pledge of
revenues from the respective rental property. The mortgage notes payable include
a prepayment penalty if repaid prior to maturity.  Further, the property may not
be sold subject to existing indebtedness.

On May 30, 2003, the Partnership entered into a second mortgage for Presidential
House   Apartments.   The  second  mortgage  is  in  the  principal   amount  of
approximately  $1,400,000  and has a stated  interest  rate of 5.55% per  annum.
Payments of principal and interest of approximately $11,000 are due on the first
day of each month  commencing  July 2003 until July 2020, at which time the note
is scheduled to be fully amortized.  Capitalized loan costs,  which are included
in other assets,  incurred with the second mortgage were approximately  $50,000,
and are being amortized over the life of the mortgage note payable.

Scheduled  principal  payments  of the  mortgage  notes  payable  subsequent  to
December 31, 2004, are as follows (in thousands):

                                   2005          $ 182
                                   2006             196
                                   2007             211
                                   2008             226
                                   2009             244
                                Thereafter        4,011
                                                $ 5,070

Note D - Partners' Capital

Pursuant to a public  offering,  37,273 limited  partnership  units were sold at
$500 per unit. The  calculation of net income per limited  partner unit is based
on 37,273 units outstanding.

For income tax purposes the limited  partners share 99% and the General  Partner
1%  (subordinated  as defined in the  partnership  agreement)  in all profits or
losses from operations until the limited partners have received an 8% cumulative
preferred  return on their invested  capital.  Thereafter,  the limited partners
share 90% and the  General  Partner  shares 10% in the  profits  or losses  from
operations.

Cash  distributions  from sales or  refinancings,  if any,  shall be made to the
partners to the extent available and, as more fully described in the partnership
agreement,  as follows:  first,  to each partner in an amount  equivalent to the
positive  amount of such partner's  capital  account on the date of distribution
after adjustment;  second,  to the limited partners,  until the limited partners
have received an amount equal to their original invested capital;  third, 99% to
the limited partners equal to any unpaid preferred return arrearage; and fourth,
as to any excess, 85% to the limited partners and 15% to the General Partner.

Distributions  in  liquidation  to the  partners  shall  be  made  pro  rata  in
accordance with the partners' capital accounts.

In accordance with the Agreement of Limited  Partnership,  limited  partners are
entitled  to  receive an 8%  cumulative  preferred  return on their  unrecovered
invested  capital.  No  distributions  have been made or accrued to the  General
Partner, since the limited partners must receive their original invested capital
plus any preferred return arrearage before payment to the General Partner. As of
December 31, 2004, the unpaid preferred return arrearage  totaled  approximately
$10,798,000.

Note E - Income Taxes

The Partnership has received a ruling from the Internal  Revenue Service that it
will  be  classified  as  a  partnership   for  Federal   income  tax  purposes.
Accordingly,  no provision for income taxes is made in the financial  statements
of the Partnership. Taxable income or loss of the Partnership is reported in the
income tax returns of its partners.

A  reconciliation  of the net income  per the  financial  statements  to the net
taxable income to partners is as follows (in thousands, except unit data):

                                                    Years Ended December 31,
                                                        2004         2003

      Net income as reported                           $  160       $  258
      Depreciation and amortization differences            28           26
      Other                                               (24)         (30)
      Casualty                                            (37)          --
      Federal net taxable income                       $  127       $  254

      Federal taxable income per limited
        partnership unit                               $ 3.37       $ 6.74

The following is a reconciliation between the Partnership's reported amounts and
Federal tax basis of net assets and liabilities(in thousands):

                                                         2004

      Net liabilities as reported                      $ (2,895)
        Fixed assets                                       (214)
        Accumulated depreciation                            174
         Syndication costs                                2,051
         Other assets & liabilities                         (17)

      Net liabilities - tax basis                      $   (901)

Note F - Investment Property and Accumulated Depreciation

<TABLE>
<CAPTION>

                                                 Initial Cost
                                                To Partnership
                                                (in thousands)
                                                         Buildings          Cost
                                                        and Related     Capitalized
                                                         Personal      Subsequent to
Description              Encumbrances        Land        Property       Acquisition
                        (in thousands)                                 (in thousands)

<S>                         <C>            <C>            <C>             <C>
Presidential House          $ 5,070        $ 1,510        $ 6,037         $ 1,384
</TABLE>

<TABLE>
<CAPTION>

                              Gross Amount At Which
                                    Carried
                              At December 31, 2004
                                 (in thousands)

                       Buildings
                      And Related
                       Personal             Accumulated     Year of     Date   Depreciable
Description    Land    Property    Total    Depreciation  Construction Acquired    Life
                                           (in thousands)
Presidential
<S>           <C>       <C>       <C>         <C>          <C>  <C>    <C>     <C>
  House       $ 1,287   $ 7,644   $ 8,931     $ 6,781      1967-1974   10/84   5-31.5 yrs
</TABLE>

Reconciliation of investment property and accumulated depreciation:

                                              December 31,
                                           2004           2003
                                             (in thousands)
Investment Property
Balance at beginning of year             $ 8,666        $ 8,552
  Property improvements                      292            114
  Disposal of property                       (27)            --
Balance at end of year                     8,931          8,666

Accumulated Depreciation
Balance at beginning of year             $ 6,647        $ 6,487
  Additions charged to expense               161            160
  Disposal of property                       (27)            --
Balance at end of year                   $ 6,781        $ 6,647

The  aggregate  cost of the real  estate  for  Federal  income tax  purposes  at
December  31,  2004  and  2003,  is  approximately  $8,717,000  and  $8,462,000,
respectively. The accumulated depreciation taken for Federal income tax purposes
at December  31, 2004 and 2003,  is  approximately  $6,607,000  and  $6,474,000,
respectively.

Note G - Distribution to Limited Partner

In prior  years,  the  transfer  agent,  an  affiliate  of the General  Partner,
inadvertently made limited partner  distributions to an incorrect party.  During
the year ended  December 31, 2004,  payments were made to the correct  investor.
The   Partnership   has   recognized   approximately   $15,000  in  general  and
administrative  expense on the accompanying  statement of operations as a result
of this error.

Note H - Casualty Events

In December  2003,  Presidential  House  Apartments  suffered fire damage to six
apartments  units.  Insurance  proceeds of  approximately  $37,000 were received
during the year ended December 31, 2004. The  Partnership  recognized a casualty
gain of  approximately  $37,000  during the year ended  December 31, 2004 as the
damaged assets were fully depreciated.

Note I - Property Tax Refund

During 2004,  the  Partnership  appealed the  assessed  value of the  investment
property.  During  the  fourth  quarter  of 2004,  the  Partnership  recorded  a
receivable of  approximately  $30,000 to reflect the expected refund of property
taxes related to 2004. Subsequent to December 31, 2004, the Partnership received
approximately $30,000 as a refund of property taxes paid during the year.

Note J - Contingencies

As a result of a previously  disclosed  complaint filed on August 8, 2003 and an
amended  complaint filed March 5, 2004, AIMCO Properties L.P. and NHP Management
Company,  both affiliates of the General Partner, are defendants in an action in
the United States  District  Court,  District of Columbia.  The plaintiffs  have
styled their complaint as a collective action under the Fair Labor Standards Act
("FLSA") and seek to certify state subclasses in California,  Maryland,  and the
District of Columbia. Specifically, the plaintiffs contend that AIMCO Properties
L.P. failed to compensate  maintenance  workers for time that they were required
to be "on-call." Additionally, plaintiffs allege AIMCO Properties L.P. failed to
comply  with the FLSA in  compensating  maintenance  workers  for time that they
worked in responding to a call while  "on-call."  The  defendants  have filed an
answer to the amended complaint denying the substantive  allegations.  Discovery
relating to the certification of the collective  action has concluded.  Briefing
concerning the  certification  of the  collective  action will commence in March
2005.  Although the outcome of any  litigation is uncertain,  AIMCO  Properties,
L.P.  does not believe  that the ultimate  outcome will have a material  adverse
effect on its  financial  condition  or results of  operations.  Similarly,  the
General Partner does not believe that the ultimate  outcome will have a material
adverse  effect  on  the  Partnership's   financial   condition  or  results  of
operations.

The  Partnership  is unaware of any pending or  outstanding  litigation  matters
involving it or its investment property that are not of a routine nature arising
in the ordinary course of business.

Environmental

Various  Federal,  state and local laws subject  property owners or operators to
liability for management,  and the costs of removal or  remediation,  of certain
hazardous  substances  present on a property.  Such laws often impose  liability
without regard to whether the owner or operator knew of, or was responsible for,
the release or presence of the  hazardous  substances.  The  presence of, or the
failure to manage or remedy properly,  hazardous substances may adversely affect
occupancy at affected  apartment  communities and the ability to sell or finance
affected properties.  In addition to the costs associated with investigation and
remediation  actions brought by government  agencies,  the presence of hazardous
substances  on a  property  could  result in claims by  private  plaintiffs  for
personal injury,  disease,  disability or other  infirmities.  Various laws also
impose  liability for the cost of removal,  remediation or disposal of hazardous
substances  through a  licensed  disposal  or  treatment  facility.  Anyone  who
arranges for the disposal or treatment of hazardous  substances  is  potentially
liable  under such laws.  These laws often impose  liability  whether or not the
person arranging for the disposal ever owned or operated the disposal  facility.
In connection with the ownership and operation of its property,  the Partnership
could  potentially be liable for  environmental  liabilities or costs associated
with its property.

Mold

The Partnership is aware of lawsuits  against owners and managers of multifamily
properties asserting claims of personal injury and property damage caused by the
presence of mold, some of which have resulted in substantial  monetary judgments
or settlements. The Partnership has only limited insurance coverage for property
damage loss claims  arising from the  presence of mold and for  personal  injury
claims  related  to  mold  exposure.  Affiliates  of the  General  Partner  have
implemented a national  policy and  procedures to prevent or eliminate mold from
its  properties  and the  General  Partner  believes  that these  measures  will
eliminate,  or at least minimize, the effects that mold could have on residents.
To date,  the  Partnership  has not incurred any material  costs or  liabilities
relating to claims of mold exposure or to abate mold conditions. Because the law
regarding  mold is unsettled and subject to change the General  Partner can make
no assurance that liabilities resulting from the presence of or exposure to mold
will not have a material adverse effect on the Partnership's financial condition
or results of operations.

SEC Investigation

As  previously  disclosed,  the  Central  Regional  Office of the United  States
Securities  and  Exchange   Commission   (the  "SEC")  is  conducting  a  formal
investigation relating to certain matters.  Although the staff of the SEC is not
limited  in the  areas  that it may  investigate,  AIMCO  believes  the areas of
investigation include AIMCO's miscalculated monthly net rental income figures in
third quarter 2003,  forecasted  guidance,  accounts payable,  rent concessions,
vendor  rebates,  capitalization  of payroll and certain  other  costs,  and tax
credit  transactions.  AIMCO is cooperating  fully. AIMCO is not able to predict
when the matter  will be  resolved.  AIMCO does not  believe  that the  ultimate
outcome  will  have a  material  adverse  effect on its  consolidated  financial
condition  or results of  operations.  Similarly,  the General  Partner does not
believe that the ultimate  outcome  will have a material  adverse  effect on the
Partnership's financial condition or results of operations.

<PAGE>


Item 8.     Changes in and Disagreements  with  Accountants  on  Accounting  and
            Financial Disclosures

            None.

Item 8A.    Controls and Procedures

(a) Disclosure Controls and Procedures.  The Partnership's management,  with the
participation of the principal executive officer and principal financial officer
of the General Partner,  who are the equivalent of the  Partnership's  principal
executive officer and principal financial officer,  respectively,  has evaluated
the  effectiveness of the Partnership's  disclosure  controls and procedures (as
such term is defined  in Rules  13a-15(e)  and  15d-15(e)  under the  Securities
Exchange  Act of 1934,  as amended  (the  "Exchange  Act")) as of the end of the
period covered by this report. Based on such evaluation, the principal executive
officer and  principal  financial  officer of the General  Partner,  who are the
equivalent  of the  Partnership's  principal  executive  officer  and  principal
financial  officer,  respectively,  have  concluded  that, as of the end of such
period, the Partnership's disclosure controls and procedures are effective.

(b)         Internal Control Over Financial  Reporting.  There have not been any
            changes  in  the  Partnership's   internal  control  over  financial
            reporting (as such term is defined in Rules  13a-15(f) and 15d-15(f)
            under the Exchange Act) during the fourth  quarter of 2004 that have
            materially affected,  or are reasonably likely to materially affect,
            the Partnership's internal control over financial reporting.

Item 8B.    Other Information

            None.


<PAGE>





                                    PART III

Item 9.     Directors,   Executive   Officers, Promoters and  Control   Persons,
            Compliance with Section 16(a) of the Exchange Act

Drexel  Burnham  Lambert  Real  Estate  Associates  II  (the   "Partnership"  or
"Registrant))   does  not  have  any  directors  or  officers.   Management  and
administrative  services are performed by DBL Properties  Corporation  ("DBL" or
the  "General  Partner")  and its  affiliates.  The General  Partner has general
responsibility  and  authority  in all  matters  affecting  the  business of the
Partnership.

The names of the  directors  and officers of DBL as of December 31, 2004,  their
ages and nature of all  positions  presently  held by them are set forth  below.
There are no family relationships between or among any officers and directors:

Martha L. Long                   45   Director and Senior Vice President
Harry G. Alcock                  42   Director and Executive Vice President
Miles Cortez                     61   Executive Vice President, General Counsel
                                       and Secretary
Patti K. Fielding                41   Executive Vice President
Paul J. McAuliffe                48   Executive Vice President and Chief
                                      Financial Officer
Thomas M. Herzog                 42   Senior Vice President and Chief Accounting
                                       Officer
Stephen B. Waters                43   Vice President

Martha L. Long was  appointed  as a Director of the  General  Partner in October
2004 and was appointed  Senior Vice President of the General Partner in February
2004.  Ms. Long has been with AIMCO since October 1998 and has served in various
capacities.  From 1998 to 2001,  Ms. Long served as Senior  Vice  President  and
Controller  of AIMCO and the General  Partner.  During  2002 and 2003,  Ms. Long
served as Senior Vice President of Continuous Improvement for AIMCO.

Harry G. Alcock was  appointed  as a Director of the General  Partner in October
2004 and was  appointed  Executive  Vice  President  of the  General  Partner in
February 2004 and has been Executive Vice President and Chief Investment Officer
of AIMCO since October  1999.  Prior to October 1999 Mr. Alcock served as a Vice
President  of AIMCO  from July 1996 to October  1997,  when he was  promoted  to
Senior Vice  President  Acquisitions  where he served until  October  1999.  Mr.
Alcock has had responsibility for acquisition and financing  activities of AIMCO
since July 1994.

Miles  Cortez was  appointed  Executive  Vice  President,  General  Counsel  and
Secretary of the General  Partner in February  2004 and of AIMCO in August 2001.
Prior to joining  AIMCO,  Mr. Cortez was the senior  partner of Cortez  Macaulay
Bernhardt  &  Schuetze  LLC,  a Denver  law firm,  from  December  1997  through
September 2001.

Patti K. Fielding was appointed  Executive  Vice President - Securities and Debt
of the General  Partner in  February  2004 and of AIMCO in  February  2003.  Ms.
Fielding  was  appointed  Treasurer  of  AIMCO in  January  2005.  Ms.  Fielding
previously  served as Senior Vice  President - Securities and Debt of AIMCO from
January 2000 to February 2003. Ms.  Fielding  joined AIMCO in February 1997 as a
Vice President.

Paul J. McAuliffe has been Executive Vice President and Chief Financial  Officer
of the General  Partner since April 2002. Mr.  McAuliffe has served as Executive
Vice  President of AIMCO since February 1999 and was appointed  Chief  Financial
Officer  of AIMCO in October  1999.  From May 1996  until he joined  AIMCO,  Mr.
McAuliffe was Senior Managing Director of Secured Capital Corp.

Thomas M.  Herzog was  appointed  Senior  Vice  President  and Chief  Accounting
Officer of the General  Partner in February  2004 and of AIMCO in January  2004.
Prior to  joining  AIMCO in January  2004,  Mr.  Herzog  was at GE Real  Estate,
serving  as Chief  Accounting  Officer & Global  Controller  from  April 2002 to
January 2004 and as Chief Technical Advisor from March 2000 to April 2002. Prior
to joining GE Real  Estate,  Mr.  Herzog was at  Deloitte & Touche LLP from 1990
until 2000.

Stephen B. Waters was appointed Vice  President of the General  Partner in April
2004. Mr. Waters previously served as a Director of Real Estate Accounting since
joining AIMCO in September 1999. Mr. Waters has responsibilities for real estate
and partnership accounting with AIMCO.

One or more of the above persons are also directors and/or officers of a general
partner (or general partner of a general partner) of limited  partnerships which
either have a class of  securities  registered  pursuant to Section 12(g) of the
Securities Exchange Act of 1934, or are subject to the reporting requirements of
Section  15(d) of such Act.  Further,  one or more of the above persons are also
directors and/or officers of Apartment Investment and Management Company and the
general  partner  of  AIMCO  Properties,  L.P.,  entities  that  have a class of
securities  registered  pursuant to Section 12(g) of the Securities Exchange Act
of 1934, or are subject to the reporting  requirements of Section 15 (d) of such
Act.

The board of  directors of the General  Partner  does not have a separate  audit
committee.  As such, the board of directors of the General Partner  fulfills the
functions of an audit  committee.  The board of directors  has  determined  that
Martha L. Long meets the requirement of an "audit committee financial expert".

The  directors  and  officers of the General  Partner  with  authority  over the
Partnership are all employees of subsidiaries of AIMCO. AIMCO has adopted a code
of ethics that applies to such  directors and officers that is posted on AIMCO's
website  (www.AIMCO.com).  AIMCO's  website is not  incorporated by reference to
this filing.

Item 10.    Executive Compensation

Neither the directors nor officers  received any  remuneration  from the General
Partner during the year ended December 31, 2004.

Item 11.    Security Ownership of Certain Beneficial Owners and Management

Except as noted below,  no person or entity was known by the  Partnership  to be
the  beneficial  owner of more than 5% of the Limited  Partnership  Units of the
Partnership as of December 31, 2004.

                                            Number
       Entity                              of Units            Percentage

       AIMCO IPLP, L.P.                         10                0.02%
         (an affiliate of AIMCO)
       AIMCO Properties L.P.                16,637               44.64%
         (an affiliate of AIMCO)

AIMCO IPLP, L.P. is indirectly  ultimately  owned by AIMCO. Its business address
is 55 Beattie Place, Greenville, South Carolina 29602.

AIMCO Properties LP is indirectly  ultimately  controlled by AIMCO. Its business
address is 4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

No director or officer of the General Partner owns any Units.

Item 12.    Certain Relationships and Related Transactions

The  Partnership  has no  employees  and depends on the General  Partner and its
affiliates for the management and administration of all Partnership  activities.
The Partnership  Agreement  provides for payments to affiliates for services and
for  reimbursement  of certain  expenses  incurred by  affiliates of the General
Partner on behalf of the Partnership.

Affiliates  of the  General  Partner  receive  5% of  gross  receipts  from  the
Partnership's  residential  property for providing property management services.
The Partnership  paid to such affiliates  approximately  $86,000 and $84,000 for
the years ended December 31, 2004 and 2003,  respectively,  which is included in
operating expenses.

An affiliate of the General  Partner charged the  Partnership  reimbursement  of
accountable  administrative  expenses  amounting  to  approximately  $80,000 and
$64,000 for the years ended December 31, 2004 and 2003, respectively,  which are
included in general and  administrative  expenses and investment  property.  The
portion of these  reimbursements  included in investment  property for the years
ended  December  31, 2004 and 2003 are fees related to  construction  management
services  provided  by an  affiliate  of the  General  Partner of  approximately
$22,000 and $1,000 for the years ended December 31, 2004 and 2003, respectively.
The construction management service fees are calculated based on a percentage of
current   additions  to  the   investment   property.   At  December  31,  2004,
approximately  $68,000 was owed for accountable  administrative  expenses and is
included in due to affiliates.

During the year ended  December  31, 2004,  an affiliate of the General  Partner
advanced the  Partnership  approximately  $213,000.  These advances were made in
accordance with the terms of the Partnership  Agreement.  The advances were made
to cover real estate taxes and  accounts  payable.  At December  31,  2004,  the
balance of the advances was approximately  $215,000,  including accrued interest
of  approximately  $2,000,  which  is  included  in  due  to  affiliates  on the
accompanying balance sheet. Interest is charged at the prime rate plus 2% (7.25%
at December 31, 2004).  Interest expense of approximately  $2,000 was recognized
during the year ended  December  31,  2004.  There were no advances  outstanding
during 2003.

The  Partnership  insures its  property up to certain  limits  through  coverage
provided by AIMCO which is  generally  self-insured  for a portion of losses and
liabilities  related to workers  compensation,  property  casualty  and  vehicle
liability.  The Partnership  insures its property above the AIMCO limits through
insurance policies obtained by AIMCO from insurers unaffiliated with the General
Partner.  During the years ended December 31, 2004 and 2003, the Partnership was
charged  by  AIMCO  and  its  affiliates   approximately  $25,000  and  $27,000,
respectively,  for  insurance  coverage and fees  associated  with policy claims
administration.

In addition to its  indirect  ownership of the general  partner  interest in the
Partnership,  AIMCO and its affiliates  owned 16,647 limited  partnership  units
(the "Units") in the Partnership representing 44.66% of the outstanding units at
December  31,  2004.  A number of these Units were  acquired  pursuant to tender
offers  made by  AIMCO  or its  affiliates.  It is  possible  that  AIMCO or its
affiliates will acquire  additional  Units in exchange for cash or a combination
of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO,
either through private  purchases or tender offers.  In this regard, on February
16, 2005 AIMCO Properties,  L.P.  commenced a tender offer to purchase 17,572.22
Units at a price of  $146.00  per Unit.  Such offer  expired on March 28,  2005.
Pursuant to this offer, AIMCO acquired 1,736 units.  Pursuant to the Partnership
Agreement,  unitholders  holding a majority  of the Units are  entitled  to take
action with  respect to a variety of matters that  include,  but are not limited
to,  voting on certain  amendments  to the  Partnership  Agreement and voting to
remove  the  General  Partner.  As a result  of its  ownership  of 44.66% of the
outstanding  Units at  December  31,  2004,  AIMCO and its  affiliates  are in a
position to influence  all voting  decisions  with  respect to the  Partnership.
Although the General  Partner owes fiduciary  duties to the limited  partners of
the Partnership,  the General Partner also owes fiduciary duties to AIMCO as its
sole  stockholder.  As a result,  the duties of the General Partner,  as general
partner, to the Partnership and its limited partners may come into conflict with
the duties of the General Partner to AIMCO as its sole stockholder.

Item 13.    Exhibits

            See Exhibit Index.

Item 14.    Principal Accountant Fees and Services

The General Partner has reappointed Ernst & Young LLP as independent auditors to
audit the financial  statements of the  Partnership for 2005. The aggregate fees
billed  for  services  rendered  by  Ernst & Young  LLP for  2004  and  2003 are
described below.

Audit Fees. Fees for audit services  totaled  approximately  $29,000 and $36,000
for 2004 and 2003,  respectively.  Fees for audit services also include fees for
the reviews of the Partnership's Quarterly Reports on Form 10-QSB.

Tax Fees. Fees for tax services totaled approximately $5,000 and $3,000 for 2004
and 2003, respectively.


<PAGE>


                                   SIGNATURES



In accordance with the  requirements of the Exchange Act, the Registrant  caused
this  report to be  signed on its  behalf  by the  undersigned,  thereunto  duly
authorized.




                           DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II


                         By:   DBL Properties Corporation
                               Its General Partner

                           By:   /s/Martha L. Long
                                 Martha L. Long
                                 Senior Vice President


                                 /s/Stephen B. Waters
                           By:   Stephen B. Waters
                                 Vice President

                           Date: March 30, 2005


In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  Registrant and in the capacities and on the
dates indicated.


/s/Martha L. Long             Director and Senior           Date: March 30, 2005
Martha L. Long                Vice President


/s/Harry G. Alcock            Director and Executive Vice   Date: March 30, 2005
Harry G. Alcock               President


/s/Stephen B. Waters          Vice President                Date: March 30, 2005
Stephen B. Waters


<PAGE>


                                  EXHIBIT INDEX


Exhibit No.

     3.1      Prospectus of the Partnership filed pursuant to rule 424(b), dated
              December 30, 1983 is hereby incorporated herein by reference.

     3.2      Supplement dated October 10, 1984 to Prospectus dated December 30,
              1983 is hereby incorporated herein by reference.

     3.3      Form  of  Agreement  of  Limited  Partnership  of the  Partnership
              reference is made to Exhibit A to the Prospectus.

     3.4      Certificate  of  Limited  Partnership  of the  Partnership,  which
              appears as Exhibit  3.2 to the  Registration  Statement  is hereby
              incorporated herein by the reference.

    10.3      Agreement  relating to purchase by the Partnership of Presidential
              House at Sky Lake in  North  Miami  Beach,  Florida,  for  which a
              Report on Form 8-K was filed with the  Commission  on  November 5,
              1984, is hereby incorporated herein by reference.

    10.10     Multifamily  Note  dated  June 29,  2000,  by and  between  Drexel
              Burnham   Lambert  Estate   Associates  II,  a  New  York  limited
              partnership,  and ARCS Commercial Mortgage Co., L.P., a California
              limited   partnership   is   incorporated   by  reference  to  the
              Registrant's  Quarterly Report on Form 10-QSB for the period ended
              June 30, 2000.

    10.11         a) Multifamily  Note dated May 30, 2003 between Drexel Burnham
                  Lambert Real Estate Associates II Limited Partnership and GMAC
                  Commercial Mortgage Corporation. (Incorporated by reference to
                  Form 8-K dated May 30, 2003).

            b)    Limited Guaranty dated May 30, 2003 by AIMCO Properties,  L.P.
                  for the  benefit  of  GMAC  Commercial  Mortgage  Corporation.
                  (Incorporated by reference to Form 8-K dated May 30, 2003).

            c)    Repair  Escrow  Agreement  dated May 30, 2003  between  Drexel
                  Burnham Lambert Real Estate Associates II Limited  Partnership
                  and GMAC Commercial  Mortgage  Corporation.  (Incorporated  by
                  reference to Form 8-K dated May 30, 2003).

            d)    Replacement  Reserve  Agreement  dated  May 30,  2003  between
                  Drexel  Burnham  Lambert  Real  Estate  Associates  II Limited
                  Partnership   and  GMAC   Commercial   Mortgage   Corporation.
                  (Incorporated by reference to Form 8-K dated May 30, 2003).

    31.1      Certification of equivalent of Chief Executive Officer pursuant to
              Securities  Exchange  Act Rules  13a-14(a)/15d-14(a),  as  Adopted
              Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    31.2      Certification of equivalent of Chief Financial Officer pursuant to
              Securities  Exchange  Act Rules  13a-14(a)/15d-14(a),  as  Adopted
              Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

    32.1      Certification  Pursuant  to 18 U.S.C.  Section  1350,  as  Adopted
              Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


<PAGE>



Exhibit 31.1


                                  CERTIFICATION


I, Martha L. Long, certify that:


1.    I have  reviewed  this  annual  report on Form  10-KSB  of Drexel  Burnham
      Lambert Real Estate Associates II;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

 5. The  small  business  issuer's  other  certifying   officer(s)  and  I  have
    disclosed,  based on our most recent  evaluation  of internal  control  over
    financial  reporting,  to the small business issuer's auditors and the audit
    committee of the small  business  issuer's  board of  directors  (or persons
    performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date: March 30, 2005

                                /s/Martha L. Long
                                Martha L. Long
                                Senior   Vice   President   of  DBL   Properties
                                Corporation,  equivalent of the chief  executive
                                officer of the Partnership


<PAGE>



Exhibit 31.2


                                  CERTIFICATION


I, Stephen B. Waters, certify that:


1.    I have  reviewed  this  annual  report on Form  10-KSB  of Drexel  Burnham
      Lambert Real Estate Associates II;

2.    Based on my knowledge,  this report does not contain any untrue  statement
      of a material fact or omit to state a material fact  necessary to make the
      statements made, in light of the circumstances under which such statements
      were made,  not  misleading  with  respect  to the period  covered by this
      report;

3.    Based on my  knowledge,  the  financial  statements,  and other  financial
      information  included  in this  report,  fairly  present  in all  material
      respects the financial condition,  results of operations and cash flows of
      the small  business  issuer as of, and for, the periods  presented in this
      report;

4.    The  small  business  issuer's  other  certifying  officer(s)  and  I  are
      responsible  for  establishing  and  maintaining  disclosure  controls and
      procedures (as defined in Exchange Act Rules  13a-15(e) and 15d-15(e)) for
      the small business issuer and have:

      (a)   Designed such  disclosure  controls and  procedures,  or caused such
            disclosure   controls  and  procedures  to  be  designed  under  our
            supervision,  to ensure that  material  information  relating to the
            small business issuer, including its consolidated  subsidiaries,  is
            made  known to us by  others  within  those  entities,  particularly
            during the period in which this report is being prepared;

      (b)   Evaluated  the   effectiveness   of  the  small  business   issuer's
            disclosure  controls and procedures and presented in this report our
            conclusions about the  effectiveness of the disclosure  controls and
            procedures, as of the end of the period covered by this report based
            on such evaluation; and

      (c)   Disclosed in this report any change in the small  business  issuer's
            internal  control over financial  reporting that occurred during the
            small  business  issuer's  most  recent  fiscal  quarter  (the small
            business  issuer's  fourth  fiscal  quarter in the case of an annual
            report) that has  materially  affected,  or is reasonably  likely to
            materially affect, the small business issuer's internal control over
            financial reporting; and

5.     The  small  business  issuer's  other  certifying  officer(s)  and I have
       disclosed,  based on our most recent  evaluation of internal control over
       financial  reporting,  to the small  business  issuer's  auditors and the
       audit  committee of the small  business  issuer's  board of directors (or
       persons performing the equivalent functions):

      (a)   All significant  deficiencies and material  weaknesses in the design
            or operation of internal control over financial  reporting which are
            reasonably  likely to adversely  affect the small business  issuer's
            ability  to  record,   process,   summarize  and  report   financial
            information; and

      (b)   Any fraud,  whether or not  material,  that  involves  management or
            other  employees who have a significant  role in the small  business
            issuer's internal control over financial reporting.

Date:  March 30, 2005

                              /s/Stephen B. Waters
                              Stephen B. Waters
                              Vice  President  of  DBL  Properties  Corporation,
                              equivalent of the chief  financial  officer of the
                              Partnership


<PAGE>



Exhibit 32.1


                          Certification of CEO and CFO
                       Pursuant to 18 U.S.C. Section 1350,
                             As Adopted Pursuant to
                   Section 906 of the Sarbanes-Oxley Act of 2002



In connection  with the Annual Report on Form 10-KSB of Drexel  Burnham  Lambert
Real Estate Associates II (the  "Partnership"),  for the year ended December 31,
2004 as filed with the  Securities  and Exchange  Commission  on the date hereof
(the "Report"), Martha L. Long, as the equivalent of the chief executive officer
of the  Partnership,  and  Stephen B.  Waters,  as the  equivalent  of the chief
financial  officer of the  Partnership,  each hereby  certifies,  pursuant to 18
U.S.C.  Section 1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley
Act of 2002, that, to the best of his knowledge:

      (1)   The Report fully complies with the  requirements of Section 13(a) or
            15(d) of the Securities Exchange Act of 1934; and

      (2)   The  information  contained in the Report  fairly  presents,  in all
            material respects, the financial condition and results of operations
            of the Partnership.


                                           /s/Martha L. Long
                                    Name:  Martha L. Long
                                    Date:  March 30, 2005


                                           /s/Stephen B. Waters
                                    Name:  Stephen B. Waters
                                    Date:  March 30, 2005



This  certification is furnished with this Report pursuant to Section 906 of the
Sarbanes-Oxley  Act of 2002 and shall not be deemed filed by the Partnership for
purposes of Section 18 of the Securities Exchange Act of 1934, as amended.