<PAGE>   1

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549
                                    FORM 10-Q
(Mark One)
             [X] Quarterly Report Under Section 13 or 15(d) of the
                         Securities Exchange Act of 1934
                                       or
          [ ] Transition Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                    for Quarterly Period Ended March 31, 1999
                         Commission file number 33-30312

                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP

               NORTH CAROLINA                                   56-1681116
       (State or other jurisdiction of                       (I.R.S. Employer
       incorporation or organization)                       Identification No.)

                       IJL Financial Center, P.O. Box 1012
                            Charlotte, NC 28201-1012
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (704) 379-9164
              (Registrant's telephone number, including area code)

                                 Not Applicable
              (Former name, former address and former fiscal year,
                          if changed since last report)

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

                                   Yes X No __



Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.

7,650 limited partnership units outstanding at May 13, 1999

                     Page 1 of 8 Sequentially Numbered Pages


<PAGE>   2


                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP
                            CONDENSED BALANCE SHEETS
                   AS OF MARCH 31, 1999, AND DECEMBER 31, 1998

<TABLE>
<CAPTION>
                                                         March 31,
                                                            1999            December 31,
                                                        (Unaudited)             1998
                                                        -----------         -----------
<S>                                                     <C>                 <C>        

     ASSETS:

Land Held for Sale                                      $ 6,534,310         $ 6,534,310
Cash and Cash Equivalents                                     2,711                 849
Other                                                        37,227              37,227
                                                        -----------         -----------

                                                        $ 6,574,248         $ 6,572,386
                                                        ===========         ===========




     LIABILITIES AND PARTNERS' EQUITY (DEFICIT):


Accrued Liabilities                                         193,680             183,879
Note Payable                                                175,000             170,655
                                                        -----------         -----------

                                                            368,680             354,534
                                                        -----------         -----------


Class A Limited Partners' Interest                        6,205,744           6,217,905
Subordinated Limited Partners' Interest                          88                  88
General Partners' Interest                                     (264)               (141)
                                                        -----------         -----------

                                                          6,205,568           6,217,852
                                                        -----------         -----------

                                                        $ 6,574,248         $ 6,572,386
                                                        ===========         ===========
</TABLE>

                  See Notes to Condensed Financial Statements

                                       2
<PAGE>   3


                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP
                       Condensed Statements of Operations

<TABLE>
<CAPTION>
                                             Three            Three
                                             Months          Months
                                             Ended            Ended
                                           March 31,        March 31,
                                              1999            1998
                                          (Unaudited)      (Unaudited)
                                          -----------      -----------
<S>                                       <C>              <C>     

INCOME:
  Interest Income                         $     23         $     25
                                          --------         --------
                                                23               25

EXPENSES:
  Professional and Legal Fees                6,665            9,412
  Property Tax Expense                          47               44
  Insurance Expense                              0                0
  General and Administrative Costs           1,925            1,071
  Interest Expense                           3,670            3,722
                                          --------         --------
                                          $ 12,307         $ 14,249
                                          --------         --------

NET LOSS                                   (12,284)         (14,224)
                                          ========         ========


NET LOSS ALLOCATION:

General Partners                              (123)            (142)
Class A Limited Partners                   (12,161)         (14,082)
                                          --------         --------
                                          ($12,284)        ($14,224)
                                          ========         ========


CLASS A LIMITED PARTNERSHIP
 UNITS OUTSTANDING                           7,650            7,650
                                          --------         --------

NET LOSS PER CLASS A UNIT                 ($  1.59)        ($  1.84)
                                          ========         ========
</TABLE>

                  See Notes to Condensed Financial Statements

                                       3
<PAGE>   4

                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP
               CONDENSED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      Subordinated
                                     General          Limited           Limited
                                    Partners          Partners           Partner           Total
                                   -----------       -----------       -----------      -----------
<S>                                <C>               <C>               <C>              <C>        

Partners' Equity (Deficit)
  at December 31, 1997             ($      141)      $ 6,217,905       $        88      $ 6,217,852

Net Loss for the Three Months
  Ended March 31, 1998                    (142)          (14,082)                0          (14,224)
                                   -----------       -----------       -----------      -----------

Partners' Equity (Deficit)
  at March 31, 1998                ($      283)      $ 6,203,823       $        88      $ 6,203,628
                                   ===========       ===========       ===========      ===========






Partners' Equity (Deficit)
  at December 31, 1998             ($      141)      $ 6,217,905       $        88      $ 6,217,852

Net Loss for the Three Months
  Ended March 31, 1999                    (123)          (12,161)                0          (12,284)
                                   -----------       -----------       -----------      -----------

Partners' Equity (Deficit)
  at March 31, 1999                ($      264)      $ 6,205,744       $        88      $ 6,205,568
                                   ===========       ===========       ===========      ===========
</TABLE>


                  See Notes to Condensed Financial Statements

                                       4
<PAGE>   5

                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP
                       CONDENSED STATEMENTS OF CASH FLOWS
               FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998

<TABLE>
<CAPTION>
                                                         Three Months        Three Months
                                                            Ended               Ended
                                                        March 31, 1999      March 31, 1998
                                                         (Unaudited)         (Unaudited)
                                                         -----------         -----------
<S>                                                      <C>                 <C>         

CASH FLOW FROM OPERATING
 ACTIVITIES:

Net Loss                                                 ($   12,284)        ($   14,224)

Adjustments to reconcile net loss to net
 cash used for operations:

 Increase in Accrued Liabilities                               9,801               3,767
 Increase in Other Assets                                          0                   0
                                                         -----------         -----------
                                                               9,801               3,767

 Net Cash Used for Operating Activities                       (2,483)              3,767
                                                         -----------         -----------

CASH FLOWS FROM FINANCING ACTIVITIES:

 Increase in Note Payable                                      4,345               7,324
                                                         -----------         -----------
 Net Cash Provided by Financing Activities                     4,345               7,324

 Increase (Decrease) in Cash and Cash Equivalents              1,862              (3,133)

Cash and Cash Equivalents at Beginning
 of Period                                                       849                   0
                                                         -----------         -----------

Cash and Cash Equivalents at End of Period               $     2,711         ($    3,133)
                                                         ===========         ===========
</TABLE>


                  See Notes to Condensed Financial Statements

                                       5
<PAGE>   6

                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP

               NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
                                 March 31, 1999


1.       BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three month period ended March 31, 1999, are not
necessarily indicative of the results that may be expected for the year to end
December 31, 1999.

2.       ORGANIZATION:

Interstate Land Investors II Limited Partnership ("Registrant" or "Partnership")
is a North Carolina limited partnership. The Partnership filed registration
statements in 1989 and 1990 and offered the sale of the limited partnership
interests to persons who were admitted as limited partners. The initial offering
became effective September 29, 1989, and was terminated November 3, 1989. The
post effective amendment was filed in August 1990, approved in November 1990,
and closed November 30, 1990. Capital contributions of $100 were received from
the general partners and $7,650,000 from the limited partners. The limited
partnership units were sold in $1,000 units. On May 13, 1999, there were 774
unit holders of record. The Partnership's business now consists of holding for
investment, disposing and otherwise dealing in 145 acres of undeveloped land
("the Property") located in York County, South Carolina. As of May 13, 1999, the
Partnership held all 145 acres of the Property.

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

1.  Liquidity and Capital Resources

As of March 31, 1999, the Registrant had $2,711 on hand in the form of cash and
cash equivalents. The Registrant has executed a note payable to the General
Partner in the amount of $175,000. The general partner plans to continue to fund
the operating cost of the Partnership through additional advances under the
note. The note will extend through the term of the partnership and accrue
interest at prime plus two percent.

Until the Registrant disposes of the Property, its only sources of additional
capital are additional loans and proceeds from the sale of resources on the
property.

2.       Results of Operations

The Registrant's net loss decreased from $14,224 for the three months ended
March 31, 1998, to $12,284 for the three months ended March 31, 1999. The change
is primarily due to the following:

Professional and legal fees decreased $2,747. This decrease reflects a
non-recurring fee paid in 1998 to perform a marketing analysis of the area.
General and administrative costs increased by $854 due to higher database
maintenance and SEC filing fees. All other costs were comparable with the 1998
first quarter.




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<PAGE>   7

The Year 2000 Issue

The Registrant determined that the potential consequences of year 2000 will not
have a material effect on business, results of operations, or financial
condition. This conclusion was reached after researching computer programs and
third party vendors that are currently used to manage this limited partnership.
The Registrant is not solely reliant upon outside systems or vendors for record
keeping. Information is on file in our offices which states that existing
computer software is Y2K compliant and that the third party vendor currently
utilized will be Y2K compliant by June 30, 1999. The computer hardware and
peripherals located in the Registrant's offices are also Y2K ready.

If necessary, the Registrant can revert to manual methods for bookkeeping, check
writing, preparation of financial statements and investor correspondence. Hard
copies of essential information are available and will continue to be available
well into the year 2000.


                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings

         None.

Item 2. Changes in Securities

         None.

Item 3. Defaults Upon Senior Securities

         None.

Item 4. Submissions of Matters to a vote of Securities Holders

None. There were no matters submitted for vote during the quarter covered by
this report.

Item 5. Other Information.

On October 31, 1998, the Partnership entered into a listing agreement with The
Crosland Group to sell the property. The property is listed for sale at
$8,866,000 in aggregate.

Effective April 1, 1999, Interstate/Johnson Lane merged into Wachovia
Corporation and officially changed its name to Wachovia Securities, Inc. The
Registrant will be an affiliate of Wachovia Securities, Inc., but not be part of
Wachovia Corporation's banking subsidiary. Personnel and offices will continue
to operate as usual.

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

(a)      Exhibits

                  EX-27    FINANCIAL DATA SCHEDULE (FOR SEC USE ONLY)



                                       7
<PAGE>   8

         (b)      Reports on Form 8-K

                  No reports on Form 8-K were required to be filed during the
         three months ended March 31, 1999.




                INTERSTATE LAND INVESTORS II LIMITED PARTNERSHIP

                                    SIGNATURE

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


                          INTERSTATE LAND INVESTORS II
                          LIMITED PARTNERSHIP
                          (Registrant)



                          BY:    /s/J. Christopher Boone
                                 -----------------------
                                 J. Christopher Boone
                                 ISC Realty Corporation,
                                 General Partner and Principal Executive
                                 Officer, Principal Financial Officer of the
                                 Registrant


DATE: May 17, 1999



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