<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)

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

For the quarterly period ended                  March 31, 2002                or
                              -----------------------------------------------

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

For the transition period from ______________________ to _______________________

Commission file number                       0-14463
                       ---------------------------------------------------------

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

           Georgia                                            58-1565512
------------------------------------------            --------------------------
(State or other jurisdiction of                            (I.R.S. Employer
incorporation or organization)                          Identification Number)

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

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

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

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

         Yes    X                        No  _____
              -----

<PAGE>

                                    FORM 10-Q

                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

                                      INDEX
<TABLE>
<CAPTION>
                                                                                                         Page No.
                                                                                                         --------
<S>                                                                                                      <C>
PART I. FINANCIAL INFORMATION

    Item 1.  Consolidated Financial Statements

             Consolidated Balance Sheets--March 31, 2002 and December 31, 2001                                3

             Consolidated Statements of (Loss) Income for the Three Months Ended
                 March 31, 2002 and 2001                                                                      4

             Consolidated Statements of Partners' Capital for the Three Months Ended March 31,
                 2002 and the Year Ended December 31, 2001                                                    5

             Consolidated Statements of Cash Flows for the Three Months Ended
                 March 31, 2002 and 2001                                                                      6

             Condensed Notes to Consolidated Financial Statements                                             7

    Item 2.  Management's Discussion and Analysis of Financial Condition and Results of
             Operations                                                                                      10

PART II.  OTHER INFORMATION                                                                                  14
</TABLE>

                                      -2-

<PAGE>

                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                   March 31,          December 31,
                                                                                     2002                2001
                                                                                   ------------       ------------
<S>                                                                                <C>                <C>
ASSETS:
    Real estate, at cost:
       Land                                                                        $  1,440,608       $  1,440,608
       Building and improvements, less accumulated depreciation
           of $6,023,030 in 2002 and $5,874,649 in 2001                               5,506,743          5,651,798
                                                                                   ------------       ------------
              Total real estate assets                                                6,947,351          7,092,406
    Investments in joint ventures (Note 2)                                            5,957,174          6,010,879
    Cash and cash equivalents                                                         8,407,260          8,587,586
    Accounts receivable                                                                 129,994            145,114
    Due from affiliates                                                                  74,020            123,772
    Prepaid expenses and other assets                                                   135,724            130,195
    Deferred lease acquisition costs                                                    200,956            197,558
                                                                                   ------------       ------------
              Total assets                                                         $ 21,852,479       $ 22,287,510
                                                                                   ============       ============

LIABILITIES AND PARTNERS' CAPITAL:
    Liabilities:
       Accounts payable and accrued expenses                                       $     22,947       $     52,876
       Due to affiliates                                                              1,806,825          1,795,903
       Refundable security deposits                                                     123,016            111,875
       Partnership distributions payable                                                278,176            251,701
       Minority interest                                                                 42,641             44,341
                                                                                   ------------       ------------
              Total liabilities                                                       2,273,605          2,256,696
                                                                                   ============       ============
    Partners' capital:
       Limited partners:
           Class A--98,716 units outstanding                                         19,528,343         19,831,902
           Class B--42,568 units outstanding                                             50,531            198,912
                                                                                   ------------       ------------
              Total partners' capital                                                19,578,874         20,030,814
                                                                                   ------------       ------------
              Total liabilities and partners' capital                              $ 21,852,479       $ 22,287,510
                                                                                   ============       ============
</TABLE>

      The accompanying notes are an integral part of these balance sheets.

                                       -3-

<PAGE>

                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

                    CONSOLIDATED STATEMENTS OF (LOSS) INCOME

<TABLE>
<CAPTION>
                                                                             Three Months Ended
                                                                       -------------------------------
                                                                         March 31,        March 31,
                                                                            2002            2001
                                                                       --------------  ---------------
<S>                                                                    <C>               <C>
REVENUES:
    Rental income                                                        $   262,843     $   228,753
    Interest income                                                           12,343         102,032
    Equity in income of joint ventures (Note 2)                               31,367          75,307
    Gain on sale of real estate                                                    0       1,161,788
                                                                       --------------    -------------
                                                                             306,553       1,567,880
                                                                       --------------    -------------

EXPENSES:
    Depreciation                                                             148,381         162,213
    Operating costs--rental properties, net of tenant reimbursements         190,491         163,063
    Legal and accounting                                                      48,582          15,837
    Partnership administration                                                34,345          18,026
    Management and leasing fees                                               26,077          29,247
    Computer costs                                                             3,262           1,200
                                                                       --------------    -------------
                                                                             451,138         389,586
                                                                       --------------    -------------

NET (LOSS) INCOME BEFORE MINORITY INTEREST                                  (144,585)      1,178,294
MINORITY INTEREST                                                                (98)         (3,968)
                                                                       --------------    -------------
NET (LOSS) INCOME                                                        $  (144,683)    $ 1,174,326
                                                                       ==============    =============

NET (LOSS) INCOME ALLOCATED TO CLASS A LIMITED PARTNERS                  $     3,698     $   737,440
                                                                       ==============    =============

NET INCOME ALLOCATED TO CLASS B LIMITED PARTNERS                         $  (148,381)    $   436,886
                                                                       ==============    =============

NET INCOME PER CLASS A LIMITED PARTNER UNIT                              $      0.04     $      7.47
                                                                       ==============    =============

NET (LOSS) INCOME PER CLASS B LIMITED PARTNER UNIT                       $     (3.49)    $     10.26
                                                                       ==============    =============

CASH DISTRIBUTION PER CLASS A LIMITED PARTNER UNIT                       $      3.11     $      2.66
                                                                       ==============    =============
</TABLE>

        The accompanying notes are an integral part of these statements

                                       -4-

<PAGE>
                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

                  CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL

                      FOR THE YEAR ENDED DECEMBER 31, 2001

                  AND FOR THE THREE MONTHS ENDED MARCH 31, 2002

<TABLE>
<CAPTION>
                                                          Limited Partners                 Total
                                            ------------------------------------------
                                                   Class A                Class B        Partners'
                                            ---------------------  -------------------
                                             Units      Amounts     Units    Amounts      Capital
                                            -------- ------------- ------- -----------  ------------
<S>                                          <C>      <C>           <C>     <C>         <C>
BALANCE, December 31, 2000                   98,716   $19,184,478   42,568  $ 114,132   $19,298,610

    Net income                                    0     1,649,997        0     84,780     1,734,777
    Partnership distribution                      0    (1,002,573)       0          0    (1,002,573)
                                            -------- ------------- ------- -----------  ------------
BALANCE, December 31, 2001                   98,716    19,831,902   42,568    198,912    20,030,814

    Net loss                                      0         3,698        0   (148,381)     (144,683)
    Partnership distributions                     0      (307,257)       0          0      (307,257)
                                            -------- ------------- ------- -----------  ------------
BALANCE, March 31, 2002                      98,716   $19,528,343   42,568  $  50,531   $19,578,874
                                            ======== ============= ======= ===========  ============
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       -5-

<PAGE>

                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                          Three Months Ended
                                                                                    -----------------------------
                                                                                     March 31,         March 31,
                                                                                       2002               2001
                                                                                    -------------   --------------
<S>                                                                                 <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net (loss) income                                                               $   (144,683)   $   1,174,326
                                                                                    -------------   --------------
    Adjustments to reconcile net (loss) income to net cash provided by
       (used in) operating activities:
           Equity in income of joint ventures                                            (31,367)         (75,307)
           Depreciation                                                                  148,381          162,213
           Bad debt expense                                                                    0           95,742
           Gain on sale of real estate assets                                                  0       (1,161,788)
           Changes in assets and liabilities:
              Accounts receivable                                                         15,120           24,349
              Deferred lease acquisition costs                                            (3,398)           6,393
              Prepaid expenses and other assets                                           (5,529)         (43,189)
              Accounts payable and accrued expenses                                      (29,929)         (64,635)
              Refundable security deposits                                                11,141          (46,482)
              Due to affiliates                                                           10,922           (4,246)
              Minority interest                                                               98            3,968
                                                                                    -------------   --------------
                 Total adjustments                                                       115,439       (1,102,982)
                                                                                    -------------   --------------
                 Net cash provided by (used in) operating activities                     (29,244)          71,344
                                                                                    -------------   --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
    Distributions received from joint ventures                                           134,824          157,949
    Proceeds from sale of real estate                                                          0        6,592,202
    Investment in real estate                                                             (3,326)          (6,364)
                                                                                    -------------   --------------
                 Net cash provided by investing activities                               131,498        6,743,787
                                                                                    -------------   --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
    Minority interest distributions                                                       (1,798)          (5,095)
    Partnership distributions paid                                                      (280,782)        (372,183)
                                                                                    -------------   --------------
                 Net cash used in financing activities                                  (282,580)        (377,278)
                                                                                    -------------   --------------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                                    (180,326)       6,437,853

CASH AND CASH EQUIVALENTS, beginning of year                                           8,587,586        2,268,774
                                                                                    -------------   --------------
CASH AND CASH EQUIVALENTS, end of period                                            $  8,407,260    $   8,706,627
                                                                                    =============   ==============
</TABLE>

        The accompanying notes are an integral part of these statements.

                                       -6-

<PAGE>

                            WELLS REAL ESTATE FUND I

                     (A Georgia Public Limited Partnership)

              CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                 MARCH 31, 2002

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     (a)  General

     Wells Real Estate Fund I (the "Partnership") is a Georgia public limited
     partnership with Leo F. Wells, III and Wells Capital, Inc. ("Wells
     Capital"), a Georgia corporation, serving as its General Partners. The
     Partnership was formed on April 26, 1984 for the purpose of acquiring,
     developing, constructing, owning, operating, improving, leasing, and
     otherwise managing income-producing commercial properties for investment
     purposes. The Partnership has two classes of limited partnership interests,
     Class A and Class B units. Limited partners may vote to, among other
     things, (a) amend the partnership agreement, subject to certain
     limitations, (b) change the business purpose or investment objectives of
     the Partnership, and (c) remove a general partner. A majority vote on any
     of the above described matters will bind the Partnership without the
     concurrence of the general partners. Each limited partnership unit has
     equal voting rights regardless of class.

     On September 6, 1984, the Partnership commenced a public offering of its
     limited partnership units pursuant to a Registration Statement filed on
     Form S-11 under the Securities Act of 1933. The Partnership terminated its
     offering on September 5, 1986 upon receiving and accepting gross proceeds
     of $35,321,000 for a total of 141,282 Class A and Class B limited partner
     units from 4,895 limited partners at $250 per unit.

     As of March 31, 2002, the Partnership owned interests in the following two
     properties directly: (i) Paces Pavilion, a medical office building located
     in Atlanta, Georgia, in which the Partnership owns an approximately 27%
     condominium interest, and (ii) Black Oak Plaza, a shopping center located
     in Knoxville, Tennessee.

            (THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK)

                                       -7-

<PAGE>

     As of March 31, 2002, the Partnership owned interests in the following 2
     properties through the affiliated joint ventures listed below:

<TABLE>
<CAPTION>
     --------------------------------------------------------------------------------------------------------------------
                  Joint Venture                       Joint Venture Partners                      Properties
                  -------------                       ----------------------                      ----------
     --------------------------------------------------------------------------------------------------------------------
     <S>                                      <C>                                      <C>
     Wells Baker Associates                   -        The Partnership                 1.  Peachtree Place
                                              -        Wells & Associates, Inc.*           A commercial office building
                                                                                           located in suburban Atlanta,
                                                                                           Georgia.

     --------------------------------------------------------------------------------------------------------------------
     Fund I-Fund II Tucker Associates         -        The Partnership                 2.  Heritage Place
                                              -        Fund II-IIOW Associates**           A retail shopping center and
                                                                                           commercial office complex
                                                                                           located in Tucker, Georgia
     --------------------------------------------------------------------------------------------------------------------
</TABLE>

     *  Wells & Associates, Inc. is affiliated with the Partnership through
        common management

     ** Fund II- IIOW Associates is a joint venture between Wells Real Estate
        Fund II and Wells Real Estate Fund II-OW.

     On January 11, 2001, the Partnership sold its 100% interest in the Crowe's
     Crossing property, a shopping center located in DeKalb County, Georgia, to
     an unrelated third-party.

     On October 1, 2001, Fund I-II-IIOW-VI-VII Associates, a joint venture among
     the Partnership, Fund II and IIOW Associates, Wells Real Estate Fund VI,
     L.P. and Wells Real Estate Fund VII, L.P. sold the Cherokee Commons
     property to an unrelated third-party. The Cherokee Commons property is a
     retail shopping center located in Cherokee County, Georgia.

     Each of the above properties was acquired on an all cash basis. For further
     information regarding the foregoing properties and joint ventures, refer to
     the report filed for the Partnership Form 10-K for the year ended December
     31, 2001.

     (b) Basis of Presentation

     The consolidated financial statements include the accounts of the
     Partnership and Wells Baker Associates. The Partnership's interest in Wells
     Baker Associates was approximately 90% for each of the periods presented.
     All significant intercompany balances have been eliminated in
     consolidation. Minority interest represents Wells & Associates, Inc.'s
     interest in Wells Baker Associates of approximately 10% for each of the
     periods presented.

     The consolidated financial statements of the Partnership have been prepared
     in accordance with instructions for Form 10-Q and do not include all of the
     information and footnotes required by generally accepted accounting
     principles ("GAAP") for complete financial statements. The quarterly
     statements included herein have not been examined by independent
     accountants. However, in the opinion of the General Partners, the
     statements for the unaudited interim periods presented include all
     adjustments that are of a normal and recurring nature and necessary to
     fairly present the results for those periods. Interim results for 2002 are
     not necessarily indicative of results for the year. For further
     information, refer to the financial statements and footnotes included in
     the report filed for the Partnership on Form 10-K for the year ended
     December 31, 2001.

                                       -8-

<PAGE>

     (c) Allocation of Net Income, Net Loss, and Gain on Sale

     Net income is defined as net income recognized by the Partnership,
     excluding deductions for depreciation and amortization. Net income, as
     defined, of the Partnership will be allocated each year in the same
     proportions that net cash from operations is distributed to the partners.
     To the extent the Partnership's net income in any year exceeds net cash
     from operations, it will be allocated 99% to the limited partners and 1% to
     the general partners.

     Net loss, depreciation, and amortization deductions for each fiscal year
     will be allocated as follows: (a) 99% to the Class B limited partners and
     1% to the general partners until their capital accounts are reduced to
     zero, (b) then to any partner having a positive balance in his/her capital
     account in an amount not to exceed such positive balance, and (c)
     thereafter to the general partners.

     Under the partnership agreement, gain on the sale or exchange of the
     Partnership's properties is allocated as follows: (a) first, to partners
     having negative capital accounts, if any, until all negative capital
     accounts have been restored to zero; (b) then to the limited partners in
     proportion to and to the extent of the excess of (i) each limited partner's
     adjusted capital contribution, plus a cumulative 15% per annum return on
     his/her adjusted capital contribution (16% for investments made before
     December 31, 1984), less the sum of all prior distributions of cash flow
     from operations previously made to such limited partner, over (ii) such
     limited partner's capital account balance as of the sale date; (c) then to
     the general partners in proportion to and to the extent of the excess of
     (i) each general partner's adjusted capital contribution, over (ii) such
     general partner's capital account balance as of the sale date; and (d)
     thereafter 85% to the limited partners and 15% to the general partners.

     (d) Distribution of Net Cash From Operations

     As defined by the partnership agreement, cash available for distributions
     is distributed quarterly on a cumulative non-compounded basis to the
     limited partners as follows:

          .    First, to the Class A limited partners until such limited
               partners have received distributions equal to a 9% per annum
               return on their respective adjusted capital contributions, as
               defined.

          .    Second, to the Class B limited partners until such limited
               partners have received distributions equal to a 9% per annum
               return on their respective adjusted capital contributions, as
               defined.

          .    Third, to the limited partners and the General Partners allocated
               on a basis of 90% and 10%, respectively.


2.   INVESTMENTS IN JOINT VENTURES

     (a) Basis of Presentation

     The Partnership does not have control over the operations of the joint
     ventures described in Note 1; however, it does exercise significant
     influence. Accordingly, investments in joint ventures are recorded using
     the equity method of accounting. For further information, refer to the
     report filed for the Partnership on Form 10-K for the year ended December
     31, 2001.


                                      -9-

<PAGE>
  (b) Summary of Operations

     The following information summarizes the operations of the unconsolidated
     joint ventures, in which the Partnership held ownership interests, for the
     three months ended March 31, 2002 and 2001:

<TABLE>
<CAPTION>
                                                                                                    Partnership's
                                           Total Revenues                Net Income              Share of Net Income
                                      ------------------------ ---------------------------- ---------------------------
                                         Three Months Ended          Three Months Ended           Three Months Ended
                                      ------------------------ ---------------------------- ---------------------------
                                       March 31,    March 31,      March 31,     March 31,     March 31,     March 31,
                                        2002          2001          2002           2001         2002           2001
                                      ----------  ------------ -------------  ------------  ------------  -------------
<S>                                   <C>         <C>          <C>            <C>           <C>           <C>
     Fund I-II Tucker Associates       $331,409     $337,369        $46,098       $59,652      $25,395       $32,862
     Fund I-II-IIOW-VI-VII
         Associates                           0      253,584         24,861       176,684        5,972        42,445
                                      ----------  ------------ -------------  ------------  ------------  -------------
                                       $331,409     $590,953        $70,959      $236,336      $31,367       $75,307
                                      ==========  ============ =============  ============  ============  =============
</TABLE>

3.   RECENT ACCOUNTING PRONOUNCEMENTS

     In June 2001, Statement of Financial Accounting Standard ("SFAS") No. 141,
     "Business Combinations" (effective beginning July 1, 2001) and SFAS 142,
     "Goodwill and Other Intangible Assets" (effective beginning January 1,
     2002) were issued. SFAS No. 141 prohibits pooling-of-interests accounting
     for acquisitions. SFAS No. 142 specifies that goodwill and some intangible
     assets will no longer be amortized and, instead, will be subject to
     periodic impairment testing. We believe that the adoption of SFAS No. 141
     and SFAS No. 142 will not have a significant impact on our financial
     statements.

     In August 2001, SFAS No. 143, "Accounting for Asset Retirement Obligations"
     (effective beginning January 1, 2003) and SFAS No. 144, "Accounting for the
     Impairment or Disposal of Long-Lived Assets" (effective beginning January
     1, 2002) were issued. SFAS No. 143 requires that entities recognize the
     fair value of a liability for an asset retirement obligation in the period
     in which it is incurred if a reasonable estimate of fair value can be made.
     SFAS No. 144 addresses financial accounting and reporting for the
     impairment of long-lived assets and for long-lived assets to be disposed of
     and supersedes SFAS No. 121, "Accounting for the Impairment of Long-Lived
     Assets and for Long-Lived Assets to be Disposed of". Among other factors,
     SFAS No. 144 establishes criteria beyond that previously specified in SFAS
     No. 121 to determine when a long-lived asset is to be considered held for
     sale. We believe that the adoption of SFAS No. 143 and SFAS No. 144 will
     not have a significant impact on our financial statements.

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

  The following discussion and analysis should be read in conjunction with the
  Partnership's accompanying financial statements and notes thereto.

  (a) Forward Looking Statements

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

                                      -10-

<PAGE>

(b) Results of Operations

Revenues
Gross revenues decreased to $306,553 for the three months ended March 31, 2002,
compared to $1,567,880 for the three months ended March 31, 2001, due to (i) the
gain recognized on the sale of the Crowe's Crossing property in the first
quarter of 2001, (ii) a decrease in equity in income of joint ventures resulting
from (a) the sale of the Cherokee Commons property during the third quarter of
2001 and (b) receivables due from tenants at Heritage Place, which were
written-off in 2002 and (iii) additional interest income in 2001 earned on the
proceeds from the sale of the Crowe's Crossing property resulting from higher
interest rates existing in 2001, partially offset by an increase in rental
income as a result of two tenants taking occupancy of previously vacant space at
Paces Pavilion in the fourth quarter of 2001.

Expenses
Total expenses increased to $451,138 for 2002 compared to $389,586 for 2001 due
to (i) increased legal fees related to the pending litigation discussed in Item
3 below, (ii) increased net operating costs resulting from higher occupancy at
Paces Pavilion and the related tenant reimbursements billings, which will
commence in 2003 in accordance with the terms of the new tenant leases, and
(iii) increased partnership administration costs related to the pending
litigation mentioned above and marketing of the Heritage Place Property, as
further discussed in the following section, partially offset by (i) a decrease
in depreciation expense and (ii) decreased management and leasing fees resulting
from the sale of the Crowe's Crossing property and reduced occupancy at Black
Oak Plaza during the preceding twelve months.

Distributions
The Partnership declared cash distributions to the limited partners holding
Class A Units of $3.11 and $2.66 per unit for the three months ended March 31,
2002 and 2001, respectively. No distributions have been paid to the limited
partners holding Class B Units or to the General Partners. Cash distributions
payable to the limited partners holding Class A Units are anticipated to decline
in 2002 and future years, as the Partnership's portfolio of properties is
reduced, which is further explained in the following section.

(c) Liquidity and Capital Resources

Net cash flows from operating activities decreased to $29,244 used for the three
months ended March 31, 2002, compared to $71,344 provided for the three months
ended March 31, 2001, primarily due to (i) the decrease in revenues and increase
in expenses described in the previous section, (ii) nonrecurring expenses
related to the sale of a portion of Peachtree Place in 2000, which were paid in
the first quarter of 2001, and (iii) a reduction in accounts receivable
collected in 2002 as a result of the sale of the Crowe's Crossing property. Net
cash provided by investing activities decreased to $131,498 for the three months
ended March 31, 2002, compared to $6,743,787 for the three months ended March
31, 2001, largely due to proceeds received in the first quarter of 2001 from the
sale of the Crowe's Crossing property. Net cash used in financing activities
decreased to $282,580 for three months ended March 31, 2002 from $377,278 for
the three months ended March 31, 2001 due to the corresponding decrease in cash
available for limited partner distributions resulting from the decrease in cash
flows provided by operating and investing activities. Accordingly, cash and cash
equivalents decreased to $8,407,260 as of March 31, 2002 from $8,587,586 as of
March 31, 2001.

As of March 31, 2002, the proceeds from the sales of a portion of Peachtree
Place, the Cherokee Commons property, and the Crowe's Crossing property have not
been distributed to the limited partners pending the results of the Consent
Solicitation Statement recently mailed to the limited partners and described in
more detail in the "Subsequent Events" section below.

Management estimates that the fair market value of each of the properties in
which the Partnership invests, either directly or through joint ventures,
exceeds the carrying value of the corresponding real estate assets on a held for
use basis under SFAS No. 121 and SFAS No. 144. Thus, no impairment losses have
been recorded. The Partnership recently decided to begin the process of selling
its properties. Currently, Heritage Place is being actively marketed for sale.
Upon finalizing negotiations, the real estate assets of Heritage Place would be
reclassified as `held for sale' and, in accordance with SFAS No. 121 and SFAS
No. 144, depreciation would be discontinued and the potential impairment of the
related real estate assets would be reassessed on a held for sale basis.
Management is not contractually or financially obligated to sell any of its
properties.

                                      -11-

<PAGE>

(d)  Subsequent Events

In April 2002, the Partnership mailed to the limited partners a Consent
Solicitation Statement dated April 9, 2002, requesting the consent to amend the
existing Partnership Agreement to authorize the General Partners to use, if they
determine in their judgment that such action is necessary, proper or desirable
to carry out the business of the Partnership, certain of the net sale proceeds
from the sale of other partnership properties to acquire on behalf of the
Partnership additional or all interests, including condominium interests, in
Paces Pavilion, a medical office building in which the Partnership currently
owns an approximately 27% condominium interest.

(e)  Inflation

The real estate market has not been affected significantly by inflation in the
past three years due to the relatively low inflation rate. Most tenant leases
contain provisions for common area maintenance, real estate tax and insurance
reimbursements from tenants either on a per square foot basis, or above a
certain allowance per square foot annually, which should reduce the
Partnership's exposure to increases in costs and other operating expenses
resulting from the impact of inflation. In addition, a number of the
Partnership's leases are for remaining terms of less than five years, which may
allow the Partnership to enter into new leases at higher base rental rates in
the event that market rental rates rise above the existing lease rates. There is
no assurance, however, that the Partnership would be able to replace existing
leases with new leases containing higher base rental rates.

(f) Critical Accounting Policies

The Partnership's accounting policies have been established and conformed to in
accordance with accounting principles generally accepted in the United States
("GAAP"). The preparation of financial statements in conformity with GAAP
requires management to use judgments in the application of accounting policies,
including making estimates and assumptions. These judgments may affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the dates of the financial statements presented and the
reported amounts of revenues and expenses during the respective reporting
periods. If our judgment or interpretation of the facts and circumstances
relating to various transactions had been different, it is possible that
different accounting policies would have been applied, thus, resulting in a
different presentation of our financial statements.

The accounting policies that we consider to be critical, in that they may
require complex judgment in their application or require estimates about matters
that are inherently uncertain, are discussed below. For further information
related to the Partnership's accounting policies, including the critical
accounting policies described below, refer to the report filed for the
Partnership on Form 10-K for the year ended December 31, 2001.


                                      -12-

<PAGE>

Straight-Lined Rental Revenues

The Partnership recognizes rental income generated from all leases on real
estate assets in which the Partnership has an ownership interest either directly
or through its investments in joint ventures on a straight-line basis over the
terms of the respective leases. Should tenants encounter financial difficulties
in future periods, the amounts recorded as receivables may not be fully
realized.

Operating Cost Reimbursements

The Partnership generally bills tenants for operating cost reimbursements either
directly or through its investments in joint ventures on a monthly basis at
amounts estimated largely based on actual prior period activity and the
respective tenant lease terms. Such billings are generally adjusted on an annual
basis to reflect reimbursements owed to the landlord based on the actual costs
incurred during the period and the respective tenant lease terms. Should tenants
encounter financial difficulties in future periods, the amounts recorded as
receivables may not be fully realized.

Real Estate

Management continually monitors events and changes in circumstances indicating
that the carrying amounts of the real estate assets in which the Partnership has
ownership interests through its investments in joint ventures may not be
recoverable. When such events or changes in circumstances are present,
management assesses the potential impairment by comparing the fair market value
of the underlying assets, estimated at amounts equal to the future undiscounted
operating cash flows expected to be generated from tenants over the life of the
assets and from their eventual disposition, to the carrying value of the assets.
In the event that the carrying amount exceeds the estimated fair market value,
the Partnership would recognize an impairment loss in the amount required to
adjust the carrying amount of the asset to its estimated fair market value.
Neither the Partnership nor its joint ventures have recognized impairment losses
on real estate assets in 2002, 2001 or 2000.

             (THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK)

                                      -13-

<PAGE>

                           PART II. OTHER INFORMATION

ITEM 3.    LEGAL PROCEEDINGS

On December 21, 2001, a class action lawsuit was filed in the United States
District Court for the Northern District of Georgia, Atlanta Division, against
the Partnership and the General Partners by John Weiss, John Weiss IRA, William
Main, Jeanne Rose, Diana Schulz and Michael Woo, individually and allegedly on
behalf of all Class A limited partners of the Partnership (the "Weiss
Litigation"). On January 30, 2002, the plaintiffs in the Weiss Litigation filed
an amended complaint, which restated the original complaint in its entirety and
added certain additional claims (the "Amended Complaint"). The Amended Complaint
alleges, among other things, that (i) the Amended and Restated Consent
Solicitation Statement dated August 25, 2000 (the "2000 Consent Solicitation")
contained material misrepresentations or omissions of fact in violation of Rule
14a-3 promulgated under Section 14(a) of the Securities Exchange Act of 1934
("Count One"), and (ii) the defendants had breached the Partnership Agreement
and breached their fiduciary duties to the plaintiffs by holding net proceeds
from the sale of the Partnership's properties that should be distributed to the
Class A limited partners. In addition to seeking compensatory damages, the
plaintiffs in the Weiss Litigation are also seeking an injunction against the
Partnership and the General Partners from (i) issuing consent solicitations for
proxies to disburse monies in breach of the Partnership Agreement, (ii)
submitting any further consent solicitations for proxies that do not meet the
requirements of Rule 14a-3, (iii) modifying the Partnership Agreement provisions
for cash distributions without the approval of 100% of the Class A limited
partners, and (iv) disbursing the proceeds from the sale of the Partnership's
properties to Class B limited partners. In addition, the plaintiffs in the Weiss
Litigation request specific performance to require the defendants to perform
their obligations under the Partnership Agreement and that an equitable
accounting be made of the nature and amount of net proceeds from the sale of the
Partnership's properties and the appropriate distribution and time for
distribution of such funds.

On March 13, 2002, the Partnership and the General Partners filed their answer
to the Amended Complaint and a motion to dismiss Count One of the Amended
Complaint on the basis that (i) the plaintiffs had failed to comply with the
certain procedural requirements imposed on litigation of this type, (ii) the
plaintiffs' claims under Count One were time-barred because they were not filed
within the applicable one-year statute of limitations period, and (iii) the
plaintiffs' claims were moot due to the fact that the 2000 Consent Solicitation
was withdrawn and terminated on January 17, 2002. In their answer, the
Partnership and the General Partners deny that they have breached the
Partnership Agreement or breached their fiduciary duties to the plaintiffs and
oppose all relief sought under the Amended Complaint. The plaintiffs have filed
a response brief asserting, among other things, that defendants' motion to
dismiss Counts One should be denied. These matters are currently pending before
the Court.

ITEM 4.    SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

(a)   On January 17, 2002, the Amended and Restated Consent Solicitation
      Statement dated August 25, 2000 was withdrawn and terminated.

(b)   N/A.

(c)   N/A.

(d)   N/A.

                                      -14-

<PAGE>

ITEM 6 (b.) No reports on Form 8-K were filed during the first quarter of 2002.

                                   SIGNATURES

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

                             WELLS REAL ESTATE FUND I
                             (Registrant)

Dated:  May 10, 2002  By /s/ Leo F. Wells, III
                         ---------------------
                              Leo F. Wells, III, as Individual
                              General Partner and as President
                              and Chief Financial Officer
                              of Wells Capital, Inc.

                                      -15-