<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, 1999                 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 Identification Number)
incorporation or organization)

3885 Holcomb Bridge Road, 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
                           ------------------------

                                     INDEX
                                     -----

<TABLE> 
<CAPTION> 
                                                                                Page No.
                                                                                --------
<S>                                                                             <C>
PART I.   FINANCIAL INFORMATION
 
          Item 1. Consolidated Balance Sheets - March 31, 1999
                   and December 31, 1998......................................         3

                  Consolidated Statements of Loss for
                   Three Months Ended
                   March 31, 1999 and 1998....................................         4

                  Statements of Partners' Capital
                   for the Three months Ended March 31, 1999
                   and the Year Ended December 31, 1998.......................         5

                  Consolidated Statements of Cash Flows for
                   the Three months Ended March 31, 1999 and 1998.............         6

                  Condensed Notes to Consolidated Financial Statements........         7

          Item 2. Management's Discussion and Analysis of
                  Financial Condition and Results of
                  Operations..................................................         8

PART II.  OTHER INFORMATION...................................................        16
</TABLE>

                                       2
<PAGE>
 
                           WELLS REAL ESTATE FUND I
                    (A GEORGIA PUBLIC LIMITED PARTNERSHIP)
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                 Assets                           March 31, 1999  December 31, 1998
                 ------                           --------------  -----------------
<S>                                               <C>             <C>
Real Estate, at cost
 Land                                                $ 2,894,193        $ 2,894,193
 Building and improvements, less
  accumulated depreciation of $7,634,339
       in 1999 and $7,379,963 in 1998                 12,066,689         12,305,562
                                                     -----------        -----------
 
     Total real estate assets                         14,960,881         15,199,755
                                                     -----------        -----------
 
Investment in joint ventures (Note 2)                  6,429,431          6,500,083
Cash and cash equivalents                              1,204,110            969,081
Due from affiliates                                      148,464             83,222
Deferred lease acquisition costs                          91,664             57,590
Accounts receivable                                      211,488            230,510
Prepaid expenses and other assets                         54,701             58,541
                                                     -----------        -----------
                                                       8,139,858          7,899,027
                                                     -----------        -----------
     Total assets                                    $23,100,739        $23,098,782
                                                     ===========        ===========
 
          Liabilities and Partners' Capital
          ---------------------------------
 
Liabilities:
 Accounts payable                                    $   125,040        $    70,049
 Due to affiliates                                     1,640,567          1,624,749
 Refundable security deposits                             56,872             56,709
 Partnership distribution payable                          4,843              4,843
 Minority interest                                       108,273            108,853
                                                     -----------        -----------
 
     Total liabilities                                 1,935,595          1,865,203
                                                     -----------        -----------
 
Partners' capital
 Limited partners:
  Class A - 98,716 Units Outstanding                  21,165,144         21,233,579
  Class B - 42,568 Units Outstanding                           0                  0
                                                     -----------        -----------
 
     Total partners' capital                          21,165,144         21,233,579
                                                     -----------        -----------
 
       Total liabilities and partners' capital       $23,100,739        $23,098,782
                                                     ===========        ===========
</TABLE>

     See accompanying condensed notes to consolidated financial statements.

                                       3
<PAGE>
 
                            WELLS REAL ESTATE FUND I
                     (A GEORGIA PUBLIC LIMITED PARTNERSHIP)

                        CONSOLIDATED STATEMENTS OF LOSS

<TABLE>
<CAPTION>
                                                                      Three Months Ended
                                                                      ------------------
                                                             March 31, 1999        March 31, 1998
                                                           -------------------  --------------------
<S>                                                        <C>                  <C>
Revenues:
       Rental income                                                 $355,499              $387,832
       Interest income                                                 11,947                 2,321
       Equity in income of joint ventures (Note 2)                     77,812                44,115
                                                                     --------              --------
                                                                      445,258               434,268
                                                                     --------              --------
Expenses:
       Management and leasing fees                                     30,773                34,823
       Lease acquisition costs                                            429                 4,042
       Operating costs-rental properties, net of
          tenant reimbursements                                       200,159               201,461
       Depreciation                                                   254,375               255,004
       Legal and accounting expenses                                    5,184                 4,879
       Computer expenses                                                2,435                 2,010
       Partnership administration                                      20,243                12,578
       Minority interest                                                   95                 2,225
                                                                     --------              --------
                                                                      513,693               517,022
                                                                     --------              --------
       Net loss                                                      $(68,435)             $(82,754)
                                                                     ========              ========
 
Net loss allocated to Class A Limited Partners                       $(68,435)             $(82,754)
 
Net loss allocated to Class B Limited Partners                       $      0              $      0
 
Net loss  per Class A Limited Partner Unit                              $(.69)                $(.84)
 
Net loss per Class B Limited Partner Unit                            $      0              $      0
 
Cash distribution per Class A Limited Partner Unit                   $      0              $      0
</TABLE>

     See accompanying condensed notes to consolidated financial statements.

                                       4
<PAGE>
 
                            WELLS REAL ESTATE FUND I

                     (A GEORGIA PUBLIC LIMITED PARTNERSHIP)

                        STATEMENTS OF PARTNERS' CAPITAL
          FOR THE YEAR ENDED DECEMBER 31, 1998 AND THREE MONTHS ENDED
                                 MARCH 31, 1999

<TABLE>
<CAPTION>
                                                LIMITED PARTNERS
                                     ---------------------------------------      TOTAL
 
                                            CLASS A             CLASS B         PARTNERS'
                                     ---------------------  ----------------
                                     UNITS      AMOUNTS     UNITS   AMOUNTS      CAPITAL
                                     ------  -------------  ------  --------  -------------
<S>                                  <C>     <C>            <C>     <C>       <C>
BALANCE, DECEMBER 31, 1997           98,716   $21,571,254   42,568      $ 0    $21,571,254
 
   Net  loss                              0      (337,675)       0       (0)      (337,675)
                                     ------   -----------   ------      ---    -----------
BALANCE, DECEMBER 31, 1998           98,716    21,233,579   42,568        0     21,233,579
 
   Net loss                               0       (68,435)       0        0        (68,435)
                                     ------   -----------   ------      ---    -----------
BALANCE, MARCH 31, 1999              98,716   $21,165,144   42,568      $ 0    $21,165,144
                                     ======   ===========   ======      ===    ===========
</TABLE>

     See accompanying condensed notes to consolidated financial 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, 1999           March 31, 1998
                                                    -----------------------  -----------------------
<S>                                                 <C>                      <C> 
Cash flows from operating activities:
 Net loss                                                       $  (68,435)               $ (82,754)
                                                                ----------                ---------
 Adjustments to reconcile net loss to net
  cash provided by operating activities:
  Equity in income of joint ventures                               (77,812)                 (44,115)
  Minority interest                                                    (95)                   7,593
  Depreciation                                                     254,375                  255,004
  Accrued management and leasing fees                               15,913                   31,100
  Changes in assets and liabilities:
  Accounts receivable                                               19,022                   64,844
  Prepaids and other assets                                        (38,859)                     (40)
  Due from affiliates                                                    0                  (44,028)
  Deferred income                                                        0                   (3,347)
   Accounts payable and refundable security                         58,996                  (61,421)
   deposits
   Due to affiliates                                                 4,204                   (6,136)
                                                                ----------                ---------
   Total adjustments                                               235,744                  199,454
                                                                ----------                ---------
   Net cash provided by
   operating activities                                            167,309                  116,700
                                                                ----------                ---------
 
Cash flow from investing activities:
 Distributions received from joint ventures                         83,222                  104,072
 Investment in real estate                                         (15,502)                 (28,456)
                                                                ----------                ---------
   Net cash provided by
   investing activities                                             67,720                   75,616
 
Cash flow from financing activities:
 Partnership distributions paid                                          0                 (178,866)
                                                                ----------                ---------
 
Net increase in cash and cash equivalents                          235,030                   13,450
 
Cash and cash equivalents, beginning of year                       969,081                  128,199
                                                                ----------                ---------
 
Cash and cash equivalents, end of period                        $1,204,111                $ 141,649
                                                                ==========                =========
</TABLE>

     See accompanying condensed notes to consolidated financial statements.

                                       6
<PAGE>
 
                            WELLS REAL ESTATE FUND I
                     (A Georgia Public Limited Partnership)

              Condensed Notes to Consolidated Financial Statements

(1)  Summary of Significant Accounting Policies
     ------------------------------------------

     (a)  General
     ------------

     Wells Real Estate Fund I (the "Partnership") is a Georgia public limited
     partnership having Leo F. Wells, III and Wells Capital, Inc., a`
     corporation, as General Partners.  The Partnership was formed on April 26,
     1984, for the purpose of acquiring, developing, constructing, owning,
     operating, improving, leasing and otherwise managing for investment
     purposes income-producing commercial  properties.

     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, and received gross proceeds of $35,321,000
     representing subscriptions from 4,895 Limited Partners, composed of two
     classes of limited partnership interests, Class A and Class B limited
     partnership units.

     The Partnership owns equity interests in the following joint ventures:  (i)
     Fund I and Wells & Associates Joint Venture, (ii) Fund I-Fund II Tucker,
     and (iii) Fund I, II, II-OW, VI and VII.

     As of  March 31, 1999,  the Partnership owned, directly or through its
     ownership in joint ventures, interests in the following properties:  (i)
     Paces Pavilion/The Howell Mill Road Property, a medical office building
     located in Atlanta, Georgia, owned directly by the Partnership, (ii) The
     Crowe's Crossing Property, a shopping center located in DeKalb County,
     Georgia, owned by the Partnership, (iii) The Black Oak Plaza Property, a
     shopping center located in Knoxville, Tennessee, owned by the Partnership,
     (iv) The Peachtree Place Property, two commercial office buildings located
     in Atlanta, Georgia, owned by Fund I and Wells & Associates Joint Venture,
     (v) Heritage Place at Tucker Property, a retail shopping and commercial
     office complex located in Tucker, Georgia, owned by Fund I-Fund II Tucker,
     and (vi) The Cherokee Commons, a shopping center located in Cherokee
     County, Georgia, owned by Fund I, II, II-OW, VI, VII Joint Venture.  All of
     the foregoing properties were acquired on an all cash basis.

     (b)  Basis of Presentation
     --------------------------

     The consolidated financial statements include the accounts of the
     Partnership and Wells-Baker.  The Partnership's interest in Wells-Baker was
     approximately 90% at March 31, 1999 and December 31, 1998.  All significant
     intercompany balances have been eliminated in consolidation.  Minority
     interest represents the interest of Wells and Associates, Inc., an
     affiliate of the general partners, in Wells-Baker.  At December 31, 

                                       7
<PAGE>
 
     1998 and 1997, Wells and Associates, Inc.'s interest in Wells-Baker was
     approximately 10%.

     The consolidated financial statements of the Partnership have been prepared
     in accordance with instructions to Form 10-Q and do not include all of the
     information and footnotes required by generally accepted accounting
     principles for complete financial statements.  These quarterly statements
     have not been examined by independent accountants, but in the opinion of
     the General Partners, the statements for the unaudited interim periods
     presented include all adjustments, which are of a normal and recurring
     nature, necessary to present a fair presentation of the results for such
     periods.  For further information,  refer to the consolidated financial
     statements and footnotes included in the Partnership's Form 10-K for the
     year ended December 31, 1998.

(2)  Investment in Joint Ventures
     ----------------------------

     The Partnership owned an interest in three properties as of March 31, 1999,
     through its investments in joint ventures.  The Partnership does not have
     control over the operations of the joint ventures; however, it does
     exercise significant influence.  Accordingly, investment in the joint
     venture is recorded on the equity method.

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

Results of Operations and Changes in Financial Conditions
---------------------------------------------------------

General
-------

Revenues of the Partnership were $445,258 for the period ended March 31, 1999,
as compared to $434,268 for the three months ended March 31, 1998.  The increase
for 1999 over 1998 was due primarily to increased income from the Heritage Place
at Tucker Property.

Expenses of the Partnership were $513,693 for the period ending March 31, 1999,
as compared to $517,022 for the three months ended March 31, 1998.  The decrease
in expenses for 1999 over 1998 was due primarily to decreased operating costs of
the Partnership's properties.

                                       8
<PAGE>
 
Net cash provided by operating activities increased from $116,700 for the three
months ended March 31, 1998 to $168,731 at March 31, 1999, due primarily to the
decrease in operating costs. As a result, cash and cash equivalents increased
from $141,649 in 1998 to $1,204,111 in 1999.

There were no cash distributions to the Limited Partners holding Class A Units
for the three months ended March 31, 1999 as compared to the same period in
1998.  No cash distributions were made to the Limited Partners holding Class B
units or to the General Partners for the three months ended March 31, 1999 and
1998.

The Partnership is reserving all operating cash flow generated during 1998 and
the first quarter of 1999 which would otherwise be available for distribution to
Limited Partners to fund the proposed reconfiguration of the interior of the
Paces Pavilion Building.  The lease with Hospital Corporation of America (HCA)
expired December 31, 1996 and as of March 31, 1999, the building is only 12.6%
leased. Management has hired an outside firm to engage a tenant to lease 29,000
square feet of the 32,000 square foot building for the next ten years and hopes
to enter into a lease for this space in the near future.  It is anticipated that
the cost to refit the interior of the building will be approximately $1.2
million.  Therefore, to meet these requirements, the Partnership expects to
reserve all distributions for 1998 and 1999 and apply such amounts to fund the
reconfiguration of the interior of this property.

YEAR 2000
---------

The Partnership is presently reviewing the potential impact of Year 2000
compliance issues on its information systems and business operations.  A full
assessment of Year 2000 compliance issues was begun in late 1997 and was
completed by March 31, 1999.  Renovations and replacements of equipment have
been and are being made as warranted.  The costs incurred by the Partnership and
its affiliates thus far for renovations and replacements have been immaterial.
Some testing of systems has begun and all testing is expected to be complete by
June 30, 1999.

As to the status of the Partnership's information technology systems, it is
presently believed that all major systems and software packages with the
exception of the accounting and property management package are Year 2000
compliant.  The Partnership's affiliated entities are purchasing the upgrade for
the accounting and property management package system; however, it is not slated
to be available until the end of the second quarter of 1999.  At the present
time, it is believed that all non-major information technology systems are Year
2000 compliant.  The cost to upgrade any non-compliant systems is believed to be
immaterial.

The Partnership is in the process of confirming with the Partnership's vendors,
including third-party service providers such as banks, that their systems will
be Year 2000 compliant.  Based on the information received thus far, the primary
third-party service providers with which the Partnership has relationships have
confirmed their Year 2000 readiness.

The Partnership relies on computers and operating systems provided by equipment
manufacturers, and also on application software designed for use with its
accounting, property management and investment portfolio tracking.  The
Partnership has preliminarily determined that any costs, 

                                       9
<PAGE>
 
problems or uncertainties associated with the potential consequences of Year
2000 issues are not expected to have a material impact on the future operations
or financial condition of the Partnership. The Partnership will perform due
diligence as to the Year 2000 readiness of each property owned by the
Partnership and each property contemplated for purchase by the Partnership.

The Partnership's reliance on embedded computer systems (i.e., microcontrollers)
is limited to facilities related matters, such as office security systems and
environmental control systems.

The Partnership is currently formulating contingency plans to cover any areas of
concern.  Alternate means of operating the business are being developed in the
unlikely circumstance that the computer and phone systems are rendered
inoperable.  An off-site facility from which the Partnership could operate is
being sought as well as alternate means of communication with key third-party
vendors.  A written plan is being developed for testing and dispensation to each
General Partner of the Partnership.

Management believes that the Partnership's risk of Year 2000 problems is
minimal.  In the unlikely event there is a problem, the worst case scenarios
would include the risks that the elevator or security systems within the
Partnership's properties would fail or the key third-party vendors upon which
the Partnership relies would be unable to provide accurate investor information.
In the event that the elevator shuts down, the Partnership has devised a plan
for each building whereby the tenants will use the stairs until the elevators
are fixed.  In the event that the security system shuts down, the Partnership
has devised a plan for each building to hire temporary on-site security guards.
In the event that a third-party vendor has Year 2000 problems relating to
investor information, the Partnership intends to perform a full system back-up
of all investor information as of December 31, 1999 so that the Partnership will
have accurate hard-copy investor information.

                                       10
<PAGE>
 
PROPERTY OPERATIONS
-------------------

As of March 31, 1999, the Partnership owned interests in the following
properties:

Paces Pavilion/Howell Mill Road Property - Fund I
-------------------------------------------------

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                    ---------------------------------------------
                                                        March 31, 1999           March 31, 1998
                                                    -----------------------  --------------------
<S>                                                 <C>                      <C>
Revenues:
   Rental income                                            $  16,426                 $ 29,784         
                                                            ---------                 --------         
Expenses:                                                                                              
   Depreciation                                                64,160                   62,934         
   Management and leasing expenses                              1,006                    1,781         
   Other operating expenses                                    82,465                   50,984         
                                                            ---------                 --------         
                                                              147,631                  115,699         
                                                            ---------                 --------         
                                                                                                       
Net loss                                                    $(131,205)                $(85,915)        
                                                            =========                 ========         
                                                                                                       
Occupied %                                                       12.6%                    12.6%        
Partnership's Ownership %                                         100%                     100%        
                                                                                                       
Cash generated to the Partnership                           $       0                 $      0         
                                                                                                       
Net loss allocated to the Partnership                       $(131,205)                $(85,915)         
</TABLE>

Rental rates decreased significantly for the three months ended March 31, 1999,
as compared to the three months ended March 31, 1998, due to a tenant that moved
out at the end of March 1998.  Operating expenses increased significantly, due
to property taxes, insurance, and common area maintenance expenses previously
paid for by a major tenant that is no longer leasing space.

Currently, there are three tenants occupying the premises.  Management has hired
an outside firm to engage a tenant for the 29,000 square feet of the 32,000
square foot building and hopes to enter into a lease for this space in the near
future.

                                       11
<PAGE>
 
Crowe's Crossing Property- Fund I
---------------------------------

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                    ------------------------------------------------
                                                        March 31, 1999           March 31, 1998
                                                    -----------------------  -----------------------
<S>                                                 <C>                      <C>  
Revenues:
   Rental income                                             $178,657                 $174,886       
                                                             --------                 --------       
Expenses:                                                                                            
   Depreciation                                               104,413                  104,348       
   Management and leasing expenses                             14,528                   17,969       
   Other operating expenses                                    73,864                   35,767       
                                                             --------                 --------       
                                                              192,805                  158,084       
                                                             --------                 --------       
                                                                                                     
Net (loss) income                                            $(14,148)                $ 16,802       
                                                             ========                 ========       
                                                                                                     
Occupied %                                                         91%                      87%      
Partnership's Ownership %                                         100%                     100%      
                                                                                                     
Cash generated to the Partnership                            $ 63,849                 $127,455       
                                                                                                     
Net (loss) income allocated to the Partnership               $(14,148)                $ 16,802        
</TABLE>

Rental income increased for the three month period ended March 31, 1999 due to
increased occupancy.  Other operating expenses increased significantly, due to
significant HVAC and plumbing repairs, painting and tenant allowance offset by a
recovery of bad debt of approximately $13,000 in 1998 and water billings of
approximately $12,000 to tenants. Cash generated to the Partnership and net
income decreased due to the increase in operating expenses.

                                       12
<PAGE>
 
Black Oak Plaza Property - Fund I
---------------------------------

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                    ------------------------------------------------
                                                        March 31, 1999           March 31, 1998
                                                    -----------------------  -----------------------
<S>                                                 <C>                      <C> 
Revenues:
   Rental income                                             $107,357                 $115,113        
   Interest income                                                318                        0        
                                                             --------                 --------        
                                                              107,675                  115,113        
                                                             ========                 ========        
                                                                                                      
Expenses:                                                                                             
   Depreciation                                                66,829                   66,435        
   Management and leasing expenses                             11,428                   13,616        
   Other operating expenses                                    14,520                   95,578        
                                                             --------                 --------        
                                                               92,777                  175,629        
                                                             --------                 --------        
                                                                                                      
Net income (loss)                                            $ 14,898                 $(60,516)       
                                                             ========                 ========        
                                                                                                      
Occupied %                                                         71%                      74%       
Partnership's Ownership %                                         100%                     100%       
                                                                                                      
Cash generated to the Partnership                            $ 95,777                 $  1,244        
                                                                                                      
Net income (loss) allocated to the Partnership               $ 14,898                 $(60,516)        
</TABLE>

Rental income decreased to $107,357 for 1999, as compared to $115,113 in 1998,
due primarily to decreased occupancy. Other operating expenses decreased in
1999, as compared to 1998, due primarily to increases in billing of CAM and
other reimbursements offset by significant decreases in parking lot repairs and
legal fees.  Cash generated to the Partnership and net income allocated to the
Partnership increased in 1999, as compared to 1998, due primarily to the
decrease in expenses noted above.

                                       13
<PAGE>
 
Peachtree Place Property - Fund I and Wells & Associates Joint Venture
----------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                   Three Months Ended
                                                    ------------------------------------------------
                                                        March 31, 1999           March 31, 1998
                                                    -----------------------  -----------------------
<S>                                                 <C>                      <C>  
Revenues:
   Rental income                                                   $53,059                  $68,049
   Interest income                                                       8                        8
                                                                   -------                  -------
                                                                    53,067                   68,057
                                                                   -------                  -------
Expenses:
   Depreciation                                                     18,973                   21,287
   Management and leasing expenses                                   4,239                    5,499
   Other operating expenses                                         28,910                   19,130
                                                                   -------                  -------
                                                                    52,122                   45,916
                                                                   -------                  -------
 
Net income                                                         $   945                  $22,141
                                                                   =======                  =======
 
Occupied %                                                              74%                      95%
Partnership's Ownership %                                            89.95%                   89.95%
 
Cash generated to Partnership                                      $ 6,044                  $41,515
 
Net income  allocated to Partnership                               $   850                  $19,915
</TABLE>

Rental income decreased for the quarter ending March 31, 1999, as compared to
the same period for 1998, due to decreased occupancy.  Operating expenses
increased from $19,130 in 1998 to $28,910 in 1999, due to bad debt recovery of
$7,000 in the first quarter of 1998 as compared to only $300 in the first
quarter of 1999.  Cash distributions and net income decreased in 1999, as
compared to 1998, due to increased operating expenses and decrease rental
income.

                                       14
<PAGE>
 
Heritage Place at Tucker Property/Fund I - Fund II Joint Venture
----------------------------------------------------------------

<TABLE>
<CAPTION>
                                                               Three Months Ended
                                             ------------------------------------------------------
                                                  March 31, 1999              March 31, 1998
                                             -------------------------  ---------------------------
<S>                                          <C>                        <C>
Revenues:
   Rental income                                       $336,859                     $300,361         
   Interest income                                          136                          137         
                                                       --------                     --------         
                                                        336,995                      300,498         
                                                       --------                     --------         
Expenses:                                                                                            
   Depreciation                                         108,796                      107,288         
   Management & leasing expenses                         44,484                       42,588         
   Other operating expenses                              95,544                      109,595         
                                                       --------                     --------         
                                                        248,824                      259,471         
                                                       --------                     --------         
                                                                                                     
Net  income                                            $ 88,171                     $ 41,027         
                                                       ========                     ========         
                                                                                                     
Occupied %                                                   91%                          83%        
                                                                                                     
Partnership's Ownership %                                  55.1%                        55.1%        
                                                                                                     
Cash distributions to the Partnership                  $ 89,381                     $ 65,440         
                                                                                                     
Net income allocated to the Partnership                $ 48,573                     $ 22,602          
</TABLE>

Rental income increased in 1999 from 1998, due primarily to the increase in
occupancy from 83% to 91%.  Management and leasing expenses increased over prior
year, due to increased occupancy and revenues.  Other operating expenses
decreased, due primarily to a decrease in landscaping expenses.

                                       15
<PAGE>
 
Cherokee Commons/Fund I, II, II-OW, VI & VII Joint Venture
----------------------------------------------------------

<TABLE>
<CAPTION>
                                                               Three Months Ended
                                             ------------------------------------------------------
                                                  March 31, 1999              March 31, 1998
                                             -------------------------  ---------------------------
<S>                                          <C>                        <C>
Revenues:
   Rental income                                             $227,383                     $228,977
   Interest income                                                 20                           22
                                                             --------                     --------
                                                              227,403                      228,999
                                                             --------                     --------
Expenses:
   Depreciation                                               110,112                      110,563
   Management & leasing expenses                               26,135                       25,751
   Other operating expenses                                   (30,556)                       3,131
                                                             --------                     --------
                                                              105,691                      139,445
                                                             --------                     --------
 
Net income                                                   $121,712                     $ 89,554
                                                             ========                     ========
 
Occupied %                                                         96%                          91%
Partnership's Ownership %                                        24.0%                        24.0%
 
Cash distributed to the Partnership                          $ 59,083                     $ 49,111

Net income allocated to the Partnership                      $ 29,239                     $ 21,513
</TABLE>

Rental income remained relatively stable in 1999 as compared to 1998.  The
decrease in operating expenses in 1999, as compared to 1998, are due to
increased CAM billings to tenants that were under accrued in 1998.

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<PAGE>
 
                         PART  II - OTHER INFORMATION
                         ----------------------------

Item 6(b).  No reports on Form 8-K were filed during the first quarter of 1999.

                                  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 11, 1999       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.   
 

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