<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D. C. 20549

                                   Form 10-Q

(Mark one)

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

           For the quarterly period ended  June 30, 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
 incorporation or organization)                          Identification Number)

   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
                                     -----

                                                                        Page No.
                                                                        --------

PART I.  FINANCIAL INFORMATION

         Item 1. Consolidated Balance Sheets - June 30, 1999
                 and December 31, 1998..................................    3

                 Consolidated Statements of Income (Loss) for Three
                 Months and Six Months Ended June 30, 1999 and 1998.....    4

                 Statements of Partners' Capital for the Six Months
                 Ended June 30, 1999 and the Year Ended
                 December 31, 1998......................................    5

                 Consolidated Statements of Cash Flows for
                 the Six Months Ended June 30, 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..............................................   17


                                       2
<PAGE>

                            WELLS REAL ESTATE FUND I
                     (A Georgia Public Limited Partnership)
                          CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

               Assets                             June 30, 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 $7,888,750
  in 1999 and $7,379,963 in 1998                    11,819,421      12,305,562
                                                   -----------     -----------
     Total real estate assets                       14,713,614      15,199,755
                                                   -----------     -----------

Investment in joint ventures (Note 2)                6,389,089       6,500,083
Cash and cash equivalents                            1,530,946         969,081
Due from affiliates                                    103,724          83,222
Deferred lease acquisition costs                       107,907          57,590
Accounts receivable                                    306,957         230,510
Prepaid expenses and other assets                       83,365          58,541
                                                   -----------     -----------
                                                     8,521,988       7,899,027
                                                   -----------     -----------
     Total assets                                  $23,235,602     $23,098,782
                                                   ===========     ===========

          Liabilities and Partners' Capital
          ---------------------------------

Liabilities:
 Accounts payable                                  $   101,181     $    70,049
 Due to affiliates                                   1,657,414       1,624,749
 Refundable security deposits                           84,803          56,709
 Partnership distribution payable                        4,843           4,843
 Minority interest                                     107,077         108,853
                                                   -----------     -----------
     Total liabilities                               1,955,318       1,865,203
                                                   -----------     -----------

Partners' capital

 Limited partners:
  Class A - 98,716 Units Outstanding                21,280,284      21,233,579
  Class B - 42,568 Units Outstanding                         0               0
                                                   -----------     -----------
     Total partners' capital                        21,280,284      21,233,579
                                                   -----------     -----------
       Total liabilities and partners' capital     $23,235,602     $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 INCOME (LOSS)

<TABLE>
<CAPTION>
                                             Three Months Ended                       Six Months Ended
                                     ----------------------------------       -------------------------------
                                     June 30, 1999        June 30, 1998       June 30, 1999     June 30, 1998
                                     -------------        -------------       -------------     -------------
<S>                                  <C>                  <C>                 <C>               <C>
Revenues:
  Rental income                         $360,676             $371,745            $716,175          $759,577
  Interest income                         18,045                4,839              29,992             7,160
  Equity in income (loss) of Joint
    Ventures (Note 2)                     63,383               52,093             141,196            96,208
                                        --------             --------            --------          --------
                                         442,104              428,677             887,363           862,945
                                        --------             --------            --------          --------

Expenses:
  Management and leasing fees             31,636               37,605              62,409            72,428
  Lease acquisition costs                    570                1,045                 999             5,087
  Operating costs-rental properties
    net of tenant reimbursements          14,867               69,051             215,026           270,512
  Depreciation                           254,411              255,408             508,786           510,412
  Legal and accounting                     7,497               12,628              12,681            17,507
  Computer expense                         2,246                1,838               4,681             3,848
  Partnership administration              15,423               16,878              35,666            29,456
  Minority interest                          314                  868                 409             3,093
                                        --------             --------            --------          --------
                                         326,964              395,321             840,657           912,343
                                        --------             --------            --------          --------
  Net income (loss)                     $115,140             $ 33,356            $ 46,706          $(49,398)
                                        ========             ========            ========          ========

Net income allocated to
  General Partners                      $      0             $      0            $      0           $     0

Net income (loss) allocated to
  Class A Limited Partners              $115,140             $ 33,356            $ 46,706          $(49,398)

Net loss allocated to Class B
  Limited Partners                      $      0             $      0            $      0           $     0

Net income (loss) per Class A
  Limited Partner Unit                  $   1.17             $    .34            $    .47           $  (.50)

Net loss per Class B Limited
  Partner Unit                          $      0             $      0            $      0           $     0

Cash distribution per Class A
  Limited Partner Unit                  $      0             $      0            $      0           $     0
</TABLE>

           See accompanying condensed notes to 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 SIX MONTHS ENDED
                                 JUNE 30, 1999

<TABLE>
<CAPTION>
                                                Limited Partners
                                     --------------------------------------
                                            Class A             Class B          Total
                                     ---------------------  ---------------    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)
  Partnership distributions               0             0        0        0             0
                                     ------   -----------   ------       --   -----------
BALANCE, December 31, 1998           98,716    21,233,579   42,568        0    21,233,579

  Net income                              0        46,706        0        0        46,706
                                     ------   -----------   ------       --   -----------
BALANCE, June 30, 1999               98,716   $21,280,285   42,568       $0   $21,280,285
                                     ======   ===========   ======       ==   ===========
</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>
                                                                                           Six Months Ended
                                                                             ------------------------------------------
                                                                             June 30, 1999                June 30, 1998
                                                                             -------------                -------------
<S>                                                                           <C>                          <C>
Cash flows from operating activities:
 Net income (loss)                                                            $   46,706                    $ (49,398)
                                                                              ----------                    ---------
 Adjustments to reconcile net income (loss) to net
  cash provided by operating activities:
   Equity in income of joint ventures                                           (141,195)                     (96,208)
   Minority interest                                                                 409                        3,093
   Depreciation                                                                  508,786                      510,412
   Accrued management and leasing fees                                            32,256                       64,156
   Changes in assets and liabilities:
     Accounts receivable                                                         (76,447)                      45,577
     Prepaids and other assets                                                   (61,524)                        (559)
     Deferred income                                                                   0                       (5,485)
     Accounts payable and refundable security
      deposits                                                                    34,403                       (6,426)
     Due to affiliates                                                             9,430                      (12,952)
                                                                              ----------                    ---------
     Total adjustments                                                           306,118                      501,608
                                                                              ----------                    ---------
      Net cash provided by operating activities                                  352,824                      452,210
                                                                              ----------                    ---------
Cash flow from investing activities:
 Distributions received from joint ventures                                      231,686                      179,019
 Investment in real estate                                                       (22,645)                    (105,418)
                                                                              ----------                    ---------
      Net cash provided by investing activities                                  209,041                       73,601
                                                                              ----------                    ---------
Cash flow from financing activities:
 Partnership distributions paid                                                       (0)                    (180,671)
                                                                              ----------                    ---------
Net increase in cash and cash equivalents                                        561,865                      345,140
Cash and cash equivalents, beginning of year                                     969,081                      128,199
                                                                              ----------                    ---------
Cash and cash equivalents, end of period                                      $1,530,946                    $ 473,339
                                                                              ==========                    =========
</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 Georgia
     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 interest, Class A and Class B limited
     partnership units.

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

     As of  June 30, 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 Wells-Baker Associates, (v) The Tucker
     Property, a retail shopping and commercial office complex located in
     Tucker, Georgia, owned by Fund I-Fund II Tucker and (vi) The Cherokee
     Property, 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 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

                                       7
<PAGE>

     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 Venture
     ---------------------------

     The Partnership owned interests in six properties as of June 30, 1999
     through investment or directly.  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
-------

As of June 30, 1999 the properties owned by the Partnership were 77.6% occupied.
Revenues of the Partnership were $442,104 for the three months ended June 30,
1999 as compared to $428,677 for the three months ended June 30, 1998, and
$887,363 for the six months ended June 30, 1999, as compared to $862,945 for the
same period in 1998.  The increase for 1999 over 1998 was due primarily to an
increase in equity from joint ventures as occupancy and rental income increased
at both Heritage Place and Cherokee Commons.

Expenses of the Partnership were $840,657 for the six months ended June 30,
1999, as compared to $912,343 for the six months ended June 30, 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 decreased from $452,210 for the six
months ended June 30, 1998, to $352,824 at June 30, 1999, due primarily to a
increase in net income.

There were no cash distributions to the Limited Partners holding Class A Units
for the six months ended June 30, 1999.  No cash distributions were made to the
Limited Partners holding Class B units or to the General Partners for the six
months ended June 30, 1999 and 1998.  As a result, cash and cash equivalents
increased from $473,339 in 1998 to $1,530,946 in 1999.

The Partnership is reserving all operating cash flow generated during the first
and second quarters 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 June 30, 1999, the building is only 21.8%
leased.  Management has hired an outside firm and hopes to enter into  leases 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.
As of June 30, 1999 all testing of systems has been completed.

As to the status of the Partnership's information technology systems, it is
presently believed that all major systems and software are Year 2000 compliant.
At the present time, it is believed that all major non-information technology
systems are Year 2000 compliant.  The cost to upgrade any non-compliant systems
is believed to be immaterial.

The Partnership has confirmed with the Partnership's vendors, including third-
party service providers such as banks, that their systems are Year 2000
compliant.

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, 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.

                                       9
<PAGE>

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
staff member of the 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 June 30, 1999, the Partnership owned interests in the following
properties:

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

<TABLE>
<CAPTION>
                                            Three Months Ended                       Six Months Ended
                                      -------------------------------         -------------------------------
                                      June 30, 1999     June 30, 1998         June 30, 1999     June 30, 1998
                                      -------------     -------------         -------------     -------------
<S>                                   <C>               <C>                   <C>               <C>
Revenues:
 Rental income                           $ 25,889         $  16,426             $  42,315         $  46,210
                                         --------         ---------             ---------         ---------
Expenses:
 Depreciation                              64,160            62,935               128,320           125,869
 Management & leasing expenses              1,575             1,007                 2,581             2,788
 Other operating expenses                  52,114            55,876               134,579           106,860
                                         --------         ---------             ---------         ---------
                                          117,849           119,818               265,480           235,517
                                         --------         ---------             ---------         ---------
Net loss                                 $(91,960)        $(103,392)            $(223,165)        $(189,307)
                                         ========         =========             =========         =========

Occupied %                                   21.8%            12.56%                 21.8%            12.56%

Partnership's Ownership %                     100%              100%                  100%              100%

Cash generated to Partnership            $      0         $       0             $       0         $       0

Net loss generated to the
 Partnership                             $(91,960)        $(103,392)            $(223,165)        $(189,307)
</TABLE>

Rental revenues increased for the three months ended June 30, 1999, as compared
to the six months ended June 30, 1998, due to a tenant that moved in during the
second quarter of 1999. Operating expenses increased significantly for the six
months period ended June 30, 1999, 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 five tenants occupying the premises.  Management has hired
an outside firm to help with the leasing of the building.

                                       11
<PAGE>

Crowe's Crossing Property - Fund I
----------------------------------

<TABLE>
<CAPTION>
                                         Three Months Ended                    Six Months Ended
                                  -------------------------------       -------------------------------
                                  June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                  -------------     -------------       -------------     -------------
<S>                               <C>               <C>                 <C>               <C>
Revenues:
 Rental income                       $171,423          $173,573            $350,080          $348,459
                                     --------          --------            --------          --------
Expenses:
 Depreciation                         104,281           104,414             208,694           208,762
 Management & leasing expenses         16,077            19,815              30,605            37,784
 Other operating expenses             (65,154)          (74,209)              8,710           (38,442)
                                     --------          --------            --------          --------
                                       55,204            50,020             248,009           208,104
                                     --------          --------            --------          --------
Net income                           $116,219          $123,553            $102,071          $140,355
                                     ========          ========            ========          ========

Occupied %                               87.5%             90.5%               87.5%             90.5%

Partnership's Ownership %                 100%              100%                100%              100%

Cash generated to Partnership        $221,740          $242,432            $285,589          $369,887

Net income generated to the
 Partnership                         $116,219          $123,553            $102,071          $140,355
</TABLE>

Other operating expenses increased for the six months ended as compared to 1998,
due to significantly HVAC and plumbing repairs, and tenant allowance. In 1998 a
recovery of bad debt of approximately $13,000 and water billings of
approximately $12,000 to tenants lowered operating expenses. Cash generated to
the Partnership and net income decreased due to the increase in operating
expenses.

Other operating expenses increased for the three month period ended June 30,
1999 due to HVAC and plumbing repairs and legal fees offset by bad debt recovery
of $23,500 and common area maintenance billings. Tenants are billed an estimated
amount for the current year common area maintenance which is then reconciled the
second quarter of the following year and the difference billed to the tenant.

                                       12
<PAGE>

Black Oak Plaza Property - Fund I
---------------------------------

<TABLE>
<CAPTION>
                                         Three Months Ended                    Six Months Ended
                                  -------------------------------       -------------------------------
                                  June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                  -------------     -------------       -------------     -------------
<S>                               <C>               <C>                 <C>               <C>
Revenues:
 Rental income                       $106,409          $110,662            $213,256          $225,775
 Interest income                          192                 0                 510                 0
                                     --------          --------            --------          --------
                                      106,601           110,662             213,766           225,775
                                     --------          --------            --------          --------
Expenses:
 Depreciation                          66,680            66,773             133,509           133,208
 Management & leasing expenses          9,844            12,257              21,272            25,873
 Other operating expenses              (5,794)           52,549               8,216           148,127
                                     --------          --------            --------          --------
                                       70,730           131,579             162,997           307,208
                                     --------          --------            --------          --------
Net income (loss)                    $ 35,871          $(20,917)           $ 50,769          $(81,433)
                                     ========          ========            ========          ========

Occupied %                                 70%               70%                 70%               70%

Partnership's Ownership %                 100%              100%                100%              100%

Cash generated to Partnership        $110,822          $ 68,547            $206,599          $ 69,791

Net income (loss) generated to the
 Partnership                         $ 35,871          $(20,917)           $ 50,769          $(81,433)
</TABLE>

Rental income decreased from $110,662 for the three month period ended June 30,
1998 to $106,409 for the same period in 1999 and from $225,775 for the six month
period ended June 30, 1998 to $213,256 for the same period in 1999 due primarily
to decreased renewal rental rates.

Other operating expenses decreased in 1999, as compared to 1998, due primarily
to increases in billings of common area maintenance, decreases in parking lot
repairs and legal fees.  Tenants are billed an estimated amount for the current
year common area maintenance which is then reconciled the second quarter of the
following year and the difference billed to the tenant.  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 expense noted above.

                                       13
<PAGE>

Peachtree Place Property - Fund I and Wells & Associates Joint Venture
----------------------------------------------------------------------

<TABLE>
<CAPTION>
                                             Three Months Ended                    Six Months Ended
                                      -------------------------------       -------------------------------
                                      June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                      -------------     -------------       -------------     -------------
<S>                                   <C>               <C>                 <C>               <C>
Revenues:
 Rental income                           $57,465           $71,083             $110,524          $139,132
 Interest income                               8                 8                   16                16
                                         -------           -------             --------          --------
                                          57,473            71,091              110,540           139,148
Expenses:
 Depreciation                             19,290            21,287               38,263            42,574
 Management & leasing expenses             4,710             5,571                8,950            11,070
 Other operating expenses                 33,824            35,596               62,733            54,726
                                         -------           -------             --------          --------
                                          57,824            62,454              109,946           108,370
                                         -------           -------             --------          --------
Net income (loss)                        $  (351)          $ 8,637             $    594          $ 30,778
                                         =======           =======             ========          ========

Occupied %                                  85.2%              100%                85.2%              100%

Partnership's Ownership %                  89.95%            89.95%               89.95%            89.95%

Cash distribution to the Partnership     $ 7,476           $28,049             $ 13,520          $ 69,564

Net income (loss) allocated to the
 Partnership                             $ 1,964           $ 7,770             $  2,814          $ 27,685

</TABLE>

Rental income decreased for the quarter ending June 30, 1999, as compared to the
same period for 1998, due to decreased occupancy.  Operating expenses increased
from $54,726 in 1998 to $62,733 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 decreased rental income.

                                       14
<PAGE>

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

<TABLE>
<CAPTION>
                                             Three Months Ended                    Six Months Ended
                                      -------------------------------       -------------------------------
                                      June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                      -------------     -------------       -------------     -------------
<S>                                   <C>               <C>                 <C>               <C>
Revenues:
 Rental income                           $343,044          $311,526            $679,903          $611,887
 Interest income                              137               135                 273               272
                                         --------          --------            --------          --------
                                          343,181           311,661             680,176           612,159
Expenses:
 Depreciation                             120,456           107,288             229,252           214,576
 Management & leasing expenses             43,482            34,645              87,966            77,233
 Other operating expenses                 103,404           116,379             198,948           225,974
                                         --------          --------            --------          --------
                                          267,342           258,312             516,166           517,783
                                         --------          --------            --------          --------
Net income (loss)                        $ 75,839          $ 53,349            $164,010          $ 94,376
                                         ========          ========            ========          ========

Occupied %                                   91.0%             82.0%               91.0%             82.0%

Partnership Ownership %                     55.09%            55.09%              55.09%            55.09%

Cash distributed to the Partnership      $ 54,213          $ 81,824            $143,594          $147,264

Net income (loss) allocated to the
 Partnership                             $ 41,779          $ 29,390            $ 90,353          $ 51,992
</TABLE>

Rental income increased in 1999 from 1998, due primarily to the increase in
occupancy from 82% to 91%.  Depreciation, management and leasing expenses
increased over prior year to date, due to increased occupancy.  Other operating
expenses decreased primarily due to prior year adjustments for common area
maintenance billings to tenants.  Tenants are billed an estimated amount for the
current year common area maintenance which is then reconciled the second quarter
of the following year and the difference billed to the tenant.

                                       15
<PAGE>

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

<TABLE>
<CAPTION>
                                         Three Months Ended                    Six Months Ended
                                  -------------------------------       -------------------------------
                                  June 30, 1999     June 30, 1998       June 30, 1999     June 30, 1998
                                  -------------     -------------       -------------     -------------
<S>                               <C>               <C>                 <C>               <C>
Revenues:
 Rental income                       $237,232          $225,705            $464,615          $454,682
 Interest income                           19                19                  39                41
                                     --------          --------            --------          --------
                                      237,251           225,724             464,654           454,723
Expenses:
 Depreciation                         111,415           110,564             221,527           221,127
 Management & leasing expenses         26,135            18,737              51,129            44,488
 Other operating expenses               9,772             1,919             (19,643)            5,050
                                     --------          --------            --------          --------
                                      147,322           131,220             253,013           270,665
                                     --------          --------            --------          --------
Net income                           $ 89,929          $ 94,504            $211,641          $184,058
                                     ========          ========            ========          ========

Occupied %                               95.9%             91.0%               95.9%             91.0%

Partnership Ownership %                  24.0%             24.0%               24.0%             24.0%

Cash distributed to the
 Partnership                         $ 49,512          $ 54,972            $108,595          $104,083

Net income allocated to the
 Partnership                         $ 21,604          $ 22,703            $ 50,843          $ 44,216
</TABLE>

Rental income increased in 1999 over 1998, due to increased occupancy. The
decrease in operating expenses for the six month period ended June 30, 1999, as
compared to the same period in 1998 was due to common area maintenance
reimbursement billings.  Tenants are billed an estimated amount for the current
year common area maintenance which is then reconciled the second quarter of the
following year and the difference billed to the tenant.  The increase in
operating expenses for the three month period ended June 30, 1998 was due to
increased expenditures for tenant improvements, HVAC repairs and a partial
demolition of a tenant suite.

                                       16
<PAGE>

                          PART  II - OTHER INFORMATION
                          ----------------------------

Item 6(b).  No reports on Form 8-K were filed during the second 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:  August 10, 1999                By: /s/ Leo F. Wells, III
                                           ---------------------
                                       Leo F. Wells, III, as Individual
                                       General Partner and as President,
                                       Sole Director and Chief Financial
                                       Officer of Wells Capital, Inc.

                                       17