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SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

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FORM 10-Q

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(Mark One)

| | x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| | - | ---------------------------------------------------------------------------------------

| |  | For the quarterly period ended September 30, 2002
| |  | -------------------------------------------------

OR

| | o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| | - | ----------------------------------------------------------------------------------------

| |  | For the transition period fromto
| |  | --------------------------------

Commission file number 0-17876

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

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| | Georgia(State or other jurisdiction of incorporation or organization) |  | 58-1754703(I.R.S. Employer Identification Number) | 
| | --------------------------------------------------------------------- |  | ------------------------------------------------- | 

| | 6200 The Corners Pkwy, Suite 250,Atlanta, Georgia(Address of principal executive offices) |  | 30092(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 o

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FORM 10-Q

WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited
Partnership)

INDEX

|         |  |                       |    |                                                                                                                               | Page No.
|-------- |  | --------------------- | -- | ----------------------------------------------------------------------------------------------------------------------------- | --------
|         |  |                       |    |                                                                                                                               |         
|PART I.  |  | FINANCIAL INFORMATION |   
|         |  |                       |    |                                                                                                                               |         
|         |  | Item 1.               |    | Financial Statements                                                                                                          |         
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |    | Balance SheetsSeptember 30, 2002 (unaudited) and December 31, 2001                                                           | 3       
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |    | Statements of (Loss) Income for the Three Months and Nine Months Ended September 30, 2002 (unaudited) and 2001 (unaudited)    | 4       
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |    | Statements of Partners Capital for the Year Ended December 31, 2001 and the Nine Months Ended September 30, 2002 (unaudited) | 5       
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |    | Statements of Cash Flows for the Nine Months Ended September 30, 2002 (unaudited) and 2001 (unaudited)                        | 6       
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |    | Condensed Notes to Financial Statements (unaudited)                                                                           | 7       
|         |  |                       |    |                                                                                                                               |         
|         |  | Item 2.               |    | Managements Discussion and Analysis of Financial Condition and Results of Operations                                         | 13      
|         |  |                       |    |                                                                                                                               |         
|         |  | Item 4.               |    | Controls and Procedures                                                                                                       | 15      
|         |  |                       |    |                                                                                                                               |         
|         |  |                       |   
|         |  |                       |    |                                                                                                                               |         
|PART II. |  | OTHER INFORMATION     | 16

|EXHIBIT INDEX                                           | 19
|------------------------------------------------------- | --
|                                                        |   
|EXHIBIT 99.1  CERTIFICATION OF CHIEF EXECUTIVE OFFICER | 20
|                                                        |   
|EXHIBIT 99.2  CERTIFICATION OF CHIEF FINANCIAL OFFICER | 21



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WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited Partnership)

BALANCE SHEETS

|                                        |  | (unaudited)September 30,2002 |           | December 31,2001 |  
|--------------------------------------- |  | ---------------------------- | --------- | ---------------- | -
|                                        |  |                              |           |                  |  
|ASSETS:                                 |  |                              |           |                  |  
|Investment in joint venture (Note 2)    |  | $                            | 895,613   |                  | $
|Cash and cash equivalents               |  |                              | 29,267    |                  |  
|Due from affiliates                     |  |                              | 103,812   |                  |  
|                                        |  |                              |           |                  |  
|Total assets                            |  | $                            | 1,028,692 |                  | $
|                                        |  |                              |           |                  |  
|                                        |  |                              |           |                  |  
|LIABILITIES AND PARTNERS CAPITAL:      |  |                              |           |                  |  
|Liabilities:                            |  |                              |           |                  |  
|Accounts payable                        |  | $                            | 14        |                  | $
|Partners capital:                      |  |                              |           |                  |  
|Limited partners:                       |  |                              |           |                  |  
|Class A6,062 units                     |  |                              | 1,028,678 |                  |  
|Class B1,626 units                     |  |                              | 0         |                  |  
|                                        |  |                              |           |                  |  
|Total partners capital                 |  |                              | 1,028,678 |                  |  
|                                        |  |                              |           |                  |  
|Total liabilities and partners capital |  | $                            | 1,028,692 |                  | $
|                                        |  |                              |           |                  |  

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





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WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited Partnership)

STATEMENTS OF (LOSS) INCOME

|                                                             |  | (unaudited)        |         | (unaudited)       |  
|------------------------------------------------------------ |  | ------------------ | ------- | ----------------- | -
|                                                             |  | Three Months Ended |         | Nine Months Ended |  
|                                                             |  |                    |         |                   |  
|                                                             |  | September 30,2002  |         | September 30,2001 |  
|                                                             |  |                    |         |                   |  
|REVENUES:                                                    |  |                    |         |                   |  
|Equity in (loss) income of joint venture         (Note 2)    |  | $                  | (14,990 | )                 | $
|Other income                                                 |  |                    | 54      |                   |  
|Interest income                                              |  |                    | 69      |                   |  
|                                                             |  |                    |         |                   |  
|NET (LOSS) INCOME                                            |  | $                  | (14,867 | )                 | $
|                                                             |  |                    |         |                   |  
|                                                             |  |                    |         |                   |  
|NET (LOSS) INCOME ALLOCATED TO      CLASS A LIMITED PARTNERS |  | $                  | (14,867 | )                 | $
|                                                             |  |                    |         |                   |  
|                                                             |  |                    |         |                   |  
|NET LOSS ALLOCATED TO CLASS B      LIMITED PARTNERS          |  | $                  | 0       |                   | $
|                                                             |  |                    |         |                   |  
|                                                             |  |                    |         |                   |  
|NET (LOSS) INCOME PER CLASS A      LIMITED PARTNER UNIT      |  | $                  | (2.45   | )                 | $
|                                                             |  |                    |         |                   |  
|                                                             |  |                    |         |                   |  
|NET LOSS PER CLASS B LIMITED      PARTNER UNIT               |  | $                  | 0.00    |                   | $
|                                                             |  |                    |         |                   |  
|                                                             |  |                    |         |                   |  
|CASH DISTRIBUTION PER CLASS A      LIMITED PARTNER UNIT      |  | $                  | 0.00    |                   | $
|                                                             |  |                    |         |                   |  

The accompanying notes are an integral
part of these statements.





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WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited Partnership)

STATEMENTS OF PARTNERS CAPITAL

FOR THE YEAR ENDED DECEMBER 31, 2001 AND

NINE MONTHS ENDED SEPTEMBER 30, 2002 (UNAUDITED)

|                                        |  | Limited Partners |       |         |  
|--------------------------------------- |  | ---------------- | ----- | ------- | -
|                                        |  |                  |       |         |  
|                                        |  | Class A          |       | Class B |  
|                                        |  |                  |       |         |  
|                                        |  | Units            |       | Amounts |  
|                                        |  |                  |       |         |  
|BALANCE, December 31, 2000              |  |                  | 6,062 |         | $
|                                        |  |                  |       |         |  
|Net income                              |  |                  | 0     |         |  
|Partnership distributions               |  |                  | 0     |         |  
|                                        |  |                  |       |         |  
|BALANCE, December 31, 2001              |  |                  | 6,062 |         |  
|                                        |  |                  |       |         |  
|Net loss                                |  |                  | 0     |         |  
|                                        |  |                  |       |         |  
|BALANCE, September 30, 2002 (unaudited) |  |                  | 6,062 |         | $
|                                        |  |                  |       |         |  

The accompanying notes are an integral part of these statements.





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WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited Partnership)

STATEMENTS OF CASH FLOWS

|                                                                                                          |  | (unaudited)Nine Months Ended |        
|--------------------------------------------------------------------------------------------------------- |  | ---------------------------- | -------
|                                                                                                          |  |                              |        
|                                                                                                          |  | September 30,2002            |        
|                                                                                                          |  |                              |        
|CASH FLOWS FROM OPERATING ACTIVITIES:                                                                     |  |                              |        
|Net (loss) income                                                                                         |  | $                            | (53,957
|Adjustments to reconcile net (loss) income to net cash (used in) provided by        operating activities: |  |                              |        
|Equity in income of joint ventures                                                                        |  |                              | 54,080 
|Changes in assets and liabilities:                                                                        |  |                              |        
|Due from affiliates                                                                                       |  |                              | 461    
|Accounts payable                                                                                          |  |                              | (1,034 
|                                                                                                          |  |                              |        
|Net cash (used in) provided by operating activities                                                       |  |                              | (450   
|                                                                                                          |  |                              |        
|CASH FLOWS FROM INVESTING ACTIVITIES:                                                                     |  |                              |        
|Investment in joint ventures                                                                              |  |                              | (59,857
|Distributions received from joint ventures                                                                |  |                              | 87,971 
|                                                                                                          |  |                              |        
|Net cash provided by operating activities                                                                 |  |                              | 28,114 
|                                                                                                          |  |                              |        
|CASH FLOWS FROM FINANCING ACTIVITIES:                                                                     |  |                              |        
|Distributions to partners from accumulated earnings                                                       |  |                              | 0      
|Distributions to partners in excess of accumulated earnings                                               |  |                              | 0      
|                                                                                                          |  |                              |        
|Net cash used in financing activities                                                                     |  |                              | 0      
|                                                                                                          |  |                              |        
|NET INCREASE IN CASH AND CASH EQUIVALENTS                                                                 |  |                              | 27,664 
|                                                                                                          |  |                              |        
|CASH AND CASH EQUIVALENTS, beginning of year                                                              |  |                              | 1,603  
|                                                                                                          |  |                              |        
|CASH AND CASH EQUIVALENTS, end of period                                                                  |  | $                            | 29,267 
|                                                                                                          |  |                              |        

The accompanying notes are an integral part of these statements.





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WELLS REAL ESTATE FUND II-OW

(A Georgia Public Limited Partnership)

CONDENSED NOTES TO FINANCIAL STATEMENTS

SEPTEMBER 30, 2002 (UNAUDITED)

1.       SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)      Organization and Business

| |  | Wells Real Estate Fund II-OW (the Partnership) is a Georgia public limited partnership with Leo F. Wells, III and Wells Capital, Inc. serving as its General Partners. The Partnership was formed
on October 23, 1987 for the purpose of acquiring, developing, constructing, owning, operating, improving, leasing, and otherwise managing income-producing properties for investment purposes. The Partnership has two classes of limited
partnership interests, Class A and Class B units. Limited partners may vote to, among other things, (a) amend the partnership agreement, subject to certain limitations, (b) change the business purpose or investment objectives of the Partnership, and
(c) remove a general partner. A majority vote on any of the above described matters will bind the Partnership without the concurrence of the general partners. Each limited partnership unit has equal voting rights regardless of
class.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On November 6, 1987, 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 7, 1988, upon receiving gross offering proceeds of $1,922,000 for 7,688 Class A and Class B limited partner units at $250 per unit from 219 limited partners.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | The Partnership owns interests in all of its real estate assets through joint ventures with other Wells Real Estate Funds. As of September 30, 2002, the Partnership owned interests in the following five properties through
the affiliated joint ventures listed below: | 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

|Joint Venture                      | Joint Venture Partners                                                                                          |    | Properties                                                                              
|---------------------------------- | --------------------------------------------------------------------------------------------------------------- | -- | ----------------------------------------------------------------------------------------
|                                  
|Fund I-II Tucker Associates        | -    Wells Real Estate Fund I-    Fund II-IIOW Associates                                                       | 1. | Heritage PlaceA retail shopping and commercial office complex located in Tucker, Georgia
|                                  
|Fund II-IIOW Associates            | -    Wells Real Estate Fund II-    Wells Real
Estate Fund IIOW                                                  | 2. | Louis Rose BuildingA two story office building located in Charlotte, North
Carolina     
|                                  
|Fund II-III Associates - Atrium    | -    Fund II-IIOW Associates-    Wells Real Estate
Fund III, L.P.                                               | 3. | Boeing at the AtriumA four story office building located in Houston, Texas              
|                                  
|Fund II-III Associates - Brookwood | -    Fund II-IIOW Associates-    Wells Real Estate
Fund III, L.P.                                               | 4. | Brookwood GrillA restaurant located in FultonCounty,
Georgia                            
|                                  
|Fund II-III-VI-VII Associates      | -    Fund II-III Associates Brookwood-    Wells Real Estate Fund VI, L.P.-    Wells Real Estate Fund VII, L.P. | 5. | Holcomb Bridge PropertyAn office/retail center located in Roswell,
Georgia              
|                                  

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

| |  | On October 1, 2001, Fund I-II-IIOW-VI-VII Associates, a joint venture among Wells Real Estate Fund I, Fund II-IIOW Associates, Wells Real Estate Fund VI, L.P. and Wells Real Estate Fund VII, L.P., sold the Cherokee
Commons property to an unrelated third party. The Cherokee Commons property is a retail shopping center located in Cherokee County, Georgia. $239,775 of the proceeds from the sale of the Cherokee Commons property are attributable to the Partnership,
a portion of which have been expended for tenant improvements at Boeing at the Atrium, as further discussed below. The remaining portion of the sales proceeds is included in due from affiliates in the accompanying balance sheet as of September 30,
2002. Currently, management intends to use a portion of these proceeds to fund tenant improvements and leasing costs anticipated to be required in connection with the leasing of the Louis Rose Building and Boeing at the
Atrium.
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | In March 2002, Boeing/Shuttle Division (Boeing) entered into a lease for the top three floors of the four-story Boeing at the Atrium, which commenced on September 1, 2002, extends for a term of 73 months and
provides annual base rent payable of $1,483,697, or $15.75 per square foot. In October 2002, Boeing exercised an option to lease an additional 11,515 square feet comprising approximately half of the first floor for the same rental rate and lease
term as that for the top three floors. The lease for the additional space on the first floor is estimated to commence in mid-November 2002.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | The Louis Rose Building located in Charlotte, North Carolina continues to remain vacant. The submarket in which this property is located, University Research Park, contains approximately 2.2 million square feet of office
space within approximately 32 buildings and is currently experiencing an overall average vacancy rate of approximately 40%. The over-supply of office space in the area has
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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| | resulted in substantial downward pressure on rental rates for Class A office buildings; however, we are continuing our efforts to market this property to potential users of office space of this type.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

(b)      Basis of Presentation

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

(c)      Distributions of Net Cash From
Operations

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

| |  |  | First, to the Class A limited partners until such limited partners have received an 8% per annum, noncumulative return on their respective adjusted
capital contributions, as defined.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Second, to the Class B limited partners until such limited partners have received an 8% per annum, noncumulative return on their respective adjusted
capital contributions, as defined.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Third, to the General Partners until each has received 10% of total distributions paid to limited partners per annum.
| | - |  | ---------------------------------------------------------------------------------------------------------------------

| |  |  | Thereafter, to the limited partners and the General Partners allocated on a basis of 90% and 10%, respectively.
| | - |  | ---------------------------------------------------------------------------------------------------------------

(d)      Reclassifications

| |  | Certain prior period amounts have been reclassified to conform with the current period financial statement presentation.
| |  | ------------------------------------------------------------------------------------------------------------------------

(e)      Impairment of Real Estate Assets

| |  | On January 1, 2002, the Partnership adopted SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Under this accounting standard, management reviews each of
the properties in which the partnership holds an interest for impairment as events or changes in circumstances arise, which indicate that the carrying amounts of such assets may not be recoverable and the future undiscounted cash flows expected to
be generated by such assets are less than the respective carrying amounts. If such assets are considered to be impaired, the Partnership records impairment losses and reduces the carrying amounts of the impaired assets to amounts that reflect the
fair value of the assets at the time impairment is evident.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | Management also reviews estimated selling prices of assets held for sale and records impairment losses to reduce the carrying amount of assets held for sale when the carrying amounts
exceed the estimated
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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| | selling prices less costs to sell. Material long-lived assets held for sale are separately identified in the balance sheets, and the related net operating income is segregated as income from discontinued operations in the
statements of income. Depreciation is not recorded for long-lived assets held for sale. If an asset held for sale reverts to an asset used in operations, the asset will be measured at the lower of the original carrying cost, adjusted for the forgone
depreciation, or the fair value at the date of the decision to hold the assets for use in operations. Neither the Partnership nor its joint ventures have recognized impairment losses to date. | 
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 

2.      INVESTMENTS IN JOINT VENTURES

(a)      Basis of Presentation

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

(b)      Summary of operations

| |  | The following information summarizes the operations of the unconsolidated joint venture, in which the Partnership holds a direct ownership interest, for the three and nine months ended September 30, 2002 and
2001:
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                            |  | Total Revenues     |         | Net Income         |   | PartnershipsShare of Net Income* | 
|--------------------------- |  | ------------------ | ------- | ------------------ | - | --------------------------------- | 
|                            |  |                    |         |                    |   |                                   | 
|                            |  | Three Months Ended |         | Three Months Ended |   | Three Months Ended                | 
|                            |  |                    |         |                    |   |                                   | 
|                            |  | September 30,2002  |         | September 30,2001  |   | September 30,2002                 | 
|                            |  |                    |         |                    |   |                                   | 
|Fund II-IIOW     Associates |  | $                  | (98,643 | )                  | $ | 88,646                            | 
|                            |  |                    |         |                    |   |                                   | 

|                            |  | Total Revenues    |          | Net Income        |   | PartnershipsShare of Net Income* | 
|--------------------------- |  | ----------------- | -------- | ----------------- | - | --------------------------------- | 
|                            |  |                   |          |                   |   |                                   | 
|                            |  | Nine Months Ended |          | Nine Months Ended |   | Nine Months Ended                 | 
|                            |  |                   |          |                   |   |                                   | 
|                            |  | September 30,2002 |          | September 30,2001 |   | September 30,2002                 | 
|                            |  |                   |          |                   |   |                                   | 
|Fund II-IIOW     Associates |  | $                 | (421,542 | )                 | $ | 631,514                           | 
|                            |  |                   |          |                   |   |                                   | 

| |  |  | * |  | The Partnerships share of income earned from its investments in the joint ventures presented in section (c) is recorded by Fund II-IIOW Associates as equity in (loss) income of joint ventures, which is classified
as revenue.
| |  |  | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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(c)         Summary of Operations

| |  | The following information summarizes the operations of the joint ventures, in which the Partnership holds interests through its ownership in Fund II-IIOW Associates, for the three and nine months ended September 30, 2002
and 2001:
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                     |  | Total Revenues     |         | Net Income         |   | Fund II-IIOW AssociatesShare of Net Income* |   
|------------------------------------ |  | ------------------ | ------- | ------------------ | - | -------------------------------------------- | --
|                                     |  |                    |         |                    |   |                                              |   
|                                     |  | Three Months Ended |         | Three Months Ended |   | Three Months Ended                           |   
|                                     |  |                    |         |                    |   |                                              |   
|                                     |  | September 30,2002  |         | September 30,2001  |   | September 30,2002                            |   
|                                     |  |                    |         |                    |   |                                              |   
|Fund II-III Associates-     Atrium   |  | $                  | 124,230 |                    | $ | 368,814                                      |   
|Fund II-III Associates     Brookwood |  |                    | 60,294  | **                 |   | 59,155                                       | **
|Fund I-II Tucker     Associates      |  |                    | 285,404 |                    |   | 309,535                                      |   
|Fund I-II-IIOW-VI VII     Associates |  |                    | 37,846  |                    |   | 255,627                                      |   
|                                     |  |                    |         |                    |   |                                              |   
|                                     |  | $                  | 507,774 |                    | $ | 993,131                                      |   
|                                     |  |                    |         |                    |   |                                              |   

|                                     |  | Total Revenues    |           | Net Income        |   | Fund II-IIOW AssociatesShare of Net Income* |   
|------------------------------------ |  | ----------------- | --------- | ----------------- | - | -------------------------------------------- | --
|                                     |  |                   |           |                   |   |                                              |   
|                                     |  | Nine Months Ended |           | Nine Months Ended |   | Nine Months Ended                            |   
|                                     |  |                   |           |                   |   |                                              |   
|                                     |  | September 30,2002 |           | September 30,2001 |   | September 30,2002                            |   
|                                     |  |                   |           |                   |   |                                              |   
|Fund II-III Associates-     Atrium   |  | $                 | 119,656   |                   | $ | 1,109,273                                    |   
|Fund II-III Associates     Brookwood |  |                   | 140,263   | **                |   | 171,690                                      | **
|Fund I-II Tucker     Associates      |  |                   | 939,416   |                   |   | 993,851                                      |   
|Fund I-II-IIOW-VI VII     Associates |  |                   | 108,124   |                   |   | 766,602                                      |   
|                                     |  |                   |           |                   |   |                                              |   
|                                     |  | $                 | 1,307,459 |                   | $ | 3,041,416                                    |   
|                                     |  |                   |           |                   |   |                                              |   

| |  |  | * |  | The Partnerships share of income earned from its investments in the joint ventures presented above is recorded by Fund II-IIOW Associates as equity in (loss) income of joint ventures, which is classified as
revenue.
| |  |  | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | ** |  | The Partnerships share of income earned from its investment in Fund II-III-VI-VI Associates, presented in Section (d), is recorded by Fund II-III Associates - Brookwood as equity in income of joint ventures,
which is classified as revenue
| |  |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





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(d)         Summary of Operations

| |  | The following information summarizes the operations of the joint venture, in which the Partnership holds an interest through its ownership in Fund II-III Associates - Brookwood, for the three and nine months ended
September 30, 2002 and September 30, 2001:
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                   |  | Total Revenues     |         | Net Income         |   | Fund II-IIII Associates -BrookwoodsShare of Net Income** | 
|---------------------------------- |  | ------------------ | ------- | ------------------ | - | ---------------------------------------------------------- | 
|                                   |  |                    |         |                    |   |                                                            | 
|                                   |  | Three Months Ended |         | Three Months Ended |   | Three Months Ended                                         | 
|                                   |  |                    |         |                    |   |                                                            | 
|                                   |  | September 30,2002  |         | September 30,2001  |   | September 30,2002                                          | 
|                                   |  |                    |         |                    |   |                                                            | 
|Fund II-III-VI- VII     Associates |  | $                  | 140,100 |                    | $ | 215,407                                                    | 
|                                   |  |                    |         |                    |   |                                                            | 

|                                  |  | Total Revenues    |         | Net Income        |   | Fund II-IIII AssociatesBrookwoodsShare of Net Income** | 
|--------------------------------- |  | ----------------- | ------- | ----------------- | - | -------------------------------------------------------- | 
|                                  |  |                   |         |                   |   |                                                          | 
|                                  |  | Nine Months Ended |         | Nine Months Ended |   | Nine Months Ended                                        | 
|                                  |  |                   |         |                   |   |                                                          | 
|                                  |  | September 30,2002 |         | September 30,2001 |   | September 30,2002                                        | 
|                                  |  |                   |         |                   |   |                                                          | 
|Fund II-III-VI-VII     Associates |  | $                 | 498,567 |                   | $ | 631,698                                                  | 
|                                  |  |                   |         |                   |   |                                                          | 

| |  |  | ** |  | The Partnerships share of income earned from its investment in Fund II-III-VI-VI Associates is recorded by Fund II-III Associates - Brookwood as equity in income of joint ventures, which is classified as
revenue
| |  |  | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

(a)      Forward Looking Statements

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

(b)      Results of Operations

RevenuesGross revenues decreased to a
deficit of $53,957 for the nine months ended September 30, 2002, from $5,908 for the nine months ended September 30, 2001, primarily due to the decrease in earnings generated from Fund II-IIOW Associates resulting from (i) the vacancy of the Louis
Rose Building beginning in May 2001, (ii) a reduction in occupancy of Boeing at the Atrium beginning in December 2001, (iii) a reduction in income generated from Fund I-II-IIOW-VI-VII Associates relating to the sale of the Cherokee Commons property
in the third quarter of 2001, (iv) a decrease in rental rates and an increase in legal fees related to lease negotiations for Brookwood Grill, (v) several uncollectible tenant receivables for Heritage Place that were written off in 2002, and (vi) a
decrease in occupancy at Heritage Place and the Holcomb Bridge Property during the nine months ended September 30, 2002.

In March 2002, Boeing/Shuttle Division
(Boeing) entered into a lease for the top three floors of the four-story Boeing at the Atrium, which commenced on September 1, 2002, extends for a term of 73 months and provides annual base rent payable of $1,483,697, or $15.75 per
square foot. In October 2002, Boeing exercised an option to lease an additional 11,515 square feet comprising approximately half of the first floor for the same rental rate and lease term as that for the top three floors. The lease for the
additional space on the first floor is estimated to commence in mid-November 2002.

Distributions The Partnership has reserved distributions to the Class A limited partners for the first, second and third quarters of 2002 due to the reasons described in the preceding section. Distributions were made to
the limited partners holding Class A units of $8.28 per unit with respect to the nine months ended September 30, 2001. Such distributions have been made from net cash from operations and distributions received from investments in joint ventures. No
cash distributions have been made to the limited partners holding Class B units or to the General Partners.

The General Partners guidance with regard to future
operating cash distributions to the limited partners holding Class A units is that such distributions are likely to be reinstated following the re-leasing the Louis Rose Building and funding related leasing costs and tenant improvements.





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(c)    Liquidity and Capital Resources

Net cash flows from operating activities decreased to a
deficit of $450 used for the nine months ended September 30, 2002, from $45 provided for nine months ended September 30, 2001, primarily due to a change in the timing of paying accounts payable in 2002. Cash flows from investing activities decreased
to $28,114 for the nine months ended September 30, 2002, from $69,578 for the same period in 2001 as a result of contributing capital to Fund II-III Associates  Atrium for the purpose of funding tenant improvements for Boeing at the Atrium,
partially offset by proceeds from the sale of Cherokee Commons, which the Partnership received in the second quarter of 2002. Net cash used in financing activities was $0 for the nine months ended September 30, 2002, compared to $66,124 for the nine
months ended September 30, 2001 as a result of the General Partners decision to reserve cash otherwise available for distributions to limited partners holding Class A units as further described below.

The
Partnership expects to continue to meets its short-term liquidity requirements, generally through the use of net cash from operations and distributions received from investments in joint ventures. The General Partners believe that such sources will
continue to provide adequate cash flows for the purposes of meeting the Partnership operating requirements.

Rather than being distributed to the limited partners, the Partnerships share of the net
proceeds generated from the sale of Cherokee Commons is currently being held as reserves in order to fund leasing costs as well as actual and anticipated tenant improvements for Boeing at the Atrium and the Louis Rose Building, respectively. As set
forth in the preceding section, the General Partners anticipate restating distributions to limited partners holding Class A units following the re-leasing of the Louis Rose Building and funding all tenant improvements and other related lease-up
costs.

(d)      Inflation

The real estate market has not been affected significantly by inflation in the
past three years due to the relatively low inflation rate. Most tenant leases include provisions designed to protect the Partnership from the impact of inflation and increases in costs and other operating expenses, including common area maintenance,
real estate tax and insurance reimbursement billings to tenants either on a per square foot basis or above a certain allowance per square foot annually. In addition, a number of the tenant leases in which the Partnership holds an interest are for
remaining terms of less than five years, which may allow the joint ventures discussed in Note 1 to enter into new leases at higher base rental rates in the event that market rental rates rise above the existing lease rates. There is no assurance,
however, that the joint ventures would be able to replace existing leases with new leases at higher base rental rates.

(e)      Critical Accounting
Policies

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

The accounting policies that we consider to be critical, in that they may require complex judgment in





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their application or require estimates about matters that are inherently uncertain, are discussed below. For further information related to the
Partnerships accounting policies, including the critical accounting policies described below, refer to the report filed for the Partnership on Form 10-K for the year ended December 31, 2001.

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

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

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

ITEM 4. CONTROLS AND PROCEDURES

Within the 90 days prior to the date of this report, the Partnership carried out an evaluation, under the
supervision and with the participation of management of Wells Capital, Inc., the corporate General Partner of the Partnership, including the Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and
operation of the Partnerships disclosure controls and procedures pursuant to Rule 13a  14 under the Securities Exchange Act of 1934. Based upon that evaluation, the Principal Executive Officer and Principal Financial Officer concluded
that the Partnerships disclosure controls and procedures were effective.

There were no significant changes in the Partnerships internal controls or other
factors that could significantly affect such controls subsequent to the date of their evaluation.





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##### Table of Contents

PART II. OTHER INFORMATION

ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K

|(a) |  | The Exhibits to this report are set forth on the Exhibit Index to Third Quarter Form 10-Q attached hereto.                                                                                                                             
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |  |                                                                                                                                                                                                                                        
|(b) |  | During the third quarter of 2002, the Registrant filed a Current Report on Form 8-K dated July 3, 2002 disclosing the appointment of Ernst & Young LLP as the principal accountant to audit the financial statements of
the Registrant.

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 II-OW(Registrant)
| |  | ----------------------------------------
| |  | By:                                     
| |  | (Corporate General Partners)            

|                  |  |  |                           
|----------------- |  |  | --------------------------
|November 13, 2002 |  |  | /s/  LEOF. WELLS, III     
|                  |  |  |                           
|                  |  |  | Leo F. Wells, IIIPresident

|                  |  |  |                                                                     
|----------------- |  |  | --------------------------------------------------------------------
|November 13, 2002 |  |  | /s/  DOUGLASP. WILLIAMS                                             
|                  |  |  |                                                                     
|                  |  |  | Douglas P. WilliamsPrincipal Financial Officerof Wells Capital, Inc.

CERTIFICATIONS

I, Leo F. Wells, III, certify that:

| | 1. |  | I have reviewed this quarterly report on Form 10-Q of the Partnership;                                                                                                                                                                                                                                                        
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | 2. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;





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##### Table of Contents

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

| | 4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared,
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and                                                                                                  
| |    | 
| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;                                                                                                                        

| | 5. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the board of directors of the corporate General
Partner:
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and                                                                                                                                        

| | 6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                         |  |    
|------------------------ |  | ---
|Dated: November 13, 2002 |  | By:
|                         |  |    
|                         |  |    

CERTIFICATIONS

| |  | I, Douglas P. Williams, certify that:
| |  | -------------------------------------





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##### Table of Contents

| | 1. |  | I have reviewed this quarterly report on Form 10-Q of the Partnership;
| | -- |  | ----------------------------------------------------------------------

| | 2. |  | Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this quarterly report;
| | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | 3. |  | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this quarterly report;                   
| |    | 
| | 4. |  | The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:                                                                                                        

| | a) |  | designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared,
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | b) |  | evaluated the effectiveness of the registrants disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the Evaluation Date); and                                                                                                  
| |    | 
| | c) |  | presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;                                                                                                                        

| | 5. |  | The registrants other certifying officers and I have disclosed, based on our most recent evaluation, to the registrants auditors and the board of directors of the corporate General
Partner:
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | a) |  | all significant deficiencies in the design or operation of internal controls which could adversely affect the registrants ability to record, process, summarize and report financial data and have identified for the
registrants auditors any material weaknesses in internal controls; and
| | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |    | 
| | b) |  | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls; and                                                                                                                                        

| | 6. |  | The registrants other certifying officers and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.
| | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                         |  |    
|------------------------ |  | ---
|Dated: November 13, 2002 |  | By:
|                         |  |    
|                         |  |    





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EXHIBIT INDEXTOTHIRD QUARTER FORM 10-QOFWELLS REAL ESTATE FUND II-OW

|ExhibitNo. | Description                                                                                       
|---------- | --------------------------------------------------------------------------------------------------
|           |                                                                                                   
|99.1       | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|           |                                                                                                   
|99.2       | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002