Exhibit 99.1

Dear <<Investor Name>>:

As many of you know, I am a strong proponent of continually striving to improve customer service for our many investors. This quarter, in our effort to keep you more fully informed about your investment(s) in the public limited partnerships of Wells Real Estate Funds, we are pleased to introduce a quarterly update on your limited partnership portfolio(s).

Enclosed you will find individual fact sheets for each Wells limited partnership in which you hold units. The following is a list of your investment(s) and the number of units you own:

<<Amount of Units>>

The fact sheets include valuable information, including a portfolio summary with properties purchased and sold, and current leasing percentages. In addition, they provide a history of each portfolio’s annualized yield and tax passive losses. Also highlighted is a portfolio overview, with specific summaries on each limited partnership in which you have an interest. For a more in-depth discussion of your investment, I encourage you to reference the third quarter Form 10-Q filing for your fund(s), which will be available on or about November 15, 2004, on the Wells Web site at www.wellsref.com. Your investor login is “investor,” and the password is “growth.”

I hope you have found the information in this letter and the enclosed fact sheet(s) informative. Should you have any questions, I invite you to contact our Wells Investor Services Specialists at 800-557-4830, or by e-mail at investorservices@wellsref.com. Our extended hours, for your convenience, are Monday through Thursday from 8:15 a.m. until 7:30 p.m., and Friday from 8:15 a.m. until 5:30 p.m. Eastern Time. At Wells, we always look forward to hearing from you.

Sincerely,

Leo F. Wells III

General Partner

Enclosure(s)

cc:  Financial Representative

Wells Real Estate Fund V, L.P. Fact Sheet            V

DATA AS OF SEPTEMBER 30, 2004

PORTFOLIO SUMMARY

PROPERTIES OWNED	% LEASED AS OF 9/30/04	PERCENT OWNED
10407 Centurion Parkway North (Formerly known as the IBM Jacksonville Building)	63%	62%
Hartford	SOLD	46%
Marathon	100%	16%
Stockbridge Village II	SOLD	46%
Village Overlook	SOLD	62%
WEIGHTED AVERAGE	70%

FUND FEATURES

OFFERING DATES	March 1992 – March 1993
PRICE PER UNIT	$10
A/B STRUCTURE	A’s – Cash available for operating distribution up to 10% Preferred B’s – Net loss until capital account reaches zero + No Operating Distributions
A/B RATIO AT CLOSE OF OFFERING	89% to 11%
AMOUNT RAISED	$17,006,020

ADDITIONAL INFORMATION

Portfolio Overview

Wells Fund V has moved from the positioning-for-sale phase into the disposition-and-liquidation phase of its life cycle. We have sold three assets, including the recent sale of Stockbridge Village II. Our focus on the remaining assets involves re-leasing and marketing efforts that we believe will result in the best disposition pricing for our investors.

The recent sale of the Stockbridge Village properties on April 29, 2004, was a highlight for the Fund, which held an interest of approximately 46% in Stockbridge Village II. The sale capitalized on the current strong investor demand for grocery-anchored shopping centers in the market. We have secured 100% occupancy at the Marathon building through two long-term leases, placing this asset in a stable condition, and leasing activity at 10407 Centurion Parkway North has improved. We made our first distribution of net sale proceeds in January 2004 to limited partners, totaling approximately $1,507,000. We also have announced the next net sale proceeds distribution to limited partners, scheduled for the fourth quarter 2004, totaling approximately $3,286,000 from the sales of the Hartford and Village Overlook properties.

With only two properties remaining in the Fund, the General Partners are currently reserving operating cash and the remaining net sale proceeds from the sales of Village Overlook and Stockbridge Village II to fund the re-leasing costs anticipated for the remaining vacancy at 10407 Centurion Parkway North. We anticipate that operating distributions will continue to be reserved in the near term, as re-leasing occurs at this property, particularly given that operating cash flow has decreased with the recent sale of the Stockbridge Village II property and the remaining free rent periods at Marathon. As we move into 2005 and the outcome of the property re-leasing effort is known, the General Partners will evaluate if further distributions of net sale proceeds are appropriate.

While operating distributions to Class A unit holders have been reserved, we would like to highlight that, through September 30, 2004, current Class A unit holders have received cumulative net operating cash flows of approximately $10.1 million since inception, which equates to approximately 64% of the $15.7 million originally invested. Limited partners who have held Class B units since inception have cumulatively received $6.20 per unit in allocated tax losses through December 31, 2003.

No operating distributions have been made to investors holding Class B units or to the General Partners, in line with the partnership agreement.

Continued on Page 2

6200 The Corners Parkway • Norcross, GA 30092-3365 • www.wellsref.com • 800-448-1010

FSLPQ304-09 ©2004 Wells Real Estate Funds

Wells Real Estate Fund V, L.P. Fact Sheet            V

DATA AS OF SEPTEMBER 30, 2004

ANNUALIZED YIELD — PER “A” UNIT AT $10 OFFERING PRICE

	Q1		Q2		Q3		Q4		AVG YTD
2004	Reserved		Reserved		Reserved		—		—
2003	2.50	%	2.50	%	2.00	%	Reserved		1.75	%
2002	7.25	%	6.50	%	6.50	%	2.50	%	5.69	%
2001	7.00	%	7.00	%	7.75	%	7.25	%	7.25	%
2000	6.19	%	7.50	%	7.51	%	7.75	%	7.24	%
1999	7.29	%	7.75	%	7.71	%	7.77	%	7.63	%
1998	7.44	%	7.73	%	7.62	%	7.03	%	7.46	%
1997	6.78	%	7.04	%	7.17	%	7.44	%	7.11	%
1996	6.64	%	6.17	%	6.86	%	6.39	%	6.52	%
1995	6.10	%	7.55	%	6.38	%	6.43	%	6.62	%
1994	3.82	%	5.67	%	5.55	%	5.28	%	5.08	%
1993	0.00	%	0.00	%	3.98	%	3.43	%	1.85	%
1992	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%

TAX PASSIVE LOSSES – CLASS B PARTNERS

2004	2003		2002		2001		2000		1999
—	-39.26	%*	0.00	%	0.99	%	0.00	%	0.00	%

* Negative percentage due from gain allocation.

Property Summary

• The leasing efforts at 10407 Centurion Parkway North continue. A 18,843-square-foot lease with Synovus Bank was signed in the first quarter 2004, with a lease term from June 1, 2004, through May 31, 2015. We have executed a lease with ADP for approximately 32,000 square feet for a lease term of July 1, 2004, through November 30, 2009. We also executed a 3,040-square-foot lease with Commercial Jacksonville, effective June 1, 2004, through November 30, 2009. These leases bring the building occupancy to approximately 63%.

• The Hartford property was sold in 2003, delivering allocated net sale proceeds to the Fund of approximately $3,780,000. Approximately $1,209,000 has been used to fund the Partnership’s pro-rata share of operating expenses, re-leasing costs, and capital expenditures at the Marathon and 10407 Centurion Parkway North properties. Approximately $1,507,000 of the net sale proceeds was distributed to limited partners in January 2004. The remaining proceeds of approximately $1,065,000 are planned to be distributed in the fourth quarter 2004.

• The Marathon property is 100% leased, with a new seven-year lease to Marathon for approximately 44,000 square feet, and a 10-year lease to Virchow Krause for approximately 27,000 square feet. Each of these leases included a free rent period, which extends through July 2004 and December 2004, respectively. The Marathon property is currently providing positive cash flow since the Marathon free rent period has expired. With these new leases in place, we are now marketing this asset for sale.

• The Stockbridge Village II property was sold on April 29, 2004, and approximately $1,255,000 in net sale proceeds has been allocated to Fund V. The proceeds are being reserved to fund the remaining re-leasing costs at 10407 Centurion Parkway North.

• Village Overlook was sold in 2003, and approximately $3,114,000 of the net sale proceeds was allocated to the Fund. Approximately $559,000 has been used to fund the Partnership’s pro-rata share of operating expenses, re-leasing costs, and capital expenditures at the Marathon and 10407 Centurion Parkway North properties. Net sale proceeds of approximately $2,221,000 are planned to be distributed in the fourth quarter 2004, and the approximate remaining $334,000 is being reserved to fund the remaining re-leasing costs at 10407 Centurion Parkway North.

For further information, please refer to Fund V’s most recent

10-Q filing, which can be found on the Wells Web site at

www.wellsref.com.

6200 The Corners Parkway • Norcross, GA 30092-3365 • www.wellsref.com • 800-448-1010

FSLPQ304-09 ©2004 Wells Real Estate Funds