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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 A3RsGXy3kTOaTnAw3IwOFJTloWTysetNcHbIx7Eg6Vfsbj0vu4j5P3mxfmd675PK
 eWvpWROxDY0Cuzq3NffCOg==

<SEC-DOCUMENT>0001125282-05-002921.txt : 20050611
<SEC-HEADER>0001125282-05-002921.hdr.sgml : 20050611
<ACCEPTANCE-DATETIME>20050602172408
ACCESSION NUMBER:		0001125282-05-002921
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050516
FILED AS OF DATE:		20050602
DATE AS OF CHANGE:		20050602

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BLUE RIDGE REAL ESTATE CO
		CENTRAL INDEX KEY:			0000012779
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				240854342
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1031

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 707
		CITY:			BLAKESLEE
		STATE:			PA
		ZIP:			18610
		BUSINESS PHONE:		7174438433

	MAIL ADDRESS:	
		STREET 1:		PO BOX 707
		CITY:			BLAKESLEE
		STATE:			PA
		ZIP:			18610

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KC Holdings, Inc.
		CENTRAL INDEX KEY:			0001328236
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-02844
		FILM NUMBER:		05875082

	BUSINESS ADDRESS:	
		STREET 1:		3333 NEW HYDE PARK ROAD
		STREET 2:		SUITE 100
		CITY:			NEW HYDE PARK
		STATE:			NY
		ZIP:			11042
		BUSINESS PHONE:		516-869-7290

	MAIL ADDRESS:	
		STREET 1:		3333 NEW HYDE PARK ROAD
		STREET 2:		SUITE 100
		CITY:			NEW HYDE PARK
		STATE:			NY
		ZIP:			11042
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>b406902_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-05-16</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000012779</issuerCik>
        <issuerName>BLUE RIDGE REAL ESTATE CO</issuerName>
        <issuerTradingSymbol>BLRGZ</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001328236</rptOwnerCik>
            <rptOwnerName>KC Holdings, Inc.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>3333 NEW HYDE PARK ROAD</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 100</rptOwnerStreet2>
            <rptOwnerCity>NEW HYDE PARK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>11042</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-05-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>18291</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>38.00</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>86094</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Subscription Rights (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>38.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-05-16</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>M</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>18291</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2005-05-16</value>
            </exerciseDate>
            <expirationDate>
                <value>2005-05-16</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>18291</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <remarks>KC Holdings, Inc. (&quot;KC Holdings&quot;) may be deemed to be a 10% owner by reason of its joint filing on Schedule 13D with Kimco
 Realty Corporation (&quot;Kimco&quot;), Kimco Realty Services, Inc. (&quot;Services&quot;) and Milton Cooper under Section 13(d) of the
 Securities Exchange Act of 1934, as amended.  KC Holdings disclaims beneficial ownership of shares of Common Stock owned by
 Kimco, Services and Mr. Cooper.</remarks>

    <ownerSignature>
        <signatureName>Milton Cooper, President of KC Holdings, Inc.</signatureName>
        <signatureDate>2005-05-20</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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