SCHEDULE 14A

                               (RULE 14A-101)
                  INFORMATION REQUIRED IN PROXY STATEMENT
                          SCHEDULE 14A INFORMATION
        PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
                   EXCHANGE ACT OF 1934 (Amendment No. )

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          First Union Real Estate Equity and Mortgage Investments
          -------------------------------------------------------
              (Name of Registrant as Specified in Its Charter)

                           Gotham Partners, L.P.
          -------------------------------------------------------
                  (Name of Person Filing Proxy Statement)

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FOR IMMEDIATE RELEASE
- ---------------------

Contacts:   Bill Ackman       or    George Sard/David Reno/Fred Bratman
            David Berkowitz         Sard Verbinnen & Co
            Gotham Partners         (212) 687-8080
            (212) 286-0300

         INSTITUTIONAL SHAREHOLDER SERVICES RECOMMENDS VOTE AGAINST
             FIRST UNION REAL ESTATE CHAIRMAN AT MAY 19 MEETING

                 ISS RECOMMENDS VOTE FOR GOTHAM'S NOMINEES

     NEW YORK, MAY 12, 1998 - Institutional Shareholder Services (ISS), an
independent proxy advisory firm, recommended in a report issued on May 7,
1998 that shareholders vote against First Union Real Estate's (NYSE:FUR)
Chairman James C. Mastandrea and First Union's other nominees for the three
board seats up for election at the Company's May 19, 1998 meeting. ISS
recommended that shareholders vote in favor of the Gotham nominees for the
three seats, and recommended against an expansion of the Board.

     In the report, ISS commented on First Union's attempts to
disenfranchise Gotham:

          "Disenfranchising a shareholder is a serious matter. The fact
          that the board construes the declaration [of trust] to give it
          license to selectively seek a high degree of disclosure, to judge
          fulfillment, and to wield sanctions on all of the holder's shares
          should rouse fear in the heart of any shareholder. Such broad
          authority in the hands of any board is both arbitrary and
          reckless."

     Gotham believes that leaving the existing board in control will lead
to the continued destruction of shareholder value. In light of the poor
performance of the Company, strong measures are required to restore and
create future value for shareholders. The existing board and management
have had five years to create future value for shareholders, and despite
the extraordinary performance of nearly every real estate asset class and
real estate investment trust during this period, management and the board
have failed to create any value for shareholders.

     Gotham urges shareholders to support its proposals at the special
meeting on May 19. Shareholders who have questions should contact Bill
Ackman, David Berkowitz or David Klafter at Gotham Partners at
212-286-0300.

     Gotham Partners is a private New York investment partnership. First
Union is a stapled-stock real estate investment trust (REIT).