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                                                                    EXHIBIT 99.3

FIRST UNION REAL ESTATE INVESTMENTS
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AT THE COMPANY
Brenda J. Mixson
Chief Financial Officer
(212) 905-1104

FOR IMMEDIATE RELEASE

                       FIRST UNION REAL ESTATE INVESTMENTS
                          ANNOUNCES SUIT BY SHAREHOLDER
                REGARDING LETTER OF INTENT WITH RADIANT PARTNERS

NEW YORK, NEW YORK, JUNE 26, 2000 --- FIRST UNION REAL ESTATE INVESTMENTS
(NYSE:FUR) announced today that shortly after it had signed a letter of intent
concerning a possible transaction with Radiant Partners, LLC, an entity called
Brickell Partners commenced a self-styled class action lawsuit against First
Union, all of its trustees, and Radiant in state court in New York City. The
complaint, which seeks preliminary and permanent injunctive relief against the
transaction, as well as unspecified damages, costs, and attorneys' fees, alleges
that the terms of the proposed transaction are unfair to the Company's
stockholders and represent a breach by the defendant trustees of their fiduciary
duties.

Although the complaint alleges that Brickell Partners is a stockholder, it does
not say how many shares Brickell owns or when those shares were purchased. Nor
does the complaint identify any party who Brickell believes would be willing to
pay a price higher than that offered by Radiant or state that the terms of the
letter of intent preclude or deter any third party from offering a higher price.

William A. Ackman, Chairman of First Union commented on the lawsuit: "The
proposed transaction with Radiant is the product of a nine-month exploration of
alternatives by the Company and its advisors. No party has offered terms
superior to those proposed by Radiant, but should any third party do so, the
Board would consider such a proposal. In addition, any further transaction with
Radiant is subject to the negotiation and execution of a definitive agreement,
the receipt by Radiant of mezzanine and equity financing and approval of the
Company's stockholders."

"Accordingly, we view this lawsuit as utterly without merit. It represents an
effort by one stockholder to divert value to itself at the expense of all
stockholders, which is consistent with the pattern of numerous prior litigations
Brickell Partners has brought against other parties. First Union and its Board
will defend the matter vigorously."

Certain statements contained in this news release that are forward-looking are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to, changes in market activity, changes in local
real estate conditions and markets, actions by competitors, interest rate
movements and general economic conditions. Further information about these
matters can be found in the information included in the Annual Report filed by
the Company with the SEC on Form 10K/A.

First Union Real Estate Equity and Mortgage Investments is a NYSE-listed
stapled-stock real estate investment trust (REIT) headquartered in New York, New
York.