EXHIBIT 99.1

                                  PRESS RELEASE

AT THE COMPANY
Neil H. Koenig
Interim Chief Financial Officer
(212) 949-1373

             FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
           AND FUR INVESTORS, LLC ANNOUNCE PROPOSED EQUITY INVESTMENT
                                AND TENDER OFFER

FOR IMMEDIATE RELEASE - November 26, 2003 - First Union Real Estate Equity and
Mortgage Investments (NYSE:FUR) and FUR Investors, LLC, an entity controlled by
real estate investor Michael L. Ashner, today announced that they have entered
into a Stock Purchase Agreement pursuant to which FUR Investors, LLC will
purchase a minimum of 5,000,000 and a maximum of 5,185,724 newly issued common
shares from the Company at a price of $2.60 per share. As part of the
transaction, FUR Investors, LLC will also commence a tender offer to purchase up
to 5,000,000 common shares, at a price of $2.30 per share. In the event that the
tender offer is not fully subscribed, the Company will increase the number of
shares to be issued to FUR Investors, LLC by the amount of the deficiency, up to
a total of 5,185,724 newly issued shares. The tender offer is expected to
commence on or prior to December 5, 2003. The closing of the purchases under the
Stock Purchase Agreement will occur shortly after the closing of the tender
offer, at which time FUR Investors, LLC will own a maximum of 10,000,000 common
shares of the Company.

The Stock Purchase Agreement provides that the Company's existing board of
trustees shall review and approve recommendations made by Mr. Ashner for
additional members to the Company's board of trustees to serve upon the closing
of the transaction. Two of the existing members of the board of trustees are
expected to resign at such time. The transaction is subject to customary closing
conditions.

As part of the transaction, at the closing, Mr. Ashner will become President and
Chief Executive Officer of the Company and an affiliate of Mr. Ashner will
provide asset management and general advisory services for the Company pursuant
to an advisory agreement negotiated at arms-length between the Company's
existing board of trustees and Mr. Ashner. Mr. Ashner has no present affiliation
with the Company and owns less than 0.04% of the outstanding common shares.

FUR INVESTORS, LLC HAS NOT YET COMMENCED THE TENDER OFFER REFERRED TO IN THIS
RELEASE. UPON THE COMMENCEMENT OF THE TENDER OFFER, FUR INVESTORS, LLC WILL FILE
A TENDER OFFER STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION. THAT
STATEMENT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE TENDER OFFER AND SHOULD
BE READ BY SECURITY HOLDERS. WHEN THE TENDER OFFER IS COMMENCED, YOU WILL BE
ABLE TO OBTAIN AT NO CHARGE (I) THE TENDER OFFER STATEMENT AND OTHER



DOCUMENTS WHEN THEY BECOME AVAILABLE ON THE SECURITIES AND EXCHANGE COMMISSION'S
WEBSITE AT HTTP://WWW.SEC.GOV AND (II) THE OFFER TO PURCHASE AND ALL RELATED
DOCUMENTS FROM THE OFFEROR.

IN ADDITION, INVESTORS AND SECURITY HOLDERS SHOULD READ FIRST UNION'S SCHEDULE
14D-9, WHEN FILED, AS IT WILL CONTAIN THE REGISTRANT'S RECOMMENDATION STATEMENT
IN CONNECTION WITH THE TENDER OFFER AND OTHER IMPORTANT INFORMATION RELATING TO
THE TENDER OFFER. Investors and security holders may obtain a free copy of the
Schedule 14D-9 and related documents when filed with the Securities and Exchange
Commission at the Commission's website listed above.

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