1
================================================================================
 
                                  SCHEDULE 14A
                                   (RULE 14a)
                    INFORMATION REQUIRED IN PROXY STATEMENT
                            SCHEDULE 14A INFORMATION
          PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
                              EXCHANGE ACT OF 1934
 
Filed by the Registrant  [X]
 
Filed by a Party other than the Registrant  [ ]
 
Check the appropriate box:
 
                                             
[ ]  Preliminary Proxy Statement                [ ]  CONFIDENTIAL, FOR USE OF THE COMMISSION
                                                     ONLY (AS PERMITTED BY RULE 14a-6(e)(2))
[ ]  Definitive Proxy Statement
[ ]  Definitive Additional Materials
[X]  Soliciting Material Pursuant to sec.240.14a-11(c) or sec.240.14a-12


 
            FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
                (NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
 

    (NAME OF PERSON(S) FILING PROXY STATEMENT, IF OTHER THAN THE REGISTRANT)
 
Payment of Filing Fee (Check the appropriate box):
[X]  No fee required.
[ ]  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
 
     (1) Title of each class of securities to which transaction applies: .......
 
     (2) Aggregate number of securities to which transaction applies: ..........
 
     (3) Per unit price or other underlying value of transaction computed
         pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
         filing fee is calculated and state how it was determined): ............
 
     (4) Proposed maximum aggregate value of transaction: ......................
 
     (5) Total fee paid: .......................................................
 
[ ]  Fee paid previously with preliminary materials.
 
[ ]  Check box if any part of the fee is offset as provided by Exchange Act Rule
     0-11(a)(2) and identify the filing for which the offsetting fee was paid
     previously. Identify the previous filing by registration statement number,
     or the Form or Schedule and the date of its filing.
 
     (1) Amount Previously Paid: ...............................................
 
     (2) Form, Schedule or Registration Statement No.: .........................
 
     (3) Filing Party: .........................................................
 
     (4) Date Filed: ...........................................................
 
================================================================================
   2
FIRST UNION REAL ESTATE INVESTMENTS
================================================================================

AT THE COMPANY                              IN CLEVELAND, OHIO
- --------------                              ------------------
Thomas T. Kmiecik                           Stanley L. Ulchaker
Senior Vice President and Treasurer         Edward Howard Co.
(216) 781-4030                                       (216) 781-2400



FOR IMMEDIATE REALEASE

                  FIRST UNION RECEIVES PARKING DECK COMMITMENT
                  --------------------------------------------
                     FROM THE CITY OF WENATCHEE, WASHINGTON
                     --------------------------------------

CLEVELAND, OHIO, MAY 4, 1998 -- FIRST UNION REAL ESTATE INVESTMENTS (NYSE: FUR)
today announced that its plans to build a regional shopping mall serving the
Wenatchee Valley in Washington moved a step closer to reality when Wenatchee
City Commissioners approved plans to purchase two parking decks to be built on
the mall site.

Land constraints make parking decks a necessity if First Union is to demolish
the existing 171,000-square-foot Valley North Mall and redevelop the site into a
true regional mall. Plans call for construction of a 450,000-square-foot,
two-level, three-anchor tenant mall.

Under terms of the purchase, First Union will build the parking decks as part of
the mall construction. The City of Wenatchee will purchase the parking decks
from First Union, then sublease them back to First Union at no charge.
Financial participation by the City of Wenatchee was a critical component in
making the redevelopment project a reality.

Purchase price for the two decks, which will contain 1,180 parking spaces, is
not to exceed $8 million. The City will finance the purchase through the
issuance of general obligation bonds.

First Union said it is currently in the process of securing letters of intent
from three major national anchor department stores. It plans to begin demolition
of the existing mall in spring 1999 with the new mall scheduled to be opened in
21-24 months.

First Union Real Estate Investments is a unique stapled-stock real estate
investment trust (REIT) headquartered in Cleveland, Ohio, and traded on the New
York Stock Exchange.


                                      ###