Exhibit 99.1

FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS

AT THE COMPANY
Carolyn Tiffany
Chief Operating Officer
(617) 570-4614

  FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS ANNOUNCES APPROVAL OF
                  SALE OF COMMON SHARES TO VORNADO REALTY TRUST

FOR IMMEDIATE RELEASE - Boston, Massachusetts, August 8, 2005 - First Union Real
Estate Equity and Mortgage Investments (NYSE:FUR) today announced that its Board
of Trustees has approved the sale to Vornado Realty Trust and its subsidiaries
of not less than 3,522,000 and not more than 4,000,000 of its common shares of
beneficial interest for a purchase price of $4.00 per share. After giving effect
to such sale, Vornado would hold approximately 9.9% of First Union's outstanding
common shares. The sale, which will be made pursuant to First Union's effective
shelf registration statement on Form S-3, is conditioned upon the execution of
definitive documentation containing the final terms and conditions of the
agreement as well as customary closing conditions. The closing of the sale is to
occur on the earlier of the date of closing of First Union's investment in
Newkirk Realty Trust, Inc. ("Newkirk") or March 31, 2006. First Union shall have
the right, but not the obligation, to terminate the sale agreement with Vornado
if First Union has not made its proposed investment in Newkirk by March 28,
2006. First Union has issued today a press release relating to its investment in
Newkirk.

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

Certain statements contained in this press 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. Further information about the
risks generally with respect to First Union can be found in First Union's Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission.