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
[X]  Definitive Proxy Statement
[ ]  Definitive Additional Materials
[ ]  Soliciting Material Pursuant to (section)240-14a-11(c) or
          (section)240-14a-12

                           Franklin Select Realty Trust 
                (Name of Registrant as Specified In its Charter)

                            Franklin Select Realty Trust
                   (Name of Person(s) Filing Proxy Statement)


Payment of Filing Fee (Check the appropriate box):

[X] $125 per Exchange Act Rules 0-11(c)(1)(ii),  14a-6(i)(1),  or 14a-6(i)(3)
    or Item  22(a)(2)  of  Schedule  14A
[ ] $500  per each  party  to the  controversy pursuant to Exchange  Act
    Rule  14a-6(i)(3)
[ ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11

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                    transaction applies:


               2)   Aggregate number of securities to which transaction
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                    transaction computed pursuant to Exchange Act Rule 0-11:


               4)   Proposed maximum aggregate value of transaction:


               5)   Total fee paid:


1 Set forth the amount on which the filing  fee is  calculated  and state how
it was determined.

[ ] Fee paid previously with preliminary material. 

[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
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                         FRANKLIN SELECT REALTY TRUST
                               PROXY STATEMENT

              ANNUAL MEETING OF SHAREHOLDERS SEPTEMBER 17, 1996

                SOLICITATION, REVOCATION AND VOTING OF PROXIES

This proxy  statement and the enclosed proxy are furnished in connection  with
the annual meeting of  shareholders  (the "Meeting") of Franklin Select Realty
Trust (the  "Company") to be held on September  17, 1996,  at 2 p.m.,  Pacific
daylight time, at the Company's  principal  executive  offices  located at 777
Mariners Island Boulevard,  San Mateo,  California.  Shareholders of record at
the close of business on July 22, 1996,  are entitled to notice of and to vote
at the Meeting.  On that date,  there were 13,328,001  shares of Common Stock,
Series  A  outstanding,   and  745,584  shares  of  Common  Stock,   Series  B
outstanding  (collectively the "Common Stock").  Each share of Common Stock is
entitled  to one vote,  and a  majority  of the shares  entitled  to vote will
constitute a quorum.

The  enclosed  proxy is being  solicited by the  Company's  Board of Directors
(the  "Directors").  You may  revoke  your  proxy  at any  time  before  it is
exercised by  delivering a written  notice to the Company  expressly  revoking
your proxy,  by signing and forwarding to the Company a later-dated  proxy, or
by attending the Meeting and casting your votes in person.

The cost of soliciting  proxies will be borne by the Company.  The Company has
retained Chemical Mellon  Shareholder  Services,  L.L.C.,  its transfer agent,
and  may  also  retain  a  professional  proxy  solicitation  firm  to  assist
shareholders  and the  Company in the voting  process in  connection  with the
Meeting.  The Company may request  brokerage houses and other  institutions to
forward  the  solicitation  material  to persons  for whom they hold shares of
Common Stock and to obtain  authorization  for the  execution of proxies.  The
Company  will  reimburse  brokerage  houses and other  institutions  for their
reasonable expenses in forwarding the Company's proxy material.

This proxy  statement  and the  enclosed  proxy are  scheduled to be mailed to
shareholders commencing on or about July 26, 1996.

The proxy holders will vote all proxies received.  It is the present intention
that, absent contrary instructions,  the enclosed proxy will be voted: FOR the
election  as  Directors  of the  nominees  named  hereinafter,  but the  proxy
holders  reserve full  discretion to cast votes for other persons in the event
any such nominees are unable to serve;  FOR the  ratification of the selection
of Coopers & Lybrand  L.L.P.  as auditors  for the Company for the fiscal year
ending  December 31, 1996;  and, in the discretion of the proxy holders,  upon
such other matters not now known or determined  which may properly come before
the Meeting.

                      PROPOSAL 1: ELECTION OF DIRECTORS

The  enclosed  proxy will be voted,  unless  authority  is  withheld,  for the
election of the nominees  named  herein as  Directors of the Company,  to hold
office  until  the  next  Annual  Meeting  of  Shareholders  and  until  their
successors  are elected and  qualified.  All of the nominees have consented to
serve as Directors.  However,  if any nominee is not available for election at
the time of the Meeting,  the proxy holders may vote for any substitute person
nominated by the Board of Directors,  in their  discretion.  The presence of a
majority  of the  shares  entitled  to vote,  in person  or by  proxy,  at the
Meeting  constitutes a quorum.  A quorum is required to elect Directors and to
conduct  business at the  Meeting.  In the  election of  Directors,  the proxy
holders intend to distribute,  in such  proportions as they see fit, the votes
represented  by each proxy among the five  nominees  named  herein or any such
substitute  person  nominated by the Board, and authority to do so is included
in the proxy.

Under  the  corporation  law of the  State of  California,  a  shareholder  is
entitled to cumulate his votes in the election of  Directors.  This means that
a  shareholder  may give to any one  nominee  a number  of votes  equal to the
number of Directors to be elected,  multiplied by the number of votes to which
his shares are entitled;  or, a shareholder may distribute  such votes,  based
upon  the  same  principle,  among  as many  candidates  as he  chooses.  If a
majority of the shares of Common  Stock  entitled to vote are  represented  in
person or by proxy at the Meeting,  the five  nominees who receive the highest
number  of votes  will be the  Directors  for the next  year and  until  their
successors  are elected and  qualified.  A  shareholder  may use his proxy for
cumulative  voting  by  noting  the  number  of  shares  to be voted  for each
nominee.  Unless  otherwise  noted  on  the  proxy  card,  shares  of  persons
submitting  a proxy will be voted  equally  for each  nominee  (subject to the
proxy  holders'  right  to  cumulate  votes   represented  by  each  proxy  as
referenced above).

THE BOARD OF  DIRECTORS  RECOMMENDS  A VOTE FOR THE  NOMINEES  NAMED  BELOW OR
THEIR SUBSTITUTES AS SET FORTH HEREIN.

NAME, AGE AND FIVE-YEAR BUSINESS EXPERIENCE                     DIRECTOR SINCE

DAVID P. GOSS (49)                                                        1989
Mr.  Goss is the  Chief  Executive  Officer,  President  and  Director  of the
Company.  He is also  Chief  Executive  Officer,  President  and  Director  of
Property Resources,  Inc., Property Resources Equity Trust (1987 to date), the
Advisor and Franklin Real Estate  Management,  Inc.  (1991 to date).  Mr. Goss
has a B.A.  degree from the  University of  California,  Berkeley,  and a J.D.
degree  from the New York  University  School  of Law.  Mr.  Goss was also the
Chief  Executive  Officer,  President  and  Director of  Franklin  Real Estate
Income Fund (1988 to May,  1996) and  Franklin  Advantage  Real Estate  Income
Fund (1990 to May, 1996).

LLOYD D. HANFORD, JR. (67)                                                1989
Mr.  Hanford  is an  Independent  Director  of the  Company.  In  1988  he was
co-founder of, and until July 1992, principal of the Hanford/Healy  Companies,
a San Francisco real estate  appraisal,  asset management and consulting firm,
practicing on a national  basis.  Mr.  Hanford  presently  serves as Executive
Appraiser for the  Hanford/Healy  Appraisal  Company.  Mr.  Hanford  graduated
from the  University  of  California,  Berkeley  and  holds  the  professional
designations   MAI,  CRE  and  CPM  awarded   respectively  by  the  Appraisal
Institute,  the  American  Society of Real  Estate  Counselors  and IREM.  Mr.
Hanford  was also a Director  of Franklin  Advantage  Real Estate  Income Fund
(1990 to May, 1996).

EGON H. KRAUS (66)                                                        1989
Mr.  Kraus is an  Independent  Director of the Company.  He was formerly  Vice
President  and  director  of  McNeil  Investors  Inc.  (1991 - 1995).  He is a
Certified Public Accountant,  primarily involved in real estate  transactions.
He has a B.S.  and an M.B.A.  from the  University  of  California,  Berkeley,
where  he was  elected  to Phi  Beta  Kappa.  Mr.  Kraus  is a  member  of the
American  Institute of Certified  Public  Accountants,  and a former member of
the Financial  Executives Institute and the Tax Executives  Institute.  He was
also a Director of Franklin  Real Estate  Income Fund (1988 to May,  1996) and
Franklin Advantage Real Estate Income Fund (1990 to May 1996).

FRANK W. T. LAHAYE (66)                                                   1996
Mr. LaHaye is an Independent  Director of the Company.  He is General Partner,
Peregrine  Associates  and  Miller & LaHaye,  which are  General  Partners  of
Peregrine   Ventures  and  Peregrine  Ventures  II  (venture  capital  firms);
Chairman  of  the  Board  and  Director,  Quarterdeck  Office  Systems,  Inc.;
Director,  Fischer Imaging  Corporation;  and Director or trustee, as the case
may be, of 25 of the investment  companies in the Franklin  Templeton Group of
Funds.  Mr.  LaHaye was also a Director  of Franklin  Real Estate  Income Fund
(1995 to May, 1996).

E. SAMUEL WHEELER (52)                                                    1989
Mr. Wheeler is an Independent  Director of the Company.  He is a self-employed
Certified  Public  Accountant.   He  is  a  current  member  of  the  National
Association of Real Estate  Investment Trusts (NAREIT)  Government  Relations,
Insurance  Planning  and  Accounting  Committees.  He  received  his  B.S.  in
Accounting  and  Finance  from San Jose  State  University  in 1966,  and is a
member of the  American  Institute  of Certified  Public  Accountants  and the
California  Society of Certified  Public  Accountants.  Mr. Wheeler was also a
Director of Franklin Advantage Real Estate Income Fund (1990 to May, 1996).

The  following  table sets forth the  beneficial  ownership  of the  Company's
Common Stock by the  Directors  and by all  Directors and officers as a group,
as of July 22,  1996.  At such date,  all  Directors  and  officers as a group
owned less than 1% of the outstanding Common Stock of the Company.

                                                                  Amount and
                                                               Nature of Shares
NAME                                  TITLE OF CLASS          BENEFICIALLY OWNED

David P. Goss, Chief Executive        Common Stock, Series A          7,192
Officer, President and Director

E. Samuel Wheeler, Independent        Common Stock, Series A            220
Director

Lloyd D. Hanford, Jr., Independent    Common Stock, Series A          1,000
Director

Egon H. Kraus, Independent Director   Common Stock, Series A         10,430

Frank W.T. LaHaye, Independent        Common Stock Series A              -
Director

Directors and officers as a group     Common Stock, Series A         26,540

To the Company's knowledge,  as of July 22, 1996, no person beneficially owned
more than 5% of the outstanding Common Stock except as set forth below:

                                              AMOUNT AND NATURE
                                              OF SHARES
NAME AND ADDRESS            TITLE OF CLASS    BENEFICIALLY OWNED   % OF  CLASS1

Franklin Resources, Inc.    Common Stock,     1,685,400            12.0%
777 Mariners Island         Series A
Boulevard
San Mateo, CA  94404

Commonwealth of
Massachusetts               Common Stock,     1,077,608            7.7%2
Pension Reserve Investment  Series A
Management Board ("PRIM")
125 Summer Street, 10th Floor
Boston, MA  02110

Franklin Properties, Inc    Common Stock,       745,5841            5.3%
1800 Gateway Drive          Series B
San Mateo, CA 94404



1 The Company has one class of Common Stock in two series,  designated  Series
A and Series B. The Series A shares and Series B shares  vote  together as one
class with each share being entitled to one vote.

2.  These  shares  are  dissenting  shares  pursuant  to  Section  1300 of the
California  Corporations  Code in connection  with the merger of Franklin Real
Estate  Income Fund and Franklin  Advantage  Real Estate  Income Fund with and
into the Company.





The executive officers of the Company other than those listed above are:

MICHAEL J. MCCULLOCH(48)
Mr.  McCulloch is Executive Vice  President of the Company (1989 to date).  He
is also  Executive  Vice  President  of  Property  Resources,  Inc.,  Property
Resources  Equity Trust (1987 to date),  the Advisor and Franklin  Real Estate
Management,  Inc. (1991 to date).  He attended  California  State  University,
Los Angeles and the  University  of Southern  California.  Mr.  McCulloch  was
also the  Executive  Vice  President of Franklin Real Estate Income Fund (1988
to May,  1996) and Franklin  Advantage  Real Estate  Income Fund (1990 to May,
1996).

RICHARD S. BARONE (45)
Mr.  Barone is Secretary of the Company (1989 to date).  He is also  secretary
of the Advisor,  Property  Resources,  Inc.,  Property Resources Equity Trust,
and Franklin Real Estate  Management,  Inc. (1991 to date).  He is also Senior
Vice  President - Legal of the  Advisor,  Property  Resources,  Inc.  (1988 to
date),  and  Franklin  Real  Estate  management,  Inc.  (1991  to  date);  and
Corporate  Counsel of Franklin  Resources,  Inc.  (1988 to date).  Mr.  Barone
received  a  B.A.  degree  and a  J.D.  degree  from  the  University  of  San
Francisco.  He is a member of the  State Bar of  California.  Mr.  Barone  was
also the  Secretary of Franklin  Real Estate  Income Fund (1988 to May,  1996)
and Franklin Advantage Real Estate Income Fund (1990 to May, 1996).

MARK A. TENBOER (40)
Mr.  TenBoer is Vice  President - Finance and Chief  Financial  Officer of the
Company and has served as Vice  President - Asset  Management for the Advisor,
Property  Resources,  Inc., and Franklin Real Estate  Management,  Inc., since
1991.  From  1983  to  1991  he  was  Director  -  Portfolio   Management  and
Controller  of the Advisor  and  Property  Resources,  Inc. He received a B.S.
degree in  Accounting  from the  University  of  Illinois.  Mr.  TenBoer  is a
Certified  Public  Accountant.  Mr.  TenBoer  was also the  Vice  President  -
Finance  and Chief  Financial  Officer of  Franklin  Real  Estate  Income Fund
(1993 to May,  1996) and Franklin  Advantage  Real Estate Income Fund (1993 to
May, 1996).

COMMITTEES AND MEETINGS OF DIRECTORS

The  Directors  met eight  times  during  1995.  The  Directors  standing  for
re-election  to the Board of  Directors  attended all of these  meetings.  The
Audit  Committee,  which consists of all of the  Independent  Directors of the
Company,  met twice during  1995.  The members of this  committee  during 1995
were Messrs.  Hanford,  Kraus, Wheeler and Lawrence C. Werner, who will retire
from the Board of Directors as of the Annual Meeting.  This committee  advises
and assists  the  Company's  principal  financial  officer in making  periodic
overall reviews of the Company's  internal controls and financial  statements,
appoints the Company's  independent  auditors for the Company's  annual audit,
and  meets  periodically  with the  auditors  to  discuss  their  audit.  This
committee held two meetings in 1995.

No direct  compensation  has been paid by the  Company  to its  Directors  and
officers,  or  Directors  and  officers  of  the  Advisor,   except  that  the
Independent  Directors  of the  Company  receive  fees of $2,000 per year plus
$400 per each regular meeting  attended and $300 per each  telephonic  meeting
attended.  Each  Independent  Director  also  received  $7,800  for  attending
independent  committee  meetings  during  1995.  For  the  fiscal  year  ended
December 31, 1995, fees to all Independent  Directors,  and  reimbursements of
expenses related to attendance at Board meetings  totaled  $40,200.  Effective
September 17, 1996, the annual fee paid to each  Independent  Director will be
increased  to $6,000 to  recognize  the  increased  responsibilities  that the
Directors  assumed  after the merger of Franklin  Real Estate  Income Fund and
Franklin  Advantage  Real Estate  Income Fund with and into the Company on May
7, 1996.  The  Company  has no  annuity,  pension or  retirement  plans or any
existing plans or arrangement  under which payments have or will in the future
be made to any  Director or officer.  The  Company has paid  certain  fees and
will reimburse certain expenses of the Advisor.





PERFORMANCE GRAPH

The following  graph  compares the yearly  percentage  change in the Company's
cumulative total  stockholder  return with two indices,  the Equity REIT Index
prepared  by  the  National  Association  of  Real  Estate  Investment  Trusts
("NAREIT"),  and the S&P 500 Index.  The period covered by the graph commences
on January  14,  1994,  which is the date when the  Company's  Series A Common
Stock commenced  trading on the American Stock  Exchange.  Prior to that date,
there was no  established  trading  market for the shares.  The graph  assumes
$100 was  invested  in  January,  1994,  in the Series A Common  Stock and the
indices, and that all dividends were reinvested throughout the period.

                      Performance Measurement Comparison
                                 Total Return
                         Franklin Select Realty Trust
                      Performance Measurement Comparison


EDGAR REPRESENTATION OF DATA POINTS USED IN THE PRINTED GRAPHIC

                         SELECT      REIT EQUITY INDEX         S&P 500 INDEX

        1/94             100.00           100.00                  100.00
        1994              77.43           102.07                  101.31
        1995              89.84           117.65                  139.23











      PROPOSAL 2: RATIFICATION OR REJECTION OF THE SELECTION OF AUDITORS

The Board of Directors  recommends  ratification of its designation of Coopers
& Lybrand  L.L.P.  as  independent  public  accountants to audit the financial
statements  of the  Company  for the fiscal year  ending  December  31,  1996.
During the fiscal year ended  December 31, 1995, the audit services of Coopers
& Lybrand  L.L.P.  consisted of the  rendering of an opinion on the  financial
statements  of the  Company.  Coopers  &  Lybrand  has no  material  direct or
indirect  beneficial  interest  in the  Company or the  Advisor,  and does not
intend to send a  representative  to be present at the Meeting.  Unless marked
to the contrary,  proxies  received will be voted FOR the  ratification of the
appointment of Coopers & Lybrand L.L.P. as independent  public  accountants to
audit the  financial  statements  of the  Company  for the fiscal  year ending
December 31, 1996.

THE  BOARD  OF  DIRECTORS  RECOMMENDS  A  VOTE  FOR  THE  RATIFICATION  OF THE
APPOINTMENT OF COOPERS & LYBRAND L.L.P. AS INDEPENDENT  PUBLIC  ACCOUNTANTS TO
AUDIT THE  FINANCIAL  STATEMENTS  OF THE  COMPANY  FOR THE FISCAL  YEAR ENDING
DECEMBER 31, 1996.

                                OTHER MATTERS

The Directors  know of no other matters to be brought  before the Meeting.  If
any other  matters  properly  come before the Meeting,  the proxy holders will
vote the proxies in  accordance  with their best  judgment.  In the event that
sufficient  votes in favor of the  proposals set forth in the Notice of Annual
Meeting of  Shareholders  are not  received  by the date of the  Meeting,  the
proxy  holders  may  propose  one or more  adjournments  of the  Meeting for a
period or periods of not more than 45 days in the aggregate to permit  further
solicitation  of  proxies,   even  though  a  quorum  is  present.   Any  such
adjournment  will require the affirmative vote of a majority of the votes cast
on the  question  in person or by proxy at the  session  of the  meeting to be
adjourned.  The proxy  holders  will vote in favor of such  adjournment  those
proxies  which  they are  entitled  to vote in favor  of the  election  of the
nominees as Directors.  The costs of any such additional  solicitation  and of
any adjourned session will be borne by the Company.

The  Company's  Annual  Report on Form 10-K for the year  ended  December  31,
1995, is enclosed herewith.






                              OTHER INFORMATION

The Company's Board of Directors (including all of its Independent  Directors)
have determined,  after review,  that the compensation paid to the Advisor and
to Continental  Property Management Co. in 1995, as well as the reimbursements
made by the  Company to the  Advisor for  certain  types of  compensation  and
payments are fair and reasonable to the Company.

ADVISOR

The Advisor has entered into an agreement  with the Company to administer  the
day-to-day operations of the Company. Under the terms of the agreement,  which
is  renewable  annually,  the Advisor will  receive  quarterly  an  annualized
advisory  fee equal to .50% of the book  value of the  Company's  real  estate
assets (without  deduction for  depreciation).  The fee is reduced to .40% for
gross real estate assets  exceeding $200 million.  For the year ended December
31, 1995, the Company paid $215,000 in advisory fees to the Advisor.

PROPERTY MANAGEMENT AGREEMENT

Continental  Property  Management Co.  ("CPMC"),  an affiliate of the Advisor,
acts as property manager for the Company's  properties.  During the year ended
December 31, 1995,  the Company paid CPMC property  management  and other fees
totaling $274,000.

SHAREHOLDERS PROPOSALS

Any  Shareholders  intending to present any proposal for  consideration at the
Company's  next Annual  Meeting of  Shareholders  must, in addition to meeting
other  applicable  requirements,  mail such proposal to the Company so that it
is  received  at the  Company's  executive  offices  not less than 120 days in
advance of April 30, 1997.

                                    BY ORDER OF THE BOARD OF DIRECTORS



                                    Richard S. Barone
                                    Secretary


SHAREHOLDERS  ARE  REQUESTED TO FILL IN, DATE AND SIGN THE PROXY AND RETURN IT
PROMPTLY IN THE ENCLOSED POSTAGE PREPAID ENVELOPE.

WHEN SIGNING AS ATTORNEY, EXECUTOR,  ADMINISTRATOR,  TRUSTEE OR GUARDIAN, GIVE
YOUR FULL TITLE AS SUCH.  WHERE STOCK IS HELD  JOINTLY,  BOTH  SIGNATURES  ARE
REQUESTED.