SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549



                                   FORM 8-K



                                CURRENT REPORT



                    Pursuant to Section 13 or 15(d) of the
                     Securities and Exchange Act of 1943



      Date of Report (date of earliest event reported) DECEMBER 3, 1998



                         FRANKLIN SELECT REALTY TRUST
            (Exact Name of Registrant as Specified in its Charter)



        CALIFORNIA                  1-12709                  94-0395938
      State or other         Commission File Number         IRS Employer
     jurisdiction of                                    Identification Number
      incorporation



               2000 ALAMEDA DE LAS PULGAS, SAN MATEO, CA 94404
             (Address of Principal Executive Offices) (Zip Code)



       Registrant's telephone number, including area code: 650/312 3000



ITEM 5.  OTHER EVENTS.

      On December 3, 1998, Tanon Manufacturing,  Inc. ("TMI"), the sole tenant
of a  building  (the  "Property")  located  in  Fremont,  California  owned by
F.S.R.T.,  L.P.  ("FSRT"),  a limited  partnership  in which  Franklin  Select
Realty Trust (the  "Company")  is the general  partner and owner of a majority
interest,  filed a bankruptcy  petition  under Chapter 11 of the United States
Bankruptcy  Code with the  United  States  Bankruptcy  Court for the  Northern
District  of  California.  TMI and FSRT  are  parties  to a lease  dated as of
February  12, 1993 (the  "Lease")  pursuant to which TMI leases the  Property.
Based on the  Company's  financial  statements  for the fiscal  quarter  ended
September 30, 1998,  the Company's  share of the rent from TMI pursuant to the
Lease  represented  approximately  seven percent (7%) of the  Company's  gross
revenues,  approximately  fifteen  percent (15%) of funds from  operations and
approximately  twenty-six  percent  (26%) of net income  during the first nine
months of 1998.  TMI has not paid rent due on  November  1, 1998 and  December
1, 1998.  Total rent due for each of these months is  approximately  $100,000,
including operating expense reimbursements.

      The  current  term of the Lease  expires on April 30,  2003 and there is
one five-year  renewal  option.  The current base rental rate for the Property
pursuant  to the Lease is  approximately  $8.16 per square  foot per year on a
net lease basis.  The Company  estimates  that the market base rental rate for
the  Property  may be between $12 and $14.40 per square foot per year on a net
lease basis.

      Under  applicable  bankruptcy law, if the Lease were considered to be in
effect  at the time the  bankruptcy  petition  was  filed,  the  Lease  may be
treated  as  an  executory  contract.  If it  were  treated  as  an  executory
contract,  TMI would  have the  option to assume or reject it. TMI has not yet
formally  indicated  its intention  with respect to the Lease.  If TMI assumes
the Lease, it would be required to cure all defaults,  including paying unpaid
rent.  If TMI rejects the Lease,  the Company  would have a claim  against TMI
for  damages,  including  unpaid rent then due. If TMI rejects the Lease,  the
Company  intends to pursue all  available  remedies  and to re-lease the Tanon
Building.  If the Company re-leases the Tanon Building,  it is likely to incur
costs  for  tenant  improvements,  leasing  commissions  and  other  costs and
expenses, which it would seek to recover from TMI.

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934,  the
registrant  has duly  caused  this  report to be  signed on its  behalf by the
undersigned heretofore duly authorized.


Dated:  December 14, 1998                       FRANKLIN SELECT REALTY TRUST


                                          By:   /S/  DAVID P. GOSS
                                                David P. Goss
                                                President