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 1934



      Date of Report (date of earliest event reported): January 13, 2000
                                                        -----------------



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


      CALIFORNIA               1-12708               94-3095938
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    State or other      Commission File Number      IRS Employer
    jurisdiction of                            Identification Number
     incorporation


               777 MARINER'S ISLAND BLVD. , 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 January 13, 2000, Franklin Select Realty Trust issued the press release
attached hereto as Exhibit 99.1 and incorporated by reference herein.


ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.

      (c) Exhibits.

        99.1 Press Release.


                                   SIGNATURE

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: January 13, 2000


                          FRANKLIN SELECT REALTY TRUST


                          By: /s/ David P, Goss
                                  David P. Goss President




                                 EXHIBIT INDEX





EXHIBIT NO.               DESCRIPTION

                                         99.1                    Press Release.



                                                                   EXHIBIT 99.1

FROM:           Franklin Properties, Inc.
                Internet: http://www.frk.com/properties
                Tel: (650) 312-5824
                Contact: David Goss

                             For Immediate Release
                    FRANKLIN SELECT REALTY TRUST ANNOUNCES
                         SHAREHOLDER SUIT DEVELOPMENTS


      SAN  MATEO,  CA,  January  13,  2000  --  FRANKLIN  SELECT  REALTY  TRUST
(AMEX:FSN)  (the  "Company")  today  announced  that the  Company  has  reached
preliminary  agreements in principle  with the  plaintiffs  and other  involved
parties  regarding   possible   settlement  of  its  two  pending   shareholder
lawsuits,  which were previously  disclosed in the Company's public filings and
referred  to  as  the  Hodge  Lawsuit  and  the  Vigneau  Lawsuit.  Efforts  to
finalize these settlements are ongoing.

      In its Quarterly  Report on Form 10-Q for the quarter ended September 30,
1999, the Company disclosed that it would recognize a $750,000  reserve,  based
on  management's  assessment at that time of potential  liability  with respect
to the  shareholder  litigation.  Based on management's  current  assessment of
potential  liability with respect to the  shareholder  litigation,  the Company
expects to increase its reserve  relating to the  shareholder  litigation  from
$750,000 to $2,100,000 for the quarter ending December 31, 1999.

      The  successful  conclusion  of each of these  settlement  efforts  would
require  that the parties  enter into a written  agreement  with respect to all
of the terms of the  settlement,  that the relevant  court  certify a class for
settlement  purposes  and approve the mailing of notice to the class,  that the
court  determine that the  settlement is fair,  reasonable and adequate after a
hearing  at which  class  members  may appear  and be heard,  and that  certain
other  conditions  are met, a process  that would take many months to complete.
The  Company  expects  that the costs of defense  and  settlement  of the Hodge
Lawsuit  and the  Vigneau  Lawsuit  would  be  funded  by  insurance  coverage,
contributions  from  certain  other  defendants,  and  contributions  from  the
Company.  No  assurance  can be  given  as to  the  outcome  of the  settlement
efforts.  If the  settlement  efforts  are not  successful,  the  Company  will
continue to pursue its vigorous defense of the litigation.

      On  October  12,  1999,  the  Company  announced  that it had  signed  an
agreement to sell its remaining  real estate assets to Value  Enhancement  Fund
III, LLC (the "Asset  Sale").  On December  14, 1999,  the Company sent a proxy
statement  to its  shareholders  relating  to the special  shareholder  meeting
scheduled  for January 25, 2000 to consider  and approve the Asset Sale and the
liquidation,  winding up and  dissolution  of the Company.  If the  shareholder
proposals  are  approved,  the Asset Sale is expected to close  promptly  after
the special  meeting of  shareholders.  The  Company  continues  to expect,  as
stated  in the  proxy  statement,  that  it  will  pay an  initial  liquidating
distribution to the Company's  shareholders of  approximately  $7.11 per Series
A common  share as soon as  practicable  after the  closing of the Asset  Sale.
The  Company  also  stated  that it would  retain  an  amount of cash and other
assets  on hand,  as they may  exist at the time of the  closing  of the  Asset
Sale,  to meet  its  obligations,  including  its  then-existing  and  known or
unknown  contingent  liabilities,  as well as the  costs  of  dissolution.  The
Company  stated in the proxy  statement,  and continues to believe,  that it is
not possible to determine  how much,  if any, of the remainder of the Company's
assets will  ultimately  be  available  for  distribution  to  shareholders  in
connection with the dissolution of the Company.

      Forward-Looking  Statements  and Risk  Factors:  When used in this  press
release  and in  oral  statements  made  with  the  approval  of an  authorized
executive   officer,   the   words   or   phrases   "expects",   "anticipates",
"estimates",   "projects"  or  variations  of  such   expressions   or  similar
expressions are intended to identify  "forward-looking  statements"  within the
meaning  of  the  Private  Securities  Litigation  Reform  Act  of  1995.  Such
statements  are based on a number of beliefs,  estimates and  assumptions  that
could cause actual results to differ  materially  from those  expressed in such
forward-looking   statements.    There   can   be   no   assurance   that   the
forward-looking   statements  will  prove  to  be  accurate.   Such  risks  and
uncertainties  include the actions of third  parties,  the timely  consummation
of the Asset  Sale,  the timing and  implementation  of the  Company's  plan of
dissolution,  the  Company's  ability to maintain  its real  estate  investment
trust status,  general industry and economic conditions,  changes in applicable
laws,  rules and  regulations  (including  tax laws) and those  specific  risks
that are  detailed  in the  Company's  Proxy  Statement  filed  with the SEC on
December 14, 1999 and in the  Company's  periodic SEC reports,  including,  but
not  limited  to,  its Annual  Report on Form 10-K for the year ended  December
31, 1998.

      The Company will not undertake and  specifically  declines any obligation
to release  publicly any data or  information,  the result of which might be to
revise  any  forward-looking  statements  to  reflect  events or  circumstances
which  have  arisen  after  the  date  of such  statements  or to  reflect  the
occurrence of anticipated or unanticipated events.

      Franklin  Select Realty Trust is a publicly traded equity REIT advised by
Franklin  Properties  Inc., a wholly owned  subsidiary  of Franklin  Resources,
Inc.  (NYSE:BEN).  Franklin's  headquarters  are located at 777 Mariners Island
Boulevard, San Mateo, California 94404.
                                      ###