SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549


SCHEDULE 13G

Under the Securities Exchange Act of 1934

(Amendment No.  )*

First Washington Realty Trust
- -------------------------------------------------------------------
(Name of Issuer)


Common Stock**
- -------------------------------------------------------------------
(Title of Class of Securities)


337489504
- --------------
(CUSIP NUMBER)


May 31, 1999
- -------------------------------------------------------------------
(Date of Event Which Requires Filing of this Statement)


*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which
would alter the disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 (the "Act") or otherwise subject to the liabilities
of that section of the Act but shall be subject to all other provisions of
the Act (however, see the Notes).


** Certain common shares reported herein are held through convertible
preferred stock.












Page 2 of 8

CUSIP NO.  337489504               13G

1. NAME OF REPORTING PERSON
   S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

Merrill Lynch & Co., Inc.
(on behalf of Merrill Lynch Asset Management Group ("AMG"))**

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* Joint Filing

(a) [ ]
(b) [ ]

3. SEC USE ONLY

4. CITIZENSHIP OR PLACE OF ORGANIZATION

Delaware

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5. SOLE VOTING POWER

NONE

6. SHARED VOTING POWER

1,283,000

7. SOLE DISPOSITIVE POWER

NONE

8. SHARED DISPOSITIVE POWER

1,283,000

9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

1,283,000 (ownership disclaimed pursuant to Section 13d-4 of the 1934 Act)

10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

12.98%

12. TYPE OF REPORTING PERSON*

HC, CO
    *SEE INSTRUCTION BEFORE FILING OUT!
    **SEE EXHIBIT A


Page 3 of 8

CUSIP NO.  337489504               13G

1. NAME OF REPORTING PERSON
   S.S. or I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

Merrill Lynch Global Allocation Fund, Inc.

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* Joint Filing

(a) [ ]
(b) [ ]

3. SEC USE ONLY

4. CITIZENSHIP OR PLACE OF ORGANIZATION

Maryland

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH

5. SOLE VOTING POWER

NONE

6. SHARED VOTING POWER

1,282,000

7. SOLE DISPOSITIVE POWER

NONE

8. SHARED DISPOSITIVE POWER

1,282,000

9. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

1,282,000 (ownership disclaimed pursuant to Section 13d-4 of the 1934 Act)

10. CHECK IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*

11. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

12.97%

12. TYPE OF REPORTING PERSON*

HC, CO

    *SEE INSTRUCTION BEFORE FILING OUT!
    **SEE EXHIBIT A


Page 4 of 8

14. CHECK THE APPROPRIATE BOX TO DESIGNATE THE RULE PURSUANT TO WHICH THIS
SCHEDULE IS FILED:

	[X] Rule 13d-1(b)
	[ ] Rule 13d-1(c)
	[ ] Rule 13d-1(d)

		    SCHEDULE 13G

ITEM 1 (a)  Name of Issuer:
	    --------------

	    First Washington Realty Trust (the "Company")

ITEM 1 (b)  Address of Issuer's Principal Executive Offices:
	    -----------------------------------------------

	    4350 East-West Highway
	     Suite 400
	     Bethesda, MD 20814

ITEM 2 (a)  Name of Persons Filing:
	    ---------------------

	    Merrill Lynch & Co., Inc.
	    (on behalf of Merrill Lynch Asset Management Group ("AMG"))

	    Merrill Lynch Global Allocation Fund, Inc.

ITEM 2 (b)  Address of Principal Business Office or, if none, Residence:
	    -----------------------------------------------------------

Merrill Lynch & Co., Inc.
(on behalf of Merrill Lynch Asset Management Group ("AMG"))
World Financial Center, North Tower
250 Vesey Street
New York, NY  10381

Merrill Lynch Global Allocation Fund, Inc.
800 Scudders Mill Road
Plainsboro, NJ  08536

ITEM 2 (c)  Citizenship:
	    -----------
See Item 4 of Cover Pages

ITEM 2 (d)  Title of Class of Securities:
	    ----------------------------

Common Stock

ITEM 2 (e)  CUSIP NUMBER:

See Cover Page



Page 5 of 8

ITEM 3

   If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b) or (c),
check whether the person filing is a:

(a) [ ] Broker or Dealer registered under Section 15 of the Act,
(b) [ ] Bank as defined in Section 3(a)(6) of the Act,
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act,
(d) [ ] Investment Company registered under Section 8 of the Investment
        Company Act of 1940,
(e) [X] Investment Adviser in accordance with Rule 13d-1(b)(1)(ii)(E),
(f) [ ] Employee Benefit Plan or Endowment Fund in accordance with
        Rule 13d-1(b)(1)(ii)(F),
(g) [X] Parent Holding Company or Control Person in accordance with
        Rule 13d-1(b)(ii)(G); see Item 7,
(h) [ ] A savings association as defined in Section 3(b) of the Federal
        Deposit Insurance Act (12 U.S.C. 1813),
(i) [ ] A church plan that is excluded from the definition of an investment
        company under Section 3(c)(14) of the Investment Company Act of 1940,
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).


ITEM 4  Ownership
	---------
(a)  Amount Beneficially Owned:

   See Item 9 of Cover Pages.

(b)  Percent of Class:

     See Item 11 of Cover Pages

(c)  Number of shares as to which such person has:

     (i)  sole power to vote or to direct the vote:

	  See Item 5 of Cover Pages

    (ii)  shared power to vote or to direct the vote:

	  See Item 6 of the Cover Pages

   (iii)  sole power to dispose or to direct the disposition of:

	  See Item 7 of Cover Pages

    (iv)  shared power to dispose or to direct the disposition of:

	  See Item 8 of Cover Pages





Page 6 of 8


ITEM 5  Ownership of Five Percent or Less of a Class.
	--------------------------------------------

Not applicable.


ITEM 6  Ownership of More than Five Percent on Behalf of Another Person.
	---------------------------------------------------------------

    Merrill Lynch & Co., Inc. ("ML&Co.") is a parent holding company.
The Merrill Lynch Asset Management Group ("AMG") is an operating division
of ML&Co. consisting of ML&Co.'s indirectly owned asset management
subsidiaries.  Certain of these subsidiaries hold certain shares of the
security which is the subject of this report. (See Item 7).


ITEM 7   Identification and Classification of the Subsidiary Which
  Acquired the Security Being Reported on by the Parent Holding Company
  or Control Person.
  ---------------------------------------------------------------------

    Merrill Lynch & Co., Inc. ("ML&Co.") is a parent holding company.
The Merrill Lynch Asset Management Group ("AMG") is an operating division
of ML&Co. consisting of ML&Co.'s indirectly-owned asset management
subsidiaries.  The following asset management subsidiaries hold certain
shares of the common stock, which is the subject of this 13G filing:

Merrill Lynch Asset Management, L.P.


ITEM 8   Identification and Classification of Members of the Group.
	 ----------------------------------------------------------

Not Applicable


ITEM 9  Notice of Dissolution of Group.
	------------------------------

Not Applicable














Page 7 of 8


ITEM 10  Certification
	 -------------

    By signing below each of the undersigned certifies that, to the best of
their knowledge and belief, the securities referred to above were acquired
and are held in the ordinary course of business and were not acquired and
are not held for the purpose of or with the effect of changing or influencing
the control of the issuer of such securities and were not acquired and are
not held in connection with or as a participant in any transaction having such
purpose or effect.

Signature.
- ---------

    After reasonable inquiry and to the best of my knowledge and belief, each
of the undersigned certifies that the information set forth in this statement
is true, complete and correct.


Date:  June 10, 1999


Merrill Lynch & Co, Inc.
(on behalf of Merrill Lynch Asset Management Group ("AMG"))

/s/ Jerry Weiss
- -----------------------------
Name:  Jerry Weiss
Title:  Attorney-In-Fact*


Merrill Lynch Global Allocation Fund, Inc.

/s/ Jerry Weiss
- -----------------------------
Name:  Jerry Weiss
Title:  Attorney-In-Fact**


- ------------------------------------
*Signed pursuant to a power of attorney, dated January 25, 1999, included
as Exhibit B to Schedule 13G filed with the Securities and Exchange
Commission by Merrill Lynch & Co, Inc. (on behalf of Merrill Lynch Asset
Management Group ("AMG")) on January 28, 1999 with respect to Creative
Technology, Limited.

**Signed pursuant to a power of attorney, dated January 22, 1999, included
as Exhibit B to Schedule 13G filed with the Securities and Exchange
Commission by Merrill Lynch & Co, Inc. (on behalf of Merrill Lynch Asset
Management Group ("AMG")) on January 28, 1999 with respect to
Scientific Games Holdings Corp.



Page 8 of 8
EXHIBIT A

Merrill Lynch Asset Management Group of ML&Co. ("AMG") is comprised of the
following legal entities:  Merrill Lynch Asset Management, L.P. doing business
as Merrill Lynch Asset Management ("MLAM") including the Merrill Lynch Capital
Management Group and Hotchkis and Wiley divisions thereof; Fund Asset
Management, L.P., doing business as Fund Asset Management ("FAM"); Merrill Lynch
Asset Management U.K. Limited ("MLAM UK"); Merrill Lynch (Suisse) Investment
Management Limited ("MLS"); Mercury Asset Management International Limited
("MAMI"); Mercury Asset Management Ltd; Mercury Asset Management, Ltd. in
Australia; Mercury Asset Management (Asia Pacific Limited); Mercury Asset
Management Asia Limited; Merrill Lynch Mercury Kapitalanlagegesellschaft MBH;
Munich London Investment Management, Ltd.; Merrill Lynch Asset Management
(Hong Kong) Limited; Merrill Lynch Mercury Asset Management Japan Limited;
Atlas Asset Management, Inc.; Merrill Lynch Investment Management Canada,
Inc.; DSP Merrill Lynch Asset Management (India) Limited; PT Merrill Lynch
Indonesia; Merrill Lynch Phatra Securities Co., Ltd.; Merrill Lynch Global
Asset Management, Limited; Mercury Asset Management Channel Islands, Limited;
Mercury Asset Management International Channel Islands Limited; Grosvenor
Venture Managers, Limited; Mercury Fund Managers, Limited; and N.B.K.
Investment Management, Limited.  Each of MLAM, FAM, MLAM UK, MLS, and MAMI
is an investment adviser registered under Section 203 of the Investment
Advisers Act of 1940, which acts as investment adviser to various investment
companies registered under Section 8 of the Investment Company Act of 1940.
Each other firm constituting part of AMG is an investment adviser operating
under the laws of a jurisdiction other than the United States.  The investment
advisers that comprise AMG exercise voting and investment powers over portfolio
securities independently from other direct and indirect subsidiaries of ML&Co.