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                                                                    EXHIBIT 99.5
FIRST UNION REAL ESTATE INVESTMENTS
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AT THE COMPANY
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Jeanne E. Gibson
Director of Investor Relations
(216) 781-1039

FOR IMMEDIATE RELEASE

           FIRST UNION REAL ESTATE ANNOUNCES SALE OF SHOPPING CENTER;
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                UPDATES STATUS OF APARTMENT PORTFOLIO DISPOSITION
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CLEVELAND, OHIO, FEBRUARY 17, 1999 --- FIRST UNION REAL ESTATE INVESTMENTS
(NYSE:FUR) today announced the sale of its Woodland Commons shopping center in a
transaction that totaled $21.6 million, including the assumption of an $11.5
million mortgage. The price represented a cap rate of 9.0% on 1998 NOI of $1.95
million. The net proceeds of $9.32 million, after closing costs and first
mortgage indebtedness, have been used to make a partial prepayment of the bridge
loan.

Woodland Commons is a 170,000-square-foot neighborhood shopping center located
in the upscale community of Buffalo Grove, Illinois, a suburb of Chicago. First
Union Real Estate Investments had acquired the property in 1995. Also included
in the transaction was the sale to Sunrise Development of a 2.6-acre tract
adjacent to Woodland Commons where Sunrise is building a 73-bed assisted-living
center.

First Union was represented in the transaction by its exclusive retail advisor,
Granite Partners, LLC.

APARTMENT PORTFOLIO SALE
The Trust had announced in mid-January that it had contracted to sell its 2,105
apartment units to one buyer. After completion of its due diligence, the
potential buyer of the portfolio had requested several material changes to the
contract including a price reduction. After careful review, the Trust decided
that the requested changes to the contract were unacceptable and, although the
Trust is continuing discussions with the potential buyer, it is currently
pursuing other alternatives including other buyers and/or the refinancing of all
or part of the portfolio.

Certain statements contained in this news release are forward-looking and are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to, changes in market activity, changes in local
real estate conditions and markets, actions by competitors, interest rate
movements and general economic conditions. Further information about these
matters can be found in the information included in the Annual Report filed by
the Company with the SEC on Form 10-K.

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


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