Exhibit 99.2

FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS

AT THE COMPANY
Carolyn Tiffany
Chief Operating Officer
(617) 570-4614

   FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS ANNOUNCES PROPOSED
             INVESTMENT IN NEWLY-FORMED REAL ESTATE INVESTMENT TRUST

FOR IMMEDIATE RELEASE - Boston, Massachusetts, August 8, 2005 - First Union Real
Estate Equity and Mortgage Investments (NYSE:FUR) today announced that its Board
of Trustees has approved:

      o     the investment of approximately $50 million in newly issued common
            shares of Newkirk Realty Trust, Inc. ("Newkirk"), a newly formed
            real estate investment trust, with the timing of such investment to
            coincide with the Newkirk initial public offering, and

      o     the assignment to Newkirk of certain rights of First Union under its
            Exclusivity Services Agreement with Michael Ashner, First Union's
            Chief Executive Officer, relating to the utilization of his services
            for future net lease investments. The assignment shall coincide with
            Newkirk's initial public offering. In consideration of such
            assignment and the receipt of such services, Newkirk will: (i) issue
            $20 million of additional Newkirk common shares, 50% of which will
            vest immediately with the remaining 50% vesting pro rata on a
            monthly basis over a three year period and First Union will receive
            all dividends and the right to vote with respect to the unvested
            Newkirk shares; and (ii) First Union will receive the economic
            benefit of 80% of the incentive management fees payable by Newkirk
            to its external advisor.

Newkirk has been formed to acquire a controlling interest in The Newkirk Master
Limited Partnership, an entity in which Michael Ashner and certain other members
of First Union's senior management own an interest and of which his affiliate is
the general partner. The business of the Newkirk MLP is investment in net leased
properties. The proposed transactions are referenced, and more fully discussed,
in a registration statement on Form S-11 filed today with the Securities and
Exchange Commission by Newkirk in connection with its contemplated initial
public offering.

The transactions are subject to the execution of definitive documentation
containing the final terms and conditions. A Special Committee of the First
Union Board considered and recommended Board approval of the proposed
transactions. The members of the First Union Special Committee are Arthur
Blasberg, Jr., chair, Talton Embry and Howard Goldberg, each of whom is an
independent trustee of First Union.



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

Certain statements contained in this press release that are forward-looking are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. Further information about the
risks generally with respect to First Union can be found in First Union's Annual
Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities
and Exchange Commission.