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 HOLDS
      5.27% OF THE COMMON STOCK OF AMERICA FIRST APARTMENT INVESTORS, INC.

      FOR IMMEDIATE RELEASE - Boston, Massachusetts- October 7, 2005-First Union
Real Estate Equity and Mortgage Investments (NYSE:FUR) announced today that has
acquired over a number of months through open market transactions an aggregate
of 553,801 shares of common stock in America First Apartment Investors, Inc.
(NASD:APRO), a real estate investment trust. The 553,801 shares represent
approximately 5.27% of the outstanding common shares in America First Apartment
Investors. Pursuant to its Schedule 13D filed with the Securities and Exchange
Commission on October 6, 2005, in light of First Union's investment objectives,
it intends to consider appropriate methods of maximizing the value of the shares
and shareholder value in general including, without limitation, potential
strategic transactions with America First Apartment Investors.

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      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 these matters and 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.

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