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                                                                    EXHIBIT 10.1

                                                DAVID A. GRAHAM
                                                Vice President
                                                Mortgage Asset Management
[PRUDENTIAL CAPITAL GROUP LOGO]
                                                One Ravinia Drive, Suite 1400
                                                Atlanta, GA  30346-2110
                                                770 395-8609 Fax: 770 392-0944

VIA Fax #(404) 303-6418


April 8, 1998


EQK Realty Investors I
c/o ERE Yarmouth
5775-D Peachtree Dunwoody Road, Suite 200
Atlanta, GA  30342
Attn:  Donald Henry

Subject:          Prudential Loan No. 7501488
                  Harrisburg East Mall, Harrisburg, PA
                  Forbearance Agreement
                  
Dear Mr. Henry:

As you are aware, the above-referenced Loan held by The Prudential Insurance
Company of America ("Prudential") encumbering property of EQK Realty Investors
I (EQK or Borrower) is due and payable in full on June 15, 1998.  You have
indicated the Borrower's inability to pay the Loan in full on the Maturity Date
and have requested some relief or extension.  Although Prudential is unwilling
to extend or reinstate the Loan, Prudential is willing to forbear exercising
remedies (other than any remedies continuing to be exercised under the Loan
documents) from the date of Borrower's execution of this letter until December
15, 1998 ("Forbearance Period"), provided the following terms and conditions
are met ("Forbearance Conditions"):

         1.   The Borrower executes this letter where indicated below and 
              returns the same to Prudential by April 10, 1998 along with an
              administrative fee of $2,500.00 which fee is hereby deemed fully
              earned and shall not be applied to sums due under the Loan
              documents. 

         2.   Payments ("Forbearance Payments") shall be made to Prudential as
              follows:  principal and interest payments of $324,076.70 shall be
              due on the fifteenth of each month during the Forbearance Period.
              Prudential will have the right, at its sole discretion, to apply
              Forbearance Payments received to principal first, then to any
              other sums due under the Loan documents, then to interest. 

         3.   The entire remaining Loan balance must be paid in full by the
              end of the Forbearance Period. 

         4.   No defaults exist or shall hereafter occur during the
              Forbearance Period under the Loan documents other than the failure
              to pay the Loan in full on the Maturity Date. 

         5.   Application Fee:  Pursuant to Paragraph 6 of the 1996
              Commitment, EQK owed an application fee of $437,900 to Prudential
              as of November 15, 1996.  $165,000 of that amount has been paid by
              Maker to Payee, leaving a balance of $272,900 owed by Maker to
              Payee (the "Application Fee Balance").  The Application Fee
              Balance, plus interest thereon at the Contract Rate from and
              including December 15, 1996 to the date of payment, is payable by
              EQK on the earlier of (a) June 15, 1998 or (b) the date on which
              all or any part of the Original Principal Amount (as defined in
              the 1996 Commitment) is prepaid.  The payment of the Application
              Fee Balance remains unchanged by this forbearance agreement and
              shall be paid not later than June 15, 1998 in accordance with the
              1996 Commitment.
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     If the Borrower complies in a timely fashion with all of the Forbearnace
Conditions, Prudential will waive default interest accruing prior to or during
the Forbearance Period, and interest will be collected only at the Contract Rate
of 8.88% upon payoff in full. However, in the event Borrower does not comply in
a timely fashion with all of the Forbearance Conditions, interest will remain
due at the default rate of 13.92% from and after the Maturity Date.

     By countersigning this letter where indicated below, Borrower represents,
warrants, convents and agrees to and with Prudential as follows:
     
     1.   Prudential holds a valid and perfect first priority mortgage lien
against the property known as the Harrisburg Mall (the "Premises"), as set
forth in an Amended and Restated Open-End Mortgage and Security Agreement dated
as of December 15, 1992, as amended (the "Mortgage").

     2.   All leases of and rents generated by the Premises have been
absolutely assigned to Prudential, as assignee, and First Union National Bank
of Georgia, as Central Collection Agent, pursuant to the Absolute Assignment of
Leases and Rents and Rental Collection Agreement dated December 16, 1992, as
amended (the "Absolute Lease Agreement"), all rents, security deposits and
other sums paid under leases for the Premises have been and shall continue to
be paid to said Rental Collection Agent and all such sums have been and
continue to be deposited with the Escrow Agent and applied in accordance with
the Cash Management and Security Agreement dated as of December 15, 1992, as
amended (the "Cash Management Agreement"), by and among Borrower, Prudential
and First Union National Bank of Georgia, as Escrow Agent.

     3.   Borrower hereby ratifies and confirms all Loan documents, including,
without limitation, the Second Amended and Restated Note dated December 16,
1992, as amended (the "Note"), from Borrower to Prudential; the Mortgage; the
Absolute Lease Assignment; the Cash Management Agreement; ad the Confession of
Judgment contained in the Note; the Acknowledgement of Confession of Judgment
executed by Borrower and acknowledged December 19, 1996; and the Warrant
Agreement) by and between Borrower and Prudential.

     4.   Borrower does not have or hold any defenses, setoffs, demands or
claims against the Loan, Prudential or Prudential's officers, representatives or
agents.

     5.   As of the date of this letter, the outstanding principal balance of
the Loan is $43,794,149.14.

     6.   The Warrant Agreement remains in full force and effect, the number of
Shares of Borrower issuable to Prudential upon exercise of the Warrant are
367,868 Shares; Borrower currently holds in its treasury duly authorized and
previously issued Shares in such number and such Shares are reserved for
issuance to Prudential upon exercise of the Warrant. Prudential exercised the
Warrant by letter dated April 8, 1998, however, the transaction has not yet been
completed.


     This is a one-time forbearance and Prudential does not presently intend to
forbear beyond the date set forth above.

     In the event any of the Forbearance Conditions are not met in a timely
fashion, Prudential's obligation to forbear shall terminate and be null and
void, and Prudential shall be entitled to exercise any available remedies for
default under the Loan Documents and/or applicable law. Except for the limited
forbearance set forth above, Prudential reserves all of its rights and remedies
under the Loan documents or under applicable law, and this Forbearance Agreement
shall not be deemed an election of remedies, nor shall it constitue a waiver of
any rights or remedies otherwise available to Prudential.
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'Forbearance
Page 3


     As a futher material inducement for Prudential to enter into this
Forbearance Agreement without which Prudential would not have agreed to a
Forbearance Period, Borrower hereby makes the following irrevocable waivers:

     a) BORROWER WAIVES AND RELEASES ANY EXISTING OFFSETS, DEFENSES OR
        COUNTERCLAIMS RELATING TO THE LOAN OR THE LOAN DOCUMENTS.

     b) BORROWER ALSO WAIVES THE RIGHT TO A TRIAL BY JURY IN THE EVENT THE LOAN
        DOCUMENTS OR THIS FORBEARANCE AGREEMENT BECOME THE BASIS OF LITIGATION.


                                        Sincerely,

                                        /s/ David Graham
                                                         by JAC
                                        David A. Graham
                                        Vice President


Accepted and agreed to this 9 day of April, 1998.



BORROWER:

       /s/ Don Henry 
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    By:    Don Henry
       -----------------
    Title: VP
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     cc:  Paul Egan
          Jack McDonald
          Laurie Cook
          Mary Phillips