FFCA Provides Approximately $62 Million of Sale/Leaseback Financing to Discount Auto Parts, Inc.

    SCOTTSDALE, Ariz.--March 8, 2001--Franchise Finance Corporation of America ("FFCA") today announced it has provided approximately $62 million in financing to U.S. Realty Advisors, LLC ("USRA") for the acquisition of 101 automotive parts stores sold and leased back by Discount Auto Parts, Inc. ("Discount Auto Parts"), one of the Southeast's leading specialty retailers and suppliers of automotive replacement parts, maintenance items and accessories.
    Under terms of the proposed transaction, which closed on February 27, 2001, the purchase of the 101 automotive parts stores was financed by USRA's equity investment and FFCA's fixed rate mortgage financing supported by master leases between affiliates of USRA and Discount Auto Parts.
    "To help Discount Auto Parts achieve its financial objectives, FFCA formulated a creative financing solution utilizing sale/leaseback financing," states Stephen G. Schmitz, Executive Vice President and Chief Investment Officer of FFCA. "This allowed Discount Auto Parts the ability to free up capital that had been tied up in corporate real estate ownership. The relationship between FFCA and USRA provides FFCA's clients the opportunity to monetize the value of their real estate assets and thereby put capital into their business operations."
    "We were very pleased with USRA and FFCA's ability to complete this transaction on an aggressive timeline and in a difficult market," states C. Michael Moore, Executive Vice President and CFO of Discount Auto Parts. "With the closing of this transaction, the capital needs of Discount Auto Parts should be addressed for the next two to three years."
    "Discount Auto Parts recognizes that corporate ownership of real estate can be a sub-optimal use of capital, particularly given increasing constraints in the financial markets," added Laurie A. Hawkes, Partner of USRA. "The company's decision to pursue a sale/leaseback transaction typifies the financing strategy that an ever increasing number of corporations are implementing with respect to their real estate assets. We are extremely pleased that the FFCA/USRA joint funding program will enable Discount Auto Parts to continue to focus on its core business."
    Based in Scottsdale, Arizona, FFCA is the country's premier single-tenant retail property finance company dedicated to providing real estate financing to multi-unit operators of chain restaurants, convenience stores and automotive services and parts outlets. The company's financing alternatives include mortgages and long-term real estate leases, construction and acquisition financing, equipment loans, and other custom financing solutions. Diversified by industry, geographic location, client and chain, FFCA had a combined investment and servicing portfolio of more than 6,200 properties throughout the U.S. as well as in Canada as of December 31, 2000. Its clients operate some of the best-known chains in the country, including Applebee's, Arby's, Burger King, Checker Auto Parts, Chevron, Circle K, Citgo, Cracker Barrel, Hardee's, Jack in the Box, Long John Silver's, Midas Muffler Shops, Pizza Hut, 7-Eleven, Taco Bell, Texaco, Valvoline Instant Oil Change and Wendy's. Visit our website at www.ffca.com for more information about the company.
    Headquartered in New York City, USRA specializes in the acquisition of real estate properties net leased to corporate tenants. Over the past decade, USRA has completed over $18 billion of leveraged lease, sale/leaseback transactions and complex recapitalizations. Assets acquired represent the full spectrum of real estate including restaurants, retail/convenience stores, office, industrial, lodging, media/entertainment and destination hotel resorts. USRA has investments in 45 states and Mexico with a current portfolio value in excess of $6 billion.
    Headquartered in Lakeland, Florida, Discount Auto Parts, Inc. is one of the Southeast's leading specialty retailers and suppliers of automotive replacement parts, maintenance items and accessories to both do-it-yourself consumers and professional mechanics and service technicians. The Company currently operates over 660 stores located throughout Florida, Georgia, Mississippi, Alabama, Louisiana, and South Carolina.