Capital Automotive Announces Planned Common Share Offering

MCLEAN, Va., Feb. 3, 2004 -- Capital Automotive REIT , the nation's leading specialty finance company for automotive retail real estate, today announced that it will file with the Securities and Exchange Commission a prospectus supplement to a shelf registration statement for the public offering of 1,700,000 common shares. The Company will also grant the underwriters an over-allotment option to purchase up to 255,000 additional shares. All of the common shares are being sold by the Company.

Credit Suisse First Boston, Friedman Billings Ramsey and Citigroup are expected to be joint bookrunners and joint lead managers.

Copies of the prospectus supplement may be obtained from the offices of Credit Suisse First Boston, Prospectus Department, One Madison Avenue, New York, New York 10010, telephone: 212-325-2580, or by faxing your request to 212-325-8057, or from the offices of Friedman Billings Ramsey, Syndicate Department, 1001 Nineteenth Street North, Arlington, Virginia 22209, telephone: 800-846-5050, or from the offices of Citigroup, 390 Greenwich Street, New York, New York 10013.

About Capital Automotive

Capital Automotive, headquartered in McLean, Virginia, is a self- administered, self-managed real estate investment trust that acquires real property and improvements used by operators of multi-site, multi-franchised automotive dealerships and related businesses. Additional information on Capital Automotive is available on the Company's Web site at http://www.capitalautomotive.com/.