Capital Automotive Prices $100 Million Convertible Notes Offering

MCLEAN, Va., May 7, 2004 -- Capital Automotive REIT , the nation's leading specialty finance company for automotive retail real estate, today announced that it has priced a public offering at par of $100 million of 6% Convertible Notes due May 15, 2024. The notes are convertible, at the option of the holder, into the Company's common shares at an initial conversion price of $35.5679 per share, subject to certain adjustments. The initial conversion price is equivalent to a conversion rate of 28.1152 shares per $1,000 principal amount of notes and equivalent to a premium of 30% over the closing price of the Company's common shares on May 6, 2004.

The convertible notes will be unsecured and unsubordinated obligations of the Company. All of the notes are being sold by the Company. The offering is expected to close on May 12, 2004. Credit Suisse First Boston is the sole manager of the offering. The Company has granted the underwriter an option to purchase up to an additional $10,000,000 aggregate principal amount of convertible notes.

The Company may, at its option, redeem the convertible notes for cash on or after May 15, 2009, at any time in whole or from time to time in part, at a redemption price equal to 100% of the principal amount to be redeemed, plus accrued and unpaid interest.

Holders may require the Company to repurchase all or part of their convertible notes on May 15, 2009, May 15, 2014 and May 15, 2019, or upon a change of control of the Company, at a price equal to 100% of the principal amount of the convertible notes plus accrued and unpaid interest. The repurchase price will be payable in cash or, in certain circumstances, in common shares.

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.

This press release shall not constitute an offer to sell or the solicitation of any offer to buy the convertible notes.

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/.

  Contact Information

   David S. Kay
   Senior Vice President, Chief Financial Officer and Treasurer
   Capital Automotive REIT
   703-394-1302