Capital Automotive L.P. Announces Planned Issuance of Senior Notes in Private Offering

MCLEAN, Va., Feb. 17, 2005 -- Capital Automotive REIT (the "Company") and its operating partnership, Capital Automotive L.P. (the "Partnership"), today announced that the Partnership plans to close a private offering of $175 million aggregate principal amount of its senior notes in February and March 2005. It is expected that the Partnership will issue $100 million aggregate principal amount of the senior notes on February 24, 2005, and an additional $75 million aggregate principal amount of the senior notes on March 30, 2005.

Upon issuance, the senior unsecured notes will bear interest at a fixed rate of 5.46 percent per annum and to mature on February 24, 2015. All of the senior notes will be issued by the Partnership and be guaranteed by the Company. Net proceeds from the sale of the senior notes will be used to refinance existing secured debt, to repay borrowings under the Company's unsecured revolving credit facility, for future acquisitions, and for general corporate purposes.

The senior notes and the guaranty will not be registered under the Securities Act of 1933 (the "Act") or applicable state securities laws, and have been offered only to institutional "accredited investors" within the meaning of Regulation D under the Act. The senior notes and the guaranty may not be offered or sold in the United States absent registration or the availability of an applicable exemption from the registration requirements of the Act and applicable state securities laws.

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.

  Contact Information
    David S. Kay
    Senior Vice President, Chief Financial Officer and Treasurer
    Capital Automotive REIT
    703.394.1302