Capital Automotive Announces Planned Public Offering of 2,000,000 Common Shares

MCLEAN, Va., May 31, 2005 -- 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 2,000,000 of its common shares. The Company will also grant the underwriters an over-allotment to purchase up to 300,000 additional shares. All of the common shares are being sold by the company.

Credit Suisse First Boston and RBC Capital Markets are joint book runners and joint lead managers for the offering. Copies of the prospectus supplement may be obtained from the offices of Credit Suisse First Boston, Prospectus Department, One Madison Avenue, New York, NY 10010, telephone: (212) 325-2580, or by faxing your request to (212) 325-8057 or from the offices of RBC Capital Markets, Prospectus Department, One Liberty Plaza, New York, NY 10006, telephone: (212) 428-6665, or by faxing your request to (212) 428-3026.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and is effective. This announcement shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any offer of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

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/.