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Capital Automotive REIT Files Registration Statement for IPO; Transaction Intended To Raise $225 Million

1 December 1997

Capital Automotive REIT Files Registration Statement for IPO; Transaction Intended To Raise $225 Million

    ARLINGTON, Va., Dec. 1 -- Capital Automotive REIT announced
today that it has filed a Form S-11 Registration Statement with the Securities
& Exchange Commission for its initial public offering of common shares. The
offering of 15 million common shares will be priced between $14 and $16 per
share for sale in an underwriting managed by Friedman, Billings, Ramsey & Co.,
Inc.
    The Company will be the first publicly offered real estate investment
trust (REIT) formed to acquire and lease back real property and improvements
for use by automotive dealers. The Company's strategy is to acquire a
diversified portfolio of automotive properties throughout the United States,
primarily occupied by new and used motor vehicle retail dealerships, and
related businesses. The Company intends in each case to lease back the
properties to their operators or affiliates on a long-term triple-net basis.
The Company has entered into agreements to acquire a total of 21 parcels of
real estate and related improvements from the following dealership groups: The
Pohanka Automotive Group, the Rosenthal Automotive Organization, the Sheehy
Auto Stores and the Cherner Automotive Group.
    The Registration Statement relating to the common shares has been filed
with the Securities & Exchange Commission, but has not yet become effective.
These securities may not be sold nor may offers to buy be accepted prior to
the time the Registration Statement becomes effective and unless pursuant to
the prospectus contained within the Registration Statement. This press release
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of these securities in any state which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any state.
    A copy of the prospectus relating to the proposed offering may be obtained
from Friedman, Billings, Ramsey & Co., Inc., 1001 19th Street North,
Arlington, Virginia, 22209.

SOURCE  Capital Automotive REIT