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Capital Automotive REIT Commences Initial Public Offering of 20 Million Shares of Common Stock

13 February 1998

Capital Automotive REIT Commences Initial Public Offering of 20 Million Shares of Common Stock

    WASHINGTON, Feb. 13 -- Capital Automotive REIT
today announced the commencement of its initial public offering of
20,000,000 shares of common stock at a price of $15 per share.  All of the
shares in the Offering are to be sold by the Company.  In addition, the
Company has granted the underwriters an option to purchase up to
3,000,000 additional Common Shares on the same terms to cover over-allotments.
    Capital Automotive REIT is 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 to lease back the properties to
their operators or affiliates under long-term leases.
    The net proceeds from the offering will be used primarily for investment
in properties and for general working capital purposes.
    The offering is being managed by Friedman, Billings, Ramsey & Co., Inc., a
Washington, D.C.-area investment banking firm.
    This announcement is neither an offer to sell nor a solicitation of an
offer to buy these securities, nor shall there be any sale of these securities
in any state in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any state.  Any
offer is made only by the Prospectus, copies of which can be obtained by
contacting Friedman, Billings, Ramsey & Co., Inc., 703-312-9500, Potomac
Tower, 1001 19th Street North, Arlington, VA 22209.

SOURCE  Capital Automotive REIT