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Capital Automotive REIT Named Best Real Estate Deal

5 June 1998

Capital Automotive REIT Named Best Real Estate Deal by the Washington Business Journal

    MCLEAN, Va., June 5 -- Capital Automotive REIT
today announced it was the recipient of the Washington Business Journal's
"Best Deal with Existing Real Estate/Retail" at the publication's Best Real
Estate Deals of the Year award dinner, held at the Ronald Reagan Building &
International Trade Center on Thursday, January 4th.  The event was in
celebration of the best real estate deals in 1997 for the greater Washington
area.
    Thomas D. Eckert, president and chief executive officer, stated "We are
delighted to have received this honor by the Washington Business Journal for
the best deal with existing real estate for the greater Washington region.
This award is in recognition of the creative application of the REIT concept
to automotive retail properties, the tireless efforts of our employees, and
the confidence of our shareholders.  We are extremely pleased with our
performance thus far, and as the only publicly traded REIT to focus on
automotive property, and we look forward to continued success through our
aggressive acquisition program."
    Capital Automotive REIT, headquartered in McLean, Virginia, is a self-
administered, self-managed real estate investment trust formed to acquire the
real property and improvements utilized by operators of multi-site, multi-
franchised motor vehicle dealerships and motor vehicle related business.
    The matters discussed in this press release include forward-looking
statements.  In addition, when used in this press release, the words "intends
to," "believes," "anticipates," "expects" and similar expressions are intended
to identify forward-looking statements.  Such statements are subject to a
number of risks and uncertainties.  Actual results in the future could differ
materially and adversely from those described in the forward-looking
statements as a result of various important factors, including the general
economic climate, the supply of and demand for automotive properties, interest
rate levels, the availability of financing, and other risks associated with
the acquisition and leasing of properties, including risks that the tenants
will not pay rent or that operating costs may be greater than anticipated and
the other risk factors set forth in the Company's filings with the Securities
and Exchange Commission.  The Company undertakes no obligation to publicly
release the result of any revisions to these forward-looking statements that
may be made to reflect any future events or circumstances.