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Capital Automotive REIT Announces Share Repurchase

21 October 1998

Capital Automotive REIT Announces Share Repurchase of Additional Three Million Shares

    MCLEAN, Va., Oct. 21 -- Capital Automotive REIT
announced today that its Board of Trustees has authorized an
additional repurchase of up to three million shares or nearly 14% of the
approximately 22 million shares of outstanding Common Stock. Purchases will be
made from time to time in open market transactions at prevailing prices or in
negotiated private transactions at management's discretion. The new three
million share repurchase program will commence immediately.
    The new repurchase program follows the buyback announced on
September 8, 1998 under which substantially all of the three million shares
were purchased at prices ranging from $9-1/8 to $11-7/8 per share.
    Thomas D. Eckert, president and chief executive officer, stated, "We
believe our stock remains significantly undervalued relative to net asset
value which presents an attractive investment opportunity for Capital
Automotive to maximize its return on capital and enhance shareholder value.
This repurchase reaffirms our commitment to return value to shareholders and
our confidence in the growth and future prospects of Capital Automotive."
    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 used by operators of multi-site, multi-
franchised motor vehicle dealerships and motor vehicle related business.  As
of September 30, 1998, Capital Automotive owned 96 properties in 16 states
occupied by 137 automotive franchises representing 35 brands.  Additional
information on Capital Automotive REIT is available on the Company's website
at http://www.capitalautomotive.com.

    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.