---

Capital Automotive REIT Close On $150 Million 10 Year Secured Notes

23 November 1998

Capital Automotive REIT Subsidiaries Close On $150 Million 10 Year Secured Notes

    MCLEAN, Va., Nov. 23 -- Capital Automotive REIT
announced today that subsidiaries of the Company have closed
$150 million of ten-year secured notes through an affiliate of Deutsche Bank
North America.  The notes, with an annual 7.67% fixed interest rate, mature on
December 1, 2008.  Monthly payments of interest only are due during the
initial two years.  Thereafter, monthly principal and interest payments will
be payable on a 25-year amortization schedule.  Proceeds from the notes will
be used to repay short-term bank financing and fund acquisitions currently in
the Company's pipeline.
    Thomas D. Eckert, president and chief executive officer, stated, "The
financing is one of the largest single real estate mortgage transactions
involving franchised automotive dealership properties in the credit markets.
These notes are secured by 60 properties and validate our strategy of securing
financing for our long-term credit needs through the capital markets.  To
successfully accomplish this financing in the current market environment
speaks to our stringent underwriting standards and the high quality of our
asset base.  As the only public REIT focused on automotive retail properties,
we continue to see substantial opportunities to acquire assets at attractive
yields, thereby enhancing shareholder value."
    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 has acquired $413 million of
automotive retail properties.  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.