---

Capital Automotive Completes $39.6 Million in Acquisitions

12 October 2000

Capital Automotive Completes $39.6 Million in Acquisitions

    MCLEAN, Va., Oct. 11 Capital Automotive REIT
announced today that the Company has completed approximately
$39.6 million of acquisitions since the end of the second quarter 2000.
Consideration for the acquisitions was approximately $1.9 million in operating
partnership units (at an average price of $14.41 per unit), $1.6 million in
permanent financing and the remainder from a combination of funds drawn down
on the Company's short-term credit facilities and cash on hand.  It is
anticipated that the short-term debt will be replaced with permanent financing
during the fourth quarter of 2000.  The average initial lease term for these
acquisitions is 16.2 years, with multiple renewal options.  Investment spreads
were consistent with the Company's business plan.
    Thomas D. Eckert, President and Chief Executive Officer, stated, "We have
continued our focused acquisition strategy, which includes maximizing our
investment spreads while partnering with the strongest companies in the
industry.  Given the recent interest rate environment, our patient and
diligent approach to acquisitions is a winning formula for increasing
shareholder value.  Our business remains very strong.  We are confident about
our performance for the third quarter and for the remainder of the year."

    The significant acquisitions announced today include:

    --    Five properties from Sonic Automotive, Inc. and its affiliates
totaling approximately $18.3 million, located in
          Alabama, Florida, North Carolina and Texas.  Four franchises operate
          on the properties including Chevrolet, Honda, and Volvo, as well as
          a state of the art body shop.  These properties were acquired and
          leased back to Sonic as part of a $75 million commitment issued to
          Sonic during the second quarter of 2000.  Capital Automotive
          currently leases 65 properties to Sonic that were acquired for
          approximately $261.6 million.  Sonic is the 2nd largest dealership
          group in the United States with an estimated revenue run rate in
          excess of $6 billion for 2000.

    --    One wholesale vehicle auction property from Auction Broadcasting
          Company located in Indianapolis, Indiana totaling $9.5 million.
          Auction Broadcasting is one of the premier wholesale auction
          companies in the country.  Auction Broadcasting was founded by the
          former senior executives of ADESA Corporation, one of the largest
          vehicle auction companies in the country.  ADESA went public in 1992
          and was sold to Minnesota Power, Inc. in 1995.  Auction Broadcasting
          currently operates a total of five wholesale auctions with two
          additional locations under development.

    --    Two properties totaling approximately $4.7 million from the Momentum
          Automotive Group, based in Houston, Texas, consisting of a
          franchised BMW dealership and additional acreage for a previously
          acquired Volvo dealership. Capital Automotive currently leases eight
          properties to Momentum.  Momentum, which operates eight franchises
          from these properties, including, Audi, BMW, Jaguar, Land Rover,
          Porsche, Saab, Volkswagon, and Volvo, is one of the premier "high-
          line" franchised automotive dealer groups in the United States.

    --    One property from the Auffenberg Automotive Group, in O'Fallon,
          Illinois for $3.7 million that will operate as a satellite used car
          sales facility.  Capital Automotive currently leases six properties
          to Auffenberg.  Auffenberg operates 14 franchises from these
          properties, including Chrysler, Ford, Kia, Jeep/Eagle, Lincoln
          Mercury, Mazda, Mitsubishi, Nissan, Plymouth, Volkswagon, and
          Subaru.

    --    Facility improvements on previously acquired properties totaling
          approximately $3.1 million for Sonic.  Six franchises operate on the
          properties including Chevy, Infiniti, Lexus, Oldsmobile, Toyota, and
          Volvo.  These properties are located in California, Florida, North
          Carolina, and Tennessee.

    The ability to provide capital improvement funding on the Company's
portfolio is an important business consideration for their tenants.  Capital
Automotive has a policy of resetting the lease period back to the original
lease term when property improvements have been completed.  Rental payments
are increased by applying current cap rates to the fair market value of the
improvements.
    As of October 10, 2000, the Company's portfolio included 240 properties
with an asset value of $989 million, consisting of 356 automotive franchises
in 27 states.  Approximately 71% of the Company's properties are located in
the top 50 automotive markets in the country.  The properties are leased under
long-term, triple net leases with an average initial lease term of 13.4 years.
The Company has entered into transactions with 15 of the top 100 dealer groups
in the country -- 14 of which are tenants.  Approximately 66% of the Company's
annualized rental revenues are derived from this group of tenants.  As of
October 10, 2000, the Company's portfolio weighted average initial cap rate is
10.5%.