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Capital Automotive REIT Buys Another $39.6 Mil in Car Lots

MCLEAN, VA-The REIT continues its buy-spree, paying $39.6 million since the end of June for nine properties and improvements. It expects to buy another $100 million worth of properties in 2001.

By Mike Cleary | Updated on October 12, 2000

MCLEAN, VA-Capital Automotive REIT has continued its campaign of acquisition, paying $39.6 million since the end of June for nine properties and improvements in various facilities belonging to its car dealership tenants.The acquisitions bring Capital Automotive’s portfolio to $989 million, and the company isn’t done yet. It expects to buy another $100 million worth of properties in 2001.

“We’re being patient. When we see good deals with good yields, we take advantage of them,” says vice president and CFO David Kay. The plan is based on buying car lots from strong dealerships and leasing them back to the sellers, while maximizing interest rate spreads on the deals.

It achieves several objectives. “We want to maintain good relations with clients and increase net asset values and shareholder value,” Kay explains.

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