Search
 

Capital Automotive REIT Shells Out $4.7-Mil in Sale-Leaseback of Momentum Properties

HOUSTON-Capital Automotive REIT has taken control of two properties from the Momentum Automotive Group, paying $4.7 million as part of $39.6 million in second-quarter transactions for the McLean, VA-based operation.

By Connie Gore | Updated on October 16, 2000

HOUSTON-Capital Automotive REIT has taken control of two properties from the Momentum Automotive Group, paying $4.7 million as part of $39.6 million in second-quarter transactions for the McLean, VA-based operation. The Houston properties consist of a franchised BMW dealership plus acreage for a previously acquired Volvo dealership.

Capital Automotive currently leases eight properties to Momentum, which operates franchises on the parcels. The operating franchises are Audi, BMW, Jaguar, Land Rover, Porsche, Saab, Volkswagen and Volvo.

Consideration for the acquisitions totals about $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 from the company’s short-term credit facilities and cash on hand. The company plans to replace the short-term debt with permanent financing in the fourth quarter. The average initial lease term for the acquisitions is 16.2 years, with multiple renewal options.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.