"We continue to believe in minimizing interest rate risk by match-funding our balance sheet, and this transaction is further evidence of this strategy," Capital Automotive senior vice president and CFO David S. Kay says. "The notes will allow us to term out our short-term debt at historic low interest-rate levels. As of the closing date, approximately 91% of our debt will be substantially match-funded with long- term leases."

Specifically, the aforementioned debt includes $111 million in short-term credit facilities, and a $92-million short-term mortgage debt. In addition, remaining funds will be directed toward the purchase of more properties. Less than a year ago, Capital Automotive issued $325 million of triple net-lease mortgage notes to restructure a securitization from 1999. That transaction was secured by 94 automotive sales properties with long-term triple-net leases.