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MCLEAN, VA-A group of investors operating under the advisement of real estate investment management services provider DRA Advisors LLC of New York City will acquire locally based Capital Automotive REIT. The investors will acquire Capital Automotive in a transaction valued at $3.4 billion that is on schedule to close toward the end of this year or in early 2006.

The multi-billion deal, in which Capital stockholders will exchange their common shares for cash in the amount of $38.75 per-share, calls for the investors to assume an undisclosed amount of debt, as well as the REIT's Series A and Series B Cumulative Redeemable Preferred Shares.

"We strongly believe that this transaction provides substantial value to our shareholders and is in their best interests," Capital Automotive president and CEO Thomas D. Eckert says. He notes that tenants will also be well-served by the arrangement. According selected portfolio data detailed in Capital Automotive's earnings report for the second quarter of 2005, the REIT has 345 properties accounting for nearly 2,700 acres and 15 million sf in 32 states.