Capital Automotive REIT Subsidiaries Close On 150 Million 10 Year Secured Notes
MCLEAN, Va., Nov. 23 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) announced today that subsidiaries of the Company have closed $150 million of ten-year secured notes through an affiliate of Deutsche Bank North America. The notes, with an annual 7.67% fixed interest rate, mature on December 1, 2008. Monthly payments of interest only are due during the initial two years. Thereafter, monthly principal and interest payments will be payable on a 25-year amortization schedule. Proceeds from the notes will be used to repay short-term bank financing and fund acquisitions currently in the Company's pipeline.
Thomas D. Eckert, president and chief executive officer, stated, "The financing is one of the largest single real estate mortgage transactions involving franchised automotive dealership properties in the credit markets. These notes are secured by 60 properties and validate our strategy of securing financing for our long-term credit needs through the capital markets. To successfully accomplish this financing in the current market environment speaks to our stringent underwriting standards and the high quality of our asset base. As the only public REIT focused on automotive retail properties, we continue to see substantial opportunities to acquire assets at attractive yields, thereby enhancing shareholder value."
Capital Automotive REIT, headquartered in McLean, Virginia, is a self-administered, self-managed real estate investment trust formed to acquire the real property and improvements used by operators of multi-site, multi-franchised motor vehicle dealerships and motor vehicle related business. As of September 30, 1998, Capital Automotive has acquired $413 million of automotive retail properties. Additional information on Capital Automotive REIT is available on the Company's website at www.capitalautomotive.com.
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