Capital Automotive Closes $65.3 Million in Acquisitions
Adds Thirteen Properties, Sixteen Franchises in Five States
McLEAN, Va., Nov. 18 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) today announced that it has closed approximately $65.3 million of acquisitions during the first half of the fourth quarter 1999. Consideration for the acquisitions was approximately $51.7 million in cash and $13.6 million in operating partnership units. The cash was funded primarily from cash-on-hand. The operating partnership units were priced at $13.12 per share. The acquisitions included 13 dealership properties in five states representing 16 franchises, and totaling approximately 57.75 acres and approximately 522,000 building square feet. The average initial lease term for these acquisitions is 14.2 years, with multiple five and ten-year renewal options. Cap rates were consistent with the Company's business plan. All but four of the properties have been leased to existing Capital Automotive tenants. Significant transactions are listed below and virtual tours of the majority of these properties can be viewed at www.capitalautomotive.com .
-- Four properties from the Miller Automotive Group in Salt Lake City,
Utah, totaling 10.42 acres and 201,763 building square feet, for
approximately $16.2 million. Miller Automotive Group operates four
franchises on the properties including Toyota, Buick, Kia, and Pontiac.
Mark Miller Toyota has won Toyota's Presidents Award seven times. Mark
Miller Pontiac has been a Pontiac Master Dealer for thirteen years.
Mr. Miller has received numerous awards including the AIADA/Sports
Illustrated All Star Dealer Award and the Time Magazine Quality Dealer
Award.
-- Two properties from the Bohn Automotive Group in New Orleans,
Louisiana, totaling 17.25 acres and 103,915 building square feet, for
approximately $14.8 million. The properties have been leased to Group
1 Automotive (NYSE: GPI), which operates four franchises on the
properties including Ford, GMC, Pontiac, and Toyota.
-- Three properties from the Freeland Group in Fort Myers, Florida,
totaling 16.2 acres and 69,496 building square feet, for approximately
13.1 million. These properties have been leased to Sonic Automotive
(NYSE: SAH), which operates four franchises on the properties including
Honda, BMW, Nissan, and Mercedes Benz.
-- Two properties from the Kramer Automotive Group in Santa Monica,
California, totaling 1.72 acres and 48,788 building square feet, for
approximately $9.6 million. These properties are leased to First
America Automotive who has recently signed a definitive contract to be
acquired by Sonic Automotive. First America operates two franchises on
the properties including Honda and Volvo.
-- One property from Park Place Motorcars in Dallas, Texas, totaling
8.92 acres and 71,572 building square feet. Park Place operates a
Mercedes Benz franchise on the property. Park Place currently leases
four other properties from Capital Automotive.
-- One property from an affiliate of Asbury Automotive in Jacksonville,
Florida, totaling 3.24 acres and 16,400 building square feet for
approximately $2.5 million. This property has been leased to an
affiliate of Saturn Corporation. Saturn Corporation guarantees the
lease.
Thomas D. Eckert, president and chief executive officer of Capital Automotive, stated, "These acquisitions clearly demonstrate our ability to continue to execute our business plan and to facilitate the expansion plans of our existing tenants. We continue to pursue high-quality acquisitions by capitalizing on our strong relationships and competitive position. We have strengthened our portfolio by diversifying our tenant base and creating additional geographic and franchise diversification. We are also pleased to announce the issuance of $13.6 million of operating partnership units. All of these transactions are highly accretive, and we remain very optimistic about our future."
As of November 17, 1999, the Company's $929 million portfolio included 229 properties, including 348 automotive franchises in 27 states. These properties total 8.0 million square feet of buildings and improvements on 1,286 acres of land. The properties are leased under long-term, triple net leases with an average initial lease term of 13.3 years. The Company has entered into transactions with 16 of the top 100 dealer groups in the country -- 15 of which are tenants. Approximately 65% of the Company's annualized rental revenues are derived from this group of tenants. As of November 17, 1999, the Company's portfolio weighted average initial cap rate is 10.5%. |
