2 reports
Capital Automotive Subsidiaries to Receive $170 Million In Acquisition Financing
MCLEAN, Va., April 7 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) announced today that subsidiaries of the Company have received a commitment for $100 million of secured financing from Ford Motor Credit Company and closed on two secured revolving credit facilities totaling $70 million -- $50 million from Comerica Bank and $20 million from United Bank. Proceeds will be used to fund acquisitions currently in the Company's pipeline.
The financing from Ford Motor Credit Company will have an annual fixed interest rate based on a spread of 250 basis points over the 10-year Treasury rate upon signing. The term of the financing is 12 years based upon a 25-year amortization. Principal and interest will be payable quarterly. The revolving credit facilities from Comerica Bank and United Bank have three-year terms with a floating interest rate of Libor plus 175 basis points.
Thomas D. Eckert, President and Chief Executive Officer, stated, "Capital Automotive continues to demonstrate its leadership as a specialty finance company for automotive retail real estate. The long-term funding allows us to match the maturities of our debt with our assets and enables us to lock in a favorable spread. The credit facilities provide us with the ability to warehouse properties on a short-term basis prior to long-term financing. We believe the financing arrangements from these leading financial institutions are a reflection of confidence in our business model and enable us to continue to complete high-quality, accretive acquisitions."
Capital Automotive Increases Portfolio to Approximately $600 Million; Completes $88 Million in Acquisitions in First Quarter 1999
MCLEAN, Va., April 7 /PRNewswire/ -- Capital Automotive REIT (Nasdaq: CARS) today announced that the Company has closed approximately $88 million of acquisitions for the first quarter ending March 31, 1999. Consideration for the acquisitions was $84.2 million in cash and $3.8 million in operating partnership units issued at an average price of $14.25 per share. The cash was funded from the proceeds of the Deutsche Bank $150 million permanent loan that closed in the fourth quarter of 1998 and funding from the $70 million secured revolving credit facilities announced today. The acquisitions include 22 dealership properties in five states, representing 19 franchises. Cap rates on these transactions are consistent with Capital Automotive's business plan. The Company's weighted average initial cap rate remained at 10.6%. Significant acquisitions included:
-- Eight properties from Group 1 Automotive, Inc. and its affiliates
located in Houston, Austin, Kingwood and Round Rock, Texas. Group 1
operates five franchises on the properties, including Toyota, Lexus,
Mitsubishi, and Nissan. The Toyota franchise is the number two Toyota
Dealership in new car sales in the United States and is ranked as the
number one pre-owned Toyota dealership in the nation. Group 1
Automotive, Inc., headquartered in Houston, is a leading operator and
consolidator in the highly fragmented automotive retailing industry.
-- One property from Park Place Motorcars located in Dallas, Texas. Park
Place Motorcars operates three franchises on the property, including
Mercedes-Benz, Porsche and Audi. Park Place's Mercedes-Benz franchise
is among the top 10 Mercedes-Benz franchises in the country.
Mr. Kenneth L. Schnitzer, Park Place's current President and CEO, was also named a premier Porsche dealer for two consecutive years. Mr. Schnitzer is a past chairman of the Mercedes-Benz Dealer Council and is a 1998 recipient of the American International Automobile Dealers Association's "All Star Dealer Award." Park Place is also one of the largest Lexus dealers in the state of Texas and is a four-time winner of the "Elite of Lexus Award."
-- One property from FirstAmerica Automotive, Inc. located in San Rafael,
Calif. The property is currently being developed by FirstAmerica and,
when completed, FirstAmerica will operate a Dodge franchise on the
property. FirstAmerica operates 15 franchises throughout California.
-- Three properties from McCluskey Chevrolet, a Cincinnati, Ohio-based
group. McCluskey Chevrolet, founded by CEO Dan McCluskey in 1973, has
received several prestigious awards and honors including being named
as a national finalist in the Small Business category for the "1997
National Quality Cup Competition," GMC's "Five Star Performer Award"
and "Showcase Dealer for Service Supremacy."
-- Four properties from the Craig Zinn Automotive Group, located in
Hollywood, Fla. Founded by CEO Craig Zinn in 1981, the group operates
two franchises on the properties. The Craig Zinn Automotive Group has
received several prestigious awards and honors including: a nine-time
winner of the "Toyota President's Award" and a three-time winner of
the "Elite of Lexus Award." Zinn is a member of the Toyota Board of
Governors, President's Leadership Board, and Parts and Services
Advisory Councils. Toyota of Hollywood's Used Car Department, Parts
Department and Service Department volume ranks in the top 10
nationally.
-- Three properties from affiliates of the Asbury Automotive Group, one
of the Top 100 dealer groups in the country as ranked by Automotive
News. The properties are located in Plano and Houston, Texas and
Jacksonville, Fla. The properties are leased to an affiliate of
Saturn Corporation, a subsidiary of General Motors. Three Saturn
franchises are operated on the properties.
-- Two properties from Mulkin Automotive Group, located in Brockport,
N.Y. Mulkin Automotive Group was founded by John Mulkin in 1964,
and operates five franchises on the properties, including Chevrolet,
Oldsmobile, Pontiac, Buick and GMC. Mulkin Automotive has received
numerous awards including the "Pontiac GMC Class of Distinction 1998"
and "Only the Best of Buick 1997."
Thomas D. Eckert, President and Chief Executive Officer, stated, "We continue to monitor the capital markets and industry trends and are managing our investments to provide enhanced returns with minimal risk to our shareholders. The Company has completed nearly $600 million in acquisitions since its initial public offering in February 1998. We have created significant relationships within the industry and will continue to leverage these relationships as we grow." |
