Capital Automotive

Capital Automotive investor on tropical cruise

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Capital Automotive is different from most real estate investment trusts. Formed in 1997, it was the first to concentrate solely on the highly specialized skill of providing sale-leaseback capital to the retail automotive industry. That is, new auto dealers. Plus, they work with used car lots and automotive-related businesses such as car storage lots, body shops and so on.

They now have the largest portfolio of automotive retail properties in the world. Their stock ticker symbol is, appropriately, CARS. Corporate headquarters is in McLean Virginia.

Basically, dealers sell the land their dealership sit on to Capital Automotive, and they in turn lease it back to the dealer.

Capital Automotive has invested over $3.8 billion in 590 automotive dealership franchise facilities. That's over 17.5 million square feet, on over 3,100 acres in 38 states and in Canada.

By utilizing sale-leaseback agreements, dealers can free up capital for acquisitions, operations expansion, or for new lines of business. Also, dealers can use Capital Automotive to help them get more money from separating their business from their real estate when selling to publicly traded companies.

They offer fixed and variable rate leases, plus mortgage loans. They obtain an interest in the land underneath the dealership, while the dealer retails control of their automotive business. They have a facility improvement and construction lending program.

Capital Automotive Portfolio:

Atlantic Automotive Motorworld Wilkes-Barre PA, Burt Arapahoe Ford/Mazda Centennial CO, Don Massey Cadillac Plymouth MI, Family Honda Rancho Santa Margarita CA, Global Imports BMW Atlanta GA, Herb Gordon Auto Mall Silver Spring MD, Honda and Volvo of Santa Monica Santa Monica CA, Honda West Las Vegas NV, Inskip Auto Mall Warwick RI, Kearny Mesa Auto Mall San Diego CA, Lithia Ford Mazda Suzuki Fresno CA, Lone Star Chevrolet Jersey Village TX, Lone Star Ford Houston TX, Midwestern Auto Group Dublin OH, Midwestern BMW and MINI Dublin OH, Nalley Lexus Galleria Smyrna GA, Park Place Motorcars of Mid-Cities Dallas TX, Rosenthal Tysons Corner McLean VA, Scottsdale 101 Auto Collection Phoenix AZ, Sheehy Springfield Ford Kia Isuzu Springfield VA, and Woodfield Lexus Schaumburg IL.

Capital Automotive is obviously a REIT in a very specialized area. The major concern of course is the state of automotive industry in general in the United States. If dealers can't pay the rents, then CARS could have a cash squeeze also.

Next: What is the Crescent Real Estate Equities -- REIT with office buildings and resorts

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