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MCLEAN, VA-Capital Automotive REIT has obtained $325 million in securitization with the issuance of Triple Net Lease Mortgage Notes by its subsidiary, CARS Loan Servicer LLC, via Credit Suisse First Boston. MBIA Insurance Corp. is insuring three of the four classes in which the notes were issued. Proceeds from the transaction will be allocated to funding acquisitions and to decreasing short-term credit facilities.

This securitization constitutes the restructuring of a $199.3 million securitization package from 1999, which Capital secured with 78 of its dealership properties. The remaining balance on that securitization is $173.2 million which, along with the $151.8 million of new issuances, accounts for the total $325 million package. The fixed-rate, fully amortizing notes carry Moody’s Investors Service’s “Aaa” rating, and Standard & Poor’s “AAA” rating. According to a Moody’s statement, the score is based on the “quality of the collateral, the strength of the structure, the substantial over-collateralization, and the servicing provided by CARS Loan Servicer.”

Serving as collateral for the multi-million-dollar securitization are 94 Capital dealership properties with an aggregate appraisal value of $460 million. As of March 31, the REIT has 274 properties across the country, accounting for $1.4 billion in investments, 10.7 million sf in buildings, and 1,900 acres of land. Capital also boasts having consistent portfolio growth and increased dividends for every quarter of its entire 17-quarter existence.

“This transaction, particularly the fact that both the insured and uninsured classes received triple-A ratings, provides further validation of the high quality of our real estate and tenants and the continued strength of our portfolio,” Capital senior vice president and CFO David S. Kay says. “Completing this transaction in the current interest rate environment provides very attractive fixed rate financing that not only lowers our all-in financing costs but lengthens our maturities. Additionally, the ability to retain the servicing rights to this portfolio allows us to offer the flexibility that our tenants require.”

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