Capital Automotive

What Capital Automotive does

Capital Automotive (CARS) is a private, self-managed real estate finance company founded in 1998 and headquartered in McLean, Virginia. It specializes exclusively in providing sale-leaseback capital to automotive retail dealers, purchasing dealership real estate and leasing it back to the dealer operator under long-term agreements with initial 20-year terms renewable up to 40+ years. The firm also offers adjacent services including construction funding for facility remodeling and expansion, M&A real-estate underwriting support, and an Operating Partnership Unit Program for US tax deferral. Since inception, Capital Automotive has executed more than $5.5 billion in cumulative acquisitions across 618 properties, 1,000+ franchises, and 45+ automotive brands spanning 47 US states and Canadian provinces. The company previously operated as a public REIT, was privatized in 2005 under DRA Advisors LLC, and was sold in 2014 to its current private ownership; it has remained continuously operating since.

The company generates revenue primarily through long-tenor rental income on its sale-leaseback portfolio, with rents determined by applying a cap rate to real estate value and subject to CPI escalators with caps and floors. Minimum transaction size is typically $10 million in real estate, with some flexibility down to the $5 million range. The value proposition to dealers centers on unlocking 100% of real estate equity without requiring personal guarantees, hedging interest rate risk via fixed-rate financing, and supporting growth, acquisitions, and estate planning without incurring additional mortgage debt. Go-to-market is executed through a direct enterprise sales model — a Business Development Team and Senior Business Professionals originate transactions through deep relationships across the US and Canadian dealer ecosystem, with several acquisitions team members recruited from Ford Motor Credit, Chrysler Capital/Santander, and other captive automotive finance arms.

Capital Automotive operates with 11-50 employees, reflecting the capital-intensive, relationship-driven nature of the business. Leadership is led by CEO Roger Stattel (joined 2016 as CFO after prior tenure at DRA Advisors), President and COO Daniel E. Garces (31+ years in dealer commercial lending), CFO Erica B. Golden (tenure since 2000), and Chief Legal Officer Stephanie Rochel. The firm is privately held with no public revenue disclosure, no outside venture funding rounds, and no proprietary technology platform, AI, or data product offerings evidenced in available materials.

Name

Capital Automotive

Legal name

Capital Automotive

Website

https://capitalautomotive.com

Company type

Private

Founded year

1998

Operating status

Operating

Headcount range

11–50 employees

Short description

Capital Automotive (CARS) is a private real estate finance firm providing sale-leaseback capital and related services exclusively to automotive dealers across the US and Canada, with $5.5B in cumulative acquisitions across 618 properties since 1998.

Ownership category

akta.pro rank

Product category

Commercial Real Estate Financing

NAICS

Sales Financing (52222), Other Investment Pools and Funds (5259), Funds, Trusts, and Other Financial Vehicles (525)

SIC

Real Estate Dealers (For Their Own Account) (6532), Finance Lessors (6172), Investors, Nec (6799)

akta.pro primary industry

Capital Markets Advisory (Equity Placement, JV & Recapitalization) (BPAJABAL)

Keywords

• Sale-leaseback financing
• Automotive real estate
• Commercial property leasing
• Dealership capital solutions
• Real estate investment

Headquarters

HQ city

Mclean

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Infrastructure, Operations, Marketing or Sales, Others

Revenue model

1. Sale-Leaseback Transaction Fees: Capital Automotive generates revenue by purchasing automotive dealership real estate from dealers and leasing it back to them. Dealers access capital currently invested in dealership real estate while maintaining long-term site control. The company earns rental income from long-term leases with initial terms of generally 20 years, renewable for up to 40+ years total.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels2 records

Core offering

Capital Automotive is a self-managed real estate investment company that acquires automotive dealership real estate and leases it back to the original dealer under long-term agreements (initial 20-year terms, renewable up to 40+ years). The company unlocks capital tied up in dealership real estate while allowing dealers to retain operational control of their facilities. Complementary offerings include Construction Funding for expansions and M&A Underwriting Support for dealer acquisitions.

Product overview

Capital Automotive is a specialized real estate investment firm providing highly tailored sale-leaseback capital solutions exclusively to the automotive retail industry since 1998. The company's core product is its Sale-Leaseback financing service, which allows automobile dealers to monetize their real estate while maintaining operational control. The company offers a unified platform of complementary services including Tax Deferral Options (via Operating Partnership Unit Program), Merger & Acquisition Support, and Construction Funding. Capital Automotive's portfolio encompasses various property types—new car dealerships, used car facilities, auction sites, body shops, and other automotive properties—spanning 47 states and Canadian provinces with over $5.5 billion in cumulative acquisitions across 618 properties and 1,000+ franchises representing 45+ automotive brands.

Differentiator

Problem solved

Functional benefit

Products and services

• Sale-Leaseback Financing Core sale-leaseback product in which Capital Automotive purchases automotive dealership real estate from dealers and leases it back to them, allowing dealers to access 100% of their real estate equity while maintaining long-term site control under initial 20-year lease terms (renewable up to 40+ years). Transactions typically involve at least $10 million in real estate value. A U.S. Operating Partnership Unit Program may enable sellers to defer capital gains taxes.
• Construction Funding Capital Automotive provides funding for additional property investments during or after the initial sale-leaseback, enabling dealer groups to remodel or expand facilities while preserving operating capital and credit capacity, with no requirement for additional mortgage debt on the operator.
• Merger & Acquisition Underwriting Support Capital Automotive assists dealer groups during M&A due diligence by underwriting the real estate portion of the transaction, allowing the acquirer to focus on underwriting the operating business.

Quantifiable outcome

• Dealers can access 100% of the equity in their real estate while maintaining long-term site control
• +1 more outcomes

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators5 records

Recent moves5 records

Expansion highlights5 records

Broad incumbents

• W. P. Carey: W. P. Carey is a large diversified net lease REIT that provides sale-leaseback financing across industrial, retail, and office. While it does not specialize in automotive, its sale-leaseback model and tenant relationships make it the most direct broad comparable for Capital Automotive's core business.
• Realty Income: Realty Income is the largest net lease REIT, providing sale-leaseback and capital solutions across diverse industries. Its scale and net lease structure closely parallel Capital Automotive's model, though Realty Income operates across many verticals rather than specializing in automotive.
• Agree Realty: Agree Realty is a net lease REIT focused on retail tenants, with similar long-duration lease structures and tenant credit underwriting. While retail-focused rather than automotive, its sale-leaseback orientation and ground-up development capabilities are highly comparable.
• EPR Properties: EPR Properties is a specialty net lease REIT focused on experiential and entertainment properties. Its specialty tenant focus and long-lease structure are analogous to Capital Automotive's niche vertical specialization, though EPR operates in different end markets.
• Four Corners Property Trust: Four Corners Property Trust is a net lease REIT focused on restaurants. While serving a different tenant vertical, its sale-leaseback model, long-duration leases, and tenant credit underwriting approach closely mirror Capital Automotive's operating model.
• STORE Capital: STORE Capital was a leading sale-leaseback specialist focused on middle-market businesses across many industries, taken private in 2023. Its single-tenant net lease sale-leaseback model was one of the closest analogs to Capital Automotive's business, though STORE served diverse verticals rather than specializing in automotive.
• Spirit Realty Capital: Spirit Realty Capital was a net lease REIT (acquired by Realty Income in 2024) that focused on freestanding single-tenant commercial properties. Its sale-leaseback model and tenant diversification strategy are comparable to Capital Automotive's approach, though Spirit served broader industries.
• Phillips Edison & Company: Phillips Edison & Company is a net lease REIT focused on grocery-anchored shopping centers. While its property type differs, its public market presence provides valuation benchmarks for small, focused net lease REITs that have been involved in take-private transactions similar to Capital Automotive's history.

Others

• CBRE Group: CBRE Group is the largest commercial real estate services firm globally, providing capital markets advisory including sale-leaseback origination and structuring. Several Capital Automotive executives (Alicia Thomas, Melanie Stehmer-Townsend) came from CBRE, making it a relevant comparator for talent and capability overlap.
• JLL (Jones Lang LaSalle): JLL is a global real estate services and investment management firm with a dedicated capital markets practice that includes sale-leaseback advisory. Comparable as a complementary capital markets participant and competitor for talent in the real estate finance space.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• LinkedInlinkedin.com/company/capital-automotive-reit

Revenue estimate

Valuation estimate

Number of profiles

Profiles15 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Capital Automotive