Capital Automotive plans a $475 million securitization of commercial real estate, primarily auto dealership leases, according to Standard & Poor's.
Credit Suisse has been mandated to lead the CARS Series 2014-1 transaction.
The collateral pool consists of 149 leases on 162 properties. The properties are leased primarily to franchised auto dealerships and other auto-related businesses. As of June 30, 2014, CARS has invested in more than 300 properties with approximately 450 franchises representing more than 40 brands in 35 states, according to a Standard & Poor’s presale report.
Sonic Automotive (18.3%), Asbury Automotive Group (12.4%), Penske Automotive Group (11.5%), Atlantic Automotive Group (7.3%), and Group One Automotive (3.9%) represent the five largest dealer groups in the pool.
The triple-net nature of the leases requires the tenants to pay all maintenance, taxes, and insurance on the properties. The leases have 15- to 20-year initial terms and multiple five-and 10-year renewal options.
Capital Automotive plans to sell $118 million of AAA’ rated securities; $313 million of A’ rated securities and $44 million of BBB’ rated securities.