Capital Automotive Reacquires Full Ownership of MTI Automotive Retail Net Lease Portfolio

Capital Automotive consolidates full ownership of a 49-property, 2.3 million square-foot automotive retail net lease portfolio across 20 states.

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Transaction Consolidates 49 Properties Across 20 States into Wholly Owned Platform

MCLEAN, Va.--(BUSINESS WIRE)-- Capital Automotive L.P. (“Capital Automotive” or “CARS”), a portfolio company of Ares Alternative Credit and Real Estate funds (“Ares”), announced today that it has completed the acquisition of its joint venture partner’s 90.01% interest in the MTI Portfolio, a 49-asset portfolio of automotive retail real estate. The transaction restores CARS’ full ownership of the MTI Portfolio following the sale of the interest in 2020. Ares acquired Capital Automotive in 2022.

The MTI Portfolio comprises 49 operationally essential triple net leased automotive retail properties totaling approximately 2.3 million square feet across 20 states, with its largest concentrations in the Southeast, Midwest, and Mid-Atlantic. The portfolio is diversified across brands and tenant groups, with meaningful representation from import and luxury franchises. Capital Automotive managed the portfolio throughout the joint venture period, so tenants should expect no change in day-to-day operations.

“We are pleased to bring these assets back under our full ownership, which allows us to completely oversee the asset management, financing and long-term strategy for this leading portfolio,” said Roger Stattel, Chief Executive Officer of Capital Automotive. “Given CARS has managed these properties throughout the joint venture, the transaction is seamless for our dealer partners, and we look forward to continuing to strengthen these relationships.”

Latham & Watkins LLP served as legal counsel to Capital Automotive on the transaction.

About Capital Automotive

Headquartered in McLean, Virginia, Capital Automotive provides customized sale-leaseback financing to the automotive industry since 1998. The company partners with dealer groups nationwide to fund acquisitions, construction and facility improvements, as well as estate planning and partner buyouts, while enabling dealers to maintain long-term control of their locations. For more information, please visit www.capitalautomotive.com.

About Ares Management Corporation

Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to advance our stakeholders’ long-term goals by providing flexible capital that supports businesses and creates value for our investors and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2026, Ares Management Corporation’s global platform had over $671 billion of assets under management, with operations across North America, South America, Europe, Asia Pacific and the Middle East. For more information, please visit www.ares.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260915714734/en/

Media Contact: info@capitalautomotive.com

Source: Capital Automotive L.P.

Key Terms

triple net leased financial

A triple net leased property is one where the renter pays not only base rent but also the building’s property taxes, insurance and most maintenance costs, shifting those variable expenses from the owner to the tenant. For investors, this arrangement often means steadier, more predictable income and lower operating costs, but also greater exposure to the creditworthiness and lease terms of the tenant—similar to collecting rent while the tenant handles the utility bills and repairs.

sale-leaseback financing financial

Sale-leaseback financing is when a company sells an asset—commonly property or equipment—to a buyer and immediately leases it back so it keeps using the asset while receiving cash from the sale. Investors care because it converts tied-up assets into liquid money that can pay debt, fund operations or growth, but it also creates ongoing rent costs and can change reported profits and balance-sheet risk—like selling your house to unlock cash and then paying rent to stay.