LR's CapRocq Automotive Partners With NY Firm on $66M Acquisition, Lease Back

by Mark Carter  on Wednesday, Sep. 19, 2012 4:57 pm  

From left, Kevin Huchingson, Beau Blair and Franklin McLarty.

CapRocq Automotive of Little Rock announced Wednesday a strategic partnership with New York investment firm W. P. Carey on a series of real estate sale-leaseback transactions involving auto dealerships. 

CapRocq is an asset management firm founded by Franklin McLarty and Beau Blair. Thomas "Mack" McLarty and Steve Landers Sr. serve on its advisory board.

In addition, W.P. Carey, through one of its publicy held but non-traded REIT affiliates, announced it had purchased nine dealerships from RLJ-McLarty-Landers Automotive Holdings for $66 million.

The acquisition is the first investment completed through its strategic partnership with CapRocq, Franklin McLarty said. The acquired dealerships are located in Arkansas, Alabama, Louisiana, Missouri, Tennessee and Texas, and total 378,964-SF. 

"The sale-leaseback transaction with W. P. Carey is a good fit for RLJ-McLarty-Landers, and we believe it will be a good fit for other dealers as well," said Franklin McLarty, who will serve as chairman and support Blair in his role as president and managing partner. 

Kevin Huchingson, president and CEO of Colliers Arkansas, will join CapRocq as a principal.

"Our partnership with W. P. Carey is a unique opportunity to pursue subsequent transactions and grow the lease portfolio in a large and fragmented market," Blair said. "We believe we have an attractive product and value proposition to offer dealers looking to unlock real estate value. We're also pleased to have the support of the state's leading real estate firm Colliers Arkansas." 

Jason Fox, W. P. Carey's managing director and co-head of global investments, said the partnership with CapRocq enables his firm to enter attractive commercial real estate markets and enter into long-term, triple net leases.



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