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Capital Aviation Group

Capital Aviation Group (“CAG“), a subdivision of Capital Automotive Real Estate Services, Inc. (“CARS”), offers real estate financing options to the general business aviation industry. The financing experience of Jay Ferriero and the CARS team coupled with the industry expertise of the CAG Advisory Board members, Marty Hiller and Larry Flynn, makes CAG a unique and knowledgeable financial partner. Through the proven sale-leaseback model of CARS, CAG enables FBO operators, MRO owners, and other aviation companies to improve cash flow, expand their business, and deleverage.

WHY CAG?

CAG offers FBO operators, MRO owners, and OEMs a one-of-a-kind, customizable financing partnership that does not currently exist in the general aviation industry. By applying the 20-year success of the CARS’ financing strategy, CAG can provide a number of financial benefits to operators in the general aviation industry.

CAG provides operators with 100% financing of leasehold improvements, matching the duration of the transaction with the term of the underlying ground lease. CAG also purchases the underlying land when possible.

CAG transactions reduce closing costs and mitigate interest-rate risk through providing fixed-rate financing. CAG partners with operators to assist with buyouts, mergers, consolidations, and improvements, while improving returns on the capital invested in operating the business.

PROPERTY TYPES

Airport Infrastructure

Air Cargo

Hangar

Fuel Farms

TRANSACTION SERVICES

Sale-Leaseback Transactions: CAG provides liquidity to owners/managers while maintaining current business operator
M&A Support: CAG allows owners to bifurcate real estate and business operations, to maximize sale proceeds and expand the pool of potential buyers
Construction Funding: CAG capital allows operators to complete necessary development or remodeling, while preserving owners’ capital to be reinvested in the business

FINANCIAL BENEFITS

ENHANCE CASH FLOW

to permit acquisition activity, equity redemptions, estate planning, and deleveraging

IMPROVE RETURNS

by 100% leveraging real estate

HEDGE INTEREST RATE RISK

by locking in a fixed rate, subject only to CPI escalators

REDUCE LEVERAGE

by funding construction and acquisitions without assuming mortgage debt

MAXIMIZE FINANCIAL FLEXIBILITY

by eliminating the bank’s need to syndicate large deals and charge high fees

MITIGATE BUSINESS RISK

by partnering with financial and industry experts

INVESTMENT CHARACTERISTICS

Valuation: Purchase price equal to 100% of fair market value of the real estate
Investment Size per Client Relationship: $10 million – unlimited
Guaranties: Corporate only, rather than personal
Structure: Triple-net leases, with the tenant paying for taxes, maintenance, and insurance
Location: United States and Canada

OUR TEAM

MARTIN HILLER

Chairman of Advisory Board, CAG
President, National Air Transportation Association

LARRY FLYNN

Member of Advisory Board, CAG
Former President, Gulfstream

JAY M. FERRIERO

President & Chief Executive Officer, CAG

OWNERSHIP

As the first company focused solely on providing highly tailored sale–leaseback capital to the automotive retail industry, CARS has exclusively supported automobile dealers since 1998.

Through custom-tailored real estate finance, CARS assists dealers in growing their organizations, acquiring new locations, upgrading existing facilities, constructing new stores, and facilitating estate planning and partner buyouts. In many situations, CARS has aided dealers by maximizing liquidity and flexibility.

CARS was created based on the collaboration of automobile dealers and experts in real estate and finance. Since inception, the team at CARS has developed and maintained relationships throughout the industry that have provided an in-house level of expertise unparalleled in the marketplace.