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                                                              EXHIBIT 10.7

                                                              Employee's Copy
                                                              Partnership's Copy

                             CAPITAL AUTOMOTIVE L.P.
                              EMPLOYMENT AGREEMENT

To JOHN M. WEAVER:

        This Agreement establishes the terms of your employment with Capital
Automotive L.P., a Delaware limited partnership (the "Partnership"). It replaces
your prior employment agreement with the Partnership. You remain an employee of
Capital Automotive REIT (the "Company"), but your primary responsibility is as
an employee of the Partnership.

EMPLOYMENT AND DUTIES            You and the Partnership agree to your
                                 employment with the Partnership and to your
                                 services as Vice President, General Counsel and
                                 Secretary on the terms contained herein. In
                                 such position, you will report directly to the
                                 Company's Chief Executive Officer (the "CEO")
                                 and to the General Partner of the Partnership.
                                 You agree to perform whatever duties the
                                 Partnership may assign you from time to time,
                                 consistent with your position as a senior
                                 executive. During your employment, you agree to
                                 devote your full business time, attention, and
                                 energies to performing those duties (except as
                                 the Partnership otherwise agrees from time to
                                 time). You agree to faithfully serve the
                                 Partnership, to conform to and comply with the
                                 lawful and good faith directions and
                                 instructions given you by the Partnership, and
                                 to use your best efforts to promote and serve
                                 the interests of the Partnership. You agree to
                                 comply with the non-competition, secrecy, and
                                 other provisions of Exhibit A to this
                                 Agreement.

TERM                             Your employment under this Agreement begins as
                                 of January 1, 2001 (the "Effective Date") and
                                 ends on January 1, 2004, unless it is
                                 terminated sooner under this Agreement.

                                 The period running from the Effective Date to
                                 the date that the Agreement terminates as set
                                 forth in the preceding sentence is the "Term."

                                 Termination or expiration of this Agreement
                                 ends your employment but does not end your
                                 obligation to comply with Exhibit A.

COMPENSATION

        Salary and Bonus         The Partnership (or, in its discretion, the
                                 Company) will pay you an annual salary (the
                                 "Salary") for 2001 at the rate of not less than
                                 $190,000 in accordance with its payroll
                                 practices. Your target bonus for calendar year
                                 2001 will be $133,000. Each calendar year
                                 thereafter while you are employed under this
                                 Agreement, the Partnership or its Compensation
                                 Committee will review your Salary and target
                                 bonus and consider you for increases from the
                                 Partnership.

        Employee Benefits        While you are employed under this Agreement,
                                 the Partnership will provide you with the same
                                 benefits, including medical insurance coverage,
                                 as the Partnership makes generally available
                                 from time to time to the Partnership's
                                 employees, as those benefits are amended or
                                 terminated from time to time, and such other
                                 benefits as are commensurate with your position
                                 as a senior executive of a public company,
                                 including either a company automobile or an
                                 allowance for an automobile. Your participation
                                 in the Partnership's benefit plans will be
                                 subject to the terms of the applicable plan
                                 documents and the Partnership's generally
                                 applied

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                                 policies, and the Partnership in its sole
                                 discretion may from time to time adopt, modify,
                                 Benefits interpret, or discontinue such plans
                                 or policies.

PLACE OF EMPLOYMENT              Your principal place of employment will be at
                                 the Partnership's headquarters in the
                                 Washington metropolitan area (or such other
                                 offices as the Partnership may establish from
                                 time to time and to which it assigns you in its
                                 sole discretion). You understand and agree that
                                 you must travel from time to time for business
                                 reasons.

INDEMNIFICATION                  The Partnership will indemnify you to the
                                 fullest extent authorized by law if you are
                                 made a party to any action, suit, or
                                 proceeding, whether criminal, civil,
                                 administrative, or investigative, because you
                                 are or were a manager, officer, or employee of
                                 the Partnership or serve or served any other
                                 entity as a director, officer, or employee at
                                 the Partnership's request; provided, however,
                                 that you must repay the Partnership for any
                                 indemnification if the final determination of
                                 an arbitrator or a court of competent
                                 jurisdiction declares, after the expiration of
                                 the time within which judicial review (if
                                 permitted) of such determination may be
                                 perfected, that indemnification by the
                                 Partnership is not permissible under
                                 applicable law.

EXPENSES                         The Partnership will reimburse you for
                                 reasonable and necessary travel and other
                                 business-related expenses you incur for the
                                 Partnership in performing your duties under
                                 this Agreement. You must itemize and
                                 substantiate all requests for reimbursements.
                                 You must submit requests for reimbursement in
                                 accordance with the policies and practices of
                                 the Partnership and within 60 days after
                                 incurring the expense.

NO OTHER EMPLOYMENT              For so long as you are employed by the
                                 Partnership, you agree that you will not,
                                 directly or indirectly, provide services to any
                                 person or organization for which you receive
                                 compensation or otherwise engage in activities
                                 that would conflict or interfere significantly
                                 with the faithful performance of your duties to
                                 the Partnership without the Partnership's prior
                                 written consent. (This prohibition excludes any
                                 work performed at the Partnership's direction
                                 including any work for the Company.) You may
                                 manage your personal investments, as long as
                                 the management takes only minimal amounts of
                                 time and is consistent with the provisions of
                                 the No Competition Section in Exhibit A and is
                                 otherwise consistent with the policies and
                                 practices of the Partnership.

                                 You represent to the Partnership that you are
                                 not subject to any agreement, commitment, or
                                 policy of any third party that would prevent
                                 you from entering into or performing your
                                 duties under this Agreement, and you agree that
                                 you will not enter into any agreement or
                                 commitment or agree to any policy that would
                                 prevent or hinder your performance of duties
                                 and obligations under this Agreement, including
                                 Exhibit A.

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NO CONFLICTS OF INTEREST         You confirm that you have fully disclosed to
                                 the Partnership and the Company, to the best of
                                 your knowledge, all circumstances under which
                                 you, your spouse, and your relatives (including
                                 their spouses, children, and relatives) have or
                                 may have a conflict of interest with the
                                 Company or the Partnership. You further agree
                                 to fully disclose to the Partnership any such
                                 circumstances that might arise during the Term.
                                 You agree to fully comply with the
                                 Partnership's policy and practices relating to
                                 conflicts of interest.

NO PAYMENTS TO GOVERNMENTAL      You will neither pay nor permit payment of any
OFFICIALS                        remuneration to or on behalf of any
                                 governmental official other than payments
                                 required or permitted by applicable law.

TERMINATION                      Subject to the provisions of this section, the
                                 Partnership may terminate your employment, or
                                 you may resign, except that, if you voluntarily
                                 resign, you must provide the Partnership with
                                 90 days' prior written notice (unless the
                                 Partnership has previously waived such notice
                                 in writing or authorized a shorter notice
                                 period).

        For Cause                The Partnership may terminate your employment
                                 for "Cause" if you:

                                         (i) engage in dishonesty that relates
                                         materially to the performance of
                                         services or any obligations under this
                                         Agreement, including Exhibit A;

                                         (ii) are convicted of, or plead guilty
                                         or no contest to, any misdemeanor
                                         (other than for minor infractions)
                                         involving fraud, breach of trust,
                                         misappropriation, or other similar
                                         activity or any felony;

                                         (iii) perform your duties under this
                                         Agreement in a grossly negligent
                                         manner; or

                                         (iv) willfully breach this Agreement,
                                         including Exhibit A, in a manner
                                         materially injurious to the
                                         Partnership. An act or omission is only
                                         "willful" if you acted in bad faith or
                                         without any reasonable belief that the
                                         action or omission was in the interests
                                         of the Partnership and consistent with
                                         your duties and obligations under this
                                         Agreement.

                                 Your termination for Cause under (i) and (ii)
                                 will be effective immediately upon the
                                 Partnership's mailing or transmission of such
                                 notice. Before terminating your employment for
                                 Cause under (iii) or (iv), the Partnership will
                                 specify in writing to you the nature of the
                                 act, omission, refusal, or failure that it
                                 deems to constitute Cause. The Partnership will
                                 give you the opportunity to correct the
                                 situation (and thus avoid termination for Cause
                                 under (iii) or (iv)). You must complete the
                                 correction within a reasonable period of time
                                 after the written notice to you, and the
                                 Partnership agrees to provide you no less than
                                 15 days for such correction.

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        Without Cause            Subject to the provisions below under Payments
                                 on Termination, the Partnership may terminate
                                 your employment under this Agreement before
                                 the end of the Term without Cause.

        Good Reason              You may resign for Good Reason with 45 days'
                                 advance written notice as provided below. "Good
                                 Reason" means the occurrence, without your
                                 written consent, of any of the following
                                 circumstances:

                                       the Partnership's failure to perform or
                                       observe any of the material terms or
                                       provisions of this Agreement,

                                       the assignment to you of any duties
                                       inconsistent with, or any substantial
                                       diminution in, your employment status or
                                       responsibilities as in effect on the date
                                       of this Agreement,

                                       the Partnership's relocation of its
                                       headquarters to a location that would
                                       increase your commuting distance by more
                                       than 50 miles, based on your residence
                                       when this Agreement is executed, or

                                       a Change of Control, consisting of any
                                       one or more of the following events:

                                                a person, entity, or group
                                                (other than the Company, the
                                                Partnership, any subsidiary of
                                                either, any Company Group
                                                benefit plan, or any underwriter
                                                temporarily holding securities
                                                for an offering of such
                                                securities) acquires ownership
                                                of more than 40% of the
                                                undiluted total voting power of
                                                the Company's then-outstanding
                                                securities eligible to vote to
                                                elect members of the Board
                                                ("Company Voting Securities");

                                                consummation of a merger or
                                                consolidation of the Company
                                                into any other entity--unless
                                                the holders of the Company
                                                Voting Securities outstanding
                                                immediately before such
                                                consummation, together with any
                                                trustee or other fiduciary
                                                holding securities under a
                                                Company Group benefit plan, hold
                                                securities that represent
                                                immediately after such merger or
                                                consolidation more than 60% of
                                                the combined voting power of the
                                                then outstanding voting
                                                securities of either the Company
                                                or the other surviving entity or
                                                its parent; or

                                                the stockholders of the Company
                                                approve (i) a plan of complete
                                                liquidation or dissolution of
                                                the Company or (ii) an agreement
                                                for the Company's sale or
                                                disposition of all or
                                                substantially all the Company's
                                                assets, and such liquidation,
                                                dissolution, sale, or
                                                disposition is consummated.

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                                 Even if other tests are met, a Change of
                                 Control has not occurred under any circumstance
                                 in which the Company files for bankruptcy
                                 protection or is reorganized following a
                                 bankruptcy filing.

                                 You must give notice to the Partnership of your
                                 intention to resign for Good Reason within 30
                                 days after the occurrence of the condition or
                                 event (within 24 months if the condition or
                                 event is a Change of Control) that you assert
                                 entitles you to resign for Good Reason. In that
                                 notice, you must specify the condition or event
                                 that you consider provides you with Good Reason
                                 and (except if the condition or event is a
                                 Change of Control) must give the Partnership an
                                 opportunity to cure the condition or event
                                 within 30 days after your notice. If the
                                 Partnership fails to cure the condition, your
                                 resignation will be effective on the 45th day
                                 after your notice (unless the Board has
                                 previously waived such notice period in writing
                                 or agreed to a shorter notice period).

                                 You will not be treated as resigning for Good
                                 Reason if the Partnership had Cause to
                                 terminate your employment as of the date of
                                 your notice of resignation.

        Disability               If you become "disabled" (as defined below),
                                 the Partnership may terminate your employment.
                                 If the Partnership terminates your employment
                                 because you become disabled or employment
                                 terminates because of your death, any unvested
                                 restricted shares and any phantom shares
                                 previously granted to you shall become Pro Rata
                                 Vested (as defined below). You are "disabled"
                                 if you are unable, despite whatever reasonable
                                 accommodations the law requires, to render
                                 services to the Partnership for more than 90
                                 consecutive days because of physical or mental
                                 disability, incapacity, or illness. You are
                                 also disabled if you are deemed to be disabled
                                 within the meaning of the Disability
                                 Partnership's long-term disability policy as
                                 then in effect.

        Death                    If you die during the Term, the Term will end
                                 as of the date of your death.

        Payments on              If the Partnership terminates your employment
        Termination              for or without Cause or because of disability
                                 or death or you resign, the Partnership will
                                 pay you any unpaid portion of your Salary
                                 pro-rated through the date of actual
                                 termination and any annual bonuses already
                                 determined by such date but not yet paid,
                                 reimburse any substantiated but unreimbursed
                                 business expenses, pay any accrued and unused
                                 vacation time (to the extent consistent with
                                 the Partnership's policies), and provide such
                                 other benefits as applicable laws or the terms
                                 of the benefits require. Except to the extent
                                 the law requires otherwise or as provided in
                                 the Vesting and Other Benefits section below or
                                 in your option agreement, restricted share
                                 agreement or phantom share agreement(s),
                                 neither you nor your beneficiary or estate will
                                 have any rights or claims under this Agreement
                                 or otherwise to receive severance or any other
                                 compensation, or to participate in any other
                                 plan, arrangement, or benefit, after such
                                 termination.

        Vesting and Other        In addition to the foregoing payments, if a
        Benefits on Termination  Change of Control occurs, the Partnership
        or Change of Control     terminates your employment without Cause, or
                                 you resign for Good Reason before the end of
                                 the Term:

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                                        I.      all of the stock options and
                                                restricted shares held by you
                                                before your termination of
                                                employment or the Change of
                                                Control (whichever is
                                                applicable) will become fully
                                                vested; and

                                        II.     all of the phantom shares
                                                credited to you before your
                                                termination of employment or the
                                                Change of Control (whichever is
                                                applicable) shall be deemed to
                                                have been credited for three (3)
                                                years for purposes of Section
                                                6.3 of the Capital Automotive
                                                Group Phantom Share Purchase
                                                Program; and

                                        III.    (a)  in the case of termination
                                                     without Cause or
                                                     resignation for Good
                                                     Reason, and provided that
                                                     you have not previously
                                                     received any benefit under
                                                     the following paragraph
                                                     III(b), the Partnership
                                                     will pay you an amount
                                                     equal to your Salary, as
                                                     then in effect, for 24
                                                     months in a single lump sum
                                                     as soon as practicable but
                                                     in any event no more than
                                                     90 days after termination;
                                                     or

                                                (b)  in the case of a Change of
                                                     Control, the Partnership
                                                     will pay you an amount
                                                     equal to 3 times the sum of
                                                     your annual Salary, as then
                                                     in effect, plus your most
                                                     recently established target
                                                     bonus, in a single lump sum
                                                     as soon as practicable but
                                                     in any event no more than
                                                     10 days after the Change of
                                                     Control; and

                                        IV.     the Partnership will pay the
                                                premium cost for you to receive
                                                any group health coverage the
                                                Partnership must offer you under
                                                Section 4980B of the Internal
                                                Revenue Code of 1986 (the
                                                "Code") for the period of such
                                                coverage; and

                                        V.      the Partnership will pay you,
                                                at the time the Partnership
                                                would otherwise pay your annual
                                                bonus, your pro rata share of
                                                the bonus for the year of your
                                                termination (or Change of
                                                Control), where the pro rata
                                                factor is based on days elapsed
                                                in such year until the date of
                                                termination (or Change of
                                                Control) over 365, less any
                                                portion of the bonus for such
                                                year already paid.

                                 You are not required to mitigate amounts
                                 payable under the Vesting and Other Benefits
                                 paragraphs by seeking other employment or
                                 otherwise; however, of the foregoing benefits,
                                 an amount equal to two hundred percent of your
                                 annual Salary is being provided as
                                 consideration for your compliance with the
                                 requirements of Exhibit A. Consequently, you
                                 agree to return such amount if you fail to
                                 comply with Exhibit A.

                                 Expiration of this Agreement, whether because
                                 of notice of non-renewal or otherwise, does not
                                 constitute termination without Cause nor is it
                                 grounds for resignation with Good Reason.

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                                 In addition to the foregoing, if this
                                 Employment Agreement is not renewed by the
                                 Partnership on or before January 1, 2004, and
                                 the Partnership at any time thereafter
                                 terminates your employment without Cause or you
                                 resign for Good Reason, (i) any unvested
                                 restricted shares granted prior to or during
                                 the Term and held by you before your
                                 termination of employment will become vested to
                                 the extent of the ratio of the number of days
                                 that you have been employed by the Partnership
                                 or the Company since the date they were granted
                                 and the total number of days of employment
                                 otherwise required for them to fully vest
                                 (determined separately for each grant), and
                                 (ii) all of the phantom shares granted prior to
                                 or during the Term and credited to you before
                                 your termination of employment will be deemed
                                 to have been credited for three (3) years for
                                 the purposes of Section 6.3 of the Capital
                                 Automotive Group Phantom Share Purchase Program
                                 to the extent of the ratio of the number of
                                 days that you have been employed by the
                                 Partnership or the Company since the date they
                                 were granted and the three (3) years of
                                 employment otherwise required for them to fully
                                 vest for purposes of that section (determined
                                 separately for each grant). The pro rata
                                 vesting and crediting referenced in (i) and
                                 (ii) in the foregoing sentence are referred to
                                 herein as "Pro Rata Vested."

     Internal Revenue Code       If you become entitled to any benefits under
     Section 280G                this Agreement (the "Agreement Benefits"), and
                                 any of those benefits will be subject to the
                                 tax (the "Excise Tax") imposed by Section 4999
                                 of the Code (or any similar tax that may
                                 hereafter be imposed), the Partnership will pay
                                 to you an additional amount (the "Gross-up
                                 Payment") such that the net amount retained by
                                 you, after deduction of any Excise Tax on the
                                 total benefits received by you and any federal,
                                 state and local income tax and Excise Tax on
                                 the Gross-up Payment provided for by this
                                 section, but before deduction for any federal,
                                 state or local income tax on the Agreement
                                 Benefits, will be equal to the total benefits
                                 that you would have received had the Excise Tax
                                 not been applicable and the Gross-up Payment
                                 not paid. Notwithstanding the foregoing, you
                                 and the Partnership agree to in good faith take
                                 any reasonable actions, at no cost to either
                                 party, to minimize or avoid application of the
                                 Excise Tax.

ASSIGNMENT                       The Partnership may assign or otherwise
                                 transfer this Agreement and any and all of its
                                 rights, duties, obligations, or interests under
                                 it to:

                                         the Company or any of the affiliates or
                                         subsidiaries of the Company or

                                         the Partnership or to any business
                                         entity that at any time by merger,
                                         consolidation, or otherwise acquires
                                         all or substantially all of the
                                         Company's stock or assets or the
                                         partnership units or assets of the
                                         Partnership or to which the Company or
                                         the Partnership transfers all or
                                         substantially all of its assets.

                                 Upon such assignment or transfer, any such
                                 business entity will be deemed to be
                                 substituted for the Partnership for all
                                 purposes. Assignment or transfer does not
                                 constitute termination without Cause nor is it
                                 grounds for resignation with Good Reason absent
                                 the occurrence of a Change of Control. This
                                 Agreement binds the Partnership, its successors
                                 or assigns, and your heirs and the personal
                                 representatives of your estate. Without

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                                 the Partnership's prior written consent, you
                                 may not assign or delegate this Agreement or
                                 any or all rights, duties, obligations, or
                                 interests under it.

SEVERABILITY                     If the final determination of an arbitrator or
                                 a court of competent jurisdiction declares,
                                 after the expiration of the time within which
                                 judicial review (if permitted) of such
                                 determination may be perfected, that any term
                                 or provision of this Agreement, including any
                                 provision of Exhibit A, is invalid or
                                 unenforceable, the remaining terms and
                                 provisions will be unimpaired, and the invalid
                                 or unenforceable term or provision will be
                                 deemed replaced by a term or provision that is
                                 valid and enforceable and that comes closest to
                                 expressing the intention of the invalid or
                                 unenforceable term or provision.

AMENDMENT; WAIVER                Neither you nor the Partnership may modify,
                                 amend, or waive the terms of this Agreement
                                 other than by a written instrument signed by
                                 you and a duly authorized representative of the
                                 General Partner of the Partnership. Either
                                 party's waiver of the other party's compliance
                                 with any provision of this Agreement is not a
                                 waiver of any other provision of this Agreement
                                 or of any subsequent breach by such party of a
                                 provision of this Agreement.

WITHHOLDING                      The Partnership will reduce its compensatory
                                 payments to you for withholding and FICA taxes,
                                 and any other withholdings and contributions
                                 required by law.

THIRD PARTY BENEFICIARY          You understand and agree that the Company is a
                                 third party beneficiary of this Agreement.

GOVERNING LAW                    The laws of the Commonwealth of Virginia (other
                                 than its conflict of laws provisions) govern
                                 this Agreement.

NOTICES                          Notices must be given in writing by personal
                                 delivery, by certified mail, return receipt
                                 requested, by telecopy, or by overnight
                                 delivery. You should send or deliver your
                                 notices to the Partnership's headquarters. The
                                 Partnership will send or deliver any notice
                                 given to you at your address as reflected on
                                 the Partnership's personnel records. You and
                                 the Partnership may change the address for
                                 notice by like notice to the others. You and
                                 the Partnership agree that notice is received
                                 on the date it is personally delivered, the
                                 date it is received by certified mail, the date
                                 of guaranteed delivery by the overnight
                                 service, or the date the fax machine confirms
                                 receipt.

PAYMENTS AND BENEFITS UPON       If, at the time of your death, the Partnership
DEATH                            owes you any payments or other benefits as a
                                 result of termination of your employment,
                                 resignation, a Change of Control, or your
                                 Disability, all of those payments and benefits
                                 shall become due and payable to your estate to
                                 the same extent, at the same times, and subject
                                 to the same terms as they would have been due
                                 and payable to you but for your death. Further,
                                 any payments or other benefits that become due
                                 on account of your death shall be paid to your
                                 estate.

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LEGAL FEES                       If a claim is asserted for breach of any
                                 provision of this Agreement, you will be
                                 entitled to recover your reasonable
                                 attorney's fees and expenses if you prevail.

ARBITRATION                      Any disputes between the Partnership and you in
                                 any way concerning your employment, the
                                 termination of your employment, this Agreement
                                 or its enforcement shall be submitted at the
                                 initiative of either party to binding
                                 arbitration in the Washington Metropolitan area
                                 before a single arbitrator pursuant to the
                                 Rules for Resolution of Employment Disputes of
                                 the American Arbitration Association, or its
                                 successor, then in effect. The decision of the
                                 arbitrator shall be rendered in writing, shall
                                 be final, and may be entered as a judgment in
                                 any court in the Commonwealth of Virginia. The
                                 Partnership and you each irrevocably consents
                                 to the jurisdiction of the federal and state
                                 courts located in Virginia for this purpose.
                                 Each party shall be responsible for its or his
                                 own costs incurred in such arbitration and in
                                 enforcing any arbitration award, including
                                 attorney's fees, provided, however, that you
                                 will be entitled to recover your reasonable
                                 attorney's fees and expenses if you prevail.
                                 Notwithstanding the foregoing, the Partnership,
                                 in its sole discretion, may bring an action in
                                 any court of competent jurisdiction to seek
                                 injunctive relief and such other relief as it
                                 shall elect to enforce your obligations in
                                 Exhibit A.

SUPERSEDING EFFECT               This Agreement supersedes any prior oral or
                                 written employment or severance agreements
                                 between you and the Company or the Partnership.
                                 This Agreement supersedes all prior or
                                 contemporaneous negotiations, commitments,
                                 agreements, and writings with respect to the
                                 subject matter of this Agreement. All such
                                 other negotiations, commitments, agreements,
                                 and writings will have no further force or
                                 effect; and the parties to any such other
                                 negotiation, commitment, agreement, or writing
                                 will have no further rights or obligations
                                 thereunder.

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If you accept the terms of this Agreement, please sign in the space indicated
below. We encourage you to consult with any advisors of your choosing.

                                          CAPITAL AUTOMOTIVE L.P.

                                          General Partner:

                                          CAPITAL AUTOMOTIVE REIT, a Maryland
                                               real estate investment trust

                                          By: /s/ THOMAS D. ECKERT
                                              ---------------------------------

                                          Its:  President & CEO
                                              ---------------------------------

                                          SEEN & AGREED TO:

                                          CAPITAL AUTOMOTIVE REIT

                                          By:  /s/ THOMAS D. ECKERT
                                              ---------------------------------

                                          Its:  President & CEO
                                              ---------------------------------

I accept and agree to the terms of employment set forth in this Agreement:

/s/ JOHN M. WEAVER
-------------------------------
John M. Weaver

Dated:  February 28, 2001
       --------------------------

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                                    EXHIBIT A

NO COMPETITION                   In consideration of your employment by the
                                 Partnership and salary and benefits under this
                                 Agreement, during the term of your employment,
                                 and except as set forth below, until the date
                                 two years after your employment with the
                                 Company, the Partnership, or their successors,
                                 assigns, affiliates, or subsidiaries
                                 (collectively, the "Company Group") ends for
                                 any reason (the "Restricted Period"), you
                                 agree as follows:

                                 The Company is a real estate investment trust
                                 formed to acquire real properties owned by
                                 automobile dealerships and other
                                 automotive-related businesses and lease the
                                 properties to such businesses. You will not,
                                 directly or indirectly, promote, be employed
                                 by, lend money to, invest in, or engage in any
                                 Competing Business within the Market Area. That
                                 prohibition includes, but is not limited to,
                                 acting, either singly or jointly or as agent
                                 for, or as an employee of or consultant to, any
                                 one or more persons, firms, entities, or
                                 corporations directly or indirectly (as a
                                 director, independent contractor,
                                 representative, consultant, member, or
                                 otherwise) that constitutes such a Competing
                                 Business. You may own up to 3% of the
                                 outstanding capital stock of any corporation
                                 that is actively publicly traded without
                                 violating this No Competition covenant. This
                                 covenant does not preclude you from being
                                 employed by any automobile dealership or
                                 dealership group or other automotive-related
                                 business that is a lessee or prospective lessee
                                 of properties the Company or the Partnership
                                 holds or is actively considering acquiring.

                                 If, during the Restricted Period, you are
                                 offered and want to accept employment with a
                                 business that engages in activities similar to
                                 the Company's or the Partnership's, you will
                                 inform the Partnership in writing of the
                                 identity of the business, your proposed duties
                                 with that business, and the proposed starting
                                 date of that employment. You will also inform
                                 that business of the terms of this Exhibit A.
                                 The Partnership will analyze the proposed
                                 employment and make a good faith determination
                                 as to whether it would threaten the
                                 Partnership's legitimate competitive interests.
                                 If the Partnership determines that the proposed
                                 employment would not pose an unacceptable
                                 threat to its interests, the Partnership will
                                 notify you that it does not object to the
                                 employment.

                                 You acknowledge that, during the portion of the
                                 Restricted Period that follows your employment,
                                 you may engage in any business activity or
                                 gainful employment of any type and in any place
                                 except as described above. You acknowledge that
                                 you will be reasonably able to earn a
                                 livelihood without violating the terms of this
                                 Agreement.

                                 You understand and agree that the rights and
                                 obligations set forth in this No Competition
                                 Section will continue for two years from the
                                 date of termination of this Agreement and your
                                 employment with the Partnership or the Company
                                 Group.

                                                                              11
<PAGE>   12

DEFINITIONS

               Competing         Competing Business means any service or
               Business          financial product of any person or organization
                                 other than the Company Group, in existence or
                                 then under development, that competes or could
                                 potentially compete, directly or indirectly,
                                 with any service or financial product of the
                                 Company Group upon which or with which you have
                                 worked for the Partnership or the Company Group
                                 or about which you acquire knowledge while
                                 working for the Partnership or the Company
                                 Group. Competing Business includes any
                                 enterprise engaged in the formation or
                                 operation of real estate investment trusts or
                                 other entities that invest primarily in
                                 automobile dealership or automotive-related
                                 properties or provide real estate financing to
                                 automobile dealerships or automotive-related
                                 businesses. Competing Business excludes real
                                 estate investment trusts and similar entities
                                 that do not engage in activities related to
                                 automotive dealerships or automotive-related
                                 businesses.

               Market Area       The Market Area consists of the United States.

NO INTERFERENCE;                 During the Restricted Period, you agree that
NO SOLICITATION                  you will not, directly or indirectly, whether
                                 for yourself or for any other individual or
                                 entity (other than the Partnership or its
                                 affiliates or subsidiaries), intentionally
                                 solicit or endeavor to entice away from the
                                 Company Group:

                                         any person whom the Company Group
                                         employs (other than as your personal
                                         secretary) or otherwise engages to
                                         perform services as a consultant or
                                         sales representatives; or

                                         any person or entity who is, or was,
                                         within the Restricted Period, a
                                         contractor or subcontractor of the
                                         Company Group known to you or a lessee
                                         or prospective lessee of properties the
                                         Company Group holds or is actively
                                         considering acquiring.
SECRECY

        Preserving Company       Your employment with the Partnership under and,
        Confidences              if applicable, before this Agreement has given
                                 and will give you Confidential Information (as
                                 defined below). You acknowledge and agree that
                                 using, disclosing, or publishing any
                                 Confidential Information in an unauthorized or
                                 improper manner could cause the Partnership or
                                 Company Group substantial loss and damages that
                                 could not be readily calculated and for which
                                 no remedy at law would be adequate.
                                 Accordingly, you agree with the Partnership
                                 that you will not at any time, except in
                                 performing your employment duties to the
                                 Partnership or the Company Group under this
                                 Agreement (or with the Partnership's prior
                                 written consent), directly or indirectly, use,
                                 disclose, or publish, or permit others not so
                                 authorized to use, disclose, or publish any
                                 Confidential Information that you may learn or
                                 become aware of, or may have learned or become
                                 aware of, because of your prior or continuing
                                 employment, ownership, or association with the
                                 Partnership or the Company Group or any of
                                 their predecessors, or use any such information
                                 in a manner detrimental to the interests of the
                                 Partnership or the Company Group.

                                                                              12
<PAGE>   13

        Preserving Others'       You agree not to use in working for the Company
        Confidences              Group and not to disclose to the Company Group
                                 any trade secrets or other information you do
                                 not have the right to use or disclose and that
                                 the Company Group is not free to use without
                                 liability of any kind. You agree to promptly
                                 inform the Partnership in writing of any
                                 patents, copyrights, trademarks, or other
                                 proprietary rights known to you that the
                                 Partnership or the Company Group might violate
                                 because of information you provide.

        Confidential Information "Confidential Information" includes, without
                                 limitation, information the Partnership or the
                                 Company Group has not previously disclosed to
                                 the public or to the trade with respect to the
                                 Partnership's or the Company Group's present or
                                 future business, operations, services,
                                 products, research, inventions, discoveries,
                                 drawings, designs, plans, processes, models,
                                 technical information, facilities, methods,
                                 trade secrets, copyrights, software, source
                                 code, systems, patents, procedures, manuals,
                                 specifications, any other intellectual
                                 property, confidential reports, price lists,
                                 pricing formulas, customer lists, financial
                                 information (including the revenues, costs, or
                                 profits associated with any of the
                                 Partnership's or the Company Group's products
                                 or services), business plans, lease structure,
                                 projections, prospects, opportunities or
                                 strategies, acquisitions or mergers,
                                 advertising or promotions, personnel matters,
                                 legal matters, any other confidential and
                                 proprietary information, and any other
                                 information not generally known outside the
                                 Partnership or the Company Group that may be of
                                 value to the Partnership or the Company Group
                                 but excludes any information already properly
                                 in the public domain. "Confidential
                                 Information" also includes confidential and
                                 proprietary information and trade secrets that
                                 third parties entrust to the Partnership or the
                                 Company Group in confidence.

                                 You understand and agree that the rights and
                                 obligations set forth in this Secrecy Section
                                 will continue indefinitely and will survive
                                 termination of this Agreement and your
                                 employment with the Partnership or the Company
                                 Group.

EXCLUSIVE PROPERTY               You confirm that all Confidential
                                 Information is and must remain the exclusive
                                 property of the Partnership or the relevant
                                 member of the Company Group. All business
                                 records, business papers, and business
                                 documents you keep or make in the course of
                                 your employment by the Partnership relating to
                                 the Partnership or any member of the Company
                                 Group must be and remain the property of the
                                 Partnership or the relevant member of the
                                 Company Group. Upon the termination of this
                                 Agreement with the Partnership or upon the
                                 Partnership's request at any time, you must
                                 promptly deliver to the Partnership or to the
                                 relevant member of the Company Group any
                                 Confidential Information or other materials
                                 (written or otherwise) not available to the
                                 public or made available to the public in a
                                 manner you know or reasonably should recognize
                                 the Partnership did not authorize, and any
                                 copies, excerpts, summaries, compilations,
                                 records and documents you made or that came
                                 into your possession during your employment.
                                 You agree that you will not, without the
                                 Partnership's consent, retain copies, excerpts,
                                 summaries or compilations of the foregoing
                                 information and materials. You understand and
                                 agree that the rights and obligations set forth
                                 in this Exclusive Property Section will
                                 continue indefinitely and will survive
                                 termination of this Agreement and your
                                 employment with the Company Group.

                                                                              13
<PAGE>   14

MAXIMUM LIMITS                   If any of the provisions of Exhibit A are ever
                                 deemed to exceed the time, geographic area, or
                                 activity limitations the law permits, you and
                                 the Partnership agree to reduce the limitations
                                 to the maximum permissible limitation, and you
                                 and the Partnership authorize a court or
                                 arbitrator having jurisdiction to reform the
                                 provisions to the maximum time, geographic
                                 area, and activity limitations the law permits.

INJUNCTIVE RELIEF                Without limiting the remedies available to the
                                 Partnership, you acknowledge:

                                         that a breach of any of the covenants
                                         in this Exhibit A may result in
                                         material irreparable injury to the
                                         Partnership and Company Group for which
                                         there is no adequate remedy at law; and

                                         that it will not be possible to measure
                                         damages for such injuries precisely.

                                 You agree that, if there is a breach or
                                 threatened breach, the Partnership or any
                                 member of the Company Group will be entitled to
                                 obtain a temporary restraining order and/or a
                                 preliminary or permanent injunction restraining
                                 you from engaging in activities prohibited by
                                 any provisions of this Exhibit A or such other
                                 relief as may be required to specifically
                                 enforce any of the covenants in this Exhibit A.

                                                                              14<PAGE>   1

                                                                    EXHIBIT 10.8

                                                         [ ]  Employee's Copy
                                                         [ ]  Partnership's Copy

                             CAPITAL AUTOMOTIVE L.P.
                           CHANGE OF CONTROL AGREEMENT

TO JAY M. FERRIERO:

            This Agreement provides you with severance if, after a Change of
Control (as defined below) your employment with Capital Automotive L.P., a
Maryland limited Partnership (the "Partnership"), and Capital Automotive REIT, a
Maryland real estate investment trust (the "Company") or its successors is
terminated because of elimination of your position.

PAYMENTS ON             If your employment is terminated after a Change of
TERMINATION             Control because of the elimination of your position, the
                        Partnership (or the Company) will pay you one year of
                        salary at your then base salary rate, with the payments
                        made on the same schedule as though you had remained
                        employed. Except to the extent the law requires
                        otherwise or as provided in the preceding sentence,
                        neither you nor your beneficiary or estate will have any
                        rights or claims under this Agreement or otherwise to
                        receive severance or any other compensation, or to
                        participate in any other plan, arrangement or benefit
                        after such termination.

CHANGE OF               For purposes of this agreement, Change of Control would
CONTROL                 consist of any one or more of the following events:

                              a person, entity or group (other than the Company,
                              the Partnership, any subsidiary of either, any
                              Company Group benefit plan, or any underwriter
                              temporarily holding securities for an offering of
                              such securities) acquires ownership of more than
                              40% of the undiluted total voting power of the
                              Company's ten-outstanding securities eligible to
                              vote to elect members of the Board ("Company
                              Voting Securities");

                              consummation of a merger or consolidation of the
                              Company into any other entity - unless the holders
                              of the Company Voting Securities outstanding
                              immediately before such consummation, together
                              with any trustee or other fiduciary holding
                              securities under a Company Group benefit plan,
                              hold securities that represent immediately after
                              such merger or consolidation more than 60% of the
                              combined voting power of the then-outstanding
                              voting securities or either the Company or the
                              other surviving entity or its parent; or

                              the stockholders of the Company approve (i) a plan
                              of complete liquidation or dissolution of the
                              Company or (ii) an agreement for the Company's
                              sale or disposition of all or substantially all
                              the

<PAGE>   2

                              Company's assets, and such liquidation,
                              dissolution, sale or disposition is consummated.

                              Even if other tests are met, a Change of Control
                              has not occurred under any circumstance in which
                              the Company files for bankruptcy protection or is
                              reorganized following a bankruptcy filing.

                      You will not be treated as being terminated because of the
                      elimination of your position if the Partnership or the
                      Company had "cause" to terminate your employment when it
                      eliminated your position.

TERM                  This Agreement covers any Change of Control between
                      February 6, 1999 and October 19, 2001.

AT WILL               You agree that nothing in this Agreement restricts the
EMPLOYMENT            right of the Partnership or any of its affiliates to
                      terminate your employment at any time, with or without
                      cause.

WITHHOLDING           The Partnership or the Company will reduce its
                      compensatory payments to you for withholding and FICA
                      taxes and any other withholdings and contributions
                      required by law.

GOVERNING LAW         The laws of the Commonwealth of Virginia (other than its
                      conflict of laws provisions) govern this Agreement.

If you accept the terms of this Agreement, please sign in the space indicated
below. We encourage you to consult with any advisors of your choosing.

                                CAPITAL AUTOMOTIVE L.P.

                                General Partner:

                                CAPITAL AUTOMOTIVE REIT, a Maryland real estate
                        investment trust

                                By: /s/ THOMAS D. ECKERT
                                   -------------------------------------
                                Its: President & CEO
                                    ------------------------------------

I accept and agree to the terms
of this Agreement:
/s/ JAY M. FERRIERO
----------------------------
      Jay M. Ferriero

Dated: November 22, 1999
      ----------------------

                                                                     Page 2 of 2

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