RICHMOND, Va.--(BUSINESS WIRE)--Medalist Diversified REIT, Inc. (NASDAQ: MDRR) (the “Company” or “Medalist”), is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S.
On May 14, 2021, Medalist Diversified Holdings, L.P., the operating partnership of Medalist Diversified REIT, Inc. (the “Company”), acquired a retail center totaling approximately 178,626 square feet of gross leasable space in Lancaster, South Carolina, commonly referred to as the Lancer Center property (“Lancer Center”), from an unaffiliated seller for a purchase price of $10,100,000, exclusive of closing costs and a $200,000 credit to the Company for major repairs. The Company’s equity investment in the acquisition of approximately $3,750,000 was funded using a portion of the net proceeds from the Company’s common stock offering that Medalist closed with Kingswood Capital on April 13, 2021. Management expects to use the remaining proceeds from the common stock offering for additional acquisitions during 2021. The balance of the purchase price for the Lancer Center was funded by a commercial loan.
Lancer Center anchor tenants include:
- Big Lots
- Harbor Freight
- KJ’s Grocery
- Babcock Furniture
Bill Elliott, Vice Chairman and President of the Company, stated, “Lancer Center has a diverse workforce tenancy, consistent with our strategy, that we believe will immediately generate positive and sustainable cash flow. One of Medalist’s goals is to purchase similar cash flowing properties while we work to exit our hotel investments. Purchasing robust cash flowing properties like Lancer Center will help continue to build value for our shareholders.”
Thomas E. Messier, Chairman and Chief Executive Officer of the Company, stated, “The recent successful common stock offering and the acquisition of the Lancer Center are key milestones in the Company’s 2021 strategy to emerge from COVID-19, reposition its investments and continue to grow through capital raising and property acquisitions.”
About Medalist Diversified REIT
Medalist Diversified REIT Inc. is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing value-add commercial real estate in the Mid-Atlantic and Southeast regions. The Company’s strategy is to focus on value-add and opportunistic commercial real estate which is expected to provide an attractive balance of risk and returns. Medalist utilizes a rigorous, consistent and replicable process for sourcing and conducting due diligence of acquisitions. The Company seeks to maximize operating performance of current properties by utilizing a hands-on approach to property management while monitoring the middle market real estate markets in the southeast for acquisition opportunities and disposal of properties as considered appropriate. For more information on Medalist, please visit the Company website at https://www.medalistreit.com.
Forward Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward looking statements are statements that are not historical, including statements regarding management’s intentions, beliefs, expectations, representations, plans or predictions of the future, and are typically identified by such words as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “will,” “should” and “could.” Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. Investors should not place undue reliance upon forward-looking statements. For further discussion of the factors that could affect outcomes, please refer to the “Risk Factors” section of the prospectus dated April 8, 2021, and in the Company’s subsequent annual and periodic reports and other documents filed with the SEC, copies of which are available on the SEC’s website, www.sec.gov.