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 November 1, 2021, Medalist Diversified Holdings, L.P., the Company’s operating partnership, acquired a mixed-use Industrial/Flex portfolio consisting of two buildings totaling 64,109 square feet of gross leasable space in Virginia Beach, Virginia, commonly referred to as the Parkway Property. The purchase price for the Parkway Property was $7.3 million, exclusive of closing costs. The Company used approximately $2.1 million of cash, which is a portion of the net proceeds from the Company’s April 13, 2021 common stock offering. In addition, an unaffiliated non-controlling owner provided approximately $460,000 in cash. The balance of the purchase price for the Parkway Property was funded by a mortgage loan.
Bill Elliott, Vice Chairman and President of the Company, stated, "The Parkway Property has a diverse workforce tenancy, consistent with our strategy, that we believe will generate positive cash flow immediately. One of Medalist’s goals is to grow our portfolio with similarly cash flowing properties. Purchasing robust cash flowing properties like the Parkway Property strengthens our ability to continue to build value for our shareholders."
Thomas E. Messier, Chairman and Chief Executive Officer of the Company, stated, “Our successful common stock offering in April 2021 funded the acquisition of the Lancer Center property in May 2021, the Greenbrier Business Center in August 2021 and now the Parkway Property. We expect to use the remaining funds from the April 2021 common stock offering for additional acquisitions during early 2022. The acquisition of the Parkway Property and the sale of the Hampton Inn property in August 2021 demonstrate the Company’s success in continuing its growth while positioning its investment property portfolio into positive cash flowing properties.”
About Medalist Diversified REIT
Medalist Diversified REIT Inc. 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. The Company’s strategy is to focus on 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. 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.
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