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Medalist Diversified REIT Announces the Purchase of Greenbrier Business Center
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
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Rhea-AI Summary
Medalist Diversified REIT, Inc. (NASDAQ: MDRR) announced the acquisition of the Greenbrier Business Center in Chesapeake, Virginia, for $7.25 million. This flex industrial center spans approximately 89,290 square feet and is anticipated to generate immediate positive cash flow. The equity investment totaled $3 million, funded by proceeds from the April 2021 public stock offering. Medalist aims to continue acquiring similar cash-flowing properties while reducing hotel investments, demonstrating progress in its strategy to reposition assets post-COVID-19.
Positive
Acquisition of Greenbrier Business Center is expected to generate immediate positive cash flow.
Strategic shift towards cash-flowing properties reflects management's focus on shareholder value.
Negative
None.
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 August 27, 2021, Medalist Diversified Holdings, L.P., the Company’s operating partnership, acquired a flex Industrial center consisting of three buildings totaling approximately 89,290 square feet of gross leasable space in Chesapeake, Virginia, commonly referred to as the Greenbrier Business Center property (“Greenbrier Business Center”), from a seller affiliated with the Company’s external manager for a purchase price of $7,250,000, exclusive of closing costs. The Company’s equity investment in the acquisition of approximately $3,000,000 was funded using a portion of the net proceeds from the Company’s common stock public offering that Medalist closed 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 Greenbrier Business Center was funded by a commercial loan that the Company assumed from the seller.
Bill Elliott, Vice Chairman and President of the Company, stated "Greenbrier Business Center 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 purchase similar cash flowing properties while we work to exit our hotel investments. Purchasing robust cash flowing properties like Greenbrier Business Center will help 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, the acquisition of the Lancer Center property in May 2021, and now the acquisition of the Greenbrier Business Center demonstrate the Company’s continued successful implementation of its 2021 strategy to emerge from COVID-19, reposition its investments into positive cash flowing properties and continue to grow.”
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.
