Medalist Diversified Launches $6.66M All-Cash DST With Caliber Collision Property
Medalist Diversified (Nasdaq: MDRR) said it launched its second Delaware statutory trust offering, MDI Overland Park Net Lease DST, backed by a newly built Caliber Collision facility in Overland Park, Kan., two weeks after fully subscribing its debut DST.
The offering seeks to raise nearly $6.66 million from accredited investors with a minimum investment of $100,000.
The DST holds a fractional interest in a 17,592-square-foot Caliber Collision facility on 1.58 acres at 14939 Metcalf Avenue in Overland Park, a Kansas City suburb, within a retail corridor anchored by Target, Scheels, and LifeTime Fitness.
Caliber Holdings leases the property, built in 2022, under a 15-year absolute net lease with approximately 12 years remaining, 10% contractual rent increases every five years, and two five-year renewal options, Medalist said. The lease is guaranteed by Wand Newco 3, the corporate parent of Caliber Collision, which describes itself as the largest auto repair and service brand group in the country, with more than 1,800 centers across 41 states.
Unlike Medalist’s debut DST, which used roughly 47% leverage, the Overland Park offering is structured with no debt, which the company said eliminates lender and refinancing risk. It is designed for investors seeking passive net-lease income with potential Section 1031 exchange treatment, according to Medalist.
The deal follows MDRR XXV DST 1, Medalist’s inaugural DST, a Tesla-leased sales and service facility in Pensacola, Fla., that launched in May and fully subscribed at $8.6 million. At the time, Ron Nielsen, executive vice president of sponsor operations at Medalist, told AltsWire the company expected to launch a second DST later in August – a timeline Overland Park meets almost exactly.
“We believe that our DST platform’s inaugural offering first showed that a publicly traded, SEC-reporting sponsor can bring real transparency to the DST market,” said Nielsen. “Overland Park is a simple, clean deal. No debt, one national tenant, a corporate guaranty, and a lease that runs to 2038 with built-in rent growth.”
“We underwrite for durability first,” said Peter Elwell, managing director of DST investments at Medalist. “We believe that an all-cash structure helps to remove the biggest source of risk in a net-lease DST, and a new-construction asset in one of the strongest trade areas in the Midwest gives investors a property that is expected to hold its value through the full lease term.”
Medalist Diversified, founded in 2015 and listed on Nasdaq since 2018 under the ticker MDRR, is a Richmond, Va.-based real estate company that sponsors DST offerings through MDI Sponsor LLC. The company is governed by a five-member board, four of whom are independent. Medalist management invested alongside investors in the company’s first DST offering, according to Medalist.
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