Medalist Launches $6.24M Caliber Collision DST, Plans New Net-Lease REIT

Medalist Diversified Inc. (Nasdaq: MDRR) has launched MDI Pilot Point Net Lease DST, a $6.24 million all-cash offering backed by a Caliber Collision facility north of Dallas, its third Delaware statutory trust offering since debuting its first offering in May.

The company also told AltsWire it plans to build a new net-lease real estate investment trust under the public parent company, fed partly by DST properties that would roll up through a Section 721 option once investors have held their interests for two years. Medalist revoked its REIT election effective Jan. 1, 2026. Its legacy REIT portfolio has been sold down to one remaining property, and DST sponsorship is now the core of its business, the company said.

“That was the end of the old portfolio, not the end of the REIT strategy,” said Ron Nielsen, executive vice president of sponsor operations at Medalist.

The new REIT would grow through direct acquisitions by the company and through DST properties contributed under the option, Medalist said. Pilot Point, Overland Park, and the Tesla property in Pensacola are the first three pieces, according to the company. The option is held by the trust manager and would be assigned to the new REIT’s operating partnership before any exercise. At that point, investors could take either cash or operating partnership units at appraised value, the company said. Medalist said exercise of the option is not assured.

The DST owns a 15,104-square-foot collision repair facility on 1.65 acres at 8600 U.S. Highway 377 in Pilot Point, Texas. Built in 2007, the building was taken to the studs and rebuilt to Caliber’s specifications in 2025, the company said.

Caliber Bodyworks of Texas LLC leases the property under an absolute triple-net lease that runs to May 31, 2039, with two five-year renewal options. Annual base rent is $321,425, with 10% increases every five years; the next is scheduled for June 1, 2029.

The lease is guaranteed by Caliber parent Wand Newco 3 Inc., which is rated B by S&P Global Ratings and B2 by Moody’s Ratings. Moody’s upgraded the company from B3 in June 2026. The guaranty runs through both renewal periods, according to Medalist.

Deal Economics

The DST acquired the property Sept. 17 for $5,404,864, funded with cash from Medalist’s balance sheet. That works out to a 5.95% going-in cap rate. Cushman & Wakefield appraised the property at $5.55 million, the company said. Medalist holds the unsold interests and is redeemed as investors subscribe.

The maximum offering amount is $6,242,410, and first-year rent equals 5.15% of that total before fees and reserves, the company said. Selling commissions, the marketing allowance, and the managing broker-dealer fee total 9%. Sponsor compensation includes a 1.5% acquisition fee, an asset management fee starting at $7,500 a year, and a 2% disposition fee subordinated to the return of investor capital. Organizational and offering expenses are capped at $85,214, and the trust reserve is $68,000.

Realta Equities Inc. is the managing broker-dealer. The offering is made under Rule 506(c) to accredited investors, including both 1031 exchange and cash buyers, with a $100,000 minimum that the trust may waive. Four selling agreements are in place so far, Medalist said.

Leverage Strategy

Pilot Point is the second straight all-cash deal for Medalist. Its debut offering, MDRR XXV DST 1, carried roughly 47% leverage on a Tesla-leased facility in Pensacola, Fla.

Medalist said that at current spreads, financing a property with a sub-6% cap rate at 6.5% to 7% would be negative leverage, adding volatility to investor income without increasing it. The company said all-cash is its default on single-tenant net-lease deals of this size, though it would use moderate leverage again when the asset and market call for it.

Platform Progress

Medalist’s second offering, MDI Overland Park Net Lease DST, a $6.66 million all-cash deal on a Caliber Collision facility in Overland Park, Kan., had raised $3,566,273, or 53% of its target, as of Nov. 5, the company said. The Tesla offering fully subscribed in August at nearly $8.6 million. Realta Equities is the managing broker-dealer on all three offerings, each made under Rule 506(c).

“Our focus is on making the lease, transaction structure, and underlying risks clear so advisers can assess the offering for their clients,” said Peter Elwell, managing director of DST investments at Medalist.

The Richmond, Va.-based company was founded in 2015 and has been listed on Nasdaq since 2018.

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