Medalist Diversified REIT is issuing up to $50 million in shares under the new Regulation A offering rule. It plans to use the proceeds to purchase commercial properties across the Southeast and to deploy its capital as part of a focused, value-add strategy.
Target investments, all owned by affiliates:
– Retail shopping center in Gastonia, North Carolina (Charlotte Suburb)
– Hotel in Greensboro, North Carolina
– Shopping center in Warsaw, Virginia
– Flex industrial center in Charlotte, North Carolina
Medalist Diversified REIT Common Stock Offering
Medalist Fund Manager Inc., a Richmond, VA-based company founded in 2003, is launching its first real estate investment trust, Medalist Diversified REIT.
Tim Messier and Bill Elliott co-founded Medalist Fund Manager, which has owned and managed a variety of commercial real estate investments. The Manager’s management team has 50+ combined years of management experience in commercial real estate and fixed income capital markets.
The Manager and its affiliated companies specialize in acquiring, developing, owning and managing value-added commercial real estate in the Mid-Atlantic and Southeast regions. The Manager’s principals and their respective affiliates have a strong track record of success.
Value-Add/Opportunistic Real Estate Expertise
Build a diversified portfolio of Commercial Real Estate in secondary and tertiary markets in the Southeast with current cash flows to investors, diversified across key property types and geographies. Capitalize on undermanaged properties and/or dysfunctional capital structures and create value for investors through active and disciplined property management*.
Property Pipeline: 4 affiliate-owned properties providing transparency and limiting blind pool risk.
Intended Minimum Dividend: 7.00%
Diversification Across Property Types and Geographies: Invest in 4 core property types (Anchored-Retail, Industrial/Flex, Multi-family and Limited Service Hotels) across key markets in NC, SC, VA, GA.
SEC Filing: Medalist filed for a $50mm equity offering with the SEC
Expected Portfolio Size: Approximately $190mm to $200mm in diversified commercial real estate assets
Summary Terms
The REIT: Medalist Diversified REIT (Maryland Corporation)
The Underwriter: Moloney Securities (Best Efforts Basis)
The Manager: Medalist Fund Manager, Inc.
Intended Quarterly Dividend: 7.00%
Expected Initial Stock Price: $10.00 per share
Expected Closing Date: 90-120 Days
Trading Platform: Stock is expected to be quote on the OTC QX (Over the Counter Market)
*No money or other consideration is being solicited pursuant hereto, and if any is sent in response, it will not be accepted. No offer to buy Medalist Diversified REIT, Inc.’s (Medalist) securities and no part of the purchase price for Medalist’s securities can be received until the offering statement Medalist has filed with the SEC is qualified, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of its acceptance given after the qualification date. Any indication of interest in Medalist or its offering involves no obligation or commitment of any kind. A copy of Medalist’s offering statement containing its most current preliminary offering circular describing the Regulation A offering that is mentioned in this summary can be found at: http://www.sec.gov/Archives/edgar/data/1654595/000114420415057969/0001144204-15-057969-index.htm.
Any “forward looking” statements, projections and outlooks should not be construed to be indicative of the actual events which will occur and no undue reliance should be placed on these forward looking statements, nor should the inclusion of these statements be regarded as Medalist representation that the investment will achieve any strategy, objectives or other plans. Medalist is speculative and involves a high degree of risk. An investor could lose all or a substantial amount of their investment. Past performance, track record and/or pro forma values are for illustrative purposes only and are not indicative of future performance. Future performance is not guaranteed.
– Non-accredited investors can invest up to 10% of their income or net worth
– The Manager will be paid an incentive fee only if 7% or more positive cash flow is produced from operation of the properties.
– In order to qualify as a real estate investment trust, the REIT must distribute at least 90% of its annual taxable income. The REIT intends to make quarterly distributions in amounts determined by its Board of Directors.
Total issue: $50 million
Minimum investment: $5,000
Available to: accredited and non-accredited investors
About Medalist Properties
Medalist Properties is built on the expertise of principals Bill Elliott and Tim Messier who have over 50 years of combined experience in the commercial real estate and capital markets. We specialize in the acquisition and management of middle market commercial properties in the Mid-Atlantic and the Southeast. Our ownership and capital structures are developed using the best practices from both markets to provide superior returns to our investors.
Asset Management
Investment Process Summary
Property Portfolio
Medalist believes attractive buying opportunities exist for small-and-medium size assets compared to larger and more expensive assets. Learn about the latest projects and properties.
Arrowridge Business Park
Arrowridge Business Park was purchased at 40% discount below replacement cost, expected to provide additional exit value. MFund I(1) completed the purchase of Arrowridge Business Park on February 28, 2014. MFund I’s quarterly distributions include cash flow generated by this property. Arrowridge is a 194,000 square foot flex/industrial property located in Charlotte, North Carolina. The property has several national tenants such as Hobart Corporation, Boar’s Head Brand, Sparks Belting Company, Centimark, Bronsal American and Sears Home Improvement.
Greensboro Airport Hampton Inn
The Greensboro Airport Hampton Inn is a 125-room hotel located three miles from the Piedmont Triad International Airport (GSO) at I-40 and NC 68. The Greensboro Airport Hampton Inn has been maintained in excellent condition, and there are many restaurants and support amenities in the area. The hotel currently and historically has experienced strong market penetration as reported by Smith Travel.
Franklin Square Shopping Center
Franklin Square Shopping Center appreciated by $2.3 million, a 13% increase in appraisal value. MFund I(1) completed the purchase of Franklin Square Shopping Center on September 20, 2013. MFund I’s Quarterly distributions include cash flow generated by this property. Franklin Square is a 134,000 square foot shopping center located in Gastonia, North Carolina approximately 12 miles south of Charlotte. The two national anchor tenants are HH Gregg and Ashley Furniture. Other tenants include Gold’s Gym, Sprint PCS, 6 other national tenants and 3 local tenants.
Greenbrier Business Center
Greenbrier Business Center is a 92,422 square foot flex/industrial property located in Chesapeake, Virginia and is accessible from two major highways in the area, Greenbrier Parkway and Battlefield Boulevard. Chesapeake is in the “Hampton Roads” MSA of Virginia which includes Virginia Beach and Norfolk with a population of approximately 1,700,000. The area is known for its ports, strong military presence and maritime related industries. National, regional and local tenants include ThysenKrupp Elevator, Engility Corporation, Fastenal Company, Hampton Roads Electrical Supply and Clearview Church. The property is currently 94% occupied.
Patriot Plaza Shopping Center
Patriot Plaza is located on Richmond Road in Williamsburg. This famous thoroughfare is a shopping destination for tourists and residents. Patriot Plaza was formerly an outlet mall purchased by Medalist from Chelsea Outlet Mall REIT in December, 2005. The property is currently 75% occupied with several retail tenant leases under review. Medalist is working to reposition the 79,000 square foot property into a traditional retail center.
Polo Place Shopping Center
Polo Place was purchased by Medalist in October, 2005. The center is located in Midlothian, Virginia and is part of the Shoppes at Bellegrade complex. It is flanked on each side by Quiznos and Starbucks, and is a desirable location.
Our Partners…
William (Bill) R. Elliott
Medalist Co-Founder & Co-President
Mr. Elliott has been involved in the commercial real estate industry since 1983. Since 2003 he has co-managed Medalist and is a managing member of all Medalist partnerships. He is jointly responsible for setting strategy, real estate acquisition and real estate management decisions. Mr. Elliott also participates in capital raising and other operational activities. Prior to Medalist he was a civil engineer from 1977 to 1983. As a managing member of Medalist Properties, Mr. Elliott is involved in sourcing, executing and the management of investment properties. He was formerly Managing Partner of Prudential Commercial Real Estate, former President of Virginia Realty and Development Company and former President of the Central Virginia Region of Goodman, Segar, Hogan, Hoffler. As a commercial real estate professional, he has demonstrated proficiency in transactions including major office buildings, shopping centers, industrial land and facility sales and large mixed-use development land sales. Mr. Elliott is a licensed real estate broker, certified property manager, Vice President of the Institute of Real Estate Management, a Certified Value Engineer and a member of the American Society of Civil Engineers and the Building Owners and Managers Association.
Mr. Elliott received his B.S. in Building Construction from Auburn University and a Master’s Degree in Civil Engineering from Virginia Polytechnic Institute.
Thomas (Tim) E. Messier
Medalist Co-Founder & Co-President
Mr. Messier has been involved in the commercial real estate and capital markets industry since 1980. Since 2003 he has co-managed Medalist and is a managing member of all Medalist partnerships. He is jointly responsible for setting strategy, real estate acquisition, and real estate management decisions. Mr. Messier’s additional responsibilities include investor relations, capital raising and other operational activities. Mr. Messier previously worked with structured fixed income securities, including commercial real estate structured products, for over twenty years. He was formerly a Director of Global Capital Markets at Wachovia Bank (before merger/First Union). Prior to that he was a Senior Vice President of Capital Markets at Bank of America.
Mr. Messier received his BBA from the Terry College of Business at the University of Georgia.