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Realized Deal : Medalist Diversified REIT

Sponsored By Medalist Properties

Risk Profile
Value-Add
Amount Invested
$364,500
Targeted IRR
0%
Actual IRR*
1.4%
Targeted Equity Multiple
0.0x
Actual Equity Multiple*
1.01x
Targeted Hold Period
0.0 years
Actual Hold Period
1.0 years

In September 2017, Medalist Properties (“Medalist”) launched an offering for a diversified REIT, available to accredited and non-accredited investors, that would target multifamily, limited service hotels, flex-industrial, and anchored retail properties in the southeastern U.S. The business plan called for pursuing a value-add strategy of repositioning, leasing, and managing properties in target markets that would achieve gross, annual project level IRR between 13% and 15%. Medalist would target 7% annualized dividends, paid quarterly to investors, and ultimately would pursue a listing transaction on a registered national securities exchange including NASDAQ or the NYSE, which would deliver to investors both daily liquidity and marked-to-market valuation.

Project Timeline

Dividends to Investors

April 2021

In 2018, three dividends were declared to common stock shareholders at the annualized 7% rate, with the first dividend paid in April. Together, these three dividends totaled $0.525 per common share.

Seeded Asset & Pipeline

September 2021

At the time the deal was launched on the CrowdStreet Marketplace, Medalist Diversified REIT had one seeded asset – a 134,299 square foot retail property located in Gastonia, NC. Additionally, Medalist’s pipeline included an identified acquisition target in Greensboro, NC, for which closing was anticipated shortly.

Deemed Exit

November 2021

In late November 2018, Medalist announced the pricing of its initial public offering of 240,000 shares of its common stock at $10.00 per share. These shares, together with 1,995,000 shares of common stock already previously sold, began trading on the NASDAQ Capital Market on November 28, 2018 under the symbol “MDRR”.

Final Outcome

Medalist’s completion of its initial public offering established a public market for the common stock, effectively changing the economic terms and dynamics of the original deal. As a result, CrowdStreet has deemed this offering as realized at the initial public offering price of $10.00 per share.

*Net of fees.

This report contains explanations of a series of events associated with Medalist Properties’ Medalist Diversified REIT offering that resulted in an approximate 1% (net of fees) absolute return on original equity to investors (including those from the CrowdStreet Marketplace). Certain aspects of the report such as dates of major events and the final outcome are easily verifiable while others, particularly underlying reasons behind the sponsor’s business plan execution, are not.

The report partially relies upon the sponsor’s explanations, the information contained within sponsor-produced quarterly reports, and conference calls. This analysis is not an assertion of independently verified facts but, rather, is for informational purposes only, to convey CrowdStreet’s understanding of what transpired.

CrowdStreet makes no representation or warranty, express or implied, in relation to the fairness, accuracy, correctness, completeness, or reliability of the information contained in this report. CrowdStreet does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this report or for any decision based on it.

This communication should not be construed nor is it intended to be a recommendation to purchase, sell or hold any security or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Furthermore, this communication does not establish an attorney-client relationship or constitute legal advice.