Medalist Diversified REIT Inc. (NASDAQ: MDRR) stock surged by 4.26% at last close while the MDRR stock price continues to rise by 0.68% in the pre-market trading session. Medalist Diversified REIT Inc. is a real estate investment trust headquartered in Virginia that focuses on acquiring, purchasing, and controlling value-add commercial real estate in the Mid-Atlantic and Southeast regions.
What is happening?
Medalist Diversified Holdings, the corporate partnership of Medalist Diversified REIT, Inc., purchased a retail center in Lancaster, South Carolina, known as the Lancer Center property, from an unaffiliated seller on May 14, 2021, for a purchase price of $10,100,000, excluding the closing amount and a $200,000 credit to a lender.
MDRR’s $3,750,000 equity contribution was made possible by a part of the gross proceeds from MDRR’s common stock offering, which Medalist completed with Kingswood Capital on April 13, 2021. The residual funds from the common stock sale are expected to be used for further acquisitions in 2021, according to management. A private loan was used to cover the remainder of the Lancer Center’s purchasing price.
The Lancer Center anchor tenants include the following:
- Big Lots
- Harbor Freight
- KJ’s Grocery
- Babcock Furniture
Bill Elliott, Vice Chairman and President of MDRR, commented:
Lancer Center has a dynamic staff lease, which is in line with their approach and can produce healthy and long-term cash flow. As they work to exit their hotel assets, one of Medalist’s ambitions is to buy similar cash-flowing assets. Buying cash-flowing assets like Lancer Center will help them continue to add value for the investors.
Thomas E. Messier, Chairman and CEO of MDRR stated:
MDRR’s 2021 plan to recover from COVID-19, reposition its portfolios, yet proceed to expand through capital raising and property acquisitions include a profitable common stock offering and the purchase of the Lancer Center.