Medalist Diversified REIT Closes Acquisition of United Rentals Property in Alabama

Medalist Diversified REIT, Inc. announced on February 25, 2025 that it successfully closed on the acquisition of a 7,500‐square‐foot building located at 376 Dan Tibbs Road NW in Huntsville, Alabama. The property, occupied by United Rentals, Inc., was acquired by MDR Dan Tibbs Road, LLC – a wholly owned subsidiary of Medalist Diversified Holdings, LP, which serves as the operating partnership for the REIT.

Under the terms of the Contribution Agreement originally dated December 14, 2024 and amended effective February 21, 2025, the purchase price was set at $3,145,000, exclusive of closing costs. The payment structure included the issuance of 251,600 operating partnership units (OP Units) valued at approximately $12.50 per unit—pricing determined using the closing price of the company’s common stock on Nasdaq Capital Market as of December 13, 2024—and $42,446 in cash to cover the seller’s transaction costs.

In connection with the closing, the seller’s rights to the OP Units were assigned to BET Trust under an agreement dated January 24, 2025. The transaction was supported by an independent appraisal of the property’s fair market value and is part of a broader strategy to diversify the REIT’s portfolio. The operating partnership’s units are structured to be redeemable either for cash or, subject to shareholder approval, Company common stock on a one-for-one basis.

The Form 8-K filing also references additional transactions and portfolio adjustments that have been integrated into the company’s pro forma financial statements. These transactions include previously announced acquisitions—such as the Buffalo Wild Wings Property in Bowling Green, Kentucky—and the sale of assets like the Hanover Square Shopping Center in Mechanicsville, Virginia. In several private placements and the redemption of Series A Preferred Stock, the company has detailed both the changes in operating revenues and the impact on its consolidated balance sheet.

The filing underscores the involvement of senior management in these strategic deals. Notably, Frank Kavanaugh, the Company’s Chief Executive Officer and member of the Board of Directors, served as the manager for Fort Ashford Funds, LLC—the manager of the seller—and is also a trustee of BET Trust.

Investors can review the detailed transaction agreements, pro forma financial statements, and supporting exhibits filed with the Securities and Exchange Commission to better understand the impact these combined transactions will have on Medalist Diversified REIT’s overall portfolio and financial performance.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Medalist Diversified REIT’s 8K filing here.

Medalist Diversified REIT Company Profile

Medalist Diversified REIT Inc is a Virginia-based real estate investment trust that specializes in acquiring, owning and managing commercial real estate in the Southeast region of the U.S. The Company's strategy is to focus on commercial real estate which is expected to provide an attractive balance of risk and returns.