MDRR XXV DST 1 Is Fully Subscribed
Our debut DST offering closed at approximately $8.6 million in equity. Here is what we bought, how we structured it, and what it says about what comes next.
Richmond, VA. August 11, 2026
MDRR XXV DST 1 is fully subscribed. The offering raised approximately $8.6 million in equity from accredited 1031 exchange investors, with total capitalization of roughly $16.3 million. It is the first offering from the Medalist Diversified DST platform, sponsored through MDI Sponsor, LLC.
AltsWire covered the closing on August 10. You can read their report here: Medalist Diversified Fully Subscribes Debut DST, Raising $8.6 Million.
We want to add the part a news item does not have room for, which is why the deal looks the way it does.
The asset
The trust holds a 45,190 square foot net leased facility at 312 East Nine Mile Road in Pensacola, Florida, leased in its entirety to Tesla, Inc. Tesla carries a BBB rating with a stable outlook from S&P Global Ratings.
The building operates as Tesla's sales, service, and delivery hub for Northwest Florida and Southern Alabama, a service area of more than 500,000 residents anchored by Naval Air Station Pensacola. It is not a satellite location. It is the only facility of its kind for a wide catchment, which is the operational profile we look for in single tenant net lease.
The lease runs twelve years to May 31, 2037, with 3% annual rent escalations and three five year renewal options carrying the same escalation structure. Base annual rent is $894,487.
The structure
The trust placed a $7.7 million non-recourse first mortgage with Pinnacle Bank at a 47.32% loan to value ratio, swapped to a 5% fixed rate. Debt service coverage is 2.32 times.
Those three numbers are the deal. A 47% LTV on a BBB rated tenant with 2.32 times coverage is a conservative capital stack by any measure, and it was a deliberate choice rather than a constraint. We could have levered higher. Higher leverage would have produced a larger projected distribution and an easier sales conversation. It would also have moved risk from the sponsor's income statement onto the investor's balance sheet.
As Peter Elwell, our Managing Director of DST Investments, put it in the AltsWire piece: "We are focused on sourcing investments characterized by institutional quality tenants, long-term leases and conservative use of leverage. A BBB-rated tenant on a 12-year lease at 47% LTV with 2.32x coverage is the profile we intend to repeat."
That last clause is the one that matters. This was not an opportunistic structure. It is the buy box.
Why the sponsor mattered on this one
Mountain Dell counted 59 active DST sponsors offering 110 programs as of July 31, up more than 30% year over year. Advisors have never had more product to choose from, and never had more sponsor diligence to do.
Medalist Diversified is part of a public reporting company listed on Nasdaq under MDRR. Our financial statements are audited and filed. Our management, governance, related party transactions, and litigation are on the record. An advisor evaluating us does not have to request financials and take what they are given. They can pull the filings.
For a platform on its first offering, that transparency did real work. The firms that took MDRR XXV DST 1 to their due diligence committees were underwriting a new sponsor, and the public filings gave those committees something to underwrite.
What comes next
We expect to bring our second DST offering to market later this month, a single tenant net lease asset in the Kansas City metropolitan area. Offering materials will be made available to registered representatives and investment advisers through our distribution partners.
Advisors who want to be notified when it launches, or who want our sponsor diligence package in advance, can reach us directly.
Ronald Nielsen Executive Vice President, Sponsor Operations rnielsen@medalistdst.com (949) 415-6633
About Medalist Diversified
Medalist Diversified, Inc. (Nasdaq: MDRR) is a publicly traded real estate company and DST sponsor platform headquartered in Irvine, California. The company reports approximately $96 million in assets under management across 10 properties in eight states, with 94% portfolio occupancy. Medalist sponsors its Delaware statutory trust offerings through MDI Sponsor, LLC.
This communication is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. MDRR XXV DST 1 is fully subscribed and closed to new investment. Any offering is made only by means of a Private Placement Memorandum to accredited investors as defined under Regulation D of the Securities Act of 1933. Past performance is not indicative of future results. Real estate investments involve risk, including possible loss of principal, and are illiquid. Prospective investors should read the Private Placement Memorandum in full, including the risk factors, before investing.