On August 27, 2021, Medalist Diversified Holdings, L.P., the Company’s operating partnership, acquired a flex Industrial center consisting of three buildings totaling approximately 89,290 square feet of gross leasable space in Chesapeake, Virginia, commonly referred to as the Greenbrier Business Center property (“Greenbrier Business Center”), from a seller affiliated with the Company’s external manager for a purchase price of $7,250,000, exclusive of closing costs. The Company’s equity investment in the acquisition of approximately $3,000,000 was funded using a portion of the net proceeds from the Company’s common stock public offering that Medalist closed on April 13, 2021. Management expects to use the remaining proceeds from the common stock offering for additional acquisitions during 2021. The balance of the purchase price for the Greenbrier Business Center was funded by a commercial loan that the Company assumed from the seller.
Bill Elliott, Vice Chairman and President of the Company, stated;Greenbrier Business Center has a diverse workforce tenancy, consistent with our strategy, that we believe will generate positive cash flow immediately. One of Medalist’s goals is to purchase similar cash flowing properties while we work to exit our hotel investments. Purchasing robust cash flowing properties like Greenbrier Business Center will help continue to build value for our shareholders.
Thomas E. Messier, Chairman and Chief Executive Officer of the Company, stated “our successful common stock offering in April 2021, the acquisition of the Lancer Center property in May 2021, and now the acquisition of the Greenbrier Business Center demonstrate the Company’s continued successful implementation of its 2021 strategy to emerge from COVID-19, reposition its investments into positive cash flowing properties and continue to grow.”