Richmond-based Medalist Diversified REIT Inc., having raised $8.7 million through an initial public offering, is officially in business, co-founder Thomas E. “Tim” Messier said Thursday.
The real estate investment trust is part of Medalist Properties, a real estate investment company in Shockoe Slip.
Medalist Properties was co-founded in 2003 by Messier and William R. Elliott. Messier has 22 years of experience in the capital markets industry. Elliott’s background is commercial real estate.
The company is the umbrella organization for Medalist Fund Manager Inc., a private equity firm that invests in commercial properties in the Mid-Atlantic and Southeast, and the newly formed Medalist Diversified REIT, a publicly held investment firm.
The REIT needed to surpass a minimum threshold of $8 million to qualify as a public company. Since last October, it sold $8.7 million worth of shares in a public offering and hopes to reach the maximum $50 million in the next six months, Messier said.
The REIT purchased its first property, a retail shopping center in Gastonia, N.C., last month.
It is currently raising equity to purchase a hotel in Greensboro, N.C.
The REIT will invest in four property types — industrial/flex, anchored retail, multifamily and limited service hotels. Its core geographic area is Virginia, North Carolina, South Carolina and Georgia.
The company plans to list the REIT’s stock on the OTCQX, or over-the-counter market, once the IPO period is complete.
It is using St. Louis-based Moloney Securities as the lead underwriter and securities law firm Kaplan, Voekler, Cunningham and Frank in Richmond.