MDI Overland Park Net Lease DST Overview
MDI Overland Park Net Lease DST is a Regulation D, Rule 506(c) all-cash (debt-free) offering of up to $6,657,515 in Class 1 beneficial interests in a newly formed Delaware statutory trust sponsored by MDI Sponsor, LLC, a subsidiary of Medalist Diversified, Inc. (Nasdaq: MDRR). The trust owns a single, build-to-suit (2022) 17,592-square-foot Caliber Collision automotive collision-repair facility on a 1.58-acre hard-corner site at 14939 Metcalf Avenue in Overland Park, Kansas — an affluent Kansas City suburb in Johnson County served by the top-ranked Blue Valley School District, with median household income of roughly $161,693 and median home values near $565,049 within three miles, and more than 24,000 vehicles per day on Metcalf Avenue. The property is 100% leased to Caliber Holdings, LLC (d/b/a Caliber Collision) on an absolute triple-net lease guaranteed by its corporate parent, Wand Newco 3, Inc. Caliber — founded in 1997, headquartered in Lewisville, Texas, and owned by private-equity firm Hellman & Friedman — is the largest U.S. automotive collision-repair operator with more than 1,800 centers across 41 states, and has confidentially filed an S-1 for a potential 2026 IPO. The lease carries a 15-year base term that commenced in July 2023 (approximately 12 years remaining, expiring July 31, 2038), two 5-year renewal options, and 10% rent increases every five years; base rent is $347,500 ($19.75/SF), stepping to $382,250 in 2028. Because the trust holds no mortgage debt, the offering carries no lender or refinancing risk and suits conservative 1031 exchangers seeking passive, credit-tenant net-lease income without leverage, as well as cash investors — though 1031 investors replacing debt should note the all-cash structure may create mortgage 'boot.' The minimum investment is $100,000 (a 1.5021% interest). The exit is contemplated as a sale of the property or, at the sponsor's election, a fair-market-value (FMV) option under which investors may exchange their interests for equity units in the sponsor's operating partnership (a Section 721-style roll-up) or take cash; there is no affiliated public REIT, as MDI revoked its REIT election effective January 1, 2026.
Highlights
The asset is a purpose-built, 2022-constructed Caliber Collision facility totaling 17,592 square feet on a 1.58-acre hard-corner parcel with frontage on Metcalf Avenue, one of the Kansas City metro's primary north-south arterials carrying more than 24,000 vehicles per day, minutes from U.S. Highway 69 (34,700+ vehicles per day). It is a modern, single-tenant collision-repair center positioned within a national-retailer corridor anchored by Target, Scheels, JCPenney, Von Maur, Price Chopper, Life Time Fitness, and Dave & Buster's. At a $5,800,000 purchase price the going-in capitalization rate is 5.99% (about $330 per square foot), and the property is 100% occupied under a long-term absolute-net lease with roughly 12 years of base term remaining.
The property is 100% leased to Caliber Holdings, LLC (d/b/a Caliber Collision), which describes itself as America's largest automotive repair and service brands group — more than 1,800 centers across 41 states, founded in 1997 and headquartered in Lewisville, Texas, operating as a preferred repair partner to national insurance carriers under a limited lifetime warranty. Caliber is owned by private-equity firm Hellman & Friedman and has confidentially filed an S-1 with the SEC for a planned 2026 IPO (working with Bank of America, Goldman Sachs, and JPMorgan); a public listing would add audited disclosure and typically deleverages the balance sheet, a potential forward catalyst for tenant credit, though there is no guarantee Caliber completes an IPO or becomes a public company. The lease is guaranteed by corporate parent Wand Newco 3, Inc.
The Caliber lease is absolute triple-net, placing all taxes, insurance, maintenance, and structural obligations on the tenant and leaving the trust with effectively zero landlord responsibilities. The base term runs 15 years from a July 2023 commencement — approximately 12 years remaining, expiring July 31, 2038 — followed by two 5-year renewal options. Rent escalates 10% every five years across the base term and both option periods: base rent of $347,500 ($19.75/SF) steps to $382,250 in August 2028, then $420,475, with option-period rents reaching $462,523 and $508,775. The staggered 10% bumps provide a contractual, if lumpy, inflation hedge, and the roughly 12 years of remaining base term give a future buyer meaningful lease duration at the projected exit.
The offering is all-cash and debt-free: with no mortgage on the property, there is no lender, no balloon maturity, and no refinancing or interest-rate risk, and the trust cannot be forced into a distressed sale or a DST-to-LLC 'springing' conversion by a loan default. The sponsor is unusually transparent for the DST space — Medalist Diversified, Inc. is publicly traded (Nasdaq: MDRR), SEC-reporting (10-K, 10-Q, 8-K), audited by Cherry Bekaert LLP, Sarbanes-Oxley certified, and governed by a majority-independent board (4 of 5), with FactRight third-party due diligence on the offering. That said, MDI only recently repositioned from an equity REIT into a DST sponsor, so its full-cycle DST track record is limited, and investors underwrite the asset, lease, and structure more than a realized program history.
The location pairs durable repair demand with affluent-household density: within three miles the trade area holds about 73,579 residents and 27,680 households, median household income near $161,693, and median home values around $565,049 — collision-repair demand tracks vehicle density and household wealth, and Overland Park (Kansas' second-largest city and the affluent anchor of Johnson County) supplies both. The interests are structured as replacement property for a Section 1031 exchange, deferring capital gains, with monthly distributions. At exit the sponsor may exercise a fair-market-value option letting investors roll their interests into equity units of the sponsor's operating partnership (a Section 721-style exchange) to preserve deferral, or take cash at a 2% redemption discount; because the trust holds no debt, 1031 investors carrying mortgage debt on their relinquished property may recognize debt-relief ('mortgage boot') and should consult their tax advisor.
Analysis of MDI Overland Park Net Lease DST
Insights
Read MDI Overland Park as a small, all-cash bond substitute: a single Caliber Collision box in affluent Overland Park whose return is contractual rent — lightly taxed and unlevered — not a bet on appreciation or interest rates. Stripped of debt, the deal is what it looks like: a roughly 6.0% going-in cap on the real estate that reaches the investor as a 5.08% Year-1 yield, stepping to 5.53% after the 2028 rent bump (about a 5.40% average over the seven-year forecast). On relative value it prices at-market, not through it — average income and peak yield both sit within a hair of the net-lease benchmark (about 5.08% income, 5.31% peak), and only growth screens modestly above, but that 'growth' is a single 10% step every five years, so a seven-year holder captures exactly one bump. That is fair value for credit-tenant net lease, not a discount. Two things separate it from the levered net-lease crowd. First, with no mortgage there is no balloon, no refinancing wall, and no springing-LLC risk — the failure modes that dominate leveraged DSTs simply do not exist here, and the Year-1 payout is genuinely covered by rent (about 1.03x), not reserve-fed. Second, the sponsor is a public company (Nasdaq: MDRR) with audited financials and a FactRight review, unusual transparency — though it is a first-generation DST sponsor with little full-cycle history, so you underwrite the lease, not a track record. The costs are where the file goes quiet: an approximately 10.43% load and an offering struck about 15% above the $5.8M the trust paid mean investors start well above the bricks and must grind that markup back through a sub-6% coupon. The crux risk is concentration, not leverage — one specialized, unrated tenant in one building, where a Caliber departure would leave a purpose-built collision box that is expensive to backfill; Caliber's confidential 2026 IPO is the swing factor that could firm the credit and is what we would watch, alongside the exit, since the FMV/721 option rolls into the sponsor's own operating partnership (not a public REIT) on sponsor terms. It fits a smaller 1031 exchanger — the $100,000 minimum and debt-free profile are ideal for placing modest, all-cash proceeds into passive, credit-anchored income with no leverage or refinancing risk. It is a poor fit for anyone replacing mortgage debt (all-cash risks boot), reaching for yield or diversification, or unwilling to underwrite single-tenant, single-asset concentration and a rich load against a market coupon.
Advantages
The debt-free structure removes the risks that sink many leveraged DSTs: there is no mortgage, so no balloon maturity, no refinancing exposure, no lender covenants, and no possibility of a loan-default-driven 'springing LLC' conversion that would forfeit 1031 eligibility. The income is credit-anchored and genuinely covered: Year-1 distributions of about $338,400 are funded from $347,500 of net-lease rent (roughly a 1.03x payout ratio), not from reserves or return of capital, and the tenant bears every operating cost under an absolute-NNN lease. Caliber Collision is the largest U.S. collision-repair operator (1,800+ centers across 41 states), backed by a corporate-parent guaranty and private-equity ownership (Hellman & Friedman), with a confidential S-1 on file for a potential 2026 IPO that could strengthen tenant credit and transparency. Roughly 12 years of remaining base term plus two 5-year options, with contractual 10% rent bumps every five years, provide durable income with a built-in inflation hedge and meaningful residual term for a future buyer. The real estate sits on a high-traffic hard corner in affluent Overland Park (median 3-mile household income about $161,693, top-ranked Blue Valley schools), and the sponsor offers rare public-company transparency (Nasdaq: MDRR, SEC-reported, SOX-certified, majority-independent board, FactRight-vetted). The low $100,000 minimum and all-cash profile make it a clean fit for smaller exchanges and for cash investors seeking passive, hands-off income.
Concerns
This is a single-tenant, single-asset, single-market deal, so the risk is binary and concentrated: 100% of income depends on one Caliber Collision location and the credit of guarantor Wand Newco 3, Inc.; any default, non-renewal, or downtime hits the entire distribution. The building is purpose-built for collision repair — a specialized use with paint booths, drainage, and zoning specific to auto-body work — so re-leasing to a replacement tenant or repurposing the box would likely require meaningful capital and time and could fetch a lower sale price. Caliber's credit is unrated and privately held (owned by Hellman & Friedman, with the leveraged balance sheet typical of private-equity ownership); the potential 2026 IPO is a possible catalyst but is not guaranteed. The load is heavy relative to the yield: total selling and offering costs run about 10.43% of equity, and the $6,657,515 offering is roughly 15% above the $5,800,000 the trust paid for the real estate (before the 1.6% acquisition fee, closing costs, and reserve), so investors begin well above the property's value and must earn that markup back through income and appreciation before reaching par. Reserves are minimal — a $25,000 Trust Reserve (about 0.38%) — leaving little cushion for a capital surprise on an absolute-NNN lease where the landlord nonetheless retains certain structural responsibilities at term. Income growth is lumpy — a single 10% step every five years, so only one bump falls inside a roughly seven-year hold — and could lag inflation. Finally, the exit is uncertain: there is no affiliated public REIT (MDI revoked its REIT election effective January 1, 2026), so the FMV/721 option would roll investors into the sponsor's own operating partnership on sponsor-determined terms, and the sponsor's limited full-cycle DST track record means the exit is unproven.
MDI Overland Park Net Lease DST — Complete Offering Data
Offering & Structure
Investment NameMDI Overland Park Net Lease DST
SponsorMedalist Diversified
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusUnder Review
Last Updated2026-08-13
Size & Availability
Total Offering$6,657,515
Equity$6,657,515
DebtAll-Cash
Available Equity$6,657,515 (100% of equity)
Minimum Investment$100,000
Total Load10.43%
Initial Reserves0.38%
Property
Property TypeNet Lease
StrategyCore
LocationKS
Market TierTier 2
Income & Projections
Average Yield5.40%
Projected Yields (Y1–Y10)Y1 5.08% · Y2 5.08% · Y3 5.53% · Y4 5.53% · Y5 5.53% · Y6 5.53% · Y7 5.53%
Tax-Adjusted Yield11.92%
Cap Rate Equivalent7.68%
Year 1 NOI$347,500
Y1 Payout Ratio1.03
Financing
In-Place LTV0.00% LTV
Exit
Estimated Hold Period7-10 Years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income5.40% vs 5.10% market — Meets Average
Growth8.86% vs 7.54% market — Above Average
Peak5.53% vs 5.33% market — Meets Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
