Medalist Diversified, Inc. reported the entry into a construction loan agreement on October 9, 2026. The loan was provided by GLP 2505 LLC to MIRA Sav Property, LLC, a subsidiary of the MIRA Sav Partners, LLC joint venture.
The loan has a maximum aggregate principal amount of $13,800,000. The funds are structured as an initial funding of $5,050,000 and $8,750,000 held in construction reserve funds. The loan is secured by a first-priority mortgage lien on a multifamily townhome project located at 1025 West Gwinnett Street, Savannah, Georgia 31415.
The interest rate is variable, calculated as the greater of 11.5% or the Wall Street Journal Prime Rate plus 4.75%, with a floor of 11.5%. The loan matures on October 9, 2027, with an option to extend for up to three additional periods. Borrower may prepay the loan in whole with 30 days' notice, subject to paying accrued interest and a minimum aggregate interest of $940,000 during the initial term.
Medalist Diversified Holdings, LP, the company’s operating partnership, entered into a limited non-recourse guaranty and a completion guaranty on October 9, 2026. The operating partnership also agreed to an environmental indemnity agreement. The guaranties are shared with Spandrel Sponsors Fund II, LP as a co-guarantor.
A Contribution Agreement was executed simultaneously, governing the allocation of losses and costs between the operating partnership and the co-guarantor. Losses not attributable to the fault of either guarantor are shared based on their respective pro rata shares of the Mira JV. Losses resulting from fraud, bad faith, gross negligence, or willful misconduct of either party are borne entirely by that party.
