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LibraryMDRR XXV Tesla DST 1

Executive Summary

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MDRR XXV Tesla DST 1

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Offering summary

MDRR XXV Tesla DST 1 is a Delaware Statutory Trust offering structured to acquire a single-tenant retail and service facility located at 312 East Nine Mile Road in Pensacola, Florida. The subject property, built in 1986, is leased to Tesla, Inc., an enterprise employing over 140,000 global personnel. The total offering capitalization is $16,296,240, consisting of $8,586,240 in equity and $7,710,000 in debt financing. The mortgage loan features a 5-year term with a 5% fixed interest rate, yielding a conservative offering LTV of 47.32% and a DSCR of 2.32x. The offering targets a Year 1 income distribution of 6% and an average full-term income rate of 6%, based on an initial acquisition cap rate of 6.0%. MDRR Sponsor TRS, LLC serves as the sponsor, overseeing a real estate portfolio with $96,000,000 in assets under management.

Capital raise

0.0% of the offering is closed

$8,586,240 still available

Closed$0 Reservations$0 Available$8,586,240
$0 of $8,586,240 placed
Total offering equity

$8,586,240

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$8,586,240

Open for subscription

The equity raise targets $8,586,240 against a total offering capitalization of $16,296,240. Syndication expenses include up to 7% in selling commissions ($601,307 estimated at full subscription) and an $85,862 dealer fee. Organizational and offering expenses are budgeted at $50,000.

Offering terms

Sector

Single-Tenant Retail/Service

Investment Category

DST

Projected First Year Cashflow

6%

Avg. 6% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$16,296,240

Offering Debt

$7,710,000

5% · 5 Years

LTV

47.32%

On acquisition price

Units / Tenants

—

312 East Nine Mile Road, Pensacola, Florida 32514

Property Age

The Tesla Service Center property was built in 1986.

The offering comprises a 1986-built single-tenant Tesla Service Center asset in Pensacola, Florida, capitalized at a total offering price of $16,296,240. Financing is fixed at 5% for 5 years with a 47.32% LTV and a 2.32x debt service coverage ratio. Projected investor distribution yields stand at 6% for both Year 1 and the full-term average.

Strengths & considerations

Key strengths

  • Strong Debt Service Coverage

    2.32x DSCR

    The 5% fixed-rate loan provides substantial cash flow buffer above annual debt service requirements.

  • Conservative Leverage Profile

    47.32% LTV

    Offering leverage remains below 50%, with $7,710,000 in debt on a $16,296,240 offering capitalization.

  • Consistent Projected Yield

    6% Yield

    Year 1 and full-term average projected income distributions are supported by a 6% acquisition cap rate.

Key considerations

  • Single-Tenant Concentration

    Single-Tenant

    Cash flow is entirely dependent on tenant performance by Tesla, Inc. at the Pensacola location.

  • Property Vintage

    1986 Built

    The facility was constructed in 1986, which may present ongoing capital expenditure requirements.

  • Medium-Term Debt Maturity

    5-Year Term

    The loan matures in 5 years and includes potential swap termination fees upon prepayment.

Credit stability is underpinned by single-tenant occupancy from Tesla, Inc., which operates globally with over 140,000 employees. The financing structure provides conservative leverage with a 47.32% LTV and strong coverage of 2.32x DSCR at a 5% fixed interest rate. Furthermore, the property was acquired at a 6% cap rate, supporting projected 6% annual distributions.

Sources, uses & fee assessment

Capital Sources

$16.30MTotal offering

  • Offering Equity

    52.7% of offering

    $8.59M

  • Offering Debt

    47.32% LTV on acq.

    $7.71M

Where the Capital Goes

$16.30MDeployed

  • Acquisition Cost

    89.3% of offering

    $14.54M

  • Offering Expenses

    3.7% of offering

    $601K

  • Reserves

    0.3% of offering

    $50K

  • Unallocated / other uses

    6.8% of offering

    $1.10M

Total Offering

$16.30M

Equity $8.59M + debt $7.71M

Acquisition Cost

$14.54M

89.3% of offering to the property

Total Fees & Expenses

$601K

7.00% of offering

Reserves

$50K

0.3% of offering

Sources comprise $8,586,240 in investor equity alongside a $7,710,000 fixed-rate loan. Uses include the $14,554,504 property purchase, a $254,424 acquisition fee, $276,445 in title and recording costs, $92,414 in financing expenses, and $50,000 in reserves. Selling commissions and front-end offering expenses total $601,037.

Risk read

Tone reflects relative strength, not a rating

Tenant Profile

positive

Leased to Tesla, Inc., an enterprise operator with over 140,000 global employees.

Debt & Leverage

positive

Conservative 47.32% LTV paired with robust 2.32x DSCR on 5% fixed-rate debt.

Maturity Horizon

neutral

5-year fixed debt term creates medium-term refinancing exposure and swap termination risk.

Asset Vintage

neutral

Service center was built in 1986, indicating an older physical asset profile.

Front-End Load

neutral

Total offering expenses and selling commissions represent a 7% load on the offering price.

Primary considerations include single-tenant operational concentration tied to Tesla, Inc. at a property constructed in 1986. The financing package carries a medium-term 5-year maturity and potential swap termination liability upon prepayment. In addition, front-end fees and syndication expenses represent a 7% load on the total offering price.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load on Offering

7.00%

Total fees ÷ offering price

Load on Equity

7.00%

Total fees ÷ offering equity

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

112.0%

Offering price ÷ acquisition price

Price per Unit

—

Offering price ÷ — units

The total capital stack consists of $8,586,240 in equity and $7,710,000 in debt against an acquisition cost of $14,554,504. Upfront syndication and transaction costs include $601,037 in total offering expenses and a 7% load on the offering price. Reserve allocations total $50,000 across lender-required, master tenant, and improvement categories to support ongoing property operations.

Sponsor

Sponsor

MDRR Sponsor TRS, LLC

MDRR Sponsor TRS, LLC is a dedicated DST sponsor entity managing $96,000,000 in AUM. As of March 1, 2026, the sponsor and its affiliates operated 8 investment properties across retail, flex/industrial, and net lease sectors.

$96M AUMSTNL & Retail FocusDedicated DST Sponsor
Portfolio

• As of October 31, 2025, MDRR, through the Operating Partnership, owned and operated 11 developed properties consisting of three retail center properties, three flex center properties, five single tenant net lease properties, and three undeveloped parcels. • As of March 1, 2026, MDRR, including its affiliates, owned eight investment properties comprised of three retail properties, one flex/industrial property and four single tenant net lease properties, including the Property.

Properties owned or managed

AUM

$96,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

Tesla, Inc. has over 140,000 global employees.

Disclosed headcount

Sector focus

Single-Tenant Retail/Service

Stated strategy

View Sponsor Dossier

MDRR Sponsor TRS, LLC serves as the dedicated DST sponsor entity for its Operating Partnership, managing $96,000,000 in assets under management. As of March 1, 2026, the sponsor and its affiliates owned eight investment properties encompassing retail, flex/industrial, and net lease assets. The sponsor structure includes an annual asset management fee of $6,000 and a 1.0% disposition fee.