Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
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.
0.0% of the offering is closed
$8,586,240 still available
$8,586,240
$0
0.0% of offering$0
Pending subscription$8,586,240
Open for subscriptionThe 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.
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.
Strong Debt Service Coverage
2.32x DSCRThe 5% fixed-rate loan provides substantial cash flow buffer above annual debt service requirements.
Conservative Leverage Profile
47.32% LTVOffering leverage remains below 50%, with $7,710,000 in debt on a $16,296,240 offering capitalization.
Consistent Projected Yield
6% YieldYear 1 and full-term average projected income distributions are supported by a 6% acquisition cap rate.
Single-Tenant Concentration
Single-TenantCash flow is entirely dependent on tenant performance by Tesla, Inc. at the Pensacola location.
Property Vintage
1986 BuiltThe facility was constructed in 1986, which may present ongoing capital expenditure requirements.
Medium-Term Debt Maturity
5-Year TermThe 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.
Offering Equity
52.7% of offering
Offering Debt
47.32% LTV on acq.
Acquisition Cost
89.3% of offering
Offering Expenses
3.7% of offering
Reserves
0.3% of offering
Unallocated / other uses
6.8% of offering
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.
Tone reflects relative strength, not a rating
Tenant Profile
positiveLeased to Tesla, Inc., an enterprise operator with over 140,000 global employees.
Debt & Leverage
positiveConservative 47.32% LTV paired with robust 2.32x DSCR on 5% fixed-rate debt.
Maturity Horizon
neutral5-year fixed debt term creates medium-term refinancing exposure and swap termination risk.
Asset Vintage
neutralService center was built in 1986, indicating an older physical asset profile.
Front-End Load
neutralTotal 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.
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
Distribution rates as extracted from the offering materials.
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
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.
• 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
$96,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
Tesla, Inc. has over 140,000 global employees.
Disclosed headcount
Single-Tenant Retail/Service
Stated strategy
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.
Dedicated DST program entity with established Operating Partnership structure
Manages $96,000,000 in total assets under management
Portfolio includes 8 investment properties across retail, flex, and net lease sectors as of March 2026
Platform AUM is relatively compact at $96,000,000
Historical realization and disposition performance track record is not disclosed
The property
$14,554,504 acquisition price
MDRR XXV Tesla DST 1
Single-Tenant Retail/Service
The Tesla Service Center property was built in 1986.
312 East Nine Mile Road, Pensacola, Florida 32514
312 East Nine Mile Road, Pensacola, Florida 32514
$14,554,504
100.0% of portfolio
The transaction is leveraged with $123,306,000 in loan debt, reflecting a 52.3% LTV. Loan and lender expenses total $4,796,864, alongside $3,275,644 in finance expenses.
$7,710,000
5 Years
5%
Fixed
No prepayment penalty, but may result in swap termination fee
2.32x
47.32%
47.32%
The total acquisition cost is $226,746,498 for the newly constructed 380-unit multifamily asset. The acquisition LTV is 52.3% based on $123,306,000 in debt financing.
$14,554,504
$16,296,240
The acquisition cap rate is 6.0%, based on the first-year annualized rent, debt service, and projected expenses.
—
—
7%
6%
—
—
—
—
Proceeds fund the $226,746,498 acquisition cost and $29,956,000 in upfront fees and reserves, including $5,318,140 for improvements, $1,205,850 in lender-required reserves, and $1,000,000 in master tenant reserves.
Total Fees & Expenses
$601,037
% of equity
7.00%
% of offering
7.00%
Total fees & expenses
$601K
7.00% of offering
Offering expenses
$601K
3.69% of offering
Reserves held
$50K
0.31% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $254,424 | 2.96% | 1.56% |
| Title & Recording Costs | $276,445 | 3.22% | 1.70% |
| Reserves (Lender Required) | $50,000 | 0.58% | 0.31% |
| Reserves (Master Tenant) | $50,000 | 0.58% | 0.31% |
| Reserves (Lumped) | $50,000 | 0.58% | 0.31% |
| Reserves (Improvements) | $50,000 | 0.58% | 0.31% |
| Finance Expenses | $92,414 | 1.08% | 0.57% |
| Total Acquisition Cost | $14,544,504 | 169.39% | 89.25% |
| Total Acq. Cost (Reserves) | $16,296,240 | 189.79% | 100.00% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $601,307 | 7.00% | 3.69% |
| Dealer Fee | $85,862 | 1.00% | 0.53% |
| O&O Expenses | $50,000 | 0.58% | 0.31% |
| Total Offering Expenses | $601,037 | 7.00% | 3.69% |
| Total Fees / Expenses | $601,037 | 7.00% | 3.69% |
Sponsor compensation includes a $5,150,000 acquisition fee, a $200,000 annual asset management fee, and a 1.0% disposition fee. Intermediary fees include a $1,689,750 dealer fee and a $1,126,500 BD due diligence allowance.
$254,424
2.96%
$85,862
1.00%
$601,037
4.13%
The master lease structure generates $10,700,937 in Master Tenant income. The projected distribution rate to investors is 4.3% in Year 1 and averages 4.3% across the full holding term.
$6,000
1.0%
Standing
5 of 57
Blended percentile across 15 extracted metrics.
Pricing
87th pct
Leverage
49th pct
Cost
56th pct
Ongoing
100th pct
Structure
57th pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Acquisition cap rate
73rd pct6.00%median 5.50%
Year 1 distribution
98th pct6.00%median 4.51%
Acquisition LTV
38th pct47.32%median 46.50%
DSCR
82nd pct2.32xmedian 1.99x
Interest rate
78th pct5.00%median 5.13%
Total upfront load
96th pct3.69%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 6.00% | 5.50% | 5.00% – 6.00% | +0.50% | 73rd |
| Year 1 distributionPricing | 6.00% | 4.51% | 4.40% – 5.00% | +1.49% | 98th |
| Avg. distribution (term)Pricing | 6.00% | 5.05% | 4.75% – 5.31% | +0.95% | 91st |
| Acquisition LTVLeverage | 47.32% | 46.50% | 18.89% – 50.20% | +0.82% | 38th |
| Offering LTVLeverage | 47.32% | 46.09% | 2.67% – 49.80% | +1.23% | 35th |
| DSCRLeverage | 2.32x | 1.99x | 1.73x – 2.10x | +0.33x | 82nd |
| Interest rateLeverage | 5.00% | 5.13% | 5.01% – 5.48% | −0.13% | 78th |
| Loan termLeverage | 5 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −5 yrs | 11th |
| Total upfront loadCost | 3.69% | 7.50% | 5.00% – 9.50% | −3.81% | 96th |
| Selling commissionCost | 3.69% | 6.00% | 5.00% – 6.00% | −2.31% | 81st |
| Acquisition feeCost | 2.96% | 2.52% | 1.74% – 3.77% | +0.45% | 42nd |
| ReservesCost | 0.58% | 5.54% | 1.76% – 9.03% | −4.96% | 6th |
| Disposition feeOngoing | 1.00% | 2.95% | 2.00% – 3.50% | −1.95% | 100th |
| Equity share of capitalStructure | 52.69% | 100.00% | 52.93% – 100.00% | −47.31% | 24th |
| Hold periodStructure | 5 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −5 yrs | 89th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 89% |
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 89% |
| BREX Net Lease Data Center I DST | Brookfield Real Estate Exchange LLC | — | — | — | 4.51% | 2 yrs | 89% |
| NewStar 17 Sweetwater Springs DST | Newstar Exchange | 4.76% | 45.00% | 2.53x | 5.67% | 10 yrs | 84% |
| NexPoint Oasis DST | NexPoint Real Estate Advisors IV, L.P. | 4.84% | 53.05% | 1.81x | 4.39% | 10 yrs | 83% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 83% |
| Griffin Capital Tulsa BTR DST | Griffin Capital Residential Partners Institutional Property Exchange, LLC | 5.77% | 46.50% | — | 5.00% | 10 yrs | 83% |
| CS1031 Cacema Townhomes DST | Capital Square Realty Advisors, LLC | 5.32% | 44.39% | 2.10x | 5.37% | 10 yrs | 82% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.