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Lifecycle of a LEX Deal

LEX offers a new way to invest in individual commercial real estate buildings. While we’ve designed our platform to be simple and intuitive, it’s important that our investors understand how the LEX investment process works, and how deals arrive on LEX. Here’s a brief overview of the lifecycle of a LEX deal, and what the various “stages” of assets shown on the LEX platform mean.

LEX offers a new way to invest in individual commercial real estate buildings. While we’ve designed our platform to be simple and intuitive, it’s important that our investors understand how the LEX investment process works, and how deals arrive on LEX. Here’s a brief overview of the lifecycle of a LEX deal, and what the various “stages” of assets shown on the LEX platform mean.

All LEX deals follow the same lifecycle:

Sourcing & Evaluation: Our real estate team is constantly talking to property owners and evaluating countless properties to determine whether they’re a fit for LEX investors. Most don’t make the cut, and you’ll never see those deals on LEX.

Coming Soon: Once we’ve identified a property that meets our criteria and we are likely to IPO, we sign an “engagement” with the property owner and display the deal on our site as “coming soon”. During this phase we conduct deeper diligence on the asset and help the issuer prepare their offering documents.

IPO: After the SEC “qualifies” the offering documents, the IPO opens and investors can purchase equity shares in the asset. 

Trading: Soon after the IPO closes, the property begins trading without restrictions on the LEX Alternative Trading System (ATS).

Here’s how you can interact with the properties during these phases:

Coming Soon: The way we’ve structured our securities allows us to provide investors with information about the asset before the securities are qualified by the SEC. This means you can do your research well before the IPO opens to determine whether the asset is of interest to you. This process is called “testing the waters.” If you think you might want to purchase shares during the IPO, you can submit a non-binding

Indication of Interest (IOI). An IOI is not a purchase order, and no money can change hands at this stage.

Initial Public Offering: After our securities are qualified by the SEC, the IPO can begin. Shares are offered on a first come, first served basis and the price at the time of IPO is always $250 (we factor in the valuation of the asset by adjusting the number of shares in the offering, not the price per share). The IPO period stays open until all shares have been purchased (which we call being fully subscribed), or 40 days - whichever is shorter. 

If you had previously submitted an IOI, you’ll need to return to LEX to complete your purchase once the IPO begins.

Trading: The trading period begins soon after the IPO is complete. When an asset is trading, investors can put in orders to buy more shares, or can sell their existing shares. 

Our Alternative Trading System (the “LEX ATS”) is powered by Nasdaq and matches orders in real time between 9:30 AM and 4:00 PM, Monday through Friday. The LEX ATS currently only supports limit orders, meaning you must enter the highest price you’re willing to pay to buy the shares, or the lowest price you’re willing to sell them for.  

While the LEX ATS has been specifically designed and built to encourage liquidity, and trading is legally permitted, there is no guarantee that you will be able to find a willing buyer at the time you wish to sell your position.  

During the trading period, shareholders may receive quarterly distributions of their proportionate share of the building’s income. Distributions are not guaranteed. 


Wednesday, September 15, 2021

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All investment services are offered by LEX Markets LLC, 
Member FINRA/SIPCBrokerCheck profile here. Additional important disclosures are available here

LEX Markets offers unlisted equity securities issued by commercial real estate owners. Investments in real estate are subject to risks including fluctuations in rental rates, changes in the terms and availability of other financing supporting the property, changes in taxes, environmental and zoning laws, reduced tenant demand, and others. Investors must be prepared to bear the economic risk of such an investment for an indefinite period of time and be able to withstand a total loss of their investment.  

The information contained on this website has been prepared without reference to any particular user’s investment requirements or financial situation. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a securities offering. Please consider carefully the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest. This website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Such offers can only be made pursuant to a qualified investor receiving official offering documentation where lawful under applicable law. Please consider the Offering Circular and subscription documents for each security carefully before making an investment decision. They contain important information regarding the risks, transaction costs, and other expenses related to the investments which you should consider in light of your investment objectives.

Any link or reference herein to financial publications is for INFORMATIONAL PURPOSES ONLY. LEX Markets does not endorse, favor, or recommend  any third-party website, commercial product, process ,or service. LEX Markets has provided third party links to bring to your attention the mention of LEX Markets in the news. No consideration was paid by LEX Markets or its affiliates for any news coverage. LEX Markets cannot verify the accuracy, completeness, or quality of the content of any third party website, or any products or services offered via those websites. To the extent any linked third party website collects personal information from end-users, LEXMarkets cannot be held liable for such commercial activities.

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The LEX-Markets.com web site and all hosted intellectual property is owned by LEX Markets Corp.