Thank you for investing with LEX. We started LEX with a mission to empower wealth creation by solving real estate’s access and liquidity problems. We’re grateful that you took interest in our approach to real estate investing and let LEX play a role in your portfolio.
Unfortunately, LEX is shutting down our brokerage platform due to financial constraints. The LEX brokerage platform will be supported until it ceases operations on February 22, 2023.
LEX does not directly hold any customer deposits. All cash deposits and securities associated with your account are held at Apex Clearing. Details on how to access and transfer out your cash and securities are below.
TESLU and GWGYU are independent companies, not owned by LEX. Each of these shares still represents a unit of a publicly traded partnership that has a direct equity ownership in the underlying real estate building.
However, one function of LEX's business is to provide third-party support to these issuers to enable them to comply with their SEC reporting requirements. Once LEX ceases operations on February 22, 2023, the issuers may in accordance with SEC regulations choose to withdraw from their respective reporting requirements, and consequently, prohibit secondary trading in their securities. In this case, liquidity will be severely impacted. Any shares you own would likely lose their “publicly traded partnership” status, and take on the character of more traditional private, illiquid real estate partnership interests.
Holders of TESLU and GWGYU units will continue to receive the benefits afforded to them under the corporate governance documents, including the right to receive pro rata share of any distributions, both in the case of cashflow-driven distributions or in an outright sale of the underlying asset.
You can continue to place sell orders on the LEX brokerage platform until it ceases operations on February 22, 2023. After that, you can transfer your securities to another brokerage as described below. We expect liquidity to be severely limited, and as described above, the securities will likely become ineligible for trading at some point in the next 12 months.
Neither LEX nor any of its affiliates provide investment, tax, or legal advice. LEX does not provide any recommendation with respect to any decision to sell or hold your securities and any such decision should be made by you in consultation with your own advisers.
The ongoing Reg A offering for the Landing At One Chestnut has been canceled and withdrawn. You can withdraw any cash that was used to place these orders. If you deposited funds within the last few business days, you may have to wait up to 5-7 business days from the date of the deposit to withdraw your funds.
After February 22, 2023 if you haven’t already transferred out all of your assets, you’ll automatically receive an email from Apex with instructions to access your account via their portal.
If you are still holding an account at Apex after April 25, 2023 (60 days following February 22, 2023), Apex will begin charging a $15/month account maintenance fee.
To transfer your LEX account with any open position(s) and cash to a different brokerage firm, you will need to initiate an Outgoing ACATS Transfer with the receiving firm. Simply, an ACATS transfer seamlessly allows you to move all cash and securities in your current account to a new account at a different brokerage firm. ACATS fees will be waived until February 22, 2023.
First, you'll need to open a like-account at the brokerage firm of your choice that you'd like to move to, if you don’t already have one. We suggest you confirm that the firm supports “OTC Securities'' like TESLU and GWYGU. Once the account is open, contact your brokerage firm and indicate that you want to effect an ACATS Transfer–they will understand this request and can advise on next steps. When you successfully submit an ACATS with your receiving firm, they will process it for you, kicking off the transfer process. It's important to note that ACATS Transfers can take 7-10 business days to complete.
All accounts not transferred to another brokerage firm or not fully withdrawn via ACH will transfer to our clearing firm, Apex Clearing Corporation ("Apex"), and thereafter they will serve as your broker effective after February 22, 2023. You may still effect account transfers via ACATS and withdraw any cash balance from Apex. Please refer to the FAQ below for more information.
ACATS Transfers requests initiate from the receiving firm and are subject to a $75 Outgoing ACATS Transfer Fee charged by Apex Clearing Corporation. ACATS fees will be waived until February 22, 2023. ACATS transfers initiated after February 22, 2023 will be subject to the $75 fee, and as a result, your account must have $75 or more in available cash to facilitate the transfer.
Important: You will not be able to follow these steps until after February 22nd.
For questions regarding your (former) LEX account, please reach out to Apex's Broker Dealer Withdrawal (BDW) department at firstname.lastname@example.org.