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. All securities issued under Regulation A must be qualified by the SEC before they can be sold. Qualification is not an approval or endorsement of the offering.

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 until the termination date indicated in the offering circular.

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 they can sell their existing shares. Liquidity is not guaranteed.

Our Alternative Trading System (the “LEX ATS”) 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. 

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_{LEX Markets does not provide tax, legal or accounting advice. Potential investors are encouraged to consult with professional tax, legal, and financial advisors before making any investment into a securities offering. This investment may not be suitable for all investors. Distributions and liquidity not guaranteed. Property performance and performance of property tenants not guaranteed. Diversification does not eliminate the risk of experiencing investment loss.}