LEX Markets

About LEX Markets

LEX Markets operates as a securities marketplace for commercial real estate, structured to transform individual buildings into publicly tradable stocks. The company was established in 2017 by brothers Drew and Dean Sterrett, along with Jesse Daugherty. The idea originated from the brothers' frustration as non-accredited investors unable to directly invest in high-value commercial real estate properties typically accessible only to institutions. Drew Sterrett's background in real estate private equity provided firsthand insight into market inefficiencies and the lack of accessible recapitalization options for individual property deals.

The firm serves two primary client types: commercial real estate owners and individual investors. For property owners, LEX provides a mechanism to raise capital by selling a minority equity stake in their assets without relinquishing operational control. For investors, including those who are non-accredited, the platform offers a way to purchase equity shares in specific, income-producing commercial properties, such as office and retail buildings. All offerings on the platform are qualified by the SEC under Regulation A, which permits fundraising up to $50 million from the general public. The business generates revenue by charging property owners a fee to list their deals and a quarterly fee of 0.25% based on the property's market value, which is deducted from investor distributions.

The core of LEX's service is its trading platform, which is powered by Nasdaq's Marketplace Services Platform technology. This allows the company to securitize individual commercial real estate assets, giving each property a unique stock ticker. The process begins with an Initial Public Offering (IPO) for a property, where shares can be purchased, often starting at $100 or $250. Following the IPO, these shares can be traded on LEX's alternative trading system (ATS), providing a degree of liquidity not typically found in direct real estate investments. Investors can earn passive income through quarterly distributions from rental income, provided the property is profitable, and may also benefit from potential property appreciation. The platform provides investors with research, property financials, and tenant details to inform their investment decisions. A significant milestone was the IPO of 286 Lenox Avenue in Harlem, New York, which marked the platform's first offering open to all U.S. investors.