Business

Harlem office building is first to go public in NYC

A small office building in Harlem was just the first lone building in New York City to go public.

The otherwise modest 18,759 square foot retail and office property at 286 Lenox Ave. — whose three tenants include a branch of Wells Fargo near the corner of West 125th Street — quietly began trading in the over-the-counter markets last week.

It’s the first time a building in New York has been securitized and offered to all investors through the secondary market, according to Jesse Daugherty, co-founder and co-CEO of Lex Markets, which handled the offering.

“The stock has been trading since Wednesday, but we have not disclosed this at all, other than informing our users that trading is open, which is what we were obligated to do,” Daugherty told The Post. “We … have decided to complete the IPO to allow investors to begin trading.”

As of Monday, the thinly traded stock, which trades under the ticker symbol TESLU, was recently up at $250, giving the building a market cap of more than $11 million.

After being offered at $250, the stock rose as high as $255 on Thursday and fell to $241 on Friday before returning to $250 on Monday afternoon. Just 57 shares were trading out of 7,133 shares outstanding as of early Monday afternoon.

According to the company, commercial property owners can use the Lex platform to raise capital by securitizing a portion of their property. This allows them to recapitalize their equity and raise cash while still receiving management fees. At the same time, citizens can invest in individual assets without being accredited investors.

Meanwhile, shares of a 600-space parking garage in Portland, Maine, which began operating in March 2021 under the ticker GWYGU, are also down after falling to a current price of 241 right after the IPO peaked at $253.60 $ was traded. Lex is also preparing the offering of shares for a retail apartment building in Seattle.

https://nypost.com/2022/04/04/harlem-office-building-becomes-first-in-nyc-to-go-public/ Harlem office building is first to go public in NYC

DUSTIN JONES

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