Unique financing model allows individuals to publicly trade shares of prime commercial real estate, opening the market to individual investors
Manzo Freeman Development (MFD), a privately-owned commercial real estate firm, announced today it has engaged LEX Markets (LEX), a commercial real estate marketplace, to lead the initial public offering (IPO) for The Landing at One Chestnut, a mixed-use commercial mill property located in Nashua, New Hampshire. LEX is pioneering a new approach to real estate investing, by turning individual buildings into public stocks. Through its partnership with LEX, MFD is expanding access to the kinds of expertly managed, well-leased commercial properties that were previously only available to a select few well-connected real estate investors.
The Landing at One Chestnut IPO is open to all U.S. investors. Investors can benefit from the favorable tax treatment associated with direct ownership of real estate and will receive their proportional share of any cash distributions alongside the owner, with no promotes. This is a day-one cash flowing deal with distributions scheduled to be delivered within the first quarter of investment. Once the initial offering period ends, shares can be held in any brokerage account. The Landing at One Chestnut will be assigned a ticker symbol and trade on the LEX Alternative Trading System (LEX ATS) and OTC, just like any other stock. Shares will trade during standard market hours.
“The Landing at One Chestnut IPO is a signal of our continued and strong momentum this year,” said Drew Sterrett, co-founder and co-CEO of LEX. “We are excited to partner with the esteemed Manzo Freeman Development team and to offer such a unique investment to the public in a time where demand for industrial property is soaring.”
Located less than an hour from Boston, The Landing at One Chestnut is a mixed-use commercial mill property owned and operated for over 4.5 years by MFD, an experienced team with a track record of success. Built in 1915, the 430,804 SF mill building has been improved to accommodate modern warehouse, light manufacturing, lab, distribution, and self-storage uses.
“The Landing at One Chestnut is a key part of our growing portfolio, and we’re excited to share this investment opportunity with the public through our partnership with LEX,” said Michael K. Manzo, managing partner and president of Manzo Freeman Development. “We’ve made substantial improvements to the property over the years, continue to attract a strong diverse tenant base, and believe this building – located in a prime downtown location – is positioned for continued value creation.”
The building’s proximity to Boston and its central New England location appeals to tenants as well as to investors. The Landing at One Chestnut is over 82% occupied as of September 30th, with continued demand for commercial space from new prospects as well as existing credit Tenants expanding their businesses. According to a 2022 third-quarter report from Colliers, New Hampshire and the Nashua area have low industrial vacancy rates, indicating a strong market for continued leasing at the Landing at One Chestnut.
The Landing at One Chestnut has more than 50 tenants, including the four largest that occupy more than 57% of the net rentable space and have an average tenure at the property of over 25 years. The largest tenant, Extra Space Storage (NYSE: EXR), is one of the country’s largest self-storage operators and has been located at the property for over 30 years.
“The MFD team has spent a number of years repositioning the asset, providing the upgrades that our tenants need to grow and succeed,” said Joe Freeman, CEO, and Director of Business Development. “Investors in the offering are going to benefit from our hard work as the building is well-leased to a strong roster of local and national companies that value the asset’s location and functionality. Our diverse tenant mix (i.e., lab, light manufacturing, distribution, etc.) positions us very well in this market hedging against one industry’s performance impacting the Building. The future is bright at the Landing at One Chestnut.”
About Manzo Freeman Development
Manzo Freeman Development is a privately-owned commercial real estate firm with offices in each of their portfolio mill properties including Nashua (NH), Hudson (MA), and Lawrence (MA). MFD leverages over 40 years of direct real estate acquisition and development experience, in depth local market knowledge, strong reputation, and track record of success. MFD is a vertically integrated real estate acquisition development and management company with a full suite of services. The MFD team is highly experienced in acquisitions, due diligence, permitting, redevelopment, construction project management, property management, asset management and accounting/bookkeeping/reporting and leasing. MFD prides itself in building community and delivering Class A service in markets where businesses do not expect it, thus creating more durable, long-term tenant relationships. For more information, please visit https://www.manzofreeman.com/.
About LEX
LEX is a new way to invest in real estate. LEX turns individual buildings into public stocks. Any U.S. investor can open a LEX account, browse opportunities in various asset classes such as multifamily and office buildings, and buy shares of individual buildings. As shareholders, investors can earn income quarterly and can trade their shares on our public market whenever they need to exit (liquidity not guaranteed). Each building on LEX has a ticker symbol and stock chart. LEX opens up direct and tax-advantaged ownership in an asset class that has previously been inaccessible to most investors. For more information, please visit www.lex-markets.com.
