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286 Lenox Partners LLC and Regal 286 Lenox LLC Financial Update

NEW YORK--(BUSINESS WIRE)-- 286 Lenox Partners LLC (TESLU) (the “Company”) (Ticker: TESLU, trading on the LEX Markets platform) today announced the status of its recent public offering, its assessment of NAV per Unit, and its expected distribution for the fiscal second quarter ending June 30, 2022. As more fully described below, the Company used the proceeds of its public offering to acquire an equity interest in Regal 286 Lenox LLC (the “Real Estate Operating Company”).

About 286 Lenox Avenue

The Real Estate Operating Company owns a 18,759 square foot mixed-use retail/office building located at 286 Lenox Avenue in central Harlem (the “Building”). The Building consists of three office floors and one retail floor and is 100% occupied by three tenants: Wells Fargo, Child Mind Institute, and Visiting Nurse Service of New York.

We had another great quarter at 286 Lenox Avenue (TESLU),” said Alexander Smith, Managing Partner of Regal Capital Acquisitions LLC, the building’s operating company. “The building has a stable mix of tenants, strong cash flow, and a great location. We are thrilled to have completed its groundbreaking IPO during Q1 and are poised for a distribution to shareholders later this summer. The market in Harlem remains strong, and we look forward to continuing to deliver value to our shareholders.”

286 Lenox Partners LLC Financial Highlights:

Expected distribution for the fiscal second quarter ending June 30, 2022

$1.94 per Unit

NAV per Unit as of March 31, 2022

$258.99

Status of Our Public Offering

The Company completed a public offering of its limited liability company units (the “Units”) on March 29, 2022 (“Offering”), pursuant to which it issued 7,133 Units for aggregate proceeds of $1,783,250. These offering proceeds were then contributed to the Real Estate Operating Company in exchange for a 40.65% interest in the Real Estate Operating Company (“Interest”).

As of March 30, 2022, the Company began trading on the LEX Markets platform pursuant to the LEX ATS Issuer Agreement under the ticker “TESLU.” The LEX Markets platform is comprised of (a) a front-end order management system that enables customers of LEX Markets LLC to research securities offered by LEX Markets and enter orders to buy or sell them, and (b) a matching engine that crosses buy and sell orders and reports trades to brokers for clearing and settlement and to the FINRA OTC Trade Reporting Facility. The matching engine is operated by LEX Markets LLC as an Alternative Trading System (ATS) in compliance with Regulation ATS and offers access to other FINRA-licensed broker dealers on a non-discriminatory basis.

Estimated Valuation of Property and Corresponding Net Asset Value Per Unit as of March 31, 2022

The Real Estate Operating Company’s Manager valued the Building at $11,300,000 at the time of the Offering (the “Valuation”). The Manager’s assessment of the Valuation was based both on an independent third-party appraisal of the Building and a valuation analysis conducted by the Manager based on market conditions and comparable sales.

The NAV per Unit is calculated by the Manager by taking the Valuation and reducing that amount by the outstanding principal balance of the Real Estate Operating Company’s existing indebtedness, as of the date of determination, multiplying the net amount by the percentage of Interest in the Real Estate Operating Company, and then dividing that number the total number of Units outstanding as of March 31, 2022. The Real Estate Operating Company is currently obligated to make monthly payments of interest and principal under its loan with TD Bank, N.A (“Loan”). Consequently, if the Real Estate Operating Company continues to meet its Loan payment obligations, the result will be a decrease in the outstanding principal balance of the Loan and a corresponding increase in the NAV per Unit, assuming no change to the Valuation.

The Manager has estimated that the NAV per Unit as of March 31, 2022, was $258.99.

Distribution Policy

The Company expects to receive a distribution from the Real Estate Operating Company, for the fiscal quarter ending June 30, 2022, which it will use to make a distribution to its unitholders. The Company anticipates being able to make a distribution for the fiscal quarter ending June 30, 2022, of $1.94 per Unit, net of expenses. On an annualized basis, this would equate to a distribution of $7.76 per Unit, or equivalent to an annual distribution rate of approximately 3%, net of expenses (principally the Platform Fee payable to LEX Markets LLC), based on the NAV per Unit of $258.99, as of March 31, 2022. The anticipated distribution to be made by the Real Estate Operating Company for the fiscal quarter ending June 30, 2022, assumes both the rental occupancy and rental revenues based on the leases in place at the Building as of December 31, 2021, the date on which the Real Estate Operating Company made its most recent distribution, and the Real Estate Operating Company’s historical operating costs remain constant during the second fiscal quarter. Because the expected distribution is based on the assumptions set forth above, no assurance can be given that the anticipated amount of the distributions, or any distributions, will be paid.

Non-U.S. Withholding Information

The following statement is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b): Brokers and nominees should treat one hundred percent (100%) of 286 Lenox Partners LLC’s distributions to non-U.S. investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, such distributions to non-U.S. investors are subject to federal income tax withholding at the highest applicable effective tax rate.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction.

Forward-looking Statements

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on 286 Lenox Partners LLC’s (“Lenox Partners”) current expectations and beliefs concerning future developments and their potential effect on it. While the Manager believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting the will be those that it anticipates. Forward-looking statements involve significant risks and uncertainties (some of which are beyond Lenox Partners’ control) including, without limitation, the impact, and duration of the COVID-19 pandemic, uncertainty around the timing of an economic recovery in the United States which will impact the real estate sector, uncertainty around the impact of the COVID-19 pandemic to our tenants and their corresponding ability to perform their obligations, uncertainty around the impact and duration of federal, state and municipal regulations relating to the COVID-19 pandemic, and assumptions that could cause actual results to differ materially from the 286 Lenox Partners’ historical experience and present expectations or projections.

About Regal Capital Acquisitions LLC

Regal Acquisitions is a real estate investment firm born out of a family office with a deep history of ownership in New York City. The founders of our firm have decades of experience successfully owning and operating retail, hospitality, industrial, and office assets in Manhattan as well as the outer boroughs. Regal Acquisitions serves as the managing member of 286 Lenox Partners LLC (TESLU) and Regal 286 Lenox LLC.

For more information, please visit www.regalacquisitions.com

Source: 286 Lenox Partners LLC (TESLU)

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