Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Entity Registrant Name | 'LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. | ' |
Entity Central Index Key | '0001296884 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,600,000 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment property at cost | $458,189 | $353,405 |
Less accumulated depreciation | -34,174 | -27,111 |
Net investment property | 424,015 | 326,294 |
Investment in unconsolidated affiliated real estate entity | 10,550 | ' |
Cash and cash equivalents | 38,687 | 98,805 |
Marketable securities, available for sale | 145,505 | 186,430 |
Restricted escrows | 39,550 | 44,639 |
Tenant accounts receivable (net of allowance for doubtful accounts of $531 and $260, respectively) | 3,745 | 2,656 |
Mortgages receivable | 5,341 | 23,876 |
Intangible assets, net | 3,172 | 3,794 |
Interest receivable from related parties | 281 | 2,230 |
Prepaid expenses and other assets | 17,878 | 14,342 |
Assets held for sale | 16,739 | 16,574 |
Total Assets | 705,463 | 719,640 |
Liabilities and Stockholders' Equity | ' | ' |
Mortgages payable | 294,584 | 208,600 |
Notes payable | 41,783 | 63,293 |
Accounts payable, accrued expenses, and other liabilities | 40,508 | 42,678 |
Due to sponsor | 1,608 | 1,021 |
Loans due to affiliates | ' | 2,340 |
Tenant allowances and deposits payable | 1,641 | 1,434 |
Distributions payable | 4,827 | 5,305 |
Deferred rental income | 1,161 | 857 |
Acquired below market lease intangibles, net | 1,342 | 1,552 |
Liabilities held for sale | 7,076 | 7,404 |
Total Liabilities | 394,530 | 334,484 |
Commitments and contingencies (See Note 13) | ' | ' |
Company's Stockholders' Equity: | ' | ' |
Preferred shares, $0.01 par value, 10,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.01 par value; 60,000 shares authorized, 25,533 and 30,049 shares issued and outstanding, respectively | 255 | 300 |
Additional paid-in capital | 218,655 | 266,115 |
Accumulated other comprehensive income | 31,920 | 50,207 |
Accumulated surplus | 28,645 | 27,877 |
Total Company stockholders' equity | 279,475 | 344,499 |
Noncontrolling interests | 31,458 | 40,657 |
Total Stockholders' Equity | 310,933 | 385,156 |
Total Liabilities and Stockholders' Equity | $705,463 | $719,640 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Tenant accounts receivable, allowance for doubtful accounts | $531 | $260 |
Preferred shares, par value | $0.01 | $0.01 |
Preferred shares, shares authorized | 10,000 | 10,000 |
Preferred shares, shares issued | ' | ' |
Preferred shares, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 60,000 | 60,000 |
Common stock, shares issued | 25,533 | 30,049 |
Common stock, shares outstanding | 25,533 | 30,049 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Rental income | $16,941 | $9,462 | $42,805 | $25,887 |
Tenant recovery income | 1,385 | 1,266 | 4,035 | 4,097 |
Other service income | 2,060 | 1,633 | 6,959 | 6,217 |
Total revenues | 20,386 | 12,361 | 53,799 | 36,201 |
Expenses: | ' | ' | ' | ' |
Property operating expenses | 12,116 | 6,653 | 30,779 | 18,203 |
Real estate taxes | 1,274 | 1,050 | 3,587 | 3,057 |
General and administrative costs | 3,326 | 1,645 | 8,549 | 4,938 |
Depreciation and amortization | 3,342 | 2,375 | 8,532 | 7,009 |
Total operating expenses | 20,058 | 11,723 | 51,447 | 33,207 |
Operating income | 328 | 638 | 2,352 | 2,994 |
Other income, net | 278 | 406 | 1,308 | 1,146 |
Mark to market adjustment on derivative financial instruments | 4,670 | 1,819 | 3,160 | -11,245 |
Interest and dividend income | 1,668 | 3,724 | 8,593 | 10,956 |
Interest expense | -4,473 | -3,163 | -12,247 | -9,412 |
(Loss)/gain on sale of marketable securities (includes (gain)/loss of ($21), $11, ($11,133) and $22, respectively, accumulated other comprehensive income reclassifications) | -14 | 490 | 13,803 | 92 |
Bargain purchase gain | ' | 4,800 | ' | 4,800 |
Gain on disposition of unconsolidated affiliated real estate entities | ' | ' | 1,200 | 30,287 |
Income/(loss) from investments in unconsolidated affiliated real estate entities | 142 | 182 | -1,656 | 353 |
Net income from continuing operations | 2,599 | 8,896 | 16,513 | 29,971 |
Net income from discontinued operations | 422 | 2,265 | 980 | 2,746 |
Net income | 3,021 | 11,161 | 17,493 | 32,717 |
Less: net loss/(income) attributable to noncontrolling interests | 46 | -600 | -1,438 | -3,457 |
Net income attributable to Company's common shares | $3,067 | $10,561 | $16,055 | $29,260 |
Basic and diluted net income per Company's common share: | ' | ' | ' | ' |
Continuing operations | $0.09 | $0.27 | $0.52 | $0.89 |
Discontinued operations | $0.02 | $0.08 | $0.03 | $0.09 |
Net income per Company?s common share, basic and diluted | $0.11 | $0.35 | $0.55 | $0.98 |
Weighted average number of common shares outstanding, basic and diluted | 27,395,000 | 29,958,000 | 29,213,000 | 29,903,000 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' |
Reclassification adjustment for (gain)/loss included in net income/(loss) | ($21) | $11 | ($11,133) | $22 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' |
Net income | $3,021 | $11,161 | $17,493 | $32,717 |
Other comprehensive (loss)/income: | ' | ' | ' | ' |
Unrealized (loss)/gain on available for sale securities | -8,251 | -648 | -8,631 | 22,315 |
Reclassification adjustment for (gain)/loss included in net income/(loss) | -21 | 11 | -11,133 | 22 |
Other comprehensive (loss)/income | -8,272 | -637 | -19,764 | 22,337 |
Comprehensive (loss)/income | -5,251 | 10,524 | -2,271 | 55,054 |
Less: Comprehensive loss/(income) attributable to noncontrolling interests | 660 | -402 | 39 | -4,948 |
Comprehensive (loss)/income attributable to Company's common shares | ($4,591) | $10,122 | ($2,232) | $50,106 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Surplus [Member] | Total Noncontrolling Interests [Member] |
In Thousands, except Share data | ||||||
BALANCE, December 31, 2013 at Dec. 31, 2012 | $385,156 | $300 | $266,115 | $50,207 | $27,877 | $40,657 |
BALANCE, December 31, 2013, shares at Dec. 31, 2012 | ' | 30,049 | ' | ' | ' | ' |
Net income | 17,493 | ' | ' | ' | 16,055 | 1,438 |
Other comprehensive loss | -19,764 | ' | ' | -18,287 | ' | -1,477 |
Distributions declared | -15,287 | ' | ' | ' | -15,287 | ' |
Distributions paid to noncontrolling interests | -7,751 | ' | ' | ' | ' | -7,751 |
Contributions received from noncontrolling interests | 1,707 | ' | ' | ' | ' | 1,707 |
Redemption and cancellation of shares | -52,478 | -4,975 | -52,428 | ' | ' | ' |
Redemption and cancellation of shares, shares | ' | 50 | ' | ' | ' | ' |
Shares issued from distribution reinvestment program | 4,973 | 459 | 4,968 | ' | ' | ' |
Shares issued from distribution reinvestment program, shares | ' | 5 | ' | ' | ' | ' |
Notes receivable issued to non controlling interests | -697 | ' | ' | ' | ' | -497 |
Redemption of Series A Preferred Units | -43,516 | ' | ' | ' | ' | -43,516 |
Repayment of notes receivable from non controlling interests | 41,097 | ' | ' | ' | ' | 41,097 |
BALANCE, March 31, 2013 at Sep. 30, 2013 | $310,933 | $25,533 | $218,655 | $31,920 | $28,645 | $31,458 |
BALANCE, March 31, 2013, shares at Sep. 30, 2013 | ' | 255 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $17,493 | $32,717 |
Less net income - discontinued operations | 980 | 2,746 |
Net income - continuing operations | 16,513 | 29,971 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 8,532 | 7,009 |
Mark to market adjustment on derivative financial instrument | -3,160 | 11,245 |
Gain on sale of marketable securities | -13,803 | -92 |
Gain on disposition of unconsolidated affiliated real estate entities | -1,200 | -30,287 |
Bargain purchase gain | ' | -4,800 |
Loss/(income) from investments in unconcolidated affiliated real estate entities | 1,656 | -353 |
Other non-cash adjustments | -1,423 | -1,546 |
Changes in assets and liabilities: | ' | ' |
Decrease in prepaid expenses and other assets | 3,285 | 1,207 |
Increase in tenant and other accounts receivable | -1,225 | -454 |
Increase in tenant allowance and security deposits payable | 389 | 36 |
Increase in accounts payable and accrued expenses | 3,304 | 2,486 |
Decrease/(increase) in due to Sponsor | 587 | -325 |
Decrease/(increase) in deferred rental income | 304 | -413 |
Net cash provided by operating activities - continuing operations | 13,759 | 13,684 |
Net cash provided by operating activities - discontinued operations | 1,394 | 1,549 |
Net cash provided by operating activities | 15,153 | 15,233 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of investment property, net | -112,718 | -16,875 |
Purchase of noncontrolling interest in a subsidiary | ' | -560 |
Purchase of marketable securities | -5,683 | -6,983 |
Payments on note payable | -2,340 | -60 |
Contributions to investment in unconsolidated affiliated real estate entities | -12,639 | -106 |
Collections on mortgages receivable | 19,592 | 85 |
Proceeds from sale of marketable securities | 40,647 | 15,794 |
Proceeds from disposition of investments in unconsolidated affiliated real estate entities | 1,200 | ' |
Distribution from investments in unconsolidated affiliated real estate entities | ' | 146 |
Deposit for purchase of real estate, net of refunds | 2,250 | 2,400 |
Release/(funding) of restricted escrows | 4,454 | -21,141 |
Net cash used in investing activities - continuing operations | -65,237 | -27,300 |
Net cash (used in)/provided by investing activities - discontinued operations | -449 | 7,114 |
Net cash used in investing activities | -65,686 | -20,186 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Mortgage payments | -2,039 | -13,451 |
Payment of loan fees and expenses | -1,170 | -2,616 |
Redemption and cancellation of common stock | -52,478 | -3,014 |
Proceeds from mortgage financings | 88,022 | 12,000 |
Net payments on notes payable | -21,510 | 18,647 |
Notes receivable from noncontrolling interests | -697 | ' |
Redemption of Series A Preferred Units | -43,516 | ' |
Repayment of notes receivable from non controlling interests | 41,097 | ' |
Contributions received from noncontrolling interests | 1,707 | 6,732 |
Contribution to discontinued operations | ' | 384 |
Distributions paid to noncontrolling interests | -7,751 | -5,944 |
Distributions paid to Company's stockholders | -10,792 | -10,731 |
Net cash (used in)/provided by financing activities - continuing operations | -9,127 | 2,007 |
Net cash used in financing activities - discontinued operations | -458 | -7,135 |
Net cash used in by financing activities | -9,585 | -5,128 |
Net change in cash and cash equivalents | -60,118 | -10,081 |
Cash and cash equivalents, beginning of period | 98,805 | 31,525 |
Cash and cash equivalents, end of period | 38,687 | 21,444 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 10,050 | 8,900 |
Distributions declared | 15,287 | 15,721 |
Value of shares issued from distribution reinvestment program | 4,973 | 5,259 |
Issuance of note payable in exchange for remaining interest in CP Boston Joint Venture | ' | 2,400 |
Non-cash purchase of investment property | 4,164 | 1,713 |
Satisfaction of Promissory Note in exchange for Courtyard - Parsippany | ' | $9,300 |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization [Abstract] | ' | |
Organization | ' | |
1 | Organization | |
Lightstone Value Plus Real Estate Investment Trust, Inc., a Maryland corporation ("Lightstone REIT") was formed on June 8, 2004 (date of inception) and subsequently qualified as a real estate investment trust ("REIT") during the year ending December 31, 2006. Lightstone REIT was formed primarily for the purpose of engaging in the business of investing in and owning commercial and residential real estate properties located throughout the United States. | ||
Lightstone REIT is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business is and will be conducted through Lightstone Value Plus REIT, L.P., a Delaware limited partnership formed on July 12, 2004 (the "Operating Partnership"), in which Lightstone REIT as the general partner, held a 98.0% interest as of September 30, 2013. | ||
The Lightstone REIT and the Operating Partnership and its subsidiaries are collectively referred to as the ''Company'' and the use of ''we,'' ''our,'' ''us'' or similar pronouns refers to the Lightstone REIT, its Operating Partnership or the Company as required by the context in which such pronoun is used. | ||
The Company is managed by Lightstone Value Plus REIT, LLC (the "Advisor"), an affiliate of the Lightstone Group, Inc., under the terms and conditions of an advisory agreement. The Lightstone Group, Inc. previously served as the Company's sponsor (the "Sponsor") during its initial public offering, which closed on October 10, 2008. The Sponsor and Advisor are majority owned and controlled by David Lichtenstein, the Chairman of the Company's board of directors (the "Board") and its Chief Executive Officer. | ||
The Company's stock is not currently listed on a national securities exchange. The Company may seek to list its stock for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. In the event the Company does not obtain listing prior to October 10, 2018 (the tenth anniversary of the completion of its initial public offering,) its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. | ||
As of September 30, 2013, on a collective basis, the Company (i) wholly owned and consolidates the operating results and financial condition of 5 retail properties containing a total of approximately 0.9 million square feet of retail space, 15 industrial properties containing a total of approximately 1.3 million square feet of industrial space, 6 multi-family residential properties containing a total of 1,585 units, and 14 hotel hospitality properties containing a total of 1,850 rooms, (ii) majority owned and consolidates the operating results and financial condition of 1 residential development project, and (iii) owned an interest accounted for under the equity method of accounting in 1 office property containing a total of approximately 1.1 million square feet of office space. All of the Company's properties are located within the United States. As of September 30, 2013, the retail properties, the industrial properties, the multi-family residential properties and the office property were 84.0%, 69.4%, 94.4% and 81.4% occupied based on a weighted-average basis, respectively. Its hotel hospitality properties' average revenue per available room ("Rev PAR") was $64.27 and occupancy was 68.8%, respectively for the nine months ended September 30, 2013. | ||
During the third quarter of 2013, the Company's two Extended Stay Hotels located in Houston, Texas (the "Houston Extended Stay Hotels") met the criteria to be classified as held for sale. The operating results of the Houston Extended Stay Hotels are classified as discontinued operations in the Consolidated Statements of Operations for all periods presented. Additionally, the associated assets and liabilities of the Houston Extended Stay Hotels are classified as held for sale in the Consolidated Balance Sheets for all periods presented. | ||
On July 30, 2012, the Company disposed of the Brazos Crossing Power Center ("Brazos"), a retailing shopping center located in Lake Jackson, Texas. The operating results of Brazos through its date of disposition have been classified as discontinued operations in the consolidated statements of operations. | ||
Noncontrolling Interests | ||
The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership, (ii) notes receivable from noncontrolling interests and (iii) certain interests in consolidated subsidiaries. The units include SLP units, limited partner units, Series A Preferred Units and Common Units. The noncontrolling interests in consolidated subsidiaries include ownership interests in Pro-DFJV Holdings LLC ("PRO"), LVP Rego Park, LLC (the "Rego Park Joint Venture"), 50-01 2nd St Associates LLC (the "2nd Street Joint Venture"), LVP CY Baton Rouge Holdings LLC ("CY Baton Rouge"), LVP RI Baton Rouge Holdings LLC, ("RI Baton Rouge"), and LVP FFI Jonesboro Holdings LLC ("FFI Jonesboro"). | ||
Partial Redemption of Series A Preferred Units and Partial Repayment of Notes Receivable due from Noncontrolling Interests | ||
On September 30, 2013, as a result of various agreements (collectively, the "Series A Agreement") between and amongst (i) the Operating Partnership and certain of its subsidiaries and affiliates (the "Operating Partnership Parties") and (ii) Arbor Mill Run JRM, LLC, a Delaware limited liability company ("Arbor JRM"), Arbor National CJ, LLC, a New York limited liability company ("Arbor CJ"), Prime Holdings LLC, a Delaware limited liability company ("AR Prime") TRAC Central Jersey LLC, a Delaware limited liability company ("TRAC"), Central Jersey Holdings II, LLC, a New York limited liability company ("Central Jersey") and JT Prime LLC, a Delaware limited liability company ("JT Prime" and collectively, the "Contributing Parties") and certain of their subsidiaries and affiliates (collectively, the "Series A Parties"), the Operating Partnership redeemed an aggregate 43,516 Series A Preferred Units, held by the Contributing Parties, at their liquidation preference of approximately $43.5 million and agreed to extend the redemption of the aggregate remaining outstanding 50,100 Series A Preferred Units, held by the Contributing Parties, at their liquidation preference of approximately $50.1 million to January 2, 2014. Furthermore, the Contributing Parties simultaneously repaid approximately $41.1 million of notes receivable (the "Contributing Parties Loans") representing the proportionate share of total loans issued to the Contributing Parties which secured by their Series A Preferred Units and Common Units. As a result the remaining outstanding notes receivable due from the Contributing Parties was approximately $47.4 million, which must be repaid in full upon redemption of the remaining outstanding Series A Preferred Units. | ||
Pursuant to the terms of the Series A Agreement, the Series A Parties provided a full release to the Operating Partnership Parties for any and all claims, both asserted or unasserted, through September 30, 2013. However, the release does not affect the rights of the Contributing Parties in respect of any subsequent claims relating to their remaining outstanding Common Units and Series A Preferred Units. Additionally, the Series A Preferred Units, which were entitled to receive cumulative preferential distributions equal to an annual rate of 4.6316%, if and when declared, are no longer be entitled to distributions for periods subsequent to June 26, 2013 and the Contributing Parties Loans, which provided for interest payable semi-annually at a annual rate of 4.00%, no longer accrue interest for periods subsequent to June 26, 2013. The Series A Preferred Units initially had no mandatory redemption or maturity date and were not redeemable by the Operating Partnership prior to June 26, 2013. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |
Sep. 30, 2013 | ||
Summary of Significant Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
2 | Summary of Significant Accounting Policies | |
Basis of Presentation | ||
The consolidated financial statements include the accounts of the Lightstone REIT and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). All inter-company balances and transactions have been eliminated in consolidation. | ||
The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus Real Estate Investment Trust, Inc. and its Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | ||
The consolidated balance sheet as of December 31, 2012 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. | ||
The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. | ||
Reclassifications | ||
Certain prior period amounts may have been reclassified to conform to the current year presentation. | ||
New Accounting Pronouncements | ||
The Company has determined that no new accounting pronouncement issued or effective during the period had or is expected to have a material impact on the financial statements. |
Gain_on_Disposition_of_Unconso
Gain on Disposition of Unconsolidated Affiliated Real Estate Entities | 9 Months Ended | ||
Sep. 30, 2013 | |||
Gain On Disposition Of Unconsolidated Affiliated Real Estate Entities [Abstract] | ' | ||
Gain on Disposition of Unconsolidated Affiliated Real Estate Entities | ' | ||
3 | Gain on Disposition of Unconsolidated Affiliated Real Estate Entities | ||
During the first quarter of 2013, the Company received an additional $1.2 million related to the 2012 disposition of its ownership interest in Grand Prairie Holdings LLC ("GPH") resulting from the satisfaction of certain conditions and recognized a gain on disposition of unconsolidated affiliated real estate entities in its consolidated statements of operations. See Note 13 for additional information. | |||
During the first quarter of 2012, certain equity interests received as part of the consideration in connection with the 2010 disposition of the Company's ownership interests in Prime Outlets Acquisition Company ("POAC") and Mill Run LLC ("Mill Run") were released from escrow because of the satisfaction of certain conditions and the Company recognized a previously deferred gain of $30.3 million in its consolidated statements of operations. |
Investments_in_Unconsolidated_
Investments in Unconsolidated Affiliated Real Estate Entities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments in Unconsolidated Affiliated Real Estate Entities [Abstract] | ' | ||||||||||||||||
Investments in Unconsolidated Affiliated Real Estate Entities | ' | ||||||||||||||||
4 | Investments in Unconsolidated Affiliated Real Estate Entities | ||||||||||||||||
The entities discussed below are or were partially owned by the Company. The Company accounts or accounted for these investments under the equity method of accounting as the Company exercises or exercised significant influence, but does not or did not control these entities. A summary of the Company's investment in unconsolidated affiliated real estate entity is as follows: | |||||||||||||||||
As of | |||||||||||||||||
Real Estate Entity | Date Acquired | Ownership | September 30, | 31-Dec-12 | |||||||||||||
% | 2013 | ||||||||||||||||
1407 Broadway Mezz II, LLC ("1407 Broadway") | 4-Jan-07 | 49 | % | $ | 10,550 | $ | - | ||||||||||
Total investment in unconsolidated affiliated real estate entity | $ | 10,550 | $ | - | |||||||||||||
1407 Broadway | |||||||||||||||||
The Company has a 49.0% ownership in 1407 Broadway, which has a sub-leasehold interest in a ground lease to an office building located at 1407 Broadway in New York, New York. During the second quarter of 2011, the Company's share of cumulative losses resulting from its ownership interest in 1407 Broadway brought the carrying value of its investment in 1407 Broadway to zero. Since the Company was not obligated to fund 1407 Broadway's deficits and the balance of the Company's investment in 1407 Broadway was zero, the Company suspended the recording of its portion of equity losses or earnings from 1407 Broadway until such time as the Company's investment in 1407 Broadway was greater than zero. | |||||||||||||||||
On March 11, 2013, 1407 Broadway completed a restructuring of its outstanding non-recourse mortgage note payable with a then outstanding principal balance of approximately $127.3 million with Swedbank AB. In connection with the restructuring, 1407 Broadway made a principal pay down of approximately $1.3 million, bringing the new loan balance to $126.0 million, and extended the maturity of the loan to January 12, 2023. Additionally, during the nine months ended September 30, 2013, 1407 Broadway's members made capital contributions aggregating $16.1 million, of which $13.5 million was placed into a capital reserve account with the lender pursuant to the terms of the restructuring. As a result of the Company's capital contributions which totaled $12.1 million, it commenced recording equity earnings in the first quarter of 2013. The Company's equity earnings for the nine months ended September 30, 2013 include (i) an adjustment to record previously unrecorded losses aggregating $5.2 million through December 31, 2012 and (ii) $3.6 million of earnings representing its pro rata share of 1407 Broadway's net income for the nine months ended September 30, 2013. | |||||||||||||||||
1407 Broadway Financial Information | |||||||||||||||||
The following table represents the unaudited condensed income statement for 1407 Broadway: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended | ||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenue | $ | 9,907 | $ | 9,521 | $ | 28,850 | $ | 27,795 | |||||||||
Property operating expenses | 7,674 | 7,444 | 21,690 | 20,432 | |||||||||||||
Depreciation and amortization | 1,494 | 1,459 | 4,269 | 4,298 | |||||||||||||
Operating income | 739 | 618 | 2,891 | 3,065 | |||||||||||||
Interest expense and other, net | (648 | ) | (1,037 | ) | (3,519 | ) | (3,074 | ) | |||||||||
Gain on debt extinguishment | - | - | 7,494 | - | |||||||||||||
Net income (loss) | $ | 91 | $ | (419 | ) | $ | 6,866 | $ | (9 | ) | |||||||
Company's share of net income/(loss) (49%)* | $ | 142 | $ | - | $ | (1,656 | ) | $ | - | ||||||||
* The nine months ended September 30, 2013 includes an adjustment of $5,210 for previously unrecorded losses. | |||||||||||||||||
The following table represents the unaudited condensed balance sheet for 1407 Broadway: | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Real estate, at cost (net) | $ | 111,003 | $ | 107,151 | |||||||||||||
Intangible assets | 296 | 441 | |||||||||||||||
Cash and restricted cash | 23,099 | 11,801 | |||||||||||||||
Other assets | 17,232 | 15,972 | |||||||||||||||
Total assets | $ | 151,630 | $ | 135,365 | |||||||||||||
Mortgage payable | $ | 126,000 | $ | 127,250 | |||||||||||||
Other liabilities | 13,571 | 19,774 | |||||||||||||||
Member capital/(deficit) | 12,059 | (11,659 | ) | ||||||||||||||
Total liabilities and members' capital/(deficit) | $ | 151,630 | $ | 135,365 | |||||||||||||
GPH | |||||||||||||||||
GPH was wholly owned by POAC through August 30, 2010. In connection with the 2010 disposition of its ownership interests in POAC and Mill Run, the Company retained its aggregate 40.0% ownership interest in GPH. The Operating Partnership and PRO owned a 25.0% and 15.0% membership interest in GPH, respectively. The Company's ownership interest was a non-managing interest, with certain consent rights with respect to major decisions. An affiliate of the Company's Sponsor was the majority owner and manager of GPH. Contributions, profits and cash distributions were allocated in accordance with each investor's ownership percentage. The Company accounted for its ownership interest in GPH in accordance with the equity method of accounting. | |||||||||||||||||
GPH, through subsidiaries, held various ownership interests in certain entities, including ownership interests in a entity that owns an outlet center located in Grand Prairie, Texas (the "Grand Prairie Outlet Center"). On December 4, 2012, GPH disposed of these interests and on December 17, 2012, GPH was merged into Marco II LP Units, LLC which simultaneously distributed the Marco II OP Units it held to its members. As a result, the Company no longer has any investment in GPH. | |||||||||||||||||
GPH Financial Information | |||||||||||||||||
The following table represents the unaudited condensed income statement for GPH for the period indicated: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2012 | 2012 | ||||||||||||||||
Operating Loss | $ | - | $ | - | |||||||||||||
Interest income and other, net | 27 | 151 | |||||||||||||||
Income from investment in unconsolidated affiliated entity | 363 | 435 | |||||||||||||||
Net income | $ | 390 | $ | 586 | |||||||||||||
Company's share of net income (40.0%) | $ | 156 | $ | 234 | |||||||||||||
Livermore Valley Holdings LLC ("LVH") | |||||||||||||||||
LVH was wholly owned by POAC through August 30, 2010. In connection with the 2010 disposition of its ownership interests in POAC and Mill Run, the Company retained its aggregate 40.0% ownership interest in LVH. The Operating Partnership and PRO owned 25.0% and 15.0% membership interests in LVH, respectively. The Company's ownership interest was a non-managing interest, with certain consent rights with respect to major decisions. An affiliate of the Company's Sponsor, was the majority owner and manager of LVH. Contributions, profit and cash distributions were allocated in accordance with each investor's ownership percentage. The Company accounted for its ownership interest in LVH in accordance with the equity method of accounting. | |||||||||||||||||
LVH, through subsidiaries, held various ownership interests in certain entities, including ownership interests in the entity that owns an outlet center located in Livermore Valley, California (the "Livermore Valley Outlet Center") and an entity that owns a parcel of land (the "Livermore Land Parcel") located adjacent to the Livermore Outlet Center. On December 4, 2012, LVH disposed of these interests and on December 17, 2012, LVH was merged into Marco II LP Units, LLC which simultaneously distributed the Marco II OP Units it held to its members. As a result, the Company no longer has any investment in LVH. | |||||||||||||||||
LVH Financial Information | |||||||||||||||||
The following table represents the unaudited condensed income statement for LVH for the period indicated: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||
Interest income and other, net | $ | 50 | $ | 214 | |||||||||||||
Income from investment in unconsolidated affiliated entity | 15 | 84 | |||||||||||||||
Net income | $ | 65 | $ | 298 | |||||||||||||
Company's share of net income (40.0%) | $ | 26 | $ | 119 | |||||||||||||
Acquisitions
Acquisitions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Acquisitions [Abstract] | ' | ||||||||||||||||
Acquisitions | ' | ||||||||||||||||
5 | Acquisitions | ||||||||||||||||
Florida Hotel Portfolio | |||||||||||||||||
On August 30, 2013, the Company, through subsidiaries, completed the portfolio acquisition of (i) a 126-room limited service hotel which operates as a Hampton Inn, located in Miami, Florida (the "Hampton Inn - Miami"), and (ii) a 104-room select service hotel which operates as a Hampton Inn & Suites, located in Fort Lauderdale, Florida (the "Hampton Inn & Suites - Fort Lauderdale", and collectively the "Florida Hotel Portfolio"), from certain limited liability companies controlled by the same seller, an unrelated third party. | |||||||||||||||||
The aggregate purchase price paid for the Florida Hotel Portfolio was approximately $30.8 million, net of $0.2 million of working capital adjustments. Additionally, in connection with the acquisition, our advisor received an acquisition fee equal to 2.75% of the contractual purchase price or approximately $853. | |||||||||||||||||
The acquisition was funded with available cash and $19.9 million from the Revolving Credit Facility. | |||||||||||||||||
We established a separate taxable REIT subsidiary ("TRS") for both the Hampton Inn - Miami and the Hampton Inn & Suites - Fort Lauderdale, respectively, which have each entered into operating lease agreements for each respective hotel. At closing, each TRS entered into a separate management agreement with a management company for the management of the respective hotel. Additionally, each respective TRS entered into a 15-year franchise agreement with Hampton Inns Franchise LLC, pursuant to which the Hampton Inn - Miami and the Hampton Inn & Suites - Fort Lauderdale, respectively, will continue to operate as a "Hampton Inn" and a "Hampton Inn & Suites," respectively, commencing on August 30, 2013. | |||||||||||||||||
The acquisition of the Florida Hotel Portfolio was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Florida Hotel Portfolio has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $5.4 million was allocated to land and improvements, $24.3 million was allocated to building and improvements, and $1.1 million was allocated to furniture and fixtures and other assets. | |||||||||||||||||
The aggregate capitalization rate for the Florida Hotel Portfolio as of the closing of the acquisition was approximately 9.4%. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the projected or budgeted net operating income based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | |||||||||||||||||
Arkansas Hotel Portfolio | |||||||||||||||||
On June 18, 2013, the Company, through LVP FFI Jonesboro Holdings LLC, a joint venture subsidiary of our Operating Partnership, and LVP Rogers Holdings LLC completed the portfolio acquisition of (i) a 95.0% ownership interest in a 83-room limited service hotel which operates as a Fairfield Inn & Suites by Marriott, located in Jonesboro, Arkansas (the Fairfield Inn - Jonesboro, and (ii) a 100.0% ownership interest in a 130-room select service hotel which operates as a Starwood Hotel Group Aloft Hotel, located in Rogers, Arkansas (the "Aloft - Rogers", and collectively, the "Arkansas Hotel Portfolio"), from certain limited liability companies controlled by the same seller, an unrelated third party. The remaining 5.0% ownership interest in the Fairfield Inn - Jonesboro was acquired by FFIJ LLC, an unrelated third party. | |||||||||||||||||
The Arkansas Hotel Portfolio was acquired as part of a transaction in which the third party sellers sold a portfolio of four hotel properties, two of which comprise the Arkansas Hotel Portfolio, and two hotel properties acquired by Lightstone Value Plus Real Estate Investment Trust II, Inc. ("Lightstone REIT II"). The aggregate purchase price paid for the four properties was $29.1 million, of which $18.4 million related to the Arkansas Hotel Portfolio and such amount was determined based on an internal allocation of the purchase price which was approved by the separate boards of directors of the Company and Lightstone REIT II on April 11, 2013. In real estate transactions, changes in market and economic conditions may result in upward or downward fluctuations in the estimated fair value of assets. Because of such changes, the aggregate estimated fair value of Lightstone REIT II's hotels exceeded their allocated purchase price by approximately $1.2 million as of the date of closing. Additionally, in connection with the acquisition, our advisor received an acquisition fee equal to 2.75% of the contractual purchase price of $18.4 million, or approximately $506. | |||||||||||||||||
The acquisition was funded with available cash. | |||||||||||||||||
We established a separate TRS for both the Fairfield Inn - Jonesboro and the Aloft - Rogers, respectively, which have each entered into operating lease agreements for each respective hotel. At closing, each TRS entered into a separate management agreement with a management company for the management of the respective hotel. The management company for the Fairfield Inn - Jonesboro is controlled by the 5.0% minority owner of the hotel. Additionally, each respective TRS entered into a 20-year franchise agreement with Marriott and Starwood, pursuant to which the Fairfield Inn - Jonesboro and the Aloft - Rogers, respectively, will continue to operate as a "Fairfield Inn & Suites by Marriott" and a "Starwood Hotel Group Aloft Hotel", respectively, commencing on June 18, 2013. | |||||||||||||||||
The acquisition of the Arkansas Hotel Portfolio was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Arkansas Hotel Portfolio has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $2.2 million was allocated to land and improvements, $14.2 million was allocated to building and improvements, and $2.0 million was allocated to furniture and fixtures and other assets. | |||||||||||||||||
The aggregate capitalization rate for the Arkansas Hotel Portfolio as of the closing of the acquisition was approximately 10.4%. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the projected or budgeted net operating income based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | |||||||||||||||||
Baton Rouge Hotel Portfolio | |||||||||||||||||
On May 16, 2013, the Company, through LVP CY Baton Rouge Holdings LLC and LVP RI Baton Rouge Holdings, LLC, both joint venture subsidiaries of our Operating Partnership, completed the portfolio acquisition of 90.0% ownership interests in two limited service hotels with an a total of 229 rooms (the "Baton Rouge Hotel Portfolio"), which operate as Courtyard by Marriott and Residence Inn by Marriott, both in Baton Rouge, Louisiana, which we refer to as the Courtyard - Baton Rouge and the Residence Inn - Baton Rouge, from certain limited liability companies controlled by the same seller, an unrelated third party. The remaining 10.0% ownership interests were acquired by PR Baton Rouge Property Partners LLC, for the Courtyard - Baton Rouge and Rouge Property Residence Inn Partners LLC, for the Residence Inn - Baton Rouge, both unrelated third parties. | |||||||||||||||||
The aggregate cost for the Baton Rouge Hotel Portfolio was approximately $15.6 million. Additionally, in connection with the acquisition, our advisor received an acquisition fee equal to 2.75% of the contractual purchase price of $15.6 million, or approximately $0.4 million. | |||||||||||||||||
The acquisition was funded with available cash and the assumption of a $6.5 million mortgage due May 2017 with an interest rate of 5.56%. | |||||||||||||||||
We established a separate TRS for both the Courtyard - Baton Rouge and the Residence Inn - Baton Rouge, respectively, which have each entered into operating lease agreements for each respective hotel. At closing, each TRS entered into a separate management agreement with a management company controlled by the minority owner of each hotel for the management of the respective hotel. Additionally, each TRS entered into a 20-year franchise agreement with Marriott, pursuant to which the Courtyard - Baton Rouge and the Residence Inn - Baton Rouge will continue to operate as a "Courtyard by Marriott" and a "Residence-Inn by Marriott," respectively, commencing on May 16, 2013. | |||||||||||||||||
The acquisition of the Baton Rouge Hotel Portfolio was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Baton Rouge Hotel Portfolio has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $4.2 million was allocated to land and improvements, $9.7 million was allocated to building and improvements, and $1.7 million was allocated to furniture and fixtures and other assets. | |||||||||||||||||
The aggregate capitalization rate for the Baton Rouge Hotel Portfolio as of the closing of the acquisition was approximately 9.9%. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the projected or budgeted net operating income based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | |||||||||||||||||
Holiday Inn - Auburn | |||||||||||||||||
On January 18, 2013, the Company acquired a Holiday Inn Express Hotel & Suites (the "Holiday Inn Express - Auburn") located in Auburn, Alabama, from Inkbridge Acquisitions, LLC, an unrelated third party, for aggregate cash consideration of approximately $5.7 million, excluding closing and other related transaction costs. The acquisition of the Holiday Inn Express - Auburn was funded from cash. Additionally, in connection with the acquisition of the Holiday Inn Express- Auburn, the Company's Advisor received an aggregate acquisition fee equal to 2.75% of the aggregate acquisition price, or approximately $0.2 million. | |||||||||||||||||
The acquisition of the Holiday Inn Express - Auburn was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Holiday Inn Express - Auburn has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $0.6 million was allocated to land, $4.3 million was allocated to building and improvements, and $0.8 million was allocated to furniture and fixtures and other assets. | |||||||||||||||||
The capitalization rate for the Holiday Inn Express - Auburn as of the closing of the acquisition was 14.2%. The Company calculates the capitalization rate for real property by dividing the net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income was determined using the projected or budgeted net operating income of the property based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation and amortization. | |||||||||||||||||
The Company established a TRS for the Holiday Inn Express - Auburn which has entered into an operating lease agreement for the respective hotel. At closing, the TRS entered into a separate management agreement with an unrelated third party for the management of the respective hotel. | |||||||||||||||||
Financial Information | |||||||||||||||||
The following table provides the total amount of rental revenue and net loss included in the Company's consolidated statements of operations from the Holiday Inn Express - Auburn, the Baton Rouge Hotel Portfolio, the Arkansas Hotel Portfolio and the Florida Hotel Portfolio since their respective dates of acquisition for the period indicated: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, 2013 | Ended September 30, | ||||||||||||||||
2013 | |||||||||||||||||
Rental revenue | $ | 3,920 | $ | 6,137 | |||||||||||||
Net loss | $ | (1,286 | ) | $ | (2,516 | ) | |||||||||||
The following table provides unaudited pro forma results of operations for the period indicated, as if the Holiday Inn Express - Auburn, the Baton Rouge Hotel Portfolio, the Arkansas Hotel Portfolio and the Florida Hotel Portfolio had been acquired at the beginning of that period. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on the date indicated, nor are they indicative of the future operating results of the combined company. | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Pro forma rental revenue | $ | 21,438 | $ | 17,559 | $ | 61,829 | $ | 52,810 | |||||||||
Pro forma net income | $ | 2,980 | $ | 11247 | $ | 17,866 | $ | 31,908 | |||||||||
Pro forma net income per Company's common share, basic and diluted | $ | 0.11 | $ | 0.38 | $ | 0.61 | $ | 1.07 | |||||||||
Marketable_Securities_and_Fair
Marketable Securities and Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Marketable Securities And Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Marketable Securities and Fair Value Measurements | ' | ||||||||||||||||
6 | Marketable Securities and Fair Value Measurements | ||||||||||||||||
Marketable Securities: | |||||||||||||||||
The following is a summary of the Company's available for sale securities as of the dates indicated: | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Equity Securities, primarily REITs | $ | 7 | $ | 2 | $ | - | $ | 9 | |||||||||
Marco OP Units and Marco II OP Units | 62,022 | 35,697 | - | 97,719 | |||||||||||||
Corporate Bonds and Preferred Equities | 40,174 | 920 | (1,298 | ) | 39,796 | ||||||||||||
Mortgage Backed Securities ("MBS") | 8,238 | - | (257 | ) | 7,981 | ||||||||||||
Total | $ | 110,441 | $ | 36,619 | $ | (1,555 | ) | $ | 145,505 | ||||||||
As of December 31, 2012 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Equity Securities, primarily REITs | $ | 7 | $ | - | $ | (2 | ) | $ | 5 | ||||||||
Marco OP Units and Marco II OP Units | 75,591 | 53,291 | - | 128,882 | |||||||||||||
Corporate Bonds and Preferred Equities | 43,765 | 1,924 | (317 | ) | 45,372 | ||||||||||||
MBS | 12,238 | 35 | (102 | ) | 12,171 | ||||||||||||
Total | $ | 131,601 | $ | 55,250 | $ | (421 | ) | $ | 186,430 | ||||||||
The Marco OP Units and the Marco II OP Units are exchangeable for a similar number of common operating partnership units ("Simon OP Units") of Simon Property Group, L.P., ("Simon OP"), the operating partnership of Simon Inc. ("Simon"). Subject to the various conditions, the Company may elect to exchange the Marco OP Units and/or the Marco II OP Units to Simon OP Units which must be immediately delivered to Simon in exchange for cash or similar number of shares of Simon's common stock ("Simon Stock"). During the second quarter of 2013 the Company sold 156,000 Marco OP units with a cost basis of approximately $13.6 million for gross proceeds of approximately $27.5 million and realized a gain of approximately $13.9 million, which is included in gain/(loss) on sale of marketable securities, for the nine months ended September 30, 2013 on the consolidated statements of operations. | |||||||||||||||||
All of the MBS were issued by various U.S. government-sponsored enterprises (Freddie Mac and Fannie Mae). The Company considers the declines in market value of its investment portfolio to be temporary in nature. The unrealized losses on the Company's investments were caused primarily by changes in market interest rates or widening credit spreads. When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company's intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment's amortized cost basis. During the three months ended September 30, 2013 and 2012, the Company did not recognize any impairment charges. As of September 30, 2013, the Company does not consider any of its investments to be other-than-temporarily impaired. | |||||||||||||||||
The Company may sell certain of its investments prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. For the nine months ended September 30, 2013, the Company realized $13.8 million of gross gains related primarily to the sale of 156,000 Marco OP units and for the three and nine months ended September 30, 2012 the Company realized $0.5 million and $0.1 million of gross gains, respectively, related to sales of securities and early redemptions of MBS by the security issuer. The maturities of the Company's MBS generally ranged from 27 years to 30 years. | |||||||||||||||||
Margin Loan | |||||||||||||||||
The Company has access to a margin loan (the "Margin Loan") from a financial institution that holds custody of certain of the Company's marketable securities. The Margin Loan, which is due on demand, bears interest at Libor plus 0.85% (1.03% as of September 30, 2013) and is collateralized by the marketable securities in the Company's account. The amounts available to the Company under the Margin Loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The amount outstanding under this Margin Loan is $21.9 million and $38.3 million as of September 30, 2013 and December 31, 2012, respectively, and is included in Notes Payable on the consolidated balance sheets. | |||||||||||||||||
Line of Credit | |||||||||||||||||
On September 14, 2012, the Company entered into a non-revolving credit facility (the "Line of Credit") with a financial institution which permits borrowings up to $25.0 million. The Line of Credit expired on September 14, 2013 and was extended to December 14, 2013, but may be extended at the option of the Borrower for an additional one year subject to lender's approval. The Line of Credit bears interest at Libor plus 3.00%. | |||||||||||||||||
The amount outstanding under the Line of Credit is $19.9 million as of both September 30, 2013 and December 31, 2012 and is included in Notes Payable on the consolidated balance sheets. | |||||||||||||||||
The Line of Credit is collateralized by 440,311 Marco OP Units and PRO guaranteed the Line of Credit. | |||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||
In order to manage risk related to changes in the price of Simon Stock, in 2010, the Company entered into a hedge of its Marco OP Units. The hedge transactions were executed with Morgan Stanley on 527,803 of the Marco OP Units. The hedges were structured as a collar where a series of puts were purchased at an average strike price of $90.32 per share and a series of calls were sold at an average strike price of $109.95 per share. Morgan Stanley is restricted under the agreement from assigning its rights to this hedge to another counter party. | |||||||||||||||||
The initial collateral requirement was approximately $6.9 million and is subject to change based on changes in the share price of Simon stock. The hedge cost $5.6 million, or $10.70 per share, and expires in December 2013. The dividends, if any, on the hedged shares continue to accrue to the Company, however Morgan Stanley has the right to adjust the put strike price for any future increases in the dividend declared by Simon Inc. and as of September 30, 2013, the strike price of the calls was adjusted to $107.38 per share. | |||||||||||||||||
The hedges were classified as fair value hedges and initially recorded on the consolidated balance sheets under prepaid and other assets with changes in the fair value of the hedge reported on the consolidated statements of operations. As of September 30, 2013 and December 31, 2012, the fair value of the hedges was a liability of $21.2 million and $24.2 million, respectively, recorded on the consolidated balance sheets under accounts payable and accrued expenses and the collateral requirement was approximately $23.4 million and $25.4 million, respectively. The collateral is recorded on the consolidated balance sheets under restricted escrows. For the three and nine months ended September 30, 2013, a gain of $4.7 million and $3.0 million, respectively, and for the three and nine months ended September 30, 2012, a gain of $2.0 million and a loss of $11.1 million, respectively, was recorded within the consolidated statements of operations. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||
The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: | |||||||||||||||||
• | Level 1 - Quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||
• | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | ||||||||||||||||
Marketable securities, available for sale, and derivative financial instruments measured at fair value on a recurring basis as of the dates indicated are as follows: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
As of September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents (money market accounts) | $ | 23,494 | $ | - | $ | - | $ | 23,494 | |||||||||
Marketable Securities: | |||||||||||||||||
Equity Securities, primarily REITs | $ | 9 | $ | - | $ | - | $ | 9 | |||||||||
Marco OP Units and Marco II OP Units | - | 97,719 | - | 97,719 | |||||||||||||
Corporate Bonds and Preferred Equities | - | 39,796 | - | 39,796 | |||||||||||||
MBS | - | 7,981 | - | 7,981 | |||||||||||||
Total | $ | 9 | $ | 145,496 | $ | - | $ | 145,505 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||
Marco OP Units Collar | $ | - | $ | (21,240 | ) | $ | - | $ | (21,240 | ) | |||||||
Total | $ | - | $ | (21,240 | ) | $ | - | $ | (21,240 | ) | |||||||
Fair Value Measurement Using | |||||||||||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents (money market accounts) | $ | 85,028 | $ | - | $ | - | $ | 85,028 | |||||||||
Marketable Securities: | |||||||||||||||||
Equity Securities, primarily REITs | $ | 5 | $ | - | $ | - | $ | 5 | |||||||||
Marco OP Units and Marco II OP Units | - | 128,882 | - | 128,882 | |||||||||||||
Corporate Bonds | 45,372 | 45,372 | |||||||||||||||
MBS | - | 12,171 | - | 12,171 | |||||||||||||
Total | $ | 5 | $ | 186,425 | $ | - | $ | 186,430 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||
Marco OP Units Collar | $ | - | $ | (24,215 | ) | $ | - | $ | (24,215 | ) | |||||||
Total | $ | - | $ | (24,215 | ) | $ | - | $ | (24,215 | ) | |||||||
The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. |
Mortgages_Payable
Mortgages Payable | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Mortgages Payable [Abstract] | ' | ||||||||||||||||||||||||||
Mortgages Payable | ' | ||||||||||||||||||||||||||
7 | Mortgages Payable | ||||||||||||||||||||||||||
Mortgages payable consists of the following: | |||||||||||||||||||||||||||
Loan Amount as of | |||||||||||||||||||||||||||
Property | Interest Rate | Weighted | Maturity Date | Amount Due at | September 30, | December 31, | |||||||||||||||||||||
Average Interest | Maturity | 2013 | 2012 | ||||||||||||||||||||||||
Rate as of | |||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Southeastern Michigan Multi-Family Properties | 5.96% | 5.96 | % | Jul-16 | $ | 38,138 | $ | 39,687 | $ | 40,065 | |||||||||||||||||
Oakview Plaza | 5.49% | 5.49 | % | Jan-17 | 25,583 | 26,909 | 27,182 | ||||||||||||||||||||
Gulf Coast Industrial Portfolio | 9.83% | 9.83 | % | Due on demand | 52,173 | 52,173 | 52,711 | ||||||||||||||||||||
Camden Multi-Family Properties (Two Individual Loans) | 5.44% | 5.44 | % | Dec-14 | 26,334 | 26,820 | 27,118 | ||||||||||||||||||||
St. Augustine Outlet Center | 6.09% | 6.09 | % | Apr-16 | 23,748 | 24,936 | 25,256 | ||||||||||||||||||||
2nd Street Project | Libor + 3.50% | 3.63 | % | Sep-16 | 37,343 | 37,343 | 13,500 | ||||||||||||||||||||
Crowe's Crossing | 5.44% | 5.44 | % | Sep-15 | 5,688 | 5,856 | 5,917 | ||||||||||||||||||||
DePaul Plaza | Libor + 3.00% | 3.2 | % | Sep-17 | 11,147 | 12,000 | 12,000 | ||||||||||||||||||||
Courtyard - Parsippany | Libor + 3.50% | 3.69 | % | Aug-18 | 7,126 | 7,987 | - | ||||||||||||||||||||
Everson Pointe | Prime + 1% with a 5.85% floor | 5.85 | % | Dec-15 | 4,418 | 4,740 | 4,851 | ||||||||||||||||||||
Courtyard - Baton Rouge | 5.56% | 5.56 | % | May-17 | 5,873 | 6,356 | - | ||||||||||||||||||||
Promissory Note (cross-collateralized by three hotels) | 4.94% | 4.94 | % | Aug-18 | 14,008 | 15,700 | - | ||||||||||||||||||||
Revolving Credit Facility (cross-collateralized by five hotels) | Libor + 4.95% | 5.22 | % | May-16 | 34,077 | 34,077 | - | ||||||||||||||||||||
Total mortgages payable | 5.94 | % | $ | 285,656 | $ | 294,584 | $ | 208,600 | |||||||||||||||||||
Libor as of September 30, 2013 and December 31, 2012 was 0.18% and 0.21%, respectively. Our loans are secured by the indicated real estate and are non-recourse to the Company. | |||||||||||||||||||||||||||
The following table shows the contractually scheduled principal maturities during the next five years and thereafter as of September 30, 2013 including, the Houston Extended Stay Hotels debt of approximately $6.5 million classified within liabilities held for sale (see Note 8 for additional information) in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||
Remainder of | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
$ | 53,033 | $ | 35,488 | $ | 12,641 | $ | 135,055 | $ | 43,380 | $ | 21,477 | $ | 301,074 | ||||||||||||||
Pursuant to the Company's loan agreements, escrows in the amount of approximately $14.2 million and $9.4 million were held in restricted escrow accounts as of September 30, 2013 and December 31, 2012, respectively. Such escrows will be released in accordance with the applicable loan agreements for payments of real estate taxes, insurance and capital improvement transactions, as required. Additionally, approximately $7.0 million of cash collateral required for the 2nd Street Project mortgage loan was held in restricted escrows as of December 31, 2012. The $7.0 million was released during the first quarter of 2013 and no cash collateral was held in escrow as of September 30, 2013. Certain of our mortgages payable also contain clauses providing for prepayment penalties. | |||||||||||||||||||||||||||
Financings | |||||||||||||||||||||||||||
Promissory Note | |||||||||||||||||||||||||||
On July 29, 2013, the Company, through certain subsidiaries, entered into a promissory note (the "Promissory Note") with Barclays Bank PLC for approximately $15.7 million. The Promissory Note has a term of five years with a maturity date of August 6, 2018, bears interest at 4.94%, and requires monthly principal and interest payments of approximately $91 through its stated maturity. | |||||||||||||||||||||||||||
The Promissory Note is cross-collateralized by three hotel properties consisting of the Holiday Inn Express - Auburn and the Arkansas Hotel Portfolio. | |||||||||||||||||||||||||||
At closing, approximately $1.8 million was held in escrow and reserved for property improvements, repairs and real estate taxes. | |||||||||||||||||||||||||||
Courtyard Parsippany Loan | |||||||||||||||||||||||||||
On August 6, 2013, the Company entered into an $8.0 million loan (the "Courtyard Parsippany Loan") with M&T Bank. The Courtyard Parsippany Loan has a term of five years with a maturity date of August 1, 2018, bears interest at Libor plus 3.50% and requires monthly principal and interest through its stated maturity. The Courtyard Parsippany Loan is collateralized by the Courtyard - Parsippany. | |||||||||||||||||||||||||||
In connection with the acquisition of the Courtyard - Baton Rouge, a $6.5 million mortgage due May 2017 with an interest rate of 5.56% was assumed. | |||||||||||||||||||||||||||
On April 18, 2013, the Company entered into a $45.0 million revolving credit facility (the "Revolving Credit Facility") with GE Capital Franchise Finance. The Revolving Facility bears interest at Libor plus 4.95% (5.23% as of September 30, 2013) and provides a line of credit over the next three years, with two, one-year options to extend. Under the terms of the Revolving Credit Facility, the Company may designate properties as collateral that allow the Company to borrow up to a 60.0% loan-to-value ratio of the properties. The initial loan of $14.2 million under the Revolving Credit Facility was secured by the Courtyard - Willoughby, the Fairfield Inn - Des Moines and the SpringHill Suites - Des Moines. During the third quarter of 2013 the Company borrowed an additional $19.9 million under the Revolving Credit Facility and pledged the Florida Hotel Portfolio as additional collateral under the Revolving Credit Facility. The outstanding balance of the Revolving Credit Facility was $34.1 million as of September 30, 2013 and the remaining amount available under the Revolving Credit Facility was $10.9 million. | |||||||||||||||||||||||||||
Certain of the Company's debt agreements require the maintenance of certain ratios, including debt service coverage. The Company currently is in compliance with all of its debt covenants, with the exception of certain debt service coverage ratios on the debt associated with the Gulf Coast Industrial Portfolio. | |||||||||||||||||||||||||||
As a result of not meeting certain debt service coverage ratios on the non-recourse mortgage indebtedness secured by the Gulf Coast Industrial Portfolio, the lender elected to retain the excess cash flow from these properties beginning in July 2011 until such time as the required coverage ratios are met for two successive quarters. During the third quarter of 2012, the loan was transferred to a special servicer, who discontinued scheduled debt service payments and notified us that the loan was in default and due on demand. | |||||||||||||||||||||||||||
Although the lender is currently not charging or being paid interest at the stated default rate, approximately $0.7 million of default interest was accrued during 2012 and $0.5 and $1.7 million of default interest was accrued during the three and nine months ended September 30, 2013 pursuant to the terms of the loan agreement and is included in accounts payable, accrued expenses and other liabilities on our consolidated balance sheets as of September 30, 2013 and December 31, 2012, respectively. We are currently engaged in discussions with the special servicer to restructure the loan and do not expect to pay the default interest as this mortgage indebtedness is non-recourse to us. We believe the continued loss of excess cash flow from these properties and the placement of the non-recourse mortgage indebtedness in default will not have a material impact on our results of operations or financial position. |
Assets_and_Liabilities_Held_fo
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations | ' | ||||||||||||||||
8 | Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations | ||||||||||||||||
During the third quarter of 2013, the Houston Extended Stay Hotels met the criteria to be classified as held for sale. The operating results of the Houston Extended Stay Hotels are classified as discontinued operations in the Consolidated Statements of Operations for all periods presented. Additionally, the associated assets and liabilities of the Houston Extended Stay Hotels are classified as held for sale in the Consolidated Balance Sheets for all periods presented. | |||||||||||||||||
During the second quarter of 2012, Brazos met the criteria to be classified as held for sale. On July 30, 2012, the Company disposed of Brazos, a retail shopping center located in Lake Jackson, Texas for approximately $7.7 million. In connection with the disposition, the Company repaid in full the then outstanding mortgage indebtedness of approximately $6.2 million, which was scheduled to mature in December 2012. The Company recognized a gain on disposition of $2.1 million during the third quarter of 2012. The operating results of Brazos through the date of disposition are classified as discontinued operations in the Consolidated Statements of Operations. | |||||||||||||||||
The following summary presents the operating results of the Houston Extended Stay Hotels and Brazos included in discontinued operations in the Consolidated Statements of Operations for the periods indicated. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | ||||||||||||||
Revenues | $ | 1,199 | $ | 991 | $ | 3,397 | $ | 3,313 | |||||||||
Operating expenses | 684 | 691 | 2,134 | 2,228 | |||||||||||||
Operating income | 515 | 300 | 1,263 | 1,085 | |||||||||||||
Interest expense | (93 | ) | (133 | ) | (283 | ) | (570 | ) | |||||||||
Other income, net | - | - | - | 133 | |||||||||||||
Gain on disposition | - | 2,098 | - | 2,098 | |||||||||||||
Net income from discontinued operations | $ | 422 | $ | 2,265 | $ | 980 | $ | 2,746 | |||||||||
Cash flows generated from discontinued operations are presented separately on the Company's consolidated statements of cash flows. | |||||||||||||||||
The following summary presents the major components of assets and liabilities held for sale, of as the date indicated. | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Net investment property | $ | 16,505 | $ | 16,438 | |||||||||||||
Tenant accounts receivable | 184 | 59 | |||||||||||||||
Prepaid expenses and other assets | 50 | 77 | |||||||||||||||
Total assets held for sale | $ | 16,739 | $ | 16,574 | |||||||||||||
Mortgages payable | $ | 6,490 | $ | 6,884 | |||||||||||||
Accounts payable and accrued expenses | 546 | 498 | |||||||||||||||
Deferred rental income | 40 | 22 | |||||||||||||||
Total liabilities held for sale | $ | 7,076 | $ | 7,404 | |||||||||||||
The mortgages payable included in liabilities held for sale are comprised of the two loans secured by the Houston Extended Stay Hotels that are scheduled to mature on June 16, 2014. |
Equity
Equity | 9 Months Ended | |
Sep. 30, 2013 | ||
Equity [Abstract] | ' | |
Equity | ' | |
9 | Equity | |
Net Earnings Per Share | ||
Basic net earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. Diluted net income per share includes the potentially dilutive effect, if any, which would occur if our outstanding options to purchase our common stock were exercised. For all periods presented, the effect of these exercises was insignificant and, therefore, diluted net income per share is equivalent to basic net income per share. | ||
Tender Offer | ||
The Company commenced a tender offer on May 1, 2013, pursuant to which it offered to acquire up to 4.7 million shares of its common stock from the holders ("Holders") of the shares at a purchase price equal to $10.60 per share, in cash, less any applicable withholding taxes and without interest, upon the terms and subject to the conditions set forth in an offer to purchase and in the related letter of transmittal, (which together, as amended, constitute the "Offer"). | ||
On August 6, 2013, the Company completed the Offer repurchasing from the Holders approximately 4.7 million shares for approximately $50.0 million. The Offer expired at 12:00 Midnight, Eastern Standard Time, on July 15, 2013 and all payments for the shares repurchased were subsequently distributed to the Holders. A total of approximately 5.0 million shares of the Company's common stock were properly tendered and not withdrawn, of which the Company purchased approximately 4.7 million shares , in accordance with the proration provisions of the Offer, from tendering stockholders at a price of $10.60 per share, or an aggregate amount of approximately $50.0 million. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
10 | Related Party Transactions | ||||||||||||||||
The Company has agreements with the Advisor and Lightstone Value Plus REIT Management LLC (the "Property Manager") to pay certain fees in exchange for services performed by these entities and other affiliated entities. The Company's ability to secure financing and subsequent real estate operations are dependent upon its Advisor, Property Manager and their affiliates to perform such services as provided in these agreements. | |||||||||||||||||
The Company, pursuant to the related party arrangements, has recorded the following amounts for the periods indicated: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Acquisition fees | $ | 897 | $ | 127 | $ | 2,153 | $ | 184 | |||||||||
Asset management fees | 642 | 598 | 1,901 | 1,748 | |||||||||||||
Property management fees | 235 | 356 | 1,090 | 1,076 | |||||||||||||
Development fees and leasing commissions | 754 | 339 | 1,543 | 483 | |||||||||||||
Total | $ | 2,528 | $ | 1,420 | $ | 6,687 | $ | 3,491 | |||||||||
Lightstone SLP, LLC, an affiliate of the Company's Sponsor, has purchased subordinated profits interests in the Operating Partnership ("SLP units"). These SLP units, the purchase price of which will be repaid only after stockholders receive a stated preferred return and their net investment, entitle Lightstone SLP, LLC to a portion of any regular distributions made by the Operating Partnership. | |||||||||||||||||
During the three months ended September 30, 2013, distributions of $0.5 million were declared and paid on the SLP units and are part of non controlling interests. Since inception through September 30, 2013, cumulative distributions declared were $12.4 million, of which $11.8 million were paid. See Notes 3 and 4 for other related party transactions. | |||||||||||||||||
Loans Due from Affiliate | |||||||||||||||||
During the second quarter of 2013, the Company issued a $7.0 million demand note (the "Demand Note") to Lightstone REIT II. The Demand Note was due on demand and bore interest at a floating rate of LIBOR plus 4.95% payable on demand. Lightstone REIT II paid $3.0 million of the Demand Note's balance in June 2013 and repaid the remaining $4.0 million on July 29, 2013. | |||||||||||||||||
CP Boston Joint Venture | |||||||||||||||||
On June 27, 2013 the Company repaid Lightstone REIT II the approximately $2.3 million remaining outstanding balance on the Note it owed in connection with the purchase of its 20.0% joint venture ownership interest in the CP Boston Joint Venture effective January 1, 2012. | |||||||||||||||||
Rego Park Joint Venture | |||||||||||||||||
On April 12, 2011, LVP Rego Park, LLC, ("the Rego Park Joint Venture") a joint venture in which the Company and Lightstone REIT II had 90.0% and 10.0%, ownership interests, respectively, acquired a $19.5 million, nonrecourse second mortgage note (the "Second Mortgage Loan") for approximately $15.1 million from Kelmar Company, LLC ( "Kelmar"), an unrelated third party. The purchase price reflected a discount of approximately $4.4 million to the outstanding principal balance. The Company's share of the aggregate purchase price was approximately $18.0 million. The Company consolidated the operating results and financial condition of the Rego Park Joint Venture and accounted for Lightstone REIT II's ownership interest as a noncontrolling interest. | |||||||||||||||||
The Second Mortgage Loan was originated by Kelmar in May 2008 with an original principal balance of $19.5 million, was due May 31, 2013 and was collateralized by a 417 unit apartment complex located in Queens, New York. The Second Mortgage Loan bore interest at a fixed rate of 5.0% per annum with monthly interest only payments of approximately $0.1 million through maturity. The Rego Park Joint Venture accreted the discount using the effective interest rate method through maturity. On June 27, 2013 all amounts due to the Rego Park Joint Venture related to the Second Mortgage Loan were repaid in full. | |||||||||||||||||
During the nine months ended September 30, 2013, the Rego Park Joint Venture made final distributions of all of its assets of approximately $21.0 million, to its members, of which approximately $2.1 million was distributed to Lightstone REIT II. | |||||||||||||||||
Consolidated Joint Venture | |||||||||||||||||
On August 18, 2011, the Operating Partnership and its Sponsor formed the 2nd Street Joint Venture to own and operate 50-01 2nd Street Associates LLC (the "2nd Street Owner"). The Operating Partnership initially owned a 75.0% membership interest in the 2nd Street Joint Venture (the "2nd Street JV Interest"). The 2nd Street JV Interest is a managing membership interest. The Sponsor initially had a 25.0% non managing membership interest with certain consent rights with respect to major decisions. Contributions are allocated in accordance with each investor's ownership percentage. Profit and cash distributions, if any, will be allocated in accordance with each investor's ownership percentage. In addition, the 2nd Street JV Interest had a put option (the "Put") whereby the Operating Partnership could put a portion or all of its interest to the Sponsor through August 18, 2012 in exchange for the corresponding dollar value of its capital contributions as of the date of exercise. On August 14, 2012, the Operating Partnership exercised the Put pursuant to which it would transfer 15.0% of its membership interest to the Sponsor effective upon obtaining a construction loan (the "Construction Loan") for a residential project (the "2nd Street Project"). On September 28, 2012, the Construction Loan closed and the Sponsor reimbursed the Operating Partnership approximately $4.1 million. | |||||||||||||||||
As of September 30, 2013, the Operating Partnership owned a 60.0% managing membership interest in the 2nd Street Joint Venture and the Sponsor owned a 40.0% non managing membership interest. As the Operating Partnership through the 2nd Street JV Interest has the power to direct the activities of the 2nd Street Joint Venture that most significantly impact the performance, beginning August 18, 2011, the Company has consolidated the operating results and financial condition of the 2nd Street Joint Venture and has accounted for the ownership interest of the Sponsor as a noncontrolling interest. | |||||||||||||||||
On August 18, 2011, the 2nd Street Owner, which is wholly owned by the 2nd Street Joint Venture, acquired a parcel of land located in Queens, New York for approximately $19.3 million from an unaffiliated third party. The 2nd Street Joint Venture contributed approximately $19.3 million in cash to the 2nd Street Owner to fund the land acquisition. In connection with the acquisition of the land, the 2nd Street Owner also obtained a $13.5 million interim Loan. During the second quarter of 2012, the 2nd Street Owner commenced construction of the 2nd Street Project on the acquired land. The 2nd Street Project is currently expected to consist of approximately 200 apartment units at an estimated total development cost of approximately $81.4 million, inclusive of the land acquisition cost, with an estimated completion in the first quarter of 2014. On September 28, 2012 the 2nd Street Owner entered into the Construction Loan and used proceeds advanced at closing to repay the Interim Loan in full. The outstanding balance of the Construction Loan was $37.3 million and $13.5 million as of September 30, 2013 and December 31, 2012, respectively. As of September 30, 2013, the remaining amount available under the Construction Loan was $13.7 million. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
11 | Financial Instruments | ||||||||||||||||
The carrying amounts of cash and cash equivalents, restricted escrows, tenants' accounts receivable, interest receivable from related parties, accounts payable and accrued expenses, and notes payable approximated their fair values as of September 30, 2013 because of the short maturity of these instruments. The carrying amount of the mortgages receivable approximated their fair value as of September 30, 2013 based upon current market information that would have been used by a market participant to estimate the fair value of such loan. | |||||||||||||||||
The estimated fair value (in millions) of the Company's mortgage debt is summarized as follows: | |||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||
Carrying Amount | Estimated Fair | Carrying Amount | Estimated Fair | ||||||||||||||
Value | Value | ||||||||||||||||
Mortgage payable | $ | 294.6 | $ | 292.3 | $ | 208.6 | $ | 209.4 | |||||||||
The fair value of the mortgages payable was determined by discounting the future contractual interest and principal payments by estimated current market interest rates. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
12 | Segment Information | ||||||||||||||||||||||||
The Company currently operates in four business segments as of September 30, 2013: (i) retail real estate (the "Retail Segment"), (ii) multi-family residential real estate (the "Multi-family Residential Segment"), (iii) industrial real estate (the "Industrial Segment") and (iv) hotel hospitality (the "Hotel Hospitality Segment"). The Company's advisor and its affiliates provide leasing, property and facilities management, acquisition, development, construction and tenant-related services for its portfolio. The Company's revenues for the three and nine months ended September 30, 2013 and 2012 were exclusively derived from activities in the United States. No revenues from foreign countries were received or reported. The Company had no long-lived assets in foreign locations as of September 30, 2013 and December 31, 2012. The accounting policies of the segments are the same as those described in Note 2: Summary of Significant Accounting Policies of the Company's December 31, 2012 Annual Report on Form 10-K. Unallocated assets, revenues and expenses relate to corporate related accounts. | |||||||||||||||||||||||||
The Company evaluates performance based upon net operating income/(loss) from the combined properties in each real estate segment. | |||||||||||||||||||||||||
As discussed in Note 8, the results of operations presented below exclude the Houston Extended Stay Hotels and Brazos due to their classification as discontinued operations for all periods presented. The Houston Extended Stay Hotels were previously included in the Company's hospitality segment and Brazos was previously included in the Company's retail segment. | |||||||||||||||||||||||||
Selected results of operations for the three months ended September 30, 2013 and 2012, and total assets as of September 30, 2013 and December 31, 2012 regarding the Company's operating segments are as follows: | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Retail | Multi-Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 3,417 | 3,505 | 1,782 | 11,682 | - | $ | 20,386 | |||||||||||||||||
Property operating expenses | 966 | 1,644 | 543 | 8,962 | 1 | 12,116 | |||||||||||||||||||
Real estate taxes | 373 | 315 | 189 | 397 | - | 1,274 | |||||||||||||||||||
General and administrative costs | 13 | 74 | 9 | 26 | 3,204 | 3,326 | |||||||||||||||||||
Net operating income/(loss) | 2,065 | 1,472 | 1,041 | 2,297 | (3,205 | ) | 3,670 | ||||||||||||||||||
Depreciation and amortization | 1,234 | 614 | 647 | 847 | - | 3,342 | |||||||||||||||||||
Operating income/(loss) | $ | 831 | $ | 858 | $ | 394 | $ | 1,450 | $ | (3,205 | ) | $ | 328 | ||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||
Total Assets | $ | 124,171 | $ | 145,451 | $ | 60,513 | $ | 164,628 | $ | 210,700 | $ | 705,463 | |||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Retail | Multi-Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 3,585 | $ | 3,175 | $ | 1,814 | $ | 3,787 | $ | - | $ | 12,361 | |||||||||||||
Property operating expenses | 991 | 1,364 | 568 | 3,802 | (72 | ) | 6,653 | ||||||||||||||||||
Real estate taxes | 396 | 318 | 202 | 135 | (1 | ) | 1,050 | ||||||||||||||||||
General and administrative costs | 19 | 7 | 52 | 97 | 1,470 | 1,645 | |||||||||||||||||||
Net operating income/(loss) | 2,179 | 1,486 | 992 | (247 | ) | (1,397 | ) | 3,013 | |||||||||||||||||
Depreciation and amortization | 1,321 | 420 | 471 | 163 | - | 2,375 | |||||||||||||||||||
Operating income/(loss) | $ | 858 | $ | 1,066 | $ | 521 | $ | (410 | ) | $ | (1,397 | ) | $ | 638 | |||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total Assets | $ | 127,043 | $ | 68,593 | $ | 61,628 | $ | 78,205 | $ | 384,171 | $ | 719,640 | |||||||||||||
Selected results of operations for the nine months ended September 30, 2013 and 2012 regarding the Company's operating segments are as follows: | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Retail | Multi Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 10,262 | $ | 10,014 | $ | 5,359 | $ | 28,164 | $ | - | $ | 53,799 | |||||||||||||
Property operating expenses | 2,745 | 4,510 | 1,448 | 22,069 | 7 | 30,779 | |||||||||||||||||||
Real estate taxes | 1,125 | 812 | 586 | 1,064 | - | 3,587 | |||||||||||||||||||
General and administrative costs | 29 | 193 | 21 | 152 | 8,154 | 8,549 | |||||||||||||||||||
Net operating income/(loss) | 6,363 | 4,499 | 3,304 | 4,879 | (8,161 | ) | 10,884 | ||||||||||||||||||
Depreciation and amortization | 3,591 | 1,487 | 1,563 | 1,891 | - | 8,532 | |||||||||||||||||||
Operating income/(loss) | $ | 2,772 | $ | 3,012 | $ | 1,741 | $ | 2,988 | $ | (8,161 | ) | $ | 2,352 | ||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Retail | Multi Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 10,675 | $ | 9,450 | $ | 5,362 | $ | 10,714 | $ | - | $ | 36,201 | |||||||||||||
Property operating expenses | 2,752 | 4,017 | 1,578 | 9,895 | (39 | ) | 18,203 | ||||||||||||||||||
Real estate taxes | 1,193 | 984 | 532 | 348 | - | 3,057 | |||||||||||||||||||
General and administrative costs | 57 | 111 | 254 | 289 | 4,227 | 4,938 | |||||||||||||||||||
Net operating income/(loss) | 6,673 | 4,338 | 2,998 | 182 | (4,188 | ) | 10,003 | ||||||||||||||||||
Depreciation and amortization | 3,999 | 1,239 | 1,417 | 354 | - | 7,009 | |||||||||||||||||||
Operating income/(loss) | $ | 2,674 | $ | 3,099 | $ | 1,581 | $ | (172 | ) | $ | (4,188 | ) | $ | 2,994 | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2013 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
13 | Commitments and Contingencies | |
Legal Proceedings | ||
From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. | ||
On March 29, 2006, Jonathan Gould, a former member of our Board and Senior Vice-President-Acquisitions, filed a lawsuit against us in the District Court for the Southern District of New York. The suit alleges, among other things, that Mr. Gould was insufficiently compensated for his services to us as director and officer. Mr. Gould has sued for damages under theories of quantum meruit and unjust enrichment seeking the value of work he performed. During April 2013, the Company agreed to settle the suit with Mr. Gould for $210 and paid him in full. | ||
On January 4, 2007, 1407 Broadway Real Estate LLC ("Office Owner"), an indirect, wholly owned subsidiary of 1407 Broadway Mezz II LLC ("1407 Broadway "), consummated the acquisition of a sub-leasehold interest (the "Sublease Interest") in an office building located at 1407 Broadway, New York, New York (the "Office Property"). 1407 Broadway is a joint venture between LVP 1407 Broadway LLC ("LVP LLC"), a wholly owned subsidiary of our operating partnership, and Lightstone 1407 Manager LLC ("Manager"), which is wholly owned by David Lichtenstein, the Chairman of our Board of Directors and our Chief Executive Officer, and Shifra Lichtenstein, his wife. | ||
The Sublease Interest was acquired pursuant to a Sale and Purchase of Leasehold Agreement with Gettinger Associates, L.P. ("Gettinger"). In July 2006, Abraham Kamber Company, as Sublessor under the sublease ("Sublessor"), served two notices of default on Gettinger (the "Default Notices"). The first alleged that Gettinger had failed to satisfy its obligations in performing certain renovations and the second asserted numerous defaults relating to Gettinger's purported failure to maintain the Office Property in compliance with its contractual obligations. | ||
In response to the Default Notices, Gettinger commenced legal action and obtained an injunction that extends its time to cure any default, prohibits interference with its leasehold interest and prohibits Sublessor from terminating its sublease pending resolution of the litigation. A motion by Sublessor for partial summary judgment, alleging that certain work on the Office Property required its prior approval, was denied by the Supreme Court, New York County. Subsequently, by agreement of the parties, a stay was entered precluding the termination of the Sublease Interest pending a final decision on Sublessor's claim of defaults under the Sublease Interest. In addition, the parties stipulated to the intervention of Office Owner as a party to the proceedings. | ||
On April 12, 2012, the Supreme Court, New York County decided in favor of the Company with respect to all matters before the Court. Sublessor filed a Notice of Appeal on June 7, 2012 and, after fully briefing the issues, the parties argued the appeal on January 30, 2013. On February 21, 2013, the Appellate Division, First Department rendered its decision largely affirming the lower court's determination. The Appellate Division did determine that there were two 2007 defaults that had not been cured and that the assignment of the sublease had occurred at a time when defaults existed. The Appellate Division determined that the remedy for such defaults was not a forfeiture of the sublease. Instead, the Appellate Division remanded to the lower court with direction that the lower court fashion a remedy short of forfeiture. A hearing on this matter is currently pending. | ||
On July 13, 2011, JF Capital Advisors, filed a lawsuit against The Lightstone Group, LLC, the Company, and Lightstone REIT II in the Supreme Court of the State of New York seeking payment for services alleged to have been rendered, and to be rendered prospectively, under theories of unjust enrichment and breach of contract. The plaintiff had a limited business arrangement with The Lightstone Group, LLC; that arrangement has been terminated. We filed a motion to dismiss the action and, on January 31, 2012, the Supreme Court dismissed the complaint in its entirety, but granted the plaintiff leave to replead two limited causes of action. | ||
The plaintiff filed an amended complaint on May 18, 2012, bringing limited claims under theories of unjust enrichment and quantum meruit. On November 21, 2012, the court dismissed this second complaint in part, leaving only approximately $164 (plus interest) in potential damages. The plaintiff appealed this decision and we have cross-appealed arguing that the case should have been dismissed in full. We continue to believe these claims to be without merit and will defend the case vigorously. | ||
While any proceeding or litigation has an element of uncertainty, management currently believes that the likelihood of an unfavorable outcome with respect to any of the aforementioned legal proceedings is remote. No provision for loss has been recorded in connection therewith. | ||
As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. | ||
Tax Protection Agreements | ||
In connection with the contribution of the certain ownership interests (the "Mill Run Interest") in Mill Run and certain ownership interests (the "POAC Interest") in POAC, our Operating Partnership entered into certain tax protection agreements (the "POAC/Mill Run Tax Protection Agreements") with each of Arbor JRM, Arbor CJ, AR Prime, TRAC, Central Jersey and JT Prime (collectively, the "Contributors"). Under the POAC/Mill Run Tax Protection Agreements, our Operating Partnership was required to indemnify each of Arbor JRM, Arbor CJ, TRAC and Central Jersey with respect to Mill Run's properties (the "Mill Run Properties"), and AR Prime and JT Prime, with respect to POAC's properties (the "POAC Properties"), from June 26, 2008 for Arbor JRM, Arbor CJ and AR Prime and from August 25, 2009 for TRAC, Central Jersey and JT Prime to June 26, 2013 for, among other things, certain income tax liability that would result from the income or gain which Arbor JRM, Arbor CJ, TRAC, Central Jersey on the one hand, or AR Prime, JT Prime, on the other hand, would recognize upon the Operating Partnership's failure to maintain the current level of debt encumbering the Mill Run Properties or the POAC Properties, respectively, or the sale or other disposition by the Operating Partnership of the Mill Run Properties, the Mill Run Interest, the POAC Properties, or the POAC Interest (each, an "Indemnifiable Event"). Under the terms of the POAC/Mill Run Tax Protection Agreements, our Operating Partnership was indemnifying the Contributors for certain income tax liabilities based on income or gain which the Contributors were deemed to be required to include in their gross income for federal or state income tax purposes (assuming the Contributors are subject to tax at the highest regional, U.S. federal, state and local tax rates imposed on individuals residing in New York City) as a result of an Indemnifiable Event. This indemnity covered income taxes, interest and penalties and was required to be made on a "grossed up" basis that effectively would have resulted in the Contributors receiving the indemnity payment on a net, after-tax basis. The amount of the potential tax indemnity to the Contributors under the POAC/Mill Run Tax Protection Agreements, including a gross-up for taxes on any such payment, using current tax rates, was estimated to be approximately $95.7 million. The POAC/Mill Run Tax Protection Agreements expired on June 26, 2013. In connection with the partial redemption of Series A Preferred Units and the partial repayment of notes receivable from noncontrolling interests completed on September 30, 2013, any potential liability to the Company under the POAC/Mill Run Tax Protection Agreements was fully released. See Note 1 for additional information. | ||
Each of the POAC/Mill Run Tax Protection Agreements imposed certain restrictions upon our Operating Partnership relating to transactions involving the Mill Run Properties and the POAC Properties which could have resulted in taxable income or gain to the Contributors. Our Operating Partnership could not dispose or transfer any of the Mill Run Properties or any of the POAC Properties without first proving that the Operating Partnership possessed the requisite liquidity, including the proceeds from any such transaction, to make any payments that would have come due pursuant to the POAC/Mill Run Tax Protection Agreements. However, our Operating Partnership could have taken the following actions: (i) (A) as to the POAC Properties, commencing with the period one year and thirty-one days following the date of the POAC/Mill Run Tax Protection Agreements, our Operating Partnership could have sold on an annual basis part or all of any of the POAC Properties with an aggregate value of ten percent or less of the total value of the POAC Properties as of the date of contribution (and any amounts of the ten percent value not sold could have been applied to sales in future years); and (B) as to the Mill Run Properties either the same ten percent test as set forth above in (i)(A) with respect to the Mill Run Properties or the sale of the property then known as Designer Outlet Center; and (ii) our Operating Partnership could have entered into a non-recognition transaction with either the consent of the Contributors or an opinion from an independent law or accounting firm advising that it is "more likely than not" that the transaction would not give rise to current taxable income or gain. | ||
On August 30, 2010, the Company, its Operating Partnership and PRO (collectively, the "LVP Parties") completed the disposition of the POAC Interest and Mill Run Interest (collectively, the "POAC/Mill Run Transaction") to Simon and contemporaneously entered into a tax matters agreement with Simon. Additionally, the Company was advised by an independent law firm that it was "more likely than not" that the POAC/Mill Run Transaction did not give rise to current taxable income or loss. Accordingly, the Company believed the POAC/Mill Run Transaction was a non-recognition transaction and not an Indemnifiable Event under the POAC/Mill Run Tax Protection Agreements. Pursuant to the terms of the tax matters agreement, Simon generally may not engage in a transaction that could result in the recognition of the "built-in gain" with respect to POAC and Mill Run at the time of the closing for specified periods of up to eight years following the closing date. Simon has a number of obligations with respect to the allocation of partnership liabilities to the LVP Parties. For example, Simon agreed to maintain certain of the outstanding mortgage loans that are secured by POAC Properties and Mill Run Properties until their respective maturities, and the LVP Parties have provided and will continue to have the opportunity to provide guaranties of collection with respect to a revolving credit facility (or indebtedness incurred to refinance the revolving credit facility) for at least four years following the closing of the POAC/Mill Run Transaction. The LVP Parties were also given the opportunity to enter into agreements to make specified capital contributions to Simon Property Group, L.P. ("Simon OP") in the event that it defaults on certain of its indebtedness. If Simon breaches its obligations under the tax matters agreement, Simon will be required to indemnify the LVP Parties for certain taxes that they are deemed to incur, including taxes relating to the recognition of "built-in gains" with respect to POAC Properties and Mill Run Properties, and gains recognized as a result of a reduction in the allocation of partnership liabilities. These indemnification payments will be "grossed up" such that the amount of the payments will equal, on an after-tax basis, the tax liability deemed incurred because of the breach. | ||
Simon generally is required to indemnify the LVP Parties and certain affiliates of the Lightstone Group for liabilities and obligations under the POAC/Mill Run Tax Protection Agreements relating to the contributions of the Mill Run Interest and the POAC Interest (see POAC/Mill Run Tax Protection Agreements above) that are caused by Simon OP's and Simon's actions subsequent to the closing of the POAC/Mill Run Transaction (the "Indemnified Liabilities"). The Company and its Operating Partnership were required to indemnify Simon OP and Simon for all liabilities and obligations under the POAC/Mill Run Tax Protection Agreements other than the Indemnified Liabilities through March 1, 2012, of which there were none. | ||
On December 9, 2011 and December 4, 2012, GPH, LVH and certain of their subsidiaries (collectively, the "Holding Entities") completed the disposition of their ownership interests in the Grand Prairie Outlet Center, the Livermore Valley Outlet Center and the Livermore Land Parcel (the "Outlet Centers Transactions") to Simon. In connection with the closing of the Outlet Centers Transactions, the Holdings Entities, the Company, the Operating Partnership, PRO and the Sponsor's Affiliates (collectively, the "Outlet Centers Parties") entered into a tax matters agreement with Simon pursuant to which Simon generally may not engage in a transaction that could result in the recognition of the "built-in gain" with respect to the Grand Prairie Outlet Center and the Livermore Valley Outlet Center at the time of the closing for specified periods of up to eight years following the closing date. Simon has a number of obligations with respect to the allocation of partnership liabilities to the Outlet Centers Parties For example, Simon agreed to maintain a debt level of no less than the cash portion of the proceeds from the Outlet Centers Transaction until at the fourth anniversary of the closing, and the Outlet Centers Parties have provided and will continue to have the opportunity to provide guaranties of collection with respect to a revolving credit facility (or indebtedness incurred to refinance the revolving credit facility) for at least four years following the closing of the Outlet Centers Transactions. The Outlet Centers Parties were also given the opportunity to enter into agreements to make specified capital contributions to Simon OP in the event that it defaults on certain of its indebtedness. If Simon breaches its obligations under the tax matters agreement, Simon will be required to indemnify the Outlet Centers Parties for certain taxes that they are deemed to incur, including taxes relating to the recognition of "built-in gains" with respect to the Grand Prairie Outlet Center and the Livermore Valley Outlet Center, and gains recognized as a result of a reduction in the allocation of partnership liabilities. These indemnification payments will be "grossed up" such that the amount of the payments will equal, on an after-tax basis, the tax liability deemed incurred because of the breach. | ||
Loan Collection Guaranties | ||
In connection with the closing of the POAC/Mill Run Transaction and the Outlet Centers Transactions, the LVP Parties have provided Loan Collection Guaranties with respect to the draws under a revolving credit facility made by Simon in connection with the closing of the POAC/Mill Run Transaction and the Outlet Centers Transactions. Under the terms of the Loan Collection Guaranties, the LVP Parties are obligated to make payments in respect of principal and interest due under the revolving credit facilities after Simon OP has failed to make payments, the amount outstanding under the revolving credit facilities has been accelerated, and the lenders have failed to collect the full amount outstanding under the revolving credit facilities after exhausting other remedies. | ||
Outlet Centers Transactions | ||
Pursuant to the terms of the Outlet Centers Transactions, the aggregate consideration received at closing is subject to certain true-ups and adjustments, including a final valuation of the Grand Prairie Outlet Center and the Livermore Valley Outlet Center, to be completed no later than April 1, 2014, based on their aggregate net operating income, as defined, during calendar year 2013. Furthermore, the Holding Entities, subject to the satisfaction of certain conditions, may (i) receive $5.0 million of additional consideration for the Livermore Land Parcel or (ii) elect to repurchase the Livermore Land Parcel for $35.0 million. During the first quarter of 2013, the Holding Entities received an additional $3.0 million, of which the Company's share was $1.2 million, related to the disposition of its ownership interest in the Grand Prairie Outlet Center resulting from the satisfaction of certain conditions. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
14. Subsequent Events | |
Distribution Payment | |
On October 15, 2013, the distribution for the three-month period ending September 30, 2013 of approximately $4.8 million was paid in full using a combination of cash and approximately 0.1 million shares of the Company's common stock issued pursuant to the Company's Distribution Reinvestment Program ("DRIP"), at a discounted price of $11.21 per share. The distribution was paid from cash flows provided from operations (approximately $3.3 million or 68%) and excess cash proceeds from the issuance of common stock through the Company's DRIP (approximately $1.5 million or 32%). | |
Distribution Declaration | |
On November 14, 2013, the Board authorized and the Company declared a distribution for the three-month period ending December 31, 2013. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $0.0019178 per day, and will equal a daily amount that, if paid each day for a 365-day period, would equal a 7.0% annualized rate based on a share price of $10.00. The distribution will be paid in cash on January 15, 2014 to shareholders of record as of December 31, 2013. The shareholders have an option to elect the receipt of shares under the Company's DRIP. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Lightstone REIT and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). All inter-company balances and transactions have been eliminated in consolidation. | |
The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus Real Estate Investment Trust, Inc. and its Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | |
The consolidated balance sheet as of December 31, 2012 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. | |
The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. | |
Reclassifications | ' |
Reclassifications | |
Certain prior period amounts may have been reclassified to conform to the current year presentation. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
The Company has determined that no new accounting pronouncement issued or effective during the period had or is expected to have a material impact on the financial statements. |
Investments_in_Unconsolidated_1
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Investments in Unconsolidated Affiliated Entities | ' | ||||||||||||||||
A summary of the Company's investment in unconsolidated affiliated real estate entity is as follows: | |||||||||||||||||
As of | |||||||||||||||||
Real Estate Entity | Date Acquired | Ownership | September 30, | 31-Dec-12 | |||||||||||||
% | 2013 | ||||||||||||||||
1407 Broadway Mezz II, LLC ("1407 Broadway") | 4-Jan-07 | 49 | % | $ | 10,550 | $ | - | ||||||||||
Total investment in unconsolidated affiliated real estate entity | $ | 10,550 | $ | - | |||||||||||||
GPH [Member] | ' | ||||||||||||||||
Unaudited Condensed Income Statement | ' | ||||||||||||||||
The following table represents the unaudited condensed income statement for GPH for the period indicated: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
2012 | 2012 | ||||||||||||||||
Operating Loss | $ | - | $ | - | |||||||||||||
Interest income and other, net | 27 | 151 | |||||||||||||||
Income from investment in unconsolidated affiliated entity | 363 | 435 | |||||||||||||||
Net income | $ | 390 | $ | 586 | |||||||||||||
Company's share of net income (40.0%) | $ | 156 | $ | 234 | |||||||||||||
LVH [Member] | ' | ||||||||||||||||
Unaudited Condensed Income Statement | ' | ||||||||||||||||
The following table represents the unaudited condensed income statement for LVH for the period indicated: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
30-Sep-12 | 30-Sep-12 | ||||||||||||||||
Interest income and other, net | $ | 50 | $ | 214 | |||||||||||||
Income from investment in unconsolidated affiliated entity | 15 | 84 | |||||||||||||||
Net income | $ | 65 | $ | 298 | |||||||||||||
Company's share of net income (40.0%) | $ | 26 | $ | 119 | |||||||||||||
1407 Broadway [Member] | ' | ||||||||||||||||
Unaudited Condensed Income Statement | ' | ||||||||||||||||
The following table represents the unaudited condensed income statement for 1407 Broadway: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended | ||||||||||||||||
September 30, | |||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Total revenue | $ | 9,907 | $ | 9,521 | $ | 28,850 | $ | 27,795 | |||||||||
Property operating expenses | 7,674 | 7,444 | 21,690 | 20,432 | |||||||||||||
Depreciation and amortization | 1,494 | 1,459 | 4,269 | 4,298 | |||||||||||||
Operating income | 739 | 618 | 2,891 | 3,065 | |||||||||||||
Interest expense and other, net | (648 | ) | (1,037 | ) | (3,519 | ) | (3,074 | ) | |||||||||
Gain on debt extinguishment | - | - | 7,494 | - | |||||||||||||
Net income (loss) | $ | 91 | $ | (419 | ) | $ | 6,866 | $ | (9 | ) | |||||||
Company's share of net income/(loss) (49%)* | $ | 142 | $ | - | $ | (1,656 | ) | $ | - | ||||||||
* The nine months ended September 30, 2013 includes an adjustment of $5,210 for previously unrecorded losses. | |||||||||||||||||
Unaudited Condensed Balance Sheet | ' | ||||||||||||||||
The following table represents the unaudited condensed balance sheet for 1407 Broadway: | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Real estate, at cost (net) | $ | 111,003 | $ | 107,151 | |||||||||||||
Intangible assets | 296 | 441 | |||||||||||||||
Cash and restricted cash | 23,099 | 11,801 | |||||||||||||||
Other assets | 17,232 | 15,972 | |||||||||||||||
Total assets | $ | 151,630 | $ | 135,365 | |||||||||||||
Mortgage payable | $ | 126,000 | $ | 127,250 | |||||||||||||
Other liabilities | 13,571 | 19,774 | |||||||||||||||
Member capital/(deficit) | 12,059 | (11,659 | ) | ||||||||||||||
Total liabilities and members' capital/(deficit) | $ | 151,630 | $ | 135,365 | |||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ||||||||||||||||
Schedule of Revenue and Net Income Included in Consolidated Statements of Operations | ' | ||||||||||||||||
The following table provides the total amount of rental revenue and net loss included in the Company's consolidated statements of operations from the Holiday Inn Express - Auburn, the Baton Rouge Hotel Portfolio, the Arkansas Hotel Portfolio and the Florida Hotel Portfolio since their respective dates of acquisition for the period indicated: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, 2013 | Ended September 30, | ||||||||||||||||
2013 | |||||||||||||||||
Rental revenue | $ | 3,920 | $ | 6,137 | |||||||||||||
Net loss | $ | (1,286 | ) | $ | (2,516 | ) | |||||||||||
Schedule of Unaudited Pro Forma Results of Operations | ' | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Pro forma rental revenue | $ | 21,438 | $ | 17,559 | $ | 61,829 | $ | 52,810 | |||||||||
Pro forma net income | $ | 2,980 | $ | 11247 | $ | 17,866 | $ | 31,908 | |||||||||
Pro forma net income per Company's common share, basic and diluted | $ | 0.11 | $ | 0.38 | $ | 0.61 | $ | 1.07 | |||||||||
Marketable_Securities_and_Fair1
Marketable Securities and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Summary of Available for Sale Securities | ' | ||||||||||||||||
The following is a summary of the Company's available for sale securities as of the dates indicated: | |||||||||||||||||
As of September 30, 2013 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Equity Securities, primarily REITs | $ | 7 | $ | 2 | $ | - | $ | 9 | |||||||||
Marco OP Units and Marco II OP Units | 62,022 | 35,697 | - | 97,719 | |||||||||||||
Corporate Bonds and Preferred Equities | 40,174 | 920 | (1,298 | ) | 39,796 | ||||||||||||
Mortgage Backed Securities ("MBS") | 8,238 | - | (257 | ) | 7,981 | ||||||||||||
Total | $ | 110,441 | $ | 36,619 | $ | (1,555 | ) | $ | 145,505 | ||||||||
As of December 31, 2012 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Equity Securities, primarily REITs | $ | 7 | $ | - | $ | (2 | ) | $ | 5 | ||||||||
Marco OP Units and Marco II OP Units | 75,591 | 53,291 | - | 128,882 | |||||||||||||
Corporate Bonds and Preferred Equities | 43,765 | 1,924 | (317 | ) | 45,372 | ||||||||||||
MBS | 12,238 | 35 | (102 | ) | 12,171 | ||||||||||||
Total | $ | 131,601 | $ | 55,250 | $ | (421 | ) | $ | 186,430 | ||||||||
Marketable Securities, Available for Sale, and Derivative Financial Instruments Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||
Marketable securities, available for sale, and derivative financial instruments measured at fair value on a recurring basis as of the dates indicated are as follows: | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||
As of September 30, 2013 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents (money market accounts) | $ | 23,494 | $ | - | $ | - | $ | 23,494 | |||||||||
Marketable Securities: | |||||||||||||||||
Equity Securities, primarily REITs | $ | 9 | $ | - | $ | - | $ | 9 | |||||||||
Marco OP Units and Marco II OP Units | - | 97,719 | - | 97,719 | |||||||||||||
Corporate Bonds and Preferred Equities | - | 39,796 | - | 39,796 | |||||||||||||
MBS | - | 7,981 | - | 7,981 | |||||||||||||
Total | $ | 9 | $ | 145,496 | $ | - | $ | 145,505 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||
Marco OP Units Collar | $ | - | $ | (21,240 | ) | $ | - | $ | (21,240 | ) | |||||||
Total | $ | - | $ | (21,240 | ) | $ | - | $ | (21,240 | ) | |||||||
Fair Value Measurement Using | |||||||||||||||||
As of December 31, 2012 | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents (money market accounts) | $ | 85,028 | $ | - | $ | - | $ | 85,028 | |||||||||
Marketable Securities: | |||||||||||||||||
Equity Securities, primarily REITs | $ | 5 | $ | - | $ | - | $ | 5 | |||||||||
Marco OP Units and Marco II OP Units | - | 128,882 | - | 128,882 | |||||||||||||
Corporate Bonds | 45,372 | 45,372 | |||||||||||||||
MBS | - | 12,171 | - | 12,171 | |||||||||||||
Total | $ | 5 | $ | 186,425 | $ | - | $ | 186,430 | |||||||||
Derivative Financial Instruments: | |||||||||||||||||
Marco OP Units Collar | $ | - | $ | (24,215 | ) | $ | - | $ | (24,215 | ) | |||||||
Total | $ | - | $ | (24,215 | ) | $ | - | $ | (24,215 | ) | |||||||
Mortgages_Payable_Tables
Mortgages Payable (Tables) | 9 Months Ended | ||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||
Mortgages Payable [Abstract] | ' | ||||||||||||||||||||||||||
Schedule of Mortgages Payable | ' | ||||||||||||||||||||||||||
Mortgages payable consists of the following: | |||||||||||||||||||||||||||
Loan Amount as of | |||||||||||||||||||||||||||
Property | Interest Rate | Weighted | Maturity Date | Amount Due at | September 30, | December 31, | |||||||||||||||||||||
Average Interest | Maturity | 2013 | 2012 | ||||||||||||||||||||||||
Rate as of | |||||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
Southeastern Michigan Multi-Family Properties | 5.96% | 5.96 | % | Jul-16 | $ | 38,138 | $ | 39,687 | $ | 40,065 | |||||||||||||||||
Oakview Plaza | 5.49% | 5.49 | % | Jan-17 | 25,583 | 26,909 | 27,182 | ||||||||||||||||||||
Gulf Coast Industrial Portfolio | 9.83% | 9.83 | % | Due on demand | 52,173 | 52,173 | 52,711 | ||||||||||||||||||||
Camden Multi-Family Properties (Two Individual Loans) | 5.44% | 5.44 | % | Dec-14 | 26,334 | 26,820 | 27,118 | ||||||||||||||||||||
St. Augustine Outlet Center | 6.09% | 6.09 | % | Apr-16 | 23,748 | 24,936 | 25,256 | ||||||||||||||||||||
2nd Street Project | Libor + 3.50% | 3.63 | % | Sep-16 | 37,343 | 37,343 | 13,500 | ||||||||||||||||||||
Crowe's Crossing | 5.44% | 5.44 | % | Sep-15 | 5,688 | 5,856 | 5,917 | ||||||||||||||||||||
DePaul Plaza | Libor + 3.00% | 3.2 | % | Sep-17 | 11,147 | 12,000 | 12,000 | ||||||||||||||||||||
Courtyard - Parsippany | Libor + 3.50% | 3.69 | % | Aug-18 | 7,126 | 7,987 | - | ||||||||||||||||||||
Everson Pointe | Prime + 1% with a 5.85% floor | 5.85 | % | Dec-15 | 4,418 | 4,740 | 4,851 | ||||||||||||||||||||
Courtyard - Baton Rouge | 5.56% | 5.56 | % | May-17 | 5,873 | 6,356 | - | ||||||||||||||||||||
Promissory Note (cross-collateralized by three hotels) | 4.94% | 4.94 | % | Aug-18 | 14,008 | 15,700 | - | ||||||||||||||||||||
Revolving Credit Facility (cross-collateralized by five hotels) | Libor + 4.95% | 5.22 | % | May-16 | 34,077 | 34,077 | - | ||||||||||||||||||||
Total mortgages payable | 5.94 | % | $ | 285,656 | $ | 294,584 | $ | 208,600 | |||||||||||||||||||
Contractually Scheduled Principal Maturities During Next Five Years | ' | ||||||||||||||||||||||||||
The following table shows the contractually scheduled principal maturities during the next five years and thereafter as of September 30, 2013 including, the Houston Extended Stay Hotels debt of approximately $6.5 million classified within liabilities held for sale (see Note 8 for additional information) in the Consolidated Balance Sheets: | |||||||||||||||||||||||||||
Remainder of | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | |||||||||||||||||||||
2013 | |||||||||||||||||||||||||||
$ | 53,033 | $ | 35,488 | $ | 12,641 | $ | 135,055 | $ | 43,380 | $ | 21,477 | $ | 301,074 | ||||||||||||||
Assets_and_Liabilities_Held_fo1
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations [Abstract] | ' | ||||||||||||||||
Discontinued Operations Consolidated Statements of Operations | ' | ||||||||||||||||
The following summary presents the operating results of the Houston Extended Stay Hotels and Brazos included in discontinued operations in the Consolidated Statements of Operations for the periods indicated. | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
30-Sep-13 | 30-Sep-12 | 30-Sep-13 | 30-Sep-12 | ||||||||||||||
Revenues | $ | 1,199 | $ | 991 | $ | 3,397 | $ | 3,313 | |||||||||
Operating expenses | 684 | 691 | 2,134 | 2,228 | |||||||||||||
Operating income | 515 | 300 | 1,263 | 1,085 | |||||||||||||
Interest expense | (93 | ) | (133 | ) | (283 | ) | (570 | ) | |||||||||
Other income, net | - | - | - | 133 | |||||||||||||
Gain on disposition | - | 2,098 | - | 2,098 | |||||||||||||
Net income from discontinued operations | $ | 422 | $ | 2,265 | $ | 980 | $ | 2,746 | |||||||||
Schedule of Assets and Liabilities Held for Sale | ' | ||||||||||||||||
The following summary presents the major components of assets and liabilities held for sale, of as the date indicated. | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
Net investment property | $ | 16,505 | $ | 16,438 | |||||||||||||
Tenant accounts receivable | 184 | 59 | |||||||||||||||
Prepaid expenses and other assets | 50 | 77 | |||||||||||||||
Total assets held for sale | $ | 16,739 | $ | 16,574 | |||||||||||||
Mortgages payable | $ | 6,490 | $ | 6,884 | |||||||||||||
Accounts payable and accrued expenses | 546 | 498 | |||||||||||||||
Deferred rental income | 40 | 22 | |||||||||||||||
Total liabilities held for sale | $ | 7,076 | $ | 7,404 | |||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Amount Recorded in Pursuant to Related Party Arrangment | ' | ||||||||||||||||
The Company, pursuant to the related party arrangements, has recorded the following amounts for the periods indicated: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Acquisition fees | $ | 897 | $ | 127 | $ | 2,153 | $ | 184 | |||||||||
Asset management fees | 642 | 598 | 1,901 | 1,748 | |||||||||||||
Property management fees | 235 | 356 | 1,090 | 1,076 | |||||||||||||
Development fees and leasing commissions | 754 | 339 | 1,543 | 483 | |||||||||||||
Total | $ | 2,528 | $ | 1,420 | $ | 6,687 | $ | 3,491 | |||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||
Summary of Estimated Fair Value of Debt | ' | ||||||||||||||||
The estimated fair value (in millions) of the Company's mortgage debt is summarized as follows: | |||||||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||||||
Carrying Amount | Estimated Fair | Carrying Amount | Estimated Fair | ||||||||||||||
Value | Value | ||||||||||||||||
Mortgage payable | $ | 294.6 | $ | 292.3 | $ | 208.6 | $ | 209.4 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||
Results of Operations and Total Assets of Operating Segments | ' | ||||||||||||||||||||||||
Selected results of operations for the three months ended September 30, 2013 and 2012, and total assets as of September 30, 2013 and December 31, 2012 regarding the Company's operating segments are as follows: | |||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||
Retail | Multi-Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 3,417 | 3,505 | 1,782 | 11,682 | - | $ | 20,386 | |||||||||||||||||
Property operating expenses | 966 | 1,644 | 543 | 8,962 | 1 | 12,116 | |||||||||||||||||||
Real estate taxes | 373 | 315 | 189 | 397 | - | 1,274 | |||||||||||||||||||
General and administrative costs | 13 | 74 | 9 | 26 | 3,204 | 3,326 | |||||||||||||||||||
Net operating income/(loss) | 2,065 | 1,472 | 1,041 | 2,297 | (3,205 | ) | 3,670 | ||||||||||||||||||
Depreciation and amortization | 1,234 | 614 | 647 | 847 | - | 3,342 | |||||||||||||||||||
Operating income/(loss) | $ | 831 | $ | 858 | $ | 394 | $ | 1,450 | $ | (3,205 | ) | $ | 328 | ||||||||||||
As of September 30, 2013: | |||||||||||||||||||||||||
Total Assets | $ | 124,171 | $ | 145,451 | $ | 60,513 | $ | 164,628 | $ | 210,700 | $ | 705,463 | |||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||
Retail | Multi-Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 3,585 | $ | 3,175 | $ | 1,814 | $ | 3,787 | $ | - | $ | 12,361 | |||||||||||||
Property operating expenses | 991 | 1,364 | 568 | 3,802 | (72 | ) | 6,653 | ||||||||||||||||||
Real estate taxes | 396 | 318 | 202 | 135 | (1 | ) | 1,050 | ||||||||||||||||||
General and administrative costs | 19 | 7 | 52 | 97 | 1,470 | 1,645 | |||||||||||||||||||
Net operating income/(loss) | 2,179 | 1,486 | 992 | (247 | ) | (1,397 | ) | 3,013 | |||||||||||||||||
Depreciation and amortization | 1,321 | 420 | 471 | 163 | - | 2,375 | |||||||||||||||||||
Operating income/(loss) | $ | 858 | $ | 1,066 | $ | 521 | $ | (410 | ) | $ | (1,397 | ) | $ | 638 | |||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total Assets | $ | 127,043 | $ | 68,593 | $ | 61,628 | $ | 78,205 | $ | 384,171 | $ | 719,640 | |||||||||||||
Selected results of operations for the nine months ended September 30, 2013 and 2012 regarding the Company's operating segments are as follows: | |||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||
Retail | Multi Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 10,262 | $ | 10,014 | $ | 5,359 | $ | 28,164 | $ | - | $ | 53,799 | |||||||||||||
Property operating expenses | 2,745 | 4,510 | 1,448 | 22,069 | 7 | 30,779 | |||||||||||||||||||
Real estate taxes | 1,125 | 812 | 586 | 1,064 | - | 3,587 | |||||||||||||||||||
General and administrative costs | 29 | 193 | 21 | 152 | 8,154 | 8,549 | |||||||||||||||||||
Net operating income/(loss) | 6,363 | 4,499 | 3,304 | 4,879 | (8,161 | ) | 10,884 | ||||||||||||||||||
Depreciation and amortization | 3,591 | 1,487 | 1,563 | 1,891 | - | 8,532 | |||||||||||||||||||
Operating income/(loss) | $ | 2,772 | $ | 3,012 | $ | 1,741 | $ | 2,988 | $ | (8,161 | ) | $ | 2,352 | ||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||
Retail | Multi Family | Industrial | Hospitality | Unallocated | Total | ||||||||||||||||||||
Total revenues | $ | 10,675 | $ | 9,450 | $ | 5,362 | $ | 10,714 | $ | - | $ | 36,201 | |||||||||||||
Property operating expenses | 2,752 | 4,017 | 1,578 | 9,895 | (39 | ) | 18,203 | ||||||||||||||||||
Real estate taxes | 1,193 | 984 | 532 | 348 | - | 3,057 | |||||||||||||||||||
General and administrative costs | 57 | 111 | 254 | 289 | 4,227 | 4,938 | |||||||||||||||||||
Net operating income/(loss) | 6,673 | 4,338 | 2,998 | 182 | (4,188 | ) | 10,003 | ||||||||||||||||||
Depreciation and amortization | 3,999 | 1,239 | 1,417 | 354 | - | 7,009 | |||||||||||||||||||
Operating income/(loss) | $ | 2,674 | $ | 3,099 | $ | 1,581 | $ | (172 | ) | $ | (4,188 | ) | $ | 2,994 | |||||||||||
Organization_Details
Organization (Details) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Series A Preferred Units [Member] | Series A Preferred Units [Member] | Retail [Member] | Industrial Properties [Member] | Residential Real Estate [Member] | Hospitality [Member] | Office [Member] | Wholly Owned Properties [Member] | Wholly Owned Properties [Member] | Wholly Owned Properties [Member] | Wholly Owned Properties [Member] | Partially Owned Properties [Member] | Investments in unconsolidated affiliated real estate entities [Member] | ||||
Retail [Member] | Industrial Properties [Member] | Residential Real Estate [Member] | Hospitality [Member] | Residential Real Estate [Member] | Office [Member] | |||||||||||
sqft | sqft | sqft | ||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of incorporation | 8-Jun-04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lightstone REIT, partnership formation date | 12-Jul-04 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General partner ownership interest | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 15 | 6 | 14 | 1 | 1 |
Area of real estate space | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 1,300,000 | ' | ' | ' | 1,100,000 |
Property units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,585 | 1,850 | ' | ' |
Occupancy of properties | ' | ' | ' | ' | ' | 84.00% | 69.40% | 94.40% | 68.80% | 81.40% | ' | ' | ' | ' | ' | ' |
Average revenue per available room | ' | ' | ' | ' | ' | ' | ' | ' | 64.27 | ' | ' | ' | ' | ' | ' | ' |
Number of shares redeemed | ' | ' | ' | 43,516 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption of shares amount | ' | ' | ' | $43,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, shares outstanding | ' | ' | ' | 50,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidation preference | ' | ' | ' | 50,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of notes receivable from non controlling interests | 41,097 | ' | ' | 41,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes receivable from affiliate | ' | ' | ' | $47,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | 4.63% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain_on_Disposition_of_Unconso1
Gain on Disposition of Unconsolidated Affiliated Real Estate Entities (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Gain On Disposition Of Unconsolidated Affiliated Real Estate Entities [Abstract] | ' | ' | ' |
Deferred gain on disposition | ' | $30,300 | $30,287 |
Investments_in_Unconsolidated_2
Investments in Unconsolidated Affiliated Real Estate Entities (Summary of Company's Investments in Unconsolidated Affiliated Real Estate Entities) (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Total investment in unconsolidated affiliated real estate entity | $10,550 | ' | ' |
1407 Broadway Mezz II, LLC [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Date(s) Acquired | 4-Jan-07 | ' | ' |
Ownership interest | 49.00% | ' | 49.00% |
Total investment in unconsolidated affiliated real estate entity | $10,550 | ' | ' |
Investments_in_Unconsolidated_3
Investments in Unconsolidated Affiliated Real Estate Entities (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 11, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Mortgages payable | ' | $294,584 | $294,584 | $208,600 | ' |
1407 Broadway Mezz II, LLC [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 49.00% | 49.00% | ' | 49.00% |
Debt payment | 1,300 | ' | ' | ' | ' |
Mortgages payable | 127,300 | 126,000 | 126,000 | ' | ' |
Debt instrument, maturity date | 12-Jan-23 | ' | ' | ' | ' |
Capital contributions | ' | 16,100 | 12,100 | ' | ' |
Capital reserve account | ' | ' | 13,500 | ' | ' |
Aggregate unrecorded losses of available-for-sale securities | ' | ' | 5,210 | 5,200 | ' |
Company's pro rata share of earnings before adjustment for previously unrecorded losses | ' | ' | $3,600 | ' | ' |
Grand Prairie Holdings LLC [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 40.00% | 40.00% | ' | 40.00% |
Grand Prairie Holdings LLC [Member] | Operating Partnership [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 25.00% | 25.00% | ' | ' |
Grand Prairie Holdings LLC [Member] | Pro-DFJV Holdings LLC [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 15.00% | 15.00% | ' | ' |
Livermore Valley Holdings, LLC [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 40.00% | 40.00% | ' | 40.00% |
Livermore Valley Holdings, LLC [Member] | Operating Partnership [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 25.00% | 25.00% | ' | ' |
Livermore Valley Holdings, LLC [Member] | Pro-DFJV Holdings LLC [Member] | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' |
Ownership percentage | ' | 15.00% | 15.00% | ' | ' |
Investments_in_Unconsolidated_4
Investments in Unconsolidated Affiliated Real Estate Entities (Unaudited Condensed Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Company's share of net income/(loss) | $142 | $182 | ($1,656) | $353 | |
Grand Prairie Holdings LLC [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Operating income | ' | ' | ' | ' | |
Interest expense and other, net | ' | -27 | ' | -151 | |
Income from investment in unconsolidated affiliated entity | ' | 363 | ' | 435 | |
Net income (loss) | ' | 390 | ' | 584 | |
Company's share of net income/(loss) | ' | 156 | ' | 234 | |
Ownership percentage | 40.00% | 40.00% | 40.00% | 40.00% | |
Livermore Valley Holdings, LLC [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Interest expense and other, net | ' | -50 | ' | -214 | |
Income from investment in unconsolidated affiliated entity | ' | 15 | ' | 84 | |
Net income (loss) | ' | 65 | ' | 298 | |
Company's share of net income/(loss) | ' | 26 | ' | 119 | |
Ownership percentage | 40.00% | 40.00% | 40.00% | 40.00% | |
1407 Broadway Mezz II, LLC [Member] | ' | ' | ' | ' | |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | |
Total revenue | 9,907 | 9,521 | 28,850 | [1] | 27,795 |
Property operating expenses | 7,674 | 7,444 | 21,690 | [1] | 20,432 |
Depreciation and amortization | 1,494 | 1,459 | 4,269 | [1] | 4,298 |
Operating income | 739 | 618 | 2,891 | [1] | 3,065 |
Interest expense and other, net | 648 | 1,037 | 3,519 | [1] | 3,074 |
Gain on debt extinguishment | ' | ' | 7,494 | [1] | ' |
Net income (loss) | 91 | -419 | 6,866 | [1] | -9 |
Company's share of net income/(loss) | $142 | ' | ($1,656) | ' | |
Ownership percentage | 49.00% | 49.00% | 49.00% | 49.00% | |
[1] | The nine months ended September 30, 2013 includes an adjustment of $5,210 for previously unrecorded losses. |
Investments_in_Unconsolidated_5
Investments in Unconsolidated Affiliated Real Estate Entities (Unaudited Condensed Balance Sheet) (Details) (1407 Broadway Mezz II, LLC [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, assets | $151,630 | $135,365 |
Member capital/(deficit) | 12,059 | -11,659 |
Total liabilities and members' capital/(deficit) | 151,630 | 135,365 |
Real estate, at cost [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, assets | 111,003 | 107,151 |
Intangible Assets [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, assets | 296 | 441 |
Cash and restricted cash [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, assets | 23,099 | 11,801 |
Other assets [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, assets | 17,232 | 15,972 |
Mortgage payable [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, liabilities | 126,000 | 127,250 |
Other liabilities [Member] | ' | ' |
Schedule Of Condensed Consolidating Balance Sheets [Line Items] | ' | ' |
Equity Method Investment, liabilities | $13,571 | $19,774 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 1 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
In Thousands, unless otherwise specified | Aug. 30, 2013 | Jan. 18, 2013 | Jun. 18, 2013 | Apr. 11, 2011 | Jun. 18, 2013 | 16-May-13 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | 16-May-13 |
Florida Hotel Portfolio [Member] | Holiday Inn - Auburn [Member] | Arkansas Hotel Portfolio [Member] | Arkansas Hotel Portfolio [Member] | Four Hotel Properties [Member] | Baton Rouge Hotel Portfolio [Member] | Fairfield Inn and Suites [Member] | Starwood Hotel Group Aloft Hotel [Member] | Third Party Ownership [Member] | Third Party Ownership [Member] | |
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage | ' | ' | ' | ' | ' | ' | 95.00% | 100.00% | 5.00% | 10.00% |
Cash consideration paid | $30,800 | $5,700 | $18,400 | ' | $29,100 | $15,600 | ' | ' | ' | ' |
Line of credit facility, amount outstanding | 19,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital adjustments. amount | 200 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of acquisition fees to company's advisor | 2.75% | 2.75% | 2.75% | ' | ' | 2.75% | ' | ' | ' | ' |
Amount of acquisition fees to company's advisor | 853 | 200 | 506 | ' | ' | 400 | ' | ' | ' | ' |
Fair value of assets above purchase price | ' | ' | 1,200 | 1,200 | ' | ' | ' | ' | ' | ' |
Business acquisition, land and improvements | 5,400 | 600 | 2,200 | ' | ' | 4,200 | ' | ' | ' | ' |
Business acquisition, building and improvements | 24,300 | 4,300 | 14,200 | ' | ' | 9,700 | ' | ' | ' | ' |
Business acquisition, furniture and fixtures and other assets | 1,100 | 800 | 2,000 | ' | ' | 1,700 | ' | ' | ' | ' |
Capitalization rate | 9.40% | 14.20% | 10.40% | ' | ' | 9.90% | ' | ' | ' | ' |
Mortgage notes payable | ' | ' | ' | ' | ' | $6,500 | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | 5.56% | ' | ' | ' | ' |
Acquisitions_Amounts_of_Revenu
Acquisitions (Amounts of Revenue and Net Income Included in Consolidated Statements of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Revenue | $3,920 | $6,137 |
Net loss | ($1,286) | ($2,516) |
Acquisitions_Unaudited_Pro_For
Acquisitions (Unaudited Pro Forma Results of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' |
Pro forma rental revenue | $21,438 | $17,559 | $61,829 | $52,810 |
Pro forma net income | $2,980 | $11,247 | $17,866 | $31,908 |
Pro forma net income per Company's common share, basic and diluted | $0.11 | $0.38 | $0.61 | $1.07 |
Marketable_Securities_and_Fair2
Marketable Securities and Fair Value Measurements (Summary of Available for Sale Securities) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | $110,441 | $131,601 |
Gross Unrealized Gains | 36,619 | 55,250 |
Gross Unrealized Losses | -1,555 | -421 |
Fair Value | 145,505 | 186,430 |
Equity Securities, primarily REITs [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 7 | 7 |
Gross Unrealized Gains | 2 | ' |
Gross Unrealized Losses | ' | -2 |
Fair Value | 9 | 5 |
Marco OP Units and Marco II OP Units [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 62,022 | 75,591 |
Gross Unrealized Gains | 35,697 | 53,291 |
Gross Unrealized Losses | ' | ' |
Fair Value | 97,719 | 128,882 |
Corporate Bonds And Preferred Equities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 40,174 | 43,765 |
Gross Unrealized Gains | 920 | 1,924 |
Gross Unrealized Losses | -1,298 | -317 |
Fair Value | 39,796 | 45,372 |
Mortgage Backed Securities ("MBS") [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Adjusted Cost | 8,238 | 12,238 |
Gross Unrealized Gains | ' | 35 |
Gross Unrealized Losses | -257 | -102 |
Fair Value | $7,981 | $12,171 |
Marketable_Securities_and_Fair3
Marketable Securities and Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Put Option [Member] | Call Option [Member] | Hedged Item [Member] | Margin Loan [Member] | Margin Loan [Member] | Line of Credit [Member] | Line of Credit [Member] | Mortgage Backed Securities [Member] | Marco Op Units [Member] | Marco Op Units [Member] | Marco Op Units [Member] | Marco Op Units [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 156,000 | 156,000 | ' | ' | ' |
Cost basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,600 | ' | ' | ' |
Gross realized gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500 | ' | ' | ' |
Gross gains/(losses) related to sales of securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,800 | ' | 500 | 13,900 | 1,000 |
Available for sale securities debt maturity minimum period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '27 years | ' | ' | ' | ' |
Available for sale securities debt maturity maximum period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' |
Debt instrument, interest rate basis point above reference rate | ' | ' | ' | ' | ' | ' | ' | ' | 0.85% | ' | 3.00% | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate at end of period | ' | ' | ' | ' | ' | ' | ' | ' | 1.03% | ' | ' | ' | ' | ' | ' | ' | ' |
Margin loan, outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 21,900 | 38,300 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,900 | 19,900 | ' | ' | ' | ' | ' |
Line of credit facility, number of Marco OP Units used as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 440,311 | ' | ' | ' | ' | ' | ' |
Exchangeable partnership units received | ' | ' | ' | 703,737 | ' | ' | ' | 527,803 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of Marco OP units hedged | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average strike price | 107.38 | ' | 107.38 | ' | ' | 90.32 | 109.95 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Initial collateral requirement for hedge | ' | ' | ' | ' | 6,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of hedge | ' | ' | ' | 5,600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of hedge, per share | ' | ' | ' | $10.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of hedge, liability | 21,200 | ' | 21,200 | ' | 24,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateral requirement for hedge | 23,400 | ' | 23,400 | ' | 25,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (loss), consolidated statement of operation | $4,700 | $2,000 | $4,700 | $11,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Marketable_Securities_and_Fair4
Marketable Securities and Fair Value Measurements (Marketable Securities, Available for Sale, and Derivative Financial Instruments Measured at Fair Value on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents (money market accounts) | $23,494 | $85,028 |
Marketable Securities | 145,505 | 186,430 |
Derivative Financial Instruments | -21,240 | -24,215 |
Equity Securities, primarily REITs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 9 | 5 |
Marco OP Units and Marco II OP Units [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 97,719 | 128,882 |
Corporate Bonds And Preferred Equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 39,796 | 45,372 |
MBS [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 7,981 | 12,171 |
Marco Op Units Collar [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Financial Instruments | -21,240 | -24,215 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents (money market accounts) | 23,494 | 85,028 |
Marketable Securities | 9 | 5 |
Derivative Financial Instruments | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Equity Securities, primarily REITs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 9 | 5 |
Fair Value, Inputs, Level 1 [Member] | Marco OP Units and Marco II OP Units [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds And Preferred Equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | MBS [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Marco Op Units Collar [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Financial Instruments | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents (money market accounts) | ' | ' |
Marketable Securities | 145,496 | 186,425 |
Derivative Financial Instruments | -21,240 | -24,215 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities, primarily REITs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Marco OP Units and Marco II OP Units [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 97,719 | 128,882 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds And Preferred Equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 39,796 | 45,372 |
Fair Value, Inputs, Level 2 [Member] | MBS [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | 7,981 | 12,171 |
Fair Value, Inputs, Level 2 [Member] | Marco Op Units Collar [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Financial Instruments | -21,240 | -24,215 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents (money market accounts) | ' | ' |
Marketable Securities | ' | ' |
Derivative Financial Instruments | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Equity Securities, primarily REITs [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Marco OP Units and Marco II OP Units [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds And Preferred Equities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | MBS [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Marketable Securities | ' | ' |
Fair Value, Inputs, Level 3 [Member] | Marco Op Units Collar [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative Financial Instruments | ' | ' |
Mortgages_Payable_Schedule_of_
Mortgages Payable (Schedule of Mortgages Payable) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 5.94% | ' |
Amount Due at Maturity | $285,656 | ' |
Mortgages payable | 294,584 | 208,600 |
Southeastern Michigan Multi Family Properties [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 5.96% | ' |
Maturity Date | '2016-07 | ' |
Amount Due at Maturity | 38,138 | ' |
Mortgages payable | 39,687 | 40,065 |
Oakview Plaza [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 5.49% | ' |
Maturity Date | '2017-01 | ' |
Amount Due at Maturity | 25,583 | ' |
Mortgages payable | 26,909 | 27,182 |
Gulf Coast Industrial Portfolio [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 9.83% | ' |
Amount Due at Maturity | 52,173 | ' |
Mortgages payable | 52,173 | 52,711 |
Camden Multi Family Properties [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 5.44% | ' |
Maturity Date | '2014-12 | ' |
Amount Due at Maturity | 26,334 | ' |
Mortgages payable | 26,820 | 27,118 |
St Augustine Outlet Center [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 6.09% | ' |
Maturity Date | '2016-04 | ' |
Amount Due at Maturity | 23,748 | ' |
Mortgages payable | 24,936 | 25,256 |
2nd Street Project [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate basis point above reference rate | 3.50% | ' |
Weighted Average Interest Rate | 3.63% | ' |
Maturity Date | '2016-09 | ' |
Amount Due at Maturity | 37,343 | ' |
Mortgages payable | 37,343 | 13,500 |
Crowe's Crossing [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 5.44% | ' |
Maturity Date | '2015-09 | ' |
Amount Due at Maturity | 5,688 | ' |
Mortgages payable | 5,856 | 5,917 |
DePaul Plaza [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate basis point above reference rate | 3.00% | ' |
Weighted Average Interest Rate | 3.20% | ' |
Maturity Date | '2017-09 | ' |
Amount Due at Maturity | 11,147 | ' |
Mortgages payable | 12,000 | 12,000 |
Marriott Courtyard Parsippany [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate basis point above reference rate | 3.50% | ' |
Weighted Average Interest Rate | 3.69% | ' |
Maturity Date | '2018-08 | ' |
Amount Due at Maturity | 7,126 | ' |
Mortgages payable | 7,987 | ' |
Everson Pointe [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate basis point above reference rate | 1.00% | ' |
Floor rate | 5.85% | ' |
Weighted Average Interest Rate | 5.85% | ' |
Maturity Date | '2015-12 | ' |
Amount Due at Maturity | 4,418 | ' |
Mortgages payable | 4,740 | 4,851 |
Courtyard Baton Rouge [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Stated interest rate | 5.56% | ' |
Weighted Average Interest Rate | 5.56% | ' |
Maturity Date | '2017-05 | ' |
Amount Due at Maturity | 5,873 | ' |
Mortgages payable | 6,356 | ' |
Promissory Note [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Weighted Average Interest Rate | 4.94% | ' |
Maturity Date | '2018-08 | ' |
Amount Due at Maturity | 14,008 | ' |
Mortgages payable | 15,700 | ' |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Debt instrument, interest rate basis point above reference rate | 4.95% | ' |
Weighted Average Interest Rate | 5.22% | ' |
Maturity Date | '2016-05 | ' |
Amount Due at Maturity | 34,077 | ' |
Mortgages payable | $34,077 | ' |
Mortgages_Payable_Narrative_De
Mortgages Payable (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 18, 2013 | Jul. 29, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 06, 2013 | Sep. 30, 2013 | Aug. 06, 2013 |
Loan agreements [Member] | Loan agreements [Member] | Revolving loans [Member] | Revolving loans [Member] | Promissory Note [Member] | Houston Extended Stay Hotels [Member] | 2nd Street Project [Member] | 2nd Street Project [Member] | Courtyard Baton Rouge [Member] | CY Parsippany [Member] | CY Parsippany [Member] | CY Parsippany [Member] | CY Parsippany [Member] | ||||
Mortgage payable [Member] | Revolving loans [Member] | Revolving loans [Member] | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Libor rate | 0.18% | 0.18% | 0.21% | ' | ' | 5.23% | ' | ' | ' | ' | ' | ' | ' | 4.95% | ' | ' |
Loan, recourse percentage | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' | ' | ' | ' | ' | ' |
Liabilities held for sale | $7,076 | $7,076 | $7,404 | ' | ' | ' | ' | ' | $6,500 | ' | ' | ' | ' | ' | ' | ' |
Cash in restricted escrows accounts | 39,550 | 39,550 | 44,639 | 14,200 | 9,400 | ' | ' | 1,800 | ' | ' | 7,000 | ' | ' | ' | ' | ' |
Mortgages due | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500 | ' | ' | ' | ' |
Stated interest rate | ' | ' | ' | ' | ' | ' | ' | 4.94% | ' | ' | ' | 5.56% | ' | ' | ' | ' |
Note term | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility agreement, monthly principal payment | ' | ' | ' | ' | ' | ' | ' | 91 | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' | ' | ' | ' | ' | ' | 34,100 | ' |
Additional amount from Revolving Credit Facility | ' | ' | ' | ' | ' | 19,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate basis point above reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | 3.50% | ' | ' | ' |
Loan amount | ' | ' | ' | ' | ' | ' | ' | 15,700 | ' | ' | ' | ' | ' | 8,000 | ' | 14,200 |
Remaining amount that can be borrowed | ' | ' | ' | ' | ' | ' | 14,200 | ' | ' | ' | ' | ' | ' | ' | 10,900 | ' |
Default interest accrued | $500 | $1,100 | $700 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgages_Payable_Contractuall
Mortgages Payable (Contractually Scheduled Principal Maturities During Next Five Years) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Mortgages Payable [Abstract] | ' |
Remainder of 2013 | $53,033 |
2014 | 35,488 |
2015 | 12,641 |
2016 | 135,055 |
2017 | 43,380 |
Thereafter | 21,477 |
Total | $301,074 |
Assets_and_Liabilities_Held_fo2
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations (Narrative) (Details) (USD $) | 9 Months Ended | 1 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 30, 2012 | Sep. 30, 2012 |
Brazos Crossing Power Center [Member] | Brazos Crossing Power Center [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' |
Disposal of discontinued operation | ' | ' | $7,700 | ' |
Repayment of debt | 2,039 | 13,451 | ' | 6,200 |
Gain (loss) on disposition assets | ' | ' | ' | $2,100 |
Assets_and_Liabilities_Held_fo3
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations (Summary Presents Operating Results Of Brazos Within Retail Segment Included In Discontinued Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net income from discontinued operations | $422 | $2,265 | $980 | $2,746 |
Brazos Crossing Power Center [Member] | ' | ' | ' | ' |
Discontinued Operations [Line Items] | ' | ' | ' | ' |
Revenues | 1,199 | 991 | 3,397 | 3,313 |
Operating expenses | 684 | 691 | 2,134 | 2,228 |
Operating Income | 515 | 300 | 1,263 | 1,085 |
Interest expense | -93 | -133 | -283 | -570 |
Other income, net | ' | ' | ' | 133 |
Gain on disposition | ' | 2,098 | ' | 2,098 |
Net income from discontinued operations | $422 | $2,265 | $980 | $2,746 |
Assets_and_Liabilities_Held_fo4
Assets and Liabilities Held for Sale, Assets and Liabilities Disposed of and Discontinued Operations (Summary of Assets and Liabilities Held for Sale) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Discontinued Operations [Line Items] | ' | ' |
Net investment property | $424,015 | $326,294 |
Tenant accounts receivable | 3,745 | 2,656 |
Prepaid expenses and other assets | 17,878 | 14,342 |
Total assets held for sale | 16,739 | 16,574 |
Mortgages payable | 294,584 | 208,600 |
Accounts payable and other accrued expenses | 40,508 | 42,678 |
Deferred rental income | 1,161 | 857 |
Total liabilities held for sale | 7,076 | 7,404 |
Brazos Crossing Power Center [Member] | ' | ' |
Discontinued Operations [Line Items] | ' | ' |
Net investment property | 16,505 | 16,438 |
Tenant accounts receivable | 184 | 59 |
Prepaid expenses and other assets | 50 | 77 |
Total assets held for sale | 16,739 | 16,574 |
Mortgages payable | 6,490 | 6,884 |
Accounts payable and other accrued expenses | 546 | 498 |
Deferred rental income | 40 | 22 |
Total liabilities held for sale | $7,076 | $7,404 |
Equity_Details
Equity (Details) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Equity [Abstract] | ' |
Tender offer, number of shares authorized for repurchase | 4,700,000 |
Tender offer, price per share | $10.60 |
Stock repurchase program, authorized amount | $50,000 |
Common stock tendered and not withdrawn | 5,000,000 |
Related_Party_Transactions_Amo
Related Party Transactions (Amount Recorded in Pursuant to Related Party Arrangment) (Details) (Related Party [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Acquisition fees | $897 | $127 | $2,153 | $184 |
Asset management fees | 642 | 598 | 1,901 | 1,748 |
Property management fees | 235 | 356 | 1,090 | 1,076 |
Development fees and leasing commissions | 754 | 339 | 1,543 | 483 |
Total | $2,528 | $1,420 | $6,687 | $3,491 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Aug. 18, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 18, 2011 | Sep. 28, 2012 | Sep. 30, 2013 | Aug. 18, 2011 | Jun. 27, 2013 | Apr. 12, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 12, 2011 | Sep. 30, 2013 | Jun. 30, 2013 |
2nd Street Project [Member] | 2nd Street Owner [Member] | 2nd Street Owner [Member] | 2nd Street Owner [Member] | 2nd Street Owner [Member] | 2nd Street JV [Member] | 2nd Street JV [Member] | 2nd Street JV [Member] | CP Boston Joint Venture [Member] | Rego Park Joint Venture [Member] | Rego Park Joint Venture [Member] | Lightstone REIT II [Member] | Lightstone REIT II [Member] | SLP Units [Member] | Promissory Note [Member] | ||||
Construction Loan [Member] | Construction Loan [Member] | Interim Loan [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distributions declared | $15,287 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500 | ' |
Cumulative distribution declared | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,400 | ' |
Cumulative distribution paid | 7,751 | 5,944 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | 2,100 | ' | 11,800 | ' |
Notes issued | ' | 2,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000 |
Loan payable, interest rate spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | 4.95% |
Loans payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 |
Mortgage notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,100 | ' | ' | ' | ' | ' |
Notes outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,300 | ' | 19,500 | ' | ' | ' | 4,000 |
Discount on debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,400 | ' | ' | ' | ' | ' |
Monthly interest payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100 | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 75.00% | 20.00% | 90.00% | ' | ' | 10.00% | ' | ' |
Non-managing membership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | 25.00% | ' | ' | ' | ' | ' | ' | ' |
Member interest transfered | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,500 | 18,000 | ' | ' | ' | ' |
Payment to acquire land | ' | ' | ' | ' | 19,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interim loan | ' | ' | ' | ' | ' | ' | ' | 13,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated total development cost | ' | ' | ' | 81,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount sponsor reimbursed operating partnership | ' | ' | ' | ' | ' | ' | ' | ' | 4,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding balance | 41,783 | ' | 63,293 | ' | ' | 37,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, unused borrowing capacity | ' | ' | ' | ' | ' | $13,700 | $13,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_Instruments_Details
Financial Instruments (Details) (Mortgage payable [Member], USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Mortgage payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying Amount | $294,600 | $208,600 |
Estimated Fair Value | $292,300 | $209,400 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | $20,386 | $12,361 | $53,799 | $36,201 | ' |
Property operating expenses | 12,116 | 6,653 | 30,779 | 18,203 | ' |
Real estate taxes | 1,274 | 1,050 | 3,587 | 3,057 | ' |
General and administrative costs | 3,326 | 1,645 | 8,549 | 4,938 | ' |
Net operating income/(loss) | 3,670 | 3,013 | 10,884 | 10,003 | ' |
Depreciation and amortization | 3,342 | 2,375 | 8,532 | 7,009 | ' |
Operating income/(loss) | 328 | 638 | 2,352 | 2,994 | ' |
Total Assets | 705,463 | ' | 705,463 | ' | 719,640 |
Retail [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 3,417 | 3,585 | 10,262 | 10,675 | ' |
Property operating expenses | 966 | 991 | 2,745 | 2,752 | ' |
Real estate taxes | 373 | 396 | 1,125 | 1,193 | ' |
General and administrative costs | 13 | 19 | 29 | 57 | ' |
Net operating income/(loss) | 2,065 | 2,179 | 6,363 | 6,693 | ' |
Depreciation and amortization | 1,234 | 1,321 | 3,591 | 3,999 | ' |
Operating income/(loss) | 831 | 858 | 2,772 | 2,674 | ' |
Total Assets | 124,171 | ' | 124,171 | ' | 127,043 |
Multi Family [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 3,505 | 3,175 | 10,014 | 9,450 | ' |
Property operating expenses | 1,644 | 1,364 | 4,510 | 4,017 | ' |
Real estate taxes | 315 | 318 | 812 | 984 | ' |
General and administrative costs | 74 | 7 | 193 | 111 | ' |
Net operating income/(loss) | 1,472 | 1,486 | 4,499 | 4,338 | ' |
Depreciation and amortization | 614 | 420 | 1,487 | 1,239 | ' |
Operating income/(loss) | 858 | 1,066 | 3,012 | 3,099 | ' |
Total Assets | 145,451 | ' | 145,451 | ' | 68,593 |
Industrial [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 1,782 | 1,814 | 5,359 | 5,362 | ' |
Property operating expenses | 543 | 568 | 1,448 | 1,578 | ' |
Real estate taxes | 189 | 202 | 586 | 532 | ' |
General and administrative costs | 9 | 52 | 21 | 254 | ' |
Net operating income/(loss) | 1,041 | 992 | 3,304 | 2,998 | ' |
Depreciation and amortization | 647 | 471 | 1,563 | 1,417 | ' |
Operating income/(loss) | 394 | 521 | 1,741 | 1,581 | ' |
Total Assets | 60,513 | ' | 60,513 | ' | 61,628 |
Hospitality [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | 11,682 | 3,787 | 28,164 | 10,714 | ' |
Property operating expenses | 8,962 | 3,802 | 22,069 | 9,895 | ' |
Real estate taxes | 397 | 135 | 1,064 | 348 | ' |
General and administrative costs | 26 | 97 | 152 | 289 | ' |
Net operating income/(loss) | 2,297 | -247 | 4,879 | 182 | ' |
Depreciation and amortization | 847 | 163 | 1,891 | 354 | ' |
Operating income/(loss) | 1,450 | -410 | 2,988 | 354 | ' |
Total Assets | 164,628 | ' | 164,628 | ' | 78,205 |
Unallocated [Member] | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' |
Property operating expenses | 1 | -72 | 7 | -39 | ' |
Real estate taxes | ' | -1 | ' | ' | ' |
General and administrative costs | 3,204 | 1,470 | 8,154 | 4,227 | ' |
Net operating income/(loss) | -3,205 | -1,397 | -8,161 | -4,188 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' |
Operating income/(loss) | -3,205 | -1,397 | -8,161 | -4,188 | ' |
Total Assets | $210,700 | ' | $210,700 | ' | $384,171 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Apr. 17, 2013 | Nov. 21, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Grand Prairie Outlet Center [Member] | Grand Prairie Outlet Center [Member] | LVP Parties [Member] | LVP Parties [Member] | POAC/Mill Run [Member] | Outlet Centers [Member] | Outlet Centers [Member] | Livermore Land Parcel [Member] | |||
Lightstone Value Plus REIT Inc. [Member] | Holding Entities [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||
Guarantor Obligations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement amount paid to Jonathan Gould | $210 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential tax indemnity, including gross-up for taxes payment, using current tax rates | ' | ' | ' | ' | ' | ' | 95,700 | ' | ' | ' |
Period in which Simon may not engage in recognition of the "built-in gain" starting from the time of the closing | ' | ' | ' | ' | '8 years | ' | ' | '8 years | ' | ' |
Guaranties period for collection of revolving credit facility following the closing of the outlet centers transaction | ' | ' | ' | ' | ' | '4 years | ' | ' | '4 years | ' |
Potential damages | ' | 164 | ' | ' | ' | ' | ' | ' | ' | ' |
Potential additional consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 |
Acquisition purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 |
Gain on disposition of interest | ' | ' | $1,200 | $3,000 | ' | ' | ' | ' | ' | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | 9 Months Ended | |
Oct. 15, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Subsequent Event [Line Items] | ' | ' | ' |
Distribution payment in form of cash | $1,500,000 | ' | ' |
Percentage of distribution payment in form of cash | 32.00% | ' | ' |
Tender offer, number of shares authorized for repurchase | ' | 4,700,000 | ' |
Repurchase amount | ' | 52,478,000 | 3,014,000 |
Distribution paid from the issuance of common stock through the company Distribution Reinvestment Program [Member] | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' |
Dividends payable | 4,800,000 | ' | ' |
Distribution payment in form of shares | 100 | ' | ' |
Distribution payment, price per share | $11.21 | ' | ' |
Distribution payment in form of cash | 3,300,000 | ' | ' |
Percentage of distribution payment in form of cash | 68.00% | ' | ' |
Dividend Declared [Member] | ' | ' | ' |
Subsequent Event [Line Items] | ' | ' | ' |
Distribution on per day basis | $1.92 | ' | ' |
Number of days used to calculate daily amount of distribution | '365 days | ' | ' |
Face value of share | $10 | ' | ' |
Annualized rate of dividend | 7.00% | ' | ' |
Distribution payment date | 15-Jan-15 | ' | ' |