Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Lightstone Value Plus Real Estate Investment Trust, Inc. | |
Entity Central Index Key | 0001296884 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23.4 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Land and improvements | $ 36,687 | $ 36,786 |
Building and improvements | 117,112 | 117,852 |
Furniture and fixtures | 2,284 | 2,265 |
Construction in progress | 137,817 | 63,519 |
Gross investment property | 293,900 | 220,422 |
Less accumulated depreciation | (30,455) | (30,028) |
Net investment property | 263,445 | 190,394 |
Investments in related parties | 82,039 | 102,008 |
Cash and cash equivalents | 69,752 | 35,565 |
Marketable securities and other investments | 63,267 | 106,949 |
Restricted cash | 2,965 | 1,017 |
Notes receivable, net | 11,944 | 0 |
Prepaid expenses and other assets | 3,027 | 3,050 |
Assets held for disposition | 0 | 37,226 |
Total Assets | 496,439 | 476,209 |
Liabilities and Stockholders' Equity | ||
Mortgages payable, net | 151,109 | 118,401 |
Notes payable, net | 17,996 | 0 |
Accounts payable, accrued expenses and other liabilities | 3,202 | 3,024 |
Due to related parties | 341 | 432 |
Tenant allowances and deposits payable | 706 | 611 |
Distributions payable | 4,043 | 4,134 |
Deferred rental income | 715 | 662 |
Liabilities held for disposition | 0 | 50,704 |
Total Liabilities | 178,112 | 177,968 |
Commitments and contingencies | ||
Company's Stockholders Equity: | ||
Preferred shares, $0.01 par value, 10,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 60,000 shares authorized, 23,407 and 23,708 shares issued and outstanding, respectively | 235 | 237 |
Additional paid-in-capital | 181,196 | 184,469 |
Accumulated other comprehensive loss | (615) | (2,251) |
Accumulated surplus | 116,659 | 101,382 |
Total Company's stockholders' equity | 297,475 | 283,837 |
Noncontrolling interests | 20,852 | 14,404 |
Total Stockholders' Equity | 318,327 | 298,241 |
Total Liabilities and Stockholders' Equity | $ 496,439 | $ 476,209 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 10,000 | 10,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000 | 60,000 |
Common stock, shares issued | 23,407 | 23,708 |
Common stock, shares outstanding | 23,407 | 23,708 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Rental income | $ 3,601 | $ 3,651 |
Tenant recovery income | 433 | 392 |
Total revenues | 4,034 | 4,043 |
Expenses: | ||
Property operating expenses | 1,161 | 1,229 |
Real estate taxes | 284 | 280 |
General and administrative costs | 829 | 1,166 |
Depreciation and amortization | 1,279 | 1,311 |
Total operating expenses | 3,553 | 3,986 |
Operating income | 481 | 57 |
Other (loss)/income, net | (44) | 109 |
Interest and dividend income | 3,902 | 5,177 |
Interest expense | (399) | (1,597) |
Unrealized gain/(loss) on marketable equity securities | 3,117 | (3,807) |
Loss on sale and redemption of marketable securities | (311) | (3) |
Net income/(loss) from continuing operations | 6,746 | (64) |
Net income/(loss) from discontinued operations | 13,481 | (731) |
Net income/(loss) | 20,227 | (795) |
Less: net (income)/loss attributable to noncontrolling interests | (854) | 110 |
Net income/(loss) attributable to Company's common shares | $ 19,373 | $ (685) |
Basic and diluted net income/(loss) per Company's common share: | ||
Continuing operations | $ 0.26 | $ 0 |
Discontinued operations | 0.57 | (0.03) |
Net income/(loss) per Company's common share, basic and diluted | $ 0.83 | $ (0.03) |
Weighted average number of common shares outstanding, basic and diluted | 23,478 | 24,781 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income/(loss) | $ 20,227 | $ (795) |
Other comprehensive income/(loss) | ||
Holding gain/(loss) on available for sale debt securities | 1,360 | (1,032) |
Reclassification adjustment for loss included in net income | 311 | 3 |
Other comprehensive income/(loss) | 1,671 | (1,029) |
Comprehensive income/(loss) | 21,898 | (1,824) |
Less: Comprehensive (income)/loss attributable to noncontrolling interests | (889) | 131 |
Comprehensive income/(loss) attributable to Company's common shares | $ 21,009 | $ (1,693) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Accumulated Surplus [Member] | Noncontrolling Interest [Member] | |
BALANCE at Dec. 31, 2017 | $ 315,370 | $ 248 | $ 194,497 | $ 15,467 | $ 86,956 | $ 18,202 | |
BALANCE (in shares) at Dec. 31, 2017 | 24,847 | ||||||
Reclassification of other accumulated comprehensive income to accumulated surplus | 0 | $ 0 | 0 | (15,476) | 15,476 | 0 | |
Net income/(loss) | (795) | 0 | 0 | 0 | (685) | (110) | |
Other comprehensive income/(loss) | (1,029) | 0 | 0 | (1,009) | 0 | (20) | |
Distributions declared | [1] | (4,270) | 0 | 0 | 0 | (4,270) | 0 |
Distributions paid to noncontrolling interests | (833) | 0 | 0 | 0 | 0 | (833) | |
Contributions received from noncontrolling interests | 1 | 0 | 0 | 0 | 0 | 1 | |
Redemption and cancellation of shares | (1,253) | $ (1) | (1,252) | 0 | 0 | 0 | |
Redemption and cancellation of shares (in shares) | (125) | ||||||
Shares issued from distribution reinvestment program | 0 | ||||||
BALANCE at Mar. 31, 2018 | 307,191 | $ 247 | 193,245 | (1,018) | 97,477 | 17,240 | |
BALANCE (in shares) at Mar. 31, 2018 | 24,722 | ||||||
BALANCE at Dec. 31, 2018 | 298,241 | $ 237 | 184,469 | (2,251) | 101,382 | 14,404 | |
BALANCE (in shares) at Dec. 31, 2018 | 23,708 | ||||||
Net income/(loss) | 20,227 | $ 0 | 0 | 0 | 19,373 | 854 | |
Other comprehensive income/(loss) | 1,671 | 0 | 0 | 1,636 | 0 | 35 | |
Distributions declared | [1] | (4,096) | 0 | 0 | 0 | (4,096) | 0 |
Distributions paid to noncontrolling interests | (831) | 0 | 0 | 0 | 0 | (831) | |
Contributions received from noncontrolling interests | 6,390 | 0 | 0 | 0 | 0 | 6,390 | |
Redemption and cancellation of shares | (3,328) | $ (3) | (3,325) | ||||
Redemption and cancellation of shares (in shares) | (306) | ||||||
Shares issued from distribution reinvestment program | 53 | $ 1 | 52 | 0 | 0 | 0 | |
Shares issued from distribution reinvestment program (in shares) | 5 | ||||||
BALANCE at Mar. 31, 2019 | $ 318,327 | $ 235 | $ 181,196 | $ (615) | $ 116,659 | $ 20,852 | |
BALANCE (in shares) at Mar. 31, 2019 | 23,407 | ||||||
[1] | Distributions per share were $0.175. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 20,227 | $ (795) |
Less net income/(loss) – discontinued operations | 13,481 | (731) |
Net income/(loss) – continuing operations | 6,746 | (64) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,279 | 1,311 |
Mark to market adjustment on derivative financial instruments | 49 | (108) |
Unrealized (gain)/loss on marketable equity securities, available for sale | (3,117) | 3,807 |
Loss on sale and redemption of marketable securities, available for sale | 311 | 3 |
Amortization of deferred financing costs | 235 | 150 |
Noncash Interest Income | (234) | 0 |
Other non-cash adjustments | 288 | (6) |
Changes in assets and liabilities: | ||
Increase in prepaid expenses and other assets | (115) | (332) |
Increase/(decrease) in tenant allowances and deposits payable | 95 | (4) |
Increase/(decrease) in accounts payable, accrued expenses and other liabilities | 435 | (1,167) |
Decrease in due to related parties | (2) | (26) |
Increase in deferred rental income | 53 | 84 |
Net cash provided by operating activities – continuing operations | 6,023 | 3,648 |
Net cash (used in)/provided by operating activities – discontinued operations | (55) | 828 |
Net cash provided by operating activities | 5,968 | 4,476 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (74,319) | (357) |
Purchase of marketable securities | (990) | (62,422) |
Proceeds from sale of marketable securities | 49,180 | 48 |
Investment in joint venture | (33) | (18) |
Proceeds from joint venture | 2 | 0 |
Funding of notes receivable | (12,000) | 0 |
Proceeds from investments in related parties | 20,000 | 37,500 |
Investments in related parties | 0 | (9,929) |
Net cash used in investing activities – continuing operations | (18,160) | (35,178) |
Net cash used in investing activities – discontinued operations | (239) | (258) |
Net cash used in investing activities | (18,399) | (35,436) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from mortgage financing | 35,535 | 0 |
Mortgage principal payments | (411) | (398) |
Payment of loan fees and expenses | (2,655) | 0 |
Proceeds from line of credit | 18,000 | 0 |
Redemption and cancellation of common shares | (3,328) | (1,253) |
Contributions received from noncontrolling interests | 6,390 | 1 |
Distributions paid to noncontrolling interests | (831) | (833) |
Distributions paid to Company's common stockholders | (4,134) | (4,387) |
Net cash provided by/(used in) financing activities | 48,566 | (6,870) |
Net change in cash, cash equivalents and restricted cash | 36,135 | (37,830) |
Cash, cash equivalents and restricted cash, beginning of year | 36,582 | 119,219 |
Cash, cash equivalents and restricted cash, end of period | 72,717 | 81,389 |
The following is a summary of the Company's cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: | ||
Cash and cash equivalents, end of year | 69,752 | 77,763 |
Restricted cash | 2,965 | 3,626 |
Cash, cash equivalents and restricted cash, end of period | $ 72,717 | $ 81,389 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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. The Company currently seeks to originate, acquire and manage a diverse portfolio of real estate-related investments. 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% interest as of March 31, 2019. 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. Subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions and managing the Company’s day-to-day operations. Through his ownership and control of The Lightstone Group, David Lichtenstein is the indirect owner of the Advisor and the indirect owner and manager of Lightstone SLP, LLC, which has subordinated profits interests (“SLP units”) in the Operating Partnership. Mr. Lichtenstein also acts as the Company’s Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control the Lightstone REIT or the Operating Partnership. 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. As of March 31, 2019, on a collective basis, the Company wholly owned or majority owned and consolidated the operating results and financial condition of two retail properties (St. Augustine Outlet Center and DePaul Plaza) containing a total of approximately 0.5 million square feet of retail space, and one multi-family residential property (Gantry Park Landing) containing a total of 199 units. All of the Company’s properties are located within the United States. As of March 31, 2019, the St. Augustine Outlet Center, DePaul Plaza and Gantry Park Landing were 76%, 85% and 97% occupied, respectively. Tender Offer The Company commenced a tender offer on April 19, 2019, pursuant to which it is offering to acquire up to 0.5 million shares of its common stock from the holders of the shares at a purchase price equal to $7.00 per share, or $3.5 million in the aggregate (the “Tender Offer”). Unless extended or withdrawn, the Tender Offer will expire on May 31, 2019. The Company has suspended its share repurchase program during the pendency of the Tender Offer as required by the rules of the United States Securities and Exchange Commission (the (“SEC”). No repurchases will be made under the share repurchase program during the pendency of this Offer and for ten business days thereafter. Discontinued Operations During the first quarter of 2019, a portfolio comprised of the Company’s industrial properties (the “Gulf Coast Industrial Portfolio”) which were previously included in the Company’s Industrial Segment, met the criteria to be classified as discontinued operations in the consolidated statements of operations for all periods presented. Additionally, the associated assets and liabilities of ten of the properties within the Gulf Coast Industrial Portfolio which are located in Louisiana (the “Louisiana Properties”) have been reclassified as held for disposition in the consolidated balance sheet as of December 31, 2018. The disposition of the Louisiana Properties, which represented all of the Company’s remaining industrial properties, represented a strategic shift that had a major effect on the Company’s operations and financial results and therefore, upon their disposition, the operating results of the entire Gulf Coast Industrial Portfolio were classified as discontinued operations in the Company’s consolidated statements of operations for all periods presented (See Note 7). Segment Reporting Since its inception, the Company has owned and managed various commercial and residential properties located thoughout the United States. It historically operated within four business segments which were: (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) hospitality (the “Hospitality Segment”). Additionally, it presented as unallocated amounts (“Unallocated”) its (i) investments in real estate companies which were unconsolidated, (ii) other real estate-related investments and (iii) corporate operations. However, during 2015 the Company disposed of substantially all of its hospitality properties and subsequently in 2017 sold its only remaining hospitality property and therefore, no longer had a Hospitality Segment. Additionally, during the first quarter of 2019, the Company disposed of all of its remaining industrial properties and no longer has an Industrial Segment. As of March 31, 2019, on a collective basis, the Company wholly owned or majority owned and consolidated the operating results and financial condition of the St. Augustine Outlet Center, DePaul Plaza and Gantry Park Landing. As a result of the changes in the composition of the Company’s real estate investments, the segment financial information is no longer relevant to the Company’s chief operating decision maker and it does not drive resource allocation decisions. Therefore, the Company now evaluates all of its real estate investments as one operating segment and accordingly will no longer report segment information in its consolidated financial statements. Noncontrolling Interests Partners of Operating Partnership On July 6, 2004, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The limited partner has the right to convert operating partnership units into cash or, at the option of the Company, an equal number of shares of common stock of the Company, as allowed by the limited partnership agreement. In connection with the Company’s initial public offering, Lightstone SLP, LLC, an affiliate of the Advisor, purchased an aggregate of $30.0 million of SLP Units in the Operating Partnership at a cost of $100,000 per unit. In addition, 497,209 units of common limited partnership interest in the Operating Partnership (“Common Units”) were issued during the years ended December 31, 2008 and 2009 and remain outstanding as of March 31, 2019. Other Noncontrolling Interests in Consolidated Subsidiaries As of March 31, 2019, the other noncontrolling interests in consolidated subsidiaries include ownership interests in (i) Pro-DFJV Holdings LLC (“PRO”) held by the Company’s Sponsor, (ii) 50-01 2nd St. Associates LLC (the “2nd Street Joint Venture”), held by the Company’s Sponsor and other affiliates, (iii) the 162nd Street Joint Venture I held by an affiliate of the Company’s Sponsor and (iv) the 162nd Street Joint Venture II held by an affiliate of the Company’s Sponsor. PRO’s holdings principally consist of Marco OP Units and Marco II OP Units (see Note 4). The 2nd Street Joint Venture owns Gantry Park Landing, a multi-family apartment building located in Queens, NY. Both the 162nd Street Joint Venture I and the 162nd Street Joint Venture II each hold a promissory note collateralized by land parcels being developed by unaffiliated third parties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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. There are judgments and estimates involved in determining if an entity in which we have made an investment is a VIE and, if so, whether we are the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements. 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, 2018. 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 presentation 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 (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 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. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and real-estate related investments, marketable securities, notes receivable, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2018 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. Consolidated VIEs The Company consolidates the 162nd Street Joint Venture I and 162nd Street Joint Venture II, which are variable interest entities, or VIEs, for which we are the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A limited partnership, or legal entities such as an LLC, are considered a VIE when the majority of the limited partners unrelated to the general partner possess neither the right to remove the general partner without cause, nor certain rights to participate in the decisions that most significantly affect the financial results of the partnership. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. Recently Adopted Accounting Pronouncements In August 2018, the SEC adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statements. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance will result in the inclusion of a quarter to date consolidated statement of stockholders equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the FASB issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases for leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued an accounting standards update which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. Supplemental Cash Flow Information Supplemental cash flow information for the periods indicated is as follows: For the Three Months Ended March 31, 2019 2018 Cash paid for interest $ 1,601 $ 1,433 Distributions declared but not paid $ 4,043 $ 4,270 Investment property acquired but not paid $ 160 $ - Assets transferred due to foreclosure $ 37,299 $ - Liabilities extinguised in foreclosure $ 50,914 $ - Reclassification of accumulated other comprehensive income and $ - $ 15,476 Holding loss on marketable securities $ 1,671 $ 1,029 Value of shares issued from distribution reinvestment program $ 53 $ - Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation. |
Development Projects
Development Projects | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Development Projects | 3. Development Projects Lower East Side Moxy Hotel On December 3, 2018, the Company, through a subsidiary of the Operating Partnership, acquired three parcels of land located at 147-151 Bowery, New York, New York (collectively, the “Bowery Land”) from 151 Emmut Properties LLC and 145-149 Bowery LLC, both unaffiliated third parties, for aggregate consideration of approximately $56.5 million, excluding closing and other acquisition related costs, on which it intends to develop and construct a 296-room Marriott Moxy hotel (the “Lower East Side Moxy Hotel”). Additionally, on December 6, 2018, the Company, though a subsidiary of the Operating Partnership, acquired certain air rights located at 329 Broome Street, New York, New York (the “Air Rights”) from B.R.P. Realty Corp., an unaffiliated third party, for approximately $2.4 million, excluding closing and other acquisition related costs. The Company intends to use the Air Rights in connection with the development and construction of the Lower East Side Moxy Hotel. In connection with the acquisition of the Bowery Land and the Air Rights , the Advisor earned an acquisition fee equal to 2.75% of the gross contractual purchase price, which was approximately $1.6 million. As of March 31, 2019 and December 31, 2018, the Company has incurred and capitalized to construction in progress an aggregate of $64.5 million and $63.3 million, respectively, related to the acquisition of the Bowery Land and Air Rights and other development costs attributable to the Lower East Side Moxy Hotel. During the three months ended March 31, 2019, the Company capitalized interest of approximately $1.1 million in connection with the development of the Lower East Side Moxy Hotel. Exterior Street Land On February 27, 2019, the Company, through subsidiaries of the Operating Partnership, acquired two adjacent parcels of land located at 355 and 399 Exterior Street, New York, New York (collectively, the “Exterior Street Land”), from Borden Realty Corp and 399 Exterior Street Associates LLC, unaffiliated third parties, for an aggregate purchase price of approximately $59.0 million, excluding closing and other acquisition related costs. The Company currently expects to develop and construct a multi-family residential property on the Exterior Street Land . On March 29, 2019, the Company entered into a $35.0 million loan (the “Exterior Street Loan”) scheduled to mature on April 9, 2020, with two, six-month extension options, subject to certain conditions. The Exterior Street Loan requires monthly interest payments through its maturity date and bears interest at 4.50% through its maturity. The Exterior Street Mortgage is collateralized by the Exterior Street Land. In connection with the acquisition of the Exterior Land, the Advisor earned an acquisition fee equal to 2.75% of the gross aggregate contractual purchase price, which was approximately $1.6 million. As of March 31, 2019, the Company has incurred and capitalized to construction in progress an aggregate of $61.7 million related to the acquisition of the Exterior Street Land and other development costs attributable to the Exterior Street Land. During the three months ended March 31, 2019, the Company capitalized interest of approximately $0.3 million in connection with the development of the Exterior Street Land. Santa Clara Data Center On January 10, 2019, the Company, through subsidiaries of the Operating Partnership, acquired a parcel of land located at 2175 Martin Avenue, Santa Clara, CA (the “Martin Avenue Land”) from The Chioini Living Trust, an unaffiliated third party, for approximately $10.6 million, excluding closing and other acquisition related costs, on which the Company is developing a data center (the “Santa Clara Data Center”). In connection with the acquisition of the Martin Avenue Land , the Advisor earned an acquisition fee equal to 2.75% of the gross contractual purchase price, which was approximately $0.2 million. As of March 31, 2019, the Company has incurred and capitalized to construction in progress an aggregate of $11.3 million related to the acquisition of the Martin Avenue Land and other development costs attributable to the Santa Clara Data Center. During the three months ended March 31, 2019, the Company capitalized interest of approximately $0.1 million in connection with the development of the Santa Clara Data Center. |
Marketable Securities, Fair Val
Marketable Securities, Fair Value Measurements and Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities And Fair Value Measurements [Abstract] | |
Marketable Securities, Fair Value Measurements and Notes Payable | 4. Marketable Securities, Fair Value Measurements and Notes Payable Marketable Securities: The following is a summary of the Company’s available for sale securities as of the dates indicated As of March 31, 2019 Adjusted Cost Gross Gains Gross Losses Fair Value Marketable Securities: Equity securities: Equity Securities, primarily REITs $ 1,439 $ 368 $ (14 ) $ 1,793 Marco OP Units and Marco II OP Units 19,227 18,899 - 38,126 20,666 19,267 (14 ) 39,919 Debt securities: Corporate Bonds 17,379 10 (336 ) 17,053 Mortgage Backed Securities ("MBS") 1,551 - (300 ) 1,251 18,930 10 (636 ) 18,304 Other Investments: Certificate of Deposit 5,044 - - 5,044 5,044 - - 5,044 Total $ 44,640 $ 19,277 $ (650 ) $ 63,267 As of December 31, 2018 Adjusted Cost Gross Gains Gross Losses Fair Value Marketable Securities: Equity securities: Equity Securities, primarily REITs $ 1,439 $ 230 $ (18 ) $ 1,651 Marco OP Units and Marco II OP Units 19,227 15,924 - 35,151 20,666 16,154 (18 ) 36,802 Debt securities: Corporate Bonds 65,817 124 (2,120 ) 63,821 Mortgage Backed Securities ("MBS") 1,615 - (301 ) 1,314 67,432 124 (2,421 ) 65,135 Other Investments: Certificate of Deposit 5,012 - - 5,012 5,012 - - 5,012 Total $ 93,110 $ 16,278 $ (2,439 ) $ 106,949 As of both March 31, 2019 and December 31, 2018, the Company held an aggregate of 209,243 Marco OP Units and Marco II OP Units, of which 89,695 were owned by PRO. 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 Property Group, 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”). Prior to January 1, 2018, the Company accounted for marketable equity securities at fair value with unrealized gains and losses recognized in AOCI on the consolidated balance sheet. Realized gains and losses on marketable equity securities sold or impaired were recognized on the consolidated statements of operations. On January 1, 2018, the Company adopted guidance issued by the FASB that required it to change the way it accounts for marketable equity securities. The Company’s marketable equity securities are measured at fair value and starting January 1, 2018 unrealized gains and losses are recognized on the consolidated statements of operations. Upon adoption, the Company reclassified $15.5 million of aggregate net unrealized gains from AOCI to opening accumulated surplus. The Company considers the declines in market value of certain of its investments to be temporary in nature as the unrealized losses were caused primarily by changes in market interest rates or widening credit spreads. When evaluating these 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 March 31, 2019 and 2018, the Company did not recognize any impairment charges. As of March 31, 2019, 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. At the time of purchase, the maturities of the Company’s MBS generally ranged from 27 years to 30 years. 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 measured at fair value on a recurring basis as of the dates indicated are as follows: Fair Value Measurement Using As of March 31, 2019 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 1,793 $ - $ - $ 1,793 Marco OP and OP II Units - 38,126 - 38,126 Corporate Bonds - 17,053 - 17,053 MBS - 1,251 - 1,251 Certificate of Deposit - 5,044 - 5,044 Total $ 1,793 $ 61,474 $ - $ 63,267 Fair Value Measurement Using As of December 31, 2018 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 1,651 $ - $ - $ 1,651 Marco OP and OP II Units - 35,151 - 35,151 Corporate Bonds - 63,821 - 63,821 MBS - 1,314 - 1,314 Certificate of Deposit - 5,012 - 5,012 Total $ 1,651 $ 105,298 $ - $ 106,949 The fair values of the Company’s investments in Corporate Bonds and MBS are measured using readily available quoted prices for similar assets. Additionally, as noted and disclosed above, the Company’s Marco OP and Marco OP II Units are ultimately exchangeable for cash or similar number of shares of Simon Stock, therefore the Company uses the quoted market price of Simon Stock to measure the fair value of the Company’s Marco OP and Marco OP II Units. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2019 Due in 1 year $ 8,602 Due in 1 year through 5 years 4,295 Due in 5 years through 10 years 4,156 Due after 10 years 1,251 Total $ 18,304 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. Notes Payable 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 3.35 Line of Credit The Company has 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 expires on June 19, 2019 and bears interest at Libor plus 1.35 3.85 209 The Company currently intends to seek to extend or replace the Line of Credit on or before its expiration. If we are unable to extend or replace the Line of Credit, we will repay the then outstanding balance, if any, in full at the expiration date using working capital, cash proceeds from the sale of assets and/or redemptions of our preferred investments in related parties. |
Notes Receivable
Notes Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Receivable | 5. Notes Receivable 162nd Street Joint Venture I On February 5, 2019, a subsidiary of the Operating Partnership and an affiliate of the Sponsor (“CRE Capital I”) formed the 162nd Street Joint Venture I, a joint venture in which the Company and CRE Capital I have 45.45% and 55.55% ownership interests, respectively. On the same date, the 162nd Street Joint Venture I made a $4.2 million, nonrecourse loan (the “162nd Street Joint Venture I Promissory Note”) to an unaffiliated third party (the “162nd Street Joint Venture I Borrower”). , the Company has consolidated the operating results and financial condition of the 162nd Street Joint Venture I and accounted for the ownership interest of CRE Capital I as a noncontrolling interest. The 162nd Street Joint Venture I Promissory Note is recorded in notes receivable on the consolidated balance sheet. The 162nd Street Joint Venture I Promissory Note, is due March 1, 2020 and is collateralized by the ownership interests of the 162nd Street Joint Venture I Borrower. The 162nd Street Joint Venture I Borrower owns a parcel of land located at 89-25 East 162nd Street, Jamaica, New York (Lot 30) that the 162nd Street Joint Venture I Borrower intends to develop. Additionally, the 162nd Street Joint Venture I Promissory Note and the 162nd Street Joint Venture II Promissory Note (as defined and described below) are cross-collateralized. The 162nd Street Joint Venture I Promissory Note bears interest at a rate of Libor + 7.5% per annum with a floor of 10% (10.0 % as of March 31, 2019). The 162nd Street Joint Venture I received an origination fee of 1.5% of the loan balance or approximately $0.1 million, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 162nd Street Joint Venture I Promissory Note and will be amortize over the initial term of the 162nd Street Joint Venture I Promissory Note. The 162nd Street Joint Venture I Promissory Note can be extended for an additional year at the discretion of the 162nd Street Joint Venture I Borrower provided certain conditions are met, including the funding of an additional reserve for interest and the payment of an extension fee equal to 1% of the outstanding loan balance. Upon funding of the 162nd Street Joint Venture I Promissory Note, the 162nd Street Joint Venture I retained approximately $0.4 million of the proceeds to establish a reserve for interest and other items 162nd Street Joint Venture II On February 5, 2019, a wholly-owned subsidiary of the Operating Partnership (the “162nd Street Sub II”) and an affiliate of the Sponsor (“CRE Capital II”) formed the 162nd Street Joint Venture II, a joint venture in which the Company and CRE Capital II have 45.45% and 55.55% ownership interests, respectively. On the same date, the 162nd Street Joint Venture II made a $9.2 million, nonrecourse loan (the “162nd Street Joint Venture II Promissory Note”) to an unaffiliated third party (the “162nd Street Joint Venture II Borrower”). The 162nd Street Joint Venture II Promissory Note is due March 1, 2020 and is collateralized by the ownership interests of the 162nd Street Joint Venture II Borrower. The 162nd Street Joint Venture II Borrower owns a parcel of land located at 89-12 East 162nd Street, Jamaica, New York (Lot 50) that the 162nd Street Joint Venture II Borrower intends to develop. Additionally, the 162nd Street Joint Venture II Promissory Note and the 162nd Street Joint Venture I Promissory Note are cross-collateralized. The 162nd Street Joint Venture II Promissory Note bears interest at a rate of Libor + 7.5% per annum with a floor of 10% (10.0% as of March 31, 2019). The 162nd Street Joint Ventur received an origination fee of 1.5% of the loan balance or approximately $0.1 million, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 162nd Street Joint Venture II Promissory Note and will be amortize over the initial term of the 162nd Street Joint Venture II Promissory Note. The 162nd Street Joint Venture II Promissory Note can be extended for an additional year at the discretion of the 162nd Street Joint Venture II Borrower provided certain conditions are met, including the establishment of an additional reserve for interest and the payment of an extension fee equal to 1% of the outstanding loan balance. Upon funding of the 162nd Street Joint Venture II Promissory Note, the 162nd Street Joint Venture II retained approximately $0.9 During the three months ended March 31, 2019, the Company recorded $0.2 million of interest income related to the Notes Receivable and as of March 31, 2019, the remaining reserves for interest and other items aggregated $1.2 million. |
Mortgages Payable, Net
Mortgages Payable, Net | 3 Months Ended |
Mar. 31, 2019 | |
Loans Payable [Abstract] | |
Mortgages Payable, Net | 6. Mortgages Payable, Net Mortgages payable, net consists of the following: Property Interest Rate Weighted Average Interest Rate as of March 31, 2019 Maturity Date Amount Due at Maturity As of March 31, 2019 As of December 31, 2018 Gantry Park 4.48 % 4.48 % November 2024 $ 65,317 $ 73,031 $ 73,341 DePaul Plaza LIBOR + 2.75 % 5.26 % June 2020 13,494 13,971 14,072 Bowery Land and Air Rights LIBOR + 4.25 % 6.76 % December 2020 33,102 33,102 32,567 Exterior Street Land 4.50 % 4.50 % April 2020 35,000 35,000 - Total mortgages payable 5.04 % $ 146,913 155,104 119,980 Less: Deferred financing costs (3,995 ) (1,579 ) Total mortgages payable, net $ 151,109 $ 118,401 Libor as of March 31, 2019 and December 31, 2018 was 2.50% and 2.52 % , respectively. The Company’s loans are secured by the indicated real estate and are non-recourse to the Company, unless otherwise indicated. On March 29, 2019, the Company entered into the Exterior Street Loan collateralized by the Exterior Street Land for $35.0 million. The Exterior Street Loan is scheduled to mature on April 9, 2020, with two, six-month extension options, subject to certain conditions. The Exterior Street Loan requires monthly interest payments through its maturity date and bears interest at 4.50% through its maturity. On December 3, 2018, the Company entered into the Bowery Mortgage collateralized by the Bowery Land and the Air Rights for approximately $ 35.6 The Bowery Mortgage has a term of two years, bears interest at LIBOR+ 4.25 33.1 33.1 2.5 The Exterior Street Loan (outstanding principal balance of $35.0 million as of March 31, 2019) initially matures on April 9, 2020 but has two, six-month extension options, subject to certain conditions. The Company intends to seek to exercise the option or refinance such existing indebtedness on or before its applicable stated maturity date. The Company has no additional significant maturities of mortgage debt over the next 12 months. The following table shows the contractually scheduled principal maturities of the Company’s mortgage debt during the next five years and thereafter as of March 31, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 1,210 $ 83,026 $ 1,328 $ 1,389 $ 1,454 $ 66,697 $ 155,104 Less: Deferred financing costs (3,995 ) Total principal maturities, net $ 151,109 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 7. Leases The Company’s two retail properties and multi-family residential property are leased to tenants under operating leases. Substantially all of our multi-family residential property leases have initial terms of 12 months or less. Our retail space leases expire between 2019 and 2030. We, as a lessor, retain substantially all of the risks and benefits of ownership of the investment properties and continue to account for our leases as operating leases. We accrue fixed lease income on a straight-line basis over the terms of the leases. Some of our tenants are also required to pay overage rents based on sales over a stated base amount during the lease year. We recognize this variable lease consideration only when each tenant’s sales exceed the applicable sales threshold. We amortize any tenant inducements as a reduction of revenue utilizing the straight-line method over the term of the related lease. We structure our leases to allow us to recover a portion of our property operating expenses from our tenants. A portion of our leases require the tenant to reimburse us for a portion of our operating expenses, including common area maintenance (“CAM”), real estate taxes and insurance. Such property operating expenses typically include utility, insurance and other administrative expenses. For some of our leases we receive a fixed payment from the tenant for the CAM component which is recognized as revenue on a straight-line basis over the term of the lease. When not reimbursed by the fixed CAM component, CAM expense reimbursements are based on the tenant’s proportionate share of the allocable operating expenses for the property. We accrue reimbursements from tenants for recoverable portions of all of these expenses as variable lease consideration in the period the applicable expenditures are incurred. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material in any period presented. As of March 31, 2019, the approximate fixed future minimum rent payments, excluding variable lease consideration, from the Company’s two retail properties, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 3,243 $ 3,566 $ 3,006 $ 2,448 $ 2,351 $ 7,504 $ 22,118 Pursuant to the lease agreements, tenants of the property may be required to reimburse the Company for some or the entire portion of the particular tenant's pro rata share of the real estate taxes and operating expenses of the property. Such amounts are not included in the future minimum lease payments above, but are included in tenant recovery income on the accompanying consolidated statements of operations. Lease income of approximately $0.3 million and $0.6 million for the three months ended March 31, 2019 and 2018, respectively, related to variable lease payments was included in tenant recovery income on the accompanying consolidated statements of operations. The Company has excluded our multi-family residential property leases from this table as substantially all of its multi-family residential property leases have initial terms of 12 months of less. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 8. Discontinued Operations Disposition Transactions related to Gulf Coast Industrial Portfolio The Company had an outstanding non-recourse mortgage loan (the “Gulf Coast Industrial Portfolio Mortgage Loan”) which was originated in February 2007 and subsequently transferred during the third quarter of 2012 to a special servicer that discontinued scheduled debt service payments and notified the Company that the loan was in default and due on demand. The Gulf Coast Industrial Portfolio Mortgage Loan was initially cross-collateralized by a portfolio of 14 industrial properties (collectively, the “Gulf Coast Industrial Portfolio”) including ten properties located in Louisiana (seven properties located in New Orleans and three properties located in Baton Rouge, and collectively, the “Louisiana Properties”) and four properties located in San Antonio, Texas (the “San Antonio Properties”). Foreclosure of San Antonio Assets On June 5, 2018, the special servicer completed a partial foreclosure of the Gulf Coast Industrial Portfolio pursuant to which it foreclosed on the San Antonio Assets. The San Antonio Assets were sold in a foreclosure sale by the special servicer for an aggregate amount of approximately $20.7 million. Upon consummation of the foreclosure sale, the buyers assumed the significant risks and rewards of ownership and took legal title and physical possession of the San Antonio Assets for the agreed upon aggregate sales price of $20.7 million. The Company simultaneously received an aggregate credit of approximately $20.7 million which it applied against the total outstanding indebtedness (approximately $19.6 million and $1.1 million of principal and accrued interest payable, respectively) of the Gulf Coast Industrial Portfolio Mortgage. The aggregate carrying value of the assets transferred and the liabilities extinguished in connection with the foreclosure of the San Antonio Assets were approximately $13.6 million and $20.7 million, respectively. Since the Company’s performance obligations were met at the closing of the foreclosure sales and the Company had no continuing involvement with the San Antonio Assets an aggregate gain on disposition of real estate of approximately $ 7.1 During 2018, the disposition of the San Antonio Assets did not initially qualify to be reported as discontinued operations since their disposition did not represent a strategic shift that had a major effect on the Company’s operations and financial results. Assignment of Ownership in Louisiana Assets to Lender On February 12, 2019, the Company and the lender of the Gulf Coast Industrial Portfolio Mortgage entered into an assignment agreement (the “Assignment Agreement”) pursuant to which the Company assigned its membership interests in the Louisiana Assets to the lender with an effective date of February 7, 2019. Under the terms of the Assignment Agreement, the lender assumed the significant risks and rewards of ownership and took legal title and physical possession of the Louisiana Assets and assumed all the other assets and related liabilities, including the Gulf Coast Industrial Mortgage and its accrued and unpaid interest, and released the Company of any claims against the liabilities assumed. As a result of the Assignment Agreement, the Company has fully satisfied all of its obligations with respect to the Gulf Coast Industrial Portfolio Mortgage and all amounts accrued but not paid for interest (including default interest) and no amounts are due to the lender. Additionally, the Company has no continuing involvement with the Louisiana Assets. The aggregate carrying value of the assets transferred and the liabilities extinguished in connection with the Company’s assignment of its ownership interests in the Louisiana Assets to the lender was approximately $37.0 million and $49.6 million, respectively. Since the Company’s performance obligations were met upon the assignment of its ownership interests in the Louisiana Assets to the lender and the Company has no continuing involvement with the Louisiana Assets, an aggregate gain on debt extinguishment of approximately $13.6 million was recognized during the first quarter of 2019. The disposition of the Louisiana Assets, which comprised all of the Company’s remaining industrial properties, represented a strategic shift that had a major effect on the Company’s operations and financial results. As a result of the disposition transactions related to both the San Antonio Assets and the Louisiana Assets, the Company no longer has any industrial properties. Because the Gulf Coast Industrial Portfolio Mortgage was cross-collateralized by the Gulf Coast Industrial Portfolio, comprised of both the San Antonio Assets and Louisiana Assets, the operating results of the entire Gulf Coast Industrial Portfolio have been classified as discontinued operations in the Company’s consolidated statements of operations for all periods presented. The following summary presents the operating results of the Gulf Coast Industrial Portfolio included in discontinued operations in the Consolidated Statements of Operations for the periods indicated. For the Three Months Ended March 31, 2019 2018 Revenues $ 409 $ 1,645 Operating expenses 317 1,169 Operating income 92 476 Interest expense and other, net (226 ) (1,207 ) Gain on debt extinguisment 13,615 - Net income/(loss) from discontinued operations $ 13,481 $ (731 ) 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 disposition, of as the date indicated. As of December 31, 2018 Net investment property $ 32,778 Restricted escrows 3,274 Other assets 1,174 Total assets held for disposition $ 37,226 Mortgages payable $ 30,642 Accounts payable and accrued expenses 19,069 Other liabilities 993 Total liabilities held for disposition $ 50,704 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | 9. 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, dilutive net income per share is equivalent to basic net income per share. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Acquisition fees (capitalized and are reflected in the carrying value of the investment) $ 1,823 $ - Asset management fees (general and administrative costs) 336 465 Property management fees (property operating expenses) 79 87 Development fees and leasing commissions* 74 77 Total $ 2,312 $ 629 * Generally, capitalized and amortized over the estimated useful life of the associated asset. In connection with the Company’s initial public offering, Lightstone SLP, LLC, an affiliate of the Company’s Sponsor, previously purchased an aggregate of $30.0 million of SLP units which are included in noncontrolling interests in the consolidated balance sheets. 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 both the three months ended March 31, 2019 and 2018, distributions of $0.5 million were declared and paid on the SLP units. Preferred Investments The Company has entered into several agreements with various related party entities that provide for it to make preferred contributions pursuant to certain instruments (the “Preferred Investments”) that entitle the Company to certain prescribed monthly preferred distributions. The Preferred Investments had an aggregate balance of $80.7 million and $100.7 million as of March 31, 2019 and December 31, 2018, respectively, and are classified as held-to-maturity securities, recorded at cost and included in investments in related parties on the consolidated balance sheets. The fair value of these investments approximated their carrying values based on market rates for similar instruments. During the three months ended March 31, 2019, the Company redeemed $10.0 million of the East 11th Street Preferred Investment and the entire 30-02 39th Street Preferred Investment of $10.0 million and as of March 31, 2019, remaining contributions of up to $2.3 million were unfunded. The Company did not make any additional contributions to the Preferred Investments during the three months ended March 31, 2019. The Preferred Investments are summarized as follows: Preferred Investment Balance Unfunded Contributions Investment Income As of As of As of Three Months Ended March 31, Preferred Investments Dividend Rate March 31, 2019 December 31, 2018 March 31, 2019 2019 2018 40 East End Avenue 12 % $ 30,000 30,000 $ - $ 900 $ 900 30-02 39 th 12 % - 10,000 - 140 300 485 7th Avenue 12 % - - - - 1,025 East 11th Street 12 % 33,000 43,000 - 1,100 1,481 Miami Moxy 12 % 17,733 17,733 2,267 532 374 Total Preferred Investments $ 80,733 $ 100,733 $ 2,267 $ 2,672 $ 4,080 The Joint Venture The Company has a 2.5% membership interest in a joint venture (the “Joint Venture”) with Lightstone Value Plus Real Estate Investment Trust II, Inc. (“Lightstone II”), a related party REIT also sponsored by our Sponsor. The Joint Venture holds ownership interests in eight hotels as of March 31, 2019. The Company accounts for its 2.5% membership interest in the Joint Venture under the cost method and as of both March 31, 2019 and December 31, 2018, the carrying value of its investment was $1.3 million, which is included in investment in related parties on the consolidated balance sheets. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 11. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted escrows, tenants’ accounts receivable and accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments. The carrying amount of the note receivable approximates fair value because the interest rat ariable and reflective o arket rate. The estimated fair value (in millions) of the Company’s mortgage debt is summarized as follows: As of March 31, 2019 As of December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 155.1 $ 154.9 $ 120.0 $ 119.8 The fair value of the mortgages payable was determined by discounting the future contractual interest and principal payments by estimated current market interest rates. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Distribution Payment On April 15, 2019, the distribution for the three-month period ending March 31, 2019 of $4.1 million was paid in full using a combination of cash and approximately 5,000 shares of the Company’s common stock issued pursuant to the Company’s Distribution Reinvestment Program (“DRIP”), at a discounted price of $11.23 per share. Distribution Declaration On May 7, 2019 the Board of Directors authorized and the Company declared a distribution for the three-month period ending June 30, 2019. 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 or about July 15, 2019 to shareholders of record as of June 30, 2019. The shareholders have an option to elect the receipt of shares under the Company’s DRIP. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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. There are judgments and estimates involved in determining if an entity in which we have made an investment is a VIE and, if so, whether we are the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements. 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, 2018. 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 presentation 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 (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 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. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and real-estate related investments, marketable securities, notes receivable, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2018 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. |
Consolidated VIEs | Consolidated VIEs The Company consolidates the 162nd Street Joint Venture I and 162nd Street Joint Venture II, which are variable interest entities, or VIEs, for which we are the primary beneficiary. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A limited partnership, or legal entities such as an LLC, are considered a VIE when the majority of the limited partners unrelated to the general partner possess neither the right to remove the general partner without cause, nor certain rights to participate in the decisions that most significantly affect the financial results of the partnership. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In August 2018, the SEC adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statements. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance will result in the inclusion of a quarter to date consolidated statement of stockholders equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the FASB issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases for leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued an accounting standards update which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for the periods indicated is as follows: For the Three Months Ended March 31, 2019 2018 Cash paid for interest $ 1,601 $ 1,433 Distributions declared but not paid $ 4,043 $ 4,270 Investment property acquired but not paid $ 160 $ - Assets transferred due to foreclosure $ 37,299 $ - Liabilities extinguised in foreclosure $ 50,914 $ - Reclassification of accumulated other comprehensive income and $ - $ 15,476 Holding loss on marketable securities $ 1,671 $ 1,029 Value of shares issued from distribution reinvestment program $ 53 $ - |
Reclassifications | Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Supplemental Cash Flow Information | Supplemental cash flow information for the periods indicated is as follows: For the Three Months Ended March 31, 2019 2018 Cash paid for interest $ 1,601 $ 1,433 Distributions declared but not paid $ 4,043 $ 4,270 Investment property acquired but not paid $ 160 $ - Assets transferred due to foreclosure $ 37,299 $ - Liabilities extinguised in foreclosure $ 50,914 $ - Reclassification of accumulated other comprehensive income and $ - $ 15,476 Holding loss on marketable securities $ 1,671 $ 1,029 Value of shares issued from distribution reinvestment program $ 53 $ - |
Marketable Securities, Fair V_2
Marketable Securities, Fair Value Measurements and Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities and Other Investments [Abstract] | |
Summary of Available for Sale Securities and Other Investments | The following is a summary of the Company’s available for sale securities as of the dates indicated As of March 31, 2019 Adjusted Cost Gross Gains Gross Losses Fair Value Marketable Securities: Equity securities: Equity Securities, primarily REITs $ 1,439 $ 368 $ (14 ) $ 1,793 Marco OP Units and Marco II OP Units 19,227 18,899 - 38,126 20,666 19,267 (14 ) 39,919 Debt securities: Corporate Bonds 17,379 10 (336 ) 17,053 Mortgage Backed Securities ("MBS") 1,551 - (300 ) 1,251 18,930 10 (636 ) 18,304 Other Investments: Certificate of Deposit 5,044 - - 5,044 5,044 - - 5,044 Total $ 44,640 $ 19,277 $ (650 ) $ 63,267 As of December 31, 2018 Adjusted Cost Gross Gains Gross Losses Fair Value Marketable Securities: Equity securities: Equity Securities, primarily REITs $ 1,439 $ 230 $ (18 ) $ 1,651 Marco OP Units and Marco II OP Units 19,227 15,924 - 35,151 20,666 16,154 (18 ) 36,802 Debt securities: Corporate Bonds 65,817 124 (2,120 ) 63,821 Mortgage Backed Securities ("MBS") 1,615 - (301 ) 1,314 67,432 124 (2,421 ) 65,135 Other Investments: Certificate of Deposit 5,012 - - 5,012 5,012 - - 5,012 Total $ 93,110 $ 16,278 $ (2,439 ) $ 106,949 |
Marketable Securities, Available for Sale, and Derivative Financial Instruments Measured at Fair Value on Recurring Basis | Marketable securities measured at fair value on a recurring basis as of the dates indicated are as follows: Fair Value Measurement Using As of March 31, 2019 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 1,793 $ - $ - $ 1,793 Marco OP and OP II Units - 38,126 - 38,126 Corporate Bonds - 17,053 - 17,053 MBS - 1,251 - 1,251 Certificate of Deposit - 5,044 - 5,044 Total $ 1,793 $ 61,474 $ - $ 63,267 Fair Value Measurement Using As of December 31, 2018 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 1,651 $ - $ - $ 1,651 Marco OP and OP II Units - 35,151 - 35,151 Corporate Bonds - 63,821 - 63,821 MBS - 1,314 - 1,314 Certificate of Deposit - 5,012 - 5,012 Total $ 1,651 $ 105,298 $ - $ 106,949 |
Available-for-sale Securities | The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2019 Due in 1 year $ 8,602 Due in 1 year through 5 years 4,295 Due in 5 years through 10 years 4,156 Due after 10 years 1,251 Total $ 18,304 |
Mortgages Payable, Net (Tables)
Mortgages Payable, Net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Loans Payable [Abstract] | |
Schedule of Mortgages Payable | Mortgages payable, net consists of the following: Property Interest Rate Weighted Average Interest Rate as of March 31, 2019 Maturity Date Amount Due at Maturity As of March 31, 2019 As of December 31, 2018 Gantry Park 4.48 % 4.48 % November 2024 $ 65,317 $ 73,031 $ 73,341 DePaul Plaza LIBOR + 2.75 % 5.26 % June 2020 13,494 13,971 14,072 Bowery Land and Air Rights LIBOR + 4.25 % 6.76 % December 2020 33,102 33,102 32,567 Exterior Street Land 4.50 % 4.50 % April 2020 35,000 35,000 - Total mortgages payable 5.04 % $ 146,913 155,104 119,980 Less: Deferred financing costs (3,995 ) (1,579 ) Total mortgages payable, net $ 151,109 $ 118,401 |
Contractually Scheduled Principal Maturities During Next Five Years | The following table shows the contractually scheduled principal maturities of the Company’s mortgage debt during the next five years and thereafter as of March 31, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 1,210 $ 83,026 $ 1,328 $ 1,389 $ 1,454 $ 66,697 $ 155,104 Less: Deferred financing costs (3,995 ) Total principal maturities, net $ 151,109 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Lease [Abstract] | |
Schedule of Future Minimum Rental Payments | As of March 31, 2019, the approximate fixed future minimum rent payments, excluding variable lease consideration, from the Company’s two retail properties, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 3,243 $ 3,566 $ 3,006 $ 2,448 $ 2,351 $ 7,504 $ 22,118 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following summary presents the operating results of the Gulf Coast Industrial Portfolio included in discontinued operations in the Consolidated Statements of Operations for the periods indicated. For the Three Months Ended March 31, 2019 2018 Revenues $ 409 $ 1,645 Operating expenses 317 1,169 Operating income 92 476 Interest expense and other, net (226 ) (1,207 ) Gain on debt extinguisment 13,615 - Net income/(loss) from discontinued operations $ 13,481 $ (731 ) |
Disposal Groups Including Discontinued Operations Income Statement Disclosures | The following summary presents the major components of assets and liabilities held for disposition, of as the date indicated. As of December 31, 2018 Net investment property $ 32,778 Restricted escrows 3,274 Other assets 1,174 Total assets held for disposition $ 37,226 Mortgages payable $ 30,642 Accounts payable and accrued expenses 19,069 Other liabilities 993 Total liabilities held for disposition $ 50,704 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 2018 Acquisition fees (capitalized and are reflected in the carrying value of the investment) $ 1,823 $ - Asset management fees (general and administrative costs) 336 465 Property management fees (property operating expenses) 79 87 Development fees and leasing commissions* 74 77 Total $ 2,312 $ 629 * Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Investments in and Advances to Affiliates | The Preferred Investments are summarized as follows: Preferred Investment Balance Unfunded Contributions Investment Income As of As of As of Three Months Ended March 31, Preferred Investments Dividend Rate March 31, 2019 December 31, 2018 March 31, 2019 2019 2018 40 East End Avenue 12 % $ 30,000 30,000 $ - $ 900 $ 900 30-02 39 th 12 % - 10,000 - 140 300 485 7th Avenue 12 % - - - - 1,025 East 11th Street 12 % 33,000 43,000 - 1,100 1,481 Miami Moxy 12 % 17,733 17,733 2,267 532 374 Total Preferred Investments $ 80,733 $ 100,733 $ 2,267 $ 2,672 $ 4,080 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Long-term Debt Instruments | The estimated fair value (in millions) of the Company’s mortgage debt is summarized as follows: As of March 31, 2019 As of December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 155.1 $ 154.9 $ 120.0 $ 119.8 |
Organization (Details Textual)
Organization (Details Textual) $ / shares in Units, $ in Thousands, ft² in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 19, 2019USD ($)$ / sharesshares | Jul. 06, 2004USD ($)shares | Mar. 31, 2019USD ($)ft²Rate$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2009shares | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Date of incorporation | Jun. 8, 2004 | ||||
Lightstone REIT, partnership formation date | Jul. 12, 2004 | ||||
General partner ownership interest | 98.00% | ||||
Cash contributed for units | $ | $ 2 | ||||
Partners units acquired | shares | 200 | ||||
Issuance of Common Units, shares | shares | 497,209 | ||||
Sale of Stock, Consideration Received on Transaction | $ | $ 30,000 | $ 80,700 | $ 100,700 | ||
Sale of Stock, Price Per Share | $ / shares | $ 100,000 | ||||
Subsequent Event [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | shares | 500,000 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 7 | ||||
Aggregate Amounts Required to Commence Tender offer | $ | $ 3,500 | ||||
Retail [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Occupancy Percentage Of Commercial Properties | 76.00% | ||||
Industrial Properties [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Occupancy Percentage Of Commercial Properties | 85.00% | ||||
Residential Real Estate [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Occupancy Percentage Of Commercial Properties | 97.00% | ||||
Wholly Owned Properties [Member] | Industrial Properties [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Area of Real Estate Property | ft² | 0.5 | ||||
Wholly Owned Properties [Member] | Residential Real Estate [Member] | |||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||
Number of Units in Real Estate Property | Rate | 199 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jan. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 |
Cash paid for interest | $ 1,601 | $ 1,433 | |
Distributions declared but not paid | 4,043 | 4,270 | |
Investment property acquired but not paid | 160 | 0 | |
Assets transferred due to foreclosure | 37,299 | 0 | |
Liabilities extinguised in foreclosure | 50,914 | 0 | |
Reclassification of accumulated other comprehensive income and noncontrolling interests to accumulated surplus | $ 15,500 | 0 | 15,476 |
Holding loss on marketable securities | 1,671 | 1,029 | |
Value of shares issued from distribution reinvestment program | $ 53 | $ 0 |
Development Projects (Details T
Development Projects (Details Textual) - USD ($) $ in Millions | Jan. 10, 2019 | Dec. 03, 2018 | Feb. 27, 2019 | Dec. 06, 2018 | Mar. 31, 2019 | Mar. 29, 2019 | Dec. 31, 2018 |
Acquisition Fees And Expenses Percentage Of Purchase Price | 2.75% | 2.75% | |||||
Acquisition Related Expenses | $ 1.6 | $ 1.6 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||
Bowery Land [Member] | |||||||
Business Combination, Consideration Transferred | $ 56.5 | ||||||
Air Rights [Member] | |||||||
Business Combination, Consideration Transferred | $ 2.4 | ||||||
Bowery Land and Air Rights [Member] | |||||||
Construction in Progress, Gross | 64.5 | $ 63.3 | |||||
Lower East Side Moxy Hotel [Member] | |||||||
Interest Costs Capitalized | 1.1 | ||||||
Borden Realty Corp and 399 Exterior Street Associates LLC [Member] | |||||||
Business Combination, Consideration Transferred | $ 59 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||
Debt Instrument, Face Amount | $ 35 | ||||||
Exterior Street Land [Member] | |||||||
Construction in Progress, Gross | 61.7 | ||||||
Interest Costs Capitalized | 0.3 | ||||||
Business Acquisition Fee | 1.6 | ||||||
The Chioini Living Trust [Member] | |||||||
Business Combination, Consideration Transferred | $ 10.6 | ||||||
Business Acquisition transaction Cost Percentage | 2.75% | ||||||
Business Acquisition, Transaction Costs | $ 0.2 | ||||||
Martin Avenue Land [Member] | |||||||
Construction in Progress, Gross | 11.3 | ||||||
Business Acquisition Fee | 0.2 | ||||||
Santa Clara Data Center [Member] | |||||||
Interest Costs Capitalized | $ 0.1 |
Marketable Securities, Fair V_3
Marketable Securities, Fair Value Measurements and Notes Payable (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | $ 44,640,000 | $ 93,110,000 |
Equity securities, Gross Unrealized Gains | 19,277,000 | 16,278,000 |
Equity securities, Gross Unrealized Losses | (650,000) | (2,439,000) |
Equity securities, Fair Value | 63,267,000 | 106,949,000 |
Debt securities, Fair Value | 18,304 | |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | 20,666,000 | 20,666,000 |
Equity securities, Gross Unrealized Gains | 19,267,000 | 16,154,000 |
Equity securities, Gross Unrealized Losses | (14,000) | (18,000) |
Equity securities, Fair Value | 39,919,000 | 36,802,000 |
Equity Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | 1,439,000 | 1,439,000 |
Equity securities, Gross Unrealized Gains | 368,000 | 230,000 |
Equity securities, Gross Unrealized Losses | (14,000) | (18,000) |
Equity securities, Fair Value | 1,793,000 | 1,651,000 |
Marco OP Units and Marco II OP Units [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | 19,227,000 | 19,227,000 |
Equity securities, Gross Unrealized Gains | 18,899,000 | 15,924,000 |
Equity securities, Gross Unrealized Losses | 0 | 0 |
Equity securities, Fair Value | 38,126,000 | 35,151,000 |
Corporate Bonds and Preferred Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Adjusted Cost | 17,379,000 | 65,817,000 |
Debt securities, Gross Unrealized Gains | 10,000 | 124,000 |
Debt securities, Gross Unrealized Losses | (336,000) | (2,120,000) |
Debt securities, Fair Value | 17,053,000 | 63,821,000 |
Mortgage Backed Securities ("MBS") [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Adjusted Cost | 1,551,000 | 1,615,000 |
Debt securities, Gross Unrealized Gains | 0 | 0 |
Debt securities, Gross Unrealized Losses | (300,000) | (301,000) |
Debt securities, Fair Value | 1,251,000 | 1,314,000 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, Adjusted Cost | 18,930,000 | 67,432,000 |
Debt securities, Gross Unrealized Gains | 10,000 | 124,000 |
Debt securities, Gross Unrealized Losses | (636,000) | (2,421,000) |
Debt securities, Fair Value | 18,304,000 | 65,135,000 |
Other Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | 5,044,000 | 5,012,000 |
Equity securities, Gross Unrealized Gains | 0 | 0 |
Equity securities, Gross Unrealized Losses | 0 | 0 |
Equity securities, Fair Value | 5,044,000 | 5,012,000 |
Certificate of Deposit [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities, Adjusted Cost | 5,044,000 | 5,012,000 |
Equity securities, Gross Unrealized Gains | 0 | 0 |
Equity securities, Gross Unrealized Losses | 0 | 0 |
Equity securities, Fair Value | $ 5,044,000 | $ 5,012,000 |
Marketable Securities, Fair V_4
Marketable Securities, Fair Value Measurements and Notes Payable (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 63,267 | $ 106,949 |
Equity Securities, primarily REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,793 | 1,651 |
Marco OP and OP II Units [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 38,126 | 35,151 |
Corporate Bonds and Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 17,053 | 63,821 |
Mortgage Backed Securities ("MBS") [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,251 | 1,314 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,044 | 5,012 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,793 | 1,651 |
Fair Value, Inputs, Level 1 [Member] | Equity Securities, primarily REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,793 | 1,651 |
Fair Value, Inputs, Level 1 [Member] | Marco OP and OP II Units [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Bonds and Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage Backed Securities ("MBS") [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 61,474 | 105,298 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities, primarily REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Marco OP and OP II Units [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 38,126 | 35,151 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bonds and Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 17,053 | 63,821 |
Fair Value, Inputs, Level 2 [Member] | Mortgage Backed Securities ("MBS") [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 1,251 | 1,314 |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 5,044 | 5,012 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Equity Securities, primarily REITs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Marco OP and OP II Units [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Bonds and Preferred Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Backed Securities ("MBS") [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Marketable Securities, Fair V_5
Marketable Securities, Fair Value Measurements and Notes Payable (Details 2) | Mar. 31, 2019USD ($) |
Marketable Securities And Fair Value Measurements [Abstract] | |
Due in 1 year | $ 8,602 |
Due in 1 year through 5 years | 4,295 |
Due in 5 years through 10 years | 4,156 |
Due after 10 years | 1,251 |
Total | $ 18,304 |
Marketable Securities, Fair V_6
Marketable Securities, Fair Value Measurements and Notes Payable (Details Textual) - USD ($) $ in Thousands | Jan. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 03, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Collateral Amount | $ 35,600 | ||||
Available For Sale Securities Debt Maturities Date Range High | 30 years | ||||
Available For Sale Securities Debt Maturities Date Range Low | 27 years | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Investment Transferred from Available-for-sale to Equity Method, after Tax | $ 15,500 | $ 0 | $ 15,476 | ||
Margin Loan [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate terms | Libor plus 0.85 | ||||
Debt instrument, interest rate at end of period | 3.35% | ||||
Line of Credit [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt instrument, interest rate terms | Libor plus 1.35 | ||||
Debt instrument, interest rate at end of period | 3.85% | ||||
Debt instrument, maturity date | Jun. 19, 2019 | ||||
Line of credit facility, maximum borrowing capacity | $ 25,000 | ||||
Line of credit facility, amount outstanding | 18,000 | ||||
Marco OP Units and Pro DFJV Holdings LLC [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Collateral Amount | $ 209 | ||||
Marco Op Units And Op Two Units [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity Securities Securities Held During Period | 209,243 | 89,695 |
Notes Receivable (Details Textu
Notes Receivable (Details Textual) - USD ($) $ in Millions | Feb. 05, 2019 | Dec. 03, 2018 | Mar. 31, 2019 |
Debt Instrument, Description of Variable Rate Basis | LIBOR+4.25% | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||
Remaining Reserve for Interest and Other | $ 1.2 | ||
Notes Receivable [Member] | |||
Interest Income, Purchased Receivables | $ 0.2 | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Reserve For Interest and Other | $ 0.4 | ||
162nd Street Joint Venture I [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45.45% | ||
Equity Method Investment, Ownership Percentage | 55.55% | ||
Notes Receivable, Related Parties, Noncurrent | $ 4.2 | ||
Debt Instrument, Description of Variable Rate Basis | Libor + 7.5% | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Percentage of Origination Fee on Notes Receivables | 1.50% | ||
Value of Origination Fee on Notes Receivables | $ 0.1 | ||
Perecntage of Additional Reserve For Interest Extention Fee | 1.00% | ||
162nd Street Joint Venture II [Member] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 45.45% | ||
Equity Method Investment, Ownership Percentage | 55.55% | ||
Notes Receivable, Related Parties, Noncurrent | $ 9.2 | ||
Debt Instrument, Description of Variable Rate Basis | Libor + 7.5% | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Percentage of Origination Fee on Notes Receivables | 1.50% | ||
Value of Origination Fee on Notes Receivables | $ 0.1 | ||
Perecntage of Additional Reserve For Interest Extention Fee | 1.00% | ||
162nd Street Joint Venture II [Member] | Accounts Payable and Accrued Liabilities [Member] | |||
Reserve For Interest and Other | $ 0.9 |
Mortgages Payable, Net (Details
Mortgages Payable, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 03, 2018 | |
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 5.04% | ||
Amount Due at Maturity | $ 146,913 | ||
Total mortgages payable | 155,104 | $ 119,980 | |
Less: Deferred financing costs | (3,995) | (1,579) | |
Total mortgages payable, net | $ 151,109 | 118,401 | |
Debt instrument, interest rate | 4.25% | ||
Gantry Park [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.48% | ||
Maturity Date | 2024-11 | ||
Amount Due at Maturity | $ 65,317 | ||
Total mortgages payable | $ 73,031 | 73,341 | |
Debt instrument, interest rate | 4.48% | ||
DePaul Plaza [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate terms | LIBOR + 2.75% | ||
Weighted Average Interest Rate | 5.26% | ||
Maturity Date | 2020-06 | ||
Amount Due at Maturity | $ 13,494 | ||
Total mortgages payable | $ 13,971 | 14,072 | |
Bowery Land and Air Rights [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate terms | LIBOR + 4.25% | ||
Weighted Average Interest Rate | 6.76% | ||
Maturity Date | 2020-12 | ||
Amount Due at Maturity | $ 33,102 | ||
Total mortgages payable | $ 33,102 | 32,567 | |
Exterior Street Land [Member] | |||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 4.50% | ||
Maturity Date | 2020-04 | ||
Amount Due at Maturity | $ 35,000 | ||
Total mortgages payable | $ 35,000 | $ 0 | |
Debt instrument, interest rate | 4.50% |
Mortgages Payable, Net (Detai_2
Mortgages Payable, Net (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
2019 | $ 1,210 | |
2020 | 83,026 | |
2021 | 1,328 | |
2022 | 1,389 | |
2023 | 1,454 | |
Thereafter | 66,697 | |
Total | 155,104 | $ 119,980 |
Less: Deferred financing costs | (3,995) | (1,579) |
Total principal maturities, net | $ 151,109 | $ 118,401 |
Mortgages Payable, Net (Detai_3
Mortgages Payable, Net (Details Textual) - USD ($) $ in Millions | Dec. 03, 2018 | Mar. 29, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||||
Debt Instrument Interest London Interbank Offered Rate | 2.50% | 2.52% | |||
Debt Instrument, Collateral Amount | $ 35.6 | ||||
Debt Instrument, Description of Variable Rate Basis | LIBOR+4.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||
Debt Instrument, Term | 2 years | ||||
Exterior Street Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 35 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Debt Instrument, Maturity Date | Apr. 9, 2020 | ||||
Bowery Land and Air Rights [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 33.1 | $ 2.5 | |||
Proceeds from Issuance of Long-term Debt | $ 33.1 |
Leases (Details)
Leases (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2019 | $ 3,243 |
2020 | 3,566 |
2021 | 3,006 |
2022 | 2,448 |
2023 | 2,351 |
Thereafter | 7,504 |
Totel | $ 22,118 |
Leases (Details Textual)
Leases (Details Textual) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Lease Income | $ 0.3 | $ 0.6 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Revenue | $ 409 | $ 1,645 |
Operating expenses | 317 | 1,169 |
Operating income | 92 | 476 |
Interest expense and other, net | (226) | (1,207) |
Gain on debt extinguisment | 13,615 | 0 |
Net income/(loss) from discontinued operations | $ 13,481 | $ (731) |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net investment property | $ 32,778 | |
Restricted escrows | 3,274 | |
Other assets | 1,174 | |
Total assets held for disposition | $ 37,000,000 | 37,226 |
Mortgages payable | 30,642 | |
Accounts payable and accrued expenses | 19,069 | |
Other liabilities | 993 | |
Total liabilities held for disposition | $ 49,600,000 | $ 50,704 |
Discontinued Operations (Deta_3
Discontinued Operations (Details Textual) - USD ($) | Jun. 05, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2018 |
Disposition of limited service hotels [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Assets | $ 37,000,000 | $ 37,226 | |||
Disposal Group, Including Discontinued Operation, Liabilities | 49,600,000 | $ 50,704 | |||
Gain (Loss) on Extinguishment of Debt | 13,615,000 | $ 0 | |||
Gulf Coast Industrial Portfolio [Member] | |||||
Disposition of limited service hotels [Line Items] | |||||
Proceeds from Sale of Foreclosed Assets | $ 20,700,000 | ||||
Proceeds from (Repayments of) Secured Debt | 20,700,000 | ||||
Proceeds From Repayment Of Principal Amount Of Secured Debt | 19,600,000 | ||||
Proceeds From Repayment Of Interest Amount Of Secured Debt | 1,100,000 | ||||
Gulf Coast Industrial Portfolio Mortgage [Member] | |||||
Disposition of limited service hotels [Line Items] | |||||
Proceeds from Sale of Foreclosed Assets | 20,700,000 | ||||
Proceeds From Repayment Of Principal Amount Of Secured Debt | 19,600,000 | ||||
Proceeds From Repayment Of Interest Amount Of Secured Debt | $ 1,100,000 | ||||
San Antonio [Member] | |||||
Disposition of limited service hotels [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Assets | 13,600,000 | ||||
Disposal Group, Including Discontinued Operation, Liabilities | $ 20,700,000 | ||||
Gain (Loss) on Extinguishment of Debt | $ 7,100,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Related Party Transaction [Line Items] | |||
Acquisition fees (capitalized and are reflected in the carrying value of the investment) | $ 1,823 | $ 0 | |
Asset management fees (general and administrative costs) | 336 | 465 | |
Property management fees (property operating expenses) | 79 | 87 | |
Development fees and leasing commissions | [1] | 74 | 77 |
Total | $ 2,312 | $ 629 | |
[1] | Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Related Party Transactions (D_2
Related Party Transactions (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 80,733 | $ 100,733 | |
Preferred Stock Dividend Income | 2,672 | $ 4,080 | |
Unfunded Investment Contribution Liabilities | $ 2,267 | ||
Forty East End Avenue Preferred Investment [Member] | |||
Related Party Transaction [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 30,000 | 30,000 | |
Preferred Stock Dividend Income | 900 | 900 | |
Unfunded Investment Contribution Liabilities | $ 0 | ||
Thirty Zero Two Thirty Ninth Avenue Preferred Investment [Member] | |||
Related Party Transaction [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 0 | 10,000 | |
Preferred Stock Dividend Income | 140 | 300 | |
Unfunded Investment Contribution Liabilities | $ 0 | ||
Four Eighty Five Seventh Avenue Preferred Investment [Member] | |||
Related Party Transaction [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 0 | 0 | |
Preferred Stock Dividend Income | 0 | 1,025 | |
Unfunded Investment Contribution Liabilities | $ 0 | ||
East Eleventh Street [Member] | |||
Related Party Transaction [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 33,000 | 43,000 | |
Preferred Stock Dividend Income | 1,100 | 1,481 | |
Unfunded Investment Contribution Liabilities | $ 0 | ||
Miami Moxy [Member] | |||
Related Party Transaction [Line Items] | |||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||
Investments in and Advances to Affiliates, at Fair Value, Gross Additions | $ 17,733 | $ 17,733 | |
Preferred Stock Dividend Income | 532 | $ 374 | |
Unfunded Investment Contribution Liabilities | $ 2,267 |
Related Party Transactions (D_3
Related Party Transactions (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 06, 2004 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Investments in and Advances to Affiliates [Line Items] | |||||
Dividends, Cash | [1] | $ 4,096 | $ 4,270 | ||
Preferred Units, Preferred Partners' Capital Accounts | 30,000 | ||||
Sale of Stock, Consideration Received on Transaction | $ 30,000 | 80,700 | $ 100,700 | ||
Unfunded Investment Contribution Liabilities | 2,267 | ||||
SLP Units [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Dividends, Cash | 500 | $ 500 | |||
Preferred Investments [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Sale of Stock, Consideration Received on Transaction | 1,300 | $ 1,300 | |||
Additional Investments In And Advances To Affiliates At Fair Value Gross Additions | 10,000 | ||||
Unfunded Investment Contribution Liabilities | $ 2,300 | ||||
[1] | Distributions per share were $0.175. |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount | $ 155,104 | $ 119,980 |
Secured Debt [Member] | ||
Carrying Amount | 155,100 | 120,000 |
Estimated Fair Value | $ 154,900 | $ 119,800 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | May 07, 2019 | Apr. 15, 2019 | Mar. 31, 2019 | Dec. 06, 2018 |
Subsequent Event [Line Items] | ||||
Acquisition Fees And Expenses Percentage Of Purchase Price | 2.75% | 2.75% | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Distribution Rate Per Day | $ 0.0019178 | |||
Number Of Days Used To Calculate Dividend Per Day | 365 days | |||
Business Combination, Consideration Transferred | $ 4,100,000 | |||
Acquisition Fees And Expenses Percentage Of Purchase Price | 7.00% | |||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 5,000 | |||
Dividend Reinvestment Plan Share Discounted Price | $ 10 | $ 11.23 |