Lightstone Value Plus REIT I (LHTV) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 30, 2019	Aug. 10, 2019
Document and Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Registrant Name	Lightstone Value Plus Real Estate Investment Trust, Inc.
Entity Current Reporting Status	Yes
Entity Central Index Key	0001296884
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23.1
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Assets
Land and improvements	$ 36,687	$ 36,786
Building and improvements	117,178	117,852
Furniture and fixtures	2,317	2,265
Construction in progress	142,263	63,519
Gross investment property	298,445	220,422
Less accumulated depreciation	(31,590)	(30,028)
Net investment property	266,855	190,394
Investments in related parties	77,223	102,008
Cash and cash equivalents	43,558	35,565
Marketable securities and other investments	58,869	106,949
Restricted cash	2,401	1,017
Notes receivable, net	23,746	0
Prepaid expenses and other assets	3,011	3,050
Assets held for disposition	0	37,226
Total Assets	475,663	476,209
Liabilities and Stockholders' Equity
Mortgages payable, net	151,902	118,401
Accounts payable, accrued expenses and other liabilities	3,362	3,024
Due to related parties	271	432
Tenant allowances and deposits payable	703	611
Distributions payable	4,027	4,134
Deferred rental income	714	662
Liabilities held for disposition	0	50,704
Total Liabilities	160,979	177,968
Commitments and contingencies
Company's Stockholders Equity:
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 60.0 million shares authorized, 23.1 million and 23.7 million shares issued and outstanding, respectively	231	237
Additional paid-in-capital	177,559	184,469
Accumulated other comprehensive loss	(169)	(2,251)
Accumulated surplus	111,215	101,382
Total Company's stockholders' equity	288,836	283,837
Noncontrolling interests	25,848	14,404
Total Stockholders' Equity	314,684	298,241
Total Liabilities and Stockholders' Equity	$ 475,663	$ 476,209

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares authorized	10,000,000	10,000,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	23,100,000	23,700,000
Common stock, shares outstanding	23,100,000	23,700,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Rental income	$ 3,662	$ 3,617	$ 7,263	$ 7,268
Tenant recovery income	234	357	667	749
Total revenues	3,896	3,974	7,930	8,017
Expenses:
Property operating expenses	1,102	1,202	2,263	2,431
Real estate taxes	451	279	735	559
General and administrative costs	760	1,050	1,589	2,216
Depreciation and amortization	1,302	1,376	2,581	2,687
Total operating expenses	3,615	3,907	7,168	7,893
Operating income	281	67	762	124
Other income/(loss), net	157	(33)	113	76
Interest and dividend income	3,833	4,555	7,735	9,732
Interest expense	(288)	(1,489)	(687)	(3,086)
Unrealized (loss)/gain on marketable equity securities	(4,782)	3,467	(1,665)	(340)
Loss on sale and redemption of marketable securities	(314)	(75)	(625)	(78)
Net (loss)/income from continuing operations	(1,113)	6,492	5,633	6,428
Net income from discontinued operations		6,421	13,481	5,690
Net (loss)/income	(1,113)	12,913	19,114	12,118
Less: net income attributable to noncontrolling interests	(305)	(753)	(1,159)	(643)
Net (loss)/income attributable to Company's common shares	$ (1,418)	$ 12,160	$ 17,955	$ 11,475
Basic and diluted net (loss)/income per Company's common share:
Continuing operations	$ (0.07)	$ 0.23	$ 0.18	$ 0.23
Discontinued operations		0.26	0.58	0.23
Net (loss)/income per Company's common share, basic and diluted	$ (0.07)	$ 0.49	$ 0.76	$ 0.46
Weighted average number of common shares outstanding, basic and diluted	23,174	24,650	23,324	24,715

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
Net (loss)/income	$ (1,113)	$ 12,913	$ 19,114	$ 12,118
Other comprehensive income/(loss)
Holding gain/(loss) on available for sale debt securities	141	(465)	1,501	(1,497)
Reclassification adjustment for loss included in net income	314	75	625	78
Other comprehensive income/(loss)	455	(390)	2,126	(1,419)
Comprehensive income/(loss)	(658)	12,523	21,240	10,699
Less: Comprehensive (income)/loss attributable to noncontrolling interests	(314)	(746)	(1,203)	(615)
Comprehensive (loss)/income attributable to Company's common shares	$ (972)	$ 11,777	$ 20,037	$ 10,084

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income/(Loss)	Accumulated Surplus	Noncontrolling Interest	Total
BALANCE at Dec. 31, 2017	$ 248	$ 194,497	$ 15,467	$ 86,956	$ 18,202	$ 315,370
BALANCE (in shares) at Dec. 31, 2017	24,847
Reclassification of other accumulated comprehensive income to accumulated surplus			(15,476)	15,476
Net (loss)/income	$ 0	0	0	11,475	643	12,118
Other comprehensive income/(loss)	0	0	(1,391)	0	(28)	(1,419)
Distributions declared	0	0	0	(8,569)	0	(8,569)
Distributions paid to noncontrolling interests	0	0	0	0	(1,653)	(1,653)
Contributions received from noncontrolling interests	0	0	0	0	4	4
Redemption , cancellation and tender of shares	$ (2)	(2,355)				(2,357)
Redemption , cancellation and tender of shares (in shares)	(236)
Shares issued from distribution reinvestment program						0
BALANCE at Jun. 30, 2018	$ 246	192,142	(1,400)	105,338	17,168	313,494
BALANCE (in shares) at Jun. 30, 2018	24,611
BALANCE at Mar. 31, 2018	$ 247	193,245	(1,018)	97,477	17,240	307,191
BALANCE (in shares) at Mar. 31, 2018	24,722
Net (loss)/income	$ 0	0	0	12,160	753	12,913
Other comprehensive income/(loss)	0	0	(382)	0	(8)	(390)
Distributions declared	0	0	0	(4,299)	0	(4,299)
Distributions paid to noncontrolling interests	0	0	0	0	(820)	(820)
Contributions received from noncontrolling interests	0	0	0	0	3	3
Redemption , cancellation and tender of shares	$ (1)	(1,103)	0	0	0	(1,104)
Redemption , cancellation and tender of shares (in shares)	(111)
BALANCE at Jun. 30, 2018	$ 246	192,142	(1,400)	105,338	17,168	313,494
BALANCE (in shares) at Jun. 30, 2018	24,611
BALANCE at Dec. 31, 2018	$ 237	184,469	(2,251)	101,382	14,404	298,241
BALANCE (in shares) at Dec. 31, 2018	23,708
Net (loss)/income				17,955	1,159	19,114
Other comprehensive income/(loss)			2,082		44	2,126
Distributions declared				(8,122)		(8,122)
Distributions paid to noncontrolling interests					(1,711)	(1,711)
Contributions received from noncontrolling interests					11,952	11,952
Redemption , cancellation and tender of shares	$ (7)	(7,036)				(7,043)
Redemption , cancellation and tender of shares (in shares)	(667)
Shares issued from distribution reinvestment program	$ 1	126				127
Shares issued from distribution reinvestment program (in shares)	11
BALANCE at Jun. 30, 2019	$ 231	177,559	(169)	111,215	25,848	314,684
BALANCE (in shares) at Jun. 30, 2019	23,052
BALANCE at Mar. 31, 2019	$ 235	181,196	(615)	116,659	20,852	318,327
BALANCE (in shares) at Mar. 31, 2019	23,407
Net (loss)/income				(1,418)	305	(1,113)
Other comprehensive income/(loss)			446		9	455
Distributions declared				(4,026)		(4,026)
Distributions paid to noncontrolling interests					(880)	(880)
Contributions received from noncontrolling interests					5,562	5,562
Redemption , cancellation and tender of shares	$ (4)	(3,711)				(3,715)
Redemption , cancellation and tender of shares (in shares)	(361)
Shares issued from distribution reinvestment program		74				74
Shares issued from distribution reinvestment program (in shares)	6
BALANCE at Jun. 30, 2019	$ 231	$ 177,559	$ (169)	$ 111,215	$ 25,848	$ 314,684
BALANCE (in shares) at Jun. 30, 2019	23,052

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 19,114	$ 12,118
Less net income - discontinued operations	13,481	5,690
Net income - continuing operations	5,633	6,428
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,581	2,687
Mark to market adjustment on derivative financial instruments	135	(151)
Unrealized loss on marketable equity securities, available for sale	1,665	340
Loss on sale and redemption of marketable securities, available for sale	625	78
Amortization of deferred financing costs	652	338
Noncash interest income	(747)	(70)
Other non-cash adjustments	351	0
Changes in assets and liabilities:
Decrease/(increase) in prepaid expenses and other assets	(321)	(607)
Increase in tenant allowances and deposits payable	92	18
Increase in accounts payable and accrued expenses	380	(1,328)
(Decrease)/increase in due to Sponsor	(161)	(75)
Increase in deferred rental income	(42)	52
Net cash provided by operating activities - continuing operations	10,843	7,710
Net cash (used in)/provided by operating activities - discontinued operations	(55)	1,568
Net cash provided by operating activities	10,788	9,278
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(78,879)	(431)
Purchase of marketable securities	(6,450)	(71,375)
Proceeds from sale of marketable securities	54,429	8,951
Investment in joint venture	(57)	(649)
Proceeds from joint venture	109	713
Funding of notes receivable	(22,999)	0
Proceeds from investments in related parties	27,000	60,000
Investments in related parties	(2,267)	(12,795)
Net cash used in investing activities - continuing operations	(29,114)	(15,586)
Net cash used in investing activities - discontinued operations	(239)	(374)
Net cash used in investing activities	(29,353)	(15,960)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from mortgage financing	36,109	0
Mortgage principal payments	(808)	(21,182)
Payment of loan fees and expenses	(2,453)	0
Redemption and cancellation of common shares	(7,043)	(2,357)
Contributions received from noncontrolling interests	11,952	4
Distributions paid to noncontrolling interests	(1,711)	(1,653)
Distributions paid to Company's common stockholders	(8,104)	(8,658)
Net cash provided by/(used in) financing activities	27,942	(33,846)
Net change in cash, cash equivalents and restricted cash	9,377	(40,528)
Cash, cash equivalents and restricted cash, beginning of year	36,582	119,219
Cash, cash equivalents and restricted cash, end of period	45,959	78,691
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:
Restricted cash	2,401	2,731
Total cash, cash equivalents and restricted cash	$ 36,582	$ 119,219

Organization

Organization	6 Months Ended
	Jun. 30, 2019
Organization
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 June 30, 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 June 30, 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 June 30, 2019, the St. Augustine Outlet Center, DePaul Plaza and Gantry Park Landing were 75%, 89% and 99% occupied, respectively. Tender Offer The Company commenced a tender offer on April 19, 2019, pursuant to which it is offered to acquire up to 0.5 million shares of its common stock at a purchase price of $7.00 per share, or $3.5 million in the aggregate (the “Tender Offer”). Pursuant to the terms of the Tender Offer, which expired on June 14, 2019, the Company repurchased approximately 60,420 of its shares of common stock at $7.00 per share, or an aggregate of approximately $0.4 million. 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 8). Segment Reporting Since its inception, the Company has owned and managed various commercial and residential properties located throughout 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 a result of these disposition activities, the Company only remaining properties were two retail properties (St. Augustine Outlet Center and DePaul Plaza) and one multi-family property (Gantry Park Landing). Because 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 no longer is a driver of resource allocation decisions. Rather, the Company now evaluates all of its real estate investments as one operating segment and no longer reports any 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 June 30, 2019. Other Noncontrolling Interests in Consolidated Subsidiaries As of June 30, 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, (iv) the 162nd Street Joint Venture II held by an affiliate of the Company’s Sponsor and (v) the Greenpoint Joint Venture 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, New York. The 162nd Street Joint Venture I, the 162nd Street Joint Venture II and the Greenpoint Joint Venture each hold a promissory note collateralized by land parcels being developed by unaffiliated third parties (see Note 5).

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
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. In addition, interests in entities acquired are evaluated based on applicable GAAP, and if deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest but have significant influence, we account for the investment using the equity method of accounting. 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, the 162nd Street Joint Venture II and the Greenpoint Joint Venture, 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 resulted 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 is currently in the process of evaluating the impact the adoption of this standard will have on the Company’s consolidated financial statements. 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 Six Months Ended June 30, 2019 2018 Cash paid for interest $ 3,619 $ 3,995 Distributions declared but not paid $ 4,027 $ 4,299 Investment property acquired but not paid $ 307 $ — Assets transferred due to foreclosure $ 37,299 $ — Liabilities extinguished in foreclosure $ 50,914 $ — Reclassification of accumulated other comprehensive income and noncontrolling interests to accumulated surplus $ — $ 15,476 Holding gain/loss on marketable securities $ 2,126 $ 1,419 Value of shares issued from distribution reinvestment program $ 127 $ — Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation.

Development Projects

Development Projects	6 Months Ended
	Jun. 30, 2019
Development Projects
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 June 30, 2019 and December 31, 2018, the Company incurred and capitalized to construction in progress an aggregate of $67.2 million (including the acquisition fee of $1.6 million and capitalized interest of $1.8 million) and $63.3 million (including the acquisition fee of $1.6 million), respectively, consisting of acquisition and other development costs attributable to the Lower East Side Moxy Hotel. During the three and six months ended June 30, 2019, the Company capitalized interest of approximately $0.9 million and $1.8 million, respectively in connection with the development of the Lower East Side Moxy Hotel. Exterior Street Project 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, on which it intends to develop and construct a multi-family residential property (the “Exterior Street Project"). On March 29, 2019, the Company entered into a $35.0 million loan (the “Exterior Street Loan”) which bears interest at 4.50% and is scheduled to initially mature on April 9, 2020, but may be further extended through the exercise of two, six-month extension options, subject to certain conditions. The Exterior Street Loan requires monthly interest payments through its maturity date and is collateralized by the Exterior Street Land. In connection with the acquisition of the Exterior Street 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 June 30, 2019, the Company incurred and capitalized to construction in progress an aggregate of $62.8 million (including the acquisition fee of $1.6 million and $1.0 million of capitalized interest) consisting of acquisition and other development costs attributable to the Exterior Street Project. During the three and six months ended June 30, 2019, the Company capitalized interest of approximately $0.7 million and $1.0 million, respectively in connection with the development of the Exterior Street Project. 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 June 30, 2019, the Company has incurred and capitalized to construction in progress an aggregate of $12.2 million (including the acquisition fee of $0.2 million and $0.2 million of capitalized interest) consisting of acquisition and other development costs attributable to the Santa Clara Data Center. During the three and six months ended June 30, 2019, the Company capitalized interest of approximately $0.1 million and $0.2 million, respectively in connection with the development of the Santa Clara Data Center.

Marketable Securities, Fair Val

Marketable Securities, Fair Value Measurements and Notes Payable	6 Months Ended
	Jun. 30, 2019
Marketable Securities, Fair Value Measurements and Notes Payable
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 June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Marketable Securities: Equity securities: Equity Securities $ 4,012 $ 299 $ (16) $ 4,295 Marco OP Units and Marco II OP Units 19,227 14,201 — 33,428 23,239 14,500 (16) 37,723 Debt securities: Corporate Bonds 16,242 73 (244) 16,071 Other Investments: Certificate of Deposit 5,076 — — 5,076 5,076 — — 5,076 Total $ 44,557 $ 14,573 $ (260) $ 58,870 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Marketable Securities: Equity securities: Equity Securities $ 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 June 30, 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 and six months ended June 30, 2019 and 2018, the Company did not recognize any impairment charges. As of June 30, 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 June 30, 2019 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 4,295 $ — $ — $ 4,295 Marco OP and OP II Units — 33,428 — 33,428 Corporate Bonds — 16,071 — 16,071 Certificate of Deposit — 5,076 — 5,076 Total $ 4,295 $ 54,575 $ — $ 58,870 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 June 30, 2019 Due in 1 year $ 4,723 Due in 1 year through 5 years 4,395 Due in 5 years through 10 years 4,250 Due after 10 years 5,431 Total $ 18,799 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% (3.25% as of June 30, 2019) and is collateralized by the marketable securities in the Company’s account. The amounts available to the Company under the Margin Loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. There were no amounts outstanding under this Margin Loan as of June 30, 2019 and December 31, 2018. Line of Credit The Company had a non-revolving credit facility (the “Line of Credit”) with a financial institution which previously permitted borrowings up to $25.0 million and was scheduled to expire on June 19, 2019. Effective June 19, 2019, the Line of Credit was extended until June 19, 2021 and the amount available for borrowings was reduced to $20.0 million. The Line of Credit bears interest at Libor plus 1.35% (3.75% as of June 30, 2019). The Line of Credit is collateralized by approximately 209,000 Marco OP Units and PRO has guaranteed the Line of Credit. No amounts were outstanding under the Line of Credit as of June 30, 2019 and December 31, 2018.

Notes Receivable

Notes Receivable	6 Months Ended
	Jun. 30, 2019
Notes Receivable
Notes Receivable	5. Notes Receivable 162nd Street Joint Venture I On February 5, 2019, a wholly-owned subsidiary of the Operating Partnership (the “162nd Street Sub I”) 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 determined that the 162nd Street Joint Venture I is a VIE and the 162nd Street Sub I is the primary beneficiary. Another wholly-owned subsidiary of the Operating Partnership is the manager and sole decision maker of the 162nd Street Joint Venture I. Since the 162nd Street Sub I is the primary beneficiary, beginning on February 5, 2019, 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 June 30, 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 is being amortized to interest income, using a straight-line method that approximates the effective interest method, over the initial term of the 162nd Street Joint Venture I Promissory Note. The maturity of the 162nd Street Joint Venture I Promissory Note can be further extended for an additional one 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 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 is being applied against the monthly interest due during the initial term of the 162nd Street Joint Venture I Promissory Note. 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 Company has determined that the 162nd Street Joint Venture II is a VIE and the 162nd Street Sub II is the primary beneficiary. Another wholly-owned subsidiary of the Operating Partnership is the manager and sole decision maker of the 162nd Street Joint Venture II. Since the 162nd Street Sub II is the primary beneficiary, beginning on February 5, 2019, the Company has consolidated the operating results and financial condition of the 162nd Street Joint Venture II and accounted for the ownership interest of CRE Capital II as a noncontrolling interest. The 162nd Street Joint Venture II Promissory Note is recorded in notes receivable on the consolidated balance sheet. 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 June 30, 2019). The 162nd Street Joint Venture II 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 is being amortized to interest income, using a straight-line method that approximates the effective interest method, over the initial term of the 162nd Street Joint Venture II Promissory Note. The maturity of the 162nd Street Joint Venture II Promissory Note can be further extended for an additional one 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 $1.0 million of the proceeds to establish a reserve for interest and other items, 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 is being applied against the monthly interest due during the initial term of the 162nd Street Joint Venture II Promissory Note. Greenpoint Joint Venture On April 5, 2019, a wholly-owned subsidiary of the Operating Partnership (the "Greenpoint Sub") and an affiliate of the Sponsor ("CRE Greenpoint") formed the Greenpoint Joint Venture, a joint venture in which the Company and CRE Greenpoint each have 50.0% ownership interests. On the same date, the Greenpoint Joint Venture made aggregate mortgage loans of $13.0 million (a $0.9 million mortgage loan and a $12.1 million mortgage loan, collectively, the "Greenpoint Joint Venture Mortgages") to an unaffiliated third party (the "Greenpoint Joint Venture Borrower"). The Company has determined that the Greenpoint Joint Venture is a VIE and the Greenpoint Sub is the primary beneficiary. Another wholly-owned subsidiary of the Operating Partnership is the manager and sole decision maker of the Greenpoint Joint Venture. Since the Greenpoint Sub is the primary beneficiary, beginning on April 5, 2019, the Company has consolidated the operating results and financial condition of the Greenpoint Joint Venture and accounted for the ownership interest of CRE Greenpoint as a noncontrolling interest. The Greenpoint Venture Mortgages are recorded in notes receivable on the consolidated balance sheet. The Greenpoint Joint Venture Mortgages are due April 5, 2020 and are collateralized by parcels of land located at 47-16 through 47-24 Greenpoint Avenue, Sunnyside, New York, and the buildings and other improvements that the Greenpoint Joint Venture Borrower is currently developing. The Greenpoint Joint Venture Mortgages bear interest at a rate of Libor + 5.75% per annum with a floor of 8.25% (8.25% as of June 30, 2019). The Greenpoint Joint Venture received an origination fee of 1.0% 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 Greenpoint Joint Venture Mortgages and is being amortized to interest income, using a straight-line method that approximates the effective interest method, over the initial term of the Greenpoint Joint Venture Mortgages. The maturity of the Greenpoint Joint Venture Mortgages can be further extended for two additional six-month periods at the discretion of the Greenpoint Joint Venture 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 Greenpoint Joint Venture Mortgages, the Greenpoint Joint Venture retained approximately $1.7 million of the proceeds to establish a reserve for interest and other items, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the Greenpoint Joint Venture Mortgages and is being applied against the monthly interest due during the initial term of the Greenpoint Joint Venture Mortgages. During the three and six months ended June 30, 2019, the Company recorded $0.6 million and $0.7 million, respectively, of interest income related to the Notes Receivable and as of June 30, 2019, the balance of the Notes Receivable was $26.4 million and the remaining reserves for interest and other items aggregated $2.7 million.

Mortgages Payable, Net

Mortgages Payable, Net	6 Months Ended
	Jun. 30, 2019
Mortgages Payable, Net
Mortgages Payable, Net	6. Mortgages Payable, Net Mortgages payable, net consists of the following: Weighted Average Interest Rate as of Amount Due at As of As of Property Interest Rate June 30, 2019 Maturity Date Maturity June 30, 2019 December 31, 2018 Gantry Park 4.48 % 4.48 % November 2024 $ 65,317 $ 72,737 $ 73,341 DePaul Plaza LIBOR + 2.75 % 5.24 % June 2020 13,494 13,868 14,072 Bowery Land and Air Rights LIBOR + 4.25 % 6.74 % December 2020 33,676 33,676 32,567 Exterior Street Land 4.50 % 4.50 % April 2020 35,000 35,000 — Total mortgages payable 5.04 % $ 147,487 155,281 119,980 Less: Deferred financing costs (3,379) (1,579) Total mortgages payable, net $ 151,902 $ Libor as of June 30, 2019 and December 31, 2018 was 2.40% 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 $35.0 million Exterior Street Loan which bears interest at 4.50% and is scheduled to initially mature on April 9, 2020, but may be further extended through the exercise of two, six-month extension options, subject to certain conditions. The Exterior Street Loan requires monthly interest payments through its maturity date and is collateralized by the Exterior Street Land. On December 3, 2018, the Company entered into a mortgage loan collateralized by the Bowery Land and the Air Rights (the “Bowery Mortgage) for approximately $35.6 million. The Bowery Mortgage has a term of two years, bears interest at LIBOR+4.25% and requires monthly interest-only payments through its stated maturity with the entire unpaid balance due upon maturity. Through June 30, 2019, the Company received aggregate proceeds of $33.7 million under the Bowery Mortgage. As a result, the Bowery Mortgage had an outstanding balance and remaining availability of $33.7 million and $1.9 million, respectively, as of June 30, 2019. The Exterior Street Loan (outstanding principal balance of $35.0 million as of June 30, 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 extension options or refinance the Exterior Street Loan on or before its applicable stated maturity date. The mortgage loan (the “DePaul Plaza Mortgage”) collateralized by the DePaul Plaza retail property (outstanding principal balance of $13.9 million as of June 30, 2019) matures on June 1, 2020. We currently expect to refinance all or a portion of the DePaul Plaza Mortgage on or before its scheduled maturity date. However, if we are unable to refinance the outstanding indebtedness at favorable terms, we will look to repay the then outstanding balance with available cash and/or proceeds from selective asset sales. 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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 813 $ 83,600 $ 1,328 $ 1,389 $ 1,454 $ 66,697 $ 155,281 Less: Deferred financing costs (3,379) Total principal maturities, net $ 151,902

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases
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 June 30, 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 $ 2,110 $ 3,643 $ 3,232 $ 2,950 $ 2,853 $ 10,832 $ 25,620 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 $0.4 million and $0.7 million for the three and six months ended June 30, 2019, respectively, and, lease income of approximately $0.7 million and $1.4 million for the three and six months ended June 30, 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	6 Months Ended
	Jun. 30, 2019
Discontinued Operations
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 million was recognized during the second quarter of 2018. 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 June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Revenues $ — $ 1,370 $ 409 $ 3,015 Operating expenses — 1,093 317 2,262 Operating income — 277 92 753 Interest expense and other, net — (993) (226) (2,200) Gain on disposition of real estate — 7,137 — 7,137 Gain on debt extinguishment — — 13,615 — Net income from discontinued operations $ — $ 6,421 $ 13,481 $ 5,690 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	6 Months Ended
	Jun. 30, 2019
Net Earnings Per Share
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	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Acquisition fees (capitalized and are reflected in the carrying value of the investment) $ — $ — $ 1,823 $ — Asset management fees (general and administrative costs) 301 427 638 891 Property management fees (property operating expenses) 76 136 155 289 Development fees and leasing commissions* 93 42 167 120 Total $ 470 $ 605 $ 2,783 $ 1,300 * 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 and six months ended June 30, 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 $76.0 million and $100.7 million as of June 30, 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 six months ended June 30, 2019, the Company (i) redeemed an aggregate of $17.0 million of the East 11th Street Preferred Investment and the entire 30-02 39th Street Preferred Investment of $10.0 million and (ii) made aggregate contributions of $2.3 million for the Miami Moxy Preferred Investment and as of June 30, 2019, there were no unfunded contributions. The Preferred Investments are summarized as follows: Unfunded Preferred Investment Balance Contributions Investment Income As of As of As of Three Months Ended June 30, Six Months Ended June 30, Preferred Investments Dividend Rate June 30, 2019 December 31, 2018 June 30, 2019 2019 2018 2019 2018 40 East End Avenue 12 % $ 30,000 $ 30,000 $ — $ 910 $ 910 $ 1,810 $ 1,810 30‑02 39 th Avenue 12 % — 10,000 — — 303 140 603 485 7th Avenue 12 % — — — — 70 — 1,095 East 11th Street 12 % 26,000 43,000 — 807 1,726 1,907 3,207 Miami Moxy 12 % 20,000 17,733 — 558 398 1,090 772 Total Preferred Investments $ 76,000 $ 100,733 $ — $ 2,275 $ 3,407 $ 4,947 $ 7,487 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 June 30, 2019. The Company accounts for its 2.5% membership interest in the Joint Venture under the cost method and as of June 30, 2019 and December 31, 2018, the carrying value of its investment was $1.2 million and $1.3 million, respectively, which is included in investment in related parties on the consolidated balance sheets.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Financial Instruments	11. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted escrows, tenants’ accounts receivable, notes 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 rate is variable and reflective of the market rate. The estimated fair value (in millions) of the Company’s mortgage debt is summarized as follows: As of June 30, 2019 As of December 31, 2018 Estimated Fair Estimated Fair Carrying Amount Value Carrying Amount Value Mortgages payable $ 155.3 $ 157.8 $ 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	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies
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

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	13. Subsequent Events Distribution Payment On July 15, 2019, the distribution for the quarterly period ending June 30, 2019 of $4.0 million was paid in full using a combination of cash and approximately 7,000 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 August 6, 2019, the Company’s Board of Directors authorized and the Company declared a distribution of $0.175 per share for the quarterly period ending September 30, 2019. The quarterly distribution is the pro rata equivalent of an annual distribution of $0.70 per share, or an annualized rate of 7.0% assuming a purchase price of $10.00 per share. The distribution will be paid on or about the 15th day of the month following the quarter-end to stockholders of record at the close of business on the last day of the quarter-end. The stockholders have an option to elect the receipt of shares under the Company’s DRIP. Future distributions declared will be at the discretion of the Board of Directors based on their analysis of our performance over the previous periods and expectations of performance for future periods and may differ from the amount of the distribution determined for this period. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, current rental revenues, operating and interest expenses and our ability to refinance near-term debt. In addition, the Company currently intends to continue to comply with the REIT distribution requirement that it annually distribute no less than 90% of its taxable income. The Company cannot assure that regular distributions will continue to be made or that it will maintain any particular level of distributions that it has established or may establish.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
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. In addition, interests in entities acquired are evaluated based on applicable GAAP, and if deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest but have significant influence, we account for the investment using the equity method of accounting. 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, the 162nd Street Joint Venture II and the Greenpoint Joint Venture, 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 resulted 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 is currently in the process of evaluating the impact the adoption of this standard will have on the Company’s consolidated financial statements. 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 Six Months Ended June 30, 2019 2018 Cash paid for interest $ 3,619 $ 3,995 Distributions declared but not paid $ 4,027 $ 4,299 Investment property acquired but not paid $ 307 $ — Assets transferred due to foreclosure $ 37,299 $ — Liabilities extinguished in foreclosure $ 50,914 $ — Reclassification of accumulated other comprehensive income and noncontrolling interests to accumulated surplus $ — $ 15,476 Holding gain/loss on marketable securities $ 2,126 $ 1,419 Value of shares issued from distribution reinvestment program $ 127 $ —
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)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Summary of supplemental cash flow information	Supplemental cash flow information for the periods indicated is as follows: For the Six Months Ended June 30, 2019 2018 Cash paid for interest $ 3,619 $ 3,995 Distributions declared but not paid $ 4,027 $ 4,299 Investment property acquired but not paid $ 307 $ — Assets transferred due to foreclosure $ 37,299 $ — Liabilities extinguished in foreclosure $ 50,914 $ — Reclassification of accumulated other comprehensive income and noncontrolling interests to accumulated surplus $ — $ 15,476 Holding gain/loss on marketable securities $ 2,126 $ 1,419 Value of shares issued from distribution reinvestment program $ 127 $ —

Marketable Securities, Fair V_2

Marketable Securities, Fair Value Measurements and Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2019
Marketable Securities, Fair Value Measurements and Notes Payable
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 June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Marketable Securities: Equity securities: Equity Securities $ 4,012 $ 299 $ (16) $ 4,295 Marco OP Units and Marco II OP Units 19,227 14,201 — 33,428 23,239 14,500 (16) 37,723 Debt securities: Corporate Bonds 16,242 73 (244) 16,071 Other Investments: Certificate of Deposit 5,076 — — 5,076 5,076 — — 5,076 Total $ 44,557 $ 14,573 $ (260) $ 58,870 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Marketable Securities: Equity securities: Equity Securities $ 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 measured at fair value on a 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 June 30, 2019 Level 1 Level 2 Level 3 Total Marketable Securities: Equity Securities, primarily REITs $ 4,295 $ — $ — $ 4,295 Marco OP and OP II Units — 33,428 — 33,428 Corporate Bonds — 16,071 — 16,071 Certificate of Deposit — 5,076 — 5,076 Total $ 4,295 $ 54,575 $ — $ 58,870 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 June 30, 2019 Due in 1 year $ 4,723 Due in 1 year through 5 years 4,395 Due in 5 years through 10 years 4,250 Due after 10 years 5,431 Total $ 18,799

Mortgages Payable, Net (Tables)

Mortgages Payable, Net (Tables)	6 Months Ended
	Jun. 30, 2019
Mortgages Payable, Net
Schedule of Mortgages Payable	Mortgages payable, net consists of the following: Weighted Average Interest Rate as of Amount Due at As of As of Property Interest Rate June 30, 2019 Maturity Date Maturity June 30, 2019 December 31, 2018 Gantry Park 4.48 % 4.48 % November 2024 $ 65,317 $ 72,737 $ 73,341 DePaul Plaza LIBOR + 2.75 % 5.24 % June 2020 13,494 13,868 14,072 Bowery Land and Air Rights LIBOR + 4.25 % 6.74 % December 2020 33,676 33,676 32,567 Exterior Street Land 4.50 % 4.50 % April 2020 35,000 35,000 — Total mortgages payable 5.04 % $ 147,487 155,281 119,980 Less: Deferred financing costs (3,379) (1,579) Total mortgages payable, net $ 151,902 $
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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 813 $ 83,600 $ 1,328 $ 1,389 $ 1,454 $ 66,697 $ 155,281 Less: Deferred financing costs (3,379) Total principal maturities, net $ 151,902

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases
Schedule of Future Minimum Rental Payments	As of June 30, 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 $ 2,110 $ 3,643 $ 3,232 $ 2,950 $ 2,853 $ 10,832 $ 25,620

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2019
Discontinued Operations
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 June 30, For the Six Months Ended June 30, 2019 2018 2019 2018 Revenues $ — $ 1,370 $ 409 $ 3,015 Operating expenses — 1,093 317 2,262 Operating income — 277 92 753 Interest expense and other, net — (993) (226) (2,200) Gain on disposition of real estate — 7,137 — 7,137 Gain on debt extinguishment — — 13,615 — Net income from discontinued operations $ — $ 6,421 $ 13,481 $ 5,690
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)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Amount recorded in pursuant to related party arrangement	The Company, pursuant to the related party arrangements, has recorded the following amounts for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Acquisition fees (capitalized and are reflected in the carrying value of the investment) $ — $ — $ 1,823 $ — Asset management fees (general and administrative costs) 301 427 638 891 Property management fees (property operating expenses) 76 136 155 289 Development fees and leasing commissions* 93 42 167 120 Total $ 470 $ 605 $ 2,783 $ 1,300 *
Investments in and Advances to Affiliates	The Preferred Investments are summarized as follows: Unfunded Preferred Investment Balance Contributions Investment Income As of As of As of Three Months Ended June 30, Six Months Ended June 30, Preferred Investments Dividend Rate June 30, 2019 December 31, 2018 June 30, 2019 2019 2018 2019 2018 40 East End Avenue 12 % $ 30,000 $ 30,000 $ — $ 910 $ 910 $ 1,810 $ 1,810 30‑02 39 th Avenue 12 % — 10,000 — — 303 140 603 485 7th Avenue 12 % — — — — 70 — 1,095 East 11th Street 12 % 26,000 43,000 — 807 1,726 1,907 3,207 Miami Moxy 12 % 20,000 17,733 — 558 398 1,090 772 Total Preferred Investments $ 76,000 $ 100,733 $ — $ 2,275 $ 3,407 $ 4,947 $ 7,487

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Schedule of Long-term Debt Instruments	The estimated fair value (in millions) of the Company’s mortgage debt is summarized as follows: As of June 30, 2019 As of December 31, 2018 Estimated Fair Estimated Fair Carrying Amount Value Carrying Amount Value Mortgages payable $ 155.3 $ 157.8 $ 120.0 $ 119.8

Organization (Details)

Organization (Details) $ / shares in Units, $ in Thousands, ft² in Millions	Apr. 19, 2019USD ($)$ / sharesshares	Apr. 19, 2019USD ($)$ / sharesshares	Jul. 06, 2004USD ($)shares	Jun. 30, 2019USD ($)ft²Rate$ / shares	Dec. 31, 2018USD ($)	Dec. 31, 2009shares
Organization
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
Stock repurchase program, number of shares authorized to be repurchased | shares	500,000	500,000
Treasury stock acquired, average cost per share | $ / shares		$ 7
Aggregate amounts required to commence tender offer | $		$ 3,500
Sale of stock, consideration received on transaction | $			$ 30,000	$ 76,000	$ 100,700
Sale of stock, price per share | $ / shares				$ 100,000
Stock repurchased during period, shares | shares	60,420
Share price | $ / shares	$ 7	$ 7
Stock repurchased during period, value | $	$ 400
Retail
Organization
Occupancy percentage of commercial properties				75.00%
Industrial Properties
Organization
Occupancy percentage of commercial properties				89.00%
Residential Real Estate
Organization
Occupancy percentage of commercial properties				99.00%
Wholly Owned Properties | Industrial Properties
Organization
Area of real estate property | ft²				0.5
Wholly Owned Properties | Residential Real Estate
Organization
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	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Summary of Significant Accounting Policies
Cash paid for interest			$ 3,619	$ 3,995
Distributions declared but not paid			4,027	4,299
Investment property acquired but not paid			307	0
Assets transferred due to foreclosure			37,299	0
Liabilities extinguished in foreclosure			50,914	0
Reclassification of accumulated other comprehensive income and noncontrolling interests to accumulated surplus	$ 15,500		0	15,476
Holding gain/loss on marketable securities			2,126	1,419
Value of shares issued from distribution reinvestment program		$ 74	$ 127	$ 0

Development Projects (Details)

Development Projects (Details) - USD ($) $ in Millions	Jan. 10, 2019	Dec. 03, 2018	Feb. 27, 2019	Dec. 06, 2018	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Mar. 29, 2019
Acquisition fees and expenses percentage of purchase price				2.75%	2.75%	2.75%
Acquisition fees				$ 1.6		$ 1.6
Debt instrument, interest rate		4.25%
Bowery Land
Business combination, consideration transferred		$ 56.5
Air Rights
Business combination, consideration transferred				$ 2.4
Lower East Side Moxy Hotel
Acquisition fees						1.6	$ 1.6
Construction in progress, gross					$ 67.2	67.2	$ 63.3
Interest costs capitalized					0.9	1.8
Borden Realty Corp and 399 Exterior Street Associates LLC
Business combination, consideration transferred			$ 59
Debt instrument, face amount								$ 35
Exterior Street Land
Debt instrument, interest rate								4.50%
Construction in progress, gross					62.8	62.8
Interest costs capitalized					0.7	1
Business acquisition fee						1.6
The Chioini Living Trust
Business combination, consideration transferred	$ 10.6
Business acquisition transaction cost percentage	2.75%
Business acquisition, transaction costs	$ 0.2
Martin Avenue Land
Construction in progress, gross					12.2	12.2
Business acquisition fee						0.2
Santa Clara Data Center
Interest costs capitalized					$ 0.1	$ 0.2

Marketable Securities, Fair V_3

Marketable Securities, Fair Value Measurements and Notes Payable - Summary of available for sale securities and other investments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale
Equity securities, adjusted cost	$ 44,557,000	$ 93,110,000
Equity securities, gross unrealized gains	14,573,000	16,278,000
Equity securities, gross unrealized losses	(260,000)	(2,439,000)
Equity securities, fair value	58,870,000	106,949,000
Debt securities, Fair Value	18,799
Equity Securities
Debt Securities, Available-for-sale
Equity securities, adjusted cost	23,239,000	20,666,000
Equity securities, gross unrealized gains	14,500,000	16,154,000
Equity securities, gross unrealized losses	(16,000)	(18,000)
Equity securities, fair value	37,723,000	36,802,000
Equity Securities
Debt Securities, Available-for-sale
Equity securities, adjusted cost	4,012,000	1,439,000
Equity securities, gross unrealized gains	299,000	230,000
Equity securities, gross unrealized losses	(16,000)	(18,000)
Equity securities, fair value	4,295,000	1,651,000
Marco OP Units and Marco II OP Units
Debt Securities, Available-for-sale
Equity securities, adjusted cost	19,227,000	19,227,000
Equity securities, gross unrealized gains	14,201,000	15,924,000
Equity securities, gross unrealized losses	0	0
Equity securities, fair value	33,428,000	35,151,000
Corporate Bonds
Debt Securities, Available-for-sale
Debt securities, adjusted cost	16,242,000	65,817,000
Debt securities, gross unrealized gains	73,000	124,000
Debt securities, gross unrealized losses	(244,000)	(2,120,000)
Debt securities, Fair Value	16,071,000	63,821,000
Mortgage Backed Securities ("MBS")
Debt Securities, Available-for-sale
Debt securities, adjusted cost		1,615,000
Debt securities, gross unrealized gains		0
Debt securities, gross unrealized losses		(301,000)
Debt securities, Fair Value		1,314,000
Corporate Debt Securities
Debt Securities, Available-for-sale
Debt securities, adjusted cost		67,432,000
Debt securities, gross unrealized gains		124,000
Debt securities, gross unrealized losses		(2,421,000)
Debt securities, Fair Value		65,135,000
Other Investments
Debt Securities, Available-for-sale
Equity securities, adjusted cost	5,076,000	5,012,000
Equity securities, gross unrealized gains	0	0
Equity securities, gross unrealized losses	0	0
Equity securities, fair value	5,076,000	5,012,000
Certificates of Deposit
Debt Securities, Available-for-sale
Equity securities, adjusted cost	5,076,000	5,012,000
Equity securities, gross unrealized gains	0	0
Equity securities, gross unrealized losses	0	0
Equity securities, fair value	$ 5,076,000	$ 5,012,000

Marketable Securities, Fair V_4

Marketable Securities, Fair Value Measurements and Notes Payable - Marketable securities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	$ 58,870	$ 106,949
Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	4,295	1,651
Marco OP Units and Marco II OP Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	33,428	35,151
Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	16,071	63,821
Mortgage Backed Securities ("MBS")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities		1,314
Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	5,076	5,012
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	4,295	1,651
Level 1 | Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	4,295	1,651
Level 1 | Marco OP Units and Marco II OP Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 1 | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 1 | Mortgage Backed Securities ("MBS")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities		0
Level 1 | Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	54,575	105,298
Level 2 | Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 2 | Marco OP Units and Marco II OP Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	33,428	35,151
Level 2 | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	16,071	63,821
Level 2 | Mortgage Backed Securities ("MBS")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities		1,314
Level 2 | Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	5,076	5,012
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 3 | Equity Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 3 | Marco OP Units and Marco II OP Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 3 | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	0	0
Level 3 | Mortgage Backed Securities ("MBS")
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities		0
Level 3 | Certificates of Deposit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Available-for-sale securities	$ 0	$ 0

Marketable Securities, Fair V_5

Marketable Securities, Fair Value Measurements and Notes Payable - Available-for-sale securities (Details)	Jun. 30, 2019USD ($)
Marketable Securities, Fair Value Measurements and Notes Payable
Due in 1 year	$ 4,723
Due in 1 year through 5 years	4,395
Due in 5 years through 10 years	4,250
Due after 10 years	5,431
Total	$ 18,799

Marketable Securities, Fair V_6

Marketable Securities, Fair Value Measurements and Notes Payable - Additional information (Details) - USD ($) $ in Thousands	Jan. 02, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Jun. 19, 2019	Jun. 18, 2019	Dec. 03, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Margin Loan, amount outstanding		$ 0		$ 0		$ 0
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
Aggregate net unrealized gains from AOCI to opening accumulated surplus	$ 15,500			$ 0	$ 15,476
Impairment charges		$ 0	$ 0	$ 0	$ 0
Margin Loan
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt instrument, interest rate terms				Libor plus 0.85
Debt instrument, interest rate at end of period		3.25%		3.25%
Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt instrument, interest rate terms				Libor plus 1.35
Debt instrument, interest rate at end of period		3.75%		3.75%
Debt instrument, maturity date				Jun. 19, 2019
Line of credit facility, maximum borrowing capacity							$ 20,000	$ 25,000
Line of credit facility, amount outstanding		$ 0		$ 0		$ 0
Marco OP Units and Pro DFJV Holdings LLC
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Debt instrument, collateral amount		$ 209		$ 209
Marco OP Units and Marco II OP Units
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Equity securities held during period				209,243		89,695

Notes Receivable (Details)

Notes Receivable (Details) - USD ($) $ in Millions	Apr. 05, 2019	Feb. 05, 2019	Dec. 03, 2018	Jun. 30, 2019	Jun. 30, 2019
Debt instrument, description of variable rate basis			LIBOR+4.25%
Debt instrument, interest rate			4.25%
Remaining reserve for interest and other				$ 2.7	$ 2.7
Notes Receivable
Interest income, purchased receivables				0.6	0.7
Notes receivable, gross				$ 26.4	$ 26.4
Accounts Payable and Accrued Liabilities
Reserve for interest and other		$ 0.4
162nd Street Joint Venture I
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		10.00%		10.00%	10.00%
Percentage of origination fee on notes receivables		1.50%
Value of origination fee on notes receivables		$ 0.1
Percentage of additional reserve for interest extension fee		1.00%
162nd Street Joint Venture II
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		10.00%		10.00%	10.00%
Percentage of origination fee on notes receivables		1.50%
Value of origination fee on notes receivables		$ 0.1
Percentage of additional reserve for interest extension fee		1.00%
162nd Street Joint Venture II | Accounts Payable and Accrued Liabilities
Reserve for interest and other		$ 1
Greenpoint Joint Venture
Debt instrument, description of variable rate basis	Libor + 5.75%
Debt instrument, interest rate	8.25%			8.25%	8.25%
Mortgage loan, face amount	$ 13
Percentage of origination fee on notes receivables	1.00%
Value of origination fee on notes receivables	$ 0.1
Percentage of additional reserve for interest extension fee	1.00%
Reserve for interest and other	$ 1.7
Greenpoint Sub
Equity method investment, ownership percentage	50.00%
Mortgage loan, face amount	$ 0.9
CRE Greenpoint
Equity method investment, ownership percentage	50.00%
Mortgage loan, face amount	$ 12.1

Mortgages Payable, Net (Details

Mortgages Payable, Net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Dec. 03, 2018
Debt Instrument
Debt instrument, interest rate			4.25%
Weighted average interest rate	5.04%
Amount due at maturity	$ 147,487
Total mortgages payable	155,281	$ 119,980
Less: Deferred financing costs	(3,379)	(1,579)
Total mortgages payable, net	$ 151,902	118,401
Gantry Park
Debt Instrument
Debt instrument, interest rate	4.48%
Weighted average interest rate	4.48%
Maturity date	2024-11
Amount due at maturity	$ 65,317
Total mortgages payable	$ 72,737	73,341
DePaul Plaza
Debt Instrument
Debt instrument, interest rate terms	LIBOR + 2.75
Weighted average interest rate	5.24%
Maturity date	2020-06
Amount due at maturity	$ 13,494
Total mortgages payable	$ 13,868	14,072
Bowery Land and Air Rights
Debt Instrument
Debt instrument, interest rate terms	LIBOR + 4.25
Weighted average interest rate	6.74%
Maturity date	2020-12
Amount due at maturity	$ 33,676
Total mortgages payable	$ 33,676	32,567
Exterior Street Land
Debt Instrument
Debt instrument, interest rate	4.50%
Weighted average interest rate	4.50%
Maturity date	2020-04
Amount due at maturity	$ 35,000
Total mortgages payable	$ 35,000	$ 0

Mortgages Payable, Net - Schedu

Mortgages Payable, Net - Schedule of principal maturities of the company's mortgage debt (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Mortgages Payable, Net
2019	$ 813
2020	83,600
2021	1,328
2022	1,389
2023	1,454
Thereafter	66,697
Total	155,281	$ 119,980
Less: Deferred financing costs	(3,379)	(1,579)
Total principal maturities, net	$ 151,902	$ 118,401

Mortgages Payable, Net - Additi

Mortgages Payable, Net - Additional information (Details) - USD ($) $ in Millions	Dec. 03, 2018	Mar. 29, 2019	Mar. 31, 2018	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument
Debt instrument interest london interbank offered rate				2.40%	2.52%
Debt instrument, collateral amount	$ 35.6
Debt instrument, description of variable rate basis	LIBOR+4.25%
Debt instrument, interest rate	4.25%
Debt instrument, term	2 years
Exterior Street Loan
Debt Instrument
Debt instrument, face amount		$ 35		$ 35
Debt instrument, interest rate		4.50%
Debt instrument, maturity date		Apr. 9, 2020
Bowery Land and Air Rights
Debt Instrument
Line of credit facility, maximum amount outstanding during period			$ 1.9	33.7
Proceeds from issuance of long-term debt				33.7
DePaul Plaza
Debt Instrument
Debt instrument, face amount				$ 13.9

Leases (Details)

Leases (Details) $ in Thousands	Jun. 30, 2019USD ($)
Future minimum rent payments, Fiscal Year Maturity
2019	$ 2,110
2020	3,643
2021	3,232
2022	2,950
2023	2,853
Thereafter	10,832
Total	$ 25,620

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Leases
Lease income	$ 0.4	$ 0.7	$ 0.7	$ 1.4

Discontinued Operations - Summa

Discontinued Operations - Summary of operating results of the Gulf Coast Industrial Portfolio included in discontinued operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Discontinued Operations
Revenue		$ 1,370	$ 409	$ 3,015
Operating expenses		1,093	317	2,262
Operating income		277	92	753
Interest expense and other, net		(993)	(226)	(2,200)
Gain on debt extinguishment	$ 13,600		13,615	0
Gain on disposition of real estate		7,137		7,137
Net income from discontinued operations		$ 6,421	$ 13,481	$ 5,690

Discontinued Operations - Sum_2

Discontinued Operations - Summary of major components of assets and liabilities held for disposition (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Discontinued Operations
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 - Addit

Discontinued Operations - Additional information (Details) - USD ($)	Jun. 05, 2018	Mar. 31, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Disposition of limited service hotels
Disposal group, including discontinued operation, assets				$ 37,000,000		$ 37,226
Disposal group, including discontinued operation, liabilities				49,600,000		$ 50,704
Gain on disposition of real estate			$ 7,137,000		$ 7,137,000
Gain on debt extinguishment		$ 13,600,000		13,615,000	$ 0
Gulf Coast Industrial Portfolio
Disposition of limited service hotels
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
Disposition of limited service hotels
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
Disposition of limited service hotels
Disposal group, including discontinued operation, assets				13,600,000
Disposal group, including discontinued operation, liabilities				$ 20,700,000
Gain on disposition of real estate			$ 7,100,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transactions
Acquisition fees (capitalized and are reflected in the carrying value of the investment)			$ 1,823	$ 0
Asset management fees (general and administrative costs)	$ 301	$ 427	638	891
Property management fees (property operating expenses)	76	136	155	289
Development fees and leasing commissions	93	42	167	120
Total	$ 470	$ 605	$ 2,783	$ 1,300

Related Party Transactions - Su

Related Party Transactions - Summary of preferred Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Related Party Transaction
Investments in and advances to affiliates, at fair value, gross additions			$ 76,000		$ 100,733
Preferred stock dividend income	$ 2,275	$ 3,407	4,947	$ 7,487
Unfunded investment contribution liabilities	0		$ 0
40 East End Avenue
Related Party Transaction
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	910	910	1,810	1,810
Unfunded investment contribution liabilities	0		$ 0
3002 39th Avenue
Related Party Transaction
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	0	303	140	603
Unfunded investment contribution liabilities	0		$ 0
485 7th Avenue
Related Party Transaction
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	70		1,095
Unfunded investment contribution liabilities	0		$ 0
East 11th Street
Related Party Transaction
Preferred stock, dividend rate, percentage			12.00%
Investments in and advances to affiliates, at fair value, gross additions			$ 26,000		43,000
Preferred stock dividend income	807	1,726	1,907	3,207
Unfunded investment contribution liabilities	0		$ 0
Miami Moxy
Related Party Transaction
Preferred stock, dividend rate, percentage			12.00%
Investments in and advances to affiliates, at fair value, gross additions			$ 20,000		$ 17,733
Preferred stock dividend income	558	$ 398	1,090	$ 772
Unfunded investment contribution liabilities	$ 0		$ 0

Related Party Transactions - Ad

Related Party Transactions - Additional information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 06, 2004	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Investments in and Advances to Affiliates
Dividends, cash		$ 4,026	$ 4,299	$ 8,122	$ 8,569
Preferred units, preferred partners' capital accounts		30,000		30,000
Sale of stock, consideration received on transaction	$ 30,000			76,000		$ 100,700
Unfunded investment contribution liabilities		0		0
SLP Units
Investments in and Advances to Affiliates
Dividends, cash		500	$ 500	500	$ 500
East 11th Street
Investments in and Advances to Affiliates
Redemption of preferred investments				17,000
Unfunded investment contribution liabilities		0		0
3002 39th Avenue
Investments in and Advances to Affiliates
Redemption of preferred investments				10,000
Unfunded investment contribution liabilities		0		0
Miami Moxy
Investments in and Advances to Affiliates
Additional investments in and advances to affiliates at fair value gross additions				2,300
Unfunded investment contribution liabilities		$ 0		$ 0

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Carrying Amount	$ 155,281	$ 119,980
Secured Debt
Carrying Amount	155,300	120,000
Estimated Fair Value	$ 157,800	$ 119,800

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Aug. 06, 2019	Jul. 15, 2019	Jun. 30, 2019	Apr. 19, 2019	Dec. 06, 2018
Subsequent Event
Share price				$ 7
Acquisition fees and expenses percentage of purchase price			2.75%		2.75%
Subsequent Event
Subsequent Event
Shares issued from distribution reinvestment program (in shares)		7,000
Dividend reinvestment plan share discounted price		$ 11.23
Dividends declared amount per share	$ 0.175
Dividends declared amount per share, annual distribution	$ 0.70
Annualized Distribution Rate	7.00%
Share price	$ 10
Business combination, consideration transferred		$ 4
Minimum percentage of taxable income required to be distributed	90.00%