Cover
Cover - shares shares in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-52610 | |
Entity Registrant Name | LIGHTSTONE VALUE PLUS REIT I, INC. | |
Entity Central Index Key | 0001296884 | |
Entity Tax Identification Number | 20-1237795 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (732) | |
Local Phone Number | 367-0129 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,700 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Investment property: | ||
Land and improvements | $ 95,788 | $ 96,074 |
Building and improvements | 173,236 | 168,518 |
Furniture and fixtures | 17,086 | 17,184 |
Construction in progress | 1,248 | 22 |
Gross investment property | 287,358 | 281,798 |
Less: accumulated depreciation | (19,067) | (15,728) |
Net investment property | 268,291 | 266,070 |
Development project | 95,714 | 93,614 |
Investments in related parties | 738 | 6,898 |
Investment in unconsolidated affiliated entity | 17,447 | 19,794 |
Cash and cash equivalents | 11,559 | 12,211 |
Marketable securities | 43,402 | 45,924 |
Notes receivable, net | 34,918 | 48,059 |
Restricted cash | 4,951 | 10,372 |
Other assets | 9,213 | 6,952 |
Total Assets | 486,233 | 509,894 |
Liabilities and Stockholders’ Equity | ||
Mortgages payable, net | 258,114 | 260,579 |
Accounts payable, accrued expenses and other liabilities | 17,185 | 18,716 |
Distributions payable | 3,807 | 3,825 |
Total Liabilities | 279,106 | 283,120 |
Company’s Stockholders’ Equity: | ||
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value; 60.0 million shares authorized, 21.7 million and 21.8 million shares issued and outstanding, respectively | 217 | 218 |
Additional paid-in-capital | 163,045 | 164,331 |
Accumulated other comprehensive loss | (159) | |
Accumulated surplus | 33,631 | 50,051 |
Total Company’s stockholders’ equity | 196,893 | 214,441 |
Noncontrolling interests | 10,234 | 12,333 |
Total Stockholders’ Equity | 207,127 | 226,774 |
Total Liabilities and Stockholders’ Equity | $ 486,233 | $ 509,894 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 10,000 | 10,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000 | 60,000 |
Common stock, shares issued | 21,700 | 21,800 |
Common stock, shares outstanding | 21,700 | 21,800 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 15,480 | $ 2,363 | $ 25,437 | $ 4,814 |
Expenses: | ||||
Property operating expenses | 779 | 1,414 | 1,467 | 2,393 |
Hotel operating expenses | 9,058 | 16,661 | ||
Real estate taxes | 124 | 62 | 216 | 124 |
General and administrative costs | 952 | 598 | 1,964 | 1,172 |
Pre-opening costs | (32) | 331 | 16 | 354 |
Depreciation and amortization | 1,683 | 649 | 3,351 | 1,498 |
Total expenses | 12,564 | 3,054 | 23,675 | 5,541 |
Interest and dividend income | 1,824 | 2,117 | 4,120 | 4,392 |
Interest expense | (6,916) | (363) | (12,161) | (750) |
Gain on disposition of real estate | 49 | 1,121 | 49 | |
(Loss)/gain on sale of marketable securities | (179) | (359) | 1,160 | |
Unrealized gain/(loss) on marketable equity securities | 1,052 | (9,766) | 501 | (18,774) |
Mark to market adjustments on derivative financial instruments | 38 | 378 | (370) | 1,242 |
Loss from investment in unconsolidated affiliated real estate entity | (1,140) | (2,360) | ||
Other income/(expense), net | 30 | 28 | (12) | |
Net loss | (2,196) | (8,455) | (7,718) | (13,420) |
Less: net income attributable to noncontrolling interests | (541) | (228) | (1,075) | (600) |
Net loss attributable to Company’s common shares | $ (2,737) | $ (8,683) | $ (8,793) | $ (14,020) |
Basic and diluted net loss per Company’s common share: | ||||
Basic loss per share | $ (0.13) | $ (0.40) | $ (0.40) | $ (0.64) |
Diluted loss per share | $ (0.13) | $ (0.40) | $ (0.40) | $ (0.64) |
Weighted average shares outstanding, basic | 21,755 | 21,974 | 21,786 | 22,051 |
Weighted average shares outstanding, diluted | 21,755 | 21,974 | 21,786 | 22,051 |
Rental [Member] | ||||
Revenues: | ||||
Total revenues | $ 2,537 | $ 2,363 | $ 4,950 | $ 4,814 |
Hotel [Member] | ||||
Revenues: | ||||
Total revenues | $ 12,943 | $ 20,487 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net loss | $ (2,196) | $ (8,455) | $ (7,718) | $ (13,420) |
Other comprehensive income/(loss): | ||||
Holding (loss)/gain on available for sale debt securities | (267) | (208) | 1,026 | |
Reclassification adjustment for loss/(gain) included in net loss | 180 | 359 | (1,160) | |
Other comprehensive (loss)/income: | (87) | 151 | (134) | |
Comprehensive loss | (2,196) | (8,542) | (7,567) | (13,554) |
Less: Comprehensive income attributable to noncontrolling interests | (541) | (226) | (1,067) | (597) |
Comprehensive loss attributable to the Company’s common shares | $ (2,737) | $ (8,768) | $ (8,634) | $ (14,151) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings, Unappropriated [Member] | Noncontrolling Interest [Member] | Total | |
Beginning balance, value at Dec. 31, 2021 | $ 222 | $ 168,363 | $ (40) | $ 93,134 | $ 22,546 | $ 284,225 | |
Beginning balance, shares at Dec. 31, 2021 | 22,181 | ||||||
Net loss | (14,020) | 600 | (13,420) | ||||
Other comprehensive income | (131) | (3) | (134) | ||||
Distributions declared | [1] | (7,712) | (7,712) | ||||
Distributions paid to noncontrolling interests | (17,095) | (17,095) | |||||
Contributions received from noncontrolling interests | 21,895 | 21,895 | |||||
Redemption and cancellation of common shares | $ (3) | (3,207) | (3,210) | ||||
Redemption and cancellation of common shares (in shares) | (273) | ||||||
Shares issued from distribution reinvestment program | 167 | 167 | |||||
Shares issued from distribution reinvestment program (in shares) | 15 | ||||||
Ending balance, value at Jun. 30, 2022 | $ 219 | 165,323 | (171) | 71,402 | 27,943 | 264,716 | |
Ending balance, shares at Jun. 30, 2022 | 21,923 | ||||||
Beginning balance, value at Mar. 31, 2022 | $ 221 | 167,519 | (86) | 83,924 | 28,793 | 280,371 | |
Beginning balance, shares at Mar. 31, 2022 | 22,110 | ||||||
Net loss | (8,683) | 228 | (8,455) | ||||
Other comprehensive income | (85) | (2) | (87) | ||||
Distributions declared | [2] | (3,839) | (3,839) | ||||
Distributions paid to noncontrolling interests | (1,076) | (1,076) | |||||
Redemption and cancellation of common shares | $ (2) | (2,279) | (2,281) | ||||
Redemption and cancellation of common shares (in shares) | (194) | ||||||
Shares issued from distribution reinvestment program | 83 | 83 | |||||
Shares issued from distribution reinvestment program (in shares) | 7 | ||||||
Ending balance, value at Jun. 30, 2022 | $ 219 | 165,323 | (171) | 71,402 | 27,943 | 264,716 | |
Ending balance, shares at Jun. 30, 2022 | 21,923 | ||||||
Beginning balance, value at Dec. 31, 2022 | $ 218 | 164,331 | (159) | 50,051 | 12,333 | 226,774 | |
Beginning balance, shares at Dec. 31, 2022 | 21,840 | ||||||
Net loss | (8,793) | 1,075 | (7,718) | ||||
Other comprehensive income | 159 | (8) | 151 | ||||
Distributions declared | [3] | (7,627) | (7,627) | ||||
Distributions paid to noncontrolling interests | (3,166) | (3,166) | |||||
Redemption and cancellation of common shares | $ (1) | (1,453) | (1,454) | ||||
Redemption and cancellation of common shares (in shares) | (119) | ||||||
Shares issued from distribution reinvestment program | 167 | 167 | |||||
Shares issued from distribution reinvestment program (in shares) | 14 | ||||||
Ending balance, value at Jun. 30, 2023 | $ 217 | 163,045 | 33,631 | 10,234 | 207,127 | ||
Ending balance, shares at Jun. 30, 2023 | 21,735 | ||||||
Beginning balance, value at Mar. 31, 2023 | $ 218 | 163,958 | 40,175 | 10,658 | 215,009 | ||
Beginning balance, shares at Mar. 31, 2023 | 21,810 | ||||||
Net loss | (2,737) | 541 | (2,196) | ||||
Other comprehensive income | |||||||
Distributions declared | [4] | (3,807) | (3,807) | ||||
Distributions paid to noncontrolling interests | (965) | (965) | |||||
Redemption and cancellation of common shares | $ (1) | (997) | (998) | ||||
Redemption and cancellation of common shares (in shares) | (82) | ||||||
Shares issued from distribution reinvestment program | 84 | 84 | |||||
Shares issued from distribution reinvestment program (in shares) | 7 | ||||||
Ending balance, value at Jun. 30, 2023 | $ 217 | $ 163,045 | $ 33,631 | $ 10,234 | $ 207,127 | ||
Ending balance, shares at Jun. 30, 2023 | 21,735 | ||||||
[1]Distributions per share were $0.350.[2]Distributions per share were $0.175.[3]Distributions per share were $0.350.[4]Distributions per share were $0.175. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (7,718) | $ (13,420) |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||
Depreciation and amortization | 3,351 | 1,498 |
Gain on disposition of real estate | (1,121) | |
Loss from investment in unconsolidated affiliated real estate entity | 2,360 | |
Mark to market adjustments on derivative financial instruments | 370 | (1,242) |
Unrealized (gain)/loss on marketable equity securities | (501) | 18,774 |
Loss/(gain) on sale of marketable securities | 359 | (1,160) |
Amortization of deferred financing costs | 1,745 | 138 |
Noncash interest income | (859) | (1,764) |
Other non-cash adjustments | (5) | (36) |
Changes in assets and liabilities: | ||
Increase in other assets | (2,506) | (585) |
(Decrease)/increase in accounts payable, accrued expenses and other liabilities | (1,077) | 5,825 |
Increase in due to related parties | 65 | 73 |
Cash (used in)/provided by operating activities | (5,537) | 8,101 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of development property and investment property | (8,599) | (36,398) |
Purchase of marketable securities | (982) | (12,052) |
Proceeds from sale of marketable securities | 3,797 | 8,345 |
Proceeds from disposition of real estate | 1,382 | |
Investment in joint venture | (4) | |
Distributions from joint venture | 163 | 51 |
Proceeds from redemption of preferred investment in related party | 6,000 | 4,000 |
Funding of notes receivable | (300) | (43,970) |
Release of reserves on notes receivable | 300 | |
Proceeds from repayment of notes receivable | 14,000 | 27,090 |
Investment in unconsolidated affiliated real estate entity | (13) | |
Cash provided by/(used in) investing activities | 15,744 | (52,934) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from mortgage financing | 7,816 | 29,262 |
Mortgage principal payments | (11,973) | (691) |
Payment of loan fees and expenses | (25) | (522) |
Redemption and cancellation of common shares | (1,454) | (3,210) |
Contributions received from noncontrolling interests | 21,895 | |
Distributions paid to noncontrolling interests | (3,166) | (17,095) |
Distributions paid to Company’s common stockholders | (7,478) | (7,590) |
Cash (used in)/provided financing activities | (16,280) | 22,049 |
Change in cash, cash equivalents and restricted cash | (6,073) | (22,784) |
Cash, cash equivalents and restricted cash, beginning of year | 22,583 | 42,592 |
Cash, cash equivalents and restricted cash, end of period | 16,510 | 19,808 |
The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: | ||
Cash and cash equivalents | 11,559 | 17,222 |
Restricted cash | 4,951 | 2,586 |
Total cash, cash equivalents and restricted cash | $ 16,510 | $ 19,808 |
Business and Structure
Business and Structure | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Structure | 1. Business and Structure Lightstone Value Plus REIT I, Inc., a Maryland corporation (“Lightstone REIT I”), formed on June 8, 2004, which has elected to be taxed and qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Lightstone REIT I was formed primarily for the purpose of engaging in the business of investing in and owning commercial and residential real estate properties located throughout the United States. Lightstone REIT I is structured as an umbrella partnership real estate investment trust, or UPREIT, and substantially all of its current and future business is and will be conducted through Lightstone Value Plus REIT, L.P. (the “Operating Partnership”), a Delaware limited partnership formed on July 12, 2004. As of June 30, 2023, Lightstone REIT I held a 98% general partnership interest in the its Operating Partnership’s common units (“Common Units”). Lightstone REIT I 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 Lightstone REIT I, its Operating Partnership or the Company as required by the context in which such pronoun is used. Through its Operating Partnership, the Company owns, operates and develops commercial and residential properties and makes real estate-related investments, principally in the United States. The Company’s real estate investments are held by it alone or jointly with other parties. The Company also originates or acquires mortgage loans secured by real estate. Although most of its investments are of these types, the Company may invest in whatever types of real estate or real estate-related investments that it believes is in its best interests. Since its inception, the Company has owned and managed various commercial and residential properties located throughout the United States. The Company evaluates all of its real estate investments as one operating segment. As of June 30, 2023, the Company (i) has ownership interests in and consolidates two operating properties, one development property and certain land holdings and (ii) has ownership interests through two unconsolidated joint ventures in nine multifamily residential properties and seven commercial hotel properties. Additionally, as of June 30, 2023, the Company has one other real estate-related investment consisting of a promissory loan it originated, through a joint venture with a related party, to an unaffiliated third-party borrower. With respect to its consolidated operating properties, the Company wholly owns a 296-room Marriott Moxy hotel (the “Lower East Side Moxy Hotel”), located in the Lower East Side neighborhood in the Manhattan borough of New York City, which it developed, constructed and opened on October 27, 2022 and has a 59.2% With respect to its consolidated development property, the Company wholly owns land parcels located at 355 & 399 Exterior Street in the Mott Haven neighborhood in the Bronx borough of New York City, on which it plans, subject to economic and local market conditions and regulations, to construct a proposed mixed-use multifamily residential and commercial retail project (the “Exterior Street Project”). The Company also wholly owns and consolidates certain adjacent land parcels (the “St. Augustine Land Holdings) located in St. Augustine, Florida. Additionally, the Company holds a 19.0% joint venture ownership interest in Columbus Portfolio Member LLC (the “Columbus Joint Venture”), which owns nine multifamily residential properties, which its accounts for using the equity method of accounting and it holds a 2.5% The Company’s advisor is Lightstone Value Plus REIT, LLC (the “Advisor”), which is majority owned by David Lichtenstein. On July 6, 2004, the Advisor contributed $ 2 200 20,000 200 10.00 30.0 100,000 The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Company’s Advisor has affiliates which may manage and develop certain of its properties. However, the Company also contracts with other unaffiliated third-party property managers. The Company’s Common Shares are 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 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. Related Parties The Sponsor, Advisor and its affiliates, and Lightstone SLP, LLC are related parties of the Company as well as other public REITs also sponsored and/or advised by these entities. Certain of these entities are entitled to compensation for services related to the investment, management and disposition of the Company’s assets. The compensation is based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements. Noncontrolling Interests Partners of Operating Partnership On July 6, 2004, the Advisor contributed $2 to the Operating Partnership in exchange for 200 Common Units in the Operating Partnership. The Advisor has the right to convert the Common Units into cash or, at the option of the Company, an equal number of shares of Common Shares. In connection with the Offering, Lightstone SLP, LLC, an affiliate of the Advisor, purchased an aggregate of $ 30.0 99% In addition, an aggregate 497,209 Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests in consolidated subsidiaries include the joint venture ownership interests held by either the Sponsor or its affiliates in (i) Pro-DFJV Holdings LLC (“PRO”), (ii) the 2nd Street Joint Venture and (iii) other entities that have originated promissory notes to unaffiliated third parties (see Note 6). PRO’s holdings principally consist of Marco OP Units and Marco II OP Units (see Note 7). The 2nd Street Joint Venture owns Gantry Park Landing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT I and its Operating Partnership and its subsidiaries (over which Lightstone REIT I 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 accounting principles generally accepted in the United States of America (“GAAP”), and if deemed to be variable interest entities (“VIE”) in which the Company is 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 the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest but have significant influence, the Company accounts for the investment using the equity method of accounting. There are judgments and estimates involved in determining if an entity in which the Company has made an investment is a VIE and, if so, whether the Company is 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, 2022. 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 REIT I, Inc. and its Subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 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, 2022 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. Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2005. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT, it may still be subject to some U.S. federal, state and local taxes on our income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities. As of June 30, 2023 and December 31, 2022, the Company had no Revenues The following table represents the total hotel revenues from hotel operations on a disaggregated basis: Schedule of revenues on a disaggregated For the For the Hotel revenues Room $ 6,705 $ 9,700 Food, beverage and other 6,238 10,787 Total hotel revenues $ 12,943 $ 20,487 Land Parcel Sale During the first quarter of 2023, the Company completed the disposition of a parcel of land, which was part of its St. Augustine Land Holdings, to an unrelated third party for a contractual sales price of $ 1.5 1.1 Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses for financial instruments measured at amortized cost. For trade receivables, other receivables, and held-to-maturity debt instruments, entities are required to use a new forward looking expected loss model that generally will result in an earlier recognition of allowances for losses. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. The update was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted the new standard, as of January 1, 2023, and it did not have a material impact on the consolidated financial statements. Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. Current Environment The Company’s operating results are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions, may adversely affect the Company’s results of operations and financial performance. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. Supplemental Cash Flow Information Supplemental cash flow information for the periods indicated is as follows: Summary of supplemental cash flow information For the 2023 2022 Cash paid for interest $ 11,856 $ 5,395 Distributions declared but not paid $ 3,807 $ 3,840 Capital expenditures for investment property in accounts payable, accrued expenses and other liabilities $ 1,208 $ 3,450 Amortization of deferred financing costs included in development projects $ - $ 1,253 Holding loss/gain on marketable securities $ 151 $ 134 Value of shares issued from distribution reinvestment program $ 167 $ 167 Proceeds from mortgage financing held by related party $ - $ 28,643 |
Development Project - Exterior
Development Project - Exterior Street Project | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Development Project - Exterior Street Project | 3. Development Project - Exterior Street Project In February 2019, the Company, through subsidiaries of the Operating Partnership, acquired two adjacent parcels of land located at 355 and 399 Exterior Street in the Mott Haven neighborhood in the Bronx borough of New York City from unaffiliated third parties for an aggregate purchase price of $ 59.0 million, excluding closing and other acquisition related costs. In September 2021, the Company subsequently acquired an additional adjacent parcel of land at cost from an affiliate of its Advisor for $ 1.0 million in order to achieve certain zoning compliance. On these three land parcels the Company plans, subject to economic and local market conditions and regulations, to construct a proposed mixed-use multifamily residential and commercial retail property (the “Exterior Street Project”). In light of certain economic and local market conditions and regulations, the company decided in the 2 nd 95.7 million and $ 93.6 million of costs related to the development of the Exterior Street Project. During the six months ended June 30, 2023, $ 1.5 million and during the three and six months ended June 30, 2022, $ 0.7 million and $ 1.2 million, respectively, of interest was capitalized to the Exterior Street Project, which is classified as development project on the consolidated balance sheets. |
Lower East Side Moxy Hotel
Lower East Side Moxy Hotel | 6 Months Ended |
Jun. 30, 2023 | |
Lower East Side Moxy Hotel | |
Lower East Side Moxy Hotel | 4. Lower East Side Moxy Hotel In December 2018, the Company, through a subsidiary of the Operating Partnership, acquired three adjacent parcels of land located at 147-151 Bowery, in the Lower East Side neighborhood of the borough of Manhattan in New York City, from unaffiliated third parties for aggregate consideration of $ 56.5 2.4 The Company incurred pre-opening costs of $ 0.3 0.4 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliated Real Estate Entity | 6 Months Ended |
Jun. 30, 2023 | |
Investment In Unconsolidated Affiliated Real Estate Entity | |
Investment in Unconsolidated Affiliated Real Estate Entity | 5. Investment in Unconsolidated Affiliated Real Estate Entity Columbus Joint Venture On November 29, 2022, the Company, CRE Columbus Member (“Converge”), a majority owned subsidiary of Converge Holdings LLC, a reinsurance business owned by the Sponsor, and LEL Columbus Member LLC (the “BVI member”), a wholly owned subsidiary of Lightstone Enterprises Limited (“BVI”), a real estate investment company owned by the Sponsor, entered into a joint venture agreement to form Columbus Portfolio Member LLC (“the Columbus Joint Venture”) for the purpose of acquiring nine multifamily properties (the “Columbus Properties”) located in the area of Columbus, Ohio for a contractual purchase price of $ 465.0 19% 62% On November 29, 2022, the Columbus Joint Venture completed the purchase of the Columbus Properties. The acquisition was funded with $74.3 million of cash and $390.7 million of aggregate proceeds from preferred investments from unrelated third-parties and loans from two financial institutions. In connection with the acquisition and financings, the total cash paid, including closing costs, was $92.3 million and the Company paid $17.5 million representing its 19.0% pro rata share. In connection with the acquisition, the Company also paid the Advisor a separate acquisition fee of $2.4 million, equal to 2.75% of the Company’s pro-rata share of the contractual purchase price which is reflected in the carrying value of the Company’s investment in unconsolidated affiliated real estate entity on the consolidated balance sheets. 13 The Company has determined that the Columbus Joint Venture is a variable interest entity but the Company is not the primary beneficiary. The Company accounts for its ownership interest in the Columbus Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Columbus Joint Venture. All capital contributions and distributions of earnings from the Columbus Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Columbus Joint Venture are made to the members pursuant to the terms of the Columbus Joint Venture’s operating agreement. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of November 29, 2022 with respect to its membership interest of 19.0% in the Columbus Joint Venture. In connection with the closing of the Columbus Properties, the Columbus Joint Venture simultaneously entered into two mortgage loans from financial institutions in the aggregate amount of $300.7 million and received two preferred investments from unaffiliated third parties in the aggregate amount of $90.0 million (collectively, the “Loans”) The Loans are collateralized by the Columbus Properties. The Sponsor (the “Guarantor”) has fully guaranteed the Columbus Joint Venture’s obligation to repay the outstanding balance of the Loans (the “Loan Guarantee”). Each of the joint venture members have agreed to reimburse the Guarantor for their pro rata share of any balance that may become due under the Loan Guarantee, of which the Company’s share is up to 19% of the outstanding balance. The Company has determined that the fair value of the Loan Guarantee is immaterial. Columbus Joint Venture Financial Information The following table represents the condensed statement of operations for the Columbus Joint Venture: Schedule of condensed statement of operations for the Columbus joint venture For the For the Revenues $ 10,496 $ 21,007 Property operating expenses 5,387 10,279 General and administrative income 129 84 Depreciation and amortization 4,773 9,519 Operating income 207 1,125 Interest expense and other, net (6,080 ) (13,286 ) Net loss $ (5,873 ) $ (12,161 ) Company’s share of net loss (19.0%) $ (1,116 ) $ (2,311 ) Additional depreciation and amortization expense (1) (24 ) (49 ) Company’s loss from investment $ (1,140 ) $ (2,360 ) (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Columbus Joint Venture and the amount of the underlying equity in net assets of the Columbus Joint Venture. The following table represents the condensed balance sheet for the Columbus Joint Venture: Schedule of condensed balance sheet for the Columbus joint venture As of As of June 30, December 31, Investment property, net $ 453,335 $ 457,339 Cash and restricted cash 14,356 15,770 Other assets 6,141 10,096 Total assets $ 473,832 $ 483,205 Mortgages and loans payable, net $ 386,648 $ 383,266 Other liabilities 7,861 8,495 Members’ equity 79,323 91,444 Total liabilities and members’ equity $ 473,832 $ 483,205 |
Investments in Related Parties
Investments in Related Parties | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Investments in Related Parties | 6. Investments in Related Parties Preferred Investments The Company previously entered into agreements with various related party entities that provided for it to make preferred contributions pursuant to certain instruments (the “Preferred Investments”) that entitled it to certain prescribed monthly preferred distributions. During the six months ended June 30, 2023, the Company redeemed the remaining $ 6.0 The Preferred Investments are summarized as follows: Schedule of preferred investments Preferred Investment Balance Investment Income (1) Dividend As of As of Three Months Ended Six Months Ended Preferred Investments Rate 2023 2022 2023 2022 2023 2022 40 East End Avenue 12% $ - $ 6,000 $ 75 $ 182 $ 254 $ 362 East 11th Street 12% - - - 230 - 485 Total $ - $ 6,000 $ 75 $ 412 $ 254 $ 847 Note (1) Included in interest and dividend income on the consolidated statements of operations. Hotel Joint Venture The Company has a 2.5% 0.7 0.9 |
Notes Receivable
Notes Receivable | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Notes Receivable | 7. Notes Receivable The Company has formed certain joint ventures (collectively, the “NR Joint Ventures”) between wholly-owned subsidiaries of the Operating Partnership (collectively, the “NR Subsidiaries”) and affiliates of the Sponsor (the “NR Affiliates”) which have originated nonrecourse loans (collectively, the “Joint Venture Promissory Notes”) to unaffiliated third-party borrowers (collectively, the “Joint Venture Borrowers”). The NR Subsidiaries and NR Affiliates may have varying ownership interests in the NR Joint Ventures, however; certain other wholly-owned subsidiaries of the Operating Partnership serve as the manager and are the sole decision-maker for each of the NR Joint Ventures. The Company has determined that the NR Joint Ventures are VIEs and the NR Subsidiaries are the primary beneficiaries. Since the NR Subsidiaries are the primary beneficiaries, beginning on the applicable date of formation, the Company has consolidated the operating results and financial condition of the NR Joint Ventures and accounted for the respective ownership interests of the NR Affiliates as noncontrolling interests. The Joint Venture Promissory Notes generally provide for monthly interest at a prescribed variable rate, subject to a floor. In connection with the initial funding of the Joint Venture Promissory Notes, the NR Joint Ventures receive origination fees (ranging from 1.00% 1.50% The Joint Venture Promissory Notes generally have an initial term of one or two years and may provide for additional extension options subject to satisfaction of certain conditions, including the funding of additional Loan Reserves and payment of extension fees. The Joint Venture Promissory Notes are collateralized by either the membership interests of the Joint Venture Borrowers in the borrowing entity or the underlying real property being developed by the Joint Venture Borrower. Origination fees are presented in the consolidated balance sheets as a direct deduction from the carrying value of the Joint Venture Promissory Notes and are amortized into interest income, using a straight-line method that approximates the effective interest method, over the initial term of the Joint Venture Promissory Notes. The Loan Reserves are presented in the consolidated balance sheets as a direct deduction from the carrying value of the Joint Venture Promissory Notes and are applied against the monthly interest due over the term. During the six months ended June 30, 2023, the NR Joint Ventures made aggregate distributions of $ 1.3 21.9 LSC 1543 7th LLC, the NR Joint Venture that originated the Joint Venture Promissory Note (the “LSC 1543 7th LLC Note Receivable”) with a remaining outstanding principal balance of $ 35.0 The following tables summarize the Note Receivable as of the dates indicated: Summary of notes receivable Joint Venture/Lender Company’s Ownership Loan Origination Origination Maturity Contractual Outstanding Reserves Unamortized Origination Fee Carrying Unfunded As of June 30, 2023 LSC 1543 7th LLC 50% $ 49,000 1.00% March 2, 2022 August 31, 2023 SOFR plus 7.00% $ 35,000 $ - $ (82 ) $ 34,918 $ - As of December 31, 2022 LSC 1543 7th LLC 50% $ 49,000 1.00% March 2, 2022 August 31, 2023 SOFR plus 7.00% $ 49,000 $ (614 ) $ (327 ) $ 48,059 $ - The following summarizes the interest earned (included in interest and dividend income on the consolidated statements of operations) for each of the Joint Venture Promissory Notes during the periods indicated: Summarizes the interest earned for each of the joint venture promissory notes For the For the Joint Venture/Lender 2023 2022 2023 2022 LSC 1543 7th LLC $ 1,201 1,038 $ 2,699 $ 1,727 LSC 11640 Mayfield LLC - - - 455 Total $ 1,201 $ 1,038 $ 2,699 $ 2,182 |
Marketable Securities, Derivati
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable | 6 Months Ended |
Jun. 30, 2023 | |
Marketable Securities Derivative Financial Instruments Fair Value Measurements And Notes Payable | |
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable | 8. Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable Marketable Securities The following is a summary of the Company’s available for sale securities: Summary of available for sale securities and other investments As of Adjusted Cost Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity securities Common and Preferred Equity Securities $ 20,421 $ 72 $ (1,254 ) $ 19,239 Marco OP Units and Marco II OP Units 19,227 4,936 - 24,163 $ 39,648 $ 5,008 $ (1,254 ) $ 43,402 As of Adjusted Cost Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity securities Common and Preferred Equity Securities $ 22,993 $ - $ (2,103 ) $ 20,890 Marco OP Units and Marco II OP Units 19,227 5,355 - 24,582 42,220 5,355 (2,103 ) 45,472 Debt securities Corporate Bonds 602 - (150 ) 452 Total $ 42,822 $ 5,355 $ (2,253 ) $ 45,924 As of both June 30, 2023 and December 31, 2022, the Company held an aggregate of 209,243 89,695 115.48 94.92 117.48 Throughout 2022 and continuing into 2023, financial markets have been experiencing increases in interest rates primarily as a result of higher inflation, leading to the lower market prices of the Company equity’s securities, especially those highly sensitive to movements in interest rates, such as REITs and preferred securities. Because of the change in the closing price of Simon Stock and the market price of the Company’s other equity securities, the Company incurred unrealized gains of $ 1.1 0.5 9.8 18.8 Derivative Financial Instruments The Company has entered into two interest rate cap contracts with unrelated financial institutions in order to reduce the effect of interest rate fluctuations or risk of certain real estate investment’s interest expense on its variable rate debt. The Company is exposed to credit risk in the event of non-performance by the counterparty to these financial instruments. Management believes the risk of loss due to non-performance to be minimal. The Company is accounting for the interest rate cap contracts as economic hedges, marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the interest rate cap contracts on the consolidated statements of operations. For the three and six months ended June 30, 2023, the Company recorded an unrealized gain of $ 38 0.4 0.4 1.2 The two interest rate cap contracts have notional amounts of $ 90.0 40.0 June 30, 2023 3.00% 2,880 3,279 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 and derivative financial instruments measured at fair value on a recurring basis as of the dates indicated are as follows: Schedule of marketable securities measured at fair value on a recurring basis Fair Value Measurement Using As of June 30, 2023 Level 1 Level 2 Level 3 Total Marketable Securities Common and Preferred Equity Securities $ 1,119 $ 18,120 $ - $ 19,239 Marco OP and OP II Units - 24,163 - 24,163 Total $ 1,119 $ 42,283 $ - $ 43,402 Derivative Financial Instruments Interest Rate Cap Contracts $ - $ 2,880 $ - $ 2,880 Fair Value Measurement Using As of December 31, 2022 Level 1 Level 2 Level 3 Total Marketable Securities Common and Preferred Equity Securities $ 1,138 $ 19,752 $ - $ 20,890 Marco OP and OP II Units - 24,582 - 24,582 Corporate Bonds - 452 - 452 Total $ 1,138 $ 44,786 $ - $ 45,924 Derivative Financial Instruments Interest Rate Cap Contracts $ - $ 3,279 $ - $ 3,279 The fair values of the Company’s common equity securities are measured using readily quoted prices for these investments which are listed for trade on active markets. The fair values of the Company’s preferred equity securities and corporate bonds are measured using readily available quoted prices for these securities; however, the markets for these securities are not active. Additionally, as noted and disclosed above, the Company’s Marco OP and OP II units are both 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 OP II units. 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% Line of Credit The Company has a non-revolving credit facility (the “Line of Credit”) that provides for borrowings up to a maximum of $ 20.0 LIBOR plus 1.35% 209,243 13.3 |
Mortgages Payable, Net
Mortgages Payable, Net | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Mortgages Payable, Net | 9. Mortgages Payable, Net Mortgages payable, net consists of the following: Schedule of mortgages payable Property/Investment Interest Weighted Maturity Amount Due As of As of Gantry Park Landing 4.48% 4.48% November 2024 $ 65,317 $ 67,428 $ 68,151 Lower East Side Moxy Hotel Senior LIBOR + 7.50% 10.40% June 2024 90,000 90,000 82,811 Lower East Side Moxy Hotel Junior LIBOR + 13.50% 16.72% June 2024 40,000 40,000 40,000 Exterior Street Project SOFR + 2.60% 7.45% November 2023 35,000 35,000 35,000 Exterior Street Project Supplemental SOFR + 2.60% 7.45% November 2023 7,000 7,000 7,000 LSC 1543 7th LLC Note Receivable SOFR + 3.50% 8.50% December 2023 21,529 21,529 32,152 Total mortgages payable 9.21% $ 258,846 260,957 265,114 Less: Deferred financing costs (2,843 ) (4,535 ) Total mortgages payable, net $ 258,114 $ 260,579 One-month LIBOR as of June 30, 2023 and December 31, 2022 was 5.22% 4.39% 5.14% 4.36% LSC 1543 7th LLC Loan On June 30, 2022, LSC 1543 7th LLC obtained a loan of up to $ 33.1 SOFR + 3.50% December 30, 2023 14.0 11.3 21.5 Moxy Construction Loans On June 3, 2021, the Company, through a wholly owned subsidiary, closed on a recourse construction loan facility (the “Moxy Senior Loan”) providing for up to $ 90.0 35.6 LIBOR plus 7.50% June 3, 2024 90.0 4.7 Simultaneously on June 3, 2021, the Company, through the same wholly owned subsidiary, also entered into a mezzanine construction loan facility (the “Moxy Junior Loan” and together with the Moxy Senior Loan, the “Moxy Construction Loans”) providing for up to $ 40.0 LIBOR plus 13.50% 7.0 In connection with the Moxy Construction Loans, the Company provided certain completion and carry cost guarantees. Additionally, the Moxy Construction Loans provide for the lenders to trap excess cash flow, if any, generated from the operations of the Lower East Side Moxy Hotel until it achieves certain prescribed financial ratios for two consecutive quarters. To-date, the Lower East Side Moxy Hotel, which opened in October 2022 and therefore, is still in its ramp-up period, has not achieved any of the prescribed financial ratios. The Company has also entered into two interest rate cap agreements with notional amounts of $ 90.0 40.0 LIBOR through June 30, 2023 and its replacement rate thereafter is capped at 3.00% 5.3 1.1 Exterior Street Loans On March 29, 2019, the Company obtained a $ 35.0 LIBOR plus 2.25% November 24, 2022 7.0 LIBOR plus 2.50% 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, 2023: Scheduled of contractually principal maturities during next five years 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ 64,260 $ 196,697 $ - $ - $ - $ - $ 260,957 Less: Deferred financing costs (2,843 ) Total principal maturities, net $ 258,114 Certain of the Company’s debt agreements require the maintenance of certain ratios, including debt service coverage. As of June 30, 2023, the Company was in compliance with all of its financial debt covenants; except for the those for the Moxy Construction Loans, as discussed above. Additionally, certain of our mortgages payable also contain clauses providing for prepayment penalties. Debt Maturities The Exterior Street Loans (outstanding aggregate principal balance of $ 42.0 The LSC 1543 7th LLC Loan (outstanding principal balance of $21.5 million as of June 30, 2023) is scheduled to initially mature on December 30, 2023, but may be further extended through December 30, 2024 and September 20, 2025, through the exercise of two extension options. The Company currently intends to repay the LSC 1543 7th LLC Loan with the proceeds from the expected repayment of the LSC 1543 7th LLC Note Receivable, which has an outstanding principal balance of $35.0 million, or to seek to further extend the LSC 1543 7th LLC Loan pursuant to its first extension option on or before its scheduled maturity date. The Moxy Construction Loans (outstanding aggregate principal balance of $130.0 million as of June 30, 2023) mature on June 3, 2024. The Company currently intends to refinance the Moxy Construction Loans on or before their initial maturity dates of June 3, 2024; however, there can be no assurances that it will be successful in such endeavors. If the Company is unable to refinance the Moxy Construction Loans on or before their initial maturity date, it will then seek to exercise the first of their two one-year extension options. However, if the Company is unable to extend or refinance its maturing indebtedness at favorable terms, it will look to repay the then outstanding principal balances 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 from the date of these consolidated financial statements. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | 10. Equity Distribution on Common Shares On May 10, 2023, the Board of Directors authorized and the Company declared a distribution of $ 0.175 3.8 7,000 11.58 95% 12.19 On August 11, 2023, the Company’s Board of Directors authorized and the Company declared a distribution of $ 0.0875 0.35 3.5% 10.00 Because the quarterly distribution declared by the Board of Directors on the Common Shares for the quarterly period ending on September 30, 2023 does not equal at least an annualized rate of 7.0% assuming a purchase price of $10.00 per share, no distributions were declared on the SLP Units. Any future distributions on the SLP Units will always be subordinated until stockholders receive a stated preferred return. Future distributions, if any, declared will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, operating and interest expenses, the Company’s ability to refinance near-term debt, as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. SRP The Company’s share repurchase program (the “SRP”) may provide its stockholders with limited, interim liquidity by enabling them to sell their shares of common stock back to the Company, subject to restrictions. On March 25, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions. Effective March 18, 2021 and May 14, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death and hardship, respectively, and set the price for all such purchases to our current estimated net asset value per share of common stock (“NAV per Share”), as determined by the Board of Directors and reported by the Company from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On March 18, 2022, the Board of Directors approved an increase to the annual threshold for death redemptions from up to 0.5% to 1.0%. At the above noted dates, the Board of Directors established that on an annual basis, the Company would not redeem in excess of 1.0% and 0.5% of the number of shares outstanding as of the end of the preceding year for either death or hardship redemptions, respectively. Additionally, redemption requests generally would be processed on a quarterly basis and would be subject to pro ration if either type of redemption requests exceeded the annual limitation. For the six months ended June 30, 2023, the Company repurchased 119,300 12.19 273,135 11.75 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. Dilutive 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, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions The Company has various agreements, including an advisory agreement, 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. Amounts the Company owes to the Advisor and its affiliated entities are principally for asset management fees, and are classified as due to related parties on the consolidated balance sheets. The Company, pursuant to the related party arrangements, has recorded the following amounts for the periods indicated: Summary of Amount recorded in pursuant to related party arrangement For the For the June 30, June 30, June 30, June 30, Asset management fees (general and administrative costs) $ 551 $ 171 $ 1,107 $ 325 Property management fees (property operating expenses) 75 74 147 155 Development fees and cost reimbursement (1) 235 733 641 1,617 Total $ 861 $ 978 $ 1,895 $ 2,097 (1) Development fees and the reimbursement of development-related costs that the Company pays to the Advisor and its affiliates are capitalized and are included in the carrying value of the associated development project which are classified as development projects on the consolidated balance sheets until construction is substantially completed and the associated assets are placed in service. As of December 31, 2022, the Company owed the Advisor and its affiliated $0.7 million, for development fees, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. See Notes 3, 4 and 5 for other related party transactions. The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission. In connection with the Company’s Offering, Lightstone SLP, LLC purchased an aggregate of $ 30.0 During both the three and six months ended June 30, 2023 and 2022, distributions of $ 0.5 1.0 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 12. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, other assets, accounts payable, accrued expenses and other liabilities, due to related parties, tenant allowances and deposits payable and deferred rental income approximate their fair values because of the short maturity of these instruments. The carrying amounts of the notes receivable approximate their fair values because the interest rates are variable and reflective of market rates. The carrying amount and estimated fair value (in millions) of the Company’s mortgage debt is summarized as follows: Schedule of mortgage debt As of June 30, As of Carrying Estimated Carrying Estimated Mortgages payable $ 261.0 $ 260.5 $ 265.1 $ 265.1 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, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. Commitments and Contingencies Hotel Franchise Agreement The Lower East Side Moxy Hotel operates pursuant to a 30-year franchise agreement (the “Hotel Franchise Agreement”) with Marriott International, Inc. (“Marriott”). The Hotel Franchise Agreement provides for the Company to pay franchise fees and marketing fund charges equal to certain prescribed percentages of gross room sales, as defined. Additionally, pursuant to the terms of the Hotel Franchise Agreement, the Company received a key money (“Key Money”) payment of $ 4.7 4.6 4.7 Hotel Management Agreements With respect to the Lower East Side Moxy Hotel, the Company has entered into a hotel management agreement, food and beverage operations management agreement and an asset management agreement (collectively, the “Hotel Management Agreements”) with various third-party management companies pursuant to which they provide oversight and management over the operation of the Lower East Side Moxy Hotel and its food and beverage venues and receive payment of certain prescribed management fees, generally based on a percentage of revenues and certain incentives for exceeding targeted earnings thresholds. The management fees are recorded as a component of hotel operating expenses on the consolidated statements of operations. The Hotel Management Agreements have initial terms ranging from 5 to 20 years. Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT I and its Operating Partnership and its subsidiaries (over which Lightstone REIT I 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 accounting principles generally accepted in the United States of America (“GAAP”), and if deemed to be variable interest entities (“VIE”) in which the Company is 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 the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest but have significant influence, the Company accounts for the investment using the equity method of accounting. There are judgments and estimates involved in determining if an entity in which the Company has made an investment is a VIE and, if so, whether the Company is 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, 2022. 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 REIT I, Inc. and its Subsidiaries have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 8 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, 2022 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. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2005. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT, it may still be subject to some U.S. federal, state and local taxes on our income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities. As of June 30, 2023 and December 31, 2022, the Company had no |
Revenues | Revenues The following table represents the total hotel revenues from hotel operations on a disaggregated basis: Schedule of revenues on a disaggregated For the For the Hotel revenues Room $ 6,705 $ 9,700 Food, beverage and other 6,238 10,787 Total hotel revenues $ 12,943 $ 20,487 |
Land Parcel Sale | Land Parcel Sale During the first quarter of 2023, the Company completed the disposition of a parcel of land, which was part of its St. Augustine Land Holdings, to an unrelated third party for a contractual sales price of $ 1.5 1.1 |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses for financial instruments measured at amortized cost. For trade receivables, other receivables, and held-to-maturity debt instruments, entities are required to use a new forward looking expected loss model that generally will result in an earlier recognition of allowances for losses. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. The update was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted the new standard, as of January 1, 2023, and it did not have a material impact on the consolidated financial statements. |
Adverse Developments Affecting the Financial Services Industry and Concentration of Risk | Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. |
Current Environment | Current Environment The Company’s operating results are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions, may adversely affect the Company’s results of operations and financial performance. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for the periods indicated is as follows: Summary of supplemental cash flow information For the 2023 2022 Cash paid for interest $ 11,856 $ 5,395 Distributions declared but not paid $ 3,807 $ 3,840 Capital expenditures for investment property in accounts payable, accrued expenses and other liabilities $ 1,208 $ 3,450 Amortization of deferred financing costs included in development projects $ - $ 1,253 Holding loss/gain on marketable securities $ 151 $ 134 Value of shares issued from distribution reinvestment program $ 167 $ 167 Proceeds from mortgage financing held by related party $ - $ 28,643 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of revenues on a disaggregated | Schedule of revenues on a disaggregated For the For the Hotel revenues Room $ 6,705 $ 9,700 Food, beverage and other 6,238 10,787 Total hotel revenues $ 12,943 $ 20,487 |
Summary of supplemental cash flow information | Summary of supplemental cash flow information For the 2023 2022 Cash paid for interest $ 11,856 $ 5,395 Distributions declared but not paid $ 3,807 $ 3,840 Capital expenditures for investment property in accounts payable, accrued expenses and other liabilities $ 1,208 $ 3,450 Amortization of deferred financing costs included in development projects $ - $ 1,253 Holding loss/gain on marketable securities $ 151 $ 134 Value of shares issued from distribution reinvestment program $ 167 $ 167 Proceeds from mortgage financing held by related party $ - $ 28,643 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliated Real Estate Entity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investment In Unconsolidated Affiliated Real Estate Entity | |
Schedule of condensed statement of operations for the Columbus joint venture | Schedule of condensed statement of operations for the Columbus joint venture For the For the Revenues $ 10,496 $ 21,007 Property operating expenses 5,387 10,279 General and administrative income 129 84 Depreciation and amortization 4,773 9,519 Operating income 207 1,125 Interest expense and other, net (6,080 ) (13,286 ) Net loss $ (5,873 ) $ (12,161 ) Company’s share of net loss (19.0%) $ (1,116 ) $ (2,311 ) Additional depreciation and amortization expense (1) (24 ) (49 ) Company’s loss from investment $ (1,140 ) $ (2,360 ) (1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Columbus Joint Venture and the amount of the underlying equity in net assets of the Columbus Joint Venture. |
Schedule of condensed balance sheet for the Columbus joint venture | Schedule of condensed balance sheet for the Columbus joint venture As of As of June 30, December 31, Investment property, net $ 453,335 $ 457,339 Cash and restricted cash 14,356 15,770 Other assets 6,141 10,096 Total assets $ 473,832 $ 483,205 Mortgages and loans payable, net $ 386,648 $ 383,266 Other liabilities 7,861 8,495 Members’ equity 79,323 91,444 Total liabilities and members’ equity $ 473,832 $ 483,205 |
Investments in Related Parties
Investments in Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of preferred investments | Schedule of preferred investments Preferred Investment Balance Investment Income (1) Dividend As of As of Three Months Ended Six Months Ended Preferred Investments Rate 2023 2022 2023 2022 2023 2022 40 East End Avenue 12% $ - $ 6,000 $ 75 $ 182 $ 254 $ 362 East 11th Street 12% - - - 230 - 485 Total $ - $ 6,000 $ 75 $ 412 $ 254 $ 847 Note (1) Included in interest and dividend income on the consolidated statements of operations. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Summary of notes receivable | Summary of notes receivable Joint Venture/Lender Company’s Ownership Loan Origination Origination Maturity Contractual Outstanding Reserves Unamortized Origination Fee Carrying Unfunded As of June 30, 2023 LSC 1543 7th LLC 50% $ 49,000 1.00% March 2, 2022 August 31, 2023 SOFR plus 7.00% $ 35,000 $ - $ (82 ) $ 34,918 $ - As of December 31, 2022 LSC 1543 7th LLC 50% $ 49,000 1.00% March 2, 2022 August 31, 2023 SOFR plus 7.00% $ 49,000 $ (614 ) $ (327 ) $ 48,059 $ - |
Summarizes the interest earned for each of the joint venture promissory notes | Summarizes the interest earned for each of the joint venture promissory notes For the For the Joint Venture/Lender 2023 2022 2023 2022 LSC 1543 7th LLC $ 1,201 1,038 $ 2,699 $ 1,727 LSC 11640 Mayfield LLC - - - 455 Total $ 1,201 $ 1,038 $ 2,699 $ 2,182 |
Marketable Securities, Deriva_2
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Marketable Securities Derivative Financial Instruments Fair Value Measurements And Notes Payable | |
Summary of available for sale securities and other investments | Summary of available for sale securities and other investments As of Adjusted Cost Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity securities Common and Preferred Equity Securities $ 20,421 $ 72 $ (1,254 ) $ 19,239 Marco OP Units and Marco II OP Units 19,227 4,936 - 24,163 $ 39,648 $ 5,008 $ (1,254 ) $ 43,402 As of Adjusted Cost Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity securities Common and Preferred Equity Securities $ 22,993 $ - $ (2,103 ) $ 20,890 Marco OP Units and Marco II OP Units 19,227 5,355 - 24,582 42,220 5,355 (2,103 ) 45,472 Debt securities Corporate Bonds 602 - (150 ) 452 Total $ 42,822 $ 5,355 $ (2,253 ) $ 45,924 |
Schedule of marketable securities measured at fair value on a recurring basis | Schedule of marketable securities measured at fair value on a recurring basis Fair Value Measurement Using As of June 30, 2023 Level 1 Level 2 Level 3 Total Marketable Securities Common and Preferred Equity Securities $ 1,119 $ 18,120 $ - $ 19,239 Marco OP and OP II Units - 24,163 - 24,163 Total $ 1,119 $ 42,283 $ - $ 43,402 Derivative Financial Instruments Interest Rate Cap Contracts $ - $ 2,880 $ - $ 2,880 Fair Value Measurement Using As of December 31, 2022 Level 1 Level 2 Level 3 Total Marketable Securities Common and Preferred Equity Securities $ 1,138 $ 19,752 $ - $ 20,890 Marco OP and OP II Units - 24,582 - 24,582 Corporate Bonds - 452 - 452 Total $ 1,138 $ 44,786 $ - $ 45,924 Derivative Financial Instruments Interest Rate Cap Contracts $ - $ 3,279 $ - $ 3,279 |
Mortgages Payable, Net (Tables)
Mortgages Payable, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of mortgages payable | Schedule of mortgages payable Property/Investment Interest Weighted Maturity Amount Due As of As of Gantry Park Landing 4.48% 4.48% November 2024 $ 65,317 $ 67,428 $ 68,151 Lower East Side Moxy Hotel Senior LIBOR + 7.50% 10.40% June 2024 90,000 90,000 82,811 Lower East Side Moxy Hotel Junior LIBOR + 13.50% 16.72% June 2024 40,000 40,000 40,000 Exterior Street Project SOFR + 2.60% 7.45% November 2023 35,000 35,000 35,000 Exterior Street Project Supplemental SOFR + 2.60% 7.45% November 2023 7,000 7,000 7,000 LSC 1543 7th LLC Note Receivable SOFR + 3.50% 8.50% December 2023 21,529 21,529 32,152 Total mortgages payable 9.21% $ 258,846 260,957 265,114 Less: Deferred financing costs (2,843 ) (4,535 ) Total mortgages payable, net $ 258,114 $ 260,579 |
Scheduled of contractually principal maturities during next five years | Scheduled of contractually principal maturities during next five years 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ 64,260 $ 196,697 $ - $ - $ - $ - $ 260,957 Less: Deferred financing costs (2,843 ) Total principal maturities, net $ 258,114 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Summary of Amount recorded in pursuant to related party arrangement | Summary of Amount recorded in pursuant to related party arrangement For the For the June 30, June 30, June 30, June 30, Asset management fees (general and administrative costs) $ 551 $ 171 $ 1,107 $ 325 Property management fees (property operating expenses) 75 74 147 155 Development fees and cost reimbursement (1) 235 733 641 1,617 Total $ 861 $ 978 $ 1,895 $ 2,097 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Investments, All Other Investments [Abstract] | |
Schedule of mortgage debt | Schedule of mortgage debt As of June 30, As of Carrying Estimated Carrying Estimated Mortgages payable $ 261.0 $ 260.5 $ 265.1 $ 265.1 |
Business and Structure (Details
Business and Structure (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jul. 06, 2004 | Jun. 30, 2023 | Dec. 31, 2009 | Dec. 31, 2008 | Jun. 30, 2022 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Cash contributed for units | $ 2 | ||||
Partners units acquired | 200 | ||||
Shares issued, price per share | $ 12.19 | $ 11.75 | |||
Issuance of common units, shares | 497,209 | 497,209 | |||
Lightstone Value Plus REIT [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Number of common shares held | 20,000 | ||||
Proceeds from issue of shares | $ 200 | ||||
Shares issued, price per share | $ 10 | ||||
Lightstone SLP LLC [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Aggregate SLP units owned in operating partnership | $ 30,000 | ||||
Purchase cost per SLP unit of operating partnership | $ 100,000 | ||||
Aggregate SLP units purchased in operating partnership | $ 30,000 | ||||
Beneficial ownership interest (as a percent) | 99% | ||||
Lightstone Value Plus REIT [Member] | Wholly Owned Properties [Member] | Industrial Properties [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
General partner ownership interest | 59.20% | ||||
Lightstone Value Plus REIT [Member] | Wholly Owned Properties [Member] | Seven Hotel Properties [Member] | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
General partner ownership interest | 2.50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Product Information [Line Items] | ||||
Revenues | $ 15,480 | $ 2,363 | $ 25,437 | $ 4,814 |
Room [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 6,705 | 9,700 | ||
Food Beverage And Other [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 6,238 | 10,787 | ||
Hotel [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 12,943 | $ 20,487 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||||
Cash paid for interest | $ 11,856 | $ 5,395 | ||
Distributions declared but not paid | 3,807 | 3,840 | ||
Capital expenditures for investment property in accounts payable, accrued expenses and other liabilities | 1,208 | 3,450 | ||
Amortization of deferred financing costs included in development projects | 1,253 | |||
Holding loss/gain on marketable securities | 151 | 134 | ||
Value of shares issued from distribution reinvestment program | $ 84 | $ 83 | 167 | 167 |
Proceeds from mortgage financing held by related party | $ 28,643 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Uncertain income tax positions | $ 0 | $ 0 |
Sales Contract Price | 1,500 | |
Gain on disposition of real estate | $ 1,100 |
Development Project - Exterio_2
Development Project - Exterior Street Project (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2021 | Feb. 28, 2019 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Affiliate Costs | $ 1,000 | |||||
Exterior Street Project [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Construction in Progress, Gross | $ 95,700 | $ 93,600 | ||||
Interest Costs Capitalized | $ 700 | $ 1,500 | $ 1,200 | |||
Borden Realty Corp And 399 Exterior Street Associates Llc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Consideration Transferred | $ 59,000 |
Lower East Side Moxy Hotel (Det
Lower East Side Moxy Hotel (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2018 | Jun. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Unaffiliated amount | $ 2,400 | |||
Lower East Side Moxy Hotel [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-opening costs | $ 300 | $ 400 | ||
Bowery Land [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Business combination, consideration transferred | $ 56,500 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliated Real Estate Entity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Defined Benefit Plan Disclosure [Line Items] | |||||
Revenues | $ 15,480 | $ 2,363 | $ 25,437 | $ 4,814 | |
Property operating expenses | 779 | 1,414 | 1,467 | 2,393 | |
Depreciation and amortization | 1,683 | 649 | 3,351 | 1,498 | |
Net loss | (2,737) | (8,683) | (8,793) | (14,020) | |
Company’s loss from investment | (1,140) | (2,360) | |||
Columbus Joint Venture [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Revenues | 10,496 | 21,007 | |||
Property operating expenses | 5,387 | 10,279 | |||
General and administrative income | 129 | 84 | |||
Depreciation and amortization | 4,773 | 9,519 | |||
Operating income | 207 | 1,125 | |||
Interest expense and other, net | (6,080) | (13,286) | |||
Net loss | (5,873) | (12,161) | |||
Company’s share of net loss (19.0%) | (1,116) | (2,311) | |||
Additional depreciation and amortization expense | [1] | (24) | (49) | ||
Company’s loss from investment | $ (1,140) | $ (2,360) | |||
[1]Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Columbus Joint Venture and the amount of the underlying equity in net assets of the Columbus Joint Venture. |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliated Real Estate Entity (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Investment property, net | $ 268,291 | $ 266,070 | |
Cash and restricted cash | 11,559 | 12,211 | $ 17,222 |
Other assets | 9,213 | 6,952 | |
Total assets | 486,233 | 509,894 | |
Mortgages and loans payable, net | 258,114 | 260,579 | |
Total liabilities and members’ equity | 486,233 | 509,894 | |
Columbus Joint Venture [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Investment property, net | 453,335 | 457,339 | |
Cash and restricted cash | 14,356 | 15,770 | |
Other assets | 6,141 | 10,096 | |
Total assets | 473,832 | 483,205 | |
Mortgages and loans payable, net | 386,648 | 383,266 | |
Other liabilities | 7,861 | 8,495 | |
Members’ equity | 79,323 | 91,444 | |
Total liabilities and members’ equity | $ 473,832 | $ 483,205 |
Investment in Unconsolidated _5
Investment in Unconsolidated Affiliated Real Estate Entity (Details Narrative) $ in Thousands | 1 Months Ended |
Nov. 29, 2022 USD ($) | |
Columbus Joint Venture [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Contractual purchase price | $ 465,000 |
Investments in Unconsolidated Affiliated Real Estate Entity description | Columbus Joint Venture completed the purchase of the Columbus Properties. The acquisition was funded with $74.3 million of cash and $390.7 million of aggregate proceeds from preferred investments from unrelated third-parties and loans from two financial institutions. In connection with the acquisition and financings, the total cash paid, including closing costs, was $92.3 million and the Company paid $17.5 million representing its 19.0% pro rata share. In connection with the acquisition, the Company also paid the Advisor a separate acquisition fee of $2.4 million, equal to 2.75% of the Company’s pro-rata share of the contractual purchase price which is reflected in the carrying value of the Company’s investment in unconsolidated affiliated real estate entity on the consolidated balance sheets. |
Additional capital contributions | $ 13 |
Converge [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Ownership interest | 19% |
B V I [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Ownership interest | 62% |
Investments in Related Partie_2
Investments in Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
40 East End Avenue [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Dividend Rate | 12% | |||||
Preferred Investment Balance | $ 6,000 | |||||
Preferred Stock Investments Income | [1] | $ 75 | $ 182 | $ 254 | $ 362 | |
East 11th Street [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Dividend Rate | 12% | |||||
Preferred Investment Balance | ||||||
Preferred Stock Investments Income | [1] | 230 | 485 | |||
Preferred Investments [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Preferred Investment Balance | $ 6,000 | |||||
Preferred Stock Investments Income | [1] | $ 75 | $ 412 | $ 254 | $ 847 | |
[1]Included in interest and dividend income on the consolidated statements of operations. |
Investments in Related Partie_3
Investments in Related Parties (Details Narrative) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
40 East End Avenue [Member] | ||
Schedule of Investments [Line Items] | ||
Investments in and advances to affiliates, at fair value, gross additions | $ 6,000 | |
Joint Venture [Member] | ||
Schedule of Investments [Line Items] | ||
Equity method investment, ownership percentage | 2.50% | 2.50% |
Investment | $ 700 | $ 900 |
Notes Receivable (Details)
Notes Receivable (Details) - LSC 1543 7th LLC [Member] - Notes Receivable [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Company's Ownership percentage | 50% | 50% |
Original Loan Amount | $ 49,000 | $ 49,000 |
Origination Fee (as a percent) | 1% | 1% |
Origination Date | Mar. 02, 2022 | Mar. 02, 2022 |
Maturity Date | Aug. 31, 2023 | Aug. 31, 2023 |
Contractual Interest Rate | SOFR plus 7.00% (Floor of 7.15%) | SOFR plus 7.00% (Floor of 7.15%) |
Outstanding Principal | $ 35,000 | $ 49,000 |
Reserves | (614) | |
Unamortized Origination Fee | (82) | (327) |
Carrying value | 34,918 | 48,059 |
Unfunded Commitment |
Notes Receivable (Details 1)
Notes Receivable (Details 1) - Notes Receivable [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Interest Income Purchased Receivables | $ 1,201 | $ 1,038 | $ 2,699 | $ 2,182 |
LSC 1543 7th LLC [Member] | ||||
Interest Income Purchased Receivables | 1,201 | 1,038 | 2,699 | 1,727 |
LSC 11640 Mayfield LLC [Member] | ||||
Interest Income Purchased Receivables | $ 455 |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - Notes Receivable [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
LSC 1543 7th LLC [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 35,000 | |
Nr Subsidiaries [Member] | ||
Debt Instrument [Line Items] | ||
Notes receivable, related parties, noncurrent | $ 1,300 | |
Nr Affiliates [Member] | ||
Debt Instrument [Line Items] | ||
Notes receivable, related parties, noncurrent | $ 21,900 | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of origination fee on notes receivables | 1% | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of origination fee on notes receivables | 1.50% |
Marketable Securities, Deriva_3
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Common and Preferred Equity Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, adjusted cost | $ 20,421 | $ 22,993 |
Equity securities, gross unrealized gains | 72 | |
Equity securities, gross unrealized losses | (1,254) | (2,103) |
Equity securities, fair value | 19,239 | 20,890 |
Marco Op Units And Op Two Units [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, adjusted cost | 19,227 | 19,227 |
Equity securities, gross unrealized gains | 4,936 | 5,355 |
Equity securities, gross unrealized losses | ||
Equity securities, fair value | 24,163 | 24,582 |
Equity Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, adjusted cost | 39,648 | 42,220 |
Equity securities, gross unrealized gains | 5,008 | 5,355 |
Equity securities, gross unrealized losses | (1,254) | (2,103) |
Equity securities, fair value | $ 43,402 | 45,472 |
Corporate Bond Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, adjusted cost | 602 | |
Equity securities, gross unrealized gains | ||
Equity securities, gross unrealized losses | (150) | |
Equity securities, fair value | 452 | |
Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Equity securities, adjusted cost | 42,822 | |
Equity securities, gross unrealized gains | 5,355 | |
Equity securities, gross unrealized losses | (2,253) | |
Equity securities, fair value | $ 45,924 |
Marketable Securities, Deriva_4
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | $ 43,402 | $ 45,924 |
Interest Rate Cap Contracts | 2,880 | 3,279 |
Equity Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 19,239 | 20,890 |
Marco Op Units And Op Two Units [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 24,163 | 24,582 |
Corporate Bond Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 452 | |
Fair Value, Inputs, Level 1 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 1,119 | 1,138 |
Interest Rate Cap Contracts | ||
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 1,119 | 1,138 |
Fair Value, Inputs, Level 1 [Member] | Marco Op Units And Op Two Units [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | ||
Fair Value, Inputs, Level 1 [Member] | Corporate Bond Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | ||
Fair Value, Inputs, Level 2 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 42,283 | 44,786 |
Interest Rate Cap Contracts | 2,880 | 3,279 |
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 18,120 | 19,752 |
Fair Value, Inputs, Level 2 [Member] | Marco Op Units And Op Two Units [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 24,163 | 24,582 |
Fair Value, Inputs, Level 2 [Member] | Corporate Bond Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | 452 | |
Fair Value, Inputs, Level 3 [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | ||
Interest Rate Cap Contracts | ||
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | ||
Fair Value, Inputs, Level 3 [Member] | Marco Op Units And Op Two Units [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities | ||
Fair Value, Inputs, Level 3 [Member] | Corporate Bond Securities [Member] | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Available-for-sale Securities |
Marketable Securities, Deriva_5
Marketable Securities, Derivative Financial Instruments, Fair Value Measurements and Notes Payable (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Aug. 11, 2023 | Jul. 15, 2023 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||||
Share price | $ 117.48 | $ 10 | $ 12.19 | ||||
Marketable securities unrealized loss | $ (179) | $ (359) | $ 1,160 | ||||
Marketable debt securities losses | 38,000 | $ 400 | 400 | $ 1,200 | |||
Notional amount | $ 90,000 | $ 90,000 | $ 40,000 | ||||
Derivative maturity date | Jun. 30, 2023 | ||||||
Derivative interest rate | 3% | 3% | |||||
Financial Instruments, Owned, at Fair Value | $ 2,880 | $ 2,880 | $ 3,279 | ||||
Non-revolving credit facility [Member] | |||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||||
Debt instrument, interest rate terms | LIBOR plus 1.35% | ||||||
Borrowing capacity | 20,000 | $ 20,000 | |||||
Shares for collateralized | 209,243 | ||||||
Remaining capacity | $ 13,300 | $ 13,300 | |||||
Margin Loan [Member] | |||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||||
Debt instrument, interest rate terms | LIBOR plus 0.85% | ||||||
Marco Op Units And Op Two Units [Member] | |||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||||
Equity Securities Securities Held During Period | 209,243 | 209,243 | |||||
Share price | $ 115.48 | $ 94.92 | $ 115.48 | $ 94.92 | |||
Marketable securities unrealized loss | $ 1,100 | $ 9,800 | $ 500 | $ 18,800 | |||
PRO [Member] | |||||||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |||||||
Equity Securities Securities Held During Period | 89,695 | 89,695 |
Mortgages Payable, Net (Details
Mortgages Payable, Net (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Real Estate Properties [Line Items] | ||
Weighted average interest rate | 9.21% | |
Amount due at maturity | $ 258,846 | |
Total mortgages payable | 260,957 | $ 265,114 |
Less: Deferred financing costs | (2,843) | (4,535) |
Total mortgages payable, net | $ 258,114 | 260,579 |
Gantry Park Landing [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | 4.48% | |
Weighted average interest rate | 4.48% | |
Maturity date | November 2024 | |
Amount due at maturity | $ 65,317 | |
Total mortgages payable | $ 67,428 | 68,151 |
Lower East Side Moxy Hotel Senior [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | LIBOR + 7.50% (floor of 7.75%) | |
Weighted average interest rate | 10.40% | |
Maturity date | June 2024 | |
Amount due at maturity | $ 90,000 | |
Total mortgages payable | $ 90,000 | 82,811 |
Lower East Side Moxy Hotel Junior [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | LIBOR + 13.50% (floor of 14.00%) | |
Weighted average interest rate | 16.72% | |
Maturity date | June 2024 | |
Amount due at maturity | $ 40,000 | |
Total mortgages payable | $ 40,000 | 40,000 |
Exterior Street Project [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | SOFR + 2.60% | |
Weighted average interest rate | 7.45% | |
Maturity date | November 2023 | |
Amount due at maturity | $ 35,000 | |
Total mortgages payable | $ 35,000 | 35,000 |
Exterior Street Project Supplemental [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | SOFR + 2.60% | |
Weighted average interest rate | 7.45% | |
Maturity date | November 2023 | |
Amount due at maturity | $ 7,000 | |
Total mortgages payable | $ 7,000 | 7,000 |
LSC 1543 7th LLC [Member] | ||
Real Estate Properties [Line Items] | ||
Debt instrument, interest rate terms | SOFR + 3.50% | |
Weighted average interest rate | 8.50% | |
Maturity date | December 2023 | |
Amount due at maturity | $ 21,529 | |
Total mortgages payable | $ 21,529 | $ 32,152 |
Mortgages Payable, Net (Detai_2
Mortgages Payable, Net (Details 1) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2023 | $ 64,260 | |
2024 | 196,697 | |
2025 | ||
2026 | ||
2027 | ||
Thereafter | ||
Total | 260,957 | $ 265,114 |
Less: Deferred financing costs | (2,843) | (4,535) |
Mortgages payable, net | $ 258,114 | $ 260,579 |
Mortgages Payable, Net (Detai_3
Mortgages Payable, Net (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Jun. 03, 2021 | Dec. 21, 2021 | Mar. 29, 2019 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Debt instrument interest london interbank offered rate | 5.22% | 4.39% | ||||
Interest rate | 5.14% | 4.36% | ||||
Debt instrument, collateral amount | $ 90,000 | |||||
Loan fees | $ 5,300 | |||||
Accrued loan | 1,100 | $ 1,100 | ||||
Outstanding principal balance | 260,957 | $ 265,114 | ||||
Moxy Senior Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, description of variable rate basis | LIBOR plus 7.50% | |||||
Debt instrument, maturity date | Jun. 03, 2024 | |||||
At cost | 90,000 | |||||
Lower East Side Moxy Hotel [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral amount | $ 7,000 | |||||
Lower East Side Moxy Hotel [Member] | Moxy Construction Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral amount | $ 4,700 | |||||
Moxy Junior Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, description of variable rate basis | LIBOR plus 13.50% | |||||
At cost | $ 40,000 | |||||
LSC 1543 7th LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, description of variable rate basis | SOFR + 3.50% | |||||
Debt instrument, maturity date | Dec. 30, 2023 | |||||
Proceeds from loan | $ 14,000 | |||||
Repayment of loan | 11,300 | |||||
Moxy Senior Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral amount | $ 35,600 | |||||
LSC 1543 7th LLC [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original Loan Amount | 21,500 | $ 33,100 | ||||
Moxy Construction Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, collateral amount | $ 90,000 | |||||
Moxy Construction Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, description of variable rate basis | LIBOR through June 30, 2023 and its replacement rate thereafter is capped at 3.00% | |||||
Exterior Street Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Original Loan Amount | $ 7,000 | $ 35 | ||||
Debt instrument, description of variable rate basis | LIBOR plus 2.50% | LIBOR plus 2.25% | ||||
Debt instrument, maturity date | Nov. 24, 2022 | |||||
Outstanding principal balance | $ 42,000 |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |||||
Jul. 15, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Aug. 11, 2023 | May 10, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | ||||||
Dividend, per share | $ 0.0875 | $ 0.175 | ||||
Distributions paid | $ 3,800 | |||||
Shares issued from distribution reinvestment program (in shares) | 7,000 | |||||
Dividend reinvestment plan share discounted price | $ 11.58 | $ 0.35 | ||||
Annualized Distribution Rate | 95% | 3.50% | ||||
Share price | $ 12.19 | $ 10 | $ 117.48 | |||
Treasury Stock Acquired, Repurchase Authorization | On March 18, 2022, the Board of Directors approved an increase to the annual threshold for death redemptions from up to 0.5% to 1.0%. | |||||
Number of shares repurchased | 119,300 | 273,135 | ||||
Weighted average price per share | $ 12.19 | $ 11.75 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Related Party Transactions [Abstract] | |||||
Asset management fees (general and administrative costs) | $ 551 | $ 171 | $ 1,107 | $ 325 | |
Property management fees (property operating expenses) | 75 | 74 | 147 | 155 | |
Development fees and cost reimbursement | [1] | 235 | 733 | 641 | 1,617 |
Total | $ 861 | $ 978 | $ 1,895 | $ 2,097 | |
[1]Development fees and the reimbursement of development-related costs that the Company pays to the Advisor and its affiliates are capitalized and are included in the carrying value of the associated development project which are classified as development projects on the consolidated balance sheets until construction is substantially completed and the associated assets are placed in service. As of December 31, 2022, the Company owed the Advisor and its affiliated $0.7 million, for development fees, which is included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. |
Related Party Transactions (D_2
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Payments of dividends | $ 3,166 | $ 17,095 | ||
SLP Units [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payments of dividends | $ 500 | $ 500 | 1,000 | $ 1,000 |
Lightstone SLP LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Aggregate amount | $ 30,000 | $ 30,000 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Investments, All Other Investments [Abstract] | ||
Carrying Amount | $ 261 | $ 265.1 |
Estimated Fair Value | $ 260.5 | $ 265.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Jun. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Unamortized balance | $ 4,700 | $ 4,600 |
Marriott [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Proceeds from related party | $ 4,700 |