Lightstone Value Plus REIT V (LVVP) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2019	Nov. 07, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Registrant Name	Lightstone Value Plus Real Estate Investment Trust V, Inc.
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Central Index Key	0001387061
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		22.5
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment property:
Land and improvements	$ 71,141	$ 46,175
Building and improvements	245,696	194,726
Furniture, fixtures and equipment	6,867	6,285
Gross investment property	323,704	247,186
Less accumulated depreciation	(54,491)	(46,182)
Net investment property	269,213	201,004
Investment in unconsolidated joint venture	0	10,944
Cash and cash equivalents	33,958	29,607
Marketable securities, available for sale	5,432	14,386
Restricted cash	4,570	3,045
Note receivable, net	8,665	0
Prepaid expenses and other assets	2,641	5,471
Total Assets	324,479	264,457
Liabilities and Stockholders' Equity
Notes payable, net	209,647	139,016
Accounts payable and accrued and other liabilities	4,460	3,634
Payables to related parties	16	316
Accrued property tax	3,149	1,670
Total liabilities	217,272	144,636
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, $.0001 par value per share; 50.0 million shares authorized, none issued and outstanding	0	0
Convertible stock, $.0001 par value per share; 1,000 shares authorized, issued and outstanding	0	0
Common stock, $.0001 par value per share; 350.0 million shares authorized, 22.5 million and 23.4 million shares issued and outstanding, respectively	2	2
Additional paid-in-capital	207,170	214,537
Accumulated other comprehensive income/(loss)	51	(217)
Accumulated deficit	(100,567)	(95,295)
Total Company stockholders' equity	106,656	119,027
Noncontrolling interests	551	794
Total Stockholder's Equity	107,207	119,821
Total Liabilities and Stockholders' Equity	$ 324,479	$ 264,457

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Convertible stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Convertible stock, shares authorized (in shares)	1,000	1,000
Convertible Stock Shares Issued (in share)	1,000	1,000
Convertible stock, shares outstanding (in shares)	1,000	1,000
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	350,000,000	350,000,000
Common stock, shares issued (in shares)	22,500,000	23,400,000
Common stock, shares outstanding (in shares)	22,500,000	23,400,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Consolidated Statements of Operations and Comprehensive Loss
Rental revenues	$ 9,575	$ 6,698	$ 27,619	$ 20,010
Expenses
Property operating expenses	3,622	3,043	9,494	8,140
Real estate taxes	1,412	1,078	3,844	3,283
General and administrative	1,514	1,357	4,658	4,169
Depreciation and amortization	3,402	2,366	9,851	7,184
Total operating expenses	9,950	7,844	27,847	22,776
Operating loss	(375)	(1,146)	(228)	(2,766)
Interest expense, net	(2,494)	(1,625)	(6,753)	(4,311)
Interest income	503	219	1,163	533
Gain on sale of real estate and other assets	0	312	0	619
Other income, net	124	90	452	280
Net loss	(2,242)	(2,150)	(5,366)	(5,645)
Net loss attributable to noncontrolling interests	78	160	94	250
Net loss attributable to the Company's shares	$ (2,164)	$ (1,990)	$ (5,272)	$ (5,395)
Weighted average shares outstanding:
Basic and diluted	22,680	24,101	23,058	24,407
Basic and diluted loss per share	$ (0.10)	$ (0.08)	$ (0.23)	$ (0.22)
Comprehensive loss:
Net loss	$ (2,242)	$ (2,150)	$ (5,366)	$ (5,645)
Other comprehensive income/(loss):
Holding gain/(loss) on marketable securities, available for sale	24	7	249	(172)
Reclassification adjustment for loss included in net loss	0	0	54	0
Foreign currency translation loss		(1)	(35)
Total other comprehensive income/(loss)	24	6	268	(172)
Comprehensive loss	(2,218)	(2,144)	(5,098)	(5,817)
Comprehensive loss attributable to noncontrolling interest	78	160	94	250
Comprehensive loss attributable to the Company's shares	$ (2,140)	$ (1,984)	$ (5,004)	$ (5,567)

Consolidated Statement of Stock

Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Convertible Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss)/Income	Accumulated Deficit	Noncontrolling Interest	Total
BALANCE at Dec. 31, 2017	$ 0	$ 2	$ 224,923	$ (27)	$ (90,108)	$ 4,845	$ 139,635
BALANCE (in shares) at Dec. 31, 2017	1	24,647
Net loss	$ 0	$ 0	0	0	(5,395)	(250)	(5,645)
Distributions to noncontrolling interest holders	0	0	0	0	0	(3,419)	(3,419)
Redemption and cancellation of shares	$ 0	$ 0	(7,858)	0	0	0	(7,858)
Redemption and cancellation of shares (in shares)	0	(1,111)
Other comprehensive income (loss):
Holding gain/(loss) on marketable securities, available for sale	$ 0	$ 0	0	(172)	0	0	(172)
Reclassification adjustment for loss included in net loss							0
BALANCE at Sep. 30, 2018	$ 0	$ 2	217,065	(199)	(95,503)	1,176	122,541
BALANCE (in shares) at Sep. 30, 2018	1	23,536
BALANCE at Jun. 30, 2018		$ 2	224,097	(205)	(93,513)	1,343	131,724
BALANCE (in shares) at Jun. 30, 2018	1	24,489
Net loss					(1,990)	(160)	(2,150)
Distributions to noncontrolling interest holders						(7)	(7)
Redemption and cancellation of shares			(7,032)				(7,032)
Redemption and cancellation of shares (in shares)		(953)
Other comprehensive income (loss):
Holding gain/(loss) on marketable securities, available for sale				7			7
Foreign currency translation loss				(1)			(1)
Reclassification adjustment for loss included in net loss							0
BALANCE at Sep. 30, 2018	$ 0	$ 2	217,065	(199)	(95,503)	1,176	122,541
BALANCE (in shares) at Sep. 30, 2018	1	23,536
BALANCE at Dec. 31, 2018	$ 0	$ 2	214,537	(217)	(95,295)	794	119,821
BALANCE (in shares) at Dec. 31, 2018	1	23,432
Net loss	$ 0	$ 0	0	0	(5,272)	(94)	(5,366)
Distributions to noncontrolling interest holders	0	0	0		0	(179)	(179)
Redemption and cancellation of shares	$ 0	$ 0	(7,367)		0	0	(7,367)
Redemption and cancellation of shares (in shares)	0	(932)
Contributions received from noncontrolling interests	$ 0	$ 0	0	0	0	30	30
Other comprehensive income (loss):
Holding gain/(loss) on marketable securities, available for sale	0	0	0	249	0	0	249
Foreign currency translation loss	0	0	0	(35)	0	0	(35)
Reclassification adjustment for loss included in net loss	0	0	0	54	0	0	54
BALANCE at Sep. 30, 2019	$ 0	$ 2	207,170	51	(100,567)	551	107,207
BALANCE (in shares) at Sep. 30, 2019	1	22,500
BALANCE at Jun. 30, 2019		$ 2	209,670	27	(98,403)	649	111,945
BALANCE (in shares) at Jun. 30, 2019	1	22,811
Net loss					(2,164)	(78)	(2,242)
Distributions to noncontrolling interest holders						(17)	(17)
Redemption and cancellation of shares			(2,500)				(2,500)
Redemption and cancellation of shares (in shares)		(311)
Contributions received from noncontrolling interests						(3)	(3)
Other comprehensive income (loss):
Holding gain/(loss) on marketable securities, available for sale				24			24
Reclassification adjustment for loss included in net loss							0
BALANCE at Sep. 30, 2019	$ 0	$ 2	$ 207,170	$ 51	$ (100,567)	$ 551	$ 107,207
BALANCE (in shares) at Sep. 30, 2019	1	22,500

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,366)	$ (5,645)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	9,851	7,184
Amortization of deferred financing fees	464	270
Non-cash interest income	(719)	(619)
Other non-cash adjustments	66	43
Changes in operating assets and liabilities:
Decrease/(increase) in prepaid expenses and other assets	2,843	(1,878)
Increase in accounts payable and accrued and other liabilities and accrued property tax	2,191	2,670
(Decrease)/increase in payables to related parties	(300)	35
Net cash provided by operating activities	9,030	2,060
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(77,971)	(2,347)
Purchases of marketable securities	(2,247)	(15,835)
Proceeds from sale of marketable securities	11,450	775
Funding of note receivable	(7,771)	0
Acquisition fee paid on note receivable	(175)	0
Proceeds from disposition of investment in unconsolidated joint venture	10,944	0
Cash used in investing activities	(65,770)	(17,407)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	72,214	61,374
Payments on notes payable	(619)	(33,898)
Payment of loan fees and expenses	(1,428)	(1,430)
Redemptions of common stock	(7,367)	(7,858)
Contributions received from noncontrolling interests	30	0
Distributions paid to noncontrolling interests	(179)	(3,446)
Net cash provided by financing activities	62,651	14,742
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(35)	0
Net change in cash, cash equivalents and restricted cash	5,876	(605)
Cash, cash equivalents and restricted cash, beginning of year	32,652	57,360
Cash, cash equivalents and restricted cash, end of period	38,528	56,755
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	3,934	3,548
Capital expenditures for real estate in accrued liabilities and accounts payable	279	139
Holding gain/loss on marketable securities, available for sale	303	172
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	33,958	52,368
Restricted cash	4,570	4,387
Total cash and restricted cash	$ 32,652	$ 57,360

Organization

Organization	9 Months Ended
	Sep. 30, 2019
Organization
Organization	1. Organization Lightstone Value Plus Real Estate Investment Trust V, Inc., which was previously named Behringer Harvard Opportunity REIT II, Inc. prior to July 20, 2017, (which may be referred to as the “Company,” “we,” “us,” or “our”), was organized as a Maryland corporation on January 9, 2007 and has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. We were formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. In particular, we have focused generally on acquiring commercial properties with significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. We have acquired a wide variety of commercial properties, including office, industrial, retail, hospitality, and multifamily. We have purchased existing, income-producing properties, and newly-constructed properties. We have also invested in other real estate-related investments such as mortgage and mezzanine loans. We intend to hold the various real properties in which we have invested until such time as our board of directors determines that a sale or other disposition appears to be advantageous to achieve our investment objectives or until it appears that the objectives will not be met. As of September 30, 2019, we had eight real estate investments (four wholly owned properties and four properties consolidated through investments in joint ventures) and one real estate-related investment (mezzanine loan). Substantially all of our business is conducted through Lightstone REIT V OP LP, which was previously named Behringer Harvard Opportunity OP II LP prior to November 1, 2017, a limited partnership organized in Delaware (the “Operating Partnership”). As of September 30, 2019, our wholly owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1% partnership interest in the Operating Partnership as its sole general partner. As of September 30, 2019, our wholly owned subsidiary, BHO Business Trust II, a Maryland business trust, was the sole limited partner of the Operating Partnership and owned the remaining 99.9% interest in the Operating Partnership. Our business is managed by an external advisor and we have no employees. Effective February 10, 2017, we engaged affiliates of the Lightstone Group (“Lightstone”), LSG-BH II Advisor LLC and LSG Development Advisor LLC (collectively, the “Advisor”), to provide advisory services to us. Subject to the oversight of our board of directors, our external advisor is responsible for managing our day-to-day affairs and for services related to the management of our assets. In connection with our initial capitalization, we issued 22,500 shares of our common stock and 1,000 shares of our convertible stock to our previous advisor on January 19, 2007. These shares of convertible stock were transferred to an affiliate of Lightstone on February 10, 2017. As of September 30, 2019, we had 22.5 million shares of common stock outstanding and 1,000 shares of convertible stock outstanding held by an affiliate of Lightstone. Our common stock is not currently listed on a national securities exchange. The timing of a liquidity event for our stockholders will depend upon then prevailing market conditions. We previously targeted the commencement of a liquidity event within six years after the termination of our initial public offering, which occurred on July 3, 2011. On June 29, 2017, our board of directors elected to extend the targeted timeline an additional six years until June 30, 2023 based on their assessment of our investment objectives and liquidity options for our stockholders. However, we can provide no assurances as to the actual timing of the commencement of a liquidity event for our stockholders or the ultimate liquidation of the Company. We will seek stockholder approval prior to liquidating our entire portfolio. Noncontrolling Interests Noncontrolling interests represents the noncontrolling ownership interest’s proportionate share of the equity in our consolidated real estate investments. Income and losses are allocated to noncontrolling interest holders based generally on their ownership percentage. If a property reaches a defined return threshold, then it will result in distributions to noncontrolling interests which is different from the standard pro-rata allocation percentage. In certain instances, our joint venture agreements provide for liquidating distributions based on achieving certain return metrics (“promoted interest”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2018, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus Real Estate Investment Trust V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2018 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10‑K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact the adoption of this standard will have on the Company’s consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Real Estate Asset Acquisition

Real Estate Asset Acquisition	9 Months Ended
	Sep. 30, 2019
Real Estate Asset Acquisition
Real Estate Asset Acquisition	3. Real Estate Asset Acquisition On February 14, 2019, the Company completed the acquisition of a 384‑unit multifamily property located in Ann Arbor, Michigan (the “Valley Ranch Apartments”) from an unrelated third party, for an aggregate purchase price of approximately $70.3 million, excluding closing and other related transaction costs. In connection with the acquisition, our Advisor received an aggregate of approximately $1.3 million in acquisition fees and acquisition expense reimbursements. In connection with the acquisition of the Valley Ranch Apartments, the Company simultaneously entered into a $43.4 million non-recourse mortgage loan (the “Valley Ranch Apartments Loan”) collateralized by the Valley Ranch Apartments (see Note 7). The Company determined this acquisition was an asset acquisition and allocated the total purchase price, including acquisition fees and expenses, to the assets acquired based on their relative fair value. Approximately $24.1 million was allocated to land and improvements, $46.3 million was allocated to building and improvements, and $1.1 million was allocated to in-place lease intangibles. The capitalization rate for the acquisition of the Valley Ranch Apartments was approximately 5.35%. The Company calculates the capitalization rate for a real property by dividing the net operating income (“NOI”) of the property by the purchase price of the property, excluding costs. For purposes of this calculation, NOI was based upon the year ended November 30, 2018. Additionally, NOI is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation.

Note Receivable

Note Receivable	9 Months Ended
	Sep. 30, 2019
Note Receivable
Note Receivable	4. Note Receivable 500 West 22nd Street Mezzanine Loan On February 28, 2019, the Company entered into a $12.0 million mezzanine loan promissory note (the “500 West 22nd Street Mezzanine Loan”) with an unaffiliated third party (the “500 West 22nd Street Mezzanine Loan Borrower”). On the same date, the Company initially funded $8.0 million of the 500 West 22nd Street Mezzanine Loan. Through September 30, 2019, the Company funded an additional $2.0 million of the 500 West 22nd Street Mezzanine Loan and has funded an aggregate of $10.0 million of the 500 West 22nd Street Mezzanine Loan and as of September 30, 2019, $2.0 million remained unfunded. The 500 West 22nd Street Mezzanine Loan is recorded in note receivable, net on the consolidated balance sheet. In connection with the fundings made for the 500 West 22nd Street Mezzanine Loan, our Advisor has received an aggregate of approximately $0.2 million in acquisition fees from the Company during the nine months ended September 30, 2019. The acquisition fees are accounted for as an addition to the carrying value of the 500 West 22 nd Street Mezzanine Loan and are being amortized as a reduction to interest income over the initial term of the 500 West 22 nd Street Mezzanine Loan using a straight-line method that approximates the effective interest method. The 500 West 22 nd Street Mezzanine Loan is due August 31, 2021 and is collateralized by the ownership interests of the 500 West 22 nd Street Mezzanine Loan Borrower. The 500 West 22nd Street Mezzanine Loan Borrower owns a parcel of land located at 500 West 22 nd Street, New York, New York. The 500 West 22 nd Street Mezzanine Loan bears interest at a rate of LIBOR + 11.0% per annum with a floor of 13.493% (13.493% as of September 30, 2019). The Company received an origination fee of 1.0% of the loan balance, or approximately $0.1 million, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 500 West 22 nd Street Mezzanine Loan and is being amortized to interest income, using a straight-line method that approximates the effective interest method, over the initial term of the 500 West 22nd Street Mezzanine Loan. The 500 West 22 nd Street Mezzanine Loan may be extended two additional six- month periods by the 500 West 22 nd Street Mezzanine Loan Borrower provided certain conditions are met, including the establishment of an additional reserve for interest and the payment of an extension fee equal to 0.25% of the outstanding loan balance. In connection with the initial funding under the 500 West 22 nd Street Mezzanine Loan, the Company retained approximately $2.1 million of the proceeds to establish a reserve for interest and other items, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 500 West 22 nd Street Mezzanine Loan and are being applied against the first 8.0% of monthly interest due during the initial term of the 500 West 22nd Street Mezzanine Loan. Through September 30, 2019, approximately $0.4 million of the reserve has been recognized as interest income and the remaining balance of the reserve was approximately $1.7 million as of September 30, 2019. The additional monthly interest due above the 8.0% threshold is added to the balance of the 500 West 22nd Street Mezzanine Loan and payable at maturity. As of September 30, 2019, approximately $0.3 million of additional interest due is included in the balance of the 500 West 22 nd Street Mezzanine Loan. During the three and nine months ended September 30, 2019, the Company recorded approximately $0.3 million and $0.7 million of interest income, respectively, related to the note receivable and as of September 30, 2019, the outstanding principal balance of the 500 West 22nd Street Mezzanine Loan was approximately $10.3 million.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2019
Financial Instruments
Financial Instruments	5. Financial Instruments We determined the following disclosure of estimated fair values using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop the related estimates of fair value. The use of different market assumptions or only estimation methodologies may have a material effect on the estimated fair value amounts. As of September 30, 2019 and December 31, 2018, management estimated that the carrying value of cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable, accrued and other liabilities, accrued property tax and payables to related parties were at amounts that reasonably approximated their fair value based on their highly-liquid nature and short-term maturities. The carrying amount of the note receivable approximates fair value because the interest rate is variable and reflective of the market rate. The fair value of the notes payable is categorized as a Level 2 in the fair value hierarchy. The fair value was estimated using a discounted cash flow analysis valuation on the borrowing rates currently available for loans with similar terms and maturities. The fair value of the notes payable was determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair value of financial instruments is based on pertinent information available to management as of September 30, 2019 and December 31, 2018. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of September 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Notes payable $ 213,017 $ 213,523 $ 141,423 $ 140,986

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	9 Months Ended
	Sep. 30, 2019
Marketable Securities and Fair Value Measurements
Marketable Securities and Fair Value Measurements	6. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of September 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,318 $ 116 $ (2) $ 5,432 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 14,575 $ 15 $ (204) $ 14,386 When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. As of September 30, 2019, the Company did not recognize any impairment charges. 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. The fair values of the Company’s investments in debt securities are measured using quoted prices for these investments; however, the markets for these assets are not active. As of September 30, 2019, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the nine months ended September 30, 2019. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of September 30, 2019 Due in 1 year $ 1,097 Due in 1 year through 5 years 4,335 Due in 5 years through 10 years — Due after 10 years — Total $ 5,432

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2019
Notes Payable
Notes Payable	7 . Notes Payable Notes payable consists of the following: Weighted Average Interest Rate as of Amount Due at As of As of Property Interest Rate September 30, 2019 Maturity Date Maturity September 30, 2019 December 31, 2018 River Club and the Townhomes at River Club LIBOR + 1.78% 3.93 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Gardens Medical Pavilion LIBOR + 1.90% 4.57 % September 1, 2021 12,300 12,720 12,900 Lakes of Margate 5.49% and 5.92% 5.75 % January 1, 2020 13,384 13,462 13,687 Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % September 1, 2025 15,782 17,662 17,877 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Vally Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 — Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 — Total notes payable 4.32 % $ 202,732 213,017 141,423 Less: Deferred financing costs (3,370) (2,407) Total notes payable, net $ 209,647 $ 139,016 The Company’s loan agreements stipulate that it complies with certain reporting and financial covenants. The Company is currently in compliance with all of its debt covenants. On February 14, 2019, the Company entered into the Valley Ranch Apartments Loan scheduled to mature on March 1, 2026. The Valley Ranch Apartments Loan bears interest at 4.16% and requires monthly interest-only payments through its stated maturity. The Valley Ranch Apartments Loan is collateralized by the Valley Ranch Apartments and is non-recourse to the Company. In connection with the Valley Ranch Apartments Loan, our Advisor received an aggregate of approximately $0.4 million in financing fees. On June 13, 2019, the Company entered into a seven-year $28.8 million mortgage loan (the "Flats at Fishers Loan") scheduled to mature on July 1, 2026. The Flats at Fishers Loan bears interest at 3.78% and requires monthly interest-only payments through the first two years of the loan term and thereafter, monthly payments of principal and interest based upon a 30-year amortization. The Flats at Fishers Loan is collateralized by the Flats at Fishers and is non-recourse to the Company. In connection with the Flats at Fishers Loan, our Advisor received an aggregate of approximately $0.3 million in financing fees. The following table provides information with respect to the contractual maturities and scheduled principal repayments of our indebtedness as of September 30, 2019. 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 212 $ 13,924 $ 13,443 $ 1,468 $ 2,122 $ 181,848 $ 213,017 Less: deferred financing costs (3,370) Total notes payable, net $ 209,647 In addition, the Company’s non-recourse mortgage loan secured by the Lakes of Margate (outstanding principal balance of $13.5 million as of September 30, 2019) matures in January 2020. We currently expect to refinance all or a portion of this maturing indebtedness on or before its scheduled maturity. However, if we are unable to refinance the outstanding indebtedness at favorable terms, we will look to repay the then outstanding balance with available cash and/or proceeds from selective asset sales.

Leases

Leases	9 Months Ended
	Sep. 30, 2019
Leases
Leases	8. Leases The Company’s office, multifamily and student housing properties are leased to tenants under operating leases. Substantially all of our multifamily and student housing leases have initial terms of 12 months or less. Our office leases expire between 2019 and 2025. We, as a lessor, retain substantially all of the risks and benefits of ownership of the investment properties and continue to account for our leases as operating leases. We accrue fixed lease income on a straight-line basis over the terms of the leases. Some of our tenants are also required to pay overage rents based on sales over a stated base amount during the lease year. We recognize this variable lease consideration only when each tenant’s sales exceed the applicable sales threshold. We amortize any tenant inducements as a reduction of revenue utilizing the straight-line method over the term of the related lease. We structure our leases to allow us to recover a portion of our property operating expenses from our tenants. A portion of our leases require the tenant to reimburse us for a portion of our operating expenses, including common area maintenance (“CAM”), real estate taxes and insurance. Such property operating expenses typically include utility, insurance and other administrative expenses. For some of our leases we receive a fixed payment from the tenant for the CAM component which is recognized as revenue on a straight-line basis over the term of the lease. When not reimbursed by the fixed CAM component, CAM expense reimbursements are based on the tenant’s proportionate share of the allocable operating expenses for the property. We accrue reimbursements from tenants for recoverable portions of all of these expenses as variable lease consideration in the period the applicable expenditures are incurred. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material in any period presented. As of September 30, 2019, the approximate fixed future minimum rental payments, excluding variable lease consideration, from the Company’s office property, Gardens Medical Pavilion, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 388 $ 1,424 $ 1,081 $ 973 $ 895 $ 767 $ 5,528 Pursuant to the lease agreements, tenants of the property may be required to reimburse the Company for some or the entire portion of the particular tenant’s pro rata share of the real estate taxes and operating expenses of the property. Such amounts are not included in the future minimum lease payments above, but are included in rental revenues on the accompanying consolidated statements of operations. Rental revenue of approximately $0.5 million and $1.7 million for the three and nine months ended September 30, 2019, respectively, and rental revenue of approximately $0.2 million and $0.6 million for the three and nine months ended September 30, 2018, respectively, related to variable lease payments was included in rental revenues on the accompanying consolidated statements of operations. The Company has excluded our multifamily and student housing leases from this table as substantially all of its multifamily and student housing leases have initial terms of 12 months of less.

Distributions

Distributions	9 Months Ended
	Sep. 30, 2019
Distributions
Distributions	9. Distributions U.S. federal tax law requires a REIT distribute at least 90% of its annual 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. In order to continue to qualify for REIT status, we may be required to make distributions in excess of cash available. Distributions are authorized at the discretion of our board of directors based on its analysis of our performance over the previous periods and expectations of performance for future periods. These analyses may include actual and anticipated operating cash flow, changes in market capitalization rates for investments suitable for our portfolio, capital expenditure needs, general financial and market conditions, proceeds from asset sales, and other factors that our board of directors deems relevant. Our board of director’s decisions will be substantially influenced by the obligation to ensure that we maintain our federal tax status as a REIT. We cannot provide assurance that we will pay distributions at any particular level, or at all.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	10. Related Party Transactions Advisor Our external advisor and certain of its affiliates may receive fees and compensation in connection with the management and sale of our assets based on an advisory management agreement, as amended and restated. The following discussion describes the fees and expenses payable to our external advisor and its respective affiliates under the various advisory management agreements. We pay our external advisor acquisition and advisory fees of 1.5% of the amount paid in respect of the purchase, development, construction, or improvement of each asset we acquire, including any debt attributable to those assets. In addition, we pay acquisition and advisory fees of 1.5% of the funds advanced in respect of a loan investment. We also pay our external advisor an acquisition expense reimbursement in the amount of (i) 0.25% of the funds paid for purchasing an asset, including any debt attributable to the asset, plus 0.25% of the funds budgeted for development, construction, or improvement in the case of assets that we acquire and intend to develop, construct, or improve or (ii) 0.25% of the funds advanced in respect of a loan investment. For the three months ended September 30, 2019, we incurred an aggregate of less than $0.1 million payable to our external advisor for acquisition and advisory fees and acquisition expense reimbursement. For the nine months ended September 30, 2019, we incurred an aggregate of $1.4 million payable to our advisor for acquisition and advisory fees and acquisition expense reimbursement. We incurred no acquisition and advisory fees and acquisition expense reimbursement payable to our external advisor for the three and nine months ended September 30, 2018 because we had no acquisitions during these periods. Generally, these fees are capitalized to the applicable asset and amortized over its estimated useful life. We also pay third parties, or reimburse our external advisor or its affiliates, for any investment-related expenses due to third parties in the case of a completed investment, including, but not limited to, legal fees and expenses, travel and communication expenses, costs of appraisals, accounting fees and expenses, third-party brokerage or finder’s fees, title insurance, premium expenses, and other closing costs. Our external advisor and its affiliates are also responsible for paying all of the investment-related expenses that we or the external advisor or its affiliates incur that are due to third parties or related to the additional services provided by our external advisor as described above with respect to investments we do not make, other than certain non-refundable payments made in connection with any acquisition. For the three and nine months ended September 30, 2019 and 2018, we incurred no acquisition expense reimbursements. Prior to June 10, 2018 we paid our external advisor a debt financing fee of 0.5% of the amount available under any loan or line of credit made available to us and pay directly all third-party costs associated with obtaining the debt financing, on June 10, 2018 we amended the advisory management agreement with our advisor and increased the debt financing fee to 1.0% of the amount available under any loan or line of credit made available to us and pay directly all third-party costs associated with obtaining the debt financing. For the nine months ended September 30, 2019, we incurred $0.7 million of external advisor debt financing fees. We incurred no debt financing fees for the three months ended September 30, 2019 and the three and nine months ended September 30, 2018 as we had no debt financing transactions during these periods. Generally these fees are capitalized as a direct reduction to the applicable financing and amortized over its term. We pay our external advisor a development fee in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the project if such affiliate provides the development services and if a majority of our independent directors determines that such development fee is fair and reasonable to us. We incurred no development fees for the three and nine months ended September 30, 2019 and 2018. We pay our external advisor a monthly asset management fee of one-twelfth of 0.7% of the value of each asset. The value of our assets will be the value as determined in connection with the establishment and publication of an estimated net asset value (“NAV”) per share unless the asset was acquired after our publication of a NAV per share (in which case the value of the asset will be the contractual purchase price of the asset). For the three and nine months ended September 30, 2019, we expensed $0.6 million and $1.8 million, respectively, of asset management fees payable to our external advisor. For the three and nine months ended September 30, 2018, we expensed $0.4 million and $1.2 million, respectively, of asset management fees payable to our external advisor. Our external advisor is responsible for paying all of the expenses it incurs associated with persons employed by the external advisor to the extent that they provide services to us for which our external advisor receives an acquisition, asset management, or debt financing fee, including wages and benefits of the applicable personnel. Instead of reimbursing our external advisor for specific expenses paid or incurred in connection with providing services to us, we pay our external advisor an administrative services fee, which is an allocation of a portion of the actual costs that the external advisor paid or incurred providing these services to us (the “Administrative Services Reimbursement”). The Administrative Services Reimbursement is intended to reimburse the external advisor for all its costs associated with providing services to us. For the period January 1, 2018 through June 10, 2018, the Administrative Services Reimbursement was up to $1.3 million annually, pro-rated for the period. For the period June 11, 2018 through June 10, 2019, the Administrative Services Reimbursement was up to $1.29 million. On June 10, 2019, the advisory management agreements were extended an additional year through June 10, 2020. For the period June 11, 2019 through June 10, 2020, the Administrative Services Reimbursement is up to $1.312 million. The Administrative Services Reimbursement is payable in four equal quarterly installments within 45 days of the end of each calendar quarter. In addition, under the various advisory management agreements, we are to reimburse the external advisor for certain due diligence services provided in connection with asset acquisitions and dispositions and debt financings separately from the Administrative Services Reimbursement. We incurred and expensed $0.4 million and $1.0 million for the three and nine months ended September 30, 2019, respectively, and $0.3 million and $1.0 million for the three and nine months ended September 30, 2018, respectively, of such costs for administrative services and due diligence services. Notwithstanding the fees and cost reimbursements payable to our external advisor pursuant to our advisory management agreement, under our charter we may not reimburse the external advisor for any amount by which our operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of: (i) 2% of our average invested assets, or (ii) 25% of our net income determined without reduction for any additions to reserves for depreciation, bad debts, or other similar non-cash reserves and excluding any gain from the sale of our assets for that period unless a majority of our independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal quarters ended September 30, 2019, our total operating expenses (including the asset management fee) exceeded the limit on total operating expenses; however, our independent directors determined the excess expenses were justified primarily as a result of the timing of the redeployment of our cash proceeds from asset sales and financings. Property Manager The Company engaged an affiliate of Lightstone (the “Lightstone Manager”) pursuant to a property management and leasing agreement. The following discussion describes the fees and expenses payable to our affiliated property manager and its respective affiliates under both the various property management and leasing agreements. We pay our property manager and affiliate of our external advisor, fees for the management, leasing, and construction supervision of our properties which is 4.0% of gross revenues of the properties managed by our property manager. We pay our property manager an oversight fee equal to 0.5% of the gross revenues of the property managed for any property for which we contract directly with a third-party property manager. In no event will our property manager or its affiliates receive both a property management fee and an oversight fee with respect to any particular property. In the event we own a property through a joint venture that does not pay our property manager directly for its services, we will pay our property manager a management fee or oversight fee, as applicable, based only on our economic interest in the property. For the three and nine months ended September 30, 2019, we incurred and expensed property management fees or oversight fees to the related-party property manager of $0.1 million and $0.3 million, respectively. For both the three and nine months ended September 30, 2018, we incurred and expensed property management fees or oversight fees to the related-party property manager of $0.1 million. We pay our property manager a construction management fee in an amount not to exceed 5% of all hard construction costs incurred in connection with, but not limited to capital repairs and improvements, major building reconstruction and tenant improvements, if such affiliate supervises construction performed by or on behalf of us or our affiliates. We incurred no construction management fees for the three months ended September 30, 2019 and 2018. As of both September 30, 2019 and December 31, 2018, we had a payable to our external advisor and its affiliates of less than $0.1 million. These balances consist of accrued fees, including asset management fees, administrative service expenses, property management fees, and other miscellaneous costs payable to our external advisor and property manager. We are dependent on our external advisor and our property manager for certain services that are essential to us, including asset disposition decisions, property management and leasing services, and other general administrative responsibilities. In the event that these companies were unable to provide us with their respective services, we would be required to obtain such services from other sources.

Investment in Unconsolidated Jo

Investment in Unconsolidated Joint Venture	9 Months Ended
	Sep. 30, 2019
Investment in Unconsolidated Joint Venture
Investment in Unconsolidated Joint Venture	11. Investment in Unconsolidated Joint Venture We provided mezzanine financing totaling $15.3 million to an unaffiliated third-party entity (the “Borrower”) that owned an apartment complex in Denver, Colorado (the “Prospect Park”). The Borrower also had a senior construction loan with a third-party construction lender (the “Senior Lender”) in an aggregate original principal amount of $40.0 million. The senior construction loan was guaranteed by the owners of the developer. We also had a personal guaranty from the owners of the developer guaranteeing completion of Prospect Park and payment of any cost overruns. Our mezzanine loan was secured by all of the membership interests of the Borrower and was subordinate to the senior construction loan. Our advances of $15.3 million initially had annual stated interest rates ranging from 10% to 18%. Pursuant to the terms of the mezzanine loan, we participated in the residual interests of Prospect Park attributable to a sale or refinancing even though we had no actual ownership interest. We previously evaluated this arrangement and determined that its characteristics were similar to a jointly-owned investment or partnership. Accordingly, our investment, which was a variable interest entity (“VIE”) was accounted for as an unconsolidated joint venture under the equity method of accounting instead of loan accounting. On December 15, 2017, the Borrower sold Prospect Park to an unrelated third-party for a contractual sales price of approximately $100.5 million. In connection with the sale, the Borrower repaid the Senior Construction Loan in full and we received aggregate proceeds of approximately $21.6 million representing the repayment in full of the outstanding principal and accrued interest due on our mezzanine loan. Additionally, the Borrower placed approximately $15.1 million of the net proceeds from the sale into an escrow account to be used for settlement of the amount due to us for our participation in the residual interests of Prospect Park. The carrying value of our unconsolidated investment in Prospect Park, which represented the minimum amount payable to us for our participation in the residual interests of Prospect Park, was $10.9 million as of December 31, 2018. On January 4, 2019, the Company and the Borrower received payments of $10.9 million and $1.9 million, respectively, from the escrow account. As a result, the carrying value of our unconsolidated investment in Prospect Park has been reduced to zero and as of September 30, 2019, approximately $2.3 million remains in the escrow account to be used for settlement of any potential remaining amount due to us for our participation in the residual interests of Prospect Park and any additional amounts received will be recognized upon receipt.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Interim Unaudited Financial Information	Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2018, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of Lightstone Value Plus Real Estate Investment Trust V, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2018 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10‑K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation.
Earnings per Share	Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the applicable period.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued new guidance which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is currently in the process of evaluating the impact the adoption of this standard will have on the Company’s consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2019
Financial Instruments
Schedule of fair value, by balance sheet grouping	Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of September 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Notes payable $ 213,017 $ 213,523 $ 141,423 $ 140,986

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2019
Marketable Securities and Fair Value Measurements
Schedule of available-for-sale securities reconciliation	The following is a summary of the Company’s available for sale securities as of the dates indicated: As of September 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,318 $ 116 $ (2) $ 5,432 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 14,575 $ 15 $ (204) $ 14,386
Schedule of available-for-sale securities	The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of September 30, 2019 Due in 1 year $ 1,097 Due in 1 year through 5 years 4,335 Due in 5 years through 10 years — Due after 10 years — Total $ 5,432

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Payable
Schedule of information on notes payable	Notes payable consists of the following: Weighted Average Interest Rate as of Amount Due at As of As of Property Interest Rate September 30, 2019 Maturity Date Maturity September 30, 2019 December 31, 2018 River Club and the Townhomes at River Club LIBOR + 1.78% 3.93 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Gardens Medical Pavilion LIBOR + 1.90% 4.57 % September 1, 2021 12,300 12,720 12,900 Lakes of Margate 5.49% and 5.92% 5.75 % January 1, 2020 13,384 13,462 13,687 Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % September 1, 2025 15,782 17,662 17,877 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Vally Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 — Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 — Total notes payable 4.32 % $ 202,732 213,017 141,423 Less: Deferred financing costs (3,370) (2,407) Total notes payable, net $ 209,647 $ 139,016
Schedule of contractual obligations for principal payments	The following table provides information with respect to the contractual maturities and scheduled principal repayments of our indebtedness as of September 30, 2019. 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 212 $ 13,924 $ 13,443 $ 1,468 $ 2,122 $ 181,848 $ 213,017 Less: deferred financing costs (3,370) Total notes payable, net $ 209,647

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Leases
Schedule of future minimum rental payments for operating leases	As of September 30, 2019, the approximate fixed future minimum rental payments, excluding variable lease consideration, from the Company’s office property, Gardens Medical Pavilion, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 388 $ 1,424 $ 1,081 $ 973 $ 895 $ 767 $ 5,528

Organization (Details)

Organization (Details) - shares	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018	Jan. 19, 2007
Organization
Common stock, shares outstanding (in shares)	22,500,000	23,400,000
Common stock, shares issued (in shares)	22,500,000	23,400,000
Convertible stock issued (in shares)	1,000	1,000
Convertible Stock Shares Outstanding	1,000	1,000
Maryland [Member]
Organization
Percentage of remaining ownership interest held by BHO Business Trust II	99.90%
Behringer Harvard Opportunity OP II LP
Organization
Percentage of ownership interest by BHO II, Inc	0.10%
Initial Offering
Organization
Common stock, shares outstanding (in shares)	22,500,000
Initial Offering | Lightstone Group [Member]
Organization
Convertible Stock Shares Outstanding	1,000
Initial Capitalization | Behringer Harvard Holdings
Organization
Common stock, shares issued (in shares)			22,500
Convertible stock issued (in shares)			1,000

Real Estate Asset Acquisition (

Real Estate Asset Acquisition (Details) - USD ($) $ in Millions	1 Months Ended
	Feb. 14, 2019	Nov. 30, 2018
Land and Improvements
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	$ 24.1
Building and Building Improvements [Member]
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	46.3
Other Assets [Member]
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	1.1
Valley Ranch Apartments
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	70.3
Business Combination, Acquisition Related Costs	1.3
Transfer Mortgage Payable	$ 43.4
Capitalization Rate		5.35%

Note Receivable (Details)

Note Receivable (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	7 Months Ended	9 Months Ended
	Feb. 28, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Payments to Acquire Notes Receivable				$ 7,771	$ 0
Mezzanine Loan Promissory Note [Member]
Debt Instrument, Face Amount	$ 12,000	$ 300	$ 300	300	$ 10,300
Payments to Acquire Notes Receivable	$ 8,000	2,000		10,000
Debt Instrument, Unfunded		2,000	2,000	2,000
Payments for Merger Related Costs				$ 200
Debt Instrument, Description of Variable Rate Basis	LIBOR + 11.0
Debt Instrument, Basis Spread on Variable Rate	11.00%			13.493%
Debt Instrument Origination Fees Description				The Company received an origination fee of 1.0% of the loan balance, or approximately $0.1 million
Debt Instrument Extension Fee Percentage				0.25%
Debt Instrument, Maturity Date	Aug. 31, 2021
Interest Reserve On Notes Receivable	$ 2,100			$ 1,700
Utilization Of Interest Reserve Percentage On Interest Due	8.00%			8.00%
Investment Income, Interest		$ 300	$ 400	$ 700

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Financial Instruments
Notes payable, Carrying Amount	$ 213,017	$ 141,423
Notes payable, Fair Value	$ 213,523	$ 140,986

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements - Available for Sale Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Fair Value	$ 5,432	$ 14,386
Corporate and Government Bonds [Member]
Adjusted Cost	5,318	14,575
Gross Unrealized Gains	116	15
Gross Unrealized Losses	(2)	(204)
Fair Value	$ 5,432	$ 14,386

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements - Summarizes the Estimated Fair Value of our Investments in Marketable Debt Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Marketable Securities and Fair Value Measurements
Due in 1 year	$ 1,097
Due in 1 year through 5 years	4,335
Due in 5 years through 10 years	0
Due after 10 years	0
Total	$ 5,432	$ 14,386

Notes Payable - Information on

Notes Payable - Information on Notes Payable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-term Debt	$ 209,647
Less: Deferred financing costs	(3,370)
Total notes payable, net	$ 209,647	$ 139,016
Notes payable
Debt Instrument [Line Items]
Weighted Average Interest Rate	4.32%
Long-term Debt	$ 202,732
Total notes payable	213,017	141,423
Less: Deferred financing costs	$ (3,370)	(2,407)
River Club and the Townhomes at River Club | Notes payable
Debt Instrument [Line Items]
Debt Instrument, Interest Rate	LIBOR + 1.78%
Weighted Average Interest Rate	3.93%
Debt Instrument, Maturity Date	May 1, 2025
Long-term Debt	$ 28,419
Total notes payable	$ 30,359	30,359
Gardens Medical Pavilion | Notes payable
Debt Instrument [Line Items]
Debt Instrument, Interest Rate	LIBOR + 1.90%
Weighted Average Interest Rate	4.57%
Debt Instrument, Maturity Date	Sep. 1, 2021
Long-term Debt	$ 12,300
Total notes payable	$ 12,720	12,900
Lakes of Margate | Notes payable
Debt Instrument [Line Items]
Weighted Average Interest Rate	5.75%
Debt Instrument, Maturity Date	Jan. 1, 2020
Long-term Debt	$ 13,384
Total notes payable	$ 13,462	13,687
Arbors Harbor Town | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	4.53%
Weighted Average Interest Rate	4.53%
Debt Instrument, Maturity Date	Dec. 28, 2025
Long-term Debt	$ 29,000
Total notes payable	$ 29,000	29,000
Parkside | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	4.45%
Weighted Average Interest Rate	4.45%
Debt Instrument, Maturity Date	Sep. 1, 2025
Long-term Debt	$ 15,782
Total notes payable	$ 17,662	17,877
Axis at Westmont | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	4.39%
Weighted Average Interest Rate	4.39%
Debt Instrument, Maturity Date	Feb. 1, 2026
Long-term Debt	$ 34,343
Total notes payable	$ 37,600	37,600
Valley Ranch Apartments | Notes payable
Debt Instrument [Line Items]
Debt Instrument, Interest Rate	4.16%
Weighted Average Interest Rate	4.16%
Debt Instrument, Maturity Date	Mar. 1, 2026
Long-term Debt	$ 43,414
Total notes payable	$ 43,414	0
Flats at Fishers | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	3.78%
Weighted Average Interest Rate	3.78%
Debt Instrument, Maturity Date	Jul. 1, 2026
Long-term Debt	$ 26,090
Total notes payable	$ 28,800	$ 0
Minimum | Lakes of Margate | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	5.49%
Maximum | Lakes of Margate | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	5.92%

Notes Payable - Contractual Obl

Notes Payable - Contractual Obligations for Principal Payments (Details) $ in Thousands	Sep. 30, 2019USD ($)
Notes Payable
2019	$ 212
2020	13,924
2021	13,443
2022	1,468
2023	2,122
Thereafter	181,848
Total principal maturities	213,017
Less: Deferred financing costs	(3,370)
Total notes payable, net	$ 209,647

Notes Payable - Additional Info

Notes Payable - Additional Information (Details) - USD ($) $ in Millions	Jun. 13, 2019	Feb. 14, 2019	Sep. 30, 2019
Valley Ranch Apartments
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		4.16%
Debt Instrument, Fee Amount		$ 0.4
Flats At Fishers Loan [Member]
Debt Instrument [Line Items]
Total notes payable	$ 28.8
Debt Instrument, Basis Spread on Variable Rate	3.78%
Debt Instrument, Maturity Date	Jul. 1, 2026
Debt Instrument, Fee Amount	$ 0.3
Lakes of Margate
Debt Instrument [Line Items]
Total notes payable			$ 13.5
Debt Instrument, Maturity Date			Jan. 1, 2020

Leases - Fixed Future Minimum R

Leases - Fixed Future Minimum Rental Payments (Details) $ in Thousands	Sep. 30, 2019USD ($)
Leases
2019	$ 388
2020	1,424
2021	1,081
2022	973
2023	895
Thereafter	767
Total	$ 5,528

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Leases
Operating Leases, Income Statement, Lease Revenue	$ 0.5	$ 0.2	$ 1.7	$ 0.6

Distributions (Details)

Distributions (Details)	9 Months Ended
	Sep. 30, 2019
Distributions
Minimum Percentage of Ordinary Taxable Income Distribution Requirement	90.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	1 Months Ended	3 Months Ended		5 Months Ended	9 Months Ended		12 Months Ended			15 Months Ended
	Jun. 10, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 10, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 10, 2020	Jun. 10, 2019	Dec. 31, 2018	Sep. 30, 2019
Related party transaction
Reimbursement of acquisition expense		$ 0	$ 0		$ 0	$ 0
Percentage of debt financing fee payable under loan or line of credit	1.00%
Asset management fees		600,000	400,000		$ 1,800,000	1,200,000
Oversight fee as percentage of gross revenues of property managed					0.50%
Construction management fees, percentage										0.00%
Advisor
Related party transaction
Acquisition and advisory fees as percentage of purchase, development, construction, or improvement of each asset acquired					1.50%
Acquisition and advisory fees as percentage of funds advanced in respect of loan investment					1.50%
Percentage of debt financing fee payable under loan or line of credit	0.50%
Business Combination, Acquisition Related Costs			0		$ 1,400,000	0
Debt Financing Fees		0	0		$ 700,000	0
Monthly asset management fee					0.70%
Administrative Services Costs Reimbursement Real Estate Management				$ 1,300,000				$ 1,290,000
Administrative services cost incurred and expensed		400,000	300,000		$ 1,000,000	1,000,000
Property management fees as percentage of gross revenues of properties					4.00%
Property management fees or oversight fees incurred		100,000	$ 100,000		$ 300,000	$ 100,000
Construction management fees, percentage					5.00%
Payment Of Administrative Service Costs Maximum Period									45 days
Payable To External Advisor And Affiliates		100,000			$ 100,000				$ 100,000	$ 100,000
Advisor | Subsequent Event
Related party transaction
Administrative Services Costs Reimbursement Real Estate Management							$ 1,312,000
Advisor | Minimum
Related party transaction
Operating expenses in excess of average invested assets					2.00%
Operating expenses in excess of net income					25.00%
Advisor | Maximum
Related party transaction
Business Combination, Acquisition Related Costs		$ 100,000
Asset Purchases | Advisor
Related party transaction
Percentage of reimbursement of acquisition expense					0.25%
Development, Construction or Improvement of Assets | Advisor
Related party transaction
Percentage of reimbursement of acquisition expense					0.25%
Funds Advanced for Loan Investment | Advisor
Related party transaction
Percentage of reimbursement of acquisition expense					0.25%

Investment in Unconsolidated _2

Investment in Unconsolidated Joint Venture (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 04, 2019	Dec. 15, 2017	Sep. 30, 2019
Schedule of Equity Method Investments [Line Items]
Mezzanine financing to unaffiliated third party Entity	$ 15.3			$ 15.3
Amount of senior construction loan taken by unconsolidated joint venture	40			40
Outstanding principal balance under mezzanine Loan	15.3			$ 15.3
Equity Method Investments		$ 0
Proceeds from escrow deposit		10.9
Prospect Park
Schedule of Equity Method Investments [Line Items]
Real Estate Property Contractual Sales Price			$ 100.5
Proceeds from Sale of Real Estate			21.6
Escrow Deposits Related to Property Sales	$ 2.3		15.1
Equity Method Investments			$ 10.9
Proceeds from escrow deposit		$ 1.9
Minimum
Schedule of Equity Method Investments [Line Items]
Annual interest rate for mezzanine loan				10.00%
Maximum
Schedule of Equity Method Investments [Line Items]
Annual interest rate for mezzanine loan				18.00%