Lightstone Value Plus REIT V (LVVP) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2020	Nov. 10, 2020
Document and Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	Lightstone Value Plus Real Estate Investment Trust V, Inc.
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		20.2
Entity Central Index Key	0001387061
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
No Trading Symbol Flag	true
Title of 12(b) Security	None

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investment property:
Land and improvements	$ 73,509	$ 65,767
Building and improvements	266,851	227,938
Furniture, fixtures and equipment	7,982	7,231
Gross investment property	348,342	300,936
Less accumulated depreciation	(58,344)	(49,693)
Net investment property	289,998	251,243
Cash and cash equivalents	27,811	15,802
Marketable securities, available for sale	3,653	5,496
Restricted cash	7,356	4,148
Note receivable, net	12,355	10,423
Prepaid expenses and other assets	1,895	1,318
Assets held for sale	0	18,192
Total Assets	343,068	306,622
Liabilities and Stockholders' Equity
Notes payable, net	248,034	183,788
Accounts payable and accrued and other liabilities	5,154	3,717
Payables to related parties	3	6
Accrued property tax	3,677	2,326
Liabilities held for sale	0	13,686
Total liabilities	256,868	203,523
Commitments and Contingencies
Company's 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, 20.2 million and 22.2 million shares issued and outstanding, respectively	2	2
Additional paid-in-capital	189,217	204,912
Accumulated other comprehensive income	144	111
Accumulated deficit	(101,380)	(102,404)
Total Company's stockholders' equity	87,983	102,621
Noncontrolling interests	(1,783)	478
Total Stockholders' Equity	86,200	103,099
Total Liabilities and Stockholders' Equity	$ 343,068	$ 306,622

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
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)	20,200,000	22,200,000
Common stock, shares outstanding (in shares)	20,200,000	22,200,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Operations and Comprehensive Income
Rental revenues	$ 10,185	$ 9,575	$ 29,662	$ 27,619
Expenses
Property operating expenses	3,694	3,622	9,749	9,494
Real estate taxes	1,496	1,412	4,161	3,844
General and administrative	1,634	1,514	4,745	4,658
Depreciation and amortization	3,145	3,402	9,067	9,851
Total operating expenses	9,969	9,950	27,722	27,847
Operating income/(loss)	216	(375)	1,940	(228)
Interest expense, net	(2,556)	(2,494)	(7,087)	(6,753)
Interest income	465	503	1,402	1,163
Gain on sale of investment property	0	0	5,474	0
Other income, net	196	124	522	452
Net (loss)/income	(1,679)	(2,242)	2,251	(5,366)
Net loss/(income) attributable to noncontrolling interests	5	78	(1,227)	94
Net (loss)/income attributable to the Company's shares	$ (1,674)	$ (2,164)	$ 1,024	$ (5,272)
Weighted average shares outstanding:
Basic and diluted	20,201	22,680	20,925	23,058
Basic and diluted (loss)/income per share	$ (0.08)	$ (0.10)	$ 0.05	$ (0.23)
Comprehensive (loss)/income
Net (loss)/income	$ (1,679)	$ (2,242)	$ 2,251	$ (5,366)
Other comprehensive (loss)/ income:
Holding (loss)/gain on marketable securities, available for sale	(4)	24	96	249
Reclassification adjustment for (gain)/loss included in net (loss)/income	(11)		(63)	54
Foreign currency translation loss				(35)
Total other comprehensive (loss)/ income	(15)	24	33	268
Comprehensive (loss)/income:	(1,694)	(2,218)	2,284	(5,098)
Comprehensive loss/(income) attributable to noncontrolling interests	5	78	(1,227)	94
Comprehensive (loss)/income attributable to the Company's shares	$ (1,689)	$ (2,140)	$ 1,057	$ (5,004)

Consolidated Statements of Stoc

Consolidated Statements 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 Interests	Total
BALANCE at Dec. 31, 2018		$ 2	$ 214,537	$ (217)	$ (95,295)	$ 794	$ 119,821
BALANCE (in shares) at Dec. 31, 2018	1	23,432
Net income/(loss)					(5,272)	(94)	(5,366)
Distributions paid to noncontrolling interests						(179)	(179)
Redemption and cancellation of shares			(7,367)				(7,367)
Redemption and cancellation of shares (in shares)		(932)
Contributions received from noncontrolling interests						30	30
Other comprehensive (loss)/ income:
Holding gain on marketable securities, available for sale	$ 0	$ 0	0	249	0	0	249
Foreign currency translation loss				(35)			(35)
Reclassification adjustment for (gain)/loss on sale of marketable securities included in net loss				54			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 income/(loss)					(2,164)	(78)	(2,242)
Distributions paid to noncontrolling interests						(17)	(17)
Redemption and cancellation of shares			(2,500)				(2,500)
Redemption and cancellation of shares (in shares)		(311)
Contributions received from noncontrolling interests	$ 0	$ 0	0	0	0	(3)	(3)
Other comprehensive (loss)/ income:
Holding gain on marketable securities, available for sale	0	0	0	24	0	0	24
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 Dec. 31, 2019		$ 2	204,912	111	(102,404)	478	103,099
BALANCE (in shares) at Dec. 31, 2019	1	22,223
Net income/(loss)					1,024	1,227	2,251
Distributions paid to noncontrolling interests						(3,488)	(3,488)
Tender of common stock			(15,695)				(15,695)
Tender of common stock (in shares)		(2,030)
Other comprehensive (loss)/ income:
Holding gain on marketable securities, available for sale	$ 0	$ 0	0	96	0	0	96
Reclassification adjustment for (gain)/loss on sale of marketable securities included in net loss				(63)			(63)
BALANCE at Sep. 30, 2020	$ 0	$ 2	189,217	144	(101,380)	(1,783)	86,200
BALANCE (in shares) at Sep. 30, 2020	1	20,193
BALANCE at Jun. 30, 2020		$ 2	189,311	159	(99,706)	(1,567)	88,199
BALANCE (in shares) at Jun. 30, 2020	1	20,220
Net income/(loss)					(1,674)	(5)	(1,679)
Distributions paid to noncontrolling interests						(211)	(211)
Tender of common stock			(94)				(94)
Tender of common stock (in shares)		(27)
Other comprehensive (loss)/ income:
Holding gain on marketable securities, available for sale	$ 0	$ 0	0	(4)	0	0	(4)
Reclassification adjustment for (gain)/loss on sale of marketable securities included in net loss				(11)			(11)
BALANCE at Sep. 30, 2020	$ 0	$ 2	$ 189,217	$ 144	$ (101,380)	$ (1,783)	$ 86,200
BALANCE (in shares) at Sep. 30, 2020	1	20,193

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)	$ 2,251	$ (5,366)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization	9,067	9,851
Amortization of deferred financing fees	432	464
Gain on sale of investment property	(5,474)	0
Non-cash interest income	(1,295)	(719)
Other non-cash adjustments	(63)	66
Changes in operating assets and liabilities:
(Increase)/decrease in prepaid expenses and other assets	(93)	2,843
Increase in accounts payable and accrued and other liabilities	1,461	2,191
Decrease in payables to related parties	(3)	(300)
Net cash provided by operating activities	6,283	9,030
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(48,035)	(77,971)
Purchases of marketable securities	(1,280)	(2,247)
Proceeds from sale of marketable securities	3,220	11,450
Funding of note receivable, net	(636)	(7,771)
Acquisition fee paid on note receivable		(175)
Proceeds from sale of investment property, net of closing costs	23,673
Proceeds from disposition of investment in unconsolidated joint venture		10,944
Net cash used in investing activities	(23,058)	(65,770)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable	65,620	72,214
Payments on notes payable	(12,862)	(619)
Proceeds from advance from advisor	25,000
Payments on advance from advisor	(25,000)
Payment of loan fees and expenses	(1,583)	(1,428)
Tender of common stock	(15,695)
Redemption and cancellation of common stock		(7,367)
Contributions received from noncontrolling interests		30
Distributions to noncontrolling interests	(3,488)	(179)
Net cash provided by financing activities	31,992	62,651
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(35)
Net change in cash, cash equivalents and restricted cash	15,217	5,876
Cash, cash equivalents and restricted cash, beginning of year	19,950	32,652
Cash, cash equivalents and restricted cash, end of period	35,167	38,528
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	6,538	3,934
Capital expenditures for real estate in accrued liabilities and accounts payable	259	279
Holding gain on marketable securities, available for sale	33	303
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	27,811	33,958
Restricted cash	7,356	4,570
Total cash, cash equivalents and restricted cash	$ 35,167	$ 38,528

Business and Organization

Business and Organization	9 Months Ended
	Sep. 30, 2020
Business and Organization
Business and Organization	1. Business and 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. We currently have one operating segment. As of September 30, 2020, we had eight real estate investments (five wholly owned properties and three 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, a limited partnership organized in Delaware (the “Operating Partnership”). As of September 30, 2020, 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, 2020, 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. Lightstone is majority owned by the chairman of our board of directors, David Lichtenstein. 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. Organization 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. The 1,000 shares of convertible stock were transferred to an affiliate of Lightstone on February 10, 2017 and remain outstanding as of September 30, 2020. 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. Our board of directors previously targeted June 30, 2023 as the commencement of a liquidity event, however, on January 9, 2020, our board of directors elected to extend the targeted timeline until June 30, 2028 based on their assessment of our investment objectives and liquidity options for our stockholders. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
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, 2019, which was filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2020. 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, 2019 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 (see Note 7). 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. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to impose various restrictions and other measures, including, but not limited to, mandatory closures, quarantines, limitations on travel, “shelter in place” rules and certain other measures in an effort to reduce its duration and spread. The COVID-19 pandemic has continued to evolve and while most states have initiated a phased approach allowing for reductions and/or lifting of restrictions, the situation remains highly unpredictable and dynamic. The Company’s consolidated portfolio of properties currently consists of seven multi-family apartment complexes and one student housing complex. Despite past and current restrictions and mitigation strategies, the Company’s multi-family properties still have not yet seen any significant impact from the COVID-19 pandemic. The Company’s student housing complex, which consists of the River Club Apartments and the Townhomes at River Club, are located in Athens, Georgia and principally serve as “off-campus” lodging for students attending the University of Georgia (“UGA”). Leases for the River Club Apartments and Townhomes at River Club generally have a term of one year running from August through July. UGA previously transitioned to online instruction during its Spring 2020 semester and for its other course offerings throughout the summer. However, UGA returned to "on-campus" classes for its Fall 2020 semester which are currently taking place. The Company’s student housing complex is located “off-campus” and therefore, its tenants are not required to vacate even if UGA does not conduct “on-campus” classes. However, if UGA decides to return to online instruction for its students in lieu of “on-campus” classes in future semesters, it could adversely impact leasing demand, occupancy levels and the operating results of the Company’s student housing complex in future periods. Additionally, the Company’s note receivable relates to a condominium development project located in New Yok City (the “Condominium Project”), which is subject to similar restrictions and risks. To date, the Company's note receivable has not been significantly impacted by the COVID-19 pandemic. While the Company's business has not yet seen any material impact from the COVID-19 pandemic, the extent to which it may be affected in future periods remains highly uncertain and cannot be reasonably predicted. If the Company's properties and real estate-related investments are negatively impacted in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) demand for its student housing complex declines, and (iii) its borrower is unable to pay scheduled debt service on the outstanding note receivable; the Company's business and financial results could be materially and adversely impacted. While the Company has implemented various cost reduction strategies, including the deferral of certain non-critical capital expenditures, there can be no assurance that these cost savings will fully mitigate the potential adverse impact of any lost revenue and income. COVID-19 Lease Modification Accounting Relief Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, many lessors may be required to provide rent deferrals and other lease concessions to lessees. While the lease modification guidance addresses routine changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the sudden liquidity constraints of some lessees arising from the COVID-19 pandemic and restrictions intended to prevent its spread. In April 2020, the Financial Accounting Standards Board ("FASB") staff issued a question and answer document (the "Lease Modification Q&A") focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing GAAP, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2020, the Company had not entered into any lease modification agreements with any of its tenants as a result of the COVID-19 pandemic. Accordingly, the Company is still evaluating the impact of this policy election and has not yet concluded on whether it will apply the election. 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, 2020
Real Estate Asset Acquisition
Real Estate Asset Acquisition	3. Real Estate Asset Acquisition Autumn Breeze Apartments On March 17, 2020, the Company completed the acquisition of a 280‑unit multifamily property located in Noblesville, Indiana (the “Autumn Breeze Apartments”) from an unrelated third party, for an aggregate purchase price of approximately $43.0 million, excluding closing and other related transaction costs. In connection with the acquisition, the Company paid the Advisor an aggregate of approximately $0.8 million in acquisition fees and acquisition expense reimbursements. 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 $7.2 million was allocated to land and improvements, $36.0 million was allocated to building and improvements, and $0.6 million was allocated to in-place lease intangibles. The capitalization rate for the acquisition of the Autumn Breeze Apartments was approximately 4.86%. 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 twelve months ended February 29, 2020. 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, 2020
Note Receivable
Note Receivable	4. Note Receivable 500 West 22nd Street Mezzanine Loan On February 28, 2019, the Company, as the lender, and an unrelated third party (the "500 West 22nd Street Mezzanine Loan Borrower"), as the borrower, entered into a loan promissory note (the “500 West 22nd Street Mezzanine Loan”) pursuant to which the Company would fund up to $12.0 million of mezzanine financing. On the same date, the Company initially funded $8.0 million of the 500 West 22nd Street Mezzanine Loan. Subsequently, through the first quarter of 2020, the Company funded an additional $4.0 million and as a result, the 500 West 22nd Street Mezzanine Loan has been fully funded. 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. The acquisition fees are accounted for as an addition to the carrying value of the 500 West 22nd Street Mezzanine Loan and are being amortized as a reduction to interest income over the initial term of the 500 West 22nd Street Mezzanine Loan using a straight-line method that approximates the effective interest method. The 500 West 22nd Street Mezzanine Loan is due August 31, 2021 and is collateralized by the ownership interests of the 500 West 22nd Street Mezzanine Loan Borrower. The 500 West 22nd Street Mezzanine Loan Borrower owns a parcel of land located at 500 West 22nd Street, New York, New York on which it is developing and constructing the Condominium Project. Although New York City previously restricted certain non-essential construction activities because of the COVD-19 pandemic, which led to a temporarily suspension of construction of the Condominium Project, construction activities for the Condominium Project resumed in early May and its anticipated construction timeline has not been significantly impacted to date. The 500 West 22nd 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, 2020). 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 22nd 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 22nd Street Mezzanine Loan may be extended two additional six-month periods by the 500 West 22nd 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 22nd 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 22nd 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, 2020, approximately $1.5 million of the reserve has been recognized as interest income and the remaining balance of the reserve was approximately $0.6 million as of September 30, 2020. 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, 2020, approximately $1.0 million of additional interest due is included in the balance of the 500 West 22nd Street Mezzanine Loan. During the three and nine months ended September 30, 2020, the Company recorded approximately $0.5 million and $1.3 million, respectively, of interest income related to the note receivable and during the three and nine months ended September 30, 2019, the Company recorded approximately $0.3 million and $0.7 million, respectively, of interest income related to the note receivable. As of September 30, 2020, the outstanding principal balance of the 500 West 22nd Street Mezzanine Loan was approximately $12.4 million.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2020
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, 2020 and December 31, 2019, 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, 2020 and December 31, 2019. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of September 30, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Notes payable $ 252,159 $ 254,945 $ 186,761 $ 187,304

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
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, 2020 Gross Unrealized Gross Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,509 $ 145 $ (1) $ 3,653 As of December 31, 2019 Gross Unrealized Gross Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,385 $ 113 $ (2) $ 5,496 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, 2020, 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, 2020, 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, 2020. 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, 2020 Due in 1 year $ 517 Due in 1 year through 5 years 3,136 Due in 5 years through 10 years — Due after 10 years — Total $ 3,653

Held for Sale and Disposition o

Held for Sale and Disposition of Gardens Medical Pavilion	9 Months Ended
	Sep. 30, 2020
Held for Sale and Disposition of Gardens Medical Pavilion
Held for Sale and Disposition of Gardens Medical Pavilion	7. Held for Sale and Disposition of Gardens Medical Pavilion Gardens Medical Pavilion On December 23, 2019, the Company and its noncontrolling member, and CPI/AHP Garden Medical Pavilion Mob Owner, L.L.C. (the "Gardens Medical Pavilion Buyer"), an unaffiliated third party, entered into a purchase and sale agreement (the "Gardens Medical Pavilion Agreement") pursuant to which the Company and the noncontrolling member would dispose of the Gardens Medical Pavilion to the Gardens Medical Pavilion Buyer for an aggregate contractual sales price of $24.3 million. As of December 31, 2019, the Gardens Medical Pavilion met the criteria to be classified as held for sale and therefore, its associated assets and liabilities are classified as held for sale in the consolidated balance sheet as of December 31, 2019. On January 15, 2020, the Company and the noncontrolling member completed the disposition of the Gardens Medical Pavilion for a contractual sales price of $24.3 million. In connection with the disposition of the Gardens Medical Pavilion, the Company recognized a gain on the sale of investment property of approximately $5.5 million during the first quarter of 2020. Approximately $12.6 million of the proceeds were used towards the repayment in full of a mortgage loan secured by the Gardens Medical Pavilion. Additionally, approximately $1.8 million of the remaining proceeds were distributed to the noncontrolling member. The following summary presents the major components of the Gardens Medical Pavilion's assets and liabilities held for sale as of December 31, 2019: As of December 31, 2019 Net investment property $ 17,448 Other assets 744 Total assets held for sale $ 18,192 Note payable, net 12,441 Accounts payable and accrued expenses 1,245 Total liabilities held for sale $ 13,686 Lakes of Margate Beginning with the fourth quarter of 2019, Lakes of Margate met the criteria to be classified as held for sale and therefore, its associated assets and liabilities, which were expected to be sold within 12 months, were previously classified as held for sale in the consolidated balance sheets as of both March 31, 2020 and December 31, 2019. However, because of the COVID-19 pandemic the Company subsequently decided during the second quarter of 2020 to discontinue its marketing efforts and to retain the property for the foreseeable future. Additionally, the Company obtained a new 10-year mortgage financing on the property, which previously was unencumbered, on June 26, 2020 (see Note 8). As a result, the Company determined the property should no longer be classified as held for sale effective as of June 30, 2020 because a sale was no longer considered probable within the next 12 months. Since the fair value of the property was in excess of the Company's carrying value, the Company recorded catch-up depreciation for the period the property was previously classified as held for sale. In addition, the Company is no longer classifying the long-lived asset as held for sale for all periods presented on the consolidated balance sheets.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2020
Notes Payable
Notes Payable	8. 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, 2020 Maturity Date Maturity September 30, 2020 December 31, 2019 River Club and the Townhomes at River Club LIBOR + 1.78% 1.93 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Lakes of Margate LIBOR + 2.98% 3.14 % July 1, 2030 32,702 35,700 — Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % June 1, 2025 15,782 17,366 17,588 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Valley Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 28,800 Autumn Breeze Apartments 3.39% 3.39 % April 1, 2030 25,518 29,920 — Total notes payable 3.71 % $ 235,268 252,159 186,761 Less: Deferred financing costs (4,125) (2,973) Total notes payable, net $ 248,034 $ 183,788 On March 31, 2020, the Company entered into a ten-year $29.9 million non-recourse mortgage loan (the "Autumn Breeze Apartments Loan") scheduled to mature on April 1, 2030. The Autumn Breeze Apartments Loan bears interest at 3.39% and requires monthly interest-only payments through June 30, 2023 and monthly principal and interest payments of approximately $0.1 million thereafter, through its stated maturity. The Autumn Breeze Apartments Loan is collateralized by the Autumn Breeze Apartments. In connection with the Autumn Breeze Apartments Loan, the Company paid the Advisor an aggregate of approximately $0.3 million in financing fees. On June 26, 2020, the Company and its noncontrolling member entered into a ten-year, $35.7 million non-recourse mortgage loan (the "Lakes of Margate Loan") scheduled to mature on July 1, 2030. The Lakes of Margate Loan bears interest at LIBOR + 2.98% and requires monthly interest-only payments through the first four years of the term and thereafter, monthly payments of principal and interest based upon a 30-year amortization. The Lakes of Margate Loan is collateralized by the Lakes of Margate. In connection with the Lakes of Margate Loan, the Company paid the Advisor an aggregate of approximately $0.4 million in financing fees. Additionally, approximately $1.4 million of the financing proceeds were distributed to the noncontrolling member. 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. The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company's indebtedness as of September 30, 2020. 2020 2021 2022 2023 2024 Thereafter Total Principal maturities $ 77 $ 1,023 $ 1,468 $ 2,498 $ 3,490 $ 243,603 $ 252,159 Less: deferred financing costs (4,125) Total notes payable, net $ 248,034

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity
Stockholders' Equity	9. Stockholders’ Equity 2020 Tender Offer The Company commenced a tender offer on June 16, 2020, pursuant to which it offered to acquire up to 300,000 shares of its common stock at a purchase price of $2.25 per share, or approximately $0.7 million in the aggregate (the "2020 Tender Offer"). The 2020 Tender Offer terminated on July 24, 2020, and a total of 26,637 shares were validly tendered and not withdrawn pursuant to the 2020 Tender Offer as of such date. In accordance with the terms of the 2020 Tender Offer, the Company subsequently repurchased all of the tendered shares for approximately $0.1 million in August 2020. 2019 Tender Offer The Company commenced a tender offer on December 17, 2019, pursuant to which it offered to acquire up to 2.0 million shares of its common stock at a purchase price of $7.75 per share, or $15.5 million in the aggregate (the “2019 Tender Offer”). The 2019 Tender Offer terminated on February 28, 2020, and a total of 2,183,888 shares were validly tendered and not withdrawn pursuant to the 2019 Tender Offer as of such date, an amount that exceeded the maximum number of shares the Company offered to purchase pursuant to the 2019 Tender Offer. In accordance with the terms of the 2019 Tender Offer, the Company subsequently repurchased a total of approximately 2.0 million shares for approximately $15.6 million in April 2020. Because the amount of repurchase requests exceeded the maximum number of shares the Company had offered to repurchase, the Company repurchased shares on a pro-rata basis, subject to “odd lot” priority as described in the 2019 Tender Offer. Excluding the stockholders eligible for “odd lot” priority that were not be subject to proration, approximately 91.58% of the number of shares tendered by each remaining stockholder who participated in the 2019 Tender Offer were repurchased by the Company. Share Redemption Program and Redemption Price The Company’s board of directors has adopted a share redemption program (the “SRP”) that permits stockholders to sell their shares back to it, subject to the significant conditions and limitations of the program. The Company’s board of directors can amend the provisions of the SRP at any time without the approval of the stockholders. On August 9, 2017, the board of directors adopted a Fourth Amended and Restated Share Redemption Program (the “Fourth Amended SRP”) which became effective July 1, 2018. The Fourth Amended SRP established that the price at which the Company would redeem shares submitted for redemption will be a percentage of the estimated net asset value per share (“NAV per Share”) as of the Effective Date, as defined, as follows: For Redemptions with an Effective Date Between July 1, 2018 and June 30, 2019: 92.5% of the estimated NAV per Share July 1, 2019 and June 30, 2020: 95.0% of the estimated NAV per Share July 1, 2020 and June 30, 2021: 97.5% of the estimated NAV per Share Thereafter: 100% of the estimated NAV per Share Pursuant to the terms of the Fourth Amended SRP, any shares approved for redemption are redeemed on a periodic basis as determined from time to time by the Company’s board of directors, and no less frequently than annually. The Company will not redeem, during any twelve-month period, more than 5% of the weighted average number of shares outstanding during the twelve-month period immediately prior to the date of redemption. In addition, the cash available for redemptions is limited to no more than $10.0 million in any twelve-month period. Any redemption requests are honored pro rata among all requests received based on funds available and are not honored on a first come, first served basis. On December 28, 2018, the Company’s board of directors adopted a Fifth Amended and Restated Share Redemption Program (the “Fifth Amended SRP”) which became effective on January 31, 2019. The only material change to the program was to change the measurement period for the limitations on the number and dollar amount of shares that may be accepted for redemption from a rolling 12 month-period to a calendar year. In accordance with the Company’s Fifth Amended SRP, the per share redemption price automatically adjusted to $8.64 effective November 7, 2019 as a result of the determination and approval by the Company’s board of directors of the updated estimated NAV per Share. On December 13, 2019, the Company’s board of directors approved the suspension of the SRP. Pursuant to the terms of the SRP, while the SRP is suspended, the Company will not accept any requests for redemption. 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 the Company's board of directors based on their analysis of the Company's 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 the Company's portfolio, capital expenditure needs, general financial and market conditions, proceeds from asset sales, and other factors that the Company's board of directors deems relevant. The Company's board of director’s decisions will be substantially influenced by the obligation to ensure that the Company maintains its federal tax status as a REIT. The Company cannot provide assurance that it will pay distributions at any particular level, or at all.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2020
Related Party Transactions
Related Party Transactions	10. Related Party Transactions The Company has agreements with the Advisor providing for the payment of certain fees and reimbursement of administrative services costs (the “Administrative Services Reimbursement”) in exchange for services performed and costs incurred by the Advisor and/or its affiliated entities. Amounts the Company owes to the Advisor and its affiliated entities, which are principally for these fees and the Administrative Services Reimbursement, are classified as payables to related parties on the consolidated balance sheets. On June 10, 2020, the advisory management agreements were extended an additional year through June 10, 2021. For the period June 11, 2020 through June 10, 2021, the Administrative Services Reimbursement is limited to the lesser of the actual costs incurred or $1.33 million. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Acquisition fees and acquisition expense reimbursement (1) $ — $ 17 $ 764 $ 1,404 Debt financing fees (2) — — 656 722 Property management fees (property operating expenses) 123 131 350 337 Administrative services reimbursement (general and administrative costs) 333 328 989 972 Asset management fees (general and administrative costs) 691 624 2,014 1,792 Total $ 1,147 $ 1,100 $ 4,773 $ 5,227 (1) (2) Advance from Advisor On March 16, 2020, the Advisor provided an advance of $25.0 million to the Company that bore interest at a fixed-rate of 5.00%. On March 31, 2020, the Company repaid $15.0 million of the advance and on June 29, 2020, the Company repaid the remaining $10.0 million of the advance and aggregate accrued interest of $0.2 million. Approximately $0.2 million of interest expense was incurred on the advance during the nine months ended September 30, 2020.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	11. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
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, 2019, which was filed with the Securities and Exchange Commission (the “SEC”) on March 30, 2020. 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, 2019 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 (see Note 7).
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.
COVID-19 Pandemic	COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to impose various restrictions and other measures, including, but not limited to, mandatory closures, quarantines, limitations on travel, “shelter in place” rules and certain other measures in an effort to reduce its duration and spread. The COVID-19 pandemic has continued to evolve and while most states have initiated a phased approach allowing for reductions and/or lifting of restrictions, the situation remains highly unpredictable and dynamic. The Company’s consolidated portfolio of properties currently consists of seven multi-family apartment complexes and one student housing complex. Despite past and current restrictions and mitigation strategies, the Company’s multi-family properties still have not yet seen any significant impact from the COVID-19 pandemic. The Company’s student housing complex, which consists of the River Club Apartments and the Townhomes at River Club, are located in Athens, Georgia and principally serve as “off-campus” lodging for students attending the University of Georgia (“UGA”). Leases for the River Club Apartments and Townhomes at River Club generally have a term of one year running from August through July. UGA previously transitioned to online instruction during its Spring 2020 semester and for its other course offerings throughout the summer. However, UGA returned to "on-campus" classes for its Fall 2020 semester which are currently taking place. The Company’s student housing complex is located “off-campus” and therefore, its tenants are not required to vacate even if UGA does not conduct “on-campus” classes. However, if UGA decides to return to online instruction for its students in lieu of “on-campus” classes in future semesters, it could adversely impact leasing demand, occupancy levels and the operating results of the Company’s student housing complex in future periods. Additionally, the Company’s note receivable relates to a condominium development project located in New Yok City (the “Condominium Project”), which is subject to similar restrictions and risks. To date, the Company's note receivable has not been significantly impacted by the COVID-19 pandemic. While the Company's business has not yet seen any material impact from the COVID-19 pandemic, the extent to which it may be affected in future periods remains highly uncertain and cannot be reasonably predicted. If the Company's properties and real estate-related investments are negatively impacted in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) demand for its student housing complex declines, and (iii) its borrower is unable to pay scheduled debt service on the outstanding note receivable; the Company's business and financial results could be materially and adversely impacted. While the Company has implemented various cost reduction strategies, including the deferral of certain non-critical capital expenditures, there can be no assurance that these cost savings will fully mitigate the potential adverse impact of any lost revenue and income. COVID-19 Lease Modification Accounting Relief Due to the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, many lessors may be required to provide rent deferrals and other lease concessions to lessees. While the lease modification guidance addresses routine changes to lease terms resulting from negotiations between the lessee and the lessor, this guidance did not contemplate concessions being so rapidly executed to address the sudden liquidity constraints of some lessees arising from the COVID-19 pandemic and restrictions intended to prevent its spread. In April 2020, the Financial Accounting Standards Board ("FASB") staff issued a question and answer document (the "Lease Modification Q&A") focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under existing GAAP, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. As of September 30, 2020, the Company had not entered into any lease modification agreements with any of its tenants as a result of the COVID-19 pandemic. Accordingly, the Company is still evaluating the impact of this policy election and has not yet concluded on whether it will apply the election.
New Accounting Pronouncements	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, 2020
Financial Instruments
Schedule of Notes payable and the related estimated fair value	As of September 30, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Notes payable $ 252,159 $ 254,945 $ 186,761 $ 187,304

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Marketable Securities and Fair Value Measurements
Schedule of available-for-sale securities reconciliation	As of September 30, 2020 Gross Unrealized Gross Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,509 $ 145 $ (1) $ 3,653 As of December 31, 2019 Gross Unrealized Gross Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,385 $ 113 $ (2) $ 5,496
Schedule of available-for-sale securities	As of September 30, 2020 Due in 1 year $ 517 Due in 1 year through 5 years 3,136 Due in 5 years through 10 years — Due after 10 years — Total $ 3,653

Held for Sale and Disposition_2

Held for Sale and Disposition of Gardens Medical Pavilion (Tables)	9 Months Ended
	Sep. 30, 2020
Held for Sale and Disposition of Gardens Medical Pavilion
Schedule of components of assets and liabilities held for sale	As of December 31, 2019 Net investment property $ 17,448 Other assets 744 Total assets held for sale $ 18,192 Note payable, net 12,441 Accounts payable and accrued expenses 1,245 Total liabilities held for sale $ 13,686

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2020
Notes Payable
Schedule of information on notes payable	Weighted Average Interest Rate as of Amount Due at As of As of Property Interest Rate September 30, 2020 Maturity Date Maturity September 30, 2020 December 31, 2019 River Club and the Townhomes at River Club LIBOR + 1.78% 1.93 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Lakes of Margate LIBOR + 2.98% 3.14 % July 1, 2030 32,702 35,700 — Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % June 1, 2025 15,782 17,366 17,588 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Valley Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 28,800 Autumn Breeze Apartments 3.39% 3.39 % April 1, 2030 25,518 29,920 — Total notes payable 3.71 % $ 235,268 252,159 186,761 Less: Deferred financing costs (4,125) (2,973) Total notes payable, net $ 248,034 $ 183,788
Schedule of contractual obligations for principal payments	The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company's indebtedness as of September 30, 2020. 2020 2021 2022 2023 2024 Thereafter Total Principal maturities $ 77 $ 1,023 $ 1,468 $ 2,498 $ 3,490 $ 243,603 $ 252,159 Less: deferred financing costs (4,125) Total notes payable, net $ 248,034

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity
Schedule of Redemption Program	The Fourth Amended SRP established that the price at which the Company would redeem shares submitted for redemption will be a percentage of the estimated net asset value per share (“NAV per Share”) as of the Effective Date, as defined, as follows: For Redemptions with an Effective Date Between July 1, 2018 and June 30, 2019: 92.5% of the estimated NAV per Share July 1, 2019 and June 30, 2020: 95.0% of the estimated NAV per Share July 1, 2020 and June 30, 2021: 97.5% of the estimated NAV per Share Thereafter: 100% of the estimated NAV per Share

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2020
Related Party Transactions
Schedule of fees incurred associated with the payments to the Company's Advisor	For the Three Months Ended September 30, For the Nine Months Ended September 30, 2020 2019 2020 2019 Acquisition fees and acquisition expense reimbursement (1) $ — $ 17 $ 764 $ 1,404 Debt financing fees (2) — — 656 722 Property management fees (property operating expenses) 123 131 350 337 Administrative services reimbursement (general and administrative costs) 333 328 989 972 Asset management fees (general and administrative costs) 691 624 2,014 1,792 Total $ 1,147 $ 1,100 $ 4,773 $ 5,227 (1) (2)

Business and Organization - Add

Business and Organization - Additional Information (Details) - shares	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Jan. 19, 2007
Organization
Common stock, shares issued (in shares)	20,200,000	22,200,000
Convertible stock issued (in shares)	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 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	Mar. 17, 2020	Feb. 29, 2020
Land and Improvements
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	$ 7.2
Building and Building Improvements [Member]
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	36
Other Assets [Member]
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	0.6
Autumn Breeze Apartments
Real Estate Properties [Line Items]
Business Combination, Consideration Transferred	43
Business Combination, Acquisition Related Costs	$ 0.8
Capitalization Rate		4.86%

Note Receivable (Details)

Note Receivable (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
	Feb. 28, 2019	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Payments to Acquire Notes Receivable					$ 636	$ 7,771
Note receivable		$ 12,355			12,355		$ 10,423
Mezzanine Loan Promissory Note [Member]
Debt Instrument, Face Amount	$ 12,000	1,000			1,000
Payments to Acquire Notes Receivable	$ 8,000		$ 4,000
Debt Instrument, Unfunded		1,500			1,500
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				$ 600
Utilization Of Interest Reserve Percentage On Interest Due	8.00%				8.00%
Investment Income, Interest		500		$ 300	$ 1,300	$ 700
Note receivable		$ 12,400			$ 12,400

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial Instruments
Notes payable, Carrying Amount	$ 252,159	$ 186,761
Notes payable, Estimated Fair Value	$ 254,945	$ 187,304

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, 2020	Dec. 31, 2019
Fair Value	$ 3,653	$ 5,496
Corporate and Government Bonds
Adjusted Cost	3,509	5,385
Gross Unrealized Gains	145	113
Gross Unrealized Losses	(1)	(2)
Fair Value	$ 3,653	$ 5,496

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, 2020	Dec. 31, 2019
Marketable Securities and Fair Value Measurements
Due in 1 year	$ 517
Due in 1 year through 5 years	3,136
Due in 5 years through 10 years	0
Due after 10 years	0
Total	$ 3,653	$ 5,496

Held for Sale and Disposition_3

Held for Sale and Disposition of Gardens Medical Pavilion (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 0	$ 18,192
Total liabilities held for sale	$ 0	13,686
Lakes of Margate | Held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net investment property		17,448
Other assets		744
Total assets held for sale		18,192
Note payable, net		12,441
Accounts payable and accrued expenses		1,245
Total liabilities held for sale		$ 13,686

Held for Sale and Disposition_4

Held for Sale and Disposition of Gardens Medical Pavilion - Additional Information (Details) - USD ($) $ in Thousands	Jan. 15, 2020	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 23, 2019
Held for Sale and Disposition of Gardens Medical Pavilion
Gain on sale of investment property		$ 0		$ 0	$ 5,474	$ 0
Gardens Medical Pavilion | Disposed of by sale
Held for Sale and Disposition of Gardens Medical Pavilion
Contractual sale price	$ 24,300						$ 24,300
Gain on sale of investment property			$ 5,500
Disposal Group, Including Discontinued Operation, Proceeds Utilized To Repay Mortgage Loan	12,600
Disposal Group, Including Discontinued Operation, Remaining Proceeds Distributed To Noncontrolling Interest	$ 1,800

Notes Payable - Information on

Notes Payable - Information on Notes Payable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Long-term Debt	$ 248,034
Less: Deferred financing costs	(4,125)
Total notes payable, net	$ 248,034	$ 183,788
Notes payable
Debt Instrument [Line Items]
Weighted Average Interest Rate	3.71%
Long-term Debt	$ 235,268
Total notes payable	252,159	186,761
Less: Deferred financing costs	$ (4,125)	(2,973)
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	1.93%
Debt Instrument, Maturity Date	May 1, 2025
Long-term Debt	$ 28,419
Total notes payable	$ 30,359	30,359
Lakes of Margate | Notes payable
Debt Instrument [Line Items]
Debt Instrument, Interest Rate	LIBOR + 2.98%
Weighted Average Interest Rate	3.14%
Debt Instrument, Maturity Date	Jul. 1, 2030
Long-term Debt	$ 32,702
Total notes payable	$ 35,700	0
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	Jun. 1, 2025
Long-term Debt	$ 15,782
Total notes payable	$ 17,366	17,588
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]
Interest rate (as a percent)	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	43,414
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	28,800
Autumn Breeze Apartments | Notes payable
Debt Instrument [Line Items]
Interest rate (as a percent)	3.39%
Weighted Average Interest Rate	3.39%
Debt Instrument, Maturity Date	Apr. 1, 2030
Long-term Debt	$ 25,518
Total notes payable	$ 29,920	$ 0

Notes Payable - Contractual Obl

Notes Payable - Contractual Obligations for Principal Payments (Details) $ in Thousands	Sep. 30, 2020USD ($)
Notes Payable
2020	$ 77
2021	1,023
2022	1,468
2023	2,498
2024	3,490
Thereafter	243,603
Total principal maturities	252,159
Less: Deferred financing costs	(4,125)
Total notes payable, net	$ 248,034

Notes Payable - Additional Info

Notes Payable - Additional Information (Details) - USD ($) $ in Millions	Jun. 26, 2020	Mar. 31, 2020
Autumn Breeze Apartment Loan [Member]
Debt Instrument [Line Items]
Total notes payable		$ 29.9
Debt Instrument, Basis Spread on Variable Rate		3.39%
Line of Credit Facility, Periodic Payment		$ 0.1
Debt Instrument, Maturity Date		Apr. 1, 2030
Debt Instrument, Fee Amount		$ 0.3
Lakes of Margate
Debt Instrument [Line Items]
Total notes payable	$ 35.7
Payments to Acquire Additional Interest in Subsidiaries	$ 1.4
Debt Instrument, Description of Variable Rate Basis	LIBOR + 2.98%
Debt Instrument, Maturity Date	Jul. 1, 2030
Debt Instrument, Fee Amount	$ 0.4

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Estimated Net Asset Value Per Share as of Effective Date (Details)	Sep. 30, 2020
July 1, 2018 and June 30, 2019 [Member]
Share Redemption Program Redemption Price Percentage Of Share Price	92.50%
July 1, 2019 and June 30, 2020 [Member]
Share Redemption Program Redemption Price Percentage Of Share Price	95.00%
July 1, 2020 and June 30, 2021 [Member]
Share Redemption Program Redemption Price Percentage Of Share Price	97.50%
Thereafter [Member]
Share Redemption Program Redemption Price Percentage Of Share Price	100.00%

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Dec. 17, 2019	Dec. 28, 2018	Aug. 31, 2020	Apr. 30, 2020	Sep. 30, 2020	Jul. 24, 2020	Jun. 16, 2020	Feb. 28, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Common stock, par value (in dollars per share)					$ 0.0001				$ 0.0001
Share repurchase program, cash available for redemption					$ 10
Share redemption program, annual limitation, percentage of weighted average shares outstanding					5
Percentage of real estate investment trust taxable income					90.00%
Treasury Stock Acquired, Average Cost Per Share		$ 8.64
2020 Tender Offer
Class of Stock [Line Items]
Number of shares offered in a tender							300,000
Common stock, par value (in dollars per share)							$ 2.25
Aggregate value							$ 0.7
Number of shares validly tendered in the offer						26,637
Common stock redeemed (in shares)			100,000
2019 Tender Offer
Class of Stock [Line Items]
Number of shares offered in a tender	2,000,000
Common stock, par value (in dollars per share)	$ 7.75
Aggregate value	$ 15.5			$ 15.6
Number of shares validly tendered in the offer								2,183,888
Common stock redeemed (in shares)				2,000,000
Percentage of shares repurchased	91.58%

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - Advisor - USD ($) $ in Thousands	Jun. 29, 2020	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 11, 2021	Mar. 16, 2020
Related party transaction
Total			$ 1,147	$ 1,100	$ 4,773	$ 5,227
Administrative Services Costs Reimbursement Real Estate Management							$ 1,330
Loans from related party
Related party transaction
Loans from related party								$ 25,000
Repayment	$ 10,000	$ 15,000
Interest rate (as a percent)								5.00%
Interest on loan	$ 200				200
Acquisition fees and acquisition expense reimbursement
Related party transaction
Total				17	764	1,404
Debt financing fees
Related party transaction
Total					656	722
Property management fees (property operating expenses)
Related party transaction
Total			123	131	350	337
Administrative services reimbursement (general and administrative costs)
Related party transaction
Total			333	328	989	972
Asset management fees (general and administrative costs)
Related party transaction
Total			$ 691	$ 624	$ 2,014	$ 1,792