Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Nov. 10, 2014 |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Entity Registrant Name | 'LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC | ' |
Entity Central Index Key | '0001436975 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 18.4 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment property | ' | ' |
Land and improvements | $11,836 | $8,942 |
Building and improvements | 59,307 | 35,567 |
Furniture and fixtures | 13,472 | 8,706 |
Construction in progress | 376 | 3,542 |
Gross investment property | 84,991 | 56,757 |
Less accumulated depreciation | -5,093 | -2,670 |
Net investment property | 79,898 | 54,087 |
Investments in unconsolidated affiliated entity | 3,680 | 3,834 |
Cash and cash equivalents | 76,593 | 26,520 |
Marketable securities, available for sale | 18,357 | 8,134 |
Restricted escrows and deposits | 2,937 | 2,294 |
Due from sponsor | 29 | ' |
Prepaid expenses and other assets | 1,828 | 957 |
Total Assets | 183,322 | 95,826 |
Liabilities and Stockholders' Equity | ' | ' |
Accounts payable and other accrued expenses | 4,171 | 1,356 |
Margin loan | 6,290 | 1,906 |
Mortgages payable | 23,889 | 24,260 |
Due to sponsor | ' | 107 |
Distributions payable | 2,241 | 1,172 |
Total liabilities | 36,591 | 28,801 |
Commitments and contingencies (Note 10) | ' | ' |
Company's stockholders' equity: | ' | ' |
Preferred shares, $0.01 par value, 10,000 shares authorized, none issued and outstanding | ' | ' |
Common stock, $0.01 par value; 100,000 shares authorized, 18,380 and 7,643 shares issued and outstanding in 2014 and 2013, respectively | 184 | 76 |
Additional paid-in capital | 156,873 | 60,755 |
Subscription receivable | -13,843 | -25 |
Accumulated other comprehensive income | 429 | 399 |
Accumulated deficit | -5,273 | -1,781 |
Total Company stockholders' equity | 138,370 | 59,424 |
Noncontrolling interests | 8,361 | 7,601 |
Total Stockholders' Equity | 146,731 | 67,025 |
Total Liabilities and Stockholders' Equity | $183,322 | $95,826 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS [Abstract] | ' | ' |
Preferred shares, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares issued | ' | ' |
Preferred stock, shares outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 18,380 | 7,643 |
Common stock, shares outstanding | 18,380 | 7,643 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | ' |
Rental revenue | $6,601 | $4,092 | $16,277 | $9,723 |
Expenses: | ' | ' | ' | ' |
Property operating expenses | 4,093 | 2,576 | 10,179 | 6,185 |
Real estate taxes | 232 | 176 | 566 | 471 |
General and administrative costs | 510 | 266 | 1,525 | 1,281 |
Depreciation and amortization | 932 | 584 | 2,427 | 1,271 |
Total operating expenses | 5,767 | 3,602 | 14,697 | 9,208 |
Operating income | 834 | 490 | 1,580 | 515 |
Interest and dividend income | 334 | 161 | 1,105 | 695 |
Bargain purchase gain | ' | 38 | ' | 1,263 |
Gain on sale of marketable securities | ' | ' | 112 | 10 |
Income/(loss) from investments in unconsolidated affiliated entities | 1 | -61 | -57 | 10 |
Interest expense | -334 | -462 | -992 | -858 |
Other income/(expense), net | 20 | 36 | -15 | -27 |
Net income | 855 | 202 | 1,733 | 1,608 |
Less: net income attributable to noncontrolling interests | -23 | -1 | -59 | -56 |
Net income applicable to Company's common shares | $832 | $201 | $1,674 | $1,552 |
Net income per Company's common share, basic and diluted | $0.06 | $0.03 | $0.16 | $0.26 |
Weighted average number of common shares outstanding, basic and diluted | 13,681 | 6,420 | 10,629 | 5,922 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ' | ' | ' | ' |
Net income | $855 | $202 | $1,733 | $1,608 |
Other comprehensive (loss)/income: | ' | ' | ' | ' |
Unrealized (loss)/gain on available for sale securities | -216 | 279 | 30 | 144 |
Reclassification adjustment for gains included in net income | ' | ' | ' | 5 |
Other comprehensive (loss)/income | -216 | 279 | 30 | 149 |
Comprehensive income | 639 | 481 | 1,763 | 1,757 |
Less: Comprehensive income attributable to noncontrolling interests | -23 | -1 | -59 | -56 |
Comprehensive income attributable to the Company's common shares | $616 | $480 | $1,704 | $1,701 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (USD $) | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Subscription Receivable [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
In Thousands | |||||||
BALANCE at Dec. 31, 2013 | $67,025 | $76 | $60,755 | ($25) | $399 | ($1,781) | $7,601 |
BALANCE, shares at Dec. 31, 2013 | ' | 7,643 | ' | ' | ' | ' | ' |
Net income | 1,733 | ' | ' | ' | ' | 1,674 | 59 |
Other comprehensive income | 30 | ' | ' | ' | 30 | ' | ' |
Distributions declared | -5,166 | ' | ' | ' | ' | -5,166 | ' |
Distributions paid to noncontrolling interests | -99 | ' | ' | ' | ' | ' | -99 |
Contributions from noncontrolling interests | 800 | ' | ' | ' | ' | ' | 800 |
Proceeds from offering | 90,834 | 107 | 104,545 | -13,818 | ' | ' | ' |
Proceeds from offering, shares | ' | 10,581 | ' | ' | ' | ' | ' |
Selling commissions and dealer manager fees | -9,390 | ' | -9,390 | ' | ' | ' | ' |
Other offering costs | -534 | ' | -534 | ' | ' | ' | ' |
Redemption and cancellation of shares | -555 | -1 | -554 | ' | ' | ' | ' |
Redemption and cancellation of shares, shares | ' | -60 | ' | ' | ' | ' | ' |
Shares issued from distribution reinvestment program | 2,053 | 2 | 2,051 | ' | ' | ' | ' |
Shares issued from distribution reinvestment program, shares | ' | 216 | ' | ' | ' | ' | ' |
BALANCE at Sep. 30, 2014 | $146,731 | $184 | $156,873 | ($13,843) | $429 | ($5,273) | $8,361 |
BALANCE, shares at Sep. 30, 2014 | ' | 18,380 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $1,733 | $1,608 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 2,427 | 1,271 |
Amortization of deferred financing costs | 54 | 219 |
Gain on sale of marketable securities | -112 | -10 |
Bargain purchase gain | ' | -1,263 |
Loss/(income) from investments in unconsolidated affiliated entities | 57 | -10 |
Changes in assets and liabilities: | ' | ' |
Decrease in restricted escrows | ' | 157 |
Increase in prepaid expenses and other assets | -878 | -185 |
Increase in accounts payable and accrued expenses | 1,207 | 613 |
Decrease in due to sponsor | -136 | -54 |
Net cash provided by operating activities | 4,352 | 2,346 |
CASH FLOWS FORM INVESTING ACTIVITIES: | ' | ' |
Purchase of investment property, net | -28,284 | -15,616 |
Purchase of marketable securities | -19,774 | ' |
Proceeds from sale of marketable securities | 9,692 | 190 |
Collections on note receivable from affiliate | ' | 2,340 |
Distributions from unconsolidated affiliated entity | 97 | 2,103 |
(Funding)/release of restricted escrows | -643 | 925 |
Net cash used in investing activities | -38,912 | -10,058 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from note payable to affiliate, net | ' | 24,420 |
Payment on mortgages payable | -371 | -11,195 |
Payment of loan fees and expenses | ' | -339 |
Net proceeds/(payments) on margin loan | 4,384 | -654 |
Proceeds from issuance of common stock | 90,834 | 13,368 |
Payment of commissions and offering costs | -8,316 | -2,794 |
Contribution of noncontrolling interests | 800 | 1,058 |
Redemption and cancellation of common stock | -555 | -485 |
Notes receivable from affiliates | ' | -322 |
Distributions to noncontrolling interests | -99 | -20 |
Distributions to common stockholders | -2,044 | -1,402 |
Net cash provided by financing activities | 84,633 | 21,635 |
Net change in cash and cash equivalents | 50,073 | 13,923 |
Cash and cash equivalents, beginning of year | 26,520 | 8,152 |
Cash and cash equivalents, end of period | $76,593 | $22,075 |
Organization
Organization | 9 Months Ended | |
Sep. 30, 2014 | ||
Organization [Abstract] | ' | |
Organization | ' | |
1 | Organization | |
Lightstone Value Plus Real Estate Investment Trust II, Inc. (the "Lightstone REIT II") is a Maryland corporation formed on April 28, 2008, which has qualified as a real estate investment trust ("REIT") for U.S. federal income tax purposes since its taxable year ending December 31, 2009. The Lightstone REIT II was formed primarily for the purpose of engaging in the business of investing in and owning commercial and residential real estate properties located principally in North America, as well as other real estate-related securities, such as collateralized debt obligations, commercial mortgage-backed securities and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. | ||
The Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business is and will be conducted through Lightstone Value Plus REIT II LP (the "Operating Partnership"), a Delaware limited partnership formed on April 30, 2008. | ||
The Lightstone REIT II and the Operating Partnership are collectively referred to as the "Company" and the use of "we," "our," "us" or similar pronouns refers to the Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. | ||
The Company's sponsor is David Lichtenstein ("Lichtenstein"), who does business as The Lightstone Group (the "Sponsor") and majority owns the limited liability company of that name. The Company's advisor is Lightstone Value Plus REIT II LLC (the "Advisor"), which is wholly owned by our Sponsor. | ||
The Company's registration statement on Form S-11, pursuant to which it offered to sell up to 51,000,000 shares of its common stock at a price of $10.00 per share, subject to certain volume discounts, (exclusive of 6,500,000 shares which were available pursuant to its distribution reinvestment plan (the "DRIP") at an initial purchase price of $9.50 per share and 255,000 shares which were reserved for issuance under its Employee and Director Incentive Restricted Share Plan), was declared effective by the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933 on February 17, 2009, and on April 24, 2009 the Company commenced its initial public offering of common stock (the "Offering"). The Offering, which terminated on August 15, 2012, raised aggregate gross proceeds of approximately $49.8 million from the sale of approximately 5.0 million shares of common stock. After allowing for the payment of approximately $5.2 million in selling commissions and dealer manager fees and $4.5 million in organization and other offering expenses, the Offering generated aggregate net proceeds of approximately $40.1 million. In addition, through August 15, 2012 (the termination date of the Offering), the Company had issued approximately 0.3 million shares of common stock under its DRIP, representing approximately $2.9 million of additional proceeds. | ||
The Company's registration statement on Form S-11 (the "Follow-On Offering"), pursuant to which it is offering to sell up to 30,000,000 shares of its common stock for $10.00 per share, subject to certain volume discounts (exclusive of 2,500,000 shares available pursuant to its DRIP at an initial purchase price of $9.50 per share and 255,000 shares reserved for issuance under its Employee and Director Incentive Restricted Share Plan) was declared effective by SEC under the Securities Act of 1933 on September 27, 2012. The Follow-On Offering, which terminated on September 27,2014 raised aggregate gross proceeds of approximately $127.5 million from the sale of approximately 12.8 million shares of common stock. After allowing for the payment of approximately $11.5 million in selling commissions and dealer manager fees and $3.9 million in organization and other offering expenses, the Follow-On Offering generated aggregate net proceeds of approximately $112.1 million. | ||
Our DRIP Registration Statement on Form S-3D was filed and became effective under the Securities Act of 1933 on September 26, 2014. As of September 30, 2014, 6.0 million shares remain available for issuance under our DRIP. | ||
Effective September 27, 2012, Orchard Securities, LLC ("Orchard Securities") became the Dealer Manager of the Company's Follow-On Offering. | ||
As of September 30, 2014, the Advisor owned 20,000 shares of common stock which were issued on May 20, 2008 for $200, or $10.00 per share. In addition, as of September 30, 2009, the Company had reached the minimum offering under its Offering by receiving subscriptions of its common shares, representing gross offering proceeds of approximately $6.5 million, and effective October 1, 2009 investors were admitted as stockholders and the Operating Partnership commenced operations. Through September 27, 2014(the termination date of the Follow-On Offering), cumulative gross offering proceeds of $177.3 million were released to the Company. The Company invested the proceeds received from the Offering and from the Advisor in the Operating Partnership, and as a result, held a 99.9% general partnership interest as of September 30, 2014 in the Operating Partnership's common units. | ||
The Company's shares of common stock are not currently listed on a national securities exchange. The Company may seek to list its shares of common stock for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. In the event the Company does not obtain listing prior to the tenth anniversary of the completion or termination of its Offering, its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. | ||
Noncontrolling Interests | ||
The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership and (ii) certain interests in LVP Metairie JV LLC, LVP East Rutherford LLC, LVP TPS Little Rock Holdings LLC and LVP TPS Fayetteville Holdings LLC which are not owned by the Company. | ||
Partners of Operating Partnership | ||
On May 20, 2008, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The limited partner has the right to convert operating partnership units into cash or, at the option of the Company, an equal number of common shares of the Company, as allowed by the limited partnership agreement. | ||
Lightstone SLP II LLC, which is wholly owned by the Company's Sponsor committed to purchase subordinated profits interests in the Operating Partnership ("Subordinated Profits Interests") at a cost of $100,000 per unit for each $1.0 million in subscriptions up to ten percent of the proceeds from the primary shares under the Offering and the Follow-On Offering on a semi-annual basis beginning with the quarter ended June 30, 2010. Lightstone SLP II LLC had the option to purchase the Subordinated Profits Interests with either cash or an interest in real property of equivalent value. | ||
From our inception through September 30, 2014, the Company's Sponsor has made cash contributions of $2.4 million and elected to contribute equity interests totaling 48.6% in Brownmill, LLC ("Brownmill"), which were valued at $4.8 million, in exchange for a total of 72.0 Subordinated Profits Interests with an aggregate value of $7.2 million. See Note 4 for additional information on Brownmill. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
2 | Summary of Significant Accounting Policies | ||||||||
Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of September 30, 2014, the Lightstone REIT II had a 99.9% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. | |||||||||
The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and its Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | |||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. | |||||||||
The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. | |||||||||
Supplemental disclosure of cash flow information | |||||||||
For the Nine Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
Cash paid for interest | $ | 942 | $ | 629 | |||||
Distributions declared | $ | 5,166 | $ | 2,878 | |||||
Commissions and other offering costs accrued but not paid | $ | 1,734 | $ | 163 | |||||
Subscription receivable | $ | 13,818 | $ | 120 | |||||
Value of shares issued from distribution reinvestment program | $ | 2,053 | $ | 1,284 | |||||
Reclassifications | |||||||||
Certain prior period amounts may have been reclassified to conform to the current year presentation. | |||||||||
New Accounting Pronouncements | |||||||||
In April 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update providing new guidance on the requirements for reporting a discontinued operation. The update changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This update is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. The adoption of this standards update affects presentation only and, as such, will not have a material impact on the Company's consolidated financial statements. | |||||||||
In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. | |||||||||
Acquisitions
Acquisitions | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Acquisitions [Abstract] | ' | |||||||||||||||||
Acquisitions | ' | |||||||||||||||||
3 | Acquisitions | |||||||||||||||||
Holiday Inn - Opelika | ||||||||||||||||||
On April 1, 2014, the Company completed the acquisition of an 87-room select service hotel located in Opelika, Alabama (the "Holiday Inn — Opelika"), from an unrelated third party. The Holiday Inn — Opelika operates as a "Holiday Inn Express Hotel & Suites" pursuant to a 15-year franchise agreement with the International Hotel Group. | ||||||||||||||||||
The aggregate purchase price for the Holiday Inn — Opelika was approximately $6.9 million. The acquisition was funded with cash. Additionally, in connection with the acquisition, our advisor received an acquisition fee equal to 0.95% of the contractual purchase price of $6.9 million, or approximately $66. | ||||||||||||||||||
The acquisition of the Holiday Inn — Opelika was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Holiday Inn — Opelika has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $1.0 million was allocated to land and improvements, $5.3 million was allocated to building and improvements, and $0.6 million was allocated to furniture and fixtures and other assets. | ||||||||||||||||||
The aggregate capitalization rate for the Holiday Inn — Opelika as of the closing of the acquisition was approximately 9.8%. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the projected or budgeted net operating income based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | ||||||||||||||||||
Aloft - Tucson | ||||||||||||||||||
On April 8, 2014, the Company completed the acquisition of a 154-room select service hotel located in Tucson, Arizona (the "Aloft — Tucson"), from an unrelated third party. The Aloft — Tucson operates as an "Aloft" pursuant to a 20-year franchise agreement with Sheraton LLC, or Starwood. | ||||||||||||||||||
The aggregate purchase price for the Aloft - Tucson was approximately $19.0 million. The acquisition was funded with cash. Additionally, in connection with the acquisition, our advisor received an acquisition fee equal to 0.95% of the contractual purchase price of $19.0 million, or approximately $181. | ||||||||||||||||||
The acquisition of the Aloft — Tucson was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Aloft — Tucson has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. There was no contingent consideration related to this acquisition. Approximately $1.9 million was allocated to land and improvements, $14.7 million was allocated to building and improvements, and $2.4 million was allocated to furniture and fixtures and other assets. | ||||||||||||||||||
The aggregate capitalization rate for the Aloft — Tucson as of the closing of the acquisition was approximately 8.8%. We calculate the capitalization rate for a real property by dividing net operating income of the property by the purchase price of the property, excluding costs. For purposes of this calculation, net operating income is determined using the projected or budgeted net operating income based upon then-current projections. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | ||||||||||||||||||
For the three and nine months ended September 30, 2014, the Company's consolidated results of operations included the operating results from (i) the TownePlace Suites - Metairie, (ii) the SpringHill Suites - Peabody, (iii) the Fairfield Inn – East Rutherford, (iv) the TownePlace Suites – Fayetteville and the TownePlace Suites – Little Rock (collectively, the "Arkansas Hotel Portfolio"), (v) the Holiday Inn - Opelika (from the date it was acquired (April 1, 2014) for the nine months) and (vi) the Aloft – Tucson (from the date it was acquired (April 8, 2014) for the nine months). For the three and nine months ended September 30, 2013 the Company's consolidated results of operations included the operating results from (i) the TownePlace Suites - Metairie, (ii) the SpringHill Suites – Peabody, (iii) the Fairfield Inn – East Rutherford and (iv) the Arkansas Hotel Portfolio (from the date it was acquired (June 18, 2013) for the nine months). | ||||||||||||||||||
Financial Information | ||||||||||||||||||
The following table provides the total amount of rental revenue and net income included in the Company's consolidated statements of operations for the Holiday Inn — Opelika (acquired April 1, 2014), the Aloft — Tucson (acquired April 8, 2014), the TownePlace Suites – Fayetteville (acquired June 18, 2013) and the TownePlace Suites – Little Rock (acquired June 18, 2013) since their respective dates of acquisition for the period indicated: | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Rental revenue | $ | 2,702 | $ | 1,038 | $ | 6,249 | $ | 1,198 | ||||||||||
Net income | $ | 331 | $ | 154 | $ | 411 | $ | 1,021* | ||||||||||
* Includes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TPS Fayetteville Hotel | ||||||||||||||||||
The following table provides unaudited pro forma results of operations for the period indicated, as if the acquisitions that the Company made in 2014 (the Holiday Inn — Opelika and the Aloft — Tucson) and 2013 (the TownePlace Suites – Fayetteville and the TownePlace Suites – Little Rock) had been acquired on January 1, 2013. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on January 1, 2013, nor are they indicative of the future operating results of the combined company. | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Pro forma rental revenue | $ | 6,601 | $ | 5,656 | $ | 18,456 | $ | 14,713 | ||||||||||
Pro forma net income | $ | 832 | $ | 382 | $ | 2,251 | $ | 340* | ||||||||||
Pro forma net income per Company's common share, basic and diluted | $ | 0.06 | $ | 0.06 | $ | 0.21 | $ | 0.06 | ||||||||||
* Excludes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TownePlace Suites - Fayetteville. | ||||||||||||||||||
Investment_in_Unconsolidated_A
Investment in Unconsolidated Affiliated Entity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Investments in Unconsolidated Affiliated Entity [Abstract] | ' | ||||||||||||||||
Investments in Unconsolidated Affiliated Entity | ' | ||||||||||||||||
4 | Investment in Unconsolidated Affiliated Entity | ||||||||||||||||
The entity listed below is partially owned by the Company. The Company accounts for this investment under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary of this entity. | |||||||||||||||||
A summary of the Company's investment in the unconsolidated affiliated entity is as follows: | |||||||||||||||||
Entity | Date of Ownership | Ownership Interest as of | As of | As of | |||||||||||||
30-Sep-14 | 30-Sep-14 | 31-Dec-13 | |||||||||||||||
Brownmill LLC ("Brownmill") | Various | 48.6 | % | $ | 3,680 | $ | 3,834 | ||||||||||
Brownmill | |||||||||||||||||
As of September 30, 2014, the Operating Partnership owns an approximate 48.6% membership interest in Brownmill. The Company's interest in Brownmill is a non-managing interest. An affiliate of the Company's Sponsor is the majority owner and manager of Brownmill. Profit and cash distributions are allocated in accordance with each investor's ownership percentage. The Company recorded its investment in Brownmill in accordance with the equity method of accounting. Accordingly, its portion of Brownmill's total indebtedness is not included in the investment. | |||||||||||||||||
Brownmill owns two retail properties known as Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey, which collectively, are referred to as the "Brownmill Properties." | |||||||||||||||||
Brownmill Financial Information | |||||||||||||||||
The Company's carrying value of its interest in Brownmill differs from its share of member's equity reported in the condensed balance sheet of Brownmill due to the Company's basis of its investment in excess of the historical net book value of Brownmill. The Company's additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. | |||||||||||||||||
The following table represents the unaudited condensed income statement for Brownmill for the periods indicated: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | $ | 900 | $ | 614 | $ | 2,788 | $ | 2,419 | |||||||||
Property operating expenses | 308 | 107 | 1,113 | 815 | |||||||||||||
Depreciation and amortization | 209 | 209 | 628 | 629 | |||||||||||||
Operating income | 383 | 298 | 1,047 | 975 | |||||||||||||
Interest expense and other, net | (274 | ) | (289 | ) | (825 | ) | (864 | ) | |||||||||
Net income | $ | 109 | $ | 9 | $ | 222 | $ | 111 | |||||||||
Company's share of net income | $ | 53 | $ | 4 | $ | 108 | $ | 54 | |||||||||
Additional depreciation and amortization expense (1) | (52 | ) | (65 | ) | (165 | ) | (200 | ) | |||||||||
Company's income/(loss) from investment | $ | 1 | $ | (61 | ) | $ | (57 | ) | $ | (146 | ) | ||||||
Note: | |||||||||||||||||
-1 | Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the Company's investment in Brownmill and the amount of the underlying equity in net assets of Brownmill. | ||||||||||||||||
The following table represents the condensed balance sheets for Brownmill as of the dates indicated: | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-14 | December 31, 2013 | ||||||||||||||||
Investment property, at cost (net) | $ | 15,656 | $ | 16,039 | |||||||||||||
Cash and restricted cash | 653 | 1,530 | |||||||||||||||
Other assets | 2,301 | 1,363 | |||||||||||||||
Total assets | $ | 18,610 | $ | 18,932 | |||||||||||||
Mortgage payable | $ | 20,341 | $ | 20,700 | |||||||||||||
Other liabilities | 603 | 588 | |||||||||||||||
Members' deficiency | -2,334 | -2,356 | |||||||||||||||
Total liabilities and members' deficiency | $ | 18,610 | $ | 18,932 | |||||||||||||
Rego Park Joint Venture | |||||||||||||||||
During 2013, LVP Rego Park, LLC (the "Rego Park Joint Venture"), a joint venture in which the Company and Lightstone REIT I had 10.0% and 90.0% ownership interests, respectively, made final distributions to its members and, as a result, the Company no longer has any investment in the Rego Park Joint Venture. During the nine months ended September 30, 2013, the Rego Park Joint Venture had net income of approximately $1,722, of which the Company's share was approximately $156. | |||||||||||||||||
Marketable_Securities_Margin_L
Marketable Securities, Margin Loan and Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Marketable Securities, Margin Loan and Fair Value Measurements | ' | ||||||||||||||||
5 | Marketable Securities, Margin Loan 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, 2014 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate Bonds and Preferred Equity Securities | $ | 17,928 | $ | 442 | $ | (13 | ) | $ | 18,357 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Preferred Equity Securities | $ | 7,735 | $ | 399 | $ | - | $ | 8,134 | |||||||||
The Company has access to a margin loan from a financial institution that holds custody of certain of the Company's marketable securities. The margin loan is collateralized by the marketable securities in the Company's account. The amounts available to the Company under the margin loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The margin loan bears interest at Libor plus 0.85% (1.00% as of September 30, 2014). | |||||||||||||||||
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, 2014 and December 31, 2013, 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. | ||||||||||||||||
As of September 30, 2014 and December 31, 2013, all of the Company's equity securities and corporate bonds and were classified as Level 1 assets and there were no transfers between the level classifications during the three and nine months ended September 30, 2014. |
Selling_Commissions_Dealer_Man
Selling Commissions, Dealer Manager Fees and Other Offering Costs | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Abstract] | ' | ||||||||||||||||
Selling Commissions, Dealer Manager Fees and Other Offering Costs | ' | ||||||||||||||||
6 | Selling Commissions, Dealer Manager Fees and Other Offering Costs | ||||||||||||||||
Selling commissions and dealer manager fees are paid to the Dealer Manager, pursuant to various agreements, and other third-party offering expenses such as registration fees, due diligence fees, marketing costs, and professional fees are accounted for as a reduction against additional paid-in capital ("APIC") as costs are incurred. Organizational costs are expensed as general and administrative costs. | |||||||||||||||||
The following table represents the selling commissions and dealer manager and other offering costs, net of refunds, for the periods indicated: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Selling commissions and dealer manager fees | $ | 6,192 | $ | 586 | $ | 9,321 | $ | 1,266 | |||||||||
Other offering costs | $ | (123 | ) | $ | 448 | $ | 473 | $ | 1,437 | ||||||||
Since the Company's inception through September 30, 2014, it has incurred approximately $16.7 million in selling commissions and dealer manager fees and $8.4 million of other offering costs in connection with the public offering of shares of its common stock. |
Equity
Equity | 9 Months Ended | |
Sep. 30, 2014 | ||
Equity [Abstract] | ' | |
Equity | ' | |
7 | Equity | |
Subscription Receivable | ||
The subscription receivable relates to shares issued to the Company's shareholders for which the proceeds have not yet been received by the Company solely due to a fact of timing of transfers from the escrow agent holding the funds. | ||
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 attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. | ||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
8 | Related Party Transactions | ||||||||||||||||
In addition to certain related party payments made to the Dealer Manager (see Note 6 for additional information), the Company also has agreements with the Advisor and Lightstone Value Plus REIT Management LLC (the "Property Manager") to pay certain fees in exchange for services performed by these entities and other affiliated entities. The Company's ability to secure financing and subsequent real estate operations are dependent upon its Advisor, Property Manager and their affiliates to perform such services as provided in these agreements. | |||||||||||||||||
The following table represents the fees incurred associated with the payments to the Company's Advisor and Property Manager for the periods indicated: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Acquisition Fees | $ | - | $ | - | $ | 246 | $ | 102 | |||||||||
Development Fees | - | 57 | 140 | 57 | |||||||||||||
Asset Management Fees | - | - | - | 114 | |||||||||||||
Total | $ | - | $ | 57 | $ | 386 | $ | 273 | |||||||||
Pursuant to an Advisory Agreement, our Advisor is entitled to receive an asset management fee equal to 0.95% of our average invested assets, as defined. The asset management fee is payable quarterly and based on balances as of the end of each month in the quarterly period. Commencing with the quarter ended June 30, 2013, the Advisor has elected to waive or reduce its quarterly asset management fee to the extent our non-GAAP measure modified funds from operations available, or MFFO, as defined by the Investment Program Association, or IPA, for the preceding twelve months period ending on the last day of the current quarter is less than the distributions declared with respect to the same twelve month period. As a result, asset management fees of $206 and $533 were waived by the Advisor during three and nine months ended September 30, 2014, respectively and asset management fees of $128 and $251 were waived by the Advisor during both the three and nine months ended September 30, 2013. | |||||||||||||||||
See Note 4 – Investments in Unconsolidated Affiliated Entities for additional information with respect to the Company's ownership interests in Brownmill. |
Financial_Instruments
Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||
Financial Instruments | ' | ||||||||||||||||
9 | Financial Instruments | ||||||||||||||||
The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted escrows, accounts receivable (included in other assets), accounts payable and accrued expenses and the margin loan approximated their fair values because of the short maturity of these instruments. | |||||||||||||||||
The estimated fair value of our mortgages payable is as follows: | |||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
Mortgages payable | $ | 23,889 | $ | 23,558 | $ | 24,260 | $ | 23,898 | |||||||||
The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |
Sep. 30, 2014 | ||
Commitments and Contingencies [Abstract] | ' | |
Commitments and Contingencies | ' | |
10 | 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. | ||
On July 13, 2011, JF Capital Advisors, filed a lawsuit against The Lightstone Group, LLC, the Company, and Lightstone Value Plus Real Estate Investment Trust, Inc. in the Supreme Court of the State of New York seeking payment for services alleged to have been rendered, and to be rendered prospectively, under theories of unjust enrichment and breach of contract. The plaintiff had a limited business arrangement with The Lightstone Group, LLC; that arrangement has been terminated. We filed a motion to dismiss the action and, on January 31, 2012, the Supreme Court dismissed the complaint in its entirety, but granted the plaintiff leave to replead two limited causes of action. | ||
The plaintiff filed an amended complaint on May 18, 2012, bringing limited claims under theories of unjust enrichment and quantum meruit. On November 21, 2012, the court dismissed this second complaint in part, leaving only $164 (plus interest) in potential damages. The plaintiff appealed this decision and Lightstone cross-appealed arguing that the case should have been dismissed in full. The appeals court denied plaintiff's motion and granted defendants' motion, as a result of which all claims were dismissed on March 25, 2014. The plaintiff filed a motion requesting the right to re-appeal to the Court of Appeals, which was granted on August 1, 2014. Lightstone continues to believe that these claims to be without merit and will defend the case vigorously. | ||
While any proceeding or litigation has an element of uncertainty, management currently believes that the likelihood of an unfavorable outcome with respect to the aforementioned legal proceedings is remote. No provision for loss has been recorded in connection therewith. | ||
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. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
11 | Subsequent Events | |
Acquisition of Hampton Inn & Suites, Fort Myers Beach, FL (the "Hampton Inn – Fort Myers Beach") | ||
On October 2, 2014 the Company completed the acquisition of an 120-room select service hotel located in Fort Myers, Florida ("the Hampton Inn – Fort Myers Beach") from an unrelated third party, for an aggregate purchase price of approximately $9.4 million, excluding closing and other related transaction costs. In connection with the acquisition, the Company's Advisor received an acquisition fee equal to 0.95% of the contractual purchase price, approximately $0.1 million. The acquisition was funded with cash. | ||
Distribution Payment | ||
On October 15, 2014, the total distribution for the three-month period ending September 30, 2014 of approximately $2.2 million was paid in full using a combination of cash and approximately 127,000 shares of the Company's common stock issued pursuant to the Company's DRIP, at a discounted price of $9.50 per share. The distribution was paid from cash other than cash flows provided from operations (approximately $1.0 million or 46%) and excess cash proceeds from the issuance of common stock through REIT II's DRIP (approximately $1.2 million or 54%). | ||
Sponsor Contribution and Issuance of Subordinated Profits Interests | ||
On November 5, 2014, our Sponsor made a cash contribution of $10.5 million in exchange for 105.0 Subordinated Profits Interests fulfilling the obligation with respect to our Follow-On Offering. | ||
Distribution Declaration | ||
On November 14, 2014, the Board of Directors authorized and the Company declared a distribution for the three-month period ending December 31, 2014. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $0.00178082191 per day, and will equal a daily amount that, if paid each day for a 365-day period, would equal a 6.5% annualized rate based on a share price of $10.00. The distribution will be paid in cash on January 15, 2015 to shareholders of record as of December 31, 2014. The shareholders have an option to elect the receipt of shares under our DRIP. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||
Basis of Presentation | ' | ||||||||
Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of September 30, 2014, the Lightstone REIT II had a 99.9% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. | |||||||||
The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and its Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. | |||||||||
The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). GAAP requires the Company's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. | |||||||||
The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. | |||||||||
Supplemental disclosure of cash flow information | ' | ||||||||
Supplemental disclosure of cash flow information | |||||||||
For the Nine Months Ended September 30, | |||||||||
2014 | 2013 | ||||||||
Cash paid for interest | $ | 942 | $ | 629 | |||||
Distributions declared | $ | 5,166 | $ | 2,878 | |||||
Commissions and other offering costs accrued but not paid | $ | 1,734 | $ | 163 | |||||
Subscription receivable | $ | 13,818 | $ | 120 | |||||
Value of shares issued from distribution reinvestment program | $ | 2,053 | $ | 1,284 | |||||
Reclassifications | ' | ||||||||
Reclassifications | |||||||||
Certain prior period amounts may have been reclassified to conform to the current year presentation. | |||||||||
New Accounting Pronouncements | ' | ||||||||
New Accounting Pronouncements | |||||||||
In April 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update providing new guidance on the requirements for reporting a discontinued operation. The update changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This update is effective for fiscal years beginning on or after December 15, 2014, and interim periods within those years. Early adoption is permitted, but only for disposals (or classifications as held for sale) that have not been reported in the financial statements previously issued or available for issuance. The adoption of this standards update affects presentation only and, as such, will not have a material impact on the Company's consolidated financial statements. | |||||||||
In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Supplemental Cash Flow Information | ' | ||||||||||||||||
Supplemental disclosure of cash flow information | |||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Cash paid for interest | $ | 942 | $ | 629 | |||||||||||||
Distributions declared | $ | 5,166 | $ | 2,878 | |||||||||||||
Commissions and other offering costs accrued but not paid | $ | 1,734 | $ | 163 | |||||||||||||
Subscription receivable | $ | 13,818 | $ | 120 | |||||||||||||
Value of shares issued from distribution reinvestment program | $ | 2,053 | $ | 1,284 | |||||||||||||
Schedule of Unaudited Pro Forma Results of Operations | ' | ||||||||||||||||
The following table provides unaudited pro forma results of operations for the period indicated, as if the acquisitions that the Company made in 2014 (the Holiday Inn — Opelika and the Aloft — Tucson) and 2013 (the TownePlace Suites – Fayetteville and the TownePlace Suites – Little Rock) had been acquired on January 1, 2013. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on January 1, 2013, nor are they indicative of the future operating results of the combined company. | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Pro forma rental revenue | $ | 6,601 | $ | 5,656 | $ | 18,456 | $ | 14,713 | |||||||||
Pro forma net income | $ | 832 | $ | 382 | $ | 2,251 | $ | 340* | |||||||||
Pro forma net income per Company's common share, basic and diluted | $ | 0.06 | $ | 0.06 | $ | 0.21 | $ | 0.06 | |||||||||
* Excludes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TownePlace Suites - Fayetteville. |
Acquisitions_Tables
Acquisitions (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||
Acquisitions [Abstract] | ' | |||||||||||||||||
Schedule of Revenue and Net Income Included in Consolidated Statements of Operations | ' | |||||||||||||||||
The following table provides the total amount of rental revenue and net income included in the Company's consolidated statements of operations for the Holiday Inn — Opelika (acquired April 1, 2014), the Aloft — Tucson (acquired April 8, 2014), the TownePlace Suites – Fayetteville (acquired June 18, 2013) and the TownePlace Suites – Little Rock (acquired June 18, 2013) since their respective dates of acquisition for the period indicated: | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Rental revenue | $ | 2,702 | $ | 1,038 | $ | 6,249 | $ | 1,198 | ||||||||||
Net income | $ | 331 | $ | 154 | $ | 411 | $ | 1,021* | ||||||||||
* Includes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TPS Fayetteville Hotel | ||||||||||||||||||
Schedule of Unaudited Pro Forma Results of Operations | ' | |||||||||||||||||
The following table provides unaudited pro forma results of operations for the period indicated, as if the acquisitions that the Company made in 2014 (the Holiday Inn — Opelika and the Aloft — Tucson) and 2013 (the TownePlace Suites – Fayetteville and the TownePlace Suites – Little Rock) had been acquired on January 1, 2013. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on January 1, 2013, nor are they indicative of the future operating results of the combined company. | ||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
Pro forma rental revenue | $ | 6,601 | $ | 5,656 | $ | 18,456 | $ | 14,713 | ||||||||||
Pro forma net income | $ | 832 | $ | 382 | $ | 2,251 | $ | 340* | ||||||||||
Pro forma net income per Company's common share, basic and diluted | $ | 0.06 | $ | 0.06 | $ | 0.21 | $ | 0.06 | ||||||||||
* Excludes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TownePlace Suites - Fayetteville. |
Investment_in_Unconsolidated_A1
Investment in Unconsolidated Affiliated Entity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ||||||||||||||||
Summary of Investments in Unconsolidated Entity | ' | ||||||||||||||||
A summary of the Company's investment in the unconsolidated affiliated entity is as follows: | |||||||||||||||||
Entity | Date of Ownership | Ownership Interest as of | As of | As of | |||||||||||||
30-Sep-14 | 30-Sep-14 | 31-Dec-13 | |||||||||||||||
Brownmill LLC ("Brownmill") | Various | 48.6 | % | $ | 3,680 | $ | 3,834 | ||||||||||
Brownmill, LLC [Member] | ' | ||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ||||||||||||||||
Unaudited Condensed Income Statements of Affiliated Entity | ' | ||||||||||||||||
The following table represents the unaudited condensed income statement for Brownmill for the periods indicated: | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | $ | 900 | $ | 614 | $ | 2,788 | $ | 2,419 | |||||||||
Property operating expenses | 308 | 107 | 1,113 | 815 | |||||||||||||
Depreciation and amortization | 209 | 209 | 628 | 629 | |||||||||||||
Operating income | 383 | 298 | 1,047 | 975 | |||||||||||||
Interest expense and other, net | (274 | ) | (289 | ) | (825 | ) | (864 | ) | |||||||||
Net income | $ | 109 | $ | 9 | $ | 222 | $ | 111 | |||||||||
Company's share of net income | $ | 53 | $ | 4 | $ | 108 | $ | 54 | |||||||||
Additional depreciation and amortization expense (1) | (52 | ) | (65 | ) | (165 | ) | (200 | ) | |||||||||
Company's income/(loss) from investment | $ | 1 | $ | (61 | ) | $ | (57 | ) | $ | (146 | ) | ||||||
Note: | |||||||||||||||||
-1 | Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the Company's investment in Brownmill and the amount of the underlying equity in net assets of Brownmill. | ||||||||||||||||
Unaudited Condensed Balance Sheets of Affiliated Entity | ' | ||||||||||||||||
The following table represents the condensed balance sheets for Brownmill as of the dates indicated: | |||||||||||||||||
As of | As of | ||||||||||||||||
30-Sep-14 | December 31, 2013 | ||||||||||||||||
Investment property, at cost (net) | $ | 15,656 | $ | 16,039 | |||||||||||||
Cash and restricted cash | 653 | 1,530 | |||||||||||||||
Other assets | 2,301 | 1,363 | |||||||||||||||
Total assets | $ | 18,610 | $ | 18,932 | |||||||||||||
Mortgage payable | $ | 20,341 | $ | 20,700 | |||||||||||||
Other liabilities | 603 | 588 | |||||||||||||||
Members' deficiency | -2,334 | -2,356 | |||||||||||||||
Total liabilities and members' deficiency | $ | 18,610 | $ | 18,932 | |||||||||||||
Marketable_Securities_Margin_L1
Marketable Securities, Margin Loan and Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Summary of Available for Sale Securities | ' | ||||||||||||||||
The following is a summary of the Company's available for sale securities as of the dates indicated: | |||||||||||||||||
As of September 30, 2014 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||
Corporate Bonds and Preferred Equity Securities | $ | 17,928 | $ | 442 | $ | (13 | ) | $ | 18,357 | ||||||||
As of December 31, 2013 | |||||||||||||||||
Adjusted Cost | Gross Unrealized Gains | Gross Unrealized | Fair Value | ||||||||||||||
Losses | |||||||||||||||||
Preferred Equity Securities | $ | 7,735 | $ | 399 | $ | - | $ | 8,134 |
Selling_Commissions_Dealer_Man1
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Abstract] | ' | ||||||||||||||||
Summary of Selling Commissions, Dealer Manager Fees and Other Offering Costs | ' | ||||||||||||||||
The following table represents the selling commissions and dealer manager and other offering costs, net of refunds, for the periods indicated: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Selling commissions and dealer manager fees | $ | 6,192 | $ | 586 | $ | 9,321 | $ | 1,266 | |||||||||
Other offering costs | $ | (123 | ) | $ | 448 | $ | 473 | $ | 1,437 |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Schedule of Fees to Related Parties | ' | ||||||||||||||||
The following table represents the fees incurred associated with the payments to the Company's Advisor and Property Manager for the periods indicated: | |||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Acquisition Fees | $ | - | $ | - | $ | 246 | $ | 102 | |||||||||
Development Fees | - | 57 | 140 | 57 | |||||||||||||
Asset Management Fees | - | - | - | 114 | |||||||||||||
Total | $ | - | $ | 57 | $ | 386 | $ | 273 |
Financial_Instruments_Tables
Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Financial Instruments [Abstract] | ' | ||||||||||||||||
Summary of Estimated Fair Value of Debt | ' | ||||||||||||||||
The estimated fair value of our mortgages payable is as follows: | |||||||||||||||||
As of September 30, 2014 | As of December 31, 2013 | ||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||
Mortgages payable | $ | 23,889 | $ | 23,558 | $ | 24,260 | $ | 23,898 |
Organization_Details
Organization (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 60 Months Ended | 66 Months Ended | 76 Months Ended | 9 Months Ended | 1 Months Ended | 25 Months Ended | 40 Months Ended | 1 Months Ended | 40 Months Ended | |||||||||||
20-May-08 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2009 | Sep. 30, 2014 | Sep. 30, 2014 | 20-May-08 | Sep. 27, 2012 | Apr. 24, 2009 | Sep. 27, 2014 | Aug. 15, 2012 | Sep. 30, 2014 | Apr. 24, 2009 | Sep. 27, 2012 | Apr. 24, 2009 | Aug. 15, 2012 | Sep. 27, 2012 | Apr. 24, 2009 | |
Brownmill, LLC [Member] | for each $1.0 million in subscriptions up to ten percent of its primary offering proceeds on a semi-annual basis [Member] | Advisory Services [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Public Offering [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Distribution Reinvestment Plan [Member] | Restricted Share Award [Member] | Restricted Share Award [Member] | ||||||||||
Maximum [Member] | |||||||||||||||||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock, price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | $10 | ' | ' | ' | ' | $9.50 | $9.50 | ' | ' | ' |
Shares reserved for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | 6,000,000 | 51,000,000 | 2,500,000 | 6,500,000 | ' | ' | ' |
Common stock authorized and reserved for issuance under plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 255,000 | 255,000 |
Stock issued during period, per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period for services, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period for services, value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from offering, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,800,000 | 5,000,000 | ' | ' | ' | ' | 300,000 | ' | ' |
Proceeds from offering | ' | ' | ' | 90,834,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subscription receivable | ' | 13,843,000 | ' | 13,843,000 | ' | 13,843,000 | 13,843,000 | 25,000 | 6,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross proceeds from issuance of equity | ' | ' | ' | ' | ' | 177,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | 127,500,000 | 49,800,000 | ' | ' | ' | ' | ' | ' | ' |
Selling commissions and dealer manager fees | ' | 6,192,000 | 586,000 | 9,390,000 | 1,266,000 | ' | 16,700,000 | ' | ' | ' | ' | ' | ' | ' | 11,500,000 | 5,200,000 | ' | ' | ' | ' | ' | ' | ' |
Payment for organization and other offering expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | 4,500,000 | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance initial public offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 112,100,000 | 40,100,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds form issuance of equity, share-based compensation plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' |
General partner ownership interest | ' | ' | ' | 99.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advisor's contribution to operating partnership | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Partnership units issued | 200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinate General Partner Unit Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated general partner participation, per unit cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sponsor's cash contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of ownership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinate profit interest units | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate value of subordinate profits | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Percentage general partnership interest in common units operating partnership | 99.90% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Summary of Supplemental Cash Flow Information) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Summary of Significant Accounting Policies [Abstract] | ' | ' |
Cash paid for interest | $942 | $629 |
Distributions declared | 5,166 | 2,878 |
Commissions and other offering costs accrued but not paid | 1,734 | 163 |
Subscription receivable | 13,818 | 120 |
Value of shares issued from distribution reinvestment program | $2,053 | $1,284 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 02, 2014 | Apr. 08, 2014 | Jun. 30, 2013 | |
Holiday Inn - Opelika [Member] | Aloft - Tucson [Member] | TownePlace Suites - Fayetteville [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | ' | ' | $6,900,000 | $19,000,000 | ' |
Acquisition fees received by the advisor as percentage of acquisition price | ' | ' | ' | ' | 0.95% | 0.95% | ' |
Acquisition fees received by the advisor | ' | ' | ' | ' | 66,000 | 181,000 | ' |
Purchase price allocation, land and improvements | ' | ' | ' | ' | 1,000,000 | 1,900,000 | ' |
Purchase price allocation, building and improvements | ' | ' | ' | ' | 5,300,000 | 14,700,000 | ' |
Purchase price allocation, furnitures and fixtures | ' | ' | ' | ' | 600,000 | 2,400,000 | ' |
Asset capitalization rate | ' | ' | ' | ' | 9.80% | 8.80% | ' |
Bargain purchase gain | ' | $38,000 | ' | $1,263,000 | ' | ' | $1,200,000 |
Acquisitions_Amounts_of_Revenu
Acquisitions (Amounts of Revenue and Net Income Included in Consolidated Statements of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Acquisitions [Abstract] | ' | ' | ' | ' | |
Rental revenue | $2,702 | $1,038 | $6,249 | $1,198 | |
Net income | $331 | $154 | $411 | $1,021 | [1] |
[1] | * Includes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TPS Fayetteville Hotel |
Acquisitions_Unaudited_Pro_For
Acquisitions (Unaudited Pro Forma Results of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Acquisitions [Abstract] | ' | ' | ' | ' | |
Pro forma rental revenue | $6,601 | $5,656 | $18,456 | $14,713 | |
Pro forma net income | $832 | $382 | $2,251 | $340 | [1] |
Pro forma net income per Company's common share, basic and diluted | $0.06 | $0.06 | $0.21 | $0.06 | |
[1] | * Excludes the $1.2 million bargain purchase gain recorded in the second quarter of 2013 in connection with the acquisitions of the TownePlace Suites - Fayetteville. |
Investment_in_Unconsolidated_A2
Investment in Unconsolidated Affiliated Entity (Company's Investments in Unconsolidated Affiliated Entity) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investments in unconsolidated affiliated entity | $3,680 | $3,834 |
Brownmill, LLC [Member] | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Ownership interest | 48.60% | ' |
Investments in unconsolidated affiliated entity | $3,680 | $3,834 |
Investment_in_Unconsolidated_A3
Investment in Unconsolidated Affiliated Entity (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Company's share of net income | $1 | ($61) | ($57) | $10 |
LVP Rego Park, LLC [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Ownership interest | 10.00% | ' | 10.00% | ' |
Net income | ' | ' | ' | 1,722 |
Company's share of net income | ' | ' | ' | $156 |
LVP Rego Park, LLC [Member] | Lightstone REIT I [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Ownership interest | 90.00% | ' | 90.00% | ' |
Investment_in_Unconsolidated_A4
Investment in Unconsolidated Affiliated Entity (Unaudited Condensed Income Statement) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Company's share of net income | $1 | ($61) | ($57) | $10 | ||||
Brownmill, LLC [Member] | ' | ' | ' | ' | ||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ||||
Revenue | 900 | 614 | 2,788 | 2,419 | ||||
Property operating expenses | 308 | 107 | 1,113 | 815 | ||||
Depreciation and amortization | 209 | 209 | 628 | 629 | ||||
Operating income | 383 | 298 | 1,047 | 975 | ||||
Interest expense and other, net | -274 | -289 | -825 | -864 | ||||
Net income | 109 | 9 | 222 | 111 | ||||
Company's share of net income | 53 | 4 | 108 | 54 | ||||
Additional depreciation and amortization expense | -52 | [1] | -65 | [1] | -165 | [1] | -200 | [1] |
Company's income/(loss) from investment | $1 | ($61) | ($57) | ($146) | ||||
[1] | Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the Company's investment in Brownmill and the amount of the underlying equity in net assets of Brownmill. |
Investment_in_Unconsolidated_A5
Investment in Unconsolidated Affiliated Entity (Unaudited Condensed Balance Sheet) (Details) (Brownmill, LLC [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity method investment, assets | $18,610 | $18,932 |
Members' deficiency | -2,334 | -2,356 |
Total liabilities and members' deficiency | 18,610 | 18,932 |
Investment property, at cost (net) [Member] | ' | ' |
Equity method investment, assets | 15,656 | 16,039 |
Cash and restricted cash [Member] | ' | ' |
Equity method investment, assets | 653 | 1,530 |
Other assets [Member] | ' | ' |
Equity method investment, assets | 2,301 | 1,363 |
Mortgage payable [Member] | ' | ' |
Equity method investment, liabilities | 20,341 | 20,700 |
Other liabilities [Member] | ' | ' |
Equity method investment, liabilities | $603 | $588 |
Marketable_Securities_Margin_L2
Marketable Securities, Margin Loan and Fair Value Measurements (Summary of Available for Sale Securities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Corporate Bonds and Preferred Equity Securities [Member] | Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' |
Adjusted Cost | ' | ' | $17,928 | $7,735 |
Gross Unrealized Gains | ' | ' | 442 | 399 |
Gross Unrealized Losses | ' | ' | -13 | ' |
Fair Value | $18,357 | $8,134 | $18,357 | $8,134 |
Marketable_Securities_Margin_L3
Marketable Securities, Margin Loan and Fair Value Measurements (Narrative) (Details) (Margin Loan [Member]) | 9 Months Ended |
Sep. 30, 2014 | |
Margin Loan [Member] | ' |
Debt Instrument [Line Items] | ' |
Debt instrument, interest rate terms | 'Libor |
Interest rate, Libor plus | 0.85% |
Interest rate at period end | 1.00% |
Selling_Commissions_Dealer_Man2
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details) (USD $) | 3 Months Ended | 9 Months Ended | 66 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Selling Commissions, Dealer Manager Fees and Other Offering Costs [Abstract] | ' | ' | ' | ' | ' |
Selling commissions and dealer manager fees | $6,192 | $586 | $9,390 | $1,266 | $16,700 |
Other offering costs | ($123) | $448 | $534 | $1,437 | $8,400 |
Related_Party_Transactions_Fee
Related Party Transactions (Fees Incurred Associated with Payments to Advisor's and Property Manager) (Details) (Related Parties [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Related Parties [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Acquisition Fees | ' | ' | $246 | $102 |
Development Fees | ' | 57 | 140 | 57 |
Asset Management Fees | ' | ' | ' | 114 |
Total | ' | $57 | $386 | $273 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Related Party Transactions [Abstract] | ' | ' | ' | ' |
Percentage of average invested assets allocated to asset management fees | 0.95% | ' | 0.95% | ' |
Asset management fees waived | $206 | $128 | $533 | $251 |
Financial_Instruments_Details
Financial Instruments (Details) (Mortgages payable [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgages payable [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying Amount | $23,889 | $24,260 |
Estimated Fair Value | $23,558 | $23,898 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Nov. 21, 2012 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies [Abstract] | ' |
Potential damages | $164 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |||||
Nov. 14, 2014 | Oct. 15, 2014 | Oct. 02, 2014 | Oct. 15, 2014 | Oct. 15, 2014 | Nov. 05, 2014 | |
Hampton Inn - Fort Myers Beach [Member] | Distribution paid from cash other than cash flows provided from operations [Member] | Distribution paid from the issuance of common stock through REIT II's Distribution Reinvestment Program [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' |
Aggregate purchase price | ' | ' | $9,400,000 | ' | ' | ' |
Acquisition fees received by the advisor as percentage of acquisition price | ' | ' | 0.95% | ' | ' | ' |
Acquisition Fees | ' | ' | 100,000 | ' | ' | ' |
Distribution payment | ' | 2,200,000 | ' | 1,000,000 | 1,200,000 | ' |
Distribution payment, in form of shares | ' | 127,000 | ' | ' | ' | ' |
Distribution payment, price per share | ' | $9.50 | ' | ' | ' | ' |
Percentage of distribution payment, in form of cash | ' | ' | ' | 46.00% | 54.00% | ' |
Sponsor's cash contribution | ' | ' | ' | ' | ' | 10,500,000 |
Subordinate profit interest units | ' | ' | ' | ' | ' | 105 |
Distribution declared | 14-Nov-15 | ' | ' | ' | ' | ' |
Distribution on per day basis | $0.00 | ' | ' | ' | ' | ' |
Number of days used to calculate daily amount of distribution | '365 days | ' | ' | ' | ' | ' |
Annualized rate of dividend | 6.50% | ' | ' | ' | ' | ' |
Face value of share | $10 | ' | ' | ' | ' | ' |
Distribution payment date | 15-Jan-15 | ' | ' | ' | ' | ' |
Record date | 31-Dec-14 | ' | ' | ' | ' | ' |