Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | 10-May-15 |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Entity Registrant Name | Lightstone Value Plus Real Estate Investment Trust III, Inc. | |
Entity Central Index Key | 1563756 | |
Current Fiscal Year End Date | -19 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1.1 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Investment property: | ||
Land and improvements | $1,178,845 | |
Building and improvements | 9,201,155 | |
Furniture and fixtures | 521,875 | |
Gross investment property | 10,901,875 | |
Less accumulated depreciation | -55,853 | |
Net investment property | 10,846,022 | |
Cash | 2,742,398 | 1,738,026 |
Deposits | 500,000 | |
Prepaid expenses and other assets | 394,388 | 182,078 |
Total Assets | 13,982,808 | 2,420,104 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 686,575 | 169,608 |
Revolving promissory note - related party | 7,000,000 | |
Due to affiliate | 1,831,978 | 1,934,970 |
Distributions payable | 36,987 | |
Total liabilities | 9,555,540 | 2,104,578 |
Commitments and Contingencies | ||
Company's stockholders' equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value; 200,000,000 shares authorized, 838,946 and 286,674 shares issued and outstanding, respectively | 8,389 | 2,867 |
Additional paid-in-capital | 5,027,780 | 455,880 |
Subscription receivable | -161,500 | |
Accumulated deficit | -449,316 | -145,196 |
Total Company stockholders' equity | 4,425,353 | 313,551 |
Noncontrolling interests | 1,915 | 1,975 |
Total Stockholders' Equity | 4,427,268 | 315,526 |
Total Liabilities and Stockholders' Equity | $13,982,808 | $2,420,104 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred shares, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 838,946 | 286,674 |
Common stock, shares outstanding | 838,946 | 286,674 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Revenues | $553,422 | |
Expenses: | ||
Property operating expenses | 313,255 | |
Real estate taxes | 31,734 | |
General and administrative costs | 270,948 | 1,267 |
Depreciation and amortization | 57,445 | |
Total operating expenses | 673,382 | 1,267 |
Operating loss | -119,960 | -1,267 |
Interest expense | -96,293 | |
Other expense, net | -375 | |
Net loss | -216,628 | -1,267 |
Less: net loss attributable to noncontrolling interests | 34 | |
Net loss applicable to Company's common shares | ($216,594) | ($1,267) |
Net loss per Company's common shares, basic and diluted | ($0.41) | ($0.06) |
Weighted average number of common shares outstanding, basic and diluted | 528,564 | 20,000 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
BALANCE at Dec. 31, 2014 | $315,526 | $2,867 | $455,880 | ($145,196) | $1,975 | |
BALANCE, shares at Dec. 31, 2014 | 286,674 | |||||
Net loss | -216,628 | -216,594 | -34 | |||
Distributions declared | -87,526 | -87,526 | ||||
Distributions paid to noncontrolling interests | -26 | -26 | ||||
Proceeds from offering | 5,313,399 | 5,514 | 5,469,385 | -161,500 | ||
Issuance of common shares, shares | 551,400 | |||||
Selling commissions and dealer manager fees | -511,107 | -511,107 | ||||
Other offering costs | -394,656 | -394,656 | ||||
Shares issued from distribution reinvestment program | 8,286 | 8 | 8,278 | |||
Shares issued from distribution reinvestment program, shares | 872 | |||||
BALANCE at Mar. 31, 2015 | $4,427,268 | $8,389 | $5,027,780 | ($161,500) | ($449,316) | $1,915 |
BALANCE, shares at Mar. 31, 2015 | 838,946 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($216,628) | ($1,267) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 57,445 | |
Amortization of deferred financing costs | 16,667 | |
Other non-cash adjustments | 66 | |
Changes in assets and liabilities: | ||
Increase in prepaid expenses and other assets | -130,635 | |
Increase in accounts payable and other accrued expenses | 147,240 | 250 |
Increase in due to affiliate | 19,536 | |
Net cash used in operating activities | -106,309 | -1,017 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | -10,192,950 | |
Net cash used in investing activities | -10,192,950 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving promissory note - related party | 8,200,000 | |
Payment on revolving promissory note - related party | -1,200,000 | |
Payment of loan fees and expenses | -100,000 | |
Proceeds from issuance of common stock | 5,313,399 | |
Payment of commissions and offering costs | -867,489 | |
Distributions to noncontrolling interests | -26 | |
Distributions to common stockholders | -42,253 | |
Net cash provided by financing activities | 11,303,631 | |
Net change in cash | 1,004,372 | -1,017 |
Cash, beginning of year | 1,738,026 | 198,726 |
Cash, end of period | 2,742,398 | 197,709 |
Supplemental Cash Flow Elements [Abstract] | ||
Cash paid for interest | 78,408 | |
Distributions declared, but not paid | 36,987 | |
Commissions and other offering costs accrued but not paid | 296,122 | |
Subscription receivable | 161,500 | |
Value of shares issued from distribution reinvestment program | 8,286 | |
Application of deposit to acquisition of investment property | $500,000 |
Organization
Organization | 3 Months Ended | |
Mar. 31, 2015 | ||
Organization [Abstract] | ||
Organization | 1 | Organization |
Lightstone Value Plus Real Estate Investment Trust III, Inc. (‘‘Lightstone REIT III''), incorporated on October 5, 2012, in Maryland, intends to elect to qualify and be taxed as a real estate investment trust (‘‘REIT'') for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2015. The Company will seek to acquire hotels and other commercial real estate assets primarily located in the United States. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire mortgage loans secured by real estate. | ||
The Lightstone REIT III is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business will be conducted through Lightstone Value Plus REIT III LP, a Delaware limited partnership (the ‘‘Operating Partnership''). | ||
Lightstone REIT III and the Operating Partnership and its subsidiaries are collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT III, its Operating Partnership or the Company as required by the context in such pronoun used. | ||
Lightstone REIT III sold 20,000 Common Shares to Lightstone Value Plus REIT III LLC, a Delaware limited liability company (the ‘‘Advisor''), an entity majority owned by David Lichtenstein, on December 24, 2012, for $10.00 per share. Mr. Lichtenstein also is a majority owner of the equity interests of Lightstone REIT III's sponsor, The Lightstone Group, LLC (the ‘‘Sponsor''). Subject to the oversight of the Company's board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions and managing the Company's day-to-day operations. Through his ownership and control of The Lightstone Group, Mr. Lichtenstein is the indirect owner of the Advisor and the indirect owner and manager of Lightstone SLP III LLC, which has subordinated participation interests in the Operating Partnership. Mr. Lichtenstein also acts as the Company's Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone REIT III or the Operating Partnership. | ||
Lightstone REIT III invested the proceeds received from the Advisor in the Operating Partnership, and as a result, held a 99% general partnership interest as of March 31, 2015 in the Operating Partnership's partner units. | ||
The Company's registration statement on Form S-11 (the “Offering”), pursuant to which it is offering to sell up to 30,000,000 shares of its common stock, par value $0.01 per share (which may be referred to herein as ‘‘shares of common stock'' or as ‘‘Common Shares'') for $10.00 per share, subject to certain volume and other discounts (exclusive of 10,000,000 shares available pursuant to its distribution reinvestment plan (the “DRIP”) at an initial purchase price of $9.50 per share) was declared effective by the Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933 on July 15, 2014. As of March 31, 2015, the Company had received gross proceeds of $8.1 million from the sale of 0.8 million shares of its common stock (including $2.0 million in Common Shares at a purchase price of $9.00 per Common Share to an entity 100% owned by David Lichtenstein, who also owns a majority interest in the Company's Sponsor). The Company intends to sell shares of its common stock under the Offering until the earlier of the date on which all the shares are sold, or July 15, 2016, two years from the date the Offering was declared effective by the SEC. The Company reserves the right to reallocate the shares of common stock it is offering between the primary offering and the DRIP. Additionally, the Offering may be terminated at any time. | ||
The Company has no employees. The Company has retained the Advisor to manage its affairs on a day-to-day basis. Beacon Property Management Limited Liability Company and Paragon Retail Property Management LLC (the ‘‘Property Managers'') may serve as property managers. Orchard Securities, LLC (the ‘‘Dealer Manager''), a third party not affiliated with the Company, the Sponsor or the Advisor, will serve as the dealer manager of the Company's public offering. The Advisor and Property Managers are affiliates of the Sponsor. These related parties will receive compensation and fees for services related to the investment and management of the Company's assets. These entities will receive fees during the Company's offering, acquisition, operational and liquidation stages. (See Note 6 for a summary of related-party fees.) | ||
Noncontrolling Interests | ||
Partners of Operating Partnership | ||
On July 16, 2014, the Advisor contributed $2,000 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 III LLC (the ‘‘Special Limited Partner''), a Delaware limited liability company of which Mr. Lichtenstein is the majority owner, will be a special limited partner in the Operating Partnership and has committed to purchase subordinated profits interests in the Operating Partnership (the “Subordinated Participation Interests”) at a cost of $50,000 per unit for each $1.0 million in subscriptions accepted for the Offering or any follow-on offering on a semi-annual basis beginning with the quarter ended June 30, 2015. The Special Limited Partner may elect to purchase the Subordinated Participation Interests for cash or may contribute interests in real property of equivalent value. The Subordinated Participation Interests may be entitled to receive liquidation distributions upon the liquidation of Lightstone REIT III. (See Note 6 for a summary of related-party fees). |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended | |
Mar. 31, 2015 | ||
Summary of Significant Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2 | Summary of Significant Accounting Policies |
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, 2014. 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. | ||
Principles of Consolidation and Basis of Presentation | ||
The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2015, the Lightstone REIT III had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. | ||
New Accounting Pronouncements | ||
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. | ||
In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance will be effective for the Company beginning January 1, 2016. The Company is currently evaluating the impact of this standard on our consolidated financial statements. |
Acquisitions
Acquisitions | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Acquisitions [Abstract] | |||||||||||||
Acquisitions | 3 | Acquisitions | |||||||||||
On February 4, 2015, the Company completed the acquisition of a 120-room select service hotel located in Des Moines, Iowa (the “Hampton Inn – Des Moines”) from an unrelated third party, for an aggregate purchase price of approximately $10.9 million less adjustments, paid in cash, excluding closing and other related transaction costs. In connection with the acquisition, the Company's Advisor received an acquisition fee equal to 1.0% of the contractual purchase price, approximately $0.1 million. The acquisition was funded with approximately $2.7 million of offering proceeds and approximately $8.2 million of proceeds from a $10.0 million Revolving Promissory Note (the “Revolving Promissory Note”) from the operating partnership of Lightstone Value Plus Real Estate Investment Trust II, Inc. (“Lightstone II”), a real estate investment trust also sponsored by the Company's sponsor. | |||||||||||||
The Revolving Promissory Note was entered into on February 4, 2015, has a term of one year, bears interest at a floating rate of three-month Libor plus 6.0% (6.3% as of March 31, 2015) and requires quarterly interest payments through its stated maturity with the entire unpaid balance due upon maturity. The Company paid an origination fee of $100,000 to Lightstone II in connection with the Revolving Promissory Note and pledged its ownership interest in the Hampton Inn – Des Moines as collateral for the Revolving Promissory Note. | |||||||||||||
The acquisition of the Hampton Inn – Des Moines 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 Hampton Inn – Des Moines has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. Approximately $1.2 million was allocated to land and improvements, $9.2 million was allocated to building and improvements, and $0.5 million was allocated to furniture and fixtures and other assets. | |||||||||||||
The capitalization rate for the acquisition of the Hampton Inn — Des Moines is approximately 11.3%. 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 based upon the twelve-month period ended July 31, 2014. Additionally, net operating income is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. | |||||||||||||
Financial Information | |||||||||||||
The following table provides the total amount of rental revenue and net income included in the Company's consolidated statements of operations from the Hampton Inn — Des Moines since its date of acquisition for the period indicated: | |||||||||||||
For the Three Months | |||||||||||||
Ended March 31, 2015 | |||||||||||||
Rental revenue | $ | 553,422 | |||||||||||
Net loss | $ | (167,689 | ) | ||||||||||
The following table provides unaudited pro forma results of operations for the period indicated, as if Hampton Inn — Des Moines had been acquired at the beginning of each period. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on the date indicated, nor are they indicative of the future operating results of the combined company. | |||||||||||||
For the Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Pro forma rental revenue | $ | 912,684 | $ | 923,818 | |||||||||
Pro forma net (loss)/income | $ | (181,475 | ) | $ | 89,039 | ||||||||
Pro forma net (loss)/income per Company's common share, basic and diluted | $ | (0.34 | ) | $ | 4.45 |
Selling_Commission_Dealer_Mana
Selling Commission, Dealer Manager Fees and Other Offering Costs | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Selling Commission Dealer Manager Fees And Other Offering Costs [Abstract] | |||||||||||||
Selling Commission, Dealer Manager Fees and Other Offering Costs | 4 | 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 for the periods indicated: | |||||||||||||
For the Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Selling commissions and dealer manager fees | $ | 511,107 | $ | - | |||||||||
Other offering costs | $ | 394,656 | $ | - | |||||||||
Since the Company's inception through March 31, 2015, it has incurred approximately $0.6 million in selling commissions and dealer manager fees and $2.5 million of other offering costs in connection with the public offering of shares of its common stock. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |
Mar. 31, 2015 | ||
Earnings per Share [Abstract] | ||
Earnings per Share | 5 | Earnings per Share |
The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing earnings 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 | 3 Months Ended | |
Mar. 31, 2015 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 6 | Related Party Transactions |
The Company has agreements with the Advisor and the Property Managers 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. | ||
For the three months ended March 31, 2015, the only amount that the Company paid to the Advisor was an acquisition fee of $109,000. No amounts were paid to the Advisor for the three months ended March 31, 2014. | ||
The Advisor will advance the organization and offering expenses to the extent that the Company does not have the funds to pay such expenses. The related liability of approximately $1.8 million as of March 31, 2015 for these organization and offering costs is included in Due to affiliate in the consolidated balance sheets. |
Financial_Instruments
Financial Instruments | 3 Months Ended | |
Mar. 31, 2015 | ||
Financial Instruments [Abstract] | ||
Financial Instruments | 7 | Financial Instruments |
The carrying amounts reported in the consolidated balance sheets for cash, restricted escrows, accounts receivable (included in other assets), accounts payable and accrued expenses approximated their fair values because of the short maturity of these instruments. | ||
As of March 31, 2015, the estimated fair value of the Revolving Promissory Note approximated its carrying value because of its floating interest rate. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2015 | ||
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | 8 | 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, we are not a party to any material pending legal proceedings. |
Subsequent_Events
Subsequent Events | 3 Months Ended | |
Mar. 31, 2015 | ||
Subsequent Events [Abstract] | ||
Subsequent Events | 9 | Subsequent Events |
Distribution Payment | ||
On April 15, 2015, the Company paid the distribution for the month ending March 31, 2015 of approximately $36,987. The aggregate distributions for the period from December 11, 2014 (date of breaking escrow) through March 31, 2015 of $87,526 was paid in full using a combination of cash and 2,046 shares of the Company's common stock issued pursuant to the Company's Distribution Reinvestment Program (“DRIP”), at a discounted price of $9.50 per share. The distribution was paid from offering proceeds (approximately $68,088 or 78%) and excess cash proceeds from the issuance of common stock through the Company's DRIP (approximately $19,438 or 22%). | ||
Distribution Declaration | ||
On May 13, 2015, the Board of Directors authorized and the Company declared a distribution for each month during the three-month period ending September 30, 2015. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $0.00164383 per day, and will equal a daily amount that, if paid each day for a 365-day period, would equal a 6.0% annualized rate based on a share price of $10.00 payable on by the 15th day following each month end to stockholders of record at the close of business each day during the prior month. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation |
The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2015, the Lightstone REIT III had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. | |
New Accounting Pronouncements | New Accounting Pronouncements |
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. | |
In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This new guidance will be effective for the Company beginning January 1, 2016. The Company is currently evaluating the impact of this standard on our consolidated financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||
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 from the Hampton Inn — Des Moines since its date of acquisition for the period indicated: | ||||||||||||
For the Three Months | |||||||||||||
Ended March 31, 2015 | |||||||||||||
Rental revenue | $ | 553,422 | |||||||||||
Net loss | $ | (167,689 | ) | ||||||||||
Schedule of Unaudited Pro Forma Results of Operations | The following table provides unaudited pro forma results of operations for the period indicated, as if Hampton Inn — Des Moines had been acquired at the beginning of each period. Such pro forma results are not necessarily indicative of the results that actually would have occurred had these acquisitions been completed on the date indicated, nor are they indicative of the future operating results of the combined company. | ||||||||||||
For the Three Months Ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Pro forma rental revenue | $ | 912,684 | $ | 923,818 | |||||||||
Pro forma net (loss)/income | $ | (181,475 | ) | $ | 89,039 | ||||||||
Pro forma net (loss)/income per Company's common share, basic and diluted | $ | (0.34 | ) | $ | 4.45 |
Selling_Commission_Dealer_Mana1
Selling Commission, Dealer Manager Fees and Other Offering Costs (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Selling Commission Dealer Manager Fees And Other Offering Costs [Abstract] | |||||||||||||
Summary of Selling Commissions, Dealer Manager Fees and Other Offering Costs | For the Three Months Ended March 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Selling commissions and dealer manager fees | $ | 511,107 | $ | - | |||||||||
Other offering costs | $ | 394,656 | $ | - |
Organization_Details
Organization (Details) (USD $) | 0 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | |
Jul. 16, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 24, 2012 | Jul. 15, 2014 | Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Date of incorporation | 5-Oct-12 | |||||
Issuance of common shares, value | $5,313,399 | |||||
Gross proceeds from sale of common stock | 5,313,399 | |||||
Contribution from advisor | 2,000 | |||||
Number of limited partner units issued to advisor | 200 | |||||
Price per unit that the Special Limited Partner has committed to purchase | $50,000 | |||||
Amount in subscriptions accepted required for the Special Limited Partner to purchase one unit | 1,000,000 | 1,000,000 | ||||
Lightstone Value Plus REIT III LLC [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Issuance of common shares, shares | 20,000 | |||||
Shares issued, price per share | $10 | |||||
General partner ownership interest | 99.00% | |||||
Stock Offering [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Shares reserved for issuance | 30,000,000 | |||||
Shares reserved for issuance, price per share | $10 | |||||
Gross proceeds from sale of common stock | 8,100,000 | |||||
Issuance of common shares, shares | 800,000 | |||||
Stock Offering [Member] | Company owned by David Lichtenstein [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Issuance of common shares, value | $2,000,000 | |||||
Shares issued, price per share | $9 | $9 | ||||
Distribution Reinvestment Plan [Member] | ||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||
Shares reserved for issuance | 10,000,000 | |||||
Shares reserved for issuance, price per share | $9.50 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (Lightstone Value Plus REIT III LLC [Member]) | 3 Months Ended |
Mar. 31, 2015 | |
Lightstone Value Plus REIT III LLC [Member] | |
Accounting Policies [Line Items] | |
General partner ownership interest | 99.00% |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Feb. 04, 2015 | |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Proceeds from revolving promissory note | $8,200,000 | ||
Hampton Inn - Des Moines [Member] | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Cash consideration paid | 10,900,000 | ||
Acquisition fees received by the advisor as percentage of acquisition price | 1.00% | ||
Acquisition fees received by the advisor | 100,000 | ||
Proceeds from offering | 2,700,000 | ||
Purchase price allocation, land and improvements | 1,200,000 | ||
Purchase price allocation, building and improvements | 9,200,000 | ||
Purchase price allocation, furnitures and fixtures | 500,000 | ||
Asset capitalization rate | 11.30% | ||
Hampton Inn - Des Moines [Member] | Revolving Promissory Note [Member] | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Proceeds from revolving promissory note | 8,200,000 | ||
Debt instrument, face amount | 10,000,000 | ||
Debt Instrument, Term | 1 year | ||
Interest rate, Libor plus | 6.00% | ||
Interest rate at end of period | 6.30% | ||
Origination fee | $100,000 |
Acquisitions_Amounts_of_Revenu
Acquisitions (Amounts of Revenue and Net Income Included in Consolidated Statements of Operations) (Details) (Hampton Inn - Des Moines [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Hampton Inn - Des Moines [Member] | |
Business Acquisition [Line Items] | |
Rental revenue | $553,422 |
Net loss | ($167,689) |
Acquisitions_Unaudited_Pro_For
Acquisitions (Unaudited Pro Forma Results of Operations) (Details) (Hampton Inn - Des Moines [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Hampton Inn - Des Moines [Member] | ||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Pro forma rental revenue | $912,684 | $923,818 |
Pro forma net (loss)/income | ($181,475) | $89,039 |
Pro forma net (loss)/income per Company''s common share, basic and diluted | ($0.34) | $4.45 |
Selling_Commission_Dealer_Mana2
Selling Commission, Dealer Manager Fees and Other Offering Costs (Details) (USD $) | 3 Months Ended | 32 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | |
Selling Commission Dealer Manager Fees And Other Offering Costs [Abstract] | |||
Selling commissions and dealer manager fees | $511,107 | $600,000 | |
Other offering costs | $394,656 | $2,500,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||
Related liability for organization and offering costs is included in Due to affiliate | $1,831,978 | $1,934,970 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Acquisition fee | 109,000 | |
Related liability for organization and offering costs is included in Due to affiliate | $1,800,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | 13-May-15 | Apr. 15, 2015 | |
Subsequent Events [Line Items] | ||||
Distribution paid | $42,253 | |||
Proceeds from offering | 5,313,399 | |||
Value of common stock issued pursuant to Distribution Reinvestment Program | 8,286 | |||
Subsequent event [Member] | ||||
Subsequent Events [Line Items] | ||||
Shares of common stock issued pursuant to Distribution Reinvestment Program | 2,046 | |||
Discounted price per share | $9.50 | |||
Proceeds from offering | 68,088 | |||
Percentage of distribution paid from offering proceeds | 78.00% | |||
Value of common stock issued pursuant to Distribution Reinvestment Program | 19,438 | |||
Percentage of distribution paid from the issuance of common stock through the Company's DRIP | 22.00% | |||
Distribution declared | 13-May-15 | |||
Distribution on per day basis | 0.00164383 | |||
Number of days used to calculate daily amount of distribution | 365 days | |||
Annualized rate of dividend | 6.00% | |||
Face value of share | $10 | |||
Subsequent event [Member] | Distribution for the month ending March 31, 2015 [Member] | ||||
Subsequent Events [Line Items] | ||||
Distribution paid | 36,987 | |||
Subsequent event [Member] | Distributions for the period from December 11, 2014 (date of breaking escrow) through March 31, 2015 [Member] | ||||
Subsequent Events [Line Items] | ||||
Distribution paid | $87,526 |