Document And Entity Information
Document And Entity Information - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2017 | Aug. 01, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Lightstone Value Plus Real Estate Investment Trust III, Inc. | |
Entity Central Index Key | 1,563,756 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 13.7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Investment property: | ||
Land and improvements | $ 22,284,030 | $ 22,283,209 |
Building and improvements | 103,143,518 | 103,080,704 |
Furniture and fixtures | 15,846,099 | 15,133,479 |
Construction in progress | 668,670 | 130,249 |
Gross investment property | 141,942,317 | 140,627,641 |
Less accumulated depreciation | (6,474,756) | (3,862,125) |
Net investment property | 135,467,561 | 136,765,516 |
Investment in unconsolidated affiliated real estate entity | 19,293,939 | 0 |
Cash | 50,424,596 | 55,064,507 |
Restricted escrows | 1,034,047 | 851,441 |
Accounts receivable and other assets | 2,802,969 | 2,634,675 |
Total Assets | 209,023,112 | 195,316,139 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 3,773,669 | 2,684,346 |
Mortgages payable, net | 86,889,146 | 86,870,343 |
Due to related parties | 130,735 | 109,532 |
Distributions payable | 673,964 | 583,113 |
Total liabilities | 91,467,514 | 90,247,334 |
Commitments and Contingencies | ||
Company's stockholders' equity: | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 200,000,000 shares authorized, 13,666,491 and 11,656,877 shares issued and outstanding, respectively | 136,665 | 116,569 |
Additional paid-in-capital | 117,449,602 | 99,309,774 |
Subscription receivable | 0 | (105,000) |
Accumulated deficit | (12,123,159) | (6,345,110) |
Total Company stockholders' equity | 105,463,108 | 92,976,233 |
Noncontrolling interests | 12,092,490 | 12,092,572 |
Total Stockholders' Equity | 117,555,598 | 105,068,805 |
Total Liabilities and Stockholders' Equity | $ 209,023,112 | $ 195,316,139 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock, par value per share | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common Stock, par value per share | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 200,000,000 | 200,000,000 |
Common Stock, shares issued | 13,666,491 | 11,656,877 |
Common Stock, shares outstanding | 13,666,491 | 11,656,877 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues | $ 8,984,519 | $ 4,953,528 | $ 16,705,116 | $ 6,924,973 |
Expenses: | ||||
Property operating expenses | 5,221,527 | 2,802,497 | 10,019,911 | 4,101,638 |
Real estate taxes | 361,252 | 217,901 | 724,399 | 317,255 |
General and administrative costs | 615,164 | 893,906 | 1,054,877 | 1,498,834 |
Depreciation and amortization | 1,326,783 | 613,436 | 2,651,746 | 891,752 |
Total operating expenses | 7,524,726 | 4,527,740 | 14,450,933 | 6,809,479 |
Operating income | 1,459,793 | 425,788 | 2,254,183 | 115,494 |
Loss from investment in unconsolidated affiliated real estate entity | (813,170) | 0 | (1,325,877) | 0 |
Interest expense | (1,384,544) | (287,473) | (2,729,855) | (377,437) |
Other expense, net | (37,308) | (871) | (70,300) | (2,224) |
Net (loss)/income | (775,229) | 137,444 | (1,871,849) | (264,167) |
Less: net loss/(income) attributable to noncontrolling interests | 9 | (8) | 22 | 2 |
Net (loss)/income applicable to Company's common shares | $ (775,220) | $ 137,436 | $ (1,871,827) | $ (264,165) |
Net (loss)/income per Company's common shares, basic and diluted | $ (0.06) | $ 0.02 | $ (0.14) | $ (0.05) |
Weighted average number of common shares outstanding, basic and diluted | 13,662,457 | 6,686,377 | 13,129,718 | 5,765,835 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 30, 2017 - USD ($) | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Subscription Receivable [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
BALANCE at Dec. 31, 2016 | $ 105,068,805 | $ 116,569 | $ 99,309,774 | $ (105,000) | $ (6,345,110) | $ 12,092,572 |
BALANCE, shares at Dec. 31, 2016 | 11,656,877 | |||||
Net loss | (1,871,849) | $ 0 | 0 | 0 | (1,871,827) | (22) |
Distributions declared | (3,906,222) | 0 | 0 | 0 | (3,906,222) | 0 |
Distributions paid to noncontrolling interests | (60) | 0 | 0 | 0 | 0 | (60) |
Proceeds from offering | 18,944,234 | $ 18,974 | 18,820,260 | 105,000 | 0 | 0 |
Proceeds from offering, shares | 1,897,374 | |||||
Selling commissions and dealer manager fees | (1,759,714) | $ 0 | (1,759,714) | 0 | 0 | 0 |
Other offering costs | 17,499 | 0 | 17,499 | 0 | 0 | 0 |
Shares issued from distribution reinvestment program | 1,130,386 | $ 1,190 | 1,129,196 | 0 | 0 | 0 |
Shares issued from distribution reinvestment program, Shares | 118,988 | |||||
Redemption and cancellation of shares | (67,481) | $ (68) | (67,413) | 0 | 0 | 0 |
Redemption and cancellation of shares, shares | (6,748) | |||||
BALANCE at Jun. 31, 2017 at Jun. 30, 2017 | $ 117,555,598 | $ 136,665 | $ 117,449,602 | $ 0 | $ (12,123,159) | $ 12,092,490 |
BALANCE, shares at Jun. 31, 2017 at Jun. 30, 2017 | 13,666,491 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,871,849) | $ (264,167) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Loss from investment in unconsolidated affiliated real estate entity | 1,325,877 | 0 |
Depreciation and amortization | 2,651,746 | 891,752 |
Amortization of deferred financing costs | 225,841 | 89,167 |
Other non-cash adjustments | 20,918 | 2,935 |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (228,328) | (507,514) |
Increase in accounts payable and other accrued expenses | 1,122,653 | 1,566,032 |
Increase in due to related party | 21,203 | 99,899 |
Net cash provided by operating activities | 3,268,061 | 1,878,104 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (1,305,644) | (42,170,113) |
Investment in unconsolidated affiliated real estate entity | (20,619,816) | 0 |
Refundable escrow deposits | 0 | (3,000,000) |
Funding of restricted escrows | (182,606) | 0 |
Cash used in investing activities | (22,108,066) | (45,170,113) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving promissory notes payable - related party | 0 | 24,200,000 |
Payments on mortgage payable | (211,438) | 0 |
Payments on revolving promissory notes payable - related party | 0 | (10,055,281) |
Refund/(payment) of loan fees and expenses | 4,400 | (475,000) |
Proceeds from issuance of common stock | 18,944,234 | 28,972,810 |
Payment of commissions and offering costs | (1,784,576) | (4,320,812) |
Contributions from noncontrolling interests | 0 | 10,390,870 |
Distributions to noncontrolling interests | (60) | (60) |
Distributions to common stockholders | (2,684,985) | (1,118,696) |
Redemption and cancellation of common shares | (67,481) | (50,790) |
Net cash provided by financing activities | 14,200,094 | 47,543,041 |
Net change in cash | (4,639,911) | 4,251,032 |
Cash, beginning of year | 55,064,507 | 6,747,401 |
Cash, end of period | 50,424,596 | 10,998,433 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 2,488,162 | 114,645 |
Distributions declared, but not paid | 673,964 | 342,682 |
Commissions and other offering costs accrued but not paid | 67,178 | 380,269 |
Subscription receivable | 0 | 87,305 |
Value of shares issued from distribution reinvestment program | 1,130,386 | 449,338 |
Application of deposit to acquisition of investment property | 0 | 1,000,000 |
Investment property acquired but not paid | $ 9,032 | $ 81,626 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization [Abstract] | |
Organization | 1. Organization Lightstone Value Plus Real Estate Investment Trust III, Inc. (‘‘Lightstone REIT III’’), incorporated on October 5, 2012, in Maryland, elected to qualify to 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 has and will continue to 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 December 24, 2012 10.00 Lightstone REIT III invested the proceeds received from the Advisor in the Operating Partnership, and as a result, held a 99 The Company’s registration statement on Form S-11 (the “Offering”), pursuant to which it offered 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 an initial offering price of $ 10.00 10,000,000 95 9.50 10.00 10.00 The Offering, which terminated on March 31, 2017, raised aggregate gross proceeds of approximately $ 131.7 13.7 2.0 9.00 100 12.1 12.2 4.8 126.8 On April 21, 2017, the Company’s board of directors approved the termination of the DRIP effective May 15, 2017. Previously, the Company’s stockholders had an option to elect the receipt of shares of the Company’s common stock in lieu of cash distributions under the Company’s DRIP, however, all future distributions will be in the form of cash. In addition, through May 15, 2017 (the termination date of the DRIP), the Company had issued approximately 0.3 3.2 As of June 30, 2017, on a collective basis, the Company wholly owned and consolidated the operating results and financial condition of nine hospitality properties, or select services hotels, containing a total of 999 rooms. Additionally, as of June 30, 2017, the Company held a 22.5% ownership interest in RP Maximus Cove, LLC (the “Cove Joint Venture”), an affiliated real estate entity that owns and operates The Cove at Tiburon (“the Cove”), a multi-family residential property containing 281 units (see Note 3) that the Company does not consolidate but rather accounts for under the equity method of accounting. All of the Company’s properties are located within the United States. As of June 30, 2017, the hospitality properties’ average revenue per available room (“RevPAR”) was $89.37 and occupancy was 73% for the six months ended June 30, 2017. Additionally, as of June 30, 2017, the Cove was 86.8% occupied. 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’’), both affiliates of the Sponsor, may serve as property managers and/or the Company may utilize third-party property managers. Orchard Securities, LLC (the ‘‘Dealer Manager’’), a third-party not affiliated with the Company, the Sponsor or the Advisor, served as the dealer manager of the Offering until their termination on March 31, 2017, as a result of the termination of the Offering. In addition to the Property Managers, the Advisor is also an affiliate of the Sponsor. These related parties receive compensation and fees for services related to the investment and management of the Company’s assets. Noncontrolling Interests Partners of Operating Partnership On July 16, 2014, the Advisor contributed $ 2,000 200 Lightstone SLP III LLC (the ‘‘Special Limited Partner’’), a Delaware limited liability company of which Mr. Lichtenstein is the majority owner, is a special limited partner in the Operating Partnership and committed to make a significant equity investment (the “Contribution Agreement”) in the Company of up to $ 36.0 12.0 300.0 50,000 Through March 31, 2017 (the termination date of the Offering), the Special Limited Partner purchased an aggregate of approximately 242 12.1 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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, 2016. 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 III, 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. To qualify or maintain our qualification as a REIT, we engage in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, we are subject to U.S. federal and state income and franchise taxes from these activities. 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 June 30, 2017, Lightstone REIT III had a 99 Pro-Forma Financial Information The following table provides unaudited pro forma results of operations for the periods indicated, as if the Company’s acquisitions of the Hampton Inn Lansing (acquired on March 10, 2016), Courtyard Warwick (acquired on March 23, 2016), SpringHill Suites Green Bay (acquired on May 2, 2016), Home2 Suites Hotel Portfolio (acquired on August 2, 2016), Fairfield Inn Austin (acquired on September 16, 2016), Staybridge Suites Austin (acquired on October 7, 2016) and its 22.5 For the Three Months For the Six Months 2017 2016 2017 2016 Pro forma rental revenue $ 8,984,519 $ 9,009,026 $ 16,705,116 $ 16,787,686 Pro forma net loss (1) $ (775,220) $ (44,430) $ (2,141,215) $ (546,209) Pro forma net loss per Company's common share, basic and diluted (1) $ (0.06) $ (0.01) $ (0.16) $ (0.19) (1) Includes acquisition related expenses of $ 733,426 1,199,266 In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. In November 2016, the FASB issued guidance that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and the pronouncement requires a retrospective transition method of adoption. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliated Real Estate Entity | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliated Real Estate Entity | Investment in Unconsolidated Affiliated Real Estate 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. As of Entity Date of Ownership % June 30, December 31, RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) January 31, 2017 22.50 % $ 19,293,939 $ - The Cove Joint Venture On January 31, 2017, the Company, through a subsidiary of the Operating Partnership, REIT III COVE LLC (“REIT III Cove”) and REIT IV COVE LLC (“REIT IV Cove”), a wholly owned subsidiary of Lightstone Real Estate Income Trust, Inc. (“Lightstone IV”), a real estate investment trust also sponsored by the Sponsor and a related party, collectively, the “Assignees”, entered into an Assignment and Assumption Agreement (the “Assignment”) with another of the Lightstone IV’s wholly owned subsidiaries, REIT COVE LLC (the “Assignor”). Under the terms of the Assignment, the Assignees were assigned the rights and obligations of the Assignor with respect to that certain Sale and Purchase Agreement (the “Purchase Agreement”), dated September 29, 2016, made between the Assignor, as the purchaser, LSG Cove LLC (“LSG Cove”), an affiliate of the Sponsor and a related party, and Maximus Cove Investor LLC (“Maximus”), an unrelated third party (collectively, the “Buyer”), and RP Cove, L.L.C (the “Seller”) an unrelated third party, pursuant to which the Buyer would acquire the Seller’s membership interest in RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) for approximately $255.0 million (the “Cove Transaction”). The Cove Joint Venture owns and operates The Cove at Tiburon (“the Cove”), a 281-unit, luxury waterfront multifamily rental property located in Tiburon, California. Prior to entering into the Cove Transaction, Maximus previously owned a separate noncontrolling interest in the Joint Venture. On January 31, 2017, REIT IV Cove, REIT III Cove, LSG Cove, and Maximus (the “Members”) completed the Cove Transaction for aggregate consideration of approximately $ 255.0 80 175 20.0 22.5 573,750 1.0 The Company’s interest in the Cove Joint Venture is a non-managing interest. The Company determined that the Cove Joint Venture is a variable interest entity (“VIE”) and because the Company exerts significant influence over but does not control the Cove Joint Venture, it will account for its ownership interest in the Cove Joint Venture in accordance with the equity method of accounting. All distributions of earnings from the Cove Joint Venture will be made on a pro rata basis in proportion to each Members’ equity interest percentage. Any distributions in excess of earnings from the Cove Joint Venture will be made to the Members pursuant to the terms of the Cove Joint Venture’s operating agreement. An affiliate of Maximus is the asset manager of the Cove and receives certain fees as defined in the Property Management Agreement for the management of the Cove. The Company commenced recording its allocated portion of profit or losses and cash distributions beginning as of January 31, 2017 with respect to its membership interest of 22.5% in the Cove Joint Venture. In connection with the closing of the Cove Transaction, the Cove Joint Venture simultaneously entered into a $ 175.0 January 31, 2020 The Loan bears interest at Libor plus 3.85% through its initial maturity and Libor plus 4.15% during each of the extension periods. 43.8 10.9 Starting in 2013, the Cove has been undergoing an extensive refurbishment which is substantially completed. The Members intend to use remaining proceeds from the Loan and to invest additional capital if necessary to complete the remainder of the refurbishment. The Guarantor provided an additional guarantee of up to approximately $ 13.4 3.3 The Company has determined that the fair value of both the Loan Guarantee and the Refurbishment Guarantee are immaterial. The Cove Joint Venture Condensed Financial Information The Company’s carrying value of its interest in the Cove Joint Venture differs from its share of member’s equity reported in the condensed balance sheet of the Cove Joint Venture due to the Company’s basis of its investment in excess of the historical net book value of the Cove Joint Venture. The Company’s additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. For the For the Period Three Months (date of investment) (amounts in thousands) Ended through Revenue $ 3,127 $ 5,201 Property operating expenses 1,268 1,901 General and administrative costs 16 142 Depreciation and amortization 2,381 3,964 Operating loss (538) (806) Interest expense and other, net (2,278) (3,756) Net loss $ (2,816) $ (4,562) Company's share of net loss (22.50%) $ (633) $ (1,027) Additional depreciation and amortization expense (1) (180) (299) Company's loss from investment $ (813) $ (1,326) As of (amounts in thousands) June 30, 2017 Real estate, at cost (net) $ 152,813 Cash and restricted cash 3,262 Other assets 1,161 Total assets $ 157,236 Mortgage payable, net $ 173,116 Other liabilities 1,662 Members' deficit (1) (17,542) Total liabilities and members' deficit $ 157,236 (1) Additional depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. |
Mortgage payable, net
Mortgage payable, net | 6 Months Ended |
Jun. 30, 2017 | |
Loans Payable [Abstract] | |
Mortgage payable, net | Mortgage payable, net Weighted Description Interest as of Maturity Amount Due As of As of Revolving Credit Facility, secured by seven properties LIBOR + 4.95% 6.08% July 2019 $ 59,696,000 $ 59,696,000 $ 59,696,000 Promissory Note, secured by two properties 4.73% 4.73% October 2021 26,127,572 28,120,442 28,331,880 Total mortgages payable 5.65% $ 85,823,572 $ 87,816,442 $ 88,027,880 Less: Deferred financing costs (927,296) (1,157,537) Total mortgage payable, net $ 86,889,146 $ 86,870,343 Principal Maturities Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 212,814 $ 445,052 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ 87,816,442 Less: Deferred financing costs (927,296) Total principal maturities, net $ 86,889,146 Debt Compliance The Revolving Credit Facility requires the maintenance of certain ratios, including debt service coverage and fixed leverage charge ratio. The Company is currently in compliance with respect to all of its financial debt covenants. |
Selling Commissions, Dealer Man
Selling Commissions, Dealer Manager Fees and Other Offering Costs | 6 Months Ended |
Jun. 30, 2017 | |
Selling Commission, Dealer Manager Fees And Other Offering Costs [Abstract] | |
Selling Commissions, Dealer Manager Fees and Other Offering Costs | 5. Selling Commissions, Dealer Manager Fees and Other Offering Costs Selling commissions and dealer manager fees were paid to the Dealer Manager, pursuant to various agreements which were terminated on March 31, 2017 as a result of the termination of the Offering, and other third-party offering costs 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. For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Selling commissions and dealer manager fees $ (1,748) $ 1,116,252 $ 1,759,714 $ 2,728,129 Other offering costs $ (61,767) $ 367,127 $ (17,499) $ 491,487 Since the Company’s inception through March 31, 2017 (the termination date of the Offering), it has incurred approximately $ 12.2 4.8 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 6. 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 | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Due to related parties and other transactions In addition to certain agreements with the Sponsor (see Note 1) and Dealer Manager (see Note 5), the Company has agreements with the Advisor to pay certain fees in exchange for services performed by the Advisor and/or its affiliated entities. Additionally, the Company’s ability to secure financing and its real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements. For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Acquisition Fees (general and administrative costs) $ - $ 182,500 $ 573,750 $ 411,500 Asset Management Fees (general and administrative costs) 320,572 - 322,618 - Total $ 320,572 $ 182,500 $ 896,368 $ 411,500 The acquisition fee for the Cove Joint Venture of $ 573,750 From time to time, the Company may purchase title insurance from an agency in which its Sponsor owns a 50% limited partnership interest (the “Affiliated Title Insurance Agency”). Because the Affiliated Title Insurance Agency receives fees for providing title insurance, our Advisor may face a conflict of interest when considering the terms of purchasing title insurance from the Affiliated Title Insurance Agency. However, before the Company purchases any title insurance, an independent title consultant with more than 25 years of experience in the title insurance industry reviews the transaction, and performs market research and competitive analysis on our behalf. During the three and six months ended June 30, 2016 the Company paid $ 4,250 39,125 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, deposits, accounts receivable and other assets, accounts payable and other accrued expenses and due to/from related parties approximated their fair values because of the short maturity of these instruments. As of June 30, 2017 As of December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Mortgages payable $ 87,816,442 $ 87,156,248 $ 88,027,880 $ 87,252,072 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 | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 9. 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. |
Distributions
Distributions | 6 Months Ended |
Jun. 30, 2017 | |
Distributions [Abstract] | |
Distributions | 10. Distributions Distribution Payments On May 15, 2017, June 15, 2017 and July 14, 2017, the Company paid distributions for the months ended April 30, 2017, May 31, 2017 and June 30, 2017, respectively, of $ 2,043,824 2,019,879 99 Distribution Declaration On August 8, 2017, the Board of Directors authorized and the Company declared a distribution for each month during the three-month period ending December 31, 2017. The distributions will be calculated based on shareholders of record each day during the month at a rate of $ 0.00164383 365 6.0 10.00 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017, Lightstone REIT III had a 99 Pro-Forma Financial Information The following table provides unaudited pro forma results of operations for the periods indicated, as if the Company’s acquisitions of the Hampton Inn Lansing (acquired on March 10, 2016), Courtyard Warwick (acquired on March 23, 2016), SpringHill Suites Green Bay (acquired on May 2, 2016), Home2 Suites Hotel Portfolio (acquired on August 2, 2016), Fairfield Inn Austin (acquired on September 16, 2016), Staybridge Suites Austin (acquired on October 7, 2016) and its 22.5 For the Three Months For the Six Months 2017 2016 2017 2016 Pro forma rental revenue $ 8,984,519 $ 9,009,026 $ 16,705,116 $ 16,787,686 Pro forma net loss (1) $ (775,220) $ (44,430) $ (2,141,215) $ (546,209) Pro forma net loss per Company's common share, basic and diluted (1) $ (0.06) $ (0.01) $ (0.16) $ (0.19) (1) Includes acquisition related expenses of $ 733,426 1,199,266 |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. In November 2016, the FASB issued guidance that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and the pronouncement requires a retrospective transition method of adoption. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial position, results of operations or cash flows. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of Pro Forma Results of Operations | For the Three Months For the Six Months 2017 2016 2017 2016 Pro forma rental revenue $ 8,984,519 $ 9,009,026 $ 16,705,116 $ 16,787,686 Pro forma net loss (1) $ (775,220) $ (44,430) $ (2,141,215) $ (546,209) Pro forma net loss per Company's common share, basic and diluted (1) $ (0.06) $ (0.01) $ (0.16) $ (0.19) (1) Includes acquisition related expenses of $ 733,426 1,199,266 |
Investment in Unconsolidated 19
Investment in Unconsolidated Affiliated Real Estate Entity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliated Entity | A summary of the Company’s investment in the unconsolidated affiliated entity is as follows: As of Entity Date of Ownership % June 30, December 31, RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) January 31, 2017 22.50 % $ 19,293,939 $ - |
Condensed Income Statement | The following table represents the unaudited condensed income statement for the Cove Joint Venture: For the For the Period Three Months (date of investment) (amounts in thousands) Ended through Revenue $ 3,127 $ 5,201 Property operating expenses 1,268 1,901 General and administrative costs 16 142 Depreciation and amortization 2,381 3,964 Operating loss (538) (806) Interest expense and other, net (2,278) (3,756) Net loss $ (2,816) $ (4,562) Company's share of net loss (22.50%) $ (633) $ (1,027) Additional depreciation and amortization expense (1) (180) (299) Company's loss from investment $ (813) $ (1,326) |
Condensed Balance Sheet | The following table represents the unaudited condensed balance sheet for the Cove Joint Venture: As of (amounts in thousands) June 30, 2017 Real estate, at cost (net) $ 152,813 Cash and restricted cash 3,262 Other assets 1,161 Total assets $ 157,236 Mortgage payable, net $ 173,116 Other liabilities 1,662 Members' deficit (1) (17,542) Total liabilities and members' deficit $ 157,236 (1) Additional depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. |
Mortgage payable, net (Tables)
Mortgage payable, net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Loans Payable [Abstract] | |
Mortgages Payable, Net | Mortgages payable, net consists of the following: Weighted Description Interest as of Maturity Amount Due As of As of Revolving Credit Facility, secured by seven properties LIBOR + 4.95% 6.08% July 2019 $ 59,696,000 $ 59,696,000 $ 59,696,000 Promissory Note, secured by two properties 4.73% 4.73% October 2021 26,127,572 28,120,442 28,331,880 Total mortgages payable 5.65% $ 85,823,572 $ 87,816,442 $ 88,027,880 Less: Deferred financing costs (927,296) (1,157,537) Total mortgage payable, net $ 86,889,146 $ 86,870,343 |
Schedule of Maturities of Long-term Debt | The following table, based on the initial terms of the mortgage, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of June 30, 2017: Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 212,814 $ 445,052 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ 87,816,442 Less: Deferred financing costs (927,296) Total principal maturities, net $ 86,889,146 |
Selling Commissions, Dealer M21
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Selling Commission, Dealer Manager Fees And Other Offering Costs [Abstract] | |
Summary of Selling Commission, Dealer Manager Fees and Other Offering Costs | The following table represents the selling commissions and dealer manager fees and other offering costs for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Selling commissions and dealer manager fees $ (1,748) $ 1,116,252 $ 1,759,714 $ 2,728,129 Other offering costs $ (61,767) $ 367,127 $ (17,499) $ 491,487 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Acquisition Fees (general and administrative costs) $ - $ 182,500 $ 573,750 $ 411,500 Asset Management Fees (general and administrative costs) 320,572 - 322,618 - Total $ 320,572 $ 182,500 $ 896,368 $ 411,500 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule Of Mortgage Payable | The estimated fair value of our mortgages payable is as follows: As of June 30, 2017 As of December 31, 2016 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Mortgages payable $ 87,816,442 $ 87,156,248 $ 88,027,880 $ 87,252,072 |
Organization (Details Textual)
Organization (Details Textual) - USD ($) | May 15, 2017 | Jul. 15, 2014 | Mar. 31, 2017 | Dec. 30, 2016 | Sep. 30, 2016 | Jul. 25, 2016 | Jun. 30, 2016 | Jul. 16, 2014 | Dec. 24, 2012 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Issuance of common shares, value | $ 18,944,234 | ||||||||||||
General partner ownership interest | 99.00% | ||||||||||||
Common Stock, Par Value | $ 0.01 | $ 0.01 | |||||||||||
Equity Method investment ,Percentage of Maximum Offering cost | 12.00% | ||||||||||||
Maximum Amount of Offering | $ 300,000,000 | ||||||||||||
Equity Method Investment, Aggregate Cost | 36,000,000 | $ 36,000,000 | |||||||||||
Issuance of Subordinated Participation Interest for Each Partner | 50,000 | $ 50,000 | |||||||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 1,759,714 | ||||||||||||
Payments of Stock Issuance Costs | $ 1,784,576 | $ 4,320,812 | |||||||||||
Stock Issued During Period, Shares, Dividend Reinvestment Plan | 300,000 | ||||||||||||
Distribution Reinvestment Offered Discounted Percentage | 95.00% | ||||||||||||
Proceeds from Issuance of Common Stock, Dividend Reinvestment Plan | $ 3,200,000 | ||||||||||||
RP Maximus Cove LLC [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Shares reserved for issuance | 10,000,000 | ||||||||||||
Percentage of Occupancy | 9.50% | ||||||||||||
Percentage Of Acquisition | 10.00% | ||||||||||||
General Partner [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Contribution from advisor | $ 2,000 | ||||||||||||
Number of limited partner units issued to advisor | 200 | ||||||||||||
Limited Partner [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Partners' Capital Account, Contributions | $ 12,100,000 | ||||||||||||
Partners' Capital Account, Units, Contributed | 242 | ||||||||||||
Lightstone Value Plus REIT III LLC [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Issuance of common shares, shares | 20,000 | 13,700,000 | |||||||||||
Issuance of common shares, value | $ 131,700,000 | ||||||||||||
Shares issued, price per share | $ 10 | ||||||||||||
General partner ownership interest | 99.00% | ||||||||||||
Company owned by David Lichtenstein [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Shares reserved for issuance, price per share | $ 9 | ||||||||||||
Issuance of common shares, value | $ 2,000,000 | ||||||||||||
Equity Method investment ,Percentage of Maximum Offering cost | 100.00% | ||||||||||||
Stock Offering [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Shares reserved for issuance | 242,012 | ||||||||||||
Shares reserved for issuance, price per share | $ 10 | $ 10 | $ 10 | $ 10 | $ 10 | ||||||||
Common Stock, Par Value | $ 10 | ||||||||||||
Proceeds from Contributions from Affiliates | $ 12,200,000 | ||||||||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 12,100,000 | ||||||||||||
Payments of Stock Issuance Costs | 4,800,000 | ||||||||||||
Proceeds from Issuance Initial Public Offering | $ 126,800,000 | ||||||||||||
Distribution Reinvestment Plan [Member] | |||||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||||
Shares reserved for issuance | 10,000,000 | ||||||||||||
Shares issued, price per share | $ 9.50 | $ 9.50 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Pro forma rental revenue | $ 8,984,519 | $ 9,009,026 | $ 16,705,116 | $ 16,787,686 | |
Pro forma net loss | [1] | $ (775,220) | $ (44,430) | $ (2,141,215) | $ (546,209) |
Pro forma net income per Company's common share, basic and diluted | [1] | $ (0.06) | $ (0.01) | $ (0.16) | $ (0.19) |
[1] | Includes acquisition related expenses of $733,426 and $1,199,266 for the three and six months ended June 30, 2016 in connection with the acquisition of the Hampton Inn Lansing, the Courtyard Warwick and the SpringHill Suites Green Bay. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Line Items] | |||
General partner ownership interest | 99.00% | ||
Acquisition fees received by the advisor | $ 733,426 | $ 1,199,266 | |
RP Maximus Cove LLC [Member] | |||
Accounting Policies [Line Items] | |||
Equity Method Investment, Ownership Percentage | 22.50% |
Investment in Unconsolidated 27
Investment in Unconsolidated Affiliated Real Estate Entity (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||
Business Acquisition, Date of Acquisition Agreement | Jan. 31, 2017 | |
Equity Method Investments | $ 19,293,939 | $ 0 |
RP Maximus Cove LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 22.50% | |
Equity Method Investments | $ 19,293,939 | $ 0 |
Investment in Unconsolidated 28
Investment in Unconsolidated Affiliated Real Estate Entity (Details 1) - USD ($) | 3 Months Ended | 5 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Schedule of Equity Method Investments [Line Items] | ||||||
Company's loss from investment | $ (813,170) | $ 0 | $ (1,325,877) | $ 0 | ||
RP Maximus Cove LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Revenue | 3,127,000 | $ 5,201,000 | ||||
Property operating expenses | 1,268,000 | 1,901,000 | ||||
General and administrative costs | 16,000 | 142,000 | ||||
Depreciation and amortization | 2,381,000 | 3,964,000 | ||||
Operating loss | (538,000) | (806,000) | ||||
Interest expense and other, net | (2,278,000) | (3,756,000) | ||||
Net loss | (2,816,000) | (4,562,000) | ||||
Company's share of net loss (22.50%) | (633,000) | (1,027,000) | ||||
Additional depreciation and amortization expense | [1] | (180,000) | (299,000) | |||
Company's loss from investment | $ (813,000) | $ (1,326,000) | ||||
[1] | Additional depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. |
Investment in Unconsolidated 29
Investment in Unconsolidated Affiliated Real Estate Entity (Details 2) $ in Thousands | Jun. 30, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Assets | $ 157,236 | |
Members' deficit | (17,542) | [1] |
Total liabilities and members' deficit | 157,236 | |
Cash and restricted cash [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Assets | 3,262 | |
Other Assets [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Assets | 1,161 | |
Other Liabilities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Liabilities | 1,662 | |
Real Estate [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Assets | 152,813 | |
Mortgage payable [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Summarized Financial Information, Liabilities | $ 173,116 | |
[1] | Additional depreciation and amortization expense relates to the difference between the Company’s basis in the Cove Joint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. |
Investment in Unconsolidated 30
Investment in Unconsolidated Affiliated Real Estate Entity (Details Textual) | 1 Months Ended |
Jan. 31, 2017USD ($) | |
Subsequent Event [Line Items] | |
Guarantor Obligations, Current Carrying Value | $ 43,800,000 |
Debt Instrument, Description of Variable Rate Basis | The Loan bears interest at Libor plus 3.85% through its initial maturity and Libor plus 4.15% during each of the extension periods. |
Investment Advisory Fees | $ 573,750 |
Business Acquisition Fee Percentage | 1.00% |
Refurbishment Guarantee [Member] | |
Subsequent Event [Line Items] | |
Guarantor Obligations, Current Carrying Value | $ 13,400,000 |
Parent Company [Member] | |
Subsequent Event [Line Items] | |
Guarantor Obligations, Current Carrying Value | 10,900,000 |
Cove Transaction [Member] | |
Subsequent Event [Line Items] | |
Aggregate purchase price | 255,000,000 |
Offering funds used in acquisition | 80,000,000 |
Proceeds from Issuance of Debt | $ 175,000,000 |
Business Acquisition, Percentage of Voting Interests Acquired | 22.50% |
Cove Transaction [Member] | Parent Company [Member] | |
Subsequent Event [Line Items] | |
Offering funds used in acquisition | $ 20,000,000 |
Revolving Promissory Note [Member] | Refurbishment Guarantee [Member] | |
Subsequent Event [Line Items] | |
Guarantor Obligations, Current Carrying Value | 3,300,000 |
Loan [Member] | |
Subsequent Event [Line Items] | |
Face amount | $ 175,000,000 |
Debt Instrument, Maturity Date | Jan. 31, 2020 |
Mortgage payable, net (Details)
Mortgage payable, net (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Long-term Debt, Gross | $ 87,816,442 | $ 88,027,880 |
Less: Deferred financing costs | (927,296) | (1,157,537) |
Total mortgage payable, net | $ 86,889,146 | 86,870,343 |
Revolving Credit Facility, secured by seven properties, Weighted Average Interest Rate | 5.65% | |
Revolving Credit Facility, secured by seven properties, Amount Due at Maturity | $ 85,823,572 | |
Revolving Credit Facility [Member] | ||
Long-term Debt, Gross | $ 59,696,000 | 59,696,000 |
Revolving Credit Facility, secured by seven properties, Interest Rate | LIBOR + 4.95% | |
Revolving Credit Facility, secured by seven properties, Weighted Average Interest Rate | 6.08% | |
Revolving Credit Facility, secured by seven properties, Maturity Date | July 2,019 | |
Revolving Credit Facility, secured by seven properties, Amount Due at Maturity | $ 59,696,000 | |
Promissory Note [Member] | ||
Long-term Debt, Gross | $ 28,120,442 | $ 28,331,880 |
Revolving Credit Facility, secured by seven properties, Interest Rate | 4.73% | |
Revolving Credit Facility, secured by seven properties, Weighted Average Interest Rate | 4.73% | |
Revolving Credit Facility, secured by seven properties, Maturity Date | October 2,021 | |
Revolving Credit Facility, secured by seven properties, Amount Due at Maturity | $ 26,127,572 |
Mortgage payable, net (Details
Mortgage payable, net (Details 1) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Principal maturities, Repayments of Principal in 2017 | $ 212,814 | |
Principal maturities, Repayments of Principal in 2018 | 445,052 | |
Principal maturities, Repayments of Principal in 2019 | 60,162,871 | |
Principal maturities, Repayments of Principal in 2020 | 486,092 | |
Principal maturities, Repayments of Principal in 2021 | 26,509,613 | |
Principal maturities, Repayments of Principal Thereafter | 0 | |
Principal maturities | 87,816,442 | $ 88,027,880 |
Less: Deferred financing costs | (927,296) | (1,157,537) |
Total principal maturities, net | $ 86,889,146 | $ 86,870,343 |
Selling Commissions, Dealer M33
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Selling Commission, Dealer Manager Fees and Other Offering Costs [Line Items] | ||||
Selling commissions and dealer manager fees | $ (1,748) | $ 1,116,252 | $ 1,759,714 | $ 2,728,129 |
Other offering costs | $ (61,767) | $ 367,127 | $ (17,499) | $ 491,487 |
Selling Commissions, Dealer M34
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details Textual) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |
Selling commissions and dealer manager fees | $ 12.2 |
Debt Related Commitment Fees and Debt Issuance Costs | $ 4.8 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Acquisition Fees (general and administrative costs) | $ 733,426 | $ 1,199,266 | ||
Advisor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Acquisition Fees (general and administrative costs) | $ 0 | 182,500 | $ 573,750 | 411,500 |
Asset Management Fees (general and administrative costs) | 320,572 | 0 | 322,618 | 0 |
Total | $ 320,572 | $ 182,500 | $ 896,368 | $ 411,500 |
Related Party Transactions (D36
Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | |||
Capitalized Acquisition Related Costs | $ 573,750 | ||
Insurance Agency [Member] | |||
Related Party Transaction [Line Items] | |||
Payments For Insurance Advisory Fee | $ 4,250 | $ 39,125 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Mortgages payable, Carrying Amount | $ 87,816,442 | $ 88,027,880 |
Mortgages payable, Estimated Fair Value | $ 87,156,248 | $ 87,252,072 |
Distributions (Details Textual)
Distributions (Details Textual) - USD ($) | Aug. 08, 2017 | Jun. 30, 2017 | Jun. 30, 2016 |
Distributions [Line Items] | |||
Distribution paid | $ 2,684,985 | $ 1,118,696 | |
Value of common stock issued pursuant to Distribution Reinvestment Program | 1,130,386 | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 3,268,061 | $ 1,878,104 | |
Subsequent Event [Member] | |||
Distributions [Line Items] | |||
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 | ||
Dividend Paid [Member] | |||
Distributions [Line Items] | |||
Distribution paid | 2,043,824 | ||
Value of common stock issued pursuant to Distribution Reinvestment Program | $ 23,945 | ||
Percentage Of Distribution Paid From Offering Proceeds | 99.00% | ||
Percentage Of Distribution Paid From Issuance Of Common Stock Through DRIP | 1.00% | ||
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | $ 2,019,879 |