Lightstone Value Plus REIT III (LVVR) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		13.6

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Investment property:
Land and improvements	$ 22,307,785	$ 22,283,209
Building and improvements	103,097,259	103,080,704
Furniture and fixtures	15,925,999	15,133,479
Construction in progress	1,325,956	130,249
Gross investment property	142,656,999	140,627,641
Less accumulated depreciation	(7,781,672)	(3,862,125)
Net investment property	134,875,327	136,765,516
Investment in unconsolidated affiliated real estate entity	18,552,937	0
Cash	48,643,755	55,064,507
Restricted escrows	1,248,355	851,441
Accounts receivable and other assets	3,271,335	2,634,675
Total Assets	206,591,709	195,316,139
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	3,814,284	2,684,346
Mortgages payable, net	86,898,432	86,870,343
Due to related parties	130,478	109,532
Distributions payable	672,881	583,113
Total liabilities	91,516,075	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, 13,644,326 and 11,656,877 shares issued and outstanding, respectively	136,443	116,569
Additional paid-in-capital	117,236,182	99,309,774
Subscription receivable	0	(105,000)
Accumulated deficit	(14,389,451)	(6,345,110)
Total Company stockholders' equity	102,983,174	92,976,233
Noncontrolling interests	12,092,460	12,092,572
Total Stockholders' Equity	115,075,634	105,068,805
Total Liabilities and Stockholders' Equity	$ 206,591,709	$ 195,316,139

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 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	13,644,326	11,656,877
Common Stock, shares outstanding	13,644,326	11,656,877

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues	$ 9,567,220	$ 7,623,494	$ 26,272,336	$ 14,548,467
Expenses:
Property operating expenses	5,323,565	4,081,502	15,343,476	8,183,140
Real estate taxes	374,030	261,822	1,098,429	579,077
General and administrative costs	612,268	841,658	1,667,145	2,340,492
Depreciation and amortization	1,326,475	959,128	3,978,221	1,850,880
Total operating expenses	7,636,338	6,144,110	22,087,271	12,953,589
Operating income	1,930,882	1,479,384	4,185,065	1,594,878
Loss from investment in unconsolidated affiliated real estate entity	(741,002)	0	(2,066,879)	0
Interest expense	(1,394,475)	(874,809)	(4,124,330)	(1,252,246)
Other income/(expense), net	2,183	(24,059)	(68,117)	(26,283)
Net (loss)/income	(202,412)	580,516	(2,074,261)	316,349
Less: net (income)/loss attributable to noncontrolling interests	0	(14)	22	(12)
Net (loss)/income applicable to Company's common shares	$ (202,412)	$ 580,502	$ (2,074,239)	$ 316,337
Net (loss)/income per Company's common shares, basic and diluted	$ (0.01)	$ 0.06	$ (0.16)	$ 0.05
Weighted average number of common shares outstanding, basic and diluted	13,654,309	8,963,369	13,306,503	6,833,481

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 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 (in shares) at Dec. 31, 2016		11,656,877
Net loss	(2,074,261)	$ 0	0	0	(2,074,239)	(22)
Distributions declared	(5,970,102)	0	0	0	(5,970,102)	0
Distributions paid to noncontrolling interests	(90)	0	0	0	0	(90)
Proceeds from offering	18,944,234	$ 18,974	18,820,260	105,000	0	0
Proceeds from offering (in shares)		1,897,373
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 (in shares)		118,988
Redemption and cancellation of shares	(281,123)	$ (290)	(280,833)	0	0	0
Redemption and cancellation of shares (in shares)		(28,912)
BALANCE at Sep. 30, 2017	$ 115,075,634	$ 136,443	$ 117,236,182	$ 0	$ (14,389,451)	$ 12,092,460
BALANCE (in shares) at Sep. 30, 2017		13,644,326

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income	$ (2,074,261)	$ 316,349
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Loss from investment in unconsolidated affiliated real estate entity	2,066,879	0
Depreciation and amortization	3,978,221	1,850,880
Amortization of deferred financing costs	339,067	353,510
Other non-cash adjustments	34,586	8,023
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(729,920)	(1,511,176)
Increase in accounts payable and other accrued expenses	1,202,393	1,961,853
Increase/(decrease) in due to related parties	20,946	(102,356)
Net cash provided by operating activities	4,837,911	2,877,083
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(1,992,273)	(102,115,026)
Investment in unconsolidated affiliated real estate entity	(20,619,816)	0
Refundable escrow deposits	0	(460,000)
Funding of restricted escrows	(396,915)	0
Cash used in investing activities	(23,009,004)	(102,575,026)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving promissory notes payable - related party	0	24,200,000
Payments on revolving promissory notes payable - related party	0	(26,255,281)
Proceeds from mortgage payable	0	45,370,000
Payments on mortgage payable	(315,379)	0
Refund/(payment) of loan fees and expenses	4,400	(1,397,118)
Proceeds from issuance of common stock	18,944,234	59,333,430
Payment of commissions and offering costs	(1,851,754)	(7,136,996)
Contribution from noncontrolling interests	0	11,390,870
Distributions to noncontrolling interests	(90)	(90)
Distributions to common stockholders	(4,749,947)	(1,735,118)
Redemption and cancellation of common shares	(281,123)	(181,019)
Net cash provided by financing activities	11,750,341	103,588,678
Net change in cash	(6,420,752)	3,890,735
Cash, beginning of year	55,064,507	6,747,401
Cash, end of period	48,643,755	10,638,136
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	3,776,641	686,053
Distributions declared, but not paid	672,881	487,809
Commissions and other offering costs accrued but not paid	0	413,336
Subscription receivable	0	110,862
Value of shares issued from distribution reinvestment program	1,130,386	1,043,898
Application of deposit to acquisition of investment property	0	869,660
Investment property acquired but not paid	$ 0	$ 81,627

Organization

Organization	9 Months Ended
	Sep. 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 expects to 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 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 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 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 13.4 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 September 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 September 30, 2017, the Company held a 22.5 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 September 30, 2017, the hospitality properties’ average revenue per available room (“RevPAR”) was $ 93.27 74 89.7 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	9 Months Ended
	Sep. 30, 2017
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, 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 September 30, 2017, Lightstone REIT III had a 99 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. 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 Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Pro forma rental revenue $ 9,567,220 $ 9,655,121 $ 26,272,336 $ 26,442,807 Pro forma net loss/(income) (1) $ (202,412) $ 172,270 $ (2,343,627) $ (373,939) Pro forma net loss/(income) per Company's common share, basic and diluted (1) $ (0.01) $ 0.02 $ (0.18) $ (0.05) (1) Includes acquisition related expenses of $ 661,283 1,860,549 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. This standard will be effective for us for applicable transactions beginning with the first quarter of 2018. 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	9 Months Ended
	Sep. 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 Ownership % September 30, 2017 December 31, 2016 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 18,552,937 $ - 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 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 Period January 31, 2017 For the Three Months Ended (date of investment) (amounts in thousands) September 30, 2017 through September 30, 2017 Revenue $ 3,523 $ 8,724 Property operating expenses 1,175 3,076 General and administrative costs 54 196 Depreciation and amortization 2,383 6,348 Operating loss (89) (896) Interest expense and other, net (2,406) (6,161) Net loss $ (2,495) $ (7,057) Company's share of net loss (22.50%) $ (561) $ (1,588) Additional depreciation and amortization expense (1) (180) (479) Company's loss from investment $ (741) $ (2,067) As of (amounts in thousands) September 30, 2017 Real estate, at cost (net) (1) $ 150,602 Cash and restricted cash 2,797 Other assets 1,822 Total assets $ 155,221 Mortgage payable, net $ 173,325 Other liabilities 1,933 Members' deficit (1) (20,037) Total liabilities and members' deficit $ 155,221 (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	9 Months Ended
	Sep. 30, 2017
Loans Payable [Abstract]
Mortgage payable, net	4. Mortgage payable, net Weighted Average Interest Rate as of As of Interest September 30, Maturity Amount Due September 30, As of Description Rate 2017 Date at Maturity 2017 December 31, 2016 Revolving Credit Facility, secured by seven properties LIBOR + 4.95% 6.14 % 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 28,016,501 28,331,880 Total mortgages payable 5.65 % $ 85,823,572 $ 87,712,501 $ 88,027,880 Less: Deferred financing costs (814,069) (1,157,537) Total mortgage payable, net $ 86,898,432 $ 86,870,343 Principal Maturities Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 108,873 $ 445,052 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ 87,712,501 Less: Deferred financing costs (814,069) Total principal maturiteis, net $ 86,898,432 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	9 Months Ended
	Sep. 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. The following table represents the selling commissions and dealer manager fees and other offering costs for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Selling commissions and dealer manager fees $ - $ 2,861,775 $ 1,759,714 $ 5,589,904 Other offering costs $ - $ (12,524) $ (17,499) $ 478,963 Since the Company’s inception through March 31, 2017 (the termination date of the Offering), it incurred approximately $ 12.2 4.8

Earnings per Share

Earnings per Share	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	7. 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 September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Acquisition Fees (general and administrative costs) $ - $ 592,500 $ 573,750 $ 1,004,000 Asset Management Fees (general and administrative costs) 382,022 - 704,640 - Total $ 382,022 $ 592,500 $ 1,278,390 $ 1,004,000 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 nine months ended September 30, 2016 the Company paid $ 104,648 143,768

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
Financial Instruments, Owned, at Fair Value [Abstract]
Financial Instruments	8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, 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 September 30, 2017 As of December 31, 2016 Estimated Fair Carrying Amount Value Carrying Amount Estimated Fair Value Mortgages payable $ 87,712,501 $ 87,058,296 $ 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	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2017
Distributions [Abstract]
Distributions	10. Distributions Distribution Payments On August 15, 2017, September 15, 2017 and October 16, 2017, the Company paid distributions for the months ended July 31, 2017, August 31, 2017 and September 30, 2017, respectively, of $ 2,063,879 1,569,850 76 494,029 24 Distribution Declaration On November 9, 2017, the Board of Directors authorized and the Company declared a distribution for each month during the three-month period ending March 31, 2018. 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)	9 Months Ended
	Sep. 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 September 30, 2017, Lightstone REIT III had a 99 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. 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 Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Pro forma rental revenue $ 9,567,220 $ 9,655,121 $ 26,272,336 $ 26,442,807 Pro forma net loss/(income) (1) $ (202,412) $ 172,270 $ (2,343,627) $ (373,939) Pro forma net loss/(income) per Company's common share, basic and diluted (1) $ (0.01) $ 0.02 $ (0.18) $ (0.05) (1) Includes acquisition related expenses of $ 661,283 1,860,549
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. This standard will be effective for us for applicable transactions beginning with the first quarter of 2018. 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)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Schedule of Pro Forma Results of Operations	For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Pro forma rental revenue $ 9,567,220 $ 9,655,121 $ 26,272,336 $ 26,442,807 Pro forma net loss/(income) (1) $ (202,412) $ 172,270 $ (2,343,627) $ (373,939) Pro forma net loss/(income) per Company's common share, basic and diluted (1) $ (0.01) $ 0.02 $ (0.18) $ (0.05) (1) Includes acquisition related expenses of $ 661,283 1,860,549

Investment in Unconsolidated 19

Investment in Unconsolidated Affiliated Real Estate Entity (Tables)	9 Months Ended
	Sep. 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 Ownership % September 30, 2017 December 31, 2016 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 18,552,937 $ -
Condensed Income Statement	The following table represents the unaudited condensed income statement for the Cove Joint Venture: For the Period January 31, 2017 For the Three Months Ended (date of investment) (amounts in thousands) September 30, 2017 through September 30, 2017 Revenue $ 3,523 $ 8,724 Property operating expenses 1,175 3,076 General and administrative costs 54 196 Depreciation and amortization 2,383 6,348 Operating loss (89) (896) Interest expense and other, net (2,406) (6,161) Net loss $ (2,495) $ (7,057) Company's share of net loss (22.50%) $ (561) $ (1,588) Additional depreciation and amortization expense (1) (180) (479) Company's loss from investment $ (741) $ (2,067) (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.
Condensed Balance Sheet	The following table represents the unaudited condensed balance sheet for the Cove Joint Venture: As of (amounts in thousands) September 30, 2017 Real estate, at cost (net) (1) $ 150,602 Cash and restricted cash 2,797 Other assets 1,822 Total assets $ 155,221 Mortgage payable, net $ 173,325 Other liabilities 1,933 Members' deficit (1) (20,037) Total liabilities and members' deficit $ 155,221 (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)	9 Months Ended
	Sep. 30, 2017
Loans Payable [Abstract]
Mortgages Payable, Net	Mortgages payable, net consists of the following: Weighted Average Interest Rate as of As of Interest September 30, Maturity Amount Due September 30, As of Description Rate 2017 Date at Maturity 2017 December 31, 2016 Revolving Credit Facility, secured by seven properties LIBOR + 4.95% 6.14 % 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 28,016,501 28,331,880 Total mortgages payable 5.65 % $ 85,823,572 $ 87,712,501 $ 88,027,880 Less: Deferred financing costs (814,069) (1,157,537) Total mortgage payable, net $ 86,898,432 $ 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 September 30, 2017: Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 108,873 $ 445,052 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ 87,712,501 Less: Deferred financing costs (814,069) Total principal maturiteis, net $ 86,898,432

Selling Commissions, Dealer M21

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables)	9 Months Ended
	Sep. 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 September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Selling commissions and dealer manager fees $ - $ 2,861,775 $ 1,759,714 $ 5,589,904 Other offering costs $ - $ (12,524) $ (17,499) $ 478,963

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Acquisition Fees (general and administrative costs) $ - $ 592,500 $ 573,750 $ 1,004,000 Asset Management Fees (general and administrative costs) 382,022 - 704,640 - Total $ 382,022 $ 592,500 $ 1,278,390 $ 1,004,000

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 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 September 30, 2017 As of December 31, 2016 Estimated Fair Carrying Amount Value Carrying Amount Estimated Fair Value Mortgages payable $ 87,712,501 $ 87,058,296 $ 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	Jun. 30, 2016	Jul. 16, 2014	Dec. 24, 2012	Mar. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance									242,012
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									1,851,754	$ 7,136,996
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
Occupancy Revenue									$ 93.27
Hotel Occupancy Rate									74.00%
RP Maximus Cove LLC [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Equity Method Investment, Ownership Percentage									22.50%
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	13,400,000
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%
Cove, LLC [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Hotel Occupancy Rate									89.70%
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
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

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Details) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Pro forma rental revenue		$ 9,567,220	$ 9,655,121	$ 26,272,336	$ 26,442,807
Pro forma net loss	[1]	$ (202,412)	$ 172,270	$ (2,343,627)	$ (373,939)
Pro forma net income per Company's common share, basic and diluted	[1]	$ (0.01)	$ 0.02	$ (0.18)	$ (0.05)
[1]	Includes acquisition related expenses of $661,283 and $1,860,549 for the three and nine months ended September 30, 2016 in connection with the acquisition of the Hampton Inn — Lansing, the Courtyard – Warwick, the SpringHill Suites – Green Bay, the Home2 Suites Hotel Portfolio and the Fairfield Inn – Austin.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accounting Policies [Line Items]
General partner ownership interest		99.00%
Acquisition fees received by the advisor	$ 661,283		$ 1,860,549
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 ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Date of Acquisition Agreement	Jan. 31, 2017
Equity Method Investments	$ 18,552,937	$ 0
RP Maximus Cove LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	22.50%
Equity Method Investments	$ 18,552,937	$ 0

Investment in Unconsolidated 28

Investment in Unconsolidated Affiliated Real Estate Entity (Details 1) - USD ($)		3 Months Ended		8 Months Ended	9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Schedule of Equity Method Investments [Line Items]
Company's loss from investment		$ (741,002)	$ 0		$ (2,066,879)	$ 0
RP Maximus Cove LLC [Member]
Schedule of Equity Method Investments [Line Items]
Revenue		3,523,000		$ 8,724,000
Property operating expenses		1,175,000		3,076,000
General and administrative costs		54,000		196,000
Depreciation and amortization		2,383,000		6,348,000
Operating loss		(89,000)		(896,000)
Interest expense and other, net		(2,406,000)		(6,161,000)
Net loss		(2,495,000)		(7,057,000)
Company's share of net loss (22.50%)		(561,000)		(1,588,000)
Additional depreciation and amortization expense	[1]	(180,000)		(479,000)
Company's loss from investment		$ (741,000)		$ (2,067,000)
[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	Sep. 30, 2017USD ($)
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Assets	$ 155,221
Members' deficit	(20,037)	[1]
Total liabilities and members' deficit	155,221
Cash and restricted cash [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Assets	2,797
Other Assets [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Assets	1,822
Other Liabilities [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Liabilities	1,933
Real Estate [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Assets	150,602
Mortgage payable [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Summarized Financial Information, Liabilities	$ 173,325
[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 ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Long-term Debt, Gross	$ 87,712,501	$ 88,027,880
Less: Deferred financing costs	(814,069)	(1,157,537)
Total mortgage payable, net	$ 86,898,432	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	6.14%
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	$ 28,016,501	$ 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 ($)	Sep. 30, 2017	Dec. 31, 2016
Principal maturities, Repayments of Principal in 2017	$ 108,873
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	87,712,501	$ 88,027,880
Less: Deferred financing costs	(814,069)	(1,157,537)
Total principal maturities, net	$ 86,898,432	$ 86,870,343

Selling Commissions, Dealer M33

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Selling Commission, Dealer Manager Fees and Other Offering Costs [Line Items]
Selling commissions and dealer manager fees	$ 0	$ 2,861,775	$ 1,759,714	$ 5,589,904
Other offering costs	$ 0	$ (12,524)	$ (17,499)	$ 478,963

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Acquisition Fees (general and administrative costs)		$ 661,283		$ 1,860,549
Advisor [Member]
Related Party Transaction [Line Items]
Acquisition Fees (general and administrative costs)	$ 0	592,500	$ 573,750	1,004,000
Asset Management Fees (general and administrative costs)	382,022	0	704,640	0
Total	$ 382,022	$ 592,500	$ 1,278,390	$ 1,004,000

Related Party Transactions (D36

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Sep. 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	$ 104,648	$ 143,768

Financial Instruments (Details)

Financial Instruments (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Mortgages payable, Carrying Amount	$ 87,712,501	$ 88,027,880
Mortgages payable, Estimated Fair Value	$ 87,058,296	$ 87,252,072

Distributions (Details Textual)

Distributions (Details Textual) - USD ($)	Nov. 09, 2017	Sep. 30, 2017	Sep. 30, 2016
Distributions [Line Items]
Distribution paid		$ 4,749,947	$ 1,735,118
Value of common stock issued pursuant to Distribution Reinvestment Program		1,130,386
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		2,063,879
Value of common stock issued pursuant to Distribution Reinvestment Program		$ 494,029
Percentage Of Distribution Paid From Offering Proceeds		76.00%
Percentage Of Distribution Paid From Issuance Of Common Stock Through DRIP		24.00%
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 1,569,850