Document And Entity Information
Document And Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
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 ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Investment property: | ||
Land and improvements | $ 22,369,156 | $ 22,363,107 |
Building and improvements | 105,524,793 | 103,807,990 |
Furniture and fixtures | 17,056,560 | 16,120,582 |
Construction in progress | 316,996 | 1,642,275 |
Gross investment property | 145,267,505 | 143,933,954 |
Less accumulated depreciation | (10,439,041) | (9,107,322) |
Net investment property | 134,828,464 | 134,826,632 |
Investments in unconsolidated affiliated real estate entities | 30,648,900 | 17,805,991 |
Cash | 28,480,784 | 45,050,023 |
Restricted cash | 1,391,734 | 1,680,056 |
Accounts receivable and other assets | 2,640,762 | 2,111,857 |
Total Assets | 197,990,644 | 201,474,559 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 3,660,500 | 2,972,368 |
Mortgages payable | 86,845,438 | 86,902,784 |
Due to related parties | 514,154 | 162,918 |
Distributions payable | 692,102 | 694,333 |
Total liabilities | 91,712,194 | 90,732,403 |
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, 13,581,976 and 13,625,769 shares issued and outstanding, respectively | 135,820 | 136,258 |
Additional paid-in-capital | 116,633,887 | 117,061,644 |
Accumulated deficit | (22,583,603) | (18,548,148) |
Total Company stockholders' equity | 94,186,104 | 98,649,754 |
Noncontrolling interests | 12,092,346 | 12,092,402 |
Total Stockholders' Equity | 106,278,450 | 110,742,156 |
Total Liabilities and Stockholders' Equity | $ 197,990,644 | $ 201,474,559 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
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 | 13,581,976 | 13,625,769 |
Common Stock, shares outstanding | 13,581,976 | 13,625,769 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 7,586,298 | $ 7,720,597 |
Expenses: | ||
Property operating expenses | 4,973,389 | 4,798,384 |
Real estate taxes | 373,765 | 363,147 |
General and administrative costs | 732,338 | 439,713 |
Depreciation and amortization | 1,351,277 | 1,324,963 |
Total operating expenses | 7,430,769 | 6,926,207 |
Operating income | 155,529 | 794,390 |
Interest expense | (1,447,513) | (1,345,311) |
Loss from investments in unconsolidated affiliated real estate entities | (737,328) | (512,707) |
Other income/(expense), net | 5,037 | (32,992) |
Net loss | (2,024,275) | (1,096,620) |
Less: net loss attributable to noncontrolling interests | 26 | 13 |
Net loss applicable to Company's common shares | $ (2,024,249) | $ (1,096,607) |
Net loss per Company's common shares, basic and diluted | $ (0.15) | $ (0.09) |
Weighted average number of common shares outstanding, basic and diluted | 13,600,864 | 12,591,058 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2018 - USD ($) | Total | Common Shares [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total Noncontrolling Interests [Member] |
BALANCE at Dec. 31, 2017 | $ 110,742,156 | $ 136,258 | $ 117,061,644 | $ (18,548,148) | $ 12,092,402 |
BALANCE (in shares) at Dec. 31, 2017 | 13,625,769 | ||||
Net loss | (2,024,275) | $ 0 | 0 | (2,024,249) | (26) |
Distributions declared | (2,011,206) | 0 | 0 | (2,011,206) | 0 |
Distributions paid to noncontrolling interests | (30) | 0 | 0 | 0 | (30) |
Redemption and cancellation of shares | (428,195) | $ (438) | (427,757) | 0 | 0 |
Redemption and cancellation of shares (in shares) | (43,793) | ||||
BALANCE at Mar. 31, 2018 | $ 106,278,450 | $ 135,820 | $ 116,633,887 | $ (22,583,603) | $ 12,092,346 |
BALANCE (in shares) at Mar. 31, 2018 | 13,581,976 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (2,024,275) | $ (1,096,620) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Loss from investments in unconsolidated affiliated real estate entities | 737,328 | 512,707 |
Depreciation and amortization | 1,351,277 | 1,324,963 |
Amortization of deferred financing costs | 116,455 | 112,615 |
Other non-cash adjustments | 187 | 28,501 |
Changes in assets and liabilities: | ||
Increase in accounts receivable and other assets | (548,650) | (338,311) |
Increase in accounts payable and other accrued expenses | 422,694 | 602,800 |
Increase in due to related parties | 351,236 | 101,526 |
Net cash provided by operating activities | 406,252 | 1,248,181 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (1,068,112) | (830,851) |
Investment in unconsolidated affiliated real estate entities | (13,580,237) | (20,610,595) |
Cash used in investing activities | (14,648,349) | (21,441,446) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payments on mortgage payable | (113,800) | (108,763) |
(Payment)/refund of loan fees and expenses | (60,002) | 4,400 |
Proceeds from issuance of common stock | 0 | 18,413,803 |
Payment of commissions and offering costs | 0 | (1,594,342) |
Distributions to noncontrolling interests | (30) | (30) |
Distributions to common stockholders | (2,013,437) | (956,022) |
Redemption and cancellation of common shares | (428,195) | (42,519) |
Net cash (used in)/provided by financing activities | (2,615,464) | 15,716,527 |
Net change in cash and restricted cash | (16,857,561) | (4,476,738) |
Cash and restricted cash, beginning of year | 46,730,079 | 55,915,948 |
Cash and restricted cash, end of period | 29,872,518 | 51,439,210 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 1,304,187 | 1,220,426 |
Distributions declared, but not paid | 692,102 | 672,541 |
Commissions and other offering costs accrued but not paid | 0 | 320,926 |
Subscription receivable | 0 | 425,406 |
Value of shares issued from distribution reinvestment program | 0 | 816,948 |
Investment property acquired but not paid | $ 354,930 | $ 23,760 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2018 | |
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 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 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 par value $ 0.01 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 2.0 100 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 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 which 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 | 3 Months Ended |
Mar. 31, 2018 | |
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, 2017. 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 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. Effective January 1, 2018 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that 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. The Company adopted this standard using the retrospective transition method. As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: Three Months Ended March 31, 2018 2017 Cash $ 28,480,784 $ 50,503,801 Restricted cash 1,391,734 935,409 Total cash, cash equivalents and restricted cash $ 29,872,518 $ 51,439,210 Effective January 1, 2018, the Company adopted guidance issued by the FASB 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. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. The Company anticipates future acquisitions of real estate assets, if any, will likely qualify as an asset acquisition. Therefore, any future transaction costs associated with an asset acquisition will be capitalized and accounted for in accordance with this guidance. Effective January 1, 2018, the Company adopted guidance issued by the FASB that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the previous revenue recognition guidance. The new guidance requires companies to apply a five-step model in accounting for revenue arising from contracts with customers, as well as enhance disclosures regarding revenue recognition. Additionally, the sale of real estate will be required to follow the new model. The Company adopted this standard on January 1, 2018 using the modified retrospective transition method. Due to the short-term nature of the Company's revenue streams, the adoption of this standard did not have an impact on the amount and timing of revenue recognition for revenues from rooms and food, beverage and other ancillary services. The adoption of this standard had no impact on the Company's revenue or net income, and, therefore, no adjustment was recorded to the Company's opening balance of accumulated deficit. The Company also considered and determined that presenting revenue disaggregated by rooms and food, beverage and other depicts the appropriate categories about the nature and timing of its revenue streams and that no additional disaggregation is needed. See Note 3. In February 2016, the FASB issued an accounting standards update which supersedes the existing lease accounting model, and modifies both lessee and lessor accounting. The new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset, initially measured at the present value of lease payments, for both operating and financing leases, with classification affecting the pattern of expense recognition in the statement of earnings. For leases with a term of 12 months or less, lessees will be permitted to make an accounting policy election by class of underlying asset to not recognize lease liabilities and lease assets. The Company intends to adopt the standard on January 1, 2019 and apply certain practical expedients available to us upon adoption. The Company is continuing to evaluate the impact this guidance will have on its consolidated financial statements when adopted. 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. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Revenues | 3. Revenues Revenues consist of amounts derived from hotel operations, including occupied hotel rooms and sales of food, beverage and other ancillary services and are presented on a disaggregated basis below. Revenues are recorded net of any sales or occupancy tax collected from our guests. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The Company's contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the contract upon check-out by the customer from our hotel. The Company participates in frequent guest programs sponsored by the brand owners of our hotels whereby the brand owner allows guests to earn loyalty points during their hotel stay. The Company recognizes revenue at the amount earned that it will receive from the brand owner when a guest redeems their loyalty points by staying at one of the Company’s hotels. Revenue from food, beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized when these goods or services are provided to the customer and the Company’s contract performance obligations have been fulfilled Some contracts for rooms, food, beverage or other services require an upfront deposit which is recorded as deferred revenues (or contract liabilities) and recognized once the performance obligations are satisfied. The contract liabilities are not significant. The Company notes no significant judgements regarding the recognition of room, food and beverage or other revenues. The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended March 31, Revenues 2018 2017 Room $ 7,292,767 $ 7,450,752 Food, beverage and other 293,531 269,845 Total revenues $ 7,586,298 $ 7,720,597 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Real Estate Entities | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliated Real Estate Entities | 4. Investments in Unconsolidated Affiliated Real Estate Entities The entities listed below are partially owned by the Company. The Company accounts for these investments 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 these entities. As of Entity Date of Ownership Ownership % March 31, 2018 December 31, 2017 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 17,405,021 $ 17,805,991 LVP LIC Hotel JV LLC (the "Hilton Garden Inn Joint Venture") March 27, 2018 50.00 % 13,243,879 - Total investments in unconsolidated affiliated real estate entities $ 30,648,900 $ 17,805,991 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, 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 “Members”), completed the acquisition of all of RP Cove, L.L.C’s membership interest in RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) for aggregate consideration of approximately $ 255.0 80.0 175.0 The Cove Joint Venture owns and operates The Cove at Tiburon (“the Cove”), a multi-family complex consisting of 281-units, or 289,690 square feet, contained within 32 apartment buildings over 20.1 acres originally constructed in 1967, located in Tiburon, California. In connection with the acquisition, the Company paid the Advisor an acquisition fee of $ 0.6 1.0 The Company paid approximately $ 20.0 22.5 0.4 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 have and intend to continue to use the remaining proceeds from the Loan and to invest additional capital if necessary to complete the refurbishment. The Guarantor has 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. (amounts in thousands) For the Three Months Ended For the Period January 31, Revenues $ 3,596 $ 2,074 Property operating expenses 1,228 633 General and administrative costs 48 126 Depreciation and amortization 2,396 1,584 Operating loss (76) (269) Interest expense and other, net (2,571) (1,477) Net loss $ (2,647) $ (1,746) Company's share of net loss (22.50%) $ (595) $ (393) Additional depreciation and amortization expense (1) (180) (120) Company's loss from investment $ (775) $ (513) As of As of (amounts in thousands) March 31, 2018 December 31, 2017 Real estate, at cost (net) $ 149,033 $ 149,727 Cash and restricted cash 2,178 2,538 Other assets 1,667 1,541 Total assets $ 152,878 $ 153,806 Mortgage payable, net $ 173,472 $ 173,534 Other liabilities 2,678 2,830 Members' deficit (1) (23,272) (22,558) Total liabilities and members' deficit $ 152,878 $ 153,806 (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. Hilton Garden Inn Joint Venture On March 27, 2018, the Company and its Sponsor’s other public program, Lightstone Value Plus Real Estate Investment Trust II, Inc. (“Lightstone REIT II”), acquired, through LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) a 183-room, limited-service hotel located at 29-21 41 st 60.0 25.0 35.0 50.0 In connection with the acquisition, the Company accrued an acquisition fee of $ 0.3 1.0 The Company paid approximately $ 12.9 50.0 Hilton Garden Inn Joint Venture Financial Information (amounts in thousands) For the Period March 27, Revenues $ 169 Property operating expenses 69 Operating income 100 Interest expense (24) Net income $ 76 Company's share of net income (50.00%) $ 38 As of (amounts in thousands) March 31, 2018 Investment property, net $ 60,327 Cash 28 Other assets 491 Total assets $ 60,846 Mortgage payable, net $ 34,724 Other liabilities 234 Members' capital 25,888 Total liabilities and members' capital $ 60,846 |
Mortgage payable, net
Mortgage payable, net | 3 Months Ended |
Mar. 31, 2018 | |
Loans Payable [Abstract] | |
Mortgage payable, net | 5. 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% 6.71 % 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 27,793,827 27,907,627 Total mortgages payable 6.08 % $ 85,823,572 $ 87,489,827 $ 87,603,627 Less: Deferred financing costs (644,389) (700,843) Total mortgage payable, net $ 86,845,438 $ 86,902,784 Principal Maturities 2018 2019 2020 2021 2022 Thereafter Total Principal maturities $ 331,251 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ - $ 87,489,827 Less: Deferred financing costs (644,389) Total principal maturiteis, net $ 86,845,438 Debt Compliance Pursuant to the Company’s debt agreements, approximately $ 1.4 1.2 During the first quarter of 2018, the Company did not meet certain financial covenants on the non-recourse Revolving Credit Facility, secured by seven properties. On May 14, 2018, the lender provided a waiver with respect to these financial covenants for the testing period for the quarter ending March 31, 2018 in exchange for a modified paydown of the non-recourse Revolving Credit Facility. The Company may either pay the cash amount required per the terms of the non-recourse Revolving Credit Facility of $ 7.4 4.0 3.4 60 days |
Selling Commissions, Dealer Man
Selling Commissions, Dealer Manager Fees and Other Offering Costs | 3 Months Ended |
Mar. 31, 2018 | |
Selling Commission, Dealer Manager Fees And Other Offering Costs [Abstract] | |
Selling Commissions, Dealer Manager Fees and Other Offering Costs | Selling Commissions, Dealer Manager Fees and Other Offering Costs During our Offering, selling commissions and dealer manager fees were paid to the Dealer Manager or soliciting dealers, as applicable, pursuant to various agreements, and other third-party offering costs such as registration fees, due diligence fees, marketing costs, and professional fees were accounted for as a reduction against additional paid-in capital as costs were incurred. Any organizational costs were accounted for as general and administrative costs. During the three months ended March 31, 2017, we incurred approximately $ 1.7 0.1 From our inception through March 31, 2017 (the termination date of the Offering), we incurred approximately $ 12.2 4.8 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 7. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing earnings attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 8. 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 6), 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 March 31, 2018 2017 Acquisition fees (1) $ 300,000 $ 573,750 Development fees (2) 51,419 - Asset management fees (general and administrative costs) 386,340 2,046 Total $ 737,759 $ 575,796 (1) Acquisition fees of $ 300,000 573,750 (2) Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Financial Instruments | 9. 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 March 31, 2018 As of December 31, 2017 Carrying Amount Estimated Fair Carrying Amount Estimated Fair Mortgages payable $ 87,489,827 $ 86,340,974 $ 87,603,627 $ 86,729,748 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 | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, we are not a party to any material pending legal proceedings. |
Distributions
Distributions | 3 Months Ended |
Mar. 31, 2018 | |
Distributions [Abstract] | |
Distributions | 11. Distributions Distribution Payments On February 15, 2018, March 15, 2018 and April 14, 2018, the Company paid distributions for the months ended January 31, 2018, February 28, 2018 and March 31, 2018, respectively, totaling $ 2.0 Distribution Declaration On May 11, 2018, the Board of Directors authorized and the Company declared a distribution for each month during the three-month period ending September 30, 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 Accoun18
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 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. |
Recently Adopted Accounting Pronouncements | Effective January 1, 2018 the Company adopted guidance issued by the Financial Accounting Standards Board (“FASB”) that 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. The Company adopted this standard using the retrospective transition method. As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: Three Months Ended March 31, 2018 2017 Cash $ 28,480,784 $ 50,503,801 Restricted cash 1,391,734 935,409 Total cash, cash equivalents and restricted cash $ 29,872,518 $ 51,439,210 Effective January 1, 2018, the Company adopted guidance issued by the FASB 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. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. The Company anticipates future acquisitions of real estate assets, if any, will likely qualify as an asset acquisition. Therefore, any future transaction costs associated with an asset acquisition will be capitalized and accounted for in accordance with this guidance. Effective January 1, 2018, the Company adopted guidance issued by the FASB that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most of the previous revenue recognition guidance. The new guidance requires companies to apply a five-step model in accounting for revenue arising from contracts with customers, as well as enhance disclosures regarding revenue recognition. Additionally, the sale of real estate will be required to follow the new model. The Company adopted this standard on January 1, 2018 using the modified retrospective transition method. Due to the short-term nature of the Company's revenue streams, the adoption of this standard did not have an impact on the amount and timing of revenue recognition for revenues from rooms and food, beverage and other ancillary services. The adoption of this standard had no impact on the Company's revenue or net income, and, therefore, no adjustment was recorded to the Company's opening balance of accumulated deficit. The Company also considered and determined that presenting revenue disaggregated by rooms and food, beverage and other depicts the appropriate categories about the nature and timing of its revenue streams and that no additional disaggregation is needed. See Note 3. |
New Accounting Pronouncements | New Accounting Pronouncements In February 2016, the FASB issued an accounting standards update which supersedes the existing lease accounting model, and modifies both lessee and lessor accounting. The new guidance will require lessees to recognize a liability to make lease payments and a right-of-use asset, initially measured at the present value of lease payments, for both operating and financing leases, with classification affecting the pattern of expense recognition in the statement of earnings. For leases with a term of 12 months or less, lessees will be permitted to make an accounting policy election by class of underlying asset to not recognize lease liabilities and lease assets. The Company intends to adopt the standard on January 1, 2019 and apply certain practical expedients available to us upon adoption. The Company is continuing to evaluate the impact this guidance will have on its consolidated financial statements when adopted. 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 Accoun19
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule Of Cash and Cash Equivalents, And Restricted Cash | The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: Three Months Ended March 31, 2018 2017 Cash $ 28,480,784 $ 50,503,801 Restricted cash 1,391,734 935,409 Total cash, cash equivalents and restricted cash $ 29,872,518 $ 51,439,210 |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenues [Abstract] | |
Revenues From Hotel Operations | The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended March 31, Revenues 2018 2017 Room $ 7,292,767 $ 7,450,752 Food, beverage and other 293,531 269,845 Total revenues $ 7,586,298 $ 7,720,597 |
Investments in Unconsolidated21
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investment in Unconsolidated Affiliated Entity | A summary of the Company’s investments in the unconsolidated affiliated real estate entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2018 December 31, 2017 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 17,405,021 $ 17,805,991 LVP LIC Hotel JV LLC (the "Hilton Garden Inn Joint Venture") March 27, 2018 50.00 % 13,243,879 - Total investments in unconsolidated affiliated real estate entities $ 30,648,900 $ 17,805,991 |
RP Maximus Cove LLC [Member] | |
Condensed Income Statement | The following table represents the condensed income statements for the Cove Joint Venture: (amounts in thousands) For the Three Months Ended For the Period January 31, Revenues $ 3,596 $ 2,074 Property operating expenses 1,228 633 General and administrative costs 48 126 Depreciation and amortization 2,396 1,584 Operating loss (76) (269) Interest expense and other, net (2,571) (1,477) Net loss $ (2,647) $ (1,746) Company's share of net loss (22.50%) $ (595) $ (393) Additional depreciation and amortization expense (1) (180) (120) Company's loss from investment $ (775) $ (513) |
Condensed Balance Sheet | The following table represents the condensed balance sheets for the Cove Joint Venture: As of As of (amounts in thousands) March 31, 2018 December 31, 2017 Real estate, at cost (net) $ 149,033 $ 149,727 Cash and restricted cash 2,178 2,538 Other assets 1,667 1,541 Total assets $ 152,878 $ 153,806 Mortgage payable, net $ 173,472 $ 173,534 Other liabilities 2,678 2,830 Members' deficit (1) (23,272) (22,558) Total liabilities and members' deficit $ 152,878 $ 153,806 (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. |
Hilton Garden Inn [Member] | |
Condensed Income Statement | The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: (amounts in thousands) For the Period March 27, Revenues $ 169 Property operating expenses 69 Operating income 100 Interest expense (24) Net income $ 76 Company's share of net income (50.00%) $ 38 |
Condensed Balance Sheet | The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of (amounts in thousands) March 31, 2018 Investment property, net $ 60,327 Cash 28 Other assets 491 Total assets $ 60,846 Mortgage payable, net $ 34,724 Other liabilities 234 Members' capital 25,888 Total liabilities and members' capital $ 60,846 |
Mortgage payable, net (Tables)
Mortgage payable, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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% 6.71 % 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 27,793,827 27,907,627 Total mortgages payable 6.08 % $ 85,823,572 $ 87,489,827 $ 87,603,627 Less: Deferred financing costs (644,389) (700,843) Total mortgage payable, net $ 86,845,438 $ 86,902,784 |
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 March 31, 2018: 2018 2019 2020 2021 2022 Thereafter Total Principal maturities $ 331,251 $ 60,162,871 $ 486,092 $ 26,509,613 $ - $ - $ 87,489,827 Less: Deferred financing costs (644,389) Total principal maturiteis, net $ 86,845,438 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 Acquisition fees (1) $ 300,000 $ 573,750 Development fees (2) 51,419 - Asset management fees (general and administrative costs) 386,340 2,046 Total $ 737,759 $ 575,796 (1) Acquisition fees of $ 300,000 573,750 (2) Generally, capitalized and amortized over the estimated useful life of the associated asset. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments, Owned, at Fair Value [Abstract] | |
Schedule Of Mortgage Payable | The estimated fair value of our mortgages payable is as follows: As of March 31, 2018 As of December 31, 2017 Carrying Amount Estimated Fair Carrying Amount Estimated Fair Mortgages payable $ 87,489,827 $ 86,340,974 $ 87,603,627 $ 86,729,748 |
Organization (Details Textual)
Organization (Details Textual) - USD ($) | May 15, 2017 | Mar. 31, 2017 | Jul. 16, 2014 | Dec. 24, 2012 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Jul. 15, 2014 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
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 | |||||||||
Payments of Stock Issuance Costs | $ 0 | $ 1,594,342 | |||||||||
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 | ||||||||||
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 | |||||||||
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] | |||||||||||
Shares reserved for issuance, price per share | $ 10 | ||||||||||
Issuance of common shares, shares | 20,000 | 13,400,000 | |||||||||
Issuance of common shares, value | $ 131,700,000 | ||||||||||
Shares issued, price per share | $ 10 | ||||||||||
Company owned by David Lichtenstein [Member] | |||||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||||
Shares reserved for issuance, price per share | $ 10 | ||||||||||
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, 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 | ||||||||||
Common Stock, Shares Authorized | 30,000,000 | ||||||||||
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 Accoun26
Summary of Significant Accounting Policies (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Cash | $ 28,480,784 | $ 45,050,023 | $ 50,503,801 | |
Restricted cash | 1,391,734 | 1,680,056 | 935,409 | |
Total cash, cash equivalents and restricted cash | $ 29,872,518 | $ 46,730,079 | $ 51,439,210 | $ 55,915,948 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Line Items] | |
General partner ownership interest | 99.00% |
Revenues (Details)
Revenues (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | ||
Room | $ 7,292,767 | $ 7,450,752 |
Food, beverage and other | 293,531 | 269,845 |
Total revenues | $ 7,586,298 | $ 7,720,597 |
Investments in Unconsolidated29
Investments in Unconsolidated Affiliated Real Estate Entities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 30,648,900 | $ 17,805,991 |
RP Maximus Cove LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Business Acquisition, Date of Acquisition Agreement | Jan. 31, 2017 | |
Equity Method Investment, Ownership Percentage | 22.50% | |
Equity Method Investments | $ 17,405,021 | 17,805,991 |
Lvp Lic Hotel Jv Llc [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Business Acquisition, Date of Acquisition Agreement | Mar. 27, 2018 | |
Equity Method Investment, Ownership Percentage | 50.00% | |
Equity Method Investments | $ 13,243,879 | $ 0 |
Investments in Unconsolidated30
Investments in Unconsolidated Affiliated Real Estate Entities (Details 1) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||
Company's loss from investment | $ (737,328) | $ (512,707) | |||
Hilton Garden Inn [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue | $ 169 | ||||
Property operating expenses | 69 | ||||
Operating income (loss) | 100 | ||||
Interest expense and other, net | (24) | ||||
Net income (loss) | 76 | ||||
Company's share of net income (loss) | $ 38 | ||||
RP Maximus Cove LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue | $ 2,074 | 3,596 | |||
Property operating expenses | 633 | 1,228 | |||
General and administrative costs | 126 | 48 | |||
Depreciation and amortization | 1,584 | 2,396 | |||
Operating income (loss) | (269) | (76) | |||
Interest expense and other, net | (1,477) | (2,571) | |||
Net income (loss) | (1,746) | (2,647) | |||
Company's share of net income (loss) | (393) | (595) | |||
Additional depreciation and amortization expense | [1] | (120) | (180) | ||
Company's loss from investment | $ (513) | $ (775) | |||
[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. |
Investments in Unconsolidated31
Investments in Unconsolidated Affiliated Real Estate Entities (Details 2) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | |
Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Members' deficit | $ 25,888 | ||
Total liabilities and members' deficit | 60,846 | ||
Cash and restricted cash [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 28 | ||
Other Assets [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 491 | ||
Other Liabilities [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Liabilities | 234 | ||
Mortgage payable [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Liabilities | 34,724 | ||
Total assets [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 60,846 | ||
Investment property, net [Member] | Hilton Garden Inn [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 60,327 | ||
RP Maximus Cove LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 152,878 | $ 153,806 | |
Members' deficit | [1] | (23,272) | (22,558) |
Total liabilities and members' deficit | 152,878 | 153,806 | |
RP Maximus Cove LLC [Member] | Cash and restricted cash [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 2,178 | 2,538 | |
RP Maximus Cove LLC [Member] | Other Assets [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 1,667 | 1,541 | |
RP Maximus Cove LLC [Member] | Other Liabilities [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Liabilities | 2,678 | 2,830 | |
RP Maximus Cove LLC [Member] | Real Estate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Assets | 149,033 | 149,727 | |
RP Maximus Cove LLC [Member] | Mortgage payable [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Summarized Financial Information, Liabilities | $ 173,472 | $ 173,534 | |
[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. |
Investments in Unconsolidated32
Investments in Unconsolidated Affiliated Real Estate Entities (Details Textual) - USD ($) | 1 Months Ended | |||
Mar. 27, 2018 | Jan. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
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. | |||
Additional Paid in Capital | $ 116,633,887 | $ 117,061,644 | ||
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 | |||
Investment Advisory Fees | $ 600,000 | |||
Business Acquisition Fee Percentage | 1.00% | |||
Joint Venture Investment Property Description | The Cove Joint Venture owns and operates The Cove at Tiburon (the Cove), a multi-family complex consisting of 281-units, or 289,690 square feet, contained within 32 apartment buildings over 20.1 acres originally constructed in 1967, located in Tiburon, California. | |||
Cove Transaction [Member] | Parent Company [Member] | ||||
Subsequent Event [Line Items] | ||||
Offering funds used in acquisition | $ 20,000,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 22.50% | |||
Additional Paid in Capital | $ 400,000 | |||
Hilton Garden Inn [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | $ 60,000,000 | |||
Offering funds used in acquisition | 25,000,000 | |||
Proceeds from Issuance of Debt | $ 35,000,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||
Investment Advisory Fees | $ 300,000 | |||
Business Acquisition Fee Percentage | 1.00% | |||
Hilton Garden Inn [Member] | Parent Company [Member] | ||||
Subsequent Event [Line Items] | ||||
Offering funds used in acquisition | $ 12,900,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 50.00% | |||
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 ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Long-term Debt, Gross | $ 87,489,827 | $ 87,603,627 |
Less: Deferred financing costs | (644,389) | (700,843) |
Total mortgage payable, net | $ 86,845,438 | 86,902,784 |
Weighted Average Interest Rate | 6.08% | |
Amount Due at Maturity | $ 85,823,572 | |
Revolving Credit Facility [Member] | ||
Long-term Debt, Gross | $ 59,696,000 | 59,696,000 |
Interest Rate | LIBOR + 4.95% | |
Weighted Average Interest Rate | 6.71% | |
Maturity Date | July 2,019 | |
Amount Due at Maturity | $ 59,696,000 | |
Promissory Note [Member] | ||
Long-term Debt, Gross | $ 27,793,827 | $ 27,907,627 |
Interest Rate | 4.73% | |
Weighted Average Interest Rate | 4.73% | |
Maturity Date | October 2,021 | |
Amount Due at Maturity | $ 26,127,572 |
Mortgage payable, net (Details
Mortgage payable, net (Details 1) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Principal maturities, Repayments of Principal in 2018 | $ 331,251 | |
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 in 2022 | 0 | |
Principal maturities, Repayments of Principal Thereafter | 0 | |
Principal maturities | 87,489,827 | $ 87,603,627 |
Less: Deferred financing costs | (644,389) | (700,843) |
Total principal maturities, net | $ 86,845,438 | $ 86,902,784 |
Mortgages payable, net (Details
Mortgages payable, net (Details Textual) - USD ($) $ in Millions | May 14, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Member] | |||
Revolving credit facility term payments | $ 7.4 | ||
Revolving credit facility cash payment | 4 | ||
Revolving Credit Facility [Member] | |||
Escrow Deposits Related to Debt Compliance | $ 1.4 | $ 1.2 | |
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument, Collateral Amount | $ 3.4 | ||
Debt Instrument, Payment Terms | 60 days |
Selling Commissions, Dealer M36
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Selling commissions and dealer manager fees | $ 12.2 | $ 1.7 |
Debt Related Commitment Fees and Debt Issuance Costs | $ 4.8 | $ 0.1 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Related Party Transaction [Line Items] | |||
Development fees | [1] | $ 51,419 | $ 0 |
Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Acquisition fees | [2] | 300,000 | 573,750 |
Asset management fees (general and administrative costs) | 386,340 | 2,046 | |
Total | $ 737,759 | $ 575,796 | |
[1] | Generally, capitalized and amortized over the estimated useful life of the associated asset. | ||
[2] | Acquisition fees of $300,000 and $573,750 were capitalized and are reflected in the carrying value of our investments in the Hilton Garden Inn Joint Venture and the Cove Joint Venture, respectively, which are included in investments in unconsolidated affiliated real estate entities on the consolidated balance sheets. |
Related Party Transactions (D38
Related Party Transactions (Details Textual) - USD ($) | Mar. 31, 2018 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | ||
Capitalized Acquisition Related Costs | $ 300,000 | $ 573,750 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Mortgages payable, Carrying Amount | $ 87,489,827 | $ 87,603,627 |
Mortgages payable, Estimated Fair Value | $ 86,340,974 | $ 86,729,748 |
Distributions (Details Textual)
Distributions (Details Textual) - USD ($) | May 11, 2018 | Mar. 31, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Distributions [Line Items] | ||||||
Distribution paid | $ 2,013,437 | $ 956,022 | ||||
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 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |