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 Real Estate Income Trust Inc. | |
Entity Central Index Key | 1,619,312 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Investment in related party | $ 37,000,000 | $ 37,000,000 |
Investments in unconsolidated affiliated real estate entities | 31,158,226 | 0 |
Cash | 15,293,700 | 21,874,240 |
Deposit and other assets | 25,267 | 5,818,713 |
Due from related parties | 0 | 28,696 |
Total Assets | 83,477,193 | 64,721,649 |
Liabilities and Stockholders' Equity | ||
Accounts payable and other accrued expenses | 35,852 | 267,726 |
Due to related parties | 53,609 | 0 |
Distributions payable | 587,318 | 413,275 |
Subordinated advances - related party | 12,843,707 | 12,703,876 |
Total liabilities | 13,520,486 | 13,384,877 |
Commitments and Contingencies | ||
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, 8,952,132 and 6,397,005 shares issued and outstanding, respectively | 89,521 | 63,970 |
Additional paid-in-capital | 75,586,926 | 52,616,396 |
Subscription receivable | 0 | (274,449) |
Accumulated deficit | (5,719,740) | (1,069,145) |
Total Stockholders' Equity | 69,956,707 | 51,336,772 |
Total Liabilities and Stockholders' Equity | $ 83,477,193 | $ 64,721,649 |
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 | 8,952,132 | 6,397,005 |
Common Stock, shares outstanding | 8,952,132 | 6,397,005 |
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 | |
Income: | ||||
Investment income | $ 1,134,667 | $ 600,366 | $ 3,367,000 | $ 1,103,133 |
Loss from investment in unconsolidated affiliated real estate entity | (741,002) | 0 | (2,066,879) | 0 |
Total income | 393,665 | 600,366 | 1,300,121 | 1,103,133 |
Expenses: | ||||
General and administrative costs | 265,960 | 85,273 | 766,996 | 207,553 |
Interest expense | 47,122 | 21,138 | 139,831 | 32,787 |
Total expenses | 313,082 | 106,411 | 906,827 | 240,340 |
Net income | $ 80,583 | $ 493,955 | $ 393,294 | $ 862,793 |
Net income per common share, basic and diluted | $ 0.01 | $ 0.13 | $ 0.05 | $ 0.43 |
Weighted average number of common shares outstanding, basic and diluted | 8,955,440 | 3,730,626 | 8,451,031 | 2,009,286 |
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] |
BALANCE at Dec. 31, 2016 | $ 51,336,772 | $ 63,970 | $ 52,616,396 | $ (274,449) | $ (1,069,145) |
BALANCE (in shares) at Dec. 31, 2016 | 6,397,005 | ||||
Net income | 393,294 | $ 0 | 0 | 0 | 393,294 |
Distributions declared | (5,043,889) | 0 | 0 | 0 | (5,043,889) |
Proceeds from offering | 25,164,695 | $ 25,060 | 24,865,186 | 274,449 | 0 |
Proceeds from offering (in shares) | 2,506,031 | ||||
Shares issued from distribution reinvestment program | 658,652 | $ 693 | 657,959 | 0 | 0 |
Shares issued from distribution reinvestment program (in shares) | 69,332 | ||||
Redemption and cancellation of shares | (196,419) | $ (202) | (196,217) | 0 | 0 |
Redemption and cancellation of shares (in shares) | (20,236) | ||||
Selling commissions and dealer manager fees | (2,330,905) | $ 0 | (2,330,905) | 0 | 0 |
Other offering costs | (25,493) | 0 | (25,493) | 0 | 0 |
BALANCE at Sep. 30, 2017 | $ 69,956,707 | $ 89,521 | $ 75,586,926 | $ 0 | $ (5,719,740) |
BALANCE (in shares) at Sep. 30, 2017 | 8,952,132 |
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 income | $ 393,294 | $ 862,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from investment in unconsolidated affiliated real estate entity | 2,066,879 | 0 |
Changes in assets and liabilities: | ||
Decrease/(increase) in other assets | 106,196 | (5,834) |
(Decrease)/increase in accounts payable and other accrued expenses | (13,150) | 4,969 |
Increase in accrued interest on subordinated advances - related party | 139,831 | 32,787 |
Increase/(decrease) in due to related parties | 82,305 | (37,774) |
Net cash provided by operating activities | 2,775,355 | 856,941 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in related party | 0 | (18,194,001) |
Deposit on real estate investment | 0 | (3,412,500) |
Investments in unconsolidated affiliated real estate entities | (27,537,856) | 0 |
Cash used in investing activities | (27,537,856) | (21,606,501) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from issuance of common stock | 25,164,695 | 37,950,067 |
Proceeds from subordinated advances - related party | 0 | 10,432,013 |
Payment of commissions and offering costs | (2,575,121) | (4,713,533) |
Redemption and cancellation of common stock | (196,419) | 0 |
Distributions paid to Company's common stockholders | (4,211,194) | (724,181) |
Net cash provided by financing activities | 18,181,961 | 42,944,366 |
Net change in cash | (6,580,540) | 22,194,806 |
Cash, beginning of year | 21,874,240 | 1,213,014 |
Cash, end of period | 15,293,700 | 23,407,820 |
Supplemental disclosure of cash flow information: | ||
Distributions declared, but not paid | 587,318 | 301,454 |
Commissions and other offering costs accrued but not paid | 0 | 352,045 |
Subscription receivable | 0 | 39,000 |
Value of shares issued from distribution reinvestment program | 658,652 | 215,248 |
Application of deposit to acquisition of investment property | $ 5,687,250 | $ 0 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2017 | |
Organization [Abstract] | |
Organization | 1. Organization Lightstone Real Estate Income Trust Inc. (‘‘Lightstone Income Trust’’), incorporated on September 9, 2014 Lightstone Income Trust sold 20,000 10.00 Lightstone Income Trust, together with its subsidiaries is collectively referred to as the ‘‘Company’’ and the use of ‘‘we,’’ ‘‘our,’’ ‘‘us’’ or similar pronouns refers to Lightstone Income Trust or the Company as required by the context in which any such pronoun is used. The Company’s registration statement on Form S-11 (the “Offering”), pursuant to which it offered to sell up to 30,000,000 0.01 10.00 10,000,000 95 9.14 10.00 10.00 The Offering, which terminated on March 31, 2017, raised aggregate gross proceeds of approximately $ 85.6 8.9 2.0 9.00 100 12.6 7.6 3.2 87.5 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 issued approximately 0.1 1.2 The Company has and expects to continue to seek to originate, acquire and manage a diverse portfolio of real estate-related investments. The Company may invest in mezzanine loans, first lien mortgage loans, second lien mortgage loans, bridge loans and preferred equity interests, in each case with a focus on investments intended to finance development or redevelopment opportunities. The Company may also invest in debt and derivative securities related to real estate assets. The Company expects that a majority of its investments by value will be secured by or related to properties or entities advised by, or wholly or partially, directly or indirectly owned by, the Sponsor, by its affiliates or by real estate investment programs sponsored by it. The Company has no employees. The Company retains the Advisor to manage its affairs on a day-to-day basis. 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. The Advisor is an affiliate of the Sponsor and will receive compensation and fees for services related to the investment and management of the Company’s assets. |
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 include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Income Trust The 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 debt investments and securities, the valuation of the investment in related party 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 statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. The consolidated financial statements include the accounts of Lightstone Income Trust 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. 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 guidance will not 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 June 2016, the FASB issued an accounting standards update which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. In January 2016, the FASB issued an accounting standards update that eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. 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 adoption of this standard will not have a material impact on the Company’s consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its current operations. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Real Estate Entities | 9 Months Ended |
Sep. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliated Real Estate Entities | 3. 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 % September 30, 2017 December 31, 2016 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 18,552,816 $ - 40 East End Ave. Pref Member LLC ( “40 East End Ave. Joint Venture”) March 31, 2017 33.30 % 12,605,410 - Total investments in unconsolidated affiliated real estate entities $ 31,158,226 $ - The Cove Joint Venture On September 29, 2016, the Company, through its wholly owned subsidiary, REIT Cove LLC (“REIT Cove”), LSG Cove LLC (“LSG Cove”), an affiliate of the Lightstone Group, LLC, the Company’s sponsor and a related party, and Maximus Cove Investor LLC (“Maximus”), an unrelated third party (collectively, the “Buyer”), entered into an agreement of sale and purchase with an unrelated third party, RP Cove, L.L.C (the “Seller”), 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 On January 31, 2017, REIT Cove entered into an Assignment and Assumption Agreement (the “Assignment”) with another of the Company’s wholly owned subsidiaries, REIT IV COVE LLC (“REIT IV Cove”) and REIT III COVE LLC (“REIT III Cove”), a subsidiary of the operating partnership of Lightstone Value Plus Real Estate Investment Trust III, Inc., a real estate investment trust also sponsored by the Company’s sponsor and a related party, and together with REIT IV Cove, collectively, the “Assignees”. Under the terms of the Assignment, the Assignees were assigned the rights and obligations of REIT Cove with respect to the Cove Transaction. 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 loss and cash distributions beginning as of January 31, 2017 with respect to its membership interest of 22.5% in the Cove Joint Venture. In connection with the closing of the Cove Transaction, the Cove Joint Venture simultaneously entered into a $ 175.0 January 31, 2020 The Loan bears interest at Libor plus 3.85% through its initial maturity and Libor plus 4.15% during each of the extension periods. 43.8 10.9 Starting in 2013, the Cove has been undergoing an extensive refurbishment which is substantially completed. The Members intend to use remaining proceeds from the Loan and to invest additional capital if necessary to complete the remainder of the refurbishment. The Guarantor provided an additional guarantee of up to approximately $ 13.4 3.3 The Company has determined that the fair value of both the Loan Guarantee and the Refurbishment Guarantee are immaterial. The Cove Joint Venture Condensed Financial Information The Company’s carrying value of its interest in the Cove Joint Venture differs from its share of member’s equity reported in the condensed balance sheet of the Cove Joint Venture due to the Company’s basis of its investment in excess of the historical net book value of the Cove Joint Venture. The Company’s additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. (amounts in thousands) For the Three Months Ended For the Period January 31, 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) $ 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. 40 East End Ave. Joint Venture On March 31, 2017, the Company entered into a joint venture agreement (the “40 East End Ave. Transaction”) with SAYT Master Holdco LLC, an entity majority-owned and controlled by David Lichtenstein, who also majority owns and controls the Company’s Sponsor, and a related party, (the “Seller”), providing for the Company to acquire 33.3 100 10.3 2.3 In accordance with the Company’s charter, a majority of the Company’s board of directors, including a majority of the Company’s independent directors not otherwise interested in the transaction, approved the 40 East End Ave. Transaction as fair and reasonable to the Company and on terms and conditions not less favorable to the Company than those available from unaffiliated third parties. The Company’s interest in the 40 East End Ave. Joint Venture is a non-managing interest. Because the Company exerts significant influence over but does not control the 40 East End Ave. Joint Venture, it will account for its ownership interest in the 40 East End Ave. Joint Venture in accordance with the equity method of accounting. All contributions to and distributions of earnings from the 40 East End Ave. Joint Venture will be made on a pro rata basis in proportion to each Member’s equity interest percentage. Any distributions in excess of earnings from the 40 East End Ave. Joint Venture will be made to the Members pursuant to the terms of its operating agreement. The Company will commence recording its allocated portion of earnings and cash distributions from the 40 East End Ave. Joint Venture beginning as of March 31, 2017 with respect to its membership interest of approximately 33.3 30.0 12 The 40 East End Ave. Joint Venture, through affiliates, owns a parcel of land located at the corner of 81 st As of (amounts in thousands) September 30, 2017 Real estate inventory $ 78,811 Cash and restricted cash 2,280 Other assets 270 Total assets $ 81,361 Mortgage payable, net $ 10,834 Other liabilities 2,610 Members' capital 67,917 Total liabilities and members' capital $ 81,361 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholder's Equity [Abstract] | |
Stockholder's Equity | 4. Stockholders’ Equity Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Subscription Receivable The subscription receivable relates to shares issued to the Company’s shareholders for which the proceeds have not yet been received by the Company as of the balance sheet date solely due to timing of transfers from the escrow agent holding the funds. Distributions 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 at a rate of $ 0.002191781 365 8.0 10.00 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, totaling $ 1,801,111 853,784 47 947,327 53 |
Selling Commissions, Dealer Man
Selling Commissions, Dealer Manager Fees and Other Offering Costs | 9 Months Ended |
Sep. 30, 2017 | |
Selling Commissions 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 that were terminated on March 31, 2017, in connection with 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 as costs are incurred. Organizational costs are expensed as general and administrative costs. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Selling commissions and dealer manager fees $ - $ 2,752,667 $ 2,330,905 $ 3,444,017 Other offering costs $ - $ (96,486) $ 25,493 $ 650,782 Since the Company’s inception through March 31, 2017 (the termination date of the Offering), it incurred approximately $ 7.6 3.2 |
Related Party Transaction and O
Related Party Transaction and Other Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transaction and Other Arrangements [Abstract] | |
Related Party Transaction and Other Arrangements | 6. Related Party Transaction and Other Arrangements In addition to certain agreements with the Sponsor 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. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Acquisition fees (1) $ - $ - $ 573,750 $ - Asset management fees (general and administrative costs) 156,112 - 417,919 - Total $ 156,112 $ - $ 991,669 $ - (1) The acquisition fee for the Cove Joint Venture of $ 573,750 Investment in Related Party 105-109 W. 28 th On November 25, 2015, the Company entered into an agreement (the “Moxy Transaction”) with various related party entities that provides for the Company to make aggregate preferred equity contributions (the “105-109 W. 28 th 20.0 th th 12 th th On August 30, 2016, the Company and the Developer amended the Moxy Transaction so that Company’s total aggregate contributions under the 105-109 W. 28 th 17.0 37.0 As of both September 30, 2017 and December 31, 2016, the 105-109 W. 28th Street Preferred Investment had an outstanding balance of $ 37.0 1,134,667 3,367,000 600,366 1,103,133 th Street Preferred Investment. The Company’s Advisor elected to waive the acquisition fee associated with this transaction. Subordinated Advances Related Party On March 18, 2016, the Company and its Sponsor entered into a subordinated unsecured loan agreement (the “Subordinated Agreement”) pursuant to which the Sponsor had committed to make a significant investment in the Company of up to $ 36.0 12.0 300.0 1.48 10.00 8.0 Distributions in connection with a liquidation of the Company initially will be made to holders of its Common Shares until holders of its Common Shares have received liquidation distributions equal to their respective net investments plus a cumulative, pre-tax, non-compounded annual return of 8.0 8 85.0 15.0 The Subordinated Advances and its related interest are subordinate to all of the Company’s obligations as well as to the holders of its Common Shares in an amount equal to the shareholder’s net investment plus a cumulative, pre-tax, non-compounded annual return of 8.0% and only potentially payable in the event of a liquidation of the Company. As of September 30, 2017, an aggregate of approximately $ 12.6 211,694 47,122 139,831 21,138 32,787 In connection with the termination of the Offering, on March 31, 2017, the Company and the Sponsor terminated the Subordinated Agreement. As a result of the termination, the Sponsor is no longer obligated to make Subordinated Advances to the Company. Interest will continue to accrue on the aggregate Subordinated Advances and repayment, if any, of the Subordinated Advances and accrued interest will be made according to the terms of the Subordinated Agreement disclosed above. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7 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. |
Summary of Significant Accoun14
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone Income Trust All inter-company accounts and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. |
New Accounting Pronouncements | New Accounting Pronouncements In 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 guidance will not 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 June 2016, the FASB issued an accounting standards update which replaces the incurred loss impairment methodology currently in use with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The new guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect that this guidance will have a material impact on its consolidated financial statements. In January 2016, the FASB issued an accounting standards update that eliminates the requirement for public business entities to disclose the method and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. 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 adoption of this standard will not have a material impact on the Company’s consolidated financial statements. The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its consolidated financial position, results of operations and cash flows, or do not apply to its current operations. |
Investments in Unconsolidated15
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments | A summary of the Company’s investments in the unconsolidated affiliated real estate entities 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 % $ 18,552,816 $ - 40 East End Ave. Pref Member LLC ( “40 East End Ave. Joint Venture”) March 31, 2017 33.30 % 12,605,410 - Total investments in unconsolidated affiliated real estate entities $ 31,158,226 $ - |
RP Maximus Cove, L.L.C [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments Summarized Income Statement Information | The following table represents the unaudited condensed income statement for the Cove Joint Venture: (amounts in thousands) For the Three Months Ended For the Period January 31, 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) |
Equity Method Investments, Summarized Balance Sheet Information | 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) $ 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. |
40 East End Ave. Pref Member LLC [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Equity Method Investments, Summarized Balance Sheet Information | The following table represents the unaudited condensed balance sheet for the 40 East End Ave. Joint Venture: As of (amounts in thousands) September 30, 2017 Real estate inventory $ 78,811 Cash and restricted cash 2,280 Other assets 270 Total assets $ 81,361 Mortgage payable, net $ 10,834 Other liabilities 2,610 Members' capital 67,917 Total liabilities and members' capital $ 81,361 |
Selling Commissions, Dealer M16
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Selling Commissions Dealer Manager Fees And Other Offering Costs [Abstract] | |
Summary Of Fees And Offering Costs | The following table represents the selling commissions and dealer manager 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 $ - $ 2,752,667 $ 2,330,905 $ 3,444,017 Other offering costs $ - $ (96,486) $ 25,493 $ 650,782 |
Related Party Transaction and17
Related Party Transaction and Other Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transaction and Other Arrangements [Abstract] | |
Schedule Of Fees And Offering Costs | For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Acquisition fees (1) $ - $ - $ 573,750 $ - Asset management fees (general and administrative costs) 156,112 - 417,919 - Total $ 156,112 $ - $ 991,669 $ - (1) The acquisition fee for the Cove Joint Venture of $ 573,750 |
Organization (Details Textual)
Organization (Details Textual) - USD ($) | May 15, 2017 | Sep. 12, 2014 | Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jul. 25, 2016 | Jun. 30, 2016 | Feb. 26, 2015 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Date of incorporation | Sep. 9, 2014 | ||||||||
Shares reserved for issuance, par value per share | $ 0.01 | $ 0.01 | |||||||
Gross proceeds from sale of common stock | $ 25,164,695 | $ 37,950,067 | |||||||
Issuance of common shares, value | 25,164,695 | ||||||||
Discounted Price Percentage | 95.00% | ||||||||
Adjusted Offering Price | $ 10 | $ 9.14 | |||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 2,330,905 | ||||||||
Payments of Stock Issuance Costs | $ 2,575,121 | $ 4,713,533 | |||||||
Estimated Net Assets Value Per Common Share | $ 10 | ||||||||
David Lichtenstein [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||
Lightstone Real Estate Income LLC [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Issuance of common shares, shares | 20,000 | ||||||||
Shares issued, price per share | $ 10 | ||||||||
Company owned by David Lichtenstein [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Issuance of common shares, value | $ 2,000,000 | ||||||||
Shares issued, price per share | $ 9 | ||||||||
Stock Offering [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Shares reserved for issuance | 30,000,000 | ||||||||
Shares reserved for issuance, par value per share | $ 0.01 | ||||||||
Shares reserved for issuance, price per share | $ 10 | ||||||||
Gross proceeds from sale of common stock | $ 85,600,000 | ||||||||
Issuance of common shares, shares | 8,900,000 | ||||||||
Proceeds from Contributions from Affiliates | $ 12,600,000 | ||||||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | 7,600,000 | ||||||||
Payments of Stock Issuance Costs | 3,200,000 | ||||||||
Proceeds from Issuance Initial Public Offering | $ 87,500,000 | ||||||||
Distribution Reinvestment Plan [Member] | |||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||||
Shares reserved for issuance | 10,000,000 | ||||||||
Issuance of common shares, shares | 100,000 | ||||||||
Issuance of common shares, value | $ 1,200,000 |
Investments in Unconsolidated19
Investments in Unconsolidated Affiliated Real Estate Entities (Equity Method Investments) (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Total investments in unconsolidated affiliated real estate entities | $ 31,158,226 | $ 0 | |
40 East End Ave. Pref Member LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | Mar. 31, 2017 | ||
Ownership % | 33.30% | 33.30% | |
Total investments in unconsolidated affiliated real estate entities | $ 12,605,410 | 0 | |
RP Maximus Cove, L.L.C [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Date of Ownership | Jan. 31, 2017 | ||
Ownership % | 22.50% | ||
Total investments in unconsolidated affiliated real estate entities | $ 18,552,816 | $ 0 |
Investments in Unconsolidated20
Investments in Unconsolidated Affiliated Real Estate Entities (Equity Method Investments Summarized Income Statement Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | 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) | |||
Rp Maximus Cove, Llc [Member] | Parent Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
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. |
Investments in Unconsolidated21
Investments in Unconsolidated Affiliated Real Estate Entities (Equity Method Investments Summarized Balance Sheet Information) (Details) $ in Thousands | Sep. 30, 2017USD ($) | |
RP Maximus Cove, L.L.C [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | $ 155,221 | |
Members' deficit | (20,037) | [1] |
Total liabilities and members' deficit | 155,221 | |
RP Maximus Cove, L.L.C [Member] | Real estate, at cost (net) [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 150,602 | |
RP Maximus Cove, L.L.C [Member] | Cash and restricted cash [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 2,797 | |
RP Maximus Cove, L.L.C [Member] | Other assets [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 1,822 | |
RP Maximus Cove, L.L.C [Member] | Mortgage payable, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 173,325 | |
RP Maximus Cove, L.L.C [Member] | Other liabilities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 1,933 | |
40 East End Ave. Pref Member LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 81,361 | |
Members' deficit | 67,917 | |
Total liabilities and members' deficit | 81,361 | |
40 East End Ave. Pref Member LLC [Member] | Cash and restricted cash [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 2,280 | |
40 East End Ave. Pref Member LLC [Member] | Other assets [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 270 | |
40 East End Ave. Pref Member LLC [Member] | Real Estate Inventory [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Total assets | 78,811 | |
40 East End Ave. Pref Member LLC [Member] | Mortgage payable, net [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | 10,834 | |
40 East End Ave. Pref Member LLC [Member] | Other liabilities [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Liabilities | $ 2,610 | |
[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 Unconsolidated22
Investments in Unconsolidated Affiliated Real Estate Entities (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Jan. 31, 2020 | Mar. 31, 2017 | Jan. 31, 2017 | Sep. 29, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Investment Advisory Fees | $ 573,750 | $ 0 | $ 0 | $ 573,750 | $ 0 | ||||
Business Acquisition Fee Percentage | 1.00% | ||||||||
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. | ||||||||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||||||||
Parent Company [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Guarantor Obligations, Current Carrying Value | 10,900,000 | ||||||||
Refurbishment Guarantee [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Guarantor Obligations, Current Carrying Value | 13,400,000 | ||||||||
Refurbishment Guarantee [Member] | Maximum [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Guarantor Obligations, Current Carrying Value | 3,300,000 | ||||||||
Loan [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 175,000,000 | ||||||||
Debt Instrument, Maturity Date | Jan. 31, 2020 | ||||||||
RP Maximus Cove, L.L.C [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Business Combination, Consideration Transferred | $ 255,000,000 | $ 255,000,000 | |||||||
Payments to Acquire Businesses, Gross | 80,000,000 | ||||||||
Proceeds from Issuance of Debt | 175,000,000 | ||||||||
Payments to Acquire Interest in Joint Venture | $ 20,000,000 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 22.50% | ||||||||
Lightstone Value Plus Real Estate Investment Trust, Inc. [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Proceeds from Contributions from Affiliates | $ 30,000,000 | ||||||||
Preferred Stock, Dividend Rate, Percentage | 12.00% | ||||||||
40 East End Ave. Pref Member LLC [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Business Combination, Consideration Transferred | $ 10,300,000 | ||||||||
Payments to Acquire Interest in Joint Venture | $ 2,300,000 | ||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 33.30% | ||||||||
Equity Method Investment, Ownership Percentage | 33.30% | 33.30% | 33.30% | 33.30% | |||||
David Lichtenstein [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 100.00% |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Nov. 09, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends, Common Stock | $ 5,043,889 | ||
Stock Issued During Period, Value, New Issues | 25,164,695 | ||
Proceeds from Issuance of Common Stock | 25,164,695 | $ 37,950,067 | |
Dividend Paid [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends, Common Stock | 1,801,111 | ||
Stock Issued During Period, Value, New Issues | $ 853,784 | ||
Percentage of Distribution Paid From Cash Flows Provided By Operations | 47.00% | ||
Proceeds from Issuance of Common Stock | $ 947,327 | ||
Percentage of Distribution Paid From Cash Flows from Issuance of Common stock | 53.00% | ||
Subsequent Event [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Distribution on per day basis | $ 0.002191781 | ||
Number of days used to calculate daily amount of distribution | 365 days | ||
Annualized rate of dividend | 8.00% | ||
Share Price | $ 10 |
Selling Commissions, Dealer M24
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 commissions and dealer manager fees | $ 0 | $ 2,752,667 | $ 2,330,905 | $ 3,444,017 |
Other offering costs | $ 0 | $ (96,486) | $ 25,493 | $ 650,782 |
Selling Commissions, Dealer M25
Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 31 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | |
Fees and Commissions | $ 0 | $ 2,752,667 | $ 2,330,905 | $ 3,444,017 | |
Noninterest Expense Offering Cost | $ 0 | $ (96,486) | $ 25,493 | $ 650,782 | |
IPO [Member] | |||||
Fees and Commissions | $ 7,600,000 | ||||
Noninterest Expense Offering Cost | $ 3,200,000 |
Related Party Transaction and26
Related Party Transaction and Other Arrangements (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Related Party Transaction [Line Items] | |||||
Acquisition fees | $ 573,750 | $ 0 | $ 0 | $ 573,750 | $ 0 |
Asset management fees (general and administrative costs) | 156,112 | 0 | 417,919 | 0 | |
Total | $ 156,112 | $ 0 | $ 991,669 | $ 0 |
Related Party Transaction and27
Related Party Transaction and Other Arrangements (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 30, 2016 | Mar. 18, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Nov. 25, 2015 | |
Related Party Transaction [Line Items] | ||||||||
Preferred Contributions, Aggregate Investments | $ 17,000,000 | $ 20,000,000 | ||||||
Increase In Preferred Contributions Aggregate Investments | $ 37,000,000 | |||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | $ 37,000,000 | $ 37,000,000 | $ 37,000,000 | |||||
Investment Income, Net | 1,134,667 | $ 600,366 | 3,367,000 | $ 1,103,133 | ||||
Notes Payable, Related Parties | 12,843,707 | $ 12,843,707 | $ 12,703,876 | |||||
Preferred Stock, Dividend Rate, Percentage | 12.00% | |||||||
Interest Expense | 47,122 | $ 21,138 | $ 139,831 | $ 32,787 | ||||
Capitalized Acquisition Related Costs | 573,750 | $ 573,750 | ||||||
Subordinated Debt [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Subordinated Debt | $ 36,000,000 | |||||||
Subordinated Debt Percentage To Equity Offering | 12.00% | |||||||
Maximum Amount Of Offering | $ 300,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.48% | |||||||
Shares Issued, Price Per Share | $ 10 | |||||||
Return On Investment Percentage | 8.00% | |||||||
Cumulative Annual Return On Net Investments Percent | 8.00% | 8.00% | ||||||
Liquidation Distributions Percent Payable To Company | 85.00% | |||||||
Liquidation Distributions Percent Payable To Sponsor | 15.00% | |||||||
Interest Payable | 211,694 | $ 211,694 | ||||||
Notes Payable, Related Parties | $ 12,600,000 | $ 12,600,000 |