Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55773 | |
Entity Registrant Name | Lightstone Value Plus REIT IV, Inc. | |
Entity Central Index Key | 0001619312 | |
Entity Tax Identification Number | 47-1796830 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (732) | |
Local Phone Number | 367-0129 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,500,000 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Investment property: | ||
Construction in progress | $ 61,021,642 | $ 40,479,640 |
Investment in unconsolidated affiliated real estate entity | 10,793,908 | 10,988,023 |
Cash and cash equivalents | 18,622,753 | 31,406,204 |
Restricted cash and other assets | 855,332 | 116,419 |
Total Assets | 91,293,635 | 82,990,286 |
Liabilities and Stockholders’ Equity | ||
Mortgage payable, net | 11,889,881 | 16,000,000 |
Accounts payable, accrued expenses and other liabilities | 6,578,769 | 1,178,674 |
Distributions payable | 1,829,250 | 3,151,447 |
Subordinated advances - related party | 13,591,523 | 13,451,692 |
Total Liabilities | 33,889,423 | 33,781,813 |
Commitments and Contingencies | ||
Company’s Stockholders’ Equity: | ||
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 200.0 million shares authorized, 8.5 million shares issued and outstanding | 85,281 | 85,374 |
Additional paid-in-capital | 71,586,391 | 71,665,213 |
Accumulated deficit | (25,145,110) | (22,542,114) |
Total Company’s Stockholders’ Equity | 46,526,562 | 49,208,473 |
Noncontrolling interests | 10,877,650 | 0 |
Total Stockholders’ Equity | 57,404,212 | 49,208,473 |
Total Liabilities and Stockholders’ Equity | $ 91,293,635 | $ 82,990,286 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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 | 8,500,000 | 8,500,000 |
Common Stock, shares outstanding | 8,500,000 | 8,500,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income/(loss): | ||||
Investment income | $ 8,738 | $ 15,753 | $ 30,021 | $ 151,603 |
Gain from disposition of investment in unconsolidated affiliated real estate entity | 0 | 120,328 | 0 | 8,300,837 |
Gain on sale of marketable securities | 0 | 0 | 0 | 264,589 |
Earnings from investments in unconsolidated affiliated real estate entities | 1,172,990 | (601,185) | (194,115) | (1,515,479) |
Total income/(loss) | 1,181,728 | (465,104) | (164,094) | 7,201,550 |
Expenses: | ||||
General and administrative costs | 153,666 | 161,060 | 469,821 | 611,683 |
Interest expense | 47,123 | 46,994 | 139,831 | 139,960 |
Foreign currency transaction loss | 0 | 0 | 0 | 47,648 |
Total expenses | 200,789 | 208,054 | 609,652 | 799,291 |
Net income/(loss) | $ 980,939 | $ (673,158) | $ (773,746) | $ 6,402,259 |
Net income/(loss) per common share, basic and diluted | $ 0.12 | $ (0.08) | $ (0.09) | $ 0.75 |
Weighted average number of common shares outstanding, basic and diluted | 8,529,553 | 8,537,424 | 8,534,772 | 8,543,753 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net income/(loss) | $ 980,939 | $ (673,158) | $ (773,746) | $ 6,402,259 |
Other comprehensive loss: | ||||
Holding loss on marketable securities, available for sale | 0 | 0 | 0 | (135,500) |
Reclassification adjustment for gain included in net income | 0 | 0 | 0 | (264,589) |
Other comprehensive loss | 0 | 0 | 0 | (400,089) |
Comprehensive income/(loss) | $ 980,939 | $ (673,158) | $ (773,746) | $ 6,002,170 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total | |
Beginning balance, value at Dec. 31, 2019 | $ 85,952 | $ 72,215,685 | $ 400,089 | $ (23,324,903) | $ 49,376,823 | |
Beginning balance, shares at Dec. 31, 2019 | 8,595,224 | |||||
Net loss | 6,402,259 | 6,402,259 | ||||
Distributions declared | [1] | (851,742) | (851,742) | |||
Redemption and cancellation of shares | $ (578) | (550,472) | (551,050) | |||
Redemption and cancellation of shares (in shares) | (57,800) | |||||
Other comprehensive loss | (400,089) | (400,089) | ||||
Ending balance, value at Sep. 30, 2020 | $ 85,374 | 71,665,213 | (17,774,386) | 53,976,201 | ||
Ending balance, shares at Sep. 30, 2020 | 8,537,424 | |||||
Beginning balance, value at Jun. 30, 2020 | $ 85,374 | 71,665,213 | (17,101,228) | 54,649,359 | ||
Beginning balance, shares at Jun. 30, 2020 | 8,537,424 | |||||
Net loss | (673,158) | (673,158) | ||||
Ending balance, value at Sep. 30, 2020 | $ 85,374 | 71,665,213 | (17,774,386) | 53,976,201 | ||
Ending balance, shares at Sep. 30, 2020 | 8,537,424 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 85,374 | 71,665,213 | (22,542,114) | 49,208,473 | ||
Beginning balance, shares at Dec. 31, 2020 | 8,537,424 | |||||
Net loss | (773,746) | (773,746) | ||||
Distributions declared | [2] | (1,829,250) | (1,829,250) | |||
Contributions of noncontrolling interests | 10,877,650 | 10,877,650 | ||||
Redemption and cancellation of shares | $ (93) | (78,822) | (78,915) | |||
Redemption and cancellation of shares (in shares) | (9,284) | |||||
Ending balance, value at Sep. 30, 2021 | $ 85,281 | 71,586,391 | (25,145,110) | 10,877,650 | 57,404,212 | |
Ending balance, shares at Sep. 30, 2021 | 8,528,140 | |||||
Beginning balance, value at Jun. 30, 2021 | $ 85,374 | 71,665,213 | (24,296,799) | 47,453,788 | ||
Beginning balance, shares at Jun. 30, 2021 | 8,537,424 | |||||
Net loss | 980,939 | 980,939 | ||||
Distributions declared | [3] | (1,829,250) | (1,829,250) | |||
Contributions of noncontrolling interests | 10,877,650 | 10,877,650 | ||||
Redemption and cancellation of shares | $ (93) | (78,822) | (78,915) | |||
Redemption and cancellation of shares (in shares) | (9,284) | |||||
Ending balance, value at Sep. 30, 2021 | $ 85,281 | $ 71,586,391 | $ (25,145,110) | $ 10,877,650 | $ 57,404,212 | |
Ending balance, shares at Sep. 30, 2021 | 8,528,140 | |||||
[1] | Dividends per share were $0.10. | |||||
[2] | Dividends per share were $0.215. | |||||
[3] | Dividends per share were $0.215. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss)/income | $ (773,746) | $ 6,402,259 |
Adjustments to reconcile net (loss)/income to cash used in operating activities: | ||
Earnings from investments in unconsolidated affiliated real estate entities | 194,115 | 1,515,479 |
Gain from disposition of investment in unconsolidated affiliated real estate entity | 0 | (8,300,837) |
Gain on sale of marketable securities | 0 | (264,589) |
Amortization of discount on debt securities | 0 | (30,196) |
Foreign currency transaction loss | 0 | 47,648 |
Changes in assets and liabilities: | ||
Increase in deposits and other assets | (631,605) | (83,835) |
Increase/(decrease) in accounts payable, accrued expenses and other liabilities | 982,505 | (84,349) |
Increase in accrued interest on subordinated advances - related party | 139,831 | 139,960 |
Cash used in operating activities | (88,900) | (658,460) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (16,504,596) | (3,780,598) |
Proceeds from sale of marketable securities | 0 | 4,141,195 |
Proceeds from disposition of investment in unconsolidated affiliated real estate entity | 0 | 21,989,574 |
Cash (used in)/provided by investing activities | (16,504,596) | 22,350,171 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from mortgage financing | 16,000,000 | 0 |
Mortgage payments | (16,000,000) | 0 |
Payment of loan fees and expenses | (3,729,935) | 0 |
Contributions of noncontrolling interests | 10,877,650 | 0 |
Redemption and cancellation of common stock | (78,915) | (551,050) |
Distributions paid to Company’s common stockholders | (3,151,447) | (1,137,582) |
Cash provided by/(used in) financing activities | 3,917,353 | (1,688,632) |
Effect of exchange rate changes on cash and cash equivalents | 0 | (47,648) |
Net change in cash, cash equivalents and restricted cash | (12,676,143) | 19,955,431 |
Cash, cash equivalents and restricted cash, beginning of year | 31,490,826 | 14,263,182 |
Cash, cash equivalents and restricted cash, end of period | 18,814,683 | 34,218,613 |
Supplemental disclosure of cash flow information: | ||
Non-cash purchase of investment property | 4,680,726 | 827,233 |
Unpaid interest accrued and capitalized as mortgage payable and construction in progress | 52,847 | 0 |
Distributions declared, but not paid | 1,829,250 | 0 |
Amortization of deferred financing costs included in construction in progress | 337,329 | 343,759 |
Accrued exit fee | 770,000 | 0 |
Cash and cash equivalents | 18,622,753 | 34,033,071 |
Restricted cash | 191,930 | 185,542 |
Total cash, cash equivalents and restricted cash | $ 18,814,683 | $ 34,218,613 |
Structure
Structure | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Structure | 1. Structure Lightstone Value Plus REIT IV, Inc. (“Lightstone REIT IV”), which was formerly known as Lightstone Real Estate Income Trust, Inc. before September 15, 2021, is a Maryland corporation, formed on September 9, 2014 Lightstone REIT IV, together with its subsidiaries is collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT IV or the Company as required by the context in which any such pronoun is used. The Company has and intends to continue to seek opportunities to invest in real estate and real estate-related investments. The Company’s real estate-related investment may include mezzanine loans, mortgage loans, bridge loans and preferred equity interests, with a focus on development-related investments, including investments intended to finance development or redevelopment opportunities. The Company may also invest in debt and derivative securities related to real estate assets. A portion of the Company’s investments by value may be secured by or related to properties or entities advised by, or wholly or partially, directly or indirectly owned by, The Lightstone Group, LLC (the “Sponsor”), its affiliates or other real estate investment programs it sponsors. Although the Company expects that most of its investments will be of these various types, it may also make other investments. In fact, it may invest in whatever types of investments that it believes are in its best interests. The Company currently has one operating segment. As of September 30, 2021, it majority owned and consolidated the operating results of one development project, the Williamsburg Moxy Hotel and held an unconsolidated approximate 33.3 The Company’s advisor is Lightstone Real Estate Income LLC (the “Advisor”), which is majority owned by David Lichtenstein. On September 12, 2014, the Advisor contributed $ 200,000 20,000 10.00 222,222 2.0 9.00 The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company may also contract with other unaffiliated third-party property managers. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its Common Shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not begin the process of achieving a liquidity event prior to March 31, 2022, which is the fifth anniversary of the termination of its Offering, its charter requires either (a) an amendment to the Company’s charter to extend the deadline to begin the process of achieving a liquidity event, or (b) the holding of a stockholders meeting to vote on a proposal for an orderly liquidation of its portfolio. Noncontrolling Interests in Consolidated Subsidiaries Noncontrolling interests in consolidated subsidiaries include ownership interests in the Williamsburg Moxy Hotel Joint Venture with Lightstone Value Plus REIT III, Inc (“Lightstone REIT III”), a real estate investment trust also sponsored by the Company’s Sponsor and a related party. See Note 3 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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 REIT IV and Subsidiaries have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. The consolidated financial statements have been prepared in accordance with 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. 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 consolidated balance sheet as of December 31, 2020 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT IV and Subsidiaries (over which the Company exercises financial and operating control). 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. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, the Williamsburg Mortgage and accounts payable, accrued expenses and other liabilities approximate their fair values because of the short maturity of these instruments. The carrying amount of the approximates fair value because its interest rate is variable and reflective of market rates. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. COVID-19 Pandemic The World Health Organization declared COVID-19 a global pandemic on March 11, 2020 and since that time many of the previously imposed restrictions and other measures which were instituted in response have been subsequently reduced or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, the administration and ultimate effectiveness of vaccines, and the eventual timeline to achieve a sufficient level of herd immunity among the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the health of the U.S. economy for the foreseeable future. To-date, the COVID-19 pandemic has not had any significant impact on the Company’s Williamsburg Moxy Hotel development project. The Company’s other investment is its 33.3 The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the COVID-19 pandemic or its effect on the U.S. economy negatively impact the Williamsburg Moxy Hotel development project and/or investment in the 40 East End Ave. Joint Venture for an extended period, the Company’s business and financial results could be materially and adversely impacted. New Accounting Pronouncements The Company has reviewed and determined that 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. |
Williamsburg Moxy Hotel
Williamsburg Moxy Hotel | 9 Months Ended |
Sep. 30, 2021 | |
Williamsburg Moxy Hotel | |
Williamsburg Moxy Hotel | 3. Williamsburg Moxy Hotel On July 17, 2019, the Company, through its then wholly owned subsidiary, Bedford Avenue Holdings LLC acquired four adjacent parcels of land located at 353-361 Bedford Avenue in Brooklyn, New York (collectively, the “Williamsburg Land”), from unaffiliated third parties, for an aggregate purchase price of approximately $ 30.4 16.0 On August 5, 2021, the Company formed a joint venture (the “Williamsburg Moxy Hotel Joint Venture”) with Lightstone REIT III, pursuant to which Lightstone REIT III acquired 25 7.9 2.9 As a result, the Company and Lightstone REIT III have 75 25 The Company has determined that the Williamsburg Moxy Hotel Joint Venture is a variable interest entity and the Company is the primary beneficiary. As the Company is the member most closely associated with the Williamsburg Moxy Hotel Joint Venture and therefore has the power to direct the activities of the Williamsburg Moxy Hotel Joint Venture that most significantly impact its performance, the Company consolidates the operating results and financial condition of the Williamsburg Moxy Hotel Joint Venture and accounts for the ownership interest of Lightstone REIT III as noncontrolling interests. Contributions are allocated in accordance with each investor’s ownership percentage. Profit and cash distributions are allocated in accordance with each investor’s ownership percentage. As of September 30, 2021, the Williamsburg Moxy Hotel Joint Venture incurred and capitalized to construction in progress an aggregate of $ 61.0 0.6 0.8 0.3 0.9 Moxy Construction Loan On August 5, 2021, Williamsburg Moxy Hotel Joint Venture entered into a recourse construction loan facility for up to $ 77.0 The Moxy Construction Loan bears interest at LIBOR plus 9.00%, subject to a 9.50% floor, with monthly interest-only payments based on a rate of 7.50% with the accrued and unpaid interest due at maturity. The Moxy Construction Loan is collateralized by the Williamsburg Moxy Hotel. The Williamsburg Moxy Hotel Joint Venture received initial proceeds of $16.0 million under the Moxy Construction Loan and repaid the Williamsburg Mortgage ($16.0 million) in full. As of September 30, 2021, the outstanding principal balance of the Moxy Construction Loan was $16.1 million (including $0.1 million of interest capitalized to principal) which is presented, net of deferred financing fees of $4.2 million, on the consolidated balance sheet and is classified as Mortgage Payable, net. As of September 30, 2021, the remaining availability under the Moxy Construction Loan was up to $61.0 million. In connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture has provided certain completion and carry cost guarantees. Furthermore, in connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture paid $ 3.7 0.8 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliated Real Estate Entities | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Investments in Unconsolidated Affiliated Real Estate Entities | 4. Investments in Unconsolidated Affiliated Real Estate Entities 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 “40 East End Seller”), providing for the Company to acquire approximately 33.3 10.3 The Company’s ownership 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 accounts 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 are 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 are made to the members pursuant to the terms of its operating agreement. The Company commenced recording its allocated portion of earnings and cash distributions, if any, 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 the 40 East End Avenue Project, a luxury residential 29-unit condominium project located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of New York City. The 40 East End Avenue Project received its final TCO in March 2020 and through September 30, 2021, ten of the condominium units have been sold. On March 21, 2017, the 40 East End Ave. Joint Venture obtained financing from a financial institution of up to $ 85.3 95.2 90.2 5.0 December 19, 2021 LIBOR plus 2.45% Pursuant to the terms of the Condo Loan, the 40 East End Ave. Joint Venture was required to make a principal paydown on December 19, 2020 if the then outstanding principal balance of the Condo Loan had not been paid down to at least $ 81.0 11.7 2.0 0.7 9.7 The 40 East End Ave. Joint Venture was required to make another principal paydown of $ 8.0 73.0 58.9 The Condo Loan is scheduled to mature on December 19, 2021. Because of the impact of the COVID-19 pandemic on the pace of condominium unit sales, the 40 East End Ave. Joint Venture is engaged in discussions with the lender to extend the maturity date of the Condo Loan. However, there can be no assurance that the 40 East End Ave. Joint Venture will be successful in such endeavors. The Company’s Sponsor and its affiliates (collectively, the “40 East End Guarantors”) have provided certain guarantees with respect to the Condo Loan and the members have agreed to reimburse the 40 East End Guarantors for any balance that may become due under the guarantees (the “40 East End Guarantee”), of which the Company’s share is approximately 33.3%. The Company has determined that the fair value of its share of the 40 East End Guarantee is immaterial. In connection with the closing of the Condo Loan , the 40 East End Ave. Joint Venture used a portion of the initial loan proceeds to (i) fully repay the then outstanding principal balance of $ 80.3 0.2 9.5 The 40 East End Ave. Joint Venture subsequently redeemed an additional $ 3.5 11.0 Subsequent to the Company’s acquisition through September 30, 2021, it has made an aggregate of $ 5.7 10.8 11.0 The 40 East End Ave. Joint Venture Financial Information The following table represents the condensed income statements for the 40 East End Ave. Joint Venture: Schedule of financial information of joint venture (amounts in thousands) For the Three Months September 30, For the Three Months September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, Revenues $ 23,407 $ 3,008 $ 33,914 $ 15,910 Cost of goods sold 18,142 3,197 28,395 14,778 Impairment of real estate inventory 239 - 1,471 - Other expenses 628 668 1,878 1,916 Depreciation and amortization - - - - Operating income/(loss) 4,398 (857 ) 2,170 (784 ) Interest expense and other, net (876 ) (949 ) (2,753 ) (3,294 ) Net income/(loss) $ 3,522 $ (1,806 ) $ (583 ) $ (4,078 ) Company’s share of net income/(loss) (33.3%) $ 1,173 $ (601 ) $ (194 ) $ (1,358 ) The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) September 30, December 31, Real estate inventory $ 96,781 $ 125,086 Cash and restricted cash 699 4,446 Other assets 416 587 Total assets $ 97,896 $ 130,119 Mortgage payable, net $ 58,681 $ 89,876 Other liabilities 850 1,309 Members’ capital 38,365 38,934 Total liabilities and members’ capital $ 97,896 $ 130,119 The Cove Joint Venture On January 31, 2017, the Company, through its wholly owned subsidiary, REIT IV COVE LLC along with LSG Cove LLC, an affiliate of the Sponsor and a related party, REIT III COVE LLC, a subsidiary of the operating partnership of Lightstone REIT III and Maximus Cove Investor LLC (“Maximus”), an unrelated third party, 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 20.0 22.5 The Cove Joint Venture owned and operated The Cove at Tiburon (the “Cove”), a 281-unit, luxury waterfront multifamily residential property located in Tiburon, California from January 31, 2017 through February 12, 2020, As discussed below, the Company disposed of its 22.5 The Company accounted for its 22.5% membership interest in the Cove Joint Venture in accordance with the equity method of accounting because it exercised significant influence, but did not exercise financial and operating control over this entity. For the period from January 1, 2020 through February 12, 2020, the Company’s share of the Cove Joint Venture’s loss of approximately $ 0.7 0.2 On February 12, 2020, REIT IV Cove LLC, LSG Cove LLC and REIT III COVE LLC each redeemed their respective membership interests in the Cove Joint Venture for an aggregate redemption price of $ 87.6 22.5 21.9 8.2 As a result of the redemption of the Company’s 22.5% membership interest in the Cove Joint Venture on February 12, 2020, it no longer had an ownership interest in the Cove Joint Venture. During August 2020, the Company received $ 0.1 0.1 8.3 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | 5. Stockholders’ Equity Distributions On March 25, 2020, the Board of Directors determined to suspend regular monthly distributions for months ending after March 2020. Future distributions, if any, declared will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, operating and interest expenses, the Company’s ability to refinance near-term debt, as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. 2020 Special Distribution On December 21, 2020, the Board of Directors authorized and the Company declared a special distribution of $ 0.37 3.2 2021 Special Distribution On August 9, 2021, the Board of Directors authorized and the Company declared a special distribution of $ 0.215 1.8 Share Repurchase Program The Company’s share repurchase program may provide its stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions. On March 25, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. On March 25, 2020, the Board of Directors determined to suspend the share repurchase program effective immediately. Effective May 10, 2021, the Board of Directors reopened the share repurchase program for redemptions submitted in connection with a stockholder’s death or hardship and set the price for all such purchases to 100% of the NAV per Share ($ 8.50 Deaths that occurred subsequent to January 1, 2020 are eligible for consideration. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On an annual basis, the Company will not redeem in excess of 0.5 For the nine months ended September 30, 2021 the Company repurchased 9,284 8.50 Net Earnings per Common Share Net earnings per Common Share on a basic and fully diluted basis is earnings divided by the weighted average number of shares of common stock outstanding. The Company does not have any potentially dilutive securities. |
Related Party Transactions and
Related Party Transactions and Other Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Other Arrangements | 6. Related Party Transactions and Other Arrangements The Company has various agreements, including an advisory agreement, with the Advisor to pay certain fees, in exchange for services performed by the Advisor and/or its affiliated entities. As of September 30, 2021, the Company owed the Advisor and its affiliated entities $ 6,789 122 The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of Fees and offering costs For the Three Months Ended For the Nine Months Ended 2021 2020 2021 2020 Development cost reimbursement (1) $ 157,967 $ 75,188 $ 424,824 $ 207,944 Asset management fees (general and administrative costs) - - - 77,313 Total $ 157,967 $ 75,188 $ 424,824 $ 285,257 (1) Development costs that the Company reimburses its Advisor for are capitalized and are included in the carrying value of the Company’s investment in the Williamsburg Moxy Hotel which is classified as construction in progress on the consolidated balance sheets. The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission. Subordinated Advances – Related Party On March 18, 2016, the Company and its Sponsor entered into the Subordinated Agreement, a subordinated unsecured loan agreement, pursuant to which the Sponsor made aggregate principal advances of $ 12.6 1.48 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% on their respective net investments. Thereafter, only if additional liquidating distributions are available, the Company will be obligated to repay the outstanding principal advances and related accrued interest to the Sponsor, as described in the Subordinated Agreement. In the event that additional liquidation distributions are available after the Company repays its holders of common stock their respective net investments plus their 8% return on investment and then the outstanding principal advances under the Subordinated Agreement and accrued interest to its Sponsor, such additional distributions will be paid to holders of its Common Shares and its Sponsor: 85.0% of the aggregate amount will be payable to holders of the Company’s Common Shares and the remaining 15.0% will be payable to the Sponsor. The principal advances and the 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. In connection with the termination of the Offering, on March 31, 2017, the Company and the Sponsor simultaneously terminated the Subordinated Agreement. As a result of the termination, the Sponsor is no longer obligated to make any additional principal advances to the Company. Interest will continue to accrue on the outstanding principal advances and repayment, if any, of the principal advances and related accrued interest will be made according to the terms of the Subordinated Agreement disclosed above. As of both September 30, 2021 and December 31, 2020, an aggregate of approximately $ 12.6 959,510 819,679 47,123 139,831 46,994 139,960 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
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. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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 IV and Subsidiaries (over which the Company exercises financial and operating control). 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. |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, the Williamsburg Mortgage and accounts payable, accrued expenses and other liabilities approximate their fair values because of the short maturity of these instruments. The carrying amount of the approximates fair value because its interest rate is variable and reflective of market rates. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
COVID-19 Pandemic | COVID-19 Pandemic The World Health Organization declared COVID-19 a global pandemic on March 11, 2020 and since that time many of the previously imposed restrictions and other measures which were instituted in response have been subsequently reduced or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, the administration and ultimate effectiveness of vaccines, and the eventual timeline to achieve a sufficient level of herd immunity among the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the health of the U.S. economy for the foreseeable future. To-date, the COVID-19 pandemic has not had any significant impact on the Company’s Williamsburg Moxy Hotel development project. The Company’s other investment is its 33.3 The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the COVID-19 pandemic or its effect on the U.S. economy negatively impact the Williamsburg Moxy Hotel development project and/or investment in the 40 East End Ave. Joint Venture for an extended period, the Company’s business and financial results could be materially and adversely impacted. |
New Accounting Pronouncements | New Accounting Pronouncements The Company has reviewed and determined that 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. |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliated Real Estate Entities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of financial information of joint venture | Schedule of financial information of joint venture (amounts in thousands) For the Three Months September 30, For the Three Months September 30, For the Nine Months Ended September 30, For the Nine Months Ended September 30, Revenues $ 23,407 $ 3,008 $ 33,914 $ 15,910 Cost of goods sold 18,142 3,197 28,395 14,778 Impairment of real estate inventory 239 - 1,471 - Other expenses 628 668 1,878 1,916 Depreciation and amortization - - - - Operating income/(loss) 4,398 (857 ) 2,170 (784 ) Interest expense and other, net (876 ) (949 ) (2,753 ) (3,294 ) Net income/(loss) $ 3,522 $ (1,806 ) $ (583 ) $ (4,078 ) Company’s share of net income/(loss) (33.3%) $ 1,173 $ (601 ) $ (194 ) $ (1,358 ) The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) September 30, December 31, Real estate inventory $ 96,781 $ 125,086 Cash and restricted cash 699 4,446 Other assets 416 587 Total assets $ 97,896 $ 130,119 Mortgage payable, net $ 58,681 $ 89,876 Other liabilities 850 1,309 Members’ capital 38,365 38,934 Total liabilities and members’ capital $ 97,896 $ 130,119 |
Related Party Transactions an_2
Related Party Transactions and Other Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Fees and offering costs | Schedule of Fees and offering costs For the Three Months Ended For the Nine Months Ended 2021 2020 2021 2020 Development cost reimbursement (1) $ 157,967 $ 75,188 $ 424,824 $ 207,944 Asset management fees (general and administrative costs) - - - 77,313 Total $ 157,967 $ 75,188 $ 424,824 $ 285,257 |
Structure (Details Narrative)
Structure (Details Narrative) - USD ($) | Sep. 12, 2014 | Jun. 15, 2015 | Sep. 30, 2021 |
Schedule of Equity Method Investments [Line Items] | |||
Date of incorporation | Sep. 9, 2014 | ||
Company Owned By David Lichtenstein [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Stock Issued During Period, Value, New Issues | $ 200,000 | ||
Lightstone Real Estate Income Llc [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 20,000 | ||
Shares issued, price per share | $ 10 | ||
David Lichtenstein [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 222,222 | ||
Shares issued, price per share | $ 9 | ||
Proceeds from issuance of common stock | $ 2,000,000 | ||
Forty East End Ave Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Membership interest (as a percentage) | 33.30% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) | Sep. 30, 2021 |
Forty East End Ave Project [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Membership interest (as a percentage) | 33.30% |
Williamsburg Moxy Hotel (Detail
Williamsburg Moxy Hotel (Details Narrative) - USD ($) | Aug. 05, 2021 | Jul. 17, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 5,700,000 | ||||||
Construction in Progress, Gross | $ 61,021,642 | 61,021,642 | $ 40,479,640 | ||||
Business combination consideration description | The Moxy Construction Loan bears interest at LIBOR plus 9.00%, subject to a 9.50% floor, with monthly interest-only payments based on a rate of 7.50% with the accrued and unpaid interest due at maturity. The Moxy Construction Loan is collateralized by the Williamsburg Moxy Hotel. The Williamsburg Moxy Hotel Joint Venture received initial proceeds of $16.0 million under the Moxy Construction Loan and repaid the Williamsburg Mortgage ($16.0 million) in full. As of September 30, 2021, the outstanding principal balance of the Moxy Construction Loan was $16.1 million (including $0.1 million of interest capitalized to principal) which is presented, net of deferred financing fees of $4.2 million, on the consolidated balance sheet and is classified as Mortgage Payable, net. As of September 30, 2021, the remaining availability under the Moxy Construction Loan was up to $61.0 million. | ||||||
Maximum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Business acqired percentage | 75.00% | ||||||
Minimum [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Business acqired percentage | 25.00% | ||||||
Williamsburg Land [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Payment to acquire property, plant and equipment | $ 30,400,000 | ||||||
Business acqired percentage | 25.00% | ||||||
Aggregate consideration | $ 7,900,000 | ||||||
Additional capital contributions | 2,900,000 | ||||||
Construction in Progress, Gross | 61,000,000 | 61,000,000 | |||||
Capitalized interest | 600,000 | $ 300,000 | 800,000 | $ 900,000 | |||
Loan fees | 3,700,000 | ||||||
Accrued expenses | $ 800,000 | $ 800,000 | |||||
Williamsburg Land [Member] | Mortgage Loan [Member] | |||||||
Property, Plant and Equipment [Line Items] | |||||||
Principal amount | $ 16,000,000 | ||||||
Business combination consideration of loan facility | $ 77,000,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliated Real Estate Entities (Details - Financial information) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Operating income/(loss) | $ 1,181,728 | $ (465,104) | $ (164,094) | $ 7,201,550 | |
Net income/(loss) | 980,939 | (673,158) | (773,746) | 6,402,259 | |
Company’s share of net income/(loss) (33.3%) | (773,746) | 6,402,259 | |||
Total assets | 91,293,635 | 91,293,635 | $ 82,990,286 | ||
Mortgage payable, net | 11,889,881 | 11,889,881 | 16,000,000 | ||
Members’ capital | 46,526,562 | 46,526,562 | 49,208,473 | ||
Total liabilities and members’ capital | 91,293,635 | 91,293,635 | 82,990,286 | ||
Forty East End Ave Pref Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 23,407,000 | 3,008,000 | 33,914,000 | 15,910,000 | |
Cost of goods sold | 18,142,000 | 3,197,000 | 28,395,000 | 14,778,000 | |
Impairment of real estate inventory | 239,000 | 0 | 1,471,000 | 0 | |
Other expenses | 628,000 | 668,000 | 1,878,000 | 1,916,000 | |
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income/(loss) | 4,398,000 | (857,000) | 2,170,000 | (784,000) | |
Interest expense and other, net | (876,000) | (949,000) | (2,753,000) | (3,294,000) | |
Net income/(loss) | 3,522,000 | (1,806,000) | (583,000) | (4,078,000) | |
Company’s share of net income/(loss) (33.3%) | 1,173,000 | $ (601,000) | (194,000) | $ (1,358,000) | |
Real estate inventory | 96,781,000 | 96,781,000 | 125,086,000 | ||
Cash and restricted cash | 699,000 | 699,000 | 4,446,000 | ||
Other assets | 416,000 | 416,000 | 587,000 | ||
Total assets | 97,896,000 | 97,896,000 | 130,119,000 | ||
Mortgage payable, net | 58,681,000 | 58,681,000 | 89,876,000 | ||
Other liabilities | 850,000 | 850,000 | 1,309,000 | ||
Members’ capital | 38,365,000 | 38,365,000 | 38,934,000 | ||
Total liabilities and members’ capital | $ 97,896,000 | $ 97,896,000 | $ 130,119,000 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliated Real Estate Entities (Details Narrative) - USD ($) | Feb. 12, 2020 | Jun. 19, 2021 | Feb. 12, 2021 | Dec. 18, 2020 | Aug. 31, 2020 | Dec. 19, 2019 | Mar. 31, 2017 | Jan. 31, 2017 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | Feb. 13, 2020 | Dec. 26, 2019 | Mar. 21, 2017 |
Net Investment Income [Line Items] | |||||||||||||||
Outstanding balance | $ 11,889,881 | $ 16,000,000 | |||||||||||||
Proportionate share amount | $ 700,000 | ||||||||||||||
Payments to Acquire Property, Plant, and Equipment | 5,700,000 | ||||||||||||||
Business combination consideration investment | 10,800,000 | 11,000,000 | |||||||||||||
Redemption Agreement [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Ownership interests redeemed (as a percent) | 22.50% | ||||||||||||||
Gain (Loss) on disposition of investment | $ 100,000 | $ 8,200,000 | $ 8,300,000 | ||||||||||||
Redemption price | $ 87,600,000 | ||||||||||||||
Proceeds from redemption of ownership interests | $ 21,900,000 | $ 100,000 | |||||||||||||
Lightstone [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Preferred contributions | 9,500,000 | ||||||||||||||
Gain (Loss) on Extinguishment of Debt | 80,300,000 | ||||||||||||||
Accrued and unpaid interest repaid | 200,000 | ||||||||||||||
Lightstone Value Plus Real Estate Investment Trust Inc [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Redemption of Preferred Contributions | $ 11,000,000 | $ 3,500,000 | |||||||||||||
Cove Transaction [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Interest rate | 22.50% | ||||||||||||||
Business combination, consideration transferred | $ 255,000,000 | ||||||||||||||
Payments to acquire interest in joint venture | $ 20,000,000 | ||||||||||||||
Loss on joint venture | $ 700,000 | ||||||||||||||
Gain (Loss) on disposition of investment | $ 200,000 | ||||||||||||||
Condo Loan [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Repayments of outstanding principal balance | $ 73,000,000 | $ 2,000,000 | $ 11,700,000 | 9,700,000 | |||||||||||
Condo Loan [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Line of credit | $ 81,000,000 | ||||||||||||||
Deferred financing costs | $ 8,000,000 | ||||||||||||||
Loan Payable | $ 58,900,000 | ||||||||||||||
Forty East End Ave Pref Llc [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Interest rate | 33.30% | ||||||||||||||
Business combination, consideration transferred | $ 10,300,000 | ||||||||||||||
Equity Method Investment, Ownership Percentage | 33.30% | ||||||||||||||
Preferred contributions | $ 30,000,000 | ||||||||||||||
Preferred stock, dividend rate, percentage | 12.00% | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 85,300,000 | ||||||||||||||
Maturity date | Dec. 19, 2021 | ||||||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR plus 2.45% | ||||||||||||||
Forty East End Ave Pref Llc [Member] | Condo Loan [Member] | |||||||||||||||
Net Investment Income [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 95,200,000 | ||||||||||||||
Outstanding balance | 90,200,000 | ||||||||||||||
Remaining borrowing capacity | $ 5,000,000 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | Aug. 09, 2021 | Jan. 15, 2021 | Dec. 21, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | [3] | Dec. 31, 2020 | ||
Equity [Abstract] | ||||||||||
Common stock dividends Per Share | $ 0.37 | |||||||||
Dividends, common stock | $ 1,800,000 | $ 3,200,000 | $ 1,829,250 | [1] | $ 1,829,250 | [2] | $ 851,742 | |||
Average share repurchase price per share (in dollars per share) | $ 0.215 | $ 8.50 | ||||||||
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 0.50% | |||||||||
Repurchased shares | 9,284 | |||||||||
Share price | $ 8.50 | $ 8.50 | ||||||||
[1] | Dividends per share were $0.215. | |||||||||
[2] | Dividends per share were $0.215. | |||||||||
[3] | Dividends per share were $0.10. |
Related Party Transaction and O
Related Party Transaction and Other Arrangements (Details - Acquisition fees) - Investment Advisory, Management and Administrative Service [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Development cost reimbursement (1) | [1] | $ 157,967 | $ 75,188 | $ 424,824 | $ 207,944 |
Asset management fees (general and administrative costs) | 77,313 | ||||
Total | $ 157,967 | $ 75,188 | $ 424,824 | $ 285,257 | |
[1] | Development costs that the Company reimburses its Advisor for are capitalized and are included in the carrying value of the Company’s investment in the Williamsburg Moxy Hotel which is classified as construction in progress on the consolidated balance sheets. |
Related Party Transactions an_3
Related Party Transactions and Other Arrangements (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 18, 2016 | |
Related Party Transaction [Line Items] | ||||||
Accounts paybale | $ 6,789 | $ 6,789 | ||||
Accrued expenses and other liabilities | 6,789 | 6,789 | ||||
Subordinated Advances [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Proceeds from related party debt | 12,600,000 | $ 12,600,000 | ||||
Accrued interest | 959,510 | 959,510 | 819,679 | |||
Interest expense | $ 47,123 | $ 46,994 | $ 139,831 | $ 139,960 | ||
Subordinated Agreement [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Principal amount | $ 12,600,000 | |||||
Interest rate | 1.48% | |||||
Advisor [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Due from related party | $ 122 |