Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Lightstone Value Plus Real Estate Investment Trust V, Inc. | |
Entity Central Index Key | 0001387061 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 23.4 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment property: | ||
Land and improvements | $ 70,301 | $ 46,175 |
Building and improvements | 241,567 | 194,726 |
Furniture, fixtures and equipment | 6,487 | 6,285 |
Gross investment property | 318,355 | 247,186 |
Less accumulated depreciation | (48,818) | (46,182) |
Net investment property | 269,537 | 201,004 |
Investment in unconsolidated joint venture | 0 | 10,944 |
Cash and cash equivalents | 18,740 | 29,607 |
Marketable securities, available for sale | 5,059 | 14,386 |
Restricted cash | 3,048 | 3,045 |
Note receivable, net | 5,980 | 0 |
Prepaid expenses and other assets | 3,554 | 5,471 |
Total Assets | 305,918 | 264,457 |
Liabilities and Stockholders' Equity | ||
Notes payable, net | 181,545 | 139,016 |
Accounts payable and accrued and other liabilities | 3,888 | 3,634 |
Payables to related parties | 19 | 316 |
Accrued property tax | 2,167 | 1,670 |
Total liabilities | 187,619 | 144,636 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $.0001 par value per share; 50,000,000 shares authorized, none issued and outstanding | 0 | 0 |
Convertible stock, $.0001 par value per share; 1,000 shares authorized, issued and outstanding | 0 | 0 |
Common stock, $.0001 par value per share; 350,000,000 shares authorized, 23,431,408 and 23,431,408 shares issued and outstanding, respectively | 2 | 2 |
Additional paid-in-capital | 214,537 | 214,537 |
Accumulated other comprehensive income/(loss) | 3 | (217) |
Accumulated deficit | (96,988) | (95,295) |
Total Company stockholders' equity | 117,554 | 119,027 |
Noncontrolling interests | 745 | 794 |
Total Stockholder's Equity | 118,299 | 119,821 |
Total Liabilities and Stockholders' Equity | $ 305,918 | $ 264,457 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Convertible stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Convertible stock, shares authorized (in shares) | 1,000 | 1,000 |
Convertible Stock Shares Issued (in share) | 1,000 | 1,000 |
Convertible stock, shares outstanding (in shares) | 1,000 | 1,000 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 23,431,408 | 23,431,408 |
Common stock, shares outstanding (in shares) | 23,431,408 | 23,431,408 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Rental revenues | $ 8,533 | $ 6,599 |
Expenses | ||
Property operating expenses | 2,789 | 2,591 |
Real estate taxes | 1,190 | 1,098 |
General and administrative | 1,483 | 1,445 |
Depreciation and amortization | 3,100 | 2,429 |
Total operating expenses | 8,562 | 7,563 |
Operating income/(loss) | (29) | (964) |
Interest expense, net | (1,987) | (1,324) |
Interest income | 245 | 133 |
Gain on sale of real estate and other assets | 0 | 247 |
Other income, net | 65 | 103 |
Net loss | (1,706) | (1,805) |
Net loss/(income) attributable to noncontrolling interests | 13 | (27) |
Net loss attributable to the Company's shares | $ (1,693) | $ (1,832) |
Weighted average shares outstanding: | ||
Basic and diluted | 23,431 | 24,608 |
Basic and diluted loss per share | $ (0.07) | $ (0.07) |
Comprehensive loss: | ||
Net loss | $ (1,706) | $ (1,805) |
Other comprehensive income/(loss): | ||
Holding gain/(loss) on marketable securities, available for sale | 168 | (139) |
Reclassification adjustment for loss included in net loss | 52 | 0 |
Foreign currency translation gain | 0 | 22 |
Total other comprehensive income/(loss) | 220 | (117) |
Comprehensive loss: | (1,486) | (1,922) |
Comprehensive loss/(income) attributable to noncontrolling interest | 13 | (27) |
Comprehensive loss attributable to the Company's shares | $ (1,473) | $ (1,949) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Convertible Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss)/Income | Accumulated Deficit | Noncontrolling Interest |
BALANCE at Dec. 31, 2017 | $ 139,635 | $ 0 | $ 2 | $ 224,923 | $ (27) | $ (90,108) | $ 4,845 |
BALANCE (in shares) at Dec. 31, 2017 | 1 | 24,647 | |||||
Net loss | (1,805) | $ 0 | $ 0 | 0 | 0 | (1,832) | 27 |
Distributions to noncontrolling interest holders | (136) | 0 | 0 | 0 | 0 | 0 | (136) |
Redemption and cancellation of shares | (576) | $ 0 | $ 0 | (576) | 0 | 0 | 0 |
Redemption and cancellation of shares (in shares) | 0 | (111) | |||||
Other comprehensive loss: | |||||||
Holding gain/(loss) on marketable securities, available for sale | (139) | $ 0 | $ 0 | 0 | (139) | 0 | 0 |
Foreign currency translation gain | 22 | 0 | 0 | 0 | 22 | 0 | 0 |
Reclassification adjustment for loss included in net loss | 0 | ||||||
BALANCE at Mar. 31, 2018 | 137,001 | $ 0 | $ 2 | 224,347 | (144) | (91,940) | 4,736 |
BALANCE (in shares) at Mar. 31, 2018 | 1 | 24,536 | |||||
BALANCE at Dec. 31, 2018 | 119,821 | $ 0 | $ 2 | 214,537 | (217) | (95,295) | 794 |
BALANCE (in shares) at Dec. 31, 2018 | 1 | 23,432 | |||||
Net loss | (1,706) | $ 0 | $ 0 | 0 | 0 | (1,693) | (13) |
Distributions to noncontrolling interest holders | (36) | 0 | 0 | 0 | 0 | (36) | |
Other comprehensive loss: | |||||||
Holding gain/(loss) on marketable securities, available for sale | 168 | 0 | 0 | 0 | 168 | 0 | 0 |
Foreign currency translation gain | 0 | ||||||
Reclassification adjustment for loss included in net loss | 52 | 0 | 0 | 0 | 52 | 0 | 0 |
BALANCE at Mar. 31, 2019 | $ 118,299 | $ 0 | $ 2 | $ 214,537 | $ 3 | $ (96,988) | $ 745 |
BALANCE (in shares) at Mar. 31, 2019 | 1 | 23,432 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (1,706) | $ (1,805) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 3,100 | 2,429 |
Amortization of deferred financing fees | 150 | 77 |
Non-cash interest income | (98) | 0 |
Other non-cash adjustments | (373) | (191) |
Changes in operating assets and liabilities: | ||
Decrease/(increase) in prepaid expenses and other assets | 2,992 | (184) |
Increase in accounts payable and accrued and other liabilities and accrued property tax | 1,021 | 307 |
(Decrease)/increase in payables to related parties | (297) | 36 |
Net cash provided by operating activities | 4,789 | 669 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (72,427) | (536) |
Purchases of marketable securities | (1,399) | (14,941) |
Proceeds from sale of marketable securities | 10,893 | 0 |
Funding of note receivable | (5,868) | 0 |
Acquisition fee paid on note receivable | (139) | 0 |
Proceeds from disposition of investment in unconsolidated joint venture | 10,944 | 0 |
Cash used in investing activities | (57,996) | (15,477) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 43,414 | 0 |
Payments on notes payable | (211) | (396) |
Payment of loan fees and expenses | (824) | 0 |
Redemptions of common stock | 0 | (576) |
Distributions to noncontrolling interest holders | (36) | (144) |
Net cash provided by/(used in) financing activities | 42,343 | (1,116) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 0 | 22 |
Net change in cash, cash equivalents and restricted cash | (10,864) | (15,902) |
Cash, cash equivalents and restricted cash, beginning of year | 32,652 | 57,360 |
Cash, cash equivalents and restricted cash, end of period | 21,788 | 41,458 |
Supplemental cash flow information for the periods indicated is as follows: | ||
Cash paid for interest | 401 | 931 |
Loan origination fee on note receivable | 120 | 0 |
Capital expenditures for real estate in accrued liabilities and accounts payable | 9 | 60 |
Accrued distributions payable to noncontrolling interests | 0 | 19 |
Holding gain/loss on marketable securities, available for sale | 220 | 139 |
The following is a summary of the Company's cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented: | ||
Cash | 18,740 | 36,960 |
Restricted cash | 3,048 | 4,498 |
Total cash and restricted cash | $ 21,788 | $ 41,458 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Organization Lightstone Value Plus Real Estate Investment Trust V, Inc., which was previously named Behringer Harvard Opportunity REIT II, Inc. prior to July 20, 2017, (which may be referred to as the “Company,” “we,” “us,” or “our”), was organized as a Maryland corporation on January 9, 2007 and has elected to be taxed, and currently qualifies, as a real estate investment trust (“REIT”) for federal income tax purposes. We were formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. Substantially all of our business is conducted through Lightstone REIT V OP LP, which was previously named Behringer Harvard Opportunity OP II LP prior to November 1, 2017, a limited partnership organized in Delaware (the “Operating Partnership”). As of March 31, 2019, our wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1% partnership interest in the Operating Partnership as its sole general partner. As of March 31, 2019, our wholly-owned subsidiary, BHO Business Trust II, a Maryland business trust, was the sole limited partner of the Operating Partnership and owned the remaining 99.9% interest in the Operating Partnership. Our business is managed by an external advisor and we have no employees. Effective February 10, 2017, we engaged affiliates of the Lightstone Group (“Lightstone”), LSG-BH II Advisor LLC and LSG Development Advisor LLC (collectively, the “Advisor”), to provide advisory services to us. Subject to the oversight of our board of directors, our external advisor is responsible for managing our day-to-day affairs and for services related to the management of our assets. In connection with our initial capitalization, we issued 22.5 thousand shares of our common stock and 1.0 thousand shares of our convertible stock to our previous advisor on January 19, 2007. These shares of convertible stock were transferred to an affiliate of Lightstone on February 10, 2017. As of March 31, 2019, we had 23.4 million shares of common stock outstanding and 1.0 thousand shares of convertible stock outstanding held by an affiliate of Lightstone. The Company’s stock is not currently listed on a national securities exchange. The Company may seek to list its stock 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 shares at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. Noncontrolling Interests Noncontrolling interests represents the noncontrolling ownership interest’s proportionate share of the equity in our consolidated real estate investments. Income and losses are allocated to noncontrolling interest holders based generally on their ownership percentage. If a property reaches a defined return threshold, then it will result in distributions to noncontrolling interests which is different from the standard pro-rata allocation percentage. In certain instances, our joint venture agreements provide for liquidating distributions based on achieving certain return metrics (“promoted interest”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The 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 Lightstone Value Plus Real Estate Investment Trust V, Inc. 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 Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2018 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued new guidance 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 is currently in the process of evaluating the impact the adoption of this standard will have 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 financial position, results of operations and cash flows, or do not apply to its current operations. |
Real Estate Asset Acquisition
Real Estate Asset Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate and Real Estate-Related Investments | 3. Real Estate Asset Acquisition On February 14, 2019, the Company completed the acquisition of a 384-unit multifamily property located in Ann Arbor, Michigan (the “Valley Ranch Apartments”) from an unrelated third party, for an aggregate purchase price of approximately $70.3 million, excluding closing and other related transaction costs. In connection with the acquisition, our Advisor received an aggregate of approximately $1.3 million In connection with the acquisition of the Valley Ranch Apartments, the Company simultaneously entered into a $43.4 million nonrecourse mortgage loan (the “Valley Ranch Apartments Loan”) collateralized by the Valley Ranch Apartments (See Note 7). The Company determined this acquisition was an asset acquisition and allocated the total purchase price, including acquisition fees and expenses, to the assets acquired based on their relative fair value. Approximately $24.1 million was allocated to land and improvements, $46.3 million was allocated to building and improvements, and $1.1 million was allocated to in-place lease intangibles. The capitalization rate for the acquisition of the Valley Ranch Apartments was approximately 5.35%. The Company calculates the capitalization rate for a real property by dividing the net operating income (“NOI”) of the property by the purchase price of the property, excluding costs. For purposes of this calculation, NOI was based upon the year ended November 30, 2018. Additionally, NOI is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation. |
Note Receivable
Note Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | 4. Note Receivable 500 West 22nd Street Mezzanine Loan On February 28, 2019, the Company entered into a $12.0 million Mezzanine Loan Promissory Note (the “500 West 22nd Street Mezzanine Loan”) with an unaffiliated third party (the “500 West 22nd Street Mezzanine Loan Borrower”). On the same date, the Company funded $8.0 million of the 500 est 22nd Street Mezzanine Loan. The 500 West 22nd Street Mezzanine Loan is recorded in In connection with the funding of $8.0 million of the 500 West 22nd Street Mezzanine Loan, our Advisor received an aggregate of approximately $0.1 million in acquisition fees nd nd The 500 West 22 nd nd nd nd + 11.0% per annum with a floor of 13.493% (13.493% as of March 31, 2019). The Company received an origination fee of 1.0% of the loan balance, or approximately $0.1 million, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 500 West 22 nd The 500 West 22 nd nd Upon funding of the 500 West 22 nd nd applied against the first 8.0% of monthly interest due during the initial term of the 500 West 22nd Street Mezzanine Loan. The additional monthly interest due is added to the balance of the 500 West 22nd Street Mezzanine Loan and payable at maturity. During the three months ended March 31, 2019, the Company recorded $0.1 million of interest income related to the and as of March 31, 2019, the remaining reserves for interest and other items aggregated $2.0 million. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments not Reported at Fair Value | 5. Financial Instruments We determined the following disclosure of estimated fair values using available market information and appropriate valuation methodologies. However, considerable judgment is necessary to interpret market data and develop the related estimates of fair value. The use of different market assumptions or only estimation methodologies may have a material effect on the estimated fair value amounts. As of March 31, 2019 and December 31, 2018, management estimated that the carrying value of cash and cash equivalents, restricted cash, prepaid expenses and other assets, accounts payable, accrued and other liabilities, accrued property tax and payables to related parties were at amounts that reasonably approximated their fair value based on their highly-liquid nature and short-term maturities. The carrying amount of the note receivable approximates fair value because the interest rate is variable and reflective of the market rate. The fair value of the notes payable is categorized as a Level 2 in the fair value hierarchy. The fair value was estimated using a discounted cash flow analysis valuation on the borrowing rates currently available for loans with similar terms and maturities. The fair value of the notes payable was determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2019 and December 31, 2018. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of March 31, 2019 As of December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Notes payable $ 184,626 $ 185,919 $ 141,423 $ 140,986 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities And Fair Value Measurements [Abstract] | |
Marketable Securities And Fair Value Measurements | 6. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of March 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,029 $ 38 $ (8 ) $ 5,059 As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 14,575 $ 15 $ (204 ) $ 14,386 When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s amortized cost basis. As of March 31, 2019, the Company did not recognize any impairment charges. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair values of the Company’s investments in debt securities are measured using quoted prices for these investments; however, the markets for these assets are not active. As of March 31, 2019, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the three months ended March 31, 2019. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2019 Due in 1 year $ 1,499 Due in 1 year through 5 years 3,560 Due in 5 years through 10 years - Due after 10 years - Total $ 5,059 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Notes Payable | 7 . Notes Payable Notes payable consists of the following: Property Interest Rate Weighted Average Interest Rate as of March 31, 2019 Maturity Date Amount Due at Maturity As of March 31, 2019 As of December 31, 2018 River Club and the Townhomes at River Club LIBOR + 1.78% 4.21 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Gardens Medical Pavilion LIBOR + 1.90% 4.34 % June 1, 2021 12,300 12,840 12,900 Lakes of Margate 5.49 5.92 5.75 % January 1, 2020 13,384 13,610 13,687 Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % June 1, 2025 15,782 17,803 17,877 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Vally Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 - Total notes payable 4.43 % $ 176,642 184,626 141,423 Less: Deferred financing costs (3,081 ) (2,407 ) Total notes payable, net $ 181,545 $ 139,016 The Company’s loan agreements stipulate that it complies with certain reporting and financial covenants. The Company is currently in compliance with all of its debt covenants. On February 14, 2019, the Company entered into a seven-year $43.4 million mortgage loan (the “Valley Ranch Apartments Loan”) scheduled to mature on March 1, 2026. The Valley Ranch Apartments Loan bears interest at 4.16% and requires monthly interest-only payments through its stated maturity. The Valley Ranch Apartments Loan is collateralized by the Valley Ranch Apartments and is non-recourse to the Company. In connection with the Valley Ranch Apartments Loan, our Advisor received an aggregate of approximately $ 0.4 The following table provides information with respect to the contractual maturities and scheduled principal repayments of our indebtedness as of March 31, 2019. 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 621 $ 13,924 $ 13,235 $ 948 $ 1,582 $ 154,316 $ 184,626 Less: deferred financing costs (3,081 ) Total notes payable, net $ 181,545 In addition, the Company’s non-recourse mortgage loan secured by the Lakes of Margate (outstanding principal balance of $13.6 million as of March 31, 2019) matures in January 2020. We currently expect to refinance all or a portion of this maturing indebtedness on or before its scheduled maturity. However, if we are unable to refinance the outstanding indebtedness at favorable terms, we will look to repay the then outstanding balance with available cash and/or proceeds from selective asset sales. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Disclosure | 8. Leases The Company’s office, multi-family and student housing properties are leased to tenants under operating leases. Substantially all of our multi-family and student housing leases have initial terms of 12 months or less. Our office leases expire between 2019 and 2025. We, as a lessor, retain substantially all of the risks and benefits of ownership of the investment properties and continue to account for our leases as operating leases. We accrue fixed lease income on a straight - - We structure our leases to allow us to recover a portion of our property operating expenses from our tenants. A portion of our leases require the tenant to reimburse us for a portion of our operating expenses, including common area maintenance (“CAM”), real estate taxes and insurance. Such property operating expenses typically include utility, insurance and other administrative expenses. For some of our leases we receive a fixed payment from the tenant for the CAM component which is recognized as revenue on a straight-line basis over the term of the lease. When not reimbursed by the fixed CAM component, CAM expense reimbursements are based on the tenant’s proportionate share of the allocable operating expenses for the property. We accrue reimbursements from tenants for recoverable portions of all of these expenses as variable lease consideration in the period the applicable expenditures are incurred. We recognize differences between estimated recoveries and the final billed amounts in the subsequent year. These differences were not material in any period presented. As of March 31, 2019, the approximate fixed future minimum rental payments, excluding variable lease consideration, from the Company’s office property, Gardens Medical Pavilion, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 1,187 $ 1,471 $ 1,118 $ 973 $ 895 $ 767 $ 6,411 Pursuant to the lease agreements, tenants of the property may be required to reimburse the Company for some or the entire portion of the particular tenant's pro rata share of the real estate taxes and operating expenses of the property. Such amounts are not included in the future minimum lease payments above, but are included in rental revenues on the accompanying consolidated statements of operations. Rental revenue of approximately $0.8 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, related to variable lease payments was included in rental revenues on the accompanying consolidated statements of operations. The Company has excluded our multi-family and student housing leases from this table as substantially all of its multi-family and student housing leases have initial terms of 12 months of less. |
Distributions
Distributions | 3 Months Ended |
Mar. 31, 2019 | |
Distributions [Abstract] | |
Distributions | 9. Distributions U.S. federal tax law requires a REIT distribute at least 90% of its annual REIT taxable income (which does not equal net income, as calculated in accordance with GAAP) determined without regard to the deduction for dividends paid and excluding any net capital gain. In order to continue to qualify for REIT status, we may be required to make distributions in excess of cash available. Distributions are authorized at the discretion of our board of directors based on its analysis of our performance over the previous periods and expectations of performance for future periods. These analyses may include actual and anticipated operating cash flow, changes in market capitalization rates for investments suitable for our portfolio, capital expenditure needs, general financial and market conditions, proceeds from asset sales, and other factors that our board of directors deems relevant. Our board of director’s decisions will be substantially influenced by the obligation to ensure that we maintain our federal tax status as a REIT. We cannot provide assurance that we will pay distributions at any particular level, or at all. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions Advisor Our external advisor and certain of its affiliates may receive fees and compensation in connection with the management and sale of our assets based on an advisory management agreement, as amended and restated. The following discussion describes the fees and expenses payable to our external advisor and its respective affiliates under the various advisory management agreements. We pay our external advisor acquisition and advisory fees of 1.5% of the amount paid in respect of the purchase, development, construction, or improvement of each asset we acquire, including any debt attributable to those assets. In addition, we pay acquisition and advisory fees of 1.5% of the funds advanced in respect of a loan investment. For the three months ended March 31, 2019 we incurred acquisition and advisory fees payable to our external advisor of approximately $1.4 million. We incurred no acquisition and advisory fees for the three months ended March 31, 2018 because we had no acquisitions during this period. We also pay our external advisor an acquisition expense reimbursement in the amount of (i) 0.25% of the funds paid for purchasing an asset, including any debt attributable to the asset, plus 0.25% of the funds budgeted for development, construction, or improvement in the case of assets that we acquire and intend to develop, construct, or improve or (ii) 0.25% of the funds advanced in respect of a loan investment. We also pay third parties, or reimburse our external advisor or its affiliates, for any investment-related expenses due to third parties in the case of a completed investment, including, but not limited to, legal fees and expenses, travel and communication expenses, costs of appraisals, accounting fees and expenses, third-party brokerage or finder’s fees, title insurance, premium expenses, and other closing costs. Our external advisor and its affiliates are also responsible for paying all of the investment-related expenses that we or the external advisor or its affiliates incur that are due to third parties or related to the additional services provided by our external advisor as described above with respect to investments we do not make, other than certain non-refundable payments made in connection with any acquisition. For the three months ended March 31, 2019 and 2018, we incurred no acquisition expense reimbursements. Prior to June 10, 2018 we paid our external advisor a debt financing fee of 0.5% of the amount available under any loan or line of credit made available to us and pay directly all third-party costs associated with obtaining the debt financing, on June 10, 2018 we amended the advisory management agreement with our advisor and increased the debt financing fee to 1.0% of the amount available under any loan or line of credit made available to us and pay directly all third-party costs associated with obtaining the debt financing. For the three months ended March 31, 2019, we incurred $0.4 million of debt financing fees. We incurred no debt financing fees for the three months ended March 31, 2018. We pay our external advisor a development fee in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the project if such affiliate provides the development services and if a majority of our independent directors determines that such development fee is fair and reasonable to us. We incurred no development fees for the three months ended March 31, 2019 and 2018. We pay our external advisor a monthly asset management fee of one-twelfth of 0.7% of the value of each asset. The value of our assets will be the value as determined in connection with the establishment and publication of an estimated net asset value (“NAV”) per share unless the asset was acquired after our publication of a NAV per share (in which case the value of the asset will be the contractual purchase price of the asset). For the three months ended March 31, 2019 and 2018, we expensed $0.5 million of asset management fees payable to our external advisor. Our external advisor is responsible for paying all of the expenses it incurs associated with persons employed by the external advisor to the extent that they provide services to us for which our external advisor receives an acquisition, asset management, or debt financing fee, including wages and benefits of the applicable personnel. Instead of reimbursing our external advisor for specific expenses paid or incurred in connection with providing services to us, we pay our external advisor an administrative services fee, $1.325 million annually, pro-rated for the first six months of the year and up to $1.30 million annually, pro-rated for the second six months of the year. On February 10, 2018, the advisory management agreements were extended an additional four months through June 10, 2018. For the period January 1, 2018 through June 10, 2018, the Administrative Services is up to $1.3 million annually, pro-rated for the period. On June 10, 2018, the advisory management agreements were extended an additional year through June 10, 2019. For the period June 10, 2018 through June 10, 2019, the Administrative Services is up to $1.29 million. The Administrative is payable in four equal quarterly installments within 45 days of the end of each calendar quarter. In addition, under the various advisory management agreements, we are to reimburse the external advisor for certain due diligence services provided in connection with asset acquisitions and dispositions and debt financings separately from the Administrative Services . We incurred and expensed $0.3 million for both the three months ended March 31, 2019 and 2018 of such costs for administrative services and due diligence services. Notwithstanding the fees and cost reimbursements payable to our external advisor pursuant to our advisory management agreement, under our charter we may not reimburse the external advisor for any amount by which our operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of: (i) 2% of our average invested assets, or (ii) 25% of our net income determined without reduction for any additions to reserves for depreciation, bad debts, or other similar non-cash reserves and excluding any gain from the sale of our assets for that period unless a majority of our independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal quarters ended March 31, 2019, our total operating expenses (including the asset management fee) exceeded the limit on total operating expenses; however, our independent directors determined the excess expenses were justified primarily as a result of the timing of the redeployment of our cash proceeds from asset sales and financings. Property Manager The Company engaged an affiliate of Lightstone (the “Lightstone Manager”) pursuant to a property management and leasing agreement. The fees earned by and expenses reimbursed to the Lightstone Manager are substantially the same as the fees earned by and expenses reimbursed to the Behringer Manager. The following discussion describes the fees and expenses payable to our affiliated property manager and its respective affiliates under both the various property management and leasing agreements. We pay our property manager and affiliate of our external advisor, fees for the management, leasing, and construction supervision of our properties which is 4.0% of gross revenues of the properties managed by our property manager. We pay our property manager an oversight fee equal to 0.5% of the gross revenues of the property managed for any property for which we contract directly with a third-party property manager. In no event will our property manager or its affiliates receive both a property management fee and an oversight fee with respect to any particular property. In the event we own a property through a joint venture that does not pay our property manager directly for its services, we will pay our property manager a management fee or oversight fee, as applicable, based only on our economic interest in the property. For both the three months ended March 31, 2019 and 2018, we incurred and expensed property management fees or oversight fees to the related-party property manager of $0.1 million. We pay our property manager a construction management fee in an amount not to exceed 5% of all hard construction costs incurred in connection with, but not limited to capital repairs and improvements, major building reconstruction and tenant improvements, if such affiliate supervises construction performed by or on behalf of us or our affiliates. We incurred no construction management fees for the three months ended March 31, 2019 and 2018. As of both March 31, 2019 and December 31, 2018, we had a payable to our external advisor and its affiliates of less than $0.1 million. These balances consist of accrued fees, including asset management fees, administrative service expenses, property management fees, and other miscellaneous costs payable to our external advisor and property manager. We are dependent on our external advisor and our property manager for certain services that are essential to us, including asset disposition decisions, property management and leasing services, and other general administrative responsibilities. In the event that these companies were unable to provide us with their respective services, we would be required to obtain such services from other sources. |
Investment in Unconsolidated Jo
Investment in Unconsolidated Joint Venture | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Joint Venture | 11. Investment in Unconsolidated Joint Venture We provided mezzanine financing totaling $15.3 million to an unaffiliated third-party entity (the “Borrower”) that owned an apartment complex in Denver, Colorado (the “Prospect Park”). The Borrower also had a senior construction loan with a third-party construction lender (the “Senior Lender”) in an aggregate original principal amount of $40.0 million. The senior construction loan was guaranteed by the owners of the developer. We also had a personal guaranty from the owners of the developer guaranteeing completion of Prospect Park and payment of any cost overruns. Our mezzanine loan was secured by all of the membership interests of the Borrower and was subordinate to the senior construction loan. Our advances of $15.3 million initially had annual stated interest rates ranging from 10% to 18%. Pursuant to the terms of the mezzanine loan, we participate in the residual interests of Prospect Park attributable to a sale or refinancing even though we had no actual ownership interest. We previously evaluated this ADC Arrangement and determined that its characteristics were similar to a jointly-owned investment or partnership. Accordingly, our investment, which was a variable interest entity (“VIE”) was accounted for as an unconsolidated joint venture under the equity method of accounting instead of loan accounting. On December 15, 2017, the Borrower sold Prospect Park to an unrelated third-party for a contractual sales price of approximately $100.5 million. In connection with the sale, the Borrower repaid the Senior Construction Loan in full and we received aggregate proceeds of approximately $21.6 million representing the repayment in full of the outstanding principal and accrued interest due on our mezzanine loan. Additionally, the Borrower placed approximately $15.1 million of the net proceeds from the sale into an escrow account to be used for settlement of the amount due to us for our participation in the residual interests of Prospect Park. The carrying value of our unconsolidated investment in Prospect Park, which represented the minimum amount payable to us for our participation in the residual interests of Prospect Park, was $10.9 million as of December 31, 2018. On January 4, 2019, the Company and the Borrower received payments of $10.9 million and $1.9 million, respectively, from the escrow account. As a result, the carrying value of our unconsolidated investment in Prospect Park has been reduced to zero and approximately $2.3 million remains in the escrow account to be used for settlement of any potential remaining amount due to us for our participation in the residual interests of Prospect Park and any additional amounts received will be recognized upon receipt. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Interim Unaudited Financial Information | Interim Unaudited Financial Information The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, which was filed with the Securities and Exchange Commission (the “SEC”) on April 1, 2019. The 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 Lightstone Value Plus Real Estate Investment Trust V, Inc. 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 Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation Our consolidated financial statements include our accounts and the accounts of other subsidiaries over which we have control. All inter-company transactions, balances, and profits have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and entities deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. For entities in which we have less than a controlling interest or entities which we are not deemed to be the primary beneficiary, we account for the investment using the equity method of accounting. The consolidated balance sheet as of December 31, 2018 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
Earnings per Share | 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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an Accounting Standards Update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. For lessors, accounting for leases under the new guidance is substantially the same as in prior periods, but eliminates current real estate- specific provisions and changes the treatment of initial direct costs. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The ASU provides a practical expedient which allows lessors to not separate lease and non-lease components in a contract and allocate the consideration in the contract to the separate components if both: (i) the timing and pattern of revenue recognition for the non-lease component and the related lease component are the same and (ii) the combined single lease component would be classified as an operating lease. The Company elected the practical expedient to account for lease and non-lease components as a single component in lease contracts where we are the lessor. The ASU also provides a transition option that permits entities to not recast the comparative periods presented when transitioning to the standard, which the Company also elected. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements In June 2016, the FASB issued new guidance 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 is currently in the process of evaluating the impact the adoption of this standard will have 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 financial position, results of operations and cash flows, or do not apply to its current operations. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of March 31, 2019 As of December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Notes payable $ 184,626 $ 185,919 $ 141,423 $ 140,986 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Marketable Securities And Fair Value Measurements [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following is a summary of the Company’s available for sale securities as of the dates indicated: As of March 31, 2019 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 5,029 $ 38 $ (8 ) $ 5,059 As of December 31, 2018 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 14,575 $ 15 $ (204 ) $ 14,386 |
Available-for-sale Securities | The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2019 Due in 1 year $ 1,499 Due in 1 year through 5 years 3,560 Due in 5 years through 10 years - Due after 10 years - Total $ 5,059 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of information on notes payable | Notes payable consists of the following: Property Interest Rate Weighted Average Interest Rate as of March 31, 2019 Maturity Date Amount Due at Maturity As of March 31, 2019 As of December 31, 2018 River Club and the Townhomes at River Club LIBOR + 1.78% 4.21 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 Gardens Medical Pavilion LIBOR + 1.90% 4.34 % June 1, 2021 12,300 12,840 12,900 Lakes of Margate 5.49 5.92 5.75 % January 1, 2020 13,384 13,610 13,687 Arbors Harbor Town 4.53% 4.53 % December 28, 2025 29,000 29,000 29,000 Parkside 4.45% 4.45 % June 1, 2025 15,782 17,803 17,877 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,600 37,600 Vally Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 - Total notes payable 4.43 % $ 176,642 184,626 141,423 Less: Deferred financing costs (3,081 ) (2,407 ) Total notes payable, net $ 181,545 $ 139,016 |
Contractual obligations for principal payments | The following table provides information with respect to the contractual maturities and scheduled principal repayments of our indebtedness as of March 31, 2019. 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 621 $ 13,924 $ 13,235 $ 948 $ 1,582 $ 154,316 $ 184,626 Less: deferred financing costs (3,081 ) Total notes payable, net $ 181,545 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of future Minimum rental payments for operating leases | As of March 31, 2019, the approximate fixed future minimum rental payments, excluding variable lease consideration, from the Company’s office property, Gardens Medical Pavilion, due to us under non-cancelable are as follows: 2019 2020 2021 2022 2023 Thereafter Total $ 1,187 $ 1,471 $ 1,118 $ 973 $ 895 $ 767 $ 6,411 |
Business and Organization (Deta
Business and Organization (Details) - shares | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Jan. 19, 2007 | |
Organization | |||
Percentage of ownership interest by BHO II, Inc | 0.10% | ||
Common stock, shares outstanding (in shares) | 23,431,408 | 23,431,408 | |
Common stock, shares issued (in shares) | 23,431,408 | 23,431,408 | |
Convertible stock issued (in shares) | 1,000 | 1,000 | |
Convertible Stock Shares Outstanding | 1,000 | 1,000 | |
Maryland [Member] | |||
Organization | |||
Percentage of remaining ownership interest held by BHO Business Trust II | 99.90% | ||
Initial Offering | |||
Organization | |||
Common stock, shares outstanding (in shares) | 23,400,000 | ||
Initial Offering | LightstoneGroup [Member] | |||
Organization | |||
Convertible Stock Shares Outstanding | 1,000 | ||
Initial Capitalization | Behringer Harvard Holdings | |||
Organization | |||
Common stock, shares issued (in shares) | 22,500 | ||
Convertible stock issued (in shares) | 1,000 |
Real Estate Asset Acquisition-
Real Estate Asset Acquisition- Narrative (Details) - USD ($) | 1 Months Ended | |
Feb. 14, 2019 | Nov. 30, 2018 | |
Land and Improvements | ||
Real Estate Properties [Line Items] | ||
Business Combination, Consideration Transferred | $ 24,100,000 | |
Building and Building Improvements [Member] | ||
Real Estate Properties [Line Items] | ||
Business Combination, Consideration Transferred | 46,300,000 | |
Other Assets [Member] | ||
Real Estate Properties [Line Items] | ||
Business Combination, Consideration Transferred | 1,100,000 | |
Valley Ranch Apartments [Member] | ||
Real Estate Properties [Line Items] | ||
Business Combination, Consideration Transferred | 70,300,000 | |
Business Combination, Acquisition Related Costs | 1,300,000 | |
Transfer Mortgage Payable | $ 43.4 | |
Capitalization Rate | 5.35% |
Note Receivable - Narrative (De
Note Receivable - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Payments to Acquire Notes Receivable | $ 5,868 | $ 0 | |
Mezzanine Loan Promissory Note [Member] | |||
Debt Instrument, Face Amount | $ 12,000 | $ 8,000 | |
Payments to Acquire Notes Receivable | 8,000 | ||
Payments for Merger Related Costs | $ 100 | ||
Debt Instrument, Description of Variable Rate Basis | Libor + 11.0 | ||
Debt Instrument, Basis Spread on Variable Rate | 11.00% | 13.493% | |
Debt Instrument Origination Fees Description | Company received an origination fee of 1.0% of the loan balance, or approximately $0.1 million | ||
Debt Instrument Extension Fee Percentage | 0.25% | ||
Debt Instrument, Maturity Date | Aug. 31, 2021 | ||
Interest Reserve On Notes Receivable | $ 2,100 | $ 2,000 | |
Utilization Of Interest Reserve Percentage On Interest Due | 8.00% | ||
Investment Income, Interest | $ 100 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Notes payable, carrying amount | $ 184,626 | $ 141,423 |
Notes payable, fair value | $ 185,919 | $ 140,986 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements -Available for sale securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value | $ 5,059 | $ 14,386 |
Corporate and Government Bonds [Member] | ||
Adjusted Cost | 5,029 | 14,575 |
Gross Unrealized Gains | 38 | 15 |
Gross Unrealized Losses | (8) | (204) |
Fair Value | $ 5,059 | $ 14,386 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements- Summarizes the estimated fair value of our investments in marketable debt securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Due in 1 year | $ 1,499 | |
Due in 1 year through 5 years | 3,560 | |
Due in 5 years through 10 years | 0 | |
Due after 10 years | 0 | |
Total | $ 5,059 | $ 14,386 |
Notes Payable - Information on
Notes Payable - Information on Notes Payable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 181,545 | |
Less: deferred financing costs | (3,081) | |
Total notes payable, net | $ 181,545 | $ 139,016 |
Notes payable | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 4.43% | |
Long-term Debt | $ 176,642 | |
Notes payable, net | 184,626 | 141,423 |
Less: deferred financing costs | $ (3,081) | (2,407) |
Gardens Medical Pavilion | Notes payable | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate | LIBOR + 1.90% | |
Weighted Average Interest Rate | 4.34% | |
Debt Instrument, Maturity Date | Jun. 1, 2021 | |
Long-term Debt | $ 12,300 | |
Notes payable, net | $ 12,840 | 12,900 |
River Club and the Townhomes at River Club | Notes payable | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate | LIBOR + 1.78% | |
Weighted Average Interest Rate | 4.21% | |
Debt Instrument, Maturity Date | May 1, 2025 | |
Long-term Debt | $ 28,419 | |
Notes payable, net | $ 30,359 | 30,359 |
Lakes of Margate | Notes payable | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 5.75% | |
Debt Instrument, Maturity Date | Jan. 1, 2020 | |
Long-term Debt | $ 13,384 | |
Notes payable, net | $ 13,610 | 13,687 |
Arbors Harbor Town | Notes payable | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.53% | |
Weighted Average Interest Rate | 4.53% | |
Debt Instrument, Maturity Date | Dec. 28, 2025 | |
Long-term Debt | $ 29,000 | |
Notes payable, net | $ 29,000 | 29,000 |
Parkside | Notes payable | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.45% | |
Weighted Average Interest Rate | 4.45% | |
Debt Instrument, Maturity Date | Jun. 1, 2025 | |
Long-term Debt | $ 15,782 | |
Notes payable, net | $ 17,803 | 17,877 |
Axis at Westmont | Notes payable | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.39% | |
Weighted Average Interest Rate | 4.39% | |
Debt Instrument, Maturity Date | Feb. 1, 2026 | |
Long-term Debt | $ 34,343 | |
Notes payable, net | $ 37,600 | 37,600 |
Valley Ranch Apartments [Member] | Notes payable | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate | 4.16% | |
Weighted Average Interest Rate | 4.16% | |
Debt Instrument, Maturity Date | Mar. 1, 2026 | |
Long-term Debt | $ 43,414 | |
Notes payable, net | $ 43,414 | $ 0 |
Minimum | Lakes of Margate | Notes payable | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.49% | |
Maximum | Lakes of Margate | Notes payable | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 5.92% |
Notes Payable - Contractual Obl
Notes Payable - Contractual Obligations for Principal Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 621 |
2020 | 13,924 |
2021 | 13,235 |
2022 | 948 |
2023 | 1,582 |
Thereafter | 154,316 |
Total contractual obligations for principal payments | 184,626 |
Less: deferred financing costs | (3,081) |
Total notes payable, net | $ 181,545 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Feb. 14, 2019 | Mar. 31, 2019 | |
Valley Ranch Apartments [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 43,400,000 | |
Debt Instrument, Basis Spread on Variable Rate | 4.16% | |
Line of Credit Facility, Description | term of seven years | |
Debt Instrument, Fee Amount | $ 0.4 | |
Lakes of Margate Margate [Member] | ||
Debt Instrument [Line Items] | ||
Notes payable, net | $ 13,600,000 | |
Debt Instrument, Maturity Date | Jan. 31, 2020 |
Distributions (Details)
Distributions (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Distributions [Abstract] | |
Minimum Percentage of Ordinary Taxable Income Distribution Requirement | 90.00% |
Leases - Fixed future minimum r
Leases - Fixed future minimum rental payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2019 | $ 1,187 |
2020 | 1,471 |
2021 | 1,118 |
2022 | 973 |
2023 | 895 |
Thereafter | 767 |
Total | $ 6,411 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Leases, Income Statement, Lease Revenue | $ 0.8 | $ 0.5 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | ||
Jun. 10, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 10, 2018 | Jun. 10, 2019 | Dec. 31, 2018 | |
Related party transaction | ||||||
Percentage of debt financing fee payable under loan or line of credit | 1.00% | |||||
Asset management fees | $ 500 | $ 400 | ||||
Oversight fee as percentage of gross revenues of property managed | 0.50% | |||||
Construction management fees, percentage | 0.00% | |||||
Advisor | ||||||
Related party transaction | ||||||
Acquisition and advisory fees as percentage of purchase, development, construction, or improvement of each asset acquired | 1.50% | |||||
Acquisition and advisory fees as percentage of funds advanced in respect of loan investment | 1.50% | |||||
Acquisition and advisory fees incurred | $ 1,400 | |||||
Percentage of debt financing fee payable under loan or line of credit | 0.50% | |||||
Debt financing fee | $ 400 | |||||
Monthly asset management fee | 0.70% | |||||
Administrative Services Costs Reimbursement Real Estate Management | $ 1,300 | $ 1,300 | $ 1,325 | |||
Administrative services cost incurred and expensed | $ 300 | $ 300 | ||||
Property management fees as percentage of gross revenues of properties | 4.00% | |||||
Property management fees or oversight fees incurred | $ 100 | $ 100 | ||||
Construction management fees, percentage | 5.00% | |||||
Payment Of Administrative Service Costs Maximum Period | 45 days | |||||
PayableTo External Advisor And Affiliates | $ 100 | $ 100 | ||||
Advisor | Subsequent Event [Member] | ||||||
Related party transaction | ||||||
Administrative Services Costs Reimbursement Real Estate Management | $ 1,290 | |||||
Advisor | Minimum | ||||||
Related party transaction | ||||||
Operating expenses in excess of average invested assets | 2.00% | |||||
Operating expenses in excess of net income | 25.00% | |||||
Asset Purchases | Advisor | ||||||
Related party transaction | ||||||
Percentage of reimbursement of acquisition expense | 0.25% | |||||
Development, Construction or Improvement of Assets | Advisor | ||||||
Related party transaction | ||||||
Percentage of reimbursement of acquisition expense | 0.25% | |||||
Funds Advanced for Loan Investment | Advisor | ||||||
Related party transaction | ||||||
Percentage of reimbursement of acquisition expense | 0.25% |
Investment in Unconsolidated _2
Investment in Unconsolidated Joint Venture - Narrative (Details) - USD ($) $ in Millions | Jan. 04, 2019 | Dec. 15, 2017 | Mar. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||
Mezzanine financing to unaffiliated third party Entity | $ 15.3 | ||
Amount of senior construction loan taken by unconsolidated joint venture | 40 | ||
Outstanding principal balance under mezzanine Loan | $ 15.3 | ||
Equity Method Investments | $ 0 | ||
Proceeds From Escroe Deposit | 10.9 | ||
Prospect Park | |||
Schedule of Equity Method Investments [Line Items] | |||
Real Estate Property Contractual Sales Price | $ 100.5 | ||
Proceeds from Sale of Real Estate | 21.6 | ||
Escrow Deposits Related to Property Sales | 2.3 | 15.1 | |
Equity Method Investments | $ 10.9 | ||
Proceeds From Escroe Deposit | $ 1.9 | ||
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Annual interest rate for mezzanine loan | 10.00% | ||
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Annual interest rate for mezzanine loan | 18.00% |