Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Entity Registrant Name | Lightstone Value Plus Real Estate Investment Trust V, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | MD | |
Entity File Number | 000-53650 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,200,000 | |
Entity Central Index Key | 0001387061 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment property: | ||
Land and improvements | $ 63,886 | $ 63,873 |
Building and improvements | 248,670 | 248,079 |
Furniture, fixtures and equipment | 6,836 | 6,552 |
Gross investment property | 319,392 | 318,504 |
Less accumulated depreciation | (53,573) | (50,823) |
Net investment property | 265,819 | 267,681 |
Cash and cash equivalents | 27,040 | 27,078 |
Marketable securities, available for sale | 3,593 | 3,654 |
Restricted cash | 19,320 | 4,373 |
Note receivable, net | 13,229 | 12,794 |
Prepaid expenses and other assets | 1,286 | 1,604 |
Assets held for sale | 0 | 24,140 |
Total Assets | 330,287 | 341,324 |
Liabilities and Stockholders' Equity | ||
Notes payable, net | 213,330 | 212,989 |
Accounts payable and accrued and other liabilities | 6,581 | 6,530 |
Payables to related parties | 4 | 0 |
Liabilities held for sale | 0 | 37,165 |
Total liabilities | 219,915 | 256,684 |
Company's stockholders' equity: | ||
Preferred stock, $.0001 par value per share; 50.0 million 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; 350.0 million shares authorized, 20.2 million shares issued and outstanding | 2 | 2 |
Additional paid-in-capital | 187,088 | 189,216 |
Accumulated other comprehensive income | 90 | 140 |
Accumulated deficit | (75,484) | (102,519) |
Total Company stockholders' equity | 111,696 | 86,839 |
Noncontrolling interests | (1,324) | (2,199) |
Total Stockholder's Equity | 110,372 | 84,640 |
Total Liabilities and Stockholders' Equity | $ 330,287 | $ 341,324 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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) | 20,200,000 | 20,200,000 |
Common stock, shares outstanding (in shares) | 20,200,000 | 20,200,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Rental revenues | $ 10,287 | $ 9,400 |
Expenses | ||
Property operating expenses | 3,177 | 2,960 |
Real estate taxes | 1,471 | 1,218 |
General and administrative | 1,653 | 1,539 |
Depreciation and amortization | 2,910 | 2,511 |
Total operating expenses | 9,211 | 8,228 |
Operating income | 1,076 | 1,172 |
Interest expense, net | (2,453) | (2,140) |
Interest income | 483 | 487 |
Gain on sale of investment property | 27,825 | 5,474 |
Other income, net | 181 | 199 |
Net income | 27,112 | 5,192 |
Net income attributable to noncontrolling interests | (77) | (1,211) |
Net income attributable to the Company' s shares | $ 27,035 | $ 3,981 |
Weighted average shares outstanding: | ||
Basic and diluted | 20,193 | 22,223 |
Basic and diluted income per share | $ 1.34 | $ 0.18 |
Comprehensive income: | ||
Net income | $ 27,112 | $ 5,192 |
Other comprehensive loss: | ||
Holding loss on marketable securities, available for sale | (42) | (28) |
Reclassification adjustment for gain included in net income | (8) | (6) |
Total other comprehensive loss | (50) | (34) |
Comprehensive income: | 27,062 | 5,158 |
Comprehensive income attributable to noncontrolling interest | (77) | (1,211) |
Comprehensive income attributable to the Company's shares | $ 26,985 | $ 3,947 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Convertible Stock [Member] | Common Stock [Member] | Additional Paid In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 2 | $ 204,912 | $ 111 | $ (102,404) | $ 478 | $ 103,099 | |
Beginning balance, shares at Dec. 31, 2019 | 1 | 22,223 | |||||
Net income | 3,981 | 1,211 | 5,192 | ||||
Distributions paid to noncontrolling interest holders | (1,840) | (1,840) | |||||
Other comprehensive income: | |||||||
Holding gain on marketable securities, available for sale | (28) | (28) | |||||
Reclassification adjustment for loss on sale of marketable securities included in net loss | (6) | (6) | |||||
Costs associated with redemptions of common stock | (71) | 71 | |||||
Ending balance, value at Mar. 31, 2020 | $ 2 | 204,841 | 77 | (98,423) | (151) | 106,346 | |
Ending balance, shares at Mar. 31, 2020 | 1 | 22,223 | |||||
Beginning balance, value at Dec. 31, 2020 | $ 2 | 189,216 | 140 | (102,519) | (2,199) | 84,640 | |
Beginning balance, shares at Dec. 31, 2020 | 1 | 22,223 | |||||
Net income | 27,035 | 77 | 27,112 | ||||
Distributions paid to noncontrolling interest holders | (244) | (244) | |||||
Acquisition of noncontrolling interest in a subsidiary | (2,128) | 1,042 | (1,086) | ||||
Other comprehensive income: | |||||||
Holding gain on marketable securities, available for sale | (42) | (42) | |||||
Reclassification adjustment for loss on sale of marketable securities included in net loss | (8) | (8) | |||||
Costs associated with redemptions of common stock | 0 | ||||||
Ending balance, value at Mar. 31, 2021 | $ 2 | $ 187,088 | $ 90 | $ (75,484) | $ (1,324) | $ 110,372 | |
Ending balance, shares at Mar. 31, 2021 | 1 | 22,223 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 27,112 | $ 5,192 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,910 | 2,511 |
Amortization of deferred financing fees | 167 | 125 |
Gain on sale of investment property | (27,825) | (5,474) |
Non-cash interest income | (447) | (418) |
Other non-cash adjustments | (13) | 33 |
Changes in operating assets and liabilities: | ||
Decrease in prepaid expenses and other assets | 3,120 | 405 |
Decrease in accounts payable and accrued and other liabilities | (1,976) | (879) |
Increase in payables to related parties | 4 | 297 |
Net cash provided by operating activities | 3,052 | 1,792 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (1,056) | (45,172) |
Purchases of marketable securities | (457) | (566) |
Proceeds from sale of marketable securities | 476 | 524 |
Funding of not e receivable, net | 0 | (659) |
Acquisition of noncontrolling interest | (1,086) | 0 |
Proceeds from sale of investment property, net of closing costs | 14,364 | 23,673 |
Cash provided by/(used in) activities | 12,241 | (22,200) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 0 | 29,920 |
Payments on notes payable | (140) | (12,714) |
Proceeds from advance from advisor | 0 | 25,000 |
Payments on advance from advisor | 0 | (15,000) |
Payment of loan fees and expenses | 0 | (611) |
Costs associated with redemptions of common stock | 0 | (71) |
Distributions to noncontrolling interest holders | (244) | (1,840) |
Net cash (used in)/provided by financing activities | (384) | 24,684 |
Net change in cash, cash equivalents and restricted cash | 14,909 | 4,276 |
Cash, cash equivalents and restricted cash, beginning of period | 31,451 | 19,572 |
Supplemental cash flow information for the years indicated is as follows: | ||
Cash paid for interest | 2,287 | 1,967 |
Debt assumed by buyer in connection with disposition of investment property | 35,700 | 0 |
Capital expenditures for investment property in accrued liabilities and accounts payable | 51 | 6 |
Holding loss/gain on marketable securities, available for sale | 50 | 34 |
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 | 27,040 | 19,213 |
Restricted cash | 19,320 | 4,635 |
Total cash and restricted cash | $ 46,360 | $ 23,848 |
Business
Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | 1. Business 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. The Company was formed primarily to acquire and operate commercial real estate and real estate-related assets on an opportunistic and value-add basis. In particular, the Company has focused generally on acquiring commercial properties with significant possibilities for capital appreciation, such as those requiring development, redevelopment, or repositioning, those located in markets and submarkets with high growth potential, and those available from sellers who are distressed or face time-sensitive deadlines. The Company has acquired a wide variety of commercial properties, including office, industrial, retail, hospitality, and multifamily. The Company has purchased existing, income-producing properties, and newly-constructed properties. The Company has also invested in other real estate-related investments such as mortgage and mezzanine loans. The Company intends to hold the various real properties in which it has invested until such time as its board of directors determines that a sale or other disposition appears to be advantageous to achieve the Company’s investment objectives or until it appears that the objectives will not be met. The Company currently has one operating segment. As of March 31, 2021, the Company had seven real estate investments (five wholly owned properties and two properties consolidated through investments in joint ventures) and one real estate-related investment (mezzanine loan). Substantially all of the Company’s business is conducted through Lightstone REIT V OP LP, a limited partnership organized in Delaware (the “Operating Partnership”). As of March 31, 2021, the Company’s 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, 2021, the Company’s 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. The Company’s business is managed by an external advisor and the Company has no employees. Effective February 10, 2017, the Company 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 the Company. Lightstone is majority owned by the chairman of the Company’s board of directors, David Lichtenstein. Pursuant to the terms of an advisory agreement and subject to the oversight of the Company’s board of directors, the Advisor is responsible for managing the Company’s day-to-day affairs and for services related to the management of the Company’s assets. Organization In connection with the Company’s initial capitalization, the Company issued 22,500 shares of its common stock and 1,000 shares of its convertible stock to the Company’s previous advisor on January 19, 2007. The 1,000 shares of convertible stock were transferred to an affiliate of Lightstone on February 10, 2017 and remain outstanding. As of March 31, 2021, the Company had 20.2 million shares of common stock outstanding. The Company’s common stock is not currently listed on a national securities exchange. The timing of a liquidity event for the Company’s stockholders will depend upon then prevailing market conditions. On January 9, 2020, the Company’s board of directors extended the targeted timeline for the Company to commence a liquidity event until June 30, 2028 based on their assessment of the Company’s investment objectives and liquidity options for the Company’s stockholders. The Company can provide no assurances as to the actual timing of the commencement of a liquidity event for its stockholders or the ultimate liquidation of the Company. The Company will seek stockholder approval prior to liquidating its entire portfolio. 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. Acquisition of Noncontrolling Member’s Ownership Interest (Lakes of Margate) On March 17, 2021, the Company acquired the noncontrolling member’s 7.5% ownership interest in the Lakes of Margate for $1.1 million and as a result, owned 100% of the Lakes of Margate, which was subsequently sold (see Note 3). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, which was filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2021. 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 8-03 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 the Company has 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 the Company is 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 the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. 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 consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Investment in Unconsolidated Joint Venture (Prospect Park) On May 10, 2021 the Company received a payment of $1.5 million for the settlement of its prior participation in the residual interests of a mezzanine financing to an unaffiliated third-party entity that owned an apartment complex in Denver, Colorado. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. As of March 31, 2021, restricted cash also included $14.1 million of the proceeds from the sale of Lakes of Margate. These funds have been temporarily placed in escrow with a qualified intermediary to potentially facilitate a like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. See Note 3 for additional information. COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to subsequently impose various degrees of restrictions and other measures, including, but not limited to, mandatory temporary closures, quarantine guidelines, limitations on travel, and “shelter in place” rules in an effort to reduce its duration and the severity of its spread. Although the COVID-19 pandemic has continued to evolve, most of these previously imposed restrictions and other measures have now been reduced and/or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent is likely dependent on numerous developments such as the regulatory approval, mass production, administration and ultimate effectiveness of vaccines, as well as the timeline to achieve a level of sufficient herd immunity amongst the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the overall health of the U.S. economy for the foreseeable future. The Company’s consolidated portfolio of properties currently consists of six multi-family apartment complexes and one student housing complex. Despite past and current restrictions and mitigation strategies, the Company’s multi-family properties still have not yet seen any significant impact from the COVID-19 pandemic. The Company’s student housing complex, which consists of the River Club Apartments and the Townhomes at River Club, are located in Athens, Georgia and principally serve as “off-campus” lodging for students attending the University of Georgia (“UGA”). Leases for the River Club Apartments and Townhomes at River Club generally have a term of one year running from August through July. Because of the COVID-19 pandemic, UGA previously transitioned to online instruction during its Spring 2020 semester before resuming to “on-campus” classes beginning with its Fall 2020 semester. The Company’s student housing complex is located “off-campus” and therefore, its tenants are not required to vacate even if UGA does not conduct “on-campus” classes. However, if UGA decides to return to online instruction for its students in lieu of “on-campus” classes in future semesters, it could adversely impact leasing demand, occupancy levels and the operating results of the Company’s student housing complex in future periods. Additionally, the Company’s note receivable is collateralized by a condominium development project located in New Yok City (the “Condominium Project”), which is subject to similar restrictions and risks. To date, the Condominium Project and the Company’s note receivable have not been significantly impacted by the COVID-19 pandemic. While the Company’s business has not yet seen any material impact from the ongoing COVID-19 pandemic, the extent to which it may be affected in future periods will largely depend on current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s properties and real estate-related investments are negatively impacted in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) demand for its student housing complex declines, and (iii) its borrower is unable to pay scheduled debt service on the outstanding note receivable; the Company’s business and financial results could be materially and adversely impacted. 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, 2022, 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. |
Held for Sale and Disposition o
Held for Sale and Disposition of Lakes of Margate | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Held for Sale and Disposition of Lakes of Margate | 3. Held for Sale and Disposition of Lakes of Margate Lakes of Margate During the fourth quarter of 2020, Lakes of Margate met the criteria to be classified as held for sale and therefore, its associated assets and liabilities were classified as held for sale in the consolidated balance sheet as of December 31, 2020. On March 17, 2021, the Company completed the disposition of the Lakes of Margate to Lakes of Margate FL LLC, an unrelated third party (the “Lakes of Margate Buyer”), for aggregate consideration of $50.8 million. At closing, the Lakes of Margate Buyer paid $15.1 million and assumed the existing Lakes of Margate Loan with an outstanding principal balance of $35.7 million and $14.1 million of the proceeds were placed in escrow with a qualified intermediary to potentially facilitate a like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, and is included in restricted cash on the consolidated balance sheet as of March 31, 2021. In connection with the disposition of the Lakes of Margate, the Company recognized a gain on sale of investment property of $27.8 million during the first quarter of 2021. The disposition of the Lakes of Margate did not qualify to be reported as discontinued operations since it did not represent a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Lakes of Margate are reflected in our results from continuing operations for all periods presented through its date of disposition. The following summary presents the major components of the Lakes of Margate’s assets and liabilities held for sale, of as December 31, 2020. As of December 31, Net investment property $ 21,308 Other assets 2,832 Total assets held for sale $ 24,140 Note payable, net $ 35,136 Accounts payable and accrued expenses 2,029 Total liabilities held for sale $ 37,165 |
Note Receivable
Note Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Note Receivable | 4. Note Receivable 500 West 22nd Street Mezzanine Loan On February 28, 2019, the Company, as the lender, and an unrelated third party (the “500 West 22nd Street Mezzanine Loan Borrower”), as the borrower, entered into a loan promissory note (the “500 West 22nd Street Mezzanine Loan”) pursuant to which the Company would fund up to $12.0 million of mezzanine financing. On the same date, the Company initially funded $8.0 million of the 500 West 22nd Street Mezzanine Loan. Subsequently, through the first quarter of 2020, the Company funded an additional $4.0 million and as a result, the 500 West 22nd Street Mezzanine Loan has been fully funded. The 500 West 22nd Street Mezzanine Loan is recorded in note receivable, net on the consolidated balance sheet. In connection with the fundings made for the 500 West 22nd Street Mezzanine Loan, the Advisor has received an aggregate of approximately $0.2 million in acquisition fees from the Company. The acquisition fees are accounted for as an addition to the carrying value of the 500 West 22nd Street Mezzanine Loan and are being amortized as a reduction to interest income over the initial term of the 500 West 22nd Street Mezzanine Loan using a straight-line method that approximates the effective interest method. The 500 West 22nd Street Mezzanine Loan is due August 31, 2021 and is collateralized by the ownership interests of the 500 West 22nd Street Mezzanine Loan Borrower. The 500 West 22nd Street Mezzanine Loan Borrower owns a parcel of land located at 500 West 22nd Street, New York, New York on which it is developing and constructing the Condominium Project. At the onset of the COVID-19 pandemic, the Borrower’s construction activities related to the Condominium Project were temporarily suspended due to restrictions on certain non-essential construction activities imposed by New York City. However, construction activities for the Condominium Project fully resumed in early May 2020 and its anticipated construction timeline has not been significantly impacted to date. The 500 West 22nd Street Mezzanine Loan bears interest at a rate of LIBOR + 11.0% per annum with a floor of 13.493% (13.493% as of March 31, 2021). 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 22nd Street Mezzanine Loan and is being amortized to interest income, using a straight-line method that approximates the effective interest method, over the initial term of the 500 West 22nd Street Mezzanine Loan. The 500 West 22nd Street Mezzanine Loan may be extended two additional six-month periods by the 500 West 22nd Street Mezzanine Loan Borrower provided certain conditions are met, including the establishment of an additional reserve for interest and the payment of an extension fee equal to 0.25% of the outstanding loan balance. In connection with the initial funding under the 500 West 22nd Street Mezzanine Loan, the Company retained approximately $2.1 million of the proceeds to establish a reserve for interest and other items, which is presented in the consolidated balance sheets as a direct deduction from the carrying value of the 500 West 22nd Street Mezzanine Loan and are being applied against the first 8.0% of monthly interest due during the initial term of the 500 West 22nd Street Mezzanine Loan. Through March 31, 2021, approximately $2.0 million of the reserve has been recognized as interest income and the remaining balance of the reserve was approximately $0.1 million as of March 31, 2021. The additional monthly interest due above the 8.0% threshold is added to the balance of the 500 West 22nd Street Mezzanine Loan and payable at maturity. As of March 31, 2021, approximately $1.3 million of additional interest due is included in the balance of the 500 West 22nd Street Mezzanine Loan. During both the three months ended March 31, 2021 and 2020, the Company recorded approximately $0.4 million of interest income related to the note receivable. As of March 31, 2021, the outstanding principal balance of the 500 West 22nd Street Mezzanine Loan was approximately $13.4 million. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 5. Financial Instruments The Company 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, 2021 and December 31, 2020, management estimated that the carrying value of cash and cash equivalents, restricted cash, note receivable, prepaid expenses and other assets, accounts payable and accrued and other liabilities were at amounts that reasonably approximated their fair value based on their highly-liquid nature and/or short-term maturities. 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 estimated 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, 2021 and December 31, 2020. Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Fair Carrying Estimated Fair Notes payable $ 216,242 $ 220,496 $ 216,382 $ 219,625 |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities and Fair Value Measurements | |
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, 2021 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,504 $ 103 $ (14 ) $ 3,593 As of December 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,515 $ 140 $ (1 ) $ 3,654 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, 2021, 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, 2021, 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, 2021. 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 Due in 1 year $ 629 Due in 1 year through 5 years 2,867 Due in 5 years through 10 years 97 Due after 10 years - Total $ 3,593 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | 7. Notes Payable Notes payable, excluding debt classified as held for sale, consists of the following: Property Interest Rate Weighted Average Interest Rate as of Maturity Date Amount Due at Maturity As of March 31, As of December 31, River Club and the Townhomes at River Club LIBOR + 1.78% 1.89 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 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 17,209 17,289 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,540 37,600 Valley Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 28,800 Autumn Breeze Apartments 3.39% 3.39 % April 1, 2030 25,518 29,920 29,920 Total notes payable 3.80 % $ 202,566 216,242 216,382 Less: Deferred financing costs (2,912 ) (3,393 ) Total notes payable, net $ 213,330 $ 212,989 The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company’s indebtedness as of March 31, 2021. 2021 2022 2023 2024 2025 Thereafter Total Principal maturities $ 883 $ 1,468 $ 2,498 $ 3,181 $ 46,590 $ 161,622 $ 216,242 Less: deferred financing costs (2,912 ) Total notes payable, net $ 213,330 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Share Redemption Program and Redemption Price The Company’s board of directors has adopted a share redemption program (the “SRP”) that permits stockholders to sell their shares back to it, subject to the significant conditions and limitations of the program. The Company’s board of directors can amend the provisions of the SRP at any time without the approval of the stockholders. On August 9, 2017, the board of directors adopted a Fourth Amended and Restated Share Redemption Program (the “Fourth Amended SRP”) which became effective July 1, 2018. The Fourth Amended SRP established that the price at which the Company would redeem shares submitted for redemption will be a percentage of the estimated net asset value per share (“NAV per Share”) as of the Effective Date, as defined, as follows: For Redemptions with an Effective Date Between July 1, 2018 and June 30, 2019: 92.5% of the estimated NAV per Share July 1, 2019 and June 30, 2020: 95.0% of the estimated NAV per Share July 1, 2020 and June 30, 2021: 97.5% of the estimated NAV per Share Thereafter: 100% of the estimated NAV per Share Pursuant to the terms of the Fourth Amended SRP, any shares approved for redemption are redeemed on a periodic basis as determined from time to time by the Company’s board of directors, and no less frequently than annually. The Company will not redeem, during any twelve-month period, more than 5% of the weighted average number of shares outstanding during the twelve-month period immediately prior to the date of redemption. In addition, the cash available for redemptions is limited to no more than $10.0 million in any twelve-month period. Any redemption requests are honored pro rata among all requests received based on funds available and are not honored on a first come, first served basis. On December 28, 2018, the Company’s board of directors adopted a Fifth Amended and Restated Share Redemption Program (the “Fifth Amended SRP”) which became effective on January 31, 2019. The only material change to the program was to change the measurement period for the limitations on the number and dollar amount of shares that may be accepted for redemption from a rolling 12 month-period to a calendar year. In accordance with the Company’s Fifth Amended SRP, the per share redemption price automatically adjusted to $8.64 effective November 7, 2019 as a result of the determination and approval by the Company’s board of directors of the updated estimated NAV per Share. On December 13, 2019, the Company’s board of directors approved the suspension of the SRP. Pursuant to the terms of the SRP, while the SRP is suspended, the Company will not accept any requests for redemption. Effective March 25, 2021, the Company’s Board of Directors reopened the SRP solely for redemptions submitted in connection with a stockholder’s death and set the price for all such purchases to $9.42, which is 100% of the NAV per Share as of September 30, 2020. 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% of the number of shares outstanding as of the end of the preceding year. Death redemption requests are expected to be processed on a quarterly basis and may be subject to pro ration if death redemption requests exceed the annual limitation. The Company’s board of directors will continue to consider the liquidity available to stockholders going forward, balanced with other long-term interests of the stockholders and the Company. It is possible that in the future additional liquidity will be made available by the Company through the SRP, issuer tender offers or other methods, though it can make no assurances as to whether that will happen, or the timing or terms of any such liquidity. Distributions The Company made an election to qualify as a REIT for federal income tax purposes commencing with its taxable year ended December 31, 2008. 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, the Company may be required to make distributions in excess of cash available. Distributions are authorized at the discretion of the Company’s board of directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. Such analyses may include actual and anticipated operating cash flow, changes in market capitalization rates for investments suitable for the Company’s portfolio, capital expenditure needs, general financial and market conditions, proceeds from asset sales, and other factors that the Company’s board of directors deems relevant. The Company’s board of directors’ decision will be substantially influenced by their obligation to ensure that the Company maintains its federal tax status as a REIT. The Company cannot provide assurance that it will pay distributions at any particular level, or at all. The Company did not make any distributions to its stockholders during the three months ended March 31, 2021 and 2020. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions The Company has agreements with the Advisor and its affiliates to pay certain fees in exchange for services performed by these entities and other related parties. On June 10, 2020, these agreements were extended an additional year through June 10, 2021. The Company is dependent on the Advisor and property manager for certain services that are essential to it, including asset disposition decisions, property management and leasing services, and other general administrative responsibilities. In the event that these companies were unable to provide the Company with their respective services, the Company would be required to obtain such services from other sources. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2021 2020 Acquisition fees and acquisition expense reimbursement (1) $ - $ 764 Debt financing fees (2) - 299 Property management fees (property operating expenses) 118 115 Administrative services reimbursement (general and administrative costs) 333 328 Asset management fees (general and administrative costs) 695 632 Total $ 1,146 $ 2,138 (1) Capitalized to the corresponding asset and amortized over its estimated useful life. (2) Capitalized upon the execution of the loan, presented in the consolidated balance sheets as a direct deduction from the carrying value of the corresponding loan and amortized over the initial term of the corresponding loan. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, which was filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2021. 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 8-03 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 the Company has 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 the Company is 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 the Company has control, substantive participating rights or both under the respective ownership agreement. For entities in which the Company has less than a controlling interest or entities which we are not deemed to be the primary beneficiary, it accounts for the investment using the equity method of accounting. 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 consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. |
Investment in Unconsolidated Joint Venture (Prospect Park) | Investment in Unconsolidated Joint Venture (Prospect Park) On May X, 2021 the Company received a payment of $1.5 million for the settlement of its prior participation in the residual interests of a mezzanine financing to an unaffiliated third-party entity that owned an apartment complex in Denver, Colorado. |
Earnings per Share | Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing net income/(loss) by the weighted-average number of shares of common stock outstanding during the applicable period. |
Restricted Cash | Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. As of March 31, 2021, restricted cash also included $14.1 million of the proceeds from the sale of Lakes of Margate. These funds have been temporarily placed in escrow with a qualified intermediary to potentially facilitate a like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. See Note 3 for additional information. |
COVID-19 Pandemic | COVID-19 Pandemic On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to subsequently impose various degrees of restrictions and other measures, including, but not limited to, mandatory temporary closures, quarantine guidelines, limitations on travel, and “shelter in place” rules in an effort to reduce its duration and the severity of its spread. Although the COVID-19 pandemic has continued to evolve, most of these previously imposed restrictions and other measures have now been reduced and/or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent is likely dependent on numerous developments such as the regulatory approval, mass production, administration and ultimate effectiveness of vaccines, as well as the timeline to achieve a level of sufficient herd immunity amongst the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the overall health of the U.S. economy for the foreseeable future. The Company’s consolidated portfolio of properties currently consists of six multi-family apartment complexes and one student housing complex. Despite past and current restrictions and mitigation strategies, the Company’s multi-family properties still have not yet seen any significant impact from the COVID-19 pandemic. The Company’s student housing complex, which consists of the River Club Apartments and the Townhomes at River Club, are located in Athens, Georgia and principally serve as “off-campus” lodging for students attending the University of Georgia (“UGA”). Leases for the River Club Apartments and Townhomes at River Club generally have a term of one year running from August through July. Because of the COVID-19 pandemic, UGA previously transitioned to online instruction during its Spring 2020 semester before resuming to “on-campus” classes beginning with its Fall 2020 semester. The Company’s student housing complex is located “off-campus” and therefore, its tenants are not required to vacate even if UGA does not conduct “on-campus” classes. However, if UGA decides to return to online instruction for its students in lieu of “on-campus” classes in future semesters, it could adversely impact leasing demand, occupancy levels and the operating results of the Company’s student housing complex in future periods. Additionally, the Company’s note receivable is collateralized by a condominium development project located in New Yok City (the “Condominium Project”), which is subject to similar restrictions and risks. To date, the Condominium Project and the Company’s note receivable have not been significantly impacted by the COVID-19 pandemic. While the Company’s business has not yet seen any material impact from the ongoing COVID-19 pandemic, the extent to which it may be affected in future periods will largely depend on current and future developments, all of which are highly uncertain and cannot be reasonably predicted. If the Company’s properties and real estate-related investments are negatively impacted in future periods for an extended period because (i) tenants are unable to pay their rent, (ii) demand for its student housing complex declines, and (iii) its borrower is unable to pay scheduled debt service on the outstanding note receivable; the Company’s business and financial results could be materially and adversely impacted. |
New Accounting Pronouncements | 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, 2022, 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. |
Held for Sale and Disposition_2
Held for Sale and Disposition of Lakes of Margate (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of assets and liabilities held for sale | The following summary presents the major components of the Lakes of Margate’s assets and liabilities held for sale, of as December 31, 2020. As of December 31, Net investment property $ 21,308 Other assets 2,832 Total assets held for sale $ 24,140 Note payable, net $ 35,136 Accounts payable and accrued expenses 2,029 Total liabilities held for sale $ 37,165 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Notes payable and the related estimated fair value | Carrying amounts of our notes payable and the related estimated fair value is summarized as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Fair Carrying Estimated Fair Notes payable $ 216,242 $ 220,496 $ 216,382 $ 219,625 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Marketable Securities and Fair Value Measurements | |
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, 2021 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,504 $ 103 $ (14 ) $ 3,593 As of December 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Debt securities: Corporate and Government Bonds $ 3,515 $ 140 $ (1 ) $ 3,654 |
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates | 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 Due in 1 year $ 629 Due in 1 year through 5 years 2,867 Due in 5 years through 10 years 97 Due after 10 years - Total $ 3,593 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of information on notes payable | Notes payable, excluding debt classified as held for sale, consists of the following: Property Interest Rate Weighted Average Interest Rate as of Maturity Date Amount Due at Maturity As of March 31, As of December 31, River Club and the Townhomes at River Club LIBOR + 1.78% 1.89 % May 1, 2025 $ 28,419 $ 30,359 $ 30,359 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 17,209 17,289 Axis at Westmont 4.39% 4.39 % February 1, 2026 34,343 37,540 37,600 Valley Ranch Apartments 4.16% 4.16 % March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% 3.78 % July 1, 2026 26,090 28,800 28,800 Autumn Breeze Apartments 3.39% 3.39 % April 1, 2030 25,518 29,920 29,920 Total notes payable 3.80 % $ 202,566 216,242 216,382 Less: Deferred financing costs (2,912 ) (3,393 ) Total notes payable, net $ 213,330 $ 212,989 |
Schedule of contractual obligations for principal payments | The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company’s indebtedness as of March 31, 2021. 2021 2022 2023 2024 2025 Thereafter Total Principal maturities $ 883 $ 1,468 $ 2,498 $ 3,181 $ 46,590 $ 161,622 $ 216,242 Less: deferred financing costs (2,912 ) Total notes payable, net $ 213,330 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Redemption Program | The Fourth Amended SRP established that the price at which the Company would redeem shares submitted for redemption will be a percentage of the estimated net asset value per share (“NAV per Share”) as of the Effective Date, as defined, as follows: For Redemptions with an Effective Date Between July 1, 2018 and June 30, 2019: 92.5% of the estimated NAV per Share July 1, 2019 and June 30, 2020: 95.0% of the estimated NAV per Share July 1, 2020 and June 30, 2021: 97.5% of the estimated NAV per Share Thereafter: 100% of the estimated NAV per Share |
Related Part Transactions (Tabl
Related Part Transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of fees to related parties | The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2021 2020 Acquisition fees and acquisition expense reimbursement (1) $ - $ 764 Debt financing fees (2) - 299 Property management fees (property operating expenses) 118 115 Administrative services reimbursement (general and administrative costs) 333 328 Asset management fees (general and administrative costs) 695 632 Total $ 1,146 $ 2,138 (1) Capitalized to the corresponding asset and amortized over its estimated useful life. (2) Capitalized upon the execution of the loan, presented in the consolidated balance sheets as a direct deduction from the carrying value of the corresponding loan and amortized over the initial term of the corresponding loan. |
Business (Details Narrative)
Business (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Feb. 10, 2007 | Jan. 19, 2007 | |
Nature of Business [Line Items] | |||||
Common stock, shares outstanding (in shares) | 20,200,000 | 20,200,000 | |||
Common stock, shares issued (in shares) | 20,200,000 | 20,200,000 | |||
Convertible stock issued (in shares) | 1,000 | 1,000 | |||
Payment for acquisition of Noncontrolling Member’s Ownership Interest | $ 1,086 | $ 0 | |||
Initial Capitalization [Member] | Affiliated Entity [Member] | |||||
Nature of Business [Line Items] | |||||
Common stock, shares issued (in shares) | 22,500 | ||||
Convertible stock issued (in shares) | 1,000 | ||||
Initial Offering [Member] | Lightstone Group [Member] | |||||
Nature of Business [Line Items] | |||||
Convertible stock issued (in shares) | 1,000 | ||||
Behringer Harvard Opportunity Op II Lp [Member] | |||||
Nature of Business [Line Items] | |||||
Percentage of ownership interest by BHO II, Inc | 0.10% | ||||
Marylands [Member] | |||||
Nature of Business [Line Items] | |||||
Percentage of remaining ownership interest held by BHO Business Trust II | 99.90% | ||||
Lakes of Margate [Member] | |||||
Nature of Business [Line Items] | |||||
Acquired of noncontrolling member’s ownership interest, percentage | 7.50% | ||||
Payment for acquisition of Noncontrolling Member’s Ownership Interest | $ 1,100 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | May 10, 2021 | Mar. 31, 2021 |
Prospect Park [Member] | ||
Proceeds from Joint Venture | $ 1,500 | |
Lakes of Margate [Member] | ||
Proceeds from sale | $ 14,100 |
Held for Sale and Disposition_3
Held for Sale and Disposition of Lakes of Margate (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Total assets held for sale | $ 0 | $ 24,140 |
Total liabilities held for sale | $ 0 | 37,165 |
Lakes of Margate [Member] | ||
Net investment property | 21,308 | |
Other assets | 2,832 | |
Total assets held for sale | 24,140 | |
Note payable, net | 35,136 | |
Accounts payable and accrued expenses | 2,029 | |
Total liabilities held for sale | $ 37,165 |
Held for Sale and Disposition_4
Held for Sale and Disposition of Lakes of Margate (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 17, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Note receivable | $ 13,229 | $ 12,794 | ||
Lakes of Margate [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposal of property | $ 15,100 | $ 50,800 | ||
Note receivable | $ 35,700 | |||
Gain on sale of investment property | 27,800 | |||
Proceeds from escrow | $ 14,100 |
Note Receivable (Details Narrat
Note Receivable (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Payments to Acquire Notes Receivable | $ 0 | $ 659 | ||
Note receivable | $ 13,229 | $ 12,794 | ||
Mezzanine Loan Promissory Note [Member] | ||||
Debt Instrument, Face Amount | $ 12,000 | |||
Payments to Acquire Notes Receivable | 8,000 | $ 4,000 | ||
Payments for Merger Related Costs | $ 200 | |||
Debt Instrument, Description of Variable Rate Basis | LIBOR + 11.0% | |||
Debt Instrument, Basis Spread on Variable Rate | 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 Origination Fees, Percentage | 0.25% | |||
Debt Instrument, Maturity Date | Aug. 31, 2021 | |||
Interest Reserve On Notes Receivable | $ 2,100 | $ 100 | ||
Utilization Of Interest Reserve Percentage On Interest Due | 8.00% | 8.00% | ||
Amount of additional interest included in the principal balance | $ 1,300 | |||
Investment Income, Interest | 2,000 | |||
Interest income | 400 | |||
Note receivable | $ 13,400 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Notes payable, Carrying Amount | $ 216,242 | $ 216,382 |
Notes payable, Estimated Fair Value | $ 220,496 | $ 219,625 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements (Details - Available for Sale Securities) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value | $ 3,593 | $ 3,654 |
Corporate And Government Bonds [Member] | ||
Adjusted Cost | 3,504 | 3,515 |
Gross Unrealized Gains | 103 | 140 |
Gross Unrealized Losses | (14) | (1) |
Fair Value | $ 3,593 | $ 3,654 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements (Details - Marketable Debt Securities) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Marketable Securities and Fair Value Measurements | ||
Due in 1 year | $ 629 | |
Due in 1 year through 5 years | 2,867 | |
Due in 5 years through 10 years | 97 | |
Due after 10 years | 0 | |
Total | $ 3,593 | $ 3,654 |
Notes Payable (Details - Inform
Notes Payable (Details - Information on Notes Payable) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Amount Due at Maturity | $ 213,330 | |
Less: deferred financing costs | $ (2,912) | |
Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 3.80% | |
Amount Due at Maturity | $ 202,566 | |
Total notes payable | 216,242 | $ 216,382 |
Less: deferred financing costs | (2,912) | (3,393) |
Total notes payable, net | $ 213,330 | 212,989 |
River Club And Townhomes At River Club Athens [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate | LIBOR + 1.78% | |
Weighted Average Interest Rate | 1.89% | |
Debt Instrument, Maturity Date | May 1, 2025 | |
Amount Due at Maturity | $ 28,419 | |
Total notes payable | $ 30,359 | 30,359 |
Arbors Harbor Town Memphis [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.53% | |
Weighted Average Interest Rate | 4.53% | |
Debt Instrument, Maturity Date | Dec. 28, 2025 | |
Amount Due at Maturity | $ 29,000 | |
Total notes payable | $ 29,000 | 29,000 |
Parkside Apartments Sugarland Texas [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.45% | |
Weighted Average Interest Rate | 4.45% | |
Debt Instrument, Maturity Date | Jun. 1, 2025 | |
Amount Due at Maturity | $ 15,782 | |
Total notes payable | $ 17,209 | 17,289 |
Axis At Westmont [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.39% | |
Weighted Average Interest Rate | 4.39% | |
Debt Instrument, Maturity Date | Feb. 1, 2026 | |
Amount Due at Maturity | $ 34,343 | |
Total notes payable | $ 37,540 | 37,600 |
Valley Ranch Apartments [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 4.16% | |
Weighted Average Interest Rate | 4.16% | |
Debt Instrument, Maturity Date | Mar. 1, 2026 | |
Amount Due at Maturity | $ 43,414 | |
Total notes payable | $ 43,414 | 43,414 |
Flats At Fishers [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 3.78% | |
Weighted Average Interest Rate | 3.78% | |
Debt Instrument, Maturity Date | Jul. 1, 2026 | |
Amount Due at Maturity | $ 26,090 | |
Total notes payable | $ 28,800 | 28,800 |
Autumn Breeze Apartments [Member] | Notes Payable To Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percent) | 3.39% | |
Weighted Average Interest Rate | 3.39% | |
Debt Instrument, Maturity Date | Apr. 1, 2030 | |
Amount Due at Maturity | $ 25,518 | |
Total notes payable | $ 29,920 | $ 29,920 |
Notes Payable (Details - Contra
Notes Payable (Details - Contractual Obligations for Principal Payments) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 883 |
2022 | 1,468 |
2023 | 2,498 |
2024 | 3,181 |
2025 | 46,590 |
Thereafter | 161,622 |
Total principal maturities | 216,242 |
Less: deferred financing costs | (2,912) |
Total notes payable, net | $ 213,330 |
Stockholders' Equity (Details -
Stockholders' Equity (Details - Summary of Estimated Net Asset Value Per Share as of Effective Date) | Mar. 31, 2021 |
July 1, 2018 and June 30, 2019 [Member] | |
Share Redemption Program, Redemption Price, Percentage of Share Price | 92.50% |
July 1, 2019 and June 30, 2020 [Member] | |
Share Redemption Program, Redemption Price, Percentage of Share Price | 95.00% |
July 1, 2020 and June 30, 2021 [Member] | |
Share Redemption Program, Redemption Price, Percentage of Share Price | 97.50% |
Thereafter [Member] | |
Share Redemption Program, Redemption Price, Percentage of Share Price | 100.00% |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 28, 2018 | Mar. 31, 2021 | Mar. 25, 2021 | |
Equity [Abstract] | |||
Share repurchase program, cash available for redemption | $ 10,000 | ||
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 5.00% | ||
Percentage of real estate investment trust taxable income | 90.00% | ||
Treasury Stock Acquired, Average Cost Per Share | $ 8.64 | $ 9.42 |
Related Party Transactions (Det
Related Party Transactions (Details - Fees to Related Parties) - Related Party [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Related Party Transaction [Line Items] | |||
Acquisition fees and acquisition expense reimbursement | [1] | $ 0 | $ 764 |
Debt financing fees | [2] | 0 | 299 |
Property management fees (property operating expenses) | 118 | 115 | |
Administrative services reimbursement (general and administrative costs) | 333 | 328 | |
Asset management fees (general and administrative costs) | 695 | 632 | |
Total | $ 1,146 | $ 2,138 | |
[1] | Capitalized to the corresponding asset and amortized over its estimated useful life. | ||
[2] | Capitalized upon the execution of the loan, presented in the consolidated balance sheets as a direct deduction from the carrying value of the corresponding loan and amortized over the initial term of the corresponding loan. |