Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-53650 | ||
Entity Registrant Name | Lightstone Value Plus REIT V, Inc. | ||
Entity Central Index Key | 0001387061 | ||
Entity Tax Identification Number | 20-8198863 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | ||
Entity Address, Address Line Two | Suite 1 | ||
Entity Address, City or Town | Lakewood | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08701 | ||
City Area Code | (888) | ||
Local Phone Number | 808-7348 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 0 | ||
Entity Common Stock, Shares Outstanding | 19,400,000 | ||
Documents Incorporated by Reference [Text Block] | None | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 274 | ||
Auditor Name | EisnerAmper LLP | ||
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Investment property: | ||
Land and improvements | $ 85,139 | $ 84,439 |
Building and improvements | 342,732 | 324,335 |
Furniture, fixtures and equipment | 11,333 | 9,975 |
Gross investment property | 439,204 | 418,749 |
Less accumulated depreciation | (63,544) | (59,274) |
Net investment property | 375,660 | 359,475 |
Cash and cash equivalents | 47,125 | 59,625 |
Marketable securities, available for sale | 3,675 | 3,455 |
Restricted cash | 19,421 | 5,126 |
Note receivable, net | 4,898 | 3,771 |
Prepaid expenses and other assets | 4,350 | 3,256 |
Total Assets | 455,129 | 434,708 |
Liabilities and Stockholders' Equity | ||
Notes payable, net | 287,029 | 290,289 |
Accounts payable and accrued and other liabilities | 7,516 | 8,515 |
Total liabilities | 294,545 | 298,804 |
Company's stockholders' equity: | ||
Preferred stock, $.0001 par value per share; 50.0 million shares authorized, none issued and outstanding | ||
Convertible stock, $.0001 par value per share; 1,000 shares authorized, issued and outstanding | ||
Common stock, $.0001 par value per share; 350.0 million shares authorized, 19.6 million and 20.0 million shares issued and outstanding, respectively | 2 | 2 |
Additional paid-in-capital | 163,846 | 169,996 |
Accumulated other comprehensive loss | (107) | (220) |
Accumulated deficit | (3,157) | (33,874) |
Total Stockholders' Equity | 160,584 | 135,904 |
Total Liabilities and Stockholders' Equity | $ 455,129 | $ 434,708 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
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) | 1,000,000 | 1,000,000 |
Convertible stock, shares issued | 1,000,000 | 1,000,000 |
Convertible stock, shares outstanding | 1,000,000 | 1,000,000 |
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) | 19,600,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 19,600,000 | 20,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Statement [Abstract] | ||
Rental revenues | $ 49,568 | $ 46,970 |
Expenses | ||
Property operating expenses | 15,971 | 15,253 |
Real estate taxes | 6,806 | 6,815 |
General and administrative | 7,701 | 7,618 |
Depreciation and amortization | 13,371 | 17,534 |
Total expenses | 43,849 | 47,220 |
Interest expense, net | (14,232) | (13,738) |
Interest income | 2,911 | 1,868 |
Gain on sale of investment property | 41,109 | |
Mark to market adjustment on derivative financial instruments | (2,930) | 1,762 |
Other income, net | 309 | 1,708 |
Net income/(loss) | $ 32,886 | $ (8,650) |
Weighted average shares outstanding: | ||
Weighted average shares outstanding, basic | 19,827 | 20,077 |
Weighted average shares outstanding, diluted | 19,827 | 20,077 |
Basic loss per share | $ 1.66 | $ (0.43) |
Diluted loss per share | $ 1.66 | $ (0.43) |
Comprehensive income/(loss): | ||
Net income/(loss) | $ 32,886 | $ (8,650) |
Other comprehensive income/(loss): | ||
Holding gain/(loss) on marketable securities, available for sale | 100 | (233) |
Reclassification adjustment for loss on sale of marketable securities included in net income | 13 | |
Total other comprehensive income/(loss) | 113 | (233) |
Comprehensive income/(loss) | $ 32,999 | $ (8,883) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Convertible Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 2 | $ 171,079 | $ (25,224) | $ 13 | $ 145,870 | |
Beginning balance, shares at Dec. 31, 2021 | 1 | 20,128 | ||||
Net income | (8,650) | (8,650) | ||||
Redemption and cancellation of common stock | (1,083) | (1,083) | ||||
Redemption and cancellation of common stock shares | (84) | |||||
Other comprehensive income: | ||||||
Holding gain on marketable securities, available for sale | (233) | (233) | ||||
Ending balance, value at Dec. 31, 2022 | $ 2 | 169,996 | (33,874) | (220) | 135,904 | |
Ending balance, shares at Dec. 31, 2022 | 1 | 20,044 | ||||
Net income | 32,886 | 32,886 | ||||
Redemption and cancellation of common stock | (6,150) | (6,150) | ||||
Redemption and cancellation of common stock shares | (490) | |||||
Other comprehensive income: | ||||||
Holding gain on marketable securities, available for sale | 100 | 100 | ||||
Reclassification adjustment for loss on sale of marketable securities included in net income | 13 | 13 | ||||
Distributions declared | (2,169) | (2,169) | ||||
Ending balance, value at Dec. 31, 2023 | $ 2 | $ 163,846 | $ (3,157) | $ (107) | $ 160,584 | |
Ending balance, shares at Dec. 31, 2023 | 1 | 19,554 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income/(loss) | $ 32,886 | $ (8,650) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 13,371 | 17,534 |
Amortization of deferred financing costs | 1,343 | 1,426 |
Gain on sale of investment property | (41,109) | |
Mark to market adjustment on derivative financial instruments | 2,930 | (1,762) |
Non-cash interest income | (9) | (477) |
Other non-cash adjustments, net | (43) | (111) |
Changes in operating assets and liabilities: | ||
(Increase)/decrease in prepaid expenses and other assets | (2,778) | 89 |
(Decrease)/increase in accounts payable and accrued and other liabilities | (1,000) | 408 |
Cash provided by operating activities | 5,591 | 8,457 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (60,327) | (9,752) |
Purchase of marketable securities | (974) | (1,135) |
Proceeds from sale of marketable securities | 855 | 1,092 |
Proceeds from repayment of note receivable | 10,625 | |
Funding of note receivable, net | (1,119) | |
Proceeds from sale of investment property, net of closing costs | 70,569 | |
Cash provided by investing activities | 9,004 | 830 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 34,640 | 13,061 |
Payments on notes payable | (37,998) | (1,740) |
Payment of loan fees and expenses | (1,123) | (13) |
Redemption and cancellation of common stock | (6,150) | (1,083) |
Distributions paid | (2,169) | |
Cash (used in)/provided by financing activities | (12,800) | 10,225 |
Net change in cash, cash equivalents and restricted cash | 1,795 | 19,512 |
Cash, cash equivalents and restricted cash, beginning of year | 64,751 | 45,239 |
Cash, cash equivalents and restricted cash, end of year | 66,546 | 64,751 |
Supplemental cash flow information for the years indicated is as follows: | ||
Cash paid for interest, net of amounts capitalized | 17,173 | 13,353 |
Cash paid/refunded for income taxes, net | 763 | 641 |
Holding gain/loss on marketable securities, available for sale | 113 | 233 |
Capital expenditures for investment property in accounts payable and accrued and other liabilities | $ 163 | $ 161 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Business and Organization
Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and Organization Business Lightstone Value Plus REIT V, Inc. (“Lightstone REIT V,” which may also 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 U.S. 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, multifamily and student housing. 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. 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 December 31, 2023, the Company’s wholly-owned subsidiary, BHO II, Inc., a Delaware corporation, owned a 0.1% 99.9% All of the Company’s current investments are located in the U.S. The Company currently intends to hold its various real properties until such time as its board of directors (the “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 December 31, 2023, the Company had eight wholly owned multifamily properties containing an aggregate of 2,520 apartment units and one real estate-related investment, which is a senior mortgage loan (note receivable). Our business is externally managed by LSG Development Advisor LLC (the “Advisor”), an affiliate of the Lightstone Group LLC (“Lightstone”), which provides advisory services to us. Lightstone is majority owned by David Lichtenstein, a member of the Board of Directors. Pursuant to the terms of an advisory agreement and subject to the oversight of our Board of Directors, the Advisor is responsible for managing our day-to-day affairs and for services related to the management of our assets. The Company has no employees. The Company is dependent on the Advisor and its affiliates for performing a full range of services that are essential to it, including asset management, property management, property management oversight (for those of its properties which are managed by an unrelated third party property manager) and acquisition, disposition and financing activities, and other general administrative responsibilities; such as tax, accounting, legal, information technology and investor relations services. If the Advisor and its affiliates are unable to provide these services to the Company, it would be required to provide the services itself or obtain the services from other parties. Organization In connection with the Company’s initial capitalization, the Company issued 22,500 1,000 1,000 19.6 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 and the Board of Directors’ assessment of the Company’s investment objectives and liquidity options for the Company’s stockholders. Although the Board of Directors has currently targeted June 30, 2028 for the commencement of a liquidity event, 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. Furthermore, the Company will seek stockholder approval prior to liquidating its entire portfolio. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of real estate including impairment and depreciable lives. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. Principles of Consolidation and Basis of Presentation The Company’s consolidated financial statements include the Company’s accounts and the accounts of other subsidiaries over which it has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. Accounting for Acquisitions of Investment Property The cost of the real estate assets acquired in an asset acquisition is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their relative fair values. Fees incurred related to asset acquisitions are capitalized as part of the cost of the investment. Upon the acquisition of real estate property that meets the definition of a business, the Company recognizes the assets acquired, the liabilities assumed and any noncontrolling interest as of the acquisition date, measured at their fair values. The acquisition date is the date on which the Company obtains control of the real estate property. The assets acquired and liabilities assumed may consist of land, inclusive of associated rights, buildings, assumed debt, identified intangible assets and liabilities, and asset retirement obligations. Identified intangible assets generally consist of above-market leases, in-place leases, in-place tenant improvements, in-place leasing commissions, and tenant relationships. Identified intangible liabilities generally consist of below-market leases. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree over the fair value of the identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition-related costs are expensed in the period incurred. Initial valuations are subject to change until the Company’s information is finalized, which is no later than 12 months from the acquisition date. The fair value of the tangible assets acquired, consisting of land and buildings, is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods believed to be used by market participants. The value of buildings are generally depreciated over estimated useful lives ranging up to 39 years using the straight-line method. The Company determines the fair value of assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that management believes the Company could obtain at the date of the debt assumption. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan using the effective interest method. Cash and Cash Equivalents The Company considers investments in highly liquid money market funds or investments with original maturities of three months or less to be cash equivalents. 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 the Company’s consolidated properties. Capital reserves are typically utilized for non-operating expenses such as tenant improvements, leasing commissions, and major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code, as amended (the “Code”). The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in its consolidated statements of cash flows: Schedule of cash, cash equivalents and restricted cash December 31, 2023 2022 Cash and cash equivalents $ 47,125 $ 59,625 Restricted cash 19,421 5,126 Total cash, cash equivalents and restricted cash $ 66,546 $ 64,751 Marketable Securities Marketable securities consist of debt securities that are designated as available-for-sale. The Company may be exposed to credit losses through its available-for-sale debt securities. Unrealized losses or impairments resulting from the amortized cost basis of any available-for-sale debt security exceeding its fair value are evaluated for identification of credit and non-credit related factors. Any difference between the fair value of the debt security and the amortized cost basis not attributable to credit related factors are reported in other comprehensive income. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. When evaluating the investments for impairment at each reporting period, the Company reviews factors such as the extent of the unrealized loss, current and future economic market conditions and the economic and financial condition of the issuer and any changes thereto. Realized gains or losses resulting from the sale of these securities are determined based on the specific identification of the securities sold. Investment Impairment For all of the Company’s real estate and real estate related investments, the Company monitors events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. We evaluate the recoverability of our investments in real estate assets at the lowest identifiable level, which is primarily at the individual property level. Examples of the types of events and circumstances that would cause management to assess the Company’s assets for potential impairment include, but are not limited to: a significant decrease in the market price of an asset; a significant adverse change in the manner in which the asset is being used; major vacancies and the resulting loss of revenues; natural disasters; a change in the projected holding period; legitimate purchase offers; and changes in the global and local markets or economic conditions. To the extent that the Company’s portfolio is concentrated in limited geographic locations, downturns specifically related to such regions may result in tenants defaulting on their lease obligations at those properties within a short time period, which may result in asset impairments. When such events or changes in circumstances are present, the Company assesses potential impairment by comparing estimated future undiscounted operating cash flows expected to be generated over the life of the asset and from its eventual disposition to the carrying amount of the asset. These projected cash flows are prepared internally by the Advisor and reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s management reviews these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions that are consistent with market data or with assumptions that would be used by a third-party market participant and assume the highest and best use of the investment. The Company considers trends, strategic decisions regarding future development plans, and other factors in its assessment of whether impairment conditions exist. In the event that the carrying amount exceeds the estimated future undiscounted operating cash flows, the Company recognizes an impairment loss to adjust the carrying amount of the asset to estimated fair value. While the Company believes its estimates of future cash flows are reasonable, different assumptions regarding factors such as market rents, economic conditions, and occupancy rates could significantly affect these estimates. In evaluating the Company’s investments for impairment, management may use appraisals and make estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during the Company’s ownership, and the projected sales price of each of the properties. A future change in these estimates and assumptions could result in understating or overstating the carrying value of the Company’s investments, which could be material to its financial statements. In addition, the Company may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell. Revenue Recognition The Company recognizes rental income generated from leases of its operating properties on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Leases associated with the Company’s multifamily residential properties are generally short-term in nature, and thus have no straight-line rent. Interest Rate Cap Contracts The Company utilizes derivative financial instruments to reduce interest rate risk. The Company does not hold or issue derivative financial instruments for trading purposes. The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments are recorded in the consolidated statements of operations. Deferred Financing Costs Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are included as a direct deduction from the related debt in the consolidated balance sheets. Tax Status and Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. As a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its 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. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT, it may still be subject to some U.S. federal, state and local taxes on its income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To maintain its qualification as a REIT, the Company may engage in certain activities through a wholly-owned taxable REIT subsidiary. As such, the Company may be subject to U.S. federal and state income and franchise taxes from these activities. The Company’s income tax expense and benefits are included in other income, net on its consolidated statements of operations. During the year ended December 31, 2023, the Company recorded income tax expense of $ 0.8 0.9 0.8 As of December 31, 2023 and 2022, the Company had no Concentration of Credit Risk At December 31, 2023 and 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the applicable period. Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance. Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | 3. New Accounting Pronouncements In June 2016, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard introduces an impairment model that is based on expected credit losses, rather than incurred losses, to estimate credit losses for financial instruments measured at amortized cost. For other receivables and held-to-maturity debt instruments, entities are required to use a new forward looking expected loss model that generally will result in an earlier recognition of allowances for losses. Financial instruments with similar risk characteristics may be grouped together when estimating expected credit losses. The update was effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted the new standard, as of January 1, 2023, and it did not have a material impact on the consolidated financial statements. In November 2023, the FASB issued an accounting standards update, “Segment Reporting-Improvements to Reportable Segment Disclosures,” which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit and loss, as well as the title and position of the CODM. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company is currently evaluating the guidance and the impact it may have on the consolidated financial statements. In December 2023, the FASB issued an accounting standards update, “Income Taxes-Improvements to Income Tax Disclosures,” which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This update is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the guidance and the impact it may have on the 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. |
Marketable Securities and Fair
Marketable Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities And Fair Value Measurements | |
Marketable Securities and Fair Value Measurements | 4. Marketable Securities and Fair Value Measurements Marketable Securities, Derivative Financial Instruments and Fair Value Measurements The following is a summary of the Company’s available for sale securities: Schedule of available-for-sale securities reconciliation As of December 31, 2023 Adjusted Gross Gross Fair Value Debt securities: Corporate and Government Bonds $ 3,783 $ 37 $ (145 ) $ 3,675 As of December 31, 2022 Adjusted Gross Gross Fair Value Debt securities: Corporate and Government Bonds $ 3,675 $ - $ (220 ) $ 3,455 As of December 31, 2023, the Company has not recognized an allowance for expected credit losses related to available-for-sale debt securities as the Company has not identified any unrealized losses for these investments attributable to credit factors. The Company’s unrealized loss on investments in debt securities was primarily caused by rising interest rates. The Company does not currently intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost basis. The following table summarizes the estimated fair value of the Company’s 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: Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 741 Due in 1 year through 5 years 2,934 Due in 5 years through 10 years - Due after 10 years - Total $ 3,675 Derivative Financial Instruments The Company has entered into interest rate cap contracts with unrelated financial institutions in order to reduce the effect of interest rate fluctuations associated with certain of its variable rate debt. The Company is exposed to credit risk in the event of non-performance by the counterparty to these financial instruments. Management believes the risk of loss due to non-performance to be minimal. The Company accounts for its interest rate cap contracts as economic hedges marking them to their fair value taking into account present interest rates compared to the contracted fixed rate over the life of the contract. The changes in the fair value of these economic hedges represent unrealized gains or losses which are classified as mark to market adjustment on derivative financial instruments on the consolidated statements of operations. As of December 31, 2023, the Company had two interest rate cap contracts. The first interest rate cap contract, which was entered into at a cost of $1.4 million on July 17, 2023 with an effective date of July 15, 2023, has a notional amount of $ 52.2 July 15, 2024 SOFR at 2.50% 49.0 April 11, 2024 SOFR at 2.00% The fair value of the Company’s interest rate cap contracts was $ 1.3 1.8 During the years ended December 31, 2023 and 2022, the Company recorded a negative mark to market adjustment of $ 2.9 1.8 During the years ended December 31, 2023 and 2022, the Company earned $ 2.9 0.4 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 value 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. The fair values of the Company’s interest rate cap contracts are measured using other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. As of December 31, 2023 and 2022, all of the Company’s debt securities and interest rate cap contracts were classified as Level 2 assets and there were no transfers between the level classifications during the years ended December 31, 2023 and 2022. |
Financial Instruments not Repor
Financial Instruments not Reported at Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments not Reported at Fair Value | 5. Financial Instruments not Reported at Fair Value 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 December 31, 2023 and 2022, management estimated that the carrying value of the Company’s cash and cash equivalents, restricted cash, note receivable, prepaid expenses and other assets (exclusive of interest rate cap contracts - see Note 4) and 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 values of the Company’s notes payable are categorized as a Level 2 in the fair value hierarchy. The fair values were estimated using a discounted cash flow analysis valuation on the estimated borrowing rates available for loans with similar terms and maturities. The fair values of the notes payable were determined by discounting the future contractual interest and principal payments by a market rate. Disclosure about fair values of financial instruments is based on pertinent information available to management as of December 31, 2023 and 2022. Carrying amounts of the Company’s notes payable and the related estimated fair value are as follows: Schedule of Notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 289,794 $ 280,833 $ 293,695 $ 288,222 |
Real Estate Properties
Real Estate Properties | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Real Estate Properties | 6. Real Estate Properties The following table presents certain information about the Company’s eight wholly owned real estate properties as of December 31, 2023: Schedule of assets and liabilities held for sale Property Name Description Location Date Acquired Arbors Harbor Town Multifamily Memphis, Tennessee December 20, 2011 Parkside Apartments Multifamily Sugar Land, Texas August 8, 2013 Axis at Westmont Multifamily Westmont, Illinois November 27, 2018 Valley Ranch Apartments Multifamily Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Multifamily Noblesville, Indiana March 17, 2020 BayVue Apartments Multifamily Tampa, Florida July 7, 2021 Citadel Apartments Multifamily Houston, Texas October 6, 2021 Camellia Apartments Multifamily St. Augustine, Florida December 19, 2023 Acquisition of Camellia Apartments On December 19, 2023, the Company acquired a 210-unit multifamily property located in St. Augustine, Florida (the “Camellia Apartments”), from an unrelated third party, for a contractual purchase price of $ 53.3 33.9 19.4 In connection with the acquisition, the Advisor received an aggregate of approximately $ 1.1 The Company determined this acquisition was an asset acquisition and allocated the total purchase price, including closing and other acquisition related costs, to the assets acquired based on their relative fair value. Approximately $ 7.3 45.0 1.0 1.2 Disposition of the Flats at Fishers On November 1, 2023, the Company completed the disposition of the Flats at a contractual sales price of $ 71.0 27.7 27.1 8.9 33.8 19.4 41.1 The disposition of the Flats at Fishers 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 Flats at Fishers are reflected in the Company’s results from continuing operations for all periods presented through its date of disposition. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Notes Receivable | 7. Notes Receivable On February 28, 2019, the Company, as the lender, and an unrelated third party (the “Loan Borrower”), as the borrower, entered into a loan promissory note (the “Mezzanine Loan”), pursuant to which the Company funded an aggregate $ 12.0 The Mezzanine Loan bore interest at a rate of LIBOR plus 11.0% 13.493% March 1, 2023 8% The Loan Borrower developed and constructed Park House, which contains 10 residential units and ground floor retail space. The Park House was substantially completed in July 2022, and during the year ended December 31, 2022, the Loan Borrower repaid $ 10.6 3.8 2.4 During the first quarter of 2023, the Company and Loan Borrower refinanced the Mezzanine Loan resulting in a $ 5.0 SOFR plus 5.50% 10.0% 10.85% 4.9 5.0 0.1 During February 2024, the Loan Borrower and the Company agreed to exercise the six-month extension option and extend the maturity of the Senior Mortgage Loan to September 1, 2024. Additionally, the Loan Borrower made a payment of $ 2.1 2.0 0.1 3.0 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Notes Payable | 8. Notes Payable The following table sets forth information as of the date indicated for the Company’s notes payable: Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53% 4.53% January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52% 3.52% January 1, 2026 5,379 5,618 5,732 Parkside Apartments 4.45% 4.45% September 1, 2025 15,782 16,298 16,644 Axis at Westmont 4.39% 4.39% February 1, 2026 34,343 35,836 36,483 Valley Ranch Apartments 4.16% 4.16% March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% Repaid in full - - 28,072 Flats at Fishers Supplemental 3.85% Repaid in full - - 8,987 Autumn Breeze Apartments 3.39% 3.39% April 1, 2030 25,518 29,544 29,920 BayVue Apartments SOFR + 3.11% (floor 3.21% 8.23% July 9, 2024 47,173 47,173 46,443 Citadel Apartments Senior SOFR + 1.61% (floor 1.71% 6.77% October 11, 2024 39,200 39,200 39,200 Citadel Apartments Junior SOFR + 8.86% (floor 8.96% 14.08% October 11, 2024 9,800 9,800 9,800 Camellia Apartments 6.05% 6.05% January 1, 2030 33,911 33,911 - Total notes payable 5.02% $ 283,520 289,794 293,695 Less: Deferred financing costs (2,765 ) (3,406 ) Total notes payable, net $ 287,029 $ 290,289 Camellia Apartments Mortgage On December 19, 2023, the Company entered into a $ 33.9 6.05% Citadel Apartments Mortgages On October 6, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 39.2 9.8 LIBOR plus 1.50%, with a floor of 1.60%, to SOFR plus 1.61%, with a floor of 1.71%, LIBOR plus 8.75%, with a floor of 8.85% The Citadel Apartments Mortgages, which initially mature on October 11, 2024, have two one-year extension options, subject to the satisfaction of certain conditions, and are both collateralized by the Citadel Apartments. However, the Citadel Apartments Junior Mortgage is subordinate to the Citadel Apartments Senior Mortgage. Although the Citadel Apartments Mortgages are currently scheduled to mature on October 11, 2024, the Company currently intends to exercise the first of its two one-year extension options to extend the maturity of the Citadel Apartments Mortgages to October 11, 2025. Pursuant to the terms of the Citadel Apartments Mortgages, the Company is required to enter into one or more interest rate cap contracts in the aggregate notional amount of $ 49.0 49.0 0.9 49.0 BayVue Apartments Mortgage On July 7, 2021, the Company entered into a non-recourse mortgage loan facility for up to $ 52.2 3.00%, with a floor of 3.10%, to SOFR plus 3.11% 3.21% 47.2 5.0 Pursuant to the terms of the BayVue Apartments Mortgage, the Company is required to enter into one or more interest rate cap contracts in the aggregate notional amount of $52.2 million for as long as the BayVue Apartments Mortgage remains outstanding. In connection with the BayVue Apartments Mortgage, the Company previously entered into an interest rate cap contract with a notional amount of $ 52.2 52.2 July 15, 2024 SOFR at 2.50% Autumn Breeze Apartments Mortgage On March 31, 2020, the Company entered into a ten-year $ 29.9 April 1, 2030 0.1 Flats as Fishers Mortgage and Flats at Fishers Supplemental Mortgage On June 13, 2019, the Company entered into the Flats at Fishers Mortgage, a $ 28.8 3.78% On August 16, 2021, the Company entered into the Flats at Fisher Supplemental Mortgage, a $ 9.2 3.85% On November 1, 2023, in connection with the disposition of the Flats at Fishers (see Note 6 for additional information), the Flats at Fishers Mortgage of $ 27.7 27.1 8.9 Valley Ranch Apartments Mortgage On February 14, 2019, the Company entered into a seven-year $ 43.4 March 1, 2026 4.16% Arbor Harbors Town Mortgage On December 28, 2018, the Company entered into a seven-year $ 29.0 January 1, 2026 4.53% On September 30, 2021, the Company entered into a non-recourse subordinated mortgage loan for $ 5.9 January 1, 2026 26 3.52% Axis at Westmont Mortgage On November 27, 2018, the Company assumed an existing non-recourse mortgage loan (the “Axis at Westmont Mortgage”) in the amount of $ 37.6 4.39% 0.2 February 1, 2026 Parkside Apartments Mortgage On June 1, 2018, the Company entered into a seven-year $ 18.0 June 1, 2025 4.45% The following table provides information with respect to the contractual maturities and scheduled principal repayments of the Company’s indebtedness as of December 31, 2023. Schedule of contractual obligations for principal payments 2024 2025 2026 2027 2028 Thereafter Total Principal maturities $ 97,901 $ 17,372 $ 112,877 $ 654 $ 676 $ 60,314 $ 289,794 Less: deferred financing costs (2,765 ) Total notes payable, net $ 287,029 As of December 31, 2023, the Company was in compliance with all of its financial covenants. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | 10. Stockholders’ Equity Capitalization As of December 31, 2023, the Company’s authorized capital was 350,000,000 50,000,000 1,000 .0001 As of December 31, 2023, the Company had issued 19.6 2.2 1,000 The shares of convertible stock will be converted into shares of common stock automatically if (1) the Company has made total distributions on then outstanding shares of its common stock equal to the issue price of those shares plus a 10% cumulative, non-compounded, annual return on the issue price of those outstanding shares, or (2) the Company lists its common stock for trading on a national securities exchange if the sum of the prior distributions on then outstanding shares of the common stock plus the aggregate market value of the common stock (based on the 30-day average closing price) meets the same 10% performance threshold. In general, the convertible stock will convert into shares of common stock with a value equal to the lesser of (A) 20% of the excess of the Company’s enterprise value plus the aggregate value of distributions paid to date on then outstanding shares of its common stock over the aggregate issue price of those outstanding shares plus a 10% cumulative, non-compounded, annual return on the issue price of those outstanding shares, or (B) 15% of the excess of the Company’s enterprise value plus the aggregate value of distributions paid to date on then outstanding shares of the common stock over the aggregate issue price of those outstanding shares plus a 6% cumulative, non-compounded, annual return on the issue price of those outstanding shares. At the date of issuance of the shares of convertible stock, management determined the fair value under GAAP was less than the nominal value paid for the shares; therefore, the difference is not material. The timing of the conversion of any or all of the convertible stock may be deferred by Board of Directors if it determines that full conversion may jeopardize its qualification as a REIT. Any such deferral will in no event otherwise alter the terms of the convertible stock, and such stock shall be converted at the earliest date after the Board of Directors determines that such conversion will not jeopardize its qualification as a REIT. The Board of Directors is authorized to amend the Company’s charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has the authority to issue. SRP The Board of Directors has adopted a share redemption program (the “SRP”) that permits stockholders to sell their shares back to the Company, subject to the significant conditions and limitations of the program. The of Directors can amend the provisions of the SRP at any time without the approval of its stockholders. On November 10, 2022, the Board of Directors adopted a Seventh Amended and Restated Share Redemption Program (the “Amended SRP”), which became effective on January 1, 2023. Under the terms of the Amended SRP, any stockholder may request redemption of their shares, subject to the significant conditions and limitations of the program. Additionally, under the terms of the Amended SRP, the Company will redeem shares at 85% of the most recently published NAV per Share in effect as of the date the request for redemption is approved. Pursuant to the terms of the Amended SRP, any shares approved for redemption are redeemed on a periodic basis as determined by the Board of Directors, generally expected to be at the end of each quarterly period. However, the Company will not redeem, during any calendar year, more than 5% of the number of shares outstanding on last day of the previous calendar year (the “5% Limitation”). The cash available for redemption of shares will be set by the Board of Directors not less often than annually (the “Funding Limitation” and, together with the 5% Redemption requests will be honored pro rata among all requests received subject to the Redemption Limitations and will not be honored on a first come, first served basis. The Board of Directors reserves the right in its sole discretion at any time and from time to time, subject to any notice requirements described in our SRP, to (1) reject any request for redemption of shares, (2) change the purchase price for redemption of shares, (3) limit the funds to be used for redemption of shares under the SRP or otherwise change the Redemption Limitations, or (4) amend, suspend (in whole or in part) or terminate the SRP. During the year ended December 31, 2023, the Company redeemed 489,912 12.55 83,876 12.91 Distributions The Company did not declare or pay any distributions to its stockholders during the year ended December 31, 2022. On September 29, 2023 0.11 September 30, 2023 2.2 October 16, 2023 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 11. Related Party Transactions Advisor and Affiliates The Company’s business is externally managed by the Advisor, an affiliate of Lightstone which provides advisory services to the Company and the Company has no employees. Lightstone is majority owned by David Lichtenstein, a member of the Board of Directors. Pursuant to the terms of an advisory agreement and subject to the oversight of the 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. The Company has agreements with the Advisor and its affiliates to pay certain fees and reimburse certain expenses in connection with services performed and costs incurred by these entities and other related parties. The Company is dependent on the Advisor and its affiliates for performing a full range of services that are essential to it, including asset management, property management, property management oversight (for those of its properties which are managed by an unrelated third party property manager) and acquisition, disposition and financing activities, and other general administrative responsibilities; such as tax, accounting, legal, IT and investor relations services. If the Advisor and its affiliates are unable to provide these services to it, the Company would be required to provide the services itself or obtain the services from other parties. The advisory agreement has a one-year term and is renewable annually upon the mutual consent of the Advisor and the Company’s independent directors. The following discussion describes the fees and expenses payable to the Advisor and affiliates under various agreements. Fees Amount Acquisition - The Company pays the Advisor acquisition and advisory fees of 1.5% In addition, the Company pays acquisition and advisory fees of 1.5% The Company pays the Advisor an acquisition expense reimbursement in the amount of (i) 0.25% 0.25% 0.25% The Company pays third parties, or reimburses the 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. The Advisor and its affiliates are also responsible for paying all of the investment-related expenses that the Company pays or the Advisor or its affiliates incur that are due to third parties or related to the additional services provided by the Advisor as described above with respect to investments the Company does not make, other than certain non-refundable payments made in connection with any acquisition. Debt Financing - The Company pays the Advisor a debt financing fee of 1.0% Property Management - The Company pays its property manager, which may be affiliate of the Advisor or unrelated third party property managers, fees for the management, leasing, and construction supervision of the Company’s properties which is 4.0% 0.5% Construction Management - The Company pays its Advisor or property manager a construction management fee in an amount not to exceed 5% Asset Management - The Company pays the Advisor a monthly asset management fee of one-twelfth of 0.7% Administrative Services Reimbursement - The Advisor is responsible for paying all of the expenses it incurs associated with persons employed by the Advisor to the extent that they provide services to the Company for which the Advisor receives an acquisition, asset management, or debt financing fee, including wages and benefits of the applicable personnel. Instead of reimbursing the Advisor for specific expenses paid or incurred in connection with providing services to the Company, the Company pays the Advisor an administrative services fee, which is an allocation of a portion of the actual costs that the Advisor paid or incurred providing these services to the Company (the “Administrative Services Reimbursement”). The Administrative Services Reimbursement is intended to reimburse the Advisor for all its costs associated with providing services to the Company. The Administrative Services Reimbursement is limited to the actual costs incurred or a 12-month period cap (the “Cap”) as set forth in the agreement. For both the years ended December 31, 2023 and 2022, the Administrative Services Reimbursement was limited to the Cap, which was $ 1.5 1.4 The Administrative Services Reimbursement is payable in quarterly installments within 45 days of the end of each calendar quarter. In addition, under the various advisory management agreements, the Company is to reimburse the Advisor for certain due diligence services provided in connection with asset acquisitions and dispositions and debt financings separately from the Administrative Services Reimbursement. Notwithstanding the fees and cost reimbursements payable to the Advisor pursuant to the Company’s advisory management agreement, under the Company’s charter the Company may not reimburse the Advisor for any amount by which the Company’s operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of: (i) 2% 25% The following table represents the fees incurred associated with the payments to the Advisor for the periods indicated: Schedule of related party transactions For the 2023 2022 Acquisition fees and acquisition expense reimbursement (1) $ 953 $ - Debt financing fees (2) 170 - Property management fees (property operating expenses) 537 514 Administrative services reimbursement (general and administrative costs) 1,535 1,445 Asset management fees (general and administrative costs) 3,584 3,489 Total $ 6,779 $ 5,448 (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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant assumptions and estimates relate to the valuation of real estate including impairment and depreciable lives. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Company’s consolidated financial statements include the Company’s accounts and the accounts of other subsidiaries over which it has control. All inter-company transactions, balances, and profits have been eliminated in consolidation. |
Accounting for Acquisitions of Investment Property | Accounting for Acquisitions of Investment Property The cost of the real estate assets acquired in an asset acquisition is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their relative fair values. Fees incurred related to asset acquisitions are capitalized as part of the cost of the investment. Upon the acquisition of real estate property that meets the definition of a business, the Company recognizes the assets acquired, the liabilities assumed and any noncontrolling interest as of the acquisition date, measured at their fair values. The acquisition date is the date on which the Company obtains control of the real estate property. The assets acquired and liabilities assumed may consist of land, inclusive of associated rights, buildings, assumed debt, identified intangible assets and liabilities, and asset retirement obligations. Identified intangible assets generally consist of above-market leases, in-place leases, in-place tenant improvements, in-place leasing commissions, and tenant relationships. Identified intangible liabilities generally consist of below-market leases. Goodwill is recognized as of the acquisition date and measured as the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree over the fair value of the identifiable net assets acquired. Likewise, a bargain purchase gain is recognized in current earnings when the aggregate fair value of the consideration transferred and any noncontrolling interests in the acquiree is less than the fair value of the identifiable net assets acquired. Acquisition-related costs are expensed in the period incurred. Initial valuations are subject to change until the Company’s information is finalized, which is no later than 12 months from the acquisition date. The fair value of the tangible assets acquired, consisting of land and buildings, is determined by valuing the property as if it were vacant, and the “as-if-vacant” value is then allocated to land and buildings. Land values are derived from appraisals, and building values are calculated as replacement cost less depreciation or management’s estimates of the fair value of these assets using discounted cash flow analyses or similar methods believed to be used by market participants. The value of buildings are generally depreciated over estimated useful lives ranging up to 39 years using the straight-line method. The Company determines the fair value of assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that management believes the Company could obtain at the date of the debt assumption. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan using the effective interest method. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers investments in highly liquid money market funds or investments with original maturities of three months or less to be cash equivalents. |
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 the Company’s consolidated properties. Capital reserves are typically utilized for non-operating expenses such as tenant improvements, leasing commissions, and major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. Restricted cash may also include certain funds temporarily placed in escrow with qualified intermediaries to facilitate potential like-kind exchange transactions in accordance with Section 1031 of the Internal Revenue Code, as amended (the “Code”). The following is a summary of the Company’s cash, cash equivalents, and restricted cash total as presented in its consolidated statements of cash flows: Schedule of cash, cash equivalents and restricted cash December 31, 2023 2022 Cash and cash equivalents $ 47,125 $ 59,625 Restricted cash 19,421 5,126 Total cash, cash equivalents and restricted cash $ 66,546 $ 64,751 |
Marketable Securities | Marketable Securities Marketable securities consist of debt securities that are designated as available-for-sale. The Company may be exposed to credit losses through its available-for-sale debt securities. Unrealized losses or impairments resulting from the amortized cost basis of any available-for-sale debt security exceeding its fair value are evaluated for identification of credit and non-credit related factors. Any difference between the fair value of the debt security and the amortized cost basis not attributable to credit related factors are reported in other comprehensive income. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. When evaluating the investments for impairment at each reporting period, the Company reviews factors such as the extent of the unrealized loss, current and future economic market conditions and the economic and financial condition of the issuer and any changes thereto. Realized gains or losses resulting from the sale of these securities are determined based on the specific identification of the securities sold. |
Investment Impairment | Investment Impairment For all of the Company’s real estate and real estate related investments, the Company monitors events and changes in circumstances indicating that the carrying amounts of the real estate assets may not be recoverable. We evaluate the recoverability of our investments in real estate assets at the lowest identifiable level, which is primarily at the individual property level. Examples of the types of events and circumstances that would cause management to assess the Company’s assets for potential impairment include, but are not limited to: a significant decrease in the market price of an asset; a significant adverse change in the manner in which the asset is being used; major vacancies and the resulting loss of revenues; natural disasters; a change in the projected holding period; legitimate purchase offers; and changes in the global and local markets or economic conditions. To the extent that the Company’s portfolio is concentrated in limited geographic locations, downturns specifically related to such regions may result in tenants defaulting on their lease obligations at those properties within a short time period, which may result in asset impairments. When such events or changes in circumstances are present, the Company assesses potential impairment by comparing estimated future undiscounted operating cash flows expected to be generated over the life of the asset and from its eventual disposition to the carrying amount of the asset. These projected cash flows are prepared internally by the Advisor and reflect in-place and projected leasing activity, market revenue and expense growth rates, market capitalization rates, discount rates, and changes in economic and other relevant conditions. The Company’s management reviews these projected cash flows to assure that the valuation is prepared using reasonable inputs and assumptions that are consistent with market data or with assumptions that would be used by a third-party market participant and assume the highest and best use of the investment. The Company considers trends, strategic decisions regarding future development plans, and other factors in its assessment of whether impairment conditions exist. In the event that the carrying amount exceeds the estimated future undiscounted operating cash flows, the Company recognizes an impairment loss to adjust the carrying amount of the asset to estimated fair value. While the Company believes its estimates of future cash flows are reasonable, different assumptions regarding factors such as market rents, economic conditions, and occupancy rates could significantly affect these estimates. In evaluating the Company’s investments for impairment, management may use appraisals and make estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during the Company’s ownership, and the projected sales price of each of the properties. A future change in these estimates and assumptions could result in understating or overstating the carrying value of the Company’s investments, which could be material to its financial statements. In addition, the Company may incur impairment charges on assets classified as held for sale in the future if the carrying amount of the asset upon classification as held for sale exceeds the estimated fair value, less costs to sell. |
Revenue Recognition | Revenue Recognition The Company recognizes rental income generated from leases of its operating properties on a straight-line basis over the terms of the respective leases, including the effect of rent holidays, if any. Leases associated with the Company’s multifamily residential properties are generally short-term in nature, and thus have no straight-line rent. |
Interest Rate Cap Contracts | Interest Rate Cap Contracts The Company utilizes derivative financial instruments to reduce interest rate risk. The Company does not hold or issue derivative financial instruments for trading purposes. The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments are recorded in the consolidated statements of operations. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are recorded at cost and consist of loan fees and other costs incurred in issuing debt. Amortization of deferred financing costs is computed using a method that approximates the effective interest method over the term of the related debt and is included in interest expense in the consolidated statements of operations. Unamortized deferred financing costs are included as a direct deduction from the related debt in the consolidated balance sheets. |
Tax Status and Income Taxes | Tax Status and Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2008. As a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its 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. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. Additionally, even if the Company continues to qualify as a REIT, it may still be subject to some U.S. federal, state and local taxes on its income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. To maintain its qualification as a REIT, the Company may engage in certain activities through a wholly-owned taxable REIT subsidiary. As such, the Company may be subject to U.S. federal and state income and franchise taxes from these activities. The Company’s income tax expense and benefits are included in other income, net on its consolidated statements of operations. During the year ended December 31, 2023, the Company recorded income tax expense of $ 0.8 0.9 0.8 As of December 31, 2023 and 2022, the Company had no |
Concentration of Credit Risk | Concentration of Credit Risk At December 31, 2023 and 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. |
Earnings per Share | Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, net income per share is calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the applicable period. |
Current Environment | Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of cash, cash equivalents and restricted cash | Schedule of cash, cash equivalents and restricted cash December 31, 2023 2022 Cash and cash equivalents $ 47,125 $ 59,625 Restricted cash 19,421 5,126 Total cash, cash equivalents and restricted cash $ 66,546 $ 64,751 |
Marketable Securities and Fai_2
Marketable Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Marketable Securities And Fair Value Measurements | |
Schedule of available-for-sale securities reconciliation | Schedule of available-for-sale securities reconciliation As of December 31, 2023 Adjusted Gross Gross Fair Value Debt securities: Corporate and Government Bonds $ 3,783 $ 37 $ (145 ) $ 3,675 As of December 31, 2022 Adjusted Gross Gross Fair Value Debt securities: Corporate and Government Bonds $ 3,675 $ - $ (220 ) $ 3,455 |
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates | Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates As of Due in 1 year $ 741 Due in 1 year through 5 years 2,934 Due in 5 years through 10 years - Due after 10 years - Total $ 3,675 |
Financial Instruments not Rep_2
Financial Instruments not Reported at Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Notes payable and the related estimated fair value | Schedule of Notes payable and the related estimated fair value As of As of Carrying Estimated Carrying Estimated Notes payable $ 289,794 $ 280,833 $ 293,695 $ 288,222 |
Real Estate Properties (Tables)
Real Estate Properties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of assets and liabilities held for sale | Schedule of assets and liabilities held for sale Property Name Description Location Date Acquired Arbors Harbor Town Multifamily Memphis, Tennessee December 20, 2011 Parkside Apartments Multifamily Sugar Land, Texas August 8, 2013 Axis at Westmont Multifamily Westmont, Illinois November 27, 2018 Valley Ranch Apartments Multifamily Ann Arbor, Michigan February 14, 2019 Autumn Breeze Apartments Multifamily Noblesville, Indiana March 17, 2020 BayVue Apartments Multifamily Tampa, Florida July 7, 2021 Citadel Apartments Multifamily Houston, Texas October 6, 2021 Camellia Apartments Multifamily St. Augustine, Florida December 19, 2023 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of information on notes payable | Schedule of information on notes payable Property Interest Rate Weighted Average Maturity Date Amount Due As of As of Arbors Harbor Town 4.53% 4.53% January 1, 2026 $ 29,000 $ 29,000 $ 29,000 Arbors Harbor Town Supplemental 3.52% 3.52% January 1, 2026 5,379 5,618 5,732 Parkside Apartments 4.45% 4.45% September 1, 2025 15,782 16,298 16,644 Axis at Westmont 4.39% 4.39% February 1, 2026 34,343 35,836 36,483 Valley Ranch Apartments 4.16% 4.16% March 1, 2026 43,414 43,414 43,414 Flats at Fishers 3.78% Repaid in full - - 28,072 Flats at Fishers Supplemental 3.85% Repaid in full - - 8,987 Autumn Breeze Apartments 3.39% 3.39% April 1, 2030 25,518 29,544 29,920 BayVue Apartments SOFR + 3.11% (floor 3.21% 8.23% July 9, 2024 47,173 47,173 46,443 Citadel Apartments Senior SOFR + 1.61% (floor 1.71% 6.77% October 11, 2024 39,200 39,200 39,200 Citadel Apartments Junior SOFR + 8.86% (floor 8.96% 14.08% October 11, 2024 9,800 9,800 9,800 Camellia Apartments 6.05% 6.05% January 1, 2030 33,911 33,911 - Total notes payable 5.02% $ 283,520 289,794 293,695 Less: Deferred financing costs (2,765 ) (3,406 ) Total notes payable, net $ 287,029 $ 290,289 |
Schedule of contractual obligations for principal payments | Schedule of contractual obligations for principal payments 2024 2025 2026 2027 2028 Thereafter Total Principal maturities $ 97,901 $ 17,372 $ 112,877 $ 654 $ 676 $ 60,314 $ 289,794 Less: deferred financing costs (2,765 ) Total notes payable, net $ 287,029 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | Schedule of related party transactions For the 2023 2022 Acquisition fees and acquisition expense reimbursement (1) $ 953 $ - Debt financing fees (2) 170 - Property management fees (property operating expenses) 537 514 Administrative services reimbursement (general and administrative costs) 1,535 1,445 Asset management fees (general and administrative costs) 3,584 3,489 Total $ 6,779 $ 5,448 (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 and Organization (Deta
Business and Organization (Details Narrative) - shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Feb. 10, 2007 | Jan. 19, 2007 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common stock, shares issued (in shares) | 19,600 | 20,000 | ||
Convertible stock issued (in shares) | 1,000 | 1,000 | ||
Common stock, shares outstanding (in shares) | 19,600 | 20,000 | ||
Initial Capitalization [Member] | Affiliated Entity [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Common stock, shares issued (in shares) | 22,500 | |||
Convertible stock issued (in shares) | 1,000 | |||
Initial Offering [Member] | Lightstone Group [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Convertible stock issued (in shares) | 1,000 | |||
Behringer Harvard Opportunity Op II Lp [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Percentage of ownership interest by BHO II, Inc | 0.10% | |||
Marylands [Member] | ||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||
Percentage of remaining ownership interest held by BHO Business Trust II | 99.90% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 47,125 | $ 59,625 | |
Restricted cash | 19,421 | 5,126 | |
Total cash, cash equivalents and restricted cash | $ 66,546 | $ 64,751 | $ 45,239 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Provision for income tax | $ 800 | $ 900 |
Income tax benefit foreign income tax | 800 | |
Uncertain income tax positions | $ 0 | $ 0 |
Marketable Securities and Fai_3
Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Fair Value | $ 3,675 | $ 3,455 |
Corporate And Government Bonds [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Adjusted Cost | 3,783 | 3,675 |
Gross Unrealized Gains | 37 | |
Gross Unrealized Losses | (145) | (220) |
Fair Value | $ 3,675 | $ 3,455 |
Marketable Securities and Fai_4
Marketable Securities and Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Marketable Securities And Fair Value Measurements | ||
Due in 1 year | $ 741 | |
Due in 1 year through 5 years | 2,934 | |
Due in 5 years through 10 years | ||
Due after 10 years | ||
Total | $ 3,675 | $ 3,455 |
Marketable Securities and Fai_5
Marketable Securities and Fair Value Measurements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Offsetting Assets [Line Items] | ||
Aggregate fair value interest rate | $ 1,300 | $ 1,800 |
Interest expense, net | 2,900 | $ 400 |
Positive mark to market adjustment | 1,800 | |
Negative mark to market adjustment | 2,900 | |
First Interest Rate Contract [Member] | ||
Offsetting Assets [Line Items] | ||
Notional amount | $ 52,200 | |
Debt instrument, maturity date | Jul. 15, 2024 | |
Debt instrument, description of variable rate basis | SOFR at 2.50% | |
Second Interest Rate Contract [Member] | ||
Offsetting Assets [Line Items] | ||
Notional amount | $ 49,000 | |
Debt instrument, maturity date | Apr. 11, 2024 | |
Debt instrument, description of variable rate basis | SOFR at 2.00% |
Financial Instruments not Rep_3
Financial Instruments not Reported at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value Disclosures [Abstract] | ||
Notes payable, Carrying Amount | $ 289,794 | $ 293,695 |
Notes payable, Estimated Fair Value | $ 280,833 | $ 288,222 |
Real Estate Properties (Details
Real Estate Properties (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Arbors Harbor Town [Member] | |
Description | Multifamily |
Location | Memphis, Tennessee |
Date Acquired | Dec. 20, 2011 |
Parkside Apartments Parkside [Member] | |
Description | Multifamily |
Location | Sugar Land, Texas |
Date Acquired | Aug. 08, 2013 |
Axis At Westmont [Member] | |
Description | Multifamily |
Location | Westmont, Illinois |
Date Acquired | Nov. 27, 2018 |
Valley Ranch Apartments [Member] | |
Description | Multifamily |
Location | Ann Arbor, Michigan |
Date Acquired | Feb. 14, 2019 |
Autumn Breeze Apartments [Member] | |
Description | Multifamily |
Location | Noblesville, Indiana |
Date Acquired | Mar. 17, 2020 |
Bay Vue Apartments [Member] | |
Description | Multifamily |
Location | Tampa, Florida |
Date Acquired | Jul. 07, 2021 |
Citadel Apartments [Member] | |
Description | Multifamily |
Location | Houston, Texas |
Date Acquired | Oct. 06, 2021 |
Camellia Apartments [Member] | |
Description | Multifamily |
Location | St. Augustine, Florida |
Date Acquired | Dec. 19, 2023 |
Real Estate Properties (Detai_2
Real Estate Properties (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Nov. 01, 2023 | Dec. 19, 2023 | Dec. 31, 2023 | |
Real Estate Properties [Line Items] | |||
Gain on sale of investment property | $ 41,100 | ||
Camellia Apartments [Member] | |||
Real Estate Properties [Line Items] | |||
Business Combination, intangibles assets | $ 1,200 | ||
Camellia Apartments [Member] | Land and Land Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Business Combination, property, plant and equipment | 7,300 | ||
Camellia Apartments [Member] | Building and Building Improvements [Member] | |||
Real Estate Properties [Line Items] | |||
Business Combination, property, plant and equipment | 45,000 | ||
Camellia Apartments [Member] | Furniture and Fixtures [Member] | |||
Real Estate Properties [Line Items] | |||
Business Combination, property, plant and equipment | 1,000 | ||
Camellia Apartments [Member] | |||
Real Estate Properties [Line Items] | |||
Business Combination, Consideration Transferred | 53,300 | ||
Proceeds from mortgage | 33,900 | ||
Escrow amount | 19,400 | ||
Acquisition fees | $ 1,100 | ||
Flats At Fishers [Member] | |||
Real Estate Properties [Line Items] | |||
Acquisition fees | $ 19,400 | ||
Contractual sales price | 71,000 | ||
Non-recourse mortgage loan | 27,700 | ||
Defeased cost | 27,100 | ||
Repaid mortgage loan | 8,900 | ||
Proceeds from disposition of flats at fishers | $ 33,800 |
Notes Receivable (Details Narra
Notes Receivable (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2019 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | |||||
Notes payable, net | $ 287,029 | $ 290,289 | |||
Mezzanine Loan Promissory Note [Member] | |||||
Short-Term Debt [Line Items] | |||||
Debt instrument, face amount | $ 12,000 | $ 5,000 | |||
Debt instrument, description of variable rate basis | LIBOR plus 11.0% | SOFR plus 5.50% | |||
Debt instrument, basis spread on variable rate | 13.493% | 10% | 10.85% | ||
Debt instrument, maturity date | Mar. 01, 2023 | ||||
Utilization of interest reserve percentage on interest due | 8% | ||||
Loan repaid | $ 10,600 | ||||
Note receivable | 3,800 | ||||
Amount of additional interest included in the principal balance | 2,400 | ||||
Carrying amount | 4,900 | ||||
Notes payable, net | 5,000 | ||||
Interest reserves | $ 100 | ||||
Mezzanine Loan Promissory Note [Member] | Subsequent Event [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loan repaid | $ 2,100 | ||||
Notes payable, net | 3,000 | ||||
Interest reserves | 100 | ||||
Proceeds from sale of unit | $ 2,000 |
Notes Payable (Details)
Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Amount Due at Maturity | $ 287,029 | |
Deferred financing costs | $ (2,765) | |
Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Weighted Average Interest Rate | 5.02% | |
Amount Due at Maturity | $ 283,520 | |
Total notes payable | 289,794 | $ 293,695 |
Deferred financing costs | (2,765) | (3,406) |
Total notes payable, net | $ 287,029 | 290,289 |
Arbors Harbor Town Memphis [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.53% | |
Weighted Average Interest Rate | 4.53% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 29,000 | |
Total notes payable | $ 29,000 | 29,000 |
Arbors Harbor Town Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.52% | |
Weighted Average Interest Rate | 3.52% | |
Debt Instrument, Maturity Date | Jan. 01, 2026 | |
Amount Due at Maturity | $ 5,379 | |
Total notes payable | $ 5,618 | 5,732 |
Parkside Apartments Sugarland Texas [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.45% | |
Weighted Average Interest Rate | 4.45% | |
Debt Instrument, Maturity Date | Sep. 01, 2025 | |
Amount Due at Maturity | $ 15,782 | |
Total notes payable | $ 16,298 | 16,644 |
Axis At Westmont [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.39% | |
Weighted Average Interest Rate | 4.39% | |
Debt Instrument, Maturity Date | Feb. 01, 2026 | |
Amount Due at Maturity | $ 34,343 | |
Total notes payable | $ 35,836 | 36,483 |
Valley Ranch Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.16% | |
Weighted Average Interest Rate | 4.16% | |
Debt Instrument, Maturity Date | Mar. 01, 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 | 3.78% | |
Amount Due at Maturity | ||
Total notes payable | 28,072 | |
Flats At Fishers Supplemental [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.85% | |
Amount Due at Maturity | ||
Total notes payable | 8,987 | |
Autumn Breeze Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.39% | |
Weighted Average Interest Rate | 3.39% | |
Debt Instrument, Maturity Date | Apr. 01, 2030 | |
Amount Due at Maturity | $ 25,518 | |
Total notes payable | $ 29,544 | 29,920 |
Bay Vue Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.21% | |
Weighted Average Interest Rate | 8.23% | |
Debt Instrument, Maturity Date | Jul. 09, 2024 | |
Amount Due at Maturity | $ 47,173 | |
Total notes payable | $ 47,173 | 46,443 |
Citadel Apartments Senior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.71% | |
Weighted Average Interest Rate | 6.77% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 39,200 | |
Total notes payable | $ 39,200 | 39,200 |
Citadel Apartments Junior [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.96% | |
Weighted Average Interest Rate | 14.08% | |
Debt Instrument, Maturity Date | Oct. 11, 2024 | |
Amount Due at Maturity | $ 9,800 | |
Total notes payable | $ 9,800 | 9,800 |
Camellia Apartments [Member] | Notes Payable to Banks [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.05% | |
Weighted Average Interest Rate | 6.05% | |
Debt Instrument, Maturity Date | Jan. 01, 2030 | |
Amount Due at Maturity | $ 33,911 | |
Total notes payable | $ 33,911 |
Notes Payable (Details 1)
Notes Payable (Details 1) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 97,901 |
2025 | 17,372 |
2026 | 112,877 |
2027 | 654 |
2028 | 676 |
Thereafter | 60,314 |
Total principal maturities | 289,794 |
Less: deferred financing costs | (2,765) |
Total notes payable, net | $ 287,029 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | ||||||||||||||||
Oct. 06, 2021 | Jul. 07, 2021 | Jun. 13, 2019 | Jun. 01, 2018 | Dec. 19, 2023 | Jul. 17, 2023 | Sep. 30, 2021 | Aug. 16, 2021 | Mar. 31, 2020 | Feb. 14, 2019 | Dec. 28, 2018 | Nov. 27, 2018 | Dec. 31, 2023 | Nov. 01, 2023 | Oct. 11, 2023 | Sep. 11, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Note receivable | $ 4,898 | $ 3,771 | |||||||||||||||
Notional amount | $ 49,000 | ||||||||||||||||
Unrelated financial institution cost | $ 900 | ||||||||||||||||
Interest Rate Contract [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Debt instrument, description of variable rate basis | SOFR at 2.50% | ||||||||||||||||
Notional amount | $ 52,200 | ||||||||||||||||
Debt instrument, maturity date | Jul. 15, 2024 | ||||||||||||||||
Camellia Apartments [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Debt instrument, basis spread on variable rate | 6.05% | ||||||||||||||||
Citadel Apartments [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 39,200 | ||||||||||||||||
Note receivable | 49,000 | ||||||||||||||||
Notional amount | 49,000 | ||||||||||||||||
Citadel Apartments Mortgage [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 9,800 | ||||||||||||||||
Citadel Apartments Senior [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Debt instrument, description of variable rate basis | LIBOR plus 1.50%, with a floor of 1.60%, to SOFR plus 1.61%, with a floor of 1.71%, | ||||||||||||||||
Citadel Apartments Junior [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Debt instrument, description of variable rate basis | LIBOR plus 8.75%, with a floor of 8.85%, to SOFR plus 8.86%, with a floor of 8.96%. | ||||||||||||||||
Citadel Apartment [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Debt instrument, basis spread on variable rate | 8.85% | ||||||||||||||||
Bay Vue Apartments [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 52,200 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 3.21% | ||||||||||||||||
Debt instrument, description of variable rate basis | 3.00%, with a floor of 3.10%, to SOFR plus 3.11% | ||||||||||||||||
Note receivable | 47,200 | ||||||||||||||||
Notional amount | 52,200 | ||||||||||||||||
Mortgages | $ 5,000 | ||||||||||||||||
Autumn Breeze Apartments Loan [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 29,900 | ||||||||||||||||
Debt instrument, maturity date | Apr. 01, 2030 | ||||||||||||||||
Periodic payment, principal | $ 100 | ||||||||||||||||
Flats At Fishers Loan [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 28,800 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 3.78% | ||||||||||||||||
Non-recourse mortgage loan | $ 27,700 | ||||||||||||||||
Defeased cost | 27,100 | ||||||||||||||||
Flats At Fishers Supplemental [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 9,200 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 3.85% | ||||||||||||||||
Defeased cost | $ 8,900 | ||||||||||||||||
Valley Ranch Apartments [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 43,400 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 4.16% | ||||||||||||||||
Debt instrument, maturity date | Mar. 01, 2026 | ||||||||||||||||
Arbor Harbors Town [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 5,900 | $ 29,000 | |||||||||||||||
Debt instrument, basis spread on variable rate | 3.52% | 4.53% | |||||||||||||||
Debt instrument, maturity date | Jan. 01, 2026 | Jan. 01, 2026 | |||||||||||||||
Periodic payment, principal | $ 26 | ||||||||||||||||
Axis At Westmont [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 37,600 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 4.39% | ||||||||||||||||
Debt instrument, maturity date | Feb. 01, 2026 | ||||||||||||||||
Periodic payment, principal | $ 200 | ||||||||||||||||
Parkside [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 18,000 | ||||||||||||||||
Debt instrument, basis spread on variable rate | 4.45% | ||||||||||||||||
Debt instrument, maturity date | Jun. 01, 2025 | ||||||||||||||||
Camellia Apartments [Member] | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||
Principal amount | $ 33,900 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 29, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |
Convertible stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued (in shares) | 19,600,000 | 20,000,000 | |
Common stock shares | 2,200,000 | ||
Convertible stock, shares outstanding (in shares) | 1,000,000 | 1,000,000 | |
Share redemption program, annual limitation, percentage of weighted average shares outstanding | 5% | ||
Repurchase of common stock | 489,912,000 | 83,876,000 | |
Repurchase price per shares | $ 12.55 | $ 12.91 | |
Dividend declared date | Sep. 29, 2023 | ||
Dividend per share | $ 0.11 | ||
Dividends record date | Sep. 30, 2023 | ||
Distributions | $ 2,200 | ||
Dividends period date | Oct. 16, 2023 |
Related Party Transactions (Det
Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Related Party Transaction [Line Items] | |||
Acquisition fees and acquisition expense reimbursement | [1] | $ 953 | |
Debt financing fees | [2] | 170 | |
Property management fees (property operating expenses) | 537 | 514 | |
Administrative services reimbursement (general and administrative costs) | 1,535 | 1,445 | |
Asset management fees (general and administrative costs) | 3,584 | 3,489 | |
Total | $ 6,779 | $ 5,448 | |
[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. |
Related Party Transactions (D_2
Related Party Transactions (Details Narrative) - Behringer Harvard Opportunity II Advisors [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
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% | |
Percentage of debt financing fee payable under loan or line of credit | 1% | |
Property management fees as percentage of gross revenues of properties | 4% | |
Percentage of Property management fees or oversight fees incurred | 0.50% | |
Construction management fees, percentage | 5% | |
Monthly asset management fee | 0.70% | |
Administrative Services Costs Reimbursement Real Estate Management | $ 1,500 | $ 1,400 |
Minimum [Member] | ||
Related Party Transaction [Line Items] | ||
Operating expenses in excess of average invested assets | 2% | |
Operating expenses in excess of net income | 25% | |
Funds Advanced For Loan Investment [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of reimbursement of acquisition expense | 0.25% | |
Asset Purchases [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of reimbursement of acquisition expense | 0.25% | |
Development Constructionor Improvement of Assets [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of reimbursement of acquisition expense | 0.25% |