Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55773 | |
Entity Registrant Name | Lightstone Value Plus REIT IV, Inc. | |
Entity Central Index Key | 0001619312 | |
Entity Tax Identification Number | 47-1796830 | |
Entity Incorporation, State or Country Code | MD | |
Entity Address, Address Line One | 1985 Cedar Bridge Avenue | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lakewood | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08701 | |
City Area Code | (732) | |
Local Phone Number | 367-0129 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,300,000 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Investment property: | ||
Land and improvements | $ 35,845,388 | |
Building and improvements | 78,777,800 | |
Furniture and fixtures | 10,421,255 | |
Construction in progress | 834,703 | 114,614,484 |
Gross investment property | 125,879,146 | 114,614,484 |
Less accumulated depreciation | (1,998,478) | |
Net investment property | 123,880,668 | 114,614,484 |
Investment in unconsolidated affiliated real estate entity | 11,158,991 | 12,998,999 |
Cash and cash equivalents | 7,223,124 | 8,289,394 |
Restricted cash | 1,533,569 | 1,215,200 |
Accounts receivable and other assets | 2,776,792 | 1,154,466 |
Total Assets | 146,573,144 | 138,272,543 |
Liabilities and Stockholders’ Equity | ||
Mortgage payable, net | 81,751,993 | 63,631,383 |
Accounts payable, accrued expenses and other liabilities | 7,228,562 | 6,126,029 |
Subordinated advances - related party | 13,965,430 | 13,825,600 |
Total Liabilities | 102,945,985 | 83,583,012 |
Company’s Stockholders’ Equity: | ||
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding | ||
Common stock, $0.01 par value; 200.0 million shares authorized, 8.3 million and 8.4 million shares issued and outstanding, respectively | 83,064 | 83,984 |
Additional paid-in-capital | 69,607,889 | 70,480,206 |
Accumulated deficit | (36,522,966) | (27,881,782) |
Total Company’s Stockholders’ Equity | 33,167,987 | 42,682,408 |
Noncontrolling interests | 10,459,172 | 12,007,123 |
Total Stockholders’ Equity | 43,627,159 | 54,689,531 |
Total Liabilities and Stockholders’ Equity | $ 146,573,144 | $ 138,272,543 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 8,300,000 | 8,400,000 |
Common stock, shares outstanding | 8,300,000 | 8,400,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Hotel revenues: | $ 7,691,374 | $ 15,750,318 | ||
Expenses: | ||||
Hotel operating expenses | 6,235,920 | 13,480,955 | ||
Real estate taxes | 29,016 | 45,631 | ||
General and administrative costs | 465,661 | 155,326 | 1,144,256 | 458,393 |
Pre-opening costs | 72,157 | 318,335 | 2,300,501 | 737,618 |
Depreciation and amortization | 858,670 | 1,998,478 | ||
Total expenses | 7,661,424 | 473,661 | 18,969,821 | 1,196,011 |
Interest income | 41,589 | 34,081 | 175,966 | 34,081 |
Interest expense, net | (3,442,072) | (47,123) | (7,504,928) | (139,831) |
Loss from investment in unconsolidated affiliated real estate entity | (103,421) | (279,481) | (481,690) | (623,124) |
Other expense, net | (5,662) | |||
Net loss | (3,473,954) | (766,184) | (11,035,817) | (1,924,885) |
Less: net loss attributable to noncontrolling interests | 743,789 | 79,783 | 2,394,633 | 186,348 |
Net loss attributable to Company’s common shares | $ (2,730,165) | $ (686,401) | $ (8,641,184) | $ (1,738,537) |
Basic and diluted net loss per Company’s common share: | ||||
Net loss per Company's common shares, basic | $ (0.33) | $ (0.09) | $ (1.04) | $ (0.21) |
Net loss per Company's common shares, diluted | $ (0.33) | $ (0.09) | $ (1.04) | $ (0.21) |
Weighted average number of common shares outstanding, basic | 8,306,649 | 8,400,822 | 8,334,827 | 8,425,857 |
Weighted average number of common shares outstanding, diluted | 8,306,649 | 8,400,822 | 8,334,827 | 8,425,857 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 84,777 | $ 71,157,978 | $ (25,651,846) | $ 12,220,427 | $ 57,811,336 |
Beginning balance, Shares at Dec. 31, 2021 | 8,477,679 | ||||
Net loss | (1,738,537) | (186,348) | (1,924,885) | ||
Contributions of noncontrolling interests | 293,270 | 293,270 | |||
Distributions paid to noncontrolling interests | (128,452) | (128,452) | |||
Redemption and cancellation of common stock | $ (783) | (668,741) | (669,524) | ||
Redemption and cancellation of common stock, Shares | (78,270) | ||||
Ending balance, value at Sep. 30, 2022 | $ 83,994 | 70,489,237 | (27,390,383) | 12,198,897 | 55,381,745 |
Ending balance, Shares at Sep. 30, 2022 | 8,399,409 | ||||
Beginning balance, value at Jun. 30, 2022 | $ 84,044 | 70,532,087 | (26,703,982) | 12,407,132 | 56,319,281 |
Beginning balance, Shares at Jun. 30, 2022 | 8,404,409 | ||||
Net loss | (686,401) | (79,783) | (766,184) | ||
Distributions paid to noncontrolling interests | (128,452) | (128,452) | |||
Redemption and cancellation of common stock | $ (50) | (42,850) | (42,900) | ||
Redemption and cancellation of common stock, Shares | (5,000) | ||||
Ending balance, value at Sep. 30, 2022 | $ 83,994 | 70,489,237 | (27,390,383) | 12,198,897 | 55,381,745 |
Ending balance, Shares at Sep. 30, 2022 | 8,399,409 | ||||
Beginning balance, value at Dec. 31, 2022 | $ 83,984 | 70,480,206 | (27,881,782) | 12,007,123 | 54,689,531 |
Beginning balance, Shares at Dec. 31, 2022 | 8,398,355 | ||||
Net loss | (8,641,184) | (2,394,633) | (11,035,817) | ||
Contributions of noncontrolling interests | 846,682 | 846,682 | |||
Redemption and cancellation of common stock | $ (920) | (872,317) | (873,237) | ||
Redemption and cancellation of common stock, Shares | (91,999) | ||||
Ending balance, value at Sep. 30, 2023 | $ 83,064 | 69,607,889 | (36,522,966) | 10,459,172 | 43,627,159 |
Ending balance, Shares at Sep. 30, 2023 | 8,306,356 | ||||
Beginning balance, value at Jun. 30, 2023 | $ 83,075 | 69,618,679 | (33,792,801) | 10,912,632 | 46,821,585 |
Beginning balance, Shares at Jun. 30, 2023 | 8,307,436 | ||||
Net loss | (2,730,165) | (743,789) | (3,473,954) | ||
Contributions of noncontrolling interests | 290,329 | 290,329 | |||
Redemption and cancellation of common stock | $ (11) | (10,790) | (10,801) | ||
Redemption and cancellation of common stock, Shares | (1,080) | ||||
Ending balance, value at Sep. 30, 2023 | $ 83,064 | $ 69,607,889 | $ (36,522,966) | $ 10,459,172 | $ 43,627,159 |
Ending balance, Shares at Sep. 30, 2023 | 8,306,356 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (11,035,817) | $ (1,924,885) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss from investment in unconsolidated affiliated real estate entity | 481,690 | 623,124 |
Depreciation and amortization | 1,998,478 | |
Amortization of deferred financing costs | 1,011,879 | |
Changes in assets and liabilities: | ||
Increase in other assets | (1,626,287) | (318,154) |
Increase in accounts payable, accrued expenses and other liabilities | 5,109,800 | 1,038,015 |
Increase in accrued interest on subordinated advances - related party | 139,831 | 139,831 |
Cash used in operating activities | (3,920,426) | (442,069) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of investment property | (11,209,218) | (32,434,075) |
Distributions from unconcolidated affiliated real estate entities | 1,733,316 | |
Investment in unconsolidated affiliated real estate entity | (374,999) | (483,987) |
Cash used in investing activities | (9,850,901) | (32,918,062) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from mortgage financing | 13,049,981 | 33,657,848 |
Distributions paid to noncontrolling interests | (128,452) | |
Contributions of noncontrolling interests | 846,682 | 293,270 |
Redemption and cancellation of common stock | (873,237) | (669,524) |
Cash provided by financing activities | 13,023,426 | 33,153,142 |
Change in cash, cash equivalents and restricted cash | (747,901) | (206,989) |
Cash, cash equivalents and restricted cash, beginning of year | 9,504,594 | 12,197,119 |
Cash, cash equivalents and restricted cash, end of period | 8,756,693 | 11,990,130 |
Supplemental disclosure of cash flow information: | ||
Capital expenditures for investment property in accounts payable, accrued expenses and other liabilities | 327,629 | 4,998,283 |
Unpaid interest accrued and capitalized as mortgage payable and investment property | 3,732,648 | 785,750 |
Amortization of deferred financing costs included in investment property | 326,103 | 1,337,981 |
The following is a summary of the Company’s cash, cash equivalents and restricted cash total as presented in our statements of cash flows for the periods presented: | ||
Cash and cash equivalents | 7,223,124 | 10,992,481 |
Restricted cash | 1,533,569 | 997,649 |
Total cash, cash equivalents and restricted cash | $ 8,756,693 | $ 11,990,130 |
Business and Structure
Business and Structure | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Structure | 1. Business and Structure Lightstone Value Plus REIT IV, Inc. (“Lightstone REIT IV’’), is a Maryland corporation, formed on September 9, 2014 Lightstone REIT IV, together with its subsidiaries is collectively referred to as the ‘‘Company’’ and the use of ‘‘we,’’ ‘‘our,’’ ‘‘us’’ or similar pronouns refers to Lightstone REIT IV or the Company as required by the context in which any such pronoun is used. The Company has and may continue to seek opportunities to invest in real estate and real estate-related investments. The Company’s real estate investments may include operating properties and development projects and its real estate-related investment may include mezzanine loans, mortgage loans, bridge loans and preferred equity interests, with a focus on development-related investments, including investments intended to finance development or redevelopment opportunities. The Company may also invest in debt and derivative securities related to real estate assets. A portion of the Company’s investments may be secured by or related to properties or entities advised by, or wholly or partially, directly or indirectly owned by, The Lightstone Group, LLC (the “Sponsor”), its affiliates or other real estate investment programs it sponsors. Although the Company expects that most of its investments will be of these various types, it may also make other investments. In fact, it may invest in whatever types of investments that it believes are in its best interests. The Company currently has one 1 75% 33.3% The Williamsburg Moxy Hotel Joint Venture developed, constructed and owns a 216-room branded hotel (the “Williamsburg Moxy Hotel”) located in the Williamsburg neighborhood in the Brooklyn borough of New York City, which opened on March 7, 2023. Lightstone Value Plus REIT III, Inc. (“Lightstone REIT III”), a REIT also sponsored by the Sponsor and a related party, owns the other 25% The 40 East End Ave. Joint Venture, through affiliates, developed and constructed a luxury residential 29-unit condominium project located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of Manhattan in New York City. Through September 30, 2023, 24 of the 29 units in the condominium project have been sold and the 40 East End Ave. Joint Venture owns the remaining five unsold units which are referred to as the 40 East End Project. Various affiliated entities majority-owned and/or controlled by David Lichtenstein, who majority owns and controls the Sponsor, own the other approximate 66.7% The Company’s advisor is Lightstone Real Estate Income LLC (the “Advisor”), which is majority owned by David Lichtenstein. On September 12, 2014, the Advisor contributed $ 200,000 20,000 222,222 2.0 9.00 The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company may also contract with other unaffiliated third-party property managers. The Company’s stock is not currently listed on a national securities exchange. The Company may seek to list its stock for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. Related Parties The Sponsor, Advisor and its affiliates are related parties of the Company as well as other public REITs also sponsored and/or advised by these entities. Certain of these entities are entitled to compensation for services related to the investment, management and disposition of the Company’s assets. The compensation is based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements. Noncontrolling Interests in Consolidated Subsidiaries Noncontrolling interests in consolidated subsidiaries represents Lightstone REIT III’s 25% |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The accompanying unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone REIT IV have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. The consolidated financial statements have been prepared in accordance with GAAP. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and investments in other real estate entities. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2022 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. Income Taxes The Company elected to qualify and be taxed as a REIT for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2016. As a REIT, the Company generally will not be subject to U.S. federal income tax on its net taxable income that it distributes currently to its stockholders. To maintain its REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, 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 our income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. The Company engages in certain activities through taxable REIT subsidiaries (“TRSs”). As such, the Company is subject to U.S. federal and state income taxes and franchise taxes from these activities. As of September 30, 2023 and December 31, 2022, the Company had no Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT IV and its subsidiaries (over which it exercises financial and operating control). All inter-company balances and transactions have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and if deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. Investments in other real estate entities where the Company has the ability to exercise significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary are accounted for using the equity method. There are judgments and estimates involved in determining if an entity in which the Company has made an investment is a VIE and, if so, whether the Company is the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements. Revenue Recognition Revenues consist of amounts derived from hotel operations, including occupied hotel rooms and sales of food, beverage and other ancillary services and are presented on a disaggregated basis below. Revenues are recorded net of any sales or occupancy tax collected from customers. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the contract upon check-out by the customer from our hotel. The Company participates in frequent guest programs sponsored by the brand owner of its hotel whereby the brand owner allows guests to earn loyalty points during their hotel stay. The Company recognizes revenue at the amount earned that it will receive from the brand owner when a guest redeems their loyalty points by staying at the Company’s hotel. Revenue from food, beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized when these goods or services are provided to the customer and the Company’s contract performance obligations have been fulfilled. Some contracts for rooms, food, beverage or other services require an upfront deposit which is recorded as deferred revenues (or contract liabilities) and recognized once the performance obligations are satisfied. The contract liabilities are not significant. The Company notes no significant judgments regarding the recognition of room food, beverage and other revenues. The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of cash, cash equivalents, and restricted cash For the For the Hotel revenues Room $ 4,861,851 $ 9,973,274 Food, beverage and other 2,829,523 5,777,044 Total hotel revenues $ 7,691,374 $ 15,750,318 Accounts Receivable The Company analyzes accounts receivable aging, historical bad debt levels, customer credit worthiness, current economic trends and management’s expectations about future economic conditions when evaluating the adequacy of the allowance for doubtful accounts and credit loss reserves. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. Depreciation and Amortization Depreciation expense is computed based on the straight-line method over the estimated useful life of the applicable real estate asset. The Company generally uses estimated useful lives of up to 39 years 5 10 years Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, accounts payable and accrued expenses and other liabilities approximate their fair values because of the short maturity of these instruments. The carrying amount of the mortgage payable approximates fair value because its interest rate is variable and reflective of market rates. Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board 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 replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade receivables entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures. Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation. Concentration of Risk As of September 30, 2023 and December 31, 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, cash equivalents or restricted cash. Current Environment The Company’s operating results 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, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability and terms of financings, financial markets volatility, 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. |
Williamsburg Moxy Hotel
Williamsburg Moxy Hotel | 9 Months Ended |
Sep. 30, 2023 | |
Williamsburg Moxy Hotel | |
Williamsburg Moxy Hotel | 3. Williamsburg Moxy Hotel On July 17, 2019, the Company, through its then wholly owned subsidiary, Bedford Avenue Holdings LLC, acquired land parcels located at 353-361 Bedford Avenue in the Williamsburg neighborhood of the borough of Brooklyn in New York City, from unaffiliated third parties, for an aggregate purchase price of $ 30.4 Williamsburg Moxy Hotel Joint Venture On August 5, 2021, the Company formed the Williamsburg Moxy Hotel Joint Venture with Lightstone REIT III, pursuant to which Lightstone REIT III acquired 25% 7.9 5.6 0.9 As a result, the Company and Lightstone REIT III have 75% 25% The Company has determined that the Williamsburg Moxy Hotel Joint Venture is a VIE and the Company is the primary beneficiary. As the Company is the member most closely associated with the Williamsburg Moxy Hotel Joint Venture and therefore has the power to direct the activities of the Williamsburg Moxy Hotel Joint Venture that most significantly impact its performance, the Company has consolidated the operating results and financial condition of the Williamsburg Moxy Hotel Joint Venture and accounted for the ownership interest of Lightstone REIT III as noncontrolling interests commencing on August 5, 2021. Contributions are allocated in accordance with each investor’s ownership percentage. Earnings and cash distributions are allocated in accordance with each investor’s ownership percentage. On August 5, 2021, the Williamsburg Moxy Hotel Joint Venture entered into a development agreement (the “Development Agreement”) with an affiliate of the Advisor (the “Williamsburg Moxy Developer”) pursuant to which the Williamsburg Moxy Developer is being paid a development fee equal to 3% of hard and soft costs, as defined in the Development Agreement, incurred in connection with the development and construction of the Williamsburg Moxy Hotel (see Note 6 for additional information). Additionally on August 5, 2021, the Williamsburg Moxy Hotel Joint Venture obtained construction financing for the Williamsburg Moxy Hotel as discussed below. Furthermore, the Advisor and its affiliates are reimbursed for certain development-related costs attributable to the Williamsburg Moxy Hotel. In connection with the substantial completion of the development and construction of the Williamsburg Moxy Hotel and it opening for business on March 7, 2023, substantially all of the related aggregate development costs ($ 119.5 35.8 73.7 10.0 In connection with the opening of the Williamsburg Moxy Hotel, including its food and beverage venues, the Williamsburg Moxy Hotel Joint Venture incurred pre-opening costs of $ 0.1 2.3 0.3 0.7 An adjacent land owner previously filed a claim questioning the Williamsburg Moxy Hotel Joint Venture’s right to develop and construct the Williamsburg Moxy Hotel without his consent. On November 3, 2023, the Williamsburg Moxy Hotel Joint Venture acquired additional building rights at a contractual purchase price of $ 3.1 Moxy Construction Loan On August 5, 2021, the Williamsburg Moxy Hotel Joint Venture entered into a recourse construction loan facility for up to $77.0 million (the “Moxy Construction Loan”) to fund the development, construction and certain pre-opening costs associated with the Williamsburg Moxy Hotel. The Moxy Construction Loan is scheduled to initially mature on February 5, 2024, with two, six-month extension options, subject to the satisfaction of certain conditions. The Moxy Construction Loan is collateralized by the Williamsburg Moxy Hotel. The Moxy Construction Loan provided for a replacement benchmark rate in connection with the phase-out of LIBOR and effective after June 30, 2023, the Moxy Construction Loan’s interest rate converted from LIBOR plus 9.00%, with a floor of 9.50%, to SOFR plus 9.11%, with a floor of 9.61%. The Moxy Construction Loan requires monthly interest-only payments based on a rate of 7.50% and the excess added to the outstanding loan balance due at maturity. SOFR as of September 30, 2023 was 5.32%. LIBOR as of December 31, 2022 was 4.39%. As of September 30, 2023 and December 31, 2022, the outstanding principal balance of the Moxy Construction Loan was $ 82.3 5.4 0.6 65.6 1.7 2.0 14.43% In connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture has provided certain completion and carry cost guarantees. Furthermore, in connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture accrued $ 0.8 The Williamsburg Moxy Hotel Joint Venture currently expects to refinance the Moxy Construction Loan (outstanding principal balance of $ 82.3 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliated Real Estate Entity | 9 Months Ended |
Sep. 30, 2023 | |
Investment In Unconsolidated Affiliated Real Estate Entity | |
Investment in Unconsolidated Affiliated Real Estate Entity | 4. Investment in Unconsolidated Affiliated Real Estate Entity 40 East End Ave. Joint Venture On March 31, 2017, the Company acquired an approximate 33.3% 10.3 66.7% The Company’s ownership interest in the 40 East End Ave. Joint Venture is a non-managing interest. Because the Company exerts significant influence over but does not control the 40 East End Ave. Joint Venture, it accounts for its ownership interest in the 40 East End Ave. Joint Venture in accordance with the equity method of accounting. All contributions to and distributions of earnings from the 40 East End Ave. Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the 40 East End Ave. Joint Venture are made to the members pursuant to the terms of its operating agreement. The Company commenced recording its allocated portion of earnings and cash distributions, if any, from the 40 East End Ave. Joint Venture beginning as of March 31, 2017 with respect to its membership interest of approximately 33.3% Additionally, Lightstone Value Plus REIT I, Inc. (“Lightstone REIT I”), a REIT also sponsored by the Sponsor, made $ 30.0 12% 30.0 The 40 East End Ave. Joint Venture, through affiliates, developed and constructed a luxury residential 29-unit condominium project located at the corner of 81st Street and East End Avenue in the Upper East Side neighborhood of Manhattan in New York City. Through September 30, 2023, 24 of the 29 units have been sold and the 40 East End Ave. Joint Venture owns the remaining five unsold units, which are referred to as the 40 East End Project. Subsequent to the Company’s acquisition through September 30, 2023, it has made an aggregate of $ 8.8 0.4 1.7 The 40 East End Ave. Joint Venture Financial Information The following table represents the condensed income statements for the 40 East End Ave. Joint Venture: Schedule of financial information of joint venture (amounts in thousands) For the For the For the For the Revenues $ 4,759 $ - $ 13,406 $ 18,678 Cost of goods sold 4,807 - 13,644 18,037 Impairment of real estate inventory - - - 112 Other expenses 277 415 986 1,164 Operating loss (325 ) (415 ) (1,224 ) (635 ) Interest expense and other, net 14 (425 ) (223 ) (1,236 ) Net loss $ (311 ) $ (840 ) $ (1,447 ) $ (1,871 ) Company’s share of net loss (33.3%) $ (104 ) $ (280 ) $ (482 ) $ (623 ) The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) September 30, December 31, Real estate inventory $ 32,053 $ 44,663 Cash and restricted cash 856 213 Other assets 1,193 406 Total assets $ 34,102 $ 45,282 Other liabilities $ 658 $ 316 Members’ capital 33,444 44,966 Total liabilities and members’ capital $ 34,102 $ 45,282 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders’ Equity | 5. Stockholders’ Equity Distributions on Common Shares On March 25, 2020, the Board of Directors determined to suspend regular monthly distributions for months ending after March 2020. Future distributions, if any, declared will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, operating and interest expenses, the Company’s ability to refinance maturing debt, as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. SRP The Company’s share repurchase program (the “SRP”) may provide its stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions. On March 25, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions. Effective May 10, 2021, the Board of Directors reopened the SRP only for redemptions submitted in connection with either a stockholder’s death or hardship and set the price for all such purchases at the Company’s estimated net asset value per share, as determined by the Board of Directors and reported by the Company from time to time, as of the date of redemption. Additionally, beginning on January 1, 2022, any requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. The Board of Directors has established that on an annual basis, the Company will not redeem in excess of 0.5% of the number of shares outstanding as of the end of the preceding year for either death or hardship redemptions, respectively. Redemption requests are expected to be processed on a quarterly basis and may be subject to pro ration if either type of redemption requests exceed the annual limitation. For the nine months ended September 30, 2023, the Company repurchased 91,999 9.49 78,270 8.55 Net Earnings per Common Share Net earnings per Common Share on a basic and fully diluted basis is earnings divided by the weighted average number of shares of common stock outstanding. The Company does not have any potentially dilutive securities. |
Related Party Transactions and
Related Party Transactions and Other Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Other Arrangements | 6. Related Party Transactions and Other Arrangements The Company has agreements with the Advisor to pay certain fees, in exchange for services performed by the Advisor and/or its affiliated entities. The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of summary of amount recorded in pursuant to related party arrangement For the For the 2023 2022 2023 2022 Development fees and cost reimbursement (1) $ 58,368 $ 527,698 $ 572,843 $ 1,390,785 Asset management fees (general and administrative costs) 234,162 - 523,938 - Total $ 292,530 $ 527,698 $ 1,096,781 $ 1,390,785 (1) Development fees and the reimbursement of development-related costs that we pay to the Advisor and its affiliates are capitalized and are included in the carrying value of the a Williamsburg Moxy Hotel. See Note 3 for additional information. As of September 30, 2023 and December 31, 2022, the Company owed the Advisor and its affiliated entities $ 329,252 118,030 3,961 Subordinated Advances – Related Party On March 18, 2016, the Company entered into a subordinated unsecured loan agreement (the “Subordinated Agreement”) with the Sponsor pursuant to which the Sponsor made aggregate principal advances of $ 12.6 1.48% 10.00 8.0% Distributions in connection with a liquidation of the Company initially will be made to holders of its Common Shares until holders of its Common Shares have received liquidation distributions equal to their respective net investments plus a cumulative, pre-tax, non-compounded annual return of 8.0% on their respective net investments. Thereafter, only if additional liquidating distributions are available, the Company will be obligated to repay the outstanding principal advances and related accrued interest to the Sponsor, as described in the Subordinated Agreement. In the event that additional liquidation distributions are available after the Company repays its holders of Common Shares their respective net investments plus their 8% 85.0% 15.0% The principal advances and the related interest are subordinate to all of the Company’s obligations as well as to the holders of its Common Shares in an amount equal to the shareholder’s net investment plus a cumulative, pre-tax, non-compounded annual return of 8.0% In connection with the termination of the Offering, on March 31, 2017, the Company and the Sponsor simultaneously terminated the Subordinated Agreement. As a result of the termination, the Sponsor is no longer obligated to make any additional principal advances to the Company. Interest will continue to accrue on the outstanding principal advances and repayment, if any, of the principal advances and related accrued interest will be made according to the terms of the Subordinated Agreement disclosed above. As of both September 30, 2023 and December 31, 2022, an aggregate of $ 12.6 1.4 1.2 47,123 139,831 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies Hotel Franchise Agreement The Williamsburg Moxy Hotel operates pursuant to a 30-year franchise agreement (the “Hotel Franchise Agreement”) with Marriott International, Inc. (“Marriott”). The Hotel Franchise Agreement provides for the Williamsburg Moxy Hotel Joint Venture to pay franchise fees and marketing fund charges equal to certain prescribed percentages of gross room sales, as defined. Additionally, pursuant to the terms of the Hotel Franchise Agreement, the Williamsburg Moxy Hotel Joint Venture received a key money (“Key Money”) payment of $ 3.0 3.0 Hotel Management Agreements With respect to the Williamsburg Moxy Hotel, the Williamsburg Moxy Hotel Joint Venture has entered into a hotel management agreement, food and beverage operations management agreement and an asset management agreement (collectively, the “Hotel Management Agreements”) with various third-party management companies pursuant to which they provide oversight and management over the operation of the Williamsburg Moxy Hotel and its food and beverage venues and receive payment of certain prescribed management fees, generally based on a percentage of revenues and certain incentives for exceeding targeted earnings thresholds. The management fees are recorded as a component of hotel operating expenses on the consolidated statements of operations. The Hotel Management Agreements have initial terms ranging from five to 20 years. Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. See Note 3 for additional information. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Income Taxes | Income Taxes The Company elected to qualify and be taxed as a REIT for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2016. As a REIT, the Company generally will not be subject to U.S. federal income tax on its net taxable income that it distributes currently to its stockholders. To maintain its REIT qualification under the Internal Revenue Code of 1986, as amended, or the Code, 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 our income and property and to U.S. federal income taxes and excise taxes on its undistributed income, if any. The Company engages in certain activities through taxable REIT subsidiaries (“TRSs”). As such, the Company is subject to U.S. federal and state income taxes and franchise taxes from these activities. As of September 30, 2023 and December 31, 2022, the Company had no |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT IV and its subsidiaries (over which it exercises financial and operating control). All inter-company balances and transactions have been eliminated in consolidation. In addition, interests in entities acquired are evaluated based on applicable GAAP, and if deemed to be variable interest entities (“VIE”) in which we are the primary beneficiary are also consolidated. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which we have control, substantive participating rights or both under the respective ownership agreement. Investments in other real estate entities where the Company has the ability to exercise significant influence, but does not exercise financial and operating control, and is not considered to be the primary beneficiary are accounted for using the equity method. There are judgments and estimates involved in determining if an entity in which the Company has made an investment is a VIE and, if so, whether the Company is the primary beneficiary. The entity is evaluated to determine if it is a VIE by, among other things, calculating the percentage of equity being risked compared to the total equity of the entity. Determining expected future losses involves assumptions of various possibilities of the results of future operations of the entity, assigning a probability to each possibility and using a discount rate to determine the net present value of those future losses. A change in the judgments, assumptions, and estimates outlined above could result in consolidating an entity that should not be consolidated or accounting for an investment using the equity method that should in fact be consolidated, the effects of which could be material to our financial statements. |
Revenue Recognition | Revenue Recognition Revenues consist of amounts derived from hotel operations, including occupied hotel rooms and sales of food, beverage and other ancillary services and are presented on a disaggregated basis below. Revenues are recorded net of any sales or occupancy tax collected from customers. Room revenue is generated through contracts with customers whereby the customers agree to pay a daily rate for right to use a hotel room. The Company’s contract performance obligations are fulfilled at the end of the day that the customer is provided the room and revenue is recognized daily at the contract rate. Payment from the customer is secured at the end of the contract upon check-out by the customer from our hotel. The Company participates in frequent guest programs sponsored by the brand owner of its hotel whereby the brand owner allows guests to earn loyalty points during their hotel stay. The Company recognizes revenue at the amount earned that it will receive from the brand owner when a guest redeems their loyalty points by staying at the Company’s hotel. Revenue from food, beverage and other ancillary services is generated when a customer chooses to purchase goods or services separately from a hotel room and revenue is recognized when these goods or services are provided to the customer and the Company’s contract performance obligations have been fulfilled. Some contracts for rooms, food, beverage or other services require an upfront deposit which is recorded as deferred revenues (or contract liabilities) and recognized once the performance obligations are satisfied. The contract liabilities are not significant. The Company notes no significant judgments regarding the recognition of room food, beverage and other revenues. The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of cash, cash equivalents, and restricted cash For the For the Hotel revenues Room $ 4,861,851 $ 9,973,274 Food, beverage and other 2,829,523 5,777,044 Total hotel revenues $ 7,691,374 $ 15,750,318 |
Accounts Receivable | Accounts Receivable The Company analyzes accounts receivable aging, historical bad debt levels, customer credit worthiness, current economic trends and management’s expectations about future economic conditions when evaluating the adequacy of the allowance for doubtful accounts and credit loss reserves. The Company’s reported net income or loss is directly affected by management’s estimate of the collectability of accounts receivable. |
Depreciation and Amortization | Depreciation and Amortization Depreciation expense is computed based on the straight-line method over the estimated useful life of the applicable real estate asset. The Company generally uses estimated useful lives of up to 39 years 5 10 years |
Financial Instruments | Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash and other assets, accounts payable and accrued expenses and other liabilities approximate their fair values because of the short maturity of these instruments. The carrying amount of the mortgage payable approximates fair value because its interest rate is variable and reflective of market rates. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board 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 replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade receivables entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures. |
Reclassifications | Reclassifications Certain prior period amounts may have been reclassified to conform to the current year presentation. |
Concentration of Risk | Concentration of Risk As of September 30, 2023 and December 31, 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, cash equivalents or restricted cash. |
Current Environment | Current Environment The Company’s operating results 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, the Company’s business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability and terms of financings, financial markets volatility, 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of cash, cash equivalents, and restricted cash | Schedule of cash, cash equivalents, and restricted cash For the For the Hotel revenues Room $ 4,861,851 $ 9,973,274 Food, beverage and other 2,829,523 5,777,044 Total hotel revenues $ 7,691,374 $ 15,750,318 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliated Real Estate Entity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investment In Unconsolidated Affiliated Real Estate Entity | |
Schedule of financial information of joint venture | Schedule of financial information of joint venture (amounts in thousands) For the For the For the For the Revenues $ 4,759 $ - $ 13,406 $ 18,678 Cost of goods sold 4,807 - 13,644 18,037 Impairment of real estate inventory - - - 112 Other expenses 277 415 986 1,164 Operating loss (325 ) (415 ) (1,224 ) (635 ) Interest expense and other, net 14 (425 ) (223 ) (1,236 ) Net loss $ (311 ) $ (840 ) $ (1,447 ) $ (1,871 ) Company’s share of net loss (33.3%) $ (104 ) $ (280 ) $ (482 ) $ (623 ) The following table represents the condensed balance sheets for the 40 East End Ave. Joint Venture: As of As of (amounts in thousands) September 30, December 31, Real estate inventory $ 32,053 $ 44,663 Cash and restricted cash 856 213 Other assets 1,193 406 Total assets $ 34,102 $ 45,282 Other liabilities $ 658 $ 316 Members’ capital 33,444 44,966 Total liabilities and members’ capital $ 34,102 $ 45,282 |
Related Party Transactions an_2
Related Party Transactions and Other Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of summary of amount recorded in pursuant to related party arrangement | Schedule of summary of amount recorded in pursuant to related party arrangement For the For the 2023 2022 2023 2022 Development fees and cost reimbursement (1) $ 58,368 $ 527,698 $ 572,843 $ 1,390,785 Asset management fees (general and administrative costs) 234,162 - 523,938 - Total $ 292,530 $ 527,698 $ 1,096,781 $ 1,390,785 (1) Development fees and the reimbursement of development-related costs that we pay to the Advisor and its affiliates are capitalized and are included in the carrying value of the a Williamsburg Moxy Hotel. See Note 3 for additional information. |
Business and Structure (Details
Business and Structure (Details Narrative) | 1 Months Ended | 9 Months Ended | |||
Sep. 12, 2014 USD ($) shares | Jun. 15, 2015 USD ($) $ / shares shares | Sep. 30, 2023 $ / shares | Sep. 30, 2022 Integer $ / shares | Jun. 30, 2017 | |
Date of incorporation | Sep. 09, 2014 | ||||
Number of operating segment | Integer | 1 | ||||
Shares issued, price per share | $ / shares | $ 9.49 | $ 8.55 | |||
Williamsburg Moxy Hotel Joint Venture [Member] | |||||
Noncontrolling interest percentage | 25% | ||||
Company Owned By David Lichtenstein [Member] | |||||
Stock issued during period value new issues | $ | $ 200,000 | ||||
Lightstone Real Estate Income Llc [Member] | |||||
Stock issued during period shares new issues | shares | 20,000 | ||||
David Lichtenstein [Member] | |||||
Stock issued during period shares new issues | shares | 222,222 | ||||
Proceeds from issuance of common stock | $ | $ 2,000,000 | ||||
Shares issued, price per share | $ / shares | $ 9 | ||||
Williamsburg Moxy Hotel Joint Venture [Member] | |||||
Membership interest (as a percentage) | 75% | ||||
Forty East End Ave Pref Llc [Member] | |||||
Membership interest (as a percentage) | 33.30% | 33.30% | |||
Lightstone REIT III [Member] | |||||
Membership interest (as a percentage) | 25% | ||||
Company Owned By David Lichtenstein [Member] | |||||
Membership interest (as a percentage) | 66.70% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Product Information [Line Items] | ||||
Revenues | $ 7,691,374 | $ 15,750,318 | ||
Hotel [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 4,861,851 | 9,973,274 | ||
Subordinated Agreement [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 2,829,523 | 5,777,044 | ||
Food Beverage And Other Revenue [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 7,691,374 | $ 15,750,318 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Uncertain income tax positions | $ 0 | $ 0 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 39 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful lives | 10 years |
Williamsburg Moxy Hotel (Detail
Williamsburg Moxy Hotel (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 23 Months Ended | |||
Aug. 05, 2021 | Jul. 17, 2019 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Sep. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||||||
Construction in progress, gross | $ 834,703 | $ 834,703 | $ 114,614,484 | $ 834,703 | ||||
Land and improvements | 35,845,388 | 35,845,388 | 35,845,388 | |||||
Buildings and improvements | 78,777,800 | 78,777,800 | 78,777,800 | |||||
Furniture and fixtures | 10,421,255 | 10,421,255 | 10,421,255 | |||||
Pre-opening costs | 72,157 | $ 318,335 | 2,300,501 | $ 737,618 | ||||
Construction Loan | 82,300,000 | 82,300,000 | 65,600,000 | 82,300,000 | ||||
Capitalized interest | 5,400,000 | 1,700,000 | ||||||
Deferred financing fees | $ 600,000 | 2,000,000 | ||||||
Interest rate | 14.43% | |||||||
Williamsburg Moxy Hotel [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Construction in progress, gross | 119,500,000 | $ 119,500,000 | 119,500,000 | |||||
Land and improvements | 35,800,000 | 35,800,000 | 35,800,000 | |||||
Buildings and improvements | 73,700,000 | 73,700,000 | 73,700,000 | |||||
Furniture and fixtures | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Pre-opening costs | 100,000 | $ 300,000 | 2,300,000 | $ 700,000 | ||||
Accrued Loan exit fees | $ 800,000 | 800,000 | $ 800,000 | 800,000 | ||||
Williamsburg Moxy Hotel Joint Venture [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Contractual purchase price | 3,100,000 | |||||||
Williamsburg Land [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Business acqired percentage | 25% | |||||||
Lightstone REIT IV [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Business acqired percentage | 75% | |||||||
Lightstone REIT III [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Business acqired percentage | 25% | |||||||
Moxy Construction [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Business combination consideration description | The Moxy Construction Loan is scheduled to initially mature on February 5, 2024, with two, six-month extension options, subject to the satisfaction of certain conditions. The Moxy Construction Loan is collateralized by the Williamsburg Moxy Hotel. The Moxy Construction Loan provided for a replacement benchmark rate in connection with the phase-out of LIBOR and effective after June 30, 2023, the Moxy Construction Loan’s interest rate converted from LIBOR plus 9.00%, with a floor of 9.50%, to SOFR plus 9.11%, with a floor of 9.61%. The Moxy Construction Loan requires monthly interest-only payments based on a rate of 7.50% and the excess added to the outstanding loan balance due at maturity. SOFR as of September 30, 2023 was 5.32%. LIBOR as of December 31, 2022 was 4.39%. | |||||||
Williamsburg Land [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Contractual purchase price | $ 30,400,000 | |||||||
Aggregate consideration | $ 7,900,000 | |||||||
Additional capital contributions | $ 900,000 | $ 5,600,000 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliated Real Estate Entity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | $ 7,691,374 | $ 15,750,318 | |||
Net loss | (2,730,165) | (686,401) | (8,641,184) | (1,738,537) | |
Company’s share of net loss (33.3%) | (3,473,954) | (766,184) | (11,035,817) | (1,924,885) | |
Other assets | 2,776,792 | 2,776,792 | $ 1,154,466 | ||
Total assets | 146,573,144 | 146,573,144 | 138,272,543 | ||
Members’ capital | 33,167,987 | 33,167,987 | 42,682,408 | ||
Total liabilities and members’ capital | 146,573,144 | 146,573,144 | 138,272,543 | ||
Forty East End Ave Pref Llc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenues | 4,759,000 | 13,406,000 | 18,678,000 | ||
Cost of goods sold | 4,807,000 | 13,644,000 | 18,037,000 | ||
Impairment of real estate inventory | 112,000 | ||||
Other expenses | 277,000 | 415,000 | 986,000 | 1,164,000 | |
Operating loss | (325,000) | (415,000) | (1,224,000) | (635,000) | |
Interest expense and other, net | 14,000 | (425,000) | (223,000) | (1,236,000) | |
Net loss | (311,000) | (840,000) | (1,447,000) | (1,871,000) | |
Company’s share of net loss (33.3%) | (104,000) | $ (280,000) | (482,000) | $ (623,000) | |
Real estate inventory | 32,053,000 | 32,053,000 | 44,663,000 | ||
Cash and restricted cash | 856,000 | 856,000 | 213,000 | ||
Other assets | 1,193,000 | 1,193,000 | 406,000 | ||
Total assets | 34,102,000 | 34,102,000 | 45,282,000 | ||
Other liabilities | 658,000 | 658,000 | 316,000 | ||
Members’ capital | 33,444,000 | 33,444,000 | 44,966,000 | ||
Total liabilities and members’ capital | $ 34,102,000 | $ 34,102,000 | $ 45,282,000 |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliated Real Estate Entity (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2023 | Jun. 30, 2017 | |
Condo Loan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Business combination consideration investment | $ 400,000 | ||
Condo Loan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Aggregate amount | 8,800,000 | ||
Proceeds from acquisition | 1,700,000 | ||
Lightstone Value Plus Real Estate Investment Trust Inc [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Redemption of preferred contributions | $ 30,000,000 | ||
Forty East End Ave Pref Llc [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Preferred stock, dividend rate, percentage | 12% | ||
Company Owned By David Lichtenstein [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Equity Method Investment, Ownership Percentage | 66.70% | ||
Forty East End Ave Pref Llc [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Equity Method Investment, Ownership Percentage | 33.30% | 33.30% | |
Forty East End Ave Pref Llc [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Interest rate | 33.30% | ||
Business combination, consideration transferred | $ 10,300,000 | ||
Preferred contributions | $ 30,000,000 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - $ / shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||
Repurchasement of common shares | 91,999 | 78,270 |
Share price | $ 9.49 | $ 8.55 |
Related Party Transactions an_3
Related Party Transactions and Other Arrangements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Related Party Transactions [Abstract] | |||||
Development fees and cost reimbursement | [1] | $ 58,368 | $ 527,698 | $ 572,843 | $ 1,390,785 |
Asset management fees (general and administrative costs) | 234,162 | 523,938 | |||
Total | $ 292,530 | $ 527,698 | $ 1,096,781 | $ 1,390,785 | |
[1]Development fees and the reimbursement of development-related costs that we pay to the Advisor and its affiliates are capitalized and are included in the carrying value of the a Williamsburg Moxy Hotel. See Note 3 for additional information. |
Related Party Transactions an_4
Related Party Transactions and Other Arrangements (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Mar. 18, 2016 | |
Related Party Transaction [Line Items] | |||
Accounts paybale | $ 329,252 | $ 118,030 | |
Common per share | $ 10 | ||
Net investment annual return | 8% | ||
Additional cummulative net investment rate | 8% | ||
Additional distributions rate | 85% | ||
Aggregate amount rate | 15% | ||
Pre-tax, non-compounded annual return | 8% | ||
Subordinated Advances [Member] | |||
Related Party Transaction [Line Items] | |||
Proceeds from related party debt | 12,600,000 | 12,600,000 | |
Interest expense | 1,400,000 | 1,200,000 | |
Accrued interest | $ 47,123 | 139,831 | |
Subordinated Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Principal amount | $ 12,600,000 | ||
Interest rate | 1.48% | ||
Advisor [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related party | $ 3,961 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Sep. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Unamortized balance | $ 3,000,000 | |
Mortgage Loan [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Proceeds from related party | $ 3,000,000 |