Lightstone Value Plus REIT II Secures $140 Million Credit Facility
Lightstone Value Plus Real Estate Investment Trust II Inc., a publicly registered non-traded REIT, has secured a $140 million revolving credit facility with Western Alliance Bank.
Lightstone Value Plus Real Estate Investment Trust II Inc., a publicly registered non-traded REIT, has secured a $140 million revolving credit facility with Western Alliance Bank.
The revolving credit facility bears interest at Libor plus 3.5 percent and has an initial term of three years, with two, one-year extension options at the sole discretion of Western Alliance.
The facility provides for borrowings up to 65 percent of the loan-to-value ratio of 13 properties designated as collateral. The company has received an initial advance of $123.8 million and used the proceeds to repay existing mortgage debt.
Lightstone Value Plus REIT II is sponsored by The Lightstone Group and is currently closed to new investors. The company’s initial offering was declared effective in April 2009 and raised $177 million in investor equity before closing in September 2014, according to Summit Investment Research. The company’s portfolio consisted of 17 hotel properties purchased for a combined 320 million, as of the first quarter of 2018.
