Lightstone Value Plus Real Estate Investment Trust III, Inc., a publicly registered non-traded real estate investment trust, purchased a 92-room Courtyard by Marriott hotel in Warwick, Rhode Island for $12.4 million.
The Courtyard – Warwick was built in 2003 and had substantial public area and guest room renovations completed in 2011 and 2014, respectively. The company expects to invest an additional $300,000 to complete certain renovations and improvements.
The capitalization rate for the acquisition was approximately 8.3 percent, and the company’s advisor received an acquisition fee of 1 percent of the purchase price, or $124,000.
In other Lightstone Value Plus REIT III news, The DI Wire reported last week that the company purchased a hotel in Lansing, Michigan for $10.5 million.
Lightstone Value Plus REIT III, which commenced operations in July 2014, focuses on full-service or select-service hotels, including extended-stay hotels and to a lesser extent commercial and residential properties, principally in North America.
As of December 31, 2015, the company raised approximately $39.6 million in investor equity from the sale of 4 million shares of common stock. It intends to continue the offering until all of its shares are sold, or July 15, 2016, whichever is earlier. The company’s portfolio is comprised of four hospitality properties.