Lightstone Value Plus REIT III Closes $28.4 Million In Financing with Citibank
Lightstone Value Plus Real Estate Investment Trust III Inc., a publicly registered non-traded REIT, closed on a $28.4 million round of CMBS financing secured by two hotels under the Home2Suites flag, Hilton’s premium all-suite, extended-stay product focused on upper midscale business and leisure travelers. Funding was arranged by Citibank.
The two acquisitions, originally announced in August, represented the sixth and seventh hotel properties to join LVPR III’s portfolio of real estate investments. Lightstone entered into a long-term franchise agreement with Hilton for both properties commencing upon acquisition. The properties are managed by Island Hospitality and overseen by Lightstone’s hospitality division.
The Home2Suites Seattle Airport, a 139-room hotel located in the Seattle suburb of Tukwila, Washington, was purchased for $28 million. The hotel opened in 2015 and is situated five miles from the Seattle-Tacoma International Airport.
Home2Suites Salt Lake City/South Jordan, located in the Salt Lake City suburb of South Jordan, Utah, was purchased for $19.3 million. The 125-room hotel opened in 2013.
“We believe that our ability to work closely with Citibank to successfully close this round of financing signifies the strength of LVPR III’s investment and the growth potential of these two properties,” said Lightstone president Mitchell Hochberg. “As we work to help these hotels reach their earnings potential, we continue to identify and pursue opportunities to expand our investment portfolio across the nation.”
Lightstone Value Plus REIT III invests in hotels, as well as in other types of properties and real estate related assets. The REIT, which currently owns a portfolio of nine properties, commenced its $300 million offering in July 2014 and has raised $99 million since inception.
