Lightstone Value Plus REIT III Acquires Joint Venture in Tiburon, California Apartments
February 7, 2017 | James Sprow | Blue Vault
Lightstone Value Plus REIT III Inc., Lightstone Real Estate Income Trust Inc. and Maximus Cove Investor LLC signed a joint venture agreement to acquire RP Cove LLC’s stake in The Cove at Tiburon, Calif., for roughly $255.0 million, which consisted of $80 million of cash and $175 million of proceeds from a loan from a financial institution. The joint venture secured the $175 million loan due January 31, 2020, with two conditional one-year extension options. The loan carries interest at LIBOR plus 3.85% through its initial maturity and LIBOR plus 4.15% during the extension periods. Lightstone Value Plus Real Estate Investment Trust III paid about $20.0 million for a 22.5% non-managing membership interest in the joint venture.
The Cove is a multi-family complex consisting of 281-units, or 289,690 square feet, contained within 32 apartment buildings over 20.1 acres originally constructed in 1967. As of January 31, 2017, The Cove was 81.5% occupied. The average remaining term for existing leases in The Cove is 4 months and the average rental price per square foot is $4.47. The capitalization rate for the acquisition of The Cove was approximately 3.9%.
Starting in 2013, approximately $38 million has been invested in an extensive refurbishment of The Cove; of which to date, 97% of the apartment buildings have been completed.
Click here to learn more about The Lightstone Group .
Our firm has been using Blue Vault from the first year it was available.
We have found it to be a valuable tool to verify what wholesalers tell us and to dig deep into how the reported investments are really performing.
We appreciate that Blue Vault has expanded its services from initially covering REIT's to now also including BDC's.
Our clients also appreciate that we conduct this additional due diligence on their behalf.