Lightstone VP REIT V Acquires Autumn Breeze Apartments in Noblesville, Indiana
March 26, 2020 | James Sprow | Blue Vault
On March 17, 2020, Lightstone Value Plus Real Estate Investment Trust V, Inc. (the “Company”), through LVP BH Autumn Breeze, completed the acquisition of the Autumn Breeze Apartments from an unrelated third party, for approximately $43.0 million, which equates to $153,571 per unit, excluding closing and other acquisition related costs. In connection with the acquisition the Company’s Advisor received an aggregate of approximately $0.8 million in acquisition fees and acquisition expense reimbursements.
The capitalization rate for the acquisition of the Autumn Breeze Apartments was approximately 4.86%. The Company calculates the capitalization rate for a real property by dividing the net operating income (“NOI”) of the property by the purchase price of the property, excluding costs. For purposes of this calculation, NOI was based upon the twelve months ended February 29, 2020. Additionally, NOI is all gross revenues from the property less all operating expenses, including property taxes and management fees but excluding depreciation.
The Company was formerly Behringer Harvard Opportunity REIT II. On February 10, 2017, the REIT terminated the engagement of the Behringer Advisor and engaged affiliates of the Lightstone Group to provide advisory services.
As of September 30, 2019, the Company owned eight properties including six multifamily properties with a total of 1,955 units, one student housing property in Athens, Georgia, with 1,134 beds, and one healthcare property, a medical office building in Palm Beach Gardens, Florida, with 75,374 square feet of GLA.
The last distribution paid by the REIT was in Q1 2016, a special distribution of $1.50 per share related to a sale of assets.
On November 7, 2019, the board of directors of the REIT determined and approved an estimated NAV per share of $9.10, calculated as of September 30, 2019.
Sources: SEC, Blue Vault
