UNLOCK THE POWER OF THE VAULT

Lightstone Value Plus REIT III Acquires Joint Venture in Tiburon, California Apartments

February 7, 2017

Lightstone Value Plus REIT III Acquires Joint Venture in Tiburon, California Apartments

February 7, 2017 | James Sprow | Blue Vault

modern apartments with a blue sky

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. 

didyouknow_sponsorfocus-green

Click here to learn more about The Lightstone Group 

Go Back
Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.