Lightstone Value Plus REIT III Buys Michigan Hotel for $10.5 Million
Lightstone Value Plus REIT III, a publicly registered non-traded real estate investment trust, purchased the Hampton Inn – Lansing in Michigan for $10.5 million, or $122,000 per room.
The 86-room select service hotel was built in 2013, and the company expects to invest $500,000 for renovations and improvements. An unrelated third party firm will oversee the management of the hotel, which will continue to operate as a “Hampton Inn & Suites” for a 15-year term.
The capitalization rate for the acquisition was approximately 12 percent, and company’s advisor received a 1 percent acquisition fee of $105,000.
Lightstone Value Plus Real Estate Investment Trust 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. In addition to the Lansing property, the REIT owns a Hampton Inn in Iowa and a Courtyard by Marriot in North Carolina.
