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Debt & Equity

Lightstone REIT closes $28M CMBS financing

Lightstone Value Plus Real Estate Investment Trust III, Inc. closed on a $28.4 million round of CMBS financing secured by two hotels under the Home2Suites flag, Hilton’s all-suite, extended-stay product focused on upper midscale business and leisure travelers.

Arranged by Citibank, the funding signifies the strength of LVPR III’s investment in the two hotel properties.

The two acquisitions, originally announced in August, represented the sixth and seventh hotel properties to join LVPR III’s growing national portfolio of strategic real estate investments.

Mitchell Hochberg
Mitchell Hochberg

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.

Home2Suites Seattle Airport, located minutes from the Seattle-Tacoma International Airport, opened in July 2015 and features 139 suite-style guestrooms. Home2Suites Salt Lake City/South Jordan is in the prosperous South Jordan submarket of Salt Lake City. The four-story hotel features 125 suite-style guestrooms and opened in December 2013.

Lightstone president Mitchell Hochberg commented, “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.”

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