Lightstone Value Plus’s acquired unit gets $175 million loan due 2020

By Marisa Wong

Morgantown, W.Va., Feb. 6 – RP Maximus Cove, LLC entered into a $175 million bank loan set to mature on Jan. 31, 2020 in connection with Lightstone Value Plus Real Estate Investment Trust III, Inc.’s acquisition of a membership interest in RP Maximus Cove.

The loan is collateralized by The Cove, a luxury waterfront multifamily rental property in Tiburon, Calif., managed by joint venture RP Maximus Cove. An affiliate of Lightstone Value Plus REIT’s sponsor has guaranteed up to $43.8 million of the loan, according to an 8-K filing with the Securities and Exchange Commission.

The loan, which includes two one-year extension options, requires monthly interest payments through maturity.

Interest is equal to Libor plus 385 basis points through its initial maturity and Libor plus 415 bps during each of the extension periods.

The Cove transaction consisted of $80 million of cash and $175 million of loan proceeds.

Lightstone Value Plus is a real estate investment trust based in Lakewood, N.J.

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