Lightstone ValuePlus REIT III Inc., through certain of its units, obtained a revolvingcredit facility amounting to $60.0 million.
The facility, signed July 13, provides for a line of credit overthe next three years, with two one-year extension options at the lender's option.It bears interest at LIBOR plus 4.95%, payable monthly. The company may designateassets as collateral to borrow up to a loan-to-value ratio of the properties of65.0%.
The company on the same day received total initial advances of$45.4 million under the facility, bringing the available amount remaining to $14.6million. The advances are secured by five hotel assets, including in Green Bay,Wis.; two Hampton Inn hotels in Des Moines, Iowa, and Lansing, Mich.; and two Courtyardby Marriott hotels in Durham, N.C., and Warwick, R.I.
Lightstone used roughly $14.4 million of the financing proceedsto repay the outstanding interest and principal balance on two existing revolvingpromissory notes. Moreover, it paid approximately $1.0 million of financing fees,while some $300,000 was held in escrow and is reserved for property improvements,repairs and real estate taxes.
It may use the remaining financing proceeds of around $31.0 millionfor acquisitions, CapEx, working capital and other general corporate funding purposes,including distributions.
Western Alliance Bank is the lender.