Lightstone Expands Credit Facility; Secures LIC Hotel Financing

NEW YORK CITY—Lightstone reports it has secured acquisition financing for its recent purchase of the Hilton Garden Inn in Long Island City as well as a new $140-million credit facility that supports the three-year expansion of the firm’s national hospitality portfolio.

The $35-million acquisition financing and the new $140-million new credit facility for the Lightstone Value Plus REIT II was provided to the New York City-based real estate investment and development firm by Western Alliance Bank of Phoenix. The acquisition loan has a five-year term.

Lightstone announced earlier this month it was acquiring the 183-key Hilton Garden Inn in Long Island City for $60 million. Lightstone’s Long Island City portfolio also includes the 428-unit multi-family rental property, ARC, in the Dutch Kills section of Long Island City. Lightstone also developed the Gantry Park Landing, a luxury waterfront rental property in Long Island City in 2011.

Lightstone has worked with Western Alliance Bank for the past five years to finance a number of hospitality investments, including a recent $18-million loan for a select service hotel in New Orleans, and a $25-million loan for a select service hotel in Needham, MA. Other major financing projects include two separate $60-million and $75-million revolving loans used to finance five and nine hotels, respectively across the United States.

The firm  has a hospitality portfolio that includes 29 properties totaling 3,929 keys that involve partnerships with Marriott, Starwood, Hilton, IHG and Hyatt. Lightstone opened the 612-key Moxy Times Square hotel in the fall of 2017, intends to open the 349-key Moxy Chelsea hotel in the fall of this year and has two additional Moxy hotels planned in New York City. Lightstone also plans to develop Moxy properties in South Beach, Miami, as well as in downtown Los Angeles and West Hollywood.