Item 1.01 Entry into a Material Definitive Agreement
Citadel Apartments located in Houston, Texas
On October 6, 2021, Lightstone Value Plus REIT V, Inc. (the "Company"),
through LVP BH Citadel LLC ("LVP BH Citadel"), a subsidiary of Lightstone REIT V
OP LP, the Company's operating partnership, entered into an Assignment and
Assumption of Purchase and Sale Agreement (the "Assignment") with Lightstone
Acquisitions VI LLC (the "Assignor"), an affiliate of the Lightstone Group, LLC,
which serves as the Company's external advisor through an affiliate
(collectively, the "Advisor"). Under the terms of the Assignment, LVP BH
Citadel was assigned the rights and assumed the obligations of the Assignor with
respect to a certain Purchase and Sale Agreement (the "Purchase Agreement"),
dated July 16, 2021, as amended, made between the Assignor, as the purchaser,
and AHC Citadel, LLC (the "Seller") as the seller, whereby the Assignor
contracted to purchase a 293-unit multifamily property located in Houston, Texas
(the "Citadel Apartments").
See Item 2.01 "Completion of Acquisition or Disposition of Assets" for
additional information.
Item 2.01 Completion of Acquisition or Disposition of Assets.
On October 6, 2021, the Company, through LVP BH Citadel, completed the
acquisition of the Citadel Apartments from the Seller, an unrelated third party,
for approximately $66.0 million, excluding closing and other acquisition related
costs.
In connection with the acquisition of the Citadel Apartments, the Company
simultaneously entered into a $49.0 million mortgage loan (the "Citadel
Mortgage") scheduled to mature on October 11, 2024, with two, one-year
extension options, subject to certain conditions. The Citadel Mortgage requires
monthly interest payments through its maturity date and bears interest at
LIBOR+2.95% subject to a 3.05% floor through its maturity. The Citadel Mortgage
is collateralized by the Citadel Apartments and is non-recourse to the Company.
In connection with the acquisition of the Citadel Apartments, the Company
received aggregate proceeds of $38.0 million under the Citadel Mortgage and paid
approximately $28.0 million of cash. As a result, the Citadel Mortgage had a
remaining availability of $11.0 million.
In connection with the acquisition, the Advisor received an aggregate of
approximately $1.6 million in acquisition fees, acquisition expense
reimbursements and debt financing fees.
The capitalization rate for the acquisition of the Citadel Apartments was
approximately 3.63%. The Company calculates the capitalization rate for a real
property by dividing the net operating income ("NOI") of the property by the
purchase price of the property, excluding costs. For purposes of this
calculation, NOI was based upon the twelve months ended March 31, 2021.
Additionally, NOI is all gross revenues from the property less all operating
expenses, including property taxes and management fees but excluding
depreciation.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The discussion contained with respect to the Loan in "Item 2.01 Completion of
Acquisition or Disposition of Assets" of this Current Report on Form 8-K is
incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
(a) and (b) Financial Statements and Pro Forma Financial Information.
The financial statements required by this item are not being filed herewith. To
the extent financial statements are required by this item, such financial
statements will be filed with the Securities and Exchange Commission by
amendment to this Form 8-K no later than 71 days after the date on which this
Form 8-K is required to be filed.
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LIGHTSTONE VALUE PLUS REIT V, INC. 
