The Lightstone Group
Encyclopedia
The Lightstone Group is a privately held real estate investment company
which owns and operates a diversified portfolio of multifamily, office, industrial, hotel and retail properties. Lightstone has invested directly in individual real estate assets and in real estate operating companies. The company was founded by David Lichtenstein
in 1988.
The company's portfolio of real estate properties spans 27 U.S. states and includes more than 19,000 multifamily units and approximately 24000000 square feet (2,229,673 m²) of office, industrial, hotel and retail space.
The Lightstone Group has more than 1,000 employees and is headquartered in New York City
with regional offices in New Jersey, Maryland and Illinois.
Out of the 300 properties Lightstone has returned approximately 10 to its lenders. In October 2008, Lightstone returned (Macon, Georgia
and the Burlington Square Mall
in Burlington, North Carolina
) to its lenders. Shortly after defaulting on these two malls, four additional malls were taken by their lenders including Martinsburg Mall in Martinsburg, West Virginia
; Mount Berry Square Mall in Rome, Georgia
; Shenango Valley Mall in Hermitage, Pennsylvania
and Bradley Square Mall in Cleveland, Tennessee
.
including the 770000 square feet (71,535.3 m²) Prime Outlets – Orlando and the 740000 square feet (68,748.2 m²) Prime Outlets – San Marcos.
In December 2009 Lightstone Group LLC, announced that it is selling Prime Outlets to Simon Property Group Inc
. for $700 million in cash and the assumption of $1.6 billion in debt. The price tag reflects a significant increase from what Lightstone paid for Prime in 2003: $115 million in cash and the assumption of $523 million in debt. Buying Prime Outlets Inc. in 2003 was one of the best investments that New York investor David Lichtenstein ever made. Additionally, the exceptionally successful transaction was achieved during a meltdown in the commercial real estate market.
The deal was officially made on August 30, 2010, selling twenty-one properties, but keeping the indoor St. Augustine, Florida
outlet center and the development sites at Grand Prairie, Texas
and Livermore Valley
, California.
Park Avenue Funding, a Lightstone subsidiary, is a real estate lender that provides financing for complex real estate transactions.
, the largest, mid-price extended-stay hotel company in the United States, which filed for bankruptcy protection on June 15, 2009. Lightstone had acquired the company from The Blackstone Group (no relation) in July 2007 In addition to the loss of its initial investment, the bankruptcy filing possibly triggered a clause in Extended Stay's financing documents that would require a liability payment by Lightstone. However, Lightstone was able to negotiate an indemnification for the liability from lenders in exchange for giving up control of the company.
Real estate investor
A real estate investor or a real estate entrepreneur to a lesser extent is someone who actively or passively invests in real estate. An active investor may buy a property, make repairs and/or improvements to the property, and sell it later for a profit. A passive investor might hire a firm to...
which owns and operates a diversified portfolio of multifamily, office, industrial, hotel and retail properties. Lightstone has invested directly in individual real estate assets and in real estate operating companies. The company was founded by David Lichtenstein
David Lichtenstein
David Lichtenstein is the CEO of The Lightstone Group, which he founded in 1988 and it one of the largest privately held real estate companies in the United States...
in 1988.
The company's portfolio of real estate properties spans 27 U.S. states and includes more than 19,000 multifamily units and approximately 24000000 square feet (2,229,673 m²) of office, industrial, hotel and retail space.
The Lightstone Group has more than 1,000 employees and is headquartered in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
with regional offices in New Jersey, Maryland and Illinois.
Business
The company operates through a group of subsidiaries and investment vehicles including:- Real Estate Investments
- Prime Retail
- Prime Group Realty Trust
- Lightstone Securities
- Beacon Management
- Park Avenue Funding
Real Estate Investments
The Company owns approximately 300 retail, office industrial and residential properties in 27 states. Its outlet mall porfolio is run out of Baltimore by Prime Retail. The office and industrial space is managed by Prime Group Realty Trust in Chicago. The residential and strip mall retail properties are managed in the Lakewood NJ office by The Lightstone Group.Out of the 300 properties Lightstone has returned approximately 10 to its lenders. In October 2008, Lightstone returned (Macon, Georgia
Macon, Georgia
Macon is a city located in central Georgia, US. Founded at the fall line of the Ocmulgee River, it is part of the Macon metropolitan area, and the county seat of Bibb County. A small portion of the city extends into Jones County. Macon is the biggest city in central Georgia...
and the Burlington Square Mall
Burlington Square Mall
Holly Hill Mall and Business Center is an enclosed shopping mall located in Burlington, North Carolina, United States. The mall's anchor store is Sears.- History :...
in Burlington, North Carolina
Burlington, North Carolina
Burlington is a city in Alamance and Guilford counties in the U.S. state of North Carolina. It is the principal city of the Burlington, North Carolina Metropolitan Statistical Area which encompasses all of Alamance County, in which most of the city is located. The population was 49,963 at the 2010...
) to its lenders. Shortly after defaulting on these two malls, four additional malls were taken by their lenders including Martinsburg Mall in Martinsburg, West Virginia
Martinsburg, West Virginia
Martinsburg is a city in the Eastern Panhandle region of West Virginia, United States. The city's population was 14,972 at the 2000 census; according to a 2009 Census Bureau estimate, Martinsburg's population was 17,117, making it the largest city in the Eastern Panhandle and the eighth largest...
; Mount Berry Square Mall in Rome, Georgia
Rome, Georgia
Located in the foothills of the Appalachian Mountains, Rome is the largest city and the county seat of Floyd County, Georgia, United States. It is the principal city of the Rome, Georgia Metropolitan Statistical Area which encompasses all of Floyd County...
; Shenango Valley Mall in Hermitage, Pennsylvania
Hermitage, Pennsylvania
Hermitage is a city in Mercer County, Pennsylvania, United States. The population was 16,157 at the 2000 census. It is part of the Youngstown–Warren–Boardman, OH-PA Metropolitan Statistical Area.-History:...
and Bradley Square Mall in Cleveland, Tennessee
Cleveland, Tennessee
Cleveland is a city in Bradley County, Tennessee, United States. The population was 41,285 at the 2010 census. It is the county seat of Bradley County...
.
Prime Retail
Lightstone acquired Prime Retail in December 2003 for $638 million. Prime Retail owns and manages 8000000 square feet (743,224.3 m²) of retail outlet space in 22 properties located in the United States and Puerto RicoPuerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
including the 770000 square feet (71,535.3 m²) Prime Outlets – Orlando and the 740000 square feet (68,748.2 m²) Prime Outlets – San Marcos.
In December 2009 Lightstone Group LLC, announced that it is selling Prime Outlets to Simon Property Group Inc
Simon Property Group
Simon Property Group, Inc. is an American commercial real estate company, ranked #1 in the United States as the largest real estate investment trust. Simon is a fully integrated real estate company which operates from five retail real estate platforms: regional malls, Premium Outlet Centers, The...
. for $700 million in cash and the assumption of $1.6 billion in debt. The price tag reflects a significant increase from what Lightstone paid for Prime in 2003: $115 million in cash and the assumption of $523 million in debt. Buying Prime Outlets Inc. in 2003 was one of the best investments that New York investor David Lichtenstein ever made. Additionally, the exceptionally successful transaction was achieved during a meltdown in the commercial real estate market.
The deal was officially made on August 30, 2010, selling twenty-one properties, but keeping the indoor St. Augustine, Florida
St. Augustine, Florida
St. Augustine is a city in the northeast section of Florida and the county seat of St. Johns County, Florida, United States. Founded in 1565 by Spanish explorer and admiral Pedro Menéndez de Avilés, it is the oldest continuously occupied European-established city and port in the continental United...
outlet center and the development sites at Grand Prairie, Texas
Grand Prairie, Texas
Grand Prairie is a city in Dallas, Ellis, and Tarrant counties in the U.S. state of Texas and is a part of the Mid-Cities region in the Dallas–Fort Worth metroplex. Grand Prairie is a suburb of both Dallas and Fort Worth and had a population of 175,396 at the 2010 census.- History :The city of...
and Livermore Valley
Livermore Valley
The Livermore Valley AVA is an American Viticultural Area in Alameda County, California, surrounding the city of Livermore in the Tri-Valley region. Both the AVA and the city are named after Robert Livermore, a landowner whose holdings encompassed the valley. The groundwater basin underlying the...
, California.
Prime Group Realty Trust
The Lightstone Group acquired Prime Group Realty Trust, a publicly traded REIT, in July 2005. Prime Group Realty Trust owns and operates approximately 3000000 square feet (278,709.1 m²) of office space located in and around Chicago, Illinois. The company’s major assets include the 1100000 square feet (102,193.3 m²) 330 North Wabash Avenue and the 770,000 square foot 180 North LaSalle Street.Lightstone Securities
The company is also a sponsor of Lightstone Securities, Lightstone Value Plus Real Estate Investment Trust, Inc., a non-traded public REIT. The REIT has invested in a broad range of residential and commercial properties.Other businesses
Beacon Management, a Lightstone subsidiary, is a leading provider of the multi-family residential housing. Beacon has a presence in the northeast, southeast and midwest regions of the U.S.Park Avenue Funding, a Lightstone subsidiary, is a real estate lender that provides financing for complex real estate transactions.
Extended Stay Hotels
Until recently, Lightstone also owned Extended Stay HotelsExtended Stay Hotels
Extended Stay Hotels is a privately owned hotel brand that operates in the extended stay hotel market. The company is headquartered in Spartanburg, South Carolina....
, the largest, mid-price extended-stay hotel company in the United States, which filed for bankruptcy protection on June 15, 2009. Lightstone had acquired the company from The Blackstone Group (no relation) in July 2007 In addition to the loss of its initial investment, the bankruptcy filing possibly triggered a clause in Extended Stay's financing documents that would require a liability payment by Lightstone. However, Lightstone was able to negotiate an indemnification for the liability from lenders in exchange for giving up control of the company.
External links
- The Lightstone Group (company website)
- Lightstone Securities (company website)
- Prime Retail (company website)
- Beacon Management (company website)
- Prime Group Realty Trust (company website)
- Park Avenue Funding (company website)