UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Item 1.01 Entry into a Material Definitive Agreement
On April 19, 2024, a 75% majority owned subsidiary (the “Williamsburg Moxy Joint Venture”) of Lightstone Value Plus REIT IV, Inc. entered into an $86.0 million senior mortgage loan facility (the “Moxy Senior Loan”) with Western Alliance Bank and G4 18263, LLC (“G4”), both unrelated third parties, and a $9.0 million junior mortgage loan facility (the “Moxy Junior Loan” and together with the Moxy Senior Loan, the “Moxy Mortgage Loans”) with G4. Lightstone Value Plus REIT III, Inc., a related party REIT, owns the other 25% noncontrolling membership interest in the Williamsburg Moxy Hotel Joint Venture.
The Moxy Mortgage Loans bear interest at SOFR plus 5.10%, subject to a 8.75% floor. The Moxy Mortgage Loans initially mature on April 19, 2027, but may be further extended though the exercise of two six-month extension options, subject to the satisfaction of certain conditions. The Moxy Mortgage Loans require monthly interest-only payments with their outstanding principal due in full at maturity and are collateralized by a 216-room Marriott Moxy hotel (the “Williamsburg Moxy Hotel”), located in the Williamsburg neighborhood of Brooklyn in New York City, however, the Moxy Junior Loan is subordinate to the Moxy Senior Loan. The Williamsburg Moxy Hotel Joint Venture used $85.8 million of the aggregate proceeds from the Moxy Mortgage Loans to repay in full existing mortgage indebtedness which was collateralized by the Williamsburg Moxy Hotel.
In connection with the Moxy Mortgage Loans, the Williamsburg Moxy Hotel Joint Venture has provided certain interest and carry costs guarantees. Furthermore, in connection with the Moxy Mortgage Loans, $3.2 of the initial proceeds advanced at closing were used to fund reserves for interest, real estate taxes and insurance. Additionally, the Williamsburg Moxy Hotel Joint Venture paid an aggregate of $2.8 million of loan fees and expenses in connection with the Moxy Mortgage Loans.
Item 2.03 Creation of a Direct Financial Obligation of a Registrant
The discussion with respect to the Moxy Mortgage Loans contained in “Item 1.01 Entry into a Material Definitive Agreement” of this Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| LIGHTSTONE VALUE PLUS REIT IV, INC. | ||
| Date: April 25, 2024 | By: | /s/ Seth Molod |
| Seth Molod | ||
| Chief Financial Officer and Principal Accounting Officer | ||
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