Lightstone Group Acquires Senior Mortgage Secured by Holiday Inn Express® Hotel & Suites Tower Center East Brunswick, N.J.

NEW YORK, July 28, 2011 /PRNewswire/ -- The Lightstone Group today announced that it has closed on a senior mortgage acquisition secured by the Holiday Inn Express® Hotel & Suites Tower Center in East Brunswick, N.J. 

Lightstone purchased the note for approximately $5.6 million (64% of the note's unpaid balance), or $56,000 per key, through its Lightstone Value Plus Real Estate Investment Trust ("REIT I"). This is Lightstone's second note acquisition collateralized by a hotel property, and fourth hospitality acquisition, since 2007, including the senior mortgage secured by the 141-room Fairfield Inn in East Rutherford, N.J., a 125-room limited-service extended-stay TownePlace Suites by Marriott in Metairie, LA; and most recently, the 366-room full-service CoCo Key Hotel & Water Resort in Danvers, MA.

The transaction marks another important step in the company's continued efforts to strengthen its position in the hospitality sector and grow its presence in the Northern New Jersey and New York Metropolitan area hospitality market.

"The acquisition of this loan presented a strong opportunity to invest in a high-quality Class A hotel property on a discounted basis," said Ryan Colbert, an acquisition officer at The Lightstone Group. "This deal was also a twofold strategic move for Lightstone; it supports our focus on the hospitality industry and enables our organization to increase its visibility in the New York Metropolitan area hotel sector."

Originally constructed in 2004, and renovated between 2007 and 2009, the Holiday Inn Express® Hotel & Suites Tower Center East Brunswick features a total of 100 guest rooms, 32 of which are suites. The property is centrally located in the East Brunswick area, off exit 9 of the New Jersey Turnpike and within walking distance of Rutgers University Cook/Douglass Campus as well as central New Brunswick. The hotel is also in close proximity to the New Jersey Convention and Exposition Center and offers convenient lodging to corporate transient business.

About The Lightstone Group

Founded in 1988, The Lightstone Group has grown to become one of the largest privately held real estate companies in the United States.  Its diversified portfolio of industrial, office, retail and residential real estate assets includes 10 million square feet of commercial space and more than 8,000 multifamily units in 20 states and Puerto Rico.  

The Lightstone Group manages its business through operating platforms, each focused on a specific real estate asset class.  Headquartered in New York, The Lightstone Group employs more than 500 professionals.  For more information, visit www.lightstonegroup.com.

SOURCE The Lightstone Group