Lightstone Analysis
What is Lightstone?
Real estate development and investment firm
Product Features & Capabilities
- Multifamily housing with 25,000 units
- Hospitality management with 5,100 keys
- Commercial management covering 14.6 million square feet
- Life sciences asset management with 1 million square feet
- Real estate investment trusts with $1.8 billion AUM
- Real estate debt platform with $1.5 billion deployed
- Early-stage technology investments through Lightstone Ventures.
Investment Focus
Lightstone Group primarily focuses on real estate investments across various sectors, including multifamily housing, hospitality, commercial, life sciences, and venture capital. Their investment strategy is diversified, encompassing both existing property acquisitions and ground-up development. The firm manages a significant portfolio, which includes 25,000 multifamily units, 5,100 hospitality keys, and 14.6 million square feet of commercial space. Lightstone's approach involves identifying, acquiring, and improving real estate, as well as creating unique properties through development. They have a development pipeline valued at $3.5 billion and manage $1.8 billion in capital markets and $2.1 billion in reinsurance.
Assets Under Management
$6.5 billion
Investment Geography
Lightstone Group primarily invests in 27 states across the United States, focusing on residential, hospitality, and commercial properties.
Key Portfolio Companies
- Extended Stay Hotels - Acquired in June 2007 for $8 billion, this hotel chain specializes in extended stay accommodations. The acquisition was significant as it was financed with $7 billion of debt, leading to liquidity issues and bankruptcy in 2009.
- Beacon Management - A subsidiary of Lightstone that manages its residential apartment business, focusing on providing quality living spaces.
- Paragon Outlets - An affiliate that manages Lightstone's retail portfolio, overseeing outlet shopping centers. Lightstone's portfolio also includes multifamily, office, industrial, hotel, and retail sectors, with over 232 properties across 27 states.
Notable Exits
- Prime Retail - Lightstone Group acquired Prime Retail for $638 million.
- Multifamily Portfolio in Suburban Detroit - In December 2021, Lightstone closed a deal to acquire a portfolio of 27 multifamily assets in suburban Detroit for $1 billion from Hartman & Tyner.
- ESH Hospitality - Lightstone's latest portfolio exit was ESH Hospitality, which occurred on November 13, 2013.
Recent Fundraising
Management Team
The management team of Lightstone Group includes the following members:
- David Lichtenstein: Chairman & CEO
- Mitchell C. Hochberg: President
- Joseph E. Teichman: EVP & General Counsel
- Kara Morett: EVP, Human Resources
- Lauren Levin: SVP & CMO
- Mark Green: SVP, Construction
- Sanford Blumenthal: SVP, Investments
- Ariel Feldhamer: SVP, Asset Management & Investments
