The Lightstone Group and Affiliate Announces Acquisition of 19 Apartment Complexes in Southeast Michigan, Adding 5,000 Units to Existing Portfolio


LAKEWOOD, N.J.--(BUSINESS WIRE)--June 30, 2006--The Lightstone Group and its affiliated entity, the Lightstone Value Plus Real Estate Investment Trust, Inc., today announced the combined purchase of 19 multi-family apartment complexes located in various Southeast Michigan suburbs. The combined portfolio, consisting of approximately 5,000 apartments, was acquired from Rochester-based Home Properties, Inc.

The transaction was valued at an all included cost of $260 million including closing costs and capital improvements.

Angela Olsen, Chief Investment Officer, commented: "Lightstone's roots are in residential properties, and we are pleased to be able to balance our portfolio with these additional multi-family assets."

During the last two years, Lightstone has significantly expanded its retail and office platforms, while maintaining its multi-family portfolio. "This was one of the most complicated transactions I've every worked on," commented Ms. Olsen. "Dealing with 19 assets in 12 different municipalities, simultaneously representing the interests of a publicly registered REIT and privately held Lightstone Group, and managing negotiations with four different lenders in a volatile interest rate environment, required much organizational skill to close everything simultaneously," concluded Ms. Olsen.

The Lightstone Group was represented by Herrick, Feinstein LLP, the Lightstone Value Plus REIT was represented by Proskauer Rose LLP and financing was provided by Wachovia, CIBC, Citigroup, and Park Avenue Funding. The properties will be managed and operated by Beacon Management LLC, a subsidiary of the Lightstone Group headed by Martin Sumner, Lightstone's Chief Operating Officer.