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The Lightstone Group

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The Lightstone Group
Company typePrivately-held company
IndustryReal estate, Private equity, Private credit
Founded1988; 37 years ago (1988)
FounderDavid Lichtenstein
HeadquartersNew York City
Area served
New Jersey
Maryland
Illinois
California
North Carolina
Michigan
New York
Number of employees
Over 570
Websitewww.lightstonegroup.com

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.[1][2]

The company's portfolio of real estate properties spans 20 U.S. states, and includes more than 11,000 multifamily units and approximately 20 million square feet of commercial space in the office, industrial, hotel, and retail sectors. The company has more than 570 employees, and is headquartered in New York City with regional offices in California, New Jersey, Maryland, Illinois, Michigan and North Carolina. Beacon Management is a Lightstone subsidiary, which manages the company's residential apartment business. Baltimore, Maryland-based Paragon Outlets is an affiliate of Lightstone, and manages the company's retail portfolio.[citation needed]

Residential Development

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Lightstone has developed residential properties across several New York City neighborhoods, including Long Island City, Gowanus, Yorkville, and the Financial District.[3]

Its portfolio includes luxury condominiums such as 130 William, an 800-foot tower designed by Sir David Adjaye, and 40 East End, an 18-story, 100,000-square-foot building designed by Deborah Berke Partners.[4]

130 William, a 66-story condominium, was among the top-selling properties in New York City in 2023, with approximately 90 percent of its units sold by July—just one month after the building’s completion in June. The building’s penthouse was also featured in an episode of NBC’s “Law & Order.”[5][6]

Lightstone’s luxury rental properties in New York City include ARC in Long Island City and 365 Bond, which was the first residential development along the Gowanus Canal.[7]

Retail

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In 2003 Lightstone acquired Prime Retail, one of the largest owners and operators of shopping malls, for $638 million.[8] It recapitalized Prime Retail with Simon Property Group for $2.24 billion in 2009. [9] Simon Property Group is an American real estate investment trust that invests in shopping malls, outlet centers, and community/lifestyle centers and is the largest owner of shopping malls in the United States [10]

In November 2024, Lightstone acquired The Outlet Collection Seattle, a 943,000-square-foot shopping mall in Auburn, WA, for $82 million.

Reinsurance

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Converge RE II, a Lightstone affiliate based in Puerto Rico, is a Class 5 reinsurer operating through the International Insurance Center (IIC) with an A rating.[11] The company provides reinsurance services to life and annuity insurers, with a focus on supporting capital reallocation and financial efficiency. It manages assets totaling more than $1.5 billion.[12]

Awards and Recognitions

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  • 2025 Award of Merit for Multi-Unit Residential Buildings from Azure Magazine
  • Crain's New York Business named Lightstone one of the Best Places to Work in New York City, ranking it in the top 100 in 2023 and 2024 [13] [14]
  • Mitchell Hochberg and David Lichtenstein have been included multiple times in Commercial Observer’s Power 100 list, including 2023 (rank: 60) and 2024 (rank: 55) [15]
  • 2023 Residential Architect Design Award from Architect magazine
  • 2020 Residential Concept Award from The Architecture Community’s International Residential Architecture Awards [16]
  • 2018 BQDA Queens People’s Choice Award from the American Institute of Architects (AIA) Brooklyn + Queens Design Awards -- For ARC [17]
  • 2018 Award of Merit Special Recognition for Unique Exposed Architectural/ Structural Concrete from the Roger H. Corbetta Awards Program -- For ARC [18]
  • 2017 BQDA Award of Merit People’s Choice Award from the American Institute of Architects (AIA) Brooklyn + Queens Design Awards -- For 365 Bond [19]

Mitchell Hochberg and David Lichtenstein have been included multiple times in Commercial Observer’s Power 100 list

Multifamily Investment

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Lightstone's national multifamily portfolio comprises over 25,000 units. In December 2021, the company acquired a portfolio of more than 7,800 apartments in Michigan from Hartman & Tyner for approximately $1 billion. [20][21][22]

Lightstone Capital

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Lightstone Capital, the firm's real estate debt platform, was established in 2018.[23] Since its launch, it has originated over $1.5 billion in transactions. The platform provides financing secured by real estate assets located in gateway markets.[24]

Lightstone REITs

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In 2006, the company offered a $300 million real estate investment trust, which allowed Lightstone to raise money from outside investors for the first time.[25] The non-traded Lightstone Value Plus REIT invested in office, retail, and other commercial properties, and by the end of 2009, was fully invested in a total of 30 properties. By the end of 2011, Lightstone Value Plus I was the 18th largest non-traded U.S. REIT.[26]

In the summer of 2010, the company offered second, non-traded REIT, Lightstone Value Plus II, committing capital to the hospitality, retail, multi-family, and commercial segments. The Lightstone Group committed 10% of the capital raised by the REIT.[27] By December 2011, LVPII had invested in several properties, including the Crowne Plaza Boston hotel, Saxon Hall Rego Park, and TownePlace Metairie hotel in New Orleans.[28]

Extended Stay Hotels

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The Lightstone Group acquired Extended Stay Hotels (now trading as Extended Stay America) in June 2007 from The Blackstone Group for US$8 billion.[29] The deal, financed with US$7 billion of debt, was one of several multibillion-dollar hotel and casino sales made that year.[30] On June 15, 2009, Extended Stay America filed for bankruptcy protection under Chapter 11.[31] After the Great Recession decimated leisure and business travel, Extended Stay faced shortages in liquidity stemming from the leveraged buyout by Lightstone two years before. Through debtor-in-possession financing, it was able to continue operating rather than to face liquidation.[31]

In July 2010, an investment consortium made up of Blackstone, Paulson & Co., and Centerbridge Partners bought Extended Stay America through a bankruptcy auction for US$3.93 billion.[32] After its successful reorganization, Extended Stay America emerged from bankruptcy in October 2010. A year after the bankruptcy, Blackstone was sued by creditors of Extended Stay America alleging that Blackstone "skimmed" US$2.1 billion off of the sale to Lightstone and knew that the amount of debt would have been unsustainable for the hotel chain; Blackstone settled the lawsuit in June 2013 for US$10 million.[33]

Affordable hotel investment

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In 2019, The Lightstone Group, a real estate investment management business, is gambling on inexpensive New York City hotel developments. The company has launched a Moxy Hotels catering chain to the business sliver and will operate two more shortly, the Moxy Lower East Side and Moxy Williamsburg.[34]

References

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  1. ^ "David Lichtenstein | Lightstone Group". The Real Deal New York. Retrieved 2021-01-05.
  2. ^ "David W Lichtenstein, Lightstone Group LLC: Profile and Biography". Bloomberg.com. Retrieved 2021-01-05.
  3. ^ "LEADERS Interview with Scott J. Avram, Senior Vice President, Development, Lightstone". www.leadersmag.com. Retrieved 2025-05-23.
  4. ^ Gould, Jennifer (2024-05-08). "This $20M NYC penthouse from 'Law & Order' can be yours". Retrieved 2025-05-23.
  5. ^ "What's selling on East End Avenue: Living on the Upper East Side's most tranquil avenue". www.cityrealty.com. Retrieved 2025-05-23.
  6. ^ Young, Michael (2020-02-28). "Construction Wraps for 40 East End Avenue on The Upper East Side". New York YIMBY. Retrieved 2025-05-23.
  7. ^ Cuozzo, Steve (2023-04-02). "Condo sales at 130 William provide residential resurgence downtown". Retrieved 2025-05-23.
  8. ^ auburnexaminer (2024-11-21). "Lightstone acquires Outlet Collection Seattle in Auburn for $82 million, plans $10 million upgrade". Auburn Examiner. Retrieved 2025-06-06.
  9. ^ November 26; 2024; Comments, 8:00AMDiana Firtea (2024-11-26). "Lightstone Pays $82M for Seattle-Area Mall | Urbanize Seattle". seattle.urbanize.city. Retrieved 2025-06-06. {{cite web}}: |last2= has numeric name (help)CS1 maint: numeric names: authors list (link)
  10. ^ Works, Amy (2024-11-25). "Lightstone Group Acquires Outlet Collection Seattle Shopping Mall for $82M". REBusinessOnline. Retrieved 2025-06-06.
  11. ^ Willard, Jack (2024-04-16). "Craig Buck appointed CEO of Converge US - Reinsurance News". ReinsuranceNe.ws. Retrieved 2025-06-06.
  12. ^ Siampani, Anna (2024-04-16). "Craig Buck Assumes CEO Role at Converge US". CEOWORLD magazine. Retrieved 2025-06-06.
  13. ^ "The best places to work in New York City for 2024". Crain's New York Business. Retrieved June 6, 2025. {{cite web}}: |first= missing |last= (help); Check |archive-url= value (help)
  14. ^ "New York's 100 Best Places to Work in 2023". Crain's New York Business. Retrieved June 6, 2025. {{cite web}}: Check |archive-url= value (help)
  15. ^ Trombola, Nick. "#55 Mitchell Hochberg and David Lichtenstein". Commercial Observer. Retrieved June 6, 2025. {{cite web}}: Check |archive-url= value (help)
  16. ^ "LEADERS Interview with Scott J. Avram, Senior Vice President, Development, Lightstone". www.leadersmag.com. Retrieved 2025-05-23.
  17. ^ "LEADERS Interview with Scott J. Avram, Senior Vice President, Development, Lightstone". www.leadersmag.com. Retrieved 2025-05-23.
  18. ^ "LEADERS Interview with Scott J. Avram, Senior Vice President, Development, Lightstone". www.leadersmag.com. Retrieved 2025-05-23.
  19. ^ "LEADERS Interview with Scott J. Avram, Senior Vice President, Development, Lightstone". www.leadersmag.com. Retrieved 2025-05-23.
  20. ^ "Lightstone More Than Doubles Detroit-Area Multifamily Portfolio". Connect CRE. Retrieved 2025-05-28.
  21. ^ "Lightstone Acquires 7,810 Units in Suburban Detroit". benefitspro.com. Retrieved 2025-05-28.
  22. ^ Harlow, Kristin (2021-12-03). "Lightstone Purchases 7,810-Unit Multifamily Portfolio in Suburban Detroit". REBusinessOnline. Retrieved 2025-05-28.
  23. ^ "NYC-based real estate debt platform plants flag in Dallas with new office". www.bizjournals.com. Retrieved 2025-05-23.
  24. ^ "Lightstone Capital Provides $18 Million Refinance Loan for Boutique Multifamily Building in Affluent New York City Suburb". MultifamilyBiz. 2021-10-08. Retrieved 2025-05-23.
  25. ^ Chittum, Ryan (July 20, 2005). "Big Real Estate Firm Thrives by Buying Struggling Properties". The Wall Street Journal.
  26. ^ "LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC". U.S. Securities and Exchange Commission.
  27. ^ Property Funds World, "Lightstone Plus REIT II Starts Operations," 4/10/09
  28. ^ "LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC - FORM 10-K". March 26, 2018.
  29. ^ "The Lightstone Group Closes $8 Billion Acquisition of Extended Stay Hotels From The Blackstone" (Press release). The Blackstone Group. Jun 12, 2007. Retrieved Dec 18, 2015.
  30. ^ "Lightstone to buy Extended Stay Hotels for $8 bln". Reuters. Apr 17, 2007. Retrieved Dec 18, 2015.
  31. ^ a b Nadgir, Santosh (Jun 15, 2009). "Debt-strapped Extended Stay files for bankruptcy". Reuters. Retrieved Dec 20, 2015.
  32. ^ Emery, Chelsea (Jul 20, 2010). "US judge backs Extended Stay's reorganization plan". Reuters. Retrieved Dec 20, 2015.
  33. ^ Hals, Tom (Jun 20, 2013). "Blackstone settles Extended Stay lawsuit for $10 million". Reuters. Retrieved Dec 20, 2015.
  34. ^ Brown, Mariah (29 October 2019). "The Lightstone Group Bets on Affordable Hotels Against Market Slowdown". Globest. Retrieved 1 May 2020.
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