Lightstone has launched a direct real estate investing platform for accredited investors looking for a higher pedigree manager. . For investors who are facing an uncertain environment and looking for a partner that balances rigor with direct access, Lightstone DIRECT is a compelling proposition with scale, transparency, and alignment that can be lacking on other platforms.
Introducing Lightstone DIRECT
Lightstone is not new to real estate. The firm has been developing, owning, and operating property since 1986. The innovation is in the delivery model. Lightstone DIRECT is making this institutional machinery available to individuals, offering qualified investors the chance to sit at the same table that, until now, was effectively off-limits to all but giants like pension funds and endowments. The difference is about more than mere access, it’s about creating direct, meaningful relationships where investor and manager are truly aligned.
From Single Asset to $12 Billion Portfolio
Lightstone grew out of the investing success of David Lichtenstein, a multi-billionaire and visionary real estate investor. Over nearly four decades, the firm has institutionalized while maintaining a nimble approach and creative edge. Lightstone's portfolio is now valued at around $12 billion, with more than 25,000 residential units, 12 million square feet of industrial space, 3,100 hotel keys, retail, office, and life science properties. The breadth and national reach is paired with vertical integration – Lightstone controls all phases of the investment lifecycle: acquisitions, development, operations, property management, and asset management are all under one roof.
Just as notable, Lightstone achieved this scale without significant LP participation l for most of its life. This autonomy kept the company nimble, as it weathered every real estate cycle since the 1980s such as the savings and loan crisis, the dot-com recession, the 2008 financial crisis, and the pandemic years. This cycle-tested approach, tested over decades, adds a level of practical wisdom and discipline not typically seen in the dispersed landscape of private real estate investments.
Renderings of 130 William, a Lightstone-developed luxury residential project in New York City
Why Real Estate, and Why Now?
Private-market real estate remains underweighted in individual portfolios, particularly compared to institutions that habitually allocate 10–20% of their portfolios to it. Why? Absence of trusted access, fee-heavy structures introduced by intermediaries, and misalignment risk between capital providers and operators. Many investment platforms that promised democratization through crowdfunding have instead disillusioned investors with superficial due diligence, overly optimistic projections, and multi-layered fee structures that can erode returns.
On the other hand, private real estate in the right hands has a proven track record of delivering risk-adjusted returns, durable income, and true diversification benefits. In spite of the economic uncertainties of today, the asset class is viewed by many as a buffer to volatility on account of its low correlation with public markets and its inflation-protective income streams.
Why is Lightstone Worth Considering?
In a real estate market dominated by generic funds and crowded platforms, Lightstone offers something refreshingly uncommon: direct, transparent access to deals that put investors side-by-side with the experts who built the portfolio.
Direct-to-Sponsor Access, No Middlemen
Lightstone DIRECT cuts out the middlemen and opacity of crowdfunding sites and private fund structures. Investors deal directly with Lightstone, investing in the same distinct assets that Lightstone pursues with its own capital. The site provides a genuine partnership. A single deal is shared by all investors together with the firm’s principals, who have direct lines of communication and a flat, single-layered structure.
Co-Investment and Real Skin in the Game
Lightstone doesn’t just request external capital, it coinvests a minimum of 20% of the equity in every Lightstone DIRECT transaction. This level of alignment is rare. Most managers only make a token co-investment. And, in the case of third-party syndication platforms, the platform itself typically makes zero co-investment. The Lightstone DIRECT model is an indication of confidence in the opportunity, Lightstone’s management would gain or lose directly alongside its investors.
Institutional Scale, Individual Access
With $12 billion in assets and decades of operating history, Lightstone delivers the reach and scale of an institutional investor to individual partners. The portfolio spans multifamily housing, industrial warehouses, hospitality, and select high-growth markets backed by over 500 professionals nationwide. For new investors or veterans, this opens up exposure to quality, diversification, and sourcing capabilities few “direct” channels can offer.
Vertically Integrated Operations
Sourcing and acquiring through developing and managing, Lightstone tightly controls all elements of the investment process. This structure can reduce “fee leakage” and misaligned incentives that occur when there are too many hands on a project. Investors benefit from unfiltered feedback, direct communication to the decision-makers, and more transparency with regard to performance metrics, cash flows, and strategy.
Deal-by-Deal Option, Not Blind Pools
Rather than blind-pooling investor capital into a mix of assets, Lightstone DIRECT provides access to carefully selected single-asset opportunities. Investors can choose which opportunities to invest in, enhancing control and allowing more intentional, thoughtful allocation decisions without being locked into redemption timelines or over-diversified mega-funds that dilute performance.
Multifamily and Industrial Sector Focus
Today’s market is characterized by development pipelines tightening, ongoing demand for rentals, and growth in logistics, last-mile fulfillment, and other specialized industrial assets. Lightstone targets assets with the strongest fundamentals: multifamily in supply-constrained metros, warehouses benefiting from e-commerce and supply chain reconfiguration. Given Lightstone's breadth and scale, the platform has the potential to offer other timely CRE asset classes in the future. . Lightstone DIRECT brings investors a diversified approach: responding to evolving market conditions while prioritizing sectors prized for stable cash flow and long-term resilience.
Real Human Partnership
At Lightstone, each investor is also assigned an experienced investor relations representative. No ticket queues or AI bots. No middleman between the investor and the ultimate sponsor of the deal. Lightstone, significantly co-invested alongside individual LPs, sees itself as a true steward of capital.
Addressing the Pitfalls of Crowdfunding and Aggregators
Crowdfunding initially promised access but stumbled over execution. Opaque fee stacks, under-vetted sponsors, and a lack of post-investment stewardship became all too common, giving rise to high-profile scandals and calls for reform. Aggregator models, such as private REITs, offer diversification but do not bring the end investor the same level of control or transparency.
- Lightstone’s direct model bridges these deficiencies:
- With a 20%+ coinvestment in each deal, Lightstone DIRECT investors can have confidence that Lightstone is staking considerable capital in the same deals.
- A strong track record is at the center. The company has weathered market shocks and realized a 25%+ IRR since 2004 on realized investments.
- With Lightstone’s in-house, hands-on methodology, investors have access in real time to property performance metrics, rental trends, and operational statistics, instead of summary reports from an arm’s-length third party.
Why Now? The Unique Timeliness of Lightstone's Launch
Market cycles ultimately separate the disciplined from the merely fortunate. After a long bull market and several moments of acute dislocation, opportunity exists but experience and prudence matter more than ever. The current environment, with selective liquidity and a focus on disciplined underwriting, is exactly when this model may prove most valuable to individual investors – alignment with a battle-tested team, with plenty of skin in the game and a track record that spans decades.
By opening its doors to individual investors, with significant co-investment in the same assets, Lightstone DIRECT introduces institutional-grade opportunity and discipline into a market hungry for both.
For the more advanced investors looking to deploy their capital with transparency, control, and true partnership, Lightstone DIRECT deserves more than a glance. It’s a seat at a table that, until now, was reserved for the privileged few.
All investments involve risk. Past performance does not guarantee future results. Please visit lightstonedirect.com for a full set of disclosures.
