----

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**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**Washington,      D. C. 20549 **

----

**FORM      10-Q **

| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

| ** ̈** | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**(Exact      Name of Registrant as Specified in Its Charter) **

| **Maryland**                                                                                        |    | **20-1237795**                                                            |
|-----------------------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------------|
| **(State                or Other Jurisdiction of****Incorporation                or Organization)** |    | **(I.R.S.                Employer****Identification                No.)** |

|                                                        |         |                          |
|-------------------------------------------------------------|--------------|-------------------------------|
| **326                Third Street**                         |    |                          |
| **Lakewood,                New Jersey**                     |    | **08701**                     |
| **(Address                of Principal Executive Offices)** |    | **(Zip                Code)** |

**(732)      367-0129**

**(Registrant’s      Telephone Number, Including Area Code) **

----

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**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**INDEX      **

|                   |    |                                                                                                                                                 |    | **Page** |
|------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------|
| **PART I**        |    | **FINANCIAL                INFORMATION**                                                                                                             |    |     |
|                   |         |                                                                                                                                                 |
| Item 1.           |    | Financial                Statements                                                                                                                  |    |     |
|                   |         |                                                                                                                                                 |
|                   |    | Consolidated                Balance Sheets as of June 30, 2006 (unaudited) and December 31,                2005                                      |         | 3        |
|                   |         |                                                                                                                                                 |
|                   |    | Consolidated                Statements of Income (unaudited) for the Three and Six Months Ended                June                30, 2006 and 2005 |    | 4        |
|                   |         |                                                                                                                                                 |         |     |
|                   |         | Consolidated                Statement of Stockholders’ Equity (unaudited) for the Six Months Ended                June 30, 2006                |         | 5        |
|                   |         |                                                                                                                                                 |         |     |
|                   |         | Consolidated                Statements of Cash Flows (unaudited) for the Six Months ended June                30,                2006 and 2005       |         | 6        |
|                   |         |                                                                                                                                                 |
|                   |    | Notes                to Consolidated Financial Statements                                                                                            |    | 7        |
|                   |         |                                                                                                                                                 |
| Item 2.           |    | Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                            |    | 17       |
|                   |         |                                                                                                                                                 |
| Item 3.           |    | Quantitative                and Qualitative Disclosures About Market Risk                                                                            |    | 22       |
|                   |         |                                                                                                                                                 |
| Item 4.           |    | Controls                and Procedures                                                                                                               |    | 22       |
|                   |         |                                                                                                                                                 |
| **PART II**       |    | **OTHER                INFORMATION**                                                                                                                 |    |     |
|                   |         |                                                                                                                                                 |
| Item                1. |    | Legal                Proceedings                                                                                                                     |    | 23       |
|                   |         |                                                                                                                                                 |
| Item                2. |    | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                           |    | 23       |
|                   |         |                                                                                                                                                 |
| Item                3. |    | Defaults                Upon Senior Securities                                                                                                       |    | 24       |
|                   |         |                                                                                                                                                 |
| Item                4. |    | Submission                of Matters to a Vote of Security Holders                                                                                   |    | 24       |
|                   |         |                                                                                                                                                 |
| Item                5. |    | Other                Information                                                                                                                     |    | 24       |
|                   |         |                                                                                                                                                 |
| Item                6. |    | Exhibits                                                                                                                                             |    | 25       |

----

**PART      I. FINANCIAL INFORMATION: **

**ITEM      1. FINANCIAL STATEMENTS. **

**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**CONSOLIDATED      BALANCE SHEETS**

|                                                                                                                                                                            |   | **June                  30, 2006 **  |       | **December                  31, 2005**  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|---------------------------------------------------|--------|
| ***Assets***                                                                                                                                                                    |   | (UNAUDITED)                                         |       |                                              |   |
| Investment                  property:                                                                                                                                           |   |                                                |       |                                              |   |
| Land                                                                                                                                                                            |   | $                                                   | 13,435,415 |                                              | $      | - |   |
| Building                                                                                                                                                                        |   |                                                | 56,189,023 |                                              |   | - |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
|                                                                                                                                                                            |   |                                                | 69,624,438 |                                              |   | - |   |
| Less                  accumulated depreciation                                                                                                                                  |   |                                                | (141,585   | )                                                 |   | - |   |
| Net                  investment property                                                                                                                                        |   |                                                | 69,482,853 |                                              |   | - |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
| Cash                                                                                                                                                                            |   |                                                | 3,263,167  |                                              |   | 205,030 |   |
| Restricted                  escrows                                                                                                                                             |   |                                                | 6,042,700  |                                              |   | - |   |
| Due                  from escrow agent                                                                                                                                          |   |                                                | 608,582    |                                              |   | - |   |
| Tenant                  accounts receivable                                                                                                                                     |   |                                                | 220,142    |                                              |   | - |   |
| Acquired                  in-place lease intangibles (net of accumulated amortization of                  $39,557 and                  $0, respectively)                        |   |                                                | 1,399,661  |                                              |   | - |   |
| Deferred                  financing costs (net of accumulated amortization of $4,862 and                  $0,                  respectively)                                    |   |                                                | 418,440    |                                              |   | - |   |
| Deferred                  offering costs                                                                                                                                        |   |                                                | -          |                                              |   | 225,966 |   |
| Prepaid                  real estate taxes                                                                                                                                      |   |                                                | 689,358    |                                              |   | - |   |
| Prepaid                  insurance and other assets                                                                                                                             |   |                                                | 224,308    |                                              |   |   |   |
| **Total                  Assets**                                                                                                                                               |   | $                                                   | 82,349,211 |                                              | $      | 430,996 |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
| ***Liabilities                  and Stockholders' Equity***                                                                                                                     |   |                                                |       |                                              |   |   |   |
| Mortgages                  payable                                                                                                                                              |   | $                                                   | 67,975,000 |                                              | $      | - |   |
| Accounts                  payable and accrued expenses                                                                                                                          |   |                                                | 581,839    |                                              |   | 37,511 |   |
| Tenant                  allowances and deposits payable                                                                                                                         |   |                                                | 305,084    |                                              |   | - |   |
| Accrued                  real estate taxes                                                                                                                                      |   |                                                | 309,767    |                                              |   | - |   |
| Distributions                  payable                                                                                                                                          |   |                                                | 152,580    |                                              |   | - |   |
| Prepaid                  rental revenues                                                                                                                                        |   |                                                | 123,517    |                                              |   | - |   |
| Acquired                  below market lease intangibles (net of accumulated amortization                  of                  $168,176 and $0, respectively)                   |   |                                                | 420,632    |                                              |   |   |   |
| Due                  to affiliate                                                                                                                                               |   |                                                | 66,922     |                                              |   | 309,056 |   |
|                                                                                                                                                                            |   |                                                | 69,935,341 |                                              |   | 346,567 |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
| Minority                  interest in partnership                                                                                                                               |   |                                                | 1,268,668  |                                              |   | 836 |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
| Commitments                  and contingencies                                                                                                                                  |   |                                                |       |                                              |   |   |   |
|                                                                                                                                                                            |   |                                                |       |                                              |   |   |   |
| Stockholders'                  equity:                                                                                                                                          |   |                                                |       |                                              |   |   |   |
| Preferred                  shares, 10,000,000 shares authorized, none outstanding                                                                                               |   |                                                | -          |                                              |   | - |   |
| Common                  stock, $.01 par value; 60,000,000 shares authorized, 1,273,428                  and 20,000                  shares issued and outstanding, respectively |   |                                                | 12,734     |                                              |   | 200 |   |
| Additional                  paid-in-capital                                                                                                                                     |   |                                                | 11,414,256 |                                              |   | 199,800 |   |
| Accumulated                  distributions in addition to net loss                                                                                                              |   |                                                | (281,788   | )                                                 |   | (116,407 | ) |
| Total                  stockholder’s equity                                                                                                                               |   |                                                | 11,145,202 |                                              |   | 83,593 |   |
| **Total                  Liabilities and Stockholders' Equity**                                                                                                                 |   | $                                                   | 82,349,211 |                                              | $      | 430,996 |   |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED: **

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**CONSOLIDATED      STATEMENTS OF INCOME**

**(UNAUDITED)      **

|                                                                                                      |   | **Three                  Months****Ended****June                  30, 2006**  |      | **Three                  Months****Ended****June                  30, 2005**  |   | **Six                  Months****Ended****June                  30, 2006**  |   | **Six                  Months****Ended****June                  30, 2005**  |      |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|-----------|------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|-----------|
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |
| Revenues:                                                                                                 |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |
| Rental                  income                                                                            |   | $                                                                                  | 979,398   |                                                                               | $      | -                                                                                |   | $                                                                                | 988,698   |   | $ | - |   |
| Tenant                  recovery income                                                                   |   |                                                                               | 499,912   |                                                                               |   | -                                                                                |   |                                                                             | 503,423   |   |   | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
|                                                                                                      |   |                                                                               | 1,479,310 |                                                                               |   | -                                                                                |   |                                                                             | 1,492,121 |   |   | - |   |
| Expenses:                                                                                                 |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Property                  operating expenses                                                              |   |                                                                               | 486,730   |                                                                               |   | -                                                                                |   |                                                                             | 495,521   |   |   | - |   |
| Real                  estate taxes                                                                        |   |                                                                               | 159,498   |                                                                               |   | -                                                                                |   |                                                                             | 161,139   |   |   | - |   |
| General                  and administrative costs                                                         |   |                                                                               | 159,911   |                                                                               |   | -                                                                                |   |                                                                             | 255,688   |   |   | - |   |
| Depreciation                  and amortization                                                            |   |                                                                               | 184,484   |                                                                               |   | -                                                                                |   |                                                                             | 186,005   |   |   | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
|                                                                                                      |   |                                                                               | 990,623   |                                                                               |   | -                                                                                |   |                                                                             | 1,098,353 |   |   | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Operating                  income                                                                         |   |                                                                               | 488,687   |                                                                               |   | -                                                                                |   |                                                                             | 393,768   |   |   | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Other                  income                                                                             |   |                                                                               | 58,643    |                                                                               |   | -                                                                                |   |                                                                             | 68,030    |   |   | - |   |
| Interest                  expense                                                                         |   |                                                                               | (431,232  | )                                                                                  |   | -                                                                                |   |                                                                             | (435,895  | ) |   | - |   |
| Minority                  interest                                                                        |   |                                                                               | (38       | )                                                                                  |   | -                                                                                |   |                                                                             | (4        | ) |   | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Net                  income applicable to common shares                                                   |   | $                                                                                  | 116,060   |                                                                               | $      | -                                                                                |   | $                                                                                | 25,899    |   | $ | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Net                  income per common share, basic and diluted                                           |   | $                                                                                  | 0.13      |                                                                               | $      | -                                                                                |   | $                                                                                | 0.05      |   | $ | - |   |
|                                                                                                      |   |                                                                               |      |                                                                               |   |                                                                             |   |                                                                             |      |   |   |   |   |
| Weighted                  average number of common shares outstanding, basic and                  diluted |   |                                                                               | 895,323   |                                                                               |   | 20,000                                                                           |   |                                                                             | 571,656   |   |   | 20,000 |   |

----

**PART      I. FINANCIAL INFORMATION: **

**ITEM      1. FINANCIAL STATEMENTS. **

**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**CONSOLIDATED      STATEMENT OF STOCKHOLDERS’ EQUITY**

**(UNAUDITED)**

|                                                             |   | Preferred                  Shares |   | **Common                  Shares** |   | **Additional****Paid-In****Capital** |   | **Accumulated****Distributions****in                  Excess of****Net                  Income** |      | **Total****Stockholders'****Equity** |   |
|------------------------------------------------------------------|--------|-----------------------------------|--------|------------------------------------|--------|--------------------------------------|--------|--------------------------------------------------------------------------------------------------|-----------|--------------------------------------|--------|
|                                                             |   | **Preferred****Shares**           |   | **Amount**                         |   | **Common****Shares**                 |   | **Amount**                                                                                       |      |
| **BALANCE,                  December 31, 2005**             |   |                              | -      |                               | $      | -                                    |   |                                                                                             | 20,000    |                                 | $      | 200 |   | $ | 199,800 |   | $ | (116,407 | ) | $ | 83,593 |   |
| Net                  income                                      |   |                              | -      |                               |   | -                                    |   |                                                                                             | -         |                                 |   | - |   |   | - |   |   | 25,899 |   |   | 25,899 |   |
| Distributions                  declared                          |   |                              |   |                               |   |                                 |   |                                                                                             |      |                                 |   |   |   |   |   |   |   | (191,280 | ) |   | (191,280 | ) |
| Proceeds                  from offering                          |   |                              | -      |                               |   | -                                    |   |                                                                                             | 1,251,687 |                                 |   | 12,517 |   |   | 12,465,756 |   |   | - |   |   | 12,478,273 |   |
| Selling                  commissions and dealer manager fees     |   |                              | -      |                               |   | -                                    |   |                                                                                             | -         |                                 |   | - |   |   | (1,014,262 | ) |   | - |   |   | (1,014,262 | ) |
| Other                  offering costs                            |   |                              | -      |                               |   | -                                    |   |                                                                                             | -         |                                 |   | - |   |   | (253,565 | ) |   | - |   |   | (253,565 | ) |
| Proceeds                  from distribution reinvestment program |   |                              |   |                               |   |                                      |   |                                                                                             | 1,741     |                                 |   | 17 |   |   | 16,527 |   |   | - |   |   | 16,544 |   |
| **BALANCE,                  June 30, 2006**                      |   |                              | -      |                               | $      | -                                    |   |                                                                                             | 1,273,428 |                                 | $      | 12,734 |   | $ | 11,414,256 |   | $ | (281,788 | ) | $ | 11,145,202 |   |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**LIGHTSTONE      VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**(UNAUDITED)      **

|                                                                                                                |   | **Six                  Months****Ended****June                  30, 2006**  |        | **Six                  Months****Ended****June                  30, 2005**  |   |
|---------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------|--------|
|                                                                                                                |   |                                                                             |        |                                                                             |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                                          |   |                                                                             |        |                                                                             |   |
| Net                  income                                                                                         |   | $                                                                                | 25,899      |                                                                             | $      | - |   |
| Loss                  allocated to minority interests                                                               |   |                                                                             | 4           |                                                                             |   | - |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities: |   |                                                                             |        |                                                                             |   |   |   |
| Depreciation                  and amortization                                                                 |   |                                                                             | 141,585     |                                                                             |   | - |   |
| Amortization                  of deferred financing costs                                                      |   |                                                                             | 4,862       |                                                                             |   | - |   |
| Amortization                  of above and below-market lease intangibles                                      |   |                                                                             | (128,619    | )                                                                                |   | - |   |
| Changes                  in assets and liabilities:                                                            |   |                                                                             |        |                                                                             |   |   |   |
|  Increase                  in prepaid real estate taxes                                                        |   |                                                                             | (689,358    | )                                                                                |   | - |   |
|  Increase                  in prepaid insurance and other assets                                               |   |                                                                             | (224,308    | )                                                                                |   |   |   |
|  Increase                  in tenant accounts receivable                                                       |   |                                                                             | (220,142    | )                                                                                |   |   |   |
|  Increase                  in real estate taxes payable                                                        |   |                                                                             | 309,767     |                                                                             |   | - |   |
|  Increase                  in tenant allowance and securities deposits payable                                 |   |                                                                             | 305,084     |                                                                             |   | - |   |
|  Increase                  in accounts payable and accrued expenses                                            |   |                                                                             | 544,328     |                                                                             |   | - |   |
|  Increase                  in prepaid rental revenue                                                           |   |                                                                             | 123,517     |                                                                             |   |   |   |
| Net                  cash provided by operating activities                                                          |   |                                                                             | 192,619     |                                                                             |   | - |   |
|                                                                                                                |   |                                                                             |        |                                                                             |   |   |   |
| **CASH                  FLOWS USED IN INVESTING ACTIVITIES:**                                                       |   |                                                                             |        |                                                                             |   |   |   |
| Purchase                  of investment property, net                                                          |   |                                                                             | (70,474,848 | )                                                                                |   | - |   |
| Restricted                  escrows                                                                            |   |                                                                             | (6,042,700  | )                                                                                |   | - |   |
| Net                  cash used in investing activities                                                              |   |                                                                             | (76,517,548 | )                                                                                |   | - |   |
|                                                                                                                |   |                                                                             |        |                                                                             |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                                          |   |                                                                             |        |                                                                             |   |   |   |
| Proceeds                  form mortgage financing                                                                   |   |                                                                             | 67,975,000  |                                                                             |   | - |   |
| Payment                  of loan fees and expenses                                                                  |   |                                                                             | (423,302    | )                                                                                |   | - |   |
| Proceeds                  from issuance of common stock                                                             |   |                                                                             | 12,478,273  |                                                                             |   | - |   |
| Proceeds                  from issuance of special general partnership units                                        |   |                                                                             | 1,267,827   |                                                                             |   | - |   |
| Payment                  of offering costs                                                                          |   |                                                                             | (1,041,861  | )                                                                                |   | - |   |
| Increase                  in amounts due from escrow agent                                                          |   |                                                                             | (608,582    | )                                                                                |   |   |   |
| Increase                  (decrease) in amounts due to affiliates, net                                              |   |                                                                             | (242,134    | )                                                                                |   | 49,265 |   |
| Distributions                  paid                                                                                 |   |                                                                             | (22,155     | )                                                                                |   | - |   |
| Net                  cash provided by financing activities                                                          |   |                                                                             | 79,383,066  |                                                                             |   | 49,265 |   |
|                                                                                                                |   |                                                                             |        |                                                                             |   |   |   |
| **Net                  change in cash**                                                                             |   |                                                                             | 3,058,137   |                                                                             |   | 49,265 |   |
| **Cash,                  beginning of period**                                                                      |   |                                                                             | 205,030     |                                                                             |   | 205,489 |   |
|                                                                                                                |   |                                                                             |        |                                                                             |   |   |   |
| **Cash,                  end of period**                                                                            |   | $                                                                                | 3,263,167   |                                                                             | $      | 254,754 |   |
|                                                                                                                |   |                                                                             |        |                                                                             |   |   |   |
| **Supplemental                  disclosure of cash flow information:**                                              |   |                                                                             |        |                                                                             |   |   |   |
| Cash                  paid for interest                                                                             |   | $                                                                                | 340,780     |                                                                             | $      | - |   |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**1.      **
***Organization***
** **

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

***1.      Organization (continued):***

**2.      **
***Summary      of Significant Accounting Policies***
** **

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**2.      **
***Summary      of Significant Accounting Policies (continued):***

*Accounting      for Acquisitions *

*Carrying      Value of Assets*

*Impairment      Evaluation*

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**2.      **
***Summary      of Significant Accounting Policies (continued):***

*Depreciation      and Amortization*

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**2.      **
***Summary      of Significant Accounting Policies (continued):***

**3.      **
***Acquisitions***

*St      Augustine Retail Outlet Mall*

|                                        |   | ** 2006** | ** ** | ** 2007** | ** ** | ** 2008** | ** ** | ** 2009** | ** ** | ** 2010** | ** ** | **Thereafter** | ** ** | **Total** |    |
|---------------------------------------------|--------|----------------|------------|----------------|------------|----------------|------------|----------------|------------|----------------|------------|----------------|------------|-----------|---------|
| Fixed                Future Minimum Rentals |   | $              | 875,508    |           | $          | 1,630,402      |       | $              | 1,185,878  |           | $          | 791,641        |       | $         | 213,897 |   | $ | 42,624 |   | $ | 4,739,950 |   |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

** **

**3.      **
***Acquisitions,      continued:***

*Southeastern      Michigan Multi-Family Properties*

|                                |   |   |    |
|-------------------------------------|--------|--------|---------|
| In-Place                Rents, Net  |   | $      | 679,126 |   |
| Occupancy                Percentage |   |   | 92.0    | % |

|                                                         |   | **Six                      Months Ended****June                      30,** |       |
|--------------------------------------------------------------|--------|----------------------------------------------------------------------------|------------|
|                                                         |   | **2006**                                                                   | ** ** | **2005** |   |
| Real                  estate revenues                        |   | $                                                                          | 7,034,919  |   | $ | 7,010,034 |   |
| Net                  income (loss)                           |   | $                                                                          | 314,611    |   | $ | (149,588 | ) |
| Basic                  and Diluted earnings (loss) per share |   | $                                                                          | 0.35       |   | $ | (0.16 | ) |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

** **

**4.      **
***Mortgages      Payable***
** **

|                                |   | **2006   ** | ** ** | **2007   ** | ** ** | **2008   ** | ** ** | **2009   ** | ** ** | **2010   ** | ** ** | **Thereafter**   |   |
|-------------------------------------|--------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|--------|
| Fixed                rate mortgages |   | $                          | -          |                       | $          | 244,904                    |       | $                          | 344,388    |                       | $          | 365,957                    |   | $ | 388,876 |   | $ | 66,630,875 |   |

**5**
***.      Distributions Payable***

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**6.      **
***Related      Party Transactions***
** **

| **Fees                /****Compensation** |    | **Amount**                                                                                                                                                                                                                                                                                                                                                         |
|-------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |         |                                                                                                                                                                                                                                                                                                                                                               |
| Selling                Commission         |    | The                Dealer Manager will be paid up to 7% of the gross offering proceeds                before                reallowance of commissions earned by participating broker-dealers.                Selling                commissions are expected to be approximately $21,000,000 if the maximum                offering of 30 million shares is sold. |
|                                      |         |                                                                                                                                                                                                                                                                                                                                                               |
| Soliciting                Dealer Warrants |    | The                Dealer Manager may buy up to 600,000 warrants at a purchase price                of                $.0008 per warrant. Each warrant will be exercisable for one share                of the                Company’s common stock at an exercise price of $12.00 per                share.                                                |

| Dealer                Management Fee              |         | The                Dealer Manager will be paid up to 1% of gross offering proceeds before                reallowance to participating broker-dealers. The estimated dealer                management fee is expected to be approximately $3,000,000 if the                maximum                offering of 30 million shares is sold.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Reimbursement                of Offering Expenses |         | All                offering costs, including the commissions and dealer management fees                indicated above, are estimated at approximately $30 million if the                maximum                offering of 30 million shares is sold. The Company will sell a special                general partnership interest in the Operating Partnership to Lightstone                SLP, LLC (an affiliate of the Sponsor) and apply all the sales proceeds                to                reimburse offering costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                              |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Reimbursement                of Other Expenses    |         | The                Advisor or its affiliates will be reimbursed for expenses that may                include                costs of goods and services, administrative services and non-supervisory                services performed directly for the Company by independent                parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                              |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| Acquisition                Fee                    |    | The                Advisor will be paid an acquisition fee equal to 2.75% of the gross                contract purchase price (including any mortgage assumed) of each                property                purchased. The Advisor will also be reimbursed for expenses that                it incurs                in connection with the purchase of a property. The Company anticipates                that acquisition expenses will be between 1% and 1.5% of a property’s                purchase price, and acquisition fees and expenses are capped at 5%                of the                gross contract purchase price of a property. The actual amounts of                these                fees and reimbursements depend upon results of operations and, therefore,                cannot be determined at the present time. However, $33,000,000 may                be paid                as an acquisition fee and for the reimbursement of acquisition expenses                if                the maximum offering is sold, assuming aggregate long-term permanent                leverage of approximately 75%. |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**6.      **
***Related      Party Transactions (continued):***

| **Fees                /****Compensation**                                 |    | **Amount**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Property                Management -*Residential                / Retail* |         | The                Property Manager will be paid a monthly management fee of up to 5%                of the                gross revenues from residential and retail properties. In addition,                the                Company may pay the Property Manager a separate fee for the one-time                initial rent-up or leasing-up of newly constructed properties in                an amount                not to exceed the fee customarily charged in arm’s length transactions by                others rendering similar services in the same geographic area for                similar                properties as determined by a survey of brokers and agents in such                area.                                 |
|                                                                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Property                Management -*Office                / Industrial*  |         | The                Property Manager will be paid monthly property management and leasing                fees                of up to 4.5% of gross revenues from office and industrial properties.                In                addition, the Company may pay the Property Manager a separate fee                for the                one-time initial rent-up or leasing-up of newly constructed properties                in                an amount not to exceed the fee customarily charged in arm’s length                transactions by others rendering similar services in the same geographic                area for similar properties as determined by a survey of brokers                and                agents in such area. |
|                                                                      |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Asset                Management Fee                                       |         | The                Advisor or its affiliates will be paid an asset management fee of                0.55% of                the Company’s average invested assets, as defined, payable quarterly in an                amount equal to 0.1375 of 1% of average invested assets as of the                last day                of the immediately preceding quarter.                                                                                                                                                                                                                                                                                                                                                                                   |

** **
** **
** **
** **

| **Operating                Stage****Distributions** |                     | **Amount                of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 7%                Stockholder Return Threshold      |                     | Once                a cumulative non-compounded return of 7% per year is realized by                stockholders on their net investment, Lightstone SLP, LLC will receive                available distributions from the Operating Partnership until it has                received an amount equal to a cumulative non-compounded return of                7% per                year on the purchase price of the special general partner interests.“Net                investment” refers to $10 per share, less a pro rata share of any proceeds                received from the sale or refinancing of the Company’s                assets. |
|                                                |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 12%                Stockholder Return Threshold     |      | Once                a cumulative non-compounded return of 12% per year is realized by                stockholders on their net investment (including amounts equaling                a 7%                return on their net investment as described above), 70% of the aggregate                amount of any additional distributions from the Operating Partnership                will                be payable to the stockholders, and 30% of such amount will be payable                to                Lightstone SLP, LLC.                                                                                                                                |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      1. FINANCIAL STATEMENTS, CONTINUED:**

**6.      **
***Related      Party Transactions (continued):***

| **Operating                Stage****Distributions** |   | **Amount                of Distribution**                                                                                                                                                                                                                                                                                                             |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                |   |                                                                                                                                                                                                                                                                                                                                                  |
| Returns                in Excess of 12%             |   | After                the 12% return threshold is realized by stockholders and Lightstone                SLP,                LLC, 60% of any remaining distributions from the Operating Partnership                will be distributable to stockholders, and 40% of such amount will                be                payable to Lightstone SLP, LLC. |

** **
** **
** **

| **Liquidating                Stage****Distributions** |                     | **Amount                of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |                     |
| 7%                Stockholder Return Threshold        |      | Once                stockholders have received liquidation distributions, and a cumulative                non-compounded 7% return on their initial net investment, Lightstone                SLP,                LLC will receive available distributions until it has received an                amount                equal to its initial purchase price of the special general partner                interests plus a cumulative non-compounded return of 7% per                year.                                                                   |
|                                                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 12%                Stockholder Return Threshold       |      | Once                stockholders have received liquidation distributions, and a cumulative                non-compounded return of 12% per year on their initial net investment                (including amounts equaling a 7% return on their net investment as                described above), 70% of the aggregate amount of any additional                distributions from the Operating Partnership will be payable to the                stockholders, and 30% of such amount will be payable to Lightstone                SLP,                LLC. |
|                                                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Returns                in Excess of 12%               |                     | After                stockholders and Lightstone LP, LLC have received liquidation                distributions, and a cumulative non-compounded return of 12% per                year on                their initial net investment, 60% of any remaining distributions                from the                Operating Partnership will be distributable to stockholders, and                40% of                such amount will be payable to Lightstone SLP,                LLC.                                                                     |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS. **

**Forward-Looking      Statements **

**Overview      **

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS, CONTINUED:**

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS, CONTINUED:**

**Liquidity      and Capital Resources**

|                           |   | **2006   ** | ** ** | **2007   ** | ** ** | **2008   ** |   | **2009   ** | ** ** | **2010   ** | ** ** | **Thereafter**   |   |
|--------------------------------|--------|----------------------------|------------|----------------------------|------------|----------------------------|--------|----------------------------|------------|----------------------------|------------|----------------------------|--------|
| Fixed                rate debt |   | $                          | -          |                       | $          | 244,904                    |   | $                          | 344,388    |                       | $          | 365,957                    |   | $ | 388,876 |   | $ | 66,630,875 |   |

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS, CONTINUED: **

**Critical      Accounting Policies**

**Results      of Operations**

*Comparison      of the three months ended June 30, 2006 versus the three months ended June      30,      2005*

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS, CONTINUED: **

**Results      of Operations (continued):**

*Comparison      of the six months ended June 30, 2006 versus the three months ended June 30,      2005*

----

**PART      I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM      3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

|                                |   | **2006   ** | ** ** | **2007   ** | ** ** | **2008   ** | ** ** | **2009   ** | ** ** | **2010   ** | ** ** | **Thereafter**   |   |
|-------------------------------------|--------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|------------|----------------------------|--------|
| Fixed                rate mortgages |   | $                          | -          |                       | $          | 244,904                    |       | $                          | 344,388    |                       | $          | 365,957                    |   | $ | 388,876 |   | $ | 66,630,875 |   |

**ITEM      4. CONTROLS AND PROCEDURES. **

----

**PART      II. OTHER INFORMATION: **

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

| **Type                  of Expense Amount   **                                                                                                                                |   | **Amount** |      | **Estimated                  /****Actual** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|-----------|--------------------------------------------|--------|
| Underwriting                  discounts and commissions                                                                                                                                 |   | $          | 1,014,262 |                                       |   | Actual |   |
| Finders’                  fees                                                                    |   |       | -         |                                       |   |   |   |
| Expenses                  paid to or for underwriters                                                                                                                         |   |       | -         |                                       |   |   |   |
| Other                  expenses to affiliates                                                      |   |       | -         |                                       |   |   |   |
| Other                  expenses paid to non-affiliates                                                                      |   |       | 253,565   |                                       |   | Actual |   |
| **Total                  expenses                                  **                                        |   | $          | 1,267,827 |                                       |   |   |   |

----

**PART      II. OTHER INFORMATION, CONTINUED: **

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS,      CONTINUED**

| **Type                  of Expense Amount                          **                                                                                                            |   | **Amount** |       | **Estimated                  /****Actual** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|------------|--------------------------------------------|--------|
| Construction                  of plant, building and facilities                                                                               |   | $          | -          |                                       |   |   |   |
| Purchase                  of real estate interests                                                                                                                                         |   |       | 9,106,429  |                                       |   | Actual |   |
| Acquisition                  of other businesses                                                                                                   |   |       | -          |                                       |   |   |   |
| Repayment                  of indebtedness                                                                           |   |       | -          |                                       |   |   |   |
| Purchase                  and installation of machinery and equipment                                                               |   |       | -          |                                       |   |   |   |
| Working                  capital (as of June 30, 2006)                                                                         |   |       | 608,582    |                                       |   | Actual |   |
| Temporary                  investments (as of June 30, 2006)                                                         |   |       | 2,963,262  |                                       |   | Actual |   |
| Other                  uses                                                                                               |   |       | -          |                                       |   |   |   |
| **Total                  uses                                                       **                                    |   | $          | 12,678,273 |                                       |   |   |   |

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS **

**ITEM      5. OTHER INFORMATION. **

----

**PART      II. OTHER INFORMATION, CONTINUED:**

**ITEM      6. EXHIBITS**

| **Exhibit****Number** |   |   | **Description** |
|-----------------------|--------|--------|-----------------|

|                          |                                                                                                                                                                                                                                                                                                                                                           |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2 *                    | Bylaws                of Lightstone Value Plus Real Estate Investment Trust,                Inc.                                                                                                                                                                                                                                                               |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 4.1                *          | Amended                and Restated Agreement of Limited Partnership of Lightstone Value                Plus                REIT LP.                                                                                                                                                                                                                      |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.1 *                   | Escrow                Agreement by and among Lightstone Value Plus Real Estate Investment                Trust,                Inc., Trust Company of America and Lightstone                Securities.                                                                                                                                                        |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.2 *                   | Advisory                Agreement by and among Lightstone Value Plus Real Estate Investment                Trust,                Inc., Lightstone Value Plus REIT LLC.                                                                                                                                                                                         |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.3 *                   | Management                Agreement, by and among Lightstone Value Plus Real Estate Investment                Trust, Inc., Lightstone Value Plus REIT LP and Lightstone Value Plus                REIT                Management LLC.                                                                                                                          |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.4                *         | Form                of the Company’s Stock Option Plan.                                                                                                                                                                                                                                                                                                  |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.5                *         | Form                of Indemnification Agreement by and between The Lightstone Group                and the                directors and executive officers of Lightstone Value Plus Real Estate                Investment Trust, Inc.                                                                                                                         |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.6                *         | Agreement                by and among Lightstone Value Plus REIT LP, Lightstone SLP, LLC,                and David                Lichtenstein.                                                                                                                                                                                                                |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.7                *         | Purchase                and Sale Agreement between St. Augustine Outlet World, Ltd. and Prime                Outlets Acquisition Company LLC.                                                                                                                                                                                                                  |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.8                *         | Assignment                and Assumption of Purchase and Sale Agreement by and between Prime                Outlets                Acquisition Company LLC and LVP St. Augustine Outlets                LLC.                                                                                                                                                   |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.9                *         | Note                and Mortgage Modification Agreement Evidencing Renewal Promissory                Note                Including Future Advance and Amended and Restated Mortgage, Security                Agreement and Fixture Filing by LVP St. Augustine Outlets LLC in                favor                of Wachovia Bank, National Association. |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.10                *        | Renewal                Promissory Note Including Future Advance by LVP St. Augustine Outlets                LLC                to the order of Wachovia Bank, National Association.                                                                                                                                                                            |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.11                *        | Guaranty                by Lightstone Holdings, LLC for the benefit of Wachovia Bank, National                Association.                                                                                                                                                                                                                                     |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.12                *        | Indemnification                Agreement between Lightstone Value Plus Real Estate Investment Trust,                Inc.                and Lightstone Holdings, LLC.                                                                                                                                                                                          |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.13                         | Purchase              and Sale Agreement among Home Properties, L.P., Home Properties WMF              I, LLC              and The Lightstone Group, LLC                                                                                                                                                                                                       |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.14                         | First                Amendment to Purchase and Sale Agreement among Home Properties, L.P.,                Home                Properties WMF I, LLC and The Lightstone Group,                LLC.                                                                                                                                                         |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.15     | Second              Amendment to Purchase and Sale Agreement among Home Properties, L.P.,              Home              Properties WMF I, LLC and The Lightstone Group, LLC.                                                                                                                                                                                  |
|                          |                                                                                                                                                                                                                                                                                                                                                           |
| 10.16                         | Contribution              Agreement among scotsdale Borrower, LLC, Carriage Park MI LLC, LLC,              Macomb              Manor MI LLC, Carriage Hill MI LLC and Citigroup Global Markets              Realty Corp.                                                                                                                                  |
|                          |                                                                                                                                                                                                                                                                                                                                                           |

| 10.17            | Assignment              and Assumption of Agreement for Purchase and Sale of Interests between              The              Lightstone Group, LLC and LVP Michigan Multifamily Portfolio              LLC                           |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |                                                                                                                                                                                                                                 |
| 10.18            | Loan              and Security Agreement among Scotsdale MI LLC, Carriage Park MI LLC,              Macomb Manor MI LLC, Carriage Hill MI LLC and Citigroup Global Markets              Realty Corp.                                 |
|             |                                                                                                                                                                                                                                 |
| 10.19            | Promissory                Note by Scotsdale MI LLC, Carriage Park MI LLC, Macomb Manor MI LLC                and                Carriage Hill MI LLC in favor of Citigroup Global Markets Realty                Corp.                |
|             |                                                                                                                                                                                                                                 |
| 10.20            | Mortgage                by Scotsdale MI LLC in favor of Citigroup Global Markets Realty                Corp.                                                                                                                         |
|             |                                                                                                                                                                                                                                 |
| 10.21            | Mortgage              by Carriage Park MI LLC in favor of Citigroup Global Markets Realty              Corp.                                                                                                                         |
|             |                                                                                                                                                                                                                                 |
| 10.22            | Mortgage              by Macomb Manor MI LLC in favor of Citigroup Global Markets Realty              Corp.                                                                                                                          |
|             |                                                                                                                                                                                                                                 |
| 10.23            | Mortgage              by Carriage Hill MI LLC in favor of Citigroup Global Markets Realty              Corp.                                                                                                                         |
|             |                                                                                                                                                                                                                                 |
| 10.24            | Environmental              Indemnity Agreement among Scotsdale MI LLC, Carriage Park MI LLC, Macomb              Manor MI LLC, Carriage Hill MI LLC and Citigroup Global Markets Realty              Corp.                           |
|             |                                                                                                                                                                                                                                 |
| 10.25            | Exceptions              to Non-Recourse Guaranty by Lightstone Value Plus Real Estate Investment              Trust, Inc. and Lightstone Value Plus REIT LP for the benefit of Citigroup              Global Markets Realty Corp.    |
|             |                                                                                                                                                                                                                                 |
| 10.26            | Conditional              Assignment of Management Agreement among Scotsdale MI LLC, Carriage              Park              MI LLC, Macomb Manor MI LLC, Carriage Hill MI LLC and Citigroup Global              Markets Realty Corp. |
|             |                                                                                                                                                                                                                                 |
| 31.1             | Certification                Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of                the                Sarbanes-Oxley Act of 2002                                                                          |
|             |                                                                                                                                                                                                                                 |
| 31.2             | Certification                Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302 of                the                Sarbanes-Oxley Act of 2002                                                                          |
|             |                                                                                                                                                                                                                                 |
| 32.1   | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002                                                                  |
|             |                                                                                                                                                                                                                                 |
| 32.2   | Certification                Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002                                                                  |

| * | Incorporated                by reference from Lightstone Value Plus Real Estate Investment Trust,                Inc.’s Registration Statement on Form S-11 (File No. 333-117367). |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES      **

|                                         |                                                                                                                                        |                                     |
|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
|                                         | **LIGHTSTONE                VALUE PLUS REAL ESTATE****INVESTMENT                TRUST, INC.**                                               |
|                                    |                                                                                                                                   |                                |
| Date: August              14, 2006 | By:                                                                                                                               | /s/ David              Lichtenstein |
|                                         | David                LichtensteinPresident,                Chief Executive Officer and Director(Principal                Executive Officer) |
|                                         |                                                                                                                                        |

|                                         |                                                                                                                                                                                        |                                     |
|----------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|
| Date: August              14, 2006 | By:                                                                                                                                                                               | /s/ Michael              M. Schurer |
|                                         | Michael                M. SchurerChief                Financial Officer and Treasurer(Duly                Authorized Officer and Principal Financial and Accounting                Officer) |
|                                         |                                                                                                                                                                                        |

----