Item 5 - Fees and Compensation
The fees applicable to each Fund are set forth in detail in offering documents applicable to each
Fund. The Adviser does not currently intend to be directly compensated for advisory services
provided by the Adviser to the Funds. However, the Adviser’s affiliates, including without
limitation the General Partners of the Funds, affiliated service providers, and other affiliates can
receive various fees from the Funds.
The fees received by Adviser’s affiliates for services provided to a Fund generally include, but
may not be limited to:
Administrative Allowances: fixed per annum fees payable on a monthly basis.
Market-Rate Service Fees: negotiated fees for providing products and services to
underlying investments of the Funds, its tenants, or the like (e.g., renters insurance).
Market-Rate Property Management Fees: typically in the range of 3% to 4% of the gross
cash receipts received by the Funds’ private real estate investments.
Market-Rate Construction Management Fees: typically a percentage of hard and soft costs
of the private real estate investment.
Market-Rate Marketing Fees.
Market-Rate Information Technology Fees.
Market-Rate Insurance Products.
Market-Rate Acquisition and Disposition Fees, including in connection with the
acquisition or disposition of real estate in syndication.
Asset Management Fees: asset management fees for investment advisory services earned
as a percentage of assets under management, net operating income, or other percentage
fees related to investment or acquisition prices or on other types of fee bases, such as
invested capital and investor commitments
In addition to the foregoing fees, the Adviser’s affiliates shall receive, directly or indirectly,
performance fees, generally referred to as “Investment Profits Interests” in the investments of a
Fund, as described in each Fund’s offering documents.
The Market-rate fees shown above can be negotiated in the due diligence process and maybe
noted and agreed to in a Purchase/Sale Agreement, Property Management Agreement, or other
similar agreements. The fees are recurring and are billed and collected monthly in arrears.
Acquisition fees are one-time fees that are charged and collected at each acquisition closing. The
Administrative Fee, as described above, is a fixed per annum fee that is billed and collected on a
monthly basis in arears.
Other Fees and Expenses
Investors in each Fund, by virtue of their investment therein, generally bear all expenses related
to the organization of, and the offering and sale of interests in, such Fund (which may include,
without limitation, legal fees, accounting fees, and various filing fees) as well as all expenses
related to such Fund’s investment activities and ongoing operations (which may include without
limitation, diligence costs related to the identification of potential investments (whether or not such
investments are consummated), legal (including diligence, drafting, and negotiation expenses),
custody fees, ordinary and extraordinary liabilities, broken-deal expenses, accounting and tax
preparation fees, reporting expenses, consulting fees, pursuit costs as described in each Fund’s
offering documents, out-of-pocket expenses relating to the development, acquisition, holding and
disposition of portfolio investments, travel and other costs and expenses incurred in connection
with the acquisition, management or disposition of investments, indemnification expenses, interest
on borrowed monies, commissions on the purchase or sale of investments, insurance costs, and
litigation and other extraordinary expenses. Notwithstanding the foregoing, investors in each Fund
generally do not bear the costs of compensation of the Adviser’s personnel and certain other
general overhead expenses of the Adviser. A more specific description of the types of fees and
expenses borne by Funds managed by the Adviser may be found in the offering and governing
documents of the applicable Fund.
Investors and prospective investors in any Fund should review the offering and governing
documents for such Fund carefully before investing.
Compensation from the Sale of Securities or Other Investment Products
The Adviser, its affiliates, and its supervised persons do not accept compensation (e.g., brokerage
commissions) for the sale of securities or other investment products.