Corten Real Estate Management LLC

Item 5 – Fees and Compensation

Advisory Fees and Compensation

Corten may receive a management fee from each Fund based on a percentage of assets under management
whether committed or invested (“Management Fee”), transaction and origination fees, as well as incentive-based
compensation tied to the performance of underlying investments. The fees and compensation arrangements are
set forth in the respective Fund Governing Documents.

The Funds charge periodic Management Fees, normally quarterly in advance or in arrears, in accordance with
the terms and conditions described in the applicable Fund Governing Documents. Investors may from time-
to-time negotiate alternative fee arrangements in side letter agreements. Investors in Funds are typically
informed of fees being charged via a written notice - fees may be collected from cash on hand in bank accounts
designated for each Fund or via a capital call from Investors.

Funds typically pay the Firm a Management Fee commencing on the closing of the vehicle and through the end
of that vehicle’s life. In general, Management Fees range from 0.70% to 1.50% and are charged on committed
capital early in the life of each vehicle and then on the aggregate equity cost of all unrealized investments,
plus specifically reserved commitments attributable to investments, less permanent and unrecoverable write-
downs. Management Fees are calculated on an Investor-by-Investor basis starting on the commencement date
of each vehicle, regardless of when Investors are admitted. If total Fund commitments increase during any
quarter, the Firm is paid the Management Fee associated with such increase as if the increase had occurred as
of the commencement date of the relevant vehicle. Management Fees may also be charged on net invested
capital for certain single Investor Funds.

For the majority of Funds, Management Fees are offset 100% by all acquisition, disposition, break-up,
financing or similar transaction fees, directors’ fees and consulting fees paid to partners, employees or
managers of the Firm or of its affiliates in connection with the Fund’s investments (the “Offset Fees”). The
Offset Fees do not include property management, development, construction management, or fees paid to
affiliates of Corten by any asset or investment level vehicles which are subject to cost limitations and may
change over time. The amount charged to Funds for administrative services for a particular property provided
by contractors of Corten, BPG or their affiliates shall be calculated based on the percentage of their overall
work time spent on such property. Other fees may be charged to the Fund by the General Partner and its affiliates if
they are presented and approved by the Advisory Board, but to date this has not occurred. Origination and other
transaction-based fees may be charged in relation to certain single Investor Funds subject to the negotiated terms of the
relevant governing documents.

Corten employees, family members or other affiliated parties may invest in Funds where account minimums,
advisory fees, and carried interest have been waived by the Firm.

Additional Information Concerning Fees and Expenses

Investors in the Funds bear additional direct and indirect costs, fees and expenses incurred by those vehicles,
as described in the Fund Offering Documents. Those fees and expenses are generally categorized in one of
two ways that have been outlined below as follows:

Organizational Expenses - Any fees, costs or expenses incurred in connection with the offering of interests
in and the organization and formation of the Funds, any parallel funds or feeder funds, the General Partner, its

general partner and any related entities (including any REITs formed in connection with the Fund), and the
acceptance and admission of Limited Partners to the Fund, including, without limitation, legal and accounting
fees and expenses; printing costs; registration and filing fees; and the reasonable travel, transportation, meal
and lodging expenses of the personnel of the General Partner, the Firm and their respective Affiliates; costs
incurred in connection with negotiating side letters with specific investors (including the costs of complying
with any most favored nations process); costs of attending third party conferences in order to seek prospective
investors and other organizational activities, but specifically excluding any placement agent fees.

Funds typically bear all legal and other expenses incurred in their formation up to an agreed upon amount.
Organizational expenses in excess of that amount and all placement agent fees are initially paid by the Funds,
but ultimately borne by the Firm through a 100% offset against the Management Fee.

Operating Expenses - Funds, their affiliates, any investment holding companies and any REITs, including
their subsidiaries, are charged all costs and expenses relating to their activities and operations including, but
not limited to:

        (i)      Management Fees as outlined above;

        (ii)     liquidation expenses of the Funds;

        (iii)    any sales or other taxes (including interest and penalties) which may be assessed against the
                 Funds;

        (iv)     fees, costs and out-of-pocket expenses incurred in connection with the Funds’ investment
                 activities, including all costs related to sourcing, origination, investigation, identification,
                 evaluation, acquisition, holding, management, development, renovation, financing, hedging,
                 refinancing or purchase or sale of investments, whether or not any such purchase or sale is
                 consummated, including reasonable travel and out-of-pocket travel related expenses
                 (including meals and lodging), reasonable entertainment, industry organizations, conferences,
                 sponsorships and events, marketing and advertising costs, research and underwriting, third-
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Item 7 – Types of Clients
Corten provides investment advisory services to Funds, which are Corten’s Clients. Investors in Funds may
be institutions or qualified individuals.