DRA Advisors LLC

Item 5 – Fees and Compensation
The Company’s fees are generally negotiable, taking into consideration the nature of the
representation and anticipated investment advisory services for a client. In this regard, the Company
typically charges an asset management fee at an annual rate ranging from 0.6 to 1.0% of the gross
acquisition cost of the assets and securities under management, or 1.25% to 1.5% of committed capital
during the acquisition period or actively managed capital after the expiration of the acquisition period.
Clients co-investing with existing Funds, or investing on a separate account basis, generally are subject
to alternative and/or reduced fee structures on a case-by-case basis. The asset management fee is
computed and payable quarterly when due or in arrears, commencing with the calendar quarter in
which the first investment is made by a client. Generally, all fees are deducted directly from client

bank accounts.

The Company may charge a capital markets fee of up to 0.5% based on gross proceeds of the sale or
financing of real estate assets and has charged such fees in the past. Furthermore, the Company in
some transactions is reimbursed for, among other things, organization and offering expenses incurred
by it with respect to any pooled investment vehicles (including limited partnerships and/or limited
liability companies) or other entities sponsored or advised by the Company. Such expenses would
include costs related to industry events attended for the purpose of sourcing new acquisitions, joint
venture partners, and lending relationships. Transaction- based fees present a conflict of interest in
that the Company has an incentive to purchase investments based on the transaction-based
compensation received. The Company has adopted and implemented written compliance policies and
procedures that are designed to address the above conflicts of interest.

As fully described in each Fund’s offering documents, each Fund bears expenses related to its
operations, including, without limitation, organizational costs, normal operating costs and
administrative expenses, and investment-related expenses. Normal operating costs and administrative
expenses may consist of, but may not be limited to, the following: expenses incurred in connection with
obtaining and negotiating any credit facility, monitoring real estate investments and each Fund’s
normal record keeping and reporting, including, but not limited to, entity-level taxes, travel and other
out of pocket expenses incurred by the officers and employees of the Company’s affiliates in
connection with the evaluation, negotiation, acquisition, operation, maintenance, improvement,
leasing or sale of proposed or existing real estate investments, but shall specifically exclude internal
expenses of each Fund GP (as defined below), including compensation, payroll taxes and related
employee costs, rent and other overhead expenses of each Fund GP and its affiliates. Investment and
other costs may include, but are not limited to, the following: all reasonable out of pocket and third
party costs and expenses, including travel expenses, incurred in connection with seeking and
negotiating real estate investments and in consummating real estate investments and custodial fees
relating to the holding of real estate investments, the compensation (including performance-based
incentive fees) of joint venture partners and/or third-party operating partners, appraisers’ costs, the
cost of a Fund’s annual audit, and all extraordinary Fund expenses, including the costs of amendments,
if any, to the offering and organizational documents of any Fund, all costs and expenses of the
Members’ Board, and including all costs and expenses, including attorneys’ fees and litigation costs,
incurred in investigating, defending and settling any claim, investigation, action or proceeding against
or involving a Fund or incurred in the protection or assertion by a Fund of any of its rights, to the
fullest extent permitted by applicable law.

In addition, the Company organizes special purpose vehicles on behalf of clients for the purpose of

(a) making certain investments, including on a joint-venture basis and/or (b) incentivizing and
compensating operating partners. Each special purpose vehicle may be directly or indirectly and
wholly- or partially-owned by a client. Such special purpose vehicle may provide for a management
fee, development fee, other fees and/or incentive compensation (including carried interest) paid to
such operating partner or a related party of such operating partner, and such special purpose vehicles
have provided for such fees and compensation in the past. Neither the Company nor its affiliates will
participate directly or indirectly in any such fees or other consideration paid to operating partners or
their related parties.

Certain investment-related and other costs and expenses incurred by the Company on behalf of more
than one client are allocated by the Company among those clients according to methodologies that the
Company believes to be fair and reasonable. The allocation methodology applicable to a particular
cost or expense may be based on a variety of factors, including the investment phase of each client,
the gross or net assets under management of each client, the relative benefit to each client of the cost
or expense in question, the category or weighting of a particular type of Real Estate Investment (e.g.,
office, residential, industrial) or other assets held by each client, the number of investor representatives
attending a particular meeting, or a combination of the foregoing. Additional information on the
Company’s expense allocation policy is available to investors upon request.

If a client terminates the investment management agreement with the Company in the middle of a
billing period the Company will invoice the client for an amount that is pro-rated based on the number
of days that the account was managed.
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Item 7 – Types of Clients
The Company primarily provides discretionary investment management services to the Funds, as
described above.

The offering documents of each Fund sets forth the eligibility requirements and minimum subscription
amounts for investors in such Fund. The Company usually requires a minimum subscription
amount of $1,000,000 to establish an account. However, the Company has the discretion to waive this
requirement, which it has done in the past, setting the minimum subscription amount for a Fund as
low as $225,000 in some cases.