Hammes Realty Advisors LLC

Item 5      Fees and Compensation

        We are compensated for our investment advisory services to the Funds based on a
percentage of committed capital or invested capital. The Value-Added Fund Series pays us a
management fee based on committed capital of each Fund during its investment period and
thereafter will pay us a management fee based on invested capital. Each of the HIGH Entities pays
us a management fee based on the product of (1) a blended percentage based on each limited
partner’s capital commitment, and (2) the net asset value attributable to each limited partner’s
interest in the HIGH Entities. We negotiate the rate with investors in each Fund at the time the
Fund is established.

        Management fees are payable either quarterly in advance or quarterly in arrears of the
services rendered. As required by the Investment Advisers Act of 1940, as amended (the “Advisers
Act”), if the investment advisory agreement between a Fund and us is terminated before the end
of the applicable period, management fees will be charged on a pro rata basis through the date of
termination, and any fees paid in advance but not earned will be refunded.

         Each Fund generally bears certain other fees, expenses and costs which are incidental or
related to the organization and maintenance of the Fund or related to the acquisition, carrying,
management, development, maintenance and disposition of investments. In particular, each Fund
bears all costs and expenses incurred in connection with the organization of the Fund
(“Organization Expenses”), including legal and accounting fees, printing costs, travel (which, from
time to time, may include private jet travel) and out-of-pocket expenses, and all costs and expenses
incurred in connection with the offering of interests in the Fund (but excluding any placement
fees). The Organization Expenses payable by each Fund are generally subject to a maximum cap
that is negotiated at the time the Fund is established. Each Fund pays all expenses related to its
own operations (“Fund Expenses”), including, but not limited to, (i) fees, costs and expenses
directly related to the discovery, evaluation, diligence, negotiation, purchase, financing,
refinancing, management, monitoring, and sale of investments and potential investments;
principal, interest, fees, expenses and other amounts payable in respect of financings, custody fees
and costs of other third-party services; (ii) legal, accounting, audit, brokerage fees and
commissions, valuation expenses, fees and expenses of financial advisors, consulting, investment
banking and other professional costs; private placement fees, syndication fees, bank charges,
closing and execution costs, sales commissions, appraisal fees, underwriting commissions and
discounts; (iii) all costs of the Fund’s administration, including preparation of its financial
statements and reports to limited partners and prospective limited partners, and fees paid to
custodians and other third party service providers; (iv) expenses associated with the maintenance
of books and records of the Fund; (v) any insurance, indemnity, regulation, government inquiry or
litigation expenses (including costs in connection with any investigation or proceeding), or the
amount of any judgment or settlement paid in connection therewith; (vi) any reasonable and
customary travel (which, from time to time, may include travel by a private jet owned by the

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founder of Hammes Advisors), accommodation, meal and entertainment costs; (vii) costs of
meetings of partners; (viii) expenses incurred in connection with administrative proceedings
undertaken by the partnership representative; (ix) expenses incurred by the Fund’s limited partner
advisory committee (each an “LP Advisory Committee”), including out-of-pocket expenses of its
members; (x) any taxes, fees or other governmental charges levied against the Fund; (xi) any
expenses incurred in connection with the dissolution and winding up of the Fund; (xii) expenses
related to annual market assessments of certain property level services provided to the Fund by its
affiliates (as discussed below); (xiii) expenses related to the operation and maintenance of a web-
based data site; (xiv) any such costs incurred in connection with transactions which are not
consummated (including amounts that would otherwise have been borne directly or indirectly by
potential co-investors were such transactions consummated), including expenses incurred in
respect of evaluating prospective development assets (such costs with respect to unconsummated
transactions, “Broken Deal Expenses”); and (xv) costs incurred in connection with due diligence
and ongoing monitoring of sustainability of potential investments or investments. Out-of-pocket
expenses associated with completed transactions will be reimbursed by a Fund or capitalized as
part of the acquisition price of the transaction.

        As set forth above, Fund Expenses include all out-of-pocket costs and expenses directly
related to investments or prospective investments (including Broken Deal Expenses). Such
expenses related to investments and prospective investments include, but are not limited to, (i)
legal, accounting, consultant and other professional costs; (ii) reasonable and customary travel and
entertainment costs; (iii) brokerage commissions and other finders’ fees and transaction costs; (iv)
custody fees and costs of other third-party services; (v) costs associated with environmental,
property management, engineering and appraisal services, insurance premiums, leasing
commissions and loan servicing fees; (vi) expenses associated with evaluating, negotiating,
maintaining, improving, leasing, developing, redeveloping, renovating, monitoring and managing
investments; (vii) expenses associated with financing, refinancing, pledging or disposition of or
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Item 7     Types of Clients

        We provide investment advice to each Fund. Investors in the Funds include public pension
plans, funds-of-funds, other institutional investors and high net worth individuals.

       Each Fund has a specified minimum investment set forth in its offering documentation,
organizational documents or other governing documents, which is typically $10 million. Such
minimum may be waived, at the discretion of Hammes Advisors, to permit investment of a smaller
amount generally or with respect to any investor in the Fund.

        Fund interests are offered and sold generally to investors that are (i) “accredited investors”
as defined under Regulation D of the Securities Act, (ii) “qualified clients” as defined under the
Advisers Act or other “knowledgeable employees” of Hammes Advisors, and (iii) “qualified
purchasers” as defined Section 2(a)(51)(C) of the Investment Company Act.