Klaff Realty LP

ITEM 5 – FEES AND COMPENSATION

    A. Describe how you are compensated for your advisory services. Provide your fee
       schedule. Disclose whether the fees are negotiable.

The specific terms for Klaff Realty’s compensation by each Fund are dictated by its Governing
Documents but may be negotiated with certain investors through side letters. In addition to
applicable Management Fees and Carried Interests (each as defined herein), and as more fully
described in the applicable Governing Documents, Klaff Realty and its affiliates from time to time
generally receive certain additional fees and compensation for services provided with respect to
certain investments, including acquisition fees, development fees and compensation for services on
boards of directors. Such fees and other compensation generally will not offset or reduce the
Management Fee or Carried Interest. Additionally, such fees and other compensation for services
may be (i) at a market rate that Klaff Realty believes, in its sole discretion, to be within the range of
general fair market rates from non-affiliate third parties providing similar services, or (ii) for assets
held by an underlying joint venture, at the rate that the third-party venture partner approves.
However, in circumstances in which Klaff Realty commits to seek “market” or “arms-length” rates
or terms, Klaff Realty undertakes no minimum amount of benchmarking and does not represent that
any such benchmarking ultimately will be accurate, comparable or relate specifically to the assets,
services, geographies or comparable markets to which such rates or terms relate. In addition, where
such rates or terms include hourly components, Klaff Realty reserves the right to rely on
approximations or estimates of time spent for purposes of allocating or charging for services. There
can be no assurance under such arrangements that the amount of compensation paid in a particular
year or other applicable period will be proportional to the number of hours worked or the amount
or written work product generated.

Management Fee. Each Fund pays Klaff Realty a management fee (the “Management Fee”). A Fund’s
Management Fee will generally commence on the date of the Fund’s initial closing and thereafter will
be paid quarterly in advance on the first day of each calendar quarter. The Management Fee will be
based first on the committed capital to a Fund by its investors and, at the end of the investment
period, on a percentage of aggregate equity invested, and will vary based on the amounts committed
to the Fund by its various investors and the stage of investment cycle of the Fund subject to certain
minimum Management Fees. The Management Fee generally ranges from 1% to 1.5% but may be
negotiated lower for certain investors based on the size of the investor’s commitment to the Fund.
Some Funds do not pay fees based on a percentage of committed capital but instead pay a fixed annual
fee. In addition, some Funds pay an acquisition fee to Klaff Realty. Certain of these acquisition fees
are treated as a deemed capital contribution by an affiliate of Klaff Realty, which amount is effectively
invested in the Fund on such affiliate’s behalf and operates to reduce the amount of capital such
affiliate would otherwise be required to contribute to the Fund. The investors of the Fund would, in
such circumstances, be required to make a pro rata contribution according to their respective
commitments to fund any contribution that would otherwise be required of such affiliate in

connection with its deemed capital and, as a result, may result in an acceleration of investor capital
contributions. These fees are more fully described in the applicable Fund Governing Documents.

Under the Governing Documents, the Management Fee generally will be calculated and charged on a
basis that generally is not tied to a Fund’s then-current net asset value. As further specified in the
Governing Documents, Management Fees generally will initially be charged based on a formula tied
to the amount of the relevant Fund’s aggregate commitments. However, after a certain date specified
in the Governing Documents, a Fund’s Management Fee generally will be charged and calculated
based on a formula tied to the amount of contributed capital or the cost basis of investments made
by the relevant Fund. As a result, except where the Governing Documents expressly provide to the
contrary, the amount of Management Fees generally will not correspond with fluctuations in a Fund’s
net asset value, including where the fair market value of an investment exceeds or falls below the total
amount of contributed capital or the cost basis relating to such investment. Therefore, the
Management Fee generally will not be reduced in connection with any partial distributions, partial
realizations, reorganizations and write downs except as required by the Governing Documents.

The Governing Documents set forth the full list of terms under which a Fund’s Management Fee will
be reduced, offset or otherwise be limited. Investors should expect to bear the full specified
Management Fee in the Governing Documents until they are reduced in the circumstances and on
the date(s) specified therein.

Carried Interest. Klaff Realty or its affiliate receives a distribution of the investment proceeds from its
Funds (“Carried Interest”), generally subject to certain conditions such as the prior return of capital
to Fund investors and/or prior payment to Fund investors of a certain rate of return on invested
capital. Proceeds available for distribution consist principally of cash generated from continuing
operations of the assets owned by a Fund and/or the cash proceeds realized on the sale or refinancing
of Fund assets. The Carried Interest is distributed in accordance with the Fund’s Governing
Documents and is more fully described in Item 6, below.

Certain investors in the Funds, who are generally related persons, employees, partners of Klaff Realty,
...

ITEM 7 – TYPES OF CLIENTS

Describe the types of clients to whom you generally provide investment advice, such as
individuals, trusts, investment companies, or pension plans. If you have any requirements for
opening or maintaining an account, such as a minimum account size, disclose the
requirements.

As noted in Item 4 above, Klaff Realty provides discretionary investment advisory and asset
management services to the Funds that operate as closed-end private real estate funds. Interests in
the Funds and the Funds themselves are not registered under the U.S. Securities Act of 1933, as
amended or the U.S. Investment Company Act of 1940, as amended (“Investment Company
Act”), respectively. Accordingly, interests in the Funds are offered exclusively to investors
satisfying the applicable eligibility and suitability requirements either in private placement
transactions within the United States or in offshore transactions, and the Fund is excluded from the
definition of an “investment company” under Section 3(c)(1) and/or 3(c)(7) of the Investment
Company Act.

Investors in the Funds were required to complete and submit a subscription agreement binding
them to the terms of the Fund Governing Documents. Each Fund has a required minimum
investment that is subject to exceptions as set forth in the Fund Governing Documents. The required
minimums for investment in each Fund range from $250,000 to $500,000. However, each Fund’s
general partner or manager has the discretion to waive or reduce the minimum initial investments or
commitments and has done so for certain investors, including employees and affiliates of Klaff Realty.

Co-investment opportunities are given to strategic limited partners when additional capital is necessary
for a Fund investment, taking into account the applicable Fund’s investment limitations, the size of
the investment opportunity and the demand among potential co-investors. Opportunities to invest
in a portfolio company may be made available to select persons or entities, including, without
limitation, strategic investors, lenders, deal sources, other real estate firms, Fund investors,
prospective Fund investors, other sponsors, market participants, finders, consultants, other service
providers, other persons or entities affiliated, associated or otherwise known to Klaff Realty or its
personnel and unrelated third parties. These may arise whenever Klaff Realty has the opportunity
for an investment in an existing or prospective portfolio company and determines that all or a
portion of the applicable opportunity is not required to be offered to, or is not appropriate for, a
Fund. Such determinations are based on the provisions of the applicable Governing Documents and
such other factors as Klaff Realty may consider in its sole discretion, including those that may be
specified from time to time in its policies on investment allocation and co-investments.