Koll BREN Schreiber Realty Advisors Inc

Item 5 Fees and Compensation

KBSRA Inc may receive from its clients some or all of the following fees in connection with its
advisory and real estate asset management services:

Acquisition fees for services related to the sourcing, underwriting, and negotiating of real
property investments and, in certain cases, loans and other debt secured by real estate, are
typically based on a percentage of acquisition cost (or funding amount).

Asset management fees for investment advisory services relating to real estate properties and
other real estate-related investments (including real estate securities) held by a client are equal to
a percentage of average monthly net asset value or the cost of investments acquired, payable
quarterly. The percentage may scale downward at various break points as net asset value
increases. Generally, these asset management fees are 75 basis points per year, depending on the
size and complexity of a client’s portfolio. KBSRA Inc may negotiate separate asset
management fees with each client. The fees, accordingly, may vary for each client and/or
investment vehicle established and managed for clients.

In certain cases, KBSRA Inc may have the ability to receive performance-based fees from its
clients. This may constitute a fee arrangement that would create an incentive for KBSRA Inc to
make investments that are riskier or more speculative than would be in the case in the absence of
a “performance based” fee.

The use of the performance component is intended to comply with the provisions of Rule 205-3
under the Investment Advisers Act of 1940 relating to incentive compensation arrangements.
This Rule imposes certain requirements relating to the calculation methodology for a
performance fee and the imposition of certain net worth or assets-under management standards
for clients with which the fee is calculated.

Item 7 Types of Clients

The types of clients to whom KBSRA Inc generally provides investment advice are institutional
clients, such as pension funds, each of whom may invest through real estate limited partnerships
or real estate investment trusts.