Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transaction, Due from (to) Related Party [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Effective as of October 1, 2012, we entered into a First Amended and Restated Advisory Agreement with LaSalle, pursuant to which we pay a fixed advisory fee of 1.25% of our NAV calculated daily. The Advisory Agreement allows for a performance fee to be earned for each share class based on the total return of that share class during the calendar year. The performance fee is calculated as 10% of the return in excess of 7% per annum.

Prior to October 1, 2012, under the terms of the Management and Advisory Agreements, we paid each of the Former Manager and Advisor an annual fixed fee equal to 0.75% of NAV, calculated quarterly. Effective January 1, 2010, the Former Manager's fixed fee was reduced from 0.75% of NAV to 0.10% of NAV. Beginning on November 14, 2011, when the Former Manager assigned the Management Agreement to the Advisor, we began paying the Former Manager's fixed fee to the Advisor. As a result, we began paying the Advisor total aggregate compensation of 0.85% of NAV for management and advisory services provided to the Company. Additionally, under the terms of the Management and Advisory Agreements, we paid the Former Manager and our Advisor an aggregate annual variable fee equal to 7.50% of the Variable Fee Base Amount, as defined in the Advisory Agreement, calculated quarterly. The Former Manager was allocated an increasing proportion of the variable fee to the extent the Company's NAV increased, up to a maximum of 1.87% of the 7.50% fee paid. Effective January 1, 2010, the Former Manager waived its participation in the variable fee and the Advisor waived its participation in the variable fee per the terms of the Management Agreement.

The fixed management and advisory fees for the years ended December 31, 2012, 2011 and 2010 were $2,406, $1,789 and $1,868, respectively. Included in Advisor fees payable at December 31, 2012 and 2011 was $324 and $472, respectively, of fixed fee expense. The variable fee for the years ended December 31, 2012, 2011 and 2010 was $333, $1,017 and $1,396, respectively. Included in Advisor fees payable at December 31, 2012 and 2011 was $0 and $176, respectively, of variable fee expense. No performance fee was earned for the year ended December 31, 2012.

Jones Lang LaSalle Americas, Inc. (“JLL Americas”), an affiliate of the Advisor, is paid for property management and leasing services performed at various properties we own, on terms no less favorable than we could receive from other third party service providers. For the years ended December 31, 2012, 2011 and 2010, JLL Americas was paid $634, $453 and $302, respectively.

LaSalle Investment Management Distributors, LLC, an affiliate of our Advisor, is the dealer manager (the “Dealer Manager”) for our Offering. For the year ended December 31, 2012, we paid the Dealer Manager selling commissions, dealer manager fees and distribution fees totaling $165.

As of December 31, 2012, we owed LaSalle $2,719 for organization and offering costs incurred prior to the date the SEC declared our registration statement effective (see Note 6-Common Stock).