2.4.0.8116 - Disclosure - Related Party Transactionstruefalsefalse1false falsefalseP01_01_2013To06_30_2013http://www.sec.gov/CIK0001378774duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_RelatedPartyTransactionsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Related Party Transactions [Abstract]2false 2us-gaap_RelatedPartyTransactionsDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseverboseLabel1falsefalsefalse00 <table border="0" style="clear:both;width:100%; table-layout:fixed;"> <tr> <td></td> </tr> </table> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font></font> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <strong><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">10. Related Party Transactions</font></strong><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">The Company has no employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the policies established by our board of directors. We are party to an advisory agreement that entitles the Advisor to specified fees upon the provision of certain services to us.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <strong><em><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">Advisory Agreement and Transition to Internal Management Agreement</font></em></strong><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">Sentio Investments, LLC became our Advisor on January 1, 2012, pursuant to an advisory agreement dated December 22, 2011. As required by our charter, that advisory agreement had a one-year term that ended on December 31, 2012. Effective January 1, 2013, we renewed the advisory agreement on substantially similar terms for an additional one-year term ending on December 31, 2013.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">Under the terms of the current advisory agreement, the Advisor is required to use commercially reasonable efforts to present to us investment opportunities to provide a continuing and suitable investment program consistent with the investment policies and objectives adopted by our board of directors. The advisory agreement calls for the Advisor to provide for our day-to-day management and to retain property managers and leasing agents, subject to the authority of our board of directors, and to perform other duties.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">On February 10, 2013 in connection with the execution of the KKR Equity Commitment (See Note 9), we entered into a Transition to Internal Management Agreement (the “Transition Agreement”) with our Advisor and KKR. The Transition Agreement provides, following the satisfaction of certain conditions, for certain amendments to the advisory agreement between us and the Advisor and sets forth the terms for our transition to an internal management structure.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">The terms of our advisory agreement with our Advisor and the terms of the Transition Agreement are more fully outlined in our Annual Report on Form 10-K for the year ended December 31, 2012 and in the proxy statement related to our 2013 annual meeting of stockholders as filed with the SEC on April 9, 2013.</font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"></font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">The fees and expense reimbursements payable to the Advisor under the advisory agreement for the three and six months ended June 30, 2013 and June 30, 2012 were as follows:</font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font> </font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font></font></font> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt" align="center"><font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font></font></font> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN:center; WIDTH: 100%" align="center"><font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font></font></font> <table style="clear:both;BORDER-BOTTOM: #9eb6ce 0px solid; BORDER-LEFT: #9eb6ce 0px solid; MARGIN: 0px:auto; WIDTH: 90%; BORDER-COLLAPSE: collapse; OVERFLOW: visible; BORDER-TOP: #9eb6ce 0px solid; BORDER-RIGHT: #9eb6ce 0px solid" cellspacing="0" cellpadding="0" align="center"> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="33%"> <div> </div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="27%" colspan="5"> <div>Three Months Ended<br/> June 30,</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="27%" colspan="5"> <div>Six Months Ended <br/> June 30,</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="33%"> <div> </div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="13%" colspan="2"> <div>2013</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="13%" colspan="2"> <div>2012</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="13%" colspan="2"> <div>2013</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="13%" colspan="2"> <div>2012</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> </tr> <tr style="HEIGHT: 12px"> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="33%"> <div>Asset management fees</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>746,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>503,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>1,394,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div>$</div> </td> <td style="BORDER-BOTTOM: #000000 3px double; TEXT-ALIGN: right; FONT-STYLE: normal; PADDING-RIGHT: 5px; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="12%"> <div>982,000</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: Times New Roman; BACKGROUND: #ccffcc; FONT-SIZE: 10pt; VERTICAL-ALIGN: middle; FONT-WEIGHT: 400" width="1%"> <div> </div> </td> </tr> </table> </div> </div> </div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font><font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"></font> </font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font></font> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt; BACKGROUND-COLOR: rgb(0,0,0); FONT-STYLE: normal; TEXT-INDENT: 0in; MARGIN: 0in; HEIGHT: 1px; FONT-SIZE: 1px"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font></font></div> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">  </font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt">Consistent with limitations set forth in our charter, the advisory agreement further provides that, commencing four fiscal quarters after the acquisition of our first real estate asset, we shall not reimburse the Advisor at the end of any fiscal quarter management fees and expenses and operating expenses that, in the four consecutive fiscal quarters then ended exceed (the “Excess Amount”) the greater of 2% of our average invested assets or 25% of our net income for such year (the “2%/25% Guidelines”) unless the Independent Directors Committee of our board of directors determines that such excess was justified, based on unusual and nonrecurring factors which it deems sufficient. If the Independent Directors Committee does not approve such excess as being so justified, the advisory agreement requires that any Excess Amount paid to the Advisor during a fiscal quarter shall be repaid to the Company. In addition, our charter provides that, if the Independent Directors Committee does not determine that the Excess Amount is justified, the Advisor shall reimburse us the amount by which the aggregate annual expenses paid to the Advisor during the four consecutive fiscal quarters then ended exceed the 2%/25% Guidelines.  </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> </font> <font style="FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 12pt"> </font></font></font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> <font style="LINE-HEIGHT: 115%; FONT-FAMILY: 'Times New Roman'; FONT-SIZE: 10pt"> For the four quarters ended June 30, 2013, our management fees and expenses and operating expenses totaled did not exceed the greater of 2% of our average invested assets and 25% of our net income.</font></font></font></div> </div> </div> falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for related party transactions. 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