Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

11. COMMITMENTS AND CONTINGENCIES

In conjunction with the Internalization, the Company assumed a lease for office space on September 1, 2011. The term of the lease expires on June 30, 2014. The lease has been classified as an operating lease. The rental expense for the year ended December 31, 2011 was $0.2 million. Under this agreement, annual rental payments will be as follows throughout the term of the lease for the years ending December 31:

2012	$	313,169
2013		320,452
2014		162,046
	$	795,667

The Company enters into certain contracts that contain a variety of indemnifications, principally with the Manager and brokers. The maximum potential amount of future payment the Company could be required to make under these indemnification provisions is unknown. However, the Company was released from any obligations to indemnify the Manager or its sub-advisors in connection with the completion of the Internalization. The Company has not incurred any costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the estimated fair value of these agreements is minimal. Accordingly, the Company has no liabilities recorded for these agreements as of December 31, 2011 and 2010.