RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

Sep. 30, 2020

Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three and nine months ended September 30, 2020 and 2019, respectively, and any related amounts payable as of September 30, 2020 and December 31, 2019 (in thousands):


	Incurred								Payable as of
	Three Months Ended September 30,				Nine Months Ended September 30,				September 30, 2020		December 31, 2019
Expensed	2020		2019		2020		2019
Asset management fees	$	2,426	$	2,093	$	6,867	$	5,954	$	2,538	$	1,498
Property management fees (1)	114		—		114		—		—		—
Reimbursable operating expenses (2)	56		79		148		251		—		—
Disposition fees (3)	—		233		—		627		—		—
Change in subordinated performance fee due upon termination to affiliate (4)	(1,121)		—		(814)		—		(3)		(3)
Capitalized
Acquisition fees on real estate equity securities	—		—		122		—		—		—
Acquisition fee on real estate	—		—		171		897		—		—

Acquisition fee on investment in unconsolidated entities	—		—		—		50		—		137
Investment in PORT II (5)	—		—		—		—		3,911		—
	$	1,475	$	2,405	$	6,608	$	7,779	$	6,449	$	1,635

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(1) Property management fees are for single-family homes under Battery Point and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations.

(2) The relevant advisor may seek reimbursement for certain employee costs under the relevant advisory agreement. The Company has reimbursed the relevant advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $65,000 and $198,000 for the three and nine months ended September 30, 2019, respectively, and were the only employee costs reimbursed under the advisory agreement during these periods. There were no employee cost reimbursements during 2020. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company.

(3) Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations.

(4) Change in estimate of fees payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details.

(5) During the nine months ended September 30, 2020, the Company, through a subsidiary of PORT OP, invested $5.0 million in PORT II OP LP (“PORT II OP”), of which $3.9 million was payable. See "PORT II" below for more details.