Related Party Arrangements (Tables)

6 Months Ended

Jun. 30, 2013

Related Party Arrangements

Summary of fees incurred to the advisor and the due to related party at the end of the period

The following table presents the fees and reimbursements incurred to the Advisor for the three and six months ended June 30, 2013 and 2012 and the due to related party as of June 30, 2013 and December 31, 2012 (dollars in thousands):

										Due to related party as of
		Three Months Ended June 30,				Six Months Ended June 30,
	Financial Statement Location									June 30, 2013		December 31, 2012
Type of Fee or Reimbursement		2013		2012		2013		2012
Organization and offering costs
Organization	General and administrative expenses	$	9	$	118	$	62	$	270	$	—	$	113
Offering	Cost of capital(1)		1,502		768		2,505		1,755		1,124		2,151
Operating costs(2)	General and administrative expenses		2,218		763		3,754		1,098		2,148		523
Advisory fees
Asset management	Advisory fees—related party		2,761		511		4,903		818		981		559
Acquisition(3)	Real estate debt investments, net / Advisory fees—related party		2,981		2,321		5,323		2,577		1,404		—
Disposition(3)	Real estate debt investments, net		15		—		15		—		—		24
Selling commissions / Dealer manager fees	Cost of capital(1)		32,577		8,678		49,511		16,078		—		—
Total(4)										$	5,657	$	3,370

(1)

Cost of capital is included in net proceeds from issuance of common stock in the consolidated statements of equity.

(2)

As of June 30, 2013, the Advisor incurred unreimbursed operating costs on behalf of the Company and $5.2 million is still allocable.

(3)

Acquisition/disposition fees incurred to the Advisor related to CRE debt investments are generally offset by origination/exit fees paid to the Company by borrowers if such fees are required from the borrower. Acquisition fees related to PE Investments are included in advisory fees—related party in the consolidated statements of operations. The Advisor may determine to defer fees or seek reimbursement, subject to compliance with applicable policies. From inception through June 30, 2013, the Advisor deferred $0.5 million of acquisition fees and $0.3 million of disposition fees related to CRE securities.

(4)

Due to related party includes a $2.0 million receivable and $11.8 million payable as of June 30, 2013 and December 31, 2012, respectively, related to PE Investment I.