Transactions with Related Parties (Tables)

12 Months Ended

Dec. 31, 2025

The following table summarizes the Company’s related party transactions for the years ended December 31, 2025, 2024 and 2023. Certain compensation and fees payable to the Business Manager for services provided to the Company are limited to maximum amounts.


		Year ended December 31,						Unpaid amounts as of
		2025		2024		2023		December 31, 2025		December 31, 2024
General and administrative reimbursements	(a)	$	1,545	$	1,595	$	1,721	$	273	$	241

Real estate management fees		$	5,821	$	5,797	$	5,613	$	—	$	—
Property operating expenses			2,172		1,979		2,013		55		23
Construction management fees			441		391		605		1		51
Leasing fees			386		397		362		108		112
Total real estate management related costs	(b)	$	8,820	$	8,564	$	8,593	$	164	$	186

Business management fees	(c)	$	9,001	$	8,963	$	9,632	$	2,263	$	2,241

(a)

The Business Manager and its related parties are entitled to reimbursement for certain general and administrative expenses incurred by the Business Manager or its related parties relating to the Company’s administration. Such costs are included in general and administrative expenses in the consolidated statements of operations and comprehensive loss. Unpaid amounts are included in due to related parties on the consolidated balance sheets.

(b)

For each property that is managed by the Real Estate Manager, the Company pays a monthly real estate management fee of up to 3.9% of the gross income from each property. Although the Company does not own any single-tenant net leased properties, if the Company acquires and owns this type of property, the monthly management fee would be reduced to up to 1.9% of the gross income from each such property. The Real Estate Manager determines, in its sole discretion, the amount of the fee with respect to a particular property, subject to those limitations. For each property that is managed directly by the Real Estate Manager or its affiliates, the Company pays the Real Estate Manager a separate leasing fee. Further, if the Company engages its Real Estate Manager to provide construction management services for a property, the Company pays a separate construction management fee. Leasing fees are included in deferred costs, net and construction management fees are included in building and other improvements in the consolidated balance sheets. The Company also reimburses the Real Estate Manager and its affiliates for property-level expenses that they pay or incur on the Company’s behalf, including the salaries, bonuses and benefits of persons performing services for the Real Estate Manager and its affiliates except for the salaries, bonuses and benefits of persons who also serve as an executive officer of the Real Estate Manager or the Company. Real estate management fees and reimbursable expenses are included in property operating expenses in the consolidated statements of operations and comprehensive loss.

(c)

Prior to April 1, 2023, the Company paid the Business Manager an annual business management fee equal to 0.65% of its “average invested assets.” The fee was payable quarterly in an amount equal to 0.1625% of its average invested assets as of the last day of the immediately preceding quarter. Effective April 1, 2023, the Company began paying the Business Manager an annual business management fee equal to 0.55% of its “averaged invested assets.” The fee is payable quarterly in an amount equal to 0.1375% of its average invested assets as of the last day of the immediately preceding quarter. “Average invested assets” means, for any period, the average of the aggregate book value of the Company’s assets, including all intangibles and goodwill, invested, directly or indirectly, in equity interests in, and loans secured by, properties, as well as amounts invested in securities and consolidated and unconsolidated joint ventures or other partnerships, before reserves for amortization and depreciation or bad debts, impairments or other similar non-cash reserves, computed by taking the average of these values at the end of each month during the relevant calendar quarter. Unpaid amounts are included in due to related parties on the consolidated balance sheets. The Business Management Agreement terminates on March 31, 2027.