Related Party Transactions and Arrangements (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Amount Contractually Due and Forgiven in Connection With Operation Related Services

The following table details amounts incurred, forgiven and payable in connection with the Company’s operations-related services described above as of and for the periods presented:



	Year Ended December 31,							Payable (Receivable) as of
	2019			2018		2017		December 31,
(In thousands)	Incurred⁽¹⁾			Incurred⁽¹⁾		Incurred ⁽¹⁾		2019				2018
One-time fees and reimbursements:
Acquisition cost reimbursements	$	39		$	176	$	124	$	—			$	32
Financing coordination fees	—			—		—		—				—
Due from HT III related to the Asset Purchase ⁽²⁾	—			—		—		—				(154		)
Ongoing fees and reimbursements:
Asset management fees	19,526			19,500		19,189		27				—
Property management fees	3,888			3,571		3,068		(44		)		58
Professional fees and other reimbursements⁽⁵⁾	10,073		^{(4 )(5)}	8,883		7,553		(377		)	⁽⁶⁾	674			^{(5) (6)}
Distributions on Class B Units ⁽³⁾	305			340		543		—				—
Total related party operation fees and reimbursements	$	33,831		$	32,470	$	30,477	$	(394	)		$	610

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⁽¹⁾	There were no fees or reimbursements forgiven during the years ended December 31, 2019, 2018 or 2017.

⁽²⁾

On December 22, 2017, the Company purchased substantially all the assets of HT III. Certain proration estimates were included within the closing. The purchase agreement called for a final purchase price adjustment. The Company had a $0.2 million net receivable related to the Asset Purchase included on the consolidated balance sheet as of December 31, 2018. Please see below for additional information related to the Asset Purchase.

⁽³⁾

Prior to April 1, 2015, the Company caused the OP to issue (subject to periodic approval by the Board) to the Advisor restricted performance-based Class B Units for asset management services. As of December 31, 2019, the Board had approved the issuance of 359,250 Class B Units to the Advisor in connection with this arrangement. Effective April 1, 2015, the Company began paying an asset management fee to the Advisor or its assignees in cash, in shares, or a combination of both and no longer issues any Class B Units.


⁽⁴⁾	Includes $7.2 million related to the Capped Reimbursement Amount for the year ended December 31, 2019.

⁽⁵⁾

Balance as of December 31, 2018 includes costs which were incurred and accrued due to American National Stock Transfer, LLC, a subsidiary of RCS Capital Corporation (“RCAP”) which were related parties of the Company. During the year ended December 31, 2019, the Company recorded a reduction of general and administrative expenses in the amount of $0.5 million related to the reversal of this payable balance due to RCAP, which at the time the payable balance was recorded and prior to its bankruptcy filing was under common control with the Advisor.

⁽⁶⁾Balance includes a receivable of $0.5 million from the Advisor as of December 31, 2019 previously recorded in the fourth quarter of 2018, which, pursuant to authorization by the independent members of the Company’s board of directors, is payable over time during 2020.