Related Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions Summarized below are the related party transaction costs incurred by the Company for the years ended December 31, 2021, 2020 and 2019, respectively, and any related amounts receivable and payable as of December 31, 2021 and 2020:


	Incurred for the Year Ended December 31,						Receivable as of December 31,
	2021		2020		2019		2021		2020
Assets Assumed through the Self-Administration Transaction
Cash to be received from an affiliate related to deferred compensation and other payroll costs	$	—	$	—	$	658	$	—	$	—
Other fees	—		243		—		—		293
Due from GCC
Reimbursable Expense Allocation	20		15		4		11		4
Payroll/Expense Allocation	19		653		481		260		1,114
Due from Affiliates
Payroll/Expense Allocation	—		—		1,217		—		—
O&O Costs (including payroll allocated to O&O)	—		—		157		—		—
Other Fees	—		—		6,375		—		—
Total incurred/receivable	$	39	$	911	$	8,892	$	271	$	1,411


	Incurred for the Year Ended December 31,						Payable as of December 31,
	2021		2020		2019		2021		2020
Expensed
Operating expenses	$	—	$	—	$	—	$	—	$	1,085
Asset management fees	—		—		—		—		695

Disposition fees	—		—		641		—		—
Costs advanced by the advisor	2,275		2,000		3,771		929		—
Consulting fee - shared services	2,520		2,500		2,500		461		—
Capitalized
Acquisition fees	—		—		942		—		—
Leasing commissions	—		—		2,540		—		—
Assumed through Self- Administration Transaction/EA Mergers
Earn-out	—		—		—		197		262
Other Fees	—		—		20		—		—
Stockholder Servicing Fee	—		—		692		92		494
Other
Distributions	8,688		10,537		14,138		739		736
Total incurred/payable	$	13,483	$	15,037	$	25,244	$	2,418	$	3,272

Dealer Manager Agreement

The Company entered into a dealer manager agreement and associated form of participating dealer agreement (the “Dealer Manager Agreement”) with the dealer manager for the Follow-On Offering. The terms of the Dealer Manager Agreement are substantially similar to the terms of the dealer manager agreement from the Company's initial public offering (“IPO”), except as it relates to the share classes offered and the fees to be received by the dealer manager. The Follow-On Offering terminated on September 20, 2020. See Note 9, Equity.

Subject to the Financial Industry Regulatory Authority, Inc.'s limitations on underwriting compensation, under the Dealer Manager Agreement the Company required payment to the dealer manager of a distribution fee for ongoing services rendered to stockholders by participating broker-dealers or broker-dealers servicing investors’ accounts, referred to as servicing broker-dealers. The fee accrued daily, is paid monthly in arrears, and is calculated based on the average daily NAV for the applicable month.

Conflicts of Interest

Affiliated Former Dealer Manager

Since Griffin Capital Securities, LLC, the Company's former dealer manager, is an affiliate of the Company's former sponsor, the Company did not have the benefit of an independent due diligence review and investigation of the type normally performed by an unaffiliated, independent underwriter in connection with the offering of securities. The Company's former dealer manager is also serving as the dealer manager for Griffin-American Healthcare REIT III, Inc. and Griffin-American Healthcare REIT IV, Inc., each of which are publicly-registered, non-traded REITs, as wholesale marketing agent for Griffin Institutional Access Real Estate Fund and Griffin Institutional Access Credit Fund both of which are non-diversified, closed-end management investment companies that are operated as interval funds under the 1940 Act, and as dealer manager or master placement agent for various private offerings.

Administrative Services Agreement

In connection with the EA Mergers, the Company assumed, as the successor of EA-1 and the GRT OP, an Administrative Services Agreement (the “Administrative Services Agreement”), pursuant to which Griffin Capital Company, LLC (“GCC”) and Griffin Capital, LLC (“GC LLC”) continue to provide office space and certain operational and administrative services at cost to the GRT OP, Griffin Capital Essential Asset TRS, Inc., and Griffin Capital Real Estate Company, LLC (“GRECO”),

which may include, without limitation, the shared information technology, human resources, legal, due diligence, marketing, customer service, events, operations, accounting and administrative support services set forth in the Administrative Services Agreement. The Company pays GCC a monthly amount based on the actual costs anticipated to be incurred by GCC for the provision of such office space and services until the Company elects to provide such space and/or services for itself or through another provider, which amount is initially $0.2 million per month, based on an approved budget. Such costs are reconciled quarterly and a full review of the costs will be performed at least annually. In addition, the Company will directly pay or reimburse GCC for the actual cost of any reasonable third-party expenses incurred in connection with the provision of such services.

Certain Conflict Resolution Procedures

Every transaction that the Company enters into with affiliates is subject to an inherent conflict of interest. The Board may encounter conflicts of interest in enforcing the Company's rights against any affiliate in the event of a default by or disagreement with an affiliate or in invoking powers, rights or options pursuant to any agreement between the Company and affiliates. See the Company's Code of Ethics available at the “Governance Documents” subpage of the investors section of the Company's website at www.grtreit.com for a detailed description of the Company's conflict resolution procedures.