Related Parties

12 Months Ended

Dec. 31, 2018

Related Party Transactions [Abstract]

Related Parties

23. Related Parties

Due to Affiliates

On November 13, 2018, we repaid the $27,299,000 of loans that were due to affiliates. These loans were comprised of a $24,500,000 note payable to CNBB-RDF Holdings, LP, which is an entity partially owned by Katharina Otto-Bernstein (a member of our Board of Directors), and a $2,799,000 note payable to a different entity owned by members of the Otto Family, both of which were made in lieu of certain cash distributions prior to the completion of our initial public offering. The notes bore interest at a fixed rate of 1.40%. For the years ended December 31, 2018, 2017 and 2016, we recognized $334,000, $197,000 and $139,000 of interest expense, respectively, in connection with these notes, which is included as a component of “interest and debt expense” on our consolidated statements of income.

Management Agreements

We provide property management, leasing and other related services to certain properties owned by members of the Otto Family. We recognized fee income of $838,000, $824,000 and $795,000 for the years ended December 31, 2018, 2017 and 2016, respectively, in connection with these agreements, which is included as a component of “fee and other income” on our consolidated statements of income. As of December 31, 2018, we were owed $51,000 under these agreements, which is included as a component of “accounts and other receivables, net” on our consolidated balance sheet. There were no amount owed to us under these agreements as of December 31, 2017.

We also provide property management, asset management, leasing and other related services to our unconsolidated joint ventures and real estate funds. We recognized fee income of $15,231,000, $20,263,000 and $9,920,000, respectively, for the years ended December 31, 2018, 2017 and 2016, respectively, in connection with these agreements. As of December 31, 2018 and 2017, amounts owed to us under these agreements aggregated $1,836,000 and $1,627,000, respectively, and are included as a component of “accounts and other receivables, net” on our consolidated balance sheets.

Hamburg Trust Consulting GMBH (“HTC”)

We have an agreement with HTC, a licensed broker in Germany, to supervise selling efforts for our private equity real estate funds (or investments in feeder vehicles for these funds) to investors in Germany, including distribution of securitized notes of a feeder vehicle for Fund VIII. Pursuant to this agreement, we have agreed to pay HTC for the costs incurred to sell investments in this feeder vehicle, which primarily consist of commissions paid to third party agents, and other incremental costs incurred by HTC as a result of the engagement, plus, in each case, a mark-up of 10%. HTC is 100% owned by Albert Behler, our Chairman, Chief Executive Officer and President. We incurred expense of $240,000, $247,000 and $625,000 for the years ended December 31, 2018, 2017 and 2016, respectively, in connection with these agreements, which is included as a component of “transaction related costs” on our consolidated statements of income. As of December 31, 2018 and 2017, we owed $40,000 and $51,000, respectively, to HTC under this agreement, which are included as a component of “accounts payable and accrued expenses” on our consolidated balance sheets.

Mannheim Trust

Dr. Martin Bussmann (a member of our Board of Directors) is also a trustee and a director of Mannheim Trust, a subsidiary of which leases office space at 712 Fifth Avenue, our 50.0% owned unconsolidated joint venture. The Mannheim Trust, which is for the benefit of Dr. Bussmann’s children, leases 5,593 square feet, which expires in April 2023. Our share of rental income from this lease was $366,000, $358,000 and $416,000, for the years ended December 31, 2018, 2017 and 2016, respectively.