Related Party Transactions

12 Months Ended

Dec. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

We are externally advised by Shidler Pacific Advisors, an entity that is owned and controlled by Mr. Shidler. Shidler Pacific Advisors is responsible for the day to day operations and management of the Company, including management of our wholly-owned properties. For its services, Shidler Pacific Advisors earned a corporate management fee of $0.2 million per quarter, which is reflected in “General and administrative” expenses in the accompanying consolidated statements of operations for the years ended December 31, 2015 and 2014, and property management fees of 2.5% to 3.0% of the rental cash receipts collected by the wholly-owned properties, and related fees; however, such property management and related fees are required to be consistent with prevailing market rates for similar services provided on an arms-length basis in the area in which the subject property is located.

The fees that we paid Shidler Pacific Advisors for services relating to property management, corporate management, construction management and other services are summarized in the table below (in thousands):

	For the year ended December 31,
	2015		2014
Property management	$	1,896	$	1,961
Corporate management	700		853
Construction management and other	198		109
Total	$	2,794	$	2,923

Shidler Pacific Advisors leases space from us at certain of our wholly-owned properties for building management and corporate offices. The rents from these leases totaled $0.6 million and $0.5 million for the years ended December 31, 2015 and 2014, respectively. At December 31, 2015, we have $0.4 million owed to Shidler Pacific Advisors included in “Accounts payable and other liabilities” in the accompanying consolidated balance sheets.

During each of the years ended December 31, 2015 and 2014, we recognized $0.5 million in interest to Shidler LP for the annual fee related to its security pledge for the FHB Credit Facility. See Note 9 for more discussion on the FHB Credit Facility, including the security pledge made by Shidler LP.

The Operating Partnership has agreed to indemnify James C. Reynolds with respect to all of his obligations under certain guaranties provided by Mr. Reynolds to lenders of indebtedness encumbering certain of our properties. Mr. Reynolds is the beneficial owner of 12% of our Class A Common Stock. See Note 11 for additional discussion on these indemnities.

At December 31, 2015 and 2014, $15.6 million and $12.8 million, respectively, of accrued interest attributable to unsecured notes payable to current and former related parties is included in the accompanying consolidated balance sheets. See Note 10 for a detailed discussion on these unsecured notes payable.

In May 2013, we agreed to provide short-term financing of up to $0.5 million to one of our unconsolidated joint ventures. This loan bore interest at the annual compounded rate of 12% and was scheduled to mature at the earlier of September 1, 2014 or the full repayment or discharge of the senior loans secured by the joint venture’s properties. In November 2014, the joint venture sold its portfolio of properties and repaid the loan and accrued interest in full which amounted to approximately $0.4 million.