RELATED PARTY TRANSACTIONS

During the ordinary course of business, we have transactions with Whitestone that include, but are not limited to, rental income, interest expense, general and administrative costs, commissions, management and asset management fees, and property expenses.

In connection with the Contribution Agreement, on December 8, 2016, the Company and Pillarstone OP entered into a Management Agreement (collectively, the “Management Agreements”) with Whitestone TRS, Inc., a subsidiary of Whitestone (“Whitestone TRS”). Pursuant to the Management Agreements with respect to each property, other than Uptown Tower, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services to such properties in exchange for (1) a monthly property management fee equal to 5.0% of the monthly revenues of each property and (2) a monthly asset management fee equal to 0.125% of GAV (as defined in each Management Agreement as, generally, the purchase price of the respective property based upon the purchase price allocations determined pursuant to the Contribution Agreement, excluding all indebtedness, liabilities or claims of any nature) of such property. Pursuant to the Management Agreement with respect to Uptown Tower, Whitestone TRS agreed to provide certain property management, leasing and day-to-day advisory and administrative services in exchange for (1) a monthly property management fee equal to 3.0% of the monthly revenues of Uptown Tower and (y) a monthly asset management fee equal to 0.125% of GAV of Uptown Tower.

The following table presents the revenue and expenses with Whitestone included in our consolidated statement of operations for the three months ended March 31, 2017 (in thousands):



	Location of Revenue (Expense)	March 31, 2017
Rent	Rental revenues	$	185
Property management fees	Property operation and maintenance	$	(192	)
Asset management fees	Property operation and maintenance	$	(66	)
Interest expense	Interest expense	$	(124	)

Receivables due from related parties consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017		December 31, 2016
Construction in process ⁽¹⁾	$	2,012	$	1,439
Tenant receivables and other receivables	931		1,379
Total	$	2,943	$	2,818


⁽¹⁾	Amount relates to future tenant and building improvement expenditures implicit within the Contribution Agreement to be paid by Whitestone and capitalized by the Company in subsequent periods when placed in service.

Payables due to related parties consisted of the following as of March 31, 2017 and December 31, 2016 (in thousands):



	March 31, 2017		December 31, 2016
Payable due to related parties	$	965	$	265
Total	$	965	$	265