v3.26.1
Related Party Transactions
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Related Party Transactions
7.Related Party Transactions

 

The Company has various agreements, including an advisory agreement, with the Advisor and its affiliates to pay certain fees in exchange for services performed by these entities and other related parties. The Company’s ability to secure financing and subsequent real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements.

 

The following table represents the fees incurred associated with the services provided by the Company’s Advisor and its affiliates:

 

   For the
Three Months Ended		 
   March 31,
2026		   March 31,
2025		 
Asset management fees (general and administrative costs)  $496   $489 
Property management fees  (property operating expenses)   80    78 
Development fees and  cost reimbursement (1)   -    50 
Total  $576   $617 

 

(1)Development fees and the reimbursement of development-related costs that the Company pays to the Advisor and its affiliates are capitalized and are included in the carrying value of the associated development project which are classified as development projects on the consolidated balance sheets until construction is substantially completed. Once construction is substantially completed these amounts are recorded as property operating expenses.

 

Amounts owed to the Advisor and its affiliated entities are included in accounts payable, accrued expenses and other liabilities on the consolidated balance sheets. As of March 31, 2026 and December 31, 2025, the Company owed the Advisor and its affiliated entities an aggregate of $1.5 million and $1.0 million, respectively.

 

The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. In the event of a liquidation of the Company’s assets, it may pay the Advisor or its affiliates disposition commissions.