v3.24.2
Agreements and Transactions with Related Parties
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
Agreements and Transactions with Related Parties Agreements and Transactions with Related Parties
 
Advisory Agreements and Partnership Agreements with NLOP and CESH
 
We currently have advisory arrangements with NLOP and CESH, pursuant to which we earn fees and are entitled to receive reimbursement for certain administrative expenses.
The following tables present a summary of revenue earned and reimbursable costs received/accrued from NLOP and CESH for the periods indicated, included in the consolidated financial statements (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Asset management revenue (a) (b)
$1,686 $303 $3,579 $642 
Administrative reimbursements (a) (c)
1,000 — 2,000 — 
Reimbursable costs from affiliates (a) (c)
57 124 120 225 
$2,743 $427 $5,699 $867 
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
NLOP$2,599 $— $5,403 $— 
CESH144 427 296 867 
$2,743 $427 $5,699 $867 
__________
(a)Amounts represent revenues from contracts under ASC 606.
(b)Included within Asset management revenue in the consolidated statements of income.
(c)Included within Other advisory income and reimbursements in the consolidated statements of income.

The following table presents a summary of amounts due from affiliates, which are included within Other assets, net in the consolidated financial statements (in thousands):
June 30, 2024December 31, 2023
Asset management fees receivable$542 $1,349 
Accounts receivable514 768 
Reimbursable costs52 59 
$1,108 $2,176 

Asset Management Revenue
 
Under the advisory agreement with CESH, we earn asset management revenue at a rate of 1.0% based on its gross assets at fair value, paid in cash. Under the advisory agreement with NLOP, we earn an asset management fee, which was initially set at an annual amount of $7.5 million and is being reduced proportionately following the disposition of each portfolio property.

Administrative Reimbursements

Under the advisory agreement with NLOP, we earn a base administrative amount of approximately $4.0 million annually, for certain administrative services, including day-to-day management services, investor relations, accounting, tax, legal, and other administrative matters, paid in cash.

Reimbursable Costs from Affiliates
 
CESH reimburses us in cash for certain personnel and overhead costs that we incur on its behalf, based on actual expenses incurred.

Back-End Fees and Interests in CESH

Under our advisory arrangements with CESH, we may also receive compensation in connection with providing a liquidity event for its investors. Such back-end fees or interests include interests in disposition proceeds. There can be no assurance as to whether or when any back-end fees or interests will be realized.
Other Transactions with Affiliates and Related Parties

Other

At June 30, 2024, we owned interests in eight jointly owned investments in real estate, with the remaining interests held by third parties. We consolidate four such investments and account for the remaining four investments under the equity method of accounting (Note 7). In addition, we owned limited partnership units of CESH at that date. We elected to account for our investment in CESH under the fair value option (Note 7).