Note 6 - Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions Disclosure [Text Block]

6.     Related Party Transactions

As of June 30, 2012, the Berg Group owned 75,769,684 O.P. units. The Berg Group’s combined ownership of O.P. units and shares of common stock as of June 30, 2012, represented approximately 74% of the total equity interests, assuming conversion of all O.P. units outstanding into the Company’s common stock.

As of June 30, 2012, debt in the amount of approximately $6,831 was due the Berg Group under a mortgage note established May 15, 2000, in connection with the acquisition of a 50% interest in Hellyer Avenue Limited Partnership, the obligor under the mortgage note. The mortgage note bears interest at 7.65% and principal payments are amortized over 20 years. Interest expense incurred in connection with the mortgage note was approximately $133 and $144 for the three months ended June 30, 2012 and 2011, respectively, and $268 and $291 for the six months ended June 30, 2012 and 2011, respectively.

During the second quarter of 2012, the Company issued one short-term note payable to the Berg Group in connection with the quarterly dividend distributions. The interest rate on the note was LIBOR plus 1.75%. The aggregate loan amount totaled approximately $12,867 and was repaid in full as of June 30, 2012. The Company repaid approximately $12,880 to the Berg Group, which included accrued interest. For the three months ended June 30, 2012, interest expense incurred in connection with that short-term note payable was approximately $13.

During the first six months of 2012 and 2011, Carl E. Berg or entities controlled by him held financial interests in several companies that lease space from the operating partnerships, which include companies where Mr. Berg has a greater than 10% ownership interest. These related tenants contributed approximately $424 and $409 in rental income for the three months ended June 30, 2012 and 2011, respectively, and $847 and $666 for the six months ended June 30, 2012 and 2011.

Under the Company’s charter, bylaws and agreements with the Berg Group, the individual members of the Berg Group are prohibited from acquiring or holding shares of the Company’s common stock if such acquisition would result in their beneficial ownership percentage of the Company’s common stock causing the Company to violate any REIT qualification requirement. Currently their share ownership is below a level at which rent from related tenants would be excluded in determining compliance with REIT qualification tests.

The Company currently leases office space owned by Berg & Berg Enterprises for the Company’s headquarters. Rental amounts and overhead reimbursements paid to Berg & Berg Enterprises were $30 for each of the three months ended June 30, 2012 and 2011, and $60 for each of the six months ended June 30, 2012 and 2011.