Pursuant to the terms of these agreements, summarized below are the related-party costs incurred by the Company for the three months ended March 31, 2017 and 2016, respectively, and any related amounts payable as of March 31, 2017 and December 31, 2016 (in thousands):



	Incurred				Payable as of
	Three Months Ended March 31,				March 31, 2017		December 31, 2016
	2017		2016		March 31, 2017		December 31, 2016
Expensed
Asset management fees	$	2,748	$	2,088	$	—	$	—
Reimbursable operating expenses ⁽¹⁾	69		44		27		55
Capitalized
Acquisition fees on real estate ⁽²⁾	836		—		—		—
	$	3,653	$	2,132	$	27	$	55

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⁽¹⁾ The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company has reimbursed the Advisor for the Company’s allocable portion of the salaries, benefits and overhead of internal audit department personnel providing services to the Company. These amounts totaled $55,000 and $44,000 for the three months ended March 31, 2017 and 2016, respectively, and were the only employee costs reimbursed under the Advisory Agreement during these periods. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company's direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company.

⁽²⁾ As a result of the adoption of ASU No. 2017-01, the Company’s acquisitions of real estate properties beginning January 1, 2017 could qualify as an asset acquisition (as opposed to a business combination). Acquisition fees associated with asset acquisitions will be capitalized, while these costs associated with business combinations will continue to be expensed as incurred.