Related Party Transactions and Arrangements (Tables)

9 Months Ended

Sep. 30, 2017

The following table shows the offering fee summary information for the Cole REITs conducting offerings as of September 30, 2017:



	Selling Commissions ⁽¹⁾	Dealer Manager Fees ⁽²⁾		Annual Distribution and Stockholder Servicing Fee ⁽²⁾
Open Programs

CCPT V
Class A Shares	7%	2%		—%
Class T Shares	3%	2%		1%	⁽³⁾

INAV
Wrap Class Shares	—%	0.55%	⁽⁴⁾	—%
Advisor Class Shares	up to 3.75%	0.55%	⁽⁴⁾	0.5%	⁽⁴⁾
Institutional Class Shares	—%	0.25%	⁽⁴⁾	—%

CCIT III
Class A Shares	7%	2%		—%
Class T Shares	3%	2%		1%	⁽³⁾

_______________________________________________


(1)	The Company reallowed 100% of selling commissions to participating broker-dealers during the three and nine months ended September 30, 2017 and 2016.


(2)	The Company may reallow all or a portion of its dealer manager fee and/or distribution and stockholder servicing fee to participating broker-dealers as a marketing and due diligence expense reimbursement.


(3)	The maximum amount of the distribution and stockholder servicing fee with respect to sales of Class T shares is 4.0% of the gross offering proceeds for CCPT V and CCIT III. Distribution and stockholder servicing fees continue to be paid after the offering closes if the 4.0% maximum has not been met.


(4)	Fees are accrued daily in the amount of 1/365th of a percentage of the estimated per share NAV and payable monthly in arrears.

Transaction Related Fees [Member]

Schedule of Related Party Transactions

The following table shows the transaction-related fees for the Cole REITs and other real estate programs as of September 30, 2017:



Program	Acquisition Fees ⁽¹⁾	Disposition Fees	Performance Fees ⁽²⁾	Financing Coordination Fee ⁽³⁾
Open Programs
CCPT V	2%	1%	15%	—
INAV	—	—	—	—
CCIT III	2%	1%	15%	1%

Closed Programs
CCIT II	2%	1%	15%	—
CCPT IV	2%	1%	15%	—
Other Programs	Various	Various	Various	—

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(1)	Percent taken on gross purchase price.

(2)

Performance fee paid only under the following circumstances: (i) if shares are listed on a national securities exchange; (ii) if the respective Cole REIT is sold or the assets are liquidated; or (iii) upon termination of the advisory agreement. In connection with such events, the performance fee will only be earned upon the return to investors of their net capital invested and a 6% annual cumulative, non-compounded return (8% in the case of CCIT II and CCPT IV).


(3)	Financing coordination fee payable for services in connection with the origination, assumption, or refinancing of any debt (other than loans advanced by the Company) to acquire properties or make other permitted investments.

Management Service Revenue [Member]

Schedule of Related Party Transactions

The following table shows the management fees for the Cole REITs as of September 30, 2017:



Program	Asset Management / Advisory Fees ⁽¹⁾	Performance Fees ⁽²⁾
Open Programs
CCPT V	0.65% - 0.75%	—
INAV	0.90%	25%
CCIT III	0.65% - 0.75%	—

Closed Programs
CCIT II	0.65% - 0.75%	—
CCPT IV	0.65% - 0.75%	—
Other Programs	Various	—

_______________________________________________

(1) Annualized fee based on the average monthly invested assets or average assets, as defined in the respective agreements, or net asset value, if available.

(2) The performance fee is limited to 10% of the aggregate total return, for each class, for any individual year.

Revenue from Managed REITs [Member]

Schedule of Related Party Transactions

The table below reflects the revenue earned from the Cole REITs (including closed programs, as applicable) and joint ventures for the three and nine months ended September 30, 2017 and 2016 (in thousands).



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Offering-related fees and reimbursements
Selling commissions ⁽¹⁾	$	1,816	$	5,008	$	6,336	$	18,112
Dealer manager and distribution fees ⁽²⁾	1,278		2,237		3,766		7,292
Reimbursement revenue	788		2,300		2,619		7,446
Offering-related fees and reimbursements	3,882		9,545		12,721		32,850

Transaction service fees and reimbursements
Acquisition fees	3,320		2,593		9,965		8,053
Financing coordination fee	—		220		—		220
Reimbursement revenues	644		686		2,145		2,024
Transaction service fees and reimbursements	3,964		3,499		12,110		10,297

Management fees and reimbursements
Asset and property management fees and leasing fees	56		53		161		159
Advisory and performance fee revenue	14,532		13,011		42,318		37,621
Reimbursement revenues	4,620		4,430		14,070		12,803
Management fees and reimbursements	19,208		17,494		56,549		50,583

Interest income on Affiliate Lines of Credit	24		—		221		308

Total related party revenues⁽³⁾	$	27,078	$	30,538	81,601		94,038

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(1)	The Company reallowed 100% of selling commissions to participating broker-dealers during the three and nine months ended September 30, 2017 and 2016.

(2)

During the three and nine months ended September 30, 2017, the Company reallowed $0.6 million and $1.6 million, respectively, of dealer manager fees and/or distribution and stockholder servicing fees to participating broker-dealers as a marketing and due diligence expense reimbursement. During the three and nine months ended September 30, 2016, the Company reallowed $0.9 million and $2.8 million, respectively, of such fees.


(3)	Total related party revenues excludes fees earned from 1031 real estate programs of $0.1 million and $1.6 million for the three and nine months ended September 30, 2017, respectively, and $0.5 million and $1.1 million for the three and nine months ended September 30, 2016, respectively.

Investments In Managed REITs [Member]

Schedule of Related Party Transactions

The table below presents certain information related to the Company’s investments in the Cole REITs as of September 30, 2017 (carrying amount in thousands):



	September 30, 2017
Cole REIT	% of Outstanding Shares Owned	Carrying Amount of Investment
CCPT V	0.77%	$	1,270
INAV	0.06%	128
CCIT II	0.43%	1,154
CCIT III	16.89%	731
CCPT IV	0.01%	107
Funds not yet in offering	100.00%	400
Total		$	3,790