Related Party Transactions

The following summarizes related party activity as of and for the years ended December 31, 2017, 2016 and 2015. The amounts disclosed below reflect the activity between the Company and Mr. Wheeler's affiliates (in thousands).



	December 31,
	2017		2016		2015
Amounts paid to affiliates	$	48	$	125	$	986
Amounts received from affiliates	$	2,517	$	1,347	$	777
Amounts due from affiliates	$	—	$	1,456	$	481
Notes receivable	$	6,739	$	12,000	$	—

As discussed in Note 4, the Company loaned $11.00 million for the partial funding of Pineland Station Shopping Center in Hilton Head, South Carolina to be known in the future as Sea Turtle Development and loaned $1.00 million for the sale of land to be used in the development. The Company has recognized a $5.26 million impairment charge on the note receivable as discussed in greater detail in Note 4. The impairment charge is presented as “impairment of notes receivable” on the consolidated statements of operations. Subsequent to December 31, 2017, the Company's agreement to perform development, leasing, property and asset management services for Sea Turtle Development was terminated. Prior to the termination of the agreements, development fees of 5% of hard costs incurred were paid to the Company. Leasing, property and asset management fees were consistent with those charged for services provided to non-related properties.

The Company has reserved $2.36 million in amounts due from affiliates at December 31, 2017, as follows:



Sea Turtle Development
Accrued interest on note receivable - due at maturity	$	895
Accrued interest on note receivable - currently due	443
Leasing Commissions	190
Development fees	182
Other	18
Other non-REIT Properties	636
	$	2,364

Of the gross $833 thousand currently due from Sea Turtle Development $323 thousand was earned during the three months ended December 31, 2017. Amounts due from Sea Turtle Development are reserved due to uncertainty surrounding the collectability given current cash flow models. Cash flow models on the project include development costs to date, anticipated cost to complete, executed leases, and financing available to complete and stabilize the project. Capitalization rates utilized in these models are based upon rates that the Company believes to be within a reasonable range of current market rates for the respective project.

Amounts due from other non-REIT properties have been reserved based on available cash flows at the respective properties and payment history. The reserve is included in “provision for credit losses” on the consolidated statements of operations. Subsequent to December 31, 2017, the management agreements for these properties have or are in the process of being terminated.

At December 31, 2016, $657 thousand in accrued interest on the notes receivable was included in amounts due from affiliates, of this $415 thousand was due at maturity. Amounts due from affiliates also include $166 thousand in development fees at December 31, 2016. These amounts are included in "related party receivables, net" on the consolidated balance sheets.

In 2016, in connection with the acquisition of Berkley and Sangaree/Tri-County, the Operating Partnership entered into a tax protection agreement that obligates the Operating Partnership to reimburse Jon Wheeler, the Company's former CEO, for his tax liabilities resulting from the recognition of certain taxable income or gain in the event the Operating Partnership takes certain action prior to November 10, 2023 with respect to Sangaree Plaza, Tri-County Plaza and Berkley.