Related Party Transactions

9 Months Ended

Sep. 30, 2020

As described further in Note 5 – ‘Investments in Unconsolidated Entity’, during the nine months ended September 30, 2019, we formed an unconsolidated entity with Alinda, an infrastructure investment firm. We contributed a hyperscale data center under development in Manassas, Virginia to the entity. The facility, and the previously executed operating lease to a global cloud-based software company pursuant to a 10-year lease agreement, was contributed in exchange for cash and noncash consideration in the form of equity interest in the entity that was measured at fair value pursuant to ASC Topic 820. We and Alinda each own a 50% interest in the entity.

Under the unconsolidated entity operating agreement, we serve as the entity’s operating member, subject to authority and oversight of a board appointed by us and Alinda, and separately we serve as manager and developer of the facility in exchange for management and development fees. During the three months ended September 30, 2020, we did not earn any development fees from the unconsolidated entity and earned less than $0.1 million during the three months ended September 30, 2019. We earned development fees of approximately $0.9 million and $0.4 million for the nine months ended September 30, 2020 and 2019, respectively. In addition, we earned approximately $0.2 million and $0.1 million in management fees from the unconsolidated entity during the three months ended September 30, 2020 and 2019, respectively, and $0.6 million and $0.3 million for the nine months ended September 30, 2020 and 2019, respectively.

In addition, we periodically execute transactions with entities affiliated with our Chairman and Chief Executive Officer. Such transactions include automobile, furniture and equipment purchases as well as building operating lease payments and receipts, and reimbursement for the use of a private aircraft service by our officers and directors.

The transactions which occurred during the three and nine months ended September 30, 2020 and 2019 are outlined below (unaudited and in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Tax, utility, insurance and other reimbursement	$	114	$	173	$	368	$	608
Rent expense	257		254		770		761
Capital assets acquired	—		53		—		477
Total	$	371	$	480	$	1,138	$	1,846