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Related Party Transactions
9 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions
13. Related Party Transactions
Fees and Expenses Paid to Affiliates
As of September 30, 2021, all of our executive officers and one of our non-independent directors were also executive officers and employees and/or holders of a direct or indirect interest in our advisor, one of our co-sponsors or other affiliated entities. We were affiliated with our advisor, American Healthcare Investors and AHI Group Holdings; however, we were not affiliated with Griffin Capital, our dealer manager, Digital Bridge or Mr. Flaherty. We entered into the Advisory Agreement, as amended, which entitled our advisor and its affiliates to specified compensation for certain services, as well as reimbursement of certain expenses. Our board, including a majority of our independent directors, reviewed the material transactions between our affiliates and us during the nine months ended September 30, 2021. We believe that we have executed all of the transactions set forth below on terms that are fair and reasonable to us and on terms no less favorable to us than those available from unaffiliated third parties.
Fees and expenses to our affiliates incurred for the three and nine months ended September 30, 2021 and 2020 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
 2021202020212020
Asset management fees(1)$2,454,000 $2,446,000 $7,359,000 $7,292,000 
Property management fees(2)383,000 376,000 1,124,000 1,100,000 
Lease fees(3)211,000 117,000 632,000 254,000 
Construction management fees(4)36,000 12,000 98,000 76,000 
Operating expenses(5)24,000 37,000 103,000 122,000 
Development fees(6)19,000 22,000 74,000 24,000 
Base acquisition fees and reimbursement of acquisition expenses(7)2,000 35,000 184,000 1,476,000 
Total
$3,129,000 $3,045,000 $9,574,000 $10,344,000 
__________
(1)Asset management fees were included in general and administrative in our accompanying condensed consolidated statements of operations.
(2)Property management fees were included in rental expenses or general and administrative expenses in our accompanying condensed consolidated statements of operations, depending on the property type from which the fee was incurred.
(3)Lease fees were capitalized as costs of entering into new leases and included in other assets, net in our accompanying condensed consolidated balance sheets, and amortized over the term of the lease.
(4)Construction management fees were capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets.
(5)We reimbursed our advisor or its affiliates for operating expenses incurred in rendering services to us, subject to certain limitations. For the 12 months ended September 30, 2021 and 2020, our operating expenses did not exceed such
limitations. Operating expenses were generally included in general and administrative in our accompanying condensed consolidated statements of operations.
(6)Development fees were expensed as incurred and included in business acquisition expenses in our accompanying condensed consolidated statements of operations.
(7)Such amounts were capitalized as part of the associated asset and included in real estate investments, net in our accompanying condensed consolidated balance sheets or were expensed as incurred and included in business acquisition expenses in our accompanying condensed consolidated statements of operations, as applicable.
Accounts Payable Due to Affiliates
The following amounts were outstanding to our affiliates as of September 30, 2021 and December 31, 2020:
FeeSeptember 30,
2021
December 31,
2020
Lease commissions$210,000 $8,000 
Operating expenses34,000 10,000 
Property management fees32,000 117,000 
Construction management fees31,000 33,000 
Development fees16,000 64,000 
Asset management fees1,000 814,000 
Total$324,000 $1,046,000