RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2018

Summarized below are the related party costs incurred by the Company, including those incurred pursuant to the Advisory Agreement, for the three and six months ended June 30, 2018 and 2017, respectively:

	Three Months Ended			Six Months Ended							Three Months Ended			Six Months Ended
	June 30, 2018						June 30, 2018				June 30, 2017						December 31, 2017
	Incurred			Incurred			Receivable		Payable		Incurred			Incurred			Receivable		Payable
Expensed
Asset management fees (1)	$	477,915		$	879,230		$	—	$	164,685	$	196,856		$	308,154		$	—	$	567,661
Subordinated participation fees		—			—			—		—		—			—			—		315,802
Fees to affiliates		477,915			879,230							196,858			308,154
Property management fees*		19,212			32,151			—		—		622			622			—		7,969
Directors and Officers insurance and other reimbursements**		36,083			52,716			—		657		—			—			—		—
Expense reimbursements from (to) Sponsor (2)		(293,939	)		(653,453	)		26,448		15,800		(672,904	)		(1,360,930	)		34,194		—
Waiver of asset management fees (1)		—			—			—		—		(49,214	)		(77,039	)		—		—
Capitalized:
Acquisition fees		496,358			952,358			—		22,358		882,971			1,483,571			—		—
Financing coordination fees		—			209,550			—		—		—			87,450			—		—
Reimbursable organizational and offering expenses (3)		386,053			816,297			—		3,217		529,991			1,138,121			—		15,945
							$	26,448	$	206,717							$	34,194	$	907,377

*	Property management fees are classified within property operating expenses on the condensed consolidated statements of operations.
**	Directors and officers’ insurance and other reimbursements are classified within general and administrative expenses on the condensed consolidated statements of operations.

(1)	To the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Advisor will be deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the three months ended June 30, 2018 and 2017, the Advisor waived zero and $49,214, respectively, of asset management fees, which are not subject to future recoupment by the Advisor and for the six months ended June 30, 2018 and 2017, the Advisor waived zero and $77,039, respectively, of asset management fees, which are not subject to future recoupment by the Advisor. In addition to amounts presented in this table, the Company also incurred asset management fees to the Advisor of $47,984 and $95,966 related to its TIC Interest in the Santa Clara property during the three and six months ended June 30, 2018, respectively, which amounts are reflected as a reduction of income recognized from investments in unconsolidated entities.
(2)	Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “— Investor Relations Payroll Expense Reimbursement from Sponsor” below . The Sponsor has agreed to reimburse the Company for these investor relations payroll costs which the Sponsor considers to be offering expenses in accordance with the Advisory Agreement. The expense reimbursements from the Sponsor for the three and six months ended June 30, 2018 also include zero and $48,422, respectively, of employment related legal fees which the Sponsor also agreed to reimburse the Company. The receivables related to these costs are reflected in “Due from affiliates” in the condensed consolidated balance sheets.
(3)	As of June 30, 2018, the Sponsor had incurred $7,918,815 of organizational and offering costs on behalf of the Company. However, the Company is only obligated to reimburse the Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds.