Related-Party Transactions

12 Months Ended

Dec. 31, 2012

Related-Party Transactions [Abstract]

Related-Party Transactions

19. Related-Party Transactions

FUR Advisors

The activities of the Trust are administered by FUR Advisors LLC (“FUR Advisors”) pursuant to the terms of the Advisory Agreement between the Trust and FUR Advisors. Effective January 1, 2013, the Advisory Agreement was amended and restated which revised terms including a description of the incentive fee are set forth in Note 24 – Subsequent Events.

FUR Advisors is controlled by and partially owned by the executive officers of the Trust. Pursuant to the terms of the Advisory Agreement, FUR Advisors is responsible for providing asset management services to the Trust and coordinating with the Trust’s shareholder transfer agent and property managers. Under the Advisory Agreement in effect during 2010, 2011 and 2012, FUR Advisors was entitled to receive a base management fee and an incentive fee in accordance with the terms of the Advisory Agreement. The base management fee, which is paid on a quarterly basis, equals to 1.5% of (i) the issuance price of our outstanding equity securities plus (ii) 0.25% of any equity contribution by an unaffiliated third party to a venture managed by the Trust. Pursuant to the terms of the Advisory Agreement, no incentive fee was payable during the years ended 2010, 2011 or 2012. In addition, FUR Advisors or its affiliate is also entitled to receive property management fees and construction management fees at commercially reasonable rates.

The following table sets forth the fees and reimbursements paid by the Trust for the years ended December 31, 2012, 2011 and 2010 to FUR Advisors and Winthrop Management (in thousands):

	For the Years Ended
	December 31, 2012		December 31, 2011		December 31, 2010
Base Asset Management Fee (1)	$	8,953	$	7,690	$	5,225
WRP Sub-Management LLC Credit		—		—		(129	)
Property Management Fee		724		537		248
Construction Management Fee		128		1		24
	$	9,805	$	8,228	$	5,368

(1) The base asset management fee attributable to third party equity contributions amounted to $139,000, $49,000 and $10,000 for the years ended December 31, 2012, 2011 and 2010, respectively.

Winthrop Management

Winthrop Management, an affiliate of FUR Advisors and the Trust’s executive officers, assumed property management responsibilities for various properties owned by the Trust pursuant to the terms of individual property management agreements.

Credits

WRP Sub-Management LLC (“WRP Sub-Management”), an affiliate of FUR Advisors provided accounting, collateral management and loan brokerage services to CDO-1 and its subsidiaries. WRP Sub-Management received reimbursement of direct and indirect expenses totaling $716,000 for the year ended December 31, 2010, in accordance with the terms of the agreement. Of this amount, $259,000 was paid to reimburse it for costs associated with providing accounting and other “back-office” services for the benefit of Concord and CDO-1 (the “Affiliate Amount”). Because the Trust pays an advisory fee to FUR Advisors whereas the Trust’s partners in Concord do not, the advisory fee payable to FUR Advisors by the Trust was reduced by 50% of the Affiliate Amount to ensure equal treatment of the Trust and its partners with respect to the reimbursements paid by Concord. For the year ended December 31, 2010, the Trust received and utilized a credit of $129,000 against the base management fee.

Other Transactions

On October 4, 2012 the Trust purchased from an affiliate of FUR Advisors for $75,000 a 100% membership interest in the entity that holds fee simple title to a Class B office building located in Cerritos, California. See Note 4 for a detailed description of this transaction and for additional activity between the Trust and Concord or CDH CDO.