RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2011

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 6. RELATED PARTY TRANSACTIONS

The following table reconciles the beginning and ending balances of accounts receivable from and (accounts payable) to affiliates as of September 30, 2011 (dollars in thousands):

	Prime			Pillar			ARL			Total
Balance, December 31, 2010	$	-		$	-		$	(47,261	)	$	(47,261	)
Cash transfers		3,588			7,536			-			11,124
Advisory fees		(3,528	)		(4,382	)		-			(7,910	)
Cost reimbursements		(1,658	)		(99	)		-			(1,757	)
Interest to advisor		(926	)		(878	)		-			(1,804	)
POA fees		(10	)		(42	)		-			(52	)
Expenses paid by advisor		(1,240	)		2,233			-			993
Financing (mortgage payments)		(382	)		(5,041	)		-			(5,423	)
Note receivable with affiliate		8,016			2,825			-			10,841
Sales/Purchases transactions		888			(5,307	)		57,010			52,591
Intercompany property transfers		8,543			4,383			-			12,926
Purchase of obligations		(13,291	)		(1,228	)		14,519			-
Balance, September 30, 2011	$	-		$	-		$	24,268		$	24,268

During the ordinary course of business, we have related party transactions that include, but are not limited to rent income, interest income, interest expense, general and administrative costs, commissions, management fees, and property expenses. In addition, we have assets and liabilities that include related party amounts. The affiliated amounts included in assets and liabilities, and the affiliated revenues and expenses received/paid are shown on the face of the financial statements.

Acquisitions from our parent, ARL, have previously been reflected at the fair value purchase price. Upon discussion with the SEC and in review of the guidance pursuant to ASC 250-10-45-22 to 24, we have adjusted those assets, in the current year, to reflect a basis equal to ARL’s cost basis in the asset at the time of the sale. The affiliate payables to ARL were reduced for the lower asset price.