RECEIVABLE FROM AND PAYABLE TO AFFILIATES

9 Months Ended

Sep. 30, 2011

RECEIVABLE FROM AND PAYABLE TO AFFILIATES

RECEIVABLE FROM AND PAYABLE TO AFFILIATES

NOTE 6. RECEIVABLE FROM AND PAYABLE TO AFFILIATES

From time to time, IOT and its affiliates and related parties have made unsecured advances to each other which include transactions involving the purchase, sale, and financing of property.  In addition, we have a cash management agreement with our advisor.  The agreement provides for excess cash to be invested in and managed by our advisor Pillar, an affiliated entity.  The table below reflects the various transactions between IOT, Pillar, Prime, and TCI (dollars in thousands):

	TCI		Prime			Pillar			Total
Balance, December 31, 2010	$	48,598	$	-		$	-		$	48,598
Cash transfers		-		2,409			(159	)		2,250
Advisory fees		-		(293	)		(357	)		(650	)
Cost reimbursements		-		(116	)		(51	)		(167	)
Expenses paid by advisor		-		73			78			151
Financing (mortgage payments)		-		718			(320	)		398
Sales/Purchases transactions		-		-			1,202			1,202
Interest income		567		640			352			1,559
POA fees		-		(2	)		(5	)		(7	)
Property transfers		-		-			(3	)		(3	)
Purchase of obligation		4,166		(3,429	)		(737	)		-
Balance, September 30, 2011	$	53,331	$	-		$	-		$	53,331