Related Party Transactions (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2018

Dec. 31, 2017

Summarized below are the related party costs incurred by the Company for the nine months ended September 30, 2018, and 2017, respectively, and amounts payable as of September 30, 2018 and December 31, 2017:



	Incurred for the Nine Months Ended September 30,				Payable as of September 30,			Payable as of December 31,
	2018		2017		2018			2017
Expensed
Corporate operating expenses	$	2,168	$	1,677	$	806		$	658
Asset management fees ⁽¹⁾	—		8,027		—			—
Property management fees	1,365		1,347		153			158
Performance distribution allocation	6,200		213		6,224			2,394
Advisory fees	6,970		273		784			762
Capitalized/Offering
Acquisition fees and expenses ⁽²⁾	—		1,099		—			—
Organization and offering expense	1,113		250		1,305		⁽⁶⁾	192
Other costs advanced by the Advisor	938		604		319			285
Selling commissions ⁽³⁾	66		1,127		—			—
Dealer Manager fees	11		393		—			—
Stockholder servicing fee ⁽⁴⁾	175		565		9,353			12,377
Advisor advances: ⁽⁵⁾
Organization and offering expenses	45		136		44			8
Dealer Manager fees	—		791		—			62
Total	$	19,051	$	16,502	$	18,988		$	16,896


(1)	As part of the Follow-On Offering, the Company's new management compensation structure no longer includes asset management fees.

(2)

Effective September 20, 2017, the Advisor is not entitled to acquisition fees, disposition fees or financing fees; provided, however, that the Advisor will receive the compensation set forth in the original advisory agreement for the Company’s investment in an approximately 1,000,000 square foot property located at 39000 Amrheim Road, Livonia, Michigan 48150 with a total transaction price of approximately $80.0 million.


(3)	On September 18, 2017, the Company and the Dealer Manager entered into a dealer manager agreement for the Follow-On Offering. See the "Dealer Manager Agreement" section below for details regarding selling commissions and dealer manager fees.

(4)

The Dealer Manager continues to receive a stockholder servicing fee with respect to Class AA shares as detailed in the Company's IPO prospectus. The stockholder servicing fee is paid quarterly and accrues daily in an amount equal to 1/365th of 1.0% of the NAV per share of the Class AA shares, up to an aggregate of 4% of the gross proceeds of Class AA shares sold. The Company will cease paying the stockholder servicing fee with respect to the Class AA shares at the earlier of (i) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of shares in Company's IPO (excluding proceeds from sales pursuant to the related DRP); (ii) the fourth anniversary of the last day of the fiscal quarter in which the Company's IPO terminated; (iii) the date that such Class AA share is redeemed or is no longer outstanding; and (iv) the occurrence of a merger, listing on a national securities exchange, or an extraordinary transaction.


(5)	Pursuant to the original advisory agreement, commencing November 2, 2015, the Company remained obligated to reimburse the Advisor for organizational and offering costs incurred after such date. Terms of the organizational and offering costs are included in the Company's 2016 Annual Report on Form 10-K filed on March 15, 2017.


(6)	Excludes amounts in excess of the 15% organization and offering costs limitation. See Note 8, Equity, for additional details.

Summarized below are the related-party costs incurred by the Company for the years ended December 31, 2017, 2016 and 2015, respectively, and any related amounts payable as of December 31, 2017 and 2016:



	Incurred as of December 31,						Payable as of December 31,
	2017		2016		2015		2017		2016
Expensed
Acquisition fees and expenses	$	—	$	6,324	$	11,438	$	—	$	—
Operating expenses	2,336		1,622		1,911		658		18
Asset management fees	8,027		6,413		2,624		—		807
Property management fees	1,799		1,052		333		158		143
Performance distributions	2,394		—		—		2,394		—
Advisory Fees	2,550		—		—		762		—
Capitalized/Offering
Acquisition fees and expenses ⁽¹⁾	1,099		7,606		—		—		—
Organization and offering expense	192		—		3,150		192		—
Other costs advanced by the Advisor	662		304		2,598		285		12
Preferred offering costs ⁽²⁾	—		—		375		—		—
Selling commissions ⁽³⁾	1,128		11,397		16,303		—		54
Dealer Manager fees ⁽⁴⁾	393		3,949		7,303		—		18
Stockholder servicing fee	660		17,449		25		12,377		16,020
Advisor Advances: ⁽⁵⁾
Organization and offering expenses	179		2,634		382		8		2,477
Dealer Manager fees	853		8,069		765		62		2,932
Total	$	22,272	$	66,819	$	47,207	$	16,896	$	22,481

(1)

Effective September 20, 2017, the Advisor is not entitled to acquisition fees, disposition fees or financing fees; provided, however, that the Advisor will receive the compensation set forth in the Original Advisory Agreement for the Company’s investment in an approximately 1,000,000 square foot property located at 39000 Amrheim Road, Livonia, Michigan 48150 with a total transaction price of approximately $80 million.


(2)	The Company recognized a redemption premium on preferred units issued to an affiliate of approximately $0.4 million, which represented a write-off of original issuance costs.


(3)	On September 18, 2017, the Company and the Dealer Manager entered into a dealer manager agreement for the follow-on offering. See the “Dealer Manager Agreement” section below for details regarding selling commissions and dealer manager fees.

(4)

The Dealer Manager continues to receive a stockholder servicing fee with respect to Class AA shares as detailed in the Company’s IPO prospectus. The stockholder servicing fee is paid quarterly and accrues daily in an amount equal to 1/365th of 1% of the NAV per share of the Class AA shares, up to an aggregate of 4% of the gross proceeds of Class AA shares sold. The Company will cease paying the stockholder servicing fee with respect to the Class AA shares at the earlier of (i) the date at which the aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the sale of shares in the Company’s IPO (excluding proceeds from sales pursuant to the related DRP); (ii) the fourth anniversary of the last day of the fiscal quarter in which the Company’s IPO terminated; (iii) the date that such Class AA share is redeemed or is no longer outstanding; and (iv) the occurrence of a merger, listing on a national securities exchange, or an extraordinary transaction.


(5)	Pursuant to the Original Advisory Agreement, commencing November 2, 2015, the Company remained obligated to reimburse the Advisor for organizational and offering costs incurred after such date. Terms of the organizational and offering costs are included in the Company’s 2016 Annual Report on Form 10-K filed on March 15, 2017.

Griffin Capital Essential Asset REIT, Inc. [Member]

Schedule of related party transactions

Summarized below are the related party costs incurred by the Company for the nine months ended September 30, 2018 and 2017, respectively, and any related amounts payable as of September 30, 2018 and December 31, 2017:



	Incurred for the Nine Months				Payable as of
	Ended September 30,				September 30,		December 31,
	2018		2017		2018		2017
Expensed
Operating expenses	$	2,630	$	1,983	$	949	$	670
Asset management fees	17,628		17,744		1,999		1,873
Property management fees	6,992		7,466		746		725
Costs advanced by the Advisor	396		419		324		267
Capitalized
Acquisition fees ⁽¹⁾	5,331		—		—		—
Leasing commissions	—		1,752		—		—
Total, net of real estate assets held for sale	$	32,977	$	29,364	$	4,018	$	3,535
Asset management fees related to real estate held for sale	42		42		5		5
Property management fees related to real estate held for sale	57		53		—		5
Total	$	33,076	$	29,459	$	4,023	$	3,545


(1)	Acquisition fees related to the acquisitions of Quaker, McKesson, and Shaw were capitalized as the acquisition did not meet the business combination criteria.



	Incurred for the Year Ended December 31,						Payable as of December 31,
	2017		2016		2015		2017		2016
Expensed
Acquisition fees and expenses	$	—	$	1,322	$	35,210	$	—	$	—
Operating expenses	2,652		1,525		1,608		670		—
Asset management fees	23,499		23,530		19,389		1,878		1,982
Property management fees	9,782		9,740		7,622		730		737
Disposition fees ⁽¹⁾	1,950		—		640		—		—
Costs advanced by the Advisor	587		73		53		267		—
Capitalized
Acquisition fees ⁽²⁾	3,791		—		—		—		—
Leasing commissions	1,752		—		2,105		—		—
Total	$	44,013	$	36,190	$	66,627	$	3,545	$	2,719


(1)	Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations.


(2)	Acquisition fees related to the LPL acquisition were capitalized as the acquisition did not meet the business combination criteria (see Note 3, Real Estate, for additional details).