Summarized below are the related party costs incurred by the Company, including those incurred pursuant to the Advisory Agreement, for the three months ended March 31, 2018 and 2017, respectively:

	Three Months Ended March 31, 2018		March 31, 2018				Three Months Ended March 31, 2017		December 31, 2017
	Incurred		Receivable		Payable		Incurred		Receivable		Payable
Expensed:
Asset management fees (1)	$	401,315	$	—	$	460,389	$	111,298	$	—		567,661
Subordinated participation fees		—		—		—		—		—		315,802
Fees to affiliates		401,315		—		—		111,298		—		—
Property management fees*		12,939		—		—		—		—		7,969
Directors and officers insurance reimbursements**		16,634		—		16,634		—		—		—
Expense reimbursements from Sponsor (2)		(359,514)		209,876		—		(688,026)		34,194		—
Waiver of asset management fees (1)		—		—		—		(27,824)		—		—
Capitalized:
Acquisition fees		456,000		—		—		600,600		—		—
Financing coordination fees		209,550		—		—		87,450		—		—
Additional paid-in-capital:
Reimbursable organizational and offering expenses (3)		430,244		—		16,892		608,130		—		15,945
			$	209,876	$	493,915			$	34,194	$	907,377

*	Property management fees are classified within property operating expenses on the condensed consolidated statements of operations.

Directors and officers insurance 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 March 31, 2018 and 2017, the Advisor waived $0 and $27,824, 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 related to its TIC interest in the Santa Clara property during the three months ended March 31, 2018 which amount is reflected as a reduction of income recognized from investments in unconsolidated entities.

(2)

The Company records payroll costs related to Company employees that answer questions from prospective stockholders. 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 months ended March 31, 2018 included $48,422 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 March 31, 2018, the Sponsor had incurred $7,250,015 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.