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RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES
 3 Months Ended
Mar. 31, 2017
Related Party Transactions [Abstract]  
RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES

NOTE 5. RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES

 

From time to time, IOT and its 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, a related party. The table below reflects the various transactions between IOT, Pillar, and TCI (dollars in thousands): [to be updated]

 

    TCI    

Pillar

     Total  
Balance, December 31, 2016   $ 37,768     $ —     $ 37,768  
Cash transfers     —       1,386       1,386  
Advisory fees     —       (162)       (162)  
Net income fee     —       (60)       (60)  
Cost reimbursements     —       (54)       (54)  
Expenses paid by advisor     —       (1)       (1)  
Interest income     378       —       378  
Purchase of obligation     —       —       —  
Balance, March 31, 2017   $ 37,768     $ 1,109     $ 39,255  

 

We have historically engaged in and will continue to engage in certain business transactions with related parties, including but not limited to asset acquisitions and dispositions. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in the best interest of the Company.