Common use of Property Management Fee Clause in Contracts

Property Management Fee. The Advisor may cause the Company to pay Property Management Fees for property management services rendered by the Advisor or its Affiliates in connection with Properties acquired directly or through foreclosure. The Advisor or an Affiliate will provide property management services only if a Property becomes vacant or requires more active management than contemplated at the time such Property is acquired. In either event, the Company, by approval of the Directors (including a majority of the Independent Directors), may engage the Advisor or an Affiliate, subject to such Advisor's or such Affiliate's qualifying as an "independent contractor" pursuant to Section 856(d)(3) of the Code, to provide property management services. If such services are rendered by the Advisor or an Affiliate, the maximum Property Management Fees which may be paid to the Advisor or an Affiliate will be six percent of gross revenues from commercial Properties and five percent of gross revenues from residential Properties, plus reimbursed expenses, paid monthly, where such entity performs property management and leasing, re-leasing and leasing related services, or three percent of the gross revenues of the Property if only property management services are performed by such entity. Property Management Fees payable to the Advisor or an Affiliate for an industrial or commercial Property leased on a long-term (defined as at least ten years, excluding renewals) triple net basis, may not exceed one percent of the gross revenues from such Property, except for a one-time initial leasing fee equal to three percent of total base rents payable for the first five years of the lease, payable in five equal annual installments. Such fees to the Advisor or its Affiliate cannot exceed the usual and customary amounts charged for similar services in the same geographic area.

Property Management Fee. The Advisor may cause the Company to pay Property Management Fees for property management services rendered by the Advisor or its Affiliates in connection with Properties acquired directly or through foreclosure. The Advisor or an Affiliate will provide property management services only if a Property becomes vacant or requires more active management than contemplated at the time such Property is acquired. In either event, the Company, by approval of the Directors (including a majority of the Independent Directors), may engage the Advisor or an Affiliate, subject to such Advisor's or such Affiliate's qualifying as an "independent contractor" pursuant to Section 856(d)(3) of the Code, to provide property management services. If such services are rendered by the Advisor or an Affiliate, the maximum Property Management Fees which may be paid to the Advisor or an Affiliate will be six percent 6% of gross revenues from commercial Properties and five percent 5% of gross revenues from residential Properties, plus reimbursed expenses, paid monthly, where such entity performs property management and leasing, re-leasing and leasing related services, or three percent 3% of the gross revenues of the Property if only property management services are performed by such entity. Property Management Fees payable to the Advisor or an Affiliate for an industrial or commercial Property leased on a long-term (defined as at least ten years, excluding renewals) triple net basis, may not exceed one percent 1% of the gross revenues from such Property, except for a one-time initial leasing fee equal to three percent 3% of total base rents payable for the first five years of the lease, payable in five equal annual installments. Such fees to the Advisor or its Affiliate cannot exceed the usual and customary amounts charged for similar services in the same geographic area.