Does the acquisition fee apply to debt and debt-like investments that the Fund makes?
The acquisition fee only applies to the acquisition of real property. In terms of debt investments, we are entitled to 50% of any origination fee paid by the borrower on a loan and the Fund receives the other 50%. For example, if a loan of $10 million were made with a 1% upfront fee payable by the borrower, then we would receive $50,000 and the Fund would receive the other $50,000. The Fund will receive 100% of the interest payments from the loan.