{"id":13630,"date":"2017-05-03T10:39:57","date_gmt":"2017-05-03T14:39:57","guid":{"rendered":"https:\/\/qa.bluevaultpartners.com\/?post_type=inside-the-vault&#038;p=13630"},"modified":"2017-05-03T11:02:10","modified_gmt":"2017-05-03T15:02:10","slug":"how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees","status":"publish","type":"post","link":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/","title":{"rendered":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d?"},"content":{"rendered":"<h1><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9865 size-full\" src=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg\" alt=\"header_factoid\" width=\"720\" height=\"60\" srcset=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg 720w, https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID-600x50.jpg 600w, https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID-300x25.jpg 300w\" sizes=\"(max-width: 720px) 100vw, 720px\" \/><\/h1>\n<h1>How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d?<\/h1>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9208 size-medium\" src=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/10\/Featured-News-Image_0007_Financing_21-300x200.jpeg\" alt=\"featured-news-image_0007_financing_21\" width=\"300\" height=\"200\" srcset=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/10\/Featured-News-Image_0007_Financing_21-300x200.jpeg 300w, https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/10\/Featured-News-Image_0007_Financing_21-600x400.jpeg 600w, https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/10\/Featured-News-Image_0007_Financing_21.jpeg 640w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/p>\n<h4><span style=\"color: #0060a5;\">Answer: \u00a0If the REIT achieves a non-compounded average rate of return for shareholders in excess of a stated benchmark (typically 6% or 7%) or hurdle rate, the sponsor is entitled to a share of the excess, typically 15%. \u00a0This performance fee does not have a large impact on shareholder returns for most full-cycle events for two reasons: \u00a01) it is only applied to the excess return over the benchmark or hurdle rate, and 2) the fact that it is paid at the end of the shareholder\u2019s holding period means that, due to the time value of money, it has less impact on the average annual rate of return over the life of the investment.<\/span> \u00a0<\/h4>\n<p>&nbsp;<\/p>\n<div style=\"clear:both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? Answer: \u00a0If the REIT achieves a non-compounded average rate of return for shareholders in excess of a stated benchmark &hellip; <\/p>\n<p><a href=\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\" class=\"read-more\">Read more<\/a><\/p>\n","protected":false},"author":1824,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3006],"tags":[],"class_list":["post-13630","post","type-post","status-publish","format-standard","hentry","category-inside-the-vault"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault\" \/>\n<meta property=\"og:description\" content=\"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? Answer: \u00a0If the REIT achieves a non-compounded average rate of return for shareholders in excess of a stated benchmark &hellip; Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\" \/>\n<meta property=\"og:site_name\" content=\"Blue Vault\" \/>\n<meta property=\"article:published_time\" content=\"2017-05-03T14:39:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2017-05-03T15:02:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg\" \/>\n<meta name=\"author\" content=\"Savannah Gratz\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Savannah Gratz\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\",\"url\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\",\"name\":\"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault\",\"isPartOf\":{\"@id\":\"https:\/\/bluevaultpartners.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg\",\"datePublished\":\"2017-05-03T14:39:57+00:00\",\"dateModified\":\"2017-05-03T15:02:10+00:00\",\"author\":{\"@id\":\"https:\/\/bluevaultpartners.com\/#\/schema\/person\/1bd2923543068824130c91e993285dc4\"},\"breadcrumb\":{\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage\",\"url\":\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg\",\"contentUrl\":\"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg\",\"width\":720,\"height\":60},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/qa.bluevaultpartners.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/bluevaultpartners.com\/#website\",\"url\":\"https:\/\/bluevaultpartners.com\/\",\"name\":\"Blue Vault Partners\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/bluevaultpartners.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/bluevaultpartners.com\/#\/schema\/person\/1bd2923543068824130c91e993285dc4\",\"name\":\"Savannah Gratz\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/bluevaultpartners.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/91b67b9dcaf681cd3e46ce62f7d979ae?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/91b67b9dcaf681cd3e46ce62f7d979ae?s=96&d=mm&r=g\",\"caption\":\"Savannah Gratz\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/","og_locale":"en_US","og_type":"article","og_title":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault","og_description":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? Answer: \u00a0If the REIT achieves a non-compounded average rate of return for shareholders in excess of a stated benchmark &hellip; Read more","og_url":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/","og_site_name":"Blue Vault","article_published_time":"2017-05-03T14:39:57+00:00","article_modified_time":"2017-05-03T15:02:10+00:00","og_image":[{"url":"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg"}],"author":"Savannah Gratz","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Savannah Gratz","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/","url":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/","name":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d? - Blue Vault","isPartOf":{"@id":"https:\/\/bluevaultpartners.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage"},"image":{"@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage"},"thumbnailUrl":"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg","datePublished":"2017-05-03T14:39:57+00:00","dateModified":"2017-05-03T15:02:10+00:00","author":{"@id":"https:\/\/bluevaultpartners.com\/#\/schema\/person\/1bd2923543068824130c91e993285dc4"},"breadcrumb":{"@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#primaryimage","url":"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg","contentUrl":"https:\/\/qa.bluevaultpartners.com\/wp-content\/uploads\/2016\/11\/Header_FACTOID.jpg","width":720,"height":60},{"@type":"BreadcrumbList","@id":"https:\/\/qa.bluevaultpartners.com\/how-do-nontraded-reit-sponsors-become-eligible-for-subordinated-performance-fees\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/qa.bluevaultpartners.com\/"},{"@type":"ListItem","position":2,"name":"How do nontraded REIT sponsors become eligible for \u201cSubordinated Performance Fees\u201d?"}]},{"@type":"WebSite","@id":"https:\/\/bluevaultpartners.com\/#website","url":"https:\/\/bluevaultpartners.com\/","name":"Blue Vault Partners","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/bluevaultpartners.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/bluevaultpartners.com\/#\/schema\/person\/1bd2923543068824130c91e993285dc4","name":"Savannah Gratz","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/bluevaultpartners.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/91b67b9dcaf681cd3e46ce62f7d979ae?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/91b67b9dcaf681cd3e46ce62f7d979ae?s=96&d=mm&r=g","caption":"Savannah Gratz"}}]}},"_links":{"self":[{"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/posts\/13630"}],"collection":[{"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/users\/1824"}],"replies":[{"embeddable":true,"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/comments?post=13630"}],"version-history":[{"count":0,"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/posts\/13630\/revisions"}],"wp:attachment":[{"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/media?parent=13630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/categories?post=13630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qa.bluevaultpartners.com\/wp-json\/wp\/v2\/tags?post=13630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}