FIRST INDUSTRIAL REALTY TRUST INC

7. Related Party Transactions

The Joint Venture paid certain fees to a subsidiary of First Industrial or FR Merit.

•A subsidiary of First Industrial is entitled to receive an asset management fee. The asset management fee is paid quarterly in arrears and is based on a percentage of the sum of all member capital contributions, net of any return of capital distributions, and the aggregate outstanding principal balance of the borrowed indebtedness of the Joint Venture, if any, as of the date of calculation. For the years ended December 31, 2023, 2022 and 2021, the subsidiary of First Industrial earned asset management fees totaling $331, $166 and $221, respectively. For the years ended December 31, 2023, 2022 and 2021, asset management fees totaling $331, $166 and $56, respectively, were capitalized in Construction in Progress in the Consolidated Balance Sheets.

•A subsidiary of First Industrial is entitled to receive development fees, which fees are based on a percentage of all hard and soft costs incurred. For the years ended December 31, 2023, 2022 and 2021, the subsidiary of First Industrial earned development fees totaling $5,859, $1,600 and $42, respectively, which are capitalized in Construction in Progress in the Consolidated Balance Sheets.

•A subsidiary of First Industrial is entitled to receive leasing coordination fees, which fees are based on a percentage of the market leasing fee of any listing broker. For the year ended December 31, 2023, the subsidiary of First Industrial earned leasing coordination fees totaling $219.

•A subsidiary of First Industrial is entitled to receive property management fees, which fees are based on a percentage gross monthly income. For the year ended December 31, 2023, the subsidiary of First Industrial earned property management fees totaling $64.

•FR Merit is entitled to receive an incentive fee if, based on a percentage of operating cash flow and capital event proceeds to be distributed to the Members, meet certain IRR hurdles. For the years ended December 31, 2023 and 2022, the Joint Venture distributions to FR Merit included $0 and $29,913, respectively, of incentive fees related to capital event proceeds. The Joint Venture uses the hypothetical liquidation at book value ("HLBV") model to calculate the amount of incentive fees earned by FR Merit, in excess of incentive fees distributed from capital event proceeds. For the years ended, December 31, 2023 and 2022, additional incentive fees of $9,369 and $1,395, respectively, were earned by FR Merit based on the HLBV model, but not distributed.

The Joint Venture’s payable balance to a wholly owned subsidiary of First Industrial and FR Merit for asset management fees, development fees, property management fees and other reimbursements totaled $138 and $34 at December 31, 2023 and 2022, respectively.