Selection and Oversight of Property Managers

Selection of Property Managers

Generally, we will seek to select, through an independent bidding process, the best property managers (or sub-property managers in the case where the property has a master property manager) for our properties, taking into consideration not only the costs but also factors such as the organizational structure and performance record of such property manager.

Management System

We will seek to establish an efficient portfolio-based management system for the entire portfolio that seeks to achieve economies of scale, taking into account the regionality of each of our properties.

Selection of Building Maintenance Companies

Generally, building maintenance companies will be responsible for maintaining the building with the property manager and will be retained separately from the property manager. We will seek to establish a building maintenance framework under which both the property manager and building maintenance company can perform at their maximum capacity. We will select the building maintenance company through an independent bidding process that takes into consideration the costs and specifications of the particular building as well as any economies of scale that maybe realized.

Evaluation

Generally, we will evaluate our third-party service providers on a quarterly basis. If there are issues with the evaluation results, we will issue an operational improvement request to the applicable service provider and provide operational improvement guidance. Depending upon the level of required improvements, we may consider changing service providers. For this reason, while the term of most outsourcing contracts is expected to be one year, such contracts will generally allow for termination upon three months' notice.