Related Party Transactions
We and certain related entities, including Gould Investors, One Liberty Properties, Inc., Majestic Property Management and REIT Management, occupy common office space and share certain services and personnel in common. In 2015, we reimbursed Gould Investors $15,000 for our share of insurance costs (primarily property insurance), which insurance is obtained in conjunction with Gould Investors, and a net $106,000 for common general and administrative expenses, including telecommunication services, computer services, bookkeeping, secretarial and other clerical services and legal and accounting services. The $106,000 includes amounts allocated to us for services performed by certain executive officers who are engaged by us on a part-time basis, including the amounts allocated for the salary and benefits of David W. Kalish and Mark H. Lundy as set forth in the Summary Compensation Table and $101,107, $160,956 and $98,294 allocated for the salary of Simeon Brinberg, Steven Rosenzweig and Isaac Kalish, respectively. The allocation of general and administrative expenses is computed in accordance with a shared services agreement, and is based on the estimated time devoted by executive, administrative and clerical personnel to the affairs of each participating entity to the shared services agreement. The amount of general and administrative expenses allocated to us represents approximately 23.5% of the total expenses allocated to all entities which are parties to the shared services agreement. In addition, through February 2015, we leased from a subsidiary of Gould Investors, 4,300 square feet of office space for $64,000.
In 2015, pursuant to the Advisory Agreement between us and REIT Management, a company wholly-owned by Fredric H. Gould, we paid REIT Management fees of $2.45 million. See Executive Compensation—Compensation Disclosure and Analysis—Advisor Fees. The total compensation received in 2015 from REIT Management by Messrs. Fredric H. Gould and Matthew J. Gould, each an executive officer of REIT Management, is $170,167 and $522,180, respectively. The compensation received in 2015 by Jeffrey A. Gould, David W. Kalish and Mark H. Lundy from REIT Management is set forth in the Summary Compensation Table and the notes thereto. Simeon Brinberg, Israel Rosenzweig and Isaac Kalish received compensation from REIT Management in 2015 of $18,832, $93,655 and $70,160, respectively. The Advisory Agreement was terminated by the Trust effective as of December 31, 2015. To obtain the services previously provided pursuant to this agreement, we retained the following individuals, who will receive the following amounts for such services in calendar 2016: Fredric H. Gould, $200,000; Matthew J. Gould, $200,000; David W. Kalish, $200,000; Isaac Kalish $200,000; Steven Rosenzweig, $150,000; Israel Rosenzweig, $50,000; Mark Lundy, $100,000; and Simeon Brinberg, $50,000.
Majestic Property Management, which is wholly-owned by Fredric H. Gould, provides real property management services and construction supervisory fees, real estate brokerage, mortgage brokerage and construction supervision services for affiliated entities, as well as companies that are non-affiliated entities. In 2015, we paid Majestic Property Management fees totaling $62,000, representing, in the aggregate, less than 1% of the 2015 revenues of Majestic Property. Each of Fredric H. Gould, Jeffrey A. Gould, Matthew J. Gould, David W. Kalish, Simeon Brinberg, Mark H. Lundy, Israel Rosenzweig, Steven Rosenzweig, and Isaac Kalish, received compensation from Majestic Property, which compensation is not included in the Summary Compensation Table. The fees paid by us to REIT Management and Majestic Property Management and the expenses reimbursed to Gould Investors under the shared services agreement were reviewed by our audit committee. The fees paid to REIT Management were paid pursuant to the advisory agreement. The expenses reimbursed to Gould Investors are reimbursed pursuant to the shared services agreement. Simeon Brinberg, Fredric H. Gould, Jeffrey A. Gould, Matthew J. Gould, David W. Kalish, Mark H. Lundy, Israel Rosenzweig, Steven Rosenzweig and Isaac Kalish also receive compensation from other entities wholly-owned by Fredric H. Gould and parties to the shared services agreement, none of which provided services to us or received compensation from us in 2015.
Alon Rosenzweig received compensation of $193,072 in 2015 and participated in the welfare and other benefit plans made available to executives.
Gould Investors indicated that to facilitate our multi-family acquisitions, it would, from time-to-time through March 31, 2016, lend us up to $10 million on an unsecured basis, such loan(s) to (a) mature on the earlier, and to the extent, of (i) six months from the date of funding and (ii) the receipt of proceeds from the sale of all or substantially all of our equity interest in the Newark Joint Venture or from the repayment of a $19.5 million in principal amount owed to us by the Venture and (ii) bear interest at a rate of three month LIBOR plus 475 basis points. On December 11, 2015, we borrowed $8 million from Gould Investors.