Resource Real Estate

The Special Limited Partner (RRE Innovation Office SLP, LLC), which holds the 15% promote interest in Net Sales Proceeds after a 7% preferred return, is an affiliate of and managed by the Advisor (RRE Innovation Office Advisor, LLC). This creates a structural conflict: the Advisor benefits from the promote through its affiliate's Special LP Units while also directing the day-to-day operations and investment decisions of the partnership.

“RRE Innovation Office SLP, LLC By: RRE Innovation Office Advisor, LLC, Manager ... The Partnership issued Special Limited Partnership Units to RRE SLP in exchange for the cash contribution reflected on Exhibit A hereto and for services performed or to be performed by Affiliates of RRE SLP for the Partnership and its Subsidiaries”