Related-Party Transactions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2020 | |||
| Related Party Transactions [Abstract] | |||
| Related-Party Transactions |
Shared and Transition Services Certain services are provided to the Company under a Transition Services Agreement (“TSA”) between MMC and the Company. The TSA is intended to provide certain services until the Company acquires the services separately. Under the TSA, the Company incurred net costs during the three months ended June 30, 2020 and 2019 of $16,000 and $32,000, respectively, and during the six months ended June 30, 2020 and 2019 of $42,000 and $75,000, respectively. These amounts are included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. Brokerage and Financing Services with the Subsidiaries of MMC MMC has wholly or majority owned subsidiaries that buy and sell commercial real estate properties. The Company performs certain brokerage and financing services related to transactions of the subsidiaries of MMC. For the three months ended June 30, 2020 and 2019, the Company earned real estate brokerage commissions and financing fees of $880,000 and $1.9 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $536,000 and $1.1 million, respectively, related to these revenues. For the six months ended June 30, 2020 and 2019, the Company earned real estate brokerage commissions and financing fees of $1.6 million and $2.8 million, respectively, from transactions with subsidiaries of MMC related to these services. The Company incurred cost of services of $988,000 and $1.6 million, respectively, related to these revenues. Operating Lease with MMC The Company has an operating lease with MMC for a single-story office building located in Palo Alto, California, which expires on May 31, 2022. The related operating lease cost was $332,000 and $333,000 for the three months ended June 30, 2020 and 2019, respectively, and $665,000 and $666,000 for the six months ended June 30, 2020 and 2019, respectively. Operating lease cost is included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. See Note 4 – “Operating Leases” for additional information. Accounts Payable and Other Liabilities with MMC As of June 30, 2020, and December 31, 2019, accounts payable and other liabilities with MMC totaling $94,000 and $88,000, respectively, remain unpaid and are included in accounts payable and other liabilities in the accompanying condensed consolidated balance sheets. Other The Company makes advances to non-executive employees from time-to-time. non-current) in the accompanying condensed consolidated balance sheets. See Note 7 – “Selected Balance Sheet Data” for additional information.As of June 30, 2020, George M. Marcus, the Company’s founder and
Co-Chairman, beneficially owned approximately 40% of the Company’s issued and outstanding common stock, including shares owned by Phoenix Investments Holdings, LLC and the Marcus Family Foundation II. |