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EQR » Topics » SAN MARCOS

This excerpt taken from the EQR 8-K filed Mar 6, 2007.

SAN MARCOS

Statements of Revenue and Certain Expenses (Continued)

3. Related Party Transactions

An affiliate of San Marcos performed the property management function and charged total management fees of approximately $94,000 and $83,000 to the Property for the year ended December 31, 2005 and the nine months ended September 30, 2006 (unaudited), respectively.

An affiliate of San Marcos allocated insurance expense under a master policy to the Property and various affiliated properties.   Insurance expense for the year ended December 31, 2005 and the period from January 1, 2006 to September 30, 2006 (unaudited) is approximately $51,000 and $44,000, respectively, and is included in real estate taxes and insurance in the accompanying statements.

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