available from unaffiliated third parties for any property that was not a stand-alone, single-tenant, net leased property and for which an affiliate of our former advisor or its designated
personnel directly served as the property manager without sub-contracting such duties to a third party. For the three months ended March 31, 2023 and years ended December 31, 2022, December 31, 2021,
and December 31, 2020, we incurred property management fees of $0, $0, $1,993,000, and $2,632,000, respectively, to an affiliate of our former advisor.
Lease Fees
We paid our
former advisor or its affiliates a separate fee for any leasing activities in an amount not to exceed the fee customarily charged in arms-length transactions by others rendering similar services in the
same geographic area for similar properties as determined by a survey of brokers and agents in such area. Such fee generally ranged from 3.0% to 6.0% of the gross revenues generated during the initial term of the lease. For the three months ended
March 31, 2023 and years ended December 31, 2022, December 31, 2021, and December 31, 2020, we incurred lease fees of $0, $0, $410,000, and $579,000, respectively, to our former advisor or its affiliates.
Construction Management Fee
In the event that our former advisor or its affiliates assisted with planning and coordinating the construction of any capital or tenant
improvements, we paid our former advisor or its affiliates a construction management fee of up to 5.0% of the cost of such improvements. Construction management fees are capitalized as part of the associated asset. For the three months ended March
31, 2023 and years ended December 31, 2021, December 31, 2020, and December 31, 2019, we incurred construction management fees of $0, $0, $144,000, and $183,000, respectively.
AHI Acquisition
As part of the AHI
Acquisition and prior to the reverse stock split, the Operating Partnership issued 5,074,573 OP units to AHI Group Holdings, an entity owned and controlled by Jeffrey T. Hanson, our former Chief Executive Officer and current Chairman of the Board,
Danny Prosky, our former Chief Operating Officer and current Chief Executive Officer, President and director, and Mathieu B. Streiff, our former Executive Vice President, General Counsel, former Chief Operating Officer and current Executive Vice
President and director. The total approximate value of these 5,074,573 OP units at the time of AHI Acquisition and prior to the reverse stock split was approximately $47,701,000.
Registration Rights Agreement
On
October 1, 2021, at the consummation of the AHI Acquisition, GAHR III and the Operating Partnership entered into a registration rights agreement (the Registration Rights Agreement), with Griffin-American Strategic Holdings, LLC,
pursuant to which, subject to certain limitations therein, as promptly as practicable following the later of: (1) the expiration of the period commencing on the closing of the AHI Acquisition and ending upon the earliest to occur of
(a) the second anniversary date of the issuance of the OP units issued in connection with the AHI Acquisition, (b) a change of control of Continental Merger Sub, LLC, and (c) the listing of shares of our common stock on a national
securities exchange (the RRA Lock-Up Period); and (2) the date on which we are eligible to file a registration statement on Form S-3 or any successor
form (but in any event no later than 60 days after such date), we, as the indirect parent company of the Operating Partnership, are required to file a shelf registration statement with the SEC under the Securities Act covering the resale of the
shares of our common stock issued or issuable in redemption of the OP units that the Operating Partnership issued as consideration in the AHI Acquisition. The Registration Rights Agreement also grants the Holders (as defined in the Registration
Rights Agreement) demand rights to request additional registration statement filings as well as piggyback registration rights, in each case on or after the expiration of the RRA Lock-Up Period. In
connection with the Merger, we assumed the Registration Rights Agreement and GAHR IIIs
245