BREIT 2018 Proxy Statement

We have engaged Equity Office Management, L.L.C. (“EOM”), a portfolio company owned by Blackstone- advised funds, to provide property management, expense management, construction management, corporate support (including leasing, accounting, legal and tax), capital expenditure project and transaction support services for our office and industrial properties. We currently estimate the cost for such services to be approximately 3% of gross revenue for property management services, 1% of gross rents from new and renewal leases for leasing services and 4% of total project costs for construction management services, plus a per square foot amount for corporate services and actual costs allocated for transaction support services. During the year ended December 31, 2017, we incurred $0.9 million of expenses due to EOM for services incurred in connection with our office and industrial properties. Additionally, as of December 31, 2017, the Company capitalized $0.1 million to its balance sheet for transaction support services provided by EOM. We have engaged ShopCore Properties TRS Management LLC (“ShopCore”), a portfolio company owned by a Blackstone-advised fund, to provide property management, revenue management, expense management, construction management, corporate support (including leasing, accounting, legal and tax), capital expenditure project and transaction support services for our retail properties. We currently estimate the cost of such services to be approximately 3% of gross revenue for property management services, 1% of gross rents from new and renewal leases for leasing services and 4% of total project costs for construction management services, plus a per square foot amount for corporate services and actual costs allocated for transaction support services. During the year ended December 31, 2017, we incurred $0.2 million of expenses due to ShopCore for services incurred in connection with our retail properties. We expect to set up a management incentive plan for each transaction for which we engage BRE, LivCor, EOM and ShopCore for certain senior executives of the applicable operating portfolio company. Neither Blackstone nor the Adviser receives any fees or incentive payments from agreements between us and their operating portfolio companies or their management teams. During the year ended December 31, 2017, the Company did not pay or accrue any incentive fees to its affiliated service providers under such agreements. Blackstone has partnered with a leading national title agency to create Lexington National Land Services (“LNLS”), a title agent company. LNLS acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by us, Other Blackstone Accounts (defined below) and third parties. LNLS focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable. LNLS will not perform services in non-regulated states for us and Other Blackstone Accounts, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter and not negotiating the title policy or issuing it to the insured. LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters. Blackstone receives distributions from LNLS in connection with investments by us based on its equity interest in LNLS. In each case, there will be no related offset to the Company. As a result, while Blackstone believes the venture will provide services equal to those provided by third parties (even in jurisdictions where insurance rates are regulated), there is an inherent conflict of interest that would incentivize Blackstone to engage LNLS over a third party. During the fiscal year ended December 31, 2017, we paid LNLS $1.0 million for title services related to 13 investments. Internal Audit Services During the year ended December 31, 2017, we engaged an affiliate of our Adviser to perform certain internal audit and compliance functions. As of December 31, 2017, we had incurred $30,000 of fees for such services. 26