HomeMy WebLinkAboutL_LUA_Signature_Authority_180712_v1.pdfPROPERTY MANAGEMENT AGREEMENT
Thi s A g re e m e nt is by and be tween Greate r Hi la nd s, LLC (h e reinafter calle d "Princ ip a l") a nd
./S H Pro pe1iies, Inc . (he re inafter call e d "Agent").
A . Age nt has recogni zed experti se in th e bus iness o f managing a nd le as in g ofreal e s tate
for clients .
B. Agent and Principal d esi re to e nte r into thi s Agreem ent purs ua nt to w hi c h Age nt is t o
m anage th e day-to-day operations of th e Property ( describe d be low) with a view toward Principal 's
objecti ve of ac hi evin g hi g h economic value fo r t he Property.
In consid eration o f the agreements set fo rth be low, Agent a nd Principa l, fo r t he m se lves a nd
th e ir respecti ve s uc cessors a nd ass ig n s agree a s fo ll ows:
SECTION 1 -DEFINITIONS
As used in thi s agreement:
A. "Property s ha ll m ean the real property desc rib e d in A dde ndum A to thi s Agreement,
a ll improvem e nts e rected on s uc h rea l pro perly, a n d a ll p e rsonal properly own ed by
Principa l located thereo n ;
B. "Gross Monthly Co ll ections " s ha ll m ean th e total g ro ss monthl y rent received from
th e Prope rty , including w it hout limita tion percen tage re nt a nd a ll t e na nt c o ntributi o n
toward common a rea m a inte nan ce, real estate taxes, ins u ra nce prem ium s and s imil ar
ite m s , except that it s ha ll exc lude a n y ins u rance o r conde mnation proceeds and
re imbursement by t e na nts o f any of Principa l's legal fees a nd cons truction cost s.
C . "Authorized Expenses" s ha ll mean those expenses in c lud e d w ithin t he O perating
Section of t he P rincipal Approved B ud get (as o ppo sed to Capita l Expe nse Section),
a nd s uc h add itiona l expen ses may th e reafter b e approved by Principal in w ri ti n g.
D. "Pri ncipa l Approved Budget" sh a ll be the budget approved by the P rin c ipal pursuant
to SECTI ON 5 .
SECTION 2 -TERM OF THE AGREEMENT
This Agr eem ent s hall be fo r th e te rm se t forth in Addend um A . At th e expiration of th e t e rm ,
thi s Agreem e nt, if not re newed in w ritin g fo r a n additiona l fi xed period , and if not t e rminated in
w ritin g b y e ith e r party, sh a ll then b e deem e d a m o nth -to-mo nth Agreem e nt up on th e sam e te rm s and
s ha ll be cancela bl e by e ith e r party on no t less than thir ty (30) d ays advance w ritte n no ti ce, w hi c h
no ti ce may be g iven at a n y t im e durin g a month, provided th a t in a n y event the can cell a ti on s hall be
effec tive a t th e e nd of th e Agent's acco untin g m o nth in w hi c h th e t hi1iy (3 0) day notice period e nds .
9 1004-0004 /LEG/\L 12 1536187.2
Notwiths tanding th e te rm s ta te d in th e A d dendum , e ith e r pa rty may terminate thj s Agree m e n t
upon th i1ty (3 0) days w ritte n n o ti ce to the othe r party.
SECTION 3-REL AT IONSH IP OF THE PARTIES
N othing in thi s A g reem e nt no r a ny act s of the p arti es s ha l I be deem e d or co n s true d by the
pa rti es, o r e ith e r of them , o r a ny third party, to c reat e a pa rtn e rs hip o r a j o int venture be tween the
p a rti es.
SECTION 4 -SE RVI CES TO B E PERFORM ED B Y AGENT
A . Agent s ha ll take a ll reasonable acti o n s t o e nfo rce the te rms of te nant leases a nd
m onth-to-m o nth re nta l agreem e nts, inc lu d in g s te ps t o coll ect o r cau se the co ll ection
of a ll re nta l s a nd othe r c ha rges due Princ ipa l fr o m th e te na nts o f the P roperty in
accor d a n ce w ith the te rm s of the ir t ena nc ies.
B. F rom gross reve nues co ll ected fr om the Prope rty, Agent s ha ll:
1. P ay a ll o pe ratin g ex pe n ses a nd suc h o th e r ex pe n ses as may be a uthori zed by
Princi pa l o r conta in e d within the Princ ipa l A p p roved Budget.
2. P ay to an y le nde rs d esigna te d by Prin c ip a l a ll s um s, w hic h m ay bec o m e due
on loan s affectin g the P roperty.
C. Agent s hall pay a ll rea l property a nd o the r taxes lev ied a nd assessed again st t he
Prope 1ty s ubj ect to t he co ndi t io n t ha t Age nt s ha ll noti fy Princ ipa l n o t less than fi fteen
(1 5) d ays pr ior to the d a te o n w hi c h each in s ta llm e nt of s uch taxes becomes
delinque nt a nd of th e full a m ount re quired to p ay s uc h in s ta llm e nt. Princ ipal s h a ll
the n promptly m a ke ava il a bl e to Agent the fund s necessary lo p ay sam e .
D. Agent will use its best effo rt s to do everythin g reasona bl y nec essar y for the prope r
m an agem e nt of th e Prope rty, inc luding peri odi c in s pecti o n s of the real and
pe rs ona l prope rty, s u per v is io n of mai nte n ance, a n d a rra n g ing fo r s u c h
improvem e nts, alterati o ns and rep a irs as m ay be re quired by Princ ip a l , except
those improvem e nts a nd a lterati o ns re qui red in t he initial leasin g w hi ch wi ll be
the resp o n s ibility o f th e P rin c ipa l. If there is a m aj or re pa ir, restoration or
improve m e nt proj ect to the P rope rty, and if P rin c ipa l c hooses Agent to per fo rm
con s tru ct io n m a nagem ent fo r the project , th e n Age nt m ay c har ge th e Princ ipa l a
Five p er cent (5 %) co n structi on m anagem e nt fee. The timing fo r pay m e nt s ha ll be
mutuall y agr eed o n be tween Principal and Age nt .
E . A gent sh a ll r eco mm e nd a nd m o nito r o n be ha lf o f Princ ipa l a ll ind e p e nd e nt
contractors re quired in th e o perati on of the Pro pe r ty . Agent s hall o bta in three (3)
bids for an y inde pe nde nt contrac t o r wo rk in excess of Two T ho u sand Fi v e Hundre d
Doll a rs ($2,5 00) for whic h th e cont ract w ill b e award e d. A ll ind e p e nd ent contractors
9 1004-0004/L EGA L12 I 536 187 .2 2
e ngaged to perform services pursuant to thi s Agreement s ha ll , in eac h and every case,
be insured w ith l imits of not Jess than $1 ,000,000 Bodi ly Injury a nd Personal Injury
a nd $500,000 Prope11y Damage Insurance. Notwithsta nding this pro v ision , Agent
may act at its sole d iscretion in t he case of emerge nc ies whi c h requ ire immediate
so lut io ns if Principal is not r eadil y avai lab le for consu ltat io n . Fu rthermore, ina smuch
as Principal does not and w ill not have a ny e mpl oyees necessary fo r the o peratio n of
th e Property, a ll e mployees necessary for th e operation of the Property shall be
e m ployees of Agent or a third party and s ha ll be s uperv ised by Age nt.
F. Agent s ha ll handl e a ll te nant requests and negotiati o ns in regard to these requests that
m ay ari se from time to t ime; however, deviat io n s from the Princ ipal Approved
Budget must be in writing from Principal, except as provided in Paragraph 4E above.
G. Agent sha ll use its best effo1i s to brin g to the attenti o n of Prin c ip a l for its action or
Agent's action as Principa l may direct, Prin cipal's respons ibi liti es under the lease
agree ments, loan documents an d a lso use its best e fforts to ass ure tena nt compliance
w ith te na nt's lease obli gations.
I-1. Whenever lega l assis tance is n eeded, fo r s uc h matters as e n fo rc in g the co ll ection of
rent or eviction of a tenant or the e nfo rc in g of a ny othe r te rm of tenancy, s uc h
ass is tance sh a ll be approved by Principa l and shall be through coun sel des ig na ted or
approved by P rin c ip a l. The expenses fo r s uch co unse l shall be borne by P rincipa l.
I. Agent s ha ll ex pedite the settlement of casualty losses or oth e r in s u rance adjustment,
m a in tain records of insurance requirements and re s ponsibi li ties of tenants as req ui red
by tenancy agreements, a nd ac t on beh a lf of Principal in a tte mpting to conclude
c la im s o r di sputes w ith in s u rance co mpani es. ln s uc h matter s, Agent shall util ize
Princ ip a l's d esignated legal counsel w he n req uired ; however, s uch legal services w ill
be at Prin cipal's expense. Any settlement s ha ll require w ritt e n approva l of Principa l.
A ny e n g in eerin g in spectio n re garding the safety and protect io n of th e Property s ha ll
be arranged w herever possible w ith th e in s u rance carrier, prov ided it can be obtained
at no cost to Pri n cipal. Principal s ha ll con s id er a ll reaso n a bl e recomme ndations as a
res ul t of s uc h in s pec tion in order to minimi ze the c ost of in s urance, possibility of
bodi ly inj u ry , pe rson a l injury, property damage and loss of re ntal income.
J. Age nt sh a ll c a u se oth e rs th at provide regu la r or pe ri od ic serv ices to the Property to
present to Age nt evid ence of Workmen's Compensatio n a n d gen eral li abi li ty
insurance in a m ounts Agent d eems appropriate for the speci fi c s ituati on. A ll
certificates evidencing ins u ra nce coverage a re to be maintained by Agent.
K. Age nt s ha ll endeavor t o o btain fro m each tenant Certificates oflns urance evidencing
tenant co m p li an ce wi th ins urance provis ions of th e ir respecti ve leases or month-to-
mon th tenancy agr eem ents.
91004-0004 /LEGA LI 2 1536 18 7.2 3
L. Ag ent w il l nego ti ate, in acco rd an ce w ith Prin c ip a l ap proved leas ing paramete rs , all
lease renewals, o ptio ns and ex p an sions w ith ex ist in g and pros pective te nants for the
improve men ts located u pon th e P rop erty. A ll leases s ha ll be submitted to Prin c ipal
fo r exec utio n.
IN ~SS WHEREOF the parties hereto have caused this Agreement to be duly
executed this :3 () c:Jay of Juncs. 2014
PRINCIPAL
Greater Hilands, LLC
~oM#~
By: Steven H. Miller, Manager
I
91004·0004/L!:QALI 2153 6 187 .2 8
AGENI
Designated Broker
Title:
By: ,,
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