Frequently Asked Questions

 

What types of properties does Cadence administer/manage?

Cadence works specifically with commercial NNN leased properties, representing multiple co-owners in each property to the tenant and to each other. These are most usually Tenants-in-Common properties. Because the tenant bears the responsibility and costs of maintenance, taxes, and insurance, Cadence provides the other services outlined below and ensures that the tenant complies with the terms and conditions of the lease agreement.


What are the services Cadence provides?

Cadence receives monthly rent from the Tenant and distributes pro-rata share to each owner in the property along with owner statements, annual tax statements, etc. Cadence also coordinates voting actions by the co-owners and assists in the sale of individual TIC interests and the renewal of the original lease. Click here for more details


How are property decisions made?

Upon closing, a Tenants-In-Common Agreement was executed that outlines the relationship among the co-owners and how decisions are to be made. In short, minor decisions are made by a majority vote while major decisions are made by a unanimous vote. For practical purposes however, because the tenant and lease are already established before the co-owners purchase an interest, there are very few decisions to be made. Cadence does coordinate with the co-owners for those that do. These might include the sale of the building, improvements to the building, management/administration changes, etc.


How do I get out?

Each co-owner has an undivided, fractional interest in the property, so each has the right to sell his/her portion at any point in time. The Tenants-In-Common Agreement gives the other co-owners the first right to buy if one of the co-owners decides to sell. Cadence will coordinate this communication and if requested, will also publicize the “interest to sale” to all opt-in co-owners in other similar properties. Click here for information. After the term of the first right to buy has expired, the owner can sell to any party they wish. The resale of a TIC interest in a debt-free property is made easier because a new buyer does not have to qualify for an existing loan. All of the co-owners can also agree to sell the entire property whenever they choose.


I want to sell my ownership interest. How do I start the process?

Please refer to the Resale page for guidance. If Cadence is your current Property Administrator, simply complete the downloadable Resale Form as thoroughly as possible and email it to scott@cadencepa.com. Cadence will then coordinate with you to share this message to other co-owners as per the TIC and Property Administration Agreement. If you are not currently a Cadence client but would like us to share your information with other owners of similar properties, please complete and submit the same form and Cadence will contact you. Remember that you are bound in your TIC contract to work with your Property Administrator to notify other owners in your property for first refusal. Our assistance would take place after that occurs.


Is there a cost to put the word out to other potential buyers of my interest?

No. There is no cost to share your information with other opt-in potential buyers, those who have purchased other Rockwell properties. Should you choose to contract with Cadence to close a resulting sale, working with the title company and others to finalize all paperwork, then Cadence does charge a minimal fee. You can also do this yourself or contract with others. Please contact Cadence for these fees. Cadence does not charge you commission on these property sales unless you wish us to market outside of the opt-in ownership database of similar properties. That can be negotiated at that time and is not a part of original agreement.


What are the costs of property administration through Cadence?

The typical monthly fee of Cadence is only $35 per month, per property, per owner. Depending on the lease type, the tenant pays all the property tax, insurance and most if not all of repairs and maintenance. This is defined in the lease agreement you receive or will receive at closing. These charges are market competitive and may change in the future. Cadence will work to keep them consistent over time, but reserves the right to adjust with proper notice prior to annual renewal.


When and how do I get paid?

Cadence receives the master rent payment from the Tenant at the beginning of each month. We then pro-rate this rental income (less maintenance fees) and send a payment to each co-owner soon thereafter (within 5 days of receipt). This is usually done within 1 to 2 days of receipt. Each owner elects between ACH Direct Deposit into their bank account or receiving a check in the mail.


How many owners are in an average property?

The properties that Cadence administers average between 8 and 12 co-owners per property. All co-owners are provided a summary of all percentage ownership and contact information for the other co-owners.


What is the worst case scenario affecting the ownership of my property?

The worst case scenario would be if the tenant went out of business and there were an interruption in the lease payments. However, because there is no debt to service you would not be in danger of losing the property and thereby your original investment. In this circumstance the co-owners could elect to have Cadence or another commercial real estate agent find a buyer or a new tenant to lease the property. By design, the properties we administer and those you have purchased are smaller, freestanding buildings which are typically much easier to lease than a larger facility.


If I am a current owner in a property not administered by Cadence, what do I need to do to move my business to Cadence?

You will need to review your current Property Management/Administration Agreement. It is an annual agreement, so you are bound to certain required notices and timing until it expires. Your contract should outline the specifics of termination and what is required in working with the other co-owners to make a change. Cadence cannot administer a property unless all owners come over. We manage based on property, not at the individual owner level. Consult your management agreement and give us a call if you are interested. We are happy to discuss and would welcome your business.