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time as the units were sold as condominiums; (2) contract with
licensed contractors, architects, consultants, and civil engineers
to renovate, improve, or modify the project property for conversion
and sale of the units as condominium units according to approved
plans and permits; (3) engage the services of attorneys,
consultants, management and maintenance companies, accountants, and
others for purchase and management, as well as to obtain necessary
permits and approvals for sale, of the units as condominiums; (4)
enter into agreements with brokers to handle sales of condominium
units; (5) contract with marketing companies to market the
condominium units; (6) exercise general supervision regarding those
individuals and companies referred to above; and (7) perform all
other reasonably required tasks to ensure speedy sale of the project
property as condominiums at the optimal price.
In exchange for these services, Malibu Cedars agreed to pay
Plaza-HPD: (1) A profit participation fee of 40 percent of all cash
proceeds from sales in excess of the total costs the partnership
incurred; and (2) a $750,000 overhead fee over 3 years. The fees
paid to Plaza-HPD were distributed: HPD--47.5 percent; Plaza--52.5
percent.
The following chart represents the organizational structure of
the Malibu Cedars project:
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Last modified: May 25, 2011