14001 Weston Parkway TIC

Hello Tic Holders of 14001 Weston Parkway. My name is Geof Gray and I am a Tic holder.

As you know DBSI is not going to pay this month's rent. The form letter sent by them Oct 10, 08 stated that the property does not generate sufficient income to pay the rent. This is not true. The property is in the black and is 91% leased up.
DBSI set up a LLC (DBSI 14001 Weston Parkway LeaseCo) to manage our property. They are our agent. Our issue is with that the LeaseCo not DBSI (DBSI is the guarantor). DBSI's financial problems do not concern us. The reason we allow LeasCo manage the property (which provides additional profit to them above what a property management firm would get) is because they guarantee the rent. There is no reason to have them manage the property if they do not live up to their contractual responsibility to pay the rent. As of 10/15 LeaseCo will be in default and owe us an additional 5% late fee for October. One other concern: DBSI has sent out a letter that is misleading. The CEO Swenson writes that "termination of the master lease, without lender approval, is a default... if you terminate the master lease without lender approval, you could be subjecting the property to a forclosure...Once in default, lenders will demand immediate payment of the loan..." What Swenson doesn't say is that the loan with Wells Fargo allows for change of property manager/master lessor. It concerns me that he is trying to manipulate the TIC holders using scare tactics. This is not above board.

Here are the issues I think we need to address:
1. Is DBSI robbing Peter to pay Paul, i.e. using our cash flow to fund other distressed properties?
2. Is DBSI paying the mortgage? I will try to get in contact with Wells Fargo.
3. We need to inspect their books ASAP.
4. We need to talk with LeasCo/DBSI immediately; if they refuse to talk with us we should consider terminating their master lease (which we can do for cause, i.e. default) and get a local property manager.