They were distributing barely 2% for the past year and now have paused distributions this quarter.

What does this mean?

The document or whatever instrument allows this would ensure that the obligation to pay for the mortgage and expenses (Taxes/utilities/maintenance etc...) falls to the corporation and not myself and would be paid directly by the corporation so as to not look like income in the form of a transfer from corp to me to lender. 

Our current agent is the only agent who has suggested that we try to sell them separately since selling them together didn't appear to work.On the other hand, maybe prospective buyers are waiting to see how much lending rates decline in the next few months and what happens with the Costa-Hawkins proposition on CA ballots this November.  

@Chengning YangHave you sold this already?

You can find an opportunity like this a lot quicker if you go to local real estate investing meetups every month/week in your area.

Read your loan docs. 

This led me to starting a landscaping company because of the volume of work offered by commercial property managers. 

I think this is proven that even in ponzi criminal case, if asset has good valuation and the law is being done properly, we will get our money back as investor.

This is not a very common issue though.