After negotiating Telecommunications Leases for property owners for over 20 years, we know the industry, the players and their motivations.
We work exclusively for property owners to give clear, fair, unbiased direction in negotiations with wireless carriers, tower companies and lease buyout companies.
If you've been contacted by a cell tower lease buyout company, understand that a buyout agent's interest lies in bringing in the best deal for his employer, which may not be the best deal for you. They will be paying for the cell tower lease but you must understand what they are getting in return. You must understand the difference between a General Easement vs Specific Easement or an assignment of rents. You must understand any future roll the purchaser of your lease acquires with their purchase.
Based on our comprehensive knowledge of all the factors relating to the value of a property, we will help you make an informed decision.
What is a Lease Buyout?
Property owners have the ability to sell their cell tower lease(s) separate from their land or rooftop. Investors/Lease Buyout companies purchase the cell tower lease as an easement or lease assignment. Three key factors influence cell tower buyout prices; the current rent, the rent escalator, and the date the lease expires.
Different types of cell tower lease buyout offers have different implications for different types of landowners. For example, a cell tower lease buyout on farmland is much different than the purchase of a lease on a building rooftop. Things to consider for cell tower lease buyout transactions are:
- Access requirements.
- Tax implications. (easement vs. lease assignment)
- Property redevelopment rights.
- For rooftop sites, how is property damage addressed.
Why Consider a Lease Buyout?
To get cash from your assets or understand the fair market value of your cell tower lease. Lease Buyout companies often offer a sizable payment when your own financial institution might not. Banks do not like to loan against cell site leases because of the 90-day termination rights that is common in most cell site leases. Lease Buyout/Purchasing companies can reduce the risk that any one lease will be terminated whereas you alone, cannot.
To eliminate termination risk due to a merger. When Telecom companies merge, you may face cell site lease termination. Selling your lease(s) for a lump sum will eliminate the risk that the companies involved will terminate your cell site leases.
To get the most for your property. If you are planning on selling the underlying property, selling the cell site leases separately may get you the biggest return, as most property buyers won't pay you fair market value for the cell site leases.
What we will do for you:
Review the Lease: We will evaluate the terms and language of your current lease and any buyout proposals, and answer any questions you might have.
Audit the Cell Site: We will perform an analysis of the location of the proposed cell site to determine the likelihood of the cell tower being relocated or terminated, which will include an investigation of zoning regulations,potential competing cell tower locations and expected replacement costs vs. profit flow to the cell tower owner.
Evaluate the Buyout Proposal: We will evaluate the lease buyout proposal and perform a lease valuation using comparable lease rates data comprised of previous offers and sales. Our goal is to determine the current fair market value of your lease today - and what it will likely be in the future.
Recommend a Strategy: Based on our analysis of the value of your lease, we will provide a recommendation on whether or not you should sell, and if so, for how much. We will also explain to you the upsides and downsides of entering into an agreement with a third-party cell tower lease buyout company. If you determine that you want to sell, we will recommend other buyers who might pay more for your lease. If you decide to accept the proposed offer, we will help you negotiate favorable terms.
