A tower company is in the business of leasing real estate for the purpose of placing a telecommunications tower on that leased area. Specifically, a tower developer seeks to lease property from a landowner with the intent to later sublease the same property to one or more cell phone carriers. This list includes Crown Castle, American Tower Corporation, SBA Communications, Global Tower Partners, and TowerCO as the top companies in the industry. These are the end buyers in the cellular tower industry. These are the companies that we will help you sell your ground lease or rooftop lease to.
Real estate agents are the people you deal with face to face when buying or selling property. These are the people on the front lines of the real estate market and perform such tasks (amongst others) as showing homes to perspective buyers and negotiating transactions on behalf of their client. Real estate agents often work on a 100% commission basis, their income dependent upon their ability to find property suitable for their clients and closing transactions.
Even seasoned professionals in the commercial real estate industry usually have little to no experience with cell tower leases. In fact, many commercial real estate agents turn to Wireless Investment Group when a property they are selling includes a cell tower or rooftop wireless site.
Brokers are real estate professionals offering services to represent property owners in a variety of real property transactions. They typically work on commission and represent either the buyer or the seller in a transaction, although sometimes they are able to represent both the buyer and seller when they disclose their dual agency relationship and obtain the written consent of both parties. Broker’s commissions vary depending upon the type of transaction, the size of the transaction and the customary commission in the geographic area where the property is located. The fees are fully negotiable. In a cell site lease buyout transaction, some brokers charge a commission of anywhere between 4% and 8% of the purchase price.
Many commercial and residential real estate brokers use our services when dealing with a property that contains a cell tower or rooftop wireless site. The sale of cell tower lease rights alone can be done separately, without the need for a real estate broker, saving thousands in commision. Simply contact us for a freeb cell tower lease value consultation.
In recent years, lease buyout companies such as Unison Site Management, Wireless Capital Partners, Landmark Dividend, and Tower Point Capital have been aggressively purchasing cell site leases from landowners across the country. In most instances, the lease buyout companies purchase an easement in the property and take an assignment of the cell site rental income.
These are middle men! They are buying your cell tower lease for less than what it is worth, so they can turn around and sell it to the cell tower companies above for more. They are in the business of exploiting uninformed land owners of cell tower sites by buying the lease rights for well under market value.
Specifically, the transaction involves the lease buyout company purchasing discounted cash flow from your current cell tower lease in the form of a one-time, lump sum payment in exchange for an assignment of the future cell site rent. This may be for a fixed term (30,40, or 50 years) or perpetual.
By signing the Easement Agreement, you grant the buyout company an exclusive easement over your property for the transmission and reception of all wireless communication signals and the construction and operation of towers, antennas and related facilities. More importantly, you agree to forfeit all rights to collect the future rent payments during the term of the Agreement. These companies utilize many different tactics to convince you to sell your cell site lease, like insinuating a possible risk that the lease will be terminated due to technological advancement or change or cell phone company consolidation and merger.
Although they may be willing to pay large sums of money for your lease rights, you might be surprised to learn that many landowners or tower owners mistakenly sell their lease rights for well below market value. There are several other things you need to consider as well. That's why it's advisable to speak to Wireless Investment Group before moving forward with a sale of your cell site lease.
If you are considering selling your cell tower lease, contact us for a free consultation. |
