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Beware Of Cell Tower Lease Buyout Installment Offers

Beware… It is Landlord Season, and Elmer Fudd from cell tower lease acquisitions is dangling the carrot in front of you again. Talk to us if you’ve received a cell tower lease buyout installment offer.

Beware Of Cell Tower Lease Buyout Installment Offers
Steve Kazella:

All right. So this is why it’s important to pay attention to what type of cell tower lease buyout offer you actually take. So we have had a conversation recently with a cell tower landlord that got an offer from a large cell tower management company. Basically, this individual has a pretty hefty base rent, and it’s an older cell site that the rent has increased many, many times over a couple decades. And they were offered a $2.7 million payout over, gosh, I think it was 17 years (instead of a lump sum). So it works out to, I don’t know, $13,000 a month. The only problem with this offer is really, hey, it sounds great. First of all, I don’t like the long-term payouts. I really don’t trust what that money’s going to be worth in 15 or 17 years.

But the other thing is it’s not that much more, that maybe it’s a little bit more, I don’t want to give away the guy’s base rent. But at the end of the day, this certain cellular tower company’s picking up this lease for about 14 and a half, multiple of only 14.5 times over time. Yeah. $2.7 million sounds great, but it’s only adding onto the base rent that they were already getting. So it’s really not a great offer at all. So then the other offer was for shorter term and still at a 14 and a half multiple, which is that stinks. That’s a low offer. So anyway, they dangle the carrot in front of you. You’re a cell tower landlord and a tower company is dangling the lease buyout offer carrot in front of you, you need to talk to somebody that sees these things and can help you decipher what the heck they’re talking about. Because trust me, they’re not going to tell you.
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Cell Site Lease Value Questions?

I was recruited out of Enterprise Rent a Car in 2000 by Kevin Donohue, who is my business partner today, to be a real estate site acquisition manager in the NYC Metropolitan Area for his company that was contracting for Verizon Wireless, T-Mobile and Sprint. In 2008 I founded a consulting firm know today as Tower Genius, LLC where Kevin and I have helped many thousands of people and existing cell tower landlords get the help and information they need to succeed at the cell tower negotiating table.

Carriers & Tower Companies Have Their Hired Guns. Shouldn't You?

Negotiating a cell tower lease, trying to figure out what the correct cell tower rent value for your property needs to be, or evaluating the broad range of proposals and offers received by most cell site landlords in 2022 can be very confusing. Connect with Tower Genius or submit your info below, and we'll evaluate your situation, answer your questions and even make a few recommendations you may benefit from.

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