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Cell Tower Lease or Cell Site Lease Buyouts | Steel in the Air / HOME

Cell Site Lease Buyouts

Chances are if you currently have existing cell sites on your property, you will receive a postcard from a company stating that they are placing antennas in your area and are interested in your site. Don't be fooled, more than likely it's just a false come-on intended only to induce you to contact a cell site lease buyout company. These cell site lease buyout companies purchase the remaining cash flow under a cell tower lease.

Some tower companies like American Tower and Crown Castle have been contacting owners directly as well. These transactions are typically crafted as a simple one-time payment for a lease assignment. Sometimes they are structured as a permanent easement in exchange for the rights to collect all future rent payments from the cell tower owner. Other companies just purchase an assignment of the cell site lease and a successor lease.

Unfortunately, still other companies resort to "scare tactics" -- suggesting that emerging technologies will render your tower obsolete in the near future. They may even include news articles with their offers about LightRadio, or the 700MHz spectrum auction, or the pending AT&T/T-Mobile merger. Instead of explaining the articles, these cell site lease buyout companies would rather have you assume the worst. They may also suggest that industry consolidation is prompting the standard "90-day" cell site leases to be considerably shorter. Most agreements are written to allow the cell site lease buyout company or wireless carrier to terminate the cell tower lease with 90-days notice, without penalty. Don't be fooled: While it's true that cell tower leases can be terminated, it's not a common occurrence.

Reasons to Consider a Cell Site Lease Buyout

Of course, there are reasons why you might want to sell the remaining portions of your lease to a company that specializes in this type of transaction:

• First and foremost is the opportunity to get cash out of your asset. These companies often offer a sizable payment when your own financial institution would not. Landowners attempting to borrow against cell site leases often discover that banks do not loan against them because of the 90-day termination rights common in most cell site leases. Purchasing companies can reduce the risk that any one lease will be terminated whereas you cannot.
• Second, the "offer you can't refuse" might just be one that's too good to pass up. It depends on the location of the site and the company purchasing the lease rights. The only way to determine which situation you're facing is with an expert review.
• Third, in certain situations where you are facing possible cell site lease termination due to the AT&T- T-Mobile merger, the Verizon/Alltel merger, or the Nextel / Sprint merger, the sale for a lump sum may very well eliminate the risk that those companies will terminate the cell site leases. We'll help you gauge that risk and determine if the sale is right for you.

If you are interested in getting an offer to buy your lease or would like additional offers beyond the one you have received already, Steel in the Air will procure additional offers at no cost to you. However if you choose to move forward with an offer we find for you, we charge a nominal finder's fee to the company making the offer. This fee is paid to us separately and does not impact your compensation whatsoever.

Unlike other consultants, we will never require a fee from you and then charge a finder's fee from the buying company. It's a major conflict of interest and one that you should never consider.

If you want a trusted advisor to help with your decision-making, you can retain us for a fee. If you simply need guidance and advice on whether or not you should sell your cell site lease, we are ready to assist. Steel in the Air has assisted over 750 landowners just like you, on cell site lease buyouts.

We'll help you estimate the true "present value" of your cell site lease; unveil the history of the lease purchase market; and share our insights on future expectations. We'll also advise you on when is the best time to sell. With our comprehensive database of over one thousand transactions, we can reveal actionable trends in this area. We have a comprehensive database that included thousands of lease buyout offers and sales made over the last 7 years from every lease buyout company and every tower company with more than 100 towers. Furthermore, we can determine whether or not you are sacrificing future revenue that you might not have even considered.

If you are interested in simply getting a better offer, contact us with the details of your lease(s) and any current cell site lease buyout offer you are received. We will be happy to discuss other options you may be available.