Landmark Dividend Lease Buyout Offers
Landmark Dividend is a fairly new company that began operating in 2010, and is what is known in the wireless communications industry as a “lease buyout company.” Lease buyout companies purchase cell site and cell tower leases from landowners, building owners and public entities. Landmark Dividend was formed by industry veterans and investors who understand the benefits of acquiring cellular assets. The are currently reaching out to leaseholders who have received and turned down offers in the past, but this time Landmark’s pitch is slightly different.
These new offers include options such as:
Lease buyouts for a shorter length of time:
Landmark found that many of their offers were being rejected by landowners who did not like the idea of tying up their property rights long term, and have responded with shorter length options.
Participation in Landmark Dividend’s Unit exchange program:
Landmark also found that many of their offers were being rejected by landowners who enjoyed the recurring lease payments of their current lease, did not have a “better” or different investment that they would rather invest in, and did not want to sell and incur the capital gains tax. To entice these landowners to sell, Landmark Dividend has started to offer an option for landowners to sell by contributing their lease (as a capital investment) into their publicly traded limited partnership MLRK. Basically, the landowner will exchange the value and cash flow of their lease for shares of the partnership that will pay a recurring dividend. Landmark states that this may defer the trigger of capital gains taxes and also mentions other benefits such as diversification of assets and a possible tax shield on returns. As with most investments, the value of this option varies for each individual and there are many aspects that a landowner would want to look at, including the value, risk, and return of their current lease vs. that of the MLRK partnership units. Additionally your CPA should be consulted for any tax implications.
This one is not a new concept by any means, but in reaction to landowners wishing not to sell and incur the related capital gains taxes, Landmark Dividend as well as many of the other buyout and tower companies have started to point out the possibility of deferring capital gains taxes on the sale of your lease as an easement, by participating in a 1031 tax deferred exchange. This would be done through a qualified intermediary while the tower company or buyout firm is simply the party buying the easement from you. Additionally, the value of a 1031 exchange varies for each individual and should be discussed with your CPA.
While Landmark Dividend (and other buyout companies) have started to offer a few different options to their buyout pitch, the options added are not as different as they would have you think. The majority of these options were already available to you previously in some form or fashion and this is more a form of repackaging to entice a below market sale of your lease. The most important aspect here is knowing the fair market value of your lease and, if you wish to sell, the best way to receive the highest value for it.
Steel in the Air assists lessors with cellular lease valuation to determine the real fair market value of their leases. We can review any Landmark Dividend or other buyout company proposal to assess whether it’s at parity with other industry offers. Also, we can evaluate the longevity of your lease to determine whether it’s more advantageous to:
- Sell to Landmark Dividend
- Sell to another lease buyout entity, or
- Keep the lease(s) and continue to receive rent
Our cell tower lease assessment is based upon whether there are risks of termination that are tied to your specific lease(s). We will look at the discount Landmark Dividend is applying to your future cash flow and evaluate the risk to determine whether there is any justification to selling.
As a cell site leaseholder, you should ask yourself the following questions before you sell:
- Is it likely that I could receive additional income from this lease in the future?
- When the lease is set to expire, could I negotiate a significantly higher lease rate than I have now?
- Are there any restrictions in the purchase agreement with Landmark Dividend that would devalue my property in the future?
- Should I consider selling to another company other than Landmark Dividend that would offer either a higher lump sum or better terms or perhaps both
- What would other companies offer for the same lease?
- What is the optimal combination of price and deal terms given my situation?
We are here to assist you with evaluating your Landmark Dividend offer and help you make an informed decision based on the pros and cons of selling to them or keeping your cell tower or rooftop lease(s).
Please contact us for a free cost estimate of our services. In many cases, if we believe it makes sense to sell your cell tower lease, we can help you find a better offer or will get you better terms that will save you money in the long run. In some instances, we may suggest not selling because the present value of the future cash flow of your site is worth far more than Landmark’s offer. Either way, it is to your advantage to leverage our services and pay our nominal fee than to sell blindly. After all, we deal with lease purchases every day. So why not let us help you make an informed decision. Contact us for more details.
Additional Steel in the Air Services
If you’ve already decided to sell, we strongly encourage you to consider one of our other services. For example, we can help find other offers for your lease(s) at no cost to you. We can also get you multiple other offers that you can compare to the offer from Landmark. While we do not charge for this service, we do receive a finder’s fee from any company that we bring that ultimately purchases your lease(s).
Please contact us to request a free quote for a lease buyout. We promise to tell you up front whether or not we believe we can help you find a better offer ‐ with no cost or obligation to you.
For legal assistance with a Landmark Dividend lease buyout option or any other cell tower lease issue, please contact our affiliate, Cell Tower Attorney.
If you have reached this page while searching for Landmark Dividend’s website, please go to www.landmarkdividend.com. This website is intended to assist our potential clients who have been contacted by Landmark Dividend to purchase their cell site leases. Steel in the Air is a company that assists tower owners with lease valuations and is not affiliated with Landmark Dividend.