Tower Ventures – Asked to Reduce Your Lease Rate?
Tower Ventures – Asked To Reduce Your Lease Rate?
To begin with, Steel in the Air, Inc. is not affiliated in any way, shape or form with Tower Ventures, LLC. If you found this web site while looking for Tower Ventures LLC’s web site, please go to www.towerventures.com. Tower Ventures, LLC and Tower Assets Newco II, LLC are registered trade names of Tower Ventures LLC.
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Tower Ventures LLC has recently purchased Cingular and AT&T cell towers that AT&T and Cingular terminated their leases on. Most of these towers do not have any revenue or the revenue that they generate is less than the expense of managing and operating the tower. From Tower Ventures web site, it appears that they purchased 300 or so towers.
The landowners who have the ground under these tower sites are being approached by Tower Ventures LLC through a sub entity called Tower Assets Newco II – (and maybe other entities.) The pitch is simple: the tower is no longer profitable and the landowner needs to sign a new lease with Tower Ventures at a reduced lease rate in order for them to continue the lease.
In these situations, the landowner may currently be receiving a high lease rate because AT&T and Cingular terminated and sold off their more expensive sites an retained their cheaper sites. The landowner is being asked to reduce their lease rate substantially in some cases in order to retain any income at all. The proposed lease modifies the previous lease and makes changes that are favorable to Tower Ventures, LLC but not to the landowner. The landowner may be weary because he/she was already contacted once before by Black Dot Wireless and chose not to negotiate.
These towers have value and you as the landowner should be aware of what that value is. Your lease rate should reflect a negotiated agreement that is profitable for both you and Tower Ventures. In many cases, there is no way around it – you will need to reduce your rent.
However, Steel in the Air can assist you with evaluating how much you will need to reduce your rent. We can help you evaluate whether revenue sharing is appropriate for your lease if Tower Ventures adds additional tenants to the tower. Lastly, we can help you understand your options.
If you have been contacted, and need help renegotiating your lease, please fill out our contact form with information regarding your Tower Ventures LLC lease and we will get back to you as soon as possible.