Cell Tower Site Evaluation and Audits
Today Cell Tower owners are in a unique position to capitalize on industry growth. Many Cell Tower Companies want to increase their footprint and are willing to pay higher prices than previously. There are several factors used in assessing the values of the Cell Towers. The current rent role, size of your compound area, overlapping coverage from tenants, zoning, structural integrity of the tower itself and the potential to add new tenants all factor into the value of each Cell Tower.
ComServe can help with the evaluation and determine a fair market value for your Cell Tower. We can also present several offers from different Cell Tower Companies if you should decide to sell your asset. Without assistant, you may undervalue your asset and potentially enter into a sale below the fair market value of your cell tower. We will go through each issue regarding your cell tower and help you achieve fair market value pricing.
Please contact us before you enter any new Cell Tower or Cell Site Agreement.
Rent Reduction and Rent Optimization – Black Dot & MD7
Cell Tower Owners have received rent reduction letters offering guaranteed rents for a reduction in the monthly rent or a Lump Sum payment. Cell Tower Owners that have Lease agreements with AT&T Wireless, Cingular, Sprint, Nextel, Metro PCS Verizon, Alltel and T-mobile may have received a letter. These Cell Tower Companies have engaged independent contractors like Black Dot Wireless and MD7 International to reduce their costs.
These programs are called rent reduction programs and lease optimization programs. Many Cell Tower Owners fear losing their Lease revenue and accept these new lease terms.
Also, you may receive an offer for a one-time Lump Sum payment for your Cell Tower. These offers are usually very low and are suspect. Contact us immediately; we can save you from making a major error. Remember, these are independent companies contracted by the Wireless Carriers. They are in the business of making money from your lack of knowledge.
ComServe can help you negotiate your Cell Tower Lease(s). We have experience dealing with Black Dot and MD7 and will assess your risk of losing your Cellular Lease with the Carrier. Most Cell Tower Owners have no way of knowing if their is a true risk of the Cell Tower becoming “redundant” nor prepared to deal with the sales tactics used to entice Cell Tower Owners to comply.
With the mergers of AT&T & Cingular and Sprint & Nextel, there is a real risk of duplicate sites. It has been years since these mergers and they still have sites overlapping. We will help you determine if a real redundancy risk exists and negotiate the best results for you regarding your cell Tower. You will gain the knowledge from ComServe to make an informed decision regarding your Cell Tower. We cannot guarantee your cell Tower will lose Carriers but we will evaluate the risk of your Cell Tower losing them.
Please contact us before you enter any new Cell Tower Lease or Cell Site Lease Agreement.
AT&T, Cingular, Sprint, Nextel, Verizon, Metro PCS and T-Mobile are registered trademarks of AT&T Wireless, Cingular Wireless, Nextel, Sprint PCS, Verizon Wireless, Metro PCS and T-Mobile USA, Inc. Black Dot and MD7 are registered trademarks of MD7 International and Black Dot Wireless respectively. ComServe has no affiliation with any of these companies.
Cell Tower Lease Buyouts and Cell Site Lease Buyouts
Finance Companies Like WCP, Unison and CCG have entered the cell tower lease buyout industry. They purchase the discounted cash flow from the current cellular lease in place. Also, Cell Tower Companies like Crown Castle, American Tower, SBA, TowerCo, Mobilite, Tri-Star and Diamond are contacting owners as well. All these deals are usually centered on one-time Lump Sum Payments for the control of Cell Sites over an extended period or a perpetual easement. Cell Tower owners are giving up all rights to collect future rent payments to these Companies in exchange for receiving the one-time payment. This deal can also be structured in several ways to gain control of your cell tower lease and a successor lease.
These companies will deploy many different tactics to get you to enter into an LOI or Option to purchase a Cell Tower Lease. Their sales forces may try and intimidate you by selling you on “cell tower obsolescence risk”, “ cell site consolidation and merger risk”, and “upside potential” of partnering with their company. They also will tell you they will “market” your Cell Tower for you and split any new revenue.
If you wish to sell your Cell Tower Lease, we can help you maximize your payout. These companies are willing to pay a sizable amount of funds for Cell Tower Leases. Many Cell Tower Owners sell for below Market Value because they did not have proper representation. You may want to sell your Cell Tower Lease but you want fair market value. ComServe will help you get the market rate for your cell site.
In some cases, the Cell Tower Owners may want to sell do to the mergers of AT&T and Cingular or Sprint and Nextel. Even though these companies have merged, they are still going through their inventory and deleting cell towers. Also, most lenders will not allow the site owner to use the Cell Tower as collateral. We can supply you with the proper guidance to make right decisions regarding your cell tower lease.
Please contact us before you enter any new Cell Tower Lease or Cell Site Lease Agreement.
AT&T, Cingular, Sprint and Nextel are registered trademarks of AT&T Wireless, Cingular Wireless, Nextel and Sprint PCS. WCP, Unison, CCG Crown Castle, American Tower, SBA, TowerCo, Mobilite, Tri-Star and Diamond are trademarks of Wireless Capital Partners, Unison Site Management, Communications Capital Group, Crown Castle International, American Tower Company, SBA Communications, TowerCo, Mobilite Partners, Tri-Star Investors and Diamond Communications. Comserve is in not way affiliated with these companies.
Giving up additional Land or Space with a Buyout
Additional Land can play a factor in the selling of your Cell Tower and its leases, they will ask for additional Land. Additional land may be required as part of a sale or it may be used in a “sales pitch” to entice Cell Tower Owners to sell. This extra land is sometimes presented as an “Ease Flex” and promises great upside potential. You may receive a promise of 50/50 revenue share and that they will market your Cell Site for you to get this revenue. These promises should be addressed carefully.
Unison has utilized this tactic with great success. We have dealt with this issues numerous times and can tell you the probability of you ever receiving additional revenues from your Cell Tower. If you have been offered an agreement in which you are giving up additional land, you should contact us.
Unison and Ease Flex are trademarks of Unison Site Management. ComServe has no affiliation with Unison Site Management.
Please contact us before you enter any new Cell Tower Lease or Cell Site Lease Agreement.
Finance Company Buyout offers - WCP, Unison & CCG
If you own a cell tower, it is very likely you have been approached by a finance company with a buyout offer. These companies have created a market that gives owners the option much like the lottery. Do you want the annuity stream or the one-time Lump Sum Payment? This service can be useful and they will give you many compelling reasons to sell. The problem is, there sales people are given great incentives to get you to sell as cheaply as possible. If you should decide to sell your Cell Tower Lease, we will guarantee you the maximum offer. This is not as simple as taking 3 bids from different companies. Please, don’t leave thousands of dollars on the table. Call us.
In addition, you may receive promises of additional revenue and marketing promises for your Cell Tower. While these promises may have appeal, they must also be carefully scrutinized.
Unison, WCP and CCG are trademarks of Unison Site Management, Wireless Capital Partners and Communications Capital Group. ComServe has no affiliation with these companies.
Please contact us before you enter any new Cell Tower Lease or Cell Site Lease Agreement.
Tax Ramifications and 1031 Exchanges
Cell Tower Owners want to know if their transaction qualifies for Capital Gains treatment. The sales representatives from the Cell Phone Tower Company or Finance Company will always tell you what you want to hear. They have almost always never consulted an Accountant or Tax Advisor. We do not give Tax or Legal advice but we can point you in the right direction based upon the experiences we have gained dealing with this issue. We can also answer questions for your Attorney or CPA.
Some of our clients want to do a 1031 like-kind exchange. There are certain criteria and filings that must be completed before your transaction. We can help you avoid making a costly error that could prevent you from taking advantage of this tax deferring filing.
