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Cell Tower Lease Buyout Lump Sum Cash Payment Offer

by Marica
(Florida)

I have 17 years left on my current cell tower lease. I get $1200 rent per month. They sent me a letter about a perpetual communications easement, and a 99 year lease....she said they were prepared to pay a lump sum of $158,000. I know this is less than if I keep getting monthly payments, but can you negotiate this amount, and what % of the original lease payments should i be looking for???

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Cell Tower Lease Buyout Lump Sum Cash Payment Offer

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Aug 17, 2010
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What to do - US Cellular cell tower lease buyout offer NEW
by: timothy

Yes I have a US Cellular tower on my property and an AT&T tower on my property , I have 16 years left on the US cellular tower lease at approx $9100 per year, plus 3% increases per yer. I have an offer for a lease buyout of the US cellular tower for 20 years at 1 time payment of $ 60,000 . I have a clause in the US Cellular contract that they can put up to 4 more tenants on the tower without permission from landlord. Now these terms come up every 5 years. Can they be reversed to me, the landlord getting 80/20 on rentals from new tenants? The cellular lease buyout company says I will get 80/20 of future rent payments.

Thanks, Tim

May 18, 2010
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Questionable lease buyout deal... NEW
by: Anonymous

The offer they gave you is based on a total rent of $244,800 (1200*12*17 years) achievable over the life of the term but discounted at 6.5% which is its Net Present Value. A 99 year term significantly increases their upside as it adds 82 years of income stream that you will not be entitled to.

Mar 31, 2010
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RE: Cell Tower Lease ... To lump sum payment or not ? NEW
by: Steve

Marcia,

You know any time that anyone, regardless if they are a cellular carrier, lottery, etc. offers you a lump sum cash payment up-front, they are doing it because they are making money hand-over fist after you are out of the picture.

You know your financial situation better than anyone, however making the correct decision today can have an impact on your financial situation 25 years from now, so take 2 steps back before you make a decision.

I have several questions but I don't want to give away the farm on this forum because our competition reads it as well :-))) but when you are offered up front cash for your cell tower lease, it usually means that the site has potential for further co-location.

We can take a quick look at your cell site lease at no cost to you to determine what your options are to put you on a level playing field with the carriers.

If possible fill out a contact form on this site, I'll also send you an email in a few minutes.

Steve
AirWave Management

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