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???

Comments for Cell Tower Lease Buyout Lump Sum Cash Payment Offer

Average Rating starstarstarstarstar

Click here to add your own comments

Apr 12, 2017
Rating
starstarstarstarstar
Thanks Kevin and Steve
by: Roger

Kevin I appreciate your help with our cell tower lease buyout. You and Steve are the real deal and without your help there is no way we would have walked away from these negotiations with the price that we got. Thank you Tower Genius.

Sep 17, 2016
Rating
starstarstarstarstar
Our condo association got a bad deal on a cell tower buyout.
by: Peter

A word of caution to those thinking of selling their cell tower leases to a "lease buyout" company. We were called over the years by Lease Advisors and Tower Point, Landmark Dividend,, AP Wireless, Black Dot and a slew of other firms. Unison also comes to mind. First of all, how did all of these companies get our contact information? I suppose there has to be a database of cell tower landlords floating around that people are selling.

After we sold our lease in 2014 we found out the following year that we did not put terms into the sales contact that the taxes would pass through to the buyer. Now we are stuck paying taxes on property where the cell tower equipment is located and being leased but we have no more rental income, and the buyout company is not responsible for the specific portion of the tax bill attributed to the cell tower. Our attorney didn't catch this and none of our board members did either, now we are stuck paying the tax on someone else's tower. It's probably a very good idea to have a professional like these guys on this website take a look at your transaction before you finalize it.

Sep 16, 2016
Rating
starstarstarstarstar
Value of new tenants
by: Ron

I have over 12 years of cellular leasehold acquisition and evaluation experience, and now have aligned with the largest cellular **@*$ *&*%*** in the U.S. If you would like to truly know the value of your site, feel free to contact me.

Hey Ron Don't Here You Moron @gmail.com

Jan 06, 2016
Rating
starstarstarstarstar
2 towers sold out no tenants in 5 years
by: Tmks towers

Did a lease buyout with towerpoint capital about 4 years ago . Put in contract we the owners get 80% revenue , new tenant money . We have a att tower and a Us cellular tower , we have no new tenants since 2012 . No more revenue . Should I sell 9.2 acres with cell towers or hold on to acreage with towers and wait for new tenants. It's in franklin county missouri , 63084 . 7377 hwy BB and hwy 50 . What to do.

Jan 04, 2016
Rating
starstarstarstarstar
no options left after 99 yr. buyout?
by: Anonymous

I would love to know the anwer to this question that was asked as I am in the same position right now.


no options left after 99 yr. buyout
by: Anonymous

If I buy property with a 99 yr cell tower lease buyout in effect, are their any options for me (the new property owner) to negoiate anything going forward or shouldn't the company who performed the buyout at least be paying their share of property taxes?

Editor's Note: This happens ALL the time. Cell tower landlord does a "great buyout deal" but the attorney or consultant they hired does not adjust the tax language. The monkey working at the buyout company is clueless and has no idea what they are doing. What does the old owner care if they are selling the property? And you, the new owner are left holding the bag and stuck paying the increased property taxes. Most likely you are out of luck.

Jan 07, 2015
Rating
starstarstarstarstar
Could be better
by: Anonymous

Try to get at least 13 times whatever they pay you annually. Sprint isn't as good as a Verizon lease that's maybe why the offer is a bit less.

Dec 29, 2014
Rating
starstarstarstarstar
Approached to sell my cell tower lease
by: Anonymous

I was offered $168,960 on a Sprint cell tower paying $13,200 yearly and my lease only has 8 years remaining. Should I ask for more or is this a decent offer?

Dec 21, 2014
Rating
starstarstarstarstar
Thank you Tower Genius
by: Marc

Thank you for the time you spent with me on the phone. Everything you guys said was correct. We are going to hold off on selling the lease, but will call you again if we decide to sell.

Marc

Apr 25, 2014
Rating
starstarstarstarstar
Landowner
by: Paula Hammons

I have been offered funds for this cell tower lease
At first I was skeptical and gave them the brush because I did not understand. I was kinda rude to
these people so they won't call back. Now after thinking about it I want to sell the lease. But I
would like to make sure I do get a fair price.
What company do you recommend that would discuss
this with me whereas I would feel okay with it.
The other people it did not seem right to me.

Paula

Jan 12, 2013
Rating
starstarstarstarstar
no options left after 99 yr. buyout
by: Anonymous

If I buy property with a 99 yr cell tower lease buyout in effect, are their any options for me (the new property owner to negoiate anything going forward or shouldn't the company who performed the buyout at least be paying their share of property taxes?

Aug 17, 2010
Rating
starstarstar
What to do - US Cellular cell tower lease buyout offer
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
Rating
starstarstarstarstar
Questionable lease buyout deal...
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
Rating
starstarstarstarstar
RE: Cell Tower Lease ... To lump sum payment or not ?
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
Tower Genius

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Cell Tower Lease Forum.

Subscribe to the
Cell Tower Insider
Enter your E-mail Address
First Name (optional)
Then

Don't worry — your e-mail address is totally secure.
I promise to use it only to send you Cell Tower Insider.



Contact a Telecom Lease Lease Genius Today.

1-888-313-9750