Tower Buy Out Offer

I have been approached with a buy-out offer for my existing cell tower lease just 1 year in to the first of 5 potential 5 years terms.

Current arrangement:

Initial Mo. Rent: $685.00
Yearly increase: 2.4% annually
Lease agreement: (5) year term with option for (4) more 5 year terms.
Currently in year (2) of first 5 year term as mentioned.

1) (7) year installments equaling $111,000.00
2) (12) year installments equaling $130,000.00
3) Lump Sum Payment $81,000.00

Site is currently single tenant and was originally built by AT&T. Now owned by one of the major tower companies.

Forget about whether the original deal was bad or not, it was very competitive amongst several land owners at the beginning.

Also, I am not comfortable with the word Perpetual easement.

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Mar 20, 2012
Did you give AT&T the ROFR?
by: Tower Genius

Not a bad offer based on rental amount for the lump sum. Did you give AT&T the ROFR (Right of First Refusal)? If you did then you are leaving money on the table and you won't get a the best offer.

For example earlier today I got a call from tower landlord in the Southwest who gave Verizon the ROFR, they sold the tower to a tower company who is now offering them a lousy buyout deal for 7x yearly revenue. They are leaving about $30K on the table. Of course in your situation they were talking to your neighbors and got you to sign for a lower price, but often carriers and tower companies use what I like to call "marxist tactics" when negotiating a cell site lease with the ROFR language. Yes, strong words, but I know they are always lurking around here and read these blogs regularly.

Please let me know if we can help you.

Tower Genius

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