Looking To Sell Alltel Cell Tower Lease - So many options???

I take it you own land where an Alltel tower is??

If I were you I would try to get other companies to put equiment on it and charge a small fee for each company that has equiment on the tower.

I don't think that helps out that much.

 

trye dat.......

 

If you are going to sell the lease to the Alltel tower, you can only sell the land underneath the property unless you own the tower. Unless you have an agreement for co-location payments, it is a moot point to try to get co-location payments. You need to keep the easements around the tower so that companies can go through you instead of the new owner.

The question is- how much is the lump payment? If it is for 50 years you should get at least 20 years worth of payments or if it is real low try to increase the value of the lump sum to get what the tower is worth.

Unless you really need the money, it is hard to justify selling any tower lease unless the contract is really bad. Companies will only buy it at a faction of its true worth,

 

The long and short of it:

Wireless Capital Partners buys a lease assignment with a successor lease.

Unison buys a perpetual easement and offers to share revenue on part of your land which is not under lease currently.

Barkley also buys a perpetual easement.

What is the difference? It depends upon the specifics of your tower. Is there a specific risk of early termination? Is there any likelihood of additional tenants leasing space on the tower who might have to come to you for ground space? Do you care about having an easement on your property?

What happens when the current tenant is done with the tower? Does the property revert to you? Or does the buyer get to use it for perpetuity? What happens if the land value has gone up significantly- have you ended up tying up your land for a lump sum now?

Sorry to add more questions- but make sure you think through this before selling. You may be giving up more than you think.

 

My father has the property that is the easement to the tower but doe not own the property the towers are on. Should he get an easement fee?

 

I doubt it. The easement probably gives the adjoining property owner the right to pass over the easement for all reasonable purposes, including to let maintenance men on to work on the tower.

When these leases are set up, the companies putting up the towers check everything very closely, and do title searches.

 

At the end of the day, you want to be sure:

1. You are securing the most value for your site
2. You are positioning yourself correctly for the future
3. You have a company that can/will fund the transaction (many companies just sign people up to options and shop the paper)
4. You pay the least amount in taxes


Please contact me and I will provide any guidance you may need

Ron Reiss
Senior Site Development Officer
Unison

 

Jenny I would be happy to discuss this issue with you.

Regards,

Bud Pruett