Lease Buyouts
What We Provide
Cell Tower Lease Buyout
Selling your lease requires careful timing and expert guidance to maximize its value, as waiting too long or accepting the first offer can lead to financial loss.
Looking for the Best Cell Tower Consulting?
JP Tower Consulting
Your Trusted Partner in Lease Buyouts
At JP Tower Consulting, we specialize in ensuring that you extract the maximum value from your tower lease. With over 17 years of experience working within the cell tower industry, we bring insider knowledge and strategic insight to the table. Our founder, John, has a wealth of experience gained from years spent within a major cell tower operator, understanding the intricacies of the industry from the inside out.
We pride ourselves on transparency and diligence. When you choose JP Tower Consulting, you’re not just hiring a consultant; you’re gaining a trusted partner dedicated to securing the best possible deal for you. We don’t rely solely on offers from cell tower operators. Instead, we leverage our network to obtain multiple competitive bids, ensuring that you have a clear picture of your lease’s true value.
Avoiding Common Pitfalls
In the competitive landscape of lease buyouts, not all consultants have your best interests at heart. Beware of those who have exclusive deals favoring third-party buyout companies. While relationships can be beneficial, they should never come at the expense of your financial well-being.
At JP Tower Consulting, our focus is on you. We create urgency by soliciting offers from both third-party buyout companies and cell tower operators, ensuring that you have options and leverage in negotiations. Our goal is to empower you to make informed decisions that align with your best interests. With us by your side, you’ll navigate the complexities of lease buyouts with confidence and strategic advantage.
Need Information
FAQs About our Cell Tower Lease Buyout Consulting Service
The value of your lease depends on several factors. If it has over 15 years left and escalates at 3% annually, its market value is roughly 19 times the annual rent. However, lower escalations or a Right of First Refusal (ROFR) can decrease its value. For leases within 15 years of expiration, tenant composition and lease duration are critical. Closer expiration dates increase value, especially with multiple carriers. Sites with less than 5 years left are valued based on a multiple of what the perceived negotiated rent would be at final lease expiration. While a site under 2 years from expiration is based more on a multiple of tower cash flow.
The timeline for closing depends on any title defects and how quickly attorney redlines are resolved. It's crucial to clear any lines, judgments, or back taxes before starting the process to sell your lease to avoid complications. If there's a mortgage, discuss an SNDA with the lender as it's often required for closing, especially if the loan amount matches or exceeds the purchase price. Properties without a ROFR are simpler to transact. Typically, closing takes 3-6 months, but unforeseen issues might extend it beyond a year, especially with ongoing negotiations between attorneys.
Consider selling your lease if it has less than 10 years remaining, as it's often valued differently by tower and third-party buyout companies. Another opportune moment is just before or after an escalation hit if your lease is long-term. Ensure you have a plan for the proceeds before selling.
Absolutely, I recommend getting legal advice. If you sell the property without proper consideration for the tower lease, it could complicate the sale or burden the buyer with unexpected costs like property taxes. That’s why you’d want to account for a reimbursement for property taxes so a future buyer wouldn’t be on the hook for taxes on a tower they receive no benefit from. Contract terms will always favor the tower company and hiring a telecom attorney for that piece of mind is crucial.
Lease buyouts are often structured as perpetual or 99-year easements. If you prefer shorter terms, third-party buyout companies offer options with 50- or 60-year easements.
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