Article Highlights
- Using Lump Sums Buyouts
- Building a Seller & Buyer Friendly Buyout Options
- Expertise & Relationships in Telecommunications
- Industry Knowledge & Value
- Multiple Deal Coordination
The Real Estate Climate in South Carolina
South Carolina is a hot-bed for real estate. With floods of youth, families and the infrastructure to support them, money is flowing and construction is happening. With this, comes a focus on telecommunication infrastructure & commercial real estate. Symphony Wireless works with brokers in the area as a capital partner at the sale table and a valuable option for commercial real estate players in times of high interest loans. These transactions fuel growth and present opportunity for sellers, buyers and brokers alike.
Multiple Towers, Multiple Parcels, Multiple Deals
There’s always some opportunity in South Carolina when it comes to cell tower lease buyout. Often the existing real estate transaction is for the land surrounding the tower only, leaving the tower in limbo as a part of the deal or an asset remaining in ownership of the previous owner.
This happens quite a bit, where anyone buying the land has to live with the fact that a tower not belonging to them is on the property. Symphony Wireless can provide capital options for all parties invovled.
An Industry Opportunity for an Industry Expert
Initially, the seller insisted on several acres coming with the property, making acquisition of the tower easement outside of the seller’s comfort zone.
Not all sellers are willing to break up tower property and land around them. It’s usually the biggest sticking point since some sellers know that buyers are not going to be too happy to have a cell tower on their property and have to contend with the cell phone companies doing repairs and updates.
Symphony has experience drawing these lines so all parties involved are happy.
Ergo, Dan and Sean worked together to put together multiple LOIs on the separate properties. Factoring the tower sale, revenue sharing of new carrier tenants and access routes for the tower leaving the property undisturbed in these offers. The property owner used these offers to lower the sale price factoring in the sale of the cell asset into his book.
Buyers have to agree to leave the tower there and allow for the company or companies that own the tower to have free and regular access to it. Symphony Wireless works within these deals to ensure comfort for buyer & sellers alike.
As it turns out, the owners had other properties available for sale as part of their liquidation. Working with Dan Quinn, Symphony’s Sean Lally was able to acquire the leases and rent verification on the other towers that Dan had on properties at the sale table. Sean and the Symphony Legal team discovered that Dan and the Property owner were in full rights to sell the rights & lease ownership to the asset as long as the tower and leases remained undisturbed.
Creating a larger profit for the property owner, by splitting the asset and the larger property into two transactions. This made it easier to sell the property as there was a more affordable price and an outline provided by the Symphony legal team to ease buyers minds as to the transaction and its implications.
One by one, the properties sold. Which triggered the agreed terms of the related cellular assets sale. Dan and Sean worked to structure these deals so the property owner had the payments spread out over 10 years to mirror the incremental value, but grow the dollar amount in that effort.
A win for all parties involved, put together with expertise, flexibility and some creative thinking. Now the property owner and Dan can enjoy the famous South Carolina sunset.
What can you do to learn where you stack up and if your clients are missing out on opportunities?
Partner with an expert. We at Symphony have been in the wireless industry for decades and are leading investors in cell site leases across the country. It is our business to know the value and risk profile of cell sites. We will assess your client’s site for current risk and future potential value and come up with a plan that best suits your client and it just might be the opportunity they’ve been looking for.
Disclaimer
The foregoing case study has been fictionalized in certain respects to protect the identities of the parties. Past performance is not indicative of future results. Symphony Wireless does not provide tax, accounting of estate planning advice. Interested parties are encouraged to consult your own legal and tax advisors.
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