Article Highlights
- Using Lump Sums Buyouts
- Building a Tax-Friendly Buyout Options
- Expertise & Relationships in Telecommunications
- Industry Knowledge & Value
- Accommodations for Development Plans
Realizing True Value Leads to More Than Expected
Property owners with existing cellular assets have become accustomed to the monthly recurring income from renting out to many of the top cell phone companies. But many of them don’t realize the true value of their assets and what a buyout with flexible structure can do for a business.
John Marks, the condo manager had been using his condo’s cellular asset income to keep the condos afloat during the tumultuous time of COVID. Now that the world is returning to normal, John is looking at retirement & the condo board is looking to make improvements. John saw an opportunity to leave his mark on the Condo Board & had to find somewhere to raise capital, but with interest rates so high he had limited options.
He had received multiple calls from Symphony Wireless’ Acquisitions Advisor over the past few months and thought now might be a good time to call him back.
John had lived in the community for over 20 years. Leaving his mark on the community meant a lot to him, doing it right meant more. After speaking with Symphony’s advisor, he realized that there was a lot of wasted time spent during the pandemic not exploring these options.
Bigger Benefits For All – Boiling Everything Down to Three Pivotal Pieces
- The offer for the tower came in well over expectations. Making the monthly income coming from the carrier lease seem irrelevant compared to the opportunity a buyout presented.
- Symphony would work to make sure that the deal goes as smooth as possible, getting the funds in John’s hands swiftly.
- Payments can be spread out across time, this way John can not only make the improvements to the SC Condos, but can leave money for future improvements & repairs!
Not surprisingly, the board loved it. Within 5 weeks John and the Condo Board had cash in hand! The board opted to get 65% of the buyout today for repairs and renovations, and push the remaining 45% of the buyout over the subsequent 2 years.
Not surprisingly, the board loved it. Within 5 weeks John and the Condo Board had cash in hand! The board opted to get 65% of the buyout today for repairs and renovations, and push the remaining 45% of the buyout over the subsequent 2 years.
John had lived in the community for over 20 years. Leaving his mark on the community meant a lot to him, doing it right meant more. After speaking with Sean at Symphony, he realized that there was a lot of wasted time spent during the pandemic not exploring these options.
Trusted Partners Bring More to the Table Than Expected From Previous Endeavors.
Working With People Who Share Your Goals
Two major carriers renting tower space at the time of the sale, were on board with the transfer of tower property. Making the sale a very clean transaction and transition for everyone involved. Ultimately, one of the carriers came back to negotiate to add another lease to the tower, this addition is split via revenue share with the board.
The carriers keep their space & get a new partner to work with. The Condo gets funds for renovations and potential for new revenue, and John gets a fantastic retirement party!
What can you do to learn where you stack up and if you are missing out on opportunities to protect or better grow your rent?
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 site for current risk and future potential value and come up with a plan that best suits your interests or needs. Our assessment should help provide you with a reliable view as to how your site fits in with the expected future of the cell site grid. And it just might be the opportunity you were looking for to capitalize your cell site rent stream.
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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