The Importance of Real Estate to Telecom
When wireless carriers identify locations where they need to construct new telecom infrastructure, especially in urban areas, they are usually on residential or commercial real estate. In densely populated urban areas this is necessary to maintain quality service and connectivity and is even more important as new technologies such as 5G are rolled out, requiring even more cell sites.
If a property owner agrees to let a carrier install a tower on their land or a macro or small cell on their building, the carrier and property owner enter into a long-term ground lease agreement and the carrier agrees to pay the property owner or landlord monthly rent for use of land or space upon a building. The monthly payment for the telecom lease is usually determined by the specific type of installation, its location, whether it’s within an urban, suburban, or rural environment, and how critical the location and installation are to the carrier’s overall existing network. These assets can be valuable over time, but there’s risk.
Telecommunications technology constantly evolves with carriers updating their equipment to improve cell service quality, connection speed, and energy efficiency. Most contracts with carriers or tower companies will include a cancellation clause, often found in the original agreement, which allows the carriers to decommission or cancel their contract with you, the site owner, leavingthe tower or rooftop asset worthless.
Reducing Risk and Maximizing Value
Enter Symphony Wireless, the partner of choice for telecom lease buyouts – an attractive method you can leverage to monetize and derisk your telecom infrastructure. Symphony focuses on fast closing, no hassle, straightforward investments in telecommunications infrastructure, and buys lease rights on telecommunication assets such as rooftops and towers by offering the best value in the marketplace. Our focus is on maximizing the value of wireless leases, not the real estate itself, which enables us to offer the maximum value for these assets, often at cap rates that are lower than the underlying commercial real estate’s going-in cap rate.
In short, we offer a lump sum payment to “buy out” the remaining years of your lease and take over the relationship with the carrier. Our process determines the true short-term and long-term value of your telecom lease agreement to maximize our buyout offer. We carefully consider your site location in comparison to competitive sites and surrounding sites, your current lease, and amendments, including the rent, escalators, colocation provisions, contingencies, and your specific deal requirements so we can flexibly – and quickly – get the deal done.
In addition to a fast, lump sum payment, there are two other major advantages for landlords. First, selling your telecom lease to Symphony Wireless can be a tax-advantaged transaction. Leaseholders can use a 1031 exchange to reduce taxes by reinvesting proceeds from the telecom asset sale into another qualifying property, allowing them to defer capital gains taxes. Second, the easement Symphony purchases does not interfere with your ability to sell or redevelop the property in the future, so you retain full flexibility over your real estate.
Once you receive the lump sum payment, your risk will be mitigated to us and our portfolio of 5,000+ sites. We cannot renege on a lump sum payment if a carrier later leaves the site, or the site is decommissioned.
Some landowners seek this lump sum to cover significant expenses as noted above; others use the cash for investment purposes, to buy more real estate, or to buy or expand a business. Some landlords crunch the numbers and realize investing proceeds from a cell tower lease buyout can generate higher growth over the long term than their cumulative monthly rent payments.
How Symphony Can Do What Others Can’t
Founded in 2019, Symphony Wireless is led by industry veterans who helped shape the current telecom industry in the U.S. and have decades of experience at the intersection of telecom and real estate and the ability to close deals fast.
Bernard Borghei, CEO of Symphony Wireless, is a longtime telecommunications executive and has more than three decades of experience working with towers and carriers. Bernard has worked with some of the biggest names in telecom such as Vertical Bridge, the largest, privately-held telecom infrastructure firm nationwide, which he co-founded in 2014, and Global Tower Partners, which was the largest privately held telecom tower company before it was sold to American Tower – the largest public tower company. Bernard knows all the players in the telecom space and has strong relationships with the leading carriers.
Symphony is backed by Palistar Capital, an alternative asset manager focused on private equity and structured investments in mission-critical communications infrastructure assets. Symphony and Palistar have already deployed more than half a billion dollars on telecom lease buyouts – giving real estate owners maximum value for their telecom assets.
A Partner to Real Estate and The Carriers
Symphony is laser-focused on helping landlords access capital quickly via telecom lease buyouts. We don’t seek to own the towers or other telecom assets or compete with the tower companies or telecom carriers. Instead, we’re focused on building longstanding partnerships with all parties involved in deploying and improving the telecom infrastructure that powers our ever-growing demand for data and bandwidth.
We’ve seen it all and underwritten acquisitions across all sectors of commercial real estate: apartment, office, retail, industrial, and land.
If you’re looking to access capital more quickly and unlock the full value of your telecom assets, you should consider a telecom lease buyout and partnering with the leader in this burgeoning space.
Cell Site Buyout quote Today!
Our team of experts is ready to learn more about your cell site and has the knowledge and expertise to provide you the best value for your asset. Click the button below to speak with one of our Acquisition Advisors.
DISCLAIMER
Symphony Wireless does not provide tax, accounting of estate planning advice. Interested parties are encouraged to consult your own legal and tax advisors.
© 2024 Symphony Wireless