Article Highlights
- Using Lump Sums Buyouts
- Buyout Options
- Expertise & Relationships in Telecommunications
- Industry Knowledge & Value
- Accommodations for Contract Details
South Lake Tahoe Real Estate
South Tahoe is an area that’s regarded for its prime real estate. Frank Abegnale owns multiple properties in this beautiful area of California. Aggregating property in this region doesn’t come without cost, some properties he owed money against from loans he had taken to acquire them. One of these properties, he has a free standing ground tower that has been reoccurring source of income.
Although he made a sizable income monthly from the arrangement with the carriers on the tower, he wanted to have all of his properties free and clear of liens and ready to generate income for him. Setting up the cash flow to invest in other properties to add to his portfolio.
Symphony Wireless had been reaching out over the past few months with information surrounding his tower’s value and Frank figured understanding the full value of his asset might help accelerate his plans.
Jeremy, an Acquisitions Advisor & expert in telecom instruments and contracts worked with Frank to understand his value.
An Industry Expert for an Industry Opportunity
Jeremy looked at the contract in full and there was no precise language stipulating the sale of the lease, only the property itself. In most cases where there is a delineation in the lease between rights upon property sale versus easement/assignment of lease, the restrictions generally prevent any sale of the lease.
Working in concert with the Symphony legal team, Jeremy & Frank constructed a buyout offer exceeding expectations that held only to the leases on the tower and the rights to add more and build a revenue share program with Frank. This was within the boundaries of the ROFR and was acceptable by all parties. Frank then paid off his real estate loans, turned his second home in South Tahoe into a rental, and secured a third property with his children that would generate additional income. A simple cell tower lease acquisition by Jeremy for Symphony meant that Frank would spend the rest of his life in complete ease and luxury.
Talk about a win-win-win.
Where Symphony Wireless’ Expertise and Connections Entered The Picture
Frank and Jeremy found a potential blocker for maximum value:
The tower company that owned the physical tower had a “Right of First Refusal”, or ROFR built into their contract with Frank, which meant that they could refuse a sale of the property as long as they matched the existing offer.
Frank wanted to get out from under the contract with the company and have the liquid cash to pay off his loans and invest in other real estate endeavors.
Cellular Asset Lease Buyout Can Be This Lucrative
Such bank-breaking deals are happening all over the country, and property owners are finding out that these deals are some of the best investments they have ever made. Selling cell tower leases to Symphony is a smart business move for property owners looking for cash flow to invest in new opportunities.
Always consult a licensed financial advisor when conducting sale of assets, we at Symphony are open to all partner and pride ourselves on flexibility.
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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