I recently was approached by a company who wants to buyout my rooftop cell tower lease. After getting approached by 1 company I reached out to a couple others to see what the lease was valued at for other offers. I am always offered a lump sum, revenue share %, and an easement term (usually about 50 years). The lease: Initial term of 5 years with 5 renewals of 5 years each term.
Questions:
1) Why a 50 year easement when the lease is for 25 years? why do they want such a long term easement/lease? (some easements are for 99 years)
2) The easement should be for a portion of the roof and not the whole roof top?
3) If I sell the rooftop lease and they have an easement for 50 years would this hurt the value/resale of the property? (knowing the new owner wont get any money)
4) Are there any other terms I should consider when selling the rooftop?
Keep in mind technology changes drastically over time. Remember those large 8 to 10 ft satellite dishes that you no longer see ?
. Get as much money upfront as possible
. Who upkeeps the roof ?
. Who is responsible for structural damage (The tower bend and sway with winds)
. Yes it will affect resale value, especially if there is an easement with no future income . If the lease is renewed who is responsible for removal of tower and restoring roof to original condition
Thank you for responding @Kelly DeWinter. Would you know what would happen if the new landlord would want to scrap the building for a higher and better use. No way a large commercial asset could be held hostage by an antenna agreement?
A easement grants access to something, in this case the roof, Unless your terms include verage that allows you to terminate the lease it's is use governed by the lease. So yes it can be held "hostage", In fact that's exactly what leases are for to hold two parties to terms that both have agreed to abide with. If you agree to terms that include repayment of a portion of the lease plus penalties you be in a position to break the lease, but don't count on it. Whatever you do you are, binding future owners to the terms agreed upon.
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
7y
Hard to comment without seeing the document, but you should regulate the appearance too. Indemnification for city/state violations applied to landowner
@Scott Russell, I just joined BP and ran across your post. If you haven't already sold this lease, I work in the cellular industry and may be able to offer some insight on this topic. Feel free to reach out if you are still looking for information.
Investor · San Jose, CA · Member since 2019 · 4 posts · 0 votes
6y
@Scott Russell , selling an easement restricts the use of your building for future property owners but the financial impact depends on the owner. It can also have impact on you, so think through the implications of the easement. I have experience dealing with tower companies and leasing companies and can share them if you reach out.
1) You want to get a specific easement that only encompasses the existing equipment
2) Longest term easement (perpetual) for the most amount of money.
3) Future landlord will receive a % of any future revenue these companies bring
4) Make sure your agreement has some type of relocation language. The lease that you have with the carrier should already stipulate what happens if the building is demolished or the roof needs to be redone.
I recently was approached by a company who wants to buyout my rooftop cell tower lease. After getting approached by 1 company I reached out to a couple others to see what the lease was valued at for other offers. I am always offered a lump sum, revenue share %, and an easement term (usually about 50 years). The lease: Initial term of 5 years with 5 renewals of 5 years each term.
Questions:
1) Why a 50 year easement when the lease is for 25 years? why do they want such a long term easement/lease? (some easements are for 99 years)
2) The easement should be for a portion of the roof and not the whole roof top?
3) If I sell the rooftop lease and they have an easement for 50 years would this hurt the value/resale of the property? (knowing the new owner wont get any money)
4) Are there any other terms I should consider when selling the rooftop?