All Forum Posts by: Nick Foster

Hi Darren,

The lease may be for 99 years but if you review the termination language in the lease it likely says the tenant may terminate within 30 to 60 days. So the security of a long term tenant is not likely there which makes selling the cell tower lease attractive. 

I would need to take a look at the lease to provide you an exact value however as others have mentioned above you are looking in the $200K+ range. There are many ways to structure the transaction.

Let me know if you have any further questions.

Best regards,

Nick Foster

Hi Paul,

The way the industry works is they have to contact you, you can't seek them out. Unlike Field Of Dreams, if you build it, it does not necessarily mean they will come. I know this is not the answer you want to hear but it is best to focus time and energy elsewhere. I speak from experience, I developed and leased over 300 cell towers for AT&T.

Best regards,

Nick Foster

Hi Dave,

$1,200 a month is too low of a rent for a cell tower in Phoenix. I have negotiated many deals in Phoenix and across the US on behalf of property owners. Typically the way it works is an agent for Verizon will make an initial offer (in this case $800 a month, what's the escaltor 10% term?, asking 25 years?) and they will negotiate upwards depending on how savvy the property owner is. While economics are important so is the fine print. Verizon has a 36 provision lease agreement and you need to understand your rights, your land, and what it is worth.

In regards to Kevin Costello being contacted to extend a lease prior to lease expiration, this is standard practice. Tower companies want their leases to be secured for the longest term possible and what most property owners don't know is unlike most real estate leases, the landlord has little to no termination rights.

Despite all this, having a cell tower on your property is a good opportunity to secure a credit worthy tenant paying you reoccurring monthly revenue. 

Best regards,

Nick Foster

President