Have an existing or soon to be installed cell tower or rooftop cell site? Want the lease income, but don't want to take all the risk of possible lease termination? How about a joint venture? May be the best of all worlds. A cell site joint venture may look something like this and have some benefits.
A cellular acquisition firm that specializes in cell site management would offer to purchase one half of your equity. They would negotiate the terms of the JV, such as the cell site easement size, rights of way and future rent sharing. For this they would receive some of the rent, but be taking the risk that if the cell site lease is canceled that they would lose their entire investment.
The benefits are numerous and may be what you've been looking for. Having a professional management team, that has as much to gain or lose as you do is a good thing.
Most cell site lease payments are what I refer to as 'free money', that is to say, most site owners were approached to have a cell site located on their property, said yes and now receive monthly or yearly income. 'Free money' or 'found money' if you prefer. Consider yourself very lucky. Remember, sometime it is smart to take some of your chips off the table, guaranteeing yourself a sizable profit.
For some of you, that is not the case. You may have done your homework, fought with the zoning department, haggled with contractors, borrowed a lot of dough and put up an expensive cell tower and were successful at enticing a cellular carrier or two to locate on your structure. Congratulations! That was not free Money. Your investment has paid off BIG TIME. Want to take a few ‘chips’ off the table’ and maybe build another tower or invest in a different venture?
One of the long term advantages of a management team as a partner is that they know the ins, outs and what is happening virtually all the time. Who is talking about merging with who or what new technology is on the horizon and how it would affect your cell site.
Can my cell tower lease be terminated?
Virtually every cell tower lease has a clause that allows the carrier to terminate (cancel) the lease.
What are lease tower co-location rents?
Co-location rents are a big deal.
Are lease rent reductions for real?
Intimidation is the keyword when it comes to rent reductions.
Is a right of first refusal in a cell tower lease a good thing?
A right of first refusal (ROFR) is an advantage for the tenant, not the tower owner.
What do I need to know when negotiating a tower lease? Lease negotiations are sometimes about not what you know, but about what you don't know.
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