Lease Prepayments
Our Services
Shifting the Balance of Power
Tower companies such as SBA, Crown Castle, and American Tower, along with various private equity firms, are developing a nationwide portfolio of cell sites by purchasing wireless lease rents from building owners. Although these “lease prepayments” (or buyouts) can be very lucrative – most owners simply do not possess the necessary knowledge of the industry to determine their site’s fair market value and negotiate an optimum deal. This would be compared to selling a traditional piece of real estate for sale by owner, on a property type and location you were not familiar with or purchasing a used car without the assistance of trained mechanic.
Note: Having a Right of First Refusal added to your lease may greatly reduce its future value and/or restrict your options when it comes to a lease prepayment.
Wireless data and information, compared to that found in traditional real estate, is not readily available to owners and this fact is not lost on the opposing transactional parties. These entities always seek to take financial advantage of this “knowledge gap” to drive deals in their favor through lower overall pricing and better business terms. Consequently, owners often unintentionally leave money on the table and agree to terms that are less than favorable.
Key Points about Prepayments:
Every site is different
Due to the type of carriers, rents and escalators, lease clauses, market conditions, location, etc. one cannot simply compare what a nearby site owner received and expect the same. “Comps” do not work the same as they do in standard real estate transactions due to many other technological and geographic characteristics that are unique to wireless sites. There is no such thing as a “comparable” sale in wireless.
This is a commission driven industry
For example, a buyer or investor (wireless carrier or third-party) that offers $300,000 will not tell an owner that they could pay $350,000 or more. Their interests are diametrically opposed to yours, i.e., they want you to sell for as little as possible and will not reveal their “financial ceiling”.
Every investor has limits on what they can pay for a given site
Every investor operates in a unique financial “box” defined by their company and their investment criteria. For instance, one investor may be capped by their investment criteria at $300,000 while another can pay $350,000 or more. We will help you maximize your value by working with industry leaders to obtain the best price.
This financial “box” changes constantly as their portfolio needs change
An investor may pay one price one month for your site, but then pay more or less several months later as they need more of your “type” of site for their portfolio or as industry changes (i.e., mergers, etc.) occur. Our industry involvement keeps us abreast and up to date on these changes so we can help determine the best players to engage and best timing for your site value to be maximized.
Think WREP for all your wireless carrier needs. We’re on your side.
Owner Advocates – focused on increasing value and enhancing revenue from your existing wireless lease agreements.