Have a lease that has been paying $465 per month on a land tower for 16 years. They are seeking a buyout with a 99 year lease for initial offer of $80,000. Seems awfully low to me. It is currently in an estate situation and I am the administer.
Any way you slice it, $465 dollars per month is a low rent, and their offer is probably not a good offer that reflects the true value of this asset.
SBA's cell tower lease buyout offer is based on your current low rent. It's an average offer which is based on the current rent, however in actuality the tower lease may be worth much more.
Property owners often see offers to purchase an easement , perpetually or for 99 years as in this instance, in exchange for a payment of 14X or 15X their annual cell tower rent.
There are many factors that play into the value.
How many subtenants does SBA currently have on their tower? And how much revenue can we estimate that they are making?
How much time is left on your lease? Can you renegotiate it soon for a better rent payment or revenue sharing?
What other tower relocation option does SBA have?
Does the SBA lease contain a ROFR Right of First Refusal?
Having seen hundreds of SBA cell tower leases over the years, I can't tell if it's a good offer or not until I review the tower location to evaluate what we are dealing with, and review your lease.
If you do not need to sell the lease, you may consider collecting rent until there is an opportunity to bring the lease current to fair market value if it is undervalued, which is likely the situation here.
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