Unison Site Management has contacted us with a buyout offer for the rights to our cell tower lease rental income stream on our building. We were offered a lump sum cash payment of around $270,000 but this is much less than what we would get over the lifetime of our T-Mobile lease. My only fear is that we won't have cellular technology around forever or that T-Mobile purchased by a competitor, but then my thoughts are why are these investors looking to purchase it?
Their consultant seemed very informed on industry trends and that everything is pointing towards consolidation in the wireless industry and I don't want to get stuck with a cell site that gets taken down because there is a coverage overlap or they don't need our building anymore. With that being said, our property is centrally located and the building has a great view from the roof and I agreed with Unison's consultant that this would be a very good location for other carriers to rent space at a future date.
In your experience is $270,000 a fair price for a cell site lease paying $2,400 per month with T-Mobile?
Unsion Site Management offers 20% to 40% less than you can get from other companies in the industry. If their offer was $270,000.00, you can probably get $340,000.00 or more from someone else.
Based on the structure of the buyout, the monies you receive could possibly taxed at a lower tax rate and therefore makes the buyout more valuable. You should consult with your tax advisor.
Mar 13, 2012 Rating
Your buyout offer from Unison is o.k. by: Tower Genius
Skip it's not a bad offer based on what the market is paying nowadays but we need a few more details. Also we can quickly read through your lease and review the site to let you know if you need to potentially change any of the terms in the event you decide not to sell to Unison Site Management and see if you can renegotiate with T-Mobile at a future date.
Did they say this is a perpetual offer? Was it their first offer or did they come back with this number? Give us a call to discuss your plans or future strategies with the site.
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