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Selling Your Cell Tower Lease

Do you know how to respond when someone offers to purchase your cell tower lease?Property owners with a lease for a cell tower or cell antenna on their property routinely receive six-figure offers to buy the lease and future leasing rights. While attractive, those offers - typically structured as perpetual easements - pose unusual legal, financial, and technical risks that the property owner and its regular attorney typically are not familiar with. And unsolicited offers are usually too low - well below typical sales prices. This topic will guide property owners and their attorneys as they evaluate and respond to such offers. It includes covering what drives the offers, typical prices, how to evaluate financial terms to determine whether selling makes sense (and when it doesn't). You will be better able to evaluate purchase offers, identify and modify the very one-sided documents offered by purchasers, and address some of the risks involved in a sale. Such risks include making sure the property owner is not hindered in developing or using its property, ensuring that future sums promised by the purchaser in fact are paid and the contract honored (and the sale terminated if they are not), insurance and bankruptcy protections, as well as questions as to the financial solvency of the buyer. These risks increase as the easement term increases (typically from 50 years to perpetual) given that the property owner continues to own the underlying property. Government agencies face all of the preceding issues, plus special questions of municipal authority, compliance with municipal finance/procurement statutes, prohibitions on waste, and risks of accidently triggering property reverters.


Runtime: 90 minutes
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Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Cell Tower Sales Basics

  • Financial Underpinnings - Current and Renewal Rents, Revenues From Future Tenants
  • Why and How Lessors Can Raise Rents at Renewal and Amendment Time
  • Legal Structure - Easement, Lease Assignment or Purchase of Property
  • Key Differences in Sales of Leases for Antenna Sites on Buildings and Other Structures

Key Factors on Sales Prices, Terms, Business Risks and Benefits

  • Typical Sales Prices - Why Initial Offers Are Too Low
  • Financial Analysis of Selling vs. Continuing to Lease
  • Payments Over Time - Evaluating Same
  • When Cell Tower Sales Make Sense, and When They Don't
  • New Tenant Revenues - Pros and Cons
  • Purchaser's Financial Strength; Ability to Perform for 50+ Year Term
  • Avoiding Unfavorable Sales Terms That Can Hurt the Property Owner

Legal Risks

  • Lease Terms That Impair or Prevent a Sale
  • Addressing One-Sided Deal Documents
  • Evicting Purchaser for Nonpayment, Nonperformance
  • What if Purchaser's Lenders Foreclose?
  • Bankruptcy Protections
  • Insurance Provisions for a 50+ Year Deal
  • Buyer Compliance With Building, Safety Codes

State and Local Government Issues

  • Dillon's Rule, Governmental Authority for a Sale
  • Property Specific Restrictions, Reverters
  • Municipal Finance, Bond Issue Risks
  • Procurement, Waste Issues

Drafting and Counseling Issues

  • Business Pros and Cons
  • Visualizing the Deal (Ground Level Sites; Building Sites)
  • Getting Multiple Offers via a RFP Process
  • Reimbursement of Property Owner's Legal Fees and Other Transactional Fees
  • Dealing With Objections From Existing Site Tenants
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Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Webinar

This course was last revised on October 27, 2016.

Call 1-866-352-9540 for further credit information.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

Audio & Reference Manual

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

MP3 Download

  • Arizona CLE 1.5
     
  • CA MCLE 1.5
     
  • CT CLE 1.5
     
  • HI CLE 1.5
     
  • IL CLE 1.5
     
  • ME CLE 1.5
     
  • MT CLE 1.5
     
  • NJ CLE 1.8
     
  • NV CLE 1.5
     
  • VT CLE 1.5
     
  • WA CLE 1.5
     
  • WV MCLE 1.8
     
The CLE Code is ONLY a requirement when applying for CLE Credit in California (for participatory credit), Kansas, New Jersey or New York. Other states do not need to supply the CLE Code to apply for CLE credit.

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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More Program Information

Why Lorman?

Over 32 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Dr. Jonathan L. Kramer, Esq.

Dr. Jonathan L. Kramer, Esq.

Telecom Law Firm, P.C.

  • Senior partner at Telecom Law Firm, P.C. with offices in Los Angeles and San Diego
  • Attorney admitted in California and New Mexico
  • Wireless leasing and zoning experience for more than 20 years
  • Radio frequency telecom engineer for more than 35 years
  • Can be contacted at 310-312-9900, ext. 121 or [email protected]
John W. Pestle, Esq.

John W. Pestle, Esq.

Varnum LLP

  • Chair of Telecommunications Group at Varnum Law Firm
  • Graduate of Harvard, Yale and Michigan Law School
  • For 23 years has worked on cell leases for property owners
  • Has represented clients nationwide on the sale of nearly 100 cell leases
  • Can be contacted at 616-336-6725 or [email protected]
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Product ID: 397249
Published 2016, 2019
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