Many property owners do not realize the implications that a cell tower lease can have on a property. I mean, sure, there can be significant upside to having a cell tower on your property, but I have observed the contrary as well.
You see, a cell tower is typically a significant fixture on most properties, often making a property’s appearance less appealing to the eye, it can consume a lot of area, while there can also be a number of landlord responsibilities to consider. Purchasing or selling a property subject to a cell tower lease requires seller disclosures about the lease to the buyer such that the buyer will have an understanding of lease terms — even if (actually, especially if) the lease cashflows have already been sold to either the lease tenant or to another third party.
Remember, just because lease cashflows have been sold (or prepaid) does not mean the landlord is relieved of any landlord responsibilities contained in the cell tower lease nor does it mean the tower disappears (obviously). Which is precisely why carriers and tower companies do not like it when a landlord sells lease cashflows to a third party. Experience dictates that a landlord is most incentivized to cooperate with the tower tenant when the landlord is being regularly compensated for that cooperation.
Purchasing and selling properties subject to a cell tower lease — with or without the lease cashflows — can be very technical and add a layer of complexity to what might otherwise be a relatively simple real estate transaction. If you have a situation similar to any of those outlined above, please give SteepSteel a call at 855-783-3566 — we can help.