What Is a Cell Tower Lease Buyout?


WWW.CELLTOWERHELP.COM


ALEX F. BLASSCYK - PRESIDENT & CEO


407.476.3838



When wireless carriers identify areas where they need to build new cellular towers, they are often located on private property. If a property owner agrees to let a wireless carrier install a tower, the carrier and property owner enter into a long-term ground lease agreement.

Under the terms of the cell tower lease, the wireless carrier pays the property owner monthly rent for use of his or her land. The monthly payment for the cell tower lease is based on the type of tower installed, the location (urban, suburban, rural) and also how critical the location is to the carrier’s network.

A cell tower lease buyout occurs when a property owner agrees to sell his or her lease to a ground lease acquisition company for a lump sum of cash. While the lump sum is often a significant amount of money, it is less than the cumulative value of the monthly rent over the life of the lease.

Why do property owners seek a cell tower lease buyout? For some, it’s a matter of needing cash to cover an urgent financial need such as medical expenses, college tuition, debt reduction or a tax bill. Others liquidate their lease for investment purposes and use the cash to buy real estate, or buy/expand a business.

Some cell tower lease buyouts are eligible for a 1031 exchange, which allows for the deferral of capital gains on the sale of a property held for productive use in trade or business or for investment. They can’t be used for residences or for second homes unless the property is used only for rental to third parties. To achieve full tax deferral, property owners must reinvest all of their proceeds in a “like-kind” replacement property and have the same or greater amount of debt on the replacement property. If you are interested in learning more about a 1031 exchange click here .

If you are interested in a cell tower lease buyout, contact Main Stream Telecom II, LLC. You can click here to submit your information online. There is never a cost or obligation to receive a site valuation from Main Stream Telecom II, LLC. We are happy to answer any questions you have and freely share our knowledge of the ground lease acquisition industry to help you make the very best financial decision for you and your family.

IMPORTANT TAX NOTICE: Main Stream Telecom II, LLC. does not provide advice on any income tax, capital gains tax or other tax requirements or issues related to any transaction in which Main Stream Telecom II, LLC. is a party or participant in any fashion. Use of any information obtained from Main Stream Telecom II, LLC. or its affiliates or agents or referral by Main Stream Telecom II, LLC. or its affiliates or agents is for general information only and does not represent tax advice either express or implied. You are encouraged to seek professional tax advice for tax questions and assistance. The information above is provided as a general introduction to the 1031 exchange process. Prospective sellers and buyers of real estate should always consult their attorney and tax advisor prior to entering into a 1031 transaction. 

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About Main Stream Telecom II, LLC.

Main Stream Telecom represents private landlords, commercial real estate owners, municipalities, and anyone else who receives rent or has been approached for a lease opportunity by a carrier or tower company. We are focused on providing landlords the best opportunity to maximize the value of their Cell Tower Lease Agreement.

If you receive rent for a cell tower or rooftop antenna on your property, Main Stream Telecom is interested in speaking to you. Our goal is to provide solid advice involving any and all issues associated with cell tower leases including lease negotiation, re-negotiation, landlord tenant disputes, lease buyouts and general lease administration.

We will listen to your needs and evaluate your situation in a 100% FREE consultation. Following our fully complimentary, no-obligation consultation, one of our experienced lease consultants will help you to understand the true value of your lease or potential new lease agreement.


MST doesn’t nickel and dime you with an hourly rate.

We are not fully paid until lease execution or tower/rooftop closing.

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