A Site Development Officer in the Northeast Region
I met last week with a manufacturing company with properties across the United States. A handful of their locations generate revenue from assets such as cell tower leases, but it was not a major focus. Still, when the company decided to sell their 6 acre property that hosted a large multi-tenant cell tower, the company’s real estate director called me to give a quick look at the various offers they were considering.
It quickly became clear none of the bids had properly valued the cell tower leases. The offers only focused on the traditional industrial use of the land. We did some figuring and calculated the lump sum value of the leases was much more than the company had factored into their asking price and actually came close to full advance payment of rent in the remaining lease term. We also found opportunities to generate more income through a customized marketing plan.
The real estate director ended up looking like a hero to executive management, the board of directors, and to company investors. He was able to divide the property into two pieces, selling the land and buildings as one parcel and keeping the tower leases another. They collected more than their original overall asking price and maintained a direct ongoing financial interest in future revenue through our marketing & development efforts.