Ags --

I have an existing Verizon cell tower lease that I need to sell. I am getting offers at 20X annual rent which translates to a 5% cap rate. Pretty incredible in my opinion.

Does anyone have any experience in this arena?

No personal experience. My ranch neighbor had a cell tower on his property and a long term lease. The land is on an FM road in the Houston suburbs area. The tower was on the back of his property and they built a nice rock road off the fm road and down the edge of his property.
He sold the lease later as you're thinking of doing. Years later, he was offered big money for his 100 acres, but had a problem closing due to the wording of the lease and the sale. The tower company had sold several times and someone had a right of first refusal if the land sold. Was a huge cluster
He eventually sold the land for 4 million but it took a long time and lots of legal bills.

Try the Outdoors Board. Cell towers have been discussed there.

About a year ago I had a cell tower approach me. They needed a 75' x 75' area for the tower and 30' wide access/ utility easement.

They offered $60,000 for the easement and $700 a month for rent, with 10 (5yr) automatic renewals. Rent would increase by 6% every renewal term.

This was just outside the City of Fulshear.

texas2000 said:

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Ags --

I have an existing Verizon cell tower lease that I need to sell. I am getting offers at 20X annual rent which translates to a 5% cap rate. Pretty incredible in my opinion.

Does anyone have any experience in this arena?

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It sounds too good to be true. It smells to me.

OP Message

TarponChaser

Question related to this thread: I've been contacted about the possibility of putting a tower on our acreage in the Fort Worth area. A concern of mine is how the presence of a tower affects the marketability of the area that would surround the tower site. We are on 160 acres that is surrounded by residential developments, and I would expect our property will also eventually be residential (after I'm dead and gone!). A couple questions:

1. Does anyone have a feel for what impact the presence of a tower would be on my heirs ability to sell the property and the value of the acreage?
2. Would the cash flow from the tower site result in a net increase in the market value?

Thanks!

One more thing to consider: if you refuse the tower will they simply make an offer to your neighbor (presuming another site nearby is suitable)?

texas2000 said:

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Ags --

I have an existing Verizon cell tower lease that I need to sell. I am getting offers at 20X annual rent which translates to a 5% cap rate. Pretty incredible in my opinion.

Does anyone have any experience in this arena?

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It's been about 10 years for me, but I remember my agent saying there was an industry standard for towers. I want to say it's was 6.5 cap, but don't quote me. Google might help ya. Good luck

techno-ag said:

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One more thing to consider: if you refuse the tower will they simply make an offer to your neighbor (presuming another site nearby is suitable)?

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Yes


If they are taking you they are also talking to those around you.

Had a friend who was offered 500 a month for a 30 year lease. I think he countered with 1000.

Neighbor took the lower offer and they built the cell tower right next to my friends house.