Cellular site retention

by Pete

We own a building with a Cingular AT&T cell site in a downtown area. We received a letter from Md7 representing AT&T, and their letter says that AT&T is reviewing their cell site portfolio and is offering me, one of their "selected landlords" the "opportunity" to minimize the business risks associated with "industry uncertainties" and to increase the value of our cell site lease. Should I feel honored about this that they selected me to lower my rent? Anyway, then they offer us the options of a getting reduced rent and reduction in the rent escalation percentage, and then they also offered us a CASH LUMP SUM BUYOUT. Seriously!?? How does buying us out of our lease protect us from industry uncertainties? If the future of wireless is so uncertain, then why would they throw hundreds of thousands of dollars at me? Maybe I am asking a bunch of rhetorical questions, but I don't like fear tactics they slip into their proposal, mentioning that they can exercise their right to terminate the lease. The problem is that since the antennas were installed on our roof there have been other high rise buildings constructed around us where they could move to that are not too far from us and are about the same or similar height.

Has anybody else out there had a similar experience and what did you do?

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May 24, 2014
Cell site location and lease retention
by: Tower Genius

Pete please call us.

Tower Genius

Apr 18, 2014
This is the same mistake I made with ATT.
by: Anonymous

My site was originally built by LA Cellular in 1987. Changed hands a few times.

Around 11 years ago a Company called WCP or WPC, (still around) used the exact same scare tactic they are using with you. I had a Cingular/Att lease with a 6% annual escalator. My site is in one of the busiest intersection of freeways in the world. It's a mega site. The EXACT same offer was made to me. "They might de-commission your site if you don't discount the rent and escalator" "Consolidatios!!!"......, Then, "Hey, by the way, we'll offer you $X,XXX,XXX.XX
for it. Why would you offer on a risk like that?
"since we own so many sites, it will not make a big dent in our holdings." Really??
Not true, they are a middle man. They sell your site to either Crown Castle or American Tower for a massive mark up.

Well, I fell for it. Discount only, no sales.
I collect $2,200 per month, should be $3,900. But I discounted. Now, imagine the buyout offers with $3,900 per month today. Fortunately Sprint came on board. It makes up for some of the loss.

To date, they are still there, I will not collect around $120,000 in rent from ATT since I made the mistake of discounting the rent, but more importantly, the escalator was discounted to 3%, which is what the buyout people would pay a major premium for. Yield.

Anyway, Crown Castle has "taken over" many(mine) ATT sites, if you want to do anything, I would contact these guys At Tower Genius and deal direct with Crown or American. They have made me the highest offers.

Good luck and don't fall for it.

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