Answer
Jun 08, 2016 - 04:25 PM
While the company is new, the owners are not new to the industry. See https://www.corporationwiki.com/p/2fp...
Many small tower companies like this build towers, then flip them to the larger tower companies, and then start all over again with a new company building towers again. The people are the same, just new LLCs with which to do it.
We have assisted clients on the other side of the table from Tim O'Shaughnessy's other companies. They have gone forward with leases without issue. Just expect that eventually, the tower will be transfered to another larger tower company. Make sure you have clear language in the lease about how the lease can be assigned and whether you have any say over the assignment.
Many small tower companies like this build towers, then flip them to the larger tower companies, and then start all over again with a new company building towers again. The people are the same, just new LLCs with which to do it.
We have assisted clients on the other side of the table from Tim O'Shaughnessy's other companies. They have gone forward with leases without issue. Just expect that eventually, the tower will be transfered to another larger tower company. Make sure you have clear language in the lease about how the lease can be assigned and whether you have any say over the assignment.
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North American Towers is another one of the small to midsize tower companies that has popped up in the last few years. In all likelihood, they won't own the tower in a few years if they build it. So the real question you should be asking is what restrictions there are on assignment language in their lease. How can they assign the lease and to whom?
As a general rule, smaller tower companies are more likely to enter into the lease and not build the tower as they are more likely to be building the tower hoping they can get an anchor tenant interested. In the case of a tower company, it is important to get a signing bonus to cover the cost of entering the lease so that if they don't go forward, you aren't stuck with legal bills.
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