Oct 12, 2021 - 02:03 AM
Good morning. On the face of it, the buyout offer appears to be a decent one. However, the offer also assumes that the lease rate is currently at its fair market value too. As the lease is expiring in 2027, there may be an opportunity to increase the lease rate which would also impact the lease buyout offer/value. I am unable to determine whether the lease could be improved prior to expiration or not based upon the limited information provided. We can certainly review that issue for you to ascertain whether there is further upside. But it is unlikely without renegotiation that you would be able to buy the cell tower lease and then sell it for a lot more later especially if you have to wait a year for cap gains treatment AND interest rates continue to climb.
I will shoot you an email separately in case you would like to provide further details on the location- we don't mind looking at the tower and seeing whether there is a possibility of improving the offer/lease rate.