SITUATION

A successful commercial real estate development company was seeking to sell the cellular ground lease for a tower located on property it planned to develop into multi-family housing. The developer intended to use the proceeds generated from the sale of the cellular ground lease to pay down debt and finance the housing development. Managing the cell tower had become a distraction from the firm’s primary business and was consuming valuable management time and generating expenses.

Maximizing the cash received from the tower sale along with the certainty of funding were critical to the success of the development plan structure. After investigating and reviewing possible acquisition partners, the seller became suspicious that several potential buyers were tower brokers who might lock up their cellular ground lease and not be able to deliver on their proposed terms. Given Crescendo’s reputation, expertise and funding, the developer concluded that partnering with Crescendo would ensure that they would receive maximum value for their leases. The fact that the Crescendo’s team were experts in the telecom field and were investing on behalf of their own account were keys in sealing the deal with Crescendo.

OUR LEASE OPTIMIZATION PROCESS AND SOLUTION

Crescendo professionals began working with the developer to determine what would be the optimal deal structure to allow them to maximize the long-term value of their assets. It was imperative that the developer and Crescendo have an open and honest working relationship, since the future site development would require coordination and flexibility.  Crescendo crafted a purchase structure that met the owner’s near and long-term plans by providing a multi-million dollar payout that satisfied their lender’s debt covenants and minimized any tax liability.

THE RESULTS

By capitalizing their cellular ground leases with Crescendo, the site owner was able to obtain significantly more capital to use for the development of the multi-family housing project and for other new ventures. In addition, this transaction freed them from any site management responsibilities.

If you are interested in this learning more about maximizing the value of your cellular ground leases contact one of Crescendo’s cell tower lease experts at 203.972.3200 or  email us.

“When we choose Crescendo, maximum value and certainty of funding were key points to us as a real estate development firm.  We also saw the value of their telecommunication expertise for site management.  We will maintain an ongoing interest in the development of the surrounding land, so we needed to know that we have a knowledgeable, professional and honest partner on our site.  We are satisfied with Crescendo and would recommend them to other property owners.  We look forward to working with Crescendo on future transactions.” New England Real Estate Investor