AP Wireless Infrastructure Partners Lease Buyouts
Many of our clients are being contacted by AP Wireless Infrastructure Partners, LLC (“AP Wireless”), one of a growing number of active lease buyout companies, seeking to purchase cell site leases from property owners. AP Wireless often sends landowners a letter containing a monetary purchase offer (lump sum) for their cell site lease which contains a range of figures. Not long after receiving the letter, you will likely receive a phone call from an AP Wireless representative desiring to learn more about the specifics of your existing leases or requesting for an electronic copy of your cell site leases and any amendments.
When formulating a lease buyout offer, AP Wireless Infrastructure Partners will take into consideration: (i) the amount of monthly or annual rent, (ii) the rent escalation terms, (iii) the remaining term of the lease, and (iv) the carrier lease(s) being purchased. Based upon these factors, AP Wireless will then present a lump sum offer for your cell site lease(s). Remember to consider transfer taxes or other fees that may arise from the transaction when evaluating AP Wireless' offer. If you elect to move forward with an AP Wireless buyout offer, you will be asked to enter into an option agreement for between 60 and 90 days, during which time AP Wireless will perform its due diligence and determine if it will ultimately purchase your cell site lease(s). Before signing the option agreement, we recommend that you seek the advice of counsel with specialized industry knowledge.
If AP Wireless Infrastructure Partners exercises its option to purchase your cell site lease(s), you will likely be presented with a Rooftop Easement and Assignment Agreement or a Tower Easement and Assignment Agreement (depending on whether your cell site is located on a building or monopole/tower/steel structure). This is AP Wireless' contract used to acquire the right to receive the rental revenue stream from your cell site lease(s) and to have continuing rights after the cell site lease(s) expire to potentially lease to other carriers. As with most legally binding contracts, the terms and conditions of the AP Wireless agreement should be carefully reviewed by an expert in the industry. There are certain terms to which a property owner might not want to agree as part of the easement agreement with AP Wireless, especially if you agree to a term of 30-99 years.
If you have a mortgage or deed of trust recorded on the property, AP Wireless will probably also require a nondisturbance and attornment agreement to be signed by you and your lender. Such an instrument may require you and/or AP Wireless to speak with a representative of your lender about the lease buyout arrangement as some banks are unfamiliar with the nature of the transaction. You may want to check with your lender early on in the AP Wireless lease buyout process to see if there are any foreseen issues so as to avoid any last minute hindrances to closing.
Lease buyout offers, such as those from AP Wireless, present an interesting opportunity for many property owners who desire to put the money to work in other ways. Depending on your financial situation, AP Wireless' buyout offer and the carrier leases being purchased, it could be good timing for you to sell. If you have questions about an AP Wireless offer, or if you have been contacted by an AP Wireless representative, please do not hesitate to contact us for assistance. We can provide comparable lease purchase data from other AP Wireless agreements and discuss how your offer compares with what we are seeing in the lease buyout marketplace. Please contact us for more information.
Please note that “AP Wireless” is a registered trademark owned by AP Wireless Infrastructure Partners, LLC. Cell Tower Attorney is not affiliated with AP Wireless in any way and the above article is offered strictly as an opinion. If you wish to learn more about AP Wireless, please go to www.apwip.com.