Who Is Eco-Site?
After reviewing filings registered with the secretary of state of North Carolina, we believe Eco-Site was founded around the end of 2012. They have the following active entities (as of 1/20/2020) registered with the North Carolina Secretary of State
- Eco-Site, LLC
- Eco-Site II, LLC
- Eco-Site Holdings, Inc.
- Eco-Site II Holdings, Inc.
- Eco-Site Tower, LLC
Eco-Site performs built-to-suit construction of cell towers and co-location on their existing cell towers. Their headquarters is located at 1010 Sync Street, Suite 575, Morrisville, NC 27560.
What Should You Look For In The Lease?
With the Eco-Site leases we have reviewed on behalf of our clients, property owners, their lease agreement appears to be original. This is opposed to some of their competitors who often copy an AT&T or Verizon lease template. Switching out the name of the wireless carrier on the lease, for their own company name.
We spent many hours making changes to their lease agreements we have received and here are some items that we did not agree with:
- What is known as an option is calling a “Testing Period”. The testing period listed in the lease will tie up the property for a specified period of time while the Tenant performs their due-diligence. It is important that the Landlord receive a fair amount with the Testing Period Consideration.
- No proposed rent escalator. In the version of the lease we reviewed there was no proposed rent escalator paid to the Landlord. Remember that tower companies sign agreements with their tenants with rent escalators in place. Why shouldn’t the property owner receive an increase in rent with the passage of time?
- In our opinion, insufficient insurance language. The insurance provision proposed a public liability insurance coverage in the amount of $1,000,000.00. The provision lacked requirements for workers compensation, automobile insurance, etc.
- Right of First Refusal. This provision negatively impact property owners who may want to sell their cell tower leases sometime in the future. This provision should never be agreed to.
- Extremely restrictive Assignment language. We recently reviewed Section 9 of an Eco-Site Lease (the Assignment provision). The last sentence of the provision read “…assignment of this Lease by Landlord must be approved by Tenant, in Tenant’s sole discretion”. This language gives the Tenant the ability to say no to any proposed transaction in which the landlord would like to sell their cell tower lease. Your tenant can freely assign their rights in the lease. Why would a landlord agree to handcuff themselves like this?
What Should You Do If You Have Been Contacted?
They are professionals in the cell tower leasing industry who understand the industry and cell tower leases. Make sure you have experts on your side and contact Airwave Advisors today!
Call Us Today
***We are not affiliated in any way with Eco-Site. If you reached this post by error and are trying to reach Eco Site please visit www.eco-site.com. ***
About Nick G. Foster
Since founding Airwave Advisors® in 2014, Mr. Foster has added value to over 400 clients ranging from the State of Nevada, City of Beverly Hills, to Habitat For Humanity. Mr. Foster focuses on cell tower lease renewals, buyouts, new lease negotiation, and cell site lease management. Prior to starting Airwave Advisors® Mr. Foster founded and led the Cell Site Services Group within nationwide commercial real estate services leader Cassidy Turley (now known as Cushman & Wakefield).