Homeowner associations (HOAs) and condo associations are often contacted with a new cell tower or cell site lease. Many associations have leases in place today and they are constantly contacted to renew or sell the lease. What should the association do?
The obvious benefit to HOAs and condo associations having a cell tower lease is the financial benefit. Instead of the association relying 100% on dues to stay afloat they now have an income producing asset. This could potentially delay due increases, or decrease dues if the HOA budget allows for it.
Often when HOAs experience large capital improvement projects they will consider selling their cell tower lease to raise the cash needed for the project. If there is enough cash left over, they can use it to reduce the dues, or invest the cash into a CD or another interest bearing account.
Our association has been contacted to sell our lease, should we sell?
Associations should consider selling their cell tower or cell site lease if they have a use for the proposed lump sum payment. We have assisted associations in selling cell tower and cell site lease agreements so associations could pay off debt, expand or upgrade building facilities, and to reduce dues. There is no right or wrong answer on if an association should sell their lease. It just depends on the associations needs for capital at the time the association is entertaining selling the agreement.
Our cell site tenants wants to expand and upgrade, what do we do?
Often cell site tenants attached to association property, typically on the roofs of high rise buildings, constantly want to expand or upgrade their facilities. These upgrade projects present time-sensitive opportunities for the association to increase rent.
Make sure to always have your tenant’s project reviewed by a cell tower lease expert such as Airwave Advisors to ensure the association is not leaving money on the table.
Our tenant wants to renew, are we getting a good deal?
Cell tower and cell site tenants are often requesting to renew their leases with little to no rent increases. The association needs to understand that with lease renewals the association is often in a highly-leveraged position where they can require more rent from their tenant. How much more will depend a number of variables, contact us so we can help you maximize your opportunity.
A previous board member and a cell tower lease expert is here to help
As a previous member of a HOA board, President and Founder of Airwave Advisors, Nick G. Foster, has first-hand experience not only as a board member, but also in advising boards to help them make the best decision in the interest of their association.
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).