Ags --

I have an existing Verizon cell tower lease that I need to sell. I am getting offers at 20X annual rent which translates to a 5% cap rate. Pretty incredible in my opinion.

Does anyone have any experience in this arena?

No personal experience. My ranch neighbor had a cell tower on his property and a long term lease. The land is on an FM road in the Houston suburbs area. The tower was on the back of his property and they built a nice rock road off the fm road and down the edge of his property.
He sold the lease later as you're thinking of doing. Years later, he was offered big money for his 100 acres, but had a problem closing due to the wording of the lease and the sale. The tower company had sold several times and someone had a right of first refusal if the land sold. Was a huge cluster
He eventually sold the land for 4 million but it took a long time and lots of legal bills.

Try the Outdoors Board. Cell towers have been discussed there.

About a year ago I had a cell tower approach me. They needed a 75' x 75' area for the tower and 30' wide access/ utility easement.

They offered $60,000 for the easement and $700 a month for rent, with 10 (5yr) automatic renewals. Rent would increase by 6% every renewal term.

This was just outside the City of Fulshear.

texas2000 said:

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Ags --

I have an existing Verizon cell tower lease that I need to sell. I am getting offers at 20X annual rent which translates to a 5% cap rate. Pretty incredible in my opinion.

Does anyone have any experience in this arena?

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It sounds too good to be true. It smells to me.

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TarponChaser