Frequently Asked Questions
- 1What are my tower assets worth?
The value of a tower asset is typically based on a multiple of annual net cash flow taking into account the interrelationship among the maturity, growth potential, and quality of the facility. Annual Net Cash Flow being defined as Gross Income minus Expenses. Expenses typically include insurance, maintenance, real taxes, land lease and utilities.
The multiple paid for the tower assets depends upon the following factors:
- Zoning – Is the tower in a protective zoning environment or one that prohibits additional towers from being built?
- Capacity – Is the tower structurally capable of supporting additional tenants and is the ground space area sufficient for
- Competitive Structures – Are there other structures (towers/buildings) of sufficient height nearby that a potential tenant could use?
- Current Tenant Base – Which tenants are currently using the tower and are they creditworthy?
- Urban/Suburban/Rural – Are the towers located in high growth areas?
- 2How does the auction process work?
Typically SteelTree will compile a descriptive Confidential Offering Memorandum which is distributed to all known buyers. Buyers are instructed as to how to submit bids. Once final offers are received and qualified you can choose whether or not a sale is advantageous.
- 3Why should I consider SteelTree?
We bring over 25 years of real estate expertise to bear on every transaction. We have worked on the buy side as well as the sell side and therefore have a unique understanding and perspective on how a transaction is completed. We will protect your interests throughout the process and get you the value and terms you deserve. We want what is best for you.
- 4Why is it a good time to consider selling?
Even in the midst of a recessionary cycle the ever-growing pool of real estate buyers will seek out safe and stable income-producing investments and pay premiums for quality assets. There is no bad time to explore the value of any income producing asset or develop new assets. Many of our clients have made the choice to sell existing assets and go on to recreate an entirely new portfolio of growth assets.
- 5Are all tower buyers the same?
No. There are dramatic differences among buyers. Their personalities, tactics and changing motivations must be
considered when choosing which offer to proceed with. Our insight will be useful when choosing the buyer that is
best for you.
- 6Can I sell recently developed assets without losing future value?
There is presently a very hot market for recently developed growth assets. Depending on, among other things, location, projected lease-up, and pending business, buyers will go to great lengths to acquire this type of asset including purchase price adjustments as tenants are added post-closing.
- 7What do your services cost?
Generally, our fees account for a very small portion of the overall value of the transaction and are always negotiable. In the event that a transaction is not completed, you owe us nothing.