ROFR and Cell Tower Transaction Implications
A ROFR only matters to property owners if and when they decide to transfer their cell tower lease assets. Unfortunately, poorly negotiated leases allow this term to be too broad and do result in adverse implications to landowners in the future. Terabonne negotiators do grant ROFR rights to tower developers in some instances, but at some returned benefit to our property owner clients. We very narrowly define this right so that only in very specific situations can a wireless carrier or tower company exercise such rights during a property transfer involving our clients’ properties. For example, transfers of property title, even if it involves the cell tower lease, to family members, during estate planning, third-party fee simple purchases, etc. are all excluded from any ROFR rights granted to wireless tenants in our leases.
Having your wireless tenant (tower owner) review your property offers will delay the transaction you are considering. The length of delay depends on how clear and succinct the language was negotiated and written. If there are disputes about the language or interpretations, the delay is even longer. Suppose in the future you sell or quit claim your property to your children, does this qualify as a “sale” contemplated under the ROFR? If so, this transaction has to be reviewed by the wireless tenant, and they get to decide if they want to buy the property at the same terms offered to your child instead. If this is not your intention, the time to fix it is now before the lease is signed. Understanding our clients’ plans for their properties and having a long-term relationship with our clients motivate us to treat every lease negotiation as if it were our own property.
Terabonne’s Full Service Representation
Terabonne represents private property owners, farmers, commercial property owners, corporations, timberland owners, churches, universities… When we represent clients, we represent all aspects of wireless leasing and management for our clients. If there’s a dispute as to taxes, surveys, hazardous spills, back rents, road maintenance, encroachments, engineering designs, or rooftop structural loading; our staff is in the middle of it all. This includes right of first refusals and how to negotiate around such requirements. Many consultants who worked primarily in the cell tower buyout area tend to overemphasize ROFRs because of its impact on their business. When selecting a cell tower consulting firm, their depth and breadth of experience in the wireless industry is key criteria since one never knows the kinds of issues a cell tower design will encounter over the years.
Let’s discuss your cell tower opportunity. We will share with you what we know about your cell tower ground lease. Never a fee until we agree to work together and we deliver all-inclusive results to your satisfaction. Unheard of assurance and confidence. Please email, call or send us a message anytime.