For more information or to discuss your options, contact Diamond’s Chief Financial Officer, John Thomas
Phone: (973) 544-6830
How can I reduce risk by selling my wireless communications tower lease or rooftop antennae lease to Diamond Communications?
In the telecommunications industry, mergers between carriers are common. Often these mergers result in surplus wireless equipment sites across the country, causing site consolidation and termination of underlying leases. Many ground leases under wireless communications towers and rooftop wireless antennae leases can be terminated with relatively short notice (as quickly as 30 to 60 days) as a result of a merger or a change in network configuration. A termination of the lease can result in a loss of payments to you, the lease owner. In order to avoid the possibility of losing your rent as a result of a lease termination, you could sell your lease interest to us in exchange for one of our many flexible payout options.
Why is it beneficial for Diamond to buy my ground lease under a wireless communications tower or rooftop antennae lease? What’s in it for Diamond?
Our company is in the business of creating a diversified portfolio of leases. Diversification from thousands of leases across the U.S. reduces risk and allows us to manage the risk of wireless carrier consolidation more effectively than individual lease owners.
How are you able to pay me? Where does the money come from?
Diamond is funded by a combination of private investors and institutional investors with a significant amount of capital earmarked to purchase lease interests from individuals, companies, and other entities.
How is the price determined for my specific lease?
We will determine the price for your lease interest based on the relevant information discussed in phone conversations and the lease documents. Some of the factors considered are the amount of the lease payments, the level and frequency of any rent escalations, and the number and identity of the wireless tenants located on the tower or rooftop.
Can I make more money if I hold onto my lease?
This depends on a variety of factors such as the company that owns the tower, the wireless carriers who are tenants on the tower, the potential for carrier consolidation/lease termination, and the location of the site, as well as what you choose to do with the payment you receive from Diamond. The proceeds we would pay to you for the rights to your lease at closing will provide maximum flexibility.
Are there any tax advantages if I sell my lease interest?
It depends on your personal situation and the type of payment option you elect. In some cases, lease owners have reduced taxes because the rental income from a lease is usually taxed at ordinary income tax rates, which are often higher than capital gains tax rates used under a sale of the lease interest. Also, when a lump-sum payment is taxed as a capital gain, it is possible to defer the tax by reinvesting the proceeds in another qualified investment. This is called a 1031 Exchange. If you choose to pursue a 1031 Exchange, we can accommodate this transaction structure. Diamond is not a tax adviser but will work with you and your financial and tax adviser to develop the payment plan that best suits your needs.
Can Diamond effectively market the wireless communication tower site on my property or rooftop antennae on top of my building to other wireless carriers?
Yes we can. Diamond can leverage our strong relationships with major wireless carriers to help bring more carriers to your site, thereby increasing cash flow to the lease owner. We are in constant discussions with the major wireless carriers regarding the configuration of their networks, giving us the opportunity to market individual sites such as your site. We currently market more than 100,000 locations in the U.S.
I have been threatened with a renegotiation and/or termination of my ground lease under a wireless communications tower or rooftop antennae lease from the owner. What should I do?
Call us at (877) 928-3558 and we can assist you in evaluating your options.
Will I still own the property if I sell my lease interest? Can I sell the property at a later date?
Yes, you will maintain ownership of the property. We will pay you to assign the rights to receive lease payments from the wireless communications tower owner or rooftop antennae owner and allow us to manage the area around the base of the tower or on the rooftop that houses telecommunications equipment by way of an easement or similar right. In the future, you are still free to sell your property.
How quickly can I receive the payout for my wireless communications lease interest?
Lump-sum and up-front payouts will be made at closing and any other payouts will be made over time as agreed. Transactions can close as quickly as 30 days after our written proposal is accepted by the lease owner, but individual facts and circumstances could impact timing. We will be able to better address timing after our initial phone conversation. A dedicated team of professionals will guide you through the process to make it as efficient as possible.