The Portfolio:
- 5 telecommunications towers on 5 separate parcels
- 15 telecommunication leases for antenna space on the towers and ground equipment at the bases of the towers
The Challenge: The Seller wanted to retire and divest himself of all responsibility regarding the towers. He owned 2 of the tower parcels in fee, had exclusive easements for the towers over 2 parcels and needed to obtain an easement over the fifth parcel from the owner. The Seller wished to use that easement as the basis for a Section 1031 reverse like-kind exchange. It was critical to the Seller to close by the end of the year, which was less than 90 days away.
The Solution: We immediately prepared a teaser sheet and commenced to solicit bidders. Coordinating with the Seller, we created an information repository and FAQ’s regarding the portfolio for potential bidders, which allowed us to shorten the timing of the solicitation. Once the winning bid was determined, we assisted the Buyer’s legal and financial teams to expedite their due diligence process. We also worked with both parties’ legal counsel to draft and finalize the transaction documents. We coordinated with the escrow and title officers and the 1031 exchange company on the closing of the Seller’s acquisition of the easement on the one parcel and then, a few days later, on the closing of the portfolio transaction.
The Result: The Seller sold fee title to 2 parcels, exclusive easements over 3 parcels, the 5 towers and the lessor’s interest in 15 telecommunication leases for a total of $31,600,000.00. He was able to use the easement he acquired for a reverse 1031 exchange. Escrow closed on December 22nd.