SBA acquires 127 towers from US Unwired
"We are pleased to enter into this relationship with US Unwired," said Steven Bernstein, Chairman and CEO of SBA. "We were attracted to the portfolio because US Unwired's towers are very similar to the towers we have been building for SBA – newly-constructed, well-located, multi-tenant capable and engineered for today's PCS, digital and data users," concluded Bernstein.
SBA paid US Unwired $313,000 per tower, and US Unwired will lease space on the towers for an initial monthly rental fee of $1,500 per site under a long- term lease agreement with 4% annual increases in subsequent years. The 127 towers currently produce approximately $360,000 in annualized rent from parties other than US Unwired. Annualized operating expenses are approximately $1.1 million, with no revenue-sharing obligations.
Subject to certain conditions, the agreement also provides SBA the option to purchase an additional 173 towers by April 2001 and another 100 towers by December 31, 2001, under similar terms, including the same cash purchase price per tower of $313,000 and initial monthly rental fee of $1,500 per month.
Adds Jeff Stoops, SBA's president: "The US Unwired towers are high-quality assets located in high-growth Sunbelt markets. The towers average over 235' in height, 90% of which are either guyed or lattice in design. With US Unwired, the towers currently average 1.2 tenants per tower. The towers are structurally capable of holding 3.5 to 4.0 or more broadband tenants, providing SBA with ample room for additional lease-up and performing installation and other tower-related services. We are very excited about the transaction and view it very similarly to our prior tower purchases from carriers – well-engineered and located, structurally capable towers in growth markets with an excellent company in US Unwired as our anchor tenant."
With contributions by Ellen Jensen, Managing Editor