RealTel - Cell Tower / Cell Site Valuation and Appraisal

Cell Tower / Cell Site Valuation and Appraisal

What is your site worth?

In real estate, there are three methodologies for appraising property value:

Replacement Cost, Sales Comparison, and Income Capitalization

The Replacement Approach is roughly the sum of the value of the land and the cost to reconstruct any improvements
on the property. This methodology cannot be used effectively for an owner looking to sell their cell site, tower, or lease.

The Sales Comparison Approach could be used; however, since it is market derived and market information is not
always available, finding market comparables could prove to be problematic. Also, if you look at the demand side, the
number of prospective buyers is limited. It is not like selling a house where a pool of buyers is aware that the property is
for sale and the seller has an understanding of the market value.

So we are left with the Income Capitalization Approach. There are three different methods for the income approach -
direct capitalization (cap rate), discounted cash flow (net present value), and finally the gross rent multiplier (Multiple or
GRM). The discounted cash flow method, since it is not market derived, is the most reliable method for determining the
value of a cell site.

However, income capitalization is only one factor in determining value. Other valuation factors include: your lease(s),
tenants, competing rooftops and towers, population density, topography, and terms of a sale.

Investor value - the value of a site to a particular investor should also be taken into consideration when selling a site.

Offers from buyout companies are not all the same. Some companies offer "non-recourse loans" while other companies
include the sale of an easement. But no matter what your objectives are - RealTel provides owners with all the options so
an informed decision can be made.