Leases acquired by Barkley Tower Capital, LLC are transferred and secured by an assignment of your lease agreement with the wireless company and a grant of a permanent, perpetual easement covering the property under the asset. By utilizing an easement rather that fee simple form of ownership, minimum lot size zoning issues are eliminated and costly parcel separations requiring new tax identification numbers are not required. Additionally, you, as the property owner retain the Fee Simple Ownership -- you may sell the land at any time. The easement interest is unaffected by any ownership transfer.
If your property is mortgaged, a subordination and non-disturbance agreement (SNDA) usually needs to be obtained from the lender. The reason for this is that if, in the future, the lender forecloses on the property, the ground lease interest could be at risk. With a SNDA in place, the lender agrees to recognize the interest of Barkley Tower Capital, LLC.
The lease purchase transactions will include the assignment of the rental payments and the lease from the Property Owner to Barkley Tower Capital, LLC, leaving all of the rights and obligations under the original lease undisturbed. Closings typically occur within 60 days.
Property Owner Documentation
Below is a list of documents that the Property Owner needs to submit to Barkley Tower Capital, LLC. We understand that the Property Owner may not be in possession of all of these documents. A due diligence investigation of all the issues relating to the property will be made prior to closing. All documents required to close that are not provided by the Property Owner will be obtained during this process.
- A copy of the existing Tenant lease(s) and any amendments
- A copy of the last three month's Rental payment check stubs (or bank statement)
- Deed/Property card/Tax documents
- Survey or Accurate legal description of the land
- Tower and site drawings
- Current Title Insurance Policy
- Mortgage Notes and Additional Security Agreements
- Corporate Resolution (if being purchased from a corporation)
There are a variety of tax strategies to consider when contemplating any real estate or financial transaction. THE FOLLOWING IS NOT TAX ADVICE. We recommend that you consult with your accountant or financial planner regarding the most appropriate approach for your individual situation.
The IRS treats rent payments received from a lease as ordinary income. Your combined (federal, state and local) income tax rate for ordinary income may be 40% or higher. When an interest in a lease is sold, the money may be treated as a capital gain. The base rate for a capital gains income tax is 20%.
Furthermore, grants of perpetual easements where the property owner retains legal title may not, under certain circumstances, constitute a sale of land and the property owner may be entitled to apply the proceeds received in connection with the perpetual easement grant to reduce the basis in their property. Consequently, such a transaction may not be a taxable event.
Section 1031 Tax-Free exchanges offer outstanding tax advantages for the Property Owner. Under this approach, a Property Owner reinvests the sale proceeds directly into other real estate and the tax gain is deferred. The Property Owner may continue to exchange real estate, deferring gains into the future and create potentially larger estates than might be created absent this tax vehicle. Many investors continue to use exchanges throughout their lifetime and pass along property, rather than money, to heirs. At the exchanger's death, if the property is passed to the heirs, capital gains taxes cease to exist for that portion of the estate.
Again, there are a variety of tax strategies to consider when contemplating any real estate or financial transaction. We recommend that you consult with your accountant or financial planner regarding the most appropriate approach for your individual situation.