Sub-Prime Packaging, Tower Style

This is the story of three walnut shells and a dried pea.  In a nutshell (under which is a pea), the sub-prime mortgage problem occurred when bundles of mortgages were sold to third parties (neither the mortgagor nor the mortgagee).  It’s a great way to “monetize” a piece of paper that promises revenues for the next 30 years.  Sell the pieces of paper, along with several others, for a discounted price of its ultimate value, and you’ve got cash. 

So, why blame a carrier for packaging a few hundred, why not a few thousand, leases (including some in your community) and selling them to a tower company?  The carrier gets cash and the tower company steps in to load the leases with second and third tenants, the rents for which go to whom?  Well, maybe the carrier gets a percentage; but not always, because the carrier has “assigned” the lease to the tower company.  So, what about the landlord?

If the landlord is lucky, the landlord gets a “notice” that states the lease has been assigned.  It is a problem when the local government owns the land because it’s not clear if a notice was sent at all.  This becomes a problem when the local government tries to find the company responsible for the lease.

Cities and counties: if you think you know who the tenant for a tower on your land is, check the lease file.  If you find the lease has been “assigned,” find out who the “assignee” is.  Has the assignee placed more tenants on the tower and not told you?  This happens all the time.  Some leases require the landlord’s approval before assignment.  Did your governing body so approve?

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Kreines & Kreines, Inc.
58 Paseo Mirasol, Tiburon, CA 94920
Phone: (415) 435-9214
Fax: (415) 435-1522
e-mail: mail@planwireless.com