1. Welcome to AppraisersForum.com, the premiere online community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Rural Vacant Land with Cell Tower

Discussion in 'Urgent - Help Needed' started by cdw20, Apr 30, 2008.

Thread Status:
Not open for further replies.
  1. cdw20

    cdw20 New Member

    0
    Mar 5, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    Can a Rural Vacant Land property with no zoning & a cell tower being built on it be appraised as residential vacant land? I have a 1 ac parcel,with a cell tower being built & a monthly lease for a total of 5 years and I'm not sure of exactly how I should handle it. The property is rural, no zoning, etc. Should I refer it to a commercial appraiser or do it as vacant land and treat the lease seperately or what? Please HELP!!
     
  2. SMF

    SMF Sophomore Member

    0
    Oct 11, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Virginia
    You should probibly refer this appraisal to a commercial appraiser or at the least get someone in your area that is competant that is willing and can help you. Properties with cell towers are a very specific type of appraisal and comps will be far and few between.

    good luck
     
  3. Richard Carlsen

    Richard Carlsen Elite Member

    0
    Jan 15, 2002
    Professional Status:
    Licensed Appraiser
    State:
    Michigan
    Sure it can. I've done it as well as doing a 20 acre parcel with a nice pre-HUD mfg and a tower generating $3600/year in lease payments.

    Let me use the 20 acre improved parcel as an example. The parcel was two sq 10's extending back from the road. The tower sat on the rear 10 and what with guy wires etc., took up nearly all of that back 10 acres. So in essence, the leasehold rights of the tower owner took the back 10 acres out of the site for all but a small bit of owner utility. I then valued the house and the remainder 10 acres. For the back 10 acres, I used the current lease payments plus the agreed payments and increases and calculated the present value of that lease. Strangely enough, the results were nearly identical for the income value as for the value of the front 10 acres as unimproved. I put the two together with a slight discount for loss of some utility (they could still deer hunt under the tower but that was about it) and stated my estimate of value.
     
  4. CBBoston

    CBBoston Member

    0
    Jan 27, 2008
    Professional Status:
    General Public
    State:
    Massachusetts
    Richard is right on. Finding sale comps is extremely challenging and the income approach is really the only way to do it. You might want to talk with other property owners to see what prevailing rent is. Here in rural MA the tower rentals I've encountered are from $20k to $30k a year on raw land. Things get a bit more complicated if the tower is on an existing structure. Cap rates are in the 8-10% range. But I wouldn't hang my hat on that.
     
  5. Terrel L. Shields

    Terrel L. Shields Elite Member

    66
    May 2, 2002
    Professional Status:
    Certified General Appraiser
    State:
    Arkansas
    If you are appraising only a 1 acre tract, then you are appraising a non-residential property. It is not "vacant". It is a commercial tower site. SO...are you appraising the Fee Simple (all of it)? The leasehold (tower)? or the Leased Fee (land)?....
    If the leased fee (the owner's part) then the lease needs to be DCF'd over the term of the lease and the reversion value to see its "value". This is an income assignment and "comps" are likely not going to be much help unless there are some close.
     
  6. Mike Boyd

    Mike Boyd Elite Member

    0
    Jan 18, 2002
    Professional Status:
    Retired Appraiser
    State:
    California
    We have cell towers going up in several locations. I have been keeping my fingers crossed that I do not get an assignment such as this. Neighbors are very sensitive to phony health issues regarding electro-magnetic fields created by the towers and the electronics. I think I would turn down such an assignment, not because I could not do it but because the use of these towers will likely end up in court and I no longer have patience for these kind of people.
     
Thread Status:
Not open for further replies.

Share This Page