Beware Md7's Latest Letter To Cell Site Landords
Md7, LLC is a company used by the wireless industry to do its dirty work. Like it's cousin Blackdot Wirless, Md7 uses questionable tactics to induce cell site landlords to change the terms of thier leases. For years, the tenants in cell site leases have sought to change the terms of their leases when they decide it is no longer their favor. More recently, the tower companies such as Crown Castle and American Tower doing the same with leases they bought.
The latest letter sent by Md7 takes the cake in terms of bad information and long-term impact. Cell site landlords should first carefully read the letter. Then they should carefully read the lease. After a reading of both, it should be obvious that the proposed changes to the lease overwhelmingly favor the tenant. The tenant gets a rent reduction, sigificant change in the rent escalator, expansion of permitted use, 24/7 access, and a right of first refusal. Interestingly, the tenant also gets a lease extension. In exchange, the landlord gets....wait for it...a guarantee of keeping its reduced rent for five years!!
The letter states that signing up to this deal is an "opportunity to minimize the business risks associated with industries uncertainties and increase the value of your cell site lease." Business risk implies cell site leases can be terminated by tenants easily. Landlords should carefully review their leases to understand what termination rights exist. To state that such a modification increases the value of the lease untrue unless, of course, they mean the value to the tenant.
When you get a letter from Md7, do the research, ask questions and get help.