Strategic Wireless Infrastructure Funds Management, through its affiliate, SWI Funds Tower Holdings, has completed the acquisition of a tower portfolio, real estate and other related assets located at premier locations throughout multiple states on the eastern seaboard including New York, Delaware, Massachusetts, Pennsylvania and Florida.
Jerry Sullivan, CEO of Strategic Wireless, stated, “This acquisition helps to further diversify our growing portfolio of high-quality, telecommunications infrastructure assets throughout the U.S.” Sullivan added, “We continue to exercise extreme discipline in our acquisition and development programs focusing on unique opportunities that help mitigate risk by delivering revenues associated with the country’s top wireless carriers and other credit-worthy tenants.”
It is the largest portfolio that Strategic Wireless has purchased since the fund began a year ago. A majority of the sites, all of which were constructed in 2015 or later, support at least two of the major wireless carriers, which make up most of the portfolio’s lease revenue.
Each site has excess capacity for additional broadband or broadband-equivalent tenants which management believes provides significant upside and value creation upon lease-up. Management expects to pursue additional wireless carriers, governmental agencies and other wireless providers to maximize occupancy on the newly acquired towers.
Geographically, the portfolio compliments towers previously purchased by Strategic Wireless.
“It is a great portfolio,” Sullivan said. “It is a nice shot in the arm for us. It’s a good, solid asset all the way around.”
And there are more acquisitions in the pipeline. Strategic Wireless will be closing on another portfolio of equal size in the next 60 to 90 days. Half of Strategic Wireless’s fund is expected to be used by year end.
“We have seen a steady flow of opportunities even during the pandemic,” Sullivan said. “I don’t know if the developers are seeking a liquidity event, or they are getting ready for further 5G densification so they can do more build-to-suits for the carriers. We anticipate putting all of the fund to work by mid-2021.”
In June, Strategic Wireless secured a syndicated credit facility led by Texas Capital Bank for SWI Funds Property Holdings and other affiliated companies for investment, acquisition and development opportunities in cell towers, wireless easements, fiber optic networks, small cells and DAS. In particular, the firm is looking to be a build-to-suit capital partner, as well as for full or partial liquidation opportunities.
The credit facility includes an accordion which will allow the firm to access up to $75 million throughout the term of the agreement. The company believes the credit line will significantly enhance its ability to continue acquiring and developing a diversified portfolio of telecommunications infrastructure assets within the United States.
Strategic Wireless is a Regulation D fund structured as a 506(b) that filed its registration statement in May 2019 with the intention of raising $100 million. Its first acquisition occurred in Iowa one year ago.
“We are seeking income and growth for our investors,” Sullivan said. “Our assets will primarily be towers and easements, both ground and rooftop, and fiber networks. We have a small allocation built into the fund associated with small cell and DAS.”
Media Capital Advisors, Inc. based in West Chester, Pennsylvania, represented the seller in this transaction.