A new commercial real estate asset class doesn’t emerge every day.
However, that’s exactly what unfolded with the rise of real estate underlying cell site tower infrastructure. As pioneers in the sector, TowerPoint and its leadership played a pivotal role in shaping and popularizing this transformative market. Over the past two decades, the company has built one of the nation’s most impressive portfolios of wireless real estate and cell towers, generating billions in value for property owners, tower operators and mobile network providers. Today, TowerPoint stands as a market leader in this booming, high-growth space.
The Rise of a New Asset Class
For over two decades, TowerPoint’s CEO Jesse Wellner has been at the forefront of wireless tower and related real estate investments, witnessing and shaping the transformative evolution of this critical sector.
“The launch of the iPhone in 2007-2008 was more than just a turning point — it was a revolution,” Wellner reflects. “Before that, mobile technology revolved around voice and messaging, with carriers prioritizing coverage. But Apple’s innovation unleashed an era of unprecedented data consumption, forcing a complete reimagining of network infrastructure to meet the demands of a connected world.”
What was once a niche segment — land underlying tower infrastructure, or the “cell site” — rapidly ascended to become the backbone of modern communication.
“The demand created by the iPhone’s capabilities quickly outpaced the existing network, like running a bullet train on outdated tracks. It was a clear signal that a seismic shift in infrastructure investment was necessary,” Wellner explains.
This catalytic moment spurred Mobile Network Operators (MNOs) to accelerate the expansion and modernization of their base station equipment.
“We recognized early on that this was more than an infrastructure challenge — it was an unparalleled investment opportunity,” he says.
Under Wellner’s leadership, TowerPoint has not only capitalized on the explosive growth of digital infrastructure but also played an important role in positioning cell site real estate as a critical derivative of the global communication ecosystem.
A Commercial Real Estate Company That Specializes in Cell Tower Infrastructure
Over the better part of the last two decades, TowerPoint carved out a niche in this flourishing corner of the CRE industry, currently controlling and managing over 1,000 assets including macro cell towers, rooftops and land cell sites across 47 states and Washington, D.C. TowerPoint approaches these assets with the perspective of a real estate investor, treating wireless cell sites as an integrated part of a diversified CRE portfolio.
“We’re real estate people who also happen to know quite a bit about telecommunications infrastructure,” says Dustin Cahill, Partner and Managing Director at TowerPoint.
Cahill has overseen greater than $1 billion in wireless acquisitions and built a successful real estate portfolio across several traditional asset classes. Together, the team’s CRE background heavily influenced TowerPoint’s business model: by scaling a large, diversified portfolio, not only does the firm de-risk individual sites, but it also creates pools of high-quality assets that attract institutional investors seeking exposure to a professionally managed private portfolio, further shoring up TowerPoint’s position as a leader in wireless real estate.
“Collectively, this creates what TowerPoint calls a ‘Portfolio Effect,’” Cahill explains. “Our strategy creates a powerful cycle that enhances value for all stakeholders in the cell site ecosystem.”
Portfolio companies (PortCos) leverage scale to achieve pricing stability, secure favorable financing and drive operational efficiencies, which in turn increase asset values and attract institutional capital.
“This liquidity benefits individual landlords by raising the market value of their sites and expanding access to lower-cost capital,” says Cahill. “Carriers, meanwhile, benefit from professionally managed sites and improved network reliability, making cell site portfolios a strong, resilient asset class that supports growth for investors, carriers and landlords alike.”
The Importance of Choosing the Right Partner
Given the value generated through the Portfolio Effect, the decision to sell often becomes a question of when rather than if. “If what you hold is worth more to someone else, that’s typically the moment to sell,” notes Cahill — a perspective familiar to seasoned real estate investors.
However, Cahill cautions property owners that choosing the wrong partner can lead to costly headaches. While the cell site may be secondary to the overall operations of a building, the negative consequences of poor management can be significant.
“That’s why choosing the right partner is crucial,” he emphasizes.
Ainsley Parks, TowerPoint’s Director of Asset Management, underscores the importance of careful due diligence in selecting a buyer. Drawing from her early experiences growing up working with her family in the cell tower and commercial real estate business, Parks highlights the need for a thorough evaluation of a buyer’s capabilities.
“Commercial property owners should get in the habit of asking prospective buyers technical property management questions,” she explains. “If you’re not getting satisfactory answers from an acquisitions person, ask to speak with an asset manager.”
This focus on asset management is at the heart of TowerPoint’s strategy.
“By optimizing lease terms and existing installations over time, we can safeguard the underlying property and make the space attractive for future colocation tenants,” notes Cahill.
TowerPoint’s Asset Management team takes this a step further, actively managing each site with a meticulous, hands-on approach.
“We’re able to protect our landlords from liabilities by leveraging information gleaned from the range of our portfolio,” adds Parks.
From tying back cables and sending post-construction photos to refining lease terms, every detail is addressed to ensure long-term site quality. This careful attention to detail preserves and enhances the condition of the underlying property, ensuring that it continues to benefit landlords long after the sale is finalized.
Unfortunately, not all asset managers share the same ethos. Parks recounts instances where landlords, after selling easements — whether directly to buyers or through brokers – encountered otherwise avoidable maintenance and liabilities issues because the buyers under-invested in asset management.
“For many property owners, this isn’t their core business, and mistakes can inadvertently happen,” she explains. “We’ve seen cases of absentee managers whose negligence has resulted in everything from tenants poking holes in roofs to structural damage like falling parapets, often due to neglect.”
Problems can escalate quickly, causing disruptions for property owners and tenants alike.
“That’s why we prioritize minimizing those effects on commercial tenants,” reflects Parks. “You just can’t replace the sheer volume of what we’ve seen — and learned — from managing such a wide range of sites for so many years.”
Striking the Balance: Preserving Property Value While Unlocking Capital
As this new real estate asset class matures, driven by the activity of established portfolio companies like TowerPoint, its growth is drawing new and often inexperienced entrants to the market. This evolution highlights the importance of careful partnership decisions. While maximizing value is essential, as with any real estate transaction, the right partner can determine both the immediate success of a deal closed and the long-term protection of the property.
Selling a cell site presents property owners with an opportunity to unlock significant value that can be used to reinvest proceeds in a variety of fruitful ways while maintaining their property’s strength as an asset. Achieving these goals, however, requires a partner with deep expertise in both telecommunications infrastructure and real estate.
For insights and guidance on navigating this asset class, connect with the TowerPoint team here.