Strategic Telecom Contract Renegotiation
By Sarah Mabry
In 2016, our client acquired a 420-unit student housing asset. In 2024, our client made the decision to reposition this property as a conventional asset. Following that decision, they requested our assistance in evaluating changing Internet service delivery models and any impacts there might be to amenities, expenses, and revenue. Through strategic negotiations with the Service Provider, emphasizing the needs of our client, the value of the broader partnership and enhanced resident experience, RealtyCom Partners successfully generated nearly $1M in total value—equating to $2,300 per unit—for our client’s asset.
The Work: The existing telecommunications agreements included bulk (owner-paid) Internet and Television services. While many of our clients see tremendous value in purchasing Internet services in bulk, there were specific reasons why our client did not wish to continue with this model. With six years of term remaining in the existing contract, RealtyCom Partners was asked to explore termination options that would allow the owner to transition to retail (direct-to-resident) services as soon as possible.
RealtyCom Partners conducted a comprehensive review of the existing Service Provider contract, leveraging our extensive database of over 100 contract terms. In this case, while the owner had the option to switch the bulk […]