CONX Corp. entered into a sale agreement with EchoStar Real Estate Holding to buy the commercial real estate property in Littleton, CO, where DISH Wireless has corporate headquarters, for $26.75 million.
The parties also agreed to a form of sale lease-back agreement, in which the seller will lease back the property from CONX. The agreement provides for an initial term of 10 years, a base rent payable during the first year of the initial term of $228,500 per month, which will escalate annually at a rate of 2% annually, and two five-year renewal options for the seller, with the base rent upon a renewal to be revised to fair market value and subject to the same annual escalation terms. All of seller’s obligations under the lease will be guaranteed by DISH Network.
The transaction is structured to qualify as an asset acquisition that would meet the requirements of a business combination, as defined in the SPAC’s articles of incorporation.
The parties anticipate the closing will occur in the second quarter. In the event the closing is not completed by May 15, either party may terminate the agreement. Read more.
