CONX in a regulatory filing said it closed on the acquisition of the corporate headquarters of DISH Wireless in Littleton, CO. The SPAC purchased the property for $26.4 million from EchoStar Real Estate Holding, which agreed to sell and lease back the facility.
EchoStar 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.
CONX’s estimated maintenance and repair obligations with respect to roof, shell, core and systems will be reflected in an additional rent payment as operating expenses to be reimbursed by the seller.
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. Read more.
