Gladstone Land buys 24th farm in U.S.
It is seldom that we hear about investor acquisitions of agricultural land in the U.S., but some investment companies, including Gladstone Land Corporation, have acquired large volumes of production agriculture land.
Gladstone Land Corporation announced that it has acquired a 145-acre farm in Watsonville, Calif., for $5.9 million. Across the country, Gladstone Land now owns 24 farms.
The latest acquisition in California has water on site and has been farmed for row crops, fruits and vegetables for decades. In connection with the acquisition, the company assumed a lease on the property with 28 months remaining with a large farming operation as the tenant.
"We are pleased to add another first-rate farm in California to our portfolio and partner with the existing farmers on a long-term basis. Our objective is to be a strategic real estate partner for farmers so they can secure their land for the long haul," said Bill Frisbie, director at Galdstone Land. "We now own 24 farms across the U.S. that produce a variety of high-value fruits and vegetables."
"We are excited when an opportunity arises to add prime strawberry land to our existing farmland in the Watsonville region, and we will always maximize our efforts in attempting to complete such deals. We have great relationships with growers here, and we will always do what we can to provide our services to them in order to support a healthy industry," said Bill Reiman, managing director at the company.
Gladstone Land officials explained that it is a company seeking to be a real estate investment trust that pays monthly dividends to its stockholders, and the company intends to report the current value of its farmland on a quarterly basis.
Gladstone Land invests in farmland located in major agricultural markets in the United States that it leases to corporate and independent farmers. The company currently owns 6,345 acres in five different states across the U.S., appraised at an aggregate value of approximately $129 million, the company claimed.