Gladstone Land Corporation announced during the last two weeks purchase agreements for California and Florida crop land. Farmland LP also announced the purchase of Willamette Valley farmland and related assets from Olsen Agricultural Enterprises in Oregon.
Gladstone Land entered into two purchase and sale agreements to purchase five farms, comprised of 3,519 aggregate acres of irrigated cropland in California and Florida, for approximately $35 million. The company also has six additional properties totaling 5,476 acres under signed non-binding letters of intent in Colorado, Florida, Georgia and Nebraska, for approximately $23 million that it continues to evaluate for purchase.
As of June 22, the company was working towards completing these transactions within the next couple of months; however, each purchase is subject to customary conditions and termination rights for transactions of this type, including a due diligence-inspection period, and there can be no assurance that these acquisitions will be consummated.
"All the farms we own and are evaluating for purchase have very strong water sources and are in regions that, in our opinion, are at minimal risk of having any water restrictions imposed that would impact these farms," said David Gladstone, president and CEO of the company. "If we are able to complete these mentioned transactions, it would double our total acreage and provide a strong boost to our operating revenues. We are encouraged by the year to date results of acquisition efforts."
Additional Gladstone announcement
Gladstone Land quickly turned around on June 29 and announced that it had acquired 2,668 acres of land with 1,664 farmable acres in Hendry County, Fla., for approximately $15.8 million. The company entered into a five-year lease agreement with a leading grower and marketer of fresh vegetables. The lease provides for annual escalations and two 5-year extension options.
"We are privileged to expand into another growing region in the Southeast with a highly regarded vegetable grower as our tenant partner," said Bill Frisbie, managing director at the company. "We now own 36 farms across the U.S. that produce a variety of high-value fruits and vegetables."
Gladstone Land advertises itself as a real estate investment trust that pays monthly distributions to its stockholders. The company invests in farmland located in major agricultural markets in the United States that it leases to corporate and independent farmers.
Farmland LP land acquisition
As for the Farmland LP, The Olsen family announced that they sold their Willamette Valley farmland and related assets to Farmland LP, an agricultural real estate investment firm. The ownership change stook effect immediately.
The Olsen family has farmed as much as 6,000 acres of land in the Willamette Valley specializing in a variety of crops, including blueberries, hazelnuts, grass seed and peppermint, and was one of Oregon’s largest wine grape growers.
“We are delighted to add Olsen’s Willamette Valley farmland to our existing Oregon and California holdings,” said Craig Wichner, managing partner of Farmland LP. “Today’s acquisition expands our capacity to serve the ever growing demand for locally grown organic food, and reflects our long term commitment to Pacific Northwest agriculture.”
It was reported that the same team will operate the assets under the new ownership, and that will allow for continuity of programs in the vineyards, orchards and farmland.
Farmland LP acquires large-scale conventional farmland and implements high productivity organic and sustainable agricultural practices. Founded in 2009, the firm manages over 13.500 owned and leased acres in Oregon’s Willamette Valley and the San Francisco Bay Area. The terms of the sale were not released.