Avenue 20 Almond Farm

Madera County, CA

A

AcreTrader Rating (1)

Description

Ag Partners Capital (“APC”) has contracted to purchase the 78-acre Avenue 20 almond farm near Madera, California. Avenue 20 has strong soil and water resources and a robust history of crop production with yields 29% above the statewide average. The property is located in the Madera Irrigation District, which provides a reliable, long-term supply of water. The southern half of Avenue 20 is comprised of mature almond trees in production. The northern half of the property was re-planted to almonds in 2019, which will produce its first crop in 2021.

Ag Partners Capital has years of experience investing in and operating California-based farmland including almond properties. Please see the Private Placement Memorandum (PPM) in the Documents tab for additional details.

Investment Highlights

  • APC has deep experience in both agriculture investing and farm management. Both the sponsor and farmer will be investing in this offering alongside AcreTrader investors.

  • While California water access can be an issue, the property has been subjected to rigorous due-diligence by the sponsor and has surface water rights with the Madera Irrigation District.

  • Almond demand has grown 7% annually over the last 20 years.

  • A strict regulatory environment and the capital requirements necessary to develop farms create a barrier to entry.

  • California supplies more than 80% of the world’s almonds because of its unique climate, soils, and infrastructure.

  • Sponsor one-time acquisition fee of 1%, annual management fee of 3% of revenues apply, and 1% one-time disposition fee.

  • Sponsor receives incentive fee of 20% of annual net profits after investor receives 7% preferred annual returns.

  • This offering involves an external sponsor; please carefully review the Private Placement Memorandum (PPM) as well as the associated offering documents.

Additional Details

  • This offering differs from our other row crop offerings for several reasons. Importantly, an external deal sponsor is involved that will be responsible for managing and operating the property. As a result, rather than receiving annual rent from a single farmer, investors will have operational exposure not dissimilar to many commercial real estate investments. Please see PPM for additional information.

  • Please note additional documentation and Microsoft Excel file provided by sponsor are available under the Documents tab of this offering.

Risk Factors and Disclosures

Please see additional risk factors here  and in the Issuer Document Package for a discussion of additional risks. The above presentation is based upon information supplied by the seller and others, and some images shown may be used for representative purposes and may not have been taken on location at the subject property. While AcreTrader performs extensive due diligence on the offerings on our Site, certain of the information presented in each offering may have been provided by third party sources. Therefore, AcreTrader and its respective affiliates, officers, directors or representatives (the "AT Parties") hereby advise you that while all such third party information contained herein has been provided by to us from sources deemed reliable, we cannot guarantee its accuracy. The AT Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

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