651150

Lindsay Almond Ranch

Tulare, CA

B

AcreTrader Rating (1)

Description

Almonds+ LLC has contracted to purchase a 78.4 acre almond orchard in Tulare County, California. The almond trees were planted in 2016 and 2018 and are expected to become fully productive over the next 2-3 years, with almond trees typically being productive for up to a 25 year lifespan. The property has high-quality Class 1 soils and access to water via local groundwater supplies as well as a newly-retrofitted onsite groundwater well. Both the offering sponsor and the farmer have years of history with investing in and operating California-based farms and almond groves. The sponsor will be a direct investor in the project as well. Please see the Private Placement Memorandum (PPM) in the Documents tab for additional details.

Investment Highlights

  • Almond demand is growing rapidly with almond markets expected to grow 7.1% to 10.6% annually over the next 5-8 years*.

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

  • California supplies more than 70% of the world’s almonds because of its unique climate, soils, and infrastructure.

  • While California water access can be an issue, the property has been subjected to rigorous due-diligence by the sponsor and has two sources of water (an irrigation district and an on-site water well).

  • Sponsor team has deep experience in both real estate and farm management.

  • Sponsor one-time acquisition fee of 4% and annual management fee of 1.25% apply.

  • Sponsor receives incentive fee of 20% of annual net profits beginning after investor receives 6% return.

  • 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 that are available under the Documents tab of this offering.

  • *10.6% almond market growth statistics are using compound annual growth rate (CAGR) through 2025 per Research and Markets report dated June 17, 2019. Markets.us, which projects almond growth over a longer time frame, projects a 7.1% CAGR through 2028.

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. AcreTrader and its respective affiliates, officers, directors or representatives (the "AT Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. All information provided herein has been provided by sources deemed reliable, but we cannot guarantee 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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