Royal Bluff Apple Orchards

Columbia Basin, WA

A

AcreTrader Rating (1)

Description

The New Royal Bluff Orchards, LLC ("Royal Bluff Orchards") is an apple orchard and farming company with the business and management team having 25 years of experience operating together and with 6 years operating history in its current form. Investors in this offering will be investing in equity of this diversified orchard and farming company with 255 acres of producing trees and plans to bring another 255 acres into production.

The capital from this ownership interest will be used for infrastructure and trees on a recently purchased 130 acre orchard as well as replanting a section of an older orchard owned by the company into new organic apple trees. The increased apple production plus converting the non-organic portions of the farm to organic is expected to increase cash flows to investors and the value of the orchard itself. The farm currently grows Honeycrisp, Fuji, Gala, Granny Smith, and Ambrosia Apples as well as cherries.

Investment Highlights

  • 10 year target hold period

  • Royal Bluff Orchards has already paid $1.6 million in distributions over the last 5 years through 2019

  • Minimal debt utilized on the project, with a maximum expected Loan-To-Asset ratio of ~11% at peak in 2023

  • Royal Bluff Orchards' management team has extensive industry experience, including 2019 Good Fruit Grower of the Year and committee membership on the Washington State Tree Fruit Association

  • Increased organic production expected to provide attractive prices and marketability of fruit

  • The investment will be managed by AcreTrader Management, LLC, an affiliate of AcreTrader, Inc. with an AcreTrader representative gaining a seat on the Royal Bluff Orchards' advisory board

  • AcreTrader Management fee of 1% applies annually

  • Anticipated cash distributions occur on or around December 15 annually, beginning December 2022

  • This offering involves an external sponsor; please carefully review the sponsor's business plan, subscription agreement, and the associated offering documents.

Additional Details

  • While the purchase price of the Series D Member Units to new investors is listed in the Business Plan and Paragraph 2(y) of the Subscription Agreement and Private Placement Memorandum as $75,000 per Unit, due to the volume of Series D Member Units Acretrader 123, LLC has committed to purchase, the Sponsor has offered those Series D Member Units to Acretrader 123, LLC at $70,000 per Unit. AcreTrader investors are offered purchase of pro-rata 1/2 units priced at $35,000 plus anticipated closing costs and year 1 - year 2 management fees that total $1,000 per AcreTrader unit, placing the offering price per AcreTrader investor unit at $36,000 for pro-rata ownership of 1/2 of a Series D Member Unit.

  • This offering differs from many of 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 sponsor's business plan, subscription agreement, and associated documents for additional information.

Supplemental Disclosures for TNRBO Offering

From time to time, AcreTrader, Inc. encounters offerings from unrelated third parties that we believe are of a quality and type that might be of interest to potential investors on our website found at www.acretrader.com (the “Platform”). In such cases, if our review of the third party sponsor (“Sponsor”) and the due diligence materials for their offering meet certain AcreTrader criteria, we may agree to host such offering on our Platform (each such offering is a “Sponsored Offering”) for a platform listing fee that will be paid by the Sponsor.

Where there is a Sponsored Offering on our Platform, we require the Sponsor to provide all diligence materials and legal documents to be signed by investors, including, but not limited to a subscription agreement and a limited liability company operating agreement (or comparable forms for corporations or partnership offerings). In this Offering, the Sponsor’s form of offering documents are being provided for reference only. However, Acretrader 123, LLC will be executing those with the Sponsor and investors in Acretrader 123, LLC will be signing our standard form Investment Agreement and LLC Agreement. The Sponsor, may at its discretion also provide a Private Placement Memorandum, as well as other pertinent disclosure materials. These documents which are prepared by the Sponsor will describe to investors the offering and the risks of investing in the Sponsored Offering. .

AcreTrader does not make any recommendations regarding the Sponsored Offering or the appropriateness of any particular Offering for any investor. You should be aware that AcreTrader, Inc. is not a registered broker-dealer, nor is it a registered investment advisor. While AcreTrader has conducted a review of the Sponsor and each Sponsored Offering, we have relied upon the Sponsor’s efforts and have not taken further steps to verify the adequacy, accuracy or completeness of any Sponsor-provided information.

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Specific Risks for The New Royal Bluff Orchards LLC, Series D offering

For information relating to specific risks relating to the Series D Offering for which Acretrader 123, LLC will be subscribing, please reference Section 2 Business Risk Factors: Application of Capital; Terms of Subscription starting on Page 2 of The New Royal Bluff Orchards, LLC (“TNRBO”) Series D Subscription Agreement and Private Placement Memorandum of Disclosure (Rev. January 1, 2020).

Supplemental Disclosures for the TNRBO Series D Interests

  1. This Offering is estimated to have a hold period from 5 to 10 years with the possibility of some repurchases occurring starting in Year 6, subject to Acretrader 123 providing 12 months’ advance notice to TNRBO in any year in which it anticipates such sales.
  2. This Offering is not projected to provide an annual cash distribution until Year 2.
  3. Part of the proceeds of this Offering will be used to pre-pay annual management fees to AT Management, LLC. The need for pre-payment arises from the inability of the Company to make capital calls from its members or to deduct such fees from annual income since there will not initially be annual income. See Note 2 above.
  4. Please note and review the additional documentation and Microsoft Excel file that 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.

Please see Additional Disclosures regarding our offerings and use of our Site here.