Valliente Orchard

Grant County, WA

B

AcreTrader Rating (1)

Description

Valliente Orchard, LLC ("Valliente") is an apple orchard and farming company developing a new 166 acre organic apple orchard in Royal City, WA. The farm will grow Honeycrisp, Pink Lady, and, potentially, other club varieties (specialized and patented) apples as well as cherries.

Jim Jackson and members of his team, the managers for Valliente, have 29 years of experience operating together. Investors in this offering will be investing in an organic orchard development and conversion project as well as a farming company which will produce the apples themselves. The trees will be grown on a property which is leased for the next 37 years (with a purchase option and two optional 5-year extensions) that lies adjacent to another tract that Valliente’s management group farms. This 166 acre property will be within the 3 mile stretch encompassing the other 510 acres of apples and cherries the group already farms in the area.

Jim Jackson and his team have sponsored other AcreTrader offerings in their other entity, The New Royal Bluff Orchards, LLC (TNRBO). AcreTrader sits on the advisory board to TNRBO and will sit on the advisory board of Valliente as well.

Investment Highlights

  • The Valliente Orchard, LLC management group 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 is expected to provide attractive prices and marketability of fruit, though the financial model conservatively accounts for production levels and pricing.

  • The New Royal Bluff Orchards, LLC will invest alongside investors in this offering.

  • The New Royal Bluff Orchards, LLC will share management, labor, and equipment with this entity which can drive down operating costs.

  • Senior water rights and a water service contract managed by the Quincy-Columbia Basin Irrigation district come with this property. None of the properties managed by this group has ever had water interruption.

  • The New Royal Bluff Orchards, LLC (a related entity managed by the same group) has paid distributions every year over the last 5 years.

  • A 10-15 year target hold period is anticipated.

  • The orchard will be planted on a property with a 35 year lease (matching the typical productive life of the trees).

  • There is an option to purchase the underlying land in the future - note that financing for this purchase scenario is not included in the sponsor's financial projections.

  • Anticipated cash distributions occur on or around December 15 annually, beginning December 2021.

Additional Details

Supplemental Disclosures for Valliente 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). The Sponsor, may at its discretion also provide a Private Placement Memorandum or Business Plan, 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.

  • 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, financial model, subscription agreement, and associated documents for additional information.

  • The Orchard does not yet own the underlying real property. It has a long-term lease for the Orchard property, as well as an option to purchase the Orchard in the future.

  • This investment could have a longer term holding period with limited liquidity. See Article 12 of the LLC Agreement for more information.

  • An affiliate of the Manager has a right of first offer to purchase the Orchard.

  • AcreTrader has a right of second offer to purchase the Orchard.

  • Cash invested in this Offering may not be invested in the Orchard by the Sponsor within the first twelve (12) months following the Closing. Refer to the Business Plan and Sponsor Financial Model for more information regarding the uses of capital and timing of expenditures. See also the risks disclosed in Section 2 of the Subscription Agreement

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.