MCLEAN, VA - Gladstone Land Corporation recently added another plot of land to its impressive farmland portfolio. The real estate titan acquired roughly 1,000 acres in Coalinga, California, for $33 million (roughly $33,000 per acre), which mainly consists of pistachio trees.
“We are excited to be adding another large pistachio orchard in the San Joaquin Valley,” said Bill Reiman, Managing Director of Gladstone Land. “More than just adding another property to our farmland holdings, we are also adding another high-quality grower-tenant. This transaction has been very smooth, and it has been a pleasure to work with Rod Stiefvater, Paul Nugent, and their broker, Cameron Kay. Rod and Paul farmed this property prior to its development as a pistachio orchard, and they are excited to continue their operations on the property into the foreseeable future. This is a large holding with its own solar facilities to help reduce energy costs, and the farm has added value due to the water infrastructure that allows the grower to deliver surface water to the orchard.”
According to a press release, Gladstone also entered into an eight-year, triple-net lease with RTS Agri Business and Canoas Creek Pistachios. The company noted that this is the first closing of a two-part acquisition; the second closing will occur during the fourth quarter of 2019 and is expected to be slightly larger than the current closing.
“This is our second large acquisition of the quarter,” said David Gladstone, President and CEO of Gladstone Land. “We continue to build our diverse portfolio of farmland focused primarily on healthy foods, such as fresh produce and nuts, and we are very encouraged by the number of large, high-quality farms we have been able to acquire recently. This orchard has just reached peak production and is a great representation of our ability to partner with esteemed operators and purchase farms that we expect will produce steady rental income and allow us to continue growing the dividends we pay to our shareholders.”
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