MCLEAN, VA - Gladstone Land Corporation announced that it has acquired 3,586 total acres of farmland and facilities in South Florida for total consideration consisting of $54.5 million in cash and 288,303 common units of limited partnership interest in its operating partnership. The OP Units issued were valued at $12.14 per unit, resulting in total consideration of approximately $58.0 million.
“This is an exciting acquisition for us and one that allows us to form a new relationship in Florida,” said David Gladstone, President and CEO of Gladstone Land. “We now own nearly 80,000 acres of farmland that are 100% leased to tenants who we believe to be great tenants. We believe in taking care of the land and water in Florida.”
According to a press release, the acreage has previously been used for vegetable and citrus farming. However, it is currently being used for diversified agricultural purposes, with the primary use being water retention. In connection with the acquisition, Gladstone also entered into an eight-year, triple-net lease with Caulkins Citrus Company.
“We are excited to partner with Gladstone Land on this property and look forward to continuing our management of the Caulkins Water Farm as part of the State of Florida’s comprehensive efforts to improve water quality in South Florida,” said George Caulkins, Managing Partner of Caulkins Citrus. “Given our experience in partnering with South Florida Water Management District to bring our water farm online in a timely and cost-effective manner, we plan to use the capital from this transaction to explore additional land investments in the state to retain and treat water and help eliminate discharges.”
Bill Frisbie, Managing Director of Gladstone Land, added, “We are very pleased to acquire another property in a prime vegetable growing region in South Florida. The majority of the property is currently utilized to retain and prevent water flowing from Lake Okeechobee to the coastal communities, which can have a negative environmental impact. Our tenant, Caulkins Citrus, has a multi-year contract with the South Florida Water Management District, with funding provided by the State of Florida. The property is adjacent to a large organic vegetable farm that we currently own and the Property has the potential to be converted into prime organic farm acreage in the future; however, our objective is to keep using it in its current purpose for as long as the State of Florida desires.”
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