Gladstone Land Purchases Napa Vineyard in Second California Acquisition This Week
- by Lilian Diep
MCLEAN, VA - If it seems like it was just yesterday that Gladstone Land Corporation snapped up new property, that’s probably because it was. Tuesday morning, the company announced its acquisition of berry farmland on the coast of California; today, it announced the addition of a 366-acre vineyard in Napa, costing the company $32 million ($87,431 per acre).
“It’s rare that opportunities for a beautiful vineyard like this one come along on attractive terms, but our team did a great job of finding this one and negotiating its purchase,” said David Gladstone, President and CEO. “We now have an excellent vineyard with an outstanding tenant in Napa Valley, California. This acquisition expands our vineyard holdings and adds another very strong, long-term operator to our tenant base. Entering Napa Valley also adds a new growing region to our list of farm-growing areas, further diversifying our farmland holdings. Diversification is a key element in our desire to reduce risk and build a farmland REIT that can pay steady dividends to stockholders.”
We’re curious as to how Gladstone is finding so much success as of late, but it might have to do with the 10-year, triple-net lease agreement made with this seller prior to the deal’s finalization, as reported by a press release.
“This is an exciting acquisition for us,” said Bill Reiman, Managing Director. “We are entering a new region and beginning a new tenant relationship with one of the leading wine companies. Having a presence in the premium wine grape growing region of Napa really helps to solidify our position within the California wine industry. We look forward to many more opportunities here and throughout other wine grape growing areas.”
Is this a sign of a plethora of buy-ups to come for the company, which has been relatively quiet since 2017? We at AndNowUKnow patiently await.