MCLEAN, VA - Florida-based Wish Farms has agreed to sell 417 acres, 271 of which are organic-farmable, for $3.2 million to Gladstone Land Corporation. This works out to approximately $7,674 per acre, making it the second deal between the two companies within the last year.
"Wish Farms is excited to expand its partnership with Gladstone Land,” Gary Wishnatzki, Owner of Wish Farms, said, according to a Gladstone press release. “This transaction allows us to continue to expand our organic farming operations and grow our business after a very strong 2014-2015 winter strawberry season for Florida. Gladstone Land has strong roots in fruit and vegetable farming, making them a great resource for our real estate needs."
In connection with the acquired land, both companies have entered into a 10-year-long lease. Gladstone has also agreed to provide additional capital for certain property improvements over the next twelve months, expected to add up to a total investment of $4.5 million. Both companies appear to see this as an opportunity for growth, as Bill Frisbie, Managing Director at Gladstone Land Company, commented in the release.
"We are privileged to expand our partnership with such an esteemed grower that is an industry leader in organic farming," Frisbie said. "We now own 34 farms across the U.S. that produce a variety of high-value fruits and vegetables."
According to the release, Gladstone expects to generate a rate of approximately 6.6% cash capitalization over the term of the 10-year lease.
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