MCLEAN, VA – Gladstone Land Corporation continues adding to its diverse portfolio of farmland with the acquisition of 390 acres of farmland in the San Joaquin Valley and Oxnard, California for $12.7 million.
The newly acquired 322-acre farm in San Joaquin Valley is located in Arvin, California and was purchased for $5.8 million. Gladstone has assumed the in-place lease on this property, which will expire in October 2015. The company has also entered into a nine-year, follow-on-lease agreement with a new tenant, Underwood Ranches. Underwood Ranches is the exclusive grower of red jalapeño peppers for Sriracha hot sauce, according to a press release.
"We are privileged to partner with such an esteemed grower and add another large vegetable farm to our portfolio," said Bill Reiman, Managing Director for the Company. "This acquisition is our first in the southern San Joaquin Valley, an area known for its diverse agriculture. This region is home to many large agribusiness firms, and we are excited to become local landowners. There is tremendous growth potential for us in this region, and we look forward to many more opportunities. This farm has been farmed for many years and has a good water supply already in place."
For the Oxnard acquisition, the company has acquired 68 acres of strawberry farmland for $6.9 million. It signed a three-year lease that escalates annually with a major international grower, according to a press release. The property has water on site and has been farmed for row crop fruits and vegetables.
"We are very excited to add such a premium, high-value strawberry farm to our portfolio. Opportunities to acquire properties like this one are very rare, especially with such a large and reputable tenant that has been farming the ground for years. The value and income growth potential of this farm is unique in the industry, and we believe we will benefit from this acquisition for many years to come. This transaction falls in line with others that we have done with this tenant, a global leader in the berry business. This is another example of a strategic partnership working to achieve our respective goals," said Bill Reiman, Managing Director for the Company.
In a press release, Gladstone Chairman David Gladstone says that the company still has a large backlog of farms it is seeking to acquire and hopes to acquire more as the summer continues. Click on the following links to read our previous article on Gladstone land acquisitions in Florida and Watsonville, CA.
Gladstone Land invests in farmland located in major agricultural markets in the United States that it leases to corporate and independent farmers and currently owns 6,829 acres on 28 farms in 5 different states across the U.S.
