A New Offering For A California Citrus Grove Is Projected To Provide A 9.6% Yield To Investors

FarmTogether, a leading farmland investment platform, has recently announced a new crowdfunded offering for the Great Valley Citrus Grove, a 56-acre diversified citrus property located in Fresno County, California. The offering presents a unique opportunity for investors to gain exposure to the highly sought-after citrus market in the heart of the San Joaquin Valley’s Citrus Belt.

The Great Valley Citrus Grove is being offered at a contracted purchase price of $2,200,000, with a minimum investment of $15,000. The deal is structured as a 10-year hold, targeting a net IRR of 10.1%, an average cash yield of 9.6% and a 2.4x net multiple on invested capital.

Fresno County is renowned for its ideal growing conditions, with fertile soil and a climate well-suited for producing premium citrus fruits. The property is strategically located just 19 miles southeast of Fresno, on the east side of the San Joaquin Valley.

The grove is planted with two high-demand citrus varieties: Ruby Red grapefruit and Cara Cara navels. Ruby Red grapefruit is prized for its versatility in culinary applications, while Cara Cara navels are a consumer favorite due to their unique sweet flavor profile and vibrant color. Both varieties are expected to be sold through the fresh market, capitalizing on the strong demand for premium citrus products.

The outlook for the citrus market remains positive, driven by several factors. Firstly, the demand for fresh citrus fruits continues to grow as consumers increasingly seek out healthy and flavorful produce options. Secondly, the limited availability of prime citrus-growing land in California, coupled with the state’s strict regulations on new plantings, has created a supply-constrained market, which is expected to support strong pricing for high-quality citrus fruits in the coming years.

Water availability is a crucial factor in the success of any agricultural investment, and the Great Valley Citrus Grove is well-positioned in this regard. The property benefits from two reliable water sources: surface water from the Alta Irrigation District and groundwater from two on-site wells. This combination is expected to provide sufficient irrigation to ensure the long-term sustainability and productivity of the citrus grove.

At the end of the 10-year hold period, the grove is projected to be at peak production, with decades of remaining economic life. FarmTogether believes that the property’s strong fundamentals will make it attractive to large growers and investors, with the potential for added value through economies of scale, as the Great Valley Citrus Grove is located close to several other FarmTogether-managed citrus assets in the region.

The Great Valley Citrus Grove offering from FarmTogether presents investors with a compelling opportunity to participate in the attractive California citrus market. With conservative underwriting and a clear exit strategy, this investment is well-positioned to generate strong returns for investors over the long term.

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