AcreTrader: Porterville Ranch Offering

Real estate investment platform AcreTrader launched an offering for a citrus orchard in Tulare County, California. 

AcreTrader opened the investment window for Porterville Ranch, a 110-acre citrus orchard in a region known as the “Citrus Belt” of the San Joaquin Valley. Porterville has historically secure water resources and diverse in-demand crop varieties. 

Popular varieties of both tree nuts and citrus, including tango mandarins, cara cara oranges and lemons, are grown on the ranch’s 97 planted acres. Eighteen acres are set aside for golden hills pistachios, and the managers of the property plan to add grapefruit as well. The constricted supply of the crops grown on the ranch, namely pistachios, lemons and mandarins, combined with the strong demand for them, sets a favorable market position for Porterville Ranch’s products.

California irrigation has become synonymous with water shortages, but Porterville benefits from a location in which water resources are historically abundant. The ranch is near Lake Success and has access to surface water from the Lindmore Irrigation District. A $135 million project that will increase the capacity of the Lake Success Dam by 34% is underway. The inherent water resources will aid the farm tremendously in terms of production capability and overall value.

Porterville Ranch will be expertly managed by offering sponsor CMC Citrus LLC. CMC Cirtus is a family-owned and -operated business that’s been growing citrus in California Central Valley for over 77 years. Demonstrating the group’s commitment to the investment, CMC will be adding a $100,000 coinvestment into the acquisition. 

• Minimum investment: $25,000
• Target internal rate of return (IRR): 5.16% (excluding the sale of the property)
• Target investment term: eight to 10 Years

Since its inception, AcreTrader has been one of the premier farmland investing platforms in the market. The platform makes it possible for average investors to buy into a lucrative market with historically strong returns.

Investment in farmland often acts as a hedge against inflation. Since 1990, the first year of the farmland investment index, there has been a positive return every year, making this asset class increasingly attractive for investors looking to diversify their portfolios.

View details on AcreTrader’s offerings

Photo courtesy of AcreTrader