Overview

Located in the heart of the San Joaquin Valley’s Citrus Belt, Palisades Citrus Grove is a high-quality off-market opportunity to purchase 75 planted acres of Tango variety Mandarins in Fresno County, California. The deal is modeled in line with the agreed-upon purchase price of $5,000,000 and is currently under contract. Palisades Citrus Grove is modeled as an 11-year hold with a target net IRR of 10.5%, target net cash yield of 9.2%, and a target multiple on invested capital of 2.3x. Due to the strong fundamentals of the land and water supply, we expect the farm to be attractive to local buyers as well as institutions at exit. This is a high-quality citrus orchard entering prime production; the turn-key property was planted to Tango Mandarins in 2019 and has begun bearing fruit. This variety is one of the most popular citrus varieties due to its seedless nature, easy-to-peel rind, and sweet-tart flavor. The first income from this investment is anticipated after the 2024 harvest and we expect this orchard to remain at peak production throughout the hold period. Reliable irrigation water is delivered through the Consolidated Irrigation District. Furthermore, a second source of water is supplied via two groundwater wells. The property is expected to have sufficient resources to support long-term sustainability and productivity of the citrus orchard. As demand for California citrus continues to grow and commodity yields continue to improve relative to other major citrus-producing regions, we believe this block is set up for long-term success in this region.