Overview

Located in the heart of the San Joaquin Valley’s Citrus Belt, Great Valley Citrus Grove is a rare opportunity to invest in 56-planted acres of diversified citrus in Fresno County, California. Fresno County is known for its fertile soil, favorable climate, and longstanding history of producing high-quality citrus. The deal is modeled in line with the $2,200,000 contracted purchase price. The property is located 19 miles southeast of the city of Fresno on the east side of San Joaquin Valley. Great Valley is modeled as a 10-year hold with a target net IRR of 10.1%, a target net average cash yield of 9.6%, and a target net multiple on invested capital of 2.4x. At exit, the grove is forecasted to be at peak production with decades of economic life remaining. We believe this property will be attractive to large growers and investors due to its strong fundamentals. Furthermore, Great Valley is located close to several FarmTogether-managed citrus assets with similar hold periods. As a result, Great Valley could be sold individually or as part of a larger portfolio of FarmTogether managed properties. We believe there is added value built through economies of scale within the region. Both citrus varieties on Great Valley are in high demand. The Ruby Red grapefruit variety has various culinary uses for juice and zest, both in food and in beverages, and is the sweetest grapefruit on the market.​ The Cara Cara navels feature a uniquely sweet flavor profile suited primarily for fresh consumption; it is a favorite at many farmers markets. Both of these varieties are a consumer favorite due to their signature flavor and deep red and orange color; we expect these to be sold through the fresh market. The property is in the Alta Irrigation District which distributes water to landowners based on a formula established each season by the district. The Property is entitled to 100% of the water allocated to it based on the formula. Furthermore, a second source of water is supplied via two groundwater wells. The combination of surface water and groundwater is expected to meet the irrigation requirements on the property for long-term sustainability and productivity of the citrus grove.