July 23, 2019

Real Estate Investment Trust (REIT) Gladstone Land announced it has added to its Florida holdings with the acquisition of 3,586 acres of farmland and facilities in South Florida for a total consideration of approximately $58 million. 

Under the terms of the purchase, $54.5 million of the total was in cash, while the remainder consisted of 288,303 common units of limited partnership interest in Gladstone’s operating partnership (OP units) valued at $12.14 per unit.

Historically, the property had been used to grow vegetables and as a citrus farm, however, is currently being used for diversified agriculture and primarily for water retention. As is standard, Gladstone entered into an eight-year, triple-net lease with Caulkins Citrus Company Ltd. to manage the farm, which eventually has the potential to be converted into organic production.

“The majority of the Property is currently utilized to retain and prevent water flowing from Lake Okeechobee to the coastal communities, which can have a negative environmental impact,” said Bill Frisbie, managing director, Gladstone Land. “Our tenant, Caulkins Citrus, has a multi-year contract with the South Florida Water Management District, with funding provided by the State of Florida.”

“The Property is adjacent to a large organic vegetable farm that we currently own…” continued Frisbie, “…and the Property has the potential to be converted into prime organic farm acreage in the future; however, our objective is to keep using it in its current purpose for as long as the State of Florida desires.”

This deal represents a new kind of farming deal for Gladstone, adding its first “water farm” to its portfolio. “This is an exciting acquisition for us and one that allows us to form a new relationship in Florida,” said David Gladstone, president and CEO of Gladstone Land.

“We are excited to partner with Gladstone Land on this property and look forward to continuing our management of the Caulkins Water Farm as part of the State of Florida’s comprehensive efforts to improve water quality in South Florida,” said George Caulkins, managing partner, Caulkins Citrus.

“Given our experience in partnering with South Florida Water Management District to bring our water farm online in a timely and cost-effective manner, we plan to use the capital from this transaction to explore additional land investments in the state to retain and treat water and help eliminate discharges.”

This acquisition is the latest in a string of deals building up a significant land bank for Gladstone across the state. Other past deals in Florida include:

~ Two farms totaling 2,669 acres for $15.8 million in June 2015.

~ 691 acres of farmland, including 390 acres of farmable acres in Hendry County, Florida for $3.8 million in November 2015.

~ 401 acres of vegetable growing farmland in St. Lucie County, Florida for a consideration of $5.1 million in July 2016. 

~ 70 acres of Florida farmland, farmed primarily for strawberries, just east of Tampa for $1.7 million in August 2016. 

~ a 1,910-acre farm in Okeechobee, Florida, for $9.7 million in August 2017.

~ and  five farms in southern Florida totaling 5,630 acres for a total consideration of $37.4 million in July 2018. 

On an overall basis this deal brings Gladstone’s total portfolio to 92 farms totaling nearly 80,000 acres across 10 U.S. states, and carrying a value of $733 million. Most farms are located in regions suitable for the production of fresh produce and annual row crops such as berries, however, the company also has extensive holdings in permanent crops including almonds, apples, figs, olives, pistachios, blueberries, and vineyards.

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.