July 12, 2019

Two announcements out of California have caught our attention this week, one an acquisition, and the second, a sale.

Gladstone

Gladstone Land Corp. announced it has acquired 324 acres of farmland in Salinas, California, for $9 million. The farm had previously grown vegetables and strawberries, and as part of the transaction, Gladstone has entered into a six-year, triple-net lease with Wish Farms.

Founded in 1922 and based out of Plant city’ Florida, Wish Farms is a year-round supplier of strawberries, blueberries, raspberries, and blackberries. 

“We are very pleased to acquire another property in Salinas, California,” said Tony Marci, managing director of Gladstone Land based in Salinas.  “This purchase builds on our relationship with Wish Farms, who is a current tenant of ours, and allows them to expand their California operations.”

The farm includes both organic and traditional acres, with 20 percent of the parcel dedicated to organic production, strengthening Gladstone’s position in a growing category with sales of organic fruit and vegetables increasing 8.7 percent last year, according to United Fresh Produce Associations FreshFacts Report, and three out of five consumers saying they now buy organic food, creating a $50 billion industry. 

Parallel to this, the number of U.S. organic farms continues to climb, rising to 14,000 in 2016 – a 56 percent increase over 2011, according to data from the USDA’s National Agricultural Statistics Service (NASS). And amid this landscape, California leads the nation with the most organic farms.

“This acquisition adds to our many farms that grow healthy fruits and vegetables,” said David Gladstone, president and CEO, Gladstone Land. We now own over 76,000 acres of farmland that are 100 percent leased to tenants who we believe to be great farmers, such as Wish Farms.”

N3 Cattle Company

Two hours north, in the Bay Area, the 51,000 N3 Cattle Company has been listed with Outdoor Properties for $72 million. 

The parcel, which is the size of San Francisco and spans the four counties of Alameda, Santa Clara, San Joaquin, and Stanislaus, represents the largest sale of a piece of land in the state. Located 40 miles outside of Oakland, the ranch has the capacity for 1,500 cow and calf pairs, and includes meadows, woodlands, ponds, outcroppings, a four-bedroom home, and various cabins for employee housing.

The land has been in the same ranching family for four generations, purchased in the 1930s and 40s by Roy Edgar “Ted” Naftzger, Jr. and his mother, and greatly expanded in the 1980s. After 135 years of the family running operations across California, Oregon, and Arizona, sisters Sandra and Natalie Naftzger Davis have decided to sell, preferably as a single parcel.

“We are getting tons of interest from possible buyers,” Todd Renfrew, broker and principal owner of listing agent California Outdoor Properties told East Bay Times.  “A lot of them want to buy sections of the ranch,” adding, “The family wants to sell it whole and keep it together.”