Malvern Farm
STATUS
Malvern Farm
STATUS
Corn
Soybeans
Available on:
Tuesday
1:00 PM Central
Description
The Malvern Farm is a 181.83 acre corn and soybean farm located in Whiteside County, Illinois. This investment opportunity consists of a historically productive farm at an attractive entry price in a core sub-region of the Corn Belt.
Regional Significance
Illinois is known for non-irrigated production of corn and soybeans, and Whiteside County ranks in the top 20% of Illinois counties and top 3% of counties nationally for production of grains, oilseeds, dry beans, and dry peas. Northwestern Illinois is characterized by rolling topography and productive glacial soils best suited to non-irrigated corn and soybean production.
Why We Chose This Investment
Competitive Entry Price
According to Acres(1) data, we believe this Property is being purchased at a below-market entry price based on available comparable sales of properties of similar size and quality in the same region, which is an active, tenant-dense land market. Please see page 15 of the PPM for details.
Strong Production History
The Malvern Farm benefits from its location in a core farming region of the Midwest, coupled with a robust operator base. The property has demonstrated strong historical corn and soybean production as a result of highly productive soils and annual rainfall. The farm's 172.51 tillable acres carry an average soil Productivity Index of 119.4 and production history from the past two years shows average corn yields of 243 bushels per acre. The farm's productivity is further supported by historically robust rainfall averaging 38.5 inches annually, with 25.4 inches falling during the critical April through September growing season.
Competitive Lease with Experienced Operator
The Malvern Farm has been leased to a neighboring operator for a three-year term at $425 per tillable acre. The tenant farms on three adjacent sides of the property, giving them a strong operational motivation to maintain and improve the farm.
Value-Add Improvement Plan
Included in the capital raise is a $50,000 improvement budget. $25,000 is allocated to remove trees within the fields and along fence lines to improve operational efficiency and increase tillable acreage, as well as to remove and repair several terraces. An additional $25,000 is budgeted for tile drainage improvements in areas identified as having production upside.
AcreTrader’s Regional Presence
Illinois is a frequent sourcing region for AcreTrader (AT). The Malvern Farm represents our 36th offering in the state and 2nd in Whiteside County. AT has sourced and currently manages approximately 5,100 acres in Illinois, including 6 full cycle exited Illinois corn and soybean farmland investments that resulted in realized net IRRs of 10.4%, 10.6%, 12.4%, 14.9%, 17%, and 30.3%, respectively(2). The complete list of AcreTrader managed exited investments is available here.
(1) Acres, is a geospatial land intelligence platform designed to improve land management and purchasing decisions. Using public and private market data, Acres aggregates and analyzes over 150 million parcels of land to enable users to better understand and maximize the value of their property.(2) The referenced IRR calculations are actual and each assumes the start date of the investment was on the closing date for the land acquisition and all other cash flows were recognized on the date AcreTrader LLC initiated the distributions to members. Calculations were i) made after the SPV was dissolved and all outstanding fees and taxes were paid; and ii) made solely at the entity level and may not be reflective of any investor's specific IRR which may differ based on factors specific to each such investor. The information presented above is not intended as investment advice, nor is it a guarantee of any future performance or results. Please note that these alternative investments are considered speculative, involve a high degree of risk, including a complete loss of principal, are illiquid and are not suitable for all investors.
Additional Details
Minimum Subscription Requirement: $1,899,000
Maximum Subscription Amount: $1,139,400
Termination Date: 7/15/2026
5-10 year target hold period is anticipated.
Please see the Financials tab and the Investment and Limited Liability Company Agreement for additional information. The Private Placement Memorandum (PPM) is available in the Documents tab to be viewed or downloaded. The PPM and offering descriptions should be read carefully to fully understand the objectives, risk factors, charges, and expenses of an investment.
Risk Factors
Please refer to the PPM for the full list of risk factors.
Geographic Concentration
The Company’s activities will be limited to acquiring and holding the Property as an investment and are therefore inherently concentrated in a specific geographic location. A stagnant or depressed economy in the area in which the Property is located could adversely affect the value of the Property and the Company’s ability to provide a return or any profit to investors.
Third-party property managers may not be effective
The Manager, on behalf of the Company, may retain third-party property managers who will, under the supervision of the Manager, oversee the day-to-day operations of the Property by the tenants. The success of the Company will, accordingly, depend on the performance of such third-party property managers, and their failure to successfully perform their management duties could adversely impact the Property’s results of operations and could reduce cash available for distributions to Members of the Company.
Crop Risk
Corn and Soybeans are planned to be grown on the Property. These commodities are subject to price volatility that could result in selling prices below break-even for the operator. Commodities are also subject to weather conditions including but not limited to drought, flood, and hail.
Farmland Risk
Farmland investments are also subject to additional risks including volatility in commodity prices, weather events or disease that could damage crops and many other operational factors.
Disclosures
Disclosures
Securities offered by North Capital Private Securities Corporation (“NCPS”), a broker-dealer registered with the SEC and a member of FINRA | SIPC. Their Form CRS can be viewed here.
Alternative asset investing is speculative, involves a high degree of risk, including complete loss of principal, and is not suitable for all investors. Alternative investments are illiquid, not listed on an exchange, and not a short-term investment. Distributions are not guaranteed. Changes in tax law may adversely affect offerings. This offering is a private offering and is not registered under the Securities Act or under any state securities laws or the securities laws of any other jurisdiction. There is no assurance any investment will achieve its objective.
Note that Investors are purchasing shares in a newly formed entity that will purchase this farm but are not purchasing actual acreage of the farm directly. The entity will directly own the farmland. Farmland investments are also subject to additional risks including volatility in commodity prices, water accessibility, weather events or disease that could damage crops and many other operational factors. Economic implications include potential increased production costs and reduced crop yields.
The PPM contains a complete list of all Risk Factors and should be read carefully before investing. The above presentation is based upon information supplied by the seller and others, and some images shown may be used for representative purposes and may not have been taken on location at the subject property. While AcreTrader performs extensive due diligence on the offerings on our Site, certain of the information presented in each offering may have been provided by third party sources. Therefore, AcreTrader Platform, LLC, and its respective affiliates, officers, directors or representatives (the "AT Parties") hereby advise you that while all such third party information contained herein has been provided to us from sources deemed reliable, we cannot guarantee or make representations as to its accuracy or completeness. The AT Parties undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
Please be advised that certain registered representatives of NCPS who are performing sales activities on behalf of NCPS in connection with offerings on the AcreTrader Platform may also be providing services to other entities affiliated with the offerings, including but not limited to the issuer of this or other investment offerings on the AcreTrader Platform. Such services might include, but are not limited to, sourcing real estate, conducting land due diligence, negotiating real estate purchases, preparing marketing and other investor-facing materials, land management-related administrative services and authorizing investments. The registered status of such personnel creates inherent conflicts of interest for a number of reasons, including but not limited to the fact that they may gain financially from your investment, directly through commission payments or indirectly by receiving compensation from the issuer or an affiliate of the issuer. Registered representatives are not presently anticipated to receive commissions in connection with their sales activities for AcreTrader Platform offerings.
Questions? Our team is here to help.