Orange Park Vegetable Farm
STATUS
Orange Park Vegetable Farm
STATUS
Sweet corn
Bell pepper
Watermelon
Artichoke
Lettuce
Broccoli
Cauliflower
Available on:
Thursday
1:00 PM Central
Description
The Orange Park Vegetable Farm is a 155.59 acre vegetable farm in Riverside County, California located in the Coachella Valley. This is an opportunity to invest in a property with broad crop optionality and established senior water rights in a region with abundant infrastructure supporting a wide variety of high-value vegetable and fruit crops.
Regional Significance
Riverside County, CA represents one of the most productive farmland counties in California and the Coachella Valley is one of the core production regions of southern California. The Coachella Valley, Imperial Valley, and Yuma Valley are often called America’s winter salad bowl as these regions produce 80%-90% of the United States’ leafy greens and salad vegetables during the winter months. According to the 2022 USDA Census of Agriculture, Riverside County ranks in the top 20 counties nationally for value of agricultural production with over $1.1 billion in products sold as well as being in the top 15 counties nationally for value of vegetable and melon production (~$375mm annually). Vegetables are the second most widely grown crop in the Coachella Valley with over 37,000 acres harvested in 2022. The Property lies in the Mecca Slope region of the valley which is highly desirable for vegetable production due to its soil and microclimate. The Mecca Slope’s uniquely warm microclimate allows for the harvest of high-value vegetable crops earlier than almost anywhere else in the nation, providing a lucrative early market window for growers. The combination of abundant water resources, and a semi-arid climate make this a notable region, suitable for growing a wide variety of crops, including lettuce, peppers, sweet corn, carrots, broccoli, cauliflower, melons, eggplant, grapes and citrus crops. Farmland in the Coachella Valley in close proximity to the Salton Sea, such as the Orange Park Vegetable Farm, further benefits from the “lake effect” from the Salton Sea. Due to the water’s high heat capacity, the solar energy stored during the long, hot summers is released to the surrounding atmosphere in the winter, greatly reducing the risk of frost. During the summer, this role is reversed, providing a much-needed cooling effect.
Why We Chose This Investment
Robust Water Resources
The high-value cropland in the Coachella Valley, including the Orange Park Vegetable Farm, is irrigated using surface water provided by the Coachella Valley Water District (CVWD). The primary source of water for the CVWD is the Colorado River, via the Coachella Canal. California carries the most senior water rights on the Colorado River, with CVWD carrying the 3rd highest priority rights in California. The CVWD delivers up to 433,000 acre-feet of Colorado River surface water annually to approximately 77,000 acres in the Coachella Valley. In addition, CVWD is one of 29 contractors for the State Water Project (SWP). The CVWD’s abundant surface water rights, coupled with proactive water management and a network of replenishment and recharge facilities, have resulted in an increase in groundwater levels over the last decade.
Lease with Experienced Operator
The Property is leased through June 2026 to a large local vegetable grower who has been the operator on the Property since 2011. In recent years, the Property has grown a rotation of artichokes, watermelon, lettuce, broccoli, and cauliflower. The tenant also operates a large packing facility adjacent to the Orange Park Vegetable Farm. A three-year lease is expected to be signed with the same tenant beginning in June 2026 at a base rate of $850 per acre.
Competitive Entry Price
According to Acres 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.
AcreTrader’s Regional Presence
The Orange Park Vegetable Farm represents Acretrader Management’s second offering in the Coachella Valley, which lies approximately 45 miles northwest of the Imperial Valley. Acretrader Management has sourced and managed three properties in the Imperial Valley, including one full cycle exited farmland investment that resulted in a realized net IRR of 15.5%. The complete list of ATM exited investments is available here.
Additional Details
Minimum Subscription Requirement: $1,766,400
Maximum Subscription Amount: $2,944,000
Termination Date: 1/16/2026
Please see the Financials tab and the Investment and Limited Liability Partnership 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
Vegetable crops 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
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.
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