I am a farmer who wants to farm more ground. How can Gladstone Land help me?
Gladstone Land acts as a real estate partner to farm operators. We will purchase land and then enter into a lease with you. We are also able to provide capital for land improvements.
I am a farm land owner who wants to sell my ground. What are my options?
We usually work with sellers to 1) complete a sale-leaseback, 2) assume an existing lease or 3) find a new tenant to farm the land. Our goal is to always keep an existing farmer on the land for as long as they would like.
How long are your leases?
Leases usually range between 3 to 15 years with options to extend. However, we are willing to work with tenants on whatever time range suits them best.
How do you determine rent?
Rents are usually determined from market conditions, prior rent on the property and a capitalization rate based on our purchase price. For example, if we paid $1 million for a farm, we might charge an initial annual rent of $50,000 or 5% of the purchase price.
What types of farms do you usually purchase?
We primarily focus on fruit and produce ground ranging between a purchase price of $2 million to $40 million.
What does your due diligence process look like?
Once we enter into a purchase and sale agreement for a farm, we usually need approximately 45 to 60 days to commission an appraisal, phase I environmental, survey, well tests, water tests, soil tests and a title report. We may also need to review tenant financials and sign a new lease before closing.
Can I do a 1031 exchange?
Yes, we are able to work with sellers to purchase their land in exchange for monthly dividend paying shares of LAND, offering both a tax free and income producing liquid asset option.
Do you work with land brokers?
Yes, we often work with both buyer and seller land brokers.