- 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.