Gladstone Land Corporation has paid $15.5 million for 453 acres of farmland in Fresno County, California. Gladstone entered into a leaseback agreement with the seller for a 10-year, triple-net lease that includes a single 5-year extension option. The lease consists of a fixed cash rent component plus a variable rent component based on the gross crop revenues earned on the property. The land acquired has 435 acres of planted pistachio trees.
David Gladstone, President and CEO, said the acquisition would help the company “diversify our portfolio by crop type, which we believe will help reduce risks. The orchard is already in strong production, so we will immediately be receiving rent payments in the form of both fixed cash rents and crop share cash payments based on the revenues earned on the farm.” He said the acquisition brought the company’s total farm purchases to $41m this year.
