A large olive orchard in Yolo County sold last week to a Virginia-based real estate investment corporation.
Gladstone Land Corporation announced the $9.2 million purchase of 542 acres of farmland from Chico-based California Olive Ranch in a news release.
“We are very pleased to enter into a new region in California, the Sacramento Valley,” Managing Director of Gladstone Land Tony Marci said in a prepared statement. “This purchase of a high-quality olive orchard with a history of strong yields is an excellent addition to our portfolio.”
The farm site contains a dense 482-acre olive orchard, according to the release. Gladstone will enter into a 15-year lease with California Olive Ranch, which specializes in producing extra virgin olive oil.
“This acquisition enters us into a new region in California with a new permanent crop type and another very strong tenant,” Gladstone Land president and CEO David Gladstone said in a statement. “Our tenant, California Olive Ranch, is a leader in the industry of premium olive oil. ... We think they are an ideal partner for us as we continue to add new crop types to our diversified farmland portfolio.”
Gladstone owns 90 farms in 10 states, including California, but last week’s acquisition marks its first step into the Sacramento-area market.
The real estate corporation is in the business of buying farmland and renting it out to farmers. Gladstone estimated its portfolio – about 75,886 acres of land – is worth approximately $666 million.