World-Class Oregon Vineyard ~ Multiple Income Stream Opportunity
This specialty vineyard acquisition opportunity offers the buyer a chance to own premium vineyard real estate in the heart of what is widely considered to be Oregon’s most favored American Viticulture Area (AVA.) At the same time, the buyer will enjoy current income from leasing a new build-to-suit winery back to the seller/winemaker. In addition, there is an unusual opportunity for the buyer to gain access to one of the industry’s most accomplished winemakers for the purpose of creating a new world-class wine label.
This “triple-play” Oregon vineyard opportunity offering has been carefully designed to provide the buyer with real estate ownership stability, along with three diversified income streams:
- Sale of premium specialty wine grapes to local high-end wineries
- Commercial real estate lease income from the existing tasting room/guest house, office, barrel storage facility, and adjunct buildings, along with the scheduled build-to-suit winery building (approximately $1.6 million)
- Creation of one’s own wine label and brand; operating one’s own winery under the guidance of a master winemaker
The total investment, including the vineyard, related property improvements, the build-to-suit winery building, and some additional planting, is approximately $2.9 million.
At a time when some conventional investments are increasingly volatile, it can be reassuring to have a multi-faceted package that encompasses an important producing specialty vineyard, commercial real estate lease income, and an opportunity to participate in the centuries-old culture (and business) of fine wines at the highest levels of achievement. This opportunity incorporates all three of these elements in a synergistic package of diversified income streams.
Relatively few vineyards are blessed with the combination of soil, climate, sun-orientation, and vines that it takes to ascend to the high-scoring world of specialty wines. This vineyard is clearly one of them. Vineyard investment fund managers have mentioned famous labels in the same breath as this stellar offering. Located in a most coveted Oregon appellation, this rare property is part of a unique and multi-faceted business opportunity.
This three-part opportunity package includes the seller’s commitment to a long-term lease-back of the build-to-suit winery building and the existing improvements (including the existing tasting room/guest house, office, and barrel storage facility.)
Not included in asking price.
The property, consisting of approximately 20 acres, is nestled within an award-winning Willamette Valley AVA.
The winery facilities lease, which includes the existing tasting room/guest house, office, and barrel storage facility, as well as the build-to-suit winery building with built-in blending tanks, will provide a solid long-term return on investment.
The winery building, which is fully entitled and approved for construction, has been designed by a Portland-based architect / engineering / construction-management team with excellent wine industry credentials.
This vineyard is potentially one of the top competitors in its AVA (American Viticulture Area.) The owner has built solid relationships with winery customers in this appellation. These relationships form a strong competitive advantage.
With respect to the winemaker himself, there is arguably little competition at the level of his accomplishments over more than two decades of award-winning wine product development. He is considered one of the premier consulting winemakers in the world.
Growth & Expansion:
The majority of the vineyard is established and growing nicely. Another part is ready for planting to continue the commercial development process.
Existing relationships with area wineries provide support for selling the future production, and the “Create Your Own Wine Label” program will utilize as much of the vintage as the buyer wishes.
- The “Create Your Own Wine Label” program can start immediately, based on the (negotiated, out of escrow) acquisition of wine from the winemaker’s in-barrel Pinot Noir from the vaunted 2014 vintage. The development of a wine brand in this class is forecasted to produce an internal rate of return of more than 24%.
The real estate and commercial leasing aspects of this opportunity provide solid underpinnings for conventional bank financing if desired, for a creditworthy buyer.
NOTE: The “Build Your Own Wine Label” program is not likely to be a candidate for debt financing.
Support & Training:
The seller will provide personal introductions to selected winery customers.
In addition, and far more importantly, the buyer of this vineyard will be afforded the opportunity to become one of the very few consulting clients of this award-winning winemaker/seller. This level of support goes far beyond the usual “transition support” that business buyers typically receive. It encompasses a complete program of wine product development and branding, aimed at moving the buyer’s wines onto the world stage.
The buyer of this vineyard will have the opportunity to obtain personal one-on-one access to this renowned winemaker, on a consulting basis, for the purpose of developing or improving the buyer’s own wine label and brand.
Wineries vie for the attention of this winemaker, but the buyer of this vineyard will have priority for his services under one of the few consulting contracts awarded each year.
Reason for Selling:
The demand for the seller’s wines and related services has reached the point that he simply must have more winery capacity. He is now ready to commit to a long-term commercial lease of the existing buildings and a “build-to-suit” winery building (which is now “shovel-ready” with plans, specifications, and a detailed construction budget.) He is now in a position to sell the producing vineyard to develop working capital to operate the winery and grow his custom wine-making consulting business.
Mary Martin Miller, CCIM
Licensed in Oregon