Gladstone Land, the listed farmland real estate investment trust, has acquired 417 acres of land in Florida including 271 organic farmable acres, for $3.2 million.
Gladstone has entered into a 10-year lease with current operator Wish Farms, which specialises in vegetables and berries. Gladstone has also committed to providing extra capital for upgrades and development taking the total investment size to $4.5 million, according to a press release.
The acquisition is expected to generate a cash capitalisation rate of 6.6 percent over the term of the lease.
“We are privileged to expand our partnership with such an esteemed grower that is an industry leader in organic farming,” said Bill Frisbie, managing director at Gladstone. “We now own 34 farms across the US that produce a variety of high-value fruits and vegetables.”