Grape Advice when Buying a Vineyard

Grape Advice when Buying a Vineyard

Investors who want to make money from this type of agricultural endeavor need to be prepared for a complex transaction. Help guide them by finding the right experts and appropriate data.

APRIL 2018 | BY MANDY ELLIS

For deep-pocketed investors who imagine buying a parcel of land and using it to start a profitable agricultural business, owning a vineyard may be their dream come true. A successful vineyard could provide a big payoff—even beyond the wine it produces—but your clients need to be prepared for the complex process of such a purchase. It takes a great deal of due diligence, so know the right questions to ask…

The Californians are coming (to buy vineyards)

This was first published back in 2015. 

Exciting news that Betz Family Winery recently purchased 40 acres of vineyard land in the SeVein project near Seven Hills Vineyard in the Walla Walla AVA. This notable Washington brand joins a prestigious group of wineries including Doubleback, Figgins, JM Cellars, Middleton and others. Read more about the SeVein Vineyards project here. 

While we are preaching to the choir here in Washington, the more riveting news is that California (and others) are taking a long look at other wine-growing regions as the costs of Calfornia vineyard land increase and the ongoing drought continues.

A real estate lodging broker in upstate New York reported that he is seeing interest from California wineries in their wine region. This fall, representatives from a large CA winery group came to look for potential vineyard land in the Walla Walla Valley AVA. Their reaction? Wow, there is a lot of plantable acreage (of course, they were looking at wheat fields, while imagining it with vines.)

Panelists at the 23rd Wine Industry Financial Symposium held in Napa this September, predicted that the Pacific Northwest is on its way to becoming “a hotbed of wine property sales,” reports Paul Franson in his article for Wines & Vines (09/2014).

Interestingly, (moderators) compared Cabernet Sauvignon wines from Walla Walla and Napa, and those from Walla Walla score slightly higher in Wine Spectator ratings but average about half the price.

Other Excerpts:

With both Washington and Oregon seeing new interest in vineyard purchases, Washington has had a greater spread of vineyard prices from low to high compared to Oregon because of greater differences in growing conditions and more diverse planting of varieties.

Even at a high of $75,000 to $80,000 per acre for top Oregon AVAs, and Walla Walla and Red Mountain AVAs, the (PNW) has a long way to go before reaching the prices for top California vineyards.

Recent Washington acquisitions:

2010 Banfi acquired Pacfic Rim Winemakers in Washington

2012 E. & J. Gallo Winery acquired Columbia and Covey Run in Washington

2013 Aquilinia Investment Group acquired Red Mountain AVA land in Washington

2013 Duckhorn Vineyards acquired Longwind Vineyard in Washington

2014 Allan Bros. acquired Sagemoor Vineyards in Washington. 

 

Complete article: http://www.winesandvines.com/template.cfm?section=news&content=139268

Copyright © Wines & Vines

Walla Walla Valley’s Quiet Revolution by W. Blake Gray

"W. Blake Gray revisits the region and finds a thriving winemaking community on both sides of the state line.

Posted Tuesday, 17-Feb-2015

Washington state has always had oddly large distances between its wineries and vineyards. Walla Walla Valley was a part of that picture for about 20 years, but things are moving fast in this section of the Pacific Northwest."

Read the entire article