SOLD | Turn-Key Dairy Operation | Hilmar, CA | $7,100,000

OVERVIEW OF SALE:
Terra West Group, Inc. facilitated the sale of a turn-key dairy operation, in Hilmar, CA, which presented an excellent opportunity for the buyer to expand their existing dairy business. The sale included various assets consisting of a quality dairy herd with a long history of genetics, operating equipment, labor force, cheese contracts, crop leases, and a contract for the development of a methane digester system.

PROPERTY DETAILS:
The dairy, permitted for ±1,000 milking cows plus ±600 support stock, consists of ±100 acres of open farmland with a facility featuring a double herringbone milk parlor, ±800 free stalls, commodity barns, a large loafing barn, calf facility, close-up barn, hospital barn and heifer corrals.
Water Resources: The property receives surface water from Turlock Irrigation District with supplemental water provided by a shared TID ag well with neighboring landowners.

SALE REQUIREMENTS:
We were challenged with a unique requirement of selling the property at an acceptable price while incorporating a life estate with the primary residence, and a sale structure that aligned with both parties from a tax planning perspective.

ALIGNING INTERESTS:
Our team is proud to announce that we were able to fulfill each party’s requirements, which included seller carry-back financing to meet the seller’s tax needs while providing flexibility to the buyer for their financing arrangements with their lender.

VALUE PROVIDED BY TWG:
Terra West Group’s approach involved thorough due diligence, market analysis, and strategic planning. We also conducted a comprehensive valuation of the dairy assets, financial economics, and structuring advice to align the interests of both parties. Additionally, TWG prepared essential contractual documents, such as the purchase sale agreement, a life estate, lease agreement, promissory note, and security instruments.

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