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Napa Valley vineyard land values, both planted and bare land
Last May I wrote a post about the value of vineyard land in the Napa Valley, Have You Ever Wondered What the Value of Vineyard Lands Are in the Napa Valley or Other Areas of California?. This is the continuation for vineyard values in 2011 and 2012.
Given these are limited resources here for there is a great deal of restrictions on what can be planted, one would expect values to remain somewhat stable. Even given the mess the residential real estate market has suffered during this period, Napa Valley vineyard values have remained strong in 2011 and the early part of 2012.
A recently released report by the California chapter of American Society of Farm Managers and Rural Appraisers shows values by the different quality of plantable ground to be:
Vineyards in prime areas: $225,000 to $300,000 per acre
Vineyards in secondary: $90,000 to $165,000 per acre
Vineyards in fringe areas: $35,000 to $75,000 per acre
Plantable land (countywide): $25,000 to $175,000 per acre
For people who have visited the other California vineyard areas, you may wonder how they compare to the Napa Valley from the same source.
Sonoma County values are between $60,000 to $140,000 per acre
Mendocino County values from $14,000 to $75,000 per acre
The land values report has last year a very good sales year for Napa Valley vineyards and wineries. The sales and prices paid were very strong, with a number of vineyard, winery, and
estate properties trading hands. These sales were driven by the presence of local and international investors including many from China, Hong Kong, Korea and Japan.
From a Napa Register article by Jennifer Huffman
It is estimated about half a dozen winery properties and another 15 to 20 commercial land and vineyards were sold in 2011. But 30 to 40 percent of all sale prices cannot be confirmed because of non-disclosure agreements.
One of the biggest sales was recorded in June when Sloan Estate, an ultra-private winery and vineyard in Rutherford, was sold by owner Stuart Sloan to Goldin Financial Holdings, a Hong Kong-based conglomerate, for $40 million.
Additionally, the Eagle & Rose Estate Winery in Pope Valley was sold for an undisclosed amount, Frazier Winery was sold in April 2011 to Zhang Winery of China for close to $11 million and T-Vine Cellars in Calistoga was sold last May for close to $3.5 million. Approximately 25 acres from a Duckhorn property on Cabernet Lane was also sold in 2011.
In case you are wondering, the highest price I have heard of is in the $300-325,000 per an acre for land in the Rutherford area. One was by Francis Ford Coppla and the the other was by Andy Beckstoffer, two of the Valley’s vineyard all-stars. But given the nature of much of these properties being sold under a cloak of confidentiality, who knows what was the most.
Please tune back in in about another year for another update of a tale that rivals the Falcon Crest saga, how much for a bunch of grapes. cheers cvc