Fawn Creek Pistachio Orchard
- 9.5%
Target Net IRR
- 8.0%
Net Cash Yield
- 2.1x
Net Equity Multiple
- 10 years
Target Hold
- 40.0%
LTV Ratio
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Fawn Creek is comprised of 60 contiguous acres in Tulare County, California, approximately 4 miles north east of our Deer Creek Pistachio Orchard - both located in the same county. Of the 60 gross acres, 100% are planted to Golden Hills variety pistachios. Half the trees were planted in 2016 and the other half was planted in 2018.
This deal is modeled as a 10-year hold with a target net IRR of 9.5%, a target net average cash yield of 8.0%, and a target multiple on invested capital of 2.1x. Net cash yield averages 3.5% in the first five years and 12.5% in the remaining five years. The purchase price is $2,000,000, or $100,000 (5.0%) below the listed asking price. At exit, we believe this will be attractive to large growers and investors.