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Hilmar Dairy Operation
Real Estate Transaction ($7,100,000)
Terra West Group facilitated the sale of a fully-equipped dairy operation in Hilmar, CA. The subject was offered as a turn-key operation consisting of land & improvements, a high-quality dairy herd, operational equipment, skilled labor force, cheese contracts, crop leases, contract for the construction of a methane digester system, and an abundance of affordable water resources.
Sale Requirements
The unique challenge of the transaction was arranging the sale of the property at the seller’s desired price, while incorporating a life estate for the primary residence and structuring the sale in such way to be tax-efficient and feasible for both parties.
Aligning Interests
Despite the complexity of the property due to its size and diverse characteristics, Terra West Group successfully met the specific needs of both parties. This involved providing seller carry-back financing to address the seller's tax requirements while offering flexibility to the buyer with their financing arrangements with their lender.
Strategic Solutions
We focused on maximizing the subject value while providing structuring advice to align the interests of both parties. Our inclusive due diligence consisted of evaluations of operational assets, financials, property characteristics, personal property, and local market economics. Additionally, our team prepared crucial legal documents, including the purchase and sale agreement, a life estate arrangement, lease agreement, promissory note, and security instruments.