Case Studies

Terra West Group facilitated the sale of a vertically integrated ±5,520-acre commercial farming enterprise known as the Sierra Delta Ranch strategically located off Hwy 12 in Isleton, CA on Brannan Island. This subject offered a complete labor force, essential equipment, multiple farm structures, a diverse revenue stream generated from various property uses, and an abundance of affordable water resources.

Sale Requirements

The unique challenge was to sell the property at the seller’s desired price, while meeting the buyer’s requirement of a sale-leaseback structure and the procurement of a long-term crop lease with a credit tenant prior to the close of escrow.

Aligning Interests

Despite the complexity of the property due to its size and diverse characteristics, Terra West Group successfully aligned the interests of multiple parties. This was achieved through a sale leaseback arrangement that involved selling the property to a national agricultural real estate investment firm while also securing a long-term crop lease with a known large tomato processing company as the primary tenant operator.

Strategic Solutions

Aimed at maximizing the value of the subject property, we performed a comprehensive analysis based on the economics and property characteristics to determine the highest and best use and identify the type of buyer profile to execute the transaction. With dedication to due diligence, we were able fulfill all parties’ demands, successfully orchestrating a complex deal structure involving three distinct parties. 

Transitional Support

Upon closure of escrow and transfer of title, the landowner and tenant desired assistance from TWG to assist with the transition of the operations, logistics while facilitating the liquidation of specific personal property, rolling stock equipment, and the removal of non-operative equipment from the subject property.

Terra West Group was engaged by a prominent national produce brand seeking strategic financial advisory and analysis services in preparation for their business restructuring plans. Our client specializes in growing, processing, marketing, and distributing premium vegetables and value-added products cultivated in a multitude of regions throughout California, Arizona, and Mexico.

Business Background

Our client's company operated under a single business entity handling the bulk raw produce and the value-added product lines.  As the value-added segment continued to grow with success, they recognized the need to continue expanding upon this component of the business to develop a competitive advantage and gain additional market share.

Proposed Objective

Recognizing the need to optimize their operations, improve efficiency, and maximize profitability, they considered splitting the segments into two separate legal operating entities. These divided strategic business units would operate independently from one another, each managing their own product lines, budgets, and strategic planning units.

Strategic Solutions

  • An economic feasibility assessment, quantitative and qualitative analysis, and identification of benefits/costs associated with client’s growth objectives and transition.

  • Collaboration with the corporation’s top-level management to formulate a financial strategy and business plan to separate the strategic business units.

  • Development of a comprehensive financial model and information system incorporating industry performance metrics, enabling the client to measure, evaluate, control, and improve the performance of their business segments.

  • Presentation of materials for the board of directors, summarizing findings, financial analysis, projections, and recommendations for the proposition under consideration.

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.

  • Hilarides Dairy

    “Terra West Group provides financial and administrative expertise to my business. With the analysis they provide, I am able to make well-informed strategic decisions. Their financial management allows me to focus on day-to-day operations without the added burden of addressing the various financial responsibilities of my business.”

  • Frazier Nut Farms

    “We’ve had a long-standing relationship with Terra West Group. Their understanding of our finances and operations was valuable when assessing the existing conditions and opportunities pertaining to our real estate portfolio and business. Terra West Group acted not only as our real estate representative but also as our financial advisor and worked closely in collaboration with our CPA and attorney. The insight and knowledge they brought to the table was valuable.”

  • Silveira Holsteins

    “Terra West Group delivered exceptional results in managing the sale of our dairy operation. Their understanding of the dynamics of the dairy industry, markets and business gave us peace of mind. We trusted them to navigate the complexities of our sale, and they delivered beyond our expectations. I highly recommend Terra West Group to anyone in need of professional real estate services.”

  • Golden Sand Orchards

    “It was such an advantage working with the Terra West Group as our representative because of their financial experience and agricultural backgrounds. They understood what we needed and helped us find a property that fit our business operation needs.”