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Property Types
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Premium wine grape vineyards and other wine industry real estate assets |
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Purchase Price
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100% of fair market value of the land and improvements |
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Transaction Size
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Minimum investment is generally $2 million |
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Property Location
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All major wine grape growing regions in the U.S. and Canada |
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Consideration Paid
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Cash, assumption of existing debt, Operating Partnership Units, or a combination of the three. |
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Lease Type
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Triple Net—lessee is responsible for operating expenses, taxes, insurance, utilities and ordinary repairs & maintenance |
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Target Initial Term
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5-10 Years |
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Renewal Options
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3 x 5 Years each |
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Annual Rent
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10-year U.S. Treasury Note at close of escrow, plus a number of basis points to be agreed reflecting lessee credit quality |
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Annual Rent Escalation
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CPI-based or pre-agreed fixed escalation |
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Lessee Repurchase At End of Lease
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Either, right of first offer at fair market value, or option to purchase at pre-agreed price—which affects potential tax deferral and GAAP accounting |
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Capital Improvements
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VWT will provide CAPEX financing for planting and improvements, with the capital being added to the lease
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Additional Rent in Initial Term
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1% of purchase price in the form of prepaid rent
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