A major recent deal may be an example of a significant new trend – viewing agriculture property as a covered land play.
Beverly Hills based PACT Capital recently announced it secured the nancing for a $362 million acquisition land loan for 1,600+ acres of one of the most coveted masterplan communities in Northern California’s San Joaquin County. The property is entitled for 5,500 residential units and 263+ acres of variously entitled multifamily, mixed-use, industrial, and general commercial real estate located less than 60 miles from San Francisco.
PACT Capital’s advisory team was led by Co-Founders and Managing Partners Adam Mortanian and Tyler Shegerian; Associate Connor Haubursin; and Paul Monsen. The acquisition nancing was provided through a real estate investment banking syndicate.
The buyer, a private family of ce located in Northern California, with holdings in agriculture and commercial real estate, prefers to remain anonymous. The sponsorship engaged PACT Capital and its principals for their particular asset class expertise in managing and underwriting credit for both agriculture and commercial real estate.
In a region where city boundaries continue to expand, the rezoning and conversion of once-productive farmland into future single-family tract, commercial and industrial real estate developments has been trending. The sale of this portion of the master planned community is the culmination of that evolution.
“Many of our clients have used agriculture and farming as a covered land play for decades,” said PACT Capital’s president and CEO Adam Mortanian. “That strategy is proving to be pro table as the speed at which suburbanization is converting farmland to housing has accelerated in the new-era remote work economy.”
Originally planned in the 1990s and now largely considered a residential and commercial real estate crown jewel, the master planned community’s remaining assets, left uncompleted since the 2007/2008 financial crisis, have become a blazing hot commodity in the post-pandemic environment. The community is ideally suited to a hybrid work week in the greater San Francisco Bay Area, with the added allure of a top local school district, larger home and lot sizes, and more affordable home prices.
“Our clients are seeking a relationship that can provide guidance, constructive feedback and a certainty of execution, which is what we deliver,” said Tyler Shegerian, PACT Capital’s chief operating officer. “This transaction is a testament to our mission and unique position in the market of managing and underwriting real estate credit for both agriculture and commercial real estate.”
Learn more at pactcap.com.
