Davis 190 LLC
California Almonds
Almonds don’t grow just anywhere. Almonds require the right mix of climate, soil type, water and infrastructure of harvesters, packers and shippers.
California supplies more than 80% of the worlds almonds. The risk to invest in Almonds is low because finding appropriate land with water, climate, soils etc. is difficult.
Price & Demand
The growth in Almond demand over the last 10 years has doubled shipments of California almonds. In the 2005/2006 growing season, shipments were 914 million pounds. In the 2014/2015 growing season, shipments were 2,100 million pounds. Revenue growth in almonds has surpassed grapes as California’s biggest agriculture commodity and number one
crop export.
Average Pricing on Almond Products:
16oz of Almonds: $7.52
16oz of Almond butter: $7.99
64oz of Almond Milk: $3.79
Water
Irrigation Water in California is the major AG problem going forward. Our investment criteria is to have two sources of water such as an irrigation district and on-site water well. Several new laws and regulations have been enacted recently that make properties with quality water resources much more valuable.
As water becomes more scarce and expensive, farmland with a sustainable water supply becomes an exporter of water. Farmland is a way to invest in water. Arable land with good water will become more valuable.
Investor Fact Sheet Summary as of August 1 , 2017
Investing in AG
The reduction of farm land is a global trend due to urbanization, water scarcity and environmental factors. We need to produce more food on less land. Some estimates state that food production needs to double by the year 2050 from current levels. Each acre of farmland needs to be more productive and produce higher yields.
With the increase in world population, rising per capita incomes and a trend to Western diets, demand for food will increase and will push food prices higher. Agricultural land is emerging as a compelling investment that offers opportunity for stable returns with a low correlation to other, traditional asset classes and provides inflation protection.
The Opportunity in Almonds
Almonds are not just a snack nut. They are also an ingredient in today’s heath conscience life styles and diet changes. According to the California Almond Board, the average person eats 2 pounds of nuts each year up from 1.3 pounds in 2008. The trend to less processed food promotes almond use in a variety of ways, including protein snacks, baking flours, milk alternatives, beverages and oils. All of which are good for the body. Almonds are used as heathy alternatives for many nutritional programs like diabetes, gluten free diets and weight management.
See The California Almond Board at www.almonds.com.
The Property
Investment Objectives
Today, we are investing in 5th leaf almond orchards. It takes 3 years for the trees to mature to produce a first crop of almonds that is profitable. We believe these young orchards offer an opportunity to acquire a stable asset that’s in a position to cash flow in the first year of our ownership. Additionally, we believe that buying farm land with a reliable water supply will be a value add for the future. The properties will be managed by local, professional farm managers.
Growing demand for food, limited supply of land, limited availability of land and water for new plantings should produce higher long term returns for both the almonds and the farm land. Today’s lower land prices are an opportunity to buy.
Offering Size: $3,600,000
CPFAG and affiliates Co – Investment: 2% of the offering amount
Anticipated Leverage: A long term loan of 50% +/- of the acquisition price
Minimum Investment: $50,000
LLC term: Long term 10+
Investor Reporting: Quarterly reports posted to web site. Semi-annual property reports. Distributions semi-annual
Target investor return: 12% + Cash on Cash
First Return to Investor: 8% first return of cash distribution
Manager incentive Fee: after first return 30% of the profits
If you are interested in finding out more, please contact:
Sam Sadat: (310) 451-4222, Ext. 3 or sam@samsadat.com
Ron Klein: (310) 451-4222, Ext. 5 or ron@samsreclub.com
Disclaimer: This Executive Summary is meant to be read in conjunction with the Private Placement Memorandum (PPM) as well as the LLC agreement, both available upon request. Any forecast of yields and / or forward looking projections are for illustrative purposes only. Actual results may vary substantially. Investors must always do their own due diligence. This information is subject to change prior to closing.
