Boonville, CA 95415 - Mendocino County

Published Reserve Price: $4,900,000

The 1,942 acre South Rancheria Creek property is a rare North Coast redwood investment-grade tree farm, located along Mountain View Road, within a two-hour drive of San Francisco and in the heart of the Anderson Valley, renowned for its vineyards. The tree farm is within five miles of historic Boonville, which has an airport that can accommodate private aircraft, and is a 45-minute drive to the Mendocino Coast. There are 3.1 miles of Rancheria Creek frontage, and 11 legal parcels within the Tree Farm which could provide significant conservation values through obtainment of a Working Forest Easement which would restrict harvests near South Rancheria Creek, and limit parcelization of the Tree Farm.

The South Rancheria Creek Tree Farm has a location strategic to domestic log markets in nearby Ukiah, Cloverdale and Willits, with sawmills operated by Mendocino Redwood Company, Redwood Empire, Agwood Mill and Lumber, and Willits Redwood. Additional domestic log markets are to the north in Humboldt County in Scotia, Eureka and Arcata. Export facilities for Douglas-fir are located to the north at Humboldt Bay, and to the south at the Port of Oakland.

The property has been managed as a commercial tree farm by the Seller for over thirty years, and has had no significant harvest activities since 1992. There is an estimated 27,600 MBF of primarily 50- to 70-year old Douglas-fir and redwood, at an average of 14,460 board feet per acre, providing a new owner with near-term cash flow and long-term asset growth.

One-third of the property, or 684 acres, has over 15,000 board feet per acre, with opportunity to undertake some thinning in order to increase growth and productivity. Sixty-four percent, or 17,700 MBF of the Tree Farm, is Douglas-fir and thirty-six percent, or 9,900 MBF, is redwood. North Coast Resource Management (NCRM), as forest manager for the Seller, has updated a 2008 inventory and has prepared a 20-year growth projection, all available in the Supplemental Information Package. NCRM has projected an annual growth rate of 5.1% and has also projected that within the next ten years, the total Douglas-fir and redwood volume will increase to 42,300 MBF, or an average of 22,000 board feet per acre: NCRM has projected that redwood volume will increase to 13,700 MBF and Douglas-fir to 28,600 MBF.