Listing #: 14340
2,260 Acres M/L

Yakima County, WA
The Blackrock Property
Hwy 24
Moxee, WA 98936

Agents

Adam Woiblet
AgriBusiness Trading Group
509-520-6117
adam@agtradegroup.com
View Agent's Listings

PROPERTY INFO

Description

Located at the upper end of the Moxee Valley in Yakima County, WA, this diverse, irrigated asset totals 2,260 acres m/l and consists of permanent crops with a variety of apples and cherries, as well as modern, center-pivot row crop ground - suitable for potatoes, onions, sweet corn, alfalfa, timothy hay, and dozens of others. With an approximate elevation range between 1,750 feet and 2,150 feet, the property has been well planned and meticulously developed including two on-site controlled atmosphere storage facilities, 34 wind machines, as well as senior water rights (first in time, first in right), and is serviced by a network of six deep wells with interconnected main lines. 

The Blackrock Property offers incredible diversity and opportunity. Of the approximately 533 acres m/l in permanent crops, 52% of the apples and cherries are currently USDA Certified Organic while an additional 40% of these crops are in the organic transitional stage and will be certified in 2019 and 2020. The property also consists of approximately 805 acres m/l planted to row crops under 9 center pivots capable of irrigating 817 acres m/l. With water rights for 1,900 acres, approximately 470 acres m/l remain open and suitable for additional tree fruit, hops, and/or wine grape development.

Please visit TheBlackrockProperty.com for more details, videos, interactive maps, and more.

Please refer to the Offering Memorandum in the Attachments section below for full property details and maps.

Farm Details

Property Highlights:

-  Approximately 533 acres m/l in permanent crops
-  Approximately 805 acres m/l in row crops
-  Approximately 470 acres m/l are idle/open with permanent crop development potential
-  Six deep wells pumping from basalt formation aquifers
-  Water rights for irrigation of 1,900 acres
-  Nine center pivots irrigating 817 acres m/l of row crops
-  Approximately 85 acres m/l of reel line irrigation
- Two modern, computer monitored Controlled Atmosphere Storage Buildings on site with 1,900 bin and 2,000 bin holding capacities per room (total holding capacity of 23,400 bins)
- 34 wind machines
- Three separate laborer quarters/homes
 

Permanent Crops

Optimal elevations, favorable slope and aspect of hillsides, excellent soils, and abundant water rights make this property a tremendous permanent crop asset.
Approximately 52% of the apples and cherries are currently USDA Certified Organic. An additional 40% of the apples and cherries are in the organic transitional stage and will be certified in 2019 and 2020. This provides an established, yet niche opportunity in an ever-expanding global market where demand remains high and continues to grow.
On-site, modern, controlled atmosphere storage coupled with immediate access to efficient travel corridors and outlets to major markets is a distinct benefit of the property.
A variety of apples (including Golden, Red, Honeycrisp, Gala, Fuji, and Granny) and cherries (including Skeena and Sweetheart) are currently planted on the property. The majority of these crops are on highly dwarfing rootstock with high density, seven-wire, vertical trellis systems with one to three leaders per tree post.
 

Water & Irrigation

The property is being sold with water rights for irrigation of 1,900 acres, along with six irrigation wells which pump from basalt formation aquifers.
The Wanapum Formation aquifer is located between 500 and 1,500 feet below ground, and supplies two of the water rights, Nos. CG4-01330C and G4-25540C. These rights are documented for a total of 2,748 gallons per minute (gpm) -- 2,916 acre-feet per year (ac-ft/yr) for irrigation of 1,000 acres.
The Grande Ronde aquifer, located immediately below the Wanapum aquifer, supplies water rights for 5,228 gpm -- 3,800 ac-ft/yr for irrigation of an additional 900 acres. The water rights are authorized by No. CG4-26162(A)P@2.
The irrigation water rights being conveyed with the property, in total, are documented for 7,976 gpm -- 6,716 ac-ft/yr for irrigation of 1,900 acres.
The controlled atmosphere storage buildings located on the property are supplied water from a dedicated source well which is six inches in diameter and 830 feet deep. The shop and office facilities are also supplied by a dedicated source well which is six inches in diameter and 656 feet deep.
 

Controlled Atmosphere Storage Buildings

The property includes two controlled atmosphere (CA) storage buildings in great condition. Both CA buildings are high-tech, computer monitored, and precisely controlled.
These modern storage buildings combine cold refrigeration with a reduction in oxygen and ethylene scrubbers to effectively put apples "to sleep" for up to 11 months.
There is a drive-through drencher system conveniently located near the center of the orchard complex, north of the CA buildings. The drencher efficiently washes dust and leaves off apples prior to storage, as well as acts as a hydrocooler for cherries, immediately pulling field heat from the crop prior to transport.
CA Storage Building Details:
-  Outer dimensions are approximately 164 feet by 130 feet by 31 feet.
-  East building consists of six storage rooms (each with 9.5 ft by 12 ft doors), single wall construction, and has a holding capacity of 1,900 bins per room
-  West building consists of six storage rooms (each with 9.5 ft by 12 ft doors), double wall construction, and has a holding capacity of 2,000 bins per room
 

Land Characteristics

Soils
The soils on the property are exceptional in several ways:
1)  More than 80% of the soils have silt loam textures throughout the depth of rooting. The silt loam texture class has the highest available water-holding capacity of any soil texture class, and therefore, the water use efficiency and soil resiliency to drought stress are very high.
2)  Almost 67% of the property has soils that are greater than 60 inches deep with no root-restricting layers or bedrock. In addition, approximately 20% of the balance of the property consists of Willis soils, which still have roughly 30 inches of rooting depth to a hardpan and the rooting zone again has the highly favored silt loam texture mentioned above.
3)  All of the soils on the property are developed from freshly crushed granitic minerals and exist in a semi-arid grassland ecosystem. Thus, inorganic nutrients are in abundant supply, the root environment is rich in available calcium, and the content of humus and organic nitrogen is low to moderate. All of these features are outstanding for the production of permanent crops under drip irrigation because plant health is promoted by high availability of inorganic elements, but vigor of the crops and ripening of fruit can be controlled by carefully tailored applications of nitrogen and water throughout the growing season.

Elevation
The elevation of the property ranges between an approximate low of 1,750 feet and a high of 2,150 feet. The vast majority of the existing permanent crop plantings lie above 1,860 feet which minimizes the impact of winter cold weather events.

Slope
Approximately 80% of the property consists of highly farmable, gentle to moderate slopes of less than 12% grade. In addition, approximately 9% consists of very farmable slopes with a 12% to 18% grade. Finally, only slightly more than 11% of the property consists of slopes with an 18% grade or higher.

Aspect
The rolling topography of the asset translates to a variety of slope aspects:
-  Approximately 60% of the property consists of highly favored slopes facing southeast, south, and southwest.
-  Slopes facing northeast, north, and northwest make up approximately 28% of the property.
-  East and west facing slopes comprise approximately 13% of the property.
 

Recreational Opportunities

Since acquisition, the owner has developed tremendous wildlife viewing and hunting opportunities on this unique property. Careful management of grazing coupled with improvements of water sources and distribution have led to a substantial increase in game and non-game species.
Doves, Hungarian partridge, chukar, and quail are all well established and have huntable populations throughout the property. Ample cover allows for outstanding upland bird hunting if you have experienced canine partners. There is also an opportunity to establish pheasant with released birds as plenty of food, cover, and water is available.
Big game opportunities, particularly for elk, are excellent. The property is situated adjacent to the Yakima Firing Range (managed by the US Army) and the Arid Land Ecology (ALE) unit (managed by the US Fish & Wildlife Service). Hunting is extremely limited on the firing range, and there is no hunting on the vast ALE, so the elk population has exploded in the past 25 years and continues to expand. The owner has an agreement with the Washington Department of Fish & Wildlife (WDFW) allowing a number of landowner depredation tags for both bulls and cows. Further, the property permits WDFW to award through its annual big game tag lottery system, a youth hunt and general hunt tags for the public. This property has traditionally yielded a 75% success rate when hunting elk, as opposed to the statewide elk hunting success rate of approximately 7% in the general session and 25% for special permits.
In addition to elk, there are native mule deer - several very large, heavy bucks have been taken over the years. The circle pivot rotation ground has been dominated with timothy hay, alfalfa hay, winter triticale (cut for haylage), and silage corn. These irrigated crops have proven to be extremely attractive to big game in this eight-inch native rainfall zone.

Directions

From the intersection of Interstate 82 and Highway 24 in Yakima, travel east on Highway 24 approximately 20.8 miles. The property is located along the north side and south side of Highway 24.

Additional Info:

Sealed Bid Process Summary

-  Property viewings are by appointment only; tours begin on October 8, 2018.
-  Sealed bids shall be delivered to AgriBusiness Trading Group by 5:00 PM PST on Friday, November 30, 2018.
-  Close of escrow shall take place on or before March 15, 2019.
-  Due diligence materials are available upon Bidder's execution of Seller's Confidentiality & Non-Disclosure Agreement to be provided by AgriBusiness Trading Group or Peoples Company upon request.
-  Property tours, sealed bids/offers, and due diligence inspection shall be directed through AgriBusiness Trading Group and Peoples Company.

Details

  • General Area: Moxee Valley
  • Net Taxes: $59,389.00
  • Auction Date: Nov 30, 2018
  • Possession: At Closing

Auction Details

Please review the Terms & Conditions in the Offering Memorandum in the "Attachments" section of the website below for complete details and further clarification. The Auction Details immediately below are meant to be a summary of the Terms & Conditions and should not be construed as an official copy of the Terms & Conditions. Please contact the Listing Agent(s) with any and all questions.

Seller:  BZ Blackrock, LLC

Sealed Bid Submittal Process & Deadline:  Sealed bids will be due in AgriBusiness Trading Group's office, at the below address, prior to 5:00 PM PST, on November 30, 2018.

Adam Woiblet
AgriBusiness Trading Group
2330 Eastgate Street, #155
Walla Walla, WA 99362
509.520.6117
Adam@AgTradeGroup.com

Sealed bids shall be submitted on the 'Sealed Bid Submittal Form' found at TheBlackrockProperty.com or by contacting AgriBusiness Trading Group or Peoples Company. Sealed bids can be submitted via mail or email.
Within three (3) business days after the bid deadline, Seller will select the best five (5) bid submissions/offers (at Seller's sole discretion). Selected bidders will be invited to participate in a second round of bidding. Second round bids will be due on December 14, 2018 at 5:00 PM PST. Seller will select the successful bidder from the second round of bidding, and the successful bidder will be notified within three (3) business days. Upon notification, the successful bidder will be required to submit documents which demonstrate bidder's financial bona fides and ability to perform at the proposed purchase price.

Earnest Money, Due Diligence, Closing Date, & Possession:  Within three (3) days of notification of being the successful bidder, Buyer and Seller will fully execute a Real Estate Sale and Purchase Agreement ("Purchase Agreement"). Upon execution of the Purchase Agreement (the Effective Date), Buyer will deposit with Escrow and Closing Agent, Columbia Title Company, the required Earnest Money Payment equal to five percent (5%) of the Purchase Price, payable in the form of guaranteed check or wire transfer. As of the Effective Date, Buyer will be entitled to a Due Diligence Period of no more than sixty (60) days. Close of escrow shall occur no more than thirty (30) days after the end of the Due Diligence Period. Balance of the Purchase Price will be payable at the time of Closing in the form of guaranteed check or wire transfer. Possession of the Property will occur at Closing.

Closing Expenses & Prorations:  Buyer and Seller shall share equally all escrow fees and other closing fees and costs. Seller shall pay real estate taxes for the transfer of the Real Property and the premium for a standard owner's title insurance policy. Any additional title insurance coverage or endorsements requested by Buyer or its lender(s) will be paid by Buyer. Buyer shall pay all recording fees and all applicable use/sales tax on the Personal Property (if any). All real estate taxes accruing through date of Closing will be prorated as of Closing and will be paid in full by Seller as a credit to Buyer on the Settlement Statement. All real estate taxes accruing after the date of Closing will be the responsibility of the Buyer.

Title to Property:  Seller shall convey good, marketable, and insurable fee simple title to the Property to Buyer free and clear of all liens and encumbrances, subject only to title exceptions as laid forth in the Purchase Agreement. Within twenty (20) days after the Effective Date of the executed Purchase Agreement, Seller shall, at its sole expense, furnish a commitment to issue an ALTA title insurance policy in the amount of the Purchase Price. Seller shall provide Buyer a copy of such title commitment and all associated documentation promptly upon receipt. Title to Real Property shall transfer pursuant to a Statutory Warranty Deed subject to property taxes not yet due and payable, utility easements, right-of-way easements, or other restrictions of record. Title to Personal Property shall transfer by Bill of Sale subject to restrictions and reservations of the Purchase Agreement and in a form reasonably acceptable to Seller. Quit Claim Deeds will be utilized to convey title to all water rights associated with Certificates which have been put to beneficial use. Assignment forms will be prepared to convey title to all Permits, Change Authorizations, and Applications. Water Rights shall be transferred by a Water Rights Quit Claim Deed and/or Assignment of Application or Permit to Appropriate Stored Water.

Leases:  All leases on the Property have been terminated, and the land shall be made available upon date of Closing.

Farm Program Information:  Farm Program Information is provided by the Yakima County Farm Service Agency. The figures stated in the marketing material reflect the best knowledge of the Seller and its representatives; however, any and all Farm Program Information is subject to change if/when the Property is reconstituted by the Yakima County Farm Service Agency.

Survey:  The Property is being offered as 2,260 acres m/l. A survey of the Property will not be completed by the Seller prior to close. If a potential bidder or the successful bidder/Buyer desires to obtain a survey, it will be at the bidder's and/or Buyer's sole expense.

Current Use Status:  If the Property is in a Current Use Status, Buyer will continue the Current Use Status after Closing. If Buyer elects to discontinue the Current Use Status, Buyer will be responsible for any resulting taxes, penalties, and interest associated therewith.

Disclaimer:  All information contained herein, and all related materials, are subject to the Terms and Conditions outlined in the Purchase Agreement. Buyer acknowledges, and represents and warrants to Seller, that Buyer has assessed, or has had the opportunity to assess all aspects of the Property, and Buyer is not relying on, nor has Buyer been influenced by, any statement or representation or warranty of the Real Property or Personal Property and the satisfaction or waiver of all Buyer's conditions to Closing will be evidenced solely by the Closing of this transaction and without any other act or confirmation by Buyer. Seller hereby disclaims any and all warranties of habitability, merchantability, and fitness for particular purpose, expressed or implied. Buyer is acquiring the Real Property and Personal Property "AS IS, WHERE IS, AND WITH ALL FAULTS" in its current condition existing as of the Closing Date, without any representation, warranty, promise, covenant, agreement, or guaranty of any kind or nature whatsoever by the Seller or its representatives, whether expressed or implied, oral or written, past, present, or future, of, as, to, or concerning any aspect of the Real Property or Personal Property.

Acknowledgment:  By signing and submitting the Sealed Bid Submittal Form, the Bidder acknowledges and accepts the Terms and Conditions referenced in the Offering Memorandum. If Bidder's offer is accepted, Bidder agrees to enter into a Purchase Agreement with Seller upon notification of successful bid. A copy of the Purchase Agreement to be executed by Seller and Successful Bidder is available upon request to review prior to completing the sealed bid process. The Purchase Agreement is not subject to negotiation.


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