The NorCal Vineyards Team has represented buyers and sellers of vineyards and wineries in Napa, Sonoma, Mendocino, and Lake County for over 15 years. It is not necessary to have knowledge about farming to purchase a vineyard. There are dozens of vineyard managers that will handle all aspects, from complete farming to grape sales. There are several types of buyers for vineyard offerings.
The Lifestyle Buyer: This buyer is typically most concerned with the location to amenities. The home and property ambiance are just as or more important than the vines and income is not as relevant. The idea of crushing and bottling a ton of grapes and putting a custom label on the 65 cases may be intriguing. The romance and feeling of living amongst a vineyard are compelling to these buyers.
The Industry Buyer: Typically, several generations of farming or producing wine. The winery segment of these buyers may be willing to pay over perceived market value due to the varietal, appellation or vineyard designate. The farming segment of these buyers are looking for contiguous or close ranches to make for efficient farming operations. Some of these sales happen off market due to long term relationships with neighbors and fellow grape growers.
The Investor: This buyer is attracted to the great rate of returns that many vineyards offer. In Napa and Sonoma, the rate of returns is negatively affected by the high prices of homes and building sites.
We sell vineyards that barely break even to vineyards that have a 12 percent rate of return. We have many relationships with reputable vineyard managers, lenders, and appraisers. Many of our clients only visit their vineyards every few years. Vineyards in the North Coast sell from $30,000 an acre to $500,000 an acre. Why such a discrepancy? The value of the vineyard is dependent on location or appellation as well as the varietal that is planted. An appellation is a legally defined and protected geographical indication used to identify where the grapes for a wine were grown.
Grapes sell from $800 per ton to over $10,000 per ton depending the price that the bottle of wine is going to retail for. Tons per acre range from 1 ton per acre to over 10 tons per acre. Let the NorCal Vineyards Team help you find the perfect fit for your needs.
