The real estate crowdfunding platform AcreTrader has launched a new offering for a 246-acre corn and soybean farm located in Randolph County, Georgia.
Fountain Bridge Farm is located in the coastal plains region of Georgia, the state’s expansive and highly agricultural region. This 246-acre farm features among the highest-rated soil of any Georgia farm offered on the platform, which aids in facilitating passive income for investors through crop sales. The farm is irrigated by five center pivots that retrieve water from two on-site wells that tap into the Claiborne Aquifer, which is fed by the Chattahoochie river.
Investors will look to receive passive income through the farm’s potential appreciation in value, the income generated from the corn and soybeans and the lease payments made from the tenant. Because of their high fat and protein content, soybeans are considered to be the most valuable oilseed.
This farm is being acquired as a sale-leaseback agreement, which according to Acretrader is “an arrangement which allows the seller to lease the property back from AcreTrader investors and continue operating on it. This allows the farmer to access landlocked capital for use in another part of operations while maintaining a long-term interest in the land.” A clause allowing for the lease rent to be renegotiated and increased between the third and fifth years of the agreement is included, creating potential increased revenue for investors.
- Minimum investment: $10,110
- Target IRR: 8.1%
- Target cash yield: 3.6% gross, 2.2% net
- Target investment term: 5 to 10 years
Since its inception in 2017, AcreTrader has been one of the premier crowdfunding farmland investing platforms in the market. After recognizing both the historically strong returns and low volatility of farmland combined with often-high financial barriers, AcreTrader has made it possible for average investors to buy into this lucrative market.
Investment in farmland often acts as a hedge against inflation. Since 1990, the first year of the farmland investment index, there has been a positive return every year, making this asset class increasingly attractive for investors looking to diversify their portfolios.
Find details on this real estate investment offering and others on Benzinga’s Alternative Investments Screener.
Photo: Courtesy of AcreTrader