Promised Land Expands Opportunity Zone Investment in Farmland with $29mm North Carolina Acquisition

Rhea-AI Summary

Promised Land Opportunity Zone Farms I, LLC acquired 4,528 acres of cropland in eastern North Carolina for $29 million. This strategic investment aims to boost economic activity and labor opportunities in the area. The newly added land enhances Promised Land's portfolio to approximately $53 million, spanning 8,300 acres across multiple states, including North Carolina and Illinois. The farmland includes over 4,000 tillable acres and is poised for capital improvements such as drainage, irrigation, and grain storage. Farmland Partners Inc. (NYSE: FPI) manages the property, leveraging scalable investment opportunities.

Positive

• Strategic acquisition of 4,528 acres enhances portfolio to approximately $53 million.
• Investment expected to stimulate economic activity and job creation in North Carolina.
• Farmland Partners Inc. (NYSE: FPI) manages the property, providing investment scalability.

Negative

• None.

CHICAGO, Aug. 31, 2021 /PRNewswire/ -- Promised Land Opportunity Zone Farms I, LLC ("Promised Land") announced today that it purchased 4,528 acres of cropland in eastern North Carolina for $29 million. The investment will stimulate economic activity and labor opportunities in the region.

"We see great potential in farmland Opportunity Zones and increasing interest from social impact investors," commented John Heneghan, President of Servant Financial, which founded Promised Land. "We are thrilled to add this high-quality North Carolina farm to our existing portfolio of nine farms and 3,800 total acres in Illinois, South Carolina, and Mississippi. Including improvement projects, the portfolio size now approximates $53 million." 

The North Carolina property comprises more than 4,000 tillable acres, which have historically been planted with corn, soybeans, wheat, and potatoes. This large institutional scale asset has high quality soils, reliable water and drainage systems, and center-pivot sprinkler irrigation on approximately half of the tillable acres. Promised Land's planned capital improvements include drainage, irrigation, and grain storage projects.

Farmland Partners Inc. (NYSE: FPI), a leading farmland REIT, serves as Promised Land's property manager. Promised Land's collaboration with Farmland Partners creates a uniquely scalable opportunity zone platform for socially minded investment in an underrated, inflation-protected asset class. Farmland Partners and Promised Land quickly sourced, underwrote, leased, and financed this portfolio centerpiece.

Promised Land was created to acquire, improve, and stimulate economic development associated with farmland located in qualified opportunity zones in the United States ("QOZs"). QOZs are economically distressed communities in which new investments, under certain conditions, may be eligible for preferential tax treatment.

About Promised Land Opportunity Zone Farms I, LLC

Promised Land Opportunity Zone Farms I, LLC is a Qualified Opportunity Zone Business, as described by the Tax Cuts and Jobs Act of 2017. Promised Land currently owns approximately 8,300 acres in North Carolina, Illinois, South Carolina, and Mississippi. Promised Land was founded and is controlled by Servant Financial, a Chicago-based investment management firm. Additional information is available at https://promisedland.fund or (630) 264-0127. 

Owners and brokers with farmland for sale in Opportunity Zones are encouraged to contact Promised Land at info@servantfinancial.com and Farmland Partners at info@farmlandpartners.com

Media contact: info@servantfinancial.com

 

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SOURCE Servant Financial

FAQ

What is the purpose of Promised Land's acquisition of 4,528 acres in North Carolina?

The acquisition aims to stimulate economic activity and labor opportunities in the region while expanding Promised Land's investment portfolio.

How much did Promised Land pay for the North Carolina farmland?

Promised Land purchased the 4,528 acres of cropland for $29 million.

What impact does the acquisition have on Farmland Partners Inc. (FPI)?

Farmland Partners, as the property manager, helps create scalable investment opportunities in farmland, enhancing the financial outlook for FPI.

What improvements are planned for the newly acquired land?

Promised Land plans to undertake capital improvements including drainage, irrigation, and grain storage projects.

How does the acquisition align with Opportunity Zone benefits?

The investment aligns with Opportunity Zone benefits by targeting economically distressed areas eligible for preferential tax treatment under the Tax Cuts and Jobs Act of 2017.