Big farm deal: $171M for 14,500 acres in Eastern Washington

There’s a lot of interest in agricultural land in the Columbia-Snake rivers system.

  • Wendy Culverwell Tri-City Herald (Kennewick, Wash.)
  • Tuesday, September 25, 2018 6:04am
  • BusinessNorthwest

By Wendy Culverwell / Tri-City Herald

KENNEWICK — In a deal that trumpets the soaring value of Mid-Columbia farmland, a Louisiana investor just finished one of the largest real estate transactions in recent memory.

A limited liability company associated with Angelina Agriculture Co. of Monterey, Louisiana, paid nearly $171 million for a 14,500-acre swath in southwest Benton County.

The company bought land in the 100 Circles area of the Horse Heaven Hills, near the Benton-Yakima county border. The terms represent a sizable payday for seller John Hancock Life Insurance Co.

The Boston-based insurance company paid $75 million for the mix of irrigated and non-irrigated land in 2010.

Interest is big for high-value farmland on the Columbia-Snake system, said Darryl Olsen, executive director of the Columbia Snake Irrigators Association.

Investors and lenders want agricultural land for long-term investments, Olsen said.

They like what they see in the Mid-Columbia — private land with confirmed water rights, a vast food processing network and infrastructure to move products to international markets by road, river and rail.

“There is a lot more confidence in irrigated ag on the main stem of the Columbia-Snake system than there is anywhere else,” Olsen said. “It’s a very unique model for integrated agriculture.”

A tax statement filed with the deal shows the sale closed Aug. 28, 2018. The deal brought in $2.1 million in excise taxes for the state, $427,000 for local government and a $5 “state technology” fee.

The change in ownership has not yet recorded in the county’s online property information system.

An attorney for the new owner confirmed the sale to the Herald and said the new owners won’t change the current use.

The land is used to grow potatoes in rotation with sweet corn and wheat.

Lamb Weston, the frozen french fry giant with processing plants in Richland and Hermiston, is one buyer of the land’s harvest.

Property records show John Hancock’s holdings include almost 10,500 acres of irrigated farmland, 3,900 acres of rangeland and about 140 acres of other land, including home sites and pasture.

Assuming the insurance company sold all its holdings, the price averages $11,800 per acre, which is consistent with the mix of irrigated and dry land, said Don Moody, a land broker with CBRE, a commercial real estate brokerage.

Mid-Columbia farmland commands $10,000 to $15,000 an acre, depending on the condition, improvements and the availability and source of water.

High-value farmland with water rights can command up to $17,000 an acre, Olsen said.

Moody confirmed investors are interested in agricultural land.

“If you have a good site and you have water, there is a real appetite for good farmland right now,” he said, adding that institutional investors tend to try to keep their deals quiet. Even so, the 100 Circles price is attention-worthy.

“$171 million deals are rare anywhere until you get to downtown Seattle or San Francisco or Los Angeles,” he said.

The excise tax document identifies the buyer as 100C LLC, which incorporated in Delaware in April. Investors often create LLCs to own their real estate investments.

100C shares a Monterey, La, post office box with Angelina Farm Partnership, a.k.a. Angelina Agriculture Company.

A public records search shows Angelina has a Kirkland, Wash, postal address in connection with land it owns in Louisiana. There is no clear business interest in Washington.

The Angelina website redirects visitors to Oak River Farms, a property management firm focused on agricultural land.

R. Clay Powell, Oak River’s chief counsel, confirmed it will manage the property on behalf of the buyer and that the use will not change.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.