Wine Country Real Estate Blog

I just did a quick snap shot of the Wineries and Vineyards for sale in the Sonoma and Napa Valley areas.  My criteria were simple, I wanted to see the difference between Agricultural land listed in those areas WITH homes – and those WITHOUT homes listed.  What I found supported what I already knew – in that the Sonoma Market is definetely seeing more Vineyard transactions, and more winery properties on the market than Napa Valley.

Understand that the MLS “Search” System is an inperfect science.  Some of these properties are listed as Agricultural, but I can find no evidence that they actually grow grapes on them – agricultural properties, after all, could include ranches for farm animals.

Napa Valley Vineyard Property Available WITHOUT a Home:

By my calculations there are 17 pieces of Agricultural land available that might be suitable for grape growing.  Napa itself has 9 of those listings ranging from 15 million dollars  to $279K.  Calistoga has 2 listings that appear to be suitable ranging from 3.5 million to $259K.  St. Helena, one of the most active areas in Napa has 6 listings that might be suitable for vineyards, ranging from 6 million for 140 acres to $895K for 40 acres which, according to the notes, is not planted with vines.

Sonoma Valley Vineyard Property Available WITHOUT a Home:

By my rough estimates, Sonoma has 22 vineyard / Agricultural properties for sale with no homes on them.  Glen Ellen has 1 listing at 1.25 million.  Healdsburg has 7 listings starting at 12 million and going to $179K.  Petaluma has 5 agriculture properties listed ranging from 2.625 million to $245K.  Santa Rosa has 3 listings for vineyards from 1.9 million to $189k, and Sonoma itself has 6 vineyard possible listings ranging in price from 2.5 million to $195K.  One of these tracts in Sonoma is actually four contiguous parcels for sale comprising 24.38 acres.  So again, just looking at reports will not give you a total picture of what’s available.

Napa Valley Vineyards For Sale WITH Homes

Admittedly there are some gorgeous properties for sale right now.  In Napa there are 44 properties showing in our MLS system with Vineyards and Homes for sale.  Napa has 26 of those listings ranging from 8.5 million to $699k. This lowest priced property has a modest 2 bedroom home on an acre of land that is listed as Agriculture – but it does not appear to be planted.

Down the road in Calistoga there are 6 listings with vineyards for sale and homes ranging from 6.0 million to 1.495 million.  This smallest listing has a 1480+/- Squarefoot 1 bedroom, 2.5 bath home with approximately 6 acres of  vineyards and an olive grove.

St Helena  has 12 listings with vineyards and homes ranging from the most expensive in the area at 24 million to 549K .  The smallest of these listings is a  2 bedroom,  1 bath 1300 square feet home on a little over an acre.  The 24,000,000 is located at 2900 Spring Mountain Road in St. Helena and has 42 acres,  with a 12000 square foot home.  The listing information indicates, “Seven acres of vines producing wines receiving 95 points from The Wine Advocate’s Robert Parker for four years in a row .” Celeste Woo with Pacific Union International is the listing agent for this property.

Sonoma Valley Vineyards For Sale WITH Homes

There are 70 Vineyards with Homes for sale, according to our MLS in the Sonoma Valley area this September.  Glen Ellen  shows 5 properties listed from 5.395 million dollars to 1.25 million. Healdsburg has a good variety of homes with vineyards at 13 ranging from 6.0 million to 499K.
Kenwood  has one listing of a vineyard with a home priced at 4.95 million. Petaluma has it’s fair share of these homes with 21 vineyard / Agricultural listings for sale ranging from 9 million to 499K.  The smallest of these is a modest 3 bedrooms, 2 bath on 2.6 acres that the agent indicates in their notes has possibilities.

In Santa Rosa there are currently 17 listings with vineyards or agriculture ranging in price from 3.9 mill to 325K.  The smallest of these listings appears to have a nice 3 bedrm 2 bath home on 5 un-planted acres.

Sonoma currently has 13 vineyard with homes listed from 9.25 million to 599K.  Many of the people I’m talking to right now are paying cash, and looking for a home with a vineyard at a price at or near 2.0 million dollars.  3638 Lovall Valley Rd Sonoma, CA 95476 is currently listed by Kouros Tavakoli  Decker Bullock Sotheby’s International Realty for 1.895 million.  This property actually has 2 homes on nearly 11 acres ideally located off coveted Lovall Valley Road. Spectacular views of Marin and Sonoma hills. Main home is gated and recently remodeled. The main home offers 4 bedrooms with 2.5 Bathrooms, a sparkling pool, hot tub, and a fire pit.  Might be perfect!

If you’d like to learn more about vineyards in Napa and wineries in Sonoma that are available, please call Mark Stornetta!

The last 12 months has been an interesting one for Vineyards and Wine Makers.  Despite  current U.S. economic conditions, the wine industry is showing signs of optimism.  Bulk wine market inventories have come into balance and in some cases there is a shortage.  Grape prices are on the rise.  2011 Cabernet Sauvignon grapes are virtually, entirely committed.

The tightening of inventories will eventually lead to increasing vineyard prices.  Also, this optimism has caused winery owners to take a strengthening position regarding thee perceived value of their winery assets.   When assessing a property, I look at the cost of operations over the last 3 years, the tonnage produced, the Vinter, the WineMaker and how it is being marketed… we also look at the weather in that Appellation, and what is being produced from that area.  We also look at the soil, and the quality / life of the vines.  In many ways, it is important to note that you are not just purchasing real estate when you buy a Vineyard, you are buying a business.

Premium Wineries Sold in the Last 12 Months

Sloan Estate sold in the Napa Valley for an estimated price of $40 million to a Chinese Investor in June.  The assets included a 12 acre hillside vineyard that produces approximately 600 cases of a Bordeaux blend with an average selling price of $600/bottle.  This property was not actively marketed.

Silenus Vintners sold to a group of Chinese investors in October, 2010.  Assets included an older facility with a 30,000 case winery permit, tasting room, equipment and two parcels.  This property had been on the market for 18 months and was originally priced at over $7 million.

There have been a couple of others sales, however, the sales information has not been published.

Top quality Napa and Sonoma Valley Vineyard Properties Sold:

200 Long Ranch Rd, St. Helena sold in October, 2010 for $15,000,000.  Assets included a total of 42 acres with 20 acres planted to Cabernet, a very exclusive location and 1,200 square foot guest home and garage.  Price per vineyard acre was about $380,000/vineyard acre.  This site has the potential of producing wines ranging in price from $100-$300/bottle.

Crane Ave South , St. Helena sold for an estimated price of $3,930,000 in August, 2010.  Assets included 13 acres with 12.3 acres of vineyard.  8 acres need be replanted.  The producing vineyard is estimated to be $300,000/ac and the plantable ground $175,000/ac.

Our belief is that any winery that has established itself as selling $100/bottle plus wines will ask for a premium EBIT (Earnings Before Interest and Taxes) if the brand is to be sold with the winery.  A winery owners’ belief is that if it has established itself as having wines of the very highest quality and a history of receiving at least $100/bottle then they will ask for a much higher multiple if that sale includes the brand.

In both cases, a building site value plus improvements would had been deducted to arrive at the sales price/vineyard acre.

What winery properties are worth mentioning that are available for sale in Napa?

A $30 million dollar property is rumored to be available for sale.  A confidentiality agreement would need be completed before any information would be made available.  We understand this property is similar to the Sloan Estate.

1181 Las Posadas Rd, St. Helena (Angwin) is located about 15-20 minutes east of St. Helena in the Howell Mountain AVA (appellation).  It includes 6.7 acres of Bordeaux blends with Cabernet Sauvignon being 76% of the total planting, 20,000 gal winery permit (8,500 cases), caves, winery equipment and 2,600 square foot residence. At full production this vineyard should produce the equivalent of about 1,000-1,200 cases.  The list price is $10,500,000.  Several wines from this appellation are selling for $70-$150+/bottle.  The property is listed by Tim Hayden with Union Pacific.

There are also a few vineyard properties for sale that may or may not include a house ranging in price from $4 to $14 million.

What are we doing to identify winery properties without brands and have the potential to produce $100/btl wines?  We are networking throughout the Napa Valley to source potential wineries that may be for sale.  These properties are not easy to find, so we ask for your patience.  If you are interested in purchasing a Premium Winery in the Sonoma/Napa Region call Mark Stornetta.

Because of the TIME it takes to start a vineyard, and the many relationships that need to be created between the wholesale distributers, resturants, lable designers – and more, most people are purchasing existing, producing Vineyards and Wineries.

To understand the Return on Investment (ROI), which I think is critical, it’s important to distinguish between the Investor’s expected return.  A vineyard producing a Good Quality wine, depending on the variety differs in price greatly from one that has a Premium wine brand.

I am currently working with buyers interested in purchasing a Premium Winery.  Specifically, these buyers are looking for a winery or vineyard property that had the quality to produce a $100/bottle + wine.

Here’s a disclaimer: Keep in mind the numbers here are examples to illustrate my point – only and are not a guarantee nor do they necessarily reflect what any given vineyard, or winemaker may or may not expect.

• This bottle price translates to a case sales price of $1,200-$2,400/case.
• 1If the wine is sold FOB (sold direct to wholesaler) from the winery, the sales price would be $600-$1,200/case.
• If winery cost of goods sold are 50%, then the net margin would be $300-$600/case assuming all the product is sold direct to wholesaler.
• If 100% were sold retail at a 20% discount, the net sales price would be $960-$1,920/case.
• If the winery produces 5,000 cases, this amounts to total net income of $2.4 to $4.8 million.
• Assuming an EBIT (Earnings before Interest and Taxes) multiple of 10 times, the sales price for the brand would be $24 million to $57.6 million.

I am currently working with several other investors who are interested in purchasing a property with good quality, not premium quality wines.  We would consider that to be a price point of $12/bottle or more in the United States. (the numbers above roughly calculate with this figure as well)

Our belief is that any winery that has established itself as selling $100/bottle plus wines will ask for a premium EBIT (Earnings Before Interest and Taxes) if the brand is to be sold with the winery.  A winery owners’ belief is that if it has established itself as having wines of the very highest quality and a history of receiving at least $100/bottle then they will ask for a much higher multiple if that sale includes the brand.

It’s also very common in Sonoma Valley and Napa Valley for vineyards to be sold without the Winery.  Vintners have many opportunities to take their grapes to Various WineMakers in the Area for production. If you are interested in Quality Vineyards currently for sale in Napa and Sonoma, please call Mark Stornetta 707-815-8749. I can also give you information about Vineyards and Wineries that recently sold in Sonoma and Napa Valley.   

St. Helena is one of the most sought after real estate markets in the world because you can be in Wine Country, and live that wonderful life style – or you can commute (though I think the drive is brutal) to San Francisco. Looking at the chart from Trulia – you can see that year over year numbers are headed in right direction.

You’ll quickly notice the one BIG change is the Average Price Per Square Foot… that’s down $396, a decrease of 45.4% compared to the same period last year. I realize many areas do not have ANY homes with a price per square of almost $400, but this is why properties are selling! It’s so much more affordable to purchase a home with a vineyard!

The median sales price for homes in St Helena for Feb 11 to Apr 11 was $629,000, which is based on 19 home sales during that 60 day window. Compared to the same period one year ago, the median home sales price increased 16.5%, or $89,000, and this is good news. The average listing price for homes for sale in St Helena CA was $2,351,619 for the week ending 5/23. There are currently 122 resale and new homes for sale in St Helena… fortunately, only 18 of those homes is in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

If you are considering a home purchase in St. Helena, please call Mark Stornetta 707-815-8749

From time to time buyers and sellers want to know what the market “snapshot” looks like for Sonoma County, CA. Please see the chart below for general information regarding real estate in Sonoma County, California for properties priced over $1,000,000

With today’s real estate market, many people are hyper focused on trends and market reports to determine if this is the right time to buy. Remember though that a Market Report will never really tell you the whole picture, because it’s just based upon recent sales activities.

It doesn’t tell you if a home was upgraded, if that property or an appellation hit a “cold summer” or if it was particularly dry. I know the history of the properties going on the market, the history of their vineyards AND the overall trend for that type of property in that particular market.

If you are considering a real estate purchase or sale in the Sonoma County, CA area, please call Mark Stornetta 707.815.8749 I have deep roots to this area! I know the vineyards, the history AND what specific pieces of Real Estate should sell for!

*All reports are published January 2011, based on data available at the end of December 2010. All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

From time to time buyers and sellers want to know what the market “snapshot” looks like for Napa Valley, CA. Please see the chart below for general information regarding real estate in Napa Valley, California for properties priced over $1,000,000

With today’s real estate market, many people are hyper focused on trends and market reports to determine if this is the right time to buy. Remember though that a Market Report will never really tell you the whole picture, because it’s just based upon recent sales activities.

It doesn’t tell you if a home was upgraded, if that property or an appellation hit a “cold summer” or if it was particularly dry. I know the history of the properties going on the market, the history of their vineyards AND the overall trend for that type of property in that particular market.

If you are considering a real estate purchase or sale in the Napa Valley, CA area, please call Mark Stornetta 707.815.8749 I have deep roots to this area! I know the vineyards, the history AND what specific pieces of Real Estate should sell for!

*All reports are published January 2011, based on data available at the end of December 2010. All reports presented are based on data supplied by Contra Costa, Bay East, MLSListings, San Fransisco MLS, Metrolist and BAREIS MLS. Neither the Associations nor their MLSs guarantee or are in anyway responsible for their accuracy. Data maintained by the Associations or their MLSs may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

From time to time buyers and sellers want to know what the market “snapshot” looks like for Healdsburg, CA.  Please see the chart below for general information regarding real estate in Healdsburg, California for properties priced over $1,000,000

With today’s real estate market, many people are hyper focused on trends and market reports to determine if this is the right time to buy. Remember though that a Market Report will never really tell you the whole picture, because it’s just based upon recent sales activities.

It doesn’t tell you if a home was upgraded, if that property or an appellation hit a “cold summer” or if it was particularly dry. I know the history of the properties going on the market, the history of their vineyards AND the overall trend for that type of property in that particular market.

If you are considering a real estate purchase or sale in the Healdsburg, CA area, please call Mark Stornetta 707.815.8749 I have deep roots to this area! I know the vineyards, the history AND what specific pieces of Real Estate should sell for!