— Overview —

  • 1,289± Acres Strategically Located Between Savannah and Atlanta
  • 210± Acres of Irrigated Pastures and Fertile Farmland
  • 83± Acres of Engineered Lakes
  • 640± acres of Intensively Managed Timber
  • Dairy which is a Top Producer Statewide of Award-Winning Artisan Cheeses
  • Mushroom House
  • Aquaculture & Fish Hatchery
  • 12-Room Main Lodge with Loft Apartment on 15+ acre Main Lake
  • 8 Waterfront Cottages
  • State-of-the-Art Corporate Boardroom
  • Restaurant Offering Fine Dining with Seating for 90
  • Accommodations for Over 100 Guests
  • Fully Operational Resort
  • Four Additional Cottages/Housing for Staff
  • Organic Berry Orchards
  • Smokehouse & Curing Operation
  • Livestock, Farm Animals & Game Included
  • Stump Knocker's Store and Outfitter Store
  • Spa with Saunas, Steamroom, and Jacuzzi's and a Japanese Mineral Bath House
  • Wedding Venue
  • All Furnishings, Decorations, Vehicles, and Dairy, Sporting & Kitchen Equipment Included
  • Trophy Hunting and Fishing
  • Just 3 Hours Southeast of Atlanta, 2 Hours to Savannah, 71 Miles to Augusta National, and 41 Miles to Statesboro- Home of Georgia Southern U
  • Strategic Tax Planning & Wealth Preservation

The Investment


Flat Creek Diversified Agricultural Related Investment is a property with a portfolio of interrelated agricultural investments and businesses on 1,289 acres. The irrigated farmland, lakes, timber, aquaculture, dairy, mushrooms, and berries are all cross-promoted with a hospitality/recreational division and all strategically tax planned to quite possibly be the ultimate agricultural investment.

Cost of reproduction exceeds $16.1M- The complete portfolio, with all operations, is available today for $9.5M.

“This Diversified Agricultural Related Investment is the perfect mix of agriculture, timber, and strategic tax planning making it the ideal investment portfolio for a sophisticated investor seeking to enter the agricultural sector but wanting tax benefits typically unheard of in the agricultural arena.”

“We have been specializing in this niche for twenty years. We have never before seen an investment portfolio so simple yet so well-balanced for not only agriculture, but, seamless cross-promotion of interrelated businesses and wealth preservation. This technique should be trademarked. It’s pure genius.” - Jon Kohler

Offering:

This entire portfolio is priced today at $9.5M. Reproduction costs exceed $16M. The sellers have requested a sale prior to year-end 2011. This timing is mutually beneficial. An investor needs to be grandfathered into this investment, for locking in the current tax code may prove to be extremely advantageous in the future given the political climate. This offering is now positioned as quite possibly the smartest agricultural buy in America today. When the asking price is broken down with discounts of 40% for livestock, irrigation, equipment, buildings, lakes and other assets, the land and timber component is less than $930 per acre. For someone seeking to get into or strengthen their position in the rapidly growing agricultural sector, this is an incredibly smart vehicle over commodity based farmland. This investment is strategically hedged regardless of the way the market ultimately plays out and cross markets itself for year round cash flow through hospitality and recreation that most agricultural investments cannot offer.

Analytical Breakdown Based on Offering Price:

This year we are celebrating our 20th anniversary specializing in the plantation niche. Through this experience we have developed the following analysis as one of the most reliable ways of initially determining benchmark value based on the seller’s asking price. This analysis is particularly valuable in this current market. We begin by analyzing the basics of value and then isolate the moving parts.

  1. Land - 1,289± acres. There are approximately 640± acres in pine timber production. The stands are intact, very well-manicured and not yet thinned. There are 250± acres in natural hardwood areas. There is a stand map but not a timber cruise. A very conservative valuation would place this component value with this quality of timber over $2,000 per acre. However, for the sake of being conservative we have penciled in only $1,500. In addition, there are 201 acres in irrigated fields and a 10 acre berry orchard. Irrigated land is in exceptionally high demand right now and bringing upwards of $3,500 to $4,000 per acre. For the sake of argument, assume only $3,000 per acre.
  2. Water Resources - Water is key. Typically, when analyzing lake values, $12,000 per surface acre is a commonly used valuation in this region. There are 83+/- acres of well managed lakes and ponds which is approximately $1,000,000± cost analysis.
  3. Dairy Operating Equipment, Farm, Sporting & Kitchen Equipment and Livestock are conservatively valued at $1,470,865 replacement cost. (Incidentally, we have fielded many calls from people wanting to buy the dairy alone! So, if you are not interested in this aspect, let’s discuss.) This includes:
    1. There is an estimated fair market value for the dairy operating equipment amounting to $783,500.
    2. The herd of livestock is valued at $106,950, with an $80,100 inventory (such as produce; frozen berries, dried mushrooms, etc).*
    3. The kitchen, farm, and sporting equipment is valued at $458,015.
    4. Approximately 2,820 sq. ft. of steel containers/refrigerators at an estimated fair value of $42,300.
    5. Name and established brand of Flat Creek Lodge for the agri-buisnesses.
    *As of September 30 2010

  4. Improvements - There is conservatively $9,018,150 in cost replacement valuation of the improvements and $1,139,750 in cost replacement valuation of furnishings, decorations, artwork, and fixtures at Flat Creek Lodge, but the Seller has them discounted, this time by an amazing 40%! There are approximately 45,590 +/- sq. ft. of heated, professionally decorated and furnished structures, 17,610± sq. ft. of un-heated structures, 20,810± sq. ft. of enclosed accessory structures, and 54,340± sq. ft. of open accessory structures. It is important to note that the lodge and cottages were built on pilings over the water, something almost impossible to receive permitting for in today’s environment.
    1. 2 Room Main Lodge each room uniquely decorated and furnished with a theme. Lodge complete with elevator, a Conference Center, Laundry Facility, and Loft/Manager’s Apartment on the third floor.
    2. Six two-bedroom Cottages, two four-bedroom Cottages, and pilings built for four additional four-bedroom Cottages that are “Grandfathered-in” to be built over the lake.
    3. Restaurant with Dining for 90 (200 in a Cocktail Setting), Full Kitchen and Bar
    4. Spa with 2 massage rooms, 2 saunas, 2 steam rooms, 2 Jacuzzi’s and 2 dressing rooms.
    5. Fitness Center with four locker rooms and Laundry Facility
    6. Japanese Mineral Bath House with 2 milk bath rooms, 2 private Japanese mineral bath rooms, one large Japanese mineral bath, and 2 changing rooms
    7. Stumpknockers Store, Guest Check-in, and Lounge
    8. Outfitters Store and Game Room
    9. General Manager and Admin Offices
    10. Lighted Five-Stand Sporting Clay
    11. “Sporting Club” at Sporting Clay Facility
    12. Commando Style Paintball Course
    13. 9 Run Kennel
    14. Custom Gated Entrance
    15. Farm Worker House
    16. “Deer” Cottage
    17. “Chef’s” Cottage
    18. Dairy Worker’s Cottage
    19. Custom Pavilion on Main Lake
    20. Boat House on Ladies Pond and Pavilion on the Cottage lake
    21. Smokehouse and Curing Operation with Two Freezer Containers
    22. Dairy with Four Refrigerated Cheese Caves
    23. Mushroom House
    24. Two Kill Room Operations-One for Fish and One for Deer, Quail, Wild Boar, etc.
    25. Beach with Two Cabanas and Covered Pavilion with Bar and Seating
    26. 65’ Pheasant Tower and 65’ Duck Tower
    27. 1000’ Flight Pen
    28. Duck Pens, Chicken Coops, Rabbit Hutches, Hog Parlor
    29. Fish Hatchery (6 tanks) including catfish, striper, largemouth bass, smallmouth bass, bream
    30. Peacock Pen
    31. Greenhouse
    32. Equipment Sheds, Barns, and Garages
    33. Brick sidewalks with lighting by main lodge
    34. 11 Deep Water wells
    35. Various Custom Artwork Statues throughout the property
    36. Fountain on the main lake and Statue with fountain on the lake by the cottages
    37. Irrigation on 211± acres
    38. Wood Duck Boxes on Ponds
  5. Intrinsic Value - This is the uniqueness value and value of having all of this property already assembled and already fully operational. This also includes historical value and other values difficult to measure. In specializing in this type of property for over 20 years, we have realized that this value oftentimes represents 15% to 20% of additional value for these very select and rare high quality properties. The seller estimates that in excess of $500,000 has been expended on intangible values, including web-site, customer data base, media development, awards, logos, branding, and licenses, etc. This property has great respect; in fact the Governor served the Flat Creek Lodge cheese at his inauguration.

Synopsis:

$1,192,741 According to the asking price that places the land and timber at a little over $925 per acre (this is a 53% discount off today’s very conservative market prices of 1,078 acres at $1,750/acre plus 211 irrigated acres at $3,000 acre.)
$6,094,740 Improvements, Furnishings, Decorations, Artwork, and Fixtures discounted by 40%
($10,157,900 replacement cost)
$830,000 83± acres of Lakes and Ponds
(Based on reproduction cost and comparable sales, typically when analyzing lake values, $12,000 per surface acre is commonly used. However, for the sake of being conservative we used $10,000 per surface acre.)
$500,000 Intrinsic Value Unique to Flat Creek Lodge
(Intangible values including web-site, customer data-base, media development, awards, logos, branding, & licenses etc.)
$882,519 Dairy Equipment, Farm, Sporting & Kitchen Equipment, & Livestock discounted by 40% ($1,470,865 FMV)
$9,500,000 Total Turn-Key asking price.

*Again, FCL is being offered as a real estate sale. However, as you will see, this a fully functioning portfolio of various agri-businesses and a resort.

Based on the seller’s full asking price the plantation is already discounted another 19% from the previously discounted amount of 22%, for a total discount of 41%. Certainly, the value of this property is not an issue. These sellers are some of the most pragmatic landowners in the country and are looking for an immediate sale. This plantation will make an investor an extremely good buy.