Tree Farm With Guaranteed Revenue Contract For Sale

Business description

Guaranteed Revenue! The seller will commit to purchasing a minimum of $50,000 in trees in the first 12 months, which will cover operating expenses for the farm. Situated on nearly 20 acres of premium tree-growing land in East Texas, this 28-year-old tree farm produces the most beautiful and popular landscape hardwood trees planted in Texas, including: Red Oak, Bur Oak, Multi-trunk Red Oaks, Cedar Elm, Lace Bark Elm, Texas Ash, Pond Cypress, Bald Cypress and Mexican Plum. These trees are available in container sizes ranging from 30 to 200 gallons, and trunk diameters of 2" to 6". There are approximately 6,000 trees in the current inventory. This is a fully-operational growing and wholesaling facility, complete with everything an owner would need to step in and continue operations without requiring any additional equipment, employees or expertise. The approximate wholesale value of the current inventory will be well over $1.5 million by the time it is all sold. The current owner has been exclusively using this operation to supply his engineering design firm with trees for their own projects. Prior to his purchase, the previous owner/founder was turning about 1,500 trees per year at an average wholesale price of $250. Although the farm has not been operating as a wholesale supplier the past 18 months, the inventory has been kept at the same level, so there will be no problem sustaining that previous sales volume of 1,500 trees annually. Currently, the operation has two full-time employees, one having worked there for 26 years and the other for 16. They manage the planting, growing and maintenance completely and the current owner is not involved on-site in any capacity.

Property information

Real Estate:

Real Property Included

Location:

The farm sits on 18.375 acres of land used exclusively for growing trees. There is a 10,000 sq. ft. facility on site that includes one large storage bay/workshop, 2 smaller storage bays and a two-level, two-bedroom apartment/office space, as well as a covered storage area with room to park six vehicles.

Other information

Expansion potential:

This operation offers a number of opportunities for different types of potential buyers. For someone looking to run this business as a wholesaler, an owner would simply pick up where the founder left off, in terms of managing a client list and creating new customer relationships. For an owner of a landscape company, retail nursery, another landscape wholesale business or some other type of operation that buys trees regularly, this farm would provide a renewable inventory of high-quality hardwood trees and increase gross margins significantly.

Competition / Market:

There are obviously a large number of wholesale tree farms in operation in this region of Texas, but there are also a large number of wholesale customers. The farm is located in an area known for its premium sandy soil perfect for growing healthy trees and other landscape plants.

Support & training:

Owner will assist in transition and training as needed at no additional cost.

Reasons for selling:

Owner no longer needs access to large volume of trees for his other company

Financing available:

Financing arranged with local land bank, pending approval of purchaser

Furniture / Fixtures value:

$43,300 (included in the asking price)

Inventory / Stock value:

$500,000 (included in the asking price)

Video:

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