Farmland Partners buys 3.7K acre farm

|About: Farmland Partners Inc (FPI)|By:, SA News Editor

Recently IPOd Farmland Partners (FPI) puts some of that money to work, with a sale-leaseback deal for a 3.7K acre row crop farm in (mostly) Burlington, CO for $8.75M. FPI expects to sign a 3-year lease with the seller at an anticipated unlevered annual cash return of 4.63%. FPI expects to get a mortgage for about 40-50% of the purchase price.

Once closed, the deal will bring FPI's portfolio to more than 11K acres of row crop farmland. "We think this is the first of several high-quality farmland investments we intend to make in the coming months."