I have several vineyards listed for sale in Wine Country!  As people are searching for information, they might expect to find ALL vineyards listed as Napa Valley – although it’s a very large geographic footprint, and the grapes grown in Sonoma, St. Helena, Kenwood, Napa and Calistoga differ largely from each other too!

Nuns Canyon Vineyards is located on the Mayacamas Mountain Range located near Glen Ellen.  The property is located at  2449 Nelligan Road, Kenwood and totals 114.1 +/- acres and includes 113.48 +/- acres of vineyard planted on gentle to steep slopes of the range.  Elevations are 1,300-1,755′ and the vineyards have southwestern exposure.  

List price-$6,700,000.  Southwestern exposure allows this vineyard site to enjoy full sun exposure and produce high quality red varietals.

Grape varietals include: Cabernet Sauvignon, Cabernet Franc, Merlot, Sangiovese and Zinfandel. The vineyard is separated into 20 blocks planted from 1994 to 2008. Spacing is a combination of double, 12×8 and 9×6. 9 acres of Syrah were grafted to Cabernet Franc in 2011.

Varietal Acres (+/-) as a % of Total are:
Cabernet Sauvignon 50.27 or approximately 44% of the planted vineyard
Merlot 34.51 or approximately 30% of the planted vineyard
Zinfandel 14.32 or approximately 13% of the planted vineyard
Sangiovese 2.99 or approximately 3% of the planted vineyard
Cabernet Franc 11.39 or approximately 10% of the planted vineyard

Fruit characteristics: Straight forward berry character, similar to Napa style.
Grape Sales: Wines produced from this vineyard are made by St. Francis Winery.  Wine quality as reported by the winery is excellent. Wine samples are available upon request.

This property is co-listed between Paul Spitler of V&E Properties and Mark Stornetta of Alain Pinel.  Please contact us for additional information, or download a brochure on the property now

2449_Nelligan_Road_Brochure_lq

Paul Spitler
V&E Properties
Direct:707.480.7882
plndmn@earthlink.net

Mark Stornetta
Alain Pinel Realtors
Direct: 707.815.8749
mstornetta@apr.com

There are close to 65,000 acres of grape production in Sonoma County covering 13 different AVA’s.  The American Vintner Association classifies each area based upon the types of grapes grown in a specific area, the climate of that area and the soil (and about 12 to 15 other items!). 

Sonoma County is interesting, because of the large number of AVA’s in the county, which can be attributed to the huge difference in landscape from the Coast to the Mountains.  Sonoma County vineyards typically produce 30 million gallons of wine from the nearly 300 wineries there.  Of the 13 AVA’s in the county, the largest production area is the Sonoma Coast with 27,000 acres of vineyards.  The Sonoma Valley AVA, by comparison is small 14,000 vineyard acres, however it does have the most ( 55 ) wineries.

It’s important to note that Sonoma Valley IS ACTUALLY an AVA… a bottle labeled Sonoma County, might not be from this unique corner of the county.  The Valley is shaped almost identically to the Napa Valley appellation to the east.  It runs from south (at the ocean) 17 miles to the north.  Mountains stretch from the west to the east across various growing regions.  You will find well-draining rocky (and in some instances volcanic) soils along the mountain sides – perfect for growing Chardonnay, Pinot Noir, Cabernet Sauvignon, Merlot, Syrah, and Zinfandel.

The Sonoma Valley appellation is bordered by the Sonoma Mountains on the west and the Mayacamas Mountains on the east.  Warm days and breeze-cooled nights during the growing season create perfect conditions for grape growers.  The ocean winds in the southern sections of the valley are attributed with slowing the ripening process… this is important, as it is considered a factor in prolonging the hang time and it is thought to help promote the natural balance in the wines.  The grapes that produce the award winning wine from this area include the red wine favorites: Zinfindel, Pinot Noir, Cabernet Sauvignon, Merlot, Syrah – and the white wine favorite:  Chardonnay.

Trying to compare the grapes, vineyards and potential of this area to other great Wine Production areas of the world?  The Sonoma Valley appellation can be compared, based upon the number of days during the growing season that the temperature will be a consistent above 50 degrees F (the Winkler Scale).  Based upon the growing times, Sonoma Valley would be classified as a Region II, and therefore similar to Alto-Adige in Northern Italy, the Northern Rhône region of France, Yountville of Napa Valley and the Clare Valley of Australia. Region II is similar to Bordeaux in France.   Accordingly, the Carneros AVA and the Sonoma Mountain AVA both compare at cooler classifications, at Region I and low Region II, respectively.  The cost of ownership for a vineyard here, when you look at the global comparison and potential, is quite reasonable!

Interested in a vineyard for sale in Sonoma Valley, or Napa Valley?  I work with buyers everyday who are looking for the right property to meet their ROI /  EBIT and individual needs.  Please call me for more information!

If you fall into the “Just Starting Out Camp” here are some things to consider:

• Vineyard development costs fall into two basic categories – Those expenses that occur in every vineyard and those expenses that occur in some vineyards and not in others and vary according to the vineyard.

• There is one basic decisions you have to make that will drive all the standard costs – how far apart to space your rows and vines. In the “Inner” California AVA’s, where you find more “bulk” (as opposed to premium wine production) you will find that spacing has been consistently dropping (and therefore vines per acre increasing).  In the past 20 years this “production” in certain varieties has gone from a standard 450 vines per acre (8′ by 12′ area) to close to 900 vines per acre (in a  6′ by 8′ space).   With Premium Wine Productions (again based upon the grape) in the Coastal AVA’s of Napa and Sonoma, you still find the norm to be fewer vines, better quality.

• You should figure about $20,000 for standard costs of installing a vineyard. You can add an estimated $5,000 to $20,000 per acre to cover the upfront costs associated with engineering, WATER, soil tests, drainage, erosion, rocks, fencing, and frost protection.

• While the numbers vary WIDELY depending on location, and the production nearby – the current typical end cost per acre is between $20,000 to $40,000 per acre.

If you’d like to learn more about Napa Valley Vineyards for sale and Sonoma Wineries available, contact Mark Stornetta 707-815-8749 – I have a unique connection to this land, to the art of wine making, to the history of the Appellations, and the value of vineyards for sale in Napa and Sonoma.

The grape growing areas of Napa Valley and Sonoma Valley are similar. 

Napa has long been considered the favorite, and they’ve been working for decades to create wines that grow in value as they age, with some success.  The 2011 season is considered by some one of the best years yet – granted there were fewer grapes, but higher quality.

Recently though, James Laube, one of the most Internationally acclaimed Wine Experts wrote this about a Sonoma Valley Cabernet:

“Rich, savory and full-bodied, showing direct, potent young Cabernet flavors built around blackberry and dark berry fruit, with touches of spice, black licorice, mineral and toasty wood. Very impressive for its purity, finesse and graceful finish. Best from 2012 through 2022. 2,450 cases made.” –JL

The region is comparable to French Bordeaux grapes, and growing season, and the Beringer Knights Valley wine (he was referring to) does mirror these flavors gracefully.  The price: $45, with 3,600 cases made. It’s the best Beringer Knights Valley wine I can recall and one of winemaker Laurie Hook’s best efforts

In addition to Beringer’s Cabernet, Wine Spectator’s “Top 100 Wines” list for 2011 includes HALL as #2 in it’s list of the top 20 wines! (and the FIRST one is NOT from Napa!)

“With a successful real-estate empire, Craig and Kathryn Hall didn’t take any shortcuts with Hall estate, which comprises several hundred acres in vines spread over six vineyards in Napa Valley. The 2008 Kathryn Hall Cabernet is a blend from four of the sites. Winemaker Steve Leveque added a splash of Merlot to round out the texture and heighten the aromatics. The wine captures the essence of Napa Cabernet yet is distinguished from other great 2008 Cabs by its seamless texture, wonderful focus, purity of flavor and persistent finish.” -Wine Spectator, November 15, 2011

What does this mean for clients interested in purchasing a vineyard with potential ROI?  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.

For the past many years, there’s been a direct correlation between the prices / demand for grapes – and the prices / demand for vineyards.   (the adjacent chart reflects the sales price for land SUITABLE for a Vineyard, not planted). The tightening of inventories will leads 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.

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.

Looking for more information on which area of Sonoma or Napa might be the perfect place to grow grapes and create your dream of owning  a Cabernet Sauvignon Vineyard?  I can help with that too!

We’ve all heard of counterfeit movies, counterfeit watches, and purses.

The Association is working with the California Wine Institute to gain exposure to Napa Valley wines, and in fact, the growth for this product in Hong Kong and China.  It’s important to note that in the last five years, Chinese wine consumption has doubled!   And it’s not just in China!  The Asian wine market is, as a Region, growing and in an historic move, the Napa Valley Vintners Association gained an agreement with the Government of Thailand.

Working directly with Thailand’s Department of Intellectual Property,  Thailand has recognized Napa Valley with Geographic Indication (GI) Status that will protect the American wine region from misuse of its name in wine labeling in that country.

“This is a terrific accomplishment for our trade group in protecting our appellation’s name from fraudulent use in yet another high-profile, emerging wine market,” said NVV Executive Director Linda Reiff. “We have been able to achieve this and other GI recognitions by working directly with these government agencies, such as our successes in the EU and India, which is important to building our export channels for Napa Valley wines.”

If you’d like to learn more about Napa Valley Vineyards for sale and Sonoma Wineries available, contact Mark Stornetta 707-815-8749 – I have a unique connection to this land, to the art of wine making, to the history of the Appellations, and the value of vineyards for sale in Napa and Sonoma.

Eagles Trace, found just 3 miles up from the Napa Valley floor won several awards at the China Wine Awards for 2011! 

Eagles Trace was founded by Gus & Phyllis Anderson. Gus enjoyed a successful career as founder and winemaker for Anderson’s Conn Valley until his retirement at age 72.  After a year of not being happy resting in a rocking chair, Gus came out of retiremetn and started Eagles Trace.  The new winery is located right next to Anderson’s Conn Valley.

The fun of starting something new – with all of your past experience, is that you can try new things!   The new winery allowed him to implement some very creative wine making practices – techniques that he never had a chance to implement during his first winemaking career.   These practices, and the acute attention paid to the grape growing process on the property makes for a perfect combination.

Gus says, “You can make great wine out of great grapes, but you cannot make great wine out of bad grapes!”

Picky?  Well sure!  During his “year off” – much research and thought went into analyzing the soils, and matching the rootstock of the vines with the particular soil types.  Not only are the grapes tested daily when they are within a 60 day guess of when they should be harvested, but they are actually tasted too!  “Grapes are picked when they are ready, which means only parts of the vineyards are harvested at certain times. “  Not limited by what other vintners might deem to be the perfect conditions, Eagles Trace have grapes that were picked as late as mid November.

Son Todd, still operates the successful Bordeaux style vineyards and produces wonderful wines at Conn Valley Vineyards (next door).  It’s not surprising that Eagles Trace was one of the China Favorites!  Again, from a pure ROI and EBIT Investment Opportunity for Chinese investors, purchasing Vineyards and Premium Wineries like Eagles Trace makes sense.

Look at some of the other awards they’ve also recently received:

If you’d like to learn more about Napa Valley Vineyards for sale and Sonoma Wineries available, contact Mark Stornetta 707-815-8749 – I have a unique connection to this land, to the art of wine making, to the history of the Appellations, and the value of vineyards for sale in Napa and Sonoma.

Further down the road, we came across a property listed by Mel Gilson & Paul Krawchuk 707-331-1400, with 110 acres.  Thinking this might be a close match, we stopped to look around (sorry for the phone pics – I need to keep a “real” camera with me!).

There really are some beautiful vines here.  It has 15 acres of Chardonnay planted, and there are between 10 and 15 acres that are available to plant.  It’s located on gently slopping hills, with good drainage.  (want to know why all of that is really important if you are buying a Vineyard in Napa Valley?)

There appear to be adequate water sources on the property, although I haven’t pulled to permits yet.  Additionally, there’s a home that’s been updated, but my guess is, with all of the beautiful home sites located on this property, the new buyer will just do a custom build.

Want to know more about how I value vineyards?  I think it’s all about the Earnings before Interest and Taxes and the ROI you can expect.  I have a unique perspective about Vineyards like this, because my degree is in Agricultural Business, and I also served as CFO of Gundlach Bundschu, repositioning a prominent wine brand and expanding direct marketing and sales.  In addition to this, my wife and her family own Leveroni Vineyards / Wine – so I’m reminded daily of what it takes to make great wine!

I don’t know if this property will work out for my client – (it’s listed at 2,250,000) but I’m always looking for the right fit for each client. If you are in the market to buy a vineyard in Napa Valley, or a winery in Sonoma Valley – call Mark Stornetta 707-815-8749 I source all kinds of vineyards for clients, like this Pinot Noir Vineyardfor sale I found a few weeks ago in Sonoma Valley!

In the Assumptions done each year by the Research and Teaching teams at the UC Cooperative Extension and the Department of Agricultural and Resource Economics Department at UC Davis, a piece of land deemed suitable to grow grapes will have a small production in the 3rd year and could yield a fully producing facility by the 5th year.  So, to begin with – you need to know that if you are purchasing a piece of property to create a vineyard – you will potentially be waiting 5 years before you begin seeing Revenue.

To be sure, growing wine grapes is a business – a good business.  The ROI for clients, even in this uncertain marketplace, can produce a good income year after year if the vineyard is well run and well marketed.  In our initial conversation, we will also discuss what type of owner you intend to be.  The involvement, the actual labor and time you are able to contribute to the vineyard, the return you expect on the investment and the type of product you are interested in producing all need to be considered.

For instance, my wife’s family owns a Vineyard in this area – and at certain times of the year, she is out of the house before 5am to go check on the vines!  If that’s not the level of commitment you have time for, we can talk about the cost of retaining a property manager.  Often times their connections, and ability to get a little more fruit per acre create more revenue than the cost of their service!  (Many of clients are only in Wine Country for a limited time each year, and so I’ve got great contacts for these type services!)

Fortunately, once the vineyard is in the ground, the costs to operate the vineyard from year to year are pretty predictable. It costs $2,500 to $3,500 and up per acre to farm every year. This includes all farming costs, including a Pickup Truck.   The UC Davis 2010 estimate for the 3rd year of Operations for a Sonoma farm of 30 acres to be approximately $3,023 an acre.  Other costs, such as insurance and interest expense have to be considered separately.

As with most business, the cost of labor (in this case harvesting) is considered separately as well at about $500 per acre in the 2010 UC Davis Study.

Grapes are sold by the ton and prices vary from area to area and from variety to variety.  The Chart below reflects the 2010 prices for Grapes per ton in Sonoma:

Tons per acre varies considerably from variety to variety and from high quality grapes to low quality grapes. You can get as many as 10 tons to the acre or more for some varieties at lower qualities. But in general, you can estimate about 5 tons to the acre or less for high quality grapes of most varieties. Average yields for Pinot Noir will be a little lower and most white grape varieties a little higher.

You will also see a difference based upon when the vineyard was planted.  Older standards called for planting grapes might also affect your yield.  In the last 30 years the standard changed, and today vines are planted almost 2 times more densely than they were in the 1970s.

So, for a typical Sonoma County red wine grape variety, if you figure $2,000 a ton and 5 tons to the acre you should get about $10,000 an acre in revenue. Take away our average of $3,000 in costs + $500 per acre for harvest and you get $6,500 per acre in net income.

This is obviously not an exact science – and you can see that we’ve not calculated any management fees, or production fees if you decide to create your own wine from your grapes.

Right now there aren’t enough Sonoma County grapes to go around and wineries have to compete for available fruit.  This can work to your advantage if you are willing to spend a bit of time through out the year getting to know the wineries in your area.  Learn about the various techniques used, and don’t be afraid to talk about your vineyard.    You’ll get lots of free stuff and probably make some new friends!

There are multiple vineyard properties for sale in Sonoma, and we compared those with vineyards for sale in Napa Valley recently.  If you are considering purchasing a wine making operation in California.  Call Mark Stornetta 707-815-8749 f you’d like to learn more about Napa Valley Vineyards for sale and Sonoma Wineries available, contact Mark Stornetta 707-815-8749 – I have a unique connection to this land, to the art of wine making, to the history of the Appellations, and the value of vineyards for sale in Napa and Sonoma.  I can help you calculate your ROI and EBIT on a Vineyard or winery in California.

Located just outside Santa Rosa California the beautiful Bennett Valley Appellation  is perfectly situated between once volcanic mountain ranges of Taylor Mountain to the west, Sonoma Mountain to the south, and Bennett Peak to the east.  Not only does the valley have an ancient volcanic origin, it also has several fault lines running through the area.  This particular AVA is less than 10 years old making it one of the youngest AVA’s – and since it has less than 700 acres of vineyards planted, it is also one of the smallest AVA’s in California.

Bennett Valley AVA is positioned exactly where you would want grapes to grow, on hillside slopes of the Mountains, in well-drained volcanic soils.  This Appellation has a higher elevation than the Sonoma Valley floor.  Most growers feel, however, that it’s special because of a cooler weather pattern during the grape growing season that works to make this an ideal grape-growing environment for the production of ultra-premium wines..   That’s one of the reasons Merlot, Chardonnay, Pinot Noir, Syrah, and other cool-climate grapes thrive here.

In 1862, Isaac DeTurk planted 30 acres of vines in Bennett Valley, and later founded Belle Mount Winery. Along with grapes, apples, wheat, and oats were important agricultural products.  Phylloxera hit the region particularly hard during the 1890s, followed by Prohibition in 1918. This effectively ended widespread winemaking for a few decades. Matanzas Creek was established in 1975, when they planted their first 20 acres of vineyards.

After prohibition, the Valley was mostly forgotten.  John Taylor arrived in 1953, and bought 2,000 acres in the valley, planting some of his land with  Zinfandel and Mission grapes.  But John was a dairy farmer at heart and most of the land was dominated by his dairy production and cattle.  Purchasing over 100 acres of that dairy land at a liquidation sale in 1971, Sandra MacIver went on to change history as she and her husband established Matanzas Creek Winery.  During the late 1980′s, early 1990′s the MacIver’s spent countless hours running tests on various handcrafted methods for their wines.  And in 1993, they released JOURNEY which was Crafted from the finest one percent of 700 Chardonnay barrels.  The two hundred cases sold out upon release, even at the $70 a bottle retail price.  Critics still measure other California wines to JOURNEY, as it is hailed by many as the finest Chardonnay ever produced in America.

That sort of prestige caught the attention of many winemakers, and most people attribute legendary founder of Kendall Jackson, Jess Jackson (who died earlier this year) with “creating” the Bennett Valley AVA in 2003.  He wanted to distinguish Matanzas Creek Winery products from other Sonoma Valley wines.

In addition to wonderful grapes, Matanzas Creek  Winery is also home to an acre of lavender which blooms annually to produce over 2 million stems of lavender!  Because of this, one of our favorite Wine Country Events is the “Days of Wine and Lavender” at the Estate each June.  The lavender harvest fits beautifully into the wine making cycle, as the flowers usually reach their zenith in June, well before the busy grape harvest.  The staff makes use of all parts of the lavender in it’s production of unique bath and body products, wonderfully sached home products – and culinary delights!  Lavender in Lamb and Chicken?  If you haven’t tried it – you should!

But there’s more to Bennett Valley AVA than Matanzas Winery! You’ll also find Alta Ridge Vineyards,  Annadel Winery, Argot Wines.  Barbed Oak Vineyard, Bennett Valley Cellars,  Bevan Cellars, Flanagan Family Vineyards, Frostwatch Vineyard & Winery, Grey Stack Cellars, Jemrose Vineyards, Mackie Family Wines, Nelson Estates Wines, Sable Ridge Vineyards, Silver Pines Vineyards  Westerhold Family Vineyards.  Here’s an interactive map to the various vineyards and wineries in Bennett Valley AVA.

If you are considering a vineyard as a second home, or a new business, it’s important to understand that the County of Sonoma is somewhat restrictive to “cookie cutter” neighborhoods.  Custom Homes are typically built on land parcels ranging from five to 40 acres.  There’s a property currently listed on Bennett Road with 55 acres, that’s just waiting to be planted!  If you have questions about vineyards and wineries for sale in Sonoma and Bennett Valley – please call Mark Stornetta at 707-815-8749.  I’m uniquely qualified to help you make an investment if you want to purchase a vineyard in Sonoma, or a winery in Napa.  I understand the history and the challenges of owning a vineyard home… and I understand ROI and EBIT, and can show you the formulas I use. Our office has several beautiful Bennett Valley AVA Properties for sale.

Here are some of the stats from our MLS system BAREIS for Napa County Residential Properties including condos/townhomes

*  Listed for sale (668): lowest $78,900, highest $35,750,000, average price $1,455,321, median price $697,000.  The average Days on the Market in Napa (according to BAREIS) was 156
*  Contingent sale pending (283): lowest $64,500, highest $7,250,000, average price $426,714, median price $299,000.  The average Days on the Market for these properties according to BAREIS was 139
*  Sale pending (87): lowest $95,000, highest $2,075,000, average price $360,614, median price $299,000.  The Average Days on the Market per BAREIS was 88.

Are you seeing a Trend in the Days on the market going DOWN?  Again, great news for real estate in Napa Valley.

Yes, other areas of California have been headed in the opposite direction for much of 2011, after seeing a rebound in 2010. Looking ahead to 2012, the California Association of Realtors Chief Economist Leslie Appleton-Young said recently that California home sales next year should see a slight 1 percent increase to 496,200 units, following essentially flat sales of 491,100 homes this year compared to the 491,500 homes sold in 2010.

Thankfully, Napa Valley is in a different position when it comes to trending values and sales, when compared to the rest of California. To learn more about vineyards and wineries for sale in Napa and Sonoma, we’ve put together some comparisons of the two regions.

If you’d like to learn more about vineyards in Napa and wineries in Sonoma that are available, please call Mark Stornetta 707-815-8749! Or, connect with me on Facebook!