Limoneira Co. (LMNR), an agribusiness with prime agricultural land and operations, real estate and water rights in California and Arizona, has agreed to sell its Sevilla and Pacific Crest properties located in Santa Maria, California. Both properties are being sold to the same buyer and the combined purchase price of the two properties is $8.3 million.
Following the execution of the purchase and sale deals, the buyer would deposit $250,000 into escrow and issue a note receivable for each property leaving a combined amount due of $7.8 million. The notes are due on the earlier of the approval of the properties' tract maps by the City of Santa Maria or October 24, 2014.
The firm would collect 5% interest on the notes. There would be a 90-day due diligence and escrow period for the transaction, which may close March 2014. After the full payment of the notes receivable, the company hopes to generate $8.1 million net cash, plus interest earned on the notes. The company continues to own its Centennial property in Santa Maria.
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