Offering Details

Hamburg Delta Farm TIC

Ashley County, Arkansas

CROPS / Corn, Soybeans, & Rice

Minimum Purchase / $100,000

Target IRR / 8.35%

Offering Size / $2,255,933

Target Hold Period / 10 years

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Asset Summary

Use of the TIC structure enables individuals to complete a SECTION 1031 EXCHANGE.

The Hamburg Delta Farm will be a Tenancy in Common (TIC) structure. Use of the TIC structure enables individual owners to transact their ownership interest independent of remaining owners, allowing investors to complete Section 1031 exchanges both into and out of the ownership structure. The TIC will assign ownership interest directly proportional to each owner’s contributions at closing. All beneficial interests and capital requirements will be assigned based on TIC ownership interests for each member. The TIC is governed by a Tenancy Agreement defining the operating structure for ownership group.

The Hamburg Delta Farm is located in Ashley County, Arkansas in the Mississippi River Delta region of southeast Arkansas, seven miles northeast of Hamburg, Arkansas. The farm is comprised of 761.96 acres m/l of which approximately 683.95 acres are irrigated and tillable. Primary soils in the region include Grenada Silt Loam, Henry Silt Loam, and Calloway Silt Loam. The Farm produces traditional conventional row crops including soybeans, rice, corn, and cotton. The tillable acres have been precision leveled. The property’s open fields and multiple access points provide for above average farming efficiency.

The Farm is provided irrigation water from an underground aquifer with a water depth of 78 feet, and estimated thickness of 141 feet, and a saturated thickness of 63 feet. The Farm has been precision leveled to reduce water waste by making irrigation more precise and efficient so there is even ground coverage without runoff. The Farm is currently irrigated from six electric submersible irrigation wells.

SUSTAINABLE FARM MANAGEMENT PRACTICES AIM TO OPTIMIZE ANNUAL INCOME AS WELL AS MAXIMIZE CAPITAL APPRECIATION ON THE FARM.
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Investment Highlights

  • +1031 Exchange eligible into and out of the TIC structure
  • +684 tillable and fully irrigated acres
  • +Located in strong agricultural production region of Arkansas

  • +Farm purchase price is below average market comps on a $ per tillable acre basis
  • +Managed by Peoples Company, a partner of mAgma and leading farmland manager

  • +Leased to a strong local farmer for production of corn, soybeans, rice, and cotton
  • +Operated according to Leading Harvest sustainability standards
  • +Long-term low cost bank financing of $1,837,500 in place to increase investor returns

Risk Factors + Disclosures

mAgma, LLC and its affiliates, including its members, managers, employees, and authorized agents, are not Registered Investment Advisors, Broker/Dealers, Financial Analysts, Financial Banks, Securities Brokers or Financial Planners. Information and services are provided for information purposes only and are not intended to be and do not constitute financial advice, nor a recommendation to purchase, sell or hold any security, or otherwise to be investment, tax, financial, accounting, legal, regulatory or compliance advice. Investors should carefully read the transaction documents before completing a purchase of the real estate.