Winery Expansion Creates Opportunities

New Era for Grape Growers & Vintners


It’s a new era for grape growers and vintners who produce high-end wines in California, with renewed deal-making taking place in such areas as Sonoma, Lake and Napa Counties.

California Private Money Lenders offers mortgage brokers and bankers a lucrative avenue into this rapidly expanding vineyard market with a substantial advantage over the competition. CPML’s proven ability to close deals quickly in 2-3 weeks rather than the usual 2-3 months with conventional financing gives would-be winery owners and exiting vintners an important edge in delivering private money to sophisticated borrowers.

Across the state, there is renewed deal-making for bargain-hunters as the recession is ending and high-end California wines are enjoying an upsurge in popularity. This market promises to climb to $800 million in sales by year’s end, according to Demeter Group, a San Francisco-based consumer investment bank and advisory firm. Dan Levy explains this in “America Drinking Top-End Wine Fuel Napa Deals at link.


Premium properties in California’s priciest wine regions are experiencing a sudden increase in demand.

Existing vintners are looking to accumulate more acreage in new areas of California. For example, Lake County, as an area overlooked in the past, now has great potential for profit. Here, premium vintners buy cheaper grapes for blending. Various varietals are being developed there, where grapes are still reasonably priced. Currently, most Lake County grapes are added to blends of various grapes from various places, including Napa Valley. An acre of land there costs a fraction of what it does in Napa. Recent purchases by Gallo, for example, have been enormous in terms of both money and size.  See link.

California Applellation MapBigger wineries hope to develop and get into new appellations. Lake County has 8000 acres of vineyards and a few dozen wineries now, and is drawing up appellations and sub-appellations from Cabernet, Chardonnay and Zinfandel to everything in-between.

From rock stars to athletes, the rich and famous want to start their own new elite wineries on available acreage in California. A lot of growers and producers live elsewhere than in the Bay Area, or commute from Sonoma and Napa. They are ready to get into the huge market for high-end wines, which are advancing at more than double the rate of overall wine sales. Purchases of California premium wine totaled $410 million in the past 12 months, up 14% year-over-year and better than the 11% gain for the total US luxury producers for the same time period, according to data from New York based Nielson.

As wineries have streamlined their operations during the recent recession, and as distressed sales have abated and vineyard defaults have plunged, the high-end wine industry is enjoying a new fluidity and movement along with the travel, hospitality and entertainment industries.

California’s vineyard acreage has never been a hotter commodity, with California Private Money Lenders offering fast, streamlined and flexible private money lending for borrowers, your financing needs can be easily met. At California Private Money Lenders we help mortgage brokers and bankers offer a safe, fast, and reasonable alternative to conventional financing when closing on a potential vineyard deal needs to be accomplished quickly.

California Private Money Lenders is a private money and hard money lender you can trust and depend on. We are able to provide the immediate financial support you need which is not always available through conventional lenders. Because we are an equity-based lender, we use the borrower’s loan to value ratio, rather than credit and payment history. We may be able to assist you regardless of past circumstances, by requiring only a minimum requirement of 45% equity in a property, or even cross collateralize the loan with another property owned by the borrower. We can provide money for all types of investment situations as long as the loan to value ratio is adequate.

To start your loan request, please fill out the California Private Money Loan Submission Form. Once your questionnaire has been received, a California Private Money Lenders representative will contact you to discuss your financial needs.

Enhanced by Zemanta

Leave a Reply

Your email address will not be published.

twenty − 10 =