Value
Jon Kohler's Comments about the Plantation Market.
The plantation asset class was first developed in 1888 by wealthy northern industrialists seeking wing shooting opportunities in post civil war south. It has now grown to become an established market with three quality grades or levels of investment. With a property's value measured largely by aesthetics, ecological significance, recreational opportunity, and prestige, it is unique to the general real estate market. There are very few properties that meets the "A" or "B+" criteria and it is very difficult for a new property to enter this asset class. While annually the total number of these high dollar transactions has always been low, with few exceptions, the higher quality properties in this asset class has shown to be largely recession proof. These properties are oftentimes held for several generations and thus there has historically been very few properties offered for sale to the public, with demand far exceeding supply. The current recession has impacted this market by causing "A" class properties to be placed on the market that could otherwise remain unavailable for several generations. Thus, the current quality of the supply has increased significantly. Several notable sales have recently closed:
a "Turn Key" property
- Red Hills Plantation at 1,648 acres for $7,800 per acre
- Bar-M Plantation at 2,363 acres for $5,035 acres with majority under easement
- Love Ridge Plantation 2,477 acres for $7,000 per acre
- Little River Plantation 2,798 for $6,218 per acre
- Violetta 936 acres for $8,226 per acre
- Wilson Lake 975 acres for $5,130 per acre
- Disston Place 4,100 acres for $5,900 per acre
- Honey Lake Plantation 3,618 acres for $3,758 per acre
Jon Kohler's Comments on Deep Creek Plantation
Deep Creek is ranked as an "A" grade plantation of national prominence
When we first discovered Deep Creek in 2001 it was the crown jewel
of a $1B transaction by one of the largest landowners in the county.
We had no idea that a property with as much natural history and
wealth like this still existed in private hands on the Suwannee
River. We have been delighted to watch the progress as some of
the highest quality improvements and toys that we have ever seen
were added to this plantation. This property is like no other and
it has been a privilege being associated with it.
There are several Key Values that are intrinsically unique to Deep Creek that set it apart from any other plantation on the market today.
- Water: 4.4 miles on the world famous Suwannee River
and 1.8 miles on Deep Creek. This is one of the most famous rivers
in the world and, to our knowledge, the longest stretch of privately
held river frontage on the entire 260 miles of River. Approximately
90% of this river can never be privately owned and is held in
perpetuity by various state conservation groups. This is one
of the top riverfront plantations in Florida. This is not just
a shooting plantation. There is year round family enjoyment here
with not only great hunting, but boating, fishing, eco-tourism,
shopping and things to do year round.
- Investment Grade Value and Capitalizing
on Opportunities: Owning a plantation is an investment.
High quality, "A" grade plantations continue the trend started
in 1888 and even in today's recession consistently prove they
are one of the strongest real estate investments. What this
current recession has done is cause properties like Deep Creek
to be placed on the market that would otherwise not be available
for a generation and they are being offered at discounts. The
level of improvements and quality of the grounds at Deep Creek
were made from the heart with no intent on ever selling this
plantation. It would be financially impractical to duplicate
the planning and quality that went into every detail of this
property.
- Turn Key: This property is ready to be stepped into. This property comes completely "turn key" with what could best be described as a dream list of equipment from custom swamp buggies, ATV's, golf carts, canoes, as well as equipment to maintain the plantation; it's turn key! A complete equipment list is available to qualified parties.All-Terrain and Recreational Vehicles
- Improvements: Everything we can
imagine has been done on this property from security cameras,
custom gated entrance, generators, guest houses, indoor barns,
to private fire hydrants and to trampolines in the dog pens (visit
the Improvements page for an extensive list of the spectacular
improvements at Deep Creek!) The principle area that we could
see being improved on is the wild quail hunting. With some timber
harvest, feeding, and trapping, the wild quail courses can be
easily doubled or tripled. Otherwise, they are perfect for how
they are used now. We have seen no deferred maintenance. There
was nothing that we had to recommend the seller do. The staff
is all extremely professional and very well trained at their
jobs and would love to stay. In fact, this is one of the most
professionally run properties that we have seen. There is also
a very well-managed timber program and a wealth of timber resources
that can be used to offset some of the management costs.
Price:
"World class plantations are owned by those that capitalize
on opportunities
that come at the most inconvenient of times."
Deep Creek has been priced for today's buyers market at approximately $2,752 per acre for the land, timber, and river frontage component plus the value of the associated improvements and equipment.
This includes:
- 2,144 +/- acres of some of the best remaining, privately held Old Florida natural and timber lands priced at $2,752 per acre for the land and timber component This includes 6.2 +/- miles of river frontage: 4.4 +/- miles of Suwannee River frontage plus 1.8 +/- miles of Deep Creek
- There is approximately $2.5M cost analysis worth of improvements at Deep Creek; 20,000 square feet of improvements including a guest lodge/barn, owner's home/barn, caretaker's house, "toy box" equipment barn, camp house, and kennels, and gated entrance with security system, landscaped paved drive to homes, high fencing, back up generators, 10" well, seven rv hookups, deer stands, a 4.5 +/- acre stocked fishing pond, and more.
- There is approximately $500,000 cost analysis worth of tractors, equipment and toys.